Struggling with financial troubles and staff and board defections, the Museum of Contemporary Art in Los Angeles (MOCA) has been contacted by the Los Angeles County Museum of Art (LACMA) about a potential merger.
According to a report in The Los Angeles Times, LACMA director Michael Govan and two co-chairs of his board made the offer to the MOCA board in a Feb. 24 letter. Sources who have seen the letter but were not authorized to discuss it told The Times that the proposed acquisition would preserve MOCA's two downtown LA locations and they would still operate them under the MOCA brand.
Additionally, LACMA would agree to raise $100 million for the two museums as a condition for completing the deal.
The proposed acquisition was confirmed by LACMA in a blog post on its website by Govan, who wrote that he "appreciates" the impact MOCA has on the community and desires to see that work continue as part of a successful merger.
"Combining LACMA and MOCA would strengthen both [museums]. LACMA’s mission is to share world-class art with the widest array of audiences possible," wrote Govan in the blog post. "MOCA’s downtown location, extraordinary collection and devoted constituency, combined with LACMA’s modern art masterpieces, large audiences and broad educational outreach (especially in schools near downtown L.A.) would create a cultural institution that is much more than the sum of its parts."
Founded in 1979, MOCA has fallen on hard times in recent years. According to an article in The New York Times, the 2010 hiring of Jeffrey Deitch as the museum's director was criticized, as the Manhattan art dealer was considered to be too celebrity-driven. In June of that same year, MOCA's long-time curator Paul Schimmel was forced out, and that was soon followed by a mass-exodus of board members.
Ultimately, Govan believes that a merger with LACMA would not only solve MOCA's current financial problems, it would also set the combined organization up for future success. He wrote in his blog post that the merger would open up new opportunities for visitors and donors alike.
"The scale and common purpose of the larger combined institution would provide stability, confidence, and opportunity for donors," he wrote. "Each facility and location could retain individual character and the potential to reach different audiences."
This is not the first time to two art museums have been involved in merger talks. The two institutions were discussing a deal in 2008 until philanthropist Eli Broad pledged a $30 million matching gift to MOCA, making the merger unnecessary.
Friday, March 8, 2013
The NonProfit Times Store -- An Overview
One of the key features of our redesigned website is the new online store. Whereas before it was located on a separate URL, we have now integrated it into the main NPT website for optimal use.
This integration means that the store will be easier to access and, maybe more importantly, you will still be able to browse the rest of the website even when you have items in your shopping cart. It works like this: Say you decided to purchase the 2012 Salary and Benefits Report but are alerted to a breaking story on the NPT homepage. Instead of opening a new tab on your browser, you can simply navigate to the news story without any affect on your purchase.
As you browse the rest of the site, you will see an icon on the side of the page reminding you that there are items in your shopping cart. Once you are done with your other business, you can click on that icon and complete your purchase.
Some of the main items currently available in the online store are:
This integration means that the store will be easier to access and, maybe more importantly, you will still be able to browse the rest of the website even when you have items in your shopping cart. It works like this: Say you decided to purchase the 2012 Salary and Benefits Report but are alerted to a breaking story on the NPT homepage. Instead of opening a new tab on your browser, you can simply navigate to the news story without any affect on your purchase.
As you browse the rest of the site, you will see an icon on the side of the page reminding you that there are items in your shopping cart. Once you are done with your other business, you can click on that icon and complete your purchase.
| A look at the new shopping cart functionality |
Some of the main items currently available in the online store are:
- Print and Digital Subscription to The NonProfit Times
- Print and Digital Subscription to Exempt Magazine
- The NPT 50 Best Places To Work in 2012 Report
- All of the 2012 Salary and Benefits Reports
Head over to the new online store, try out the new functionality and, as always, continue to give us your feedback.
Thursday, March 7, 2013
Organizing For Action Flips On Corporate Donations
The head of the nonprofit formed to take over President Barack Obama's campaign apparatus announced the organization would no longer accept corporate donations, after initially signaling it would.
In an op-ed originally posted on CNN.com, Organizing for Action (OFA) chairman Jim Messina wrote that the advocacy nonprofit would also publicly disclose donors who contribute more than $250. Messina wrote that these moves were made in an effort to promote transparency.
Messina also sought to clarify the mission of OFA. He explained that nonprofit's overall goal is to support the president's second term agenda, but they will not be endorsing Democratic or any other candidates for office. "The president has always believed that special interests have undue influence over the policymaking process", he wrote, "and the mission of this organization is to rebalance the power structure."
According to an article in The Washington Post, the group will also institute a ban on donations from federal lobbyists and foreign nationals.
Campaign finance reform groups, which were critical of OFA's initial decision to accept corporate donations, met Messina's announcement with some skepticism. Washington, D.C.-based Common Cause president Bob Edgar said in a statement on the organization's website that while he is glad OFA reconsidered its initial decision, he believes there is still work to be done to make the 501(c)(4) organization more transparent.
"If Organizing for Action is serious about putting to bed public concerns that contributions buy access, it should mobilize its impressive small-donor and activist base to push for real reform to clean up Washington," Edgar said. "That means getting behind legislation like the DISCLOSE Act, supporting a constitutional amendment to overturn Citizens United and rein in runaway political spending, and developing a new, small-donor public funding system that lets candidates break their dependence on big money."
