U.K. Backs Off Charitable Deduction Cap

U.K. Chancellor of the Exchequer George Osborne has withdrawn his proposal for a cap on charitable deductions after significant push back from opponents of the measure.

Bloomberg Business Week reported that Osborne, who had earlier defended the measure by saying that some wealthy people were abusing the system, announced his decision today, saying that any cap could have damaged charitable giving. If it had been implemented, the new rule would have capped tax relief at 50,000 pounds or 25 percent of income.

This prompted nonprofits in the country to cry foul, claiming they would lose a huge portion of their income. The Charities Aid Foundation (CAF) hailed Osborne's decision in a statement from its CEO, John Low.

“We are delighted that the government has responded to the challenging calls from philanthropists and charities across the country and taken the bold decision,” he said.

Yet it wasn't just nonprofits that opposed the plan. Members of Osborne's own Conservative Party also criticized it, with lawmaker Zak Goldsmith saying he was "ashamed" of the proposed cap. Academic institutions were also not in favor, most notably the University of Oxford, which had raised nearly 1.25 billion pounds at a recent fundraiser.

The reversal is the latest setback for Prime Minister David Cameron's budget plans. Just three days earlier, Osborne changed course on another of his proposals, a plan to levy value-added tax on hot snacks and charge the full 20 percent rate.

You can read the full story in Bloomberg Business Week.

The June 1 Edition Of The NonProfit Times Is Online!

Now that June has finally arrived, we are well on our way to summer! That means a lot of time at the beach and (hopefully) a lot of relaxing days. The arrival of the new month also means a new edition of The NonProfit Times. We are very happy to announced that the June 1, 2012 edition is now online!

Let's take a look at what articles are featured in the new issue:

Special Report

• When Words Become Actions: This month's special report focuses on national service. Specifically, it takes a look at how the different generations of volunteers are linked.

Articles

• Sal Army Completing Kroc Heiress' Dream For Centers: When Joan Kroc died in 2004, she left a large sum of money to the Salvation Army to build more of her centers around the country. That dream is now becoming a reality, with the planned opening of a new center in San Diego.
• Future Of Technology Donations 'Cloudy': Find out how cloud computing is impacting the future of donations for nonprofits.
• Vegas Draws Youths Looking For Meaningful Relationships: One Jewish group hopes that what happens in Vegas doesn't stay there.

Columns

• Are There No Prisons?: Our editor-in-chief takes on the misguided notion that poverty is the individual's fault.
• Structural Leadership Gaps: Some nonprofits are in danger of becoming climax forests. This is one of the two major sources of structural leadership gaps in nonprofits today.

Be sure to read the stories in full on our website. If you have subscribed to the digital edition of NPT, you will be able to click the magazine animation on the page to access the entire issue.

Registration For Komen Race Down

Registration for the Susan G. Komen Race for the Cure in Washington, D.C. is down nearly 40 percent this year, in the what is the latest in a series of downward trends for the organization after it attempted to defund Planned Parenthood in February.

The Washington Post reported yesterday that, with only three days left before the race begins, about 25,000 people had registered, down from 40,000 last year. Race organizers have said that the decline in registration is partly because of the poor economy, though Komen spokeswoman Andrea Rader acknowledged to The Post that the Planned Parenthood controversy also played a part.

Rader also declined to say how much money has been raised by Komen this year. She said that fundraising typically continues for 30 days after an event. The organization bought in $5 million last year.

The Race for the Cure in D.C. remains one of the largest in the country. It reached a peak of 60,000 registrants in the mid 2000s but participation fell in recent years. Competition from the many other charity events in the city took its toll on the race.

This is not the only Komen-sponsored event that has been potentially been affected by the Planned Parenthood flap. The NonProfit Times reported earlier that the organization was dropped as a sponsor by Churchill Downs, parent company of the Kentucky Derby. It chose instead to use Los Angeles, Calif.-based Stand Up To Cancer (SU2C), though it claimed the decision was made because patrons wanted to find broader ways to raise money for cancer research, not just breast cancer.

Since Komen reversed course on its controversial decision, it has awarded $600,000 in grants to 16 of Planned Parenthood's affiliates. In 2011, $680,000 in grants were awarded to 19 of 79 affiliates.

You can read the full story in The Washington Post.

