The NonProfit Times

Ex-Nonprofit Director Sentenced

2013-05-22T11:36:00.000-04:00

The ex-director of a nonprofit in Sanford, Maine was sentenced Tuesday to 2 1/2 years in prison for stealing more than $900,000 from the organization over six years. He was also ordered to pay $1.35 million in restitution and will report to prison on June 18.

According to a report in the Portland Press Herald, Thomas Nelson embezzled the money from York County Community Action (YCCA) from 2004 until his resignation in 2010. The organization provides services for low-income women and children.

Nelson's attorney, Jeffrey Silverstein, said that his client stole the money to fuel his gambling addiction, a habit he has since stopped. Nelson apologized for his actions in court, saying he let down YCCA.

"They trusted me, treated me well and I let them down."

Nelson transferred the money he stole from YCCA to a consulting firm outside Maine that returned part of the money in cash or payments toward his personal finances, according to court records. He continued to work for other nonprofits after he left YCCA in 2010, working as an executive director for Rockingham County Community Action in New Hampshire until, when faced with charges of embezzlement, he pleaded guilty in 2012.

The U.S. Attorney's Office recommended a reduced prison sentence for Nelson since he cooperated fully with investigators. Judge Nancy Torresen accepted this recommendation for this reason and because she wanted Nelson to return to the workforce quickly so he could repay his debt.

"From my point of view, you stole money from people who could least afford to lose it," Torresen told Nelson. "I consider this crime shameful."

In a written statement, Barbara Crider, YCCA's current executive director, thanked the U.S. Attorney's Office for their efforts and said that no program funds were taken as a result of Nelson's actions, and that services were not interrupted. The organization has also recovered a significant amount of the lost funds from its insurance bond.

You can read the full story in the Portland Press Herald.

Participate In The 2013 Nonprofit Salary And Benefits Survey

2013-05-21T10:48:00.002-04:00

Every year, The NonProfit Times and Bluewater Nonprofit Solutions publish the Nonprofit Salary and Benefits Reports. These in-depth studies help organizations to determine whether they are in line with similar organizations and to remain in compliance with the Internal Revenue Service. The data for these reports come from surveys of our readers and we will need your participation again for our upcoming 2013 Salary and Benefits Reports.

The 2013 Nonprofit Salary and Benefits Survey is the chance for you to be a part of the solution for your nonprofit and organizations across the country. Participants will also get a number of benefits for their time: Just for completing the survey your organization will get a FREE Executive Summary of the Survey, with full salary data for all positions. Everyone who completes the survey will receive 50% off the full report ($285 currently).

There are also some new features for this year's survey. We know that your time is valuable so we have streamlined the survey so that it will be even quicker to complete. In addition, if you have previously completed the 2011 or 2012 surveys, you now have the ability to jump start the 2013 survey completion process–you only need to change the data that is different.

Other new features include:

The survey is now compatible with all major Internet browsers including Safari, Chrome, Firefox, and Internet Explorer.
We've made it easier and more intuitive to enter data. We've also added more prompts to guide users.

The deadline to complete the 2012 Salary and Benefits Survey is July 31, but that doesn't mean you should wait. Head to our website today to start the survey and help all nonprofits. Results will be distributed to participants in October 2013.

Can You Fire A Volunteer?

2013-05-20T12:57:00.002-04:00

Everyone knows a nonprofit can fire an employee for not doing a good job, but is it possible to fire a volunteer? According to Susan J. Ellis, a consultant specializing in volunteerism and a frequent contributor to The NonProfit Times, it is entirely appropriate given the right circumstances.

There is a belief among some nonprofit managers that they just can't fire a volunteer. According to Ellis, this stems from three mistaken attitudes:

Thinking that the threat of punishment is the best way of getting good work;
Thinking that available punishment guarantees prevention of unwanted behavior; and,
Failure to understand why volunteers work without salary.

While it is appropriate to fire an under-performing volunteer, it should not be the first option. Ellis recommended trying these positive steps before resorting to discipline or dismissal:

Careful screening of volunteers when they apply is essential, as it would be for employees. This includes clarification of expectations, on both sides, even if this means writing a letter spelling out the purpose of the volunteer work, anticipated outcomes or products, lengths of commitment and other key mutual decisions.
Both employees and volunteers deserve full instructions — training, on how to do their work the best way.
Motivate through approval. Managing through rewards and recognition of work well done is always more effective.
Finally, understand that it is possible to terminate a volunteer. This is actually not as difficult as many nonprofit managers think. Remember, the manager has a legal right to designate who will be an agent of the organization, paid or not.

