Philanthropy News Report

Provided as a service of Bentz Whaley Flessner

Wednesday, September 30, 2009

'Funniest Celeb' Charities Get Little Aid

The annual “Funniest Celebrity in Washington” contest, in which politicians and prominent media figures do an evening of stand-up comedy to raise money for charity, has made no contributions in the past five years to its intended beneficiaries. This contest has triumphed in getting some of this city's major players to cut loose with surprisingly outrageous stand-up comedy acts, however virtually all revenue appears to have been eaten up by the costs of putting on the one-night show, plus a year-round part-time salary for founder-CEO-host Richard Siegel and administrative expenses that charity-finance experts say are unusually high for such a small organization.

Full-text post is available via The Washington Post, 9/29/09.

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Charities Use Dubious Annuity Pitch

Forbes reports that dozens of charities are using an off-the-shelf solicitation for charitable gift annuities that includes an endorsement from a fake person. These charities, including some with brand names, have been soliciting gift annuities over the Web citing unlikely high yields and an endorsement from a false representation quoted as saying she is "delighted" with her investment.

Full-text post by William P. Barrett and Daniel Fisher is available via Forbes Magazine, 9/29/09.

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Tuesday, September 29, 2009

A Brooklyn of Wealth and Needs Gets a Major Charity All Its Own

The Independence Community Foundation, by changing its tax status so it can raise money rather than simply rely on income from its roughly $50 million endowment, is now concentrating most of its fund-raising and all of its grant-giving on its Brooklyn neighborhood. The charity, to be renamed the Brooklyn Community Foundation, will be the first community foundation devoted to a single New York borough, as well as a potential rival to other groups that raise and disperse money in Brooklyn and other parts of the city.
Full-text post by Diane Cardwell is available via The New York Times, 9/28/09.

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Happy Together

The recession has slowed the intense job hopping of recent years in fundraising. Four professionals at various stages of their careers discuss what factors contribute to job satisfaction, including Bentz Whaley Flessner's Tom Grabau, a managing associate who has surveyed fundraisers to find out what is most important to them.

Full-text post by Diane Webber-Thrush is available via the Current, 10/09.

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Monday, September 28, 2009

Student Lenders, Fighting to Survive, Spend Millions to Lobby Congress

Between January 1, 2008, and the end of June 2009, the top 20 participants in the federal bank-based loan program spent nearly $14-million lobbying the federal government, some $3.1-million of it in the first half of this year alone. At the same time, they've showered members of the Congressional education committees with close to $600,000 in donations in an effort to persuade Congress to reject President Obama's plan to end bank-based student lending.

Full-text post by Kelly Field is available via The Chronicle of Higher Education, 9/28/09.

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What Cities Give the Most Money Online?

In terms of online giving, Alexandria, Va., took the prize for the most charitable giving per capita last year among cities with populations over 100,000, according to an analysis by Convio, a company that provides Web-based software to charities. The city, which is located just a few miles from Washington, D.C., was followed by Cambridge, Mass., and Minneapolis, Minn.
Full-text post by Caroline Preston is available via The Chronicle for Philanthropy, 9/24/09.

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Friday, September 25, 2009

Pro Bono Spreading With The Recession

Cash-strapped companies have found a way to get more from their charitable bucks, creative giving experts explain. Pro bono work by architects, lawyers and even corporations has been growing during this recession. That's in contrast to past downturns and seems to reflect an enlightened opportunism. It's a way to put idle employee hands to work, to network and to get greater bang from a firm's charitable bucks.

Full-text post by Richard C. Morais is available via Forbes Magazine, 9/24/09.

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State Supreme Court gets hospital tax exempt case

The Illinois Supreme Court will hear oral arguments to determine if a nonprofit Catholic hospital is providing enough charity care to warrant tax-exempt status. The outcome of the case involving Provena Covenant Medical Center could affect nonprofit hospitals across the country.

Full-text post by Lindsey Tanner is available via The Chicago Tribune, 9/23/09.

