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Friday, February 10, 2012

State Department Bans Nonprofit Over Guest-Worker Probe

The U.S. State Department has taken steps to ban a nonprofit group for two years from a cultural-exchange program.  The announcement comes after the organization sent 400 foreign students to work at a Hershey Co. candy packaging plant last year.

According to The Philadelphia Inquirer, California-based CETUSA brought students, mostly from Ukraine and Turkey, to the U.S. on J-1 visas, which are used for cultural and educational exchange opportunities.  In addition to their summer work, the students were to practice English and learn more about America.  It turned out they had little time for either.

In August of last year, the students protested on Chocolate Avenue in Hershey, Pa., claiming they were forced to work long hours for low pay at the packaging plant, which left them with little time or resources to travel the country and interact with Americans.  The State Department quickly began an investigation of the working conditions in Hershey.  Secretary of State Hillary Clinton also backed a top-down review of the J-1 program, which determined that CETUSA should be barred from participating further for the next two years.

The nonprofit is also involved in other J-1 exchange programs, and their eligibility for those are currently under review.

The J-1 program is meant to expose foreign students to the American lifestyle, and the State Department is likely to announce new regulations in the coming months to make sure this goal is realized.  They want students to be working at jobs that allow them to interact with other Americans, not in hazardous or hard-labor occupations.

You can read the full story in The Philadelphia Inquirer.

Nonprofits Face Licensed Worker Problem

There are thousands of nonprofits in New York that employ licensed social workers.  But now, thanks to a recently passed law, all of these groups are committing a crime.

NY1 reported yesterday on a law passed by the state last week that makes it illegal for nonprofits to hire licensed professionals, from social workers to acupuncture specialists.  The state decided to make this move because it believed that these workers should not be supervised by unlicensed professionals.  As a result, they will not be unable to work for corporations or nonprofits.  Hospitals, as well as specialty stores like Lens Crafters, will be exempt from this rule.  Social services groups had until last week to apply for a waiver.

While this is now the law of the land, it's unclear how it will be enforced.  It seems unlikely that organizations, such as Coalition for the Homeless, which employs a half-dozen licensed social workers and a nurse, will be prosecuted for violating this new rule.  Even so, it will create problems for nonprofits wishing to apply for city funding.  This is because a group is required to be complying with all local and state laws. 

There have been some calls from legislators to change the law.  State Senator Toby Ann Stavisky, for instance, told NY1 that it makes more sense to adjust the law than to sit through countless waiver claims.  But as of this writing, no legislation is being considered to adjust the current law.  You can read the full story in NY1.

Thursday, February 9, 2012

Linking Special Events To A Mission

Many nonprofit leaders like to hold special events because they can raise money without talking about raising money.  But according to Jeff Shuck, president and CEO of Event 360, that's exactly the wrong approach to take.

At a recent DMA Nonprofit Federation New York Nonprofit Conference, Shuck said nonprofits should use events as an opportunity to spark fundraising conversations, not to avoid them.  He went on to say that these conversations can get the best results when nonprofits understand how to evaluate each part of an event with the correct metrics.  These include the following:
  • Event: Number of events, participant satisfaction, repeat attendance.
  • Participants: Number of participants, registration time, team participation.
  • Donors: Number of donors, donors per participant, percentage of participants with zero donors, percentage of self-donations and goal, number of emails sent per participant.
  • Gifts: Number of gifts, amount per gift.
  • Revenue: Return on investment (ROI), compound annual growth rate, growth against the national benchmark.

Wednesday, February 8, 2012

Bay Citizen Close To Merger With Nonprofit News Group

The Bay Citizen, a San Francisco, Ca.-based news organization, has announced plans to merge with Berkley's Center for Investigative Reporting (CIR), a nonprofit investigative news group.

The agreement between the two news groups has been rumored for weeks, but The San Francisco Chronicle reported that The Bay Citizen officially announced the plan on their website Tuesday.  Under the agreement, CIR would run the day-to-day operations of The Bay Citizen within 30 days.  The merger is pending approval from both organizations' boards.