Webinar: Catching the Attention of the Smartphone Generation

2013-05-17T10:15:00.005-04:00

Should your organization really care about (and value) a Like, a Tweet, or a share? It may not seem like much right now, but these activities could be worth a fortune in the future.

In partnership with Avectra, The NonProfit Times is pleased to present a free webinar -- "Catching the Attention of the Smartphone Generation" -- on the value of social giving on June 6 at 2:00 p.m. EST. John F. Clese of Avectra, along with Dennis Chyba, president and founder of Adcieo, and Brittany Flower, communications and marketing manager at Susan G. Komen's Maryland affiliate, will discuss how your organization can reach the Millenial generation. Although they aren't in their prime donation years, it doesn't mean they aren't supporting your organization.

Here is some of the things you will learn from this webinar:

Why your organization's future depends on engaging the next generation of donors known as the Millenials -- a group larger than the influential baby boomers.
Strategies to engage Millenials and attract them to your cause.
How micro-project fundraising and crowd-contributing are ready-made for the way this generation likes to engage and participate.
A case study on how to run a successful peer-to-peer fundraising campaign and leverage peer networks in the new digital giving landscape.

Lehman Bros. Seek Bigger Payments From Nonprofits

2013-05-15T14:34:00.000-04:00

A year after exiting bankruptcy, Lehman Brothers Holding Inc. is back and is demanding larger exit payments from a host of nonprofits.

Lehman Bros. is not a name that brings back fond memories for most people. The financial institution's bankruptcy in Sept. 2008 was one of the major causes of the financial collapse that ravaged the economy.

According to a report in Bloomberg, the managers of Lehman's estate feel they were shortchanged by some nonprofits that made exit payments on derivatives that crashed after the bank filed for Chapter 11 bankruptcy, forcing it to sell its assets.

One of these organizations is Buck Institute for Research on Aging in Novato, Calif., which paid Lehman $2 million in Oct. 2008 to cancel a contract with the bank. Lehman has now come back to the organization and demanded $12.1 million more in addition to $4.7 million in interest. These funds are more than half of what the nonprofit spent o Alzheimer's, Parkinson's, and other diseases last year according to its most recent financial statement.

Mary McEachron, Buck’s chief administrative officer and general counsel, declined to comment on the situation to Bloomberg, saying only that the matter has not yet been resolved.

One other organization targeted by Lehman Bros. is a 5,000-student liberal arts college in Boston called Simmons College. The school paid Lehman $5.5 million in Jan. 2009 to exit from three interest rate swaps. In its June 30, 2012 financial statement, Simmons stated it held back $800,000 of that payment for out-of-pocket expenses. This didn't set well with Lehman, which now wants to enter a settlement through mediation with the college.

Lehman exited the bankruptcy process in March 2012 and has since liquidated about $46.2 million in assets. The bank needs $65 million more to repay its creditors by 2016.

You can read the full story in Bloomberg.

May 15, 2013 Edition Of The NonProfit Times

2013-05-15T09:41:00.002-04:00

The May 15, 2013 issue of The NonProfit Times is now online and hitting mailboxes across the country. Here's a peak at the content you can expect to find in the second issue of the month:

Articles

Keeping Score With Capital Campaigns: The New Jersey Symphony Orchestra culminated a four-year capital campaign this past June, raising $35.8 million, some 12 percent more than its original $32 million goal, despite the worst economy since the Great Depression.
Binders Full Of Fundraisers Causing A Diversity Stir: Veteran UK fundraiser Giles Pegram, CBE, caused a social media uproar when he tweeted “women are still not adequately engaged in the thinking in fundraising,” causing flashbacks to Mitt Romney's infamous "binders full of women" line.
10 Issues That Top The Activist List For 2013: a new report from Future 500 indicates that a series of issues will force corporations to partner with nonprofits to adapt to a changing environment.

Columns

Donors And Their Wealth: Everyone’s looking for investment advice. Charities and donors are no different. Some of the nation’s largest nonprofits are complex businesses, generating income from donations but also via fundraising events, program service revenue or membership fees, as well as investment income.
Now Casting: An actor who can play equally well Prospero, Willy Loman, and Felix Unger or Lady Macbeth, Amanda Wingfield, and Lady Bracknell, is highly valued by any theatre company. Likewise, grant writers who can flawlessly execute diverse roles bring real value to their nonprofits.

Nonprofit Galas Breaking Fundraising Records On West Coast

2013-05-14T11:31:00.000-04:00

Nonprofit galas in the Bay Area are breaking all sorts of fundraising records this year, bringing hope that organizations could soon be returning to pre-recession fundraising levels.

