Charity Governance

FOOTBALL HALL OF FAMER GALE SAYERS HAS A LOT TO TEACH THE NFL AND OTHER ATHLETES WHEN IT COMES TO CHARITY

DATELINE:  September 13, 2010, Chicago

Jared S. Hopkins, a Chicago Tribune reporter, fronted the Tribune’s website this past Friday with a story on the Gale Sayers.  Promises Unmet for Gale Sayers' Charity (September 10, 2010).  We seem to have another messed up charity run by a former athlete.  This is all too common, largely because athletes apparently and mistakenly believe anybody can run a charity.  All too often, the charity is a place to stash hangers-on.  We don’t know whether that is the case here, but there are several facts in the article that point in that direction.

According Hopkins, the Gale Sayers Center has collected in excess of...

SEATTLE FOUNDATION’S NEW WEBSITE PUTS DONORS IN TOUCH WITH A WIDE VARIETY OF CHARITIES, BUT WOULD THE DISCLOSURES STAND THE TEST OF 10b5?

DATELINE: September 9, 2010, Chicago 

The Seattle Foundation, a community foundation, has created quite the stir with its new database containing information about 700 local nonprofits. It caught Stephanie Strom's attention in today's New York Times. Data on Seattle Nonprofits is Now Public (Sept. 8, 2010). In principle, the site is a good thing. If we lived in Seattle and were interested in charities assisting the homeless, we could easily identify a number of charities that would be of interest. 

Given the accolades from those quoted in Stom’s article and another one in the Seattle Times, we decided to examine the website to see whether it lives up to the hype. To a certain extent it does. The site is well-organized, attractive, and inviting. It makes for good eye-candy. And therein lies...

A POSSIBLE LESSON FOR CHARITABLE RECIPIENTS OF ILL-GOTTEN GAINS AND ANOTHER FOR ALL CHARITIES

DATELINE:  JULY 13, 2010, Chicago

Last Wednesday’s Philadelphia Inquirer had a fascinating story regarding Malvern Preparatory School, recipient of funds from Joseph S. Forte, a now convicted felon and a former trustee of the school.  Harold Brubaker, A Workout in Court Over Ponzi-Scheme Gift (July 7, 2010).  Forte had pledged $1 million for the construction of an athletic facility for the school.  According to the Inquirer, Forte only paid half the pledge.

Forte is serving his time because he ran...

NY AG SUES CAR DONATION CHARITY: IS IT TIME TO GIVE UP THE GHOST?

DATELINE: June 17, 2010, Chicago

New York Attorney General Andrew Cuomo has filed suit against Feed the Hungry and Nicholas Cascone over the use of proceeds raised by the charity from a vehicle donation program.  Many of the usual suspects should take note.  You know, the folks who operate charities that rely heavily on...

HUMANEWATCH.ORG FULL-PAGE AD IN NY TIMES IS CLEVER, BUT DOES THE ORGANIZATION LIVE IN A GLASS HOUSE?

DATELINE: May 17, 2010, Chicago

The Humane Society of the United States (HSUS) must be busy today, following the appearance of a full-page ad in the New York Times screaming that the “Humane Society of the United States is NOT your local animal shelter.”  That certainly is taking it to the man.  Hurt the HSUS where it counts, in its pocketbook.  Let us preface our comments:  We don’t have a dog in this fight, although that is probably a poor turn of phrase in the current context.

We initially assumed HumaneWatch.org was a coalition of local shelters that was just trying to remind the public that local shelters require financial support.  If that were the case, the ad would strike us as precedent setting.  While all charities compete with each other for dollars, we don’t recall ever...

DON’T BE TOO QUICK TO STICK IT TO RUSH LIMBAUGH: CHARITABLE SOLICITATION

DATELINE: March 22, 2010, Chicago

This past weekend had the feel of the Clarence Thomas—Anita Hill confirmation hearings that caught everyone’s attention two decades ago.  Whether you were for or against the legislation, it was...

YOU CAN’T GIVE SOMETHING FOR NOTHING: OKLAHOMA STATE LIFE INSURANCE SCHEME DIES A SLOW DEATH

DATELINE: February 10, 2010, Chicago

We have not devoted too much space over the years to planned giving products.  The reason is simple:  While charities and development officers may like them, to us they are just another packaged investment product.  Over the years, we have developed packaged product for financial institutions, reviewed them for clients, and been faced with personal investment decisions involving them. 

 Yesterday, for example, our financial advisor called inviting us to...

HAVE A QUESTION? THEN OPEN YOUR MOUTH: FEDERAL COURT STRIKES DOWN TEXAS CHARITABLE SOLICITATION STATUTE

DATELINE:  February 8, 2010, Chicago

Jon Stewart and Stephen Colbert have yet to pick up on last week’s Illinois primary election.   One Scott Lee Cohen won the Democratic spot on the ballot for lieutenant governor.  The people spoke, but the next day, the other shoe dropped.  Mr. Cohen had been...

DIRECTORS: YOU HAVE A DUTY OF CARE, BUT TO WHOM?

DATELINE: February 2, 2010, Chicago

We read with great interest Stephanie Rice’s article, City College Foundation Seeks Control of Assets, in the January 25, 2010 edition of the San Francisco Chronicle.  The article begins by referring to a criminal case against three former...

INTELLECTUAL PROPERTY MAY BE INTANGIBLE, BUT IT IS STILL PROPERTY: CHARITIES BEWARE

DATELINE:  January 29, 2010, Chicago

Chicago’s venerable Sun-Times recently carried a story regarding a lawsuit filed by McDonald’s against a student who conducted a fundraiser for the Special Olympics under the name McFest.  Cheryl V. Jackson, McDonald’s in Beef Over Trademark with Chicago Teen (January 26, 2010).  The student, Lauren McClusky, filed for a trademark on the name.  McDonald’s...