Actor Alec Baldwin has donated $1 million to the New York Philharmonic in honor of the organization's departing president, Zarin Meheta, who is stepping down after 12 years.
Baldwin, who joined the Philharmonic's board in March 2011, gave the money from proceeds he earned from his commercials with Capital One Bank, according to an article in Crain's New York Business.
"I have loved classical music all of my life," Baldwin said in a statement. "But Zarin Mehta made my dream of becoming part of the world of classical music come true."
In addition to being a member of the board, the "30 Rock" actor has hosted the organization's weekly radio show since 2009. In a statement, Meheta said that Baldwin's "role as our radio host has brought us many new listeners, as well as much appreciated attention. And his active roles as board member, gala benefit chairman, and high-profile and magnanimous donor have benefited us and our field."
Meheta, who will leave his post at the end of the Philharmonic's 2011-2012 season, will be replaced by incoming executive director Matthew VanBesien.
This isn't the only big influx of money going to an arts institution. Crain's also reported that the New York City Council approved a bill last week that secured $156.4 million in funding for cultural and art institutions in the city's fiscal year 2013 budget. It represents an increase of $3.6 million from last year.
You can read the full report on Baldwin's donation in Crain's.
Monday, July 2, 2012
Finding A New Board Chair
While every one on a nonprofit board has a lot of responsibilities, the chair remains one of the most integral members. From delegating and encouraging colleagues to giving the board an identity, the chairman of the board exerts a great deal of influence.
That's why it can be so important to find the right individual to take this role.
Unfortunately, finding the ideal candidate is easier said than done. In order to begin the process of choosing a new board chair, Dennis C. Miller, a frequent contributor to The NonProfit Times and head of Dennis C. Miller Associates in Morristown, N.J., said there are 10 specific actions that can be taken to identify and appoint a board chair:
That's why it can be so important to find the right individual to take this role.
Unfortunately, finding the ideal candidate is easier said than done. In order to begin the process of choosing a new board chair, Dennis C. Miller, a frequent contributor to The NonProfit Times and head of Dennis C. Miller Associates in Morristown, N.J., said there are 10 specific actions that can be taken to identify and appoint a board chair:
- Immediately begin to assess the leadership talent of current board members.
- Ask your current board chair to begin as soon as possible to identify potential candidates.
- Institute ongoing board training for all board members.
- Offer the chair-elect a professional board coach/mentor.
- Ensure the board’s work is done efficiently.
- Find ways to recognize and reward board members for the job they do.
- Provide opportunities for all board members to participate in a wide array of committees, task forces and advisory boards.
- Highlight the organization's continuous strides for excellence.
- Recognize former board chairs for their contributions.
- Recognize and address the reasons why appointing a board chair is difficult.
The July 1 Issue Is Now Online
The recent release of the Giving USA numbers for 2011 was one of the bigger nonprofit stories of June. In the just release July 1 issue of The NonProfit Times, we take a closer look at those numbers in an in-depth special report.
We also have our usual assortment of articles on a wide variety of topics. Let's take a look at what you can expect in the newest edition of NPT:
Special Report
We also have our usual assortment of articles on a wide variety of topics. Let's take a look at what you can expect in the newest edition of NPT:
Special Report
- 2011 Giving Estimated At $298.42B: As mentioned above, this report takes an in-depth look at the recently released report from Giving USA, including which subsectors of giving did the best, and which did not.
Articles
- Consumers, i.e., Donors, Starting To Like Tumblr: Facebook and Twitter get all the attention, but some nonprofits are turning their attention to Tumblr, a popular micro-blogging site that has more visitors per month than even Craigslist or LinkedIn.
- Kansas Nonprofits Hit With New State Contract Provisions: Nonprofit service providers in Kansas face a new regulation imposed by the state’s Department of Social and Rehabilitation Services (SRS) that could place strict limitations on the ability to advocate and lobby officials.
- The Pitch: JDRF Makes The Case With Reality TV: The Juvenile Diabetes Research Foundation (JDRF) made a recent appearance on AMC's "The Pitch." Read about how it went, and if the organization sees success in the reality TV show.
Columns
- We Can't Hear You Now: The numbers from Giving USA showed that donations by corporations declined by 0.1 percent in current dollars, or a 3.1 percent decline as measured by inflation-adjusted dollars. Our editor-in-chief, Paul Clolery, says it's time for for-profits to step up to the plate.
- Digital Stewardship: Nonprofit stewardship is not just about saying thank you, it’s about showing how you use your resources to further your mission and sharing the impact your constituents have towards it.
Friday, June 29, 2012
Veterans Groups Create $30 Million Fund
The Iraq and Afghanistan Veterans of America (IAVA) and four other nonprofits, have joined forces to create a fund that will raise money for war veterans.