A report in the San Francisco Business Times reveals that many San Francisco-based organizations are getting a big boost in revenue from their annual galas. For example, Meals on Wheels (MoW) raised almost $2.17 million for homebound seniors at its 26th annual Star Chefs and Vinters Gala in April. That amount was the most ever raised by the organization for that particular event. In total, it netted $300,000 more than last year's gala, as more than 1,000 guests showed up to sample a spread of food made by gourmet chefs.

MoW Executive Director Ashely McCumber told The Business Times that she believed the success of this year's gals stems from a couple of factors: Strong donor relationships and an increased confidence in the economy, as people are feeling more comfortable giving once again. He added that most of the money from the gala came from individuals while corporate donations remained the same. Around 200 businesses and individuals participated in the gala's live and silent auctions.

While Habitat for Humanity San Francisco has not yet had its annual gala, Executive Director Phillip Killbridge told The Business Times that he is confident it will also break fundraising records, especially after Coldwell Banker Residential Brokerage wrote the nonprofit a $25,000 check.

Are your nonprofit galas and special events seeing similar results? Let us know in our comments section.

You can read the full story in the San Francisco Business Times.

NJ Nonprofit Director Charged With Embezzlement

2013-05-13T11:00:00.000-04:00

The former director of human resources for a New Jersey nonprofit was charged Saturday with embezzling more than $100,000 from the organization.

According to a report on a Philadelphia CBS affiliate, prosecutors allege that Christopher English generated paychecks from previously terminated employees of the Arc Mercer -- an advocacy and resource group for the mentally disabled -- and deposited those checks into his personal checking account. He allegedly spent that money on items ranging from a new truck to a $30,000 travel trailer.

English faces up to 10 years in prison if convicted.

Authorities say the alleged theft was discovered when the Arc's payroll company reported some discrepancies to the organization. The nonprofit was able to recover almost all of the funds that was taken in English's alleged embezzlement.

The Arc Mercer is located in Ewing, N.J., and has almost 350 employees and an annual budget of close to $17 million.

You can read the full story on CBS Philly's website.

Former Treasurer Faces Theft Charges

2013-05-10T10:42:00.000-04:00

The former treasurer of a Tallahassee, Fl.-based nonprofit is being charged with stealing more than 90,000 from the organization.

According to a report on Tallahassee.com, Jamie Pitts was arrested Wednesday after investigators discovered she allegedly wrote checks to herself from the nonprofit for she worked, Child Advocates II, over two years. The organization obtains its donations from Guardian Ad Litem, a group that serves Florida's abused and neglected children.

Authorities allege that Pitts, who had sole access the nonprofit's account, deposited the 159 checks totaling more than $90,000 into her personal bank account. She allegedly represented the checks as expense reimbursements most of which she listed as "voided" when she presented financial statements to Child Advocates' board. The checks were reportedly written starting in August 2010 and ending on April 27, 2012.

Brad Sealey, chair of the board, first discovered the alleged theft in March when he discovered the organization's account had a negative balance. When he was able to gain access to the account by proving he was the chair of Child Advocates' board, he discovered Pitts' alleged actions.

In a sworn statement, Sealey said that the organization's bylaws state that any reimbursements must be approved by a resolution of the board, and that no such resolutions were ever made to reimburse Pitts.

Pitts faces charges of grand theft and organized scheme to defraud. You can read the full story on Tallahassee.com.

5 Ways To Keep In Touch With Monthly Giving Donors

2013-05-09T14:23:00.000-04:00

Your work is done just because you got a donor to join your monthly giving program. Far from it; in fact, as fundraising consultant Pamela Grow explains, your work is just beginning.

Grow says that it's up to you as a fundraising professional to make sure your monthly donors are made to feel special. As a member of an exclusive club, these individuals are going to be expecting world-class treatment. One of the best ways to accomplish this is to keep in constant contact with them.

In her e-book, "The Lifetime Donor Attraction System," Grow shared five tips on how to keep in contact with your monthly donors:

Don’t stop communicating. Keep sending emails, as well as offers to upgrade their monthly commitments. These donors are also excellent prospects for planned giving, having demonstrated dedication to your nonprofit.
Send monthly donors special versions of your regular communications. Make sure they reference the donor’s membership in your monthly giving program.
Give them special opportunities, such as events, guided tours and access to your organization’s executives. Make sure they know the opportunity is exclusive to monthly givers.
Send special thank-yous. Think about including premiums in your thank-you correspondence with monthly donors.
Don’t neglect your regular correspondence. Follow up if a monthly sustainer’s renewal lapses or if she suspends payments.

