The former treasurer of a Tallahassee, Fl.-based nonprofit is being charged with stealing more than 90,000 from the organization.
According to a report on Tallahassee.com, Jamie Pitts was arrested Wednesday after investigators discovered she allegedly wrote checks to herself from the nonprofit for she worked, Child Advocates II, over two years. The organization obtains its donations from Guardian Ad Litem, a group that serves Florida's abused and neglected children.
Authorities allege that Pitts, who had sole access the nonprofit's account, deposited the 159 checks totaling more than $90,000 into her personal bank account. She allegedly represented the checks as expense reimbursements most of which she listed as "voided" when she presented financial statements to Child Advocates' board. The checks were reportedly written starting in August 2010 and ending on April 27, 2012.
Brad Sealey, chair of the board, first discovered the alleged theft in March when he discovered the organization's account had a negative balance. When he was able to gain access to the account by proving he was the chair of Child Advocates' board, he discovered Pitts' alleged actions.
In a sworn statement, Sealey said that the organization's bylaws state that any reimbursements must be approved by a resolution of the board, and that no such resolutions were ever made to reimburse Pitts.
Pitts faces charges of grand theft and organized scheme to defraud. You can read the full story on Tallahassee.com.
Friday, May 10, 2013
Thursday, May 9, 2013
5 Ways To Keep In Touch With Monthly Giving Donors
Your work is done just because you got a donor to join your monthly giving program. Far from it; in fact, as fundraising consultant Pamela Grow explains, your work is just beginning.
Grow says that it's up to you as a fundraising professional to make sure your monthly donors are made to feel special. As a member of an exclusive club, these individuals are going to be expecting world-class treatment. One of the best ways to accomplish this is to keep in constant contact with them.
In her e-book, "The Lifetime Donor Attraction System," Grow shared five tips on how to keep in contact with your monthly donors:
Grow says that it's up to you as a fundraising professional to make sure your monthly donors are made to feel special. As a member of an exclusive club, these individuals are going to be expecting world-class treatment. One of the best ways to accomplish this is to keep in constant contact with them.
In her e-book, "The Lifetime Donor Attraction System," Grow shared five tips on how to keep in contact with your monthly donors:
- Don’t stop communicating. Keep sending emails, as well as offers to upgrade their monthly commitments. These donors are also excellent prospects for planned giving, having demonstrated dedication to your nonprofit.
- Send monthly donors special versions of your regular communications. Make sure they reference the donor’s membership in your monthly giving program.
- Give them special opportunities, such as events, guided tours and access to your organization’s executives. Make sure they know the opportunity is exclusive to monthly givers.
- Send special thank-yous. Think about including premiums in your thank-you correspondence with monthly donors.
- Don’t neglect your regular correspondence. Follow up if a monthly sustainer’s renewal lapses or if she suspends payments.
Monday, May 6, 2013
Debt Causes Chicago's Field Museum To Auction Off Collections
If you are hoping to see famous items such as paintings by 19th century artist George Caitlin at Chicago's Field Museum of Natural History, you will be out of luck. Citing massive debt bought on by the Great Recession, the museum has auctioned off these works and some of its other collections in order to stay afloat.
According to report on NPR, the museum saw its endowment take a huge hit after the stock market tanked both in 2002 and 2008. Combined with bonds issued in 2002 to add an undergrounds collection center and make other updates, the Field Museum found itself in massive debt. To make matters worse, an expected increase in attendance did not occur, causing the institution to miss its fundraising goals.
Even after various cost-cuttings and layoffs, Field Museum CEO Richard Larivere told NPR that the institution's budget is still $5 million in the red, and most of that budget is slated to pay off debt.
Larivere became CEO this year and arrived after the previous head had decided that the best course of financial action was to sell off some of its collections. The practice -- known as deaccessioning -- is common in the museum world though there are some generally accepted guidelines on how the funds from these sales are to be used. For example, University of Kansas' Biodiversity Institute states that institute will only deaccession collections to "establish order and purpose to the collection," among other reasons.
The Field Museum used the nearly $15 million in funds from their deaccessioning to pay off certain staff members and to purchase new artifacts, which Larivere said is within the accepted guidelines for the practice. He also said that the museum would continue to sell off collections if it needed more money to balance their budget.
Although deaccessioning is an accepted practice there is some concern that it could cause donors to think twice before donating treasured items to museums.
You can read the full story on NPR's website.
According to report on NPR, the museum saw its endowment take a huge hit after the stock market tanked both in 2002 and 2008. Combined with bonds issued in 2002 to add an undergrounds collection center and make other updates, the Field Museum found itself in massive debt. To make matters worse, an expected increase in attendance did not occur, causing the institution to miss its fundraising goals.
Even after various cost-cuttings and layoffs, Field Museum CEO Richard Larivere told NPR that the institution's budget is still $5 million in the red, and most of that budget is slated to pay off debt.
Larivere became CEO this year and arrived after the previous head had decided that the best course of financial action was to sell off some of its collections. The practice -- known as deaccessioning -- is common in the museum world though there are some generally accepted guidelines on how the funds from these sales are to be used. For example, University of Kansas' Biodiversity Institute states that institute will only deaccession collections to "establish order and purpose to the collection," among other reasons.
