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.

RSS / Atom

December 2008

December 30, 2008

Many NBA Players' Charities Are Troubled, Study Finds

An analysis of hundreds of tax documents filed by NBA players’ charities has found that many of these groups are poorly managed and inefficient, reports The Salt Lake Tribune.

The newspaper studied documents from 89 such charities. On average, the Tribune said, the charities “put just 51 cents of each dollar it spent toward charitable programs, well below the 65 cents most philanthropic watchdog groups view as acceptable.”

The newspaper also found that some of these charities lose money on fund-raising events, that up to one fourth fail to adequately document finances, and that a third of the charities are financed only by the founder.

Opinion: Were Grant Makers the Key to Madoff's Scheme?

Investments from charitable foundations may have been key in helping Bernard Madoff sustain his Ponzi investment scheme for so many years, writes a columnist in Fortune magazine.

Mitchell Zuckoff, professor of journalism at Boston University and the author of Ponzi’s Scheme: The True Story of a Financial Legend, says most Ponzi deals collapse rather quickly, as withdrawals from investors exceed money coming in.

But because most charitable foundations spend no more than the federally required 5 percent of their funds each year, Mr. Zucoff suggests, Mr. Madoff could count on foundations not to withdraw large amounts from his fund, ensuring that there wouldn’t be a “run on the bank” that would cause his investment structure to collapse.

Churches Face Foreclosures

In the current mortgage crisis, churches seem to be increasingly falling behind or defaulting on loans, going into foreclosure, or going bankrupt, reports The Wall Street Journal.

Churches have historically been good credit risks, according to lenders, but with donations falling by as much as 15 percent in some places, dwindling congregations, and churches that have borrowed aggressively to build or expand in recent years, that may be changing, reports the newspaper.

Grant to Philadelphia Orchestra Prompts Controversy

Some board members of the Philadelphia Cultural Fund are upset that the city’s mayor, Michael Nutter, decided to provide a $250,000 unscheduled grant from their organization to the Philadelphia Orchestra without the cultural fund’s advice or standard review process, reports the Philadelphia Inquirer.

The board has yet to take action, fearing a negative reaction from the administration. Gary Steuer, the city’s chief cultural officer, said the mayor’s decision was a “lesson learned” and that the emergency grant was a unique situation. “I don’t think it’s something that would become common practice,” he said.

Small New York Homeless Shelters Chafe at New Rules

Small homeless shelters in New York may begin closing due to changes in city rules, reports The New York Times.

Last September, city officials decided to stop referring homeless men and women to shelters that were open fewer than five nights a week, which caused about 20 of them to close. This month, city officials announced that as of June, homeless shelters would need to serve hot meals and provide transportation to keep receiving money from the city.

Some managers of small shelters say they are frustrated by the new rules and that it is impossible in some cases to comply with them without adding costly staff or equipment. A city official who oversees shelter services told the Times that the new rules are an attempt to make the system more efficient.

(Free registration is required to view this article.)

Opinion: Preserving Arts Organizations

Two arts and cultural leaders weigh in on how the federal government could help arts and cultural organizations during these dark economic days.

In an opinion article in The Washington Post, Michael Kaiser, president of the John F. Kennedy Center for the Performing Arts, in Washington, suggests Congress pass legislation to provide arts groups with emergency grants and allow immediate tax breaks for corporate giving to arts organizations. In addition, he urges government officials to take action to prompt foundations to spend more than the minimum 5 percent of their endowments now required by federal law.

William R. Ferris, former chairman of the National Endowment for the Humanities, writes in an article in The New York Times that President-elect Obama should create a cabinet-level position, a secretary of culture, to provide cohesive leadership for groups such as the Corporation for Public Broadcasting, the Library of Congress, and the Smithsonian Institution. The secretary would also make sure those types of groups get the financing from the federal government that they deserve, Mr. Ferris writes.

(Free registration is required to view both articles.)

Give and Take: Should Donors Aid Victims of the Madoff Scam?

Should donors aid nonprofit victims of Ponzi schemes like the Madoff investment scandal? That is the topic of a new post in Give & Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Plus:

A new report’s criticism of how the Bill & Melinda Gates Foundation fights diseases is being debated.

Tips for new philanthropists.

Prospecting: Year-Round Giving

Many people do all their giving in a few frenzied days toward the end of December, but what steps can charities take to encourage donors to think about giving all year round? That is a topic discussed in a recent post on Prospecting, The Chronicle’s online fund-raising column.

Plus: According to a new survey, fund raisers say they are somewhat confident about meeting year-end fund-contribution goals.

Online Discussion Next Week: 2009 Outlook

What will 2009 mean for your charity’s fund-raising, grant-seeking, and budgeting efforts? What will the economic meltdown and shifting demographics mean to your bottom line?

Join us on January 6 at noon for an online discussion with experts from New York University’s Heyman Center for Philanthropy and Fundraising and the Center on Philanthropy at Indiana University. They will discuss economic trends, changes in Washington, donor demographics, and other key issues that are relevant to your organization’s operations in the new year.

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

An archive of past discussions is available at http://philanthropy.com/live.

From The Chronicle: Economy Prompts a Change in Gift-Annuity Policies

Responding to the changing situation caused by the economy, a key nonprofit umbrella group today recommended that charities lower the amount of money that donors receive in exchange for creating charitable gift annuities, The Chronicle of Philanthropy reports.

Holiday Notice

This is the last issue of Philanthropy Today in 2008. We’ll be back in your mailbox on Friday, January 2. We wish all of our readers a happy new year.

December 29, 2008

Madoff Scandal Arouses New Legal Issues and Other Updates

The Madoff investment scandal continues to ripple throughout the world of philanthropy — and board members could be held liable for failing to do due diligence, reports The Chronicle of Philanthropy.

Following is a roundup of other key developments reported elsewhere online:

New York University is suing a hedge-fund executive associated with Bernard L. Madoff, the investor accused of running a $50-billion Ponzi scheme, reports Reuters. The university is suing Ezra Merkin, who heads the Ariel Fund, which invested with Mr. Madoff. NYU lost $24-million.

At a meeting last week, 35 of the nation’s largest grant makers that support Jewish causes have pledged to provide financial and legal assistance to affected groups, reports The Boston Globe. Mark Charendoff, president of the Jewish Funders Network, which represents grant makers that focus on Jewish charities, told the newspaper that he estimates the losses incurred by Jewish organizations that invested with Mr. Madoff to total $2.5-billion, a number he says is sure to rise.

The Madoff scandal has made donors more wary of giving to groups that might not have handled donations well by investing them in a fund that turned out to be a scam, notes The Wall Street Journal. The newspaper also reports that the UJA-Federation of New York managed to avoid the Madoff scandal because of its conflict-of-interest policy. Because Mr. Madoff was an executive-council member of its Wall Street & Finance Division, the organization did not allow him to invest the organization’s money. Plus: An opinion article published by the Journal says that the Madoff scandal imparts a stinging lesson to Jewish philanthropy about the danger of relying too much on the donations of a very wealthy few.

(Free registration is required to view the Boston Globe article, and a paid subscription is required to view the Wall Street Journal news articles. The Journal opinion piece is free.)

State Officials Say Fund Raisers Pocketed Most Charitable Proceeds

Attorneys general in California and Massachusetts have released reports showing that professional solicitors pocketed much of the money they raised.

The California report says that professional solictors sent less than half of the money raised in the state in 2007 to charity and kept the remainder, reports the Associated Press.

The report says that 44 percent of the $162-million raised was actually given to charity. Professional solicitorsreceive a percentage from each donation or a flat fee. In some instances, fund-raising costs exceeded the amount raised for charity.

The state attorney general’s office in Massachusetts says almost two-thirds of all charitable donations collected in Massachusetts were directed to professional solicitors instead of benefiting charities, reports The Boston Globe.

Out of $284.5-million raised in 621 campaigns, $100.8-million went to the charities, according to the report, which is conducted annually.

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

Rescue Plan Devised for Los Angeles Museum

The Museum of Contemporary Art in Los Angeles has adopted a new financial plan that will allow it to avoid a merger and a move to another location, report The Wall Street Journal and the Los Angeles Times.

The museum is seeking $75-million to rebuild its endowment and support five years of operating expenses. The museum will cut its annual budget and replace its longtime director Jeremy Strick with a former chancellor of the University of California at Los Angeles, Charles Young, for the interim. The museum plans to appoint someone who will serve as both director and chief executive rather than making two appointments as it has done in the past.

The museum’s rescue plan was sparked by the philanthropist Eli Broad, a longtime donor to the museum, who has pledged $30-million to the institution. Museum officials say that the institution has received pledges of more than $20-million from board members and that it plans to raise an additional $50-million through a campaign.

(A paid subscription is required to view the Wall Street Journal article.)

British Treasury to Consider Tax Scheme to Benefit Charity

The British treasury is considering a tax scheme created by a Nobel Prize-winning economist that encourages wealthy people to donate an extra $7.28-billion dollars to charity, reports the Financial Times.

The plan, devised by Sir James Mirrlees and written with Renu Mehta, founder of the Fortune Forum, a networking organization for the very rich, pushes for a 50 percent tax break on donations toward the millennium development goals established by the United Nations. The cost of the tax break would be matched by the government’s overseas-aid budget, thereby doubling the amount directed toward donations. Donors would be able to say which development sector their money will support.

The plan hopes to boost donations from the extremely wealthy, who only donate on average 0.8 per cent of their income to charity, compared with 3 percent donated by the poorest fifth.

(Free registration is required to view this article.)

Retailers Plan to Continue Giving

Despite the economic turmoil, retailers say they have no plans to decrease their giving, and some say they plan to give even more, reports USA Today

Although retailers are experiencing double-digit percentage declines in sales, charitable giving is crucial to remaining competitive, experts say. According to a survey by Opinion Research for Cone, 77 percent of 1,070 consumers polled who are deciding between two products priced the same and of similar quality will pick the one that supports a cause.

Read the Chronicle’s annual survey on corporate giving.

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

Opinion: Business Does Have a Place in Charity

Rather than frowning on hefty pay packages for charity executives or denouncing the use of business practices, charities should be more open-minded in embracing them, writes Nicholas Kristof in an opinion article in The New York Times.

Mr. Kristof notes that a controversial book by Dan Pallotta, a former fund raiser, entitled Uncharitable: How Restraints on Nonprofits Undermine Their Potential, argues that the charity world will not achieve real progress unless it revises its stance on incorporating business tools into its operations.

For more on Mr. Pallotta, read The Chronicle’s coverage of his book.

