Monday, October 31, 2011

Boards Are Lacking in Meeting Executive’s Needs

By Gary Snyder


With a seventy-five percent turn over of executives of charities predicted, recruiting will be fast and furious in the next couple of years. Just as boards will be interviewing executives, executives will be interviewing boards.

According to a report by the Urban Institute, governing bodies had better shape up if they want to bring on the top tier candidates. Many executives are concerned about the board’s failure to become active in carrying out its obligations.

Here are some steps that boards can immediately take to become more engaged:

• Develop a procedure for the board to regularly monitor its own performance. Identify and correct weaknesses and train board members to strengthen the board. Strong boards make strong organizations; a selling point in recruiting.
• Develop criteria that can be used in the recruiting new board members that will make the board more engaged with a skill set and backgrounds that make the board more influential. Boards partnering with an executive show the ground rules that the exec. will have to live by.
• Assist the executive in the recruitment of new board members. Teamwork engenders a joint responsibility.
• Share authority with the executive by helping to set the boards agenda and giving the board in involvement. Bring both board and staff perspectives to the boardroom.
• Keep the decision-making at the board level and not making the executive a voting member. The demarcation of responsibilities is easier without a board vote by the executive.
• With the increased public scrutiny of agencies, board members should be active in the submission of their IRS Form 990, public relations and policy making.
• Board members should share in the assessment of determining if it is accomplishing its mission. Remember the ultimate authority is the board, not the executive.
• A partnership should be developed between the board and executive in setting fundraising goals and raising funds. It will lift a major burden from the shoulders of the executive, giving s/him some additional time to complete operational responsibilities.

These small but very important board responsibilities will lead to a collaborative relationship, avoiding the discontent that is seemingly so pervasive. It will ensure a climate that will be more to the liking of the new executive.






Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)

Wednesday, October 5, 2011

Pay a Charity to Play in Chicago?

by Gary Snyder

Fine print of financing agreements negotiated during Mayor Richard Daley’s tenure for projects in special taxing districts required grant recipients to donate to particular charities, including After School Matters, which was founded and chaired by Maggie Daley, the Mayor's wife.

Sixteen out of 27 included contributions to After School Matters or an affiliate, accounting for about a quarter of $3.7-million in donations and making it by far the biggest charity recipient. This represents more than $915,000 from companies subsidized by much-criticized special taxing districts.

Since 1995, the city has made payments to After School Matters of more than $54 million, according to the city’s web site. In its recent article the Chicago Tribune noted that just days before Rahm Emanuel took over the Mayor's office, the city awarded After School Matters a one-year, nearly $6.5 million contract to oversee summer-jobs and after-school programs.

The program also has been the recipient of millions in funding from Chicago Public Schools and state government. Just days after Daley leaving office, Raymond Orozco, who was Richard Daley’s chief of staff at the end of his 22-year tenure, was named CEO of After School Matters. Katherine LaMantia, who was Daley’s acting cultural affairs commissioner at the end of his term, was hired as the group’s chief financial officer, a position that previously did not exist.









Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)

Tuesday, October 4, 2011

Still More on Greg Mortenson

by Gary Snyder

NPR brings us an update where millions of people bought Greg Mortenson's book Three Cups of Tea about his work building schools for girls in Pakistan and Afghanistan. Many gave money to his charity. Then, earlier this year, a 60 Minutes investigation charged that Mortenson fabricated key parts of his story — and used funds from the charity for himself.

A group of readers is suing him for fraud. They were saying that because parts of the book are false, that people who bought the book basically did so under false pretenses. What they were reading is not what actually happened, therefore they should be reimbursed the money they paid for the books.

The state of Montana attorney general's office has also launched a civil investigation into this. Greg Mortenson has been silent on this. He did not come to a court hearing two weeks ago in Missoula. His schedule on his website has been unavailable for appearances. The reason may be that he has been recovering from heart surgery he had in June.






Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)

Monday, October 3, 2011

As Charity Giving Drops, Fraud on the Rise

By Gary Snyder

The Giving USA Foundation says, "Our revised estimates show that 2008 and 2009 saw the largest drops in giving in more than 40 years as a result of the Great Recession, exceeding previous recession's impact on giving." Giving for the last years has been flat, at best. But charity fraud continues to rise. Former Texas Inspector General Bart Bevers says that charities across the country lose an estimated $51 billion up from $41 billion just a couple of years ago. The rate of fraud has gone from 13% to about 17%. That is not the only a startling statistic: fraud occurs at almost twice the rate than in the private sector.

On the very subject of charity fraud, this article has shaken up many that thought that the charitable sector was pristine.




Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)