Philanthropy Today - Philanthropy.com

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

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

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July 2009

July 31, 2009

Philanthropists in Madoff Case Respond to Allegations

The businessman and philanthropist Jeffry M. Picower and his wife, Barbara, have filed a 68-page response in court denying allegations that they bear some responsibility for the investment scandal involving Bernard Madoff, The Wall Street Journal reports.

William Zabel, a lawyer for the Picowers, said in a statement Friday that his clients “are honorable people who were deceived” by Mr. Madoff, the paper reports. He said the lawsuit against them was “riddled with significant factual errors,” and that his clients were to close their foundation as a result of their financial losses.

For more on the lawsuit and efforts by the trustee in the Madoff case to seek the return of lost investment money, read The Chronicle’s coverage.

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School Unions Pin Job Losses on Teach for America

Teach for America’s success in attracting recent college graduates to inner-city classrooms is generating a backlash among teachers’ organizations, according to USA Today.

Critics contend the nonprofit effort encourages urban school districts to replace experienced educators with neophytes who usually move on to other work after doing their two-year Teach for America stint. “I don’t think you’ll find a city that isn’t laying off people to accommodate” the organization, said Richard Stutman, president of the Boston Teachers Union.

Teach for America spokeswoman Kerci Marcello Stroud says the program is “just one source” for urban teachers and that its recruits must interview for jobs just like traditional applicants. The organization will place 7,300 teachers this year, up from 6,200 in 2008, and is expanding its reach from 29 to 35 metropolitan areas.

Report Foresees Tough Times for Religious Charities

Research that shows wealthy people are maintaining their giving during the recession and younger donors are becoming more active does not necessarily bode well for religious nonprofit groups, Reuters reports on its FaithWorld blog.

The recent Barclays Wealth report on giving by high earners states that arts and religious organizations face an uncertain future, with big donors telling the wealth-management house that “these causes had become less important to them over the past 10 years.” The report predicts a 16-percent drop in contributions for religious charities, while giving for health care, the environment, and children is expected to rise markedly.

In the Arts: Baltimore Symphony Extends Pay Cuts, Museum Axes Film Program

Baltimore Symphony Orchestra musicians have agreed to extend pay cuts and furloughs they voluntarily took three months ago, further reducing the cuts in their wages for the 2009-10 season from 5.7 percent to 12.5 percent, The Washington Post reports.

The orchestra has reduced spending by 13 percent this year after being hit with a 21 percent decline in the value of its endowment and a similar drop in revenue from single-ticket sales.

In other arts news, the Los Angeles County Museum of Art will end its four-decades-old weekend cinema series in October, according to the Los Angeles Times. Museum officials said the program has lost $1-million in the past decade and they want to rethink the institution’s approach to film.

Also, the Times says that the San Diego Museum has acquired a major collection of works from Africa, Oceania, and the Americas from the Sana Art Foundation.

And FoxNews.com reports on complaints from some conservative groups over federal stimulus grants to small San Francisco arts organizations that present sexually explicit stage and film programs.

(Free registration is required to view the Post and Times articles.)

Charity Founders Win Presidential Medals

Muhammad Yunus, whose nonprofit Grameen Bank pioneered the practice of micro-lending to benefit small businesses in the developing world, and Nancy Brinker, who founded the Susan G. Komen for the Cure charity for breast-cancer research, are two recipients of President Obama’s first Presidential Medal of Freedom awards, says the White House in a news release.

Also among the 16 people who will receive the nation’s highest civilian honor is Pedro José Greer, Jr., a Miami physician who is founder of two organizations that provide medical care for disadvantaged people and a former winner of a MacArthur “genius grant.” The awards will be given on August 12.

Future in Doubt for Slain NFL Star's Charity

The death this month of Steve McNair, the former NFL quarterback, could put an end to the work of his charity, which has raised hundreds of thousands of dollars for hurricane relief, football camps for at-risk teenagers, and other causes, reports the Associated Press.

Don Weatherall, who helped Mr. McNair run the organization, said it is too soon to tell whether the group can continue. Police said Mr. McNair was fatally shot July 4 in Nashville by his mistress, who then killed herself.

Opinion: White House Applies Heavy Hand to Rural Philanthropy

A Wall Street Journal column contends the Obama administration wants to effectively “nationalize” rural giving by guiding nonprofit groups into select areas.

David J. Sanders, a columnist for Stephens Media, in Little Rock, Ark., said White House efforts dominated the agenda at the recent Council of Foundations conference on rural philanthropy in the Arkansas capital. Sessions included instruction on how to tap federal stimulus funds to promote sustainable energy, broadband Internet access, and other priorities for the administration.

“The government’s rural strategy seems to be based on the idea that rural America can be bought or, at least, bribed,” Mr. Sanders writes.

From The Chronicle: Doris Duke Fund Awards $44-Million for Africa

As part of an ongoing effort to help Africa, the Doris Duke Charitable Foundation today is awarding $43.8-million to support primary health care on the continent — a cause that is attracting a growing amount of philanthropic support, says The Chronicle of Philanthropy.

Government and Politics Watch: Senate Committee Votes on National-Service Budget

The Corporation for National and Community Service would receive about $1.15-billion, approximately the amount that President Obama requested for the agency in his proposed budget for 2010, in a bill that the Senate Appropriations Committee passed on Thursday, reports The Chronicle of Philanthropy’s Government and Politics Watch blog.

Give and Take: The Daily Blog Roundup

Among the noteworthy items today in the Chronicle’s digest of nonprofit blogs:

Eight signs that an arts organization isn’t ready to start a blog.

The difference between a “high-performing” and a “high-impact” nonprofit group.

Why don’t more charities ultimately aim to put themselves out of business?

Resources for nonprofit groups that want to put technology to use for their cause.

Why Planned Parenthood has been successful in using social media to advance its mission.

Prospecting: The Problem of Too Many Potential Donors

Wealth-screening services can leave fund raisers with a welcome but still challenging task of how to prioritize a list of too many potential donors, speakers told participants in Boston at APRA’s annual conference for prospect researchers, notes Prospecting, the Chronicle’s online column.

Plus:

How to seek potential donors in a wide range of industries.

Crafting winning appeals: Making a postcard pitch work.

July 30, 2009

Food Banks Welcome Stimulus Cash as Demand Grows

A $100-million federal stimulus grant is helping U.S. food pantries restock as the recession swells demand for their services, says The New York Times.

The stimulus windfall, supplementing the $250-million the food-bank program usually gets annually from Washington, provided millions of pounds of poultry, pork, cheese, canned fruit, and peanut products, according to the Department of Agriculture.

A recent survey by the nonprofit network Feeding America found demand for emergency food assistance up 30 percent nationwide over last year.

(Free registration is required to view this article.)

California Seeks Sponsors to Keep Parks Open

California parks officials and nonprofit agencies are scrambling to find corporate sponsors and other donors to keep some recreational areas open as the state continues to slash its budget, the Los Angeles Times reports.

The state’s 279 state parks and beaches attract 80 million visits a year, but only a dozen or so are financially self-sustaining. A list of facilities to be closed is due after Labor Day.

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Battle Brews Over Management of Alamo

A breakaway group of the Daughters of the Republic of Texas, the society that has managed the Alamo for more than a century, wants to wrest control of the historic San Antonio site and run it as a foundation-supported museum, according to the Associated Press.

Since 1905, the 18th-century mission, which witnessed the legendary 1836 battle for Texas independence and now attracts 2.5 million visitors a year, has been operated in the black by the Daughters, with gift-shop sales covering most operating costs.

But two ex-members, teaming with a former Alamo director, say the group lacks the financial savvy to create a plan for the site’s long-term stability.

Homeless Millionaire's Estate Supports Public Radio

National Public Radio reports on the life and death of Richard Leroy Walters, a Phoenix man who died homeless but left an estate worth $4-million to several nonprofit groups, including NPR.

The public broadcaster received about $400,000 from Mr. Walters’s estate, as did several other charities, including the Catholic mission where he died two years ago at age 76. NPR host Robert Siegel dug into the details of the benefactor’s life after hearing an on-air announcement of his support for public radio.

Pakistani Philanthropist's Foundation Cares for Karachi's Destitute

National Public Radio profiles Abdul Sattar Edhi, a Pakistani philanthropist and father of a cradle-to-grave care network in the sprawling city of Karachi.

Mr. Edhi, 82, arrived in Karachi more than 60 years ago amid the mass migration of Muslims from India to newly independent Pakistan. Shortly thereafter he began the work that evolved into the Edhi Foundation, which buries the bodies of the poor, cares for abandoned newborns, runs two maternity wards, and offers other services to needy families.

His philanthropic network, supported mostly by donations from ordinary Pakistanis, has raised more than $36-million so far this year.

Former Save the Children Staff Member Convicted of Sex Abuse

The British relief agency Save the Children will review its recruitment process following an ex-employee’s guilty plea to child sexual abuse, reports Third Sector Online.

Sohail Ayaz, a former grants monitor for the charity, was sentenced Wednesday to four years in jail after admitting to eight counts of abuse. The offenses were committed before he joined Save the Children last November.

A Save the Children spokeswoman said Mr. Ayaz’s job did not involve access to minors, “but we are taking the matter seriously and will carry out an inquiry into the safeguards in place for hiring staff.”

From The Chronicle: Half of Charities Have Cut Jobs, Survey Finds

Nearly half of nonprofit organizations (47.5 percent) have laid off staff members to cut costs as donations dwindle, according to a survey by Campbell & Company, a group that consults with charities, The Chronicle of Philanthropy reports.

Give and Take: The Daily Blog Roundup

Among the noteworthy items today in the Chronicle’s digest of nonprofit blogs:

100 “incredible philanthropy blogs.”

How business and charity can work together.

A call for Jewish philanthropists to sell more of their artwork to support good causes.

How to measure the value of corporate philanthropy.

Plus: Independent Sector’s meeting of nonprofit leaders draws fire.

Prospecting: Are Sad Images Most Effective?

A marketing expert says study results that suggest sad images raise more money than happy ones “straddle the line between blindingly obvious and just plain wrong,” notes Prospecting, the Chronicle’s online column.

Plus: Why universities and other large nonprofit organizations should consider looking for potential donors overseas.

Online Discussion Today: Shaking Up Journalism and Philanthropy

Join us on Thursday, July 30, at 3:30 p.m. U.S. Eastern time for a live online discussion about how the head of the John S. and James L. Knight Foundation is circumventing the top-down nature of foundation giving and seeking the “wisdom of the crowd.”

Alberto Ibargüen, the Knight Foundation’s president, will be available to answer questions about the future of journalism and Knight’s new philanthropy.

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

July 29, 2009

Museum's Benefactors Sue Brandeis U. Over Plans

Three prominent benefactors of Brandeis University’s Rose Art Museum filed suit in Massachusetts yesterday to prevent the college from closing the museum or selling any of its collection, The Boston Globe reports.

The case represents the first legal challenge to the Waltham, Mass., university’s proposal to sell art to help it offset major financial losses. The plaintiffs contend the plan violates donor intent and are seeking a court order that Brandeis turn over the collection and the Rose museum’s endowment funds to another entity committed to making the works permanently available to the public.

University lawyers called the suit frivolous, and a top Brandeis official said in a statement that the plaintiffs, who also serve on the museum’s board of overseers, are “oblivious” to the school’s educational mission.

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L.A. Homeless Shelters Criticize Distribution of Hospital Settlement

Homeless shelters in Los Angeles’s Skid Row had high hopes when news of a $1.6-million settlement was announced in a case that involved allegations of a Southern California hospital “dumping” psychiatric patients at the shelters, reports the Associated Press. But most of the money is being given instead to a children’s grief-counseling charity in suburban Pasadena.

Hathaway-Sycamores Child and Family Services received $900,000 of the payment by College Hospital. Homeless-services groups, including Skid Row providers that helped expose the dumping, got a combined $300,000, with the rest going to city and county agencies.

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

Va. Group Takes Prominent Role in Health-Care Fight

National Public Radio reports on the Virginia Organizing Project’s front-and-center role in the Obama administration’s campaign to overhaul U.S. health-care policy.

The nonprofit organization, which normally focuses on local issues, got involved in the national effort through the grass-roots group Health Care for America Now, which has arranged for the Virginia organization to participate in White House events and provided money to support efforts such as canvassing the state to collect stories of people with medical problems and no insurance.

Disability Groups Say Britain's Care Policies Favor Elderly

A coalition of British charities say the government has prioritized social care for the elderly and is ignoring the needs of youths and adults with learning disabilities, according to The Guardian.

In a letter to the English daily, the Learning Disability Coalition of 15 nonprofit groups asserts that the government’s recent “green paper” on social services “concentrates almost exclusively on how to fund social care for older people.” The group, which includes the Down’s Syndrome Association and the National Autistic Society, warns of a $328.8-million shortfall in funds for treatment and services for people who are learning disabled.

Opinion: Foundations Contributed to the End of Communism in Europe

Writing for CNN.com, George Soros, philanthropist and financier, traces the roots of his nonprofit Open Society efforts in Central and Eastern Europe and their impact on the collapse of communism there.

Mr. Soros writes that he set up his first foundation in his native Hungary, supporting private cultural efforts to show that state dogma “was false, and by providing an alternative we could expose its falsehood.” Its success led to similar efforts in Poland, China, and the former Soviet Union.

He also expresses disappointment that Western governments did not take a greater role in those countries’ transition from closed to open societies, leaving a “bitter legacy” of anti-Western feeling in parts of the former communist bloc.

Obituary: George Weissman, Corporate Grant Maker and Arts Leader

George Weissman, who shaped the tobacco company Philip Morris into a major cultural benefactor and later headed the Lincoln Center, died last week at the age of 90 due to complications from a recent fall, reports The New York Times.

Mr. Weissman joined Philip Morris in 1952 and became its chairman in 1978. During his tenure, the company became a major contributor to the arts, sponsoring exhibitions, supporting experimental efforts like the Brooklyn Academy of Music’s Next Wave Festival, and installing a branch of the Whitney Museum in the company’s New York headquarters.

In 1986, two years after his retirement from Philip Morris, Mr. Weissman became chairman of Lincoln Center, a post he held until 1994.

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From The Chronicle: Senate Panel Matches Obama's National-Service Request

In a break with the House of Representatives, a key Senate subcommittee has voted to provide the Corporation for National and Community Service with about $1.15-billion, approximately the amount that President Obama requested for the agency in his proposed budget for 2010, The Chronicle of Philanthropy reports.