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

From The Chronicle: IRS Releases Final Version of Charity Disclosure Form

The Internal Revenue Service has released the final Form 990 and related schedules, more than 18 months after the first draft of the revised federal financial-disclosures forms were submitted for public comment, The Chronicle of Philanthropy reports.

From The Chronicle: California Foundations Announce $30-Million Plan to Aid Minorities

Nine wealthy California foundations have pledged to distribute at least $30-million during the next two to three years to aid needy members of minority groups, a move that is meant to quell critics who argue that the grant makers fail to provide adequate assistance to blacks, Latinos, and members of other racial and ethnic minorities, The Chronicle of Philanthropy reports.

From The Chronicle: Requests for Food Aid Soar

Requests for emergency food aid have escalated rapidly in the past year, according to a new survey of food banks whose results were reported by The Chronicle of Philanthropy.

From The Chronicle: CEO Pay Controversy

A controversy over leadership and compensation at the United Way of Central Carolinas has deepened as a new investigation shows that the head of the organization sought to increase her pension benefits significantly, ignored a lawyer’s concerns about possible tax-law violations, and made efforts to keep the $2.1-million pension deal confidential, The Chronicle of Philanthropy reports.

Online Discussion Next Week: The 2008 Outlook

What will 2009 mean for your charity’s fund-raising, grant-seeking, and budgeting efforts? What will the economic meltdown and shifting demographics mean to your bottom line?

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

An archive of past discussions is available at http://philanthropy.com/live.

December 22, 2008

Major Foundation to Close, While Charities Reel From Investor Scandal

The Picower Foundation, in Palm Beach, Fla., with assets of $1-billion, announced that it will cease operating because its money was managed by Bernard L. Madoff, the investor accused in a major Ponzi scheme that continues to reverberate through the business and charity worlds, reports The New York Times.

It follows several other foundations that announced planned closures due to losses from the investment scheme. The fallout from the scandal, which reports have said ended with the loss of $50-billion in investors’ money, continues to ripple throughout philanthropy. Among the latest stories from around the country:

The Boston Globe reports that Jewish community leaders are saying the effects of Mr. Madoff’s scheme, coupled with the loss of wealth due to the recession, may force charities to close or merge. One Boston-area rabbi tells the Globe that people are just starting to consider the “historic setback” the scandal will prove to Jewish organizations.

Another Globe article examines the trust — which some have called “blind” — that charities and investors put in Mr. Madoff.

Two more institutions of higher education are reporting losses due to the Ponzi scheme. Those include Tufts University, whose $20-million loss is reported on in The Boston Globe, and the New York Law School, as reported on by Reuters.

The New York Law School is suing its investment firm, saying the firm “recklessly” allowed the bulk of the school’s money to be managed by Mr. Madoff.

In Washington, personal bank accounts and charitable endowments may have taken a hit of several hundred million dollars to more than $1-billion dollars. The Washington Post is tracking the details.

The story of how the family behind the JEHT Foundation, which announced its planned closure because of losses in the scheme, came to know and work with Mr. Madoff is recounted in an Associated Press report.

In California, investment advisers who encouraged their clients to work with Mr. Madoff are now dealing with the consequences, including the demise of some of their own family foundations, reports the Los Angeles Times.

An article in The Wall Street Journal tracks Mr. Madoff’s history as an investor and describes the mystery that surrounded him. The Journal also has a feature highlighting victims of the Ponzi scheme, from individual investors to nonprofit institutions.

(Free registration is required to view the New York Times, Boston Globe, Washington Post, and Los Angeles Times articles and the AP article on the Washington Post site.)

Holiday Season Brings Out Charitable Acts

As the year-end giving season reaches a critical period, news agencies from around the world are reporting on charitable gift giving and other holiday stories of philanthropy.

The popularity of charity gift cards is the focus of two reports, in The Washington Post and the Associated Press.

Despite the recession, some companies have not scaled back their charitable giving this season, and several are featured in a column by the Washington Post business writer Steven Pearlstein.

Companies that have forgone the traditional holiday party so that money could be given to charity instead are the focus of stories in USA Today and The Washington Post.

In England, fund raisers planning this year’s gala events are lowering expectations, reports The Financial Times. In at least one case, a lack of corporate sponsorship led to the British Red Cross canceling its Christmas ball fund raiser.

Meanwhile, the New York Times columnist Nicholas D. Kristof compares European and American charitable giving in his latest column, as well as the charitable acts of this country’s conservatives and liberals. He calls on liberals — which research has shown tend to be stingier in the charity department — to “redeem yourselves” this season.

And in Florida, an unstingy act: For the third year in a row, an anonymous donor left a coin worth nearly $1,000 in a Salvation Army kettle, reports All Things Considered on National Public Radio.

(Free registration is required to view the Washington Post, Financial Times, and New York Times articles and the AP article on the Washington Post site.)

Harvard's Endowment Managers Earned Nearly $27-Million in Fiscal 2008

Harvard University’s six top endowment managers earned a combined $26.8-million in the year that ended in June 2008, a 15-percent raise that university officials say rewarded the employees for a strong performance, reports The Wall Street Journal.

News of the raises, earned in a period when Harvard’s endowment earned a return of 8.6 percent, while the Standard & Poor’s index dropped 13 percent, comes on the heels of university budget cuts and an $8-billion drop in the school’s endowment since June 30.

Nonprofit Hospitals Face Debt Trouble

The growing inability of patients to pay Medicaid bills, operating losses, and other financial factors are putting nonprofit health organizations at greater risk of defaulting on their loans, reports The Wall Street Journal.

These factors, combined with a complex system of issuing debt, have created a situation leading to the downgrading of the credit rating of many nonprofit hospital systems in recent months, the newspaper reports. One observer tells the Journal that this may result in nonprofit hospital systems defaulting in the first or second quarter of 2009.

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

Renovated Museums Face Financial Crunch as They Reopen

Museums around the country that are opening newly renovated spaces are facing financial challenges that come with an increased operating budget and a decrease in revenue, reports The New York Times.

Among those facing tough times: The Newseum, in Washington, which has seen a 25-percent drop in the value of its endowment, followed by 20 employees accepting buyouts. Meanwhile, the Brooklyn Children’s Museum, in New York, has seen membership increase along with its budget. Still, its president is not taking the good news for granted.

“Even with all the planning in the world,” Carol Enseki, the museum’s president, tells the Times, “you can’t anticipate situations like what we’re facing now.”

Gates Foundation Gives $7-Million for Internet-Access Project

The Bill & Melinda Gates Foundation has given nearly $7-million to an effort to improve Internet access at public libraries in seven states, reports the Associated Press.

Connected Nation and the American Library Association’s Office for Information Technology will run the project in Arkansas, California, Kansas, Massachusetts, New York, Texas, and Virginia.

Prospecting: Are Charities Making Mistakes in Cutting Fund-Raising Costs?

Many fund raisers are facing pressure to cut costs as donations drop. But a direct-mail consultant warns that cost-cutting mania can lead to bad decisions, in a new post on Prospecting, The Chronicle’s online fund-raising column.

Plus, a look at the high-tech interactive approaches newspapers are taking to the long tradition of seeking holiday gifts for charities.

Government and Politics Watch: Ideas for President-elect Obama

The National Council of Nonprofits, in Washington, today asked President-elect Barack Obama’s transition team to take steps to help nonprofit organizations weather the widening recession, reports Government and Politics Watch, a Chronicle online column.

From The Chronicle: Holiday Galas

Bob Levey, a Chronicle columnist, visited a long-running holiday fund-raising benefit to learn how it managed to thrive even with the recession. You can see what he learned in his latest article.

Mark Your Calendar: An Online Discussion About the Outlook for Philanthropy

Mark your calendar for our next online discussion about the outlook for philanthropy in 2009. The discussion will take place January 6 at noon Eastern time.

See http://philanthropy.com/live for an archive of past discussions.

From The Chronicle: Year-End Giving Update

Charities have chalked up mixed results as they seek donations in the final weeks of the year, reports The Chronicle of Philanthropy

Thirty-seven of the 66 charities The Chronicle contacted said that contributions had dropped this year. The remaining 29 said contributions were flat or had risen.

Even organizations that have received big increases are worried, however, because they say demand is increasing fast and they are facing cuts in government aid.

The Chronicle will continue to report on year-end results in the coming days; feel free to send your results to editor@philanthropy.com.

Holiday Schedule

Philanthropy Today will not send you another e-mail message again until December 29. We’ll continue to post major developments on our site during this holiday hiatus, however.

December 19, 2008

Donations to Colleges Falter Due to the Recession, Study Finds

Donations to colleges dropped in 2008, and predictions are that 2009 will bring more of the same, according to a new survey of chief financial officers by The Chronicle of Higher Education.

More than half of the 189 college officials who provided data said their annual-gift receipts are down from last year, with 17 percent saying such gifts were down more than 10 percent. The Chronicle of Higher Education worked with Moody’s Investor’s Service to conduct the study over the past two weeks.

Still, three-quarters of respondents say they have no plans to lower their annual or overall fund-raising goals.

The special report includes additional stories and interactive features, including an article about some colleges that continue to receive major gifts.

To learn more about how year-end fund raising is faring at other institutions, see The Chronicle of Philanthropy’s most-recent update.

(A paid subscription or short-term pass is required to view the Chronicle of Higher Education articles.)

Caroline Kennedy's Ties to a Charity Promote Controversy Over Disclosure Issues

A Democratic New York state assemblyman is questioning the decision by a New York City board to exempt a charity partially run by Caroline Kennedy from a requirement to disclose its finances as other charities do, reports the Associated Press

Ms. Kennedy has said she hopes to be considered for the soon-to-be vacant U.S. Senate seat that is currently held by Hillary Rodham Clinton. Ms. Kennedy is vice chair of the Fund for Public Schools, which raises private donations to help the New York City public school system. Disclosure laws for such entities were designed to make sure such charities do not become shadow agencies of the governments they support, the newspaper notes.

A spokesman for Ms. Kennedy tells the newspaper: “We are confident that the Fund for Public Schools has complied with both the letter and the spirit of the law.”

(Free registration is required to view this article in the New York Times.)

Charities Continue to Assess Losses in Investment Scandal

Nonprofit organizations affected by the Ponzi scheme allegedly undertaken by the investor Bernard L. Madoff continue to evaluate the financial losses, The Chronicle of Philanthropy reports.

Among recent articles elsewhere online:

The Fair Food Foundation, which works to improve food access and urban agriculture in Detroit and San Francisco, plans to close because Mr. Madoff handled its money, reports a New York Times blog. The organization began in 2007 with an annual budget of $12- to $20-million, the paper reports.

