Sunday, March 7, 2010

Doing Good Can Be Bad

Unless you are really aware of what it is you are about to engage in--studying the terrain prior to engaging--is as eternally smart as is the age of the adage, “Look before you leap.”

This article from the Wall Street Journal looks at that wisdom in the philanthropic world.

An excerpt.

“When Kent M. Keith was a Cub Scout in the 1950s, he had a great urge to do good deeds and pile up merit badges. Was it altruism? Ambition? A chance to feel better about himself? Was he really making a difference?

“One day, his father set him straight. "Kent," he said, "don't help the old lady cross the street unless she wants to go."

“Kent Keith, now 61, is CEO of the Greenleaf Center for Servant Leadership, a nonprofit organization based in Westfield, Ind., that advises groups and individuals on practical and ethical ways of helping others.

“Most of us want to be effective, he says, "to make the world better. But before you help people, you have to ask them, 'What do you need? What do you want?' "

“Every day, we see reminders of the limitations, and even the dangers, of good intentions. In Haiti, U.S. missionaries who said they only wanted to save orphaned children ended up arrested on child-trafficking charges. In Asian countries hit by the 2004 tsunami, residents still shake their heads over the warehouses filled with unusable donations, including winter coats and stiletto shoes. And earthquake-ravaged Chile is sure to receive its share of "useless aid" in the days ahead.

“Closer to home, good intentions are often greeted cynically, or with indifference. In Hollywood, celebrities recently gathered to again sing "We Are the World," and much of the world yawned in response.

“In Chicago's City Hall, waterless urinals in a men's room were touted for saving 50,000 gallons of water a year per urinal. But without enough water per flush, the copper pipes corroded and urine collected in the restroom wall. The smell of urine spread through City Council chambers. Last month, amid snickering, the well-meaning conservation effort was abandoned, and regular urinals were reinstalled.

“The steady procession of such stories would have us believing the old axiom that "no good deed goes unpunished." How can we better calibrate good intentions in our own lives?

“The answer, from activists and academics who study the human impulse, is blunt. Throw out any ideas of winning praise for your work—be honest, most of us want to be stroked—and build up some armor to take hits. A growing field of organizations has sprung up to advise people looking to donate, time or money, to help potential donors achieve these steps.

"Throw away your assumptions about what people need," advises Tori Hogan, a 27-year-old activist who has traveled the world studying the effectiveness of aid programs. Beyond Good Intentions, the Cambridge, Mass.-based charity-watchdog organization she founded, posts videos on its Web site that evaluate aid projects.”

Saturday, March 6, 2010

Spirituality, Ethics, Social Concerns & the Workplace

In the continuing movement to bring a stronger sense of spiritual maturity to the for profit sector—which is already evident within the nonprofit sector—business schools are reworking their curriculum, as reported by the Wall Street Journal.

An excerpt.

“For years, companies have suggested changes to bread-and-butter business school courses.

“But recently, firms have begun to try to make their mark on another subject: social responsibility and sustainability.

“Some companies are taking a hands-on approach to help train potential employees, using real projects in an effort to help students move beyond case studies that are quickly becoming outdated.

“Students "really need to go and dig into the behind-the-scenes operations. If we don't give [them] that opportunity, they come out handicapped," says Dave Stangis, vice president of corporate social responsibility and sustainability at Campbell Soup Co.

“This new push is part of a larger effort among corporations to integrate social concerns beyond donations and once-a-year volunteering. The effort is being met with both gratitude and skepticism from business schools, which say that despite the emphasis on integrating these hot-button topics into the curriculum, it's business as usual at recruiting time. Few hiring managers, they say, ask students about corporate-responsibility training or indicate it's a priority.

“Still, for their part, companies say that working with business schools is important to ensure a new generation of workers sees corporate responsibility as a bottom-line booster, not just something to feel good about.