Debt Causes Chicago's Field Museum To Auction Off Collections

2013-05-06T14:03:00.000-04:00

If you are hoping to see famous items such as paintings by 19th century artist George Caitlin at Chicago's Field Museum of Natural History, you will be out of luck. Citing massive debt bought on by the Great Recession, the museum has auctioned off these works and some of its other collections in order to stay afloat.

According to report on NPR, the museum saw its endowment take a huge hit after the stock market tanked both in 2002 and 2008. Combined with bonds issued in 2002 to add an undergrounds collection center and make other updates, the Field Museum found itself in massive debt. To make matters worse, an expected increase in attendance did not occur, causing the institution to miss its fundraising goals.

Even after various cost-cuttings and layoffs, Field Museum CEO Richard Larivere told NPR that the institution's budget is still $5 million in the red, and most of that budget is slated to pay off debt.

Larivere became CEO this year and arrived after the previous head had decided that the best course of financial action was to sell off some of its collections. The practice -- known as deaccessioning -- is common in the museum world though there are some generally accepted guidelines on how the funds from these sales are to be used. For example, University of Kansas' Biodiversity Institute states that institute will only deaccession collections to "establish order and purpose to the collection," among other reasons.

The Field Museum used the nearly $15 million in funds from their deaccessioning to pay off certain staff members and to purchase new artifacts, which Larivere said is within the accepted guidelines for the practice. He also said that the museum would continue to sell off collections if it needed more money to balance their budget.

Although deaccessioning is an accepted practice there is some concern that it could cause donors to think twice before donating treasured items to museums.

You can read the full story on NPR's website.

Two Men Charged In Alleged 9/11 Charity Scam

2013-05-06T12:13:00.000-04:00

Two men have been indicted for allegedly operating a bogus 9/11 charity, New Jersey Attorney General Jeffrey S. Chiesa announced today.

Mark Niemczyk and Thomas Scalgione were indicted Friday on third-degree charges of conspiracy and theft by deception. The two men operated a pick-up truck from which they operated a charity that was supposed to raise money for the victims of the 9/11 attacks or related charities. The men allegedly sold t-shirts and collected donation at 9/11 events. The funds they raised -- in excess of $50,000 -- never made it to victims' families or 9/11 charities as promised, according to Chiesa.

“It’s a sad reality that in the wake of a devastating tragedy, when so many want to help, there are always parasites who view the tragedy and the generosity of others as nothing more than the opportunity and the means to turn a crooked profit for themselves,” said Chiesa.

The state alleges that Niemczyk and Scalgione, who registered their operation with the state, took all of their proceeds and deposited it into their personal bank accounts to pay for unrelated expenses. As a result of their alleged fraud, the two men were able to purchase the t-shirts they sold at a discounted rate by telling vendors that the proceeds from their sales would benefit victims' families. One vendor gave discounts totaling $3,312, and another gave discounts totaling $1,378.

Elie Honig, director of the New Jersey Division of Criminal Justice, also alleges that the men told other lies in the name of donations. Niemczyk allegedly claimed that he was a Navy SEAL who did three tours of duty in Vietnam, and that he and Scalgione were father-and-son firefighters who were working at a firehouse near the World Trade Center on 9/11.

“Their conduct was outrageous, and we urge any victims who donated money or bought T-shirts from these con artists to contact us,” said Honig.

The charges against Niemczyk and Scaligione stem from an investigation by the Division of Criminal Justice Financial & Computer Crimes Bureau. The criminal investigation began with a referral from the Division of Consumer Affairs, which in November secured a final consent judgment in a civil action, under which the men must pay a total of more than $200,000, representing disgorgement of donations and payment of civil penalties, attorneys’ fees and investigative costs. The judgment bars the men from ever working for any charitable organization in New Jersey should they be convicted.

You can read the full indictment on the state of New Jersey's website.

Idaho's First Giving Day Begins

2013-05-02T14:48:00.002-04:00

The inaugural edition of Idaho Gives, a statewide online giving campaign run by the Idaho Nonprofit Center, began today, with more than 500 charities taking part in the event.

As reported by The Boise Weekly, there were already 1,000 donations by sunrise this morning, and donors have until 11:59 p.m. to continue giving. The five nonprofits with the most unique donors by the end of the day will receive onus grants of $3,000, $1,000, $500, $250, and $250 respectively.

All donations made on the Idaho Gives website are made to the Razoo Foundation, a 501(c)(3) tax-exempt organization which permits donors to advise a regranting of their donations to other IRS recognized qualifying 501(c)(3). The Foundation will then regrant 97.1% of its contribution to the qualifying organization as advised by the donor, retaining 2.9% for Razoo Foundation’s expenses.