Democracy 21 president Fred Wertheimer was more critical saying in a press release that while the decision is appreciated, it does not "solve the fundamental problems created by President Obama’s involvement with OFA."
"OFA remains an unprecedented entity that allows individual donors and bundlers to provide unlimited amounts of money to an organization functioning as an arm of the Obama presidency," he continued.
Wertheimer is also concerned about the unlimited donations donors can make to OFA, saying that they, at minimum, create the perception that individual donors and bundlers can buy influence over the Obama administration's policies and decisions.
The administration has previously pushed back on the suggestion that donors who contribute more than $500,000 will be invited to a face-to-face meeting with Obama, denying that there is not a "price tag" on meeting the president.
Launched in January, OFA has already begun a six-figure online advertising campaign to convince Republican lawmakers to support universal background checks on gun purchases. The group has also rallied supporters to support the president's plan to replace the sequester.
In an op-ed originally posted on CNN.com, Organizing for Action (OFA) chairman Jim Messina wrote that the advocacy nonprofit would also publicly disclose donors who contribute more than $250. Messina wrote that these moves were made in an effort to promote transparency.
Messina also sought to clarify the mission of OFA. He explained that nonprofit's overall goal is to support the president's second term agenda, but they will not be endorsing Democratic or any other candidates for office. "The president has always believed that special interests have undue influence over the policymaking process", he wrote, "and the mission of this organization is to rebalance the power structure."
According to an article in The Washington Post, the group will also institute a ban on donations from federal lobbyists and foreign nationals.
Campaign finance reform groups, which were critical of OFA's initial decision to accept corporate donations, met Messina's announcement with some skepticism. Washington, D.C.-based Common Cause president Bob Edgar said in a statement on the organization's website that while he is glad OFA reconsidered its initial decision, he believes there is still work to be done to make the 501(c)(4) organization more transparent.
"If Organizing for Action is serious about putting to bed public concerns that contributions buy access, it should mobilize its impressive small-donor and activist base to push for real reform to clean up Washington," Edgar said. "That means getting behind legislation like the DISCLOSE Act, supporting a constitutional amendment to overturn Citizens United and rein in runaway political spending, and developing a new, small-donor public funding system that lets candidates break their dependence on big money."
Democracy 21 president Fred Wertheimer was more critical saying in a press release that while the decision is appreciated, it does not "solve the fundamental problems created by President Obama’s involvement with OFA."
"OFA remains an unprecedented entity that allows individual donors and bundlers to provide unlimited amounts of money to an organization functioning as an arm of the Obama presidency," he continued.
Wertheimer is also concerned about the unlimited donations donors can make to OFA, saying that they, at minimum, create the perception that individual donors and bundlers can buy influence over the Obama administration's policies and decisions.
The administration has previously pushed back on the suggestion that donors who contribute more than $500,000 will be invited to a face-to-face meeting with Obama, denying that there is not a "price tag" on meeting the president.
Launched in January, OFA has already begun a six-figure online advertising campaign to convince Republican lawmakers to support universal background checks on gun purchases. The group has also rallied supporters to support the president's plan to replace the sequester.
The NonProfit Times' Resource Marketplace
In our ongoing look at the new and/or improved features of The NonProfit Times' new website, today we will take a look at the Resource Marketplace.
This section of the site acts as a directory for a variety of nonprofit services, ranging from online fundraising to grant writers. If there is a service your nonprofit needs, chances are we have links to companies that offer them. This feature was on our website before, but we have made a couple of changes to make it a little easier to navigate.
First of all, we have included the number of resources included in each category so readers know immediately how many services are being offered. We have also included a "Latest Resources" feed, which automatically updates whenever a new service is added to the page.
Keep an eye on the Resource Marketplace as we continue to add new services, and let us know what you think of the redesign.
This section of the site acts as a directory for a variety of nonprofit services, ranging from online fundraising to grant writers. If there is a service your nonprofit needs, chances are we have links to companies that offer them. This feature was on our website before, but we have made a couple of changes to make it a little easier to navigate.
First of all, we have included the number of resources included in each category so readers know immediately how many services are being offered. We have also included a "Latest Resources" feed, which automatically updates whenever a new service is added to the page.
Keep an eye on the Resource Marketplace as we continue to add new services, and let us know what you think of the redesign.
Wednesday, March 6, 2013
The NonProfit Times eNewsletters: An Introduction
One of the features that received an overhaul in our website re-design is our eNewsletter page. Whereas before users would individually sign-up for the newsletter they wanted to receive, the process has now been streamlined to make it much more user-friendly.
The first thing you will see when you enter the new eNewsletter page is a simple box asking you to enter your e-mail address. Once you do that, you will receive a message at that address asking you to confirm that you do want to receive messages from The NonProfit Times. After confirming you will be bought to your eNewsletter preferences page (see picture below) where you can manage which newsletters you want to get (Weekly, Instant Fundraising, Jobs, Technobuzz, and Exempt).
We believe that this new format will make it much simpler for users to decide which eNewsletters they want to receive. Your inbox is likely cluttered with all sorts of messages, so there's no need for you to be getting information you don't want.
What do you think about the new design? Let us know in the comments section below.