Called the Veteran Support Fund, it will direct donations to IAVA and the four partner organizations, according to MSNBC. Those four organizations are Operation Mend, which gives medical support to critically injured veterans; Tragedy Assistance Program for Survivors, which provides coping and trauma resources; Operation Homefront, which offers emergency financial aid to wounded soldiers and their families; and the National Military Family Association, which advocates for benefits and programs for military families.
The goal of the fund is to raise $30 million, and it has already received founding gifts of $1.1 million.
IAVA executive director Paul Rieckhoff, who is himself a veteran of the Iraq War, said in a statement that "Supporting veterans isn’t charity, it’s an absolute necessity and an investment in our country’s future. After ten years of war, our nation’s military families are strained, nonprofit services are maxed out and our veterans’ community is severely under-resourced."
Jim Knotts, president and CEO of Operation Homefront, told MSNBC that the money from the Veteran Support Fund will help the organization provide more services than they would normally be able to. The nonprofit last year met more than 5,000 emergency requests and provided transitional housing for 80 families. He stressed the need to continue to help veterans even with the two wars seemingly winding down.
You can read the full story on MSNBC's website.
Called the Veteran Support Fund, it will direct donations to IAVA and the four partner organizations, according to MSNBC. Those four organizations are Operation Mend, which gives medical support to critically injured veterans; Tragedy Assistance Program for Survivors, which provides coping and trauma resources; Operation Homefront, which offers emergency financial aid to wounded soldiers and their families; and the National Military Family Association, which advocates for benefits and programs for military families.
The goal of the fund is to raise $30 million, and it has already received founding gifts of $1.1 million.
IAVA executive director Paul Rieckhoff, who is himself a veteran of the Iraq War, said in a statement that "Supporting veterans isn’t charity, it’s an absolute necessity and an investment in our country’s future. After ten years of war, our nation’s military families are strained, nonprofit services are maxed out and our veterans’ community is severely under-resourced."
Jim Knotts, president and CEO of Operation Homefront, told MSNBC that the money from the Veteran Support Fund will help the organization provide more services than they would normally be able to. The nonprofit last year met more than 5,000 emergency requests and provided transitional housing for 80 families. He stressed the need to continue to help veterans even with the two wars seemingly winding down.
You can read the full story on MSNBC's website.
Thursday, June 28, 2012
Are Capital Campaigns Right For Your Nonprofit?
There are plenty of reasons for nonprofits to love capital campaigns. They have the potential to generate a lot of cash for the organization, and can help increase awareness of your mission. On the downside, they take a lot of time and effort, and there's no guarantee for success.
So the question remains: To campaign or not to campaign?
The answer really depends on how ready your organization is. At a recent Association of Fundraising Professionals (AFP) annual conference, William Brans and Lee Appelman of Arts Consulting Group, Inc, and Susan Shapiro of Shapiro Associates LLC, said that the key to a successful capital campaign is being prepared.
How can you tell if your nonprofit is ready for a capital campaign? They listed the following qualifications:
How can you tell if your nonprofit is ready for a capital campaign? They listed the following qualifications:
- A strong annual fund;
- A good story, an urgent and compelling case for support;
- Internal leadership;
- External leadership;
- Qualified major gifts prospects;
- Assessing the environment: external as well as internal;
- A feasibility study with results that indicate campaign success;
- Knowing that the organization is a top priority for high-level donors;
- A strong, positive institutional image: Confidence and thinking big;
- The president/CEO/director are capable, eager fundraisers;
- The institution has invested in fundraising;
- Human, financial and technical resources are in place; and,
- Proper campaign timing.
If your nonprofit has all of these qualities, the congratulations: You're ready to campaign! Otherwise, you should consider waiting a little while before you start.
Breaking: Supreme Court Upholds Affordable Care Act
UPDATE: We have added more information to our story, including reaction from nonprofits
***
In just the last few minutes, the United States Supreme Court has voted to uphold the Affordable Care Act (ACA) by a 5-4 vote. Chief Justice John Roberts cast the deciding vote.
The NonProfit Times has continuing coverage of this breaking story, so head on over to our website to follow our developing article on this breaking story. We will update this post whenever we update our story with new information.
***
In just the last few minutes, the United States Supreme Court has voted to uphold the Affordable Care Act (ACA) by a 5-4 vote. Chief Justice John Roberts cast the deciding vote.
The NonProfit Times has continuing coverage of this breaking story, so head on over to our website to follow our developing article on this breaking story. We will update this post whenever we update our story with new information.
Wednesday, June 27, 2012
Proposed Rule Would Curb Nonprofit Hospital Debt Collection
The United States Treasury Department released a proposed guidance last week that, if enacted, would make changes to the debt collection process by nonprofit hospitals.