Participating nonprofits are divided into three categories based on their size: Large, medium, and small. Currently leading the "large" category is Idaho Humane Society Inc., which has 134 unique donors giving $5,952. Idaho Falls School District 91 Education Foundation Inc., rounds out the "medium" category with 59 unique donors giving $2,765. Finally, Girls on the Run-Idaho Inc., leads the "small" category with $1,325 in donations from 35 unique donors.

State online giving days have a long history of success for nonprofits. In a recent article on The NonProfit Times, it was reported that 800 nonprofits received over $1 million in donations from Arizona Gives Day, held on March 20.

You can read the full story in The Boise Weekly.

The May 1 2013 Edition Of The NonProfit Times

2013-05-01T10:05:00.000-04:00

The May 1, 2013 edition of The NonProfit Times is jam-packed with big news in the sector. Current events such as the Boston Marathon bombings and the Boy Scouts' decision on allowing gay members are covered, in addition to our special report on professional development.

Here's a sneak peak at the featured articles of the new issue:

Special Report

Making The Grade: Can Anyone Get Into Nonprofit Education Programs?: What’s it take to get into nonprofit education programs? Students heading into next year’s master’s program at Indiana had an average college grade point average of 3.45 and an average GRE score of 1,181 (549 verbal and 632 quantitative).

Articles

NPT Survey: CFOs Get Comfortable With Thinner Margins: This exclusive survey conducted by The NonProfit Times asked a number of questions of nonprofit financial executives. They were asked questions regarding their organizations’ actual situation and then perceptions regarding the economy and general operations.
Events Planning Gets Second Look After Boston Attack: Many organizations are rethinking the risk management elements of large, outdoor events after the bombings that killed three and injured hundreds more at the Boston Marathon.
Scouts' Survey Shows Members Split About Stand On Gays: As the Boy Scouts of America prepare to vote on whether to allow gay members, a survey conducted by the organization shows that many of its existing members are split on the topic.

Columns

No Surprises: Volunteers are at the heart of most nonprofits, but your nonprofit’s heart might beat a dangerous rhythm without volunteer risk management.
What Time Are You?: In the professional world, there is no more powerful determinant of individual style, effectiveness, or influence than one’s orientation to time.

The articles above are just a sampling of the content included in the May 1 issue. If you are not already a subscriber, head to our online store to purchase a subscription so you can read the full issue, which includes an exclusive interview with former Scoutmaster James Dale.

10 Fundraising Rules For Managers

2013-04-30T13:48:00.000-04:00

Nonprofit managers often have to wear multiple hats if their organization's mission is to succeed. One of those roles requires them to chip in on the fundraising side of the operation.

The word "fundraising" can make any executive start to sweat, but it doesn't have to be that way. Susan Black of Allene Professional Fundraising shares these 10 rules in her white paper, “Ten Rules to fundraise By.”

People give to people. A gift officer needs to win a donor’s trust so he or she knows the donation is in good hands.
Know your story, then articulate it. It’s the gift officer’s job to translate the organization’s impact into relatable, digestible bits of information.
Have a plan. Your organization needs both a strategic and a fundraising plan.
Get out of the office. Connect with donors face-to-face.
Identify, cultivate, ask and than, then do it again. Your work doesn’t stop with the first gift; turn your donors into advocates for your organization and they’ll be more valuable, both monetarily and otherwise.
Remember, you are brilliant. Recognize how important your work is, and have confidence that you can get the job done.
Your only job with volunteers is to make them successful. Volunteers want to feel useful, be managed, feel appreciated, have an impact and share your success. Your volunteer management plan must take their needs into account.
If it’s not in the database, it didn’t happen. Recordkeeping is of vital importance.
It’s not about you. It’s about the donor. Practice donor-centered fundraising, and always be aware of the donor experience.
Measure it. Start with the end in mind, consider all the costs, and create success metrics before you have to use them, not after.

Chicago Proposes Water Rates Compromise For Nonprofits

2013-04-29T14:08:00.000-04:00

Chicago Mayor Rahm Emanuel is proposing a compromise for nonprofits that only recently found out they would be losing their exemption from water rates. The announcement came after meetings with leaders from nonprofits and select aldermen.

One of Mayor Emanuel's central promises of his election campaign was to end the practice of supplying free water to the many nonprofits in Chicago in order to help the city's budget. According to a report on DNAinfo.com Chicago, the Mayor had said the practice cost the city $20 million per year.

The water policy was changed as promised, but quickly met resistance from nonprofits, which claimed the rates were negatively affecting their ability to operate. While remaining firm on his pledge that he would not "give away" tax payer's money, Emanuel signaled last year that he would at least "study" a proposal by his aid Bob Fioretti, that would implement a sliding scale for rates based on an organization's assets.

