Nonprofit Reaffirms That Money Will Get To Aurora Victims

The day after families of the victims of the Aurora, Colo. movie theater shooting said in a joint press conference that they have received little of the money raised for them by two nonprofits, one of the organizations tried to reassure them by announcing that all of the money will "eventually" get to the families.

According to a report in The New York Daily News, the Colorado Organization for Victim Assistance (COVA) released a statement a day following the Tuesday press conference. The statement reaffirmed that "One-hundred percent of donations made to COVA in the aftermath of the Aurora shooting are going directly to the victims."

COVA could not go into further detail, citing a court gag order on the victims' personal information. The organization did confirm, however, that they have been able to help victims and their families with airfare, rental cars, and emergency funds. So far, $5 million has been raised by the nonprofit.

At the joint news conference in Aurora, 18 family members of the victims killed during the shootings told attendees that they have only received $350,000 from COVA and the other nonprofit, the Community First Foundation (CFF).

"When you generate donations for a fund called ‘the Aurora Victim Relief Fund’ (CFF's dedicated fund for victims) using pictures and names of our murdered loved ones, it would stand to reason the fund is for victims of the Aurora shooting," said Tom Teves, whose son, Alex.

As of August 23, CFF collected approximately $5,043,701 for victim. The last date those funds were distributed was August 17, when $350,000 was given to COVA to help meet "some of the immediate financial needs of the 70 victims" who were injured in the shooting.

Twelve people were killed and 58 others wounded when alleged gunman James Holmes opened fire at a movie theater during a midnight screening of "The Dark Knight Rises." Holmes is currently awaiting trial for 24 counts of first degree murder and 116 counts of attempted murder, possession of explosive devices, and inciting violence.

You can read the full story in The NY Daily News.

Nonprofit Leader Sentenced In Wire-Fraud Scheme

The former head of a Philadelphia nonprofit for at-risk youth was sentenced Wednesday for a wire-fraud scheme that saw him fraudulently cash checks to benefit himself and his organization.

William Mackey, who ran the City Wide Youth Leadership Academy (CWYLA), was sentenced to 18 months in federal prison and ordered to pay $142,000, according to a report in The Philadelphia Inquirer. The check-cashing occurred between 2006 and 2009, when Mackey, among other things, cashed checks that were not meant for him to obtain services for himself and CWYLA. This included a $24,000 check in 2007 that the Philadelphia School District mistakenly sent to the organization's former fiscal agent.

He must report to prison by Oct. 15.

Mackey apologized for his crimes and asked U.S. District Judge Legrome Davis to sentence him to house arrest and probation. He tearfully told the judge that he did not want to let down a 7-year old boy named Khalil, whom he watches over after his biological mother abandoned him. Judge Davis declined his request, saying "Running good programs and helping people doesn't give you authority to do whatever you want," the judge said. "If you're going to be a leader, you need to be responsible and do the right things."

Assistant U.S. Attorney Pamela, in arguing for the prison sentence, said that Mackey had "betrayed" the trust of his community and that his crimes were intentional, not the result of a lack of knowledge. Federal Defender Maranna Meehan countered that although he was a "flawed" guardian of CWYLA's finances, Mackey was a positive role model for youth in North Philadelphia, and that he did not live a life of luxury.

You can read the full story in The Philadelphia Inquirer.

Settlement Reached In Law Enforcement Nonprofit Lawsuit

A settlement was reached in a lawsuit Tuesday, setting the stage for a Texas law enforcement nonprofit's assets to be liquidated.

The Austin American-Statesman reported that the lawsuit, which was first filed in December 2011, alleged that the Texas Highway Patrol Association (THPA) in Austin defrauded consumers and misused contributions. Specifically, the group was accused of illegally soliciting charitable donations, and falsely claiming that they would be used to benefit the families of fallen state troopers.

A state investigation alleged that few individuals received this assistance, and that the THPA used up to $10,000 in donations a day to buy tickets to amusement parks, movie theaters, and to pay for airfare.