The new rules, which are regulation on a provision in the 2010 Affordable Care Act, were released last Friday, according to a blog post on National Public Radio's (NPR) website. The changes would require hospitals to take the following actions before requesting payment from patients:
"These practices jeopardize patient care, and our proposed rules will help ensure they don't happen in charitable hospitals," she said. "These rules also require charitable hospitals to establish and publicize financial assistance policies, and give hospitals the flexibility to establish programs that meet the needs of their communities."
The American Hospital Association (AHA), a trade group, has already come out in opposition to the proposed rules. Melinda Hatton, the group's general counsel, say the changes put too much of the blame on hospitals for the actions of third-party debt collectors. She also said that the penalties for being in violation were too severe, with with hospitals standing to lose their tax exemption.
At a hearing on the proposed changes in the U.S. Senate, Accretive Health Vice President Greg Kazarian apologized to patients about these aggressive tactics, but also said that their actions were exaggerated during investigation. A patient of Kazarian's company, Deb Waldin, said during the hearing that she was approached by a debt collector while she was in extreme pain from kidney stones.
You can read the full story on NPR.
The new rules, which are regulation on a provision in the 2010 Affordable Care Act, were released last Friday, according to a blog post on National Public Radio's (NPR) website. The changes would require hospitals to take the following actions before requesting payment from patients:
- Provide patients with a plain language summary of the financial assistance policy before discharge and with the first three bills;
- Give patients at least 120 days following the first bill to submit an application for financial assistance before commencing certain collection actions;
- Give the patient an additional 120 days (for 240 days total) to submit a complete application; and,
- If a patient is determined eligible for financial assistance during these 240 days, refund any excess payments made before applying for aid and seek to reverse any collections actions already commenced.
In a statement, Acting Assistant Secretary for Tax Policy Emily McMahon said the proposal was made because their had been many reports of aggressive hospital debt collection activities, including allowing collectors into emergency rooms.
"These practices jeopardize patient care, and our proposed rules will help ensure they don't happen in charitable hospitals," she said. "These rules also require charitable hospitals to establish and publicize financial assistance policies, and give hospitals the flexibility to establish programs that meet the needs of their communities."
The American Hospital Association (AHA), a trade group, has already come out in opposition to the proposed rules. Melinda Hatton, the group's general counsel, say the changes put too much of the blame on hospitals for the actions of third-party debt collectors. She also said that the penalties for being in violation were too severe, with with hospitals standing to lose their tax exemption.
At a hearing on the proposed changes in the U.S. Senate, Accretive Health Vice President Greg Kazarian apologized to patients about these aggressive tactics, but also said that their actions were exaggerated during investigation. A patient of Kazarian's company, Deb Waldin, said during the hearing that she was approached by a debt collector while she was in extreme pain from kidney stones.
You can read the full story on NPR.
NPT Editor-In-Chief To Be On Nonprofit Radio
Based in New York City,
Tony Martignetti has been helping nonprofits since 1997 through his work in planned giving and state charity registration. His Nonprofit Radio show has been a big part of that, as he interviews people in the nonprofit sector on topics ranging from fundraising to boards.
On Friday June 29, our editor-in-chief, Paul Clolery, will be joining Tony on Nonprofit Radio for an exclusive interview. Paul will be discussing a variety of topics of interest to listeners, including what is trending in the sector and his concerns about the future of charities.
Nonprofit Radio will also be talking to Gayle Gifford, author of "How to Make Your Board Dramatically More Effective, Today." She will discuss with Tony about how to make sure your charity's mission is relevant, your CEO is supported, and your board is strong.
Tune into Nonprofit Radio Friday at 1 PM to hear the interview with Paul and Gayle. It should be a great show!
Tuesday, June 26, 2012
NY LGBT Center Head Accused Of Theft
The former head of the primary lesbian, gay, bisexual, and transgender (LGBT) community center in the Bronx, N.Y. has been arrested on charges of stealing more than $338,000 from the organization.
According to a report in The New York Post, Lisa Winters was charged with grand larceny and falsifying business records at the Bronx Community Pride Center (BCPC). Winters served as the organization's executive director from 2004 to 2010, when she was terminated from the position. Winters allegedly used the funds to pay for various personal expenses, such as dog walking, a trip to South Africa, and clothes.
The missing money leaves BCPC in considerable debt which, according to officials at the nonprofit, could force it to close its doors.
Winters was fired in January 2010, as the NYC Department of Investigation (DOI) began to investigate claims that she spent BCPC money without permission. The DOI eventually released a report that found that Winters used $338,674 of the organization's funds from 2005 until 2009. The largest amount was allegedly spent on the South Africa trip in 2007, which she took with her now-wife Eileen Scroggins.