Government and Politics Watch: IRS Drops Investigation of Minn. Sermon

The Internal Revenue Service has told a Minnesota church under examination for the content of the pastor’s sermons that the government is no longer pursuing the audit because of a “procedural issue” involving the tax agency’s initial inquiry into the church, says The Chronicle of Philanthropy’s Government and Politics Watch blog.

Give and Take: The Daily Blog Roundup

Among the noteworthy items today in The Chronicle’s digest of nonprofit blogs:

The potential impact on nonprofit organizations of cuts recommended by the House Appropriations Committee.

Challenging Calif. Gov. Arnold Schwarzenegger to stop being a “girly man” and raise taxes to protect the programs of charities in that state.

How one small charity is proving that you don’t need to be big to be effective.

Advice to the nonprofit leaders who are meeting with Independent Sector in Colorado Springs this week to plot the future of philanthropy.

Also: A nonprofit leader questions Google’s charity ad program.

Prospecting: Crafting a Winning Appeal With a Personal Story

TROSA, a nonprofit group that helps people with substance-abuse problems in Durham, N.C, is the latest organization to submit a fund-raising letter for advice and review from readers of Prospecting, the Chronicle’s online column.

July 28, 2009

Atlantic Philanthropies Pledges $84-Million for Health Research in Australia

Atlantic Philanthropies has donated $84-million toward health and medical research in Queensland, the largest gift by a charitable organization in the Australian state’s history, Brisbane’s Courier-Mail reports.

The gift, a founding chairman’s grant, will fund research on breast cancer, schizophrenia, and malaria vaccines at three Queensland institutions. It brings to more than $223-million the total that Atlantic has contributed to scientific and medical work in the state, which in recent years has become one of Australia’s major research hubs.

Read more about Atlantic’s founder, Chuck Feeney – the Irish-American duty-free-shop magnate and “billionaire who wasn’t,” who for years gave away hundreds of millions of dollars anonymously – in The Chronicle of Philanthropy.

(A paid subscription or temporary pass is required to view the Chronicle article.)

Prosecutors Say Astor's Son Sought to Limit Her Donations

Prosecutors in the trial of the son of the New York heiress Brooke Astor have introduced evidence that he reined in his late mother’s charitable spending while using her fortune to finance business ventures and his own giving, says The New York Times.

Anthony D. Marshall is accused to tricking his mother into changing her will and taking advantage of her advanced age and diminished mental state to tap her riches. Ms. Astor died in 2007 at the age of 105, with an estimated fortune of $180-million.

According to prosecutors, in 2003 Mr. Marshall withdrew his mother’s commitment to give the Metropolitan Museum of Art $117,000 to purchase an antique Buddha, telling museum officials that future donations would be limited to $250 to $1,000 due to the cost of her medical care. In the coming year, prosecutors said, he drew on her account to invest $250,000 in a theatrical company, to cover expenses at the family’s Maine summer home, and to meet a $1-million pledge to establish a fund in his name with the U.S. Marine Corps.

Mr. Marshall’s lawyers have argued that his mother had given him the home in Maine and had always supported him financially.

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Charitable Planned-Giving Programs Lose Favor With Banks

Major banks are backing away from managing planned-giving vehicles for smaller nonprofit organizations, reports The Wall Street Journal.

Some banks are refusing to take on charities with assets smaller than seven figures, or dropping existing clients. BNY Mellon Wealth Management, one of the biggest players in the field, told more than 50 clients in May that they had until September 1 to find a new manager.

Reports Show Weakness in Nonprofit Hospitals' Fiscal Health

Two reports released this month show how hard the recession is hitting nonprofit hospitals, according to the American Medical Association’s American Medical News.

According to a July 7 Standard & Poor’s report, 60 nonprofit health institutions saw their credit ratings downgraded in 2008, compared to 35 the previous year, and median operating margins in the field declined from 2.5 percent to 1.8 percent. Experts attributed the weakening performance to investment losses, which in the past made up for declines in operating income.

The Bureau of Labor Statistics reported on July 2 that job creation in the field has declined 30 percent, from 30,000 jobs a month in the first half of 2008 to 21,000 so far this year.

In the Arts: Choreographer's Death Complicates Legacy Plan

With the dance legend Merce Cunningham’s death July 26, his foundation will have to simultaneously raise funds for a recently announced plan to safeguard his artistic legacy and to implement it, says the Los Angeles Times.

The Cunningham Dance Foundation said yesterday it had raised about $2.5-million for the Living Legacy Plan, an $8-million program Mr. Cunningham unveiled last month to provide for the smooth transition of his dance company’s assets when he is no longer able to lead it.

In other arts news, The New York Times reports on the upheaval in the lives of 11 dancers laid off this year by the New York City Ballet.

Also, the Orange County Register reports on the financial struggles of classical-music organizations in the Southern California county.

(Free registration is required to view the New York Times and Los Angeles Times articles.)

Growth in Mobile Giving Inspires New Fund Campaigns

Mobile phones are gaining ground as a medium for charity, particularly in reaching out to young supporters, according to The Seattle Times.

Major organizations, such as the American Red Cross and the Humane Society, are raising money via text message through systems set up by the Mobile Giving Foundation, a Bellevue, Wash., nonprofit group established by Jim Manis, a former wireless-industry executive.

Third Sector Online reports that the industry association for British mobile providers has agreed to stop deducting the VAT, or value-added tax, from text-message donations, effectively increasing the value of such gifts by 15 percent.

(Free registration is required to view the Third Sector article.)

Atlanta Groups Protest Loss of Millions in Federal Aid

Community-development organizations in Atlanta are up in arms over plans to return some $30-million in federal funds unspent by an urban-renewal program set to expire at the end of the year, The Atlanta Journal-Constitution reports.

The Atlanta Renewal Community, established six years ago to pump federal money into ailing local neighborhoods, has spent just $7.3-million on services, most of it going to city agencies. Officials with the program’s coordinating agency say that due to the slowness of federal purchasing rules, they will be unable to spend the remaining money by the December 31 deadline.

In Jacksonville, charities have banded together to support a proposed city budget that would raise taxes to limit cuts in social spending, reports The Florida Times-Union.

Harvard Professor's Foundation Revises Tax Return Over Error

A charity headed by Henry Louis Gates Jr., the noted Harvard University professor, is filing amended 2007 tax papers to correct a grant-reporting error, ProPublica reports.

Mr. Gates’s Inkwell Foundation mistakenly reported $11,000 in compensation to members of his and the charity’s staff members as grants. The error came to light amid the avalanche of news-media coverage of the prominent professor’s mistaken arrest July 16 at his home in Cambridge, Mass.

Mr. Gates is also a member of the board of directors of ProPublica, a nonprofit investigative-news Web site.

From The Chronicle: Volunteerism Rate Remains Steady

The number of Americans who volunteer held steady last year, defying expectations that the rising unemployment and foreclosure rates could cut into civic participation, according to a new report, The Chronicle of Philanthropy reports.

Prospecting: Reclaiming 'Fund Raiser' as a Job Title

A consultant to charities who works in London wonders why there seems to be a “rash of obscure job titles” in the fund-raising world, notes Prospecting, The Chronicle’s online column.

Plus:

Casual Fridays for a cause.

Crafting winning appeals: A Minnesota charity seeks your input.

Give and Take: The Daily Blog Roundup

Among the noteworthy nonprofit-blog items in The Chronicle’s digest today:

How Twitter is being used to raise money for charities.

How organizations can improve the efficiency of their major-gifts officers.

Why donors should read a recent court decision involving Fisk University before they make restricted donations to nonprofit groups.

Suggestions for translating news-media coverage into donations.

Also: Does the nonprofit world need a ‘reboot’?

Transcript: How Data Can Improve Fund-Raising Results

Read the transcript of today’s discussion about how fund raisers can best use research tools to identify potential donors and make strategic decisions about their fund-raising campaigns.

Philanthropy This Week: Philanthropy's Post-Recession Future

Listen to the new edition of Philanthropy This Week, the Chronicle’s podcast, to hear an interview with the columnist Sean Stannard-Stockton about how the nonprofit world will likely be changed in the wake of the global recession. Also: a look at recent fund-raising trends.

July 27, 2009

N.J. Suspects Accused of Using Charities to Launder Cash

Federal authorities say suspects charged last week in a massive New Jersey corruption probe used Jewish charities to launder millions of dollars, the Asbury Park Press reports.

Forty-four people — including three New Jersey mayors, two state legislators, and five rabbis — were arrested Thursday and charged with participating in the international scheme. Lawyers for the rabbis, who were leaders in the Syrian Jewish communities in Deal, N.J., and Brooklyn, N.Y., said the men were innocent.

Kauffman Foundation Suspends Kansas City School Grants

The Ewing Marion Kauffman Foundation has decided to stop issuing new education grants in its home region of Kansas City while it reassesses its mission in local schools, reports The Kansas City Star.

The foundation has handed out $78-million to Kansas City schools since 2004, focusing largely on math and science education and services for low-income students. But with the economic slump, it is retrenching to assess the results of its efforts. The philanthropy is also drawing up plans to open its own charter school in the city.

Major Security Firm Trains Religious Groups on Crime Prevention

The world’s biggest security-management company has started a new division focused on helping religious service organizations prevent and respond to violent crimes, Religion News Service reports.

ASIS International started its House of Worship Security Working Group in January in response to a rise in crime against faith groups. According to the Christian Security Group, churches sustained $6.3-million in losses due to crime in the first half of 2009 and were the sites of six homicides.

ASIS will release a resource guide on church security next month and will hold a seminar on threats to religious groups at its annual conference in September.

Katrina Recovery at Midpoint, Relief Leaders Say

With the fourth anniversary of Hurricane Katrina approaching, leaders of a New Orleans relief consortium say the city’s recovery is at about the halfway point, The Times-Picayune reports.

The Greater New Orleans Disaster Recovery Partnership has distributed about $25-million in money, materials, and work to about 1,000 area families since the devastating August 2005 storm. With private donations tapering off, the group is positioning itself to continue its efforts largely with state and federal grants.

The partnership represents an unprecedented disaster-relief effort in which religious and secular organizations have pooled resources and distributed funds from a common coffer. The approximately 80 member agencies have also doled out tens of millions of dollars in aid on their own.

Charity for Israeli Youths in Court Battle With Madoff Trustee

A New York agency that serves homeless and runaway youths in Israel is pressing a claim in U.S. Bankruptcy Court to get $4.72-million from the liquidation of Bernard Madoff’s investment firm, Bloomberg reports.

ELEM/Youth in Distress Israel filed an objection last week asserting that Madoff trustee Irving Picard wrongfully rejected its claim to the full amount of its final account balance with the disgraced financier. Mr. Picard approved paying about $26,000 to the charity, representing the difference between what it invested with Mr. Madoff from 2001 to 2007 and the amount it withdrew.

British Charity Proposes New Domain for Nonprofit Groups

The British human-rights organization Article 25 is spearheading a call for a philanthropic consortium to run a new nonprofit-only Internet domain, .ngo, to counter what it sees as abuse of the .org address, reports Third Sector Online.

Due to a lack of oversight, “commercial entities, individuals, and even professional criminals have been able to register Web sites with .org suffixes quite legally, with no check on their identities or intentions,” Article 25’s chief executive, Victoria Harris, said.

Obituary: Merce Cunningham, Renowned Choreographer

Merce Cunningham, one of America’s most influential choreographers, died Sunday at age 90, The New York Times reports. The newspaper says he appeared in every performance by his Merce Cunningham Dance Company up until age 70. At 80, he danced a duet with Mikhail Baryshnikov at the New York State Theater.

(Free registration is required to view this article.)

Government and Politics Watch: Congress Urged to Support National Service

A New York Times editorial is urging lawmakers to allocate more money to the Corporation for National and Community Service, the federal organization that oversees national-service programs, notes The Chronicle of Philanthropy’s Government and Politics Watch blog.

Prospecting: Alaska Oil-Company Profits Spur Giving

Many residents of Alaska are donating all or some of the annual payment they get from the Permanent Fund Dividend, which requires oil companies operating in Alaska to provide a share of their profits to state citizens, notes Prospecting, The Chronicle’s online column.

Plus:

Fund-raising letters flunk test for lively writing.

A look at how Mercy Corps tailored one of its fund-raising appeals to respond to the bleak economy.

Online Discussion Tomorrow: How Data Can Improve Fund-Raising Results

Join us on Tuesday, July 28, at noon U.S. Eastern time for a live online discussion about how fund raisers can best use research tools to identify potential donors and make strategic decisions about their fund-raising campaigns.

Our guests will be Isaac D. Castillo, director of learning and evaluation at the Latin American Youth Center, in Washington, and Andrew Niklaus, chief operating officer of First Place for Youth, in Oakland, Calif.

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

July 24, 2009

U. of Illinois Fund Raiser Defends 'Clout Lists' for Admissions

Testifying Wednesday before a state commission, the head of the University of Illinois Foundation said it is appropriate to notify admissions officers when applicants to the school have ties to big donors, the Chicago Tribune reports.

“They value that information as part of the process. It’s appropriate information to pass along,” Sidney Micek told the Illinois Admissions Review Commission. According to public records, the foundation has lobbied the admissions office on behalf of at least 20 students in the past three years.

In a series of articles over the past two months, the Tribune has reported on “clout lists” of well-connected applicants compiled by the university’s admissions office. The review panel has been holding hearings on the matter since late June and is expected to issue a report next month.

(Free registration is required to view this article.)

Gates Foundation Adds $80-Million to India AIDS Program

Bill Gates, in India to receive a humanitarian award, pledged another $80-million to Avahan, the HIV-prevention program his foundation started in the country in 2003, The Seattle Times reports.

On Saturday Mr. Gates will be presented the Indira Gandhi Prize on behalf of the Bill & Melinda Gates Foundation, which had already committed $258-million to the program supporting more than 100 local nonprofit groups in six Indian states. He is slated to meet today with the country’s top health official to discuss plans to shift key aspects of Avahan’s work to state control.

Earlier this week, Tachi Yamada, president of the Gates Foundation’s Global Health Program, responded in a letter to Forbes to a highly critical assessment of Avahan published by the magazine.

In The Wall Street Journal, New Delhi bureau chief Paul Beckett used the occasion of Gates’s award to discuss what he terms the “lack of dramatic, sustained, well-organized individual giving” among India’s wealthy business elite.

Illinois Sues Controversial AIDS Group Over Ads

Illinois Attorney General Lisa Madigan has filed suit seeking dissolution of the California-based Center for AIDS Prevention, claiming it has continued to represent itself as a charity 22 years after its tax-exempt status was revoked in the state, reports the local news site ChicagoNow.