Hip-Hop Star Mary J. Blige Vows To Get Her Charity Back On Track

Amid reports of turmoil at her charity to empower women, hip-hop star Mary J. Blige said she would get the organization back on the right track.

The New York Post reported today that Blige told the entertainment show E! News that she and her advisers are well on their way to fixing some of the problems at her charity, Foundation for the Advancement of Women Now (FFAWN).

"As founder and CEO of FFAWN, I am ultimately responsible for anything that goes wrong. The problem is that I didn't have the right people in the right places doing the right things. This should have never been allowed to happen, but it did and now we are fixing it."

Blige went on to tell E! News that she had the "wrong" people in place at FFAWN, and that she has no plans to close the embattled nonprofit.

The Post initially ran a report on May 27 detailing a litany of abuses at FFAWN. The charity not only has no office or phone number, but hundreds of thousands of dollars are unaccounted for. In addition, it has yet to file its federal tax returns for 2010, as well as its annual state-charity registration.

FFAWN is also facing two civil lawsuits, one that claims the organization failed to pay musicians at a fundraising event in 2011 and another the charges the charity defaulted on a $25,000 loan.

You can read the full story in The New York Post.

Is Your Funding Socially Responsible?

Today's breed of donors are becoming attuned to the value of social investing. More and more of them are putting their hard-earned money into investment vehicles that support causes they care about or attempting to dictate how their donations are used.

In her book "The Complete Idiot's Guide to Giving Back," Elizabeth Ziemba, J.D., M.P.H. offered detailed information for people considering getting involved in socially responsible investments (SRIs). Nonprofits always want to know what is on the mind of their supporters, and Ziemba's book sheds a light on that information.

She offered the following tips for donors who are considering socially responsible funding:

• Identify your financial needs. How much can you afford to invest? How much can you risk losing?
• Identify and prioritize your social values. Think about what is most important to you in terms of causes and values. Knowing where you will and will not compromise is helpful in the investment selection process.
• Understand and examine social screens. Understand the negative and positive social screens that financial management companies use to review corporate report cards on social issues. Request prospectuses from a few possible investment candidates and compare them.
• Make your selection. After you have completed your self-assessment and an assessment of various socially responsible funds, choose the fund that most closely matches your financial and social goals.

Webinar: Making Major Gift Fundraising Productive & Reliable

UPDATE: With the webinar coming in just a couple of days, I decided to bump this post.

***

Hopefully you have all registered for our upcoming free webinar on cloud computing this Wednesday. The fun doesn't stop there -- we have another one scheduled for the beginning of June on a subject that should interest all fundraisers: Major gifts.

Join The NonProfit Times, Convio, and the American Marketing Association (AMA) for "Moves Management Made Easy: Making Major Gift Fundraising Productive and Reliable." This webinar will discuss how having a solid moves management process can raise your team's productivity, eliminate missed opportunities due to staff turnover, and make your major gift fundraising results more reliable.

Contributing to the hour long discussion will be Jennifer Darrouzet, Senior Product Marketing Manager at Convio, and Rachel Muir, Client Strategy Executive at Convio & Founder of Girlstart. They will explain the following topics related to moves management:

• What moves management is and isn't.
• How to get started and make your first move.
• Ways to build plans with tried-and-true methods.
• The "triggers" that tell you it's time for a prospect to move to the next cultivation stage.

This free webinar begins on June 1 at 1:00 PM EST, and will feature introductions by Paul Clolery, our editor-in-chief. Register today to participate in what is sure to be an insightful hour of discussion.

5 Marketing Campaign Goals

Every plan must have an end game if it is to be successful. This is especially true for marketing campaigns.

It seems like every nonprofit wants to market something. Whether it's an upcoming fundraising event or a new program, most organizations need to make use of marketing campaigns to spread the word. The only problem is that most of them don't always take a step back and ask why they need to invest in marketing. It's only when they start thinking about these goals that it becomes clear they are quite hard to define.

Jennie Winton and Zach Hochstadt, two partners at Mission Minded, listed five areas of need for marketing in the book "Nonprofit Management 101," and possible goals to consider for them:

• Revenue: Are your marketing efforts focused on raising more money for the organization? Exactly how much do you need to raise, by when, and for what exactly?
• Volunteers: Are you asking people to commit time to your cause? How many people do you need, and where do you need them?
• Tickets: How many tickets do you need to sell to break even for a special event? Can you afford to just break even, or do you actually need to make a profit?
• Advocacy: Are you trying to pass a law or change a policy? Why? Who are you lobbying?
• Behavioral: Are you trying to change a behavior, such as getting people to stop littering in a public park? Has this been tried before?