The Field Museum used the nearly $15 million in funds from their deaccessioning to pay off certain staff members and to purchase new artifacts, which Larivere said is within the accepted guidelines for the practice. He also said that the museum would continue to sell off collections if it needed more money to balance their budget.
Although deaccessioning is an accepted practice there is some concern that it could cause donors to think twice before donating treasured items to museums.
You can read the full story on NPR's website.
Two Men Charged In Alleged 9/11 Charity Scam
Two men have been indicted for allegedly operating a bogus 9/11 charity, New Jersey Attorney General Jeffrey S. Chiesa announced today.
Mark Niemczyk and Thomas Scalgione were indicted Friday on third-degree charges of conspiracy and theft by deception. The two men operated a pick-up truck from which they operated a charity that was supposed to raise money for the victims of the 9/11 attacks or related charities. The men allegedly sold t-shirts and collected donation at 9/11 events. The funds they raised -- in excess of $50,000 -- never made it to victims' families or 9/11 charities as promised, according to Chiesa.
“It’s a sad reality that in the wake of a devastating tragedy, when so many want to help, there are always parasites who view the tragedy and the generosity of others as nothing more than the opportunity and the means to turn a crooked profit for themselves,” said Chiesa.
The state alleges that Niemczyk and Scalgione, who registered their operation with the state, took all of their proceeds and deposited it into their personal bank accounts to pay for unrelated expenses. As a result of their alleged fraud, the two men were able to purchase the t-shirts they sold at a discounted rate by telling vendors that the proceeds from their sales would benefit victims' families. One vendor gave discounts totaling $3,312, and another gave discounts totaling $1,378.
Elie Honig, director of the New Jersey Division of Criminal Justice, also alleges that the men told other lies in the name of donations. Niemczyk allegedly claimed that he was a Navy SEAL who did three tours of duty in Vietnam, and that he and Scalgione were father-and-son firefighters who were working at a firehouse near the World Trade Center on 9/11.
“Their conduct was outrageous, and we urge any victims who donated money or bought T-shirts from these con artists to contact us,” said Honig.
The charges against Niemczyk and Scaligione stem from an investigation by the Division of Criminal Justice Financial & Computer Crimes Bureau. The criminal investigation began with a referral from the Division of Consumer Affairs, which in November secured a final consent judgment in a civil action, under which the men must pay a total of more than $200,000, representing disgorgement of donations and payment of civil penalties, attorneys’ fees and investigative costs. The judgment bars the men from ever working for any charitable organization in New Jersey should they be convicted.
You can read the full indictment on the state of New Jersey's website.
The state alleges that Niemczyk and Scalgione, who registered their operation with the state, took all of their proceeds and deposited it into their personal bank accounts to pay for unrelated expenses. As a result of their alleged fraud, the two men were able to purchase the t-shirts they sold at a discounted rate by telling vendors that the proceeds from their sales would benefit victims' families. One vendor gave discounts totaling $3,312, and another gave discounts totaling $1,378.
Elie Honig, director of the New Jersey Division of Criminal Justice, also alleges that the men told other lies in the name of donations. Niemczyk allegedly claimed that he was a Navy SEAL who did three tours of duty in Vietnam, and that he and Scalgione were father-and-son firefighters who were working at a firehouse near the World Trade Center on 9/11.
“Their conduct was outrageous, and we urge any victims who donated money or bought T-shirts from these con artists to contact us,” said Honig.
The charges against Niemczyk and Scaligione stem from an investigation by the Division of Criminal Justice Financial & Computer Crimes Bureau. The criminal investigation began with a referral from the Division of Consumer Affairs, which in November secured a final consent judgment in a civil action, under which the men must pay a total of more than $200,000, representing disgorgement of donations and payment of civil penalties, attorneys’ fees and investigative costs. The judgment bars the men from ever working for any charitable organization in New Jersey should they be convicted.
You can read the full indictment on the state of New Jersey's website.
Thursday, May 2, 2013
Idaho's First Giving Day Begins
The inaugural edition of Idaho Gives, a statewide online giving campaign run by the Idaho Nonprofit Center, began today, with more than 500 charities taking part in the event.
As reported by The Boise Weekly, there were already 1,000 donations by sunrise this morning, and donors have until 11:59 p.m. to continue giving. The five nonprofits with the most unique donors by the end of the day will receive onus grants of $3,000, $1,000, $500, $250, and $250 respectively.
All donations made on the Idaho Gives website are made to the Razoo Foundation, a 501(c)(3) tax-exempt organization which permits donors to advise a regranting of their donations to other IRS recognized qualifying 501(c)(3). The Foundation will then regrant 97.1% of its contribution to the qualifying organization as advised by the donor, retaining 2.9% for Razoo Foundation’s expenses.