The complaint states the AIDS agency has run advertisements soliciting donations on the Web sites of major Illinois news outlets such as the Chicago Tribune. The center’s fund-raising practices have been the subject of an ongoing probe by the nonprofit investigative-reporting site ProPublica.

In the Arts: Newport Festivals Go Nonprofit, WGBH Faces Cutbacks

The founder of the Newport jazz and folk festivals intends to fold the landmark annual events into a nonprofit organization and seek greater state and local involvement, says the Providence Business News.

In other arts news, officials at Boston public broadcaster WGBH say a 12-percent budget shortfall will necessitate layoffs and major spending cuts, according to The Boston Globe.

And Reuters reports that a host of rock and soul legends will perform at two October concerts at New York’s Madison Square Garden to raise money for the Rock and Roll Hall of Fame Foundation on its 25th anniversary. Bruce Springsteen, U2, Metallica, and Stevie Wonder are among the scheduled performers.

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

Studies Find Brits Are Biggest Givers, Recession Hits Australian Charities

More than 80 percent of British residents have donated to charity in the past year, putting the British atop a survey of giving in 16 mostly developed countries, reports Third Sector Online.

Canada placed second in the poll of more than 10,000 people, conducted by the social-entrepreneurship site UnLtdWorld.com, with 77 percent of Canadian respondents reporting a contribution. Among U.S. replies, the figure was 44 percent. British givers were most likely to favor health charities.

Melbourne’s The Age reports on a survey that found that more than 60 percent of Australian charities have lost revenue in the past six months.

Environmental organizations have taken the biggest hit, according to the PricewaterhouseCoopers survey of 263 nonprofit groups, while international aid agencies have suffered the least. Many charities reported finding ways to restructure and make operational changes they had delayed during more flush periods.

Outgoing Porsche Boss Establishes Fund for Firm's Workers

Ousted Porsche chief executive Wendelin Wiedeking has pledged half of his $71.1-million severance pay to a charitable fund to benefit the automaker’s employees, Forbes reports.

Mr. Wiedeking, who left the company yesterday following the failure of his plan to take over Volkswagen, said the new fund is aimed at “ensuring socially fair development” at Porsche workplaces. He promised an additional $1.4-million to two German associations that support “elderly and suffering journalists.”

Give and Take: Defending Obama's Plan to Reduce Charitable Tax Deduction

While a conservative commentator has accused President Obama of declaring “war on philanthropy,” Peter Golio, a California fund-raising consultant, offers a robust defense of the president, notes a new post in Give and Take, the Chronicle’s online column rounding up the best opinion commentary about the nonprofit world.

Plus: Independent Sector’s forthcoming gathering in Colorado Springs seeks to “reinvent” the nonprofit world.

Government and Politics Watch: IRS Makes Governance Training Guide Public

The Internal Revenue Service has publicly released educational materials on governance matters that it has been using recently to train its agents and employees, notes The Chronicle of Philanthropy.

Prospecting: Giving Facts and Predictions

Lucy Bernholz summarizes on her blog Philanthropy 2173 what we know, what is being projected, and what we don’t yet know about how giving might perform this year, notes Prospecting, The Chronicle’s online column.

July 23, 2009

Wisconsin Relaxes Limits on Tapping Endowment Funds

Wisconsin has become the latest state to ease restrictions on tapping endowment funds to help universities and other nonprofit groups negotiate the economic downturn, the Milwaukee Journal Sentinel reports.

Legislation signed Monday by Gov. Jim Doyle removes the legal bar to spending from an endowment fund’s principal when its value dips below the amount with which it was established. The University of Wisconsin Fund and Marquette University were among institutions lobbying for the change.

Variations on the measure have been passed in 41 states in the past three years.

Pa. Woman Charged in Nonprofit Student-Exchange Case

A Scranton, Pa., woman is facing criminal charges in connection with a nonprofit group’s student-exchange program in a case that led federal officials to strengthen oversight of such placements, reports CNN.

A Lackawanna County grand jury indicted Edna Burgette on five counts of child neglect related to alleged mistreatment of students from Asia, South America, and Europe whom she had placed with Scranton families for the Aspect Foundation. The homes were allegedly filthy and short on food and, in one case, housed a convicted drug felon.

The charity fired Ms. Burgette, who had collected $400 for each placement, after the allegations were first reported by CNN last week. The State Department, which provides grants to Aspect through its Exchange Visitor Program, set up a toll-free hotline for foreign students to report problems and said it would conduct more visits to exchange sites.

In the Arts: Dodge Foundation Slashes Grants

The Geraldine R. Dodge Foundation, in New Jersey, has sharply curtailed grants to cultural organizations in the state, says The Star-Ledger of Newark. The foundation will distribute $10.1-million in arts grants this year, down from 2008’s $16-million.

In other arts news, The New York Times assesses the recent history of the National Endowment for the Arts and where the organization might be headed under its incoming chairman, Rocco Landesman.

And the Los Angeles Times reports on the dwindling of the curatorial ranks at the Los Angeles County Museum of Art, which has lost five key staff members this year and has yet to fill a three-year-old opening for a Chinese-art specialist.

(Free registration is required to view the New York Times and Los Angeles Times articles.)

National Park Foundation Names New Leader

A Denver businessman with management experience in investment management, wireless Internet, and real estate has been named to lead the National Park Foundation, the Denver Business Journal reports.

Neil Mulholland will take over next month as president of the federally chartered charity, which raises private funds for the nearly 400 U.S. national parks and monuments.

Texas Foundation Collects Cronkite Memorial Donations

Walter Cronkite’s family has requested that donations in his honor be sent to a charitable fund established by the late news icon’s children, according to mediabistro.com.

The Walter and Betsy Cronkite Fund, administered by the Austin Community Foundation, in Texas, will distribute grants to education, journalism, health-care, animal, and other charities supported by the couple.

Mr. Cronkite, who died July 17, will be buried today following a service at St. Bartholomew’s Church in New York, where his wife’s funeral was held in 2005.

Advocacy Group Sues for Hot-Dog Warning Labels

The Cancer Project, a Washington nutrition and health advocacy group, filed suit yesterday against several hot-dog makers, claiming frankfurters are hazardous to health and should carry warning labels, the Associated Press reports.

The suit cites an American Institute for Cancer Research finding that regular consumption of processed meat can increase the risk of colorectal and other cancers. Among the defendants are the makers of the Oscar Mayer, Ball Park, and Hebrew National brands and the Nathan’s Famous fast-food chain.

From The Chronicle: Drop in Donations Continues, Survey Finds

About 52 percent of charities saw a drop in donations between March and May of this year, according to a new survey by GuideStar, The Chronicle of Philanthropy reports. And the survey’s sponsors warn that plenty of data suggest the worst is yet to come.

Government and Politics Watch: Questioning Assumptions Behind Tax Incentives

The authors of a new study that attempts to measure the impact of tax incentives on charitable contributions by type of recipient say the results raise “intriguing” policy questions, The Chronicle of Philanthropy reports.

Plus: The IRS releases final regulations for returns of small groups.

Give and Take: How Philanthropic Is 'The Philanthropist'?

The Hudson Institute’s Bradley Center for Philanthropy and Civic Renewal and the Chronicle recently played host to a discussion about the NBC prime-time series The Philanthropist, exploring whether the fictional exploits of the globe-trotting philanthropist Teddy Rist are good or bad for the nonprofit world.

Plus: Advice on how charities should use online social networks.

July 22, 2009

Red Cross Meets Fund-Raising Goal and Eliminates Most Deficit

The American Red Cross surpassed its $100-million fund-raising target for the past nine months and has cut its deficit by more than three-quarters, The Washington Post reports.

President Gail McGovern told the National Press Club Tuesday that the Red Cross has collected $95-million in donations and $15-million in in-kind contributions since last fall. The charity has reduced its shortfall from $209-million to $50-million and plans to balance its budget next year, she said. The Red Cross has cut more than 1,000 jobs at its Washington headquarters and more than 350 positions elsewhere.

(Free registration is required to view this article.)

Texas Monthly Editor Will Head Nonprofit Political-News Site

The editor of a respected Texas investigative journal is teaming with an Austin venture capitalist to start a nonprofit Web site covering government and politics in the state, The New York Times Media Decoder blog reports.

Evan Smith, who twice led Texas Monthly to National Magazine Awards for general excellence during his eight-year tenure as editor, will take the reins at Texas Tribune, where he promises coverage of “deep-dive policy stuff.”

John Thornton, a general partner in the firm Austin Ventures, said he has raised $2.2-million and put $1-million of his own money into the project, giving the Texas Tribune a significantly bigger start-up fund than similar news ventures in Chicago, San Diego, St. Louis, and Minneapolis-St. Paul.

(Free registration is required to view this article.)

Islamic Nonprofit Group Paid for Minn. Congressman's Mecca Trip

U.S. Rep. Keith Ellison is facing a House Ethics Committee Review over an Islamic charity’s financing of his pilgrimage to Mecca, according to the Minneapolis-St. Paul Star Tribune.

The Minnesota Democrat, the only Muslim member of Congress, did not disclose the amount paid by the Muslim American Society of Minnesota for his December trip to Saudi Arabia to visit the holy site. The organization has received $879,000 in state funds through a rental arrangement with a charter school that has been probed by Minnesota officials for allegedly promoting Islam.

Characterizing the trip as a religious activity unrelated to his Congressional duties, Mr. Ellison said he complied with all House disclosure requirements and received ethics-panel approval before traveling. He reported the trip under disclosure rules for outside business activities, which do not require cost accounting, rather than under the more restrictive rules on gifts.

Endowment Plunge Spells Long-Term Pain for Once-Flush Colleges

Harvard, Yale, and other elite colleges face years of fiscal austerity as a result of the steep drop in the value of their endowments, reports Bloomberg.

While stocks have regained some ground in recent months, the universities’ endowments are weighed down by assets that haven’t recovered as quickly and are harder to sell, such as private equity, real estate, and commodities holdings. Yale and Princeton project no endowment growth this fiscal year, and Stanford estimates its fund may take more than 15 years to return to its $17.2 billion peak of August.

Study Shows British Charities Fail to Connect With Young People

Research by Britain’s Charities Aid Foundation suggests that British nonprofit groups are missing out on a sizable source of money and volunteer time by failing to communicate effectively with youths, reports Third Sector Online.

In a survey of 655 young people ages 10 to 16, 85 percent of respondents said organizations should work harder to engage them. Four to five times as many youths would like to donate time or money as do so now, and 70 percent said they would be prepared to give up a birthday or Christmas present for charity.

(Free registration is required to view this article.)

In the Arts: R.I. Museum Takes Month Off, Calif. Pow Wow Canceled

Despite booming attendance, the Rhode Island School of Design’s Museum of Art will shut down in August due to a drop in the Providence institution’s endowment, mediabistro.com reports, citing Brown University’s Daily Herald and The Providence Journal.

Museum director Hope Alswang told the Journal a “truly harrowing drop” in the museum’s portfolio necessitated the move, which will become annual. The museum has also cut its staff and instituted early retirements.

In other arts news, Southern California’s largest Native American cultural event, the annual Pow Wow at the Autry National Center, has been canceled this year due to a lack of funds, reports the Los Angeles Times.

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

From The Chronicle: Fired Inspector General Sues National-Service Agency

The former inspector general for the Corporation for National and Community Service who was fired last month is suing the organization in U.S. District Court for the District of Columbia, The Chronicle of Philanthropy reports.

Government and Politics Watch: Details Provided on Social Innovation Fund

The Corporation for National and Community Service has posted a “fact sheet” about the new Social Innovation Fund, which will provide grants to help nonprofit groups expand successful social projects, The Chronicle of Philanthropy reports.

Give and Take: Gates Foundation Defends India Grants

The Bill & Melinda Gates Foundation, in Seattle, has responded to recent critics of its India grants, notes a new post in Give and Take, the Chronicle’s online column rounding up the best opinion commentary about the nonprofit world.

Plus:

California’s plea to foundations to help fix the budget gap.

Why changes in immigration policy should matter to all charities.

A look at foundations that Tweet.

Prospecting: Giving by British Christians Remains Strong

A poll of Christians living in the United Kingdom finds they are still giving despite the recession, says the nonprofit consultant Mark Phillips, as noted in Prospecting, The Chronicle’s online column.

Philanthropy This Week: Foundation CEO Discusses the Economy

Listen to a new edition of Philanthropy This Week, the Chronicle’s podcast, to hear Luis Ubiñas, president of the Ford Foundation, discuss how his organization is shifting millions of dollars into grant making by cutting its staff expenses. Also, Alberto Ibargüen, president of the Knight Foundation, talks about a controversial approach to grant making. Plus: a look at forbidden fund-raising words.

July 21, 2009

Free Clinics Struggle as Demand Soars and Donations Fall

With the recession swelling the ranks of the uninsured, community clinics offering free care are facing rising demand just as the downturn is prompting major supporters to reduce their commitments, reports the Associated Press.

Nicole D. Lamoureux, executive director of the National Association of Free Clinics, said the facilities “have seen patient load increase by 40 to 50 percent” in the past year. Some 4 million Americans are expected to use the nation’s 1,200 free clinics this year.

The Cigna Foundation, which supports clinics in Philadelphia and southwestern Connecticut, has seen funding requests jump by 50 percent since last year, but Gloria Verrone, the grant maker’s spokeswoman, said its spending is down 15 to 20 percent. She said Cigna is maintaining existing ties to clinics but reducing individual allocations and not accepting any new grantees.

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

Washington Budget Cuts Have Charities Scrambling

Nonprofit groups in Washington are poring over their books in search of new reductions on the heels of Mayor Adrian Fenty’s revised fiscal 2010 budget, which eliminates $13-million in earmarks for the groups, The Washington Post reports.

Mr. Fenty reduced the allocations from $21-million to $8-million amid a growing deficit and rising public anger over the noncompetitive grants, which critics claim are used to reward political backers rather than support effective service.

But nonprofit leaders say the reduction in earmarks for youth, arts, and social-service charities will further limit their effectiveness in a time of reduced donations and rising demand for their programs. “The word that comes to mind is ‘devastating,’” said Ed Orzechowski, leader of Catholic Charities, in a statement yesterday.

(Free registration is required to view this article.)

Advocate Uses Online Tools to Share Stories of the Homeless

Mark Horvath, who has become a prominent online advocate for homeless people using new-media and social-media tools, is profiled by the Los Angeles Times.

