Featured Nonprofit Job: CEO/Head Of School

The Creative Learning Academy of Pensacola (CLA) is looking to hire a CEO/Head of School. Interested? Read on for more details.

Beginning with the 2013-2014 school year, this individual will be in charge of all aspects of the Schoool. Candidates must have a history of significant business leadership and a proven track record of growth.  Experience at an accredited independent school preferred, but not required.

Other requirements include:

• Exceptional communication skills, clear vision and strong management/leadership skills;
• the ability to further the organization’s mission while developing the human resources necessary to achieve maximum potential;
• Technologically proficient, with a broad knowledge of best business practices; and,
• Must be an active, visible part of the community as well as the school, inspiring students and teachers alike in a hands-on way.

You can find out more information by visiting our career center.

Prosecutors: Ex-Mayor Stole Millions From Husband's Foundation

The former mayor of San Diego is accused of stealing millions from her late husband's foundation to feed her gambling addiction, according to a report in The New York Times.

Maureen O'Connor spent the last 10 years betting more than a billion dollars at casinos across the U.S., liquidating her savings, auctioning her belongings, and selling off her real estate in order to continue her wagers. Prosecutors also say she stole $2,088,000 from her husband's foundation, leaving it bankrupt. The name of the foundation was not listed in the report.

O'Connor appeared in court Thursday to answer the charges against her, and tearfully admitted to them. She blamed an addiction to gambling aggravated by a brain tumor for her decisions, and told reporters that she didn't mean to harm the city.

"Those of you who know me here would know that I never meant to hurt the city that I love," she said. “I always intended to pay [the money] back and I still intend to pay it back,” she said.

While the money she stole did not come from the city, the money taken from the trust of her husband, Robert O. Pearson, founder of the Jack-in-the-Box burger chain, most likely would have gone to local charities.

Documents filed in court by her lawyers state that after Pearson died in 1994, O'Connor turned to gambling to deal with the loss. “She began to seek an outlet in gambling,” her lawyers wrote. “The pattern fits the syndrome known as grief gambling.”

While she made over a billion dollars through bets at casinos in Las Vegas, Atlantic City, and San Diego, she still lost over $13 million.

Under an agreement made with federal prosecutors, O'Connor will get treatment for gambling addiction and has two years to pay back the foundation and taxes owed to the government.

You can read the full story in The New York Times.

8 Negatives Of Annual Galas

There aren't many nonprofits that don't hold annual galas, and there aren't many nonprofit employees that actually enjoy preparing for them.

As was suggested in one of our recent LinkedIn discussion questions, some employees feel an obligation to attend their organization's annual gala even if it's not exactly the way they want to spend their evening. While they are a time-honored method of increasing awareness and raising money, some would argue they aren't really worth all the hoopla.

One person who holds that view is Steve Klingman, who wrote in his book "Fundraising Strategies for Community Colleges" that nonprofits should consider scrapping the gala altogether and replacing it with an annual fund campaign. While he acknowledges the positives of galas -- fundraising, showing the flag, cultivation, recognition, volunteer involvement and people having a good time -- he maintains those good aspects are overwhelmed by negatives:

• A gala event has a low yield as a fundraising vehicle.
•  A gala saps annual fund dollars. Rarely do event-driven programs coexist with robust annual fund dollars.
• A gala pre-empts other fundraising efforts for a significant portion of the year.
• When staff time is added in, net revenue is too low.
• A gala focuses donor attention on the event rather than the mission.
• A gala distracts volunteers from more beneficial involvement. Using them to make annual fund calls is much better use of their time.
• Donors quickly forget a gala.
• A gala is expensive to produce. The cost of such items as dinner, facility and balloons can easily eat up 50 percent of each ticket.

Georgia Bill To Allow Nonprofit Food Distribution

The Georgia House of Representatives unanimously passed a law today that would allow nonprofits to sell food for short-term fundraising events without a permit. The bill will now move onto the state Senate for consideration.

ABC affiliate WTXL reported that the measure, House Bill 101, was first introduced by Rep. Bubber Epps (R-Dry Branch) and sponsored by Reps. Tom McCall (R-Elberton), Rick Jasperse (R-Jasper), Susan Holmes (R-Monticello), Buddy Harden (R-Cordele), and Robert Dickey III (R-Musella). If the bill is passed by the Senate and signed by Gov. Nathan Deal, it would remove a key obstacle for nonprofits looking to hold fundraisers in Georgia.

