Newly unsealed federal court records show that the Highland Park, Mich. school district lost $170,000 to a fake nonprofit set up by a now indicted school board member.
The Detroit Free Press reported today on the records, which provide a deeper look at the government's case against Robert Davis, 32, who is charged with stealing from the already cash-strapped school district. Davis used money from the phony nonprofit, called Citizens United to Save Highland Park Schools, on personal expenditures. Records show he allegedly spent $84,000 on perks such as custom-made clothes, hotel rooms, bar and restaurant tabs, and spending sprees at malls. He is also accused of withdrawing $86,711 in cash from the organization.
Citizens United was set up in 2005 by Davis, who used his home as the address for the fake nonprofit. According to an FBI search warrant affidavit filed in the U.S. District Court in Detroit, Davis was listed as the sole signatory for the organization's account. Highland Park school officials reportedly had no idea the account existed.
Davis was indicted on April 5 on charges that he stole more than $125,000 from the school district by submitting false invoices for advertising between 2004 and 2010. He faces up to 10 years in jail if he is convicted.
You can read the full story in The Detroit Free Press.
Tuesday, May 8, 2012
Monday, May 7, 2012
National Museum Of Natural History Gets Major Donation
David H. Koch, executive vice president of Koch Industries, has made his mark on National Museum of Natural History by donating $35 million to the Washington, D.C.-based museum.
The major gift, which was announced by the Smithsonian Institute last Thursday, will be used to build a new dinosaur hall, according to a report in The Washington Post. It is the largest single donation the museum has ever received, and the fifth largest in Smithsonian history.
Koch, who might be best known for his support of conservative causes, has been a member of the museum's advisory board for the past 15 years. He told The Post that he made the donation because he believes the institution's current dinosaur hall is "obsolete." Many of the specimens included in the current dinosaur exhibit have been there since the museum first opened 100 years ago.
This is certainly not Koch's first experience with philanthropy related to dinosaur exhibits. He donated $20 million to the dinosaur hall in New York City's American Museum of Natural History in 2006. He also gave $100 million to the renovation project for the State Theater of New York at Lincoln Center.
The National Museum of Natural History's current dinosaur exhibit will close in 2014, with the renovated hall scheduled for completion in 2019. The total cost of the work is estimated at $45 million.
You can read more about this story in The Washington Post.
The major gift, which was announced by the Smithsonian Institute last Thursday, will be used to build a new dinosaur hall, according to a report in The Washington Post. It is the largest single donation the museum has ever received, and the fifth largest in Smithsonian history.
Koch, who might be best known for his support of conservative causes, has been a member of the museum's advisory board for the past 15 years. He told The Post that he made the donation because he believes the institution's current dinosaur hall is "obsolete." Many of the specimens included in the current dinosaur exhibit have been there since the museum first opened 100 years ago.
This is certainly not Koch's first experience with philanthropy related to dinosaur exhibits. He donated $20 million to the dinosaur hall in New York City's American Museum of Natural History in 2006. He also gave $100 million to the renovation project for the State Theater of New York at Lincoln Center.
The National Museum of Natural History's current dinosaur exhibit will close in 2014, with the renovated hall scheduled for completion in 2019. The total cost of the work is estimated at $45 million.
You can read more about this story in The Washington Post.
Game Changing Ruling On Tax Exemption?
A Pennsylvania Supreme Court ruling on the tax exempt status of a Brooklyn, N.Y.-based Orthodox Jewish school's camp could have the potential to set precedent for future legal challenges of charities.
According to a report in the Pittsburgh Post-Gazette, the Mesivtah Eitz Chaim of Bobov Inc. summer camp was ruled not to be a nonprofit, despite being owned by a religious institution. This is because most of the 61-acre property surrounding the camp does not meet the criteria for charities in Pennsylvania.
The ruling has some concerned that we could be returning to the times, mainly in the 1980s and 1990s, when the tax exempt status of nonprofits was regularly challenged by local governments. A spokesman for Pennsylvania state Senate Pro Tem Joe Scarnati openly raised the possibility that the state's constitution might need to be amended the clarify the section on purely public charities.
The court's decision, a narrow 4-3 ruling, had this kind of impact for a number of reasons. For one, it turned the notion of what qualifies as a nonprofit on its head. Yet even more telling was that the court cited its own 1985 ruling, Hospital Utilization Project v. Commonwealth, as the controlling point, not a 1997 law known as Act 55, which lays out what defines a public charity.
