Thursday, December 5, 2013
In a New York Times DealBook column, Andrew Ross Sorkin explores an interesting idea put forward by Lindsay Beck: is there a way to harness financial instruments to dramatically increasing funding resources for nonprofits. Ms. Beck, who has a Wharton M.B.A. and founded a successful charity that aided female cancer survivors with pregnancy, has pursued the idea with a number of investment banks. Based on the article, much work still has to be done to make it a reality and it is far from clear that the idea will prove to be a viable and successful one, but it and the other innovative financing ideas discussed in the column raise a host of intersting issues. For example, what bodies of laws govern such instructions - federal and state securities laws, state charitable soliciation laws, both? What remedies would aggrieved "investors" have? What monitoring would be required or advisable? Nevertheless, it is an interesting idea.
This story was a little while ago, but the Associated Press reported how the fact that church pension plans are exempt from many laws that normally regulate such plans has left many employees of church-affiliated entities, including hospitals, with little recourse when pension funds are severely underfunded. This exemption includes not being covered by federal Pension Benefit Guaranty Corporation and not being subject to the Employee Retirement Income Security Act, or ERISA. Based on the article, it appears this issue has been a particular problem at a number of Catholic-affiliated hospitals.
Wednesday, December 4, 2013
A federal District Court in Wisconsin has struck down the exclusion from gross income for vcertain housing allowances provided to "ministers of the Gospel" by Internal Revenue Code § 107 as a violation of the Establishment Clause. As previously discussed here, the same court is also considering challenges to the church exemption from Form 990 filing and the alleged lack of IRS enforcement against churches for violating the political campaign intervention the prohibition. As John Colombo has detailed in this space, the key question in all of these cases - including in the almost certain government appeal of the housing allowance decision - will be whether the plaintiffs have standing to even bring these claims. For reasons Professor Colombo details, it is unlikely that they do. As a commentator to the TaxProf Blog post on this story noted, the judge in the housing allowance case also previously ruled that the National Day of Prayer presidential proclamation was unconstitutional, only to have that case dismissed on appeal for lack of standing. Nevertheless, this case and the other challenges are currently still alive and proceeding, although news reports state the judge has stayed her decision on the housing allowance pending appeal.
The Green Bay Press Gazette reports that a review of 51 active or recently closed charities tied to Wisconsin athletes and professional teams revealed a mix of compliance and noncompliance with IRS filing requirements, a broad range of fundraising costs and revenues, and other issues. For example, six of the charities have lost their tax-exempt status for failing to file the required annual return (Form 990) and several charities reported less than two-thirds of revenues going toward charitable activities (as low as 18 percent in one case), although in some cases that low percentage may reflect an intentional plan to build up reserves for a particular, future charitable purpose. The charities ranged in size from several with over a million dollars in annual revenue to 16 active charities with less than $50,000 in annual revenue. As noted in the story and detailed in separate USA Today report, the most prominent set of concerns may belong to the LeRoy Butler Foundation, which is currently the subejct of an IRS and federal grand jury investigation apparently stemming from its multi-year failure to file IRS returns and payments of "appearance fees" and provision of other benefits to its namesake. Overall, these reports appear to reveal a broad range of typical charity successes and failures among this subset of charities.
The Tampa Bay Times reports that an Ohio jury has found John Donald Cody guilty of 23 counts of fraud, money laundering and theft relating to his role as head of the U.S. Navy Veterans Association. As previously detailed in this space, the Association was a sham charity that Cody ran under the stolen name of Bobby Thompson and used to raise over $100 million before being exposed in 2010 by the newspaper (then named the St. Petersburg Times). Sentencing is scheduled for mid-December. Prosecutors have already obtained a guilty plea from one other person involved in the scam, who is now serving five years in an Ohio prison, and they have stated they plan to indict the lawyer they alleged also helped.
Friday, November 29, 2013
I'll admit it: I've been closely following the release of the proposed new Treasury regulations governing political advocacy of 501(c)(4) organizations. Today's Washington Post asserts that the new rules bring both clarity and confusion to a broken system. The Post's article begins by acknowleding that the rules governing the political activities of nonprofit advocacy groups is "an area of the tax code that has been crying out for greater clarity." According to the newspaper, while the "proposed regulation unvieled Tuesday by the Treasury Department draws the boundaries clearly," they "instantly kicked off intense debate about whether the lines are in the right place."