Today's announcement indicates that he agreed with that plan, as the Mayor's compromise shares some of the features of Fioretti's plan. Under the compromise, nonprofits with overall assets under $1 million would not have to pay water fees. Those valued at between $1 million and $10 million, however, would still pay the feed but would get a 60 percent exemption. Those between $10 million and $250 million would get a 25 percent exemption.

Finally, those valued at more than $250 million would receive no additional exemption, although a public-museum exemption would remain at 20 percent regardless of asset level.

You can read the full story on DNAinfo's website.

5 Steps To A Nonprofit Pilot Program

2013-04-26T13:53:00.004-04:00

Does your nonprofit have an interesting idea that hasn't yet been tested? Before you throw caution to the wind and test your idea in real-world conditions, it's a good idea to run it as a pilot program first to iron out any potential problems.

Alex Neuhoff and Andrew Belton in their report, “Putting Clients at the Center: A Planning Guide for Multi-Service Organizations,” produced by The Bridgespan Group, outlines five questions to ask when designing a pilot program:

Where and how will you start? Do you want to focus on a specific client base, or specific region? If you plan to narrowly focus the pilot, be sure you’ll be able to generalize the results across your organization.
How will you evaluate the pilot? Look at process, program activities and outcomes. Decide if you want a more comprehensive (and expensive) outside evaluation, or if you’ll do it in-house.
How much will the pilot cost? The cost usually comes out to additional costs of your approach, investments in infrastructure, and management of the pilot. You can break these down into one-time “setup” costs and ongoing costs related to the new program.
How will you pay for it? Will you chase additional grants or pay for it from your financial reserves, or a combination of the two?
How do you use what you’ve learned? What challenges and unforeseen developments have the pilot uncovered? How do you scale up the pilot to an organization-wide program?

Telling Your Nonprofit's Story

2013-04-25T13:52:00.001-04:00

One could argue that the key to fundraising is presenting a story that is relatable while also telling potential donors what they can do about the particular situation.

So what's your nonprofit's story?

In his book “Winning The Story Wars,” Jonah Sacks suggests the use of what he calls core story elements, the components that will become part of the story strategy. Seeing members of the target audience as heroes in the making and recognizing the organization’s need and ability to mobilize them with a compelling story and inspiring message makes donors feel as though they can make a big difference.

The core story elements are:

Brand Hero. This is the embodiment of the primary audience the organization seeks to reach.
Brand Mentor. This is the embodiment of the brand.
Brand Gift. This is the creative wild card that makes the brand special and makes the brand hero believe higher-level values can be pursued through a relationship with the brand.
Moral of the Story. This is the core message that underlies, sometimes subtly and sometimes overtly, every story the organization tells.
Brand Boon. This is the contribution to the world that the brand hero will ultimately make.

Report: Nonprofit Used State Funds For Perks

2013-04-24T14:03:00.000-04:00

A nonprofit funded by the state of New York is being accused of paying for excessive executive perks, according to a report issued by the office of state Comptroller Thomas DiNapoli. The findings are now being referred to U.S. Attorney Preet Bharara's office for review.

Phoenix Houses of New York, which operates a number of residential and outpatient rehab programs in New York City, Long Island, and upstate New York, is alleged to have provided $223,000 worth of inappropriate perks while under contract with the Office of Alcoholism and Substance Abuse Services (OASAS). This includes allegedly paying $91,050 for executive bonuses, $40,447 for fringe benefits, and $35,996 for vehicle leases from July 2009 to June 2010.

The report also alleges that Phoenix Houses failed to report $290,000 in Medicaid revenue to OSASAS which would have reduced the amount the agency's payments to the nonprofit.

"This was money intended to treat people struggling with substance and gambling addiction, not to subsidize unwarranted perks for high-salaried executives," DiNapoli said. "My office will work closely with U.S. Attorney Bharara's office to ensure that those abusing the public trust are held accountable."

Auditors and investigators also discovered that one employee allegedly made $4,000 in "improper" purchases of Wal-Mart gift cards used for alcohol, cigarettes, and other inappropriate items. The employee allegedly covered up these purchase by submitting falsified receipts.

Based on the finding, DiNapoli recommends that OASAS should strengthen controls to monitor Phoenix Houses' contract compliance, recover the alleged improper funds, and recover executive overpayments if they are determined to not be justified.

A call to Phoenix House for comment was not immediately returned.

You can read the full report on state Comptroller's Office website.

