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October 2008
October 31, 2008
Kaiser Foundation Launches News Service
The Kaiser Family Foundation is starting an independent news service to report on the nation’s health-care system.
The news service will report on new developments in the health-care system and on health-care policy debates in Washington and in state capitals.
The news service, which will be located in Washington, is meant to supplement traditional news organizations, many of which no longer have the money to do in-depth reporting on the health-care system, the foundation said.
To read more about how foundations are taking steps to invigorate journalism in the wake of its financial struggles, read this article from The Chronicle’s archive.
(A paid subscription or short-term pass is required to view the Chronicle article.)
Painting Stolen by Nazis Returned to Museum
The Minneapolis Institute of Arts has returned a painting stolen by Nazis during World War II to the family of its rightful owner, reports The Seattle Times.
It was discovered that the painting, “Smoke Over Rooftops,” by Fernand Leger, had been seized from the estate of Alphonse Kann, a Jewish art collector who had lived in Paris but fled to London when the Nazis invaded France.
Jerusalem Museum Gets Go-Ahead
Israel’s Supreme Court ruled this week that a museum in Jerusalem can be built on a site that was once a Muslim cemetery, reports the Los Angeles Times.
The museum will be built by the Simon Wiesenthal Center, in Los Angeles, and will be designed by Frank Gehry.
The project had been delayed since 2006, when construction workers unearthed bones. The court ruled that since a parking lot had previously been built on top of part of the cemetery with no objection, it would not block construction of the museum.
(Free registration is required to view this article.)
Oxfam Denounces a Controversial Supporter
The international poverty relief organization Oxfam has denounced a diamond mogul who was involved in the creation of a photo book featuring celebrities, which was designed to raise money for the charity, reports The Jewish Daily Forward.
The actresses Mary-Kate Olson, Susan Sarandon, Kate Hudson, and others agreed to be photographed for a coffee table book, the proceeds of which would benefit Oxfam.
But in the photos, the celebrities are wearing diamonds provided by Lev Leviev, a controversial billionaire who has been involved in housing construction for Jewish settlers on the West Bank. Mr. Leviev’s relationship with the Angolan government, where his diamond mines are located, has also been criticized.
Oxfam has put a statement on its Web site critical of Mr. Leviev, reports the newspaper.
From The Chronicle: Political Giving
Employees of the nation’s biggest charities and foundations steered the bulk of political gifts they made in this election cycle to Democrats, according to a new study of federal campaign-donation records conducted by The Chronicle.
Of almost $1.2-million contributed by employees of 100 organizations, 88 percent went to efforts to elect Democrats.
From The Chronicle: Economy's Effects on Charities
More than one-third of American charities say they have collected fewer dollars so far this year than in 2007, nearly double the share that saw such declines last year, according to a new survey covered by The Chronicle of Philanthropy.
Plus: Chief financial officers of nonprofit groups offer a gloomy view of the outlook for their organizations.
Give and Take: Lessons From Political Fund Raising
Can charities learn from Barack Obama’s fund-raising success, asks a new post in Give and Take, The Chronicle’s summary of the best blog posts about the nonprofit world.
Online Discussion Next Week: Talk to a Foundation CEO
Join The Chronicle for a live online discussion on Tuesday, November 4, to ask questions of Paul Brest, president of the William and Flora Hewlett Foundation.
Mr. Brest is co-author of a new book Money Well Spent, which examines how grant makers and wealthy donors can achieve the best results from their philanthropy.
He will take your questions on what foundations, donors, and grant seekers should do in this tough economy, as well as anything else you want to talk about.
The Chronicle’s online discussions are free and open to everyone. People who ask questions in advance have a better chance of getting answers.
More details will be posted soon at http://philanthropy.com/live.
October 30, 2008
Churches Cope With Drop in Donations and Investment Income
Local churches and their national organizations across the country have not been spared from the current economic crisis, as more are finding it difficult to maintain giving levels to support their operations, reports the Associated Press.
Many congregations are cutting expenses, delaying building projects, and taking other measures to respond to a decline in dollars in their collection plates. Those feeling less of a pinch are churches where tithing — the practice of giving 10 percent of one’s income to the church — is the norm, the news agency reports.
Meanwhile, national church organizations, from the Episcopalians to the Methodists, are facing major losses in their investments, which in some cases are critical to their operational budgets.
(Free registration is required to view this article in the Los Angeles Times.)
Colleges Consider Tuition Increases to Offset Endowment Losses
As college endowments shrink due to losses in the stock market, many institutions are considering increasing tuition to levels higher than planned, reports Reuters.
Some colleges have seen their endowments decline by 15 percent or more. Tuition, however, has increased much faster than inflation in recent years — jumping 175 percent since 1992, the news agency reports.
D.C. Food Bank Expands Operation
The Capital Area Food Bank, which is the main distribution center for 700 Washington-area food agencies, broke ground this week on a new warehouse that, when completed in 2010, will double the nonprofit organization’s capacity, reports The Washington Post.
The organization has raised nearly $30-million of the $36-million project cost, the newspaper reports.
