Sandy Relief Group Sued For Fraud

The founders of a Hurricane Sandy relief group have been sued by the state of New Jersey for allegedly diverting funds for personal use, while victims of the storm supposedly received little money.

John Sandberg and Christina Terracino founded the Hurricane Sandy Relief Foundation (HSRF) in the aftermath of the deadly super storm to help those affected by it. On Thursday, the state Attorney General's Office and the New Jersey Department of Consumer Affairs (DCA) filed a lawsuit against the two founders and the Foundation. According to a report in The Asbury Park Press, the suit cites numerous violations of NJ's charity code, including allegedly diverting $17,000 in donated funds to, among other things, pay credit card bills and shop online.

“This organization told the state it does not pay its executives, but our investigators found a paper trail reflecting thousands of dollars being transferred into the individual defendants’ personal bank accounts,” said Attorney General Jeffrey S. Chiesa in a prepared statement. “Meanwhile, less than one percent [$1,650] of the money raised, has allegedly been paid out to help the victims of Sandy.”

According to the Foundation's website, almost $631,000 in cash donations were raised. The state's complaint alleges that nearly $39,000 of that money remains missing.

Other accusations against Sandberg and Terracino include, allegedly:

• Misleading donors by falsely claiming the Foundation is a tax-exempt 501(c)(3) charity; and,
• Co-opting the name of the Hurricane Sandy New Jersey Relief Fund, which was founded by NJ First Lady Mary Pat Christie.

You can read the full story in The Asbury Park Press.

D.C. Nonprofit Declines To Say How It Spent Money

An embattled D.C. nonprofit reported receiving $25 million in a recently filed Internal Revenue Service (IRS) report, but decline to say how it spent all of that money.

The D.C. Children & Youth Investment Corp., which was involved in a theft scandal which sent former councilman Harry Thomas Jr., to prison, also did not identify any grantees in its annual tax filing with the IRS, according to a report in The Washington Times. While the Trust did report $25.7 million in funding for the period spanning Oct. 2010 to Sept. 2011, sections of the report for expenditures -- including compensation -- were left blank.

The Trust's senior director of finance, Earl Thomas, told The Times that the organization plans to file an amended report with the IRS as soon as outside auditors finish reviewing two years finances. In a Jan. 29 post on this blog, it was reported that those audits would be released in 30 days.

The nonprofit has been trying to get back on track after the bad publicity from the Thomas Jr., situation. The former D.C. councilman was sentenced to three years in federal prison after pleading guilty to using grant money meant for local children for personal uses, including trips, clothes, a new car, and shoes.

The Trust reported a deficit of almost $3 million last year and, without the completed audits and the incomplete IRS filing, it is unclear whether its finances have improved or worsened.

You can read the full story in The Washington Times.

New Foundation To Oversee Newtown Fund

A new foundation has been formed to oversee the more than $9 million that has been donated to the Newtown Fund since the shootings took place Dec. 14.

Soon after the tragic shootings at Sandy Hook Elementary School in Newtown, Conn., the United Way of Western Connecticut and Newtown Savings Banks set up a fund for donations. The organization, however, did not want to oversee the money, so a transition team was formed to create a foundation that would distribute the funds for charitable purposes.

According to The Hartford Courant, the organization, known as the Newtown-Sandy Hook Community Foundation Inc., took two months to create. During that period, members of the team drafted bylaws for the foundation. The transition team officially transferred authority to the foundation, which has former U.S. Sen. Joseph Lieberman as an unpaid advisor. Lieberman met with families of victims on Wednesday to explain how the organization will operate, and to solicit suggestions.

While the foundation is open for business, it is not yet ready to begin distributing money. The board will first consider requests and suggestions that will be vetted by a "distribution committee." According to Newtown Selectman Will Rodgers, who headed the efforts to form the foundation, there is a possibility there will be more than one distribution committee.

Rodgers told The Courant that there is not yet a timetable for when the first funds will be distributed.

You can read the full story in The Hartford Courant.

IRS Bought To Court Over 'Dark Money' Organization

The Internal Revenue Service (IRS) is being sued by a former congressional candidate who alleges that the agency wrongly allowed a so-called "dark money" political organization to operate as a tax-exempt entity.

Dr. David Gill is a Democrat who unsuccessfully ran to represent Illinois' 13th district in the 2012 elections. According to a report on The Huffington Post, Gill and the Citizens for Responsibility and Ethics in Washington (CREW) are arguing that the IRS should not have allowed the American Action Network (AAN) to spend $2.6 million in ads against Gill while at the same time enjoying tax-exempt status.

Gill and CREW allege that the agency misinterpreted tax laws when it released regulations for social welfare nonprofits. IRS guidelines state that these organizations must be "primarily" focused on social welfare, while the federal statute states they must be "exclusively" focused on it.

"It is offensive that the IRS turns a blind eye to reality and allows partisan political groups to seek refuge in a provision of the IRS code that is meant to govern organizations such as volunteer firefighter companies and homeowner organizations," Dr. Gill said in a statement.

Dr. Gill and CREW filed the civil lawsuit Tuesday under the provisions of the Administrative Procedure Act, which allows those who have suffered "sufficient harm" to file suit against the IRS. Gill can certainly claim to have suffered, as he believes that his close defeat -- he only lost by 1,002 votes to Republican Rodney Davis -- was due to "misinformation" spread about his support of Medicare in AAN's ads. One of those spots claimed that Gill would eliminate Medicare and replace it with single-payer healthcare.

AAN was the only 501(c)(4) nonprofit to spend significant money in the 13th district campaign.

You can read the full story on The Huffington Post.

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.