The 1985 ruling, also known as the HUP Test, states that a purely public charity must pass five tests to gain tax exemption: advance a charitable purpose; donate or render gratuitously a substantial portion of its services; benefit a substantial and indefinite class of persons who are legitimate subjects of charity; operate entirely free from private profit motive; and relieve the government of some of its burden. Mesivtah Eitz Chaim of Bobov Inc met every criteria except the last one.
We have already seen a number of legal challenges of tax exempt organizations in the past year, with the most famous example being the case of a number of nonprofit hospitals in Illinois.
You can read the full story in the Pittsburgh Post-Gazette.
According to a report in the Pittsburgh Post-Gazette, the Mesivtah Eitz Chaim of Bobov Inc. summer camp was ruled not to be a nonprofit, despite being owned by a religious institution. This is because most of the 61-acre property surrounding the camp does not meet the criteria for charities in Pennsylvania.
The ruling has some concerned that we could be returning to the times, mainly in the 1980s and 1990s, when the tax exempt status of nonprofits was regularly challenged by local governments. A spokesman for Pennsylvania state Senate Pro Tem Joe Scarnati openly raised the possibility that the state's constitution might need to be amended the clarify the section on purely public charities.
The court's decision, a narrow 4-3 ruling, had this kind of impact for a number of reasons. For one, it turned the notion of what qualifies as a nonprofit on its head. Yet even more telling was that the court cited its own 1985 ruling, Hospital Utilization Project v. Commonwealth, as the controlling point, not a 1997 law known as Act 55, which lays out what defines a public charity.
The 1985 ruling, also known as the HUP Test, states that a purely public charity must pass five tests to gain tax exemption: advance a charitable purpose; donate or render gratuitously a substantial portion of its services; benefit a substantial and indefinite class of persons who are legitimate subjects of charity; operate entirely free from private profit motive; and relieve the government of some of its burden. Mesivtah Eitz Chaim of Bobov Inc met every criteria except the last one.
We have already seen a number of legal challenges of tax exempt organizations in the past year, with the most famous example being the case of a number of nonprofit hospitals in Illinois.
You can read the full story in the Pittsburgh Post-Gazette.
Comment On The News
One of the great things about the Internet is the ability to interact with a community. Sharing your opinion on the hottest stories is a lot of fun, and now you can do just that thanks to the new commenting feature on The NonProfit Times.
Make your voice heard on the latest issues in the nonprofit sector by signing up to our website today. Once you fill in all the required fields, you can start commenting on any of our news stories. We're really excited to hear your opinions and see some lively (but civil) debates on the hot stories affecting nonprofits.
To get things rolling, here's a link to one of our newest stories on the end of Public/Private Ventures. What are your thoughts on this organization closing its doors after 35 years?
Make your voice heard on the latest issues in the nonprofit sector by signing up to our website today. Once you fill in all the required fields, you can start commenting on any of our news stories. We're really excited to hear your opinions and see some lively (but civil) debates on the hot stories affecting nonprofits.
To get things rolling, here's a link to one of our newest stories on the end of Public/Private Ventures. What are your thoughts on this organization closing its doors after 35 years?
Friday, May 4, 2012
The NPT Jobs Posting Special
In this tough economy, you need to take advantage of all sources when recruiting new candidates for open positions. That means not only using job boards, but also social media and print advertisements. With the newest jobs posting special from The NonProfit Times, you get all of that and more.
For only $595, your organization will get all the tools it needs to reach a wide audience of job seekers. Here's a look at some of the highlights:
For only $595, your organization will get all the tools it needs to reach a wide audience of job seekers. Here's a look at some of the highlights:
- Online 30 day posting on The Nonprofit Job Seeker.
- Banner ad to run for 30 days that ad is running, SITE WIDE.
- Job tweeted to @nptjobs & @nonprofittimes list 3x each.
- Listing in the print and digital editions of our magazine
- Blog post of your listing on our Jobs Blog
NY Attorney General Sues Race Horse Nonprofit
New York Attorney General Eric Schneiderman announced yesterday that he has filed a lawsuit against the directors of a nonprofit for retired race horses.