According to the Post,
One phrase in the official notice summed up the imperfect nature of the exercise. The new rules, the department said, "may be both more restrictive and more permissive than the current approach."
Notwithstanding the apparent confusion, the Post acknowledges what we all know: the system was broken and needed to be fixed.
Earlier this week, we blogged about the proposed new political activity rules for tax-exempt organizations proposed by the U.S. Department of the Treasury and the Internal Revenue Service. The NonProfitTimes is reporting that the proposed rules are drawing sharp criticism from some members of the nonprofit sector.
As an initial matter, we note that the rules specifically target 501(c)(4) organizations and political lobbying and activism. However, the Times notes that the proposed rules can also apply to 501(c)(3) groups. For example, under the proposed regulations, activities that will be counted as political activity include voter registration drives, nonpartisan voter guides and events such as debates at which candidates appear. Section 501(c)(3) groups sometimes organize these activities.
Organizations classified as 501(c)(4) social welfare organizations are permitted to undertake political activity, so long as it does not constitute the group’s primary purpose. Nonpartisan activities such as voter registration drives currently are not counted against that threshold. The IRS uses a “facts and circumstances” determination on a case-by-case basis to decide whether a given group’s political activity is its primary purpose.
The facts and circumstances test [is] “all very specific to an organization,” according to Viveca Novak, editorial and communications director at the Center for Responsive Politics in Washington, D.C. “It is subjective and can be ambiguous. What the IRS is trying to do is just have some bright line rules.”
This does not satisfy some members of the nonprofit sector. The NonProfitTimes reports that some sector members have labeled the proposed rules "an attack on First Amendment free speech rights."
The report notes opposition from other sources:
Marcus Owens, the former director of the IRS Tax Exemption Division and now a lawyer at the Washington, D.C. firm Caplin and Drysdale, said, the proposed rule “eliminates some of the tax rule ambiguities and replaces them with election law ambiguities. There’s still a lot of uncertainty. There’s just different words describing that uncertainty.”
Owens believes the regulations go too far in restricting activities that, because of their nonpartisan nature, did not count as political acts. “It means that for groups like the League of Women Voters, which publishes voters’ guides, that won’t happen in all likelihood,” he said. “What we’ll be left with is biased guides from political groups. Instead of more objective presentation, the public is going to get bombarded with partisan communications.”
Some groups agree with Owens that the proposed regulations go too far, saying that they infringe on free speech. “These proposed new regulations put the First Amendment rights of Americans at even greater risk,” Jay Sekulow, chief counsel of the American Center for Law and Justice in Washington, D.C. said via a statement. “With this move, the Obama Administration opens a new front in its war against political dissent.”
Owens points out that some of the activities that the regulations call political activity, such as get-out-the-vote drives and issue communications, are permitted for 501(c)(3) charities and foundations, which are restricted entirely from political activity. “The Treasury has created a harsher rule,” he said. “They could have mimicked the standards private foundations have to adhere to but instead went with a shotgun approach that does a disservice to the public.”
Gary Bass, executive director of the Bauman Foundation in Washington, D.C., called the proposal “extremely troubling for those who believe in democratic practices.” He worries about the implications for 501(c)(3) groups: “If nonpartisan voter registration, get-out-the-vote, etc., are political for (c)4’s, how can they not be for (c)3’s?” he asked rhetorically.
Bass, like Owens, is critical of the proposal’s ambiguity. “Once again, nonprofits don’t know what they can do,” he said. “The first principle for a rule should be to encourage democratic practice while stifling abuses. This NPRM (notice of proposed rulemaking) abandons such a principle.”
Further, he said the proposed rules will have a chilling effect on foundation funding for nonpartisan civic engagement like voter registration. “Even if there is a legal pathway, it will scare the hell out of foundation legal counsel—and encourage foundations to stay out of this area of funding.”