"My whole goal in this [role] is to mature the curricula," says Mr. Stangis, who finds that many M.B.A.s—even those studying the subject—need to better understand how to implement CSR-related initiatives so they can have a real impact and business tie-in. "I don't think we are turning out the kind of students that we need to in this field."

Friday, March 5, 2010

Hedge Fund Philanthropy

Many of the wealthy have become great philanthropists, especially since the seminal The Gospel of Wealth by Andrew Carnegie, was published in 1889.

This story from the Wall Street Journal reports on the philanthropy of some of the current wealthy.

An excerpt.

“The founder of U.K. hedge-fund manager CQS, Michael Hintze, nods towards the view out of his window, over the gardens of Buckingham Palace and towards central London.

"If we just look out there, we see churches, halls and hospitals that were all built by private individuals through private subscriptions," he says. "It all came from private philanthropy."

“Mr. Hintze belongs to a group of hedge-fund managers, which includes the likes of Chris Hohn of TCI and Ian Wace of Marshall Wace, who are as well known—perhaps, even better known—for their charity work as for their day jobs.

“Running a hedge fund is by necessity a secretive activity, while philanthropy thrives on publicity. It is a tension that the intensely private Mr. Hintze admits to wrestling with. It is perhaps one of the reasons that he uses the view out of his window to put in context the $35 million he has donated to a variety of causes within a long tradition of philanthropy.

“He was reluctantly persuaded to abandon his policy of anonymity by the University of Sydney, his alma mater, when he donated funding for a professorial chair in international security. The university wanted to name the chair after him because it thought it would inspire other people to make similar bequests.

“It was a step he says he took with great trepidation: "I trusted them, so I did it. [But] it's like beating your chest. I cannot pretend to be modest for one second, but that was a big step."

“Mr. Hintze has since become one of the public faces of philanthropy in the U.K. So many letters requesting donations pour into CQS's office that he has hired a person to deal with them. "Somebody has to read those letters, and treat those people with respect," says Mr. Hintze. "They are not asking just because they want something for nothing. You need to consider their requests, you need to think about them and you need to reply."

“The Hintze Family Charitable Foundation has supported around 150 charities in the last five years. These range from the Wandsworth Museum, in an unfashionable borough of London, to the Victoria & Albert Museum, the world's largest museum of decorative arts and design.

“A simple principle guides which charities Mr. Hintze supports: He wants to give something back to people and institutions with which he has a personal connection. "Wandsworth, for example, as a community has given a lot to me and my family," he says. Mr. Hintze lives with his wife and their four state-educated children in the South London neighborhood. He says the V&A has given him enormous pleasure and aided his intellectual growth. He backs the Conservative Party because "it is pretty clear to me that my success has happened in the U.K. because of the context that the Conservative Party provided."

Thursday, March 4, 2010

IRS Announcement, Sacramento Tax Workshops

“IRS Exempt Organizations is offering a one-day workshop for small and mid-sized section 501(c)(3) exempt organizations. Each workshop, presented by experienced Exempt Organizations specialists, will explain what 501(c)(3) organizations must do to keep their tax-exempt status and comply with tax obligations. This introductory workshop is designed for administrators or volunteers who are responsible for an organization's tax compliance.”

Workshops will be in Sacramento March 16, 17, & 18 & you can pre-register [required] at this IRS link.

Wednesday, March 3, 2010

Small Nonprofit Theater Groups

They are some of the most innovative and inspiring artists working in theater and dare to go places few established groups will, as this story about a Memphis Improv described by The Commercial Appeal.

An excerpt.

“A few minutes before a special performance to help a local nonprofit celebrate its 15th anniversary, a group of actors stood offstage wondering if they were in too deep.

“The actors were with Playback Memphis, an improvisational theater troupe that turns personal stories from audience members into live theater.

“Their audience, Victims to Victory, was a support group for families who have lost loved ones to homicide.

“Tough stories.

"We often go to deep places in playback," said actor and real-life therapist Bill Baker as the cast prepared to face the crowd. "But I suspect this is going to be a hard one."