Among those institutions deeply affected by the alleged scheme was Yeshiva University, and an article in The Chronicle of Higher Education examines what college trustees can learn from the scandal. Mr. Madoff was a trustee and big donor to Yeshiva.

Also, a Boston family foundation considers how it will continue supporting the charities that have depended on it, after a $145-million loss due to the alleged scam, reports The Boston Globe.

In the Twin Cities, local charities were also affected, reports the Star Tribune.

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

Why Ranking Charities Is So Tricky

While many donors rely on rankings of charities to decide where to give, many of the evaluation efforts conducted by watchdog groups miss a big angle — whether a charity is successful in accomplishing its mission, reports The Wall Street Journal.

What’s more, many of the systems are set up in a way that encourages charities to manipulate them, especially as they seek to demonstrate that they spend little on fund raising and other overhead and put money into charitable programs.

Carl Bialik, the reporter of the Journal article, also blogs about his column topic here and offers additional resources.

See this recent Chronicle article, Making a Measurable Difference, on a new evaluation effort.

Los Angeles Museum Moves Closer to Approving Rescue Offer

Trustees of the financially strapped Museum of Contemporary Art in Los Angeles appear poised to accept a $30-million bailout offer from the philanthropist Eli Broad rather than accept a merger or takeover by the Los Angeles County Museum of Art, reports the Los Angeles Times.

The newspaper, citing an unnamed member of the board, also reports that Jeremy Strick, director of the contemporary-art museum, resigned in a “tearful” meeting, but the museum denies this report.

(Free registration is required to view this article.)

Washington Museum Receives Two Big Commitments

The Phillips Collection, a Washington art museum, has received $23.5-million in gifts to increase its endowment over the course of the past nine months, reports The Washington Post.

The Sherman Fairchild Foundation, in Chevy Chase, Md., donated $10-million of the total, while a trustee of the institution who sought to remain anonymous made a gift of $8-million.

The museum’s endowment has hovered around $18-million but dropped to $14.5-million during the recent market downturn, the newspaper says. With the latest donations, the endowment stands at $38-million.

Even so, the organization says it has faced the same budget troubles the recession is causing other arts groups, and it has made numerous cutbacks.

(Free registration is required to view this article.)

Obituary: Paul Weyrich, Co-Founder of Influential Think Tank

Paul M. Weyrich, 66, who co-founded the conservative Heritage Foundation and was credited with coining the term “moral majority” and bringing new ideas to the Republican party, died this week in Virginia, reports The Washington Post.

Mr. Weyrich’s Free Congress Foundation, the newspaper reports, was one of the earliest users of grass-roots direct-mail fund raising for conservative politicians and social causes.

(Free registration is required to view this article.)

From The Chronicle: Growing Anxiety Among Fund Raisers

Fund raisers at charities are increasingly less confident about their ability to collect donations as the economy worsens, according a new poll whose results are reported by The Chronicle of Philanthropy.

December 18, 2008

Clinton Reveals Donor List

Former President Bill Clinton disclosed the names of more than 200,000 donors to his nonprofit organization, a move that was negotiated with President-elect Barack Obama to allay concerns about potential conflicts of interest with Sen. Hillary Clinton’s nomination as secretary of state, reports The New York Times.

According to a listing of donors posted on the Web site of the William J. Clinton Foundation, a variety of foreign governments, companies, and individuals have contributed multimillion-dollar gifts. The governments of Saudi Arabia and Norway, the Dubai Foundation, and business moguls such as Bill Gates, Stephen Bing, Haim Saban, and Robert L. Johnson are among the organization’s biggest financial supporters over the past decade.

(Free registration is required to view this article.)

GE Foundation Refocuses Giving on Basic Needs

The General Electric Foundation will announce today that, due to the recession, it is shifting its charitable focus next year and redirecting $20-million to help with basic needs such as food, shelter, and clothing, a 300 percent increase from the $5-million it directed to that area in 2008, reports The Wall Street Journal.

The foundation has requested that its $10.5-million gift to the United Way in 2009 go to homeless shelters and other charities that meet basic needs. “With the credit crunch and recession in full swing, people are not necessarily worrying about putting their kids in college in 20 years but how they are going to pay rent next month,” said Bob Corcoran, president of the GE Foundation and vice president of corporate citizenship at GE.

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

Getty's Endowment Drops 25%

The Getty Trust’s chief executive, James N. Wood, sent a memo to “All Getty Staff” warning that the institution is facing “a difficult period ahead” because the value of its endowment, which totaled nearly $6-billion as of the fiscal year ending June 30, 2008, has since declined “roughly 25 percent,” reports the Los Angeles Times.

Mr. Wood wrote that the drop requires Getty to “significantly reduce spending” in its fiscal 2010 budget, “which will have an impact on staffing, programming, and operations.” He said he has asked managers to freeze all hiring.

(Free registration is required to view this article.)

Nonprofit Hospitals Could Face New Rules in 2009

Aides to Sen. Charles E. Grassley say that the Iowa politician is considering proposing legislation early in 2009 that would require nonprofit hospitals to spend a minimum amount on free care for the needy and set restrictions on executive compensation and conflicts of interest, reports The Wall Street Journal.

Penalties imposed under the new legislation for hospitals that failed to meet the new standards could include taxes, fines, and the loss of their tax-exempt status, according to the newspaper.

Broad Gives $25-Million for Stem-Cell Research, Offers Aid to Museum

The Eli and Edythe Broad Foundation will donate $25-million to the University of California San Francisco for a laboratory that will bring together top scientists in the field of stem-cell research, reports the Los Angeles Times.

Following the announcement, Mr. Broad responded sharply to the Los Angeles County Museum of Art’s proposal to merge with the city’s Museum of Contemporary Art, reports the newspaper. “The answer is like in the movie: ‘Show us the money,’” said Mr. Broad, who has offered his own $30-million bailout proposal for the contemporary-arts museum.

(Free registration is required to view both articles.)

Aftershocks of Investment Scandal Continue

The Fair Food Foundation, a charity established less than a year ago to improve access to food and to support urban agriculture in Detroit and the San Francisco Bay area, announced today that it is closing due to losses linked to Bernard L. Madoff, the investment manager who is alleged to have run a $50-billion Ponzi scheme, reports The New York Times.

In the aftermath of the arrest of Mr. Madoff, who has been accused of defrauding universities, charities, and other investors of tens of billions of dollars, experts on university-board governance are beginning to question why no one saw through the scam and are thinking critically about how to prevent such a scam from happening again, reports The Chronicle of Higher Education.

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

Newspaper Editor Picked to Lead News Charity

USA Today editor, Ken Paulson, is leaving the newspaper in February to become the president and chief operating officer of the nonprofit Newseum and the Freedom Forum, reports the Associated Press.

The Freedom Forum promotes free speech and provides most of the support for the Newseum, a Washington museum about journalism and the news.

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

Celebrities Team Up to Raise Money and Awareness for Congo

The actor Ben Affleck and musician Mick Jagger have created a media campaign to raise money for and increase awareness of people affected by recent fighting in the Democratic Republic of Congo, reports CNN.

Mr. Affleck announced Wednesday the release of a short film that he directed called “Gimme Shelter.” He hopes the film, which was shot in the North Kivu region of Congo, where thousands have been displaced from fighting, will raise $23-million in humanitarian assistance for the country.

“We made this film in order to focus attention on the humanitarian crisis in the DRC at a time when too much of the world is indifferent or looking the other way,” Mr. Affleck said in a statement. “The suffering and loss we’ve all seen firsthand is staggering — it is beyond belief.”

Give and Take: Blogging for Job Offers

A San Francisco native and 2007 Massachusetts Institute of Technology graduate has launched a blog that will chronicle his efforts to find a job in marketing at a nonprofit group in the Bay Area, reports Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Prospecting: Wall Street Giving Continues

Despite the economic meltdown, the United Jewish Appeal-Federation of Jewish Philanthropies of New York raised what officials called a “staggering” $18.8-million at the charity’s annual Wall Street Dinner, reports Prospecting, The Chronicle’s online fund-raising column.

From The Chronicle: Small Gains in Corporate Giving

Giving by U.S. companies increased only slightly between 2006 and 2007, to just under $11-billion in 2007, compared with $10.2-billion the previous year, according to a new report by the Conference Board, in New York, The Chronicle of Philanthropy reports.

December 17, 2008

Yale Endowment Drops 25%

Yale University estimates that its endowment has dropped by 25 percent since June 30, losses that the institution says will result in budget cuts, according to The Wall Street Journal.

The university, which holds the second-largest endowment in higher education (after Harvard), has in recent years been heavily invested in hedge funds and other untraditional avenues. It reports that its endowment is currently about $17-billion, down from $22.9-billion at the end of June. Yale’s president, Richard C. Levin, said the New Haven, Conn., university would respond to the losses by slowing campus expansion and salary growth but would not trim financial aid.

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

Kentucky Forms Grant Makers Commission

The governor of Kentucky signed an executive order December 15 asking the state’s 850 private foundations to collaborate on efforts to support early-childhood education and children’s health programs, according to The Louisville Courier-Journal.

Gov. Steve Beshear’s order created a 29-member Commission on Philanthropy to help direct some of the $120-million spent each year by Kentucky grant makers. The move is seen as an effort to help deal with the state’s $456-million budget shortfall this year.

Toys for Tots Reports High Demand, Low Giving

The recession is having a direct impact on efforts by the charity Toys for Tots to gather donated gifts to give to needy children this holiday season, according to The Washington Post. The more than 60-year-old charity, run by the Marine Corps, is seeing increasing demand for toys from several major cities, including Atlanta, Miami, and Philadelphia, say officials, but donations are down.

In Philadelphia, the local Toy for Tots chapter has announced an “emergency toy rush” campaign to increase donations, according to The Philadelphia Inquirer.

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

Update: L.A. County Museum Proposes Merger

The Los Angeles County Museum of Art has offered to merge with the struggling Museum of Contemporary Art, according to the Los Angeles Times.

The Museum of Contemporary Art is also considering an offer of $30-million from Eli Broad, the billionaire philanthropist who chaired its founding board in the late 1970s. (Mr. Broad is a permanent trustee of both organizations.) The contemporary art museum’s board has reached no decision on either offer and is slated to meet tomorrow.

Meanwhile, The New York Times reports that the Museum of Contemporary Art’s director, Jeremy Strick, is negotiating the terms of his resignation with the institution’s board.

(Free registration is required to view both articles.)