Not all sector members are critical. The Times reports that unlike Owens and Bass,
Other groups are more optimistic about the proposal. “The proposal is good for no other reason than it gets the ball rolling on a critical issue,” said Craig Holman, Ph.D., a government affairs lobbyist with the Washington, D.C. group Public Citizen. “It admirably attempts to offer some clarity in what nonprofit groups can and cannot do and reduces the discretion of the IRS in evaluating activities of nonprofits. Overall, it is a positive step by the Treasury Department.”
Fred Wertheimer, president of Democracy 21 in Washington, D.C., agreed. “Democracy 21 applauds the action taken today by the Treasury Department and the Internal Revenue Service to initiate a rulemaking to address the inadequate rules that have been used by the IRS to determine 501(c)4 tax-exempt status,” said Wertheimer in a statement.
Once the regulations are published in the Federal Register, the public will have at least 60 days to comment.
Thursday, November 28, 2013
The NonProfitTimes is reporting that a recent study on charitable giving reveals that charitable giving increases significantly when the recipients are religiously-linked nonprofits. According to the Times:
Some 41 percent of all U.S. donations go to religious congregations. That number jumps to 73 percent when religiously-linked nonprofits such as Catholic Charities, the Salvation Army and Jewish federations are included. Those are some results from the Lilly Family School of Philanthropy at Indiana University study called “Connected to Give: Faith Communities.”
The study, carried out by the Lilly School in conjunction with Los Angeles, Calif. nonprofit research lab Jumpstart and GBA Strategies in Washington, D.C., is the third of six reports. It surveyed 4,862 American households of various religious traditions.
Four out of five Americans identify themselves with a particular religion. Of those, 65 percent give to congregations or charities. Of those who do not identify with a religion, 56 percent give. “The 9-point difference is due largely to contributions from (religiously) affiliated Americans to organizations with religious ties,” wrote the study’s authors.
“It’s like putting on 3-D glasses,” said one of the study’s authors, Shawn Landres, Ph.D., CEO and research director of Jumpstart, via a statement from the Lilly School. “In addition to looking at congregations, when we also look at the religious identity of the organization and the religious or spiritual orientation of the donor, it turns out that a majority of Americans contribute to organizations with religious ties and a majority of Americans cite religious commitments as key motivations for their giving.”
Almost two-thirds, or 63 percent, of Americans gave to congregations or charitable organizations in 2012, with a median gift of $660. Congregations saw the highest median gift at $375. The median gift to not religiously identified organizations (NRIOs) was greater than that of religiously identified organizations (RIOs), at $250 to $150.
“When it comes to religious identity and giving, demographic categories like income and age resist generalization,” wrote the report’s authors. While the report says that religious denomination alone does not affect giving, other factors help shape rates of giving among the denominations, according to the authors. Jews give at the highest rate to religious and charitable denominations, at 76 percent. Christians — black Protestants, Evangelical Protestants, mainline Protestants and Roman Catholics — all give at similar rates, between 61 percent and 68 percent. Those identifying as not religiously affiliated give at the lowest rate, 46 percent.
The study also examined people's motivation for giving. As reported by the NonProfitTimes, the study revealed that
More than half of Americans who give, or 55 percent, said that religion is an important or very important motivation for charitable giving. Other common motivations include believing they can make a change through giving (57 percent) and thinking they should help others who have less (55 percent).
What a heart-warming story. Happy Thanksgiving to all.
Wednesday, November 27, 2013
Today's Chronicle of Philanthropy is reporting that more than than 7,000 nonprofits plan to band together to promote Giving Tuesday next week. This represent's a significant increase over last year's 2,500 charities that participated in the event.
According to the Chronicle, companies, foundations, and other big donors are also chipping in to promote the day, which will largely rely on social media to promote giving and volunteering. The Chronicle continues:
Even the Obama administration is urging people to give and volunteer on December 3. In the White House Blog, Jonathan Greenblatt, director of the Office of Social Innovation and Civic Participation, calls Giving Tuesday “a wonderful opportunity for a national conversation about the ability of all Americans to participate in positive action.”
The first "Giving Tuesday" was organized last year as an answer to the Black Friday and Cyber Monday shopping traditions.
Monday, November 25, 2013
The W.K. Kellogg Foundation recently launched its WKKF Community Leadership Network, a three-year fellowship program for community-based leaders. According to a report in today's Philanthropy News Digest, the iniaitive "aims to develop the leadership skills of individuals working to help vulnerable children and families achieve optimal health and well-being, academic success, and financial security."
