Philanthropy Today - Philanthropy.com

These are items on other Web sites that are of interest to the nonprofit world. The Chronicle has no control over their content or availability. To reach the Philanthropy Today staff, send an e-mail message to daily.news@philanthropy.com

Compiled by Noelle Barton, Caroline Bermudez, Maria Di Mento, Audrey Hill, Anne W. Howard, and Candie Jones.

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August 2008

August 29, 2008

Appeals Court Upholds Tax on Illinois Hospital

An appeals court in Springfield, Ill., has ruled that Provena Covenant Medical Center, in Urbana, is required to pay property taxes, reports the Associated Press.

In agreement with the state Department of Revenue and local tax authorities, the court contended that the Urbana hospital does not provide enough charity care to qualify for a tax exemption. Hospital officials declined immediate comment, the newspaper said.

In 2004 Provena was denied renewal of its tax exemption by the Department of Revenue and therefore was obligated to pay more than $1-million a year in property taxes. An administrative judge later sided with the hospital, but the Department of Revenue rejected that recommendation. The appellate court was then asked to weigh in on the matter.

Lawmakers to Hold a Discussion about University Endowment Spending

Two key lawmakers — Sen. Charles E. Grassley and Rep. Peter Welch — announced this week that they will assemble university administrators, education officials, and financial analysts to discuss the relationship between endowments and college costs, reports The Financial Times.

This meeting marks the latest step taken to support measures that would require that colleges spend more of their endowments to help needy students.

To compel institutions to spend more of their money and to give more needy students access to financial aid, Mr. Grassley has suggested that universities distribute at least 5 percent of their endowments annually, the same rule that now governs private foundations.

The Chronicle of Higher Education reported this week that Congress has asked the speakers to meet on September 8 to discuss issues such as what an endowment is and whether mandatory payouts make sense.

(Free registration is required to view the Financial Times article, and a paid subscription or short-term pass is required to view the Chronicle article.)

Minn. Pastor Criticizes IRS Investigation of His Church

The Rev. Mac Hammond, the pastor of one of Minnesota’s biggest churches, said an investigation by the Internal Revenue Service into his ministry’s finances is “politically motivated,” reports The Washington Post.

In March, his church, Living Word Christian Center, in Brooklyn Park, refused to comply with an IRS summons, arguing that the law stipulates that such a request must come from a “high-ranking official.” The agency has filed a petition in the U.S. District Court to require the church to provide the requested financial information. A court hearing is scheduled for October.

In a letter to members of his congregation, Mr. Hammond said the agency’s investigation is part of “a very clear effort, on a national scale, to discredit, defame and intimidate” preachers who focus on the “prosperity gospel,” which says that God wants his faithful followers to be rewarded spiritually and financially.

(Free registration is required to view this article.)

Violence Forces Charity to Close Health Clinic in Somalia

A clinic operated by the charity Doctors Without Border in Mogadishu, Somalia, was forced to close due to increased insecurity in the region, the charity said on Wednesday, reports Reuters.

The clinic has provided health care to hundreds of children and pregnant women daily.

“The closure comes following a further deterioration of the situation in the area where the clinic is located,” the charity said in a statement. “There has been a notable increase in violence, including mortars landing close to the clinic,” it said.

With more than 8,000 civilian casualties in the nation since the start of last year, the capital of Somalia is one of the most dangerous places for aid workers to serve, the news service said.

Opinion: 9/11 Memorial Should Commit to 2011 Opening

Every effort should be made to ensure that the 9/11 Memorial and Museum will be completed in time to mark the tragedy’s 10th anniversary, implores David Beamer in an opinion article in The Wall Street Journal.

Mr. Beamer, whose son, Todd Beamer, was a passenger on United Flight 93, serves on the Board of Directors of the National September 11 Memorial & Museum and is calling for a firm commitment to a 2011 opening for the memorial.

“On the 10th anniversary of 9/11, will people be reminded of the collective will to respond to the attacks in a meaningful way, or will the results of bureaucracy, apathy, and a lack of leadership be on display?” said Mr. Beamer.

From The Chronicle: Obama's Pledge to Help the Needy

Sen. Barack Obama accepted the Democratic Party’s nomination for president last night with a pledge that the government will help those in need, a philosophy that is likely to please nonprofit groups working for social causes, The Chronicle of Philanthropy reports.

Give and Take: Checking Out Job Applicants

Nonprofit groups need to carefully check out the references of people applying for jobs, according a to new post in Give and Take, The Chronicle’s roundup of the best blogs about the nonprofit world.

Plus: Rumors are flying about who will be tapped to take over the top job at the Metropolitan Museum of Art.

Online Discussion Next Week: Seeking Money for Operating Costs

Join us on Tuesday, September 2, at noon Eastern time for a live online discussion about the pros and cons of general operating support — and how nonprofit groups can find donors willing to give them unrestricted dollars to cover their expenses.

The guest will be Paul Shoemaker, executive director of Social Venture Partners Seattle, an organization that provides unrestricted grants and other aid to nonprofit groups.

The Chronicle’s online discussions are free and open to everyone. People who ask questions in advance have a better chance of getting answers.

Holiday Notice

Because of the Labor Day holiday, we will not be sending you Philanthropy Today on Monday. We will be back in your mailbox on Tuesday.

August 28, 2008

Nonprofit Hospitals Under Fire for High Costs

Nonprofit hospitals are being scrutinized by lawmakers and health-care advocates for their increasing revenues, expanding facilities, and generously paid executives, and for what critics call a decreased emphasis on providing charity care, reports The Wall Street Journal.