Education Groups 'Ecstatic' About $10-Billion Obama Pledge

Early-childhood-education advocates are expressing excitement over President-elect Barack Obama’s plans to commit $10-billion to their cause, according to The New York Times. The pledge would be the largest new federal push for young children’s education since Head Start began in 1965.

Mr. Obama’s pick of Arne Duncan, the Chicago schools superintendent who is a strong supporter of early-childhood education, as his intended Secretary of Education, has also raised hopes among advocates. “People are absolutely ecstatic,” said Cornelia Grumman, executive director of the First Five Years Fund, an advocacy group. “Some people seem to think the Great Society is upon us again.”

(Free registration is required to view this article.)

LeBron James Foundation Scales Back

A foundation started by the professional basketball player LeBron James has announced it is cutting its staff and scaling back its charitable activities, according to The Cleveland Plain Dealer.

The LeBron James Family Foundation, started in 2004 by the Cleveland Cavaliers star, currently operates with a staff of six. It posted net losses through 2006, but its fortunes seemed to be improving recently with the addition of corporate partners. The organization’s mission is to develop family events and to support education and physical-fitness programs.

European Union Plans to Open Museum

The European Parliament has announced plans to open a museum that will showcase the continent’s history from prehistoric to contemporary times, according to Reuters.

The House of European History, slated to open in Brussels in 2014, will be “a very modest, very cheap project,” according to Miguel Angel Martinez Martinez, a Parliament member from Spain. “There is not enough awareness among young people on what Europe is and how it’s developed.”

Give and Take: A Nonprofit Double Standard

The financial fraud allegedly perpetrated by the philanthropist and financier Bernard Madoff exposes an uncomfortable double standard in the nonprofit world, writes a fund-raising consultant cited in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Prospecting: Working Together to Raise Funds

A Houston charity offers a rare exception to the usual hesitation groups have about collaborating to raise money, reports Prospecting, The Chronicle’s online fund-raising column.

From The Chronicle: Coalition Considers Federal Nonprofit Loan Fund

Independent Sector, a coalition of charities and foundations, said Wednesday it is working on a proposal for a government revolving-loan fund to help cash-strapped nonprofit groups respond to growing caseloads as the economic crisis takes its toll, The Chronicle of Philanthropy reports.

From The Chronicle: Investment Scandal Ripples Through Charity World

Charities on Tuesday continued to assess their potential losses in the alleged fraud perpetrated by Bernard L. Madoff, including the possible closure of numerous nonprofit organizations and projects, The Chronicle of Philanthropy reports.

December 16, 2008

Cleveland Music Critic Sues Orchestra, Newspaper

Donald Rosenberg, a music critic for The Cleveland Plain Dealer, is suing that newspaper and the nonprofit parent group of the Cleveland Orchestra, the Musical Arts Association, saying officials involved with the orchestra allegedly put pressure on the newspaper to oust him from his reporting post covering the orchestra after he wrote negative reviews of the group, reports The New York Times.

Susan Goldberg, the newspaper’s editor, said outside interests did not influence the paper’s editorial decision with regard to Mr. Rosenberg. Robert Duvin, a lawyer for the orchestra, said he would not comment on the specifics of the case.

(Free registration is required to view this article.)

Union-Connected Charity Under Investigation

A charity founded in 2004 by the California United Long-Term Care Workers union reported spending no money on its mission, to provide housing to low-income workers, for two years in a row, reports the Los Angeles Times.

The Long Term Care Housing Corporation had total expenses of about $165,000 for 2005 and 2006, and all of the money went to consulting fees, insurance costs, and other overhead, according to its Internal Revenue Service filings.

The charity’s co-founder, Tyrone Freeman, who was previously president of the union, is currently under federal investigation because of his spending practices. The city of Compton, Calif., is investigating whether he and the charity defrauded the city by accepting a gift of municipal land when it had no tax exemption. A lawyer for the charity, Dario Frommer, said the group is cooperating in the investigation but would not comment further. Lawyers for Mr. Freeman and others involved in the charity declined to comment.

Plus: A lavish annual golf tournament held by the United Long-Term Care Workers, billed as a fund raiser for two charities, has not resulted in any donations to those charities since 2004, according to their financial statements, reports the Los Angeles Times.

(Free registration is required to view both articles.)

Los Angeles Museum in Financial Crisis

The financial crisis at the Museum of Contemporary Art, in Los Angeles, was brought on by overspending at least $1-million per year since 2000, reports the Los Angeles Times.

It will cost at least $25-million to replenish the endowment and an additional $5-million to cover projected deficits for the coming year.

The museum’s board of trustees is scheduled to meet today to review its options, which include an alliance with the Los Angeles County Museum of Art. Eli Broad, the museum’s founding chairman, has also offered to give the museum $30-million if it can raise an additional $15-million on its own.

Jeremy Strick, the group’s current director, raised museum spending by 35 percent over the past seven years, reports the newspaper, which resulted in an annual average shortfall of 5.5 percent. Some former trustees criticize Mr. Strick for trying to spend his way out of the crisis, which only deepened the financial woes.

(Free registration is required to view this article.)

Harvard Program Seeks to Nurture Older Nonprofit Leaders

Fourteen people in their 50s and 60s from various backgrounds have begun a yearlong program at Harvard University intended to help them learn how to be successful social entrepreneurs or leaders of nonprofit organizations focused on social problems like poverty, health, education, and the environment, reports The New York Times.

The program, called the Harvard Advanced Leadership Initiative, is designed to close the leadership gap that will arise when baby-boomer-age nonprofit executives retire. The program will also help guide baby boomers into second careers in nonprofit work, reports the newspaper.

For more about the ways seasoned professionals are working for the public good, and how charities can harness their skills, see the Regeneration section of our Web site.

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

Washington Foundation Official Takes Job at New Orleans Fund

Albert Ruesga, vice president of the Meyer Foundation in Washington, will become chief executive of the Greater New Orleans Foundation in January 2009, reports The Times-Picayune, of New Orleans.

Learning From Patty Stonesifer's Tenure at the Gates Foundation

As Patty Stonesifer departs from her job leading the Bill & Melinda Gates Foundation, her experiences at the foundation offer lessons for other philanthropists, reports the Financial Times.

Ms. Stonesifer used corporate approaches — including taking risks, planning for long-term growth, and emphasizing evaluation and results — to help hone the vision of the Seattle foundation.

To learn more about Ms. Stonesifer’s philosophy, see the transcript of a live discussion in which she took questions from Chronicle readers and an interview she conducted with a Chronicle reporter.

Give and Take: How Should Big Donors Respond to the Economic Crisis?

Donors should consider taking a slow, long-term approach to dealing with the financial meltdown, advises an influential philanthropy consultant cited in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Why charities should give their employees access to Facebook and other social network tools.

Prospecting: Responding to the Financial Crisis

Nonprofit groups in Washington have joined forces with business and government to find ways to weather the recession, reports Prospecting.

Plus, the crucial role board members play in the tough economy.

From The Chronicle: International Aid Groups and the Economy

Charities that provide aid overseas could lose as much as $1-billion in donations per year as the economic decline continues, according to the head of a coalition that represents international organizations, The Chronicle of Philanthropy reports.

From The Chronicle: Investment Scandal Rocks Charities

The giant Ponzi scheme allegedly perpetrated by Bernard Madoff is rippling through Jewish philanthropy and charities, forcing the closure of at least three foundations and major losses at foundations established by the likes of Steven Spielberg, Elie Wiesel, and New Jersey Sen. Frank R. Lautenberg, reports The Chronicle of Philanthropy. The losses magnify the problems facing charities already hit hard by the recession.

Transcript: Online Activism

Read a transcript of today’s online discussion about using social networks to promote charitable causes.

December 15, 2008

From The Chronicle: Update on How Charity Fund Raising Is Faring at Year's End

Fund raisers nationwide have been hoping donations would increase this month, but the outlook is grim for many charities now entering the final weeks of the year when giving normally increases sharply, The Chronicle of Philanthropy reports.

In a Chronicle spot check of donations to 35 charities, 28 organizations say that giving is flat or down this calendar year, and 10 are reporting declines of 10 percent or more.

Foundations Face Losses in Alleged $50-Billion Ponzi Scheme

Charities are likely to face huge losses as a result of the investment scandal involving Bernard L. Madoff. The alleged Ponzi scheme has already stressed global financial markets and is expected to bring about nearly $50-billion in losses to investors, including many foundations, reports The Wall Street Journal.

A list of investors and foundations whose investments were managed by Mr. Madoff can be found at Bloomberg.com.

Report Shows Theater Growth Outpaced Audience Demand

A new report by the National Endowment for the Arts shows that the number of nonprofit theaters has doubled in the past 15 years, but audience numbers have declined or stayed flat, reports the Associated Press.

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

Investigation Focuses on Philadelphia Charity

The Pennsylvania attorney general’s office is investigating a charity that is in the middle of a corruption trial against Vincent Fumo, a former Pennsylvania state senator, reports the Associated Press.

The charity, Citizens’ Alliance for Better Neighborhoods, was founded by aides to the former politician. It allegedly spent hundreds of thousands of dollars in ways “that have nothing to do with the operation of a charity,” said Kevin Harley, a spokesman for Pennsylvania’s attorney general, Tom Corbett.

Christian A. DiCicco, the charity’s director, last week told the newspaper that the charity was cooperating with the investigation, but he criticized the inquiry. Mr. Fumo has pleaded not guilty to the charges against him.

Laptop Group Runs Provocative Advertisement

The One Laptop Per Child Foundation, a Cambridge, Mass., organization that supplies basic laptop computers to poor children in developing countries, has produced an online-only advertisement with images of a little girl as a prostitute and small boys as gun-toting soldiers, The Boston Globe reports. The provocative ads are intended to prompt wealthy Americans to donate with the goal of giving poor children access to technology.

(Free registration is required to view this article.)

Seed-Storage Group Struggles to Raise Money

An underground seed bank in Ardingly, England, that houses more than a billion wild species of seeds is struggling in the current financial crisis to raise enough money to make up for cuts in government and corporate funds and to keep from closing its doors in the next year, reports the Associated Press.

Give and Take: Investment Scheme Hits Nonprofit Groups

Charity experts say fallout from the alleged investment scheme involving the financier Bernard L. Madoff serves as a reminder to charities to keep a close watch on their investments and the people who control them, notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Prospecting: Using Rebates for Charity

A software company has decided to turn the process of sending back rebates into a simple way to donate to charity, notes a new post in Prospecting, The Chronicle’s online fund-raising column.

