Saturday, December 18, 2010

Christmas & New Year Break


Merry Christmas and Happy New Year!

Blogging will resume Monday January 3, 2011.

Wednesday, December 15, 2010

Local Nonprofits in Downturn

As reported by the Sacramento Bee, the impact on local nonprofits from the economic doldrums—especially those dependent largely on government—has been substantial.

An excerpt.

“The rough economy has left charities that provide help needing more help themselves.

“Several dozen Sacramento nonprofits absorbed revenue losses of more than $1 million last year, according to a Bee analysis of charity tax forms.

“The revenue declines not only have led to lost services for area residents but have resulted in lost clout for professional associations based in Sacramento and lost jobs as they have had to cut their own staffs.

"I think the woes we have are pretty common," said Michael Minnick, executive director of the youth services charity Sacramento ENRICHES, which will shut down after almost 15 years at the end of the month. "There's less and less money out there."

“Sacramento's nonprofit industry is large and diverse. It employs about 50,000 local residents and collects billions in revenue annually. It depends heavily on government grants, membership fees and donations. But governments have been cutting back, layoffs are reducing membership rolls and donors are struggling with their own financial problems.

“Of the 400 largest area nonprofits by annual revenue, about 340 have filed tax returns showing how much money they collected in 2009. Those 340 nonprofits saw gross revenues drop by roughly $150 million last year, or about 6 percent, according to a Bee examination of the returns.

“To put that figure in perspective, $150 million is about what the city of Sacramento spends each year on its Police Department.

“Several nonprofit officials said 2010 is shaping up worse.”

Tuesday, December 14, 2010

Donation Misdirection

It has always been difficult for donors to determine how effective and efficient the charities they support are, though over the past several years the online capability of investigation from many groups like Give Well, Charity Watch, Guidestar and Charity Navigator has helped considerably.

This article in the New York Times examines some donations that might be misdirected.

An excerpt.

“This holiday season, Americans will dig into their pockets for good causes. But these gifts will sometimes benefit charlatans or extremists, or simply be wasted.

“Partly that’s because religious giving — and a good deal of casual secular giving — isn’t vetted as carefully as it should be. Researchers find that religious people on average donate more of their incomes than the nonreligious, and Christians, Jews and Muslims alike write checks to charities that they assume share their values. Dangerous assumption.

“Some well-meaning Christians will support Feed the Children, a major Oklahoma-based Christian charity that describes its mission as providing food and medicine to needy children at home and abroad. By some accounts it is the seventh-largest charity in America.

“But the American Institute of Philanthropy, a watchdog group that also runs Charitywatch.org, lists Feed the Children as “the most outrageous charity in America.” The institute says that Feed the Children spends just 21 percent of its cash budget on programs for the needy — but spends about $55 to raise each $100 in cash contributions.

“Feed the Children also has been the subject of troubling litigation and investigations. The Oklahoman newspaper says that in 2007 the charity spent $1.2 million on a house used by the founder’s daughter, a charity executive until she was fired this year. It also said that Feed the Children once lent $950,000 to a framing business headed by the founder’s son, and that the charity has sued the son for allegedly helping strip a warehouse of $5 million in materials. The son has denied the allegations in the suit.

“In addition, the institute says that Feed the Children inflates the value of food and medicine to make it seem as if it does far more than it actually does.

“Tony Sellars, a spokesman for Feed the Children, shrugged off the accusations as a disagreement about methodology and said that the lawsuits were being resolved. “We’ve helped 200,000 families in America this year alone,” he said. “The opinions we value are those of the people we’re helping.”

“Meanwhile, American Jews sometimes support nonprofits that actually make peace for Israel less likely. A few days ago, the Hebron Fund had a gala fund- raiser in Manhattan, and some of those who attended probably thought that they were supporting Jews trying to live peacefully. In fact, the Hebron settlement is notorious for extremism and violence against Palestinians. (The settlers disagree, saying that the problems arise because Palestinians want to kill them.)”

Saturday, December 4, 2010

Surgery & Blogosphere Absence

Emergency surgery right after Thanksgiving, and the subsequent recuperation will keep me from the blogosphere for a few more days.

Enjoy your weekend.