Participating nonprofits are divided into three categories based on their size: Large, medium, and small. Currently leading the "large" category is Idaho Humane Society Inc., which has 134 unique donors giving $5,952. Idaho Falls School District 91 Education Foundation Inc., rounds out the "medium" category with 59 unique donors giving $2,765. Finally, Girls on the Run-Idaho Inc., leads the "small" category with $1,325 in donations from 35 unique donors.
State online giving days have a long history of success for nonprofits. In a recent article on The NonProfit Times, it was reported that 800 nonprofits received over $1 million in donations from Arizona Gives Day, held on March 20.
You can read the full story in The Boise Weekly.
As reported by The Boise Weekly, there were already 1,000 donations by sunrise this morning, and donors have until 11:59 p.m. to continue giving. The five nonprofits with the most unique donors by the end of the day will receive onus grants of $3,000, $1,000, $500, $250, and $250 respectively.
All donations made on the Idaho Gives website are made to the Razoo Foundation, a 501(c)(3) tax-exempt organization which permits donors to advise a regranting of their donations to other IRS recognized qualifying 501(c)(3). The Foundation will then regrant 97.1% of its contribution to the qualifying organization as advised by the donor, retaining 2.9% for Razoo Foundation’s expenses.
Participating nonprofits are divided into three categories based on their size: Large, medium, and small. Currently leading the "large" category is Idaho Humane Society Inc., which has 134 unique donors giving $5,952. Idaho Falls School District 91 Education Foundation Inc., rounds out the "medium" category with 59 unique donors giving $2,765. Finally, Girls on the Run-Idaho Inc., leads the "small" category with $1,325 in donations from 35 unique donors.
State online giving days have a long history of success for nonprofits. In a recent article on The NonProfit Times, it was reported that 800 nonprofits received over $1 million in donations from Arizona Gives Day, held on March 20.
You can read the full story in The Boise Weekly.
Wednesday, May 1, 2013
The May 1 2013 Edition Of The NonProfit Times
The May 1, 2013 edition of The NonProfit Times is jam-packed with big news in the sector. Current events such as the Boston Marathon bombings and the Boy Scouts' decision on allowing gay members are covered, in addition to our special report on professional development.
Here's a sneak peak at the featured articles of the new issue:
Special Report
Here's a sneak peak at the featured articles of the new issue:
Special Report
- Making The Grade: Can Anyone Get Into Nonprofit Education Programs?: What’s it take to get into nonprofit education programs? Students heading into next year’s master’s program at Indiana had an average college grade point average of 3.45 and an average GRE score of 1,181 (549 verbal and 632 quantitative).
Articles
- NPT Survey: CFOs Get Comfortable With Thinner Margins: This exclusive survey conducted by The NonProfit Times asked a number of questions of nonprofit financial executives. They were asked questions regarding their organizations’ actual situation and then perceptions regarding the economy and general operations.
- Events Planning Gets Second Look After Boston Attack: Many organizations are rethinking the risk management elements of large, outdoor events after the bombings that killed three and injured hundreds more at the Boston Marathon.
- Scouts' Survey Shows Members Split About Stand On Gays: As the Boy Scouts of America prepare to vote on whether to allow gay members, a survey conducted by the organization shows that many of its existing members are split on the topic.
Columns
- No Surprises: Volunteers are at the heart of most nonprofits, but your nonprofit’s heart might beat a dangerous rhythm without volunteer risk management.
- What Time Are You?: In the professional world, there is no more powerful determinant of individual style, effectiveness, or influence than one’s orientation to time.
The articles above are just a sampling of the content included in the May 1 issue. If you are not already a subscriber, head to our online store to purchase a subscription so you can read the full issue, which includes an exclusive interview with former Scoutmaster James Dale.
Tuesday, April 30, 2013
10 Fundraising Rules For Managers
Nonprofit managers often have to wear multiple hats if their organization's mission is to succeed. One of those roles requires them to chip in on the fundraising side of the operation.
The word "fundraising" can make any executive start to sweat, but it doesn't have to be that way. Susan Black of Allene Professional Fundraising shares these 10 rules in her white paper, “Ten Rules to fundraise By.”
The word "fundraising" can make any executive start to sweat, but it doesn't have to be that way. Susan Black of Allene Professional Fundraising shares these 10 rules in her white paper, “Ten Rules to fundraise By.”
- People give to people. A gift officer needs to win a donor’s trust so he or she knows the donation is in good hands.
- Know your story, then articulate it. It’s the gift officer’s job to translate the organization’s impact into relatable, digestible bits of information.
- Have a plan. Your organization needs both a strategic and a fundraising plan.
- Get out of the office. Connect with donors face-to-face.
- Identify, cultivate, ask and than, then do it again. Your work doesn’t stop with the first gift; turn your donors into advocates for your organization and they’ll be more valuable, both monetarily and otherwise.
- Remember, you are brilliant. Recognize how important your work is, and have confidence that you can get the job done.
- Your only job with volunteers is to make them successful. Volunteers want to feel useful, be managed, feel appreciated, have an impact and share your success. Your volunteer management plan must take their needs into account.
- If it’s not in the database, it didn’t happen. Recordkeeping is of vital importance.