If the merger does go through as planned, former San Francisco Chronicle Executive Editor and Hearst Editor at Large Phil Bronstein will become executive chairman of the combined groups.  Bronstein is currently the chairman of CIR's board of directors and was the first choice of The Bay Citizen's late founder Warren Hellman.  It was also confirmed that Robert Rosenthal would remain CIR's executive director, and would also direct the editorial operations of the combined organization.

Plans for a merger had been in the works for quite sometime, but started to gain steam recently.  Just last month, Bronstein made a presentation to the board of The Bay Citizen, in which he outlined the advantages of a merger between the two groups.  He told them that they would be able to use each other's strengths by forming one group, and he identified economies of at least $1 million in operating expenseses.

You can read the full story on this potential merger in The San Francisco Chronicle.

eBay Founder Dedicated To Philanthropy

Unless you've been living under a rock, you probably have at least heard of the online auction site eBay.  Maybe you've even won a few collectable items from it.  But if you were asked how the name Pierre Omidyar connected to the site, would you have an answer?

Pierre Omidyar is the founder of the successful auction site and he has lived a fairly quiet life.  Prior to a big profile recently published in USA Today Omidyar, 44, avoided the spotlight.  He gave an occasional interview now and then, but he spent the majority of time working with his wife Pam on his real passion: Philanthropy.

Pierre and Pam have given over $1 billion to hundreds of causes both through individual giving and four organizations they created: Omidyar Network, Humanity United, HopeLab, and Ulupono (which is Hawaiian for "doing the right thing") Initiative.

Yet the Omidyars don't just throw their money around without a plan.  More often than not, their donations go to charities that have solid business plans that allow them to produce the needed funds to keep its programs running.  Think of it as a venture-capitalists' approach to philanthropy: They want their money to go to organizations that have the best chance to create social change.  And that all starts with having a solid business strategy.

What do you think about the Omidyar's approach to philanthropy?  Do you think we will start seeing more philanthropists take this venture-capital-like approach?

Make sure to read the full story in USA Today.

Tuesday, February 7, 2012

Picking Your Next Major Gifts Officer

Cross-Posted From Nonprofit Jobs

Earlier today, job seekers learned about the qualities they need to become a Major Gifts Officer.  Now let's take a look at what types of people employers should look at when they are hiring one.

Let's face it: If you don't hire the right person, all of your organization's fundraising efforts will be for naught.  When picking a candidate to be your next Major Gifts Officer, the temptation will be to go for someone who already has a strong background in fundraising.  That is definitely an important characteristic, but you will be well-served to go after individuals with more diverse backgrounds.

At a recent Association for Healthcare Philanthropy (AHP) International Conference, Holly Duncan, president and CEO of the Morton Plant Mease Health Care Foundation in Clearwater, Fla., outlined the qualities she looks for in a Major Gifts Officer.  Consider using her tips the next time you have an opening for this important position.
  • Techies: People who have a lot of experience with technology will be able to use this knowledge to better connect with major gift prospects.  They might also have qualifications to research, schedule, communicate, and document gifts efficiently.
  • Intellectual Capacity: You don't just want someone with traditional book smarts.  Seek out a candidate who is a problem solver and can think quickly on their feet.
  • Communication: A Major Gifts Officer will have to talk to many different people frequently.  Therefore, it is essential that the individual can express themselves clearly.  This includes both written and verbal communications.  The ability to ask open-ended questions will be key to performing their tasks.
  • Team Player: A lot of the work in this position is independent, but you still want someone who can work effectively with all different types of people.  There needs to be transparency and an attempt to engage co-workers.  Remember: No one owns a donor.

Komen-Planned Parenthood Links

UPDATE: We have learned that Susan G. Komen For the Cure is reversing their decision on Planned Parenthood.  Stay tuned for more details.

UPDATE 2: Added a link to our new story on Komen.

UPDATE 3: Karen Handel, Susan G. Komen's senior vice president, has announced her resignation.  Added link to NPT's developing story.

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The NonProfit Times has been working tirelessly to bring readers the latest news on the spat between Susan G. Komen For the Cure and Planned Parenthood.  We recently published two articles on the story, one covering the initial news, and another detailing the fundraising that has resulted from the controversy.