As an example of the controversy, The Journal spotlights Carilion Health System, which serves the Roanoke, Va., area. Carilion, which expanded in 1989 when it merged with the city’s only other hospital, now holds $1-billion in assets. The hospital said it receives about $50-million a year in tax exemptions. It dispensed $42-million in charity care in 2007 and $30-million in 2006.

The hospital has come under fire for its pricing, which critics say has helped spike local medical-care costs. For example, reports the newspaper, Carilion charges 4 to 10 times as much for a colonoscopy as does a local endoscopy center. Today, health-insurance rates in Roanoke are the highest in the state, whereas once they were the lowest.

Carilion says it must charge more for some procedures to subsidize its emergency room and care for uninsured patients.

But others say the hospital charges more because it represents a monopoly. “It’s a one-market town here in terms of health care,” says Sam Lionberger, who owns a local construction firm. “Carilion has the leverage.”

(A paid subscription is required to view this article.)

Bangladesh Charity Wins $1.5-Million Hilton Prize

A Bangladesh charity that has awarded $5-billion in microloans to people in the developing world has won a $1.5-million prize from the Conrad N. Hilton Foundation, the Los Angeles grant maker has announced.

The 2008 Conrad N. Hilton Humanitarian Prize was given to BRAC, a charity, created in 1972 that works to eliminate poverty in developing countries. In addition to its microloan program — in which people receive small loans to enable them to start or expand businesses — the charity says it has graduated more than 6 million students from its 52,000 primary and pre-primary schools, provided health care to 90 million people, and helped create 8.5 million jobs.

“BRAC’s approach to creating self-sufficient and sustainable programs on a massive scale has blazed a trail for development organizations around the world,” said Steven M. Hilton, the Hilton foundation’s chief executive officer.

The Hilton prize, which the foundation awards each year to an organization that works to alleviate human suffering, will be presented on October 20 in Geneva.

Texas Tech Alumnus Gives $15-Million to Petroleum-Engineering Department

An alumnus of Texas Tech University has given his alma mater $15-million to endow its Department of Petroleum Engineering, reports the university.

The donation from Bob L. Herd, a 1957 graduate who majored in petroleum engineering and later founded Herd Producing Company, in Tyler, Tex., will result in the department being named for him.

The donation will help the department recruit and retain faculty members, says Pam Eibeck, dean of the College of Engineering, in a report published by The Lubbock Avalanche-Journal.

Mr. Herd, who has put no restrictions on his gift, credited the university for his success.

“My family and I are pleased that we are able to help Texas Tech provide the educational foundation for future petroleum engineers, like Texas Tech provided me many years ago,” he said. “It was this education that made this donation possible.”

Lottery Winner Gives $3-Million Ticket to Church

A Long Island resident who won $3-million in the New York state lottery gave the winning ticket to a local church, reports the New York Daily News.

“My first reaction was stunned silence,” said Bertrand Crabbe, pastor of the True North Community Church, in Port Jefferson, who appeared at an announcement ceremony August 27 with state lottery officials. “After I picked my jaw up off the floor, I was just overwhelmed with joy and gratitude.” Mr. Crabbe would not reveal the donor’s identity.

The church, whose windfall came courtesy of a $10 Bada-Bling scratchoff ticket, will receive at least $102,225 a year for the next 20 years, an amount that could increase if taxes are refunded because of the church’s nonprofit status.

Mr. Crabbe says he intends to purchase a bigger building for the church, which has grown rapidly in recent years, but will donate the first year’s winnings to other charities. A large portion of those funds, he says, will benefit Love 146, a charity in neighboring Connecticut that fights human trafficking in Southeast Asia.

About his parishioner’s charitable gesture, the pastor added, “I hope it inspires other people to be generous to their churches and to charities everywhere — especially in light of the economy.”

Donor's Billboard Asks Viewers to 'Imagine No Religion'

A man’s decision to pay for a billboard asking Seattle residents to “imagine no religion” has sparked interest in a Wisconsin nonprofit group that promotes the separation of church and state, reports The Seattle Times.

Mike Christensen, a 28-year-old software engineer from Redmond, Wash., who identifies himself as an atheist, joined the Freedom From Religion Foundation, in Madison, Wis., several years ago because he disagreed with the Bush administration’s policies on religious issues. “I like the phrase ‘Imagine No Religion’ because it doesn’t make a judgment,” said Mr. Christensen. “It provokes thought.”

The 14-foot-by-48-foot billboard has helped bring in five new members and about 20 prospective ones, according to the charity. The organization began a campaign to spread its message via billboards in cities around the country 30 years ago; billboards urging viewers to “Keep Religion Out of Politics” were posted in Denver this week and will be posted in St. Paul next week, to coincide with conventions by the two major political parties.

College Vows Better Protection of Its Museum's Art

In the wake of reports that Wellesley College’s Davis Museum may have accidentally thrown out a valuable painting, the college’s president, H. Kim Bottomly, said new protections for the museum’s art will be in place by this fall, reports The Boston Globe.

A 1921 painting by French cubist Fernand Leger, which had been loaned to the Oklahoma City Museum of Art for an exhibit that ended in April 2007, was discovered missing after it had been returned to Wellesley. The work sat in a crate for months, and later the museum could not locate it. Museum officials say it may not have been removed from the crate before that crate was discarded.

“This issue remains a high priority for me,” Ms. Bottomly said in a statement. “The loss of this valuable and irreplaceable painting has saddened the entire community, and we still hope it will be found.”

A Wellesley art lecturer and adjunct curator of the Davis, Eleanor P. DeLorme, has asked the museum to return art pieces she donated years ago, claiming that one of the pieces has been damaged. “It’s a bad place to give any art objects to, and I want all of them back,” said Ms. DeLorme.

(Free registration is required to view this article.)

