Saving Children: Helping or Exploiting in Haiti

By now, everyone has heard of the church group that was stopped and arrested by Haitian authorities and charged with abducting Haitian children. It seems this mission may not have been quite so humanitarian after all. Continue reading »

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The Rooney Rule: NFL’s Race Problem

It is embarrassing for the nonprofit sector to remain silent about the NFL’s sham practice of going through the motions of recruiting and interviewing people of color to be head coaches when it is simply a pretense—compliance with the “Rooney Rule” that requires teams to interview at least one person of color before they can then proceed to hire the white man they intended to hire all along.  This is an issue for nonprofits–because behind the entertainment of the games, the National Football League is a big time, very wealthy, high powered tax exempt organization.

Continue reading »

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Stimulating Responses to the Foreclosure Crisis: The Second Round of HUD’s Neighborhood Stabilization Program Grants

HUD’s announcement on January 14th of the second round of Neighborhood Stabilization Program grants (from the stimulus program) for the acquisition and rehabilitation of foreclosed residential properties is strong evidence of the importance of nonprofits in the nation’s economic recovery. In some cases, regional or national nonprofits got large sums for multi-city or multi-state work, sometimes in addition to their local affiliates getting funding through state or city grants: for example, $137.6 million to Habitat for Humanity International for work in five states and $137 million to Chicanos por la Causa for work in eight states. Among the 60 grant recipients are consortia in which nonprofits have significant design and implementation leadership responsibilities in very creative initiatives: Continue reading »

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The Ghost of Christmas Future: State Budget Deficits in 2010

State budgets were a mess in FY2009, a debacle in FY2010, and look like impending catastrophes in FY2011.  We’ve been visited by the Ghost of Christmas Present this past holiday season with rampaging budget deficits and corresponding cuts in critical social safety net programs and services.  Knocking at the door is the Ghost of Christmas Future with warnings of continuing program rescissions and terminations unless governments and voters, like a dumbfounded Scrooge, come to their senses and radically change their revenue-raising and budget-allocating ways. Continue reading »

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Real Visitors to the White House from the Nonprofit Sector

On December 30th, the White House released additional names of its visitors through the end of September.  Some 26,000 visits are in the latest spreadsheets made available to the public.

Here are the problems:  According to the Sunlight Foundation, approximately 100,000 people visit the White House each month.  The numbers don’t match, even if you assume that the White House is deleting some names due to national security or privacy reasons.  Continue reading »

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Critics of Stimulus Pork or Simply Critics of Government?

McCain, Coburn Target 100 Stimulus Projects
Continuing their roles as scourges of what they see as wasteful earmarks, Republican Senators John McCain (AZ) and Tom Coburn (OK) have issued a report on wasteful projects getting money from the American Recovery and Reinvestment Act, the $787 billion so-called stimulus legislation passed early in 2009.  In any large and rushed government expenditure, there are going to be opportunities for critics to take aim at expenditures that don’t look like they’re quite the wisest.  Their report, Stimulus Checkup (http://coburn.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=a28a4590-10ac-4dc1-bd97-df57b39ed872), uncovers the expected kinds of questionable projects that remind us of the “Golden Fleece” awards that the late Senator William Proxmire used to award annually for silly projects.  McCain and Coburn do a little of them too, or at least what they consider to be silly, such as a studies by the National Institutes of Health examining the connection of female college students’ alcohol consumption and their proclivity to casual sex (their “hook-up” behavior).  Rather than dismissing all of their charges as reflections of Coburn’s well-known social and culture war issues, there are categories of their criticisms that should be addressed:
•        Consistent with Coburn’s effort to exclude these projects from the stimulus, the report takes aim at stimulus expenditures for the arts, such as $225,000 through the National Endowment for the Arts for various Shakespeare festivals, $13,000 for contemporary art sculpture, $400,000 for jazz festivals, and others.  Our take is that their criticism of the arts isn’t going to go very far.  The importance of the arts to a healthy community cannot be denied.  And if they don’t generate quite as many jobs as shovel-ready highway projects, they are vitally important to the community recovery and reinvestment.
•        They also take aim at some programs such as youth employment programs that don’t seem, according to the two senatorial scourges, to be meeting their targets or purposes.  Of course they’re being quite selective, picking on a project or program here or there that isn’t meeting its job targets and not mentioning the many more that are.  We would suggest that some of this critique, with the subliminal hand of Coburn’s ideological bearings all too obvious, is the opposition to the increasing scope of federal programs.  Not all programs work as desired—anyplace, anytime, regardless of the political party involved—but the various programs that fall short of the mark here and there doesn’t mean that federal government should be shunted aside.  Do realize that the performance of for-profit contractors in the stimulus and elsewhere is certainly no better and we’d say, given the financial sector meltdown, generally much worse than that of public programs.
•        More important may be questions about stimulus grants that are really mechanisms to fund projects that wouldn’t have been fundable or funded from non-stimulus or non-emergency appropriations.  They’re a little like the famous “bridge to nowhere” earmark that Sarah Palin scored for Alaska, basically investments that might be investments that warrant a “why” or “come on now.”  McCain and Coburn know full well that most local politicians will try to find dollars for their projects whenever a new funding program emerges, it’s not a matter of partisan behavior.  Be assured that the political promoters of tiny (in the grand scheme of things), questionable projects will be with us forever in a democratic process. It’s up to federal program leaders, members of Congress, and the White House to keep an eye on what are important investments to make and what should be bypassed.
•        Finally, they do raise the question about giving stimulus contracts to firms suspended for suspected fraud.  That sounds like a McCain issue, especially since the firms cited in the report were all slimy defense contractors.  We suspect, however, that this critique might have been made against many of the for-profit contractors that scarfed up contracts during Katrina, in response to the tsunami, and now the stimulus.  The nation should be shedding its over reliance on the Halliburtons and Blackwaters of the world that have consistently misperformed, only to be given oodles more of federal contracts to administer.
The two senators’ list doesn’t outweigh the much larger amounts of stimulus expenditures that are moving along and doing well, whether or not one believes that they are the absolute best stimulus expenditures the nation could have made.  So, don’t get caught up in the ideological peculiarities of Coburn and McCain, but their report contains some stuff that we can all learn from.