(Free registration is required to view this article.)
Charities on Whose Boards Obama Served Gave to 'Controversial' Groups
Nonprofit organizations on which Democratic presidential nominee Sen. Barack Obama served as a board member in the 1990s gave money to support organizations and causes that could be considered controversial, reports Fox News.
The groups — the Annenberg Challenge and the Woods Fund of Chicago — made donations or grants to organizations that included Acorn, the voter-registration group that has come under scrutiny recently for problems with its records; Trinity United Church of Christ, whose outspoken pastor is the Rev. Jeremiah Wright; and an institute at Northwestern University run by the wife of William Ayers, the Chicago professor who was once a member of a radical group, the news organization reports. Fox examined the tax returns of these and other organizations to develop its report.
An Obama spokesman responded by saying: “This is another pathetic attempt by Fox News to distract voters from the economic challenges facing this nation by patching together tenuous links to smear Barack Obama.”
From The Chronicle: Nike Co-Founder and Wife Pledge $100-Million
Philip H. Knight, a co-founder of Nike, and his wife, Penny, announced today that they are pledging $100-million to the Oregon Health & Science University Foundation for the university’s cancer institute, The Chronicle of Philanthropy reports.
Give and Take: Disclosing Financial Woes Via Blog Post
The head of an African aid organization is using her blog to tell the world about her group’s financial woes, notes an item in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.
Prospecting: Poor Economy Shouldn't Prevent Requests for Stock Gifts
A Memphis planned-giving consultant argues that, though fewer stock gifts are all but certain in this economy, donating appreciated securities is still advantageous for many people, and fund raisers should keep promoting those gifts among certain types of donors, notes Prospecting, The Chronicle’s column of news and tips on seeking donations.
Government and Politics Watch: Seeking Advice for the Next President
With the Presidential election less than one week away, the Chronicle wants to know what nonprofit issues readers think the next occupant of the White House should make a top priority. Share your thoughts in Government and Politics Watch, The Chronicle’s online column.
October 29, 2008
Minnesota Charities Bilked in Alleged Ponzi Scheme
Minnesota charities that invested funds with a businessman now in jail on federal fraud and money-laundering charges did not exercise prudent oversight of the donated money, according to nonprofit finance experts, reports the Minneapolis Star Tribune.
Religious nonprofit groups, led by the Fidelis Foundation, in Plymouth, Minn., invested some $27-million in a company run by Tom Petters. Federal authorities alleged last month that he and others had run a massive Ponzi scheme that bilked investors out of more than $3-billion. Mr. Petters has said he is innocent of wrongdoing.
But nonprofit consultants say that the investments charities made in the company were clearly risky, because Fidelis and other groups put most of their assets into the company, and the investments were highly unconventional and offered rates of return that were too good to be true.
Joseph Smith, president of Fidelis Foundation, said his organization has retained a lawyer to attempt to recover the money.
Former Museum Head Spent Funds Imprudently, Report Says
Spending by the former director of the Smithsonian Institution’s American Indian Museum was found to be lavish and imprudent but mostly conformed to the institution’s rules, according to a report by the Smithsonian inspector general, reports The Washington Post.
The report, which was distributed to Congress yesterday, was requested by Sen. Charles E. Grassley, Republican of Iowa, after the Post reported last year that the former director, W. Richard West Jr., spent more than $250,000 in institution funds over the previous four years on premium transportation and lodging during trips he took around the world. Mr. West has agreed to reimburse the Smithsonian, said Inspector General A. Sprightley Ryan.
(Free registration is required to view this article.)
Education Takes a Back Seat in Election
Despite big infusions of philanthropic dollars by Eli Broad and Bill Gates to promote education as a high priority this election, the issue has been given short shrift by the public, the news media, and the presidential candidates, reports the Associated Press.
Education has taken a back seat to more pressing issues such as the economy, and both presidential candidates are hesitant to talk about the No Child Left Behind law, which has varying levels of support among voters, reports the news service.
(Free registration is required to view this article on the Boston Globe site.)
Former President Clinton Turns Philanthropic Focus to Asia
Bill Clinton will be expanding his charity forum, the Clinton Global Initiative, by playing host to at least 12 high-level government leaders from the Philippines, Japan, Singapore, South Korea, Thailand, and other countries at a meeting in Hong Kong in early December, reports The Wall Street Journal.
This is Mr. Clinton’s first attempt at expanding the forum beyond the United States, and he said he hopes the event can help raise awareness in Asia of the importance of civil society and nongovernmental organizations, which might benefit from the money Mr. Clinton helps raise, reports the newspaper.
Christian Science Monitor Goes Online Only
The Christian Science Monitor, an award-winning nonprofit newspaper that receives financial support from the First Church of Christ, Scientist, will cease to publish its weekday print edition and will publish online only to cut costs, reports The New York Times.
Like many other newspapers and magazines, the Monitor has decreased in circulation in recent years and will be laying off some staff members. John Yemma, The Monitor’s editor, said that moving online only will mean the news organization can keep its eight foreign bureaus open, reports the newspaper.
