Posts Categorized: News

Can we be Facebook Friends?

You’d better think twice before asking that question of an employee if you’re a California employer, manager, or board member. Using social media avenues to connect with your nonprofit’s employees may seem like a good idea, but it can open up a Pandora’s Box of troubles for you and for the organization. For one, it’s …

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The DOMA Decision Has Immediate Impact for Nonprofits

June 27, 2013 Posted by Arthur Rieman in Conflict of Interest, IRS, News

Does the Supreme Court decision overturning the key provisions of the Defense of Marriage Act (“DOMA”) have any impact on nonprofits? It does indeed. In his opinion for the Court, Justice Kennedy eloquently writes that the rights and benefits of marriage must be afforded to gay and lesbian couples who are legally married. He also writes …

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Save Your Co-Mingling for Happy Hour

June 26, 2013 Posted by Jessica Shofler in Accountability, Donations, News

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, …

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Do You Forgive the IRS Yet?

June 25, 2013 Posted by Jessica Shofler in IRS, News

In response to the 501(c)(4) “targeting” issue, the IRS has issued a report concluding that there is no evidence of intentional wrongdoing but that, among other steps taken to ensure that the situation doesn’t continue, the senior IRS staff members responsible for the determinations process have been replaced. Ostensibly to right its wrong, the IRS …

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How do You Measure a Nonprofit's Effectiveness?

Earlier this week, we blogged about a letter from three prominent organizations strongly refuting the use of overhead costs to measure a nonprofit’s effectiveness. But, in seemingly direct contradiction to this letter, a new Oregon law requires that nonprofits spend no less than 30% of their total annual expenses on charitable programs. Worst of all, …

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Nonprofit Grading System Based on Overhead Cost a Thing of the Past?

June 17, 2013 Posted by Jessica Shofler in Fundraising, News

Is looking at a nonprofit’s overhead costs a good measure of its effectiveness? The leaders of three leading sources of nonprofit information – GuideStar, Charity Navigator, and BBB Wise Giving Alliance – recently wrote an open letter answering this question with a resounding NO. The letter reasons that focusing solely or predominantly on overhead(the expenses …

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