From The Chronicle: Recruiting Younger Workers

Values and mission are the selling points charity leaders should focus on when they seek to recruit new employees, says a new report from the Johns Hopkins University, The Chronicle of Philanthropy reports.

Government & Politics Watch: Nonprofit Plank in Democratic Platform

The Democratic National Committee is including a provision in the party’s official platform that calls for the creation of a federal fund to support charities that have devised successful ways to meet social needs, reports Government and Politics Watch, a Chronicle online column.

Prospecting: Advice Sought on How to Sway Business Owners

Inspired by a recent exchange in Prospecting — The Chronicle’s column on fund-raising news and tips — a volunteer fund raiser for environmental causes is asking readers for advice on how to “encourage more business owners to donate and to think creatively about the ways they can help.”

Plus: Two Denver businessmen have created an online bingo game for philanthropic watchers of the Democratic convention.

Give and Take: Fund Raising at the Speed of Twitter

Twitter — mini-blogs updated via text message — can raise money fast from the technologically savvy, according to a new post in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Online Discussion Next Week: Seeking Money for Operating Costs

Eighty percent of the money that foundations distribute to charitable causes is earmarked for charity programs and other purposes, so it cannot be used for basic operating costs like utilities, rent, supplies, and clerical help.

Many grant makers say they earmark most of their grants out of concern that otherwise the nonprofit groups will become too dependent. And they say it is too hard to measure the specific results of an unrestricted grant.

But in recent years, a handful of grant makers have become more willing to provide money for operating costs. Advocates of operating support say nonprofit groups can be more innovative and manage their operations better if they don’t have to worry about following a grant maker’s instructions for how every dollar should be used.

The guest will be Paul Shoemaker, executive director of Social Venture Partners Seattle, an organization that provides unrestricted grants and other aid to nonprofit groups.

The Chronicle’s online discussions are free and open to everyone. People who ask questions in advance have a better chance of getting answers.

August 27, 2008

Anonymous Donor Gives Spelman College $17-Million

An anonymous donor has given $17-million to Spelman College, in Atlanta, reports MarketWatch.com.

The money will be used to establish the Gordon-Zeto Endowed Fund for International Initiatives. The fund is named for Nora A. Gordon, an 1888 graduate of the college who was its first former student to teach in the Congo, and Flora E. Zeto, a 1915 graduate of Spelman who was one of the first Congolese to study and graduate from college.

Salary for Leader of Police Charity Causes Uproar

The Atlanta Police Union and some charity experts are questioning what they say is the unusually high salary of the Atlanta Police Foundation’s president, reports The Atlanta Journal-Constitution.

Dave Wilkinson, a 48-year-old former Secret Service agent was hired for the job in 2005 and is paid $211,000 annually by the nonprofit group. The organization’s revenue last year was about $801,000, which has dropped from $1.45-million in 2006 and $1.6-million in 2005. Mr. Wilkinson’s salary accounted for 26 percent of the group’s 2007 revenue.

“We were shocked” to find out Mr. Wilkinson’s salary, Sgt. Scott Kreher, president of an Atlanta police union, told the newspaper. “The foundation is a fairly new project in Atlanta, so we feel like it is a little exorbitant.”

Gary Snyder, a nonprofit consultant from West Bloomfield, Mich., and board member for the nonprofit watchdog National Committee for Responsive Philanthropy, said that when compared with the foundation’s revenues, Mr. Wilkinson’s salary is “certainly significant,” adding that “donors don’t want to contribute to salaries — they want to contribute to the fulfillment of the [nonprofit group’s] mission.”

Officials of the Atlanta Police Foundation say that Mr. Wilkinson’s salary is not out of line given his experience and expertise.

Leader of Komen Affiliate Is Investigated for Embezzlement

The executive director of the Boise, Idaho, branch of the Susan G. Komen for the Cure charity was arrested on Monday on charges of grand theft and forgery, reports the Idaho Statesman.

Mary Guinard, the executive director, was fired on Sunday for breach of policy, said charity officials. She is accused of embezzling approximately $74,000 from the nonprofit organization.

Linda McGraw, a Komen board member, said the money in question would not affect the nonprofit group’s operations. Charity officials say they plan to have auditors examine the group’s financial records for the two-year period that Ms. Guinard served as director.

Ms. Guinard did not comment in the article.

Government & Politics Watch: IRS Review of Churches and Politics

As the race for the White House heats up, the Internal Revenue Service is stepping up efforts to keep church groups from running afoul of campaign laws, reports Government and Politics Watch, a Chronicle online column.

Prospecting: Planning for a Fund Raiser's Departure

Just as nonprofit groups have increasingly recognized the need for succession plans for replacing the chief executive, they should also start making plans for how they would replace people in other key jobs such as the chief fund raiser, notes a new post in Prospecting, The Chronicle’s column on fund-raising news and tips.

Plus: Fund raising at 400 feet.

From The Chronicle: New Orleans's Youth Movement

Young people flocked to New Orleans to help out after the disastrous 2005 hurricanes, and to some extent the pace of the city’s recovery depends on how many of them stay, The Chronicle of Philanthropy reports.

August 26, 2008

Nonprofit Hospitals Face Financial Struggles

Nonprofit hospitals are suffering financial problems because of the turbulent economy, reports Reuters news service.

Reports released yesterday by Moody’s Investors Service and Standard & Poor’s Ratings Services showed that many nonprofit hospitals suffered financial setbacks after their debt from capital projects was restructured (and often increased) when the auction rate market, which many nonprofit hospitals used, collapsed earlier this year.

A spokesman for Moody’s said further pressure will be put on nonprofit hospitals as the economy weakens and more patients seek health care they can’t pay for, reports the news service.