The Rochester Democrat and Chronicle reported that Schneiderman accused the Saratoga Springs, N.Y.-based Thoroughbred Retirement Foundation (TRF) of providing inadequate care for its 1,100 retired race horses. The suit alleges the organization took on more horses than it could handle, leading to poor food, unattended injuries, and a lack of shelter for severe weather.
In a statement, Schneiderman said that both the state and the nation need TRF to succeed but that the group's "board has driven this vital organization into the ground." The foundation is also accused of paying its boarding farms less than $3 per horse a day to provide care -- less than half spent by similar organizations -- and that the board diverted funds for horses to repay loans by two of the organization's directors.
TRF Chairman John Moore has denied the allegations, saying that suit is based on a "pile of lies." He insisted that all of the horses they care for are in good condition, and that TRF would pursue every legal avenue to defend itself.
You can read the full story in The Rochester Democrat and Chronicle.
The Rochester Democrat and Chronicle reported that Schneiderman accused the Saratoga Springs, N.Y.-based Thoroughbred Retirement Foundation (TRF) of providing inadequate care for its 1,100 retired race horses. The suit alleges the organization took on more horses than it could handle, leading to poor food, unattended injuries, and a lack of shelter for severe weather.
In a statement, Schneiderman said that both the state and the nation need TRF to succeed but that the group's "board has driven this vital organization into the ground." The foundation is also accused of paying its boarding farms less than $3 per horse a day to provide care -- less than half spent by similar organizations -- and that the board diverted funds for horses to repay loans by two of the organization's directors.
TRF Chairman John Moore has denied the allegations, saying that suit is based on a "pile of lies." He insisted that all of the horses they care for are in good condition, and that TRF would pursue every legal avenue to defend itself.
You can read the full story in The Rochester Democrat and Chronicle.
Thursday, May 3, 2012
Featured Nonprofit Job: Grant Writer
Lutheran Social Services of Central Ohio (LSSCO) is actively searching for a full-time Grant Writer to identify and pursue a vast array of grant opportunities that support fundraising and program priorities for the organization. This position will partner with program leadership to plan and ensure targeted grant goals are being met. While teamwork is certainly a part of this job, you must also be able to work independently to research, analyze, and make recommendations for new grant opportunities.
Wondering what it takes to qualify for this work? LSSCO listed the following requirements in their job description:
- Bachelor's Degree in communications or a related field.
- At least five years of grant writing experience, specifically with government or other complex grants.
- Strong computer skills with knowledge in online resources, Microsoft Office products, and Raiser's Edge or other application databases.
- Demonstrated ability to work as a team and develop collaborative partnerships with the ability to set expectations, hold other accountable, and provide effective feedback. Must be able to handle multiple tasks simultaneously and set priorities.
Alexandria Nonprofits Cash In On Giving Day
Online giving days have been very popular recently, with cities such as Erie, N.Y. participating in a 24-hour marathon of fundraising. Alexandria, Va., which has hosted this kind of event in the past, has once again cashed in on its popularity.
The Washington Post reported that organizations in the northern Virginia city hoped to raise $200,000 in the 24-hour "Spring2ACTion Alexandria" online giving day which ended yesterday. The event encouraged donors of all income levels to give $10 or more to local charities via spring2action.org or by phone.
Nonprofits not only reached their goal, they exceeded it.
According to the numbers from spring2action.org, nonprofits raised a combined $319,333 from 3,698 donors. Last year's Spring2Action campaign raised $104,000 from more than 1,200 donors.
Casa Chirilagua, a Christian faith-based nonprofit, led all organizations with $33,774 from 186 unique donors. The Art League Inc. came in a close second, with $32,416 from 610 unique donors, which was the most donors to any organization during the event.
Spring2ACTion Alexandria was the first of three days of fundraising events in the city. A business philanthropy summit, a community service day, and a kids lemonade stand day are upcoming. You can read more about Spring2ACTion and these other events in The Washington Post.
The Washington Post reported that organizations in the northern Virginia city hoped to raise $200,000 in the 24-hour "Spring2ACTion Alexandria" online giving day which ended yesterday. The event encouraged donors of all income levels to give $10 or more to local charities via spring2action.org or by phone.
Nonprofits not only reached their goal, they exceeded it.