The first thing you will see when you enter the new eNewsletter page is a simple box asking you to enter your e-mail address. Once you do that, you will receive a message at that address asking you to confirm that you do want to receive messages from The NonProfit Times. After confirming you will be bought to your eNewsletter preferences page (see picture below) where you can manage which newsletters you want to get (Weekly, Instant Fundraising, Jobs, Technobuzz, and Exempt).
| The eNewsletter preference center allows users to customize which newsletters they want to receive, and more. |
We believe that this new format will make it much simpler for users to decide which eNewsletters they want to receive. Your inbox is likely cluttered with all sorts of messages, so there's no need for you to be getting information you don't want.
What do you think about the new design? Let us know in the comments section below.
Welcome To The New NonProfit Times
If you have been to The NonProfit Times' website this morning, you will have noticed it looks a little different. This is the result of a new design we have been working on for some time now which will make the site easier to navigate.
“This new evolution of our web platform reflects a year-long effort to meet the information needs of our readers and advertising partners,” said John McIlquham, president/CEO of The NonProfit Times. “We're proud of these changes because our subscribers have been vocal in what type of information presentation they need us to provide. Our advertising partners also provided valuable feedback.”
The new web platforms for The NonProfit Times, Exempt Magazine and the Nonprofit Job Seeker, the site's career center, incorporate more than an updated new design that allows for greater video and audio capability. It is also built on a content management system featuring a new ecommerce platform and recommendation engine. The new features allow more content centric access to a huge catalog of articles, interviews and videos.
The launch offers a more integrated approach to executive functions so that web visitors can tour information on all three sites from one location. There will be interactive links to education, online libraries, grants and jobs boards that multiply a visitors’ ability to tap into a substantial and growing information base.
We are also happy to announce that the new website has been optimized for smartphones and tablets, allowing users to access the latest nonprofit news and information wherever they are.
"We're excited about this new effort to reach out to more organizations looking for expertise in managing, hiring and promoting their cause," McIlquham noted, "because technology has opened vistas for our subscribers in accessing information that will translate into new ideas, new opportunities and new funding for their missions." Visit http://www.thenonprofittimes.com to learn more about the re-designed site.
“This new evolution of our web platform reflects a year-long effort to meet the information needs of our readers and advertising partners,” said John McIlquham, president/CEO of The NonProfit Times. “We're proud of these changes because our subscribers have been vocal in what type of information presentation they need us to provide. Our advertising partners also provided valuable feedback.”
The new web platforms for The NonProfit Times, Exempt Magazine and the Nonprofit Job Seeker, the site's career center, incorporate more than an updated new design that allows for greater video and audio capability. It is also built on a content management system featuring a new ecommerce platform and recommendation engine. The new features allow more content centric access to a huge catalog of articles, interviews and videos.
The launch offers a more integrated approach to executive functions so that web visitors can tour information on all three sites from one location. There will be interactive links to education, online libraries, grants and jobs boards that multiply a visitors’ ability to tap into a substantial and growing information base.
We are also happy to announce that the new website has been optimized for smartphones and tablets, allowing users to access the latest nonprofit news and information wherever they are.
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| A look at the mobile version of the new site |
"We're excited about this new effort to reach out to more organizations looking for expertise in managing, hiring and promoting their cause," McIlquham noted, "because technology has opened vistas for our subscribers in accessing information that will translate into new ideas, new opportunities and new funding for their missions." Visit http://www.thenonprofittimes.com to learn more about the re-designed site.
Tuesday, March 5, 2013
Philadelphia Considers PILOT Program
Two Philadelphia council members are pushing for changes that could potentially open the door for a payment in lieu of taxes (PILOT) program in the city.
According to The Philadelphia Inquirer, Councilwoman Blondell Reynolds Brown started the push by calling for a hearing on property tax exemptions for nonprofits in Philadelphia. The city holds nearly $13 billion in exempted property -- 10 percent of the total market value -- making it a prime candidate for PILOTs.
In addition to the hearing, which is to be held sometime this spring, Councilman Bill Green introduced legislation that would require nonprofits to prove they deserve their tax exemptions and would identify programs that should pay business taxes.
Some of the city's nonprofits are not greeting this news with open arms particularly hospitals, which would stand to pay $112 million in taxes if they were not exempt. Curt Schroder, regional executive for the Delaware Valley Healthcare Council, told The Inquirer that he is "concerned" about the discussion and hopes the council doesn't end up implementing a PILOT program.
Though Philadelphia nonprofits might not like them, PILOT programs are common in the United States. They typically arise in cities with vast hospital systems and universities such as Providence, R.I., which recently agreed to a deal with Brown University to receive doubled payments from the college. The biggest recipient of PILOTs is Boston, which collected $19.4 million from nonprofits in 2012.
In addition, a study by the Johns Hopkins University Center for Civil Society Studies featured last year in The NonProfit Times revealed that 63 percent of nonprofits reported paying fees or taxes to local governments.
You can read the full story in The Philadelphia Inquirer.
According to The Philadelphia Inquirer, Councilwoman Blondell Reynolds Brown started the push by calling for a hearing on property tax exemptions for nonprofits in Philadelphia. The city holds nearly $13 billion in exempted property -- 10 percent of the total market value -- making it a prime candidate for PILOTs.