(Free registration is required to view this article.)
Government and Politics Watch: Oregon Ballot Measure
Charities in Oregon have joined a campaign to block approval of a state ballot measure that voters will decide on November 4, reports Government and Politics Watch, The Chronicle’s online column. The charities worry that the measure might affect state-government employees’ ability to give to charities by payroll deduction.
From The Chronicle: Concerns About Use of University Gift
T. Boone Pickens gave $63-million to Oklahoma State University athletics on Monday to allow the university to complete renovations to its football stadium, The Chronicle of Philanthropy reports. The move follows the sharp drop in the value of a prior gift he had made for that purpose, which had been invested in Mr. Pickens’s own hedge fund.
Give and Take: Generation Y Leadership in Tough Times
One way that charities can navigate through rough economic seas is to tap younger workers’ leadership skills more often, writes a management expert in an item noted in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.
Prospecting: Fund-Raising Advice Sought
Melanie Frazier, director of development at the Winnetka Community House, in Illinois, is the latest fund raiser to ask Prospecting readers for advice on a direct-mail letter.
October 28, 2008
Opera Companies and Orchestras Prepare for Troubled Times
The economic crisis has hit nonprofit opera companies and orchestras across the country as donors have less money to contribute to classical-music organizations, reports The New York Times.
Orchestras and opera companies are reacting by slashing costs (such as trimming some health-insurance benefits), cutting down on rehearsal time, and reigning in overtime for employees.
(Free registration is required to view this article)
NAACP Branch Sues Va.'s Governor Over Voter Preparation
The Virginia branch of the NAACP is suing that state’s governor, Tim Kaine, because, officials at the nonprofit group say, the state has failed to prepare for an unprecedented voter turnout in next week’s presidential election, the Associated Press reports.
The complaint was filed in U.S. District Court in Richmond, Va.
Officials at the state’s Board of Elections said in a statement that all jurisdictions have the legally required number of voting machines or voting booths and that machines and booths in some jurisdictions even exceed the required number.
For more on the elections and the nonprofit world, see The Chronicle’s special Campaign 2008 section.
(Free registration is required to view the AP article on the Baltimore Sun site.)
Salaries of Nonprofit Theater Leaders Often Exceed $100,000
Many nonprofit theater companies pay their directors annual salaries of $100,000 or more, reports Bloomberg.com.
Theater employees and board members say such salaries are necessary, given the complexity of managing their operations, the news service says.
Yet six-figure compensation, no matter how comparatively modest, can still rankle donors. “Contributors are clear that when they see salaries over $200,000, they freak out,” said Ken Berger, president of Charity Navigator, in Mahwah, N.J., which rates nonprofit groups on their growth and efficiency. “They associate charity with a vow of poverty.”
To learn more about the salaries made by chief executives of nonprofit organizations, see The Chronicle’s most recent annual compensation study.
(A paid subscription or short-term pass is required to view the Chronicle survey.)
Google Steps Up Commitment to Clean Energy
Taking a cue from its nonprofit arm, Google.org, the Internet giant Google is stepping up its investment in energy, The New York Times reports.
Eric E. Schmidt, Google’s chief executive, joined Jeffrey R. Immelt, chief executive of General Electric, in announcing that the two companies will collaborate to find ways to improve the electricity grid, with a focus on renewable-energy sources.
“We want to make money, and we want to have impact,” said Dan W. Reicher, director for climate change and energy initiatives at Google.org.
(Free registration is required to view this article.)
Oklahoma State U. Lands $63-Million Donation
Rumors that T. Boone Pickens planned to give Oklahoma State University $63-million turned out to be true, the Associated Press reports.
The money will go to athletics programs. Mr. Pickens gave the university $165-million in 2005 for athletics facilities. He ranked No. 5 on The Chronicle of Philanthropy’s list of the most-generous donors that year.
Give and Take: A Fund Raiser's 'Manifesto'
Sasha Dichter, director of business development for the Acumen Fund, a nonprofit group that provides loans to small businesses in developing countries, has posted on his blog a “manifesto” about the vital role fund raisers play in creating social change, notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.
From The Chronicle: Inspiring Board Members to Solicit Gifts
Read a transcript of today’s online discussion about inspiring board members to solicit donations, especially in times when they may be worried about their own financial security.
Plus: See our articles on board members who have been successful in raising money, as part of our annual feature on the 400 American charities that raise the most from private sources.
And mark your calendars for next week’s online discussion with Paul Brest, president of the William and Flora Hewlett Foundation. He will take questions about his new book, Money Well Spent, which he wrote with Hal Harvey, president of the ClimateWorks Foundation. The conversation will begin at noon Eastern time. More details will be posted soon.
October 27, 2008
Churches Step Up Social Services During Economy's Downturn
Churches in the metropolitan Washington area find themselves doing more than providing spiritual guidance, adding financial and foreclosure workshops and hunger relief to their services, reports The Washington Post.
The Catholic Archdiocese of Washington says that requests for food and assistance with rent and utility bills have increased threefold while similar requests at the archdiocese’s seven Catholic Charities offices rose by 25 percent.
