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May 2009
Join us on twitter: NonprofitsNews and ncrp blog
"Well, you know what happens is, it starts out with you taking a little bit, maybe a few hundred, a few thousand. You get comfortable with that, and before you know it, it snowballs into something big." (Bernard Madoff’s secretary’s account)
What’s Included:
Skunk of the Month
Genesis Family Center; Speaker of House in FL.; Maricopa Com. College
Nonprofit News-In Case You Missed It
Cheating the Blind; Obama Promoting National service; Obama Wants Restricted Nonprofit Lobbying
Political/Official Chicanery
Congressman cheated campaigns; Sheriff; N.Y. Federal Reserve Resigns
Comings and Goings
What Do You Think?
***the single biggest inquiry we have is… ‘where do you find these misdeeds?’ To the degree possible, we will cite our sources so that you can follow up on these seemingly astonishing (and sordid) tragedies. Enjoy!
Skunk of the Month…
Skunk of the Month is the designation made by Nonprofit Imperative, the organization dedicated to eliminating waste, fraud, abuse and mismanagement in nonprofits and government. The Skunk of the Month award is given to charities and government officials who show blatant disregard for the interests and trust of contributors and taxpayers. This month’s example is:
Update: In our last edition we shared with you the vagaries of Genesis Family Center and how the past chief executive violated her probation after pleading no contest and she was convicted of felony embezzlement and tax evasion. The county supervisors rejected a contract with the nonprofit citing questions about its troubled past. The county was its major donor. (ksee24.com) Update-2: The former executive director of the Genesis child welfare agency pleaded no contest to drunken driving and was given a jail sentence that runs concurrent with her violation of probation. (The Fresno Bee). Update-3: Upon being confronted by police the Genesis exec. directed an expletive-laced tirade at officers, ordering them off her property, according to the report. She also called a female officer a derogatory name, (The Fresno Bee).
This one has it all
He was elected speaker of the Florida House and then his house of cards started to collapse. Both he and his friend, the president of Northwest Florida State College face felony misconduct charges for allegedly misusing $6-million in state funds for a campus construction project. The speaker inserted the $6-million into the state budget in 2007 for what college officials had described as an emergency-management operations center. A grand jury believed that the money was to sublease a hangar adjacent to a private jet operation owned by a friend of the speaker and contributor, who has given millions of dollars to his and others campaigns. The newly elected speaker accepted an unadvertised $110,000-per-year job at the college. That position arose after the speaker had steered $35-million in construction funds to the college, according to The Miami Herald. When this broke the speaker stepped down as speaker and resigned his post at the college. The president of Northwest Florida since 1987 was also indicted for perjury for allegedly lying to jurors during his testimony on about plans for the building. (Chronicle of Higher Education). Northwest Florida College president is the "poster boy'' for abuse and "retired'' in 2007, collected a payment of $553,228 and started collecting a monthly pension of $8,803 to go with an annual salary of $228,000. (Tampabay.com) There is a call to the US Dept. of Ed & US Dept. of Justice to yank the accreditation of the College
Is a Third Strike an Out?
In order to provide nonprofits with retirement plans to their staff, Maricopa Community College District broke the law by misrepresenting at least 22 employees of non-profit organizations as district employees for years. The district paid their salaries and benefits and then accepted reimbursement. The audit of the college district marks the third time since 2006 that the state auditor has found that public entities misused public money by allowing non-profit organizations to get public-employee benefits. A 2006 audit of Santa Cruz County found the county improperly made loans to a non-profit corporation to cover the non-profit's payroll costs and allowed the employees to participate in the state retirement system. In 2007, state auditors found the Maricopa County Regional School District paid salaries and provided benefits to employees of a non-profit company.