Kentucky Rules University Must Disclose Donors' Names

The Supreme Court of Kentucky has settled a seven-year legal battle by ruling that the University of Louisville must disclose the names of 47,000 donors to the University of Louisville Foundation because the fund-raising unit is a government entity, reports The Chronicle of Higher Education.

In 2001 The Courier-Journal, a Louisville newspaper, sued to obtain the names under the state’s open-records law. The foundation had denied the newspaper’s request for information on donors to the McConnell Center for Political Leadership. Kentucky’s senior U.S. senator, Mitch McConnell, a Republican, helped found the center.

A. Keith Inman, the University of Louisville’s vice president for advancement, said the institution would abide by the ruling but that he believes donors have a right to privacy. Mr. Inman also said he worried that as a result of the ruling, some potential donors who wish to remain anonymous may direct their gifts to other foundations where confidentiality is guaranteed.

“I really think it creates an unlevel playing field for public universities in Kentucky,” Mr. Inman said.

(A paid subscription or short-term is required to view this article.)

Substance-Abuse Charities Face Trouble Raising Money

Fund raising at nonprofit groups that help treat those addicted to drugs and alcohol suffers from the stigma that these substances can bring, reports the Financial Times.

Development directors at recovery-related groups say that society often blames the drug abuser for his or her problems and does not see addiction as a disease, resulting in less donated money.

Fund raisers also say that most of the graduates of recovery programs have little money and that they are unable to build endowments because they cannot keep up with immediate demands for services.

(Free registration is required to view this article.)

War Widow Creates Nonprofit Group to Help Her Peers

Taryn Davis, whose husband was a soldier who died in Iraq last year, has created a documentary film and a nonprofit group with resources for other war widows, reports The New York Times.

Her organization, the American Widow Project, provides widows with support groups and practical information, such as how to plan a funeral.

Ms. Davis documented the experiences of other war widows across the country last year in a movie and plans to distribute the documentary to new war widows and widowers within the first two weeks of receiving the news of their spouse’s death.

To read more about how charities are helping troops and family members of those serving in Iraq, see The Battle on the Homefront, a special report from The Chronicle’s archive.

(Free registration is required to view the Times article, and a paid subscription or short-term pass is required to view the Chronicle article.)

Scientists Discover Altruistic Impulse in Monkeys

Capuchin monkeys show concern for others’ welfare and enjoy giving to their peers — much in the way that humans do — according to a study by the Yerkes Research Center at Emory University in Atlanta, reports Reuters news service.

Researchers tested eight female brown capuchin monkeys in pairs and gave them the option of choosing food for just themselves or food for themselves and their partner. They found that when the monkey’s partner was “familiar, visible, and receiving rewards of equal value,” the monkeys were more likely to give food to their partner.

“The fact the capuchins predominantly selected the prosocial option must mean seeing another monkey receive food is satisfying or rewarding for them,” said Frans de Waal, who directed the research.

Give and Take: What Irks Donors

Donors list what irritates them most in a new post in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

From The Chronicle: Charities and Celebrities

Read the transcript of The Chronicle’s online discussion today about charities and celebrities.

August 25, 2008

Charities Started After Katrina Contemplate a New Role

Some of the charities created in the Gulf Coast to provide recovery aid to victims of Hurricane Katrina will cease operations or merge with others in coming months and years because competition for money has grown more intense, reports New Orleans City Business.

In Louisiana alone, the number of charities doubled from 1996 to 2006, according to data from the National Center for Charitable Statistics. Gary Ostroske, president of the United Way for Greater New Orleans, tells City Business that he has seen an increase in the number of groups that want to strike partnerships with his organization.

But even the local United Way has had to find new donors, as it lost about 6,000 donors after Katrina, says Mr. Ostroske.

Laura Crochet, an official at the Louisiana Association of Nonprofit Organizations, says the situation has provided a reason to work together.

“I think we’ve kind of reached a bit of a plateau where people are taking a little bit of a step back to look at some of the organizations that are here and where they could maybe fit into other organizations,” Ms. Crochet says.

In another article, The New Orleans Times-Picayune reports on progress and work still to be done by nonprofit groups and other institutions three years after Katrina.

See The Chronicle’s new article on how an influx of young nonprofit workers has helped keep New Orleans charities running.

(A paid subscription or one-day pass is required to view the Chronicle article.)

Mass. Horticultural Society Freezes Accounts

In an attempt to avoid bankruptcy, the nonprofit Massachusetts Horticultural Society, in Wellesley, has frozen its accounts and plans not to pay creditors until a review of its finances is complete, reports The Boston Globe.

The organization laid off some employees in June, and now questions are being raised over whether it should hold its annual New England Spring Flower Show, which typically costs about $2-million, the paper reports.

Betsy Ridge Madsen, president of the society’s board, said trustees were misinformed at times regarding the organization’s financial problems.

“There has been a lot of mismanagement on a lot of levels,” Ms. Madsen tells the Globe. “The fact is, what we saw on paper was not the actual state of affairs.”

The organization recently started a new fund-raising campaign and is considering whether to sell some of its $8-million in stocks, bonds, or other assets, the newspaper reports.

(Free registration is required to view this article.)

University to Release Obama Nonprofit Records

The University of Illinois is expected to release records of Sen. Barack Obama’s work with a nonprofit organization tomorrow, in a decision that reversed its earlier stance, reports the Associated Press.

The Chicago Annenberg Challenge was created in the 1990s, chaired by Senator Obama, now the presumptive Democratic presidential nominee, and co-founded by William Ayers. Mr. Ayers, now a professor at the University of Illinois at Chicago, was part of a radical group known as the Weathermen that took credit for nonfatal bombings at the Pentagon and U.S. Capital during the 1960s, the news agency reports.