(Free registration is required to view this article).
T. Boone Pickens May Pledge Large Gift to Oklahoma State U.
The entrepreneur and philanthropist T. Boone Pickens may soon announce a large pledge to the Oklahoma State University athletics fund, reports Tulsa World.
An anonymous source says the gift will be $63-million. According to the newspaper, Mr. Pickens has said that he “will replenish” the athletics fund due to the fact that its value has declined by 60 percent during the economic downturn.
Mr. Pickens ranked No. 8 on The Chronicle’s most recent list of the 50 most-generous donors in the United States.
Humane Society Leads Push on California Animal-Safety Measure
The efforts of the Humane Society of the United States to push Proposition 2, a California ballot measure to improve the treatment of farm animals, are examined in detail in an article in The New York Times Magazine
The proposition requires that by 2015 farm animals be able to move around freely— stand up, lie down, turn around, and fully extend their limbs.
Under the leadership of its chief executive Wayne Pacelle, the Humane Society has become, according to the magazine, “a savvy, unapologetically aggressive political player.” The organization, which has more than 10 million members, has seen its budget rise from $75-million to $127-million. It has merged with smaller animal-welfare groups and is now the wealthiest and most powerful animal-rights group in the nation, the magazine says.
Mr. Pacelle wishes to bring the animal-rights movement into the spotlight of the mainstream and is blunt about the Humane Society’s methods. He said, “We aren’t a bunch of little old ladies in tennis shoes. We have cleats on.”
For more on the Humane Society, read The Chronicle’s article.
(Free registration is required to view the Times article, and a paid subscription or short-term pass is required to view The Chronicle article).
N.C. United Way Accused of Inappropriate Accounting
The United Way of Central Carolinas may be overstating how much money actually goes to outside charities after an investigation uncovered that millions of dollars have been spent on the programs it runs, reports The Charlotte Observer.
The United Way tells donors 85 cents of every dollar goes to charity programs, but the newspaper’s review found that only 75 cents is distributed to charities in the Charlotte metropolitan area.
An accounting expert hired by the newspaper said that the record-keeping system used by the group seems to be designed in part to hide some of the administrative overhead expenses incurred at United Way.
Dan Farrell, an accounting expert who reviewed United Way’s records for the Observer, said of the United Way’s records, “Dubious accounting at best.”
The Charlotte United Way has been rocked in recent months by a controversy over the retirement benefits awarded to its leader, who resigned under pressure, along with the chairman of the organization’s board, according to The Chronicle of Philanthropy.
The new chairman of the board, Carlos Evans, said the organization was reviewing how it counted its spending to be sure it was providing an accurate picture of how much goes to local causes and looking to cut costs on administration so that more money would go to nonprofit groups in the region.
(A paid subscription or short-term pass is required to view The Chronicle article).
Judge Splits Princeton U. Lawsuit Into Two Parts
The judge presiding over a major lawsuit against Princeton University has decided to split the forthcoming trial into two parts, reports The Times of Trenton.
Members of the Robertson family sued Princeton in 2002, saying it failed to use $35-million their relatives gave to the university in 1961 for its intended purpose: to train graduate students at the Woodrow Wilson School to serve in the federal government. The gift is now worth more than $650-million, and family members want to sever ties to the university and get their money back. Princeton insists it has used the money properly.
For more on the lawsuit, read The Chronicle’s latest summary of the case.
(A paid subscription or short-term pass is required to view The Chronicle article).
From The Chronicle: Charities on the Philanthropy 400 Feel the Pain of the Economy
Donations to nonprofit groups on The Chronicle’s Philanthropy 400 list grew 4.5 percent last year, but many of the most-successful charities say they are already feeling the pinch of the economic slowdown.
United Way of America topped the list. The Salvation Army took the No. 2 spot, replacing the American Red Cross, which fell to No. 19.
To see a searchable database of the rankings, an interactive map showing where the organizations on the 400 are based, and many other features, see this special section of our Web site.
Prospecting: Navigating the Bad Economy
Fund raisers should seize the opportunity to talk to donors who are probably losing faith in their financial advisers, said experts speaking last week at the annual meeting of the National Committee on Planned Giving, notes Prospecting, The Chronicle’s column of news and tips on seeking donations.
From The Chronicle: Year-End Giving
Despite the bad economy, almost seven out of 10 adults plan to donate the same amount online as they did in the 2007 holiday season, according to highlights of a new study reported on by The Chronicle.
Online Discussion Tomorrow: Enlisting Board Members to Solicit Gifts
Enlisting board members to seek donations is always tough, but it is even harder at a time when many trustees are worried about their own financial security.
How can your organization best inspire board members to solicit donations? What are other organizations doing to build better relationships with their board members?
Join our online discussion tomorrow at noon Eastern time to get answers to these questions and more from a group of experts.
The Chronicle’s online discussions are free and open to everyone. People who ask questions in advance have a better chance of getting answers.
See What's New in The Chronicle of Philanthropy
The Chronicle posted the entire contents of its October 16 issue online this morning. To see what’s inside the new issue, read the table of contents.