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Thursday, September 24, 2009

Postal Museum Receives $8 Million Gift

A financial manager has donated $8-million to the National Postal Museum, the largest gift in the D.C. institution’s history, according to The Washington Post. The gift will pay for a 12,000-square-foot gallery named for the donor William H. Gross, founder of the global investment company Pimco. Mr. Gross has amassed one of the world’s most important stamp collections.

Full-text post by Jacqueline Trescott is available via The Washington Post, 9/23/09.

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Nonprofits Paying Price for Gamble on Finances

The New York Times reports on the wide range of nonprofit organizations struggling with debt, largely from issuing tax-exempt bonds during fatter times. More than twice as many charities issued such bonds in 2006 as in 1993, mostly to finance property and construction projects. Debt linked to those bonds rose from $98-billion to $311-billion during that period, adjusted for inflation, weighing down organizations ranging from major universities and arts institutions to tiny social-service providers.

Full-text post by Stephanie Strom is available via The New York Times, 9/23/09.

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Wednesday, September 23, 2009

Give Options To Donors Waiting Until Next Year

A vice president of development explains that most donors are too spooked about the economy to even think about multi-year commitments, especially when donors are looking at significant decreases in their stock portfolios and real estate values. One way to approach the shy donor base is to start talking about planned giving, as donors are holding their money tightly while they are uncertain about the not-so-distant future.

Full-text post by Michele Donohue is available via The NonProfit Times, 9/21/09.

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Gates charity funds go out as loans, too

The Bill & Melinda Gates Foundation is increasingly making loans, loan guarantees, and equity investments as ways to stretch its philanthropic dollars, The Seattle Times reports. The so-called program-related investments include $20-million to a German company to expand banking services in Africa, an $8-million equity fund to invest in health-care ventures, and loan guarantees backing U.S. education.

Full-text post by Kristi Heim is available via The Seattle Times, 9/20/09.

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Tuesday, September 22, 2009

Students at For-Profit Colleges Are Most Likely to Default on Loans, Report Says

Students at for-profit colleges and universities are more likely than students at private and public institutions to default on federal student loans, according to a report issued today by the Government Accountability Office. The report even says some proprietary colleges help students obtain high-school diplomas from diploma mills to become eligible for federal aid.

Full-text post by Libby Nelson is available via The Choricle of Higher Education, 9/21/09.

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Monday, September 21, 2009

Nonprofit Health-Care Groups Suffer Major Investment Losses, Study Finds

The value of investments held by 143 nonprofit health-care organizations that participated in an annual study fell an average 21.2 percent in 2008 — by far the worst results since the study began in 2002, according to The Choricle of Philanthropy.

Full-text post by Suzanne Perry is available via The Choricle of Philanthropy, 9/21/09.

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Recession’s impact felt less in campus coffers

Despite the down economy, area universities continue to bring in lots of donation dollars, as some donors express that the decision to give is “fairly simple.” In the fiscal year that ended June 30, four schools received cash, pledges and deferred gifts totaling more than $350 million. The University of Kansas even set a fundraising record.

Full-text post by Mara Rose Williams is available via The Kansas City Star, 9/20/09.

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Friday, September 18, 2009

New Jersey Alleges Misuse of Funds by Stevens Institute of Technology's Leaders

The attorney general of New Jersey filed a 16-count civil complaint against the Stevens Institute of Technology, its president, and the chairman of its Board of Trustees charging that the college spent its endowment excessively, mishandled investments, failed to maintain accurate records, and gave too much money to its president. The state's lawsuit seeks the removal of the president and chairman and wants the defendants to repay Stevens's endowment.

Full-text post by Scott Carlson is available via The Chronicle of Higher Education, 9/17/09.

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Record-setting year for Rutgers fundraising

Rutgers University collected more than $128 million in new gifts and pledges during 2008-09, a 6 percent increase over the previous year. Among the gifts was $13 million from an anonymous donor, the largest private donation in school history.

Full-text post by The Associated Press is available via Asbury Park Press, 9/17/09.