- It’s not about you. It’s about the donor. Practice donor-centered fundraising, and always be aware of the donor experience.
- Measure it. Start with the end in mind, consider all the costs, and create success metrics before you have to use them, not after.
Monday, April 29, 2013
Chicago Proposes Water Rates Compromise For Nonprofits
Chicago Mayor Rahm Emanuel is proposing a compromise for nonprofits that only recently found out they would be losing their exemption from water rates. The announcement came after meetings with leaders from nonprofits and select aldermen.
One of Mayor Emanuel's central promises of his election campaign was to end the practice of supplying free water to the many nonprofits in Chicago in order to help the city's budget. According to a report on DNAinfo.com Chicago, the Mayor had said the practice cost the city $20 million per year.
The water policy was changed as promised, but quickly met resistance from nonprofits, which claimed the rates were negatively affecting their ability to operate. While remaining firm on his pledge that he would not "give away" tax payer's money, Emanuel signaled last year that he would at least "study" a proposal by his aid Bob Fioretti, that would implement a sliding scale for rates based on an organization's assets.
Today's announcement indicates that he agreed with that plan, as the Mayor's compromise shares some of the features of Fioretti's plan. Under the compromise, nonprofits with overall assets under $1 million would not have to pay water fees. Those valued at between $1 million and $10 million, however, would still pay the feed but would get a 60 percent exemption. Those between $10 million and $250 million would get a 25 percent exemption.
Finally, those valued at more than $250 million would receive no additional exemption, although a public-museum exemption would remain at 20 percent regardless of asset level.
You can read the full story on DNAinfo's website.
Finally, those valued at more than $250 million would receive no additional exemption, although a public-museum exemption would remain at 20 percent regardless of asset level.
You can read the full story on DNAinfo's website.
Friday, April 26, 2013
5 Steps To A Nonprofit Pilot Program
Does your nonprofit have an interesting idea that hasn't yet been tested? Before you throw caution to the wind and test your idea in real-world conditions, it's a good idea to run it as a pilot program first to iron out any potential problems.
Alex Neuhoff and Andrew Belton in their report, “Putting Clients at the Center: A Planning Guide for Multi-Service Organizations,” produced by The Bridgespan Group, outlines five questions to ask when designing a pilot program:
Alex Neuhoff and Andrew Belton in their report, “Putting Clients at the Center: A Planning Guide for Multi-Service Organizations,” produced by The Bridgespan Group, outlines five questions to ask when designing a pilot program:
- Where and how will you start? Do you want to focus on a specific client base, or specific region? If you plan to narrowly focus the pilot, be sure you’ll be able to generalize the results across your organization.
- How will you evaluate the pilot? Look at process, program activities and outcomes. Decide if you want a more comprehensive (and expensive) outside evaluation, or if you’ll do it in-house.
- How much will the pilot cost? The cost usually comes out to additional costs of your approach, investments in infrastructure, and management of the pilot. You can break these down into one-time “setup” costs and ongoing costs related to the new program.
- How will you pay for it? Will you chase additional grants or pay for it from your financial reserves, or a combination of the two?
- How do you use what you’ve learned? What challenges and unforeseen developments have the pilot uncovered? How do you scale up the pilot to an organization-wide program?
Thursday, April 25, 2013
Telling Your Nonprofit's Story
One could argue that the key to fundraising is presenting a story that is relatable while also telling potential donors what they can do about the particular situation.
So what's your nonprofit's story?
In his book “Winning The Story Wars,” Jonah Sacks suggests the use of
what he calls core story elements, the components that will become
part of the story strategy. Seeing members of the target audience as heroes in the making and
recognizing the organization’s need and ability to mobilize them with a
compelling story and inspiring message makes donors feel as though they
can make a big difference.
The core story elements are:- Brand Hero. This is the embodiment of the primary audience the organization seeks to reach.
- Brand Mentor. This is the embodiment of the brand.
- Brand Gift. This is the creative wild card that makes the brand special and makes the brand hero believe higher-level values can be pursued through a relationship with the brand.
- Moral of the Story. This is the core message that underlies, sometimes subtly and sometimes overtly, every story the organization tells.
- Brand Boon. This is the contribution to the world that the brand hero will ultimately make.
Wednesday, April 24, 2013
Report: Nonprofit Used State Funds For Perks
A nonprofit funded by the state of New York is being accused of paying for excessive executive perks, according to a report issued by the office of state Comptroller Thomas DiNapoli. The findings are now being referred to U.S. Attorney Preet Bharara's office for review.
Phoenix Houses of New York, which operates a number of residential and outpatient rehab programs in New York City, Long Island, and upstate New York, is alleged to have provided $223,000 worth of inappropriate perks while under contract with the Office of Alcoholism and Substance Abuse Services (OASAS). This includes allegedly paying $91,050 for executive bonuses, $40,447 for fringe benefits, and $35,996 for vehicle leases from July 2009 to June 2010.
The report also alleges that Phoenix Houses failed to report $290,000 in Medicaid revenue to OSASAS which would have reduced the amount the agency's payments to the nonprofit.
