Charity Governance

ENABLING MASSACHUSETTS ATTORNEY GENERAL MARTHA COAKLEY'S AND SENATOR MARK MONTIGNY'S EFFORTS TO DICTATE TO PRIVATE NONPROFIT ENTITIES

DATELINE: May 25, 2011, Chicago

Massachusetts Attorney General Martha Coakley knows best, which is why she and her minions in the Massachusetts State Legislature continue their crusade against compensating nonprofit directors.  Now her minions want to cap...

DID LANCE ARMSTRONG DRINK MORE THAN THREE CUPS OF TEA?

DATELINE: May 23, 2011, Chicago

We are not regular viewers of 60 Minutes, but we just so happened to catch last night's broadcast, which raised serious questions as to whether Lance Armstrong, the winner of seven Tour de France races, broke the rules against the use of performance-enhancing  substances and treatments.   His former teammate, Tyler Hamilton, certainly indicated so in what was a gripping interview.  Armstrong has previously denied use of prohibited substances and treatments.  He has denied the allegations leveled against him by Hamilton and another former teammate, Floyd Landis.  As usual, we will give Armstrong the presumption of innocence until there is a final adjudication to the contrary. 

Although Armstrong undoubtedly hopes that these allegations will go away, that is unlikely.  There are reports of a...

NEW YORK POST REPORTER MISSES THE REAL STORY DUE TO THE APPARENT ALLURE OF LOBSTER, GOLF, AND EXEC COMP

DATELINE: April 12, 2011, Chicago

Heather Haddon of the New York Post certainly had a story to tell earlier this week.  Power of the Purse: Execs' Pay Shock (April 10, 2011).  She obviously knows about the power of the revised Form 990.  Haddon tells the story of an obscure New York nonprofit, The New York Independent Service Operator (NYSISO).  This organization manages high voltage lines and oversees the sale of electricity to utilities like Consolidated Edison.  According to NYSISO's 2009 Form 990, the executives and some of the directors look to be well compensated.  For somewhere between 12 and 14 hours of work each week, the directors receive reportable compensation ranging from...

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...

ARE THE FOLKS RUNNING SUSAN G. KOMEN FOR THE CURE A BUNCH OF JERKS?

DATELINE: January 5, 2011, Chicago

Like many Americans, we get much of our news from Jon Stewart and Stephen Colbert.  This past Monday, Colbert came back from his extended holiday break.  He certainly caught our attention during his Tip of the Hat, Wag of the Finger segment, reporting that the Susan G. Komen For the Cure (SGK),  a well-known charity that funds breast cancer research and provides assistance to those diagnosed with breast cancer, was suing other charities that had incorporated “the Cure” into their names or promotional efforts. 

In following up on Colbert’s crack reporting, we found that while Colbert had awarded SGK a...

THE SHAPE OF THINGS TO COME: LAWSUIT OVER CLOSURE OF ST. VINCENT’S HOSPITAL

DATELINE:  August 17, 2010, Chicago

Verena Dobnik reported in yesterday’s Washington Post that a group calling itself  The Coalition for a New Village Hospital has filed a lawsuit in New York State court. Former Staff File Suit Against Closed NY Hospital (August 16, 2010).  The suit was filed by Yetta Kurland, an attorney, on behalf of former hospital employees, one-time patients, and area residents.  The Coalition is seeking disclosure of documents under a freedom of information act.  It is demanding a probe and public hearing regarding St Vincent’s finances.  According to Dobnik’s reporting, the complaint questions the salaries of the hospital's top executives and amounts paid to consultants, among other questions it raises regarding the hospital's management.

The filing should be of interest to regulators, nonprofit hospitals, and communities throughout the country.  While we can’t predict how the recently enacted health care reform legislation will play out, it is a good bet, particularly given the already precarious condition of many nonprofit hospitals and other nonprofit health care providers, that this is not...

ANOTHER REASON THAT FUNDRAISING EFFICIENCY RATIOS ARE A WASTE OF TIME

DATELINE: June 14, 2010, Chicago

Too many people obsess about fundraising expenses and efficiency ratios.  Fundraising is a legitimate and necessary activity.  There can be no program services without fundraising.

With that in mind, we chuckled as we read a May 29, 2010 article in the Wall Street Journal discussing street solicitors.  Anne Kadet, Earnest Fund Raisers or Hired Guns?  We had no idea.  When we and the staff go out for our weekly taco lunch, we often encounter college-aged students soliciting for  organizations like Green Peace.  “Do you have a minute for the environment?” is the typical come on.  Nope, we want our tacos. 

We had assumed these were just idealistic students.  Apparently not.  Kadet reports that many of these sidewalk canvassers are working on commission for the organization in question or for professional fundraisers.  In Britain, these folks are referred to as

IS AN ATTORNEY GENERAL REVIEW REALLY NECESSARY?

DATELINE: May 18, 2010, Chicago

Two weeks ago, we wrote about the goings on at Boston’s Beth Israel Deaconess Medical Center.  To quickly summarize, the CEO had a personal relationship with a staffer.  Although the relationship did not violate any hospital policy, the hospital’s board was concerned about “appearances” problems and the poor judgment exhibited by the CEO.

We thought the hospital board should have been...

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...

STAFF CUTS DRAW BLOOD AT FLORIDA BLOOD CENTERS

February 22, 2010, Chicago

We thought we had previously written about the goings on at Florida’s Blood Centers—we certainly have included a discussion of the conflicts of interest that existed at the center in our new Webinar, which will be available later this year.  We, however, haven't posted a blog about the story that first came to our attention last November when we were in Florida for a conference.

As it turns out, the Orlando-Sentinel has been running stories about this nonprofit since...