BCPC board Chair Michelle Lopez also told investigators that her daughter lived with Winters in 2008, and that she went on a cruise with her. The cruise had been purchased by the nonprofit to auction at a fundraiser, but Lopez accused Winters of taking it for herself.
You can read the full story in The New York Post.
According to a report in The New York Post, Lisa Winters was charged with grand larceny and falsifying business records at the Bronx Community Pride Center (BCPC). Winters served as the organization's executive director from 2004 to 2010, when she was terminated from the position. Winters allegedly used the funds to pay for various personal expenses, such as dog walking, a trip to South Africa, and clothes.
The missing money leaves BCPC in considerable debt which, according to officials at the nonprofit, could force it to close its doors.
Winters was fired in January 2010, as the NYC Department of Investigation (DOI) began to investigate claims that she spent BCPC money without permission. The DOI eventually released a report that found that Winters used $338,674 of the organization's funds from 2005 until 2009. The largest amount was allegedly spent on the South Africa trip in 2007, which she took with her now-wife Eileen Scroggins.
BCPC board Chair Michelle Lopez also told investigators that her daughter lived with Winters in 2008, and that she went on a cruise with her. The cruise had been purchased by the nonprofit to auction at a fundraiser, but Lopez accused Winters of taking it for herself.
You can read the full story in The New York Post.
County Controller Says Nonprofits Should Pay Up
The controller for Allegheny County, Pa. said yesterday that, in light of the higher taxes residents are seeing, nonprofits should be forced to give up their tax-exempt status.
According to a report in The Tribune-Review, Allegheny County Controller Chelsa Wagner made the statement Monday in what was billed a "taxpayer alert." "Residents are seeing their taxes go up and their services go down," Wagner said in the alert. "We’re saying the free riders need to be held accountable." Wagner estimated the county could raise $95 million by taxing around 26,500 tax-exempt parcels.
Under Wagner's proposal, nonprofits that want to keep their tax-exemption to send an application to the Office of Property Assessments every year, explaining why the deserve a tax break under the state's charities law. Despite her strong push for change, state officials seem skeptical that such a law could be passed. State Senator Wayne Fontanta (D-Brookline), said he received almost no support when he introduced a bill that would have allowed local governments to tax nonprofits on the value of their land, and County Executive Rich Fitzgerald questioned why Wagner did not introduce the plan she is proposing when she was a state representative from 2007 to 2012.
Wagner specifically singled out five organizations in Allegheny County: University of Pittsburgh Medical Center (UPMC), University of Pittsburgh, Carnegie Mellon University, West Penn Allegheny Health System, and Duquesne University. A UPMC spokeswomen responded to Wagner's report by saying that nonprofit medical and education organizations have driven the economic recovery in Western Pennsylvania, and that UPMC has contributed its fair share to the county. The medical center paid $176 million in federal and state employment taxes last year, in addition to contributing $565 million in charity and uncompensated care.
You can read the full report in The Tribune Review.
According to a report in The Tribune-Review, Allegheny County Controller Chelsa Wagner made the statement Monday in what was billed a "taxpayer alert." "Residents are seeing their taxes go up and their services go down," Wagner said in the alert. "We’re saying the free riders need to be held accountable." Wagner estimated the county could raise $95 million by taxing around 26,500 tax-exempt parcels.
Under Wagner's proposal, nonprofits that want to keep their tax-exemption to send an application to the Office of Property Assessments every year, explaining why the deserve a tax break under the state's charities law. Despite her strong push for change, state officials seem skeptical that such a law could be passed. State Senator Wayne Fontanta (D-Brookline), said he received almost no support when he introduced a bill that would have allowed local governments to tax nonprofits on the value of their land, and County Executive Rich Fitzgerald questioned why Wagner did not introduce the plan she is proposing when she was a state representative from 2007 to 2012.
Wagner specifically singled out five organizations in Allegheny County: University of Pittsburgh Medical Center (UPMC), University of Pittsburgh, Carnegie Mellon University, West Penn Allegheny Health System, and Duquesne University. A UPMC spokeswomen responded to Wagner's report by saying that nonprofit medical and education organizations have driven the economic recovery in Western Pennsylvania, and that UPMC has contributed its fair share to the county. The medical center paid $176 million in federal and state employment taxes last year, in addition to contributing $565 million in charity and uncompensated care.
You can read the full report in The Tribune Review.
Monday, June 25, 2012
Major Gifts: 5 Tips To Boost Your Success
The strict nonprofit manager's first instinct when staff doesn't meet major gift goals is to fire them. That's not necessarily the right move, according to fundraising expert Laura Fredricks.