To that end, every WKKF fellow will receive an annual stipend of $20,000 and be reimbursed for travel expenses as they enhance their leadership skills through quarterly meetings with fellow community leaders. The Digest continues:
The initiative aims to support an inclusive, intergenerational mix of emerging and established leaders who can unify diverse communities into a cohesive whole dedicated to the advancement of at-risk children and their families. For each cohort, a hundred fellows will be selected from the foundation’s geographic focus areas in the U.S. — Michigan, Mississippi, New Mexico, and New Orleans — while another twenty will be selected from outside these regions to serve as a national cohort whose work will focus on racial healing and equity. Fellows will be required to participate in individual and group learning activities that foster ongoing connectedness beyond the three-year program.
Commenting on the launching of the new program, WKKF president and CEO, Sterling K. Speirn, said: "The initiative is meant to advance our goal of leveraging community leaders to find and implement lasting solutions for improving the lives of vulnerable children and their families. During the program, fellows will develop skills directly applicable to addressing the needs of vulnerable children and the structural disparities that disrupt their lives and well-being."
Wednesday, November 6, 2013
According to the Nonprofit Quarterly, the Washington Post's recent investigative piece, "Inside the hidden world of thefts, scams and phantom purchases at the nation's nonprofits," has captured the attention of Senator Charles Grassley (R-IA), the ranking member of the Senate Judiciary Committee and a long-time overseer of tax-exempt organizations. The Post's article focused on the American Legacy Foundation and its less than full disclosure of what eventually amounted to a $3.4 million loss and a delayed call to investigators. The Post found that over a four year period more than 1,000 nonprofit organizations reported on their annual Forms 990 that they had discoverd a "significant diversion" of assets arising from "theft, investment fraud, embezzlement and other unauthorized uses of funds." As part of its investigative reporting, The Post, with the assistance of GuideStar, created a searchable database of nonprofits that have reported diversions. The Post article lists numerous other nonprofit organizations, comprising public charities, trade associations, veterans' associations, and other tax-exempts, that have had discovered diversions and misappropriations of funds totalling in the millions; a truly disturbing revelation.
As Nonprofit Quarterly reported, much more exploration on this topic is needed including, but not limited to, internal financial control difficulties, challenges for smaller organizations, the frontline capabilities of state attorneys general, and the effectiveness of actions taken by affected organizations. As NQ also concluded, Congress's review should include not only the source of these problems but also a focus on solutions.
Monday, October 14, 2013
In an interesting piece in the Los Angeles Times, art critic Christopher Knight writes that new information may shed additional light on the infamous relocation of the Barnes Foundation from suburban Merion to downtown Philadelphia. A new paperback edition of John Anderson's "Art Held Hostage: The Battle Over the Barnes Collection" – a comprehensive account of the struggle over the foundation – contains an epilogue that, according to Knight, shows that relocation may not have been necessary. Knight reads the epilogue to suggest that both a local politician (who was convicted in 2009 on 137 counts of political corruption) and local charitable foundations (including Pew Charitable Trusts) angled for the relocation notwithstanding that the California-based J. Paul Getty Trust was apparently interested in helping the Barnes Foundation continue to operate at its historic site. According to the article, “Anderson reports that Pew warned the Getty away from considering a full-scale rescue plan, ‘lest they be denounced as interlopers from afar.’" The story further indicates that the funding ultimately raised to relocate the Barnes collection greatly exceeded the funding that would have been sufficient to maintain operations in Merion.
Those who teach the Barnes Foundation case may want to pick up a copy of the new paperback edition of Anderson’s book just to review this epilogue.
Wednesday, October 2, 2013
Lois Lerner, the embattled former head of the IRS Exempt Organizations division, retired on Monday, September 23, 2013 after 30 years of civil service. As Politico stated in an article about Lerner's retirement: "Lois Lerner is the political piñata that Congress still loves to whack months after she awkwardly acknowledged that the IRS wrongly scrutinized conservative groups for years. Her sudden retirement on Monday after 12 years at the agency won’t change that."