In addition to the hearing, which is to be held sometime this spring, Councilman Bill Green introduced legislation that would require nonprofits to prove they deserve their tax exemptions and would identify programs that should pay business taxes.
Some of the city's nonprofits are not greeting this news with open arms particularly hospitals, which would stand to pay $112 million in taxes if they were not exempt. Curt Schroder, regional executive for the Delaware Valley Healthcare Council, told The Inquirer that he is "concerned" about the discussion and hopes the council doesn't end up implementing a PILOT program.
Though Philadelphia nonprofits might not like them, PILOT programs are common in the United States. They typically arise in cities with vast hospital systems and universities such as Providence, R.I., which recently agreed to a deal with Brown University to receive doubled payments from the college. The biggest recipient of PILOTs is Boston, which collected $19.4 million from nonprofits in 2012.
In addition, a study by the Johns Hopkins University Center for Civil Society Studies featured last year in The NonProfit Times revealed that 63 percent of nonprofits reported paying fees or taxes to local governments.
You can read the full story in The Philadelphia Inquirer.
Monday, March 4, 2013
5 Questions About Donors
What makes donors tick? That's a question that some fundraisers don't necessarily feel the need to answer; if they're giving money who cares, right? To keep them giving, however, it is good to get a better idea of what donors are
thinking.
Understanding what donors are thinking will give you a better idea of how to cultivate them and, in turn, allow your organization to have enough money to complete its mission. In his book, “The Eight Principles of Sustainable Fundraising,” Larry C. Johnson poses several questions that he believes nonprofits should be asking about their donors. Those questions are:
Understanding what donors are thinking will give you a better idea of how to cultivate them and, in turn, allow your organization to have enough money to complete its mission. In his book, “The Eight Principles of Sustainable Fundraising,” Larry C. Johnson poses several questions that he believes nonprofits should be asking about their donors. Those questions are:
- Why are donors’ values important? When organizations come to terms with the fact that donors are people just like nonprofit employees -- and act upon this certainty -- they have made the single most important step toward success in fundraising.
- What is philanthropy ultimately about? It is about giving and receiving. Donors want to be engaged, not enticed.
- How can an organization engage donors? Engaging people by first learning who they are and what is important to them allows a charity to fashion messages that will be understood, acted upon and appreciated.
- What do donors want? First and foremost, donors want to be seen for what they are -- investors.
- What is the difference between program focus and donor focus? It is important to remember that people give to people. Programming is merely the vehicle to enriching the lives and meeting the needs of human beings.
Friday, March 1, 2013
The March 1 Issue: Mobile Applications
"There's an app for that."
It wasn't too long ago that the above phrase was used jokingly to describe how many mobile applications were available on smartphones. Now, it's hard to think of something for which there actually isn't an app.
As smartphones continue to grow in popularity, more and more nonprofits are realizing that they need to make their website more mobile friendly for donors. That's one of the focuses of the March 1 issue of The NonProfit Times, which was just released today. Here's a quick look at some of the main features of the new issue:
Special Report:
It wasn't too long ago that the above phrase was used jokingly to describe how many mobile applications were available on smartphones. Now, it's hard to think of something for which there actually isn't an app.
As smartphones continue to grow in popularity, more and more nonprofits are realizing that they need to make their website more mobile friendly for donors. That's one of the focuses of the March 1 issue of The NonProfit Times, which was just released today. Here's a quick look at some of the main features of the new issue:
Special Report:
- There's An App for That: As hinted at above, this special report focuses on the growing popularity of mobile-optimized sites, and how they can be used to increase revenue for organizations via text donations and other fundraising tools.
Articles:
- Gulf Coast Nonprofits Can File Claims For BP's Cash: Nonprofits were among the first to be directly affected by the 2010 explosion of a BP oil rig, and some organizations are now looking to file legal claims against the gas giant.
- Results Weren't Invisible: The San Diego, Calif.-based nonprofit behind the viral hit "Kony 2012" might be more well known now for the eccentric behavior of its founder, but Invisible Children bought in an impressive amount of revenue.
- The Race for Revenue: Race For the Cure revenue for Susan G. Komen for the Cure’s largest affiliates declined almost 7 percent last year, while the charity reported a 9-percent dip in overall revenues.
- Your 403(b): The Internal Revenue Service (IRS) has modified and expanded its Employee Plans Compliance Resolution System (EPCRS) with the release of Revenue Procedure 2013-12. While the new revenue procedure made many changes to EPCRS, one of the most significant changes was the long-promised inclusion of expanded corrections for 403(b) plan failures.
- Federal Money: When it comes to applying for federal grants, the most common complaint is the quick turnaround time. The federal agency releases the Request for Proposal (RFP) only shortly before the submission deadline and you’re sent scrambling.
If you are interested in seeing all of the articles in the March 1 edition of NPT, visit our subscription page to receive a print or digital edition of the magazine.
Wednesday, February 27, 2013
Major Donor Traits
What makes a major donor? The obvious answer is a substantial amount of money, but these individuals also have different belief systems. Fundraisers must learn to understand these beliefs if they are to be successful at cultivating these types of donors.