Mr. Horvath, a recovering alcoholic who lived on the streets for several months in 1995, posts stories, photos, and videos on Twitter, the storytelling site Whrrl and his own blog, mixing his commentary with direct, often raw testimony from the homeless about their lives.

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

Opinion: Cultural Organizations Left Themselves Open to Huge Endowment Losses

Major cultural institutions left themselves open to huge endowment losses by pursuing risky investment strategies before the recession, according to a commentary in Forbes.com.

James Panero, managing editor of The New Criterion, writes that money managers and organizations such as Commonfund encouraged arts organizations to move “away from the safety of fixed-income instruments … to the volatility of domestic and foreign equities and even to ‘alternative investments.’”

As a result, he writes, institutions such as the Metropolitan Museum of Art and New York’s City Opera lost 30 percent or more of their endowments when they could have limited losses to around 10 percent with more diversified investment strategies.

Housing Charity Leader Named to Lead Big New York Social-Services Group

The Children’s Aid Society announced yesterday that Richard Buery Jr. will take over the venerable charity when its president, C. Warren Moses, steps down in October after 40 years of service at the New York organization, reports Crain’s New York Business.

Mr. Buery, 37, co-founded Groundwork, a nonprofit group that serves families in public housing in his native Brooklyn, N.Y. He will be the first black leader of the Children’s Aid Society and its youngest leader since it was founded by a 27-year-old in 1853.

Society trustees said Mr. Buery was chosen in part for his ability to modernize the charity, which employs 1,200 and operates 45 schools, camps, and other sites for disadvantaged children across New York. “He takes a social entrepreneurial approach to finding solutions for tough issues,” said Angela Diaz, the charity’s board president.

Scottish Charity Warns of Mass Layoffs Without Union Concessions

Quarriers, a large Scottish charity serving homeless and disabled people, has warned its 2,000 employees they face dismissal unless they agree to proposed wage and benefit reductions, the British newspaper The Times reports.

Unison, which represents Quarriers workers, said the organization canceled a planned July 10 meeting, then notified the union that all staff members would be let go and rehired under new terms unless they meet the charity’s demands.

Unison’s Stephen Brown said the union “recognizes Quarriers is feeling the financial pinch” and is prepared to negotiate, but he decried the charity’s “gunboat diplomacy” in threatening mass firings.

Quarriers ended the last fiscal year with a nearly $2-million deficit, which it cut to about $820,000 by dipping into reserve funds. “We are looking at potentially a bigger deficit this year and next year unless we can achieve savings and cut costs,” said Phil Robinson, the charity’s chief executive.

Government and Politics Watch: House Committee Cuts Obama's Spending Plans on National Service

A key House committee has voted to cut $90-million from President Obama’s proposed 2010 budget for the Corporation for National and Community Service — including trimming the Social Innovation Fund from $50-million to $35-million, The Chronicle of Philanthropy reports.

Transcript: Evaluating Spending on Online Network Tools

Read the transcript of today’s discussion about how charities can evaluate their spending on online tools.

July 20, 2009

Feed the Children Owns Million-Dollar House Near Hollywood

Feed the Children, an Oklahoma City charity, paid $1.2-million two years ago for a new four-bedroom home in Burbank, Calif., The Oklahoman reports.

Larri Sue Jones, a Feed the Children vice president and daughter of the organization’s founder, Larry Jones, lives in the house a few miles from Hollywood. The purchase came to light during the recent legal battle between Mr. Jones and the Feed the Children board for control of the charity, during which his daughter sided with the dissident directors and was fired from the organization. (See the Chronicle’s coverage of the Feed the Children fight.)

Mr. Jones said he had “no regrets” about buying the house, which he says serves as a combination home and office and helps the charity approach celebrities who can “open doors for us to raise in-kind and monetary gifts.”

Daniel Borochoff, president of the American Institute of Philanthropy, called the purchase “a ridiculous use of charitable money.”

Plus: The Oklahoman reports that Larri Sue Jones told the police in December that she was the victim of a burglary at her Burbank home while she was in Oklahoma City being fired.

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

Small N.C. College Puts Up Endowment and Campus as Collateral

Facing $19-million in debt, Greensboro College in North Carolina has put up its campus and most of its endowment as loan collateral, reports the News & Record of Greensboro.

In December the Methodist-affiliated liberal-arts college put up parts of the 19th-century campus as collateral in a renegotiated $16-million loan with Bank of America. Last month it put up the remainder of its real estate and shifted $12-million from its endowment to the bank in a deal designed to solve the college’s worsening debt problem, which stemmed from a burst of real-estate activity in 2002.

Conservative Organization Sought Fee to Support FedEx

The American Conservative Union, a nonprofit advocacy organization, offered to rally support for FedEx in a legislative battle for a multimillion-dollar fee, The Los Angeles Times reports, citing letters published last week by Politico, a newspaper that covers Washington.

In a June 30 letter to a FedEx lobbyist, Dennis Whitfield, vice president of the advocacy group, offered to back the delivery service in its battle against legislation that would loosen restrictions on union organization at FedEx, in exchange for a payment of $2.1-million to $3.4-million.

FedEx rejected the offer, and on July 15 David Keene, president of the advocacy group, joined other conservative leaders in signing a letter saying that FedEx had made “false and disingenuous” statements about its competitor, UPS, which backs the bill.

The nonprofit group said it still supported FedEx’s stand on the legislation and that Mr. Keene had signed the letter as an individual.

(Free registration is required to view this article.)

Inaugural Mandela Day Boosts Volunteerism in South Africa

South Africans marked their former president Nelson Mandela’s 91st birthday on Saturday by doing at least 67 minutes of work on behalf of AIDS orphans, the homeless, and others in conjunction with a campaign by the anti-apartheid icon’s foundations, reports the Associated Press.

The charities hope to establish Mandela Day as an annual event in which volunteers offer at least one minute of service for each of the 67 years Mr. Mandela has spent in public service.

Stevie Wonder, Aretha Franklin, and Alicia Keys were among the performers at a New York concert Saturday night to benefit Mr. Mandela’s AIDS foundation.

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

Scottish Golfer Seeks Money Back From Cancer Charity

Colin Montgomerie, a Scottish golfer, is embroiled in a dispute with a British charity over money he donated for construction of a cancer center that the organization subsequently decided not to build, the Daily Mail reports.

Mr. Montgomerie gave about $270,000 — including approximately $82,000 he received as presents after asking for donations at his wedding last year — to the Roy Castle Lung Cancer Foundation for a Glasgow facility to be named for his mother, who died of the disease in 1991. The charity decided last September not to build the center but to focus instead on research and patient support.

The British government’s Charity Commission ruled that the money should be returned, but the golfer’s Elisabeth Montgomerie Foundation said it has yet to receive a refund.

Nonprofit Bingo Hall in California Supports Israeli Settlements

Proceeds from a charity bingo hall in a poor, largely Hispanic town on the outskirts of Los Angeles are being sent to Israel to back settler communities in East Jerusalem and the West Bank, reports The Guardian.

Irving Moskowitz, a retired doctor who made a fortune buying and selling hospitals, bought the bingo hall in the Hawaiian Gardens neighborhood in 1988 and, per a state law that limits bingo to nonprofit operations, brought it under the aegis of his charitable foundation. Since then, tens of millions of dollars raised by the games have been donated to settlement construction in Israel and to advocacy groups that support it.

From the Chronicle: State Budget Battles Hit Charities

State governments are struggling to balance their budgets, leaving charities that rely on states braced for a potentially dismal financial future, The Chronicle of Philanthropy reports.

That is the highlight of the new issue of The Chronicle, which was posted online this morning. You can see everything in the new issue in our table of contents.

Give and Take: Should Foundations Finance The New York Times?

As newspaper fortunes continue to look gloomy, a new debate is emerging about whether The New York Times might consider seeking foundation grants, notes a new post in Give and Take, the Chronicle’s online column rounding up the best opinion commentary about the nonprofit world.

Online Discussion Tomorrow: Measuring the Payoff From Social Networks

Join us on Tuesday, July 21, at noon U.S. Eastern time for a live online discussion about how charities can estimate how much time and money to spend on efforts tied to social-networking Web sites such as Twitter and Facebook, on blogs, and in virtual worlds like Second Life.

Our guest will be Beth Kanter, author of Beth’s Blog: How Nonprofits Can Use Social Media.

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

What Does 'The Philanthropist' Mean for Philanthropy? Join the Debate Tomorrow

On July 21, The Chronicle of Philanthropy and the Hudson Institute’s Bradley Center for Philanthropy and Civic Renewal will host a discussion about the NBC television series The Philanthropist.

The Chronicle’s new issue, posted today, has an opinion piece by the Bradley Center’s director, William A. Schambra, arguing that despite their dismissal of the series, philanthropy professionals might have something to learn from the television show.

If you’re in Washington tomorrow, join us for a lunch conversation featuring:

Tom Fontana, who helped create the series
Steve Gunderson, president of the Council on Foundations
Sean Stannard-Stockton, who writes the Tactical Philanthropy column online and for the Chronicle’s print edition
Ian Wilhelm, a Chronicle senior writer who has covered foundations for many years

Stacy Palmer, editor of The Chronicle, and William A. Schambra, director of the center, will co-moderate the session. For free registration and more details, go to the Hudson Institute’s Web site.

And if you’d like to send a question for Ms. Palmer to pose to the participants, send a message to editor@philanthropy.com or add your thoughts here.

July 17, 2009

Ex-N.Y. Councilman Admits Diverting Nonprofit Funds

On the heels of his resignation from the New York City Council, Miguel Martinez pleaded guilty yesterday to stealing government and private funds through a series of fraud schemes, one involving nonprofit groups in his Manhattan district, according to The New York Times.

Mr. Martinez, who abruptly quit his council seat on Tuesday, admitted in U.S. District Court to receiving $55,000 in connection with the allocation of city funds and other support for the Washington Heights Arts Center and the Upper Manhattan Council Assisting Neighbors.

Under a plea agreement, prosecutors recommended Mr. Martinez serve 57 to 71 months in prison.

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

Gates Foundation Grant to Boost Computer Access in Libraries

The Bill & Melinda Gates Foundation has pledged $6.5-million to improve the quality of free computer access in public libraries in 11 states, reports the Associated Press.

The grants to benefit some 800 libraries in Hawaii, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Vermont, and Wisconsin are contingent on the facilities raising matching local money and their staffs taking part in a Public Library Association professional-development conference.

Watchdog Group Issues Warning on Cancer Charity

The Atlanta office of the Better Business Bureau is warning Georgians about the Cancer Fund of America, saying the Tennessee charity spends most of its funds on itself, The Atlanta Journal-Constitution reports.

According to an investigator for the watchdog agency, the fund reported to the Internal Revenue Service that it spent more than $8-million of the $8.8-million it collected in 2007, and that most of its giving was in the form of donated goods.

James Reynolds, chief executive of the cancer charity, said the Better Business Bureau’s assessment of the fund’s finances are unfair and that its 2008 documents will show a marked improvement in how much it raises and spends on services.

U.K. Charities Want Firm Spending Numbers on Planned Social-Investment Bank

The British government this week announced a three-month consultation on the shape of a prospective “social-investment bank” to finance volunteer organizations, but charities are voicing concern that officials have yet to say how much money they will get, reports The Guardian.

Nonprofit groups have been calling on the government to use at least $410-million in unclaimed assets in dormant bank accounts to support an institution to invest in social enterprises.

“The government’s consultation into the design and functions for a social-investment wholesale bank is an important step forward. However, it is also important that discussions start around how the bank will be financed, to make sure it is properly capitalized,” said Stuart Etherington, head of the National Council for Voluntary Organizations.

Harry Potter Fans Mobilize for Charity

Harry Potter fans have formed a powerful charity network, says Newsweek’s Web site.

The Harry Potter Alliance was founded by Andrew Slack, a 29-year-old Potter fan, has raised $15,000 for aid in Darfur and Burma through blogs and YouTube videos, and has donated 14,000 books to children in need.

Robert Thompson, a pop-culture historian at Syracuse University, said the alliance, which now numbers 100,000 members, is the first philanthropic organization of fans he has encountered.

“If we really want to be Harry Potter, we can’t all go out and find a basilisk to slay,” Mr. Thompson said of charity’s appeal for fans of the wizard hero of J.K. Rowling’s mega-selling book series. “But if you’re thinking of ways you can be a Harry Potter-esque hero in the real world, one of the things that suggests itself is philanthropy.”

Opinion: Bring California Colleges' Foundations Under Sunshine Law

California colleges’ and universities’ nonprofit foundations should be subject to the state’s Public Records Act, says an editorial in the Sacramento Bee.

Citing recent reports that Sonoma State University’s foundation might be out $1-million as a result of a loan to a board member who can’t repay, the editorial urges state lawmakers to close a “major loophole” in the records law that allows such organizations to escape the scrutiny to which the institutions themselves are held.

Though they are part of the public campuses’ educational missions because they raise money to support college priorities, the foundations “operate in a netherworld, outside of the normal rules for public accountability,” the newspaper writes.

From The Chronicle: Two Big Foundations Reduce Staff Size

Philanthropy continues to feel the effects of the economic recession as the W.K. Kellogg Foundation said it is offering buyouts to 40 percent of its staff members, while the Ford Foundation announced that almost 11 percent of its employees have left the grant maker after accepting voluntary severance packages, The Chronicle of Philanthropy reports.

Prospecting: Finding Wealthy Donors

A new survey suggests that fewer wealthy people live in American big cities, adding to the challenges for fund raisers in those metropolitan areas, notes Prospecting, The Chronicle’s online column.

Plus: Read the debate among readers about the best words for fund raisers to avoid and add your own.

Give and Take: Reconsidering Charity Tax Levels

As the debate heats up about how America will pay for proposed changes in the health-care system, lawmakers should reconsider their opposition to President Obama’s plan to reduce the charitable-tax deduction for wealthy people to support health fixes, argues a new post highlighted in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Online Discussion Next Week: Measuring Returns From Social Networks

Our guest will be Beth Kanter, author of Beth’s Blog: How Nonprofits Can Use Social Media.

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

What Does 'The Philanthropist' Mean for Philanthropy? Join a Debate

On July 21, The Chronicle of Philanthropy and Hudson Institute’s Bradley Center for Philanthropy and Civic Renewal will host a discussion about the NBC television series The Philanthropist.

If you’re in Washington, join us for a lunch conversation featuring:

Tom Fontana, who helped create the series
Steve Gunderson, president of the Council on Foundations
Sean Stannard-Stockton, who writes the Tactical Philanthropy column online and for the Chronicle’s print edition
Ian Wilhelm, a Chronicle senior writer who has covered foundations for many years

And if you’d like to send a question for Ms. Palmer to pose to the participants, send a message to editor@philanthropy.com or add your thoughts here.