According to the numbers from spring2action.org, nonprofits raised a combined $319,333 from 3,698 donors. Last year's Spring2Action campaign raised $104,000 from more than 1,200 donors.
Casa Chirilagua, a Christian faith-based nonprofit, led all organizations with $33,774 from 186 unique donors. The Art League Inc. came in a close second, with $32,416 from 610 unique donors, which was the most donors to any organization during the event.
Spring2ACTion Alexandria was the first of three days of fundraising events in the city. A business philanthropy summit, a community service day, and a kids lemonade stand day are upcoming. You can read more about Spring2ACTion and these other events in The Washington Post.
Wednesday, May 2, 2012
Online Giving Challenge Raises $2.2 Million
An online giving challenge sponsored by Battle Creek, Mich.-based W.K. Kellogg Foundation (WKKF) raised more than $2.2 million over 10 days.
"The Challenge was a success because it really engaged grassroots participation," said Dr. Alandra Washington, the foundation's deputy director of programs for the education and learning, and family economic security teams. "This will serve as a model for what communities can do to help themselves and their causes in the social media realm."
Read the full press release in The Sacramento Bee.
Twenty-two nonprofits participated in the foundation's national "Cultures of Giving Challenge," according to a press release posted in The Sacramento Bee. The challenge ran from April 17 to April 26 and provided a dollar-for-dollar match up to the first $20,000 per nonprofit. A total of $1.3 million was raised from 3,421 donations, with WKKF matching that number with a total of $915,000.
WKKF decided to hold The Challenge after the release of its report entitled "Cultures of Giving: Energizing and Expanding Philanthropy by and for Communities of Color." The report showcased the power of identity-based philanthropy, which is a growing movement to get people from that community to engage in philanthropic giving. A recent report by Blackbaud also indicated that online giving is continuing to grow, increasing for the 12th month in a row.
Read the full press release in The Sacramento Bee.
Tuesday, May 1, 2012
The May 1 Issue Of The NonProfit Times
With the beginning of a new month comes a new issue of The NonProfit Times. We're excited to commemorate the beginning of our march towards summer with the release of our May 1 issue! This edition of NPT contains a new Special Report and insights on topics from education to boards. Let's take a look at what's inside, shall we?
Special Report:
Special Report:
- Online Or Offline: What's the key for to successful professional development? It looks like it's a combination of both online and offline work.
Articles:
- East Coast Vs. West Coast, Public Vs. Private: Our main cover story for this issue focuses on the role geography plays when it comes to fundraising at colleges and universities.
- Nonprofits Make Sure Friends Find Them 'Pinteresting': An in-depth look at how nonprofits are making use of the latest social media phenomenon, Pinterest. Is there a future in its use for organizations?
- Smaller Boards Flexible, Engage All Members: It seems that less may be more when it comes to the size of nonprofit boards.
Columns:
- Taxes Vs. Fundraising: Why is the federal government trying to do the work of nonprofits?
- Don't Assume: Leaders of volunteers deal daily with all sorts of misconceptions that seem never to die, no matter how often they are challenged. One of these is the assumption that people automatically know how to work effectively with volunteers.
MD Nonprofits To Get Advance Funding
Small nonprofits in Montgomery County, Md. will get one-third of their funding up front beginning next fiscal year.
Gazette.net reported yesterday that, starting in Fiscal 2013, the Department of Health and Human Services (HHS) will implement this change for nonprofits that receive less than $26,000 dollars from the county. As it currently stands, organizations that contract with HHS submit monthly invoices with supporting documents. HHS then reimburses them for what they spend.
Uma Ahluwalia, the director of the county's HHS, told Gazette.net that giving nonprofits advance contracts will allow them to better fulfill their goals. She added that this change was first requested by the nonprofits in Montgomery County.
Here is how the new policy would work: If a nonprofit receives less than $26,000 from the county, it would get $8,600 up front. Assuming all of the organizations in that group received that amount of money, the county would spend about $480,000 in advance. HHS also plans to allow smaller nonprofits to keep back-up documents on-site, simplifying the administration of the money.
You can read the full story on Gazette.net.
Gazette.net reported yesterday that, starting in Fiscal 2013, the Department of Health and Human Services (HHS) will implement this change for nonprofits that receive less than $26,000 dollars from the county. As it currently stands, organizations that contract with HHS submit monthly invoices with supporting documents. HHS then reimburses them for what they spend.