Senator Obama has denounced Mr. Ayers’s Weatherman activities. The Chicago Annenberg Challenge was given nearly $50-million by the Annenberg Foundation, as part of an ambitious school-improvement effort conducted nationwide.

Small Nonprofit Health Insurers May Merge or Become Businesses

Small health-care organizations, such as nonprofit Blue Cross Blue Shield organizations, are facing increased pressure to merge or convert to for-profit status as they try to compete with larger organizations and prepare for changes in policy, reports The Wall Street Journal.

Robert Field, health-policy professor at the University of the Sciences in Philadelphia, says that while many independent Blue Cross organizations had merged into larger organizations this decade and last, “pressure continues on those that didn’t merge.”

(A paid subscription is required to view this article.)

Prospecting: When Is It Time to Give Up on Donors?

Should fund raisers stop soliciting donors who don’t give for a few years? That is a topic on which charity officials disagree, notes a new post in Prospecting, The Chronicle’s column on fund-raising news and tips.

Online Discussion Tomorrow: Celebrities and Charity

Join us on Tuesday, August 26, for a live online discussion about the most effective ways to involve celebrities in philanthropy.

Every Labor Day weekend, the Muscular Dystrophy Association holds it star-studded telethon. But how do charities form partnerships with famous actors, singers, and athletes? What logistical challenges are involved? And how much value do such partnerships truly bring?

Our guests will be:

Marc Pollick, founder of the Giving Back Fund, a nonprofit organization that helps celebrities and athletes with their philanthropy.

Marshall Stowell, deputy director of Population Service International’s YouthAIDS program, which enlisted the actress Ashley Judd to advocate on its behalf.

The Chronicle’s online discussions are free and open to everyone. People who ask questions in advance have a better chance of getting answers.

From The Chronicle: Playing Hooky for a Good Cause

Churches in one Texas town shortened or canceled services on a recent Sunday to allow the faithful to take part in a community effort to spruce up local schools, The Chronicle of Philanthropy reports. The response from volunteers was far larger than expected.

August 22, 2008

Peace Corps to Accept Fewer Volunteers

In an effort to trim costs, the Peace Corps is planning to reduce the number of its new volunteers and consolidate its recruiting offices, reports The Washington Post.

Officials of the program, which has a $330.8-million budget, say they anticipate losses of about $18-million this fiscal year and next and attribute the shortfall to the declining value of the dollar overseas and the rising cost of energy and other commodities. The pinch has resulted in inflated expenses for overseas leases, volunteer-related costs, and salaries for staff members working abroad.

Such factors “have materially reduced our available resources and spending power,” wrote Peace Corps director Ronald A. Tschetter in a letter to Rep. Betty McCollum. “Tough budgetary decisions must be made now in order to ensure a financially healthy agency next fiscal year,” he added.

(Free registration is required to view this article.)

Political Group to Run Ad Questioning Obama's Nonprofit Ties

A conservative political charity with past connections to John McCain’s presidential campaign plans to spend $2.8-million on an ad that questions Barack Obama’s relationship with University of Illinois at Chicago professor, William Ayers, a founder of the 1960s radical group Weather Underground, reports the Associated Press.

The American Issues Project, whose board member, Ed Failor Jr., was a paid consultant for Mr. McCain’s campaign in Iowa last year, is sponsoring the ad. It calls attention to nonprofit ties that Mr. Obama and Mr. Ayers have had over the years, both by serving on a charitable foundation and by working on a school-improvement effort sponsored by a philanthropy.

Mr. Obama’s campaign accused Mr. McCain of dispatching “his paid consultant to launch this despicable ad from a so-called ‘independent’ committee,” said the newspaper.

(Free registration is required to view this article on the Washington Post site.)

McCain and Obama to Discuss Public Service on September 11

Presidential candidates Barack Obama and John McCain have accepted an invitation to speak at a forum on public service to be held in New York City on September 11, the organizers announced Thursday, reports Reuters.

A group called MyGoodDeed.org, which seeks to transform September 11 into a national day of charitable service, requested participation by the senators, who will speak separately at the ServiceNation Summit, in New York, to “discuss their respective visions for the role of service in America’s future,” said organizers of the event.

The public has been invited to submit questions to the presidential candidates.

To learn more about the views of the candidates on volunteerism and other issues of importance to the nonprofit world, see our special Campaign 2008 section.

IBM Helps Workers Who Want to Retire and Take Nonprofit Jobs

IBM is offering its employees a way to learn about the challenges and opportunities of working in the nonprofit world in hopes of helping its workers who are about to retire make a smooth transition to a new role, reports The Financial Times.

Through its internal Web site, the company provides information about the nonprofit world as well as tools such as training videos.

“We know a lot of employees find their way to the voluntary sector anyways,” said Stanley Litow, president of the IBM International Foundation. “But knowing generally about the opportunities is not the same as having a clear path from your first career to your second career.”

The program, which IBM intends to make available to other companies, also seeks to help employees identify positions that are suited to their skills.

(Free registration is required to view this article.)

Opinion: Aid Workers Across the World Facing Greater Risks

The long-held assumption that as long as humanitarian groups remain neutral their security won’t be threatened no longer holds true in many regions consumed with conflict, as evidenced by the increase in attacks against aid workers across the world, said Michael Kleinman in an opinion article in the Los Angeles Times.

The recent killings of three aid workers and their driver in Logar province in Afghanistan was followed by a Taliban statement saying, “We don’t value their aid projects, and we don’t think they are working for the progress of the country,” highlighting the increasing lack of tolerance for and intentional violence against such groups.