State Senate Approves Nonprofit Board Pay Ban

The Massachusetts state Senate approved a bill on Friday that would ban public charities from paying their boards of directors.

The bill, which is attached as a budget amendment, would forbid boards of directors from earning hefty salaries, all while attending only a few meetings a year, according to a report in The Boston Herald. State Senator Mark Montigny (D-New Bedford), who created the amendment, said that the new law would only impact charities that are paid for by taxpayers.

The bill must now be passed by the House and signed by Governor Deval Patrick.

State Attorney General Martha Coakley had previously made it clear that she wanted this practice illegal. In March 2011, she blasted nonprofit board pay after a report in The Herald showed that Blue Cross Blue Shield of Massachusetts paid its boards of directors $90,000. The organization has since suspended that compensation. Coakley praised Montigny's bill in a statement and reiterated her objection to the practice of paying board members.

"Voluntary service by board members is the practice at the overwhelming majority of public charities, and for good reason," she said. "Compensation of board members raises concerns about maintaining board independence and ensuring the proper use of charitable funds."

You can read the full story in The Boston Herald.

The Second Mile To Cease Operations

The nonprofit for at-risk youth founded by former Penn State Football coach Jerry Sandusky -- who is charged with sexual abuse of children from the organization -- plans to cease operations, citing a decrease in fundraising and volunteers.

According to a report in The Pittsburgh Post-Gazette, the Second Mile Foundation filed papers today in Centre County, Pa. to shut down the organization and transfer all of its assets to Houston, Tex.-based Arrow Child & Family Ministries. If approved, Arrow would receive nearly $2 million in cash and other assets which would allow the organization to continue running youth programs in Pennsylvania. Current Second Mile camps and other programs would continue during court oversight of the transfer.

The Second Mile experienced a huge drop in fundraising in the wake of the Sandusky scandal. The NonProfit Times reported earlier that the organization had already been experiencing diminished revenue in the years prior to the news about Sandusky. The charity reported contributions of $1.227 million, a combination of donations and special events revenue, which was down from $3.282 million and $2.272 million, respectively. The already weak support only got worse after Sandusky was charged with abusing 10 boys, all of whom were being helped by the Second Mile.

Second Mile's board chairman, David Woodle, said in a statement that there is "overwhelming support for the programs, but that there would not be adequate support, including financial, from donors, volunteers and referring social service agencies to continue the Second Mile as its own entity."

Should the transfer take place, Arrow will continue to offer Second Mile's programs for at-risk youth and families. The programs are a natural fit for the organization, which helps children after they are placed in foster homes. The Second Mile's programs would allow it to reach out to children prior to going to foster homes.

Arrow Ministries was founded by Mark Tennant, who is originally from Washington, Pa. He relates to the mission of the Second Mile as he was abused as a child. He said in a statement that he "Felt the need to turn my heart home and be a part of the healing process."

You can read the full story in The Pittsburgh Post-Gazette.

How To Use Flickr For Your Nonprofit

When a nonprofit wants to share photos from a recent event, they tend to turn to Facebook and other social media resources. There's another site out there, however, that can be just as useful for photo sharing.

The site that we are talking about is called Flickr. It has gained popularity in recent years for creating an easy-to-use platform to store all of your photos. It also provides tools that allow you to share these photos with all your followers with just the click of the mouse. Sounds good, but how can you make it work for your nonprofit?

In “Nonprofit Management 101,” Beth Kanter, CEO of Zoetica, listed three examples of how you can use Flickr to tell your story:

• An international organization sends volunteer doctors to developing countries to perform medical services. The impact of their work is documented with photos, which are uploaded to the nonprofit’s private Flickr group. This allows volunteers to exchange photos and related stories and provides an image bank for use on the organization’s website and blog.
• An environmental organization that supports organic farmers had thousands of amazing photographs documenting organic farming techniques. The organization uploaded the photos to Flickr, then enlisted volunteers and members to help organize and share the photos.
• Volunteers and photographers at an animal shelter had taken beautiful photos of the dogs and cats at the facility. The organization uploaded the photos to Flickr and created thank-you cards featuring the pets for their donors.