Uma Ahluwalia, the director of the county's HHS, told Gazette.net that giving nonprofits advance contracts will allow them to better fulfill their goals. She added that this change was first requested by the nonprofits in Montgomery County.
Here is how the new policy would work: If a nonprofit receives less than $26,000 from the county, it would get $8,600 up front. Assuming all of the organizations in that group received that amount of money, the county would spend about $480,000 in advance. HHS also plans to allow smaller nonprofits to keep back-up documents on-site, simplifying the administration of the money.
You can read the full story on Gazette.net.
Monday, April 30, 2012
Nonprofit Hospitals Accused Of Poor Charitable Care
A recent study by the Congressional Budget Office (CBO) found that many nonprofit hospitals provide only slightly more charitable care than for-profit ones.
A report on North County Public Radio (NCPR) expanded on this study by telling the story of Lori Duff from Columbus, OH. Duff had frequently visited a local nonprofit hospital called Mount Caramel Health for prenatal care while pregnant with her third son. She had assumed that, since she was earning less than 200 percent of the federal poverty level, that the prenatal care would be free. That's why she was shocked when debt collectors demanded $1,800 for her visits to the hospital.
A spokesperson for Mount Caramel, which sued Duff and several other patients for not paying their bills, told NCPR that its mission is to provide as much charitable care as possible, but it must collect payments from those who can afford to pay them.
This is not the first instance that nonprofit hospitals have been accused of stingy health care. Three Illinois hospitals were denied tax-exemption last year after it was deemed they did not provide enough free care. The Affordable Care Act of 2010 attempted to address this type of issue by setting new rules for how nonprofit hospitals report its charity care. These new rules went into effect last year but have not been widely enforced. Here are some of the requirements:
A report on North County Public Radio (NCPR) expanded on this study by telling the story of Lori Duff from Columbus, OH. Duff had frequently visited a local nonprofit hospital called Mount Caramel Health for prenatal care while pregnant with her third son. She had assumed that, since she was earning less than 200 percent of the federal poverty level, that the prenatal care would be free. That's why she was shocked when debt collectors demanded $1,800 for her visits to the hospital.
A spokesperson for Mount Caramel, which sued Duff and several other patients for not paying their bills, told NCPR that its mission is to provide as much charitable care as possible, but it must collect payments from those who can afford to pay them.
This is not the first instance that nonprofit hospitals have been accused of stingy health care. Three Illinois hospitals were denied tax-exemption last year after it was deemed they did not provide enough free care. The Affordable Care Act of 2010 attempted to address this type of issue by setting new rules for how nonprofit hospitals report its charity care. These new rules went into effect last year but have not been widely enforced. Here are some of the requirements:
- Nonprofit hospitals are prohibited from charging uninsured low-income payments higher rates than the lowest amounts billed to individuals with insurance.
- They must have a clearly written financial assistance policy describing who is eligible for free or reduced cost care.
- Extraordinary collections actions are not allowed against patients before determining whether the patient qualifies for financial assistance.
You can read the full story on NCPR's website.
Friday, April 27, 2012
Salvation Army To Announce NFL Draft Pick
The organization announced on its website today that Chief Communications Officer Major General George Hood will be announcing the Dallas Cowboy's fourth round draft pick tomorrow morning.
“This is a very exciting opportunity. A way to recognize the long-standing relationship between The Salvation Army and the Dallas Cowboys,” said Major Hood. “It will certainly be an honor for me to announce the fourth round draft pick and on a personal note, should be a lot of fun!“
The Dallas Cowboys, who selected Louisiana State University's Corner Back Morris Claiborne in the Draft's first round last night, have supported the Salvation Army for 14 years in a number of ways. For instance, the team's Executive Vice President of Brand Management, Charlotte Jones Anderson, has served as the nonprofit's National Advisory Board Chairperson. She has also organized the annual Red Kettle Kickoff event at Cowboys stadium on Thanksgiving Day since 1998.
4th round draft choices don't exactly come with the hype of first or even second round picks but that doesn't mean the player chosen won't have an impact. After all, some guy named Tom Brady was the New England Patriot's sixth round draft pick in 2000.
You can read the full story on the Salvation Army's blog.