Since January, 23 aid workers have been killed in Afghanistan, 20 in Somalia, and 10 in Darfur. Attacks against aid workers almost doubled from 1997 to 2005.

Related reading: The threats against humanitarian workers pose a recruiting challenge for charities, notes an article from the Chronicle archive.

(Free registration is required to view the Times article, and a paid subscription or short-term pass is required to view the Chronicle article.)

Are You Attending the Political Conventions?

If you’re attending the Democratic or Republican presidential nominating conventions, we’d love to hear about how your experiences affect others in the nonprofit world. Send a message to editor@philanthropy.com.

Give and Take: Getting Government Help

A former Congressional aide offers advice on how charities can get help from the federal government in a new post in Give and Take, The Chronicle’s roundup of the best blog posts in the nonprofit world.

Online Discussion Next Week: Celebrities and Philanthropy

Join us on Tuesday, August 26, for a live online discussion about the most effective ways to involve celebrities in philanthropy.

The Chronicle’s online discussions are free and open to everyone. People who ask questions in advance have a better chance of getting answers.

From The Chronicle: Engaging the Millennial Generation

In an opinion article from the latest issue of The Chronicle of Philanthropy, Allison Fine urges charities to take advantage of all that the millennial generation has to offer.

Need Help Finding Potential Donors?

If you’re attending this week’s annual meeting of the Association of Professional Researchers for Advancement, in Denver, we hope you’ll make sure to join The Chronicle for a special preview of the key findings of a new survey on screening prospective donors.

You’ll get an early look at a survey of fund raisers The Chronicle asked the research firm Campbell Rinker to conduct in a session tomorrow at 8:30 a.m.

The session in Denver will feature Peter Panepento, The Chronicle’s Web editor, and Dirk Rinker, chief executive of Campbell Rinker. It will be held in the Hyatt Regency Denver — Mineral Hall A.

For more details about the study, send a message to display@philanthropy.com.

August 21, 2008

American Red Cross Faces Deficit, Fund-Raising Woes

The American Red Cross is facing a $200-million deficit, a nearly empty disaster-relief fund, stagnant fund raising, and large loans it took out to help victims of recent disasters, reports The Wall Street Journal.

The paper criticizes the charity’s fund raising as outdated, saying “its fund-raising model of living from disaster to disaster no longer works well in a world where other charities constantly are competing for donor dollars.” The paper also points out that fund raising between many of the Red Cross’s local chapters and the national headquarters is out of sync, with some affiliates refusing to share donors with the national office.

The American Red Cross has been plagued by program, management, and money problems in the past few years, including the resignation of top executives and criticisms that it did not respond quickly enough to victims of Hurricane Katrina and the September 11 attacks.

“For the last year in particular, we’ve been living hand to mouth,” says Joseph Becker, the Red Cross’s senior vice president for preparedness and response.

Gail McGovern, the current chief executive of the Red Cross, believes that stronger communications will help the organization improve. She also said, “We just need to do steady fund raising. I believe we’re just now getting traction with programs that get us off episodic fund raising.”

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Philanthropic Adviser Accused of Stealing From San Francisco Fund

A philanthropic adviser who worked for the Tides Foundation has been indicted on charges that he stole more than $132,000 from the organization, reports the San Francisco Chronicle.

Jason Ramon Sanders faces one count of theft for allegedly taking money from February 2005 to March 2008. An auditor for the San Francisco organization found that money was diverted from one fund and was repaid through the group’s operating reserves.

Mr. Sanders told the newspaper, “I don’t know what you’re talking about,” before hanging up. His lawyer, Robert Shepard, confirmed that Mr. Sanders was fired from Tides but offered no comment.

University Hits Roadblock in Release of Records on Obama's Nonprofit Ties

The University of Illinois says it cannot release records related to the presidential candidate Barack Obama’s service with a nonprofit organization affiliated with a former 1960s radical activist, reports the Associated Press.

Mr. Obama was board chairman from 1995 to 1998 of the Chicago Annenberg Challenge, a charity that was given $49.2-million to help overhaul Chicago schools. The charity received considerable assistance from William Ayers, a co-founder of the Weather Underground organization, a radical group that promoted violence as conducive to political change, the newspaper says. My. Ayers is now a professor of education at the University of Illinois at Chicago.

The university previously had said it would release the records but then said it could not because it does not own them. The donor of the records notified the school about the lack of an ownership agreement.

Bill Burton, a university spokesman, said, “The donor’s only concerns regarding the collection are due to personnel information that could include names, confidential salary information, and even Social Security numbers.”

The Obama campaign says of the documents, “We are pleased the university is pursuing an agreement that would make these records publicly available.”

Anonymous Donor Expresses Interest in Freeing SeaWorld Animals

The animal-rights group People for the Ethical Treatment of Animals says it has an anonymous donor who is interested in buying one or more SeaWorld parks to free the animals, reports the Orlando Sentinel.

PETA says the donor wants to replace the live animals with virtual-reality or animatronic displays.

Says Lisa Wathne, a PETA spokeswoman: “We don’t know how high this donor will go, but he is serious. Whales, dolphins, and other marine life are very important to him.”

The donor should be prepared to pay a very high price, according to Jack Russo, a stock analyst. He says the Orlando SeaWorld could be worth $5- to $6-billion.

Battle Over Bequest Continues

The dispute over Newcomb College, the women’s college shut down by Tulane University two years ago, is continuing after another niece of the college’s benefactor filed a lawsuit yesterday to reopen the school, reports The Times-Picayune.

Susan Henderson Montgomery, of Franklin, Mass. — a great-great-great niece of Josephine Louise Newcomb — is the third niece to contend that Tulane violated the terms of Ms. Newcomb’s gifts. No court date has been set.