In her book "The Ask: How To Ask Anyone for Any Amount for Any Purpose," Fredricks wrote that there are other steps you can take to boost the results of your major gifts campaigns. Rather than give your hard-working staff the ax, she suggested implementing the following five tips:
In her book "The Ask: How To Ask Anyone for Any Amount for Any Purpose," Fredricks wrote that there are other steps you can take to boost the results of your major gifts campaigns. Rather than give your hard-working staff the ax, she suggested implementing the following five tips:
- Time Management: They say that time is money, so don't waste it with too many meetings. Try to limit the ones you have to only the essentials. Fredricks also cautions against multitasking. While it sounds good in theory, it is really better to focus on one task at a time.
- Make Clear and Measurable Goals: Give your staff goals they can actually obtain. Do this by letting them know exactly what you expect and do reviews every few months to check on their progress. Remember that goals don't just have to be measured in dollar signs. You can easily measure success in face-to-face donor contact, meetings, and special event attendance.
- Be Cross-Functional: Is one of your key fundraisers out of the office? Make sure to teach members of your staff their skills so they can perform their job if needed. Something unexpected always happens, so you need people who can pick up the slack.
- Risk Management: You don't want to be pessimistic, but you should always have a plan in case the worst happens.Think about events that could hinder your operations (i.e., law changes, natural disasters) and come up with ways to manage those risks.
- Communicate and Demonstrate Your Staff's Worth: You should treat your staff like a team. All of the players are needed for your program to be a success -- and you should make sure they know that. There is no better way to boost employee morale than by showing that their opinions matter.
3 Necessities For Nonprofit Scaling
With the economy still floundering along, the demand for nonprofit services are high. Yet these same organizations are experiencing a lack of resources to fund important programs. How are nonprofits expected to make do? According to a recent post on Huffington Post Impact, the answer lies in scaling.
In the article, Ventureneer founder Geri Stengle wrote that organizations must scale if they are to continue to provide programs that solve social issues. This was a topic that was discussed in detail at the Social Impact Exchange in New York City. According to Stengle, the overarching theme of this year's conference was that scaling must be accompanied by appropriate investment in an organization's capacity.
Here are three methods of support that were discussed at the conference:
In the article, Ventureneer founder Geri Stengle wrote that organizations must scale if they are to continue to provide programs that solve social issues. This was a topic that was discussed in detail at the Social Impact Exchange in New York City. According to Stengle, the overarching theme of this year's conference was that scaling must be accompanied by appropriate investment in an organization's capacity.
Here are three methods of support that were discussed at the conference:
- Business Planning: Business plans are an opportunity to think things through on paper before putting the plan to the test. Nicole Farmer Hurd from the National College Advising Corps, Lisa Jackson from New Profit Inc., and Meghan Duffy, Manager of Special Initiatives at Grantmakers for Effective Organizations made this point during their panel.
- Leadership Development: Richard Brown of American Express Philanthropy told audiences that new leaders must get training when first beginning. Brown said that the leaders he has coached said that the advice they got from coaches transformed the way they thought.
- Peer Advisory Groups: During her panel, United Way of Long Island President/CEO Theresa Regnante espoused the benefits of being part of a group of decision makers. She shared the benefits she received while working with a group of executive directors who met regularly with a facilitator to solve problems.
There were four other methods discussed at the conference. You can read the rest in Stengle's article on Huffington Post Impact.
Friday, June 22, 2012
Advocacy: Five Ways To Highlight Your Mission
It's easy for nonprofit managers to lose focus of their mission with the day-to-day concerns of running an organization, but that doesn't mean it's alright for advocacy to be thrown aside.
The truth of the matter is that it is crucial that constituents, donors, and anybody else you meet are constantly aware of what your mission is. Thanks to things like social media (and the Internet in general), there are many different sources organizations can use you promote their cause.
So now that you have the means to get the word out, what's the best way to go about doing it? Dalya F. Massachi wrote in her book, "Writing to Make a Difference," that nonprofits shouldn't be afraid to repeatedly highlight their mission to an audience. She provided the following five tips to do just that:
The truth of the matter is that it is crucial that constituents, donors, and anybody else you meet are constantly aware of what your mission is. Thanks to things like social media (and the Internet in general), there are many different sources organizations can use you promote their cause.
So now that you have the means to get the word out, what's the best way to go about doing it? Dalya F. Massachi wrote in her book, "Writing to Make a Difference," that nonprofits shouldn't be afraid to repeatedly highlight their mission to an audience. She provided the following five tips to do just that:
- Highlight the outstanding strengths of your mission, not of the organization, of the mission. Continually remind people of what is innovative about your mission. Show that you play a special and essential role in your field.