Nonprofit News-
In Case You Missed It:
1. A mother and daughter who managed a D.C. government program aimed at employing blind vendors were indicted on charges of embezzling $281,000, much of which was supposed to be paid to the vendors, who were working at snack bars, cafeterias and gift shops in federal buildings. (Washington Post)
2. The Chief Financial Officer for Traveler’s Aid of Metropolitan Atlanta, a charitable organization that provides housing, support and assistance to homeless men, women and children in the Atlanta metropolitan area abused her position. She embezzled more than $164,000.00 of the charity’s funds and used that money for her own needs. (FBI Press Release)
3. An accounting director is expected to plead guilty to embezzling more than almost $600,000 from his former employers---American Society of International Law and the American Bakers Association. He is accused of embezzling about $445,000 from the law society and $145,000 from the bakers association. (washingtonexaminer.com)
4. In 2007, it’s believed she took $200,000 from a business, but no charges were filed. Now she is accused of embezzling more than $400,000 from the Hinton Economic Development Authority (OK) (newsok)
5. Using leads largely through the membership of the Church of Jesus Christ of Latter-day Saints in Lake Arrowhead, Terrance Tucker and Sonya Tucker are currently in custody for what federal prosecutors called a “mill scheme,” a scam that squeezed about $31 million from financial institutions and up to $2 million from individuals. A “mill” is a real-estate financing scheme in which they brokered real-estate loans by banks or other lenders, using fraudulent documents. (Mountain News)
6. The fired technology director for LifeGift Organ Donation Center pleaded guilty in Houston federal court to illegally accessing her employer’s computer and deleting files including organ donation database records. After being terminated, Danielle Duann, 51, repeatedly gained access to the LifeGift network and intentionally caused damage that cost the nonprofit Texas organ procurement group more than $94,000, officials said. A charity spokeswoman said the files were retrieved and no lives were put in jeopardy. (chron.com)
7. While posing as various charities --- including The Boys and Girls Club, Planned Parenthood, Teen Pregnancy Help Center, the YMCA, various domestic abuse shelters---the police investigated and arrested Norita Appleby. She will be charged with misappropriation of an Entity's Identifying Information, a class H felony. (wmtv.com)
8. A grand jury has indicted the Tucson Museum of Art's accountant with embezzling nearly $1 million. (examiner.com)
9. President Obama's budget for next year will include $50 million to help expand nonprofit programs across the country to promote national service
10. The Council on Foundations surveyed 430 foundations in March and found that 62 percent expect to reduce their grant making this year. Almost half of the respondents said they will decrease their giving budgets by more than 10 percent. (Chronicle of Philanthropy)
11. It appears that the Obama administration’s restrictions on lobbying are drawing criticism even as the administration defends the policies. The controversy surrounds two policy documents: one addresses restrictions on hiring lobbyists and others as political appointees, and the other focuses on communications by lobbyists about use of Recovery Act funds. (OMB Watch)
12. The IRS reminds small calendar year tax-exempt organizations to file their electronic Form 990-N, known as the "e-Postcard," by the May 15 deadline. To get more information about the annual electronic filing requirement for organizations whose annual gross receipts are normally $25,000 or less, go to IRS.gov.
13. Former Haven Humane Society CEO Norman Ray Ryan was convicted of five felonies in the embezzlement from the nonprofit group. (Redding.com)
14. A new study of the Bill and Melinda Gates Foundation illustrates its global reach with spending on health issues, but notes a need for accountability on whether the money is being spent in the most effective way.
15. The president and director of YouthBuild Pensacola Inc., was arrested on state charges of aggravated white-collar crime and organized fraud and theft of $65,000 mostly intended for small businesses participating in the program. He is a former executive director of the Gulf Coast African American Chamber of Commerce and former principal of the now-defunct Gulf Coast High School, which was a charter school. (pnj.com)
16. The Internal Revenue Service has added a detailed site map to its “Charities and Nonprofits” Web site to help visitors find what they are looking for. (Chron. Of Philanthropy)
We flagged these few examples of nonprofit mischief
1. St. Mary Magdalen Catholic Church (FL) $1 million (Orlando Sentinel)
2. Crow Creek Tribal School $6000 (S.D.) (Capital Journal)
3. Baldock Health Care Center in North Huntingdon, and Humbert Lane Nursing and Rehabilitation in Washington (PA) (Post Gazette)
4. Wellsville-Middleton School District (MO) $214,000 (wgem)
5. City of Springfield (MO) $750,000 (wgem)
6. Danville Harvest Jubilee (NC) $85,000 (Danville News)
7. Macon (GA) Waves $30,000 (macon.com)
8. University of St. Thomas (MN) $178,400 (bulletintoday)
9. Union Township (MI) unknown (themorningsun)
10. Options in Supported Living (CA) $225,000 (Sacramento Business Journal)
11. Central Maine Growth Council $29,000 (boston.com)
12. Christ Episcopal Church (VA) $300,000 (dailypress.com)
13. Association of Fish and Wildlife Agencies $180,000 (Washington Post)
14. Long Beach Unified School District/Long Beach Education Foundation $100,000 (mercurynews.com)
15. Memorial Christian Church thousands (wsls.com)
16. Colours $140,000 (courier-post)
17. Knights of Columbus (FL) $18,000 (news2.com)
18. A New Beginning (KS) $3.76 million (kake.com)
19. National Children's Alliance (MD) $15,800 (fox13now)
20. Coalition to End Family Violence (CA) $50,000 (Ventura County Star)
21. Tufts University (MA) $300,000 (The Tufts Daily)
22. Salford Township (PA) $95,000
23. Sioux Empire Fair (SD) $579,000 (ktiv.com)
24. Delaware Valley Regional High School District (NJ) $90,000 (AP)
25. Routt County Habitat for Humanity (CO) $75,000 (9news.com)
26. The Yuma Southwest Contractors Association (AZ) $15,000 (yumasun.com)
27. International Association of Machinists and Aerospace Workers District 9 (MO) $341,000 (St. Louis Business Journal)
28. Jubilee Restoration Inc (CA) $177,000 (cbs5.com)
29. The American Task Force on Palestine (VA) $107,000 (Washington Post)
*update
Political/public official chicanery (just a few):
1. A former political aide to Sen. Lindsey Graham (R-S.C.) will pay a civil penalty after embezzling hundreds of thousands of dollars from Graham's Senate campaign. In November 2008, Adams was sentenced to 18 months in prison and five years probation. She was also convicted of spending money from Graham's personal account. The campaign aide obtained a credit card in Graham's name sometime between 2006 and 2007.