California Academy of Sciences Tops Most Expensive U.S. Museums
How would you like to spend $30 to go to a museum? That's the amount you will have to shell out if you want to enjoy the California Academy of Sciences.
The San Francisco, Calif.-based museum tops Consumer Search's top 20 most expensive museums in the U.S. Other institutions that made this dubious list were New York City's Metropolitan Museum of Art ($25; recommended price), Boston's Museum of Fine Arts ($22), and Washington, D.C.'s International Spy Museum ($19.95).
Museums are mostly nonprofits and thus free from property taxes, which would lead the average citizen to believe they should be relatively cheap to enter. This seems like a rational thought, but there's a number of issues. The pieces that appear in these museums can sometimes go for millions of dollars and those prices have to be subsidized somehow. Museums also have legions of curators, art restorers, and researches on staff, and they don't come cheap either. Finally, government grants to museums have continually decreased in value, according to a study by USA Today.
There are ways to avoid these steep prices. Many of these museums allow visitors to purchase annual memberships which reduce the prices of tickets. There are also some institutions that have free admission on weekends and certain times. Yet D.C. seems to have the best deal: Most of the museums there, outside of the Spy Museum, are free. This includes the National Gallery of Art and the Air and Space Museum.
Want to see Consumer Search's full list? Head on over to their website and see which museums will cost you the most.
The San Francisco, Calif.-based museum tops Consumer Search's top 20 most expensive museums in the U.S. Other institutions that made this dubious list were New York City's Metropolitan Museum of Art ($25; recommended price), Boston's Museum of Fine Arts ($22), and Washington, D.C.'s International Spy Museum ($19.95).
Museums are mostly nonprofits and thus free from property taxes, which would lead the average citizen to believe they should be relatively cheap to enter. This seems like a rational thought, but there's a number of issues. The pieces that appear in these museums can sometimes go for millions of dollars and those prices have to be subsidized somehow. Museums also have legions of curators, art restorers, and researches on staff, and they don't come cheap either. Finally, government grants to museums have continually decreased in value, according to a study by USA Today.
There are ways to avoid these steep prices. Many of these museums allow visitors to purchase annual memberships which reduce the prices of tickets. There are also some institutions that have free admission on weekends and certain times. Yet D.C. seems to have the best deal: Most of the museums there, outside of the Spy Museum, are free. This includes the National Gallery of Art and the Air and Space Museum.
Want to see Consumer Search's full list? Head on over to their website and see which museums will cost you the most.
Thursday, April 26, 2012
U.S. Senate Passes Postal Reform
The United States Senate voted yesterday to pass the Postal Reform Act. The bill will now be sent to the House of Representatives where it awaits an uncertain fate.
As reported by The Washington Post, the Postal Reform Act will make sweeping reforms to the United States Postal Service (USPS). It would, among other things, permit the ending of Saturday mail deliveries in two years if the USPS determines it financially necessary, and would place restrictions on the amount of facilities that can be closed. For example, USPS cannot close a rural post office unless the next-nearest location is no more than 10 miles away. It would also maintain the current nonprofit postage rate.
The bill, passed 62 to 37, is meant to preserve the cash-strapped USPS. The organization has been on the verge of financial collapse for years, and it is no longer able to sustain delivery operations that still process 554 million pieces of mail a day. That is why the Postal Service has pushed to end Saturday mail. While the Senate version of the bill delays that decision, the House bill sponsored by Rep. Darrell Issa (R-Calif.) would permit the USPS to immediately end Saturday deliveries. A strong majority of Republican representatives, including Issa, oppose the current Senate bill.
The House has until May 15, when the USPS will resume closing its facilities, to pass the bill. This is part of its plan to cut more than $22 million in costs by 2015. Direct mail has been in a decline in recent years as e-mail has increased in popularity. According to statistics from the Postal Service, only 168 million pieces of mail were delivered last year, compared to 202.8 billion a decade ago.
You can read the full story in The Washington Post.
As reported by The Washington Post, the Postal Reform Act will make sweeping reforms to the United States Postal Service (USPS). It would, among other things, permit the ending of Saturday mail deliveries in two years if the USPS determines it financially necessary, and would place restrictions on the amount of facilities that can be closed. For example, USPS cannot close a rural post office unless the next-nearest location is no more than 10 miles away. It would also maintain the current nonprofit postage rate.