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Thursday, September 17, 2009

Acorn Orders Inquiry in the Wake of a Video

The Association of Community Organizations for Reform Now, with offices in 110 cities in 40 states, is the largest neighborhood-based antipoverty group in the country, using old-fashioned methods of door-knocking and noisy protests to push for local and national causes. The group, which has come under fire after employees were caught on camera appearing to encourage tax evasion and prostitution, said Wednesday that it was ordering an independent investigation.

Full-text post by The Associated Press is available via The New York Times, 9/16/09.

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Twitter fundraising at $1 billion valuation

Fast-growing microblogging service Twitter Inc. is raising venture capital at a valuation of $1 billion. The popular San Francisco company said on its official blog that the round that raised $35 million earlier this year was led by Menlo Park firms Benchmark Capital and Institutional Venture Partners.

Full-text post by Patrick Hoge is available via The San Francisco Business Times, 9/16/09.

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Wednesday, September 16, 2009

A Home Run for Harlem

Harlem RBI, a community-based nonprofit created to support youth development through sports activity and team participation, and its valuable summer program has just broken its all-time fundraising record. The organization hosted its annual Bids for Kids, honoring the Executive Vice President for Business of Major League Baseball Tim Brosnan, where the combined take from ticket sales and an auction exceeded $1.5 million, the greatest amount raised in its 18-year history.
Full-text post by Susan Carey Dempsey is available via onPhilanthropy, 9/15/09.

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Senator Baucus Releases Health-Care Proposal for Hospitals

Sen. Max Baucus' bill, known on the hill as the “chairman’s mark” and planned to be reviewed by the finance committee next week, would require nonprofit hospitals “to conduct a community health needs assessment at least once every three years and adopt an implementation strategy to meet the community needs.”

Full-text post by Grant Williams is available via the Government and Politics Watch, 9/16/09.

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Tuesday, September 15, 2009

10 Ways Colleges Can Work With Their Communities

Does your college have an uneasy relationship with their community? Has a mistrust of academe been born out of a history of broken promises and projects that have never reached completion? Have students volunteered for brief periods, bound to their course schedules and academic terms, often with little regard for the disruption to the organizations they are assisting, harming the underresourced neighborhoods that depend on the services offered? As the Obama administration has ushered in a renewed commitment to service in our country, especially for higher education, The Chronicle of Higher Education suggests 10 opportunities for colleges to assist their communities during their call to service.

Full-text post by Gregor V. Sarkisian and Sylvie Tayloris available via The Chronicle of Higher Education, 9/7/09.

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Nonprofit Groups Upset at Exclusion From Health Bills

The health care bill proposed by the Congress and the current administration, awarding a tax credit to small businesses that provide their employees with health insurance, is upsetting nonprofits who do not pay income taxes and thus would not benefit. President Obama’s statement in his health-care speech last week that a health-care system overhaul would benefit “families, businesses, and government” is fueling the fire from nonprofit groups, which say they are being left out of efforts to give employers relief from rising health-care costs.

Full-text post by Stephanie Strom is available via The New York Times, 9/13/09.

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Monday, September 14, 2009

Insurers: Stop payouts to board members

Massachusetts officials revealed plans last week to tighten oversight of nonprofit health-care organizations, including what they pay top executives, The Boston Globe reports. The Attorney General's Office believes one of the cost drivers in health care that has gotten way too little attention in the current debate is the generous way insurers and hospitals pay their top executives.

Full-text post is available via The Boston Globe, 9/7/09.

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Tulane Had the Right to Close Its College for Women, a State Judge Rules

A Louisiana state judge has dismissed a lawsuit seeking to force Tulane University to reopen H. Sophie Newcomb Memorial College as a separate undergraduate college for women, reports The Chronicle of Higher Education. The challenge came from a descendant of the donor who gave the money to start the college.



Full-text post by Katherine Mangan is available via The Chronicle of Higher Education, 8/31/09.