She had been convicted of fraud before. (The Hill)
2. The campaign manager for former Christopher Shays is being investigated by the Federal Election Commission, for significant financial irregularities. It is alleged that he quietly drained the account and had spent nearly $200,000 on Red Sox tickets, limousine travel, mysterious withdrawals at a casino and a donation of more than $1,000 to his synagogue. Mr. Shays said, “To lose an election is difficult; what happened since then is unimaginable.”
3. A former Okaloosa County (FL) Sheriff and former Okaloosa County Sheriff’s Office Director were indicted creating fictitious bonuses to sheriff’s department employees. The indictment alleges that Sheriff’s Office employees were directed to return all or a portion of the bonuses in the form of cash and cashier’s checks under the pretense that these returned funds were to be used for charitable purposes. (U.S. Attorney Press Release)
4. New York City’s longtime finance commissioner, Martha E. Stark, resigned amid a series of official inquiries. Ms. Stark faced new disclosures that she had been paid more than $134,000 in 2006 and 2007 for service as a board member of the Tarragon Corporation, a large housing builder and property owner not doing business in the city, a level of outside activity generally frowned upon by city regulations. Previously, it was reported that Ms. Stark was romantically involved with a former subordinate whose salary had risen sharply during the last three years she worked for the agency. She had decided to retain the husband of her first deputy commissioner as a parking ticket judge even though city investigators had found discrepancies in the time sheets submitted by the husband.
5. Two longtime supervisors at the Canyon County (WY) Division of Motor Vehicles are facing felony charges of grand theft of “a large” amount of money. (Localnews8.com)
6. They do not show up on staff rosters and touted belt-tightening, the California House and Senate leadership hired friends and close confidants to positions that totaled nearly a half a million dollars. (Sacramento Bee)
7. The chairman of the Federal Reserve Bank of New York resigned after questions were raised about his role as a director of Goldman Sachs and his purchases of stock in the company. This was after Goldman came under direct supervision of the New York Fed. He is representative of the too-cozy relationship between the New York Fed, which serves as the central bank's eyes and ears on Wall Street, and the bankers it oversees, critics say. (Washington Post)
8. Prosecutors are alleging that a 74-year-old spent $60,000 in public funds for personal use before retiring as Vernon (CA) city administrator five years ago. He reported a salary of more than $600,000 that had made him one of the state's highest paid city officials. (signonsandiego.com)
9. Former New York state senator has pleaded guilty to fraud charges, admitting that he used charity groups to steal hundreds of thousands of dollars. Efrain Gonzalez admitted that he siphoned the money away from charity groups that received state grants from $200 million the New York Legislature. (NYT) His gal friend admitted her role in Gonzalez's theft of $200,000 in public money, but as part of a plea deal with the feds, she faces a likely sentence of between four and 10 months in prison. (daily news)
10. Former Fresno (CA) County Deputy Coroner Joseph Tiger was sentenced to 18 months in jail and 5 years of probation, after pleading guilty to embezzlement charges. Tiger was accused of stealing from the dead. (ksee.com)
11. A former Water Operations Supervisor for the City of Sonoma, Calif., pleaded guilty to personally receiving financial payments from a parts vendor with whom he had arranged contracts for the City.
12. A Macomb County (MI) postal worker is charged with stealing more than $19,000 in stamps and selling them for discount online to help pay his mortgage was arraigned. (freep.com)
What do you think??? : gary.r.snyder@gmail.com
Don’t miss Gary Snyder’s latest contribution to the National Committee on Responsive Philanthropy website (ncrp.org)
Nonprofit Imperative gathers its information solely from public documents...some of which are directly quoted. Virtually all cited are in some phase criminal proceedings; some have not been charged, however.
