Archive for the ‘Current Affairs’ Category

Really bad advice about year-end giving, and some really obvious responses

December 31, 2012

The Nonprofiteer just received an e-mail entitled “Five Things You Need to Know About Year-end Giving” which was distinguished primarily by the utter wrongness of each and every one of the items identified.  Names have been omitted to protect the guilty, but commentary appears in bold.

1. Background Check….[B]efore you reach for your wallet, take the time to look into how charities spend their money. It is important know how much of your money actually reaches those in need. A rule of thumb is around 7% to 9% for administrative costs, though some online outlets with low overhead structures are able dip below that.  First clue that this is wrong: the imaginary precision of “7% to 9%.”  Second clue: use of the term “overhead” without definition.  “Overhead” includes such profligate expenditures as electricity and health care for employees.  The last thing we need is for donors to make it a condition of their gifts that nonprofit employees live in poverty. Rather than spend time trying to divine a charity’s wastefulness, donors should work on ascertaining its effectiveness.

2. Beware of dogs….Check the IRS database of more than a million charitable organizations to make sure the one you’re giving to is legit. The IRS database will not tell you which organizations are legitimate, only which organizations have filed appropriate paperwork.  Yes, of course, don’t give your credit-card number to any random jerk who calls; but more important, don’t give money to any agency about which you know nothing but a name and a 501(c)(3) designation.

3. Target the Need. If you see a specific need you want to affect, specify where your donation should go by adding a note, writing an email or by designating it on your check…. Money is fungible: whatever you give to a nonprofit inevitably supports its entire range of purposes and activities.  All that happens if you “designate” a spot for your money is that the recipient nonprofit shifts preexisting funds to another program.  If you don’t trust the charity to use your money wisely, don’t give it money; if you do, get out of its way and let professionals do their jobs.  The Red Cross responds to all sorts of disasters; if it gets more money than it needs for the victims of Hurricane Sandy, it will use that money for the victims of Hurricane Tom, or the house fire around the corner from you.  If you object to that, you’re more concerned with being trendy than with helping, so don’t bother to support the Red Cross.

4. Get More Than a Good Feeling….Be sure to get receipts for large donations above $250. Many non-profits are now accepting direct deposits and can accept funds with the click of a button.  Be aware of the tax deductibility of your contribution as not all non-profits can give you a tax-deductible receipt.  It’s true that donations to the NFL or the American Bar Association are not tax-deductible though  those agencies are nonprofit; but gifts to virtually anything you think of as a charity ARE tax-deductible.  Ask about it if you’re concerned but this is the least of your worries.

5. Simplify and Centralize Your Giving. Simplify your giving by using a one-stop-shop that makes finding and giving to charities easier. [Our company’s] users can give to any 501(c)(3) recognized by the IRS. [Our company] keeps a record of donations so you don’t have to and provides a year-end receipt for tax purposes.  Again, don’t be trolling around looking for charities in somebody’s data-base; give money to agencies in your community whose work you know, or to organizations active in the field (social services, the environment, the arts) with which you’re concerned.  It’s no easier to find the names of random charities in some commercial Website’s data-base than directly from the IRS (or from the phone book, for that matter), and if you’re worried about having a receipt you could always just write a check, which is perfectly adequate documentation for the Revenue agents.  Don’t be dazzled by announcements of great on-line services which can direct you to charity: there’s nothing difficult about making your own gift, and “research” in this field means nothing more than familiarity with an agency’s work. What’s being ballyhooed here is the equivalent of an offer to chew your food for you: sure, you could hire someone to do it, but that would eliminate not only all the fun but all the nourishment.

Don’t feel desperate about giving away your money before December 31: there will be plenty of need (and plenty of tax-deductibility) in the new year.  Take the time you need to find out about the mission, services and effectiveness of the organizations you want to support.  There’s no charitable fiscal cliff, so don’t bother searching for a charitable bungee cord; your personal sense of balance will be more than sufficient to support you.

Dear Nonprofiteer, Whose money is too filthy to take, and why?