Given the nature of this story, new news can break at any moment.  Pay close to attention to our website to see if there is any new information on it, or sign up for our newsletters for additional information.  In the mean time, we would like to direct readers to other articles on this developing story.  So without any further ado, here are some recent articles on the Komen-Planned Parenthood controversy:

Getting Your Board To Fundraise

Getting nonprofit boards to fundraise is about as easy as pulling teeth.  You're going to get a lot of resistance and, frankly, it's going to be painful.  But there are some ways to make it a little bit easier.

One of the most common complaints from board members is that fundraising is not a part of their job description, so they shouldn't have to partake in it.  The reality is that raising money is a huge part of a board's responsibility.  If you're ready to start a board-bashing party, hold on just a second.  Although it's easy to lay all the blame on the board itself, a lot of it should actually fall on the organizational culture.

In "Nonprofit Management 101," Bob Zimmerman writes that a nonprofit should create an environment that encourages fundraising.  He lists three examples of bad organizational culture:
  • Nonprofits that don't let board members know that fundraising is one of their responsibilities;
  • Nonprofits that don't train the board in successful fundraising techniques; and,
  • Nonprofits that don't recruit new members that have experience with giving and fundraising
If you are to get your nonprofit board on the right track, it is imperative that you make sure your organizational culture doesn't resemble the traits above.

You can learn more fundraising tips like this by subscribing to NPT Instant Fundraising.

Monday, February 6, 2012

Nonprofit Bookkeeper Arrested

Theft has been a bit of an issue at some nonprofits recently.  You can add another incident to the list after a bookkeeper organization was arrested for stealing thousands of dollars from a Houston, Tex.-based organization.

Dawn House, 31, was arrested and charged for allegedly stealing more than $200,000 in checks to the Houston chapter of The Muslim American Society.  She surrendered to authorities without incident at her home in the Houston suburb of Hallettsville.  According to police, House deposited the money into her personal bank account.  She was released from jail after posting the $20,000 bond and now awaits trial.

Theft has been a real problem for nonprofits in recent months.  A former finance director of the Girl Scouts of America's Greater New York affiliate pleaded guilty to stealing more than $300,000 over two years.  She spent the money on various personal expenses such as jewelry and food.  In addition, a volunteer at California-based Empty Cradle was accused of embezzling $25,000.  The volunteer maintains her innocence and made her first court appearance on Jan. 21.

You can read more about this story, which appeared in the most recent edition of NPT Weekly, on our website.

Featured Nonprofit Job: Vice President For Business Development

Cross-Posted from Nonprofit Jobs

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We have a lot of prestigious nonprofit organizations that post their jobs to our career center.  You can now add IREX to that list.

IREX is an international nonprofit organization that provides thought leadership and innovative programs to promote positive change globally.  The organization is currently seeking an individual to be its new Vice President for business development.  This position reports to the President and is a great opportunity for anybody looking for a high level job in development.

So what does this position entail?  The VP for business development will be responsible for a number of different important tasks:
  • Develop and implement an annual strategic plan for public and private new business development.
  • Leverage internal and external data to lead the process of priority-setting and strategic decision-making.
  • Build a professional and trusting relationship with key IREX clients.  This kind of networking is crucial to advance the goals of the organization.
  • Tap strategic high-level contacts to gather business intelligence, identify partnering opportunities, and strengthen international recruitment.
  • •Personally reach down and across the organization to gather information that would support marketing and facilitate strategic conversations (e.g., about client systems, regions, countries, and programs).
  • Provide guidance and set expectations for field staff support in the new business development process.
Here are qualifications for the position:
  • 15+ years of progressive leadership experience in new business development for an international development organization.
  • Significant personal contacts globally within USAID, State Department, and other USG agencies.  Non-USG and private sector sources are also a plus.
  • Excellent leadership skills in the areas of communication, decision making, facilitation, supervision, and planning.
  • International development experience in one or more of the following technical areas preferred: basic education, civil society strengthening, media development, youth development, conflict resolution, and gender.
Apply for this job today at the Nonprofit Job Seeker.