After the lawsuit was filed, Travis County Probate Judge Guy Herman ordered the organizations assets frozen at $490,000. Now, as part of the settlement, the assets at THPA and a museum it operates in San Antonio will be liquidated. The proceeds from the sales will go to the family members who claimed to have never received the financial assistance they were promised.

The settlement also fines THPA up to $2 million and forbids several of the nonprofit's leaders, including former state Rep. Lane Denton (D-Waco), from being involved with nonprofit or for-profit related to law enforcement.

You can read the full story in The Austin American-Statesman.

Featured Nonprofit Job: Director Of Major Gifts

All fundraising eventually boils down to getting the biggest contributions, known as major gifts, from donors. Being in charge of this aspect of giving is important, so nonprofits are always on the look-out for candidates.

The Jewish Foundation of Greater Washington in Rockville, Md. is the latest organization looking for candidates in this field. The nonprofit is looking to hire a Director of Major Gifts to lead a team of fundraisers to raise critical dollars for multiple projects. These include humanitarian aid, community building, and social service projects. The chosen candidate will help this team of three development officers to create and implement a moves management and corporate sponsorship plan.

In order to qualify for this position, applicants should meet the following requirements:

• Intimate knowledge of and passion for the Jewish community, its customs and practices.
• Ability to set and evaluate metrics.
• Ability to motivate a team to meet and exceed target goals.
• High level of customer service.
• Exceptional organization and communication skills (both written and oral) with proficiency in English grammar and usage.
• Proficiency in Microsoft Word, Outlook and Excel.
• 7-10 years of related experience with management and supervisory responsibilities.
• MBA or Master’s level degree in a related field preferred.

You can visit The NonProfit Times' career center to find out more about this job, including instructions on how to apply.

Colorado State University Sets Fundraising Record

Colorado State University (CSU) announced Sunday that it set a fundraising record for its campaign year that ran from June 2011 to June 2012.

According to a report in The Rocky Mountain Collegian, CSU supporters donated $111.6 million during the university's latest fundraising campaign, up 31 percent from the year before. The 2011-2012 numbers signaled the end of a seven-year campaign that saw 924,000 donors give a total of $537.3 million. Sixty-eight individuals gave $1 million or more.

The money from the campaign will go directly toward scholarships and faculty development.

“We basically doubled fundraising in two years,” said Brett Anderson, vice president for university advancement, in a statement. “This puts us up there with the big, nationally-known universities.”

CSU is not the only school to put up impressive fundraising numbers. The University of Colorado system announced at the beginning of August that it raised a record-breaking $228.6 million in the 2011-2012 fiscal year. It was revealed that colleges and universities raised a collective $30 billion in charitable contributions last year, an increase of 4.8 percent from 2010. In addition, the increase in giving to top 20 schools was $1.12 billion, accounting for almost half of the increase to all schools ($2.3 billion). This information appeared in the May 1 issue of The NonProfit Times,

You can read the full story about CSU's fundraising in The Rocky Mountain Collegian.

NY State Senator Charged In Nonprofit Cover Up

State Sen. Shirley Huntley (D-Queens) was charged Monday with attempting to cover up the theft of taxpayer money that was supposed to go to a nonprofit she founded.

According to a report in The New York Post, the indictment was filed in a Nassau County Court alleging that Huntley, who is running for re-election this fall, falsified business records and tampered with evidence in an attempt to mislead investigators.

Huntley was released on her own recognizance after surrendering to authorities. She has denied any wrongdoing.

The charges against Huntley came after her niece, Lynn Smith, and two others were charged with stealing $30,000 in state funds that the senator had directed to Parent Workshop in 2006. The investigation into Huntley was started by New York Attorney General Eric Schneiderman and state Controller Thomas DiNapoli.

Huntley founded Parent Workshop in 2006, eight months before she was elected. After the initial $30,000 grant, she tried to get another $125,000 to the organization a year later.