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Friday, September 11, 2009

Donations to cancer institute hit $1b

Accompanied by at least one other cancer center has embarked on a similar campaign, the Dana-Farber Cancer Institute fund-raising campaign has hit the $1 billion mark a year earlier than expected. Despite the economy’s ragged times, the campaign is setting what is believed to be a record for New England health care institutions.

Full-text post by Stephen Smith is available via The Boston Globe, 9/9/09.

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Equal Rights for Fundraising

Writing on his Free The Nonprofits blog, Mr. Dan Pallotta argues that fund raisers are treated as “second-class citizens to the program staff,” something he says is ridiculous given that “without fund raising there are no programs.” He claims that fundraising is the black sheep of the nonprofit sector. Without fundraising there are no programs. The less we spend on it the less money there is for programs.

Full-text post by Dan Pallotta is available via Harvard Business Publishing, 9/10/09.

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Thursday, September 10, 2009

The Power of the Purse

The New York Times Magazine discusses an exploration of the growth of women philanthropists that are using their money specifically and strategically to advance the interests of women. The article notes how women have always given generously, but, as opposed to the tradition giving to the opera, or the museum, or “their dead husband’s alma mater,” they are now funding women. The thoery? Empowered women are the key to strong families, and strong families are the key to strong communities.

Full-text post By Lisa Belkin is available via The New York Time Magazine, 8/18/09.

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Wednesday, September 9, 2009

Habitat for Humanity turning to modular houses in Baltimore

As a first for the successful nonprofit and an emerging trend in affordable-housing efforts, Habitat for Humanity of the Chesapeake is trucking in modular houses to set on the foundations as factory-built houses aren't just quick to put up, they're cheaper than homes constructed on-site. These modular homes are to be energy-efficient and have cleaner indoor air than many homeowners breathe.

Full-text post by Jamie Smith Hopkins is available via The Baltimore Sun, 9/9/09.

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Tuesday, September 8, 2009

Giving by the Wealthy Drops Sharply in 2009

The recession appears to be cutting significantly into giving at the peak of the fund-raising pyramid.


Full-text post by Peter Panepento is available via The Chronicle of Philanthropy, 8.25.09.

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Businessman Gives $14-Million for Fund-Raising Institute

An organization created by the resort and entertainment mogul Kirk Kerkorian has donated $14-million to the University of Nevada at Las Vegas to create an institute that will seek grants to improve education, health care, and social services in Nevada.

Full-text article by Emily Richmond is available via Las Vegas Sun, 8.26.09.

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After Boom Years, Money Dwindles for Higher Education

Public colleges in the Mountain West face the prospect of major cuts, just as more students return to college to improve their job skills in a weak economy.

Full-text article by Eric Kelderman is available via The Chronicle of Higher Education, 8.24.09.

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Sen. Edward Kennedy, Longtime Champion of Higher Education

Former aides to the late Sen. Edward M. Kennedy described him as a "consummate legislator" who never forgot the people behind the problems he sought to solve.

Mr. Kennedy had a hand in the creation of nearly every major federal student-aid program, from Pell Grants in 1972 to the Academic Competitiveness and Smart Grants for high-achieving, low-income students in 2006.


Full-text article by Kelly Field is available via The Chronicle of Higher Education, 8.26.09.

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For-Profit Colleges See Large Increases in Enrollment and Revenue

The recession has left nonprofit colleges and universities across the country struggling with budget cuts and uncertainties over enrollment, but many for-profit institutions are reporting record increases in student numbers and revenue—a sign that the recession is prompting more adults and nontraditional students to seek career training.

Full-text article by Erica R. Hendry is available via The Chronicle of Higher Education, 8.25.09.

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Cash Strapped Charities Put Donors' Names On Just About Everything

A new trend sparks charitable gifts as donors are recognized with plaques, buildings or even restrooms named after the philanthropists. Donor naming has been around for centuries; John Harvard got his name on a college in 1639 by bequeathing 400 books, and one of that school's former students, Bill Gates, has his name on a $30 billion foundation. But deals involving naming rights granted by nonprofits and governmental units have expanded dramatically in recent years in scope, creativity, number and dollar volume.