"This was money intended to treat people struggling with substance and gambling addiction, not to subsidize unwarranted perks for high-salaried executives," DiNapoli said. "My office will work closely with U.S. Attorney Bharara's office to ensure that those abusing the public trust are held accountable."
Auditors and investigators also discovered that one employee allegedly made $4,000 in "improper" purchases of Wal-Mart gift cards used for alcohol, cigarettes, and other inappropriate items. The employee allegedly covered up these purchase by submitting falsified receipts.
Based on the finding, DiNapoli recommends that OASAS should strengthen controls to monitor Phoenix Houses' contract compliance, recover the alleged improper funds, and recover executive overpayments if they are determined to not be justified.
A call to Phoenix House for comment was not immediately returned.
You can read the full report on state Comptroller's Office website.
Phoenix Houses of New York, which operates a number of residential and outpatient rehab programs in New York City, Long Island, and upstate New York, is alleged to have provided $223,000 worth of inappropriate perks while under contract with the Office of Alcoholism and Substance Abuse Services (OASAS). This includes allegedly paying $91,050 for executive bonuses, $40,447 for fringe benefits, and $35,996 for vehicle leases from July 2009 to June 2010.
The report also alleges that Phoenix Houses failed to report $290,000 in Medicaid revenue to OSASAS which would have reduced the amount the agency's payments to the nonprofit.
"This was money intended to treat people struggling with substance and gambling addiction, not to subsidize unwarranted perks for high-salaried executives," DiNapoli said. "My office will work closely with U.S. Attorney Bharara's office to ensure that those abusing the public trust are held accountable."
Auditors and investigators also discovered that one employee allegedly made $4,000 in "improper" purchases of Wal-Mart gift cards used for alcohol, cigarettes, and other inappropriate items. The employee allegedly covered up these purchase by submitting falsified receipts.
Based on the finding, DiNapoli recommends that OASAS should strengthen controls to monitor Phoenix Houses' contract compliance, recover the alleged improper funds, and recover executive overpayments if they are determined to not be justified.
A call to Phoenix House for comment was not immediately returned.
You can read the full report on state Comptroller's Office website.
Tuesday, April 23, 2013
Pennsylvania Law Would Let State Decide Nonprofits' Tax-Exempt Status
A proposed law in Pennsylvania would fundamentally change how nonprofits receive tax-exempt status, shifting the process from the judicial system to the state Legislature.
HB 724/SB4 passed the state Senate in a 30-20 vote last month and also received approval from the House Finance Committee. Since the bill would amend Pennsylvania's constitution, it must pass both houses in consecutive legislative sessions before going to voters for final approval.
The proposed law has generated enormous controversy in the state, according to an article in The Pittsburgh Post-Gazette. While supporters say it would provide consistency in what defines a tax-exempt charity, detractors, including Pittsburgh Councilwoman Natalia Rudiak, believe it's an effort by large organizations to shift decision-making away from communities which are increasingly trying to get nonprofits to contribute more.
Rudiak told The Gazette that she is also concerned that there is not a single public hearing to discuss the proposed change.
Those supporting the bill include large nonprofit hospitals and universities such as the Hospital & Healthsystem Association of Pennsylvania, and the Association of Independent Colleges and Universities of Pennsylvania. In a Jan. 28 memo to his colleagues, Republican Sens. Mike Brubaker and Joe Scarnati said the legislation became necessary once the Pennsylvania Supreme Court denied tax-exempt status to a camp in Pike County because it didn't provide relief to the local government as mandated by a 1985 court decision.
"By elevating its own judgment above the will of the General Assembly, the Court has created uncertainty as to the qualifications for public charities in Pennsylvania," the senators wrote.
You can read the full story in The Pittsburgh Post-Gazette.
HB 724/SB4 passed the state Senate in a 30-20 vote last month and also received approval from the House Finance Committee. Since the bill would amend Pennsylvania's constitution, it must pass both houses in consecutive legislative sessions before going to voters for final approval.
The proposed law has generated enormous controversy in the state, according to an article in The Pittsburgh Post-Gazette. While supporters say it would provide consistency in what defines a tax-exempt charity, detractors, including Pittsburgh Councilwoman Natalia Rudiak, believe it's an effort by large organizations to shift decision-making away from communities which are increasingly trying to get nonprofits to contribute more.
Rudiak told The Gazette that she is also concerned that there is not a single public hearing to discuss the proposed change.
Those supporting the bill include large nonprofit hospitals and universities such as the Hospital & Healthsystem Association of Pennsylvania, and the Association of Independent Colleges and Universities of Pennsylvania. In a Jan. 28 memo to his colleagues, Republican Sens. Mike Brubaker and Joe Scarnati said the legislation became necessary once the Pennsylvania Supreme Court denied tax-exempt status to a camp in Pike County because it didn't provide relief to the local government as mandated by a 1985 court decision.
"By elevating its own judgment above the will of the General Assembly, the Court has created uncertainty as to the qualifications for public charities in Pennsylvania," the senators wrote.
You can read the full story in The Pittsburgh Post-Gazette.