Pennsylvania Law Would Let State Decide Nonprofits' Tax-Exempt Status

2013-04-23T13:38:00.000-04:00

A proposed law in Pennsylvania would fundamentally change how nonprofits receive tax-exempt status, shifting the process from the judicial system to the state Legislature.

HB 724/SB4 passed the state Senate in a 30-20 vote last month and also received approval from the House Finance Committee. Since the bill would amend Pennsylvania's constitution, it must pass both houses in consecutive legislative sessions before going to voters for final approval.

The proposed law has generated enormous controversy in the state, according to an article in The Pittsburgh Post-Gazette. While supporters say it would provide consistency in what defines a tax-exempt charity, detractors, including Pittsburgh Councilwoman Natalia Rudiak, believe it's an effort by large organizations to shift decision-making away from communities which are increasingly trying to get nonprofits to contribute more.

Rudiak told The Gazette that she is also concerned that there is not a single public hearing to discuss the proposed change.

Those supporting the bill include large nonprofit hospitals and universities such as the Hospital & Healthsystem Association of Pennsylvania, and the Association of Independent Colleges and Universities of Pennsylvania. In a Jan. 28 memo to his colleagues, Republican Sens. Mike Brubaker and Joe Scarnati said the legislation became necessary once the Pennsylvania Supreme Court denied tax-exempt status to a camp in Pike County because it didn't provide relief to the local government as mandated by a 1985 court decision.

"By elevating its own judgment above the will of the General Assembly, the Court has created uncertainty as to the qualifications for public charities in Pennsylvania," the senators wrote.

You can read the full story in The Pittsburgh Post-Gazette.

S&P: Pensions A Burden For Nonprofit Hospitals

2013-04-22T14:08:00.001-04:00

Pension liabilities will be continue to be a burden for nonprofit hospitals rating service, Standard and Poor's (S&P), reported Monday.

While there are other factors contributing to the financial problems of the sector, large pension funding demands are the biggest factor according to a report in Reuters. S&P credit analyst Liz Sweeney said in a statement that the promises of these retirement benefits could be a "drag" on nonprofit hospitals for several years despite improvements in the investments used to fund retirement services.

"Low discount rates have hampered the improvement in funding levels despite a rebound in asset values during the past two years," said Sweeney.

Retirement benefits are just one of the many challenges nonprofit hospitals are facing. S&P noted that as pension gaps continue to grow in state and local governments, employers are putting more money into healthcare systems that have redesigned pensions, which could leave less funds for other projects.

"We believe that health systems will continue to implement plan changes to seek the next level of cost savings within the context of organization-wide expense reduction measures," S&P reported.

Changes from the Affordable Care Act, increasing stress on Medicaid and Medicare, and increased healthcare demands in general, are also increasing the financial difficulties for nonprofit hospitals across the country.

You can read the full story in Reuters.

The Donor Research Checklist For Small Nonprofits

2013-04-22T11:42:00.000-04:00

What's the best way to ensure a successful fundraising campaign? Some would argue that donor research should be on the top of that list, and they would have a point. More information about donors means your fundraisers will have a better idea about how to approach them.

While large nonprofits usually have full-time researcher on-staff, it can be a little bit harder for smaller organizations to find room in their budget for donor research. That's why Ann Rosenfield, executive director of The WoodGreen Foundation, offered some tips to help these organizations reap the benefits of this research without breaking the bank.

She wrote the following checklist in the Winter 2013 edition of Advancing Philanthropy:

Hire a researcher, even if just for a while: This will enable managers to focus on the technical aspects of fundraising while research crunches the numbers.
Pay for a research database service: This allows for quick look-ups of prospective donors recommended by the board, events, and potential board members.
Remember that information on foundations is free: This information is easily accessible online on such sites as Foundation Center.
If possible, use data analytics: This allows the organization to see how analytics work and keep track of these findings on a spreadsheet.
Identify new prospects: Having a researcher means being able to seek out new prospective clients who will give.
Don’t forget that the organization’s small size is actually a strength: The small size of is an asset in that it allows research to be done on a more personal level.

9 Ways To Measure Nonprofit Data

2013-04-19T11:11:00.000-04:00

We live in a society where it's easy to be overwhelmed by data. It seems as if there are statistics about virtually everything, making it hard to figure out which numbers are actually important. Nonprofits are among the groups that are gathering more data than ever, but not all of them are using the information they gather, or are not using it as well as they can.