- Describe how your work embodies your guiding principles. Back away from practical specifics and take a bit of a philosophical approach. Ask yourself what fundamental values or concerns lead your readers to your organization and its mission.
- Evoke a vision of what your community will be like once your organization has fulfilled its mission. Mission is not only about short-term results. It is also about your long-term vision.
- Connect the dots over time. Show donors how they create an ongoing story for accomplishing your mission.
- Use your mission and vision as overarching themes. Over time, organizations often develop programs, products and services that can be quite diverse. If this describes your organization, help readers keep track of how your mission and vision provide the unifying theme for your various projects.
Thursday, June 21, 2012
Why Us: Three Questions About Your Brand
A common question donors or potential funders usually ask when approached for money by a nonprofit is "Why should I give to you?" According to two fundraising experts, that question can be answered by asking questions about your brand.
At the Association of Fundraising Professionals' (AFP) 49th International Conference on Fundraising, Bobi Bellows of Bobi Bellows Consulting and Todd W. Ruopp of Unleashing Performance Inc., said that nonprofits shouldn't expect people to know what they do just by looking at their name. To build a case of support for the organization, leaders must come up with answers to these three main questions:
Why Us?
At the Association of Fundraising Professionals' (AFP) 49th International Conference on Fundraising, Bobi Bellows of Bobi Bellows Consulting and Todd W. Ruopp of Unleashing Performance Inc., said that nonprofits shouldn't expect people to know what they do just by looking at their name. To build a case of support for the organization, leaders must come up with answers to these three main questions:
Why Us?
- Are we really worth investing in?
- What is our special promise?
- What makes us unique?
- What opportunities are unfolding?
- What problem(s) do we solve.
- What miracle(s) do we deliver?
- What are we doing to change the world?
- What have we accomplished that someone other than staff and board would think worthwhile?
Why Now?
- What’s the hurry?
- Why can’t we wait?
- If funding were delayed, what bad things would happen and what opportunities would be lost?
Why the Donor?
- How will donors benefit emotionally?
- Why will this make them feel better?
- What do they hope for?
- How is heir fear or anger eased?
- How is something that they care about either healed, preserved or improved?
Wednesday, June 20, 2012
Executive Director Arrested For Alleged Embezzlement
The executive director at a Myrtle Beach, S.C. nonprofit was arrested on charges of embezzlement after a state investigation into whether the organization misused federal funds.
JoAnne Patterson, executive director of Citizens Against Spousal Abuse (CASA), was charged with embezzlement of public funds greater than $5,000 according to a report in The Sun News. Patterson denies the allegations, and CASA board chairwoman Sissy Rutherford told The Sun News that, while the $32,000 grant wasn't used for its expressed purpose (purchasing vans to transport victims), there was nothing criminal about the organization's actions. She explained that the money was used so they could pay employees and keep the organization running. Rutherford blamed the organization's problems on the financial downturn.
Former assistant director Alicia Rahiem disagreed with that assessment, saying that employees at CASA had been concerned for a while about how money was being spent. She accused board members of not paying enough attention. CASA eventually purchased the vans after officials began questioning, and Rahiem said she was told to lie about how long they had owned them when asked by investigators.
While the state investigation continues, many of CASA's largest contributors are withholding funding until the the matter is resolved. That includes the city of Myrtle Beach, which had given the organization between $40,000 and $50,000 per year since 2007. The City Council said in a statement that no more money would be given until new board members were elected. Most of the current board has already made plans to step aside to make room for a replacement organization that would fill the gap in services left by CASA.
To read the full story, head on over to The Sun News' website.
JoAnne Patterson, executive director of Citizens Against Spousal Abuse (CASA), was charged with embezzlement of public funds greater than $5,000 according to a report in The Sun News. Patterson denies the allegations, and CASA board chairwoman Sissy Rutherford told The Sun News that, while the $32,000 grant wasn't used for its expressed purpose (purchasing vans to transport victims), there was nothing criminal about the organization's actions. She explained that the money was used so they could pay employees and keep the organization running. Rutherford blamed the organization's problems on the financial downturn.
Former assistant director Alicia Rahiem disagreed with that assessment, saying that employees at CASA had been concerned for a while about how money was being spent. She accused board members of not paying enough attention. CASA eventually purchased the vans after officials began questioning, and Rahiem said she was told to lie about how long they had owned them when asked by investigators.
While the state investigation continues, many of CASA's largest contributors are withholding funding until the the matter is resolved. That includes the city of Myrtle Beach, which had given the organization between $40,000 and $50,000 per year since 2007. The City Council said in a statement that no more money would be given until new board members were elected. Most of the current board has already made plans to step aside to make room for a replacement organization that would fill the gap in services left by CASA.
