NonProfit Pro

Philanthropist, 98, Sues Chapman for the Return of His $12 Million Gift
February 10, 2015

A 98-year-old man says Chapman University took advantage of his age to get him him to donate $12 million for an engineering building — and he is suing to get his money back. Corona del Mar philanthropists James and Catherine Emmi have filed a lawsuit in Orange County Superior Court charging that Chapman University President James Doti put undue pressure on James Emmi to sign an irrevocable contract without the consent of his wife.

Nonprofit Investigated by USAID Purges Senior Leadership
February 10, 2015

Two weeks after being suspended from government work, the leading development nonprofit for the United States in Iraq and Afghanistan has purged numerous longtime senior executives amid a widening investigation of allegations of “serious” financial misconduct. International Relief and Development, headquartered in Arlington, Va., allegedly used taxpayer money for football season tickets, personal travel and meals, and alcohol at company receptions and retreats, according to current and former government and nonprofit officials.

Facebook Organic Reach Decline Called 'Catastrophic' for Nonprofits as News Feed Visibility Vanishes
February 9, 2015

Recent changes to Facebook’s news feed algorithm have brought about a significant decline in “organic reach,” the number of people who see a post that hasn’t been boosted by paid advertising. Two years ago, organic reach for many posts was at about 16 percent, but over the last several months it’s been throttled to 2 percent or even less. Nonprofit organizations are getting caught in the algorithmic filter, and some say the change has crippled their ability to share critical information and maintain the online communities their memberships rely on.

Former Janitor Dies, Leaves Behind $6 Million in Surprise Donations
February 9, 2015

A man who sometimes held his coat together with safety pins and had a longtime habit of foraging for firewood also had a knack for picking stocks — a talent that became public after his death when he bequeathed $6 million to his local library and hospital. The bequest of $4.8 million by Ronald Read, a former gas station employee and janitor, to the Brattleboro Memorial Hospital and $1.2 million to the town's Brooks Memorial Library were the largest each institution has ever received. Read also made a number of smaller bequests.

Assembly Speaker Carl Heastie Aided Nonprofit That Stopped Filing Taxes Before Going Bankrupt
February 9, 2015

Assembly Speaker Carl Heastie steered more than $600,000 to a Bronx nonprofit that had no official board, filed no tax forms for years while receiving taxpayer funding and ultimately went bankrupt. The Bronx Business Alliance stopped filing tax forms after the 2008-09 tax year, reporting a $34,000 deficit.

Nevertheless, Heastie kept sponsoring funding for the group. His final grant was for $115,000 in 2009-2010, and other politicians directed hundreds of thousands of dollars more in 2010-2011.

Finding the 'Right' Way to Dispose of Ill-Gotten Gains by Donating to Charity
February 9, 2015

Several years ago, a large European company asked Thomas M. DiBiagio to run an internal audit on its South African operations. The company suspected that something might be amiss. And it was right. In the course of the audit, he discovered about $12 million that might best be described as ill-gotten gains. DiBiagio, now a partner at the law firm Baker Botts, reported what he found to the company’s management and suggested something novel: Since the money had been earned “from aggressive business practices” the company should give it to charity.

Fundraising Events: Are They Worth It?
February 9, 2015

If you are the head of a nonprofit, we urge you to move away from using events to raise money. If you're an MGO who continually gets "asked" to help with an event, do everything you can to convince your boss it's a bad idea. And if you are a development director of a small nonprofit, you have to realize the best way to raise major gifts is to build relationships with donors and ask them directly to support your mission.