Recent (cites) Comings and Goings:
• Funding Incompetence (ncrp.org)
• An Assault on Charities (ncrp.org)
• Nonprofit Hospitals Chase Debt (The Sun News)
• Is CEO Pay at Angel Food Ministries Excessive? (Atlanta Journal
Constitution)
• Five Rivers Outcome a Travesty (The Sun News)
• Where’s the Ire? (ncrp.org)
• A rags-to-riches life, with painful detours (Atlanta Journal Constitution)
• Five Rivers leaders guilty on six counts (The Sun News)
• Angel Food chief has led up-and-down life (Atlanta Journal Constitution)
• The Best Charitable Watchdog Going Kaput (ncrp.org)
• Five Rivers leaders guilty on six counts (The Sun News)
• Angel Food chief has led up-and-down life (Atlanta Journal Constitution)
• Our Students Deserve Better (ncrp.org)
• National Religious Broadcasters March 7,2009
• Siphoning Off Sacred Funds (ncrp.org)
• The Accountants and Regulators Role in the Current Collapse (ncrp.org)
• Veterans Whine as Executives Dine (ncrp.org)
• Government agency Monitoring: Indifference and Hush (ncrp.org)
• The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), Ethics World, Aspen Philanthropy Newsletter, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Newsweek.com, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, National Coalition of Homeless Newsletter, The Michigan Nonprofit Management Manual, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org,
• Nonprofits: On the Brink (iUniverse, 2006)
Our intent is to keep you informed.... You may send an e-mail that will remove you from our contact list and future mailings by emailing to nonprofitsonthebrink@gmail.com with the word "remove" in the subject line.
Email: gary.r.snyder@gmail.com
6584 Pleasant Lake Court, West Bloomfield, Michigan 48322, 248/324-3700
Website: www.garyrsnyder.com
Gary Snyder is the author of Nonprofits: On the Brink (iUniverse, February, 2006) and articles in numerous publications. The book can be bought at amazon.com, barnesandnoble.com, Barnes and Noble (store) and iUniverse.com (publisher).
© Gary R. Snyder, All Rights Reserved, 2009
Wednesday, May 20, 2009
Thursday, May 7, 2009
Nonprofit Imperative
Join us on twitter: NonprofitsNews
What’s Included:
Skunk of the Month
Getting off was not enough
Nonprofit News-In Case You Missed It
Nonprofit Lobbying Obama Appointment Push; Serve America Bill Law; Foundations Hit Badly By Economy
Political/Official Chicanery
Congressman; Police Chief; Library Board President; IRS employee
Comings and Goings
What Do You Think?
***the single biggest inquiry we have is… ‘where do you find these misdeeds?’ To the degree possible, we will cite our sources so that you can follow up on these seemingly astonishing (and sordid) tragedies. Enjoy!
Skunk of the Month…
Skunk of the Month is the designation made by Nonprofit Imperative, the organization dedicated to eliminating waste, fraud, abuse and mismanagement in nonprofits and government. The Skunk of the Month award is given to charities and government officials who show blatant disregard for the interests and trust of contributors and taxpayers. This month’s example is:
What’s Wrong with this Picture?
The executive director of Genesis Family Center, a Fresno (CA) child-welfare agency, was charged with embezzling more than $500,000. She was sentenced to three years on probation and 300 days in a work-furlough program with electronic monitoring after she pleaded no contest to felony tax evasion and embezzlement. Even in the face of the conviction she stayed on as the agency’s chief executive officer. She ignored the judge’s order that forbade her from attending social events while on probation and in a work furlough program. Her picture was splashed in a magazine at social events and she was seen at luncheons. The judge had her arrested and he sentenced her to a year in jail. She finally resigned her position with the nonprofit. (fresnobee.com)
Nonprofit News-
In Case You Missed It:
1. As he sat on the board of directors and vice president of finance, he embezzled nearly $700,000 from the Columbian Retirement Home, a (CA) nonprofit retirement facility operated by the Knights of Columbus. (Mercury-Register)
2. A coalition of nonprofit groups has started a campaign to exempt lobbyists for charitable and social welfare organizations that have tax-free status from being considered for appointment in the Obama administration. (NYT)
3. President Obama signed landmark legislation that boosts national service, volunteerism, and innovative social projects. The Edward M. Kennedy Serve America Act is to expand the country’s national-service programs and provide money for entrepreneurial approaches to social problems. While the Serve America Act outlines federal programs that can now expand or start operating, Congress still has to allocate money to pay for them.