“The troupe reenacts the experiences of others in what they call a playback, blending literal details of the story with theatrical flourishes that include music and dance.

“When it was time to go on, the actors joined hands in a circle. Virginia Murphy, the troupe's leader, offered more of a prayer than a motivational speech. "Let's invite something larger than ourselves into this performance," she said. "Give us what we need to be of service. ..."

“In theater, tragedies run two acts plus intermission. In life, they run for years.”

Tuesday, March 2, 2010

Government Nonprofits

Creating a public/private partnership to promote public interest is becoming a more valuable strategy during the tough economic times the United States is now undergoing, and this story from the Los Angeles Times notes the value a government agency can realize by creating a nonprofit to fulfill part of its mission.

An excerpt.

“Aiming to reverse a steep drop in international visitors since the 2001 terrorist attacks, Congress last week passed legislation creating a nonprofit corporation to promote the United States as a travel destination.

“A $10 fee on many foreign visitors would help finance the new corporation and could raise as much as $200 million a year.

“Among the legislation's goals is to better explain the stricter U.S. entry requirements for foreign visitors since the attacks.

“Those policies are cited as the main reason foreign travel to the U.S. is down 9% since 2000 although it is up 39% worldwide in the same period, according to the U.S. Travel Assn., an industry trade group…..

“The new initiative would generate $650 million in tourist spending and create 6,500 jobs annually in California, according to the Oxford Economics study.

“The legislation would impose a $10 fee on visitors from 35 European and Asian countries who do not need visas to enter the United States. It would not apply to visitors from Mexico or Canada.

“The fee, which would cover a traveler for two years, would produce as much as $100 million a year to match money and in-kind contributions, such as advertising, raised by the travel industry. California and some other states also use a public-private model for tourism promotion.

“After a start-up period, the fee would generate as much as $200 million a year to be spent by the corporation, which would be overseen by a board of 11 people appointed by the Commerce secretary. If the industry reaches that level, it would give the U.S. the largest tourism promotional budget of any country, Dow said.

“But imposing a fee on foreign travelers, particularly when the world is recovering from a major recession, could be counterproductive, warned Steve Lott, a spokesman for the International Air Transport Assn., which represents carriers in the U.S. and abroad.

"We question the logic of the U.S. going out to travelers around the world and saying, 'Please come visit the United States, but we're going to charge you more at the door,' " he said.”

Monday, March 1, 2010

Nonprofits to be taxed?

Tough public budgets stimulate drastic responses and the idea to tax nonprofits—as reported by the New York Times—is certainly that.

An excerpt.

“Faced with steep declines in tax revenue, an increasing number of states and localities are considering eliminating various tax exemptions for nonprofit groups.

“A bill before the Hawaii Legislature, for instance, would require charities to pay a 1 percent tax, and Kansas is considering making them subject to sales taxes.

“Revoking the nonprofit organizations’ exemptions from property taxes is also under scrutiny in several counties in Kansas, as well as in Pennsylvania.

“And last fall, Minneapolis made charities subject to the fees it charges businesses and residents for streetlights in hope of gaining an additional $155,000, an exercise Jon Pratt, executive director of the Minnesota Council of Nonprofits, describes as “looking under the sofa cushions.”

“In most cases, churches would be exempt from the tax measures, but all other nonprofit groups, including private schools and colleges, would be affected.

“City and state officials say they have no choice.

“We’re having to look at the public services nonprofits use and how we can adequately cover those costs,” said Matt Greller, executive director of the Indiana Association of Cities and Towns. “We can’t give them away for free any longer.”

“Nonprofit groups say the moves to wring revenue out of them are shortsighted and will produce cutbacks in critical services that governments rely on them to provide, like mental health and emergency foster care services.

“Nonprofits are really hurting in this economy,” said Tim Delaney, chief executive of the National Council of Nonprofits, a trade association. “Their revenues are down, too, and demand for the services they provide, services that government expects them to provide, is way up.”