Monday, April 22, 2013
S&P: Pensions A Burden For Nonprofit Hospitals
Pension liabilities will be continue to be a burden for nonprofit hospitals rating service, Standard and Poor's (S&P), reported Monday.
While there are other factors contributing to the financial problems of the sector, large pension funding demands are the biggest factor according to a report in Reuters. S&P credit analyst Liz Sweeney said in a statement that the promises of these retirement benefits could be a "drag" on nonprofit hospitals for several years despite improvements in the investments used to fund retirement services.
"Low discount rates have hampered the improvement in funding levels despite a rebound in asset values during the past two years," said Sweeney.
Retirement benefits are just one of the many challenges nonprofit hospitals are facing. S&P noted that as pension gaps continue to grow in state and local governments, employers are putting more money into healthcare systems that have redesigned pensions, which could leave less funds for other projects.
"We believe that health systems will continue to implement plan changes to seek the next level of cost savings within the context of organization-wide expense reduction measures," S&P reported.
Changes from the Affordable Care Act, increasing stress on Medicaid and Medicare, and increased healthcare demands in general, are also increasing the financial difficulties for nonprofit hospitals across the country.
You can read the full story in Reuters.
While there are other factors contributing to the financial problems of the sector, large pension funding demands are the biggest factor according to a report in Reuters. S&P credit analyst Liz Sweeney said in a statement that the promises of these retirement benefits could be a "drag" on nonprofit hospitals for several years despite improvements in the investments used to fund retirement services.
"Low discount rates have hampered the improvement in funding levels despite a rebound in asset values during the past two years," said Sweeney.
Retirement benefits are just one of the many challenges nonprofit hospitals are facing. S&P noted that as pension gaps continue to grow in state and local governments, employers are putting more money into healthcare systems that have redesigned pensions, which could leave less funds for other projects.
"We believe that health systems will continue to implement plan changes to seek the next level of cost savings within the context of organization-wide expense reduction measures," S&P reported.
Changes from the Affordable Care Act, increasing stress on Medicaid and Medicare, and increased healthcare demands in general, are also increasing the financial difficulties for nonprofit hospitals across the country.
You can read the full story in Reuters.
The Donor Research Checklist For Small Nonprofits
What's the best way to ensure a successful fundraising campaign? Some would argue that donor research should be on the top of that list, and they would have a point. More information about donors means your fundraisers will have a better idea about how to approach them.
While large nonprofits usually have full-time researcher on-staff, it can be a little bit harder for smaller organizations to find room in their budget for donor research. That's why Ann Rosenfield, executive director of The WoodGreen Foundation, offered some tips to help these organizations reap the benefits of this research without breaking the bank.
She wrote the following checklist in the Winter 2013 edition of Advancing Philanthropy:
- Hire a researcher, even if just for a while: This will enable managers to focus on the technical aspects of fundraising while research crunches the numbers.
- Pay for a research database service: This allows for quick look-ups of prospective donors recommended by the board, events, and potential board members.
- Remember that information on foundations is free: This information is easily accessible online on such sites as Foundation Center.
- If possible, use data analytics: This allows the organization to see how analytics work and keep track of these findings on a spreadsheet.
- Identify new prospects: Having a researcher means being able to seek out new prospective clients who will give.
- Don’t forget that the organization’s small size is actually a strength: The small size of is an asset in that it allows research to be done on a more personal level.
Friday, April 19, 2013
9 Ways To Measure Nonprofit Data
We live in a society where it's easy to be overwhelmed by data. It seems as if there are statistics about virtually everything, making it hard to figure out which numbers are actually important. Nonprofits are among the groups that are gathering more data than ever, but not all of them are using the information they gather, or are not using it as well as they can.
Beth Kanter and Katie Delahaye Paine wrote in their book, "Measuring the Networked Nonprofit," that it is more important to evaluate impact than to gather and store numbers. They offered nine suggestions on how organizations can get the most out of the statistics they gather:
- “Likes” on Facebook is not a victory. Social change is a victory. Proper measurement keeps organizations focused on results rather than the tools they use.
- Measurement helps nonprofits understand and improve their social networks. It helps them listen to and engage with constituents.
- Measurement means data for decisions, not for data’s sake. It isn’t numbers to dump on the board’s desk.
- Measurement makes an organization plan for success. Measurement leads to smarter investments and smarter use of those investments.
- Good measurement is good governance. Credible evaluation reports and demonstrations of impact are crucial.
- Data without insight is just trivia.
- Measuring failure is part of the path to success. If an experiment bombs or a great idea isn’t really so great, learn from it, and learn why it happened.
- Incremental success is no failure. Victories often come in baby steps.
- Measurement is valuable at every level of functioning.
Thursday, April 18, 2013
Charity Raises $7 Million In Aftermath Of Boston Marathon Bombings
A fund created to raise money for the victims of the Boston Marathon bombings has already received nearly $7 million in donations from corporate partners and individual donors.