“Churches and other nonprofit organizations throughout the state are trying to hold bake sales and other similar fundraisers, but are getting caught in a state permit requirement that is meant for restaurants,” said Epps in a statement. “This legislation will make it easier for non-profit organizations to hold weekend fundraisers without having to deal with the hassle of obtaining a food service permit.”

Current Georgia law requires institutions classified as "food service establishments" to have a food service permit. The definition of such establishment encompasses restaurants, coffee shops, and other private and public institutions. While fairs and festivals are exempt from the law, similar short-term events are not, which have made it difficult for nonprofits conducting weekend fundraisers.

House Bill 101 would amend that law so that any event sponsored by a nonprofit or government entity would be exempt from that requirement, so long as the event lasts 120 hours or less.

You can read the full story on WTXL's website.

Question Time For Nonprofits

You've probably been told at least once in your lifetime that the only stupid question is the one that is not asked. That might be true, but there are times when asking a questions is more appropriate than others.

As Andrew Sobel and Jerold Panas wrote in their book, "Power Questions," asking questions is important. But, just as important is knowing when to ask the right question. The two authors used the question "How will this further your nonprofit's mission and goals?" as an example of this theory. While the question is very relevant to organizations, Sobel and Panas stated that it is of most use when asked at specific times.

They suggested asking it when:

• When you see someone doing things that are inconsistent with the core mission;
• When someone is making a decision to invest significant time and resources in a new direction; and,
• When you suspect the other person has not thought through what the mission and goals really are.

Sobel and Panas also suggested variations of the same question, such as:

• Can you remind me of your mission and goals?
• Is this consistent with your values and beliefs?

Finally, there are some follow-up questions:

• Why/Why not?
• Are there other ideas or initiatives you’re considering that would also support your mission -- which also merit consideration?

Moving Donors From Annual To Planned Gifts

Originally Posted On The NonProfit Times


Planned giving programs can be big-time fundraising mechanisms, but starting such a campaign can be a daunting task for any nonprofit organization.

Speaking during an international conference on fundraising, Judi Smith of Funding Services Now and Dianne S. Johnson of Endowment Builders offered advice on building a planned giving campaign from something that already exists as a proven fundraiser for many nonprofits – the annual fund.

Smith and Johnson said that a planned giving campaign needs to start with the board. If not the chair, then a key member needs to “own” planned giving. Further, the board needs to be the first group of people to document their own planned gifts.

They suggested ranking the likelihood of planned giving prospects:

• People who support the mission.
• Regular donors of small gifts.
• Donors of major gifts.
• Older donors.
• Volunteers.

They also said to consider the following ideas when trying to build a planned giving program from an annual fund:

• Start with an Endowment or Planned Giving committee (with each member to make their own planned gift).
• Target an event to include planned giving prospects.
• Review the database for a mailing program to a planned giving prospect group.
• Mail to existing members to reconfirm gifts and survey them.
• Look at offering charitable gift annuities.

The Problem With Personal Devices

The proliferation of easily portable communication devices has changed the working landscape dramatically, but not all changes have been for the good.

Speaking during the 2012 Risk Management and Finance Summit for Nonprofits, Cecil Lynn of Littler, Phoenix outlined some of the problems employers have encountered by providing employees with personal devices at work or allowing employees to use their own devices on company business. This practice is referred to as Bring Your Own Device (BYOD).

Lynn said that although cost saving is the major motivation for BYOD, some employers have found that it has increased their costs rather than lowering them. There are also problems with employment law and organizational security.

He offered the following recommendations for BYOD that can help avoid problems or lessen their consequences:

• Decide whether all employees should be permitted to participate in a BYOD program or whether certain groups should be excluded;
• Install mobile device management software on dual-use devices;
• Require employees to consent to the company’s access to their data on the device;
• Modify or create employee agreements;
• Restrict employees from using cloud-based apps or cloud-based backup or synchronizing with home PCs for work-related data;
• Ensure that use complies with wage-and-hour obligations by prohibiting off-the-clock work and ensuring pay for all hours worked;
• No use by friends or family members;
• Training; and,
• Revise exit interview processes.