July 16, 2009

Mass. Philanthropist Restores Employee Nest Eggs Lost to Madoff Fraud

Boston-area philanthropist Ronald I. Lappin has dipped into his own pocket to the tune of $5-million to replenish the retirement savings of employees at his property-development firm and charitable foundation, reports The Boston Globe.

The 401(k) plans at Shetland Properties, in Salem, Mass., and the Robert I. Lappin Charitable Foundation were managed by Bernard Madoff, who is now serving a 150-year prison sentence after being convicted of running a major investment scam.

(Free registration is required to read this article.)

Skoll and Redford Team Up to Produce 'Stories of Change'

Successful social entrepreneurs will be spotlighted in a documentary film series set up by former eBay executive Jeff Skoll’s foundation and Robert Redford’s Sundance Institute, Voice of America reports.

The $3-million “Stories of Change” project will produce 10 films, culled from more than 300 proposals, that portray innovators in serving the world’s poorest areas, such as the Grameen Bank founder Muhammad Yunus and Ann Cotton, a British activist who started an education training program for young African girls. The film will begin screening in theaters and on television early next year.

Weinberg Foundation Announces Two-Year, $200-Million Grant Plan

The Harry and Jeanette Weinberg Foundation, one of the biggest philanthropic supporters of Jewish causes, announced yesterday that it would give out $100-million in each of the next two years and solicit its first new recipients since November 2008, the Jewish Telegraphic Agency reports.

The Baltimore foundation said it will start accepting letters of inquiry next month for shares of $21-million in new spending over the next two years, ending an eight-month moratorium on new grants. The remaining funds represent pre-existing multiyear grants.

Century-Old Memphis Family-Services Agency Closes

After struggling financially for several years, Memphis-based Family Services of the Mid-South will shut down this summer, but one of its key programs will be preserved by the local United Way, the Memphis Commercial Appeal reports.

Founded in 1893 by local churches, the organization evolved into an agency serving the poor and homeless and one of Memphis’s major counseling options for victims of domestic violence and other people in crisis. Its 24-hour Crisis Center hotline receives an estimated 15,000 calls a year.

The telephone service will be maintained via money from United Way of the Mid-South “because that’s a very important resource for the community,” said Dave Skorupa, United Way vice president of communications. Family Services is trying to place clients of its other programs with other agencies, he said.

Charity Gains Bigger Share of Pot Among Poker Pros

The Los Angeles Times reports on the growing role of charity on the increasingly popular professional poker circuit.

Star player Annie Duke has raised about $2.5-million for Africa-relief through a series of tournaments, and pros Phil Gordon and Rafe Furst’s Bad Beat on Cancer has collected $2-million from players who pledge 1 percent of their winnings in World Series of Poker events and from charity tournaments. Celebrities such as Don Cheadle, Jason Alexander, and Montel Williams have also used the game to support favorite causes.

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N.Y. Yankees Ramp Up Charity Effort With 'Hope Week'

The New York Times reports on the start Monday of the New York Yankees’ “Hope Week,” a five-day program to showcase the baseball team’s charitable and neighborhood presence.

Eight months in the making — and coming in a season in which the team has been intensely criticized over ticket prices at its new ballpark — the campaign will feature appearances by Manager Joe Girardi and all 25 players, divided into groups, at a series of events to draw attention to people and charities in need.

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From The Chronicle: Fund Raisers Predict Turnaround

College fund raisers predict about a 4-percent decline in donations for the fiscal year that ended in June, according to a survey by the Council for Advancement and Support of Education. But they also expect that trend to start turning around sometime in the next year, The Chronicle of Higher Education reports.

Government and Politics Watch: House Health Plan Could Depress Giving

When House Democrats issued a plan for overhauling the health-care system this week, they proposed a new surtax on wealthy people as a way to pay for expanded insurance coverage — a move some observers say could hurt charitable giving, reports a new post on Government and Politics Watch, the Chronicle’s online column.

Plus: A new blog highlights summer volunteer work.

Prospecting: A Gripe About Forbidden Words in Fund Raising

Jeff Brooks, creative director for the advertising agency Merkle, has a problem with nonprofit groups that attempt to restrict the use of words that help describe the work they do or the people they serve, reports Prospecting, the Chronicle’s fund-raising column.

Online Discussion Next Week: Social Networking's Payoff

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

July 15, 2009

Vehicle-Donation Charities Express Concern About 'Cash for Clunkers' Effort

A new federal effort to pay people up to $4,500 to junk old gas-guzzlers and buy new, more fuel-efficient cars could hurt charities that provide vehicles for needy recipients, National Public Radio reports.

Such groups say the program, set to start later this month, will cut into the pool of vehicles available for charitable use via donations or sales at used-car lots and auctions. They plan to lobby against extending the program when it expires November 1.

Former Pa. Senator Gets 55 Months for Nonprofit and Taxpayer Fraud

Former Pennsylvania State Senator Vincent J. Fumo was sentenced yesterday to four years and seven months in prison on fraud and corruption charges that included using nonprofit money to finance a lavish lifestyle, The Philadelphia Inquirer reports.

Prosecutors had sought a much longer term for the 66-year-old Mr. Fumo, a major Harrisburg power player before his legal troubles.

The longtime legislator was convicted in March of fraud running into the millions of dollars, including billing taxpayers for work his Senate staff did on personal and political projects and financing spending sprees with money from the Citizens’ Alliance for Better Neighborhoods, a Philadelphia nonprofit group run by a top aide.

N.Y. Councilman Resigns Amid Probe of Nonprofit Group He Backed

New York City Councilman Miguel Martinez abruptly quit his post yesterday as federal prosecutors prepared to charge him in connection with an investigation of a nonprofit group to which he allegedly steered public funds, reports The New York Times.

Mr. Martinez would be the first council member charged as part of a broad, two-year probe of the body’s use of discretionary funds to support favored community organizations. Last month two former aides to Councilman Kendall Stewart pleaded guilty to embezzling funds from a foundation Mr. Stewart had supported.

In March investigators raided the office of the Upper Manhattan Council Assisting Neighbors, which helps immigrant populations in the councilman’s district. The group, founded in 1998, has received more than $1.4-million in city funds since Mr. Martinez’s sister, Maria, joined its board.

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In the Arts: Public WNYC Buys Station, Van Cliburn Foundation Chief Retires

WNYC, the country’s largest public radio station, has purchased WQXR-FM from The New York Times and will convert it into a listener-supported outlet, the Times reports. The deal, which also involved commercial broadcaster Univision, preserves WQXR’s classical-music format. WNYC has begun a $15-million fund-raising campaign to cover the purchase and related costs.

The shift could raise concerns for institutions like the New York Philharmonic and the Metropolitan Opera, which rely on WQXR for exposure but now may find it competing for the depleted pool of charitable dollars for the arts, the newspaper says. WNYC chief Laura Walker downplayed such fears, saying the station wants to “extend and expand and deepen” its ties to other classical-music institutions.

In other arts news, the Fort Worth Star-Telegram says that Richard Rodzinski is stepping down as executive director of the Van Cliburn Foundation. Mr. Rodzinski’s 23-year tenure saw significant growth in the foundation’s signature event, the annual Van Cliburn International Piano Competition.

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

Two New England Planned Parenthood Offices Will Unite

The Rhode Island and Connecticut branches of Planned Parenthood will merge this summer, reports The Providence Journal.

Planned Parenthood of Connecticut’s leader, Judy Tabar, said the boards of both groups began looking late last year for ways to cut costs and streamline operations. “Very quickly we saw that we did not need two CEO’s” or duplicated efforts, she said. No layoffs are planned in connection with the move.

Canceled Soap Opera Donates Outfits to Wardrobe Charity

Hundreds of clothing items, shoes, jewelry, and accessories worn by characters on the long-running soap opera “Guiding Light” will be donated to a New York charity called Bottomless Closet, which outfits low-income women for job interviews, reports Crain’s New York Business. The show’s final episode airs in September.

“Since we film in New York City, it seemed fitting to help women in our community to improve their lives,” said Shawn Reeves, costume designer for the series, which has run for 72 years on radio and television.

The Philadelphia Inquirer reports on that city’s branch of a similar charity, Dress for Success, which in only its second year has become the second-largest of the national organization’s 94 affiliates.

From The Chronicle: Foundations Take On Expanded Advocacy Role

Foundations are stepping up their advocacy efforts to help the poor and other disadvantaged people, according a report by the Foundation Center, The Chronicle of Philanthropy reports.

Give and Take: Aid Group Apologizes for Botched Clothing Drive

An international aid group has taken the unusual step of apologizing for a botched effort to distribute clothing in Africa, notes a new post in Give and Take, the Chronicle’s roundup of the best blog posts about the nonprofit world.

Prospecting: Recession Causes Shift in Grant Makers' Attitudes

The economic crisis has prompted some positive shifts in attitude among donors and grant makers, says Ellen Remmer, president of the Philanthropic Initiative, in Boston, reports Prospecting, the Chronicle’s fund-raising column.

Plus: Silicon Valley experts offer fund raisers online tips.

Philanthropy This Week: An Interview With a Foundation CEO

Listen to a new edition of Philanthropy This Week, the Chronicle’s podcast, to hear an interview with Gara LaMarche, president of Atlantic Philanthropies, one of the nation’s biggest foundations. Plus, get an update on government activities affecting nonprofit groups.

Get Ahead: Deadlines for Grants and Awards

You can get an early look at the deadlines for grants and awards compiled by The Chronicle. We have posted on our Web site all the application deadlines that will appear in our July 2 issue.

You will also find an updated list of conferences and workshops designed for nonprofit executives.

July 14, 2009

Survey Finds Wealthy People Maintain Giving in Bad Times

Most wealthy Americans and Britons have maintained their giving levels over the past 18 months, the British newspaper the Telegraph reports.

A survey of 500 rich Americans and Britons by the financial-management house Barclays Wealth found that about three-quarters had not reduced giving since early 2008, and more than one in four had boosted donations.

Donors said they would be more inclined to skimp on luxury goods, travel, and dining out than curb their donations. “In some ways the recession and its knock-on effects have galvanized the attitudes and approaches taken by wealthy donors,” said Emma Turner, of Barclays Wealth.

Charity a Major Marketing Vehicle for All-Star Game Sponsors

Corporate sponsors of tonight’s Major League Baseball All-Star Game, in St. Louis, and related activities are upping the giving ante this year, hoping to raise their profiles without triggering accusations of excess, The New York Times reports.

Bank of America, Pepsi, State Farm, and other companies have increased contributions in connection with the game itself, last night’s Home Run Derby, and a Saturday night concert, benefiting charities such as the Boys and Girls Clubs, Feeding America, and research organization Stand Up to Cancer.

The Times writes that sponsors have reduced spending on luxury suites, hospitality tents, and other items that have become symbols of corporate sports largesse, focusing instead on charity as a way to associate themselves with a major event without seeming insensitive to the tough times fans are facing.

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Grass-Roots Groups Strive to Preserve Gains in Neighborhoods in Transition

Efforts by nonprofit groups to maintain economic progress in urban neighborhoods despite a wave of foreclosures and job losses are spotlighted in a report by The Wall Street Journal.

Organizations such as the Ogontz Avenue Revitalization Corporation, in Philadelphia, and Boston Community Capital offer refinancing or purchase of homes in working-class and low-income areas to prevent them from being foreclosed.

“The goal here is trying to stabilize neighborhoods by trying to keep homes occupied and productive,” said Elyse Cherry, chief executive of the Boston group.

In the Arts: Metropolitan Opera Chief Made $1.5-Million Last Year

Peter Gelb, general manager of the Metropolitan Opera, in New York, earned $1.5-million in salary and benefits for the 2007-8 fiscal year, a 36-percent increase from the previous season, says Bloomberg.

The figure reflects the period before the economic downturn, which has plunged the opera into the red and prompted cost reductions, including a 10-percent pay cut for Mr. Gelb and other senior staff members. The opera has persuaded stagehands to take a 2.5-percent cut and is seeking contract concessions from the American Guild of Musical Artists, which represents singers, dancers, and production workers.

The guild said last week that it would not renegotiate unless the opera permits and supports a study of internal finances.

In other arts news, the Los Angeles Times reports on Hero Initiative, a charity that offers financial aid to aging comic-book artists.

The beneficiaries, many of whom worked throughout their careers as freelancers without retirement or health benefits, include writers and illustrators for such superhero classics as Batman, Wonder Woman, and Flash Gordon. The program granted more than $230,000 in the 2007-8 fiscal year.

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Abrupt Closing of Md. Catholic School Unveils Rift

The abrupt closing of an 87-year-old Catholic school in a Baltimore suburb has sparked protests from families and alumni as well as consideration of “a long-brewing disconnect” between the school and the parish that manages it, according to the Baltimore Sun.

Towson Catholic High School, a Maryland institution whose closure was announced this month, had enrolled 163 students for the fall, of whom only 17 were members of Immaculate Conception Church, which runs the school; 86 percent of the enrolled students live outside Towson. The school said it faced a debt of $650,000 at the time of its closure, and parish officials said it could no longer afford to operate the facility.

“It was an outreach ministry into the city that brought many kids … from the northern part of Baltimore City, and they came out to Towson and got a great education, by all accounts,” said Dan Cahill, a member of the parish council. “But we didn’t see long-term those kids coming out of the school and then becoming active alumni and giving back.”

Parents and alumni were scheduled to protest the closing at a rally outside the school today — the third such event in a week. Pledge and petition drives are also under way, with nearly $16,000 raised so far, according to Mike Boehm, who is coordinating the fund-raising campaign, and several alumni have told The Sun that they are considering pursuing legal action to force the school to reopen.

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British Private Schools Ordered to Offer More Free Slots

Two British private schools are being ordered to offer more free placements to students who cannot afford tuition or risk being stripped of their charity status, The Guardian reports.

The schools, St. Anselm’s, in Derbyshire, and Highfield Priory, in Lancashire, are among the first dozen institutions put to a “public benefit” inspection by the British Charity Commission under a law designed to weed out organizations that charge fees without offering sufficient services to those who cannot afford them.

See an article from the Chronicle’s archive about Britain’s new rules.

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Obituary: Barbara Margolis, 79, Advocate for N.Y. Jail Inmates

Barbara Margolis, who founded a widely praised program to train prisoners at New York’s Rikers Island in the culinary arts, died this month from complications of cancer, according to The New York Times. She was 79.