Thanking Your Volunteers

Volunteers are an incredibly precious resource for nonprofits. That's why it's so important to make sure they never feel like their hard work is not going unappreciated. So when it comes to thanking your volunteers, here's a rule you should follow: Don't wait until the end.

When a volunteer feels appreciated, it increases their morale. Whether someone has high or low morale can be the difference between someone who is productive and someone who is not. In his book "The Idiot's Guide to Recruiting and Managing Volunteers," John L. Lipp wrote that it is important to make your volunteers feel welcomed from the beginning. Waiting until they leave to say "thanks" won't do you much good.

With this in mind, Lipp suggested 10 easy ways to integrate volunteer recognition activities into your organization:

• Get name badges for your office volunteers.
• Have an annual "Design the Volunteer T-Shirt" contest and use the winning design as that year's shirt for special events. Long-term volunteers will be able to wear their t-shirts from past years.
• Have a small budget? Ask a local company to pay for having volunteer t-shirts printed in exchange for having their logo tastefully printed on the shirt.
• Have a "Volunteer of the Month" and post his or her personal story on your web page.
• Ask a volunteer if he or she would like to take a 15-minute coffee or snack break with you.
• Create holidays in honor of your long-term office volunteers.
• Name rooms or office equipment after outstanding volunteers.
• Schedule a monthly drop-in potluck for volunteers who work in the field but would like to get to know one another in a social setting.
• Write a letter to the editor of your local newspaper making a statement of gratitude to all of your volunteers.
• If you send a regular newsletter to your volunteers, include an "Above and Beyond" section where you publicly acknowledge individual volunteers for specific actions.

Senate To Investigate Veterans Charity

Sen. Max Baucus (D-MT)

The U.S. Senate Finance Committee will investigate whether a charity for disabled veterans deserves to keep its tax-exempt status after giving millions of dollars to a direct mail company, and not spending enough money on aid to veterans.

CNN reported that committee Chairman Sen. Max Baucus (D-MT) announced the investigation of Washington, D.C.-based Disabled Veterans National Foundation (DVNF) on Wednesday. He said that the investigation will determine whether the organization will be able to keep its tax-exempt status.

"The tax exemption for charities exists to promote worthwhile causes like assistance to veterans, not to provide tax loopholes to abuse," Baucus said in a Wednesday news release. "DVNF has a responsibility to show it's genuinely helping veterans and playing by the rules."

A two-year investigation by CNN's "Keeping Them Honest" series found that very little of the $56 million raised by DVNF over the last three years went to direct aid for disabled veterans. Instead, the nonprofit has paid almost $61 million to Quadriga Art and its subsidiaries, according to IRS 990 forms. Quadriga Art is one of the nation's largest direct mail providers to charities and nonprofits.

The investigation also found that DVNF supplied unnecessary contributions to veterans aid groups, such as candy, hand sanitizer, and dress shoes -- all surplus items that the charity gets for free.

DVNF President Precilla Wilkewitz said in a statement that her organization will "will happily answer the questions posed by the United States Senate Finance Committee and provide it with information that others have sadly, chosen to ignore."

You can read more about this story on CNN.

Webinar: Cloud Financials For Nonprofits

UPDATE: Thanks to everyone who attended the webinar yesterday. If you were not able to attend, the recording/slides are now available on our website. Enjoy!

***

Intacct Corporation and The NonProfit Times are teaming up yet again for a webinar on cloud financials for nonprofits.

Join us on May 23 at 2:00 PM EST for Advice From The Trenches -- Cloud Financials For Nonprofits. This free webinar will feature insight from nonprofit technology and business expert Jacqueline Tiso, Denise Salzman, controller of St. Peter-St. Joseph's Children's Home, and Stacie Porter, director of finance for Grace Fellowship Church.

This event will be in the form of a panel discussion and will include the following topics:

• Why thousands of nonprofits are moving their financials to the cloud.
• How nonprofits are using cloud computing to provide real-time organizational visibility to management, board members, auditors, ensure proper stewardship of funds, and comply with federal reporting requirements.
• What was the cost/benefit for their business -- did they really see return on investment from the cloud?
• Would they do it again?
• What would they do differently?
• What are they doing next?

Register today to participate in what should be a fascinating discussion on a hot topic in the technology world.

Five Re-Branding Tips

There comes a point in the life of most nonprofits when its previously healthy brand becomes stale. Whether it's become of some external controversy or a normal change in attitudes, organizations sometimes have to consider re-branding.