The Benefits Of Limiting Choice

The concept of “choice” might seem like an odd one in the nonprofit sector, especially when it refers to consumers rather than prospective donors. After all, many nonprofits are established to help people who have little in the way of choice.

In the updated edition of his book “Managing a Nonprofit Organization” Thomas Wolf discusses choice, especially as it pertains to marketing and branding. Choice is not just about donors, but also about constituents and name recognition.

In an age when people have an unprecedented array of customized choices they can make with the flick of an index finger, nonprofits must be aware of personalized consumer demands. On the other hand, Wolf warned, research shows consumers opting out altogether when offered too many choices. He offers these considerations about choices:

• In most cases, the greater the opportunity for consumers to choose the features of what they purchase, the better they will like it. For example, symphony organizers have learned that despite numerous subscription offerings, a “select your own” series is often most popular;
• Despite the desire to customize, it is important to limit offerings to a small number so that consumers will not be overwhelmed and thus discouraged from acting; and,
• Consumers often flock to “experts” and becoming familiar with them and gaining entry to their preferred lists can be extremely beneficial.

12 Reasons For A Board Retreat

Board members don't usually react with excitement over the idea of a retreat; they tend to retreat from those plans as quick as they can. While they may not be thrilled about the idea of a board retreat, these trips often have tangible benefits and are worth pursuing.

Dennis Miller, founder of Miller & Associates in Denville, N.J., an expert on nonprofit board governance, leadership development and strategic planning, and frequent contributor to The NonProfit Times,  maintained that retreats are an excellent opportunity to envision the future, establish new goals and develop desired standards of performance.

This is all in practice, of course, and preparation is key to ensuring retreats have their desired effect. Specifically, that means managers should:

• Solicit input from as many key internal and external stakeholders as possible.
• In conjunction with the CEO, board chair and/or retreat committee, develop an agenda with two to three specific goals.
• Consider requiring "homework" to be completed before the retreat.
• Set approximate timelines for each topic to be covered and stick with them as often as possible.
• Involve as many members from the senior executive team as practical.
• Make sure everyone is called on to participate.
• Select a comfortable place, preferably away from the site where the daily workings of the organization take place.
• Allow ample breaks between key topics.
• Build consensus on all key issues discussed and create key action steps.
• Consider engaging an experienced facilitator or consultant.
• Provide a retreat summary for all participants on key issues discussed, what consensus was developed and required action steps.
• Perform a retreat customer satisfaction survey prior to leaving the room.

5 Ethical Decision-Making Steps

While a host of news stories about nonprofit executives making poor ethical decisions should not diminish all the good many organizations do, the reality is that the public perceptions is that nonprofit malfeasance has taken center stage in the past decade.

Ethical decision-making should play a central role in every challenge an executive faces, according to Barbara R. Levy, Yulanda N. Davis-Quarrie and Art Taylor during the Association of Fundraising Professionals (AFP) 49th International Conference on Fundraising.

Representing the AFP International Ethics Committee, the speakers noted that poor ethics will result in a drop in fundraising, as donors begin to lose trust in the organization. They offered five steps in ethical decision-making, also referred to as five questions to ask when trying to determine a more ethical path. The steps are:

• What are the critical factors of the situation? Take time to review the problem from all sides. Write down the critical facts. Review them.
• What are the key, perhaps competing, values and ethics at stake? Is this an issue of honesty, respect, justice, accountability or fairness, or all of these?
• Who are the players and stakeholders in the decision? Does it involve donors, clients, staff, the community, volunteers, oneself or even philanthropy?
• What are the driving forces in the situation? Where is the pressure originating? Are the sources of pressure reliable?
• What is the worst-case scenario and the effects on all the players who are stakeholders? Who is the most vulnerable, the most resilient?

Nonprofit Arguments On LinkedIn

UPDATE 2/4: Our first discussion topic is now available. The topic is whether nonprofits should get postal discounts when the USPS is bleeding money.

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LinkedIn is one of the more popular tools for job seekers today, as it allows them to connect with individuals who can help them land a job. Did you know it's also a great place for provocative discussions?