Ms. Margolis, who served as New York’s commissioner of protocol under Mayor Edward I. Koch, began volunteering in the city’s jails in the early 1960s. Fresh Start, which she established in 1989 and ran for eight years, brings New York chefs to the massive Rikers Island prison to train prisoners in all aspects of restaurant work.

She also ran or started Rikers programs in horticulture, athletics, and journalism and helped revive The Rikers Review, a prison magazine.

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Give and Take: Is It Worthwhile for Foundations to Survey Grantees?

More and more foundations are asking grantees to evaluate the grant maker’s performance, but are the findings meaningful? That is one of the questions raised by a new post in Give and Take, the Chronicle’s roundup of the best blog posts about the nonprofit world.

From The Chronicle: How to Prepare for a Foundation Visit

What do you need to know about your organization’s financial situation before a foundation visit? How honest should you be about a budget shortfall?

Those are among the questions our experts answered today in an online discussion. You can read the transcript now.

LEARN HOW A TRUSTEE PERSUADES HIS PEERS TO RAISE MONEY

Ross McKnight, a wealthy oilman who has served on many nonprofit boards, says few trustees are ever told that raising money is among their top duties. If board members can’t grasp that basic rule, he says, “you have to change some trustees — and you have to change the culture.”

Learn how Mr. McKnight brought about such changes among trustees — and helped organizations raise big money — along with other advice from veteran fund raisers — in a Webinar produced by the editorial staff of The Chronicle of Philanthropy.

Join us tomorrow and save 40 percent off the standard rate if you are a Chronicle subscriber. Sign up now.

July 13, 2009

NAACP Marks Centennial and Mulls Broader Mission

As the National Association for the Advancement of Colored People marks its centennial, the organization is seeking to broaden its mission, reports The Washington Post.

The organization, which holds its annual meeting this week in New York, will consider ideas developed by its new president, Benjamin Todd Jealous, who notes, “We are, from our origin, a multiracial, multi-ethnic human-rights organization.”

The convention’s agenda includes discussions of disparate treatment of Latinos and blacks in the criminal-justice system and a multiracial panel of young activists dealing with national and global human-rights issues.

See an interview with Mr. Jealous in the Chronicle’s archive.

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California Disability Center Backs Down on Bonuses

A central California center for the developmentally disabled has rescinded its controversial decision to distribute a $500,000 budget surplus as bonuses to its 350 employees, according to The Modesto Bee.

The payouts, intended to compensate Central Valley Regional Center workers for possible future furloughs and layoffs, sparked criticism from advocates for disabled people and from the majority leader of the state Senate, who said the plan was irresponsible at a time of state budget cuts for social services.

Robert Riddick, the center’s director, said the charity would work with staff members to repay the bonus money, some of which employees had already spent.

D.C. Council to Investigate Councilman's Nonprofit Ties

The D.C. City Council is scheduled to hold hearings today on nonprofit groups to which Marion Barry, a member of the council, has steered hundreds of thousands of dollars in city grants, reports News Channel 8.

The hearings follow a Washington City Paper report that Mr. Barry secured $75,000 for each of the six groups in June 2008, five months before they were registered with the city agency that regulates nonprofit groups. Five of the groups have since received additional grants totaling $500,000.

According to the City Paper, the groups’ incorporation papers were drawn up by members of Mr. Barry’s staff, and they are overseen by a close associate of the former Washington mayor, who now represents the city’s Ward 8 on the council.

Christian Charities Rely More on Volunteers as Economy Worsens, Study Finds

Christian nonprofit organizations are increasingly relying on volunteers as the economic downturn drains their resources, reports The Christian Post.

One in five respondents to a survey conducted for the Christian Leadership Reliance said they are using volunteers to a greater extent to help make ends meet. More than a third of the 250 respondents have instituted hiring freezes, and 28 percent have reduced the number of full-time staff members. However, only 21 percent said the recession has made a difference to their organization.

“If there was one theme that kept coming through in respondent comments, it is that Christian charity and church leaders have a strong sense of a larger story,” said David Schmidt, a consultant whose agency did the study.

Film Prize Brings Train of Donors to 'Smile' Charity

Smile Train, a nonprofit group that offers surgeries to fix mouth deformities for poor children, has gained tens of thousands of new donors since a film on its work won the Academy Award for best documentary short film in February, Bloomberg reports.

Weekly donations doubled in the wake of the Oscar win for Smile Pinki, which Brian Mullaney, president of Smile Train, commissioned after failing to find success on a fund-raising trip to Hollywood. The film follows a 6-year-old Indian girl with a cleft in her upper lip through her successful surgery.

The visibility from the award has helped the charity enlist 37,000 new donors, and the group will post a $1-million surplus this year, the news service says.

Opinion: Ex-Promoter Uses Marketing and Online Savvy to Build Charity

In an article in the New York Times, columnist Nicholas D. Kristof praises Scott Harrison, who has used new-media tools such as Google Earth and Twitter to quickly expand his nonprofit organization “charity:water,” saying his work should serve as a model for nonprofit groups.

Mr. Harrison, a 33-year-old ex-nightclub promoter who abandoned a luxurious, drug-fueled New York lifestyle five years ago to devote himself to nonprofit work, founding charity:water in 2006.

Since then the group has raised $10-million from 50,000 donors to provide clean water to poor people in Africa and Asia, pioneering the use of online tools to raise money, promote campaigns, and help donors track the progress of projects they have supported.

See an article from The Chronicle’s archive about Mr. Harrison’s work.

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From The Chronicle: Has the Golden Age of Giving Ended?

Speakers at the annual meeting of the Council for Advancement and Support of Education said that even when the economy recovers, the pace and number of big gifts to colleges will probably slow considerably. As a result, they said, major changes are needed in how campaigns are conducted to meet the challenges of the future, The Chronicle of Higher Education reports.

From The Chronicle: Federal Aid to Volunteerism and Innovative Charities

In the first step in the budget process, a key House committee voted last week to spend less than President Obama wanted on community service and a new fund to support innovative charities, reports The Chronicle of Philanthropy.

Plus: The White House clarified how charities will be selected to receive money for innovative efforts.

Give and Take: A Charity Watchdog Defends His Approach

Ken Berger, president of Charity Navigator, defended his group’s efforts to monitor charities, in a frank exchange with leaders of international organizations last week, notes the Chronicle’s Give and Take column

Online Discussion Tomorrow: Getting Ready for a Foundation Visit

Join us on Tuesday, July 14, at noon U.S. Eastern time for a live online discussion about the best ways to prepare for a visit from a foundation or other potential big supporter.

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

Coming on Wednesday: How to Teach Board Members to Raise Money

The economic downturn has made many trustees reluctant to give — and even more unwilling to ask friends and colleagues for charitable donations.

Join The Chronicle for a special 90–minute Webinar on July 15 at 2 p.m. Eastern time and learn how to help your board members overcome their fears and take action now that will secure your organization’s financial future.

The first hour will offer you concrete and proven techniques to get your board motivated. The Webinar’s final 30–minute segment will contain material designed for you to share directly with your board members. Use it as the centerpiece of your next board meeting or retreat — all at no extra cost.

Plus: Every Webinar participant will receive a free book on building strong boards, written by one of the Webinar instructors.

Please note: Full participation in “How to Get Your Board Members to Raise More Money — Even in a Recession” is applicable for 1.5 points in Category 1.B — Education of the CFRE International application for initial certification and/or recertification.

And if you’re a Chronicle subscriber, you get an extra bonus: 40 percent off the Webinar registration fee. Sign up today.

July 10, 2009

Health-Care Overhaul Could Imperil Hospital Tax Breaks

The notion of reducing tax exemptions for hospitals is gaining momentum as Congress gets serious about working on a health-care measure, reports The Wall Street Journal

Sens. Max Baucus and Charles Grassley, respectively the top Democrat and Republican on the Senate Finance Committee, have floated the notion of reducing tax breaks unless nonprofit hospitals — some of which have amassed large cash surpluses in recent years — offer a minimum amount of charity care, limit charges to uninsured patients, and ease aggressive collection practices.

Hospital officials say they are already suffering financially due to the recession and that the loss of tax-exempt status would raise their cost of borrowing and jeopardize fund raising.

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

Binghamton U. Fund Raiser Sues University, Charging That Bosses Sought Sexy Tactics

A Binghamton University fund raiser is suing the New York State institution and two senior athletic-department officials she says pressed her to use her sexuality to ply big donors, reports the Associated Press.

Elizabeth Williams’s lawsuit alleges that her supervisors, Jason Siegel and Chris Lewis, “expected women in the [athletic] department to raise money by exploiting their sexuality,” for example urging her to dress provocatively for alumni gatherings and using her appearance as a “business tactic.” She said she complained to senior university officials but no action was taken.

A college spokeswoman said the university has “zero tolerance” for sexual harassment.

Shriners Vote to Keep Hospitals Open but Will Charge Some Patients

All 22 charity children’s hospitals run by the Shriners fraternal organization will remain open, but some facilities will be trimmed in size and the system will eventually start accepting payments from some patients, CNN reports.

The hospital system proposed closing six of the facilities, which historically offered free pediatric care regardless of families’ ability to pay, after losing more than a third of its $8.5-billion endowment last year.

Meeting at their annual convention in San Antonio, which ended yesterday, Shriners rejected that plan but agreed on changes that hospital officials said were necessary to keep all 22 sites open, including turning some into outpatient-only surgical centers and accepting insurance from patients who have it.

Wisconsin Judge Upholds Property-Tax Levy for Health Group

A Wisconsin judge has ordered a nonprofit health-care group to pay property taxes on equipment and furnishings at its offices, saying it does not pass a litmus test as a “benevolent” organization, the Milwaukee Journal Sentinel reports.

Waukesha County Circuit Court Judge Michael O. Bohren said ProHealthCare could be taxed on its headquarters because it supports numerous for-profit ventures. The organization, which fought the levies in court for three years, owns the nonprofit Waukesha and Oconomowoc memorial hospitals, which will not be affected by the ruling.

Deborah Blanks, president of the Wisconsin Nonprofits Association, characterized the case as an example of governments turning to tax-exempt entities to replenish depleted public coffers, “something that a lot of nonprofits are going to have to look at.”

Bank Deal Saves Michigan Opera

After 11 months of talks, the Michigan Opera Theatre has reached a deal with its banks to resolve a cash-flow crisis that threatened to put the company out of business, the Detroit Free Press reports.

The restructuring will help the strapped company rebuild its cash reserves, cutting its annual bond payments nearly in half, and work out a long-range plan to eliminate its remaining $18-million debt on the Detroit Opera House and its parking garage.

Sri Lanka Asks Relief Groups to Reduce Operations

The government of Sri Lanka wants international aid organizations to scale back operations on the island nation following the end of its 25-year civil war, reports Reuters.

Sri Lanka has come under international pressure to ease relief groups’ access to camps housing hundreds of thousands of people displaced by fighting, which ended in May. But Mahinda Samarasinghe, minister of disaster management and human rights, said the country’s “challenges are now different” and that services can be provided by domestic operations.

The International Office of the Red Cross said it was closing some of its Sri Lanka offices following the directive but will maintain a dialogue with the government on humanitarian concerns.

Give and Take: Another Foundation Decides to Give It All Away

Hit hard by the economic downturn, a small foundation has opted to spend all of its remaining assets and close its doors — a move some nonprofit leaders have encouraged, reports Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Online Discussion Next Week: Getting Ready for a Foundation's Visit

Join us on Tuesday, July 14, at noon U.S. Eastern time for a live online discussion about the best ways to prepare for a visit from a foundation or other potential big supporter.

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

Teaching Board Members to Raise Money: a Chronicle Webinar

The economic downturn has made many trustees reluctant to give — and even more unwilling to ask friends and colleagues for charitable donations.

Plus: Every Webinar participant will receive a free book on building strong boards, written by one of the Webinar instructors.

And if you’re a Chronicle subscriber, you get an extra bonus: 40 percent off the Webinar registration fee. Sign up today.

July 09, 2009

Georgia Foundation Sues Bank Over Risky Investment

A suburban Atlanta foundation is suing SunTrust Bank for allegedly failing to properly disclose the risk when it invested $8-million of the grant maker’s money in a complex type of security, reports The Atlanta Journal-Constitution.

According to the suit, SunTrust placed the Hudgens Family Foundation funds in auction-rate securities in 2005, characterizing them as a safe, conservative investment. The market for the securities dried up during the global financial crunch, making it virtually impossible to sell such holdings and locking the money into an account that takes 35 years to mature, according a foundation lawyer.

SunTrust has denied any wrongdoing, saying it “handled this account appropriately.” The investment represents more than a quarter of the assets of the foundation, which was established by Scott Hudgens, a Georgia developer and philanthropist who died in 2000.

Calif. Center for Disabled Criticized for Staff-Wide Bonuses

A central California nonprofit group that serves nearly 15,000 developmentally disabled people has come under fire for using a $500,000 budget surplus to give bonuses to its 350 employees, reports the Associated Press.

Critics, including advocates for the disabled and the majority leader of the state Senate, say the bonuses paid by the Central Valley Regional Center are inappropriate when California is slashing spending on social-service organizations.

Robert Riddick, the center’s director, said the charity’s board felt the one-time payments, which averaged about $1,400 per worker, were warranted because the organization had successfully lowered costs without compromising client services and employees are facing higher health-care costs and uncertainty about the future.

Charity Linked to Disgraced Pa. Politician Seeks Restitution

A Philadelphia nonprofit group that had close ties to former Pennsylvania state Senator Vincent J. Fumo is seeking restitution of $2.1-million it spent fighting the fraud prosecution of its executive director, a longtime aide to Mr. Fumo, The Philadelphia Inquirer reports.

Citizens’ Alliance for Better Neighborhoods “suffered significant financial losses as a direct result of the illegal activities” of Mr. Fumo and Ruth Armao, according to court filings. The defendants were convicted in March on a slew of fraud and other charges, among them using the charity to pay for numerous personal purchases. They are scheduled to be sentenced this month.

The nonprofit group paid for Ms. Armao’s defense. The state attorney general’s office has started the legal process to dissolve the organization.

In the Arts: Kennedy Center Chief Calls for National Arts Policy

In a commentary in The Huffington Post, Michael Kaiser, president of the John F. Kennedy Center for the Performing Arts, calls for a federal arts policy to replace what he calls a “helter-skelter approach” to cultural financing.

Mr. Kaiser writes that nine government agencies provide support for the arts, but “there is literally no coordination between these agencies on their arts spending, nor is there any central governing philosophy or policy. … This cannot yield the most effective or efficient results.”