One Fund Boston was launched on Tuesday by Massachusetts Gov. Deval Patrick and Boston Mayor Thomas Menino to give philanthropists and other individuals a way to support the more than 180 individuals who were injured during the attacks on Monday. The $7 million raised so far includes a $1 million commitment from John Hancock Financial Services, which was one of the lead sponsors of the marathon.
Taking aside the donations from businesses and corporations, One Fund Boston has received $500,000 from 8,500 individual donors.
“I am humbled by the outpouring of support by the business community and individuals who are united in their desire to help,” Patrick said. “At moments like this, we are one state, one city, and one people.”
Mayor Menino said via a statement that he received calls from businesses and individuals who wanted to pledge money “within the hour” that the fund was established. “We are one Boston. We are one community. As always, we will come together to help those most in need. And in the end, we will all be better for it,” Mayor Menino said.
One Fund Boston will be headed by attorney Ken Feinberg, who was appointed in 2001 by the Attorney General of the United States to head the 9/11 Victim Compensation Fund. In 2010, he was appointed by President Barack Obama to administer the fund for those affected by the BP oil spill, and he also helped administer donations for the victims of the mass shootings in Aurora, Colo., and at Virginia Tech.
“I am honored to serve at the request of both Governor Patrick and Mayor Menino,” Feinberg said in a press release. “I will do my best to justify their confidence in me as we move forward to design and administer an effective program following the terrible tragedy in Boston.”
Feinberg, who is himself a native of Boston, will head the fun entirely pro bono.
The Fund is currently in the process of applying for 501(c)(3) tax-exempt status with the Internal Revenue Service. A statement on the organization's website said that if the IRS makes the determination that it is worthy of being tax-exempt, that decision will be made retroactive to the date of the Fund's formation.
One Fund Boston was launched on Tuesday by Massachusetts Gov. Deval Patrick and Boston Mayor Thomas Menino to give philanthropists and other individuals a way to support the more than 180 individuals who were injured during the attacks on Monday. The $7 million raised so far includes a $1 million commitment from John Hancock Financial Services, which was one of the lead sponsors of the marathon.
Taking aside the donations from businesses and corporations, One Fund Boston has received $500,000 from 8,500 individual donors.
“I am humbled by the outpouring of support by the business community and individuals who are united in their desire to help,” Patrick said. “At moments like this, we are one state, one city, and one people.”
Mayor Menino said via a statement that he received calls from businesses and individuals who wanted to pledge money “within the hour” that the fund was established. “We are one Boston. We are one community. As always, we will come together to help those most in need. And in the end, we will all be better for it,” Mayor Menino said.
One Fund Boston will be headed by attorney Ken Feinberg, who was appointed in 2001 by the Attorney General of the United States to head the 9/11 Victim Compensation Fund. In 2010, he was appointed by President Barack Obama to administer the fund for those affected by the BP oil spill, and he also helped administer donations for the victims of the mass shootings in Aurora, Colo., and at Virginia Tech.
“I am honored to serve at the request of both Governor Patrick and Mayor Menino,” Feinberg said in a press release. “I will do my best to justify their confidence in me as we move forward to design and administer an effective program following the terrible tragedy in Boston.”
Feinberg, who is himself a native of Boston, will head the fun entirely pro bono.
The Fund is currently in the process of applying for 501(c)(3) tax-exempt status with the Internal Revenue Service. A statement on the organization's website said that if the IRS makes the determination that it is worthy of being tax-exempt, that decision will be made retroactive to the date of the Fund's formation.
Wednesday, April 17, 2013
Scams Abound After Boston Marathon Bombings
In the aftermath of the deadly bombings Monday at the Boston Marathon, a number of web sites claiming to offer funds for victims appear to be scams.
According to the Internet news site TheDomains, more than 20 of the 125 domains that were registered after the bombings appear to be illegitimate. Michael Berkens, editor of TheDomains, wrote in his piece that many of these sites, such as Bostonmarathonrelief.com, have been registered by individuals rather than legitimate charities.
“While we don’t know every registrants' intention, we do know historically that many of the domain names registered immediately after were done to get traffic and make money parking domains or worse,” wrote Berkens.
Bostonmarathonrelief.com claims to be raising $25,000 benefiting the American Red Cross (ARC). As of this writing, $20 has been donated. A spokeswoman for ARC told The NonProfit Times that the site is in no way affiliated with the organization. The site is registered to a man in Fort Worth, Tex.
Scams also appeared on social networking platforms. Shortly after the bombings, a Twitter handle masquerading as an official account of the Boston Marathon sent out a tweet claiming it would donate $1 to victims for every retweet. The account, @_BostonMarathon, was suspended by Twitter, according to The Huffington Post.
“Tragedies inspire people to give,” H. Art Taylor, president and CEO of Better Business Bureaus Wise Giving Alliance, said in a press release, “but, tragedies –- whether natural disasters or manmade catastrophes –- also inspire scammers to take advantage of that generosity. Social media, in particular, makes it very easy to reach a lot of people quickly, when emotions are running high and people feel the need to take action, any action, to help.”