To read the full story, head on over to The Sun News' website.
Bike Nonprofit To Oppose Potential NYPD Fees
The CEO of Bike New York, an organization that runs New York City's annual TD Boro Bike Tour, is expected to speak out against a proposed $930,000 fee by the New York Police Department (NYPD).
Kenneth Podziba is scheduled to make the announcement at a hearing on the issue today at 1 Police Plaza, NYPD's headquarters, according to a report in Crain's New York Business. He will make the case that the fee will have a negative impact on the nonprofit which, aside from the Bike Tour, provides free education programs to children and adults in parks and schools.
The fee is the result of a proposed amendment to a rule that the NYPD adopted last year. It would pay for police coverage of the Bike Tour and would also apply to other big events and parades. Podziba is expected to say that the fee, if approved, would put many of its programs at risk, including bike education for NYC's new bike share program.
You can read the full story in Crain's New York Business.
Kenneth Podziba is scheduled to make the announcement at a hearing on the issue today at 1 Police Plaza, NYPD's headquarters, according to a report in Crain's New York Business. He will make the case that the fee will have a negative impact on the nonprofit which, aside from the Bike Tour, provides free education programs to children and adults in parks and schools.
The fee is the result of a proposed amendment to a rule that the NYPD adopted last year. It would pay for police coverage of the Bike Tour and would also apply to other big events and parades. Podziba is expected to say that the fee, if approved, would put many of its programs at risk, including bike education for NYC's new bike share program.
You can read the full story in Crain's New York Business.
Tuesday, June 19, 2012
Nonprofits, Not Super PACs, Spent More In 2010 Election
So-called Super PACs (Political Action Committees) have received a lot of attention in today's politics. The 2010 Supreme Court decision, Citizens United v. Federal Election Commission, opened the door for these groups to splurge on political campaigns. But according to a new study, nonprofit groups actually spent more than Super PACs, at least during the 2010 elections.
An investigation released yesterday by the Center for Public Integrity and the Center for Responsive Politics showed that nonprofit groups spent $3 for every $2 spent by Super PACs, according to CBS News. These groups actually have a bit of an advantage over the PACs, as they are not required to release the names of their donors as outlined by section 501(c)(4) of the U.S. tax code.
In total, nonprofit "social welfare" organizations spent a total of $95 million during the 2010 midterm elections, compared to $65 million by Super PACs. Much of the spending by nonprofits came from conservative groups, outspending their liberal counterparts $78 million to $16 million. Given the results of that election, those numbers aren't too surprising.
Things are a little different so far in the 2012 election season. The report states that Super PACs are currently outspending nonprofits, though it noted there is a possibility that could change now that there are clearly defined candidates for both the presidency and Congress.
You can read the full story on CBS News' website.
An investigation released yesterday by the Center for Public Integrity and the Center for Responsive Politics showed that nonprofit groups spent $3 for every $2 spent by Super PACs, according to CBS News. These groups actually have a bit of an advantage over the PACs, as they are not required to release the names of their donors as outlined by section 501(c)(4) of the U.S. tax code.
In total, nonprofit "social welfare" organizations spent a total of $95 million during the 2010 midterm elections, compared to $65 million by Super PACs. Much of the spending by nonprofits came from conservative groups, outspending their liberal counterparts $78 million to $16 million. Given the results of that election, those numbers aren't too surprising.
Things are a little different so far in the 2012 election season. The report states that Super PACs are currently outspending nonprofits, though it noted there is a possibility that could change now that there are clearly defined candidates for both the presidency and Congress.
You can read the full story on CBS News' website.
Giving USA Numbers A Cause For Optimism
For more than 50 years Giving USA has given what amounts to an annual state of the nonprofit sector. With the uncertain economy we have been living through, the 2012 report was even more anticipated. It was with great relief, then, that giving numbers were found to be pretty healthy last year.
The NonProfit Times analyzed the numbers in this year's report in an exclusive piece online. According to the piece, giving in the U.S. reached an estimated $298.42 billion in 2011, an increase of around 4 percent from 2010 (when giving was estimated at around $290 billion). Individual giving represented the biggest contributions, at 73 percent or $217.79 billion?
The smallest contributors? Corporations. Corporate giving represented just 5 percent of total giving in the country, or $14.55 billion. This shouldn't come as too big of a surprise, as a report by the Council on Foundations last month showed that corporate philanthropy had fallen among large companies like Starbucks, Dove, and Cisco.
Of the different sub-sectors of giving, human services and religious giving came out on top. In fact, religiong retained its spot from last year as the largest recipient of giving, at 32 percent or $95.88 billion. Yet, interestingly enough, that number was actually a decline of 1.7 percent when measured in current dollars.