April 6, 2012

Dear Nonprofiteer:

I’d be interested in your take on the Tucker Max/Planned Parenthood issue. That whole issue, which I’m sure you’ve touched on before, of NPOs making tough decisions about accepting donations is one that constantly comes up.

Signed, Hoping to Keep Clean Hands and Full Coffers

Dear Hoping:

So Tucker Max (a blogger the Nonprofiteer had never heard of until this letter) tries to give half a million dollars to Planned Parenthood, which has just lost funding from the Komen Foundation and is at risk of losing Federal funding, and PP turns the money down.

Under ordinary circumstances the Nonprofiteer would say, “WTF? So he’s a sexist piece of dog excrement! So he’s trying to whitewash his reputation! Why shouldn’t we help impoverish sexists by accepting their contributions? Why shouldn’t they pay restitution for their crimes and sins?”

But these aren’t ordinary circumstances, because the donor describes himself as follows:

My name is Tucker Max, and I am an asshole. I get excessively drunk at inappropriate times, disregard social norms, indulge every whim, ignore the consequences of my actions . . . sleep with more women than is safe or reasonable, and just generally act like a raging dickhead.

Years of public education about what Planned Parenthood actually does would go right down the drain if it permitted itself to be publicly tied to an advocate of reckless, consequence-free sex. The Republicans have clearly hit a responsive chord when they strive to outdo each other in demonizing PP, and that chord is that the very existence of Planned Parenthood represents an utter breakdown of sexual morals. Never mind that this isn’t true: Tucker Max actually DOES represent an utter breakdown of sexual morals, and Planned Parenthood can’t afford to be associated with him.

In general, though, the Nonprofiteer remains in favor of taking money from bad people: it’s not possible to eradicate them, and they ought to be good for something. If she still shudders (as she does) at entering the David H. Koch Theatre at Lincoln Center, she consoles herself that it represents millions of dollars the self-same Koch no longer has available to give to the Tea Party.

It’s fine if donating makes an evil donor look good. Just be sure that accepting doesn’t make you look bad.

Dear Nonprofiteer, Why do nonprofits ask for the moon?

March 23, 2012

Dear Nonprofiteer,

I am a nonprofit professional “in transition” otherwise known as job hunting.  In the course of my job search I have come across two  job postings that have left me incredulous and I was curious as to your opinion.
  1. An executive director position listed for $32K/year. Granted this was described as a half time gig but is there any such thing as a half time ED? Maybe it means you can take weekends off. The job description/requirements were just as detailed as any full time description.
  2. A director of development position for $20-25K.   Again this is listed as 3/4 time. It comes with a very detailed laundry list of expectations but again is this really a job that can be done well with less than full attention?

Something seems really off here. My gut (and review of their 990’s) tells me that these are marginal organizations to be avoided.  Do I seem unrealistically fussy in today’s job market?

Signed, Born At Night But Not Last Night

Dear Born:

You are not unrealistically fussy, especially when “today’s job market” in the nonprofit sector seems to include a number of jobs that are going begging for want of the right candidate.  And you’ve put your finger on why that should be the case: because the job descriptions (and presumably the jobs that accompany them) are a pile of unrealistic expectations held together with the glue of employer entitlement.  This glue is particularly thick in the nonprofit sector, where hiring managers presume that their poverty entitles them to your services for less than they’re worth.  But, as the workplace sign has it, Bad planning on your part doesn’t necessarily constitute an emergency on my part.

And you’ve identified a favorite gambit of those self-entitled managers/agencies: pretending that a full-time job can be done part-time because they know the proposed salary is an insult.  (For what it’s worth, the Nonprofiteer was paid $25K as an Executive Director of a small organization in 1987; if salaries haven’t increased 20% in the past 25 years, they should have!)  As you say, it is virtually impossible for anyone to be a part-time Executive Director, and the length of the list of responsibilities demonstrates that the agency knows this as well as you do.  You could do it simply by specifying the number of hours you’re prepared to work (e.g., 30), but sure as death and taxes would come a grant application deadline which must be met, and your self-imposed part-time-ness (part-time-itude?) would go out the window.