October 24, 2008
Wal-Mart Foundation Leader Says Some Charities Should Fail
Wal-Mart Foundation’s president, Margaret McKenna, said at a breakfast meeting in Boston that the city has too many nonprofit groups and that instead of fighting for survival during the economic downturn, they should coordinate to find ways to continue their work, reports The Boston Herald.
“The argument that ‘our organization will go out of business’ doesn’t resonate with me,” said Ms. McKenna. What does resonate, she said, is, “Our population will not be served.”
Advocacy Group Overstated Tally of New Voters
Contrary to an earlier announcement by Acorn and an affiliated charity, called Project Vote, the real number of newly registered voters nationwide is around 450,000 — not 1.3 million, reports The New York Times.
Project Vote’s executive director, Michael Slater, said in an interview that the remainder includes registered voters who were simply changing their addresses, as well as nearly 400,000 names that were rejected by election officials for a variety of violations, including duplicate registrations, incomplete forms, and fraudulent submissions.
(Free registration is required to view this article.)
N.Y. Times Invites Bono to Write a Column
The New York Times has invited the musician and philanthropist Bono to write an Opinion-page column for the newspaper.
Kathy McKiernan, a spokeswoman for the One Campaign, a charity created by Bono, said it was unclear whether he would be paid but that if he were, the money would go to the charity.
(Free registration is required to view this article.)
Global-Health Efforts Drive Seattle Economy
Seattle businesses and nonprofit institutions have identified global health as a significant part of the city’s regional economy, reports The Seattle Post-Intelligencer.
A 2007 University of Washington study found that global health supported 44,000 jobs statewide annually, providing more than $4-billion in “business activities” and involving more than 190 nonprofit organizations — including the Bill & Melinda Gates Foundation — the newspaper said.
Nonprofit Baseball League Must Choose Between Trademark and Tradition
The small-town baseball teams of the nonprofit Cape Cod League are embroiled in a trademark dispute that is forcing them to choose between maintaining their ties to Major League Baseball and preserving their homespun heritage, reports The New York Times.
The teams have been faced with a November 1 deadline to relinquish their names or purchase team uniforms and merchandise exclusively through licensed vendors. “We found that too constrictive,” said Peter Troy, president of Chatham Athletics. “We have longstanding relationships with local vendors.’
(Free registration is required to view this article.)
Opinion: Tax-Code Changes Would Hurt Effective Charities
An anticipated Congressional review of the charitable tax deduction next year could undermine the work of some of the country’s most effective charities, says Howard Husock in an opinion article in The Wall Street Journal.
If Congress changes the tax code to favor donations to groups that can demonstrate direct service to “the poor and disadvantaged,” it could mean fewer contributions for organizations currently engaged in successful work by so-called social-enterprise groups that combine social purpose and business acumen, he writes.
Give and Take: British Charities Seek Government Bailout
As American charities suffer from the sour economy, nonprofit groups in Britain are arguably in worse shape, with charity leaders calling for the government to set up a roughly $788-million emergency fund to help struggling organizations, notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.
Prospecting: How to Promote Life-Insurance Gifts
Few charities promote insurance gifts, and most of them focus only on the transfer of existing life-insurance policies, a speaker told the audience at the annual conference of the National Committee on Planned Giving, according to a posting on Prospecting, The Chronicle’s column of news and tips on seeking donations.
Online Discussion Next Week: Inspiring Board Members to Raise Money
Enlisting board members to seek donations is always tough, but it is even harder at a time when many trustees are worried about their own financial security.
How can your organization best inspire board members to solicit donations? What are other organizations doing to build better relationships with their board members?
Join our online discussion on Tuesday, October 28, at noon Eastern time to get answers to these questions and more.
Our guest will be Carol Weisman, president of Board Builders, in St. Louis, which advises nonprofit groups on management and governance issues.
The Chronicle’s online discussions are free and open to everyone. People who ask questions in advance have a better chance of getting answers.
Get Ahead: Deadlines for Grants and Awards
You can get an early look at the deadlines for grants and awards compiled by The Chronicle. We have posted on our Web site all the application deadlines that will appear in our October 30 issue.
You will also find an updated list of conferences and workshops designed for nonprofit executives.
October 23, 2008
Gates Gives $10.4-Million for Cutting-Edge Research
The Bill & Melinda Gates Foundation, in Seattle, has announced 104 grants, of $100,000 each, awarded in hopes of sparking risk-taking and innovation in medical research, according to The Washington Post.
Applicants were asked to focus on HIV-AIDS, malaria, tuberculosis, and other infectious diseases that plague the developing world. The research will not be subject to rigorous peer review because, the foundation says, that would stifle innovation. The grant program is the first part of a planned five-year, $100-million effort by the foundation to encourage cutting-edge medical research.
In other news, Mr. Gates, the chairman of the software giant Microsoft, is reportedly starting a new company to oversee his technical research and philanthropic efforts, according to The New York Times.
(Free registration is required to view both articles.)
