Charity Governance

WHY THE SPORTS LEAGUES SHOULD CREATE A DONOR-ADVISED FUND FOR THEIR CHARITABLY-INCLINDED ATHLETES

DATELINE:  January 19, 2011, Chicago

Dallas Morning News reporter Scott Farwell has an excellent article in yesterday’s newspaper on athlete-sponsored charities.  Some Dallas Sports Stars’ Charities Waste Money, Inefficient.  The storyline, however, is...

CONNECTICUT ATTORNEY GENERAL DOESN’T LIKE ARBITRATION IN WESLEYAN DISPUTE

DATELINE: August 24, 2010, Chicago

On January 8, 2010, we wrote about the dispute between the Wesleyan and its former chief investment officer.  As we noted at the time, the civil allegations against Thomas Kannan were initially eye popping, but after examining the known facts, we thought that Kannan could...

THE SHOT THAT WILL BE HEARD IN BOARD ROOMS ACROSS THE NATION: FOUNDATION DIRECTOR HELD LIABLE FOR $2 MILLION

DATELINE: March 25, 2010, Chicago

While at least 14 state attorneys general are filing lawsuits to torpedo health care reform, at least one is not—the Oregon Attorney General—John Kroger.  AG Kroger apparently is engaged in more productive efforts.  His office announced yesterday that is had obtained a...

SORRY, WE AREN’T SYMPATHETIC: MADOFF IS YOUR PROBLEM, NOT THE GOVERNMENT’S

DATELINE:  March 25, 2010, Chicago

For a number of reasons, we aren’t big fans of health care reform as it was enacted. One is the issue of personal responsibility.  It's your choice whether you regularly eat 64 ounce cheese and bacon burgers, washed down with 64 ounces of sugar water, but you should pay the extra health costs that inevitability will follow your choices.  In other words, any health care reform legislation should contain economic incentives and penalties aimed at shaping choices that are within the control of individuals.  Don’t look for society to subsidize your own missteps, which brings us to the lawsuit filed against the SEC by...

UNIVERSITIES WITH ENDOWMENTS AND FOUNDATIONS MAY RECEIVE A LESSON IN ANTI-TRUST LAW

DATELINE: March 23, 2010, Chicago

Any lawyer who has every represented an investor looking at private placements—be the investment a hedge fund, private equity deal, tax shelter, or oil and gas deal—always shakes his head.  The offering circular normally comes in at 150 to 200 pages  of fine print, with pages of risk factors listed upfront.  What always is amazing are...

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...

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...

WESLEYAN LAWSUIT AGAINST FORMER CIO HOLDS LESSONS ABOUT E-MAILS AND CONFLICTS

DATELINE: January 8, 2010, Chicago

The Wesleyan Argus is reporting that Wesleyan University filed a lawsuit against its former Vice President of Investments and Chief Investment Officer, Thomas Kannan, for breach of fiduciary duty, civil theft, breach of contract, fraud, statutory forgery, and unjust enrichment.  Rob Wohl and Ezra Silk, University Sues Former Investment Officer Thomas Kannam for $3 Million (January 4, 2010).  Our initial reaction was to utter...

THEY'RE COMING TO GET YOU: TAXES, TAXES, TAXES

DATELINE: January 4, 2010, Chicago

Happy New Year, nonprofit world.  Those greetings come both us and tax officials.  We will be writing about you in the New Year.  The taxing authorities will be looking to tax you, if the end of the last decade is any indication of what is to come.

Let’s begin with begin by looking at what is happening federally.  We have our eye on the proposed...

NEW JERSEY ATTORNEY GENERAL BRINGS LAWSUIT IN WHAT COULD TURN OUT TO BE THE NONPROFIT CASE OF THE YEAR—PART I

DATELINE: September 29, 2009, Chicago

A little under two weeks ago, New Jersey Attorney General Anne Milgram filed sued against the trustees of the Stevens Institute of Technology, Harold J. Raveche, Lawrence Babbio, and unnamed John and Jane Does in what, if the allegations prove true, could prove to be the story of the year in the nonprofit world.  The 90-page complaint is sweeping in its allegations.  Raveche is the CEO and Babbio is the chairman of the board and a member of the executive committee.  While there have been incidents involving excess compensation, violations of the terms of restricted gifts, deception, failed investment management, and breach of the duty of care, we can't...