Continuing their roles as scourges of what they see as wasteful earmarks, Republican Senators John McCain (AZ) and Tom Coburn (OK) have issued a report on wasteful projects getting money from the American Recovery and Reinvestment Act, the $787 billion so-called stimulus legislation passed early in 2009.  In any large and rushed government expenditure, there are going to be opportunities for critics to take aim at expenditures that don’t look like they’re quite the wisest. Continue reading »

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Election Day Musings

What should nonprofits make of the gubernatorial election successes of Chris Christie in New Jersey and Robert McDonnell in Virginia?  State-specific and national-level clues abound, although hardly in the candidates’ own pronouncements.  McDonnell was the candidate of job creation, Christie ran a campaign described by the Wall Street Journal as “content free,” but it takes some tea leaf reading to predict how nonprofits will fare in their administrations. Continue reading »

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Part II: The Future of the Press—Nonprofit or Sort of Nonprofit

In Part I, we examined the emergence of online nonprofit newspapers and nonprofit investigative journalism venues, suggesting a potential new direction for U.S. journalism.  Is the conversion of a for-profit newspaper to a 501(c)(3) public charity an answer for the future survival of newspapers?  Will the legislation introduced by Senator Ben Cardin (D-MD) and Congresswoman Carolyn Maloney (D-NY) help newspapers find their way to becoming nonprofits? Continue reading »

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Part I: The Demise of the Newspaper and the Nonprofit Option

In March, Senator Ben Cardin (D-MD) introduced the Newspaper Revitalization Act, which would allow daily newspapers under certain circumstances to become federally tax-exempt 501(c)(3) nonprofits.

Perhaps he was concerned by floundering newspapers in Baltimore–the Examiner which has gone under and the Sun whose parent company, the Tribune Corporation, has filed for bankruptcy protection.

Is the nonprofit sector going to be the salvation of the U.S. newspaper industry?  Is it possible that tomorrow’s Charles Foster Kane will find himself running a public charity and asking foundations for grants and loans?  Will local nonprofits soon find themselves competing with entities named Times, Post, and Daily News for foundation largesse? Continue reading »

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Will the Social Innovation Fund Fund Social Innovation?

The Corporation for National and Community Service held a conference call on October 15th to describe the emerging Social Innovation Fund and address questions submitted by nonprofits and foundations that might want to participate.  To say that the conference call was well attended would be an understatement.  The SIF has generated lots of attention disproportionate to the relatively small $50 million appropriation recommended in President Obama’s FY2010 budget.  One reason is that the SIF isn’t meant to fund specific nonprofit program topic or themes like youth or education or health or environment.  Created by the SERVE America Act, the SIF will support efforts to strengthen and replicate nonprofit innovation.

According to the conference call, the CNCS will issue a Notice of Funding Availability (NOFA) for the program later this fall with grants to be given to regrantmaking intermediaries in the late spring or summer of 2010.  At this late stage, it’s hard to imagine that the SIF program managers at the Corporation are going to rejigger the program design much beyond what they described in the conference call.  But as observers and analysts of the intersection of nonprofit practice and government policy, we got to raise some questions about what the program will accomplish by delivering a paper at the Hudson Institute’s Bradley Center for Philanthropy and Civic Renewal on October 19th.  Our paper, “Will the Social Innovation Fund Fund Social Innovation,” raised seven points or issues about the Fund: Continue reading »

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Whither Health Care Reform Part I: Health Insurance Coverage for the Nonprofit Sector

There are three inescapable facts about how health care coverage and health care reform affect the nonprofit sector:

  • Nonprofits are facing serious challenges in providing and affording health care coverage for their employees, especially in light of skyrocketing health care insurance costs for small nonprofits rising faster than for small businesses;
  • Without appropriate health insurance subsidies, nonprofits will find themselves either cutting benefits to their employees, stalling wages in order to afford benefits, or facing serious and growing financial pressures