Salvation Army Tries 'Texting' for Gifts
The Salvation Army is going to try a new method of getting holiday-season donors to fill up its famous Red Kettles — by asking supporters to send a text message that results in $5 being charged to their cell-phone bills and earmarked for the charity, according to the Associated Press.
The program will be tested in Ohio beginning in late November, with plans to expand it nationally if it’s successful, said the organization. It is aimed at younger people who are less likely to carry cash. The charity raised $118-million from its kettle campaign nationwide last year.
Fund Managers for Charitable Endowments Stay the Course
Many charitable-endowment fund managers in the United States are opting to keep much of their assets in the market in spite of other investors’ panicked selling, industry insiders tell Reuters. These managers, who oversee about $411-billion in assets, see promising long-term possibilities in overseas markets, real estate, and private equity.
From The Chronicle: Philanthropy Enhances CEO Reputations
The philanthropists Bill Gates, Warren Buffett, and Oprah Winfrey all landed near the top of the list of CEO’s whom Americans most admire, according to a survey by the Reputation Institute, The Chronicle of Philanthropy reports.
N.J. Arts Center Receives $11-Million Gift
The New Jersey Performing Arts Center has received an $11-million gift from Betty Wold Johnson, the mother of New York Jets owner Woody Johnson, according to Newsday.
The gift, which is the largest the arts center has ever received, is earmarked to pay for maintenance of the facility.
Acorn Study Reveals Potential Problems
An internal study of the Association of Community Organizations for Reform Now, the nationwide advocacy group known as Acorn, raises a number of concerns about possible violations of federal laws, according to a report in The New York Times. The group has been the subject of criticism during the presidential race for its voter-registration practices.
The report, prepared by a lawyer for the organization, questions the group’s use of charitable donations for political efforts, money transfers among the group’s affiliates, and the potential conflicts raised by the group’s workers being employed by more than one affiliate. Acorn’s leader, Bertha Lewis, said the group is taking the report seriously and working to correct any problems.
(Free registration is required to view this article.)
McCain Says Charity Will Get Palin's Clothes
Sen. John McCain, the Republican nominee for president, has said that the wardrobe purchased for Alaska Gov. Sarah Palin after she was chosen as his running mate this summer will be donated to charity, according to a report by Fox News and the Associated Press. The campaign came under fire after the Web site Politico.com revealed this week that the Republican National Committee spent about $150,000 on the governor’s clothing, hair styling, makeup, and other “campaign accessories” in September.
Give and Take: Charity Reality Show's Bad Review
A reality TV series about the party lives of socialites at charity fund-raising events in the nation’s capital is under fire — and the show hasn’t even hit the airwaves yet, notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.
Plus: What makes a charity’s online video stick?
October 22, 2008
eBay Founder to Expand Donations, Investment Areas
Pierre Omidyar, the founder of eBay, is expanding his philanthropic investment firm, reports The Wall Street Journal.
During 2009 the Omidyar Network — which is made up of a foundation that gives donations to nonprofit companies and also a venture-capital firm that invests in companies focused on social change — will expand its staff size and add two new areas of investment.
The group will focus on “access to capital” programs, which include investments into financial services for the poor, and another project it calls “media, markets, and transparency,” which will invest in technologies that can help improve transparency in government, the news media, and other areas.
The Omidyar network will also increase the total amount of donations and investments it makes. Other foundations, such as the Bill & Melinda Gates Foundation and the Skoll Foundation, are also steadily boosting their donations, investments, and hiring despite the looming possibility of a global recession.
(A paid subscription is required to view this article.)
Charities See Spike in Number of Homeless Families
More families with children are becoming homeless as they face economic difficulties, such as home foreclosures and job losses, according to a survey conducted by USA Today.
The newspaper surveyed government and nonprofit officials in 12 of the largest cities of the United States. These authorities say the number of families seeking help has risen in Atlanta, Boston, Denver, Minneapolis, New York, Phoenix, Portland, Seattle, and Washington. In New York City, for example, 2,747 families applied for shelter in September 2008, up 30 percent from 2,087 in September 2007.
Doctors Without Borders Appeals Aid Ban
Doctors Without Borders appealed to Niger’s government yesterday to repeal its ban on the group’s activities, reports The New York Times.
The international charity had been treating 3,400 children for malnutrition in the southern part of the country when the government ordered the group to halt its programs three months ago. The Niger government has had tense relations with groups working to combat hunger there since 2005, when a food crisis killed many people and livestock in that country.
(Free registration is required to view this article.)
Consultants Offer Survival Tactics for Nonprofit Groups
Though nonprofit groups are suffering from the economy, especially those in New York that have depended on Wall Street donations, these groups can adopt several tactics to protect themselves, reports City Limits Weekly.
Nonprofit consultants in New York say that charities should brainstorm about new ways of bringing in income, diversify their fund-raising sources, consider outsourcing some tasks or jobs, consider merging with other groups to help cut costs, and look for other ways to cut expenses to balance budgets, reports the newspaper.
Washington Foundation to Award Emergency Grants
The Community Foundation of the National Capital Region, in Washington, is awarding more than $500,000 in emergency grants to 40 local social-service organizations, reports The Washington Post.
