How does a nonprofit stay within its original mission but remain relevant? Petersen Automotive Museum is trying to do just that. It is liquidating nearly 1/3 of its 400 classic cars in order to finance a major reconfiguration of the organization, including a greater emphasis on motorcycles and French art deco vehicles. According to a …
Posts Categorized: Accountability
Government Funding to Require Quantifiable Results?
Here’s a novel idea: When you pay for something, expect something in return. Harriet McDonald, Executive Vice President of the Doe Fund in New York, is challenging governments to do just that. In her Chronicle of Philanthropy article, McDonald argues that governments currently pay nonprofits and other companies to provide social services without ensuring that …
Save Your Co-Mingling for Happy Hour
Thanks to Big Brothers Big Sisters, we have a great example of how not to spend government money. A government audit recently concluded that the organization can’t properly account for any of the $19.4 million of Justice Department funding it received. These tax dollars were provided to the organization as restricted funds, in other words, …
NY AG Spearheads Heightened Political Disclosure Requirements
Last year, New York Attorney General Eric Schneiderman unveiled a plan to “revitalize” New York’s nonprofit sector. We told you about it here. This year, he has a new focus – 501(c)(4) “social welfare” organizations. This isn’t too surprising given the press these organizations have received lately, but the high level of transparency the AG’s …
America's Most Wanted: Charities Edition
The Tampa Bay Times recently ran a series on what it and The Center for Investigative Reporting describe as the nation’s 50 worst charities. These include nonprofits whose fundraisers earn up to 98% of every dollar earned and whose insiders make millions of dollars per year. The articles also admonish charity regulators for not doing …
Hershey Trust Settlement Shocks Many, Has a Lesson for All
Two years ago, the Pennsylvania Attorney General began an investigation into the $9 billion Hershey Trust, which operates a prominent residential facility for disadvantaged youth. The investigation started after the trust made multi-million dollar purchases of a golf course and an adjacent market. Allegations of inappropriate expenditures followed, claiming that board members received excessive compensation …