E-Newsletter Design Tips

Nonprofits are always looking for new ways to enhance communications with its supporters.  Creating an e-newsletter is a great way to accomplish this goal, but is your design up to snuff?

Most, if not all, nonprofits have weekly or monthly e-newsletters that are sent to its followers.  These will often contain the latest news about the organization, special offers, and other unique items.  But you can't just throw a bunch of code together and expect your newsletter to be a smashing success.  It all comes down to this: Design matters.

When designing your nonprofit's newsletter, make sure the web team keeps the following information in mind:
  • Decide which e-mail clients are a priority.  According to CampaignMonitor, Microsoft Outlook was one of the most popular clients as of June 2011.  Gmail, Yahoo! Mail, and Apple Mail were also near the top of the list.
  • Use tables for your layout, not cascading style sheets (CSS).  There are a lot of e-mail clients that are not able to read CSS.
  • Since you won't be relying on CSS, your team can use the old-school style of formatting: Putting tags for color, font, decoration, margins, etc., directly on links, paragraphs and images.  You can put styles into the header, but leave them out of the e-mail body.
  • Avoid using Javascript, Flash, video, or anything a 1999 web browser couldn't handle.  The message here: Code like it's 1999.

Friday, February 3, 2012

Nonprofit Helps Megaupload Users

Users of the file-sharing site Megaupload feared their data could be in danger when U.S. prosecutors shut the site down last month.  But thanks to one nonprofit, users will be able to safely retrieve their files.

The San Francisco Chronicle reported yesterday that the San Francisco, Ca.-based Electronic Frontier Foundation (EFF), a nonprofit technology foundation dedicated to defending peoples' digital rights, announced that it was teaming up with Carpathia Hosting, a data-storage provider, to create a new website that will allow Megaupload users to get their data.

Megaupload was shut down last month when seven men were arrested (including three Megaupload executives).  Prosecutors charged the men with racketeering, and claimed the file-sharing website facilitated millions of illegal downloads of movies, music, and other content.  The arrests were made at a $30 million mansion in Auckland, New Zealand.  Carpathia and another storage company were to begin deleting content yesterday before EFF's eleventh hour intervention.

You can read more about the story in The San Francisco Chronicle.

Thursday, February 2, 2012

How Will Facebook's IPO Affect Charities?

The social networking behemoth Facebook filed papers yesterday to raise $5 billion in its initial public offering (IPO) of stock.  This is good news for Facebook employees and their investors, but what does it mean for charities?  It depends on who you ask.

MSNBC ran a piece on this subject yesterday, and it suggested that this new influx of wealth to Facebook employees could mean big bucks for nonprofits.  Why?  Facebook has provided their employees with stock incentives over the years, and they will be able to use these to cash in on the IPO.  Experts like Rob Mitchell of Atlas of Giving told MSNBC that when individuals' personal wealth increases, it makes them more likely to want to start a philanthropic legacy.

Patrick Rooney, executive director of The Center on Philanthropy at Indiana University, agreed with Mitchell, citing studies that show entrepreneurs are about twice as generous than people who inherit their wealth.

All of this doesn't guarantee that these new millionaires will start donating to charity.  In fact, there are some who don't think Facebook employees are all that likely to start being philanthropic, at least not immediately.  Robert Frank, a writer for The Wall Street Journal, told MSNBC that he thinks they are much too young to think about starting their philanthropic efforts.  He argues that they are still in the "accumulation phase" of their lives, and want to focus on changing the world through their company, not their philanthropy.

Charities will ultimately see a lot of money come in as as result of Facebook's IPO.  It's just a question of how soon.  You can read the full story on MSNBC.

D.C. Nonprofit Sought Real Groundhog For Celebration

We all heard what Punxatawney Phil had to say about the length of winter this year, but what did Potomac Phil have to say?

If you're wondering who Potomac Phil is, don't be alarmed, he's relatively new.  He's also not alive, but that's beside the point.  WTOP reported yesterday that Dupont Festival, a Washington D.C.-based nonprofit, was seeking a live groundhog for its first annual Groundhog Day celebration in Dupont Circle Park.