As Kent E. Dove, Alan M. Spears, and Thomas W. Herbert wrote in their book “Conducting a Successful Major Gifts & Planned Giving Program,” major gifts aren't just going to appear to an organization; they have to be cultivated from major donors by fundraisers. In order to achieve the proper success, it's important to understand what makes these individuals tick.
Dove, Spears, and Herbert explained that while major donors have many characteristics, understanding the following three will lead to the best results in procuring a major gift:
As Kent E. Dove, Alan M. Spears, and Thomas W. Herbert wrote in their book “Conducting a Successful Major Gifts & Planned Giving Program,” major gifts aren't just going to appear to an organization; they have to be cultivated from major donors by fundraisers. In order to achieve the proper success, it's important to understand what makes these individuals tick.
Dove, Spears, and Herbert explained that while major donors have many characteristics, understanding the following three will lead to the best results in procuring a major gift:
- Major donors typically have strong values and deep beliefs. They believe in people and have great respect for knowledge.
- They know someone in or something about the nonprofit organization they are supporting.
- They view giving as an investment, and through such investments they desire to solve a problem or issue and to express themselves (to attain self-actualization).
The NonProfit Times Is Hiring: Digital Marketing Coordinator
Good news: The NonProfit Times is hiring! If you are a digital marketing expert with a vast knowledge of the Internet, NPT wants to hire you as a Digital Marketing Coordinator.
The Digital Marketing Coordinator will work with our team to create promotions for internet marketing and supporting sales staff for targeted advertising promotions. The candidate must have an advanced knowledge of search engine optimization (SEO), and understand third-party marketing tools such as Google AdWords.
You can find more details about this job by taking a look at our recent LinkedIn post. Good luck!
The Digital Marketing Coordinator will work with our team to create promotions for internet marketing and supporting sales staff for targeted advertising promotions. The candidate must have an advanced knowledge of search engine optimization (SEO), and understand third-party marketing tools such as Google AdWords.
You can find more details about this job by taking a look at our recent LinkedIn post. Good luck!
Tuesday, February 26, 2013
Obama Nonprofit Says Donors Can't Buy Access
Donors to the nonprofit version of President Barack Obama's successful campaign apparatus will not be able to buy their way to special access to the president, according a spokeswoman for the organization.
It was announced weeks ago that Obama's campaign organization would be re-launched as a nonprofit, called Organizing For Action (OFA), and that the group would advocate for the president's second-term agenda by connecting with supporters. Since then, there have been whispers that donors who raised or gave more than $500,000 to the group would be invited to have face-to-face meetings with President Obama.
Those reports were strongly pushed back by both the White House and OFA. In an article in The Washington Post, OFA spokeswoman Katie Hogan is quoted as saying "No one has been promised access to the president." In addition, White House spokesman Jay Carney said in a press briefing Monday that there was not a "price tag" for meeting the president. He did not, however, directly address whether high-priced donors would be invited to quarterly meetings with Obama.
“Administration officials routinely interact with outside advocacy organizations,” Carney said. “This has been true in prior administrations and it is true in this one.” In both presidential campaigns, Obama has spoken out against the influence of money in politics.
Sources with knowledge of OFA's plans told The Post that the organization has plans to raise millions of dollars. Those same sources said that OFA officials have reached out to 50 top Obama donors who intend to raise $500,000 or more this year to support the president's agenda. Many of these donors previously served on the Obama campaign's National Finance Committee, and they will undoubtedly expect some perks for shelling out huge sums of cash. Yet, according to the report, an explicit menu of benefits were not given to the donors.
During the 2012 campaign, high-value donors were offered perks such as a chance to talk politics with Obama for 25 donors who bought a $35,800 ticket to a luncheon in San Francisco.
Two top OFA officials, Jim Messina and Jon Carson, have been meeting with top Obama fundraisers in recent weeks to discuss the group's agenda and to get financial support. Top donors who are willing to raise $50,000 have already been invited to attend a March 13 "founder's summit" in Washington, D.C.
You can read the full article in The Washington Post.
It was announced weeks ago that Obama's campaign organization would be re-launched as a nonprofit, called Organizing For Action (OFA), and that the group would advocate for the president's second-term agenda by connecting with supporters. Since then, there have been whispers that donors who raised or gave more than $500,000 to the group would be invited to have face-to-face meetings with President Obama.
Those reports were strongly pushed back by both the White House and OFA. In an article in The Washington Post, OFA spokeswoman Katie Hogan is quoted as saying "No one has been promised access to the president." In addition, White House spokesman Jay Carney said in a press briefing Monday that there was not a "price tag" for meeting the president. He did not, however, directly address whether high-priced donors would be invited to quarterly meetings with Obama.
“Administration officials routinely interact with outside advocacy organizations,” Carney said. “This has been true in prior administrations and it is true in this one.” In both presidential campaigns, Obama has spoken out against the influence of money in politics.
Sources with knowledge of OFA's plans told The Post that the organization has plans to raise millions of dollars. Those same sources said that OFA officials have reached out to 50 top Obama donors who intend to raise $500,000 or more this year to support the president's agenda. Many of these donors previously served on the Obama campaign's National Finance Committee, and they will undoubtedly expect some perks for shelling out huge sums of cash. Yet, according to the report, an explicit menu of benefits were not given to the donors.