4. The Fidelity Charitable Gift Fund, Vanguard Charitable Endowment Program and the Schwab Charitable Fund are some of the growing donor funds. In part the growth is because private foundations are frustrated by increasing fees, tax requirements and general upkeep. Donor funds allow donors to take an immediate tax deduction after making contributions; donors can advise the fund on where the grants should go; the funds don't have to make distributions as often as a foundation would; donors can give many types of assets -- including cash, securities and even art -- depending on the fund's specific rules. (WSJ)
5. Maria Eitel, president of the Nike Foundation, is to be chief executive of the Corporation for National and Community Service, President Obama announced. The corporation manages the country’s national-service programs, which are set to grow significantly under the Serve America Act. (Chronicle of Philanthropy)
6. The former executive director of Children’s Alliance (CO) was arrested and accused of stealing $20,000 from the organization (DenverChannel.com)
7. The nation’s foundations lost nearly $150 billion in assets last year, or almost as much as they have given away over the last four years, a new Foundation Center study has found. Foundation giving for the year nonetheless held steady at an estimated $45.6 billion, falling by just 1 percent on an inflation-adjusted basis. Nearly two-thirds of foundations expect to reduce the number or the size of grants they award in 2009. (NYT)
8. The former pastor of a prominent North Shore Episcopal church stands accused of stealing $84,537 over the three years from his parish to pay for plastic surgery and Botox injections, as well as prescription drugs. (topix.com/religion)
9. The former accountant and office manager for Cornerstone Christian Fellowship has been sentenced to five years in prison for embezzling $495,000 from the Chandler (AZ) church. (Azcentral.com)
10. A former employee of the Lucile Packard Foundation for Children's Health pleaded no contest to embezzling more than $350,000 over an eight-year period from an endowment fund intended to help sick youths. (San Francisco Chronicle)
11. The deputy director of two NYC Head Start programs has pleaded guilty to stealing $600,000 from the program (usdoj.gov)
12. A director and initial incorporator for United Way of the Mountains, its successor, Kentucky Charities United, and Feed God’s Children, Inc. have been convicted of using money raised to pay for residential utilities, vehicle loan, vehicle insurance and other living expenses. (The Morehead News)
13. A Baltimore pastor who worked with developmentally disabled people as an operations manager for the Arc of Baltimore was charged with befriending a blind and disabled man in his care, then paying a hit man $50,000 in church funds for an execution so he could collect on a $200,000 life insurance policy. The pastor had policies in his name as beneficiary worth nearly $1 million combined. (Baltimore Sun)
We flagged these few examples of nonprofit mischief
1. St. Paul’s Memorial Episcopal Church (NY) $85,000
2. San Diego Hispanic Chamber of Commerce (CA) $70,000 (S.D.Union-Tribune)
3. Turning Pointe Therapeutic Riding $209,000 (Westerlysun.com)
4. The Starting Place (FL) $2 million (Sun-Sentinel.com)
5. California State Bar $675,000 (Law.com)
6. First Witness Child Abuse Resource Center (MN) $125,000 (wcco.com)
7. Fremont (MI) Area Community Foundation $20,000 (Muskegon Chronicle)
8. United Steelworkers of America (PA) $88,000 (Pitt. Post-Gazette)
9. Ranch Hope (NJ) $350,000 (nj.com)
10. First Witness Child Abuse Resource Center (MN) $125,000 (Duluth News Tribune)
11. Salem United Methodist Church $113,000 (FDLREPORTER.COM)
12. First Congregational Church (MI) $50,000 (Gaylord Herald-Times)
13. First Baptist Church on Highland Avenue (NC) $300,000 (journalnow.com)
14. Community Senior Serv (CA) $1 million (Huntington Beach Independent)
15. Southern Arizona Legal Aid $18,000 (azstarnet.com)
*update
Political/public official chicanery (just a few):
1. Former (NC) congressman Frank Ballance who was convicted of fraudulently conspiring to exercise his influence over state appropriations for the personal benefit of his family is able to serve his remaining sentence at home. Federal prosecutors said that Ballance channeled $2.3 million dollars to a private foundation and the money was then diverted to the benefit of members of his family, including his son and mother. (Beaufort-observer)
2. A (CA) police chief, a mayor and a city councilman in his 40 years of public service has pleaded guilty to felony embezzlement for using his city-issued credit card to buy thousands of dollars in casino tokens and alcohol. His wife is in deeper trouble facing 23 felony counts, including grand theft and embezzlement, for allegedly getting more than $800,000 in loans under false pretenses from friends, neighbors and colleagues, including the mayor and city manager of Canyon Lake, and then paying them back with bad checks. In one instance she allegedly wrote a bad check to her husband. (L.A. Times)
3. The Roosevelt (NY) Public Library's former board president has been arrested on charges she stole $47,000 from the library to pay for airplane tickets, car repairs and groceries. In 2002, it was reported that the library's then-business manager allegedly misappropriated $15,000 of library funds. (OrlandoSentinel.com)
4. The former Standish (MI) city treasurer has pleaded no contest to neglect of duty in an embezzlement case. He made illegal transfers involving city tax accounts at the direction of the former City Manager, who faces charges of embezzlement and neglect of duty. (Chicago Tribune)
5. A contract worker for the U.S. Internal Revenue Service has been found guilty of embezzling nearly $500,000 in remittance checks (UPI.com)
6. A federal judge sentenced a former Buchanan County (MO) official who pleaded guilty to stealing money meant for 120 people, altering accounting records in her office to hide the embezzlements and submitting false reports to the Social Security Administration. She acknowledged taking the money between September 2003 and August 2006. (KansasCity.com)
7. The former executive director of the Bullskin Township/Connellsville Township Joint Sewerage Authority is in the Fayette County Prison after being charged by state police with siphoning more than $100,000 from the authority. (wpxi.com)
8. Former municipal court clerk and utility department clerk for the Town of Taylorsville, has been indicted on one count of embezzlement. She allegedly embezzled $6,041.63. (Meridian Star)
9. Belington (WV) Little League treasurer was convicted $13,000 (State Journal)
10. A parking meter repairman stole more than $170,000 from the City of Alexandria, VA… in coins. (kare11.com)
Charity Check Up:
She put over $200,000 in mostly grant money in an unauthorized account. She is currently in custody for violating the terms of her bail. She used some of the stolen $209,000 for personal use with the rest sitting in her account. She pled no contest to a previous charge of marijuana possession where she was smoking a marijuana cigarette during a court-warranted search. She is currently serving the last year of a four-year suspended sentence after pleading guilty in 2005 to a larceny charge for stealing $14,000 from an elementary school cancer fund, where she worked as a secretary.