There are literally thousands of groups on LinkedIn on a variety of topics, including the nonprofit sector. The NonProfit Times has such a group, and we want to invite our readers to join our group to participate in some discussions regarding topics in the sector. In the next few weeks or so, we will be posting some of these questions and we want you to be a part of it.

Head over to our LinkedIn page now and join before the fun starts.

The Feb. 1 Issue Of The NonProfit Times

It's a little hard to believe that we are already in the second month of 2013, but that's exactly where we are. The new month also means the arrival of a new issue of The NonProfit Times. What topics are covered in this edition? Let's take a look.

Special Report

• 2013 NPT Salary and Benefits Survey: Most of our readers have already read our 2012 Salary and Benefits Reports by now, but this special report takes a first look at how things are going in the new year so far. The takeaway? Salary freezes are beginning to end, but turnovers are increasing.

Articles

• Concerts Not Necessarily Music To Fundraisers' Ears: The recent 12.12.12 Concert for Sandy Relief made headlines for the money raised, but fundraising concerts haven't always been as successful. We take a look back at some previous shows, including the legendary Concert for Bangladesh.
• Facebook Giving Platform Being Tested With Users: The popular social networking site rolled out a new giving platform recently. Will it revolutionize the way individuals donate to their favorite causes?
• New CGAs Target A Different Level Of Donors: Some of the nation’s largest nonprofits are reporting fewer charitable gift annuities (CGA) in recent years amid historically low interest rates, but the CGAs they do receive are larger than in the past.

Columns

• No More Laurels: There's no question Lance Armstrong lied all these years, but should his faults really negate the work of the foundation he founded? Our editor-in-chief, Paul Clolery, examines the case.
• Magic Hamper Executives: Most nonprofits don’t have Magic Hampers. But, Magic Hamper syndrome can still afflict them. The most important and generic distinction in management is that between executives and managers and their differing time frames. Managers’ typical orientation to time is measured in weeks or perhaps months.

This is only a taste of the articles in the Feb.1 issue. If you want access to the full edition -- in print or digital form -- head to our subscription page.

Ex-NY Politician Pleads Guilty In Nonprofit Theft Case

A former New York State Senator pleaded guilty Wednesday to charges that she stole nearly $88,000 from a nonprofit program that uses tax-payer money.

According to a report in The Wall Street Journal, Shirley Huntley (D-Queens) admitted to the court that she wrote $24,500 in checks from the bank account of an education nonprofit she helped start, The Parents Workshop. She said the money was used to buy gifts for her family members, as well as to pay her personal credit card bills.

The embezzling scheme started during her time in the State Senate, which began in 2007 and ended last year when she lost a re-election bid.

U.S. Attorney Loretta Lynch said in a statement that Huntley "used her knowledge of the system to steal funds intended to help some of her neediest constituents, lining her own pockets at the expense of parents, and ultimately their children."

She faces up to five years in prison, though no sentencing date was set as of this writing.

You can read the full story in The Wall Street Journal.

6 Ways To Build Your Social Media Audience

Social media has hung around long enough to no longer qualify as the "flavor of the month;" it now qualifies at the "flavor of the last few years and the foreseeable future." Yes, every business and nonprofit want to utilize a social media strategy these days, but there is a catch.

Sites like Facebook or LinkedIn can only be effective for your organization if you have an active audience. The good news is, attracting a few followers can often increase your potential audience exponentially as your friends spread the word to their own networks of friends, etc.

So how do you attract people to “like” your Facebook page, or follow your Twitter feed? Try these tips:

• If you post it, they will come. If you’re launching a new blog or Twitter account, start by posting a few interesting things to show the audience what you hope to gain and that your resources might interest them.
• How do you know what will interest the type of people you’d like to follow you? Ask them. Find a good representative sample of your desired audience and start a discussion with them about what kinds of posts they’d like to read.
• Even with brilliant content, it’s difficult to attract supporters to a site that no one else is following. Ask your staff and other core supporters to follow your tweets, or “like” your Facebook page. Getting them to post comments or reply to your posts can help show an active community.
• Add your social media profile information anywhere your contact information is given. A Facebook or Twitter logo on your website can link people directly to your pages.
• People who already know you are more likely to join your social media communities than strangers, and you can reach people who already support your organization through email, print newsletters and other social media channels.
• Social media is meant to be social. Participating honestly in the online conversation about topics of interest to your organization will build an audience more successfully than any other tip or trick. Post relevant comments that add to the conversation, tweet and retweet the resources other people offer, and watch your follower count grow.