During the 2012 campaign, high-value donors were offered perks such as a chance to talk politics with Obama for 25 donors who bought a $35,800 ticket to a luncheon in San Francisco.
Two top OFA officials, Jim Messina and Jon Carson, have been meeting with top Obama fundraisers in recent weeks to discuss the group's agenda and to get financial support. Top donors who are willing to raise $50,000 have already been invited to attend a March 13 "founder's summit" in Washington, D.C.
You can read the full article in The Washington Post.
Nonprofits Falling Short In Leadership Development
Most nonprofit managers would agree that developing new leaders is one of the most important ways to ensure the success of the mission. Yet, according to a recent survey, many of these same leaders admit that they are falling short when it comes to taking a systematic approach to leadership development.
The findings from a Bridgespan Group leadership development diagnostic survey of more than 225 nonprofit leaders indicated that many organizations are still lagging behind when it comes to developing new leaders. Some of the results from the study include:
The findings from a Bridgespan Group leadership development diagnostic survey of more than 225 nonprofit leaders indicated that many organizations are still lagging behind when it comes to developing new leaders. Some of the results from the study include:
- Leaders are engaged but struggle to act. Only 36 percent say leaders are held accountable for leadership development and only 38 percent engage their boards in the process.
- Future needs are not well understood. Fewer than 30 percent say they have plans to address leadership gaps and only 37 percent have successions plans.
- Development of future leaders is not being linked to organizational needs. Only 50 percent evaluate employee potential as well as performance, and fewer than 29 percent say they have development plans for individuals.
- Leadership vacancies tend to be filled by external candidates. Only 25 percent are filled by internal candidates.
- Efforts to monitor and improve are relatively weak. Fewer than 30 percent have organization-wide goals for leadership development and only 23 percent are tracking progress.
Monday, February 25, 2013
Gates-Backed Charity Targeted In Embezzlement Probe
Twenty doctors with ties to a charity backed by the Bill and Melinda Gates Foundation were arrested over the weekend in Niger for suspected embezzlement of funds.
According to an article on The Huffington Post, the arrests are part of an investigation of some $1.5 million in funds donated by the GAVI Alliance between 2007 and 2010. The arrested doctors were charged with allegedly embezzling these funds from the organization, which has reportedly suspended the financing of health programs in Niger until the money is reimbursed.
The Washington, D.C.-based GAVI Alliance, which was founded in 2000 with help from a $750 million grant from the Gates Foundation, aims to improve access to immunization in the world's poorest countries. The organization also receives support from the World Bank, UNICEF, and donor governments.
The landlocked West African country has made fighting corruption a priority in recent years. In 2011, President Mahamadou Issoufou fired two ministers who allegedly awarded illegal state contracts.
This is not the first time the Alliance has faced financial controversy. In December, the nonprofit suspended $6 million in funding to another African country, Sierra Leone, after an audit revealed misuse of $1.1 million in previously disbursed funds. The report showed undocumented expenses, cash handouts, and overcharged procurement costs between 2008 and 2011.
You can read the full story on The Huffington Post.
According to an article on The Huffington Post, the arrests are part of an investigation of some $1.5 million in funds donated by the GAVI Alliance between 2007 and 2010. The arrested doctors were charged with allegedly embezzling these funds from the organization, which has reportedly suspended the financing of health programs in Niger until the money is reimbursed.
The Washington, D.C.-based GAVI Alliance, which was founded in 2000 with help from a $750 million grant from the Gates Foundation, aims to improve access to immunization in the world's poorest countries. The organization also receives support from the World Bank, UNICEF, and donor governments.
The landlocked West African country has made fighting corruption a priority in recent years. In 2011, President Mahamadou Issoufou fired two ministers who allegedly awarded illegal state contracts.
This is not the first time the Alliance has faced financial controversy. In December, the nonprofit suspended $6 million in funding to another African country, Sierra Leone, after an audit revealed misuse of $1.1 million in previously disbursed funds. The report showed undocumented expenses, cash handouts, and overcharged procurement costs between 2008 and 2011.
You can read the full story on The Huffington Post.
How To Build A Great Board
Unless your nonprofit's board has no term limits, chances are you will see many board members come and go. If there is one thing that is invaluable for boards, it's consistency, and it's up to the governance committee to take the lead in identifying the skills the board needs to continue to effectively do its job.
There are thankfully many resources available to help ensure that new members have the same skills and expertise as their predecessors. In “Nonprofit Management 101,” Vernetta Walker and Emily Heard of BoardSource list six of these resources:
There are thankfully many resources available to help ensure that new members have the same skills and expertise as their predecessors. In “Nonprofit Management 101,” Vernetta Walker and Emily Heard of BoardSource list six of these resources:
- Personal networks of business and community leaders;
- Media articles;
- Volunteers and non-board member committee members;
- Participants in leadership programs;
- Current MBA students; or,
- Online sites that specialize in board matching or that list board opportunities.
Walker and Heard wrote that, once you have a group of candidates to choose from, it's time to make sure they are truly right for the job. You can do this by making sure applicants are:
- Passionate about and committed to supporting the mission of the organization;
- Clear about their potential role and the time commitment required -- share the board job description and board member agreement and answer questions about the work of the board; and,
- Able to fulfill the expectations you have of them.