The bill, passed 62 to 37, is meant to preserve the cash-strapped USPS. The organization has been on the verge of financial collapse for years, and it is no longer able to sustain delivery operations that still process 554 million pieces of mail a day. That is why the Postal Service has pushed to end Saturday mail. While the Senate version of the bill delays that decision, the House bill sponsored by Rep. Darrell Issa (R-Calif.) would permit the USPS to immediately end Saturday deliveries. A strong majority of Republican representatives, including Issa, oppose the current Senate bill.
The House has until May 15, when the USPS will resume closing its facilities, to pass the bill. This is part of its plan to cut more than $22 million in costs by 2015. Direct mail has been in a decline in recent years as e-mail has increased in popularity. According to statistics from the Postal Service, only 168 million pieces of mail were delivered last year, compared to 202.8 billion a decade ago.
You can read the full story in The Washington Post.
Wednesday, April 25, 2012
Privacy Issues For Mobile Payments?
Yet, as The New York Times reported yesterday, this ease of use may be coming at price of reduced privacy. The Center for Democracy and Technology (CDT), a Washington, D.C.-based nonprofit that focuses on technology laws, recently published a blog post expressing its concerns about mobile payment technology.
One of the organization's issues with this technology is that it can expose payment data to more parties than if you paid with a credit card. For example, when you use Google Wallet your information is not only given to Google, but also to credit card issuers and payment processors. Third-party applications can also potentially get a hold of this data. All of this information comes in small bits but once it is all combined, companies have a very detailed file from which to work.
Another issue comes in the form of telemarketing. Users can still get these unwanted calls even if they are on the national do-not-call list if they use mobile payments. Why? If a mobile payment app collects a user's number, the merchant can make phone or text solicitations.
CDT urged companies to put stronger privacy protections into their mobile payment services if they want to gain the trust of consumers.
You can read the full story in The New York Times.
Seattle Hates Junk-Mail
You think you hate junk-mail? Your hatred is nothing compared to Seattle's crusade against unwanted mail.
The Atlantic reported Monday on a new ranking put together by Berkeley, Calif.-based Catalog Choice, a privacy protection company, shows that Seattle, Wash. is the top city in the country when it comes to battling junk-mail. The organization surveyed its customers and found that the Emerald City had the most people who contacted them to get removed from the lists of junk-mail senders. Other cities that made the list were Santa Fe, NM, Boulder, Col., and Ithaca, NY.
Junk-mail is mostly associated with e-mail these days, but the death of junk direct mail has been delayed thanks to an initiative by the United States Postal Service (USPS). The "Every Door Direct Mail" program will essentially allow business to bombard your house with mail. Companies don't even have to know your address to send to you; they can simply select a neighborhood they want to target and their mail will be delivered to every house in that area.
Spam mail is not only annoying to recipients, it also is very pricey for city budgets. It costs about $40 a ton to send garbage to a landfill. On the other hand, it costs only $10 for them to work with Catalog Choice to get them removed from junk-mail lists.
You can read the full list of cities ranked by Catalog Choice in The Atlantic.
The Atlantic reported Monday on a new ranking put together by Berkeley, Calif.-based Catalog Choice, a privacy protection company, shows that Seattle, Wash. is the top city in the country when it comes to battling junk-mail. The organization surveyed its customers and found that the Emerald City had the most people who contacted them to get removed from the lists of junk-mail senders. Other cities that made the list were Santa Fe, NM, Boulder, Col., and Ithaca, NY.
Junk-mail is mostly associated with e-mail these days, but the death of junk direct mail has been delayed thanks to an initiative by the United States Postal Service (USPS). The "Every Door Direct Mail" program will essentially allow business to bombard your house with mail. Companies don't even have to know your address to send to you; they can simply select a neighborhood they want to target and their mail will be delivered to every house in that area.
Spam mail is not only annoying to recipients, it also is very pricey for city budgets. It costs about $40 a ton to send garbage to a landfill. On the other hand, it costs only $10 for them to work with Catalog Choice to get them removed from junk-mail lists.
You can read the full list of cities ranked by Catalog Choice in The Atlantic.