Where was the judgment of the hiring authority in this case? Obviously a reference check never took place. Who was overseeing the bookkeepers work? Were there internal controls in place for check cashing/endorsement and depositing?
What do you think??? : gary.r.snyder@gmail.com
Don’t miss Gary Snyder’s latest contribution to the National Committee on Responsive Philanthropy website (ncrp.org)
Nonprofit Imperative gathers its information solely from public documents...some of which are directly quoted. Virtually all cited are in some phase criminal proceedings; some have not been charged, however.
Recent (cites) Comings and Goings:
• An Assault on Charities (ncrp.org)
• Nonprofit Hospitals Chase Debt (The Sun News)
• Is CEO Pay at Angel Food Ministries Excessive? (Atlanta Journal
Constitution)
• Five Rivers Outcome a Travesty (The Sun News)
• Where’s the Ire? (ncrp.org)
• A rags-to-riches life, with painful detours (Atlanta Journal Constitution)
• Five Rivers leaders guilty on six counts (The Sun News)
• Angel Food chief has led up-and-down life (Atlanta Journal Constitution)
• The Best Charitable Watchdog Going Kaput (ncrp.org)
• Five Rivers leaders guilty on six counts (The Sun News)
• Angel Food chief has led up-and-down life (Atlanta Journal Constitution)
• Our Students Deserve Better (ncrp.org)
• National Religious Broadcasters March 7,2009
• Siphoning Off Sacred Funds (ncrp.org)
• The Accountants and Regulators Role in the Current Collapse (ncrp.org)
• Veterans Whine as Executives Dine (ncrp.org)
• Government agency Monitoring: Indifference and Hush (ncrp.org)
• The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), Ethics World, Aspen Philanthropy Newsletter, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Newsweek.com, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, National Coalition of Homeless Newsletter, The Michigan Nonprofit Management Manual, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org,
• Nonprofits: On the Brink (iUniverse, 2006)
Our intent is to keep you informed.... You may send an e-mail that will remove you from our contact list and future mailings by emailing to nonprofitsonthebrink@gmail.com with the word "remove" in the subject line.
Email: gary.r.snyder@gmail.com
6584 Pleasant Lake Court, West Bloomfield, Michigan 48322, 248/324-3700
Website: www.garyrsnyder.com
Gary Snyder is the author of Nonprofits: On the Brink (iUniverse, February, 2006) and articles in numerous publications. The book can be bought at amazon.com, barnesandnoble.com, Barnes and Noble (store) and iUniverse.com (publisher).
© Gary R. Snyder, All Rights Reserved, 2009
What’s Included:
Skunk of the Month
Getting off was not enough
Nonprofit News-In Case You Missed It
Nonprofit Lobbying Obama Appointment Push; Serve America Bill Law; Foundations Hit Badly By Economy
Political/Official Chicanery
Congressman; Police Chief; Library Board President; IRS employee
Comings and Goings
What Do You Think?
***the single biggest inquiry we have is… ‘where do you find these misdeeds?’ To the degree possible, we will cite our sources so that you can follow up on these seemingly astonishing (and sordid) tragedies. Enjoy!
Skunk of the Month…
Skunk of the Month is the designation made by Nonprofit Imperative, the organization dedicated to eliminating waste, fraud, abuse and mismanagement in nonprofits and government. The Skunk of the Month award is given to charities and government officials who show blatant disregard for the interests and trust of contributors and taxpayers. This month’s example is:
What’s Wrong with this Picture?
The executive director of Genesis Family Center, a Fresno (CA) child-welfare agency, was charged with embezzling more than $500,000. She was sentenced to three years on probation and 300 days in a work-furlough program with electronic monitoring after she pleaded no contest to felony tax evasion and embezzlement. Even in the face of the conviction she stayed on as the agency’s chief executive officer. She ignored the judge’s order that forbade her from attending social events while on probation and in a work furlough program. Her picture was splashed in a magazine at social events and she was seen at luncheons. The judge had her arrested and he sentenced her to a year in jail. She finally resigned her position with the nonprofit. (fresnobee.com)
Nonprofit News-
In Case You Missed It:
1. As he sat on the board of directors and vice president of finance, he embezzled nearly $700,000 from the Columbian Retirement Home, a (CA) nonprofit retirement facility operated by the Knights of Columbus. (Mercury-Register)
2. A coalition of nonprofit groups has started a campaign to exempt lobbyists for charitable and social welfare organizations that have tax-free status from being considered for appointment in the Obama administration. (NYT)
3. President Obama signed landmark legislation that boosts national service, volunteerism, and innovative social projects. The Edward M. Kennedy Serve America Act is to expand the country’s national-service programs and provide money for entrepreneurial approaches to social problems. While the Serve America Act outlines federal programs that can now expand or start operating, Congress still has to allocate money to pay for them.