Groups receiving grants will use the money to distribute food, provide shelter and transitional housing for homeless people, and give emergency funds to families struggling to pay rent and other basic expenses. The grants will help charities protect “those people who are kind of on the edge, are falling off the cliff, and they have to be able to depend on something,” said Terri Lee Freeman, president of the foundation.
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From The Chronicle: Agenda for the Next President
As charities grapple with the economic crisis, their executives would like to see the next president take steps to promote giving and to strengthen the nonprofit work force, according to a report released today and covered by The Chronicle of Philanthropy.
Government and Politics Watch: National-Service Chief Will Step Down
David Eisner, chief executive of the Corporation for National and Community Service since 2003, said he plans to step down in mid-November, reports Government and Politics Watch, The Chronicle’s online column.
Prospecting: Economy Joke Dooms Fund-Raising Appeal
One college learned a painful lesson in misguided humor when it attempted to make light of the tanking economy and credit crunch in a recent fund-raising appeal, according to a posting on Prospecting, The Chronicle’s column of news and tips on seeking donations.
Plus: College students start a philanthropy journal.
Give and Take: Questioning Social Enterprise
While the current financial crisis has hurt fund raising, it may trigger bigger problems for social enterprise, meaning nonprofit groups that adopt business tactics or for-profit operations to further their charitable goals, writes a Pace University professor, as noted in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.
From The Chronicle: Raising Money in Uncertain Times
Last week’s live discussion on year-end appeals during uncertain times prompted so many reader questions that our guest, Bruce Flessner, was not able to get to all of the queries.
To accommodate those whose questions weren’t answered, The Chronicle enlisted several other fund-raising experts — Mal Warwick, Samantha Cohen, and Temple Elliott — to offer their advice.
To read their answers to the questions posed during the conversation, see this transcript.
Building Nonprofit Careers: Tuesday's Live Discussion
Congratulations to Banu Benson, Abby Colson, and Harrison House, each of whom won a free copy of The Nonprofit Career Guide: How to Land a Job That Makes a Difference.
Their names were chosen at random from a list of participants in Tuesday’s online discussion with author Shelly Cryer.
Ms. Cryer took questions from readers on how to build a nonprofit career. A transcript of the discussion is available.
October 21, 2008
Philanthropist Pledges $75-Million for Pet Contraceptives
Gary Michelson, a California surgeon who invented spinal implants and who started the Found Animals Foundation, has pledged more than $50-million to support research into pet contraceptives and has promised to give $25-million to anyone who can come up with a workable contraceptive for dogs and cats, The Wall Street Journal reports on a blog. Forbes magazine pegged Mr. Michelson’s fortune at $1.5-billion.
Google’s Nonprofit Arm Donates $14-Million to Fight Pandemics
Google’s foundation is giving a total of $14-million to six nonprofit groups to work on combating the threat posed by pandemics, Wired magazine reports.
Officials at the foundation said the group is giving the grants to support efforts in Southeast Asia and Africa to better identify regions prone to disease, detect new strains of illness, and respond quickly to outbreaks to contain the damage.
Charity Worker Murdered in Afghanistan by Taliban
Two gunmen shot and killed a female aid worker in Kabul yesterday as the woman walked to her organization’s office in the Kart-e-Char neighborhood, reports The Washington Post.
A Taliban spokesman said the group carried out the attack because the woman, Gayle Williams, a citizen of both Britain and South Africa, worked for a Christian aid organization, Serve Afghanistan.
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Museums Tighten Belts in Face of Economic Slump
Museum directors across the country are steeling themselves for the effects of the current economic crisis, reports The New York Times. To keep their institutions afloat, many museum officials have already taken action.
The Museum of Modern Art, in New York, instituted a temporary hiring freeze last week, plus a 10-percent cut in its general operating budget. Meanwhile, officials at the Brooklyn Museum have started to worry about a retrospective scheduled for next summer devoted to the British-Nigerian artist Yinka Shonibare since, so far, no money has been raised for the show.
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Mellon Foundation Donates $10-Million for New Plays
The Andrew W. Mellon Foundation, in New York, recently awarded $10-million to playwriting organizations and nonprofit theaters as a result of a three-year study the foundation conducted to look into specific problems playwrights and theaters encounter, The New York Times reports.
The grant maker has supported nonprofit theaters for years, but when writers and theaters alike reported having a harder time bringing new plays to fruition, the foundation decided to changes its grant-making approach.
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Acorn Board Votes to Drop Lawsuit
The board of the Association of Community Organizations for Reform Now, a national activist group in New Orleans that has been criticized by the Republican presidential ticket for its voter-registration practices, has decided to withdraw an unrelated lawsuit over claims that its founder’s brother embezzled close to $1-million from the organization, the Associated Press reports.
Two of 51 board members of the group, known as Acorn, sued for access to the group’s financial records. But the rest of the board voted this past weekend to withdraw the lawsuit, which accused Acorn founder Wade Rathke of either concealing or failing to properly report that his brother Dale had misappropriated $948,000 from the group and affiliated charitable organizations in 1999 and 2000.
