Nonprofit Category Archive

Charities lose funds to for-profit fundraisers

July 16th, 2008

Los Angeles Times reporters Charles Piller and Doug Smith found that for-profit fundraisers in California are collecting significant amounts, while the nonprofits they claim to support see little of the money. “In more than 5,800 campaigns on behalf of charities that were registered with the state attorney general from 1997 to 2006, the fundraisers reported taking in $2.6 billion. They kept nearly $1.4 billion — about 54 cents of every dollar raised.”

Nonprofits work to wield influence on 2008 elections

June 26th, 2008

In a joint effort by NPR and the Center for Investigative Reporting, Peter Overby and Will Evans report on the efforts of nonprofits to influence the 2008 elections. “One network of liberal activist groups, Progress Now and its eight affiliates, is trying to shape the debate with a streamlined operation of small staff, low budgets and the Internet.” A graphic by CIR charts the influence and funding behind these independent networks.

Charity contiues shady practices in California

February 20th, 2008

Ron Campbell of the Orange County Register investigated the the shady practices of the American Deputy Sheriff’s Association, one of America’s most ineffective “charities.” In 2004, after being banned from seven states, an Ohio judge seized the charity and appointed a new receiver to oversee operations. However, the new management did not eradicate the problems. For every dollar raised by the organization, only a half cent actually goes to charitable causes. Despite the organization’s large presence in California, California officials say any regulation must come from the Ohio Attorney General’s office.

Charities enjoy tax-free profits from “unrelated business income”

January 25th, 2008

An investigation by Grant Williams and Peter Panepento of The Chronicle of Philanthropy found that about half of the nation’s largest charities pay no taxes, even though they generate millions in unrelated business income. Some organizations are claiming a loss on their income — meaning that they are losing money on side ventures. A change in federal tax law now makes it possible for the public to see the IRS Form 990-T, filed by charities that generate money from activities that do not relate to their charitable mission. Williams and Panapento spent the past several months requesting and gathering these documents.

ACT board positions prove profitable

December 6th, 2007

Lee Rood of The Des Moines Register finds that testing fees paid to the non-profit ACT Inc. of Iowa City are lining the pockets of its board of directors. “ACT, the college-entrance exam developer that has grown increasingly successful in taking on longtime rival SAT, is paying its influential board of directors about $520,000 annually — an amount that experts say surpasses the compensation of about 98 percent of nonprofit boards across the country.” Recent board members included “former U.S. secretaries of education, heads of some of the country’s largest universities and school districts, a former governor and national education policymakers.” The Iowa Attorney General’s Office has the power to revoke a company’s nonprofit status and is examining the situation.

Some Boy Scouts leaders earn six-figure salaries

November 15th, 2007

Lee Davidson of the (Salt Lake City) Deseret Morning News analyzed nearly 300 tax returns, known as IRS Form 990, filed by tax-exempt organization and found that Boy Scouts both in Utah and across the U.S. tend to pay their top executives significantly more than do other nonprofit groups that serve youths. It’s a topic of particular interest in Utah, which is home to some of the largest Boy Scouts councils in the country in part because The Church of Jesus Christ of Latter-day Saints makes scouting part of its youth activity program.

Neglect plagues property holdings of ex-NBA star

October 31st, 2007

An investigation by The Sacramento Bee’s Terri Handy and Phillip Reese shows that former NBA star Kevin Johnson is responsible for a slew of neglected properties in the downtrodden area of Oak Park where his investments have been widely publicized and praised. “Within a two-mile radius, a Bee investigation found, half of the 37 parcels owned by Johnson or companies and organizations he founded have been cited by the city in the past decade, some multiple times. The 73 violations at those Oak Park properties resulted in 42 fines or fees totaling at least $32,080.

Anti-poverty agency funded private jet trips to MTV awards

October 5th, 2007

In another installment of The Miami Herald’s Poverty Peddlers series, reporters Scott Hiaasen and Jason Grotto reveal that the Miami-Dade Empowerment Trust, the county’s largest anti-poverty agency, squandered millions of dollars on lavish parties, bad loans and insider deals. The reporters showed that public money for the poor went to pay for celebrities like Sean “Diddy” Combs and Shakira to fly to Miami for MTV award shows; the flights used a charter company run by a board member.

Youth programs vulnerable to internal theft

September 5th, 2007

San Diego Union-Tribune reporters Leonel Sanchez and Brent Schrotenboer looked into employees stealing money from non-profit organizations taking a cue from the case of Pamela Sue Adams, who was sentenced to a year in jail for embezzling as much as $131,000 from the non-profit Friends of Jamul-Dulzura Schools. The newspaper asked for information on similar cases in 42 school districts, with six reporting back that they had investigated missing funds, as well as problems in four youth sports groups.

Contributions call school board president’s ethics into question

August 3rd, 2007

James Pressley, school board president in Pleasantville, N.J., sought money from community businesses who were seeking contracts from the school board. John Froojian, of the Press of Atlantic City, reports that money was solicited for the James A. Pressley Scholarship and Community Youth Build Foundation, although neither the IRS nor the New Jersey Consumer Affairs Division have record of the registration of such a charity. Of nine businesses approached by Pressley, eight had no-bid contract proposals before the school board.