Online Discussion Tomorrow: Conducting Activism Online

The explosion in online communications tools has created a seemingly infinite number of opportunities for advocacy groups to spread their message. At the same time, charities face new challenges, especially as they seek to ensure their messages aren’t lost under a crush of information.

How can your organization stand out from the crowd and effectively use online tools to spread its message? What are some of the best practices in online activism? What can you do to stay ahead of the curve?

For answers to those questions and others, join us on Tuesday, December 16, at noon Eastern time when our guest will be Tom Watson, author of the new book CauseWired: Plugging In, Getting Involved, Changing the World.

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

An archive of past discussions is available at http://philanthropy.com/live.

December 12, 2008

Mississippi Groups Sue Federal Agency Over Distribution of Katrina Aid

Mississippi civil-rights and housing groups sued the federal government this week in an attempt to halt the distribution of nearly $600-million in Hurricane Katrina relief aid requested by Gov. Haley Barbour to expand the Port of Gulfport, reports The Washington Post.

The lawsuit stems from allegations that the money is part of $5.5-billion approved by Congress for Mississippi to be used as emergency relief to pay mostly for low-cost housing.

The nonprofit groups say the Department of Housing and Urban Development wrongly allocated waivers permitting the state to use just 21 percent of the money for low-cost housing instead of 50 percent, as required for Katrina aid channeled through the Community Development Block Grant program.

Officials from the housing agency said they had not yet reviewed the lawsuit and could not comment.

(Free registration is required to view this article.)

Republicans May Request Bill Clinton's Testimony on Philanthropy

Senate Republicans may ask Bill Clinton to testify at confirmation hearings for his wife, Hillary Rodham Clinton, to become secretary of state because they are concerned about potential conflicts of interest involving his international philanthropy, reports Politico.

“There are concerns about his international work across the board,” a Republican aide told the newspaper. “Seeking donations from foreign governments is definitely concerning. … It has been discussed, and it will be discussed.”

Read more about the issues raised for the Clinton philanthropy in an article from the latest issue of The Chronicle of Philanthropy.

(A paid subscription or short-term pass is required to view the Post article.)

Nonprofit Hospital Struggles to Be Charitable

In order to stay true to its charitable mission as a nonprofit hospital, Mount Sinai, in Chicago, has had to struggle financially and continues to treat residents of its inner-city neighborhood, sometimes at the expense of its bottom line, reports The Wall Street Journal.

Over the past five years, the hospital has fluctuated between a small net income and annual losses as high as $15-million.

In its continued efforts to prevent health problems in the neighborhoods it serves, the hospital employs former gang members, promotes smoking cessation, monitors teenage mothers, and serves as a medical safety net for many of Chicago’s destitute. “We can’t be part of this community if we’re not trying to change people’s lives and make it better,” says Alan H. Channing, Mount Sinai’s chief executive.

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

Wealthy Families Focus Their Giving

A growing number of wealthy families seeking to better guide their charitable giving are writing mission statements to help ensure they support the causes most important to them, reports The Wall Street Journal.

Such documents enable families to focus their giving according to their shared interests and help them navigate the influx of donation requests they receive.

“The concept is moving from a scattershot to a rifle shot,” says Claire Costello, national practice executive for philanthropic management at Bank of America Corp.

Pakistan Shuts Islamic Charity

Pakistan on Thursday closed 11 offices of Jamaat-ud-Dawa, an Islamic charity alleged to be connected to the deadly attacks in Mumbai, India, last month, reports The Washington Post.

According to a Pakistani Foreign Ministry official and a top official at the charity, the group’s leader, Hafiz Sayeed, was placed under house arrest in Lahore. Mr. Sayeed was one of four individuals flagged by the U.N. Security Council Wednesday when it designated the charity as a terrorist organization and imposed sanctions against the group, freezing its assets, banning travel, and embargoing arms.

According to the United Nations, the charity is linked to Lashkar-i-Taiba, the Pakistani militant group that Indian authorities believe is responsible for the three-day attacks in Mumbai that killed at least 171 people, including six Americans.

Mr. Sayeed denied reports that he had met with a Mumbai attacker and said his group had split from Lashkar after Pakistan banned Lashkar following a 2001 attack on India’s Parliament.

(Free registration is required to view this article.)

Give and Take: Who Won the Princeton Legal Battle Over Donor Intent?

Nonprofit observers are debating who is the winner of the dispute between Princeton University and the Robertson family now that the two have agreed to end a closely watched lawsuit that raised questions about how nonprofit groups adhere to donor demands, notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Plus: A site urges nonprofit experts to suggest ideas on how donors can best focus their holiday-time donations on good causes.

Government and Politics Watch: Seeking a New Social Contract

The severity of the nation’s economic crisis has created an opportunity for charities to transform the way they work with the government as a new administration and Congress take shape, a key nonprofit official says. Larry Snyder, head of Catholic Charities made the comments in remarks to leaders of affiliates of his group, reports Government and Politics Watch, The Chronicle’s online column.

Plus: Bill Gates says he would consider taking a job in the Obama administration.

Prospecting: Salvation Army Benefits From iPhone Deal

Thanks to a new application by a Seattle mobile-media company, iPhone users can channel donations to the Salvation Army by listening to Christmas tunes, notes a new post in Prospecting, The Chronicle’s online fund-raising column.

Plus: How not to raise money like the ‘Big Three’ automobile companies.

December 11, 2008

New York Couple Leaves $75-Million to Georgetown U.

Robert L. and Catherine McDevitt, of Binghamton, N.Y., have left $75-million to Georgetown University, in Washington, reports The Washington Post.

Mr. McDevitt’s estate stipulated that a portion of the money endow faculty positions in disciplines such as theology and others that reflect his “deep Catholic faith” as well as in science and technology.

The couple also left a $30-million bequest to the Roman Catholic Diocese of Syracuse, in New York, and $50-million to Le Moyne College, also in Syracuse.

(Free registration is required to view this article.)

NPR Plans Job Cuts

National Public Radio, with headquarters in Washington, said yesterday it would lay off about 7 percent of its staff — or 64 positions — because of decreasing revenue, reports The Washington Post.

The group is facing a $23-million shortfall in its current fiscal year. All of the group’s income sources have taken a hit in past months, especially program underwriting by corporations. Additionally, some of the stations that carry NPR’s programming, such as WBEZ in Chicago, are announcing layoffs of their own.

(Free registration is required to view this article.)

Gates Foundation Pays for Health-News Coverage

The Bill & Melinda Gates Foundation gave a $3.5-million grant to “The NewsHour With Jim Lehrer” television show to ensure coverage of malaria, AIDS, tuberculosis, measles, neglected diseases, and other global health issues, reports The New York Times.

The money will help correspondents report 40 to 50 stories on these issues over three years. Patti Parson, managing producer of the “NewsHour,” said the grant came with no strings attached.

(Free registration is required to view this article.)

Veterans Group Squandered Money, Senate Says

The National Veterans Business Development Corporation, a nonprofit group in Washington that was formed to help veterans establish small businesses, has squandered millions of federal dollars, according to a Senate investigation, reports The Washington Post.

The Senate report charges that the group spent money on lavish travel, meals, and compensation for its two top executives. The article did not include comment from the nonprofit group.

(Free registration is required to view this article.)

Progressive Legal Group Rises in Prominence

The nonprofit legal-education group American Constitution Society for Law and Policy, in Washington, is becoming more influential as President-elect Barack Obama fills several politically appointed jobs in his administration with people who have close ties to the group, reports The New York Times.

For example, Mr. Obama has appointed Eric Holder Jr., a member of the society’s board, to be attorney general.

(Free registration is required to view this article.)

People: Corporate Board Appoints Jeff Raikes

Costco Wholesale Corporation has appointed Jeff Raikes, chief executive of the Bill & Melinda Gates Foundation, to its board of directors, reports the Puget Sound Business Journal, in Seattle.

U. of Nebraska's Endowment Plummets

The University of Nebraska’s endowment has fallen below $1-billion, a drop of more than 16 percent since June 30 and a 30-percent drop since October 2007, reports the Associated Press.

Prospecting: A Map to Where the Emergency Grants Are

A new interactive map by the Foundation Center tracks grants that foundations have made to help charities deal with fallout from the economic crisis, notes a new post in Prospecting, The Chronicle’s online fund-raising column.

Plus: Forecasting the fund-raising outlook for Florida.

Give and Take: Politicians and Nonprofit Scandals

A professor and former lawyer says the nonprofit-related allegations against Illinois Gov. Rod Blagojevich are “sadly familiar,” notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Plus:

A review of Google’s latest attempt to support nonprofit groups.

What Harvey Milk can teach charities.

December 10, 2008

Indiana Private School Receives a Pledge of up to $70-Million

Frank and Jane Batten have pledged up to $70-million to the Culver Academies, a private secondary school in Indiana, the institution announces.

The gift includes $20-million to endow the Batten Fellows Program to help provide salaries and professional-development opportunities for Culver’s faculty members. The second part of the gift is a pledge to match up to $50-million in money contributed by other donors as part of the school’s capital campaign to raise $300-million to support its endowment.

Mr. Batten, 81, is the founder of Landmark Communications in Norfolk, Va., and is a 1945 graduate of Culver Military Academy.

To see an updated list of the year’s biggest gifts, visit the Chronicle’s directory of America’s Top Donors.

Declining Donations Inspire Charities to Innovate

During difficult economic times, charities are getting creative to keep donations flowing by creating interactive Web sites and stepping up their solicitations for help, reports The Washington Times.

The Salvation Army has created a site that invites volunteers to create their own sites and their own kettles with customized pages that allow them to ask friends, family, and co-workers to donate.

Onlineredkettle.com opened November 1, so far has raised more than $200,000, and aims to raise $1-million by year’s end.

For more about charities’ new approaches, see The Chronicle of Philanthropy’s latest cover article.

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

Food Pantries Adopt New Approaches as Demand Grows

As demand for their services continues to rise, food pantries are taking new approaches to provide more people with food and other resources, reports The New York Times.

Using more fresh produce, offering ready-to-eat meals, starting their own farms, and collaborating with a wide range of groups, such as local supermarkets and state prisons, to help collect and process food are some of they ways food banks are adapting to serve their clients. Many pantries are also serving as social service clearinghouses to distribute information about health screenings and to sign people up for food stamps.

“It’s not just handing out a box here or there anymore,” said Peggy Grimes, executive director of the Montana Food Bank Network. “A lot of effort goes into thinking outside the box. It’s becoming the focus of food banking.”

(Free registration is required to view this article.)