The Huffington Post blog published an article yesterday entitled, "The IRS Scandal That Wasn't," providing an interesting historical and, of course, political recounting of the 501(c)(4) determination process with respect to politically-oriented organizations that led to Lerner's undoing. The article, however, makes a profound statement of caution in its conclusion: "Far more troubling is that the current brawl over the IRS may make the agency too gun shy to properly police tax-exempt groups."
Sunday, September 29, 2013
Last Wednesday I blogged about Georgetown Law's finiancial boot camp. Today I write to report that Georgetown is not the only law school seeking to give its students a sense of the business world. The National Law Journal is reporting that "a growing number of law schools are borrowing a page from the MBA playbook and adding courses intended to give students a foundation in business, in addition to the law." The other schools profiled in the Journal report are Elon University School of Law, University of Pennsylvania Law School, Harvard Law School, University of Michigan Law School and University of Colorado Law School.
According to the Journal, the business courses now taught at these law schools are an outgrowth of the rising demand for law graduates to have some real-world legal experience. In the past, legal educators believed that law students could obtain this experience through clinics and externships. Not any more. Legal educators
...are now starting to take a broader view of what, exactly, prepares a student to practice law. They're realizing that basic business and management skills would prove useful whether the student ends up counseling corporate clients, goes solo or works in a small nonprofit.
I applaud the new trend. May it last well into the future.
I have enjoyed blogging this past week. Tomorrow, one of my colleagues will take over the blogging duties. I thank my recently-graduated former student, Ibukun Adepoju, for helping me spot stories for blogging. May she have peace of mind as she awaits the results of the July bar exam.
Here is another education story, this one from the New York Times Sunday Review...
We've heard the stories; we know they are true: dedicated principals work endless, exhausting hours. "Along the way, they struggle with budgets, staffing problems, disengaged parents, gang violence, holes in the roof and finding clean clothing for impoverished children who arrive disheveled and unwahsed."
Clarice Berry, president of the Chicago Principals and Administrators Association, recently described the public school principal's life in her city as "near impossible." According to Berry, "It is impossible to come to the end of the day and say you finished that day's work. That just doesn't happen."
The principals of Chicago now have more to do since the city introduced a new teacher evaluation system that produced its first teacher ratings this month. The evaluation system requires school principals to oversee the installation of a rigorous new Common Core standards with ambitious learning goals intended to move schools away from rote learning and memorization and toward intensive writing and high-level reasoning skills.
Traditionally, principals reviewed teachers by making brief class visits, and then declared almost every teacher excellent or at least competent. Struggling teachers did not get the help they needed and disastrous ones stayed on the job.
The new evaluation regimes taking hold across the country call for administrators to perform more frequent observations, during which they focus closely on things like the classroom environment, how well lessons are planned, and whether or not the teacher engages students and conveys information effectively.
This approach — and the mentoring that is supposed to support the teachers — will require a great deal of training for principals and an enormous investment of time, something school administrators don’t have. Beyond that, for the new system to work, administrators need the trust of teachers, who often view the evaluations as part of a plan to dislodge them from their jobs.
Yet, according to a study by the University of Chicago Consortium on Chicago School Research, teachers have responded to the new system in generally favorable terms:
Eighty-seven percent reported that the evaluator had provided fair and unbiased assessments of their work. Ninety-four percent of school administrators said the classroom observations and the conversations with teachers that followed had deepened the discussion about teaching. And principals said they had seen instructional improvements that seemed to flow from those conversations.
Meanwhile, principals are feeling somewhat pressured:
The study also suggests that principals desperately need better training in how to help teachers improve. One administrator said of struggling teachers: “There’s 15 things they need to get better at, and so all 15 of them are important, where do I begin?” Another spoke of struggling to find the right ways to reach teachers with markedly different sensibilities. Some do well with the direct approach, he said, but the phrase “this is what you should do” turns others right off.
Lack of time is a huge challenge. The average elementary school administrator in Chicago, for example, spent over two weeks solely on teacher observations. The workload will increase for all principals next year, when tenured as well as nontenured teachers will be evaluated. For a high school principal, the study says, that could take six and a half weeks. Principals at all levels say they are already sacrificing other important duties, like working directly with students and parents.
The new system may or may not be a good thing. It might succeed; it might fail. Whatever happens, it appears that Chicago is trying to do the best for its students.