Troubled D.C. Nonprofit To Release Audit

A Washington, D.C.-based nonprofit that had hundreds of thousands of dollars stolen by a former D.C. councilman will release an audit of its finances.

Keva Sturdevent, development director of the DC Children and Youth Investment Trust Corp., told The Washington Examiner that the organization will release its fiscal year 2010 audit in the next 30 days. Former Councilman Harry Thomas Jr., pleaded guilty last year to stealing $353,000 from the organization in 2010, as well as other charges of tax fraud. He was accused of transferring the money to his bank account for personal use and was sentenced to three years in prison.

"There is no excuse," Thomas said during his sentencing. "What I did was wrong." He went on to explain that he stole the money because he had a sense of "entitlement."

The D.C. Council has long pushed for the release of the 2010 audit, arguing that it could provide valuable insight into Thomas' activities. DC Children and Youth Investment Trust receives the majority of its funding from the District government.

 "We have an unaudited organization that has millions upon millions [of] dollars of D.C. funds," said Councilman Jim Graham, who oversees the organization as chairman of the council's Human Services Committee, on Monday. "The audit is going to tell the story."

Graham was one of the leading voices to get the trust to release its 2010 audit. He had previously asked Council Chairman Phil Mendelson to appoint him as a non-voting member of the nonprofit, and he was subsequently nominated for that position earlier this month.

Robert Bobb, the trust's chairman, criticized that decision in a letter to the council, insisting that his organization could only "prevent repeating the problems of the past by erecting a barrier between the Trust and elected officials."

Graham eventually removed his name from consideration.

The trust says it plans to conduct audits of 2011 and 2012 as well, but has not yet announced when those would be released. The organization's new executive director, Ed Davies, admitted to The Examiner that the trust isn't as independent from politics as it should be, and de-politicizing remains his top priority.

You can read the full story in The Washington Examiner.

Armstrong Dropped By Another Charity

The hits keep coming for Lance Armstrong, as the now-disgraced bicyclist has had his picture dropped from a charity he co-founded in 2007.

The Bethesda, Md.-based Athletes for Hope, which Armstrong co-founded in 2007 with tennis legend Andre Agassi and women's soccer star Mia Hamm, removed his picture from their website after he confessed to using steroids in an interview with Oprah Winfrey. The organization's mission is to encourage professional and Olympic athletes to connect with existing charities rather than founding their own foundations.

The story was first reported in The Wall Street Journal.

The nonprofit's chief executive officer, Ivan Blumberg, told The Journal that the decision was "mutual" and was decided immediately after the airing of Armstrong's interview with Winfrey. While his picture is no longer on the website, his name still is listed as a co-founder.

The charity also lost two other celebrity partners in the past few months: Women's tennis player Andrea Jaeger and baseball hall-of-famer Cal Ripken Jr. Jaeger made the decision to cut ties with the organization after Armstrong was first accused of doping by the United States Anti-Doping Agency (USADA) in August. Jaeger, whose Little Star Foundation aids children with cancer and other deadly diseases, said she could no longer be a part of the organization because its direction was different from the values that were important to her, presumably referring to its ties with Armstrong. Ripken left after Armstrong's interview with Oprah.

Other celebrities that remain with the nonprofit include former NBA player Alonzo Mourning, boxing legend Muhammad Ali, and skateboarding star Tony Hawk.

Athletes for Hope has also encountered funding problems in recent years, according to tax filings. A multi-year grant from the W.K. Kellogg Foundation totaling $2 million expired early last year. Blumberg also told The Journal that his salary, which was at a base of $250,000 with total compensation of $325,000 in 2011, will be reduced to $150,000. He said the lack of funding can be attributed to a weak economy.

Armstrong has had a difficult time since USADA first filed its charges against him. The foundation he created to promote cancer research officially changed its name to the Livestrong Foundation in November, and he eventually stepped down from the organization. He was also dropped by corporate sponsors Nike and Anheuser-Bush in October, the month USADA announced its decision to ban Armstrong from cycling for life.