Abortion Opponents Seek Cut in Funds to Planned Parenthood

Antiabortion activists are using an economic, rather than moral, argument to urge state and local governments to stop sending money to Planned Parenthood, reports The Wall Street Journal. Conservative Christian groups such as the Family Research Council are arguing that the charity is financially secure enough that it doesn’t warrant public support during the economic downturn.

The article says Planned Parenthood reported record revenue and a $115-million surplus last year and is in the process of building a network of health centers aimed at attracting middle-class clients. Opponents argue that the money the group receives from government grants — about $335-million a year, or a third of its budget — could be better used elsewhere.

Freelancers Union Starts Health Insurance Company

Frustrated with rising premiums, the Freelancers Union, a charity that has long provided health coverage to self-employed workers, is creating its own health-insurance company with $17-million contributed from a group of philanthropies including the Rockefeller Foundation, New York State Health Foundation, and the Pioneer Portfolio of the Robert Wood Johnson Foundation, reports The Wall Street Journal.

The company, Freelancers Insurance, will craft plans around members’ feedback and outsource each part of the plan administration to the most efficient bidder, says Sara Horowitz, executive director of the Freelancers Union.

Sports Museum Struggles

The Sports Museum of America, in New York, has laid off workers and reduced ticket prices but is still not meeting its attendance targets. As a result, it announced last week that it would no longer be open on Mondays, reports The New York Times.

The museum, which in September defaulted on the tax-free Liberty Bonds that paid for over half the cost of the $93-million institution, is in the process of negotiating a restructured payment schedule, said Philip Schwalb, the museum’s founder.

(Free registration is required to view this article.)

From The Chronicle: Princeton Reaches Settlement With Robertson Family

Princeton University and the heirs of a major donor to the institution have settled their bitter dispute over an endowment that supports the university’s Woodrow Wilson School of Public and International Affairs, The Chronicle of Philanthropy reports.

From The Chronicle: Bill Clinton Raises $185-Million in Pledges

Bill Clinton raised $185-million in pledges to assist charitable causes last week during the meeting of his Clinton Global Initiative in Asia, according to the former president’s foundation, The Chronicle of Philanthropy reports.

Opinion: Reality Show Distorts Charity

Fox’s miniseries, Secret Millionaire — in which wealthy people mix anonymously with the underprivileged people they seek to help — is a distasteful misrepresentation of charity, argues The Boston Globe’s television critic, Matthew Gilbert.

“Making a show of charity pushes it into that reality-TV realm of artificiality — the forced emotions, the swelling strings, the ever-present cameras,” he writes. “Giving should be natural; ‘Secret Millionaire’ is contrived.”

(Free registration is required to view this article.)

Government and Politics: Affidavit Says Politician Sought Nonprofit Payday

The 76-page affidavit filed against Illinois Gov. Rod Blagojevich contained a somewhat telling perception about some nonprofit salaries, notes The Chronicle’s Government and Politics Watch.

Plus:

Nonprofit groups are urging Congress to ease certain defined-benefit pension rules.

Foundations plan to increase spending on Election Day improvements.

IRS publishes its gift-giving tips.

December 09, 2008

Boston May Seek More Money From Nonprofit Institutions

Boston’s mayor is forming a task force to study how the city might increase the payments it receives from nonprofit institutions in lieu of taxes — especially the city’s numerous education and health-care organizations, reports The Boston Globe.

The universities and hospitals, which are exempt from property taxes because of their nonprofit status, pay voluntary fees to the city in varying amounts, the paper reports. If such Boston organizations were required to pay property tax, they would pay a combined $350-million to $400-million each year, city officials tell the paper. Instead, they give the city a combined $32.4-million, the Globe reports.

(Free registration is required to view this article.)

Appraiser Says Church's Jet Not Tax-Exempt

A county appraiser in Texas has decided that a jet worth $3.6-million is not eligible to be tax-exempt, even though it is owned by a nonprofit ministry, because the ministry declined to disclose salaries of its directors, reports Fort Worth’s Star-Telegram.

The situation pits the Kenneth Copeland Ministry against Tarrant County in a battle over whether to disclose its top pay levels. The ministry is expected to protest the denial of exemption, the paper reports.

The ministry was the focus of Congressional interest last year, when Sen. Charles E. Grassley, Republican of Iowa, requested financial information of Mr. Copeland and other ministers. At the time, the church did not answer questions about compensation, the Star-Telegram reports.

A spokesman for the ministry declined to comment in the article.

Baltimore Opera Files for Bankruptcy

The Baltimore Opera Company will file for bankruptcy protection today, canceling the remainder of its season and not refunding tickets after a decline in ticket sales and donations, reports The Baltimore Sun.

But the move may not mean the end for the 58-year-old organization, as it plans to continue fund raising and hopes to resume operations in the future, the paper reports. The opera’s annual budget is about $6-million, and it has a deficit of about $800,000. This fall, a board member had to make a personal guarantee of salaries to continue with one production.

A spokeswoman for the opera says no staff members have been fired yet.

(Free registration is required to view this article.)

CARE Chief May Be Tapped to Lead Federal Agency

President-elect Barack Obama is considering naming CARE’s chief executive, Helene Gayle, a former AIDS coordinator for the U.S. Agency for International Development, to head that federal agency, reports The Washington Post.

Ms. Gayle said she could not confirm that she is being considered for the post but tells the newspaper that USAID is “an area I’m most passionate about.”

(Free registration is required to view this article.)

Editorial: Ford Foundation Should Bail Out Namesake Company

Saying the Ford Foundation, in New York, “has gotten fat and famous,” an editorial in The Wall Street Journal suggests that the country’s second-largest grant maker should liquidate and surrender its $13-billion in assets to rescue the Ford Motor Company.

Doing so would be a move in line with the foundation’s mission, the editorial says, giving several examples why. Though the foundation now has “no formal connection” to the car company, the Journal writes, the former was founded in 1936 by the son of Henry Ford.

From The Chronicle: Gates Foundation Announces Education Grants

The Gates Foundation has announced $69-million in grants designed to encourage more needy students to finish college, part of its new effort to retool its education grant making, The Chronicle of Philanthropy reports.

Government and Politics Watch: Seeking Advice for President Obama

Change.org, a Web site that connects donors with causes, is taking President-elect Barack Obama up on his offer to hear from “all Americans” and asking readers to submit their ideas — many of which have a nonprofit bent — for how Mr. Obama could improve the country, notes The Chronicle’s Government and Politics Watch.

Give and Take: Operating-Support Offer Draws Praise

The decision by the Weingart Foundation to award emergency grants to social-service groups to pay for administrative costs and other operating expenses is being hailed by several people in the nonprofit world, notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Plus: Tips for gathering e-mail addresses.

Prospecting: Jonas Brothers Top List of Celebrity Fund Raisers

The pop trio known as the Jonas Brothers leads a list of the top celebrity fund raisers, as ranked by Charity Folks, an organization that operates online auctions with entertainers to raise money for nonprofit causes, according to a new post in Prospecting, The Chronicle’s online fund-raising column.

Transcript: Doing More With Less

Learn steps organizations are taking to cut costs while responding to increased demands for their services by reading the transcript of a live online discussion The Chronicle hosted today.

December 08, 2008

Syracuse Couple Leaves $80-Million in Bequests

The Roman Catholic Diocese of Syracuse, in N.Y., has landed a $30-million bequest from the estate of Robert and Catherine McDevitt, reports The Post-Standard. The McDevitts, each of whom died this year, also left $50-million to Le Moyne College, in Syracuse, which the college announced last week.

New York Botanical Garden Cuts Budget

The New York Botanical Garden is slashing its $64-million annual operating budget by 12 percent and will reduce its full-time workforce of 480 by 10 percent, reports Crain’s New York Business. The cuts must happen, say officials, even though the group saw an 8 percent increase in visitors over the past year, because the nonprofit organization’s earned income has fallen by 20 percent.

Applications for Teach for America’s Limited Spots Soar

A sagging economy and a growing desire among college seniors to find jobs in public service have triggered a 50-percent increase in applications this year at Teach for America, The Washington Post reports. The nonprofit group has emerged as the most popular nonprofit national-service organization among college seniors in the United States, with 14,181 applications received this year and about 23,000 more expected by the end of February.

(Free registration is required to view this article.)

Museum Loses Successful Director as Budget Shrinks

The Las Vegas Museum of Art has accepted the abrupt resignation of Libby Lumpkin, a successful leader who was credited with transforming the institution from a local museum that relied on traveling exhibits to a contemporary art museum with a reputation for innovative programming and for instituting plans for an endowment and a new facility, the Las Vegas Sun reports. The museum is struggling financially and will have to operate with a 2009 budget of less than $1-million.

From The Chronicle: International Grant Making

American foundations gave more to international causes in 2007 than ever before, and — despite oscillating financial markets and economic uncertainty — such giving is expected to remain steady or even grow this year, says a new report, covered in The Chronicle of Philanthropy.

Government and Politics Watch: Foundations' Role in Economic Stimulus

Foundations should make sure that states, cities, and localities make good choices in how they spend federal dollars that come to them as part of an economic-stimulus package, said an urban-policy expert who is helping Barack Obama on housing and development issues, as noted in The Chronicle’s Government and Politics Watch.

Plus: Obama taps Latino advocacy official for administration role.

Give and Take: Charity Watchdog's Expansion Plan

Charity Navigator, a nonprofit evaluator, plans to develop a tool to tell donors which charities are making progress toward ending poverty or other goals, notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Plus:

What will happen to philanthropy in 2009

An argument for letting some charities fail.

Online Discussion Tomorrow: Doing More With Less

The recession has many organizations thinking about ways to cut costs. At the same time, many groups face an increased demand for their services and hope to use the bad economic situation to bring more attention to their missions.

How can nonprofit leaders reconcile these two seemingly conflicting concepts? How can they balance a squeeze on resources with attempting to deliver better results?

Join us for an online discussion on Tuesday, December 9, at noon Eastern time to share your ideas and pose questions to our guest, Hildy Gottlieb, a management consultant and president of the Community-Driven Institute at Help 4 Nonprofits in Tucson, Ariz.

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 are available online.

December 05, 2008

Foundation Organizes Inauguration Events

The Stafford Foundation yesterday announced a million-dollar project to ensure that poor people will be able to attend President-elect Barack Obama’s inauguration next month, reports The Washington Post.

Virginia businessman, Earl W. Stafford, whose family runs the religious-affiliated foundation, has already paid $1-million for more than 300 rooms and amenities that attendees will enjoy free of charge at Washington’s J.W. Marriott hotel. He is also paying $600,000 for a prayer breakfast, luncheon, and two inaugural balls at the hotel.