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

Reasons To (And Not To) Have Your Volunteers Fundraise

More often than not, it's the paid staff of a nonprofit who will be responsible for asking donors for money. There are, however, very good reasons to have your volunteers involved in fundraising.

In her book "Successful Fundraising," Joan Flanagan wrote that organizations should consider dividing fundraising work between professionals and volunteers. She listed the following advantages to using volunteers as fundraisers:

• Volunteers are free. It is a labor of love.
• Your volunteers can come from diverse backgrounds to allow the organization to reach many different economic, professional, geographic, racial, religious, social, political, and civic networks.
• They can work for the largest employers in your community, with hundreds or thousands of co-workers.
• Some volunteers might have more time during the day, an ideal time to ask for money.
• Volunteers can be more aggressive about asking for money for the staff’s salaries and benefits.
• If volunteers raise the budget, the professionals become literally accountable to the elected leadership and constituents.
• Asking for money is the acid test of leadership. If volunteers do the fundraising you get an accurate measure of who cares most about the organization.

This all sounds great, but Flanagan did note there are some potential problems:

• They might hate doing it.
• They might lack expertise about your issues.
• Volunteers might not be dependable.
• Control.

At the end of the day, it seems that using volunteers as fundraisers is a great idea. Just make sure to consider the negatives before making a final decision. For more information like this, visit the management tips section of our website.

Prince William County To Change Nonprofit Funding Process

Prince William County in Virginia unveiled Thursday a new process that will change the way that nonprofits receive funding.

According to a report in The Washington Post, budget director Michelle Casciato announced a process that is designed to be more transparent and make nonprofits more accountable. Organizations would have to submit their public tax returns to the county, sign a "memorandum of understanding," and file audited financial statements. To be approved for funding, its activities must directly support the goals of county departments. Finally, if a group wants to re-apply for funding, it must submit a list of goals accomplished in the previous year.

These changes come after Prince William County's funding procedures came under heavy scrutiny. After the allocation of discretionary funds to nonprofits were criticized as using taxpayer money for political gain, the practice was banned in June. And this month, the Board of County Supervisors rejected a proposal from Supervisor Peter K. Candland (R-Gainesville) that would have required board members and their spouses to reveal any involvement with nonprofits.

The funding changes announced could potentially impact organizations that have historically received funding from the county, Casciato said, so groups should not expect to be approved automatically.

“We continue to become more clear . . . in terms of what the organizations expect from us and what we expect from organizations,” she said.

You can read the full story in The Washington Post.

Morris Brown College To Face Foreclosure

Morris Brown College, one of the nation's oldest black colleges, has an uncertain future ahead as it faces foreclosure next month.

The Atlanta college has long struggled to remain open as it dealt with financial difficulties over the last decade. But now, according to a report in The Atlanta Journal-Constitution, the school is in trouble. Once boasting more than 3,000 students, enrollment is down to just 50. In the face of growing debt and shrinking support, it will go under foreclosure next month after investors called $13 million worth of bonds tied to the college.

An auction of all of Morris Brown's assets is scheduled for Sept. 4.

The bonds in question were issued by the Fulton County Development Authority in 1996. Atlanta was riding high times during this period, as cash from the Summer Olympics loomed. As security for the bonds, Morris Brown pledged pieces of its property, including the administration building. That is one of the key assets that will be up for auction on Sept. 4.

Hoping to stave off foreclosure, Preston W. Williams, chairman of the board of trustees of Morris Brown, is calling for a "National Day of Prayer" on Saturday and is calling for everyone associated with the school to donate money. The school is currently in the process of reorganizing and restructuring as well as trying to get accreditation from the Transnational Association of Christian Colleges and Schools.

The low point of Morris Brown's troubles came in 2006. After losing its accreditation from the Southern Association of Colleges and Schools in 2003, and financial support from various other organizations, former school President Dolores Cross pleaded guilty to embezzling federal funds by applying for money on behalf of students without their consent. She was ordered to pay $13,942 to the government and was sentenced to five years of probation.