Beth Kanter and Katie Delahaye Paine wrote in their book, "Measuring the Networked Nonprofit," that it is more important to evaluate impact than to gather and store numbers. They offered nine suggestions on how organizations can get the most out of the statistics they gather:

“Likes” on Facebook is not a victory. Social change is a victory. Proper measurement keeps organizations focused on results rather than the tools they use.
Measurement helps nonprofits understand and improve their social networks. It helps them listen to and engage with constituents.
Measurement means data for decisions, not for data’s sake. It isn’t numbers to dump on the board’s desk.
Measurement makes an organization plan for success. Measurement leads to smarter investments and smarter use of those investments.
Good measurement is good governance. Credible evaluation reports and demonstrations of impact are crucial.
Data without insight is just trivia.
Measuring failure is part of the path to success. If an experiment bombs or a great idea isn’t really so great, learn from it, and learn why it happened.
Incremental success is no failure. Victories often come in baby steps.
Measurement is valuable at every level of functioning.

Charity Raises $7 Million In Aftermath Of Boston Marathon Bombings

2013-04-18T14:27:00.003-04:00

A fund created to raise money for the victims of the Boston Marathon bombings has already received nearly $7 million in donations from corporate partners and individual donors.

One Fund Boston was launched on Tuesday by Massachusetts Gov. Deval Patrick and Boston Mayor Thomas Menino to give philanthropists and other individuals a way to support the more than 180 individuals who were injured during the attacks on Monday. The $7 million raised so far includes a $1 million commitment from John Hancock Financial Services, which was one of the lead sponsors of the marathon.

Taking aside the donations from businesses and corporations, One Fund Boston has received $500,000 from 8,500 individual donors.

“I am humbled by the outpouring of support by the business community and individuals who are united in their desire to help,” Patrick said. “At moments like this, we are one state, one city, and one people.”

Mayor Menino said via a statement that he received calls from businesses and individuals who wanted to pledge money “within the hour” that the fund was established. “We are one Boston. We are one community. As always, we will come together to help those most in need. And in the end, we will all be better for it,” Mayor Menino said.

One Fund Boston will be headed by attorney Ken Feinberg, who was appointed in 2001 by the Attorney General of the United States to head the 9/11 Victim Compensation Fund. In 2010, he was appointed by President Barack Obama to administer the fund for those affected by the BP oil spill, and he also helped administer donations for the victims of the mass shootings in Aurora, Colo., and at Virginia Tech.

“I am honored to serve at the request of both Governor Patrick and Mayor Menino,” Feinberg said in a press release. “I will do my best to justify their confidence in me as we move forward to design and administer an effective program following the terrible tragedy in Boston.”

Feinberg, who is himself a native of Boston, will head the fun entirely pro bono.

The Fund is currently in the process of applying for 501(c)(3) tax-exempt status with the Internal Revenue Service. A statement on the organization's website said that if the IRS makes the determination that it is worthy of being tax-exempt, that decision will be made retroactive to the date of the Fund's formation.

Scams Abound After Boston Marathon Bombings

2013-04-17T14:20:00.003-04:00

In the aftermath of the deadly bombings Monday at the Boston Marathon, a number of web sites claiming to offer funds for victims appear to be scams.

According to the Internet news site TheDomains, more than 20 of the 125 domains that were registered after the bombings appear to be illegitimate. Michael Berkens, editor of TheDomains, wrote in his piece that many of these sites, such as Bostonmarathonrelief.com, have been registered by individuals rather than legitimate charities.

“While we don’t know every registrants' intention, we do know historically that many of the domain names registered immediately after were done to get traffic and make money parking domains or worse,” wrote Berkens.

Bostonmarathonrelief.com claims to be raising $25,000 benefiting the American Red Cross (ARC). As of this writing, $20 has been donated. A spokeswoman for ARC told The NonProfit Times that the site is in no way affiliated with the organization. The site is registered to a man in Fort Worth, Tex.

Scams also appeared on social networking platforms. Shortly after the bombings, a Twitter handle masquerading as an official account of the Boston Marathon sent out a tweet claiming it would donate $1 to victims for every retweet. The account, @_BostonMarathon, was suspended by Twitter, according to The Huffington Post.

“Tragedies inspire people to give,” H. Art Taylor, president and CEO of Better Business Bureaus Wise Giving Alliance, said in a press release, “but, tragedies –- whether natural disasters or manmade catastrophes –- also inspire scammers to take advantage of that generosity. Social media, in particular, makes it very easy to reach a lot of people quickly, when emotions are running high and people feel the need to take action, any action, to help.”

Charity scams after national tragedies are not exactly a new phenomenon. After the Newtown, Conn., shootings resulted in the death of six-year old Noah Ponzer, an e-mail was sent to individuals asking for donations that would be sent to Ponzer's family. Upon learning of the bogus solicitations, Ponzer's uncle alerted authorities who put an end to the scam.