“Viewed another way, giving to religion, along with membership in
certain mainline Protestant denominations, is declining, while the
American population grows, on average, 1.0 percent every year,” said
Thomas W. Mesaros, CFRE, Chair, The Giving Institute and president and
CEO, The Alford Group.
Here is the complete breakdown of giving to each sector:
- Religion, $95.88 billion or 32 percent;
- Education, $38.87 billion or 13 percent;
- Human Services, $35.39 billion or 12 percent;
- Foundations, $25.83 billion or 9 percent;
- Health, $24.75 billion or 8 percent;
- International Affairs, $22.68 billion or 8 percent;
- Public-Benefit Society, $21.37 billion or 7 percent;
- Arts, Culture and Humanities, $13.12 billion or 4 percent;
- Environment/animals, $7.81 billion or 3 percent;
- Individuals, $3.75 billion or 1 percent;
- Unallocated giving was $8.97 billion or 3 percent.
Want to read more about the Giving USA numbers for 2012? Head on over to our website for more analysis, and be sure to keep an eye out for our July 1 issue for even more details on this important report.
Monday, June 18, 2012
The Spring 2012 Edition Of Exempt Magazine
Every quarter, we release a new issue of the sister publication of The NonProfit Times. It's called Exempt Magazine and it focuses on nonprofit finance issues. Now that we are about to enter into summer, we have released the Spring 2012 edition of Exempt.Here are the articles you will find in this new issue:
Articles:
- Bankrupt But Endowed: Nonprofits rarely file for bankruptcy, but there are some exceptions. Read about some of these in this piece by our staff writer, Patrick Sullivan.
- 10 Things To Ask Your Banker Right Now: There are lots of banks with cash. You shouldn’t just walk into any old savings and loan. Find out the tops things you should ask your banks from contributing editor Michele Donohue.
- Telecommuting Employees: Jeff Tenenbaum, chair of the Nonprofit Organizations Practice Group at Venable LLP, writes about the pros and cons of telecommuting to your place of employment.
Column:
- Inspiration Zone: Melanie Lockwood Herman of the Nonprofit Risk Management Center writes about the keys to promoting a risk-aware culture at your nonprofit.
Head on over to our website to view all of the articles in the Spring 2012 edition of Exempt.
$6.1 Million Damage Awarded In Defamation Case
A Texas District Court judge
ruled that a former intern defamed a bat sanctuary nonprofit and its president,
and awarded the organization $6.1 million in damages.
After a four-day trial, Judge
William Brigham found that Mary Cummins had committed defamation against Bat
World Sanctuary president Amanda Lollar and breached her internship contract
with the organization. She was ordered to pay $3.0 million in punitive damages,
$10,000 for her breach of contract, and $176,000 in attorney’s fees.
Cummins was accepted for an
internship at the Mineral Wells, Texas, organization in 2010, but left early
after becoming dissatisfied with the program. Lollar and her attorneys then
claim she went back to her home in California posted allegations of animal
cruelty against her and the organization on the Internet.
“This judgment sends a
powerful message to cyber-stalkers and others who use the Internet to harass
people or to harm their reputations,” said Randy Turner, Lollar’s attorney.
“Innocent victims like Amanda Lollar often don’t have the resources, expertise,
or ability to defend themselves against such vicious Internet attacks.
Hopefully this judgment will make someone think twice before engaging in an
Internet smear campaign.”
Among many allegations,
Cummins accused Lollar of performing surgeries on bats without anesthesia,
possessing and distributing controlled substances without a license, and
throwing dead bats in the trash. Along with posting these complaints on the
Internet, she also filed numerous complaints with animal cruelty organizations,
including a foundation that had been funding Bat World Sanctuary but stopped
doing so after receiving the complaints. Every agency that Cummins filed
complaints with eventually found them to be without merit after further
investigation.
“I would like to thank
everyone who stood by us during this ordeal and never, ever lost faith in us,”
Lollar said via a statement. “Mr. Turner and his paralegal, Kelly Bozeman,
worked tirelessly for us and we couldn’t have won without them. I will be
forever grateful.”
Cummins is the president of
Animal Advocates, a nonprofit based in Los Angeles, Calif. that works to
prevent cruelty to animals. She plans to appeal the ruling, claiming a conflict
of interest.
“On one
hand I'm shocked because Plaintiffs did not show the essential elements for a
claim of defamation or breach of contract. On the other hand I'm not really
that shocked. Before one hearing Plaintiffs' attorney Randy Turner of Bailey
& Galyen told me that he's known this Judge for years. He insinuated that
the Judge will automatically rule in his favor, and it appears that he has. I
believe there was a conflict of interest and a new trial by a new Judge is in
order.”
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