Charity Governance

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...

A MEDIA SURGE WHEN THE WHIP COMES DOWN: MORE LESSONS IN SETTING COMPENSATION

DATELINE: July 22, 2008

Yeah, baby, when the whip comes down
When the whip comes down
(I'll be running this town, I'll tell you)

Rolling Stones, When the Whip Comes Down from Some Girls

Talk about a surge.  It seems like the entire staff of the San Diego Union-Tribune has been covering what is a clear crisis for the Southeastern Economic Development Corp (SEDC).  For the last six days, the newspaper has posted at least one article each day, with graphs, charts, and supporting documentation also posted on the newspaper’s Web site.  Reporters Helen Gao, Matthew T. Hall, Jeff McDonald, and Jeanette Steele have all contributed to the overall story.

So here are the facts:  SEDC is charged with handling redevelopment of a 7.2 square mile area east of downtown San Diego.  Government officials have raised a series of questions about...

RIVERSPLASH HOLDS LARGER LESSONS ON TAX-EXEMPT STATUS FOR ALL CHARITIES

DATELINE: June 3, 2008, Chicago

Yesterday we used the chaos that occurred this past weekend in Milwaukee at its annual RiverSplash Festival as an opportunity to discuss some of the precautions that all nonprofits that run outdoor fundraising festivals should consider taking. The events of last Saturday night hold larger lessons for any charity that partners with a for-profit entity.

When we wrote about RiverSplash yesterday, we did report the basic facts, but tried to downplay the chaos and violence so that our larger points would not be obscured. The facts are now clearer. Milwaukee Mayor Tom Barrett referred to the event as a...

ALL STYLE, NO SUBSTANCE: THE SMITHSONIAN’S BOARD OFFERS LESSON IN WHAT NOT TO DO

DATELINE: April 15, 2008, Chicago

Much will be made of the today's article by Washington Post reporters James V. Grimaldi and Jacqueline Trescott regarding the February 2008 resignation of Pilar O'Leary, the head of the Smithsonian's Latino Center. Smithsonian Official Resigns After Ethics Violations. The story is tailor-made for critics of big-spending nonprofit executives. According to Grimaldi and Trescott, O'Leary was taking down about $200,000 in salary from the Smithsonian in 2005 and 2006.

Apparently wondering why O'Leary stepped down, the Post filed a FOIA request for the Smithsonian Inspector General's report covering his investigation of O'Leary. The Inspector General concluded that O'Leary "had...

NO BOARD FAILURE AT THE AMERICAN RED CROSS: THE EXPERTS ARE WRONG

Mississippi Queen, If you know what I mean
Mississippi Queen, She taught me everything
Way down around Vicksburg, Around Louisiana way
Lived a cajun lady, Aboard the Mississippi Queen….

While the rest of them dudes were'a gettin' their kicks,
Boy I beg your pardon, I was getting mine

Mountain, Mississippi Queen

We never much liked Mountain and we certainly hadn't thought about this FM nugget since high school. Thanks to today's New York Post, the opening guitar riff and raspy-voiced lyrics will be cycling through our head all day. Geoff Earle, Axed Red Cross Chief Had Mississippi Queen, Nov. 29, 2007. It'll take repeated listening to the Foundation's Build Me Up Buttercup to get it out of our heads. The headline's reference is to the Red Cross employee who now-former Red Cross CEO Mark Everson reportedly had an affair that may have reportedly resulted in a pregnancy--the woman is reportedly married so paternity is an obvious issue.  The more conservative N.Y. Times took a far more intellectual approach to the story in its second day coverage. Times reporter Stephanie Strom filled her story...

$70 MILLION IS QUITE A LEVER: RICHARD ROBERTS IS HISTORY, BUT ORU WILL SURVIVE

DATELINE: November 28, 2007, Chicago

She's a junkyard angel and she always gives me bread
Well, if I go down dyin', you know she bound to put a blanket on my bed.

Bob Dylan, From a Buick 6

We did not think Oral Roberts University would survive the ongoing crisis that has engulfed the university and captivated the readers of Tulsa World, the leading newspaper in Oklahoma. But we never would have guessed that what Tulsa World's headline writers characterize as an angel would deliver...

ACCIDENTS WILL HAPPEN, BUT THIS IS NO DISASTER

DATELINE: November 28, 2007, Chicago

The big news yesterday was the resignation of Red Cross CEO Mark Everson after just six months on the job. We received four e-mails alerting us to that news during the afternoon. Our reaction:...

SILENCE AND CONFLICTS OF INTEREST: ORU BOARD HAD BETTER START TALKING

DATELINE: November 27, 2007

Everybody thinks of conflicts of interest in terms of a nonprofit buying plumbing, legal, or insurance services from one of its directors. The unfolding scandal at ORU reveals another type of conflict, one that could be far more damaging than purchasing services from a related party. Yesterday, ORU's board of regents met to discuss last week's resignation by ORU President Richard Roberts amidst allegations of financial improprieties, mismanagement, and inappropriate political activity. Rumored to be on the agenda was discussion of the Miller & Chevalier report detailing its findings regarding the alleged financial improprieties that triggered independent investigation.

And so far, no comment ...

EVER SO PREDICTABLY THE END CAME: ORU PRESIDENT RICHARD ROBERTS RESIGNS

DATELINE: November 24, 2007, Chicago

The pattern is always the same, making the end result inevitable. A charismatic leader of a nonprofit is accused of wrongdoing. He or she resists. More and more unflattering revelations end up on the front page of the local newspaper. After much resistance, the leader resigns. The ultimate question: At what cost to the institution?

The scandal de jour is the one that has engulfed Oral Roberts University. Given the allegations, we were not surprised to learn this past Wednesday that...

LET US BE THE JUDGE: MORE TRANSPARENCY NEEDED FROM THE MILWAUKEE PUBLIC MUSEUM

DATELINE: November 12, 2007

Last Friday, Milwaukee Journal-Sentinel reporter Steve Schultze reported that Milwaukee Public Museum officials claim that the financial crisis that two years ago brought the once venerable and respected museum to its knees is over. Museum Officials Say Is Over, Nov. 9, 2007. Wasn't it...