“The people’s inaugural project is a historic investment that allows those who would not have such an opportunity to come to our nation’s capital in Washington, D.C., and join in the inauguration and celebration of our president, Barack Obama,” said Mr. Stafford. “We are thrilled to give them a front-row seat.”

(Free registration is required to view this article.)

Museum's Declining Finances Prompt Audit

The Los Angeles Museum of Contemporary Art, which has operated at a deficit in six of the past eight years, is being audited by California’s attorney general to determine whether the museum broke any laws that govern the use of restricted money by charities, reports The New York Times.

According to people familiar with the institution’s finances, the museum’s endowment has dwindled to about $6-million, from nearly $50-million in 1999, said the newspaper. Museum officials would not discuss the audit, but in a written response, the museum said that it was “pursuing and assessing all of its options,” including talks with billionaire philanthropist Eli Broad and with the Los Angeles County Museum of Art about potential partnerships.

Mr. Broad offered $30-million last month to support the museum but stipulated that half of his donation be matched by contributions from other donors. No other donors have stepped forward yet.

(Free registration is required to view this article.)

Pakistani Charity Denies Involvement in India Attacks

Jamaat-ud-Dawa, an Islamic charity in Lahore, Pakistan, that runs schools, clinics, and post-disaster recovery programs, is denying accusations that it served as the front group for the prime suspects behind the recent Mumbai attacks, reports the Associated Press.

The charity, which has been under scrutiny since the attacks, says that it had cut its ties with Lashkar-e-Taiba, the group blamed by India for the slaughter. “It is true we had links with Lashkar-e-Taiba in the past, but please remember, the past is the past,” said spokesman Abdullah Muntazir. “We are the victim of baseless Indian propaganda. We are not involved in attacks in India. We are just doing welfare work and nothing else.”

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

School Official Receives Reprimand for Soliciting Donation

New York City’s Conflicts of Interest Board has found that the deputy schools chancellor, Christopher Cerf, inappropriately solicited charitable contributions from executives of Edison Schools, an Education Department vendor whom he previously worked for, reports The New York Times.

The board closed the matter without pursuing action against Mr. Cerf but sent him a letter chiding him for using his city position to benefit the Darrow Foundation, a charity on whose board he sits, and providing him a “formal reminder of the importance of strict compliance with the city’s conflicts of interest law.”

(Free registration is required to view this article.)

Web Site Turns Users' Clicks Into Money for Charities

The Web site of a new company called Everywun allows people to support charities without spending any money of their own, reports the San Francisco Chronicle.

The Everywun Web site lets users click on and embed a charity badge in a blog or social-networking site, and subsequent clicks on the badge by others generates income from a corporate sponsor that has entered an agreement with Everywun to support that charity.

Give and Take: Noncash Ways to Support Causes This Season

People who can’t afford to give money to charity this holiday season can learn about other ways to do good at a new Web site, notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Plus: Can foreclosed houses become shelters for the homeless?

Government and Politics Watch: Obama Transition Update

The Schott Foundation for Public Education, in Cambridge, Mass., has announced that its president, John H. Jackson, has been named to a transition group that will advise the incoming Obama administration on education-policy priorities, reports The Chronicle’s Government and Politics Watch.

Plus: Valerie Jarrett, soon-to-be a White House senior adviser and assistant to the president for intergovernmental relations and public liaison, met with foundation officials recently.

From The Chronicle: Social-Good Podcast

Allison Fine, a communications expert and former nonprofit leader, offers Chronicle readers monthly free audio lessons on how charities and foundations can use social-media tools to spread their messages and raise money.

In the first podcast installment, Ms. Fine interviews officials at the Humane Society of the United States and the Nature Conservancy about how their groups have used Facebook, Twitter, and other social-media tools.

December 04, 2008

Conservative Episcopalians Form Breakaway Church

Seven hundred conservative Episcopal congregations in North America formed a new church yesterday, citing disagreement with other Anglicans’ liberal interpretations of Scripture, according to the Los Angeles Times. Leaders of the new Anglican Church in North America said the church represents 100,000 Christians. Two-third of the world’s 38 provincial Anglican leaders — representing 77 million church members worldwide — must approve the new church for it to gain official recognition.

The formation of the new church is an effort, leaders said, to unify congregations and dioceses that had fled the American Episcopal Church and the Anglican Church of Canada over biblical disputes. Among the issues that caused the rift was the ordination of an openly gay bishop earlier this decade.

(Free registration is required to view this article.)

College Endowments Suffer Big Losses

Significant holdings in alternative investments, such as private-equity funds, are rapidly eroding the endowments of some of America’s largest universities as the global financial crisis continues, according to reports by the Associated Press and The Wall Street Journal.

In addition to Harvard University, which this week announced that its endowment has lost 22 percent of its value since July 1, other college endowments are taking big hits, just as many states are trimming their higher-education budgets. Academic institutions are starting to freeze hiring, cut their enrollment, and discuss steep tuition increases, according to the Journal.

Cleveland Clinic Will Report Ties to Drug Makers

The Cleveland Clinic intends to announce this week that it is now publicly reporting any business ties its staff doctors and researchers have with drug and device makers, according to The New York Times. The clinic is disclosing the information on its Web site and appears to be the first major medical center to make such relationships transparent to the public.

Some of the clinic’s leading physicians came under criticism and Congressional scrutiny several years ago when their financial links were revealed by the news media.

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

Charity Founder Accused of Running Sex Ring

The millionaire founder of a charity to aid Russian terror victims has been charged by federal officials with taking three girls from a Russian orphanage, molesting them, and then setting them up as prostitutes in Moscow, according to the Bucks County Courier Times, in Pennsylvania.

Andrew Mogilyansky — chief executive of IFEX Global, a fire-extinguisher company in Bensalem, Pa., and founder of the International Foundation for Terror Act Victims, a group that says it has raised more than $1-million for victims of terrorism in Russia — was taken into custody December 2 as results of a grand jury investigation were released. If convicted, he faces up to 30 years in prison.

The newspaper could not reach Mr. Mogilyansky for comment, and a woman who answered the door at his home in Richboro, Pa., declined to be interviewed.

Obituary: Cornelius Clarkson Vermeule III, Museum Curator

Cornelius Clarkson Vermeule III, a longtime senior curator and sometime acting director of the Museum of Fine Arts in Boston, died November 27, according to The Boston Globe. He was 83.

Mr. Vermeule, who retired in 1996, oversaw the museum’s classical-art department for 40 years. “He was like an African griot — the elder in the village who keeps all the oral history and passes it generation to generation,” said Christine Kondoleon, the senior curator of Greek and Roman art at the MFA. “He carried the histories of these people.”

(Free registration is required to view this article.)

From The Chronicle: Corporate Giving Rose in 2007

Corporations increased their giving last year despite a mixed economic climate, according to a new report from the Committee Encouraging Corporate Philanthropy, in New York, The Chronicle of Philanthropy reports.

Prospecting: New Fund-Raising Blog Offers Economy-Related Advice

Penelope Burk, fund-raising consultant and author of Donor-Centered Fundraising, is starting a new blog that will cover fund raising amid economic turmoil, according to a new post in Prospecting, The Chronicle’s online fund-raising column.

Give and Take: Doing-Good Advice Column

Patty Stonesifer, who stepped down earlier this year as chief executive of the Bill & Melinda Gates Foundation, and her daughter, Sandy, plan to start a weekly column at the beginning of next year for Slate, the online news magazine, called “My Goodness,” notes Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Government and Politics Watch: A Call for a U.S. 'Department of Development and Service'

Timothy Shriver, chairman of the Special Olympics and a member of the Kennedy family, is calling on President-elect Barack Obama to create a U.S. Department of Development and Service, reports The Chronicle’s Government and Politics Watch.

December 03, 2008

Harvard's Endowment Loses More Than $8-Billion

In the four months since the June 30 close of its fiscal year, Harvard University’s endowment, then valued at $36.9-billion, has lost 22 percent of its value, amounting to a loss of more than $8-billion, reports The Harvard Crimson.

President Drew Faust and Executive Vice President Edward Forst announced the news in a letter to the university deans this week, the Crimson reports. Both expect the endowment’s decline to be 30 percent at the end of the current fiscal year.

The New York Times reports that the university expects other hits to come with a decrease in donations and tuition, as more students are in need of financial aid.

(Free registration is required to view the New York Times article.)

Economic Slump Threatens to Deepen Food Crisis

Money for food aid, as well as credit for farmers around the world, could be more difficult to get because of the ongoing global financial crisis, reports The Christian Science Monitor.

If farmers run out of credit, they will be unable to grow new crops, which will shrink the food supply further. Also, of the $12.3-billion pledged by governments and donors earlier this year for food aid, only $1-billion has been distributed, the paper reports.

And though fuel and food prices have dropped recently (food prices have fallen by 6 percent since September), the decreases have not offset earlier price jumps, such as the 51 percent spike in food prices in 2008, the Monitor reports.

Calif. Foundation Offers Help With Operating Costs

The Weingart Foundation, in Los Angeles, is planning to give grants to support operating expenses at charities that provide basic necessities to those in need, reports the Los Angeles Business Journal.

The foundation plans to offer one-year grants of up to $150,000 to “well-managed” charities that provide critical services, the Journal reports. At least one observer, Steve Lawrence of the Foundation Center, in New York, says the foundation’s plan is likely to be copied by other foundations soon.

“This certainly reflects the exceptional times,” Mr. Lawrence tells the Journal.

Boston Jewish Center Closes Because of Shift in Population

Shifts in the population of Boston’s Jewish residents from the city to the suburbs have forced local Jewish officials to sell one community center, reports The Boston Globe.

The Striar Jewish Community Center, in Soughton, is being sold to the Old Colony YMCA, the paper reports.

“There’s no need for a lot of resources to go into a building that’s not serving the needs of the Jewish population,” says Barry Shrage, president of Combined Jewish Philanthropies, which owns the Striar JCC building.

(Free registration is required to view this article.)

Young Philanthropists Seek Bigger Roles

A new generation of philanthropists is helping aging parents decide how to dole out donations to charitable organizations, and many of these younger philanthropists are taking a much more hands-on approach than their predecessors, reports The Atlanta Journal-Constitution.

Younger givers seek out ways to volunteer with organizations they want to support and are more likely to be entrepreneurial, the paper says. Also, more are becoming involved with family giving through donor-advised funds. At the Community Foundation of Greater Atlanta, such funds increased from under 400 in 2001 to more than 630 in 2007, the paper reports.