Two other nieces filed a petition in May 2006, which went to the Louisiana Supreme Court but has been returned to the Civil District Court. The nieces must establish that they are legitimate heirs of Ms. Newcomb. A group of students and alumni filed a federal suit in March 2006, but it was later thrown out.

Mike Strecker, a Tulane spokesman, said of the latest suit, “Tulane University’s position in this matter has prevailed. We remain confident in our position in this matter.”

Government and Politics Watch: Co-Chair of Congressional Philanthropy Caucus Dies

Rep. Stephanie Tubbs Jones, a Democrat of Ohio who co-chaired the Congressional Philanthropy Caucus, died Wednesday of a brain hemorrhage, reports Government and Politics Watch, a Chronicle online column.

From The Chronicle: United Way's New Approach

As United Ways revise their approach to grant making, charities around the country are scrambling to replace money they no longer receive because their work doesn’t fit the organizations’ aims, The Chronicle of Philanthropy reports.

Give and Take: What's Most Charitable?

Can a new lawyer do more charitable work by providing legal help through a job at a nonprofit group or by getting a high-paying job with a law firm and making big donations? That’s the question Stephen J. Dubner explores in his “Freakonomics” blog, as noted in a new post in Give and Take, The Chronicle’s roundup of the best blog posts in the nonprofit world.

Prospecting: Tips for Raising Money Online

Simple steps — such as cutting the lag time between when people sign up to receive online newsletters and when they start getting useful updates — can produce fund-raising benefits, according to a free background paper highlighted in a new post in Prospecting, The Chronicle’s column with news and tips on seeking donations.

August 20, 2008

Top Official Resigns at White House 'Faith-Based' Office

Jay Hein, the head of the White House Office of Faith-Based and Community Initiatives, has resigned effective August 29, according to the Roundtable on Religion & Social Welfare Policy.

The roundtable — which reports news related to government money for social services by religious organizations — says Mr. Hein plans to return to Indiana to take care of his father, who has cancer.

Aid Groups Press Russian Authorities for Access to South Ossetia

Aid organizations met with Russian authorities yesterday to ask to be allowed to enter South Ossetia, a Georgian province controlled by Russian troops. The groups say tens of thousands of people are in need of food and medical care, Reuters reports.

Aid workers have been kept out of the province since the start of the conflict between Moscow and Tbilisi, which has lasted 11 days.

Jakob Kellenberger, president of the International Committee of the Red Cross, spoke with the Russian Foreign Minister Sergei Lavrov in Moscow yesterday; Antonio Guterres, the U.N. High Commissioner for Refugees, is set to meet Mr. Lavrov today.

Red Cross officials who reached the western Georgian town of Gori several days ago were approached by residents asking for food and medicine, said Anna Nelson, a spokeswoman for the international Red Cross. Ms. Nelson said the organization has flown 430 tons of food and medical supplies into Georgia in the past week.

Officials at the United Nations estimated that 158,700 people have been uprooted by the conflict, including 30,000 people from South Ossetia who have been allowed by Russian authorities to remain in North Ossetia, a part of the Russian Federation.

The United Nations appealed on Monday for $58.6-million to help survivors of the crisis with food and other essential aid for the next six months.

College of Southern Nevada Receives $8.2-Million Grant

The Engelstad Family Foundation, in Las Vegas, has given $8.2-million to the College of Southern Nevada for the institution’s cardiorespiratory-sciences program, reports the Associated Press.

College officials say the money will pay for a 10,000-square-foot expansion of the health-sciences building, which is to be re-named the Ralph and Betty Engelstad School of Health Sciences.

Ralph Engelstad, who died in 2002, was a hotel and casino owner.

Two Nonprofit Film Organizations Merge

The 51-year-old San Francisco Film Society has agreed to take over the Film Arts Foundation, a struggling San Francisco nonprofit organization that has been well known in that city for its teaching and support of local Bay Area filmmakers, reports the San Francisco Chronicle.

Officials at the Film Society say they plan to expand on some of the Film Arts Foundation’s work, including film-production classes, financial support of films, and help with distribution and marketing, while eliminating the group’s equipment and facility rentals. The Film Arts Foundation broke even in 2007 but faced hard times this year.

“As with a lot of nonprofits, we didn’t have much of a safety net,” said the Film Arts Foundation president, Steve Ramirez.

From The Chronicle: Final IRS Instructions for New Form 990

Completing the first major overhaul in a generation of the informational return that most charities must file with the federal government, the Internal Revenue Service released on Tuesday final instructions for the redesigned Form 990, The Chronicle of Philanthropy reports.

Government and Politics Watch: Nonprofit Representatives' Denver Plans

Nonprofit and foundation representatives will mingle with political activists during the Democratic National Convention, which takes place next week in Denver, reports Government and Politics Watch, a Chronicle online column.

Plus: Two U.S. senators have created a Senate Philanthropy Caucus to look at ways to help foundations and charities.

Give and Take: Why Special Olympics' Movie Boycott Was a Mistake

A nonprofit communications specialist says the decision by Special Olympics to boycott the new movie “Tropic Thunder” because it uses the word “retard” was a “big tactical communications mistake,” according to a new post in Give and Take, The Chronicle’s roundup of the best blog posts in the nonprofit world.

Plus: How much does it really matter whether donors use the term ‘giving’ vs. ‘investing?’

Need Help Finding Potential Donors?

You’ll get an early look at a survey of fund raisers The Chronicle asked the research firm Campbell Rinker to conduct in a session on Saturday, August 23, at 8:30 a.m.

August 19, 2008

Nonprofit Groups Seek Attention in 2008 Campaign

As the campaign for the White House kicks into high gear, a growing number of charity leaders are pushing for the federal government to create an agency that matches nonprofit programs to government priorities, bolster national-service programs, and provide money to help charities grow, reports The Washington Post.