Friday, February 22, 2013
Sandy Relief Group Sued For Fraud
The founders of a Hurricane Sandy relief group have been sued by the state of New Jersey for allegedly diverting funds for personal use, while victims of the storm supposedly received little money.
John Sandberg and Christina Terracino founded the Hurricane Sandy Relief Foundation (HSRF) in the aftermath of the deadly super storm to help those affected by it. On Thursday, the state Attorney General's Office and the New Jersey Department of Consumer Affairs (DCA) filed a lawsuit against the two founders and the Foundation. According to a report in The Asbury Park Press, the suit cites numerous violations of NJ's charity code, including allegedly diverting $17,000 in donated funds to, among other things, pay credit card bills and shop online.
“This organization told the state it does not pay its executives, but our investigators found a paper trail reflecting thousands of dollars being transferred into the individual defendants’ personal bank accounts,” said Attorney General Jeffrey S. Chiesa in a prepared statement. “Meanwhile, less than one percent [$1,650] of the money raised, has allegedly been paid out to help the victims of Sandy.”
According to the Foundation's website, almost $631,000 in cash donations were raised. The state's complaint alleges that nearly $39,000 of that money remains missing.
Other accusations against Sandberg and Terracino include, allegedly:
According to the Foundation's website, almost $631,000 in cash donations were raised. The state's complaint alleges that nearly $39,000 of that money remains missing.
Other accusations against Sandberg and Terracino include, allegedly:
- Misleading donors by falsely claiming the Foundation is a tax-exempt 501(c)(3) charity; and,
- Co-opting the name of the Hurricane Sandy New Jersey Relief Fund, which was founded by NJ First Lady Mary Pat Christie.
You can read the full story in The Asbury Park Press.
D.C. Nonprofit Declines To Say How It Spent Money
An embattled D.C. nonprofit reported receiving $25 million in a recently filed Internal Revenue Service (IRS) report, but decline to say how it spent all of that money.
The D.C. Children & Youth Investment Corp., which was involved in a theft scandal which sent former councilman Harry Thomas Jr., to prison, also did not identify any grantees in its annual tax filing with the IRS, according to a report in The Washington Times. While the Trust did report $25.7 million in funding for the period spanning Oct. 2010 to Sept. 2011, sections of the report for expenditures -- including compensation -- were left blank.
The Trust's senior director of finance, Earl Thomas, told The Times that the organization plans to file an amended report with the IRS as soon as outside auditors finish reviewing two years finances. In a Jan. 29 post on this blog, it was reported that those audits would be released in 30 days.
The nonprofit has been trying to get back on track after the bad publicity from the Thomas Jr., situation. The former D.C. councilman was sentenced to three years in federal prison after pleading guilty to using grant money meant for local children for personal uses, including trips, clothes, a new car, and shoes.
The Trust reported a deficit of almost $3 million last year and, without the completed audits and the incomplete IRS filing, it is unclear whether its finances have improved or worsened.
You can read the full story in The Washington Times.
The D.C. Children & Youth Investment Corp., which was involved in a theft scandal which sent former councilman Harry Thomas Jr., to prison, also did not identify any grantees in its annual tax filing with the IRS, according to a report in The Washington Times. While the Trust did report $25.7 million in funding for the period spanning Oct. 2010 to Sept. 2011, sections of the report for expenditures -- including compensation -- were left blank.
The Trust's senior director of finance, Earl Thomas, told The Times that the organization plans to file an amended report with the IRS as soon as outside auditors finish reviewing two years finances. In a Jan. 29 post on this blog, it was reported that those audits would be released in 30 days.
The nonprofit has been trying to get back on track after the bad publicity from the Thomas Jr., situation. The former D.C. councilman was sentenced to three years in federal prison after pleading guilty to using grant money meant for local children for personal uses, including trips, clothes, a new car, and shoes.
The Trust reported a deficit of almost $3 million last year and, without the completed audits and the incomplete IRS filing, it is unclear whether its finances have improved or worsened.
You can read the full story in The Washington Times.
Thursday, February 21, 2013
New Foundation To Oversee Newtown Fund
A new foundation has been formed to oversee the more than $9 million that has been donated to the Newtown Fund since the shootings took place Dec. 14.
Soon after the tragic shootings at Sandy Hook Elementary School in Newtown, Conn., the United Way of Western Connecticut and Newtown Savings Banks set up a fund for donations. The organization, however, did not want to oversee the money, so a transition team was formed to create a foundation that would distribute the funds for charitable purposes.
According to The Hartford Courant, the organization, known as the Newtown-Sandy Hook Community Foundation Inc., took two months to create. During that period, members of the team drafted bylaws for the foundation. The transition team officially transferred authority to the foundation, which has former U.S. Sen. Joseph Lieberman as an unpaid advisor. Lieberman met with families of victims on Wednesday to explain how the organization will operate, and to solicit suggestions.
While the foundation is open for business, it is not yet ready to begin distributing money. The board will first consider requests and suggestions that will be vetted by a "distribution committee." According to Newtown Selectman Will Rodgers, who headed the efforts to form the foundation, there is a possibility there will be more than one distribution committee.
Rodgers told The Courant that there is not yet a timetable for when the first funds will be distributed.