Tuesday, April 24, 2012
Art Museum Director Paid $1 Million
The article states that Thomas P. Campbell, who was named director in 2009, earned a 2 percent increase from his previous salary. Overall, he made $653,402 when the nearly $389,051 in benefits is excluded. That is way below the average for executives in the arts field, as shown by NPT's 2011 Salary and Benefits Report. Still, it is comparable to other top museum jobs. The Museum of Modern Art's head, Glen Lowry, earned $1.6 million in compensation in 2009.
The increase in salary for Campbell coincided with the museum's highest attendance levels in nearly four decades. For the year ending June 2011, attendance was 5.7 million, a 9 percent increase. This was due in large part to the wildly popular exhibit showcasing clothes and accessories designed by the late fashion designer Steve McQueen.
A spokesman for the Met told Bloomberg that the increased benefits Campbell received was due in large part to his move to a museum-owned apartment in September 2009. The apartment, which is rent-free, is used for museum-related entertainment and events. The spokesman added that Campbell's travel wasn't part of compensation.
You can read the full story in Bloomberg.
Monday, April 23, 2012
Advocacy Group Files IRS Complaint Against ALEC
An advocacy group filed a complaint with the Internal Revenue Service (IRS) against the American Legislative Exchange Council (ALEC), claiming that the group is violating its tax-exempt status.
The Washington Post reported today that D.C.-based Common Cause accused ALEC of lobbying the government while hiding behind its nonprofit status. ALEC describes itself as a nonprofit that brings together lawmakers and private sector organizations to develop new legislation and policy.
Common Cause disagrees with this premise, saying that the organization's main motivation is to lobby for policies that favorably impact businesses. The nonprofit requested that the IRS conduct an audit of ALEC's work, penalties, and back taxes.
ALEC, which was formed in the 1970s, has long been a target of open government groups that are suspicious of its partnership with legislators. The group has made headlines recently for its support of the "Stand Your Ground Laws," which have played a major role in the shooting of Trayvon Martin. Companies that have previously partnered with ALEC, such as Coca Cola, are no longer members, and the group says it is disbanding its task force that was responsible for importing the law to other states.
You can read the full story in The Washington Post.
The Washington Post reported today that D.C.-based Common Cause accused ALEC of lobbying the government while hiding behind its nonprofit status. ALEC describes itself as a nonprofit that brings together lawmakers and private sector organizations to develop new legislation and policy.
Common Cause disagrees with this premise, saying that the organization's main motivation is to lobby for policies that favorably impact businesses. The nonprofit requested that the IRS conduct an audit of ALEC's work, penalties, and back taxes.
ALEC, which was formed in the 1970s, has long been a target of open government groups that are suspicious of its partnership with legislators. The group has made headlines recently for its support of the "Stand Your Ground Laws," which have played a major role in the shooting of Trayvon Martin. Companies that have previously partnered with ALEC, such as Coca Cola, are no longer members, and the group says it is disbanding its task force that was responsible for importing the law to other states.
You can read the full story in The Washington Post.
What Should You Pay Nonprofit Executives?
One of the facts of life is that business executives are rewarded handsomely for their work. Whether or not you think their compensation is fair is besides the point.
Executive compensation is always going to be a hot topic, but it is even more scrutinized at nonprofits where there is an expectation of greater restraint. There have been many cases over the past few years of organizations getting in hot water because of perceived excesses, the most recent being New York Governor Andrew Cuomo's investigation of nonprofit executive pay in the state.
The easiest way to determine whether executives at your nonprofit are being paid appropriately is to look at what the big wigs at similar organizations are making. In NPT's 2011 Salary and Benefits Report, we see that the size of the nonprofit plays a big role in the compensation of executives. Organizations with an operating budget of $0 to $499,999 gave top employees an average salary of $55,766. This number ballooned to $166,867 when the budget was $50,000,000 or more.
The field the agency is in also plays a big role in executive compensation. Our report shows that the Healthcare Sector, which is in great demand, gives out an average salary of $100,603. International/Foreign Affairs salaries are even higher, topping out at $110,057. The area that paid the lowest was the Arts, at $67,454. This isn't too much of a surprises at these institutions have seen a lot of funding cuts in recent years.
Your board should keep these numbers in mind when considering what to pay the CEO or other executive. If you want to learn more, purchase the 2011 Salary and Benefits Report. You should also make sure to participate in our 2012 Salary Survey, so these numbers can stay up-to-date.
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