The Atlanta Journal-Constitution reported last July that Morris Brown owed more than $30 million to several creditors. The school also owed $9.9 million to the U.S. Department of Education, though it had raised $500,000 in attempt to settle that debt.

You can read the full story in AJC.

Boston Marathon Races Money To Nonprofits

Financial services group John Hancock raised a record $6.8 million for nonprofits through its Boston Marathon program. The funds represented a 29 percent increase from the totals from the 2011 results.

As part of John Hancock’s sponsorship of the race, nonprofits are guaranteed entry numbers that enable funds to be raised for that organization. More than 1,000 runners helped raise money and awareness for 122 organizations in this year’s Marathon, which occurred on April 16. Approximately 114 of the racers were employees from John Hancock and its parent company, Manulife Financial. They raised $200,000 towards the following organizations: the Boys & Girls Club of Boston, the Center for Teen Empowerment, Ron Burton Training Village and Habitat for Humanity Canada.

"Our employees are a source of pride each year as they dedicate their running to benefit our community partners," said James R. Boyle, President of John Hancock, said in a statement. "We are especially proud our Boston Marathon principal sponsorship made it possible for so many individuals to raise money and awareness to support great causes throughout greater Boston."

Other organizations that benefited from the 2012 Boston Marathon were Mass General Hospital for Children, Boston Children's Hospital, Tufts University, Boston Medical Center, Massachusetts Eye & Ear Infirmary, the Hoyt Foundation, Horizons for Homeless Children, and Perkins School for the Blind.

"Each year countless individuals in Boston and beyond are touched in many ways, large and small, by John Hancock's Boston Marathon Non-Profit program,” said Peter L. Slavin, MD, President, Massachusetts General Hospital, in a release. "At Mass General, this important funding has supported programs that enhance the quality of care for our youngest cancer patients and fuel innovative research focused on finding better cancer treatments and cures. We are grateful for John Hancock's generosity and the hope it offers to the children and families we serve."

This was the 15th year Mass General has partnered with John Hancock. The organization has raised $765,000 through the 2012 marathon to date, and $8 million since the year of their first involvement in the program.

In addition to money raised for participating organizations, John Hancock led an effort among its business partners to raise almost $150,000 for the Myra H. Kraft Giving Back Scholarship Fund at the Boys & Girls Club of Boston. The fund was established in 2003 to honor the 40th wedding anniversary of Robert Kraft, who is owner of the New England Patriots, and Myra, who passed away in July of last year.

The Boston Marathon has for years bought economic prosperity to the city. In 2012, the race bought an estimated $137.5 million in spending impact to the Greater Boston region, according to statistics from the Greater Boston Convention & Visitor Bureau.

Nonprofit Board Fundraising Tips

Nonprofit boards have the capability to be a powerful tool for fundraising. There's only one problem: It's not exactly easy getting members on board for it.

Board members already have a lot on their plate, so it can be a challenge to get them to raise money for the organization. At the Association of Fundraising Professionals (AFP) 49th International Conference on Fundraising, fundraising consultant Julia Ingraham Walker gave 10 steps for making the board an effective partner on the fundraising team. They are:

• Build board buy-in for taking a leadership role in fundraising. Educate board members about long-term needs and goals.
• Provide training in fundraising for all board members. Plan a retreat or bring in a consultant.
• Recruit new board members strategically. Look for fundraising experience or the capacity to give more.
• Educate board members about fundraising needs and goals. Involve board members in strategic planning.
• Set the pace with board giving. Start by setting a 100 percent participation goal.
• Define roles for board and staff.
• Build board partnerships in the annual fund. Participate actively in annual fund solicitation.
• Build board partnerships in major gifts. Help identify and cultivate major gift prospects.
• Build board leadership in the campaign. Take part in the planning phase.
• Raise sights with the board. Begin with gifts from board members themselves, use challenges and matches effectively and talk about and plan for larger gifts.