You can read the full story in The Hartford Courant.
Soon after the tragic shootings at Sandy Hook Elementary School in Newtown, Conn., the United Way of Western Connecticut and Newtown Savings Banks set up a fund for donations. The organization, however, did not want to oversee the money, so a transition team was formed to create a foundation that would distribute the funds for charitable purposes.
According to The Hartford Courant, the organization, known as the Newtown-Sandy Hook Community Foundation Inc., took two months to create. During that period, members of the team drafted bylaws for the foundation. The transition team officially transferred authority to the foundation, which has former U.S. Sen. Joseph Lieberman as an unpaid advisor. Lieberman met with families of victims on Wednesday to explain how the organization will operate, and to solicit suggestions.
While the foundation is open for business, it is not yet ready to begin distributing money. The board will first consider requests and suggestions that will be vetted by a "distribution committee." According to Newtown Selectman Will Rodgers, who headed the efforts to form the foundation, there is a possibility there will be more than one distribution committee.
Rodgers told The Courant that there is not yet a timetable for when the first funds will be distributed.
You can read the full story in The Hartford Courant.
Wednesday, February 20, 2013
IRS Bought To Court Over 'Dark Money' Organization
The Internal Revenue Service (IRS) is being sued by a former congressional candidate who alleges that the agency wrongly allowed a so-called "dark money" political organization to operate as a tax-exempt entity.
Dr. David Gill is a Democrat who unsuccessfully ran to represent Illinois' 13th district in the 2012 elections. According to a report on The Huffington Post, Gill and the Citizens for Responsibility and Ethics in Washington (CREW) are arguing that the IRS should not have allowed the American Action Network (AAN) to spend $2.6 million in ads against Gill while at the same time enjoying tax-exempt status.
Gill and CREW allege that the agency misinterpreted tax laws when it released regulations for social welfare nonprofits. IRS guidelines state that these organizations must be "primarily" focused on social welfare, while the federal statute states they must be "exclusively" focused on it.
"It is offensive that the IRS turns a blind eye to reality and allows partisan political groups to seek refuge in a provision of the IRS code that is meant to govern organizations such as volunteer firefighter companies and homeowner organizations," Dr. Gill said in a statement.
Dr. Gill and CREW filed the civil lawsuit Tuesday under the provisions of the Administrative Procedure Act, which allows those who have suffered "sufficient harm" to file suit against the IRS. Gill can certainly claim to have suffered, as he believes that his close defeat -- he only lost by 1,002 votes to Republican Rodney Davis -- was due to "misinformation" spread about his support of Medicare in AAN's ads. One of those spots claimed that Gill would eliminate Medicare and replace it with single-payer healthcare.
AAN was the only 501(c)(4) nonprofit to spend significant money in the 13th district campaign.
You can read the full story on The Huffington Post.
Dr. David Gill is a Democrat who unsuccessfully ran to represent Illinois' 13th district in the 2012 elections. According to a report on The Huffington Post, Gill and the Citizens for Responsibility and Ethics in Washington (CREW) are arguing that the IRS should not have allowed the American Action Network (AAN) to spend $2.6 million in ads against Gill while at the same time enjoying tax-exempt status.
Gill and CREW allege that the agency misinterpreted tax laws when it released regulations for social welfare nonprofits. IRS guidelines state that these organizations must be "primarily" focused on social welfare, while the federal statute states they must be "exclusively" focused on it.
"It is offensive that the IRS turns a blind eye to reality and allows partisan political groups to seek refuge in a provision of the IRS code that is meant to govern organizations such as volunteer firefighter companies and homeowner organizations," Dr. Gill said in a statement.
Dr. Gill and CREW filed the civil lawsuit Tuesday under the provisions of the Administrative Procedure Act, which allows those who have suffered "sufficient harm" to file suit against the IRS. Gill can certainly claim to have suffered, as he believes that his close defeat -- he only lost by 1,002 votes to Republican Rodney Davis -- was due to "misinformation" spread about his support of Medicare in AAN's ads. One of those spots claimed that Gill would eliminate Medicare and replace it with single-payer healthcare.
AAN was the only 501(c)(4) nonprofit to spend significant money in the 13th district campaign.
You can read the full story on The Huffington Post.
Tuesday, February 19, 2013
Featured Nonprofit Job: CEO/Head Of School
The Creative Learning Academy of Pensacola (CLA) is looking to hire a CEO/Head of School. Interested? Read on for more details.
Beginning with the 2013-2014 school year, this individual will be in charge of all aspects of the Schoool. Candidates must have a history of significant business leadership and a proven track record of growth. Experience at an accredited independent school preferred, but not required.
Other requirements include:
Beginning with the 2013-2014 school year, this individual will be in charge of all aspects of the Schoool. Candidates must have a history of significant business leadership and a proven track record of growth. Experience at an accredited independent school preferred, but not required.
Other requirements include:
- Exceptional communication skills, clear vision and strong management/leadership skills;
- the ability to further the organization’s mission while developing the human resources necessary to achieve maximum potential;
- Technologically proficient, with a broad knowledge of best business practices; and,
- Must be an active, visible part of the community as well as the school, inspiring students and teachers alike in a hands-on way.
You can find out more information by visiting our career center.
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