The Nonprofiteer just had occasion to help a client work on a job description for a part-time professional position. The original description had two problems.  First, it specified more than 40 hours’ worth of work for a 20-hour position.  Second, its qualifications included both items that couldn’t be expected from someone willing to work part-time for $20 an hour (such as a roster of contacts in high-profile media) and items that shouldn’t be expected from a professional (such as facility with word processing programs).  If you’re hiring a professional, don’t ask for secretarial skills.  And if you’re hiring a professional, be reasonable about how much professional service you can get for $20 an hour and/or 20 hours per week.

By contrast, another client has recently shifted its budgeting from “How much can we spend based on how much we raised last year?” to “How much do we need to raise to support what we need to do?”  Moreover, one of the things the agency realized it needed to do was steadily increase the salary of the Executive Director so that when the current martyr departs, the group will be in a position to offer a living wage to the next group of candidates.

(Consider, by the way, that the people offering such meager salaries are Board members who probably chafe at being asked to give $1000 a year.  They don’t hesitate, though, to ask you to forego $25,000 or so of income.  This is why the Nonprofiteer doesn’t advocate asking staff members to donate to their agencies: they’re already doing so at a level no other donor is likely to match.)

(Consider also that the sums offered make clear that the agencies are expecting women, and only women, to apply for these jobs.  No one would dare offer such a pittance to a man.  The nonprofit sector operated for years on the unwaged labor of women, but there’s no reason we have to continue to provide this subsidy.)

Thus, your incredulity at the nerve of some agencies is perfectly well-founded.  That won’t help you get a job with them: but hey, why would you want to?  You’re a star, and you’ll find a place that won’t also ask for the moon.*

————–

“Oh Jerry, don’t let’s ask for the moon. We have the stars.”–Bette Davis to Paul Henreid, Now Voyager

Eternal vigilance is the price of—birth control?

February 10, 2012

The lesson from this past week’s Komen/Planned Parenthood contretemps is that when women make our voices heard in defense of the health care we need, we win the argument.

So let’s not hesitate to make just as much noise in response to the hysteria now being whipped up about the Affordable Care Act’s requirement that all health care providers offer free contraception.  Republican rhetoric suggests that this is the equivalent of requiring churches to distribute RU-486 instead of communion wafers; but that’s complete nonsense. Actual religious organizations are exempt. What’s not exempt is the network of hospitals and schools run by those religious organizations.

Hospitals and universities affiliated with religious groups aren’t exempt from the Civil Rights Act. As a result, they’re required to provide health care to women as well as men. Birth control is an essential part of health care for women—a fact you’d think most people would concede, as it’s a way of preventing the abortions they’re so horrified by.

The largest Catholic university in the country already provides birth control as part of its health plan. 28 states already require hospitals and universities to provide this minimum standard of care. If your employer dictates your health plan, and your health plan dictates where you get care—as most plans do—you may be sent to a Catholic hospital regardless of your own beliefs.  Why isn’t it a violation of your religious freedom to be denied the care you need based on someone else’s dogma?

This is just a sketch of the arguments we can and must make, and make loudly, before the noise-makers on the other side take away the health care we’re entitled to and count on.

Write the President, write your Congressperson, write your Senator, write the Secretary of Health and Human Services, write the editor, sign every petition that shows up in your mailbox.   Tell them: don’t compromise our health.

S.O.S.: Save Our Services.  If we don’t do it, no one else will.

More on the Buffett challenge

February 3, 2012

When Warren Buffett challenged Mitch McConnell to help him pay down the deficit, McConnell paid him no never-mind—but a teenage girl in Northbrook, IL heard and responded, sending $300 to the Feds and asking Buffett to do the same.  This is an adorable story, and the video makes it more adorable still.

But let’s not let this young woman’s sense of civic duty and remarkable act of civic participation distract from the real point of the Buffett challenge, which is that without increased taxation of the wealthy, jerks like Mitch McConnell will free-ride on public-spirited souls like Katie Murphy.

Give the people at Komen a piece of your mind . . .

February 2, 2012

as they seem to have lost their own.  Komen’s decision to de-fund Planned Parenthood at the behest of an anti-choice Board member reminds us how ready the right wing is to sacrifice women’s health for political gain.