The solution, he argues, lies not in establishing a “Ministry of Culture” but in investing authority to a single White House entity to pursue common, multi-agency policies on arts education, cultural diplomacy, and sustaining arts organizations.

In other arts news, Washington’s Shakespeare Theatre Company will furlough its 100-plus staff members in staggered terms over the summer, The Washington Post reports. Stacy Shaw, marketing director for the troupe, said it is “trimming back” amid a slump in subscription sales.

Also, a Los Angeles Times editorial questions the Orange County Museum of Art’s recent sale of 18 paintings to an unnamed collector for $963,000. The Times said the deal “flouted several venerated traditions of the museum world” and that the works could have fetched far more money.

(Free registration is required to view the Post and Times articles.)

Nonprofit News Site Makes a Debut in Seattle

Several journalists have started a nonprofit organization to pursue investigative reporting in the western United States and Canada, reports the Seattle Post-Intelligencer.

InvestigateWest made its debut on Wednesday with a small grant from the Fund for Investigative Journalism and what its executive director, Rita Hubbard, called “sweat equity” from former staff members of the Post-Intelligencer, who are working with no pay. The Seattle newspaper shed most of its employees after switching to an online-only format this year.

The new site is a member of the Investigative News Network, started last week by some two dozen news-media outlets and organizations to support nonprofit investigative journalism.

Charity Reveals Winner of Buffett Lunch Auction

The Glide Foundation, the beneficiary of an annual auction for lunch with the investor and philanthropist Warren Buffett, yesterday revealed this year’s winner to be Salida Capital, an investment firm in Toronto, the Associated Press reports.

The company won the one-week eBay auction in late June with a $1.68-million bid to share a meal with Mr. Buffett. All proceeds from the auction benefit Glide, which serves poor and homeless people in San Francisco and was a favorite charity of the billionaire investor’s late first wife, Susan.

Social Good Podcast: Raising Money on Facebook

Listen to the latest edition of our monthly podcast, Social Good, to learn more about how charities can use the Causes section of Facebook to attract attention and donors.

Allison Fine, the host of Social Good, interviews the co-founder of Causes, as well as a small charity that has successfully used Facebook to find supporters.

Government and Politics Watch: Financing the Health-Care Overhaul

More than 600 nonprofit, advocacy, religious, and labor groups have united to urge Congress to raise taxes on wealthy people to help pay for reshaping the health-care system and other national priorities — including possibly limiting the tax breaks for charitable deductions as proposed by President Obama, reports a new post on Government and Politics Watch, The Chronicle’s online column.

Give and Take: Are International Charities "Abjectly Ineffective" at Marketing?

Would more people to give to international causes if charities were better at marketing? That is a topic under debate in a new post in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Online Discussion Next Week: Getting Ready for a Visit From a Foundation

Join us on Tuesday, July 14, at noon U.S. Eastern time for a live online discussion about the best ways to prepare for a visit from a foundation or other potential big supporter.

Foundation visits often make the difference between winning and missing out on a grant. Moreover, they often set the tone for longer-term relationships with foundation leaders.

Among the questions our panel of experts will answer: Who within your organization should be involved in these visits? Should you ask board members to join in? Or a representative from one of the programs your group supports? How should you plan the day? And what do foundations want to see during such visits?

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

From The Chronicle: A 70-Year-Old Charity Adopts a New Identity

Christian Children’s Fund this month changes its name to ChildFund International, part of an attempt to show the public how its mission has changed. The Chronicle takes a look at how the group made the decision and how it will affect the organization’s fund raising and strategic direction.

Teaching Board Members to Raise Money: a Chronicle Webinar

The economic downturn has made many trustees reluctant to give — and even more unwilling to ask friends and colleagues for charitable donations.

Plus: Every Webinar participant will receive a free book on building strong boards, written by one of the Webinar instructors.

And if you’re a Chronicle subscriber, you get an extra bonus: 40 percent off the Webinar registration fee. Sign up today.

July 08, 2009

From The Chronicle: Jury Ruling in Foundation Case

A federal jury on Tuesday ruled that a $4-billion endowment that is owned by the Starr International Foundation was not improperly seized from a fund set up to pay bonuses to employees of AIG, the financial firm that collapsed in the fall, The Chronicle of Philanthropy reports.

$100-Million Donated to NYU Medical Center

Two prominent financiers have donated $100-million to New York University’s Langone Medical Center, The Chronicle of Higher Education reports.

Fiona Druckenmiller, who has been a trustee at the medical center since 2006, and her husband, Stanley F. Druckenmiller, a chairman of the Harlem Children’s Zone, made the donation, the fourth $100-million gift the institution has received since April 2008.

The medical center is named after Kenneth and Elaine Langone, who donated $100-million to the institution last year and had already donated $100-million in 1999. You can read more about the Langones and their efforts to attract big gifts to the university medical center in this article from the Chronicle of Philanthropy’s archive.

(A paid subscription or temporary pass is required to view the Chronicle of Philanthropy article.)

Shriners Vote to Save Charity Hospitals

Shriners members voted Monday against plans to close six of the 22 charity children’s hospitals operated by the fraternal organization, reports CNN.

The more than 1,000 delegates to the Shriners’ annual convention in San Antonio also voted to reopen a Galveston, Tex., hospital that had been closed last year after flooding caused by Hurricane Ike.

Representatives of the hospitals said the decision could still be reversed pending debate on cost cuts to keep the facilities operating. “We’re cautiously optimistic,” said Sally Mildren, spokeswoman for a hospital in Spokane, Wash., that was one of the six the group was considering closing.

The hospital system’s headquarters declined to comment on the vote, saying details on the facilities’ status would be released when the convention ends Thursday.

(See the Chronicle article on how Shriners and other nonprofit groups are dealing with tough decisions because of endowment losses.)

(A paid subscription or temporary pass is required to view the Chronicle article.)

Donation Drop Leads to Job Cuts at World Vision

Christian relief organization World Vision has laid off 50 of its approximately 1,200 employees in the United States and eliminated another 25 vacant positions in response to a steep drop in donations, reports The Seattle Times. The cuts amount to more than 4 percent of its American work force.

The charity, in Federal Way, Wash., is seeking to close a $39-million deficit in its budget for its current fiscal year. It is also cutting contributions to employees’ retirement plans in half, raising premiums for health benefits, and canceling merit raises.

Private cash donations to World Vision dropped 18 percent in the most recent quarter, following a 3-percent drop from January through March.

Arts Endowment Announces Second Round of Stimulus Grants

The National Endowment for the Arts on Tuesday announced nearly $29.78-million worth of stimulus grants to 633 arts organizations across the United States, the Los Angeles Times reports.

The funds — which the federal agency said are intended “to support the preservation of jobs that are threatened by declines in philanthropic and other support during the current economic downturn” — nearly complete the allocation of the $50-million in federal arts aid included in President Obama’s stimulus package. The agency announced $19.8-million in grants in April.

Read the Chronicle’s special report on how all types of nonprofit groups are seeking money from the federal stimulus law.

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

Accountant Charged With Stealing From Harvard Student Group

A former accountant for a student religious group at Harvard University has been charged with stealing more than three-quarters of a million dollars from the organization, reports Bloomberg.

Staffers at Harvard Hillel, a nonprofit Jewish student group, allege that William O’Brien diverted some $780,000 from the organization into a private account and used it to purchase sports tickets and travel, according to a statement by prosecutors.

A grand jury in Massachusetts’s Middlesex County indicted Mr. O’Brien on counts of larceny, forgery, and failing to file tax returns. Mr. O’Brien was a contract employee of InSource Services. A representative of the Wellesley, Mass., company refused to comment.

(Free registration is required to view this article on the Boston Globe Web site.)

British Charities Facing More Legal Challenges Over Bequests

Nonprofit organizations in Britain are facing an increasing number of lawsuits challenging bequests they were expected to receive, reports Third Sector Online.

Lawyers say there has been a significant rise in recent years in appeals filed by disgruntled family members of late donors and that the recession may be exacerbating the trend.

Maine Court Blocks Charitable-Immunity Defense in Church Abuse Case

Maine’s highest court ruled Tuesday that the Roman Catholic Diocese of Portland cannot use charitable immunity as a protection in a sex-abuse lawsuit, the Associated Press reports.

Maine is one of a handful of states that retain some form of protection of charities in lawsuits. But the state’s Supreme Judicial Court ruled in a 5-2 decision that the defense can be raised only in cases of negligence by the charity, not intentional acts.

Obituary: Gary Tobin, 59, Analyst of Jewish Philanthropy

Gary Tobin, a nationally recognized expert on Jewish philanthropy, died Monday after a long illness, the Jewish Telegraphic Agency reports. He was 59.

Mr. Tobin, founder of the Institute for Jewish & Community Research, in San Francisco, argued forcefully for Jews to be more welcoming to converts and gentile spouses in mixed marriages. The institute’s B’Chol Lashon (In Every Tongue) program reached out to non-white Jews and promoted awareness of Jewish diversity.

An analyst on trends in Jewish giving, he occasionally contributed to The Chronicle of Philanthropy and was widely quoted in the national media following the revelations of the financier Bernard Madoff’s Ponzi investment scheme.

Read Mr. Tobin’s assessment of the Madoff scandal in The Chronicle.

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

From The Chronicle: Many Charities Change Investment Mixes, Survey Finds

Seventy-one percent of American nonprofit organizations in a new survey say they are making changes in how they allocate their invested assets, in the wake of staggering losses brought on by the recession and market volatility, reports The Chronicle of Philanthropy.

From The Chronicle: Big Medical-Relief Charity Closes

International Aid, a relief charity in Spring Lake, Mich., is suspending its operations after nearly three decades of work helping poor people abroad, The Chronicle of Philanthropy reports.

Give and Take: A 'War on Philanthropy'?

Has President Obama declared “war on philanthropy”? That is the question posed in a new post on Give & Take, the Chronicle’s roundup of the best blog posts about the nonprofit world.

Plus:

Some donors to Kiva are protesting the organization’s decision to offer loans to entrepreneurs in the United States.

Google has started a new effort to help poor Africans gain access to health and agriculture information on their cellphones.

Why do people get so defensive when international aid efforts are criticized?

Prospecting: 'Summer of Social Good'

A new effort is under way to use online social networks to benefit charities, reports Prospecting, the Chronicle’s fund-raising column.

Plus:

A new gauge to help fund raisers determine when the recession is over.

A fund-raising guide for community organizers.

Teaching Board Members to Raise Money: a Chronicle Webinar

The economic downturn has made many trustees reluctant to give — and even more unwilling to ask friends and colleagues for charitable donations.

Join The Chronicle for a special 90–minute Webinar on Wednesday, July 15 at 2 p.m. Eastern time and learn how to help your board members overcome their fears and take action now that will secure your organization’s financial future.

Plus: Every Webinar participant will receive a free book on building strong boards, written by one of the Webinar instructors.

And if you’re a Chronicle subscriber, you get an extra bonus: 40 percent off the Webinar registration fee. Sign up today.

July 07, 2009

New CEO Named for Big Jewish Charity Network

United Jewish Communities has named Jerry Silverman, who oversaw huge fund-raising growth for Jewish summer camps, chief executive of the national charity network, effective September 30, the Jewish Telegraphic Agency reports.

A former senior executive at Levi Strauss and Company and the shoe retailer Stride Rite, Mr. Silverman has served since 2004 as executive director of the Foundation for Jewish Camp. During his tenure, that organization’s budget grew from $1-million to $22-million.

He takes the reins at United Jewish Communities, an umbrella group that raises and distributes about $3-billion annually for Jewish charities, as it struggles with a shrinking budget and a major drop-off in fund raising. Its biggest member, UJA-Federation of New York, last week reported that donations fell 11 percent in its 2008-9 campaign.

Read more about Mr. Silverman in an article from the Chronicle’s archive.

Senate Bill Could Ease Background Checks for Children's Charities

Legislation proposed by Sen. Charles Schumer, Democrat of New York, would make it easier for charities that serve children to check the backgrounds of potential workers and volunteers, reports Newsday.

Mr. Schumer, a New York Democrat, said the bill would allow organizations access to Federal Bureau of Investigation records through a new clearinghouse for a nominal fee. Under the current system, he said, a job applicant’s or volunteer’s conviction of a sex crime or other offense in one state would not show up in a check of New York State records.

South Korea Leader Donates $26-Million to Scholarship Fund

Lee Myung-bak, president of South Korea, on Monday pledged $26-million, most of his personal fortune, to create a scholarship fund for needy students in his homeland, The New York Times reports.

The promise fulfills a 2007 campaign vow by Mr. Lee, a former Hyundai executive, who pledged to donate his personal wealth after he was accused of accumulating his riches through illegal means. He has since been cleared of those charges.

All of Mr. Lee’s assets, save his $3.5-million home in Seoul, will go to the Lee Myung-bak and Kim Yoon-ok Foundation, named after the president and his wife and set to open next month.

He said his own journey from rural poverty to corporate and political success was made possible by the help he got while working in menial jobs to pay for his tuition.

(Free registration is required to view this article.)

Disease Charities Eye Market Turmoil's Impact on Fight for Cures

Nonprofit groups that serve people with illnesses are paying more and more attention to the financial world as turmoil in the stock and capital markets wreak havoc on the companies active in seeking cures, the Boston Business Journal reports.

Medical charities have become an increasingly important long-term investment source for firms working to develop new treatments. They face growing pressure to support companies in the early stages of research as they face money crunches, potentially stranding breakthrough therapies.

In the current environment, “Yahoo Finance is the most-visited Web site on my computer,” said Diana Wetmore, president of alliance management at the Cystic Fibrosis Foundation, in Bethesda, Md.

(A paid subscription is required to view the full article.)

British Hedge-Fund Boss Gives Nearly $800-Million to Kids' Charity

A British hedge-fund manager and philanthropist gave some $786-million last year to the children’s charity he co-founded with his wife, reports The Guardian.

Mr. Hohn, the media-shy chief of the London fund TCI, who topped last year’s Sunday Times list of Britain’s top donors, has now donated more than $1.6-billion in total to the Children’s Investment Fund Foundation. The charity is run by Jamie Cooper-Hohn, who founded it with her husband in 2002 to address poor children’s needs in the developing world.

In the Arts: Tough Times for Architectural Funds, San Francisco Art-Museum Plan Killed

Foundations that support architectural and design efforts are facing budget shortfalls but are trying to maintain ambitious programs, says the Architectural Record.

“What these architectural organizations are doing now is more important than ever. They are the first line of support for individuals in the field,” said Sarah Herda, executive director of Chicago’s Graham Foundation.