According to the Digest,
The gift will enable the university to recruit two of the four chemists for its new Center of Excellence in Polymer Chemistry and will support the center's efforts to develop new polymer products and technologies that can be used to make products for the fiber, communication, packaging, and other industries. According to the university, chemists at the center will emphasize fundamental chemistry research but will also work with Houston-area petrochemical companies seeking to convert natural gas feedstock into advanced materials.
Reacting to the receipt of the grant, David Hoffman, who chairs the university's department of chemistry, said: "The foundation's grant will help the university more rapidly expand and enhance its research on polymers, an area of research important to Texas and, in particular, Houston because of its close proximity and ties to the petrochemical industry."
Congratulations to the University of Houston.
Saturday, September 28, 2013
It's a new day, a new week. But let's begin it with an age-old story -- a story about law, education and religion.
The New York Times is reporting that as Texas gears up to select biology textbooks for use by high school students over the next decade, the panel responsible for reviewing submissions from publishers has stirred controversy because a number of its members do not accept evolution and climate change as scientific truth.
According to the Times,
One is a nutiritonist who believes "creation science" based on biblical principles should be taught in the classroom. Another is a chemical engineer who is listed as a "Darwin Skeptic" on the Web site of the Creation Science Hall of Fame. a third is a trained biologist who also happens to be a fellow of the Discovery Institute, the Seattle-based center of the intelligent-design movement and a vice president at an evangelical ministry in Plano, Texas.
The Times continues:
In the state whose governor, Rick Perry, boasted as a candidate for president that his schools taught both creationism and evolution, the State Board of Education, which includes members who hold creationist views, helped nominate several members of the textbook review panel. Others were named by parents and educators. Prospective candidates could also nominate themselves. The state's education commissioner, Michael L. Williams, a Perry appointee and a conservative Republican, made the final appointments to the 28-member panel. Six of them are known to reject evolution.
Kathy Miller, president of the Texas Freedom Network, which monitors the activities of far-right organizations, lamented that "Utterly unqualified partisan politicians will look at what utterly unqualified citizens have said about a textbook and decide whether it meets the requirements of a textbook."
Miller's statement reflects the view of some Texans who worry that ideologically driven review panel members and state school board members are slowly eroding science education in the state. Some parents even worry that if the State Board of Education has its way, their children will not be able to compete for jobs that require scientific backgrounds.
Others -- especially teachers -- see nothing wrong in teaching creationism or its cousin, intelligent design, as valid scientific alternatives to Darwinian evolutionary theory. The Times concludes its story as follows:
In Texas, the debate has each side borrowing from the other to make its point. Those who challenge evolution invoke the scientists Carl Sagan and Richard Dawkins, while those who plead for the sanctity of science cite Genesis and the Book of Job.
At the public hearing this month, Michael Singer, a biology professor at the University of Texas who teaches courses to nonscience majors, said his students were often nervous about learning evolution. “I tell them that the Book of Job says that their faith will be tested,” he said. “You don’t need faith to believe what the evidence suggests. You need faith to believe what the evidence doesn’t suggest.”
Then he pulled out a £10 note from his native Britain to show the audience: on one side was a picture of Queen Elizabeth II, on the other, Charles Darwin.
Time will tell how this all ends. Have a great week ahead.
The Ninth Clinton Global Initiative Annual Meeting ended in New York City on Thursday with an emphasis on optimism and mobilizing for action to address the most pressing global challenges. Over the three days of the meeting, Clinton Global Initiative (CGI) members made over 160 new Commitments to Action, expected to impact nearly 22.2 million lives and valued at more than $10.8 billion when fully funded and implemented.
According to a press release issued shortly after the meeting ended,
Through the CGI commitments announced this year, nearly 27 million metric tons of CO2 will not be released into the atmosphere, more than 2 million girls will be reached by efforts specifically targeting female enrollment in schools, more than 11.6 million children will have a better education, nearly 4 million people will have increased access to health services, and more than $7 billion will be invested in or loaned to small- and medium-sized enterprises.
Former President Clinton noted that "this year’s commitments highlight the enthusiasm, creativity, and general characteristic of CGI members. They also reinforced our theme of ‘mobilizing for impact.’ So many partners have come together, to increase their impact by drawing upon each other’s strengths and creating new partnerships to truly put ideas into action: this is what CGI is all about. I am so grateful to everyone who joined us this year, whether in person or online, and who continue to work with us to create a better world.”