4. The Fidelity Charitable Gift Fund, Vanguard Charitable Endowment Program and the Schwab Charitable Fund are some of the growing donor funds. In part the growth is because private foundations are frustrated by increasing fees, tax requirements and general upkeep. Donor funds allow donors to take an immediate tax deduction after making contributions; donors can advise the fund on where the grants should go; the funds don't have to make distributions as often as a foundation would; donors can give many types of assets -- including cash, securities and even art -- depending on the fund's specific rules. (WSJ)
5. Maria Eitel, president of the Nike Foundation, is to be chief executive of the Corporation for National and Community Service, President Obama announced. The corporation manages the country’s national-service programs, which are set to grow significantly under the Serve America Act. (Chronicle of Philanthropy)
6. The former executive director of Children’s Alliance (CO) was arrested and accused of stealing $20,000 from the organization (DenverChannel.com)
7. The nation’s foundations lost nearly $150 billion in assets last year, or almost as much as they have given away over the last four years, a new Foundation Center study has found. Foundation giving for the year nonetheless held steady at an estimated $45.6 billion, falling by just 1 percent on an inflation-adjusted basis. Nearly two-thirds of foundations expect to reduce the number or the size of grants they award in 2009. (NYT)
8. The former pastor of a prominent North Shore Episcopal church stands accused of stealing $84,537 over the three years from his parish to pay for plastic surgery and Botox injections, as well as prescription drugs. (topix.com/religion)
9. The former accountant and office manager for Cornerstone Christian Fellowship has been sentenced to five years in prison for embezzling $495,000 from the Chandler (AZ) church. (Azcentral.com)
10. A former employee of the Lucile Packard Foundation for Children's Health pleaded no contest to embezzling more than $350,000 over an eight-year period from an endowment fund intended to help sick youths. (San Francisco Chronicle)
11. The deputy director of two NYC Head Start programs has pleaded guilty to stealing $600,000 from the program (usdoj.gov)
12. A director and initial incorporator for United Way of the Mountains, its successor, Kentucky Charities United, and Feed God’s Children, Inc. have been convicted of using money raised to pay for residential utilities, vehicle loan, vehicle insurance and other living expenses. (The Morehead News)
13. A Baltimore pastor who worked with developmentally disabled people as an operations manager for the Arc of Baltimore was charged with befriending a blind and disabled man in his care, then paying a hit man $50,000 in church funds for an execution so he could collect on a $200,000 life insurance policy. The pastor had policies in his name as beneficiary worth nearly $1 million combined. (Baltimore Sun)
We flagged these few examples of nonprofit mischief
1. St. Paul’s Memorial Episcopal Church (NY) $85,000
2. San Diego Hispanic Chamber of Commerce (CA) $70,000 (S.D.Union-Tribune)
3. Turning Pointe Therapeutic Riding $209,000 (Westerlysun.com)
4. The Starting Place (FL) $2 million (Sun-Sentinel.com)
5. California State Bar $675,000 (Law.com)
6. First Witness Child Abuse Resource Center (MN) $125,000 (wcco.com)
7. Fremont (MI) Area Community Foundation $20,000 (Muskegon Chronicle)
8. United Steelworkers of America (PA) $88,000 (Pitt. Post-Gazette)
9. Ranch Hope (NJ) $350,000 (nj.com)
10. First Witness Child Abuse Resource Center (MN) $125,000 (Duluth News Tribune)
11. Salem United Methodist Church $113,000 (FDLREPORTER.COM)
12. First Congregational Church (MI) $50,000 (Gaylord Herald-Times)
13. First Baptist Church on Highland Avenue (NC) $300,000 (journalnow.com)
14. Community Senior Serv (CA) $1 million (Huntington Beach Independent)
15. Southern Arizona Legal Aid $18,000 (azstarnet.com)
*update
Political/public official chicanery (just a few):
1. Former (NC) congressman Frank Ballance who was convicted of fraudulently conspiring to exercise his influence over state appropriations for the personal benefit of his family is able to serve his remaining sentence at home. Federal prosecutors said that Ballance channeled $2.3 million dollars to a private foundation and the money was then diverted to the benefit of members of his family, including his son and mother. (Beaufort-observer)
2. A (CA) police chief, a mayor and a city councilman in his 40 years of public service has pleaded guilty to felony embezzlement for using his city-issued credit card to buy thousands of dollars in casino tokens and alcohol. His wife is in deeper trouble facing 23 felony counts, including grand theft and embezzlement, for allegedly getting more than $800,000 in loans under false pretenses from friends, neighbors and colleagues, including the mayor and city manager of Canyon Lake, and then paying them back with bad checks. In one instance she allegedly wrote a bad check to her husband. (L.A. Times)
