Charity Governance

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...

ELI BROAD AND THE PROBLEM OF MORAL HAZARD: CHARITY IN THE AGE OF THE BIG THREE

DATELINE:  December 1, 2008, Chicago

Eli Broad must be feeling a lot like Treasury Secretary Hank Paulson these days.  At age 75, Broad ranked 48th this year on the Forbes list of 400 richest Americans.  Forbes estimates his net work at $6.7 billion. 

Like Secretary Paulson, Broad’s name frequently appears in headlines.  He may not be the U.S. Treasury or the Federal Reserve, but when troubled charities require...

ACORN: “THIS IS ANOTHER FINE MESS YOU’VE GOTTEN US INTO, OLLIE”

DATELINE: November 16, 2008, Chicago

Last week, the Catholic Campaign for Human Development (CCHD), the national anti-poverty program of the U.S. Conference of Catholic Bishops, cut off its funding for ACORN, the controversial organization that was in the news during this just-completed election season because of allegations over voter registration fraud.  According to a November 13, 2008 press release CCHD cut off funding because of a major case of embezzlement which “raised serious concerns over ACORN’s financial accountability, transparency, governance, and organizational integrity.”  The press release then indicates that the allegations over voter registration fraud intensified CCHD’s concerns over ACORN's activities.  CCHD therefore extended its funding cut-off to any ACORN organizations.  We are not sure what the second cut-off adds to the first.  Maybe the first cut-off was similar to...

THERE IS A DIFFERENCE BETWEEN A CONDITION AND A RESTRICTION, AT LEAST THERE SHOULD BE

DATELINE, October 31, 2007, Chicago

On October 22, 2007, the Court of Appeal, Fourth Circuit, in the State of Louisiana issued its opinion in the ongoing dispute between Tulane University and two descendants of Josephine Louise Newcomb. Newcomb made a gift in 1886 to Tulane University to establish the H. Sophie Newcomb Memorial College. Yes, that is 1886, not 1986. The descendants are unhappy that after more than...

HABITAT FOR HUMANITY: TOO MANY AFFILIATES WITH REASONS TO OPPOSE MORE NATIONAL CONTROL?

DATELINE: July 18, 2007, Chicago

New York Times reporter Stephanie Strom set the pick for us today in her article “Some Worry Home Charity is Shedding Grass Roots: Affiliates Wary of Centralization.”  Strom begins her article by noting that there are some 1,600 Habitat for Humanity affiliates around the country.  She then continues that the national organization is trying to tighten control over the affiliates. 

According to Strom, the move toward centralization has lead to defections at the local level.  Some staff are leaving their local Habitat for Humanity organizations while some organizations are considering leaving...