This was the case with the organization formerly known as Gifts In Kind International (GIKI). The Alexandria, Va.-based nonprofits changed its name to Good360 a year ago, part of a re-branding effort to refresh their image after 30 years. Good360 also completely revamped its business model as part of that effort.

Re-branding doesn't always have to be that extreme but, whatever form it takes, the results won't come instantly. As Nick Saul wrote in his book "Five Good Ideas: Practical Strategies for Non-Profit Success," change takes time. If you are one of those nonprofits that is considering fundamental change to your brand, Saul suggested five things you can do to re-imagine your organization:

• Listen. It sounds obvious but it’s not just a matter of “sending out feelers” every few years. It must be habitual, part of your organizational DNA.
• Create a plan, but don’t always stick to it. A plan is always a work in progress so don’t get so caught up making it that you stall before taking action. “Don’t let perfect be the enemy of good.”
• Embrace your inner entrepreneur. Nonprofits need to be as nimble and opportunistic as possible. Your landscape of service delivery can shift quickly and unforeseen opportunities will arise. You must be willing to be bold and think big.
• It’s competitive out there. You must be able to differentiate yourself from others. Be clear about the difference your organization is making and why you have no equals in the pursuit of your mission.
• Contribute to public policy conversations. Advocacy doesn’t turn people off -- it makes you relevant.

Building A Donor Base

Come one, come all! Special events can reap benefits by raising the profile of an organization or, well, bringing in money.

Speaking during a recent international conference, however, Amy Scerba Karazsia, director of individual giving at the Smithsonian's National Museum of American History, said that an event can also help an organization build its donor base.

 How can it do that? Step right up.

• It can engage new prospects. It offers a chance to reach out to major gifts prospects, brings the mission to life, displays the need for funding in a way that opens the door for a future solicitation, builds a sense of community around the project or event theme and creates a path for follow-up. 
•  It can engage current leadership. It has the potential to deeply engage current board members, current major donors and volunteers in the content that is the event's theme, cultivate those people to become an organization's greatest champions and allow them to “bring in” their network and open doors without having to make a solicitation. 
•  It has advantages over 1:1 cultivation. It provides less pressure than a 1:1 meeting, it offers more incentive to attend, creates a unique and memorable experience for prospects, allows prospects to more fully engage with content, exposes prospects to a funding need and makes the need real, builds bonds with the organization and with a community of like-minded people and might yield better return on investment by reaching several prospects at once.

What's In Your Fundraising Toolkit?

When you think of the word "toolkit," hard-hat jobs are the first things that usually come to mind. The last thing you would think of would be fundraising.

You don't need hammers or wrenches to raise money but, according to Kay Sprinkel Grace in "Nonprofit Management 101," it's important to have a metaphorical toolkit on hand. These contain all the tools that fundraising novices, such as volunteers, need to be successful. It's important that they have these tools on hand, as they probably won't be comfortable soliciting donors in the beginning.

Sprinkel Grace suggested stuffing your volunteers' toolkit with the following items to help them spread the word about the organization:

• Stories of your impact to add a personal touch to your role in the community;
• The elevator speech (and the elevator question – what do you say after you’ve said the speech to ensure that the conversation is just the beginning?);
• Facts about the organization (i.e., number of people served, before and after statistics, etc.);
• Analysis of the organization’s impact measured against the needs of the community;
• Most commonly heard questions and objections to giving and the recommended response;
• Highlights from the strategic plan that may be relevant to some potential donors; and,
• Full financial information, presented in an understandable format.

Have you already given out fundraising kits to your volunteers? If so, what other items not listed here would you suggest including?

When Non-Cash Gifts Are Worth Cash

When you give a friend money as a birthday gift it's appreciated, but there's always the thought that you could have been a little more creative. That's not really the case with nonprofits; money is one of the best gifts you can give.

But that doesn't mean it's the only gift.

Non-cash gifts, such as computer equipment or office supplies, can be very useful for nonprofits. Yet even though these items are not money, they still have cash value in the eyes of the Internal Revenue Service (IRS). IF that value is great enough, an organization might be required to substantiate the gift to the IRS.

