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...

“WE DON’T GRILL PEOPLE:” MAYBE YOU SHOULD START

DATELINE: August 14, 2008, Chicago

Memories of St. Mary's College came rushing back this morning when we read in the Chronicle of Philanthropy's Elsewhere Online column about Westminster College's recent disappointment over what now appears to be a worthless $3.4 million pledge from am ostensible entrepreneur. According to Brian Maffly of the Salt Lake Tribune, Warren Kyle Foote, a 28-year old real estate developer, made the pledge to finance the Warren Kyle Foote Institute for New Enterprise. Once Hailed by College as Philanthropist-Entrepreneur Foote Spun Web of Deceit, August 12, 2008. According to Maffly, within a few months of his pledge, Foote...

THE NEWS KEEPS COMING FROM SAN DIEGO AND IT HOLDS LESSONS FOR ALL NONPROFITS

DATELINE: July 28, 2008, Chicago

Two in one month, pretty amazing. Last Thursday, Carolyn Y. Smith, the president of the Southeastern Economic Development Corp (SEDC) was terminated by a board of directors that was under pressure from Mayor Jerry Sanders to bring down the axe. Will Carless, SEDC President Ousted, Voice of San Diego, July 24, 2008; and Helen Gao and Jeff McDonald, SEDC Board Fires Embattled President, San Diego Union Tribune, July 24, 2008.  The pressure began building several weeks ago when it was revealed that SEDC employees, including Smith, had received $1 million in compensation during the last five years. The agency had budgeted $462,000, but the it actually paid

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...

SHOULD I STAY, OR SHOULD I GO? NO RESPECT FOR DIRECTORS OR DONORS AT ACORN

Should I stay or should I go now?
If I go there will be trouble
And if I stay it will be double
       The Clash, Should I Stay or Should I Go

DATELINE: June 10, 2008, Chicago

Maude Hurd, the president of ACORN, a nonprofit group, certainly has a warped sense of what is right and what is wrong when she calls ACORN's response to an alleged near-million-dollar embezzlement a judgment call. According to Stephanie Strom's recent reporting in the New York Times last week, the brother of the organization's founder is alleged to have embezzled $948,607.50 from the organization. Funds Misappropriated at 2 Nonprofit Groups, June 9, 2008.  The alleged embezzler, Dale Rathke, apparently also was an Acorn employee. We would like to put that number in perspective by comparing it to ACORN's gross revenue, but we are unable to...

GOVERNANCE POLICIES

DATELINE:  June 22, 2008, Chicago

Our very own Jack Siegel spoke at the annual CAPLAW conference in Denver, Colorado last week.  His topic:  Governance Policies.  Jack's presentation focused on conflicts-of-interest, whistleblower, and document retention policies.  He provided his audience with a thorough set of materials and what one audience member described as an...

WHAT'S THE MICHIGAN ATTORNEY GENERAL DOING TODAY?

DATELINE: May 29, 2008, Chicago

Ah sugar, ah honey honey
you are my candy girl
and you got me wanting you
Oh honey honey, sugar sugar
You are my candy girl
            The Archies, Sugar Sugar

The Michigan Attorney General must be busy today after reading Mary Williams Walsh's front page piece in today's New York Times, In Stock Plan Employees See Stacked Deck. The focus of this in-depth article is on U.S. Sugar and its employee stock ownership plan. In a nutshell, the employee participants who retire are cashed out of the ESOP based on an appraised value for their stock. But in a lawsuit, they contend that U.S. Sugar received two offers from third parties to acquire the company at significantly higher amounts. Walsh points out that offers were at $293 a share, but that at the same time, the ESOP was cashing employees out for as little as $194 a share.

In an apparent effort to demonstrate why it was not selling out for the $293 offer price, U.S. Sugar hired an appraiser that said the company was worth...

THIS BUD'S NOT FOR YOU: WHY NEPOTISM IS A PROBLEM

DATELINE: May 27, 2008, Chicago

Today's Wall Street Journal carries a fascinating story written by David Kesmodel regarding Anheuser-Busch, the brewer of Budwesier beer. Anheuser CEO Fights for His Legacy: As Rival Weighs a Bid, Busch Heir Still Seeks Father's Approval. The story should freighten shareholders because it raises serious questions whether upcoming decisions will ...

IT MUST BE NICE TO BE A SMITHSONSIAN REGENT

DATELINE: May 20, 2008, Chicago

This past weekend, the Government Accountability Office (GAO) reported on the ongoing efforts by the Board of Regents of the Smithsonian Institution to implement a number of governance reforms. The report is generally favorable, but we are nevertheless left with the impression...

BUILD IT AND THEY WILL FUND IT: WRONG

DATELINE: May 6, 2008, Chicago

The Museum of Broadcast Communications was located in the Chicago Cultural Center, a temporary location, for many years.  Over the last several years, the museum has been constructing a new museum on Chicago's State Street. The museum archives hold over 85,000 hours of broadcast and radio programming.

We hadn't been actively following the construction's progress, but we did notice when we walked past the facility that it was taking what seemed to be a...