You can read the full story in The Wall Street Journal.

Nonprofits Hurt By New Postal Rules

This is an article that appears in the newest edition of our NPT Weekly eNewsleter. For more stories like this, subscribe to it for free on our website.

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Six of the United States Postal Service’s (USPS) new workshare discount rates, that took effect yesterday, are shallower for nonprofit mailers than for commercial mailers, and unfairly discriminate against nonprofits, contends the Association of Nonprofit Mailers (ANM), based in Washington, D.C.

Three of the new discounts -- high density letters, high density flats, and automated 5-digit flats -- are higher than the old rates, two categories (high density plus letters and high density plus flats) are new and the discount for non-automated 3-digit flats is slightly lower than the old rate. But the key issue is the discrepancy between the nonprofit and commercial rates.

According to ANM Executive Director Tony Conway, worksharing discounts are provided when mail is prepared in certain ways, such as presorting it by ZIP code, effectively taking some of the burden of sorting and transporting off the United States Postal Service (USPS). The goal is to create incentives to drive the most efficient mailing behavior.

The difference is less than 4 percent or $0.003 per piece for four of the categories (high density letters, high density plus letters, high density flats and high density plus flats), with auto 5-digit flats being 8 percent or $0.007 per piece and a 13.5 percent difference, or $0.007 per piece, for non-automated 3-digit flats.

“We saw that for certain types, nonprofits are receiving a lesser discount than commercial counterparts,” said Conway. “We called the Postal Service on that, raised the issue with the Postal Regulatory Commission (PRC) and filed comments (in November) saying the discrepancies are not allowed by law.”

Section 403(c) of U.S. Code Title 39 prohibits discrimination among mail users when it establishes fees unless it has a reasonable justification. The USPS claims it cannot equalize the nonprofit and commercial rates “without setting the nonprofit base rate higher than would be most efficient and preferable from a policy perspective,” according to PRS Docket No. R2013-1. Conway said the USPS’s argument boils down to setting rates being a complicated process for everything to work perfectly all the time. That argument does not hold water, said Conway.

“So the PRC, unfortunately, instead of pushing back on the postal service, chose not to do that and told the postal service they could implement the new rates,” said Conway. “From a nonprofit standpoint, they’re doing the same things commercial mailers are doing, and to be provided a lesser discount, that’s just blatant discrimination for no good reason.”

Diana Aviv, president and CEO of Independent Sector in Washington, D.C., said, “Independent Sector has long worked to ensure that nonprofit organizations receive equitable treatment under the law relative to their counterparts in the for-profit sector. The proposed worksharing discount is another example of the disparate treatment of nonprofit organizations that should be rejected.” Independent Sector was a signatory along with eight other organizations on a letter of protest that was sent to Rep. Darrell Issa (R-Calif.), chairman of the Committee on Oversight and Government Reform. Issa has previously helped to block legislation that would eliminate the nonprofit rates.

Conway said his organization is prepared to fight the new rates in court, but he hopes that will not be necessary. When the PRC produces its annual compliance determination report in the first quarter of 2013, Conway said he believes it will recognize and correct the oversight. “It appears it was just sloppy work by the postal service in designing new rates and inattention to the argument we raised,” he said.

That is in contrast to two other cases where Conway said the USPS deliberately kept the nonprofit sector out of worksharing discounts. The first time was 1980, when worksharing discounts were established. The USPS said the discounts were only available to the commercial sector. The organization Easter Seals took the USPS to court and won, and from that case ANM was born. In 1996, the USPS again tried to discriminate against nonprofits, said Conway. This time, ANM was the plaintiff and won the case.

If the PRC continues to accept the USPS’s explanation for why some discounts are lower for nonprofits, Conway said ANM will again go to court. “We hope to get it straightened out through the regulatory process, but we’re geared up to go to court and I’m confident we will prevail,” he said.

If the new workshare discounts are allowed to stand, said Conway, that would “drive more inefficiency and send the wrong signals.” It’s not so much a question of revenue foregone, he said, as it is not allowing discrimination against the sector. “We’re not talking about monstrous overpayment, but it’s the principle,” said Conway. “To not (correct the mistake), be called on it and just blow it off is wrong,” he said.