In other arts news, the clothing magnate Donald Fisher and his family have given up on plans to build a contemporary art museum at the former military base at San Francisco’s Presidio in the face of criticism from nearby residents and preservationists, the San Francisco Chronicle reports. Mr. Fisher, founder of The Gap, said he would explore other sites for housing his extensive collection.

Also, the Associated Press reports on the challenges suburban arts organizations face attracting patrons and donors in the current economic climate.

And The Philadelphia Inquirer profiles Timothy Rub, the incoming director of the Philadelphia Museum of Art.

Atlanta Boys & Girls Clubs Trim $2-Million From Budget

Boys & Girls Clubs of Metro Atlanta are cutting more than $2-million from their budget in the face of dwindling grants and donations and loss of endowment income, reports The Atlanta Journal-Constitution.

The reductions amount to more than 11 percent of the $17.7-million budget for the 30 clubs, which serve 17,000 kids annually.

William Lampley, the Atlanta organization’s president, said it has cut programs and reduced staff hours by 12 percent, primarily in positions that don’t directly serve children.

To keep track of layoffs and other responses to the recession that charities have undertaken, see this section of the Chronicle’s Web site.

Transcript: Making It Easy for Donors to Give Monthly

Read a transcript of our online discussion today about the ways small and medium-size charities can offer monthly giving options to donors.

Philanthropy This Week: How Charities Are Affected by State Money Woes

A new edition of our podcast, Philanthropy This Week, features an interview about the problems facing charities as states deal with major budget deficits.

Teaching Board Members to Raise More Money: A Chronicle Webinar

The economic downturn has made many trustees reluctant to give — and even more unwilling to ask friends and colleagues for charitable donations.

Plus: Every Webinar participant will receive a free book on building strong boards, written by one of the Webinar instructors.

And if you’re a Chronicle subscriber, you get an extra bonus: 40 percent off the Webinar registration fee. Sign up today.

July 06, 2009

Buffett's Annual Gift to Gates Foundation Down 30%

Warren Buffett’s annual gift of Berkshire Hathaway stock to the Bill & Melinda Gates Foundation, which is a payment on his 2006 mega-pledge to the organization, is 30-percent smaller than his gift to the foundation in 2008, reports The Seattle Times.

Mr. Buffett gave 428,688 shares of his company’s Class B stock, valued at $1.25-billion, compared with the 2008 gift of stock, which was worth $1.8-billion, the paper reports. The planned 5-percent decrease in the number of shares given each year, along with the plunge in the value of Berkshire Hathaway stock in the past 12 months, contributed to the decrease in gift size, reports CNBC.

Mr. Buffett pledged the bulk of his fortune to the Gates Foundation, estimating at the time of the gift that it would be worth at least $30-billion by the time he had delivered the last installment.

Former Pastor and Sons Accused of Fraud

Indiana state regulators have charged four men — a pastor and his three adult sons — with securities fraud after the men convinced about 11,000 congregation members to invest $120-million in church building projects but then used the money to buy planes, cars, and vacations, reports the Associated Press.

Vaughn Reeves and sons Chip, Chris, and Josh are alleged to have stolen about $6-million in the Ponzi scheme, the news agency reports. None of the men could be reached by the news service to comment on the allegations.

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

Big Foundations Name New Chairmen

Two big foundations, in Pittsburgh and Boston, have each named new chairmen:

Seward Prosser Mellon has succeeded his brother, Richard P. Mellon, as the new chair at the Richard King Mellon Foundation, in Pittsburgh, reports the Pittsburgh Business Times. Richard Mellon had held the position since 1981. The family’s foundation has more than $1.5-billion in assets, making it one of the wealthiest in the United States.

Michael B. Keating, a Boston lawyer, is the new chair of the Boston Foundation board, reports The Boston Globe. Mr. Keating takes on his new role after the departure of the Rev. Ray Hammond, who had been chair since 2002.

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

Calif. Group Helps People Volunteer for Tiny Amounts of Time

A new organization that seeks to give people without much spare time information about volunteering using their smart phones is the latest in a trend of marrying philanthropy and technology, reports National Public Radio online.

The Extraordinaries, in San Francisco, is an organization that seeks to let people find volunteering options when they realize they have a few minutes to give to others. Organizations including the United Nations and the John S. and James L. Knight Foundation are among its supporters, NPR reports.

Preparing the Next Generation of Do-Gooders

Several new ventures, such as NBC’s summer show The Philanthropist and President Obama’s “Summer of Service,” are refocusing the public’s attention on doing good and creating opportunities to teach young people to care about others, reports The New York Times.

Universities are jumping on the interest in philanthropy.

In one graduate course offered last year at Brandeis, four groups of students worked to distribute $10,000 each to Boston charities that had applied for grants.

“The real agenda is not teaching students about working in the nonprofit sector, but a wider social goal” of instilling a spirit of generosity, said Brandeis professor Andrew Hahn.

(Free registration is required to view this article.)

From The Chronicle: California Charities and the Budget Crisis

California charities that depend on state money to survive are facing a mixture of confusion and fear after Gov. Arnold Schwarzenegger declared a fiscal emergency and the state said it would start paying many of its bills with IOU’s, The Chronicle of Philanthropy reports.

Prospecting: Are Holiday Gift Guides Worthwhile?

Newspapers and magazines will soon start preparing holiday gift guides, and not all nonprofit groups think it is worth the time and energy it takes to participate, notes a post in Prospecting, The Chronicle’s fund-raising column.

Give and Take: Commercial vs. Nonprofit Ventures

Are the lines between nonprofit and for-profit ventures getting ever murkier, asks a new post in Give and Take, The Chronicle’s roundup of the best blog posts about the nonprofit world.

Plus:

Tony Blair enters a new phase of life: building a career in philanthropy.

A New York pastor resigns due to salary controversy and other concerns.

Aid groups are spending more money on security, survey finds.

Dueling research on foundation grant making sparks debate.

Online Discussion Tomorrow: Monthly Giving

Join The Chronicle on Tuesday, July 7, for a live online discussion about how to create successful monthly donation programs.

The discussion will explain the basics of an electronic funds-transfer program. Participants also will learn how they can set up these programs at their organizations, how to choose a vendor, and what messages they should be sending to prospective donors.

Our guests will be two fund raisers who have worked to set up such programs at small organizations.

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

July 01, 2009

New Documents Show Tension in Federal Community-Service Office

Documents newly released to Congress shed additional light on the difficult working relationship between employees at the Corporation for National and Community Service and its ousted inspector general, Gerald Walpin, The Washington Post reports.

Evidence sent to the Senate Homeland Security and Government Affairs Committee includes e-mails, memos, and a parody newsletter printed for a retiring staff member that contains racial and sexual jokes about the federal procurement process.

The Obama administration said it lacked confidence in Mr. Walpin, but he has said the agency’s claims about his performance lack merit. Congressional critics have raised concerns that he was fired for whistle-blowing.

(Free registration is required to view this article.)

Broadcasters Donated More Free Ad Time to Public-Service Causes Last Year

Broadcasters and other media companies donated commercial time, ad space, and other support for public-service campaigns worth more than $1.83-billion last year, The New York Times reports.

The total was slightly higher than in 2007 and includes spending on television and radio commercials, outdoor ads, print ads, ads online, public relations, and other types of advertising, the newspaper says.

Public-service ads are continuing to get more time and space in 2009 as the recession makes it harder for media companies to sell all their ad space, said Peggy Conlon, head of the Advertising Council, which calculated the figures. In the first quarter, the total number of placements rose 21 percent compared with the same period a year ago, she said.

(Free registration is required to view this article.)

Microsoft Veterans Enter Micro-Charity Field

The Seattle Times profiles two Microsoft veterans who are starting nonprofit groups that aim to connect a new generation of philanthropists with people in need via mobile and online technology.

Scott Oki, a retired Microsoft executive, co-founded SeeYourImpact, a micro-charity site that uses mobile-phone photos and videos to show donors the impact of their funds in the field. Microsoft Research program manager Adnan Mahmud and his wife, Nadia Khawaja, have created Jolkona, a nonprofit group that allows donors to give small, targeted gifts and use online tools to monitor their impact.

“If [donors] can actually see the impact of a $17 gift on a human life somewhere around the world, I believe that will open up the floodgates of hundreds of millions of micro-donors impacting the hundreds of millions of needy people around the world,” Mr. Oki said.

Effort to Help Arts Groups Handle the Recession Expands

The John F. Kennedy Center for the Performing Arts announced plans Tuesday to expand its crisis consulting for arts organizations that are struggling to survive the recession, the Associated Press reports.

Michael Kaiser, president of the center, will meet with arts leaders in all 50 states and Puerto Rico over the next year, he said, beginning with visits to New York, Kalamazoo, Mich., Indianapolis, and six other cities in the next two months.

Since February, the center’s “Arts in Crisis” effort has offered advice on fund raising, budgeting, marketing, and other areas in which arts organizations need help as their money woes increase.

Read an excerpt from Mr. Kaiser’s book on how arts groups can turn themselves around in a financial crisis.

Music Festival Offers Free Tickets to Volunteers for Homeless

After “selling out” the 35,000 available free tickets for the Virgin Mobile’s FreeFest music festival next month, promoters set aside an additional 3,000 passes for fans willing to volunteer to help the homeless, USA Today reports.

Volunteers who work 13 hours for selected homeless organizations will be rewarded with a VIP pass to the all-day Aug. 30 show at Merriweather Post Pavilion, in Columbia, Md., which will feature Franz Ferdinand, Weezer, Public Enemy, and Blink-182. Eight hours of service will earn a general admission ticket. Current ticket holders are being asked to donate $5 on-site.

“There are 2 million young people out there ages 12 to 24 who are homeless,” said Ron Faris of Virgin Mobile USA. “So we’re willing to eat the cost of a $100 ticket, if people can just donate $5 to help homeless youth organizations that have been decimated by this economy.”

Details on the “Free.I.P.” program are available at the festival Web site.

Global Philanthropy Forum and Like Events Gain Popularity

The Financial Times reports on the growth of events such as the Global Philanthropy Forum that are focused on providing education and networking options for givers.

The increasing popularity of philanthropic conferences featuring speakers, analysts, workshops, and networking sessions reflects the emergence “of a hands-on generation of philanthropists” who want to professionalize their giving and work to maximize its impact rather than just signing a check, the newspaper writes.

“It’s like doing exercise,” said Jane Wales, chief executive of the Global Philanthropy Forum. “You are much more likely to stay with something if you have a community of colleagues with which to pursue that work.”

(Free registration is required to view this article.)

From The Chronicle: President Obama Seeks 'Promising Nonprofits'

President Obama announced today that White House officials will travel across the country to find “the most promising nonprofits in America” as the administration decides how to spend a new $50-million fund to help charities expand innovative social projects, The Chronicle of Philanthropy reports.

From The Chronicle: Rockefeller's $100-Million Pledge

The Rockefeller Foundation has pledged $100-million over five years to help impoverished nations build better health-care systems, The Chronicle of Philanthropy reports.

From The Chronicle: Gender Differences in Charity-Leader Pay

Male executives at charities in Central Florida earn nearly 30 percent more than their female counterparts, according to a new study, The Chronicle of Philanthropy reports.

From The Chronicle: Colleges Tap 'Underwater' Endowments

Colleges are increasingly taking advantage of newly loosened rules on tapping so-called underwater endowments, The Chronicle of Higher Education reports.

In the past three years, 37 states and the District of Columbia have passed laws easing limits on how much colleges and foundations can spend from donor-restricted endowment funds that have fallen below their original market value. Since then the proportion of schools and affiliated foundations that have frozen spending from such “underwater” funds has dropped from 38 to 27 percent, according to a survey by the Association of Governing Boards of Universities and Colleges.

Thirty-one percent of institutions are spending from underwater endowments at the same rate as from healthier funds, the survey found. The association praised the legal change for giving colleges more financial flexibility in tight times.

From The Chronicle: Alumni Group Signs Deal to Take Over Closed College

A group of Antioch College alumni will take control of the shuttered Ohio college under a deal with trustees, reports The Chronicle of Higher Education.

Pending approval by state officials, the Antioch College Continuation Corporation will pay $6-million to take over the school’s endowment, its Yellow Springs campus, and a nearby nature preserve. The 150-year-old college suspended operations in 2007 after years of financial losses.

“The exciting opportunity that we have is that we can create a business model for this economy,” said Matt Derr, the corporation’s chief transition officer. “We tend to think that we will embrace this economy, stay small, and fund a small program.”

Government and Politics Watch: Debating the Social Innovation Fund

Even proponents of the $50-million social innovation fund President Obama announced Tuesday are raising questions about how it should operate, notes Government and Politics Watch, The Chronicle’s online column.

Give and Take: Shining 'Sunlight' on Failed Grant Request

On its blog, Sunlight Labs takes the unusual step of discussing its failed bid to win a federal grant, according to Give and Take, the Chronicle’s roundup of the best blog posts about the nonprofit world.

Plus: Can foundations borrow their way out of the recession?

Prospecting: British Fund Raisers Report Increase in Job Fears and Stress

The recession is catching up with British fund raisers, increasing their on-the-job stress levels, notes Prospecting, The Chronicle’s online column on seeking donations.

Plus: Are charities trying to deceive donors when they talk about fund-raising expenses?

Online Discussion Next Week: Monthly Giving

Join The Chronicle on Tuesday, July 7, for a live online discussion about how to create successful monthly donation programs.

Our guests will be:

Peter de Keratry, a fund-raising consultant at Petrus Development, in Austin, Tex., which helps nonprofit groups with fund-raising programs, capital projects, and endowments. Previously, he was development director of St. Mary’s Catholic Center at Texas A&M University at College Station and the campaign director at the Citadel Foundation.

Greg Gorman, development director at St. Mary’s Catholic Center at Texas A&M University, at College Station, where he oversees the center’s annual giving program as well as major gifts and bequests. He is also secretary of the Aggieland Catholic Foundation endowment fund.

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

Watch "The Philanthropist" With the Chronicle

Join the Chronicle on Wednesday at 10 p.m. Eastern time for a real-time discussion about the latest episode of the new NBC show “The Philanthropist.” You’ll find us at http://philanthropy.com/giveandtake/

For those who missed it, you can also catch a replay of our discussion of the premiere episode.

HOLIDAY NOTICE

Because of the Independence Day holiday, we will not be sending you Philanthropy Today on Thursday or Friday. We’ll be back in your mailbox on Monday and will continue to update our site with important news about the nonprofit world.