The CGI announced two major Commitments to Action focusing on health and on animal preservation. First, Former President Clinton, joined by Don Thompson, President and CEO of McDonald's, and Dr. Howell Wechsler, CEO, Alliance for a Healthier Generation, founded by the Clinton Foundation and American Heart Association, announced a partnership to increase customers' access to fruit and vegetables and help families and children to make informed choices in keeping with balanced lifestyles.
Former Secretary [Hillary] Clinton, Chelsea Clinton, and African government leaders including the Presidents of Burkina Faso, Cote D'Ivoire, Gabon, Malawi, Tanzania, Uganda, and Ministers from Botswana and Zambia made an announcement with leaders of the Wildlife Conservation Society, the African Wildlife Foundation, the World Wildlife Fund, Conservation International, the International Fund for Animal Welfare, Save the Elephants, the Howard G. Buffett Foundation, and the Jane Goodall Institute regarding Partnership to Save Africa's Elephants, a new Commitment to Action aiming to end poaching by addressing poaching, trafficking, and international demand.
These are good plans. I wish the CGI all the success possible.
Friday, September 27, 2013
Based on how certain fundraisers are being compensated, nonprofits appear to be banking that a click of the mouse will help fill organizational coffers more reliably than special events.
A study of the past three Nonprofit Organizations Survey and Benefits Surveys sponsored by The NonProfit Times indicates that a relatively new position, online giving manager, is becoming more established while the position of major events manager/specialist has stalled or declined in compensation.
In a report published today, The Times maintains that
Analysts who stay abreast of nonprofit trends say the surveys show a shift in fundraising brought about by a number of factors, such as the economic downturn of 2008-09, which led to staff cutbacks and fewer fundraising events. There has also been a shift in fundraisers’ target donors toward Millenniums, who grew up with computers and social media.
The shift does not spell an end to fundraising events but the need for a more strategic approach to them.
The number of online giving managers is small but the position had a base salary of just above $65,000 in 2010 and 2012, substantially more than the slightly less than $50,000 average cost per employee in the fundraising family of jobs for those years. The base salary for special events manager/specialist dropped from $48,556 in 2010 to $46,196 in 2012. The position fell from slightly above the average cost per employee for the fundraising family of jobs in 2010 to more than $3,000 below that average in 2012.
According to Matt Di Lauri, managing director of People & Systems Solutionsin New York City, higher salaries for online giving managers suggest that the position is an emerging field for nonprofits. Di Lauri further stated: “When supply is low and demand is high, the cost is going to increase. You’re probably going to have to take [online giving managers] from the for-profit area where the income is higher.”
The Times warns, however, that
Bringing candidates from the for-profit online world might limit the number of nonprofits that can afford an online giving manager. No organization with an operating budget of less than $2.5 million reported having an online giving manager in any of the past three surveys. Special events managers/specialists, on the other hand, were reported among all sizes of nonprofits.
Di Lauri notes that the online giving manager is a “relatively new position,” one that grew since “the world really did change.” Nurys Harrigan, president of Careers in Nonprofits in Chicago, IL, opines that shifting demographics have led nonprofits to embrace the Internet and social media. According to Harrigan, the donors the nonprofits are trying to attract -- the Millenniums, the generation now generally in their 20s -- give online.
And so, the office of online giving manager is here to stay. We turn to The Times for the final word:
The job description for online giving manager as stated in the survey [indicates that the] manager is “responsible for the organization’s online fundraising activities including both donor acquisition and relationship development; leads the development and implementation of online fundraising strategies including online stories, email campaigns and other e-commerce activities; [and] works to increase donor giving via the organization’s website and other online initiatives in collaboration with other income development activities throughout the organization.”
Indeed, times have changed. Although I am not a member of the Millenniums, I do what little giving I do online. I guess online giving managers have to appeal to people like me also! My former student, Ibukun Adepoju, who has been helping me so much this week, spotted this story and urged me to blog about it. I'm not surprised; she is a member of the Millenniums, the generation really being targeted by the ever-increasing number of online giving managers.