Charity Governance

DRAKE UNIVERSITY'S PRESIDENT MAY NEED TO GET HIS HEAD OUT OF THE BOOKS

DATELINE: August 25, 2011, Chicago

"Internal financial controls were circumvented by a veteran employee with knowledge of those controls"

So said Victoria Payseur, Drake University's vice president for business and finance, following revelations that a university employee allegedly embezzled $470,000 from the university over a five- or six-year period.  The employee, one Robert A. Harlan, worked for Drake University for over 20 years, according to the Des Moines Register.  'Betrayal' Felt at Drake After Report on Theft (April 21, 2011).  According to the police, the total theft may exceed $600,000.  According to the Register, Harlan apparently told police that he gave the money to...

NCAA PRESIDENT TALKS OUT OF BOTH SIDES OF HIS MOUTH--THE FIESTA BOWL SCANDAL--PART III

DATELINE: April 1, 2011, Chicago

In commenting on the Fiesta Bowl scandal, NCAA President Mark Emmert in his annual State of the NCAA/College Athletics address yesterday said,"You can't indict the entire bowl system because of what's gone out there".  Mark Blaudschun, Emmert Says Fiesta Scandal A Warning, Boston Globe (April 1, 2011). Emmert then continued:

My hope is that it will also serve as a warning shot that every community that runs a bowl game makes sure they’re doing the oversight compliance and due diligence to make sure their bowl games are well run. We have reason to believe that’s not the case.

The Final Four Questions... 

THE NONPROFIT SCANDAL OF THE YEAR: THE FIESTA BOWL, PART I

DATELINE: March 31, 2011, Chicago

The likely winner of the coveted "Nonprofit Scandal of the Year" annual award is the Fiesta Bowl, which is the alter ego of four Section 501(c)(3) organizations--the Arizona College Football Champion, the Arizona Sports Foundation, Fiesta Events, and the Valley of the Sun Bowl Foundation-- acting in concert.  Pretty good feat given that it isn't even April. 

No doubt you've read the headlines.  The New York Times summed it up...

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...

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 LESSON IN WHAT IT MEANS TO BE A NONPROFIT ORGANIZATION

DATELINE: August 13, 2010, Chicago

Earlier this week, we wrote about lawmakers who want to force nonprofits to cut the salaries paid to executives.  We just ran across another story that focuses on nonprofit compensation. ProPublica, Section 501(c)(3) media outlet, recently released its Form 990.  Its salary numbers drew a response from Mike Taylor of MediaBistro. 

 Mr. Taylor is more...

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...

THE STEVENS SETTLEMENT: GOOD FOR STEVENS, BAD FOR NONPROFIT GOVERNANCE

DATELINE: January 17, 2009, Chicago

As we noted this past Friday, the New Jersey Attorney General settled her lawsuit against the trustees of Stevens Institute of Technology, Harold J. Raveche, and Lawrence Babbio.  Although we have some disagreements with the specific terms of the settlement, overall it is in the best interests Stevens, its students, and the defendants.  Once again, however, an attorney general has squandered an opportunity...

THE NON SEQUITUR: STEVENS INSTITUTE AND THE BOARD CHAIR'S STATEMENT

DATELINE: January 6, 2010, Chicago

Editors of the Stute, pay attention.  Here are some of the questions you might want to seek answers to as part of some hard-hitting, but neutral investigative journalism. (click here to see our earlier post on neutral journalism and the Stute)

On December 30, 2009, Lawrence T. Babbio Jr., the chairman of board of trustees of the Stevens Institute of Institute, posted a three-page update on the Stevens website.  Here are some of the points he makes, and our corresponding comments and questions:

A.  Independent Investigation.  Babbio begins his letter by noting that the board of trustees appointed a special committee and an investigative committee to review the allegations contained in the New Jersey Attorney General’s complaint.  He indicates that the board has retained...

CHARITY GOVERNANCE IS RIGHT ON: STEVENS INSTITUTE OF TECHNOLOGY MAKES THE NY TIMES EDITORIAL PAGE

DATELINE: December 28, 2009, Chicago

We called it the nonprofit scandal of the year.  Last week the New York Times took notice with a lengthy article by Sam Dillon.  New Jersey College is Beset by Accusations (December 21, 2009). Today, the Times posted an editorial about the lawsuit filed by the New Jersey Attorney General against Stevens Institute of Technology officials.  Scandal of the year, you say?  Well we don’t often see the Times editorial page posting editorials on nonprofit scandals.  As is true for prior years, this year we have seen...