Full-text article by William P. Barrett is available via Forbes, 9/2/09.

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Why she's giving away $50 million

Melanie Lundquist of Palos Verdes Estates is optimistic that writing a $5-million check every year for 10 years to help low-performing L.A. schools will result in wider reforms nationally.

Full-text article by Steve Lopez is available via The Los Angeles Times, 8.21.09.

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Cracking the fundraising code

Research on fund raising by John List, a University of Chicago economist, is the subject of a report in Crain’s Chicago Business.

Mr. List’s studies on how and in what circumstances people give have been gaining cachet in nonprofit circles as organizations scramble to navigate the recession. Among his findings are that phone solicitations are more effective than direct-mail appeals and that high matching donations do not produce bigger gifts than simple dollar-for-dollar matches.


Full-text article by Christina Le Beau is available via Crain's Chicago Business, 8.24.09.

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Billion-Dollar Donors

These 14 philanthropists are the most generous people on the planet.

The most exclusive subset of the world's wealthy may be this one: those living philanthropists who have already given away $1 billion or more. For the first time ever, Forbes has put together a list of the world's billion-dollar donors.

Full-text article by David Whelan, Tatiana Serafin and Cristina von Zeppelin is available via Forbes, 8.24.09.

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Green Shoots and Greenbacks

Signs that an economic recovery may be on the horizon have pushed plans for ambitious fund-raising drives back on the table at charities around the country. And the news has given some cheer to fund raisers overseeing capital drives that have been hobbled by the recession.

Full-text article by Debra E. Blum is available via The Chronicle of Philanthropy, 8.20.09.

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States' Focus on Public Colleges Collides With Budget Reality

For states in the Pacific West, an exceptional reliance on public colleges and a steady erosion of state support has made higher education unusually vulnerable to the recession.

Full-text article by Josh Keller is available via The Chronicle of Higher Education, 8.24.09.

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Governments Urged to Modernize Human-Service Payment Systems

Federal and state governments should modernize the
way they pay for human services provided by charities,
especially given the rising demand that has been fueled by the
economic downturn.

Full-text article by Suzanne Perry available via The Chronicle of Philanthropy, 8.19.09.

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Despite Technical Problems, Michigan Arts-Funding Drive Raises $3.75M

Organizers of a massive online donation race to raise money for arts groups in metro Detroit are facing mixed reactions about the outcome of their effort. The good news is that the drive succeeded in raising $3.75 million for local cultural groups; the bad news is that technical glitches may have impeded some potential donors and upset others.


Full-text article by MARK STRYKER is available via Detroit Free Press, 8.18.09.

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U. of Chicago Reallocates $600-Million in Endowment Investments

College endowments, reeling from their worst annual performance in decades, are questioning their faith in investments that fueled huge returns before backfiring last year.

Full-text post is available via The Chronicle of Philanthropy, 8.21.09.

A paid subscription is required to read the Wall Street Journal article, and a paid subscription or temporary pass is required to view the Chronicle stories.

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PATH to use Hilton Humanitarian Prize for $25 million innovation fund

Seattle-based PATH announced today it has won the world's largest humanitarian award, the $1.5 million Conrad N. Hilton Humanitarian Prize, for its work creating effective health technologies for the developing world.

Full-text post by Kristi Heim is available via The Business of Giving, 8.18.09.

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5 steps to a successful social media strategy

Social media, as many have said time and again, is only part of your campaigning, part of your fundraising, and part of your communications. It isn’t something that lives in its own department, nor does it have staff that are separate from the rest of the organization.

Full-text post by Amy Sample Ward is available via Socialbrite, 8/20/09.

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Will Users Donate a Penny Per Email

Yahoo’s researchers want you to voluntarily slap a one-cent stamp on your outgoing e-mails, with proceeds going to charity, in a bid to cut down on spam. Can doing good really do away with spam, which consumes 33 terawatt hours of electricity every year, not to mention way too much of our time?