There’s a petition to sign if you want to want to make your voice heard.  If you’ve been a Komen supporter and you now de-fund the organization, your voice will be heard even louder.

The Nonprofiteer has been wondering what to write about . . .

February 1, 2012

but she’d really have preferred not to have this as an inspiration.  There is no excuse for the decision of Susan G. Komen for the Cure, until now a respected source of information and funding in the fight against breast cancer, to defund Planned Parenthood‘s program of providing breast exams to poor women.

In fact, the decision doesn’t even make sense–unless you consider that a recent addition to the Board of Komen is an anti-choice ex-politician from Georgia.  As another commentator has wisely noted, Planned Parenthood will survive this latest injury–the Nonprofiteer’s determination to support the agency has just been redoubled, and probably her gift will be, too–but Komen may not.

Please join the Nonprofiteer in notifying Komen of your distress at its decision to let irrelevant politics endanger the lives and health of poor women, and of your decision to redirect to Planned Parenthood any support you may have been giving to Komen.

The billionaire vs. the free riders

January 13, 2012

The Nonprofiteer’s readers might enjoy this account of a pissing match between Warren Buffett and Mitch McConnell.  The Senator from Kentucky has been urging the Sage of Omaha to make voluntary contributions to the Treasury if he felt he was undertaxed.  Buffett has now responded that he’ll match any such contributions made by Republican Senators.

This dialogue makes in a different form Milton Friedman’s point as recounted by the Nonprofiteer yesterday.  Voluntary contributions to reduce poverty (or do any of the other things we rely on the government to do) are insufficient, because everyone would be willing to pay his/her share only if s/he could be sure that everyone else would be willing to pay his/her share.  Otherwise, no dice.

Doubtless McConnell will ignore Buffett’s challenge and continue his nonsensical bluster about Buffett’s freedom to pay extra if he feels “guilty” about his low tax rate.  But the point isn’t, of course, how Buffett feels, or even what he does—it’s what everyone else does.  And if McConnell and his buddies don’t donate to the Treasury, then they are poster children for the free-rider problem—thereby proving Buffett right: philanthropy is not sufficient and taxation is necessary.

H/T the indispensable Rick Cohen at The Nonprofit Quarterly.

What should (but won’t) be the last word on the charitable tax deduction

December 20, 2011

The most powerful argument Jack Shakely makes in his LA Times op-ed piece opposing the charitable tax deduction is that it’s a poor trade-off.  The retired foundation executive points out that charities have permitted themselves to be shorn of their ability to influence policy and politics in return for a mess of pottage.  Of course the restrictions on charitable participation in the public arena aren’t as draconian as nonprofit executives (and especially Boards) think they are—but the point is that nonprofits understand themselves to be constrained, and rather than bothering with the details remain quiescent politically.

As strong a proponent as the Nonprofiteer is of the pursuit of individual gifts, in the real world virtually every social service agency needs seriously more government money if it’s going to make any dent in the social problems it faces.  The more social service agencies feel free to advocate for this particular budget bill or that particular provision in a piece of legislation—both prohibited by the current tax-code provisions—the more likely it is that those bills and provisions will pass, which would serve way more of the agencies’ clients than the most blue-sky estimates of their potential for growth in individual giving.

And for someone with foundation cred to say this!  All hail Jack Shakely.

h/t The Nonprofit Quarterly Newswire.

No good deed goes unpunished

November 22, 2011

Now here’s something that breaks the Nonprofiteer’s heart: the MacArthur Foundation is making grants to a dozen libraries and museums nationwide to establish youth computer learning centers modeled on YOUMedia, the Chicago Public Library’s innovative youth learning project.

Why does such good news evoke such profound sorrow?  Because the Nonprofiteer can remember when the notion was that the philanthropic sector would serve as a laboratory, trying out new approaches to solving social problems and then passing along the ones that worked to be funded by the government.  What we have here, however, is a model already vetted in the public sector whose future sustenance apparently will have to come from private charity.

This role-reversal is particularly galling here in Chicago, where the reward for the library’s pioneering work has been a substantial chop in the city’s library budget.

It’s hard to read a computer screen, or learn anything, when the world is upside-down.


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