From The Chronicle: Gates Delivers Public-Policy Speech

In a public-policy speech on Wednesday, Bill Gates warned President-elect Barack Obama against using the economic free fall to cut spending on U.S. schools or on health and antipoverty programs overseas, The Chronicle of Philanthropy reports.

From The Chronicle: 'Purpose Prize' Winners Get $100,000

Six nonprofit workers in their 60s and 70s today have been announced as the winners of the third annual Purpose Prizes, given by Civic Ventures, a nonprofit group in San Francisco that promotes projects that use the skills and experience of older Americans, The Chronicle of Philanthropy reports.

Government and Politics Watch: Obama Picks Charity 'Innovation' Leaders

Two charity leaders have been appointed to a group of more than 30 people that has been asked to help the incoming Obama administration devise an “innovation agenda,” reports The Chronicle’s Government and Politics Watch.

Give and Take: Voting for Innovative Cellphone Uses

A nonprofit group is helping the U.S. Agency for International Development select the winners of its “Development 2.0 Challenge,” which looks for innovative ideas on how cellphones can be used for international development, notes Give and Take, The Chronicle’s round-up of the best blog posts about the nonprofit world.

Prospecting: Twitter's Fund-Raising Potential

The author and social-media consultant Beth Kanter has studied the history of fund-raising efforts on the social-networking site Twitter — and identified several successful examples, according to a new post in Prospecting, The Chronicle’s online fund-raising column.

Plus: Enlisting blog readers to support good causes.

From The Chronicle: Foundations' Economic Impact

Giving by foundations supports the economy of the United States, with $1 of every philanthropic contribution producing more than $8 in economic benefits, says a new study, as reported in The Chronicle of Philanthropy.

December 02, 2008

British Charities Expect Fund-Raising Declines

Like their American counterparts, many British charities are bracing for slowed fund raising next year as the worldwide financial crisis continues, according to the Associated Press.

A survey of 362 charities, released December 1 by PricewaterhouseCoopers, the Institute of Fundraising, and the Charity Finance Directors’ Group, found that all respondents expected their revenues to fall and their costs to rise in 2009; the survey estimated the charities’ income in 2009 as dropping about 4 percent from their 2008 totals.

Former Governor Gives U. of Texas at Austin $15-Million

A former Texas governor, who made a fortune in banking and ranching, has pledged $15-million to the Center for American History at the Austin campus of the University of Texas, according to the Austin American-Statesman.

The gift, from Dolph Briscoe, 85, who served as the state’s governor from 1973 to 1979, will nearly triple the history center’s endowment, said university officials, who also announced that the center will be renamed for the donor. Part of the gift — $3-million — was received late last year, said Don Carleton, the center’s executive director.

Napa Valley Wine Museum Files for Bankruptcy

A food and wine museum in California’s Napa Valley has filed for bankruptcy, according to the Associated Press.

Copia, also called the American Center for Wine, Food, and the Arts, co-founded by the late vintner Robert Mondavi and the late celebrity chef Julia Child, filed December 1 in U.S. Bankruptcy Court in Santa Rosa. Museum officials, who closed Copia last month, blamed the credit crunch for the organization’s financial woes.

High School Students Form Nonprofit Microbank

Students at a private high school in Las Vegas have raised $25,000 through sandwich sales and other donations to provide microloans to women in developing countries, according to The New York Times.

The Meadows Microcredit Action Group, which includes more than 50 of the 250 students at the Meadows School, invests in Pro Mujer, a nonprofit lender in New York that supplies microcredit internationally. The Meadows group is believed to be the first instance of high school students forming a microbank.

(Free registration is required to view this article.)

'Harry Potter' Author Promises Book Proceeds to Charity

Proceeds from the next book by J.K. Rowling, author of the popular Harry Potter series, will benefit a charity co-founded by the British writer, according to Reuters.

The Tales of Beedle the Bard, a collection of five fairy tales that is mentioned in Rowling’s final book about the boy wizard, Harry Potter and the Deathly Hallows, will benefit the Children’s High Level Group, which advocates for children’s rights across Eastern Europe. The book goes on sale December 4.

Opinion: Where's the Nonprofit Bailout?

Teresa DeCrescenzo, the executive director of Glass Youth and Family Services, a Burbank, Calif., group that provides social and health-care services to gay, lesbian, bisexual, and transgender youths, wonders, in a commentary written for the Los Angeles Times, why the federal government is not considering a financial bailout for nonprofit groups.

“Where is the storm of media coverage, the persuasive rhetoric, the public outcry to save critically needed services, such as child care, assisted living, home health care, and hospital services?” she writes. “Who is documenting our agony? Where are the desperately needed cash infusions to help us restructure in this troubled economy?”

(Free registration is required to view this article.)

Give and Take: Charity TV's Latest Offering

Fox’s “The Secret Millionaire,” which debuts Wednesday night, is the latest in a string of network offerings with a charitable beat — and is fueling the debate over whether such shows do more good or harm, notes Give and Take, The Chronicle’s round-up of the best blog posts about the nonprofit world.

Plus: Can development projects in a poor country have too many donors?

From The Chronicle: Mission-Related Investing

Melding charitable priorities and asset portfolios is the goal of a growing number of foundations that see mission-related investments as a logical complement to their grant making, The Chronicle of Philanthropy reports.

Transcript: Are Nonprofit Mergers Wise?

Learn when to consider a nonprofit merger, how to overcome reservations about such alliance, and how mergers work in reality by reading the transcript of a live online discussion The Chronicle hosted today.

December 01, 2008

Bill Clinton Agrees to Disclose Names of Donors

Bill Clinton has agreed to publicly disclose the names of donors to his foundation now that President-elect Obama has appointed Senator Hillary Rodham Clinton secretary of state, reports The New York Times.

Mr. Clinton agreed to further conditions during discussions with President-elect Barack Obama’s representatives, including incorporating his Clinton Global Initiative separately from his foundation so that he has less direct involvement.

The Clinton Global Initiative will stop holding annual meetings outside of the United States and stop accepting new contributions from foreign governments, to avoid a conflict of interest with his wife’s new position, reports the newspaper.

To read more about what nonprofit officials say about such concessions, see this article from The Chronicle’s archive.

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

Legal-Aid Groups Suffer Due to the Economy

The economic meltdown and lower interest rates are resulting in a steep decline in funds for legal-aid nonprofit groups, reports the Associated Press.

Such groups depend on contributions from interest on money that lawyers hold in trust for their clients. Nationally, those funds added up to about $370-million last year, but advocates say that figure could drop by as much as 50 percent in 2009.

Some legal-aid groups have already begun cutting workers and reducing their caseloads, resulting in less assistance for their poor, elderly, and minority clients, reports the news service.

San Francisco Drops Effort to Limit Pay of Charity CEO's

Legislation that would have required nonprofit groups in San Francisco to limit the amount they pay their chief executives was altered last week to remove those pay limits, reports the San Francisco Chronicle.

The legislation will now require city-financed nonprofit groups to report to the city once a year about how much their top officials receive and how much of it was paid by the city. The original proposal by Supervisor Jake McGoldrick sought to limit salaries and benefits for executives to six times the total compensation of their lowest-paid full-time employee, reports the newspaper.

Suffolk University Controversy Over Financial Ties to Trustees

Suffolk University, in Boston, is embroiled in a conflict-of-interest controversy over its president’s pay and the university’s financial relationships with some trustees, reports The Boston Globe.

David J. Sargent, the university’s president, made $2.8-million last year, making him the highest-paid college president in the nation, according to The Chronicle of Higher Education.

Among the trustees who oversee his compensation and other issues are Robert Crowe, who runs a Boston lobbying company, and George Regan, whose public-relations firm has contracts with the university.

“This is the kind of thing that raises suspicion and invites further outside scrutiny,” Scott Harshbarger, who previously served as the state’s attorney general, told the newspaper.

Officials at Suffolk University, as well as Mr. Crowe and Mr. Regan, deny any wrongdoing.

(Free registration is required to view this article.)

Foundations Try New Investment Approaches

Private foundations are rethinking their investment portfolios in the wake of the recent economic collapse, reports the Financial Times.

But some investment leaders have been taking a different approach for a long time. Nathan Fischer, chief investment officer at the Lumina Foundation, in Indianapolis, has been following an alternative investment path since 2000, and now experts say more grant makers may follow his lead.

Mr. Fischer ignores rigid asset-allocation targets and traditional benchmarks in favor of an approach that allows the foundation to jump on what seems like the smartest opportunities at the time.

Lumina’s endowment performed better than average endowments this year, dropping only 12 percent by September 30.

(Free registration is required to view this article.)

Government and Politics: Volunteers and Mileage Deductions

The Internal Revenue Service announced that volunteers won’t get any extra tax incentives to drive their cars as part of their charity work, reports Government and Politics Watch, The Chronicle’s online column.

Plus: Nonprofit groups are applauding the decision by President-elect Barack Obama to elevate the top United Nations job to cabinet status.

Give and Take: Clinton's Concessions

Are the limits Bill Clinton placed on his philanthropy a good idea? That is the question posed by writers cited in Give and Take, The Chronicle’s round-up of the best blog posts about the nonprofit world.

Plus:

Advice on how foundations can help charities harmed by the economic downturn.

How to end hunger in the United States.

Providing aid in the world’s worst places.

Online Discussion Tomorrow: Are Mergers Wise?

As the economy sputters, many nonprofit groups are searching for new ways to cut costs without slicing services. In some cases, collaborating or even merging with another organization is one way to reconcile this challenge.

But charities often have reservations about such alliances as well as questions about how they work in reality.

In an online discussion tomorrow, we will be joined by two experts to answer your questions:

William Foster is a partner at the Bridgespan Group, a Boston organization that advises charities on management issues.

Lois Savage is president of the Lodestar Foundation, in Phoenix.

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

An archive of past discussions is available at http://philanthropy.com/live.

Correction: Templeton Foundation

A summary in Wednesday’s Philanthropy Today of an article on the Templeton Foundation and the California ballot measure that struck down a gay-marriage law in the state incorrectly stated that the foundation had promoted the marriage ban on its site. An outside commentator brought up the issue after seeing news that the foundation’s president gave money from his own checkbook to groups promoting the ban.

From The Chronicle: Don't Run Away From 'Social Enterprise'

Nonprofit leaders should rethink ‘social enterprise’ and not run away from it because of the bad economy, writes Jeff Trexler, a Pace University professor in an opinion article in The Chronicle of Philanthropy.