Charity scams after national tragedies are not exactly a new phenomenon. After the Newtown, Conn., shootings resulted in the death of six-year old Noah Ponzer, an e-mail was sent to individuals asking for donations that would be sent to Ponzer's family. Upon learning of the bogus solicitations, Ponzer's uncle alerted authorities who put an end to the scam.
According to the Internet news site TheDomains, more than 20 of the 125 domains that were registered after the bombings appear to be illegitimate. Michael Berkens, editor of TheDomains, wrote in his piece that many of these sites, such as Bostonmarathonrelief.com, have been registered by individuals rather than legitimate charities.
“While we don’t know every registrants' intention, we do know historically that many of the domain names registered immediately after were done to get traffic and make money parking domains or worse,” wrote Berkens.
Bostonmarathonrelief.com claims to be raising $25,000 benefiting the American Red Cross (ARC). As of this writing, $20 has been donated. A spokeswoman for ARC told The NonProfit Times that the site is in no way affiliated with the organization. The site is registered to a man in Fort Worth, Tex.
Scams also appeared on social networking platforms. Shortly after the bombings, a Twitter handle masquerading as an official account of the Boston Marathon sent out a tweet claiming it would donate $1 to victims for every retweet. The account, @_BostonMarathon, was suspended by Twitter, according to The Huffington Post.
“Tragedies inspire people to give,” H. Art Taylor, president and CEO of Better Business Bureaus Wise Giving Alliance, said in a press release, “but, tragedies –- whether natural disasters or manmade catastrophes –- also inspire scammers to take advantage of that generosity. Social media, in particular, makes it very easy to reach a lot of people quickly, when emotions are running high and people feel the need to take action, any action, to help.”
Charity scams after national tragedies are not exactly a new phenomenon. After the Newtown, Conn., shootings resulted in the death of six-year old Noah Ponzer, an e-mail was sent to individuals asking for donations that would be sent to Ponzer's family. Upon learning of the bogus solicitations, Ponzer's uncle alerted authorities who put an end to the scam.
Nonprofit Jobs: Executive Director
Need a new executive-level nonprofit job? The newest featured position from the NPT Jobs Career Center offers that opportunity. Read on for more details.
The International Storytelling Center in Jonesborough, Tenn., is looking to hire an Executive Director to provide leadership and direction to ensure the organization’s sustainability and relevance. The successful candidate will provide effective fundraising, community collaboration, program development and attentive oversight to the operation of the International Storytelling Center.
The Executive Director will also be expected to:
The International Storytelling Center in Jonesborough, Tenn., is looking to hire an Executive Director to provide leadership and direction to ensure the organization’s sustainability and relevance. The successful candidate will provide effective fundraising, community collaboration, program development and attentive oversight to the operation of the International Storytelling Center.
The Executive Director will also be expected to:
- Advocate for the art of storytelling;
- Provide leadership by which the organization can achieve its vision;
- Increase, strengthen and diversify the organization’s funding sources;
- Broaden and refine all aspects of communications including web and social media presence;
- Provide fiscally sound financial management;
- Hire, develop and retain quality staff;
- Improve and expand programmatic offerings; and,
- Work effectively with the Board of Governors
Since this is an executive level job, applicants will be expected to have at least several years of upper management experience at a nonprofit or business. A Master's Degree in a related field is greatly preferred, though not required.
Interested? Head to our career center for more information, including instructions on how to apply.
Tuesday, April 16, 2013
7 Dos And Don'ts For Nonprofit Technology
Nonprofits have embraced technology, but that doesn't mean they have all done so with open arms. It's this factor that will determine whether or not your organization will have success with the various new devices and software available.
Holly Ross, former executive director of the Nonprofit Technology Network (NTEN) in Portland, Ore., and now head of the Drupal Association, set out a list of Dos and Don’ts to make dealing with technology much easier:
Do:
Holly Ross, former executive director of the Nonprofit Technology Network (NTEN) in Portland, Ore., and now head of the Drupal Association, set out a list of Dos and Don’ts to make dealing with technology much easier:
Do:
- Let mission and strategy be the guides when making technology decisions.
- Establish strong systems. Staff can’t get mission-critical work done if they have to reboot the system every half-hour.
- Plan. A crystal ball isn’t necessary to plan for technology needs.
- Evaluate continuously. Learning from experience isn’t possible without stopping to reflect from time to time.
Don't:
- Make technology decisions based solely on cost. It is only one factor in determining the value and expense of technology.
- Forget to include staff in technology decisions. Allies will be needed while new systems are being implemented.
- Select mission-critical software such as a donor database without first documenting key business processes.
Coverage Of The Boston Marathon Bombings
No doubt you have already heard about the tragic bombings at the Boston Marathon yesterday that claimed three lives and left hundreds others injured. Our thoughts go out to the victims and their families.
If you are looking for additional coverage of the incident, you can read our latest story here. You can also see our initial article hours after the bombings here. Stay tuned to NPT for additional coverage of the Boston Marathon bombings.
If you are looking for additional coverage of the incident, you can read our latest story here. You can also see our initial article hours after the bombings here. Stay tuned to NPT for additional coverage of the Boston Marathon bombings.
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