Problems such as poverty, climate change, and lack of access to high-quality health care and education for the needy are so great that they “cannot be solved by the public sector alone,” says Jane Wales, founder of the Global Philanthropy Forum, in San Francisco.

Both Senator John McCain and Senator Barack Obama have been receptive to working with nonprofit groups on these issues.

Some caution, however, that increased government involvement may complicate a nonprofit group’s mission.

“We don’t want an agency that is going to over-regulate us,” says Alan J. Abramson, a professor of public and international affairs at George Mason University and a senior fellow in the nonprofit sector and philanthropy program at the Aspen Institute.

To learn more about the issues affecting nonprofit groups in the 2008 campaign, see this special section of our Web site.

(Free registration is required to view the Post article.)

Giving by Wealthy Donors to Stay Flat

Giving by wealthy donors in the United States is likely to remain strong but flat through the rest of the year, reports the Financial Times.

Giving by high-net-worth individuals dipped slightly in the first quarter but rebounded in the second quarter, according to a study by Crown Philanthropic Services, a New York company that helps donors create donor-advised funds. Officials at Crown expect giving in 2008 to keep pace with 2007.

“The ultra-high net worth is a group that doesn’t worry about market volatility day to day,” says William Hewitt, national marketing director at Crown.

However, giving by average, middle-class Americans is more likely to drop, reports the newspaper.

For more on the giving outlook, see this article from The Chronicle’s archive.

Google's Philanthropy Supports Geothermal-Energy Research

Google.org, the philanthropic arm of the search-engine company, has announced a $10-million investment in two companies and one university to research and expand the use of geothermal energy as an alternative to coal, according to a press release from the organization’s Web site.

Geothermal energy “has the potential to deliver vast quantities of power 24/7 and be captured nearly anywhere on the planet. And it would be a perfect complement to intermittent sources like solar and wind,” said Dan Reicher, director of Climate and Energy Initiatives at Google.org.

AltaRock Energy and Potter Drilling will get most of the money. The Southern Methodist University Geothermal Lab, in Dallas, will receive a $500,000 grant “to improve understanding of the size and distribution of geothermal-energy resources and to update geothermal mapping of North America.”

Detroit Group Wants Scholarships for All Public-School Graduates

The Detroit College Promise, a nonprofit group, wants to provide full college scholarships to every Detroit public-school graduate, reports the Associated Press.

The group will start a pilot program at one Detroit public school in 2009. The organization will support the scholarships with money raised from corporations and individuals and says it needs $500,000 to kick off the pilot program.

(Free registration is required to view the AP article on the Chicago Tribune Web site.)

Government and Politics Watch: IRS to Issue Instructions on Charity Tax Forms Today

The Internal Revenue Service plans to release instructions on filling out the revamped informational tax return for charities, reports Government and Politics Watch, a Chronicle online column.

Plus:

Donors who want to provide aid in areas of the world threatened by terrorism should consider forming partnerships with the U.S. government to distribute their money, a top federal official said last week.

Democrats have been urged to endorse several proposals to benefit nonprofit groups at their convention in Denver next week.

Prospecting: Debating Donor Privacy

A just-released fund-raising product is provoking debate over donor-privacy issues, says a new post in Prospecting, The Chronicle’s column with news and tips on seeking donations.

Give and Take: Disclosing Charity Information

Nonprofit groups can take many simple steps to ensure their Web sites offer information that will inspire confidence among donors and others, says a new post in Give and Take, The Chronicle’s roundup of the best blog posts in the nonprofit world.

Plus: How a blogger is covering the relief efforts in the country of Georgia.

From The Chronicle: Seeking Corporate Gifts

Read a transcript from the online discussion The Chronicle hosted today on seeking money from corporations in tough economic times.

August 18, 2008

9/11 Charitable Efforts Face Declining Donations

Charities that were founded to help victims of the September 11, 2001, terrorist attacks are facing a lack of donations that threatens to force some to close or change their way of operating, reports the Associated Press.

Such charities have been the beneficiaries of money from the American Red Cross, which distributed more than $1-billion to more than 100 organizations after the attacks. The last $40-million of that contribution was distributed in June, the news agency reports.

One organization, New York Disaster Interfaith Services, is ending its September 11 program this fall, even though more than 50 new clients a month call for services. The program’s director, Scottie Hill, says most private foundations say they are not supporting programs to help victims of the 2001 attacks, the news agency reports.

“The public at large really does think … why haven’t people moved on,” Ms. Hill said. “There’s also a population of people who have been very active in 9/11 recovery that know that this is very real.”

(Free registration is required to view the AP article on the Washington Post Web site.)

Foundation Leader Covers Charity's Debt

The founder and chief executive of the Tides Foundation provided the money needed to repay what had been stolen from the nonprofit organization Association of Community Organizations for Reform Now, or Acorn, The New York Times reports.

Drummond Pike did not confirm or deny to the Times that he had bailed out the family of his friend, Wade Rathke, the Acorn founder whose brother, Dale, had stolen nearly $1-million from the organization.

But e-mail messages between executives at Acorn, obtained by the Times, show that Mr. Pike was the anonymous donor who had volunteered to repay the organization on behalf of the Rathke family, the newspaper reports.

Wade Rathke is a member of the board of the Tides Foundation but has taken a leave of absence, the article says.

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Philanthropist Steps Up to Prevent Scholarships From Lapsing

Dozens of students who may have lost out on scholarship money promised to them by a nonprofit organization that went into receivership recently will instead get aid from a philanthropist who has stepped up to provide money to them, reports