Dale Rathke did not comment in the article.
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Charity Employees Said Boss Forced Them to Campaign
The president of a Los Angeles branch of the Service Employees International Union, was accused by employees of a charity he ran of routinely ordering the group’s workers to help on political campaigns, the Los Angeles Times reports. Charities are prohibited from partisan political campaigning.
Tyrone Freeman, president of the Service Employees International Union’s largest California office, denied the accusation after the Internal Revenue Service investigated in 2006. Mr. Freedman did not comment to the newspaper, and IRS officials declined to discuss the investigation. The newspaper said the charity’s tax-exempt status has remained unchanged.
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Give and Take: Philadelphia Charities Protest United Way
In Philadelphia, charity discontent with the United Way for changing how it doles out money has turned ugly, notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.
Plus: A British businessman’s $1.5-billion pledge.
Prospecting: Sparking Fund-Raising Careers
Young people won’t enter the pipeline for fund-raising jobs unless they’re introduced early to the broad range of careers available in this area, according to a posting on Prospecting, The Chronicle’s column of news and tips on seeking donations.
Plus: One charity’s efforts to enlist more women as donors.
Transcript: Building a Nonprofit Career
Read a transcript of The Chronicle’s online discussion examining how young adults can pursue nonprofit jobs. Joining us to answer questions was Shelly Cryer, author of The Nonprofit Career Guide: How to Land a Job That Makes a Difference.
October 20, 2008
White House Bypasses Law on Religious Hiring
In a newly disclosed memorandum, the Bush administration says it can override laws that forbid the federal government from awarding grants to religious groups that hire only members of their faith, reports The New York Times.
The memorandum authorized a $1.5-million grant from the Justice Department to World Vision, a group that hires only Christians, for salaries of staff members running a program that seeks to prevent troubled youngsters from joining gangs.
While the Justice Department program was legally supposed to benefit groups that do not discriminate, the White House argues that the 1993 Religious Freedom Restoration Act permits exceptions to a federal law if obeying it would impose a “substantial burden” on people’s ability to freely exercise their religion.
Several law professors told the newspaper they found the memorandum’s arguments legally dubious. But the Justice Department “stands strongly behind the opinion, which is narrowly drawn and carefully reasoned,” said Erik Ablin, an agency spokesman.
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Lobbyists and Companies Use Charity Gifts to Curry Favor With Lawmakers
Now that corporations and lobbyists are obligated to disclose charitable donations they make to the favorite causes of House and Senate members, it seems many of their gifts are politically motivated, reports The New York Times.
So far in 2008, corporations and lobbyists have given $13-million to nonprofit groups in honor of House and Senate members. Some of these donors have acknowledged that charitable giving is a way to build good will with lawmakers, whose decisions can have a huge effect on their business.
For example, the Exelon Corporation, a major nuclear-power company in Chicago, gave $25,000 to a nonprofit group founded by Rep. Joe Barton, a Texas Republican who has served nearly 25 years in the House and remains one of the most influential members of the Committee on Energy and Commerce. A spokesman for Mr. Barton did not respond to phone calls seeking information about the foundation.
Keith Ashdown, the chief investigator for Taxpayers for Common Sense, a watchdog group, says the donations are “a lobbying tactic that is not completely understood or even known by the public.”
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Mayor Bloomberg Asks Charities for a Political Favor
Staff members at several nonprofit groups that receive charitable gifts from Michael R. Bloomberg, New York’s mayor, say they have been asked to express their support for Mr. Bloomberg’s third-term bid, reports The New York Times.
The council will soon vote on a bill that would amend the city’s term limits law, allowing Mr. Bloomberg and dozens of elected officials to serve 12 years in office, rather than the current eight.
Some employees said the requests put them in an uncomfortable position, as they feel that if they do not assist the mayor, their donations from him may be endangered. During public hearings in the council last week, five nonprofit groups testified on behalf of the mayor but did not disclose that they had received money from him.
Top political figures in New York denounced Mayor Bloomberg’s efforts to enlist charities to help his political bid, calling it coercive, the newspaper reports in a follow-up article
Senior officials in the Bloomberg administration said that the groups whose support the mayor is seeking have not been offered a quid pro quo or been threatened.
Mr. Bloomberg has long been a major philanthropist and last year ranked No. 7 on The Chronicle’s list of America’s top donors.
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Charity Leader Says She Was Fired After Uncovering Wrongdoing
Nancy Schmitz, former director of Upper Des Moines Opportunity, is suing the Iowa charity because she says she was fired after revealing financial misconduct there, reports The Des Moines Register.
Ms. Schmitz says that shortly after she began her job with the charity, she found that the group’s former director had used the organization’s funds to make unauthorized loans to individuals and businesses. The director of the group died unexpectedly in 2006, and Ms. Schmitz was asked to take over his duties.
The charity is not set up to make loans. Ms. Schmitz says she was fired without explanation two weeks after telling the group’s board about the loans. A recent investigation by the state auditor’s office found that federal grant money may have been used to make t