In their book “Conducting a Successful Major Gifts and Planned Giving Program,” Kent E. Dove, Alan M. Spears, and Thomas W. Herbert explained that the need to file federal form 8283 also depends on the status of the taxpayer. They explained four instances that qualify, as well as which part of the form must be completed:

• Non-cash gifts valued at $500 or less. The donor only has to complete federal Form 8283 for this type of gift if the person has made a series of gifts in a given year, each of which is valued at $500 or less but with a total value exceeding $500;
• Non-cash gifts valued between $501 and $5,000. Gifts in this range must be reported on Part A of IRS Form 8283, which is then attached to the donor’s federal income tax return;
• Non-cash gifts valued at more than $5,000. If the amount claimed as a charitable income tax deduction is in excess of this amount, the IRS requires the donor to complete Part B of Form 8283; and,
• Gifts of non-publicly traded stock. If the donor makes this type of gift, Part B of Form 8283 must be completed. This is true regardless of the value of the stock. A qualified appraisal is required if the value of the stock exceeds $10,000.

So remember: Just because your organization is getting a donation of something other than cash doesn't mean that there is no accounting work to be done.

The Roles Of The Employee Conduct Policy

Nonprofit employees that thoroughly look through the Human Resources handbook they receive when hired probably know all about the organization's employee conduct policy. These guidelines are set so that people know what they can and cannot do in the workplace. If we lived in an ideal world these kinds of rules probably wouldn't be needed.

Unfortunately, we don't live in an ideal world.

Governing behavior is not the only role conduct policy needs to play. In "The Big Book of HR," Barbara Mitchell and Cornelia Gamlem wrote that HR managers need to make sure that the rules accomplish six other goals to ensure stability in the office place. The policies should:

• Establish and define professional standards of conduct that are not acceptable, while stressing that the list is not all-inclusive and that there can be other infractions.
• Provide assistance to employees to change inappropriate behavior.
• Provide managers a means to address issues.
• Provide management responses if behavior does not change.
• Provide a flexible approach (progressive or corrective discipline) process to address conduct.
• Provide a communication mechanism for employees and managers.

So what happens when an employee breaks some of the rules? Discipline should follow, according to Mitchell and Cornelia, but that doesn't mean instant termination. Instead, it should follow these steps:

• Open dialogue/verbal counseling.
• Written counseling/letter of caution.
• Final written notice.
• Suspension.
• Termination.

NY Gov. Proposes Salary Cap For Nonprofit Execs

N.Y. Governor Andrew Cuomo yesterday proposed new regulation that would place caps on the salaries that nonprofit executives receive.

As reported by The Daily News, the new rule would cap the amount of money towards an executive's compensation package at $199,000. The actual pay package could be higher, but the nonprofit would have to find new funding sources to make up the difference and get special permission. Salaries could also fall no higher than the 75th percentile for the field in which the organization works.

The new rule would only impact nonprofits that receive 30 percent of their total funding from the state. The Daily News reported that the Bronx-based Soundview health clinics -- run by recently convicted ex-state Sen. Pedro Espada -- would have been in real danger of losing state funding. Nearly half of the organization's funding came from the state, and Espada's $612,000 salary placed him above the 75th percentile in that field ($380,000).

Gov. Cuomo's announcement shouldn't come as a surprise. He vowed to crack down on excessive pay for executives during his State of the State address in January. Before that, he created a task force to investigate pay at nonprofits that receive taxpayer money. This stemmed from a New York Times article that reported high salaries and perks at the Young Adult Institute. Executives at that organization reportedly received $1 million a year, in addition to ethically questionable perks, such as billing the nonprofit to cover their children's college tuition.

You can read the full article on Cuomo's announcement on The Daily News' website.

Nonprofit Sues California Over Teacher Tenure Laws

A nonprofit education group is suing the state of California over five laws they say protect ineffective teachers and lower school quality for poor children.

Los Angeles-based Student Matters filed the lawsuit today with the goal of getting the laws overturned, according to a report on KQED News. The laws in question set up a seniority system for public schools in the state.

According to the organization's website, Student Matters is "committed to ensuring that all of California’s children receive a quality education." It is run by David F. Welch, an executive at a Silicon Valley fiber-optic communications firm.

Josh Pechtalt, president of the California Federation of Teachers, said in a statement that the lawsuit is "misguided," and that the real problems of public education stem not from teachers, but from money.

"The real problems of public education really are not about teachers having due process rights," he said, "the problems have to do with massive cuts to the classroom, and frankly defunding of public schools now for a number of years."

You can read the full story on KQED's website.