Category Archives: News-updates

Wealthy Districts Drive Spike in Giving for Public Schools

Fundraising by nonprofits supporting specific public schools and school districts more than quadrupled from 1995 to 2010, The New York Times reports, citing new research. The boom is driven by parents in high-income communities, fueling a debate about educational inequality, the Times says.

Private groups associated with schools and districts raised about $880-million in 2010, compared to $197-million 15 years earlier, according to a study by two Indiana University researchers published in the j…

Finances Better and Care Same When Hospitals Go For-Profit, Study Finds

New Harvard University research found that nonprofit hospitals substantially improve their bottom lines by converting into for-profit institutions, while the level of patient care remains about the same, writes U.S. News & World Report. The study reviewed Medicare and Medicaid records to assess fiscal and treatment outcomes at 237 struggling nonprofit medical centers that went commercial.

Researchers said earnings increased substantially at hospitals that went commercial, while patient volumes a…

Union Hits Calif. Catholic Hospitals With Pension Suit

A California health workers’ union seeking to derail the sale of Daughters of Charity Health System to a for-profit network has sued the Catholic chain, claiming it has drastically underfunded employee pensions, San Francisco Business Times reports. The Service Employees International Union says it is acting to protect retirement benefits for current and former Daughters of Charity employees, but the nonprofit dismissed the suit as “an unfortunate scare tactic” in the labor group’s campaign agai…

Britain Aims New Rules at Militants Using Charities as Fronts

Britain’s Charity Commission will get new powers and additional funds to combat the use of nonprofits as a front to raise money for terrorist organizations, Reuters reports. The stricter regulations announced Wednesday by Prime Minister David Cameron follow the terrorism-related convictions of several individuals who had posed as charity fundraisers to finance planned attacks.

The regulatory agency will gain authority to shut down charities for mismanagement and disqualify trustees it considers …

Musicians at Struggling Memphis Symphony Take 38% Pay Cut

Memphis Symphony Orchestra musicians agreed Monday to take a one-year, 38-percent pay hit to help the strapped organization balance its budget, WALB television and The Commercial Appeal report.

Roland Valliere, the symphony’s president and CEO, said it required “emergency measures” after spending down its reserve fund, which once topped $6-million, to cover persistent operating deficits. He said the organization is working to expand its donor base. The symphony was able to complete its 2013-14 s…

Outlook Brightens for Once-Bankrupt Philadelphia Orchestra

Two years after exiting Chapter 11 bankruptcy, the Philadelphia Orchestra is reporting upswings in several key financial indicators, including double-digit gains in donations and ticket sales, writes The Philadelphia Inquirer.

The orchestra has paid off obligations associated with its bankruptcy settlement and run a modest budget surplus in the fiscal year that ended August 31, thanks largely to a transformation fund that has raised $69-million in the past five years to plug gaps between income …

Smithsonian Goes Public With $1.5-Billion Campaign

The Smithsonian Institution has opened the public phase of a $1.5-billion fundraising effort after quietly bringing in more than $1-billion in the first three years of the campaign, The Washington Post reports. Smithsonian Secretary Wayne Clough announced the campaign, the first of its kind in the national museum complex’s 168-year history, at a Board of Regents meeting Monday.

Smithsonian officials set a goal of collecting the remaining $500-million by 2017. The campaign drew 60,000 donors duri…

Flush Central Park Nonprofit Spreads Wealth Around New York

The Central Park Conservancy, the well-endowed nonprofit that operates New York’s most famous park, has launched a program to lend maintenance staff and expertise to green spaces throughout the city, writes The New York Times. The Five Borough Crew effort will send gardening teams to 10 parks and is funded by a $1.6-million grant from the Jerome L. Greene Foundation.

Mayor Bill de Blasio has called on wealthy conservancies to help neglected parks and has said he expects them to “play a major rol…

Ex-Charity Head Accused of $3.8-Million Theft Faces Federal Inquiry

The former head of a Maine social-service nonprofit accused in a civil lawsuit of stealing $3.8-million from the organization is also the target of a federal investigation, according to the Bangor Daily News. A lawyer for Russell Brace, former board president of United Mid-Coast Charities, said in court filing Monday that he was told by a federal prosecutor of the criminal inquiry.

The Camden, Me., charity filed suit earlier this month against Mr. Brace, alleging that over 13 years he deposited …

New Beginning Sought for Embattled N.Y. Community Center

The New York Times reports on efforts to turn around Manhattan’s Lincoln Square Neighborhood Center, which has struggled to survive in an area that has grown affluent since the facility opened in 1948.

The nonprofit center occupies Upper West Side space between Lincoln Center and a string of condominiums, across the street from the city-run Amsterdam Houses, whose working-class residents it was built to serve. When Mary B. Mulvihill was hired as executive director two years ago, it was $390,000 …