The nonprofit had already spoken with the D.C. National Zoo, but they only offered prairie dogs, which didn't quite fit the bill.  The WTOP article directed readers to the organization's website, where anyone with information on how to get a live groundhog could contact them.

Dupont Festival eventually had to settle for a stuffed groundhog donated from Miss Pixie's Furnishings & Whatnot, a local D.C. store.  Thus was born Potomac Phil, who made his prediction for winter known to the public at 8 a.m. this morning.  And just like Punxatawney Phil, he predicted six more weeks of winter.  D.C. councilman Jack Evans attended the celebration, and declared that from now on, February 2 will be D.C. Groundhog Day.  So even if they didn't get a real groundhog, Dupont Festival at least got themselves a new holiday.

You can read the full story on the WTOP website.

Wednesday, February 1, 2012

Garth Brooks Gets His Donation Back

An Oklahoma hospital has been ordered to pay $1 million to country singer Garth Brooks after failing to build a women's health center in honor of his late mother.

The details of the case were laid out in a story that originally appeared in the previous edition of NPT Weekly.  Brooks donated $500,000 to Yukon, Okla.-based Integris Canadian Valley Region Hospital with the understanding that the gift would help fund a women's health center named after his mother, Colleen Brooks, who died in 1999.  He filed a suit against the hospital after the center had been built without his mother's name attached.  The jury ruled in favor of Brooks on Jan. 24, awarding him his original donation plus an additional $500,000 in punitive damages.  A spokesperson for Integris said that the hospital does not expect to have to cut any services or programs in light of the settlement, as the money will not come from their operating budget.

This case shows the importance of the donor having a written agreement with the nonprofit when making a major gift.  Jeffrey Tenenbaum, a nonprofit attorney at Venable LLP in Washington, D.C., told NPT that it's uncommon to have only a verbal agreement with the client.  Said Tenenbaum: “This case is the perfect example of why verbal commitments do not work out.”

Tenenbaum goes on to say that the written agreement should lay out the dollar amount that will be paid, whether or not the contract is enforceable, and provide contingencies if the original purpose of the contribution cannot be fulfilled.  While the case ultimately worked out in Brooks' favor, these steps are highly advisable to prevent legal issues like this from happening.

You can read the full story in The NonProfit Times.

February 1 Issue Of NPT Is Out!

The newest issue of The NonProfit Times is now out!  Here's a look at some of the stories you can expect to find in this month's issue:

Special Report
Articles
Column
  • New Year, New Problems: We take a look at some of the issues that have come up in this new year, including NJ Gov. Christie's decision to pocket-veto a bill that would have placed restrictions on volunteer emergency rescue squads.
Make sure to check out all of these stories and more on our website.

Tuesday, January 31, 2012

Alabama Gives Day Expected To Generate Crucial Funding

With many states across the country having success with the Gives Day movement, Alabama has decided to join the fun for the first time.

The Montgomery Advertiser reported Sunday that the first annual Alabama Gives Day will begin on Thursday, Feb. 2.  Beginning at 12:01 a.m., Alabamians will be able to donate to charities via an online portal alabamagivesday.org.  More than 800 nonprofits within 12 categories are registered to participate in the event.  Among the participating nonprofits are the Hospice of Montgomery, the Mid-Alabama Coalition for the Homeless, and the Montgomery Area Food Bank.

The Gives Day movement has been very popular since its inception in Minnesota in 2009.  Its purpose was to increase philanthropy and increase donor acquisition for nonprofits.  The concept has had plenty of success stories, like Colorado Gives Day, which recently had 52,000 donations totaling $12 million.  There is no monetary goal set for Alabama Gives Day; organizers simply want as many nonprofits as possible to participate.

If the Gives Days of the last few years are any indication, Alabama Gives Day should be a great source of funding for local nonprofits.  Read more about the event in The Montgomery Advertiser.

Managing Nonprofit Diversity Conflict

Diversity has become the goal at every level of American life. Efforts to promote it have been rightfully applauded. Here's the real question: Are organizations correctly handling these efforts?