ALSAC Executive David McKee Laid To Rest After Death In Car Crash

David McKee, senior vice president and chief operating officer at American Lebanese Syrian Associated Charities (ALSAC), the exclusive fundraising organization of St. Jude Children’s Research Hospital, was laid to rest yesterday following his death in a car crash. He was 66.

The accident occurred when a 16-year old girl collided with his car at around 2:30 p.m. Both drivers were able to get out of their vehicles and talk to each other but, as his condition began to deteriorate, McKee was transported to the Regional Medical Center at Memphis. He died at 7:35 p.m.

“David McKee was so much more than one of the world’s great philanthropic leaders,” said ALSAC CEO Rick Shadyac in a statement. “He was a dear friend and mentor to me and many others who worked with him during his 35-year career at ALSAC. He also was a passionate advocate for the patients of St. Jude and for children everywhere who have benefitted from our work. We have lost one of the icons of our organization, and his family is in our hearts and prayers.”

McKee first joined ALSAC in 1977, serving as interim chief executive officer before moving on to his position as senior vice president and chief operating officer. He was responsible for a number of fundraising programs and initiatives, including the St. Jude Country Cares radio program. During his tenure, he increased earnings from $11.9 million in his first year to $691.9 million in fiscal year 2010. ALSAC is currently the second largest health care charity in the country.

McKee is survived by his wife, Portia; three kids, David, April, and Amanda; and three grandchildren, Charlie, Emily, and Caroline. A funeral was held yesterday, and the McKee family requests that any memorials be sent to St. Jude Children’s Hospital. Individuals can also make an online donation to the David McKee Fund at http://fundraising.stjude.org/goto/davemckee

Ex-Nonprofit Executive Charged With Medicaid Fraud

The former executive of a Topeka, Kan.-based nonprofit was charged today with attempting to steal more than $2 million in Medicaid funds, according to a report on WIBW.com.

U.S. Attorney Barry Grissom made the announcement today, charging Jason Sellers with one count of wire fraud in a criminal complaint filed in the U.S. District Court in Topeka.

"Health care fraud drives up the cost for all patients and consumers," Grissom said. "In partnership with the state, my office is working to protect and strengthen the entire health care system."

It is alleged that while Sellers was chief financial officer of Kansas Health Solutions (KHS), he diverted medicaid funds to a sham company he created called Advanced Business Consulting (ABC). He is then said to have billed KHS for information technology services ABC performed, as well as for other personal items such as sports equipment for a local team with which he was associated from 2007-2011. In addition, Sellers allegedly used some of the stolen money to build and refurbish a $375,000 home in Lyndon, Kan.

If convicted, Sellers faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. You can read the full story on WIBW.com.

Prospect Information Collection Rules

It goes without saying that a major part of prospect research is information collection. Being in charge of the private information of prospects is a big responsibility, so it's important that fundraisers maintain high integrity when handling this information.

At a recent AFP International Conference on Fundraising, Chair Robbe Healey of Simpson Senior Services and Bill Bartolini of George Washington University discussed issues of ethics and honesty in assembling and keeping donor information. In particular, they discussed fundamental principles adapted from the Association of Professional Research for Advancement (APRA) and its statement of ethics.

These standards pertain to information collection in the following ways:

• All information will be collected in a legal manner;
• A good faith effort will be made to collect and store information that is verifiable;
• We will be honest in identifying our jobs, our employers and ourselves;
• We will collect only information of value in the development process;
• We will respect the wishes of the person being researched;
• Whenever possible, we will use second party sources (such as online databases) for public documents such as SEC forms, property and stock holdings and court documents; and,
• Based on personal research, it is known that certain public documents are sensitive to some constituents and the use of them for fundraising purposes may strain relationships between the individual and the organization.

Any breach of trust that occurs between the nonprofit and the prospect will not only destroy the relationship with that individual, but also has the potential to damage beyond repair the organization's reputation overall. This is why it's imperative that nonprofit managers make sure their fundraisers take these rules to heart.