3. The Roosevelt (NY) Public Library's former board president has been arrested on charges she stole $47,000 from the library to pay for airplane tickets, car repairs and groceries. In 2002, it was reported that the library's then-business manager allegedly misappropriated $15,000 of library funds. (OrlandoSentinel.com)
4. The former Standish (MI) city treasurer has pleaded no contest to neglect of duty in an embezzlement case. He made illegal transfers involving city tax accounts at the direction of the former City Manager, who faces charges of embezzlement and neglect of duty. (Chicago Tribune)
5. A contract worker for the U.S. Internal Revenue Service has been found guilty of embezzling nearly $500,000 in remittance checks (UPI.com)
6. A federal judge sentenced a former Buchanan County (MO) official who pleaded guilty to stealing money meant for 120 people, altering accounting records in her office to hide the embezzlements and submitting false reports to the Social Security Administration. She acknowledged taking the money between September 2003 and August 2006. (KansasCity.com)
7. The former executive director of the Bullskin Township/Connellsville Township Joint Sewerage Authority is in the Fayette County Prison after being charged by state police with siphoning more than $100,000 from the authority. (wpxi.com)
8. Former municipal court clerk and utility department clerk for the Town of Taylorsville, has been indicted on one count of embezzlement. She allegedly embezzled $6,041.63. (Meridian Star)
9. Belington (WV) Little League treasurer was convicted $13,000 (State Journal)
10. A parking meter repairman stole more than $170,000 from the City of Alexandria, VA… in coins. (kare11.com)
Charity Check Up:
She put over $200,000 in mostly grant money in an unauthorized account. She is currently in custody for violating the terms of her bail. She used some of the stolen $209,000 for personal use with the rest sitting in her account. She pled no contest to a previous charge of marijuana possession where she was smoking a marijuana cigarette during a court-warranted search. She is currently serving the last year of a four-year suspended sentence after pleading guilty in 2005 to a larceny charge for stealing $14,000 from an elementary school cancer fund, where she worked as a secretary.
Where was the judgment of the hiring authority in this case? Obviously a reference check never took place. Who was overseeing the bookkeepers work? Were there internal controls in place for check cashing/endorsement and depositing?
What do you think??? : gary.r.snyder@gmail.com
Don’t miss Gary Snyder’s latest contribution to the National Committee on Responsive Philanthropy website (ncrp.org)
Nonprofit Imperative gathers its information solely from public documents...some of which are directly quoted. Virtually all cited are in some phase criminal proceedings; some have not been charged, however.
Recent (cites) Comings and Goings:
• An Assault on Charities (ncrp.org)
• Nonprofit Hospitals Chase Debt (The Sun News)
• Is CEO Pay at Angel Food Ministries Excessive? (Atlanta Journal
Constitution)
• Five Rivers Outcome a Travesty (The Sun News)
• Where’s the Ire? (ncrp.org)
• A rags-to-riches life, with painful detours (Atlanta Journal Constitution)
• Five Rivers leaders guilty on six counts (The Sun News)
• Angel Food chief has led up-and-down life (Atlanta Journal Constitution)
• The Best Charitable Watchdog Going Kaput (ncrp.org)
• Five Rivers leaders guilty on six counts (The Sun News)
• Angel Food chief has led up-and-down life (Atlanta Journal Constitution)
• Our Students Deserve Better (ncrp.org)
• National Religious Broadcasters March 7,2009
• Siphoning Off Sacred Funds (ncrp.org)
• The Accountants and Regulators Role in the Current Collapse (ncrp.org)
• Veterans Whine as Executives Dine (ncrp.org)
• Government agency Monitoring: Indifference and Hush (ncrp.org)
• The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), Ethics World, Aspen Philanthropy Newsletter, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Newsweek.com, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, National Coalition of Homeless Newsletter, The Michigan Nonprofit Management Manual, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org,
• Nonprofits: On the Brink (iUniverse, 2006)
Our intent is to keep you informed.... You may send an e-mail that will remove you from our contact list and future mailings by emailing to nonprofitsonthebrink@gmail.com with the word "remove" in the subject line.
Email: gary.r.snyder@gmail.com
6584 Pleasant Lake Court, West Bloomfield, Michigan 48322, 248/324-3700
Website: www.garyrsnyder.com
Gary Snyder is the author of Nonprofits: On the Brink (iUniverse, February, 2006) and articles in numerous publications. The book can be bought at amazon.com, barnesandnoble.com, Barnes and Noble (store) and iUniverse.com (publisher).
© Gary R. Snyder, All Rights Reserved, 2009
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