5 Tips For Communicating With The Media

People love to hate the media. Whether it's one of the countless athletes who criticize the press after being "taken out of context," or a politician blasting the "mainstream media" to score political points, journalists are hardly the most popular people in the room.

Yes, you may not want to talk to a reporter, but the media still remains one of the most effective ways of getting your message to the public.

This is especially true for nonprofits that are trying to spread the word about a project or an upcoming special event. In the book “Five Good Ideas,” Carol Goar acknowledged that the media can do a poor job of covering the sector, but that doesn't mean it’s all on them. Goar listed five things nonprofit employees should remember when talking to the media to ensure there are no slip-ups:

• Before you make a phone call or send an email to a member of the press, ask yourself: Why does my message matter to the public?
• Don’t confuse journalists with publicity agents. If your objective is just to sell tickets to one of your events or promote your brand, you aren't going to get a very favorable story.
• Get to know who in the local or national media covers the nonprofit sector. Read the publication or listen to the broadcast you intend to approach.
• When telling your story to the media, talk about the difference you’re making in people’s lives, not about who you are or how your organization functions.
• Remember that reporters ask probing questions, they delve into areas that you might not want to talk about, and they don’t follow anybody’s script.

Moody's: Outlook Not Good For Nonprofit Hospitals

Originally Posted on The NonProfit Times

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Moody's Investor's Service announced Tuesday that the outlook for nonprofit hospitals in 2013 continues to be negative, despite revenue growth remaining positive.

The negative outlook means it will be harder for these organizations to access the capital market.

Moody's, the bond credit rating business of New York City-based Moody's Corporation, declared that a variety of outside pressures continue to restrict growth of hospitals, including federal cuts to medical spending and limited reimbursement increases from insurers. All of these factors lead the credit agency to continue its negative assessment of the industry.

"Our sector outlook has been negative since 2008, reflecting the lasting impact of the recession on patient volumes, significant challenges facing the industry resulting from changes in how hospitals are paid, and heightened pressure from businesses and all levels of government to lower the cost of healthcare services," said Daniel Steingart, a Moody's Assistant Vice President -- Analyst and lead author of the report entitled "US Not-for-Profit Healthcare Outlook Remains Negative for 2013."

The report also explained that the nonprofit hospital industry is already facing more than $300 billion in reductions to Medicare payments through 2019 as part of the Affordable Care Act. While the recent fiscal cliff deal did not include any major spending cuts to healthcare, the upcoming budget negotiations in Washington are likely to focus on those, as both Congress and the White House believe something needs to be done to address the rising costs of healthcare.

While the overall outlook is negative, the report indicates it could have been worse if not for some positive developments. The most notable of these has been the fact that hospital performance, including revenue growth, has remained optimal.

"Operating margins and leverage metrics have not deteriorated in recent years, despite negative headwinds, because management teams have successfully managed expenses in light of weak patient volumes and less robust revenue growth," said Steingart.

Moody's noted that their outlook expresses the expectation for credit conditions over the next 12 to 18 months. You can read the full report on their website.

Nonprofit CEO Faces Fraud Charges

The CEO of a nonprofit that aids disadvantaged youth and families in Cincinnati, OH, was indicted by a federal grand jury today on charges of tax and mortgage loan fraud.

Regina Shields, who is the head of Free Truth Enterprises (FTE), faces, among other charges, four counts of filing false claims for federal income tax refunds, and one count of wire fraud, according to a report in The Business Courier. She is currently free having been released on bond.

According to court documents, Shields allegedly filed federal income tax returns claiming that she received significant W-2 wages and witholdings from FTE. As a result of those deductions, Shields was paid $61,315 in salary from 2007-2010. The indictment goes on to allege that FTE did not have significant receipts or engage in charitable activity.

Shields also faces charges regarding an alleged mortgage fraud scheme involving a property at the address 2985 Timbercrest Drive. The indictment states that she allegedly wrote a $164,000 check through the name Property Negotiation Group for the property during a sheriff's sale. That check was subsequently returned after the bank account it belonged to was revealed to have insufficient funds.

You can read the full story in The Business Courier.