Seattle Nonprofit Undergoes Audit

SouthEast Effective Development (SEED) in Seattle is undergoing a review of its programs and goals as well as an outside audit, reviews that could determine the organization's direction in the future.

In addition to these developments, SEED's executive director -- Earl Richardson -- is on indefinite leave and its finance director was recently dismissed, according to a report in The Puget Sound Business Journal. Richardson, who has lead the nonprofit since 1995, has said his leave is due to medical issues and he is not sure when he will return.

The audit of SEED was requested by interim executive Mark Flynn, a retired U.S. Department of Housing and Urban Development (HUD) executive. He said the audit's purpose is to make sure the organization is current on all of its accounts. The housing nonprofit recently had a three-month stretch when it stopped making payments on a $925,000 loan connected with a retail space.

SEED was founded in 1975 and was a major player in Seattle's effort to bring economic and community development to the city's ethnically and economically diverse areas. The organization was responsible for the revitalization of the Columbia City retail district in the 1980s and 90s. A 2010 IRS filing showed that SEED managed more than 700 housing units "through ownership, sponsorships, and contractual assistance."

Virginia Kenyon, SEED's board president, said the organization is considering returning to economic development, which it abandoned after the private United Way funding that sustained those efforts dried up in the 1990s and 2000s. Changes could potentially include the dismissal of Richardson as executive director, as Kenyon noted that positions serves at the discretion of the board.

You can read the full story in The Puget Sound Business Journal.

14 Tips For A Successful Major Gift Solicitation

There's a lot to consider when soliciting prospects for major gifts. You can't simply walk up to a donor and ask for one and expect a positive result.

In his "Major Gifts Solicitation Guide," Alexander Macnab, president of Chicago-based Alexander Macnab & Co., offers 14 tips to help fundraisers become more successful in their attempts to obtain major gifts for their organization:

• Solicitors must make their own gift or pledge first.
• Solicitors must know the story and the needs of the organization and of the campaign.
• Solicitors must know as much as possible about their prospects.
• Solicitation assignments must be made selectively, on a peer basis or with "name and/or title impact" in mind.
• Solicitation of Development Committee, Board of Directors, and all leadership gift prospects must take place in the context of a personal visit.
• Have a dollar figure in mind when conducting a solicitation.
• Solicitors should be able to relate the interests of prospects to particular gift opportunities to establish the campaign initiatives.
• When calling with more than one person, solicitors should decide who will say what to whom and in what order.
• Solicitors should sell the objectives of the project, not the tax advantages.
• Solicitors should allow the prospect to answer questions, voice doubts, and respond to the proposal. Listen and respond to the individual's point of view. Talk 20 percent of the time and listen 80 percent.
• Never argue. Criticisms and objections are possible signs of interest.
• Solicitors should stress their own commitment, financial and in terms of use, as a sign of possibility for further donor involvement.
• Follow up -- a "thank you" note, an answer to a question, confirmation of the next meeting date, or whatever is appropriate -- should be conducted immediately following a call.
• Solicitors should debrief the development office as soon as possible following the call.

If you keep all of these points in mind when conducting a major gift solicitation, you should find the process a lot less stressful.

12 Hiring Tips

Making crucial decisions based on a "gut feeling" is a time-honored tradition that is used in many different fields. Whether it's a baseball manager making a pitching change because he "likes the match-up" or choosing an ice cream flavor based on what it looks like, many people make gut-based decisions.

When it comes to hiring an employee, however, it's best to be a little more careful.