One reason people flock toward nonprofit jobs is the diversity in culture and the working backgrounds they support. There is a bigger lesson organizations missed if they are only promoting diversity for diversity's sake. In his book "The End of Diversity as We Know It," Martin R. Davidson argues that a better aim is to embrace and build upon differences among employees.

Davidson, who was a chief development officer at the University of Virginia, also acknowledges that diversity initiatives can cause resistance and even conflict among employees. This can manifest itself in what Davidson calls "identity abrasions," feelings of resentment or defensiveness that come up when people are criticized for being insensitive or ignorant. He wrote that to make these teachable moments positive experiences for all parties involved, he recommends human resources officers implement five "principles of behavior." They are:
  • Pausing: There is a natural tendency to react, but taking time to identify feelings and consider options helps in responding effectively to criticism.
  • Connecting to larger goals: Meaningful goals make it easier to remember why it is worth engaging with another.
  • Questioning yourself: This will help you come to a realistic and accurate understanding of what is happening in the exchange.
  • Seeking out balanced support: Rather than just complaining to your friends who will have your back, seek out the counsel of trusted colleagues.
  • Shifting mindset towards opportunity: It takes persistent willingness to be introspective.

Monday, January 30, 2012

The Role Of Technology In Philanthropy

The World Economic Forum, one of the largest gathering of business and political types, began last week in Davos, Switzerland.  Where there is talk of money, philanthropy will naturally become a central topic.

The New York Times wrote a blog post last Friday about a panel discussion at the forum on the role technology plays in philanthropy.  Hosted by the Victor Pinchuck Foundation, the program began with a discussion about "e-philanthropy," specifically mobile payments.  This technology has allowed donors to give small amounts of money to causes.  A good example of its importance was seen in the 2010 earthquake in Haiti.

Alec Ross, a senior advisor on innovation to Secretary of State Hillary Clinton, shared his experiences with mobile giving to the panel.  He said that the government put together a mobile giving program in the aftermath of the earthquake.  The program allowed donors to text the word "Haiti" to a specific number, which would send a $10 donation to relief efforts.  The program ended up raising $35 million in two weeks, completely shattering their expectations.

Although this program was successful, all the panelists agreed that one of the main problems with philanthropy is transparency; people want to have a better idea of where their money is going.  Sean Parker, founder of Napster and former president of Facebook, cited a nonprofit that he helped finance as an example of good transparency.  Charity Water, a nonprofit organization that advocates for clean drinking water around the world, developed online tools for their website that show donors how their money is being used.  Parker said that this kind of online fundraising should be adapted by all nonprofits to give donors a better sense of security.

Read more about this topic in The New York Times.

Sept. 11 Memorial's Executive Salaries Comes Under Fire

The last thing anybody expected was controversy at the September 11 Memorial and Museum at the World Trade Center.  But that's exactly what has happened after a former employee received a severance package.

The Wall Street Journal reported today that Joan Garner, former executive vice president of design and construction at the memorial, received $296,565 in compensation after leaving her position in May 2010.  That brought her total salary for the year up to $439,463, making her the highest paid employee at the organization.

Tax records for the organization, which were first reported on by The Record of Bergen County, show that seven other executives received compensation that totaled more than $200,000.  Four of those executives received more than $300,000, including the president, Joseph Daniels, who earned $378,288 in salary and benefits.  All in all, the foundation spent $6.5 million on salaries and other benefits in 2010, a sharp increase from the $5.3 million in 2009.

The executive pay at the memorial has come under heavy fire from the families of 9/11 victims, who have called on Mayor Michael Bloomberg, the organization's chairman, to get the salaries under control.  However, Bloomberg has long defended the compensation at the memorial and other nonprofits, and his spokesperson said they are in line with similar nonprofits.

Ken Berger, president and CEO of Charity Navigator, disagreed with the mayor.  He told The Journal that the salaries in question are on the high end of the spectrum, and that an organization with such an important public mission shouldn't be spending money this way.  His comments certainly fall in line with the outraged comments from families who lost loved ones during 9/11.

You can read more about this controversy in The Wall Street Journal.  In addition, you can read all about the construction of the many September 11 memorials in The NonProfit Times.