Full-text article by Ryan Singelis available via Wired, 8.13.09.

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• Frugal Minnesota Farmer Leaves Multimillion-Dollar Bequest

A lifelong bachelor farmer from southwestern Minnesota whose modest lifestyle and prudent investments allowed him to build a $9.3 million estate has left about half of his fortune to nonprofit organizations in Rock County.

Full-text article by PAUL WALSH and PAMELA MILLER is available via Star Tribune, 8.20.09.

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Brandeis Settles Donor Lawsuit Over Science Building

Brandeis University settled a lawsuit filed by a descendant of a donor who had been seeking to block the demolition of a science building named after his great uncle.


full-text article by JOHN HECHINGER is available via The Wall Street Journal, 8.19.09.

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U. of Pittsburgh Turns Down Bequest From Killer in Fitness-Center Shootings

The University of Pittsburgh has turned down an estimated $225,000 from the estate of George Sodini, the man who killed three women and wounded nine others in August when he opened fire in a Collier, Pa., fitness center.

Full-text article by Bobby Kerlik is available via The Pittsburgh Tribune-Review, 8.18.09.

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Nonprofits: We Must Start Beating the Drum

How can the White House Council of Economic Advisers (CEA) totally overlook more than 10% of the American workforce?

A recent CEA report regarding the economic impacts of health care reform on small businesses completely disregards the 15 million people employed by nonprofits (in 2008, according to DHHS [PDF]) and an entire sector that accounts for 11-12% of the nation’s GDP (in 2007, according to GAO [PDF]).

Full text article by Tim Delaney is avaialable via The Nonprofit Quarterly, 8.19.09.

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Volunteering on Vacation

The people at Earthwatch Institute believe science by itself is not enough to solve the world's environmental problems. Earthwatch Institute recruits 4,000 volunteers a year to work side by side with scientists.

Full-text article by Nicole Wallace is available via The Chronicle of Philanthropy, 8.20.09.

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Foundation Association Trims Staff

The Council on Foundations, an association of grant makers, this week laid off 16 percent of its staff members due to the bad economy and a restructuring of its services.

Full-text article by Ian Wilhelm is available via the Chronicle of Philanthropy, 9.3.09.

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Friday, September 4, 2009

Legacies: Senator Kennedy and Public Service

On this Labor Day weekend, we remember the late Democratic Senator from Massachusetts and the pivotal role he played in persuading public servicemen to back the ideas that eventually led to the creation of the AmeriCorps program. His vigorous efforts to promote the importance of public service, while offering incentives to encourage people of all income levels to serve, will be one of his most important legacies.

Full-text article by Shirley Sagawa is available via The Chronicle of Philantrhopy, 8/27/09.

Thursday, September 3, 2009

For $6,000, Restoration of Canceled College Class

Even after freezing hiring, cutting student support services, and reducing administrative salaries, the City College of San Francisco is facing a $20 million deficit forcing the college to cut almost 800 courses out of the school curriculum this year. In response to this budget cut, the City College of San Francisco is offering philanthropistss a chance to restore one of the hundreds of classes through its innovative sponsorship program, along with the chance to name the course after yourself!

Full-text article by Tamar Lewin is available via The New York Times, 9/1/09.

Wednesday, September 2, 2009

'Badge Charity' under Attorney General investigation

The United States Deputy Sheriffs’ Association, who previously settled a state lawsuit over allegations of deceptive and fraudulent business practices, is gaining attention from the Texas Office of Attorney General. Receiving millions in donations each year, the non-profit organization spends only a fraction of that on its charitable cause of helping underfunded sheriff departments.

Full-text article by Jeremy Rogalski is available via KHOU - Houston News, 9/1/09.

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Tuesday, September 1, 2009

Rise of the Super-Rich Hits a Sobering Wall

The rich, as a group, are no longer getting richer. Over the last two years, they have become poorer. And many may not return to their old levels of wealth and income anytime soon.

Full-text article by David Leonhardt and Geraldine Fabrikant is available via The New York Times, 8.20.09.

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