In their book "Being Buddha at Work," Franz Metcalf and B.J. Gallagher wrote that hiring managers pay too little attention to a job applicant's work history, ability to learn and grow, and ability to work well with others. In addition to these skills, Metcalf and Gallagher suggest 12 other tips to enhance your hiring process:

• Don’t limit your search to obvious candidates.
• Be clear about what is required in the job.
• Consider what it takes to be successful in your particular organization and/or department.
• Involve many people in the interview process.
• Ask behavioral questions. The best predictor of future performance is past performance. 
• Don’t use hypothetical questions.
• Hiring is a two-way process. Make sure the candidate has an opportunity to ask lots of questions.
• Don’t be in a hurry to hire. Haste in the beginning can be costly later.
• Use job tests when you can, whether it’s a typing test, a computer simulation, or a role-playing scenario.
• Be sure to consider the candidate’s future potential.
• Be honest with the candidate about the nature of the job as well as future growth potential.
• Look especially careful at someone who interviews well or tries to get away with glib answers to questions. This individual may be good at interviewing, but make sure he/she has other skills to back up those interviewing skills.

Featured Nonprofit Job: Publications And Communications Manager

Future Business Leaders of America-Phi Beta Lambda (FBLA-PBL) in Reston, Va., is looking to hire a Publications and Communications Manager. Think you have what it takes to be successful at this job? Read on for more details.

The chosen candidate for this position will manage and coordinate all aspects of publications and communications. This includes writing, editing, and distributing student and teacher magazines, eNewsletters, press releases, speeches, brochures, and other materials.

In addition to writing and editing skills, applicants must also be proficient in technology. Specifically, the successful candidate must have knowledge of web site content management systems, cloud technologies, and all aspects of social networking. Other requirements for the job include knowledge of production and printing processes, budget management, and expertise in InDesign/QuarkXPress.

If you are interested in this position, head to our career center for instructions on how to apply.

California Considers Nonprofit Mismanagement Bill

The California state Legislature is considering a bill that would give the state attorney general's office more power to crack down on nonprofits that are found to be mismanaging charitable funds.

California Watch reported today that a bill by Assemblyman Mike Feuer (D-West Hollywood) would give the attorney general the ability to take legal action against a charity or fundraiser if it fails to provide the required documents or makes a false statement in application or report. Current law requires the state to prove that there was intent to deceive before taking action.

Organizations would be given a penalty of up to $1,000 per violation after a five days' notice. The bill passed the Assembly, and will be heard in the Senate Appropriations Committee today.

According to analysis by staff from the Assembly Judiciary Committee, the attorney general's office is unable to prevent fraud from occurring with its current powers. The report claimed that this is the case even in instances when concerns are raised about a nonprofit before charitable donations are lost.

The state of California has dealt with many cases of alleged fraud in recent years. In 2010, the attorney general's office reached a settlement with the Association for Firefighters and Paramedics Inc. The state accused the Santa Ana-based organization of spending thousands of dollars meant for burn victims on a Caribbean cruise, trips to resorts, and other personal expenses. The nonprofit denied any wrongdoing in the case.

Bill AB 2327 is very similar to laws that are already in place in other states. The one difference is that the law, if passed, would require fiscal sponsors of charities to have directors' and officers' insurance in case they lose the money the are managing.

You can read the full story in California Watch.

Choosing Your Nonprofit's Fiscal Year

The words "fiscal year" always seem to make an appearance when reading reports about nonprofit finance or accounting. Contrary to popular belief, a fiscal year doesn't just begin when the new year starts; it begins whenever the nonprofit wants it to.

Well, almost.

As explained by Thomas Wolf in "Managing a Nonprofit Organization," a nonprofit's fiscal year can begin at any point during the year as long as its end date is specified in the documents in which it is mentioned. These dates are usually not chosen at random. Whether it's to honor the organization's anniversary or the birthday of a high level executive, fiscal years can have a lot of meaning. As such, great care should be taken in choosing a date.

What makes a good beginning and end to a fiscal year? Wolf laid out three considerations to keep in mind:

• It should roughly parallel the organization’s program year. That is, one year’s program activities should not fall into two fiscal years.
• The fiscal year should end, whenever possible, just before a period of relative inactivity.
• The fiscal year-end may be chosen to coincide with a primary funder’s fiscal year-end and resulting reporting requirements. For example, if a major portion of an organization’s support is from the state government, the nonprofit may select the same fiscal year-end as the state to simplify reporting on state grants.