N.J. Man Admits Operating Charity as Illegal Bank

The operator of a sham charity that defendants in a massive New Jersey corruption case used to stash assets pleaded guilty Wednesday to tax evasion and operating an unchartered bank, reports The Star-Ledger of Newark.

Moshe “David” Schwartz acknowledged that he ran Gemach Shefa Chaim—ostensibly an organization created to make interest-free loans to needy members of a Hasidic community in Union City, N.J.—as a bank, accepting millions of dollars in deposits and hiding them from federal and st…

Ex-N.Y. Charity Leader to Repay $3-Million for Larceny Plot

William E. Rapfogel, until last year one of New York’s most prominent nonprofit leaders, admitted in court Wednesday to taking part in a large-scale theft scheme throughout his two-decade tenure at the helm of an influential social-service charity and was ordered to pay $3-million to the organization, The New York Times reports.

Mr. Rapfogel faces 3 1/3 to 10 years in prison after pleading guilty to grand larceny, money laundering, and other charges. The term will increase to four to 12 years if…

Report Questions Critic’s Claims About Big Veterans Charity

Claims of waste and misspending by the Wounded Warrior Project that led the Florida-based veterans’ group to sue a vocal critic for defamation appear in some areas to be unfounded, according to the Independent Voter Network.

The news site consulted nonprofit experts and vetted tax filings to examine allegations leveled in online posts by Alex Graham, an Iraq war veteran who runs a small Indiana charity for former troops, that little of the tens of millions of dollars Wounded Warrior raises annua…

Clerics Raise Concerns About Film to Be Shown at 9/11 Museum

An interfaith clergy group is calling on the National September 11 Memorial Museum to make changes to a short film to be shown at the soon-to-open center, saying its references to “Islamists” and “jihad” could blur lines for visitors between Al Qaeda terrorists and Muslims in general, writes The New York Times.

The brief documentary, to be shown on a loop in a museum exhibit, aims to explain the historical roots of the attack and the ideology of the September 11, 2001, hijackers. A panel of cler…

Researcher Gives $1-Million to His Own Work on Gun Violence

A University of California professor of emergency medicine has put $1.1-million of his own money into maintaining his studies of firearms violence, a research area for which Congress has restricted federal aid, ProPublica reports.

In an interview with the nonprofit news site, Garen Wintemute, head of the Violence Prevention Research Program at the University of California, Davis, details how he began donating his own funds after the Centers for Disease Control ended funding for his studies on ri…

Lawmakers Question New Rules for Federal Workplace Charity Drive

A bipartisan group of congressman has sent a letter to the U.S. Office of Management and Budget expressing “substantial concerns” about a planned overhaul of the federal government’s workplace charity drive, The Washington Post writes.

The three Republican and two Democratic House members praised changes designed to improve transparency and accountability in the Combined Federal Campaign but raised questions about three aspects of the new regulations: a ban on cash gifts, a nonrefundable applica…

5 Nonprofits to Get Grants for Using Google Glass

Google is seeking ideas from nonprofit groups on how to use the company’s Web-connected eyewear in their work, with five organizations to receive $25,000 each to implement the best proposals, the Associated Press and tech-news site Mashable report.

Along with the grants, the winners will get a free set of Google Glass, which costs about $1,500 apiece, and training on how to use the wearable computer. Google launched the Giving Through Glass effort in October but announced on Tuesday, Earth Day, …

Ill. Joins States Trying ‘Pay for Success’ in Social Service

Illinois is introducing its first test of the “pay for success” concept of contracting for social services, working with a coalition of foster-care and youth agencies that will be paid for positive results rather than simply providing services, reports Crain’s Chicago Business.

The move by Gov. Pat Quinn’s administration adds Illinois to the handful of states experimenting with the new model, also called social-impact bonds, in which contractors must meet specific performance goals and private i…

Appeals Court Rejects Merger of Ohio Nonprofit Hospitals

A federal appeals court struck down a nonprofit northwest Ohio health system’s planned acquisition of a local community hospital Tuesday, saying the proposed union raises antitrust issues, writes The Wall Street Journal.

The unanimous ruling by a three-judge panel of the Sixth U.S. Circuit Court of Appeals in Cincinnati backed the Federal Trade Commission’s opposition to a 2010 merger pact between Toledo-based ProMedica and St. Luke’s Hospital. The regulatory agency says the deal would increase …

Fundraising Site Crowdrise Gets $23-Million in Financing

Crowdrise, the charity funding platform launched in 2010 by actor Edward Norton and three partners, said Monday that it has secured an additional $23-million in financing, writes tech-news site TechCrunch.

Similar to crowdfunding sites such as Kickstarter and Indiegogo, Crowdrise allows users to create pages and raise money for a project or cause, but it is exclusively devoted to nonprofit efforts. The for-profit site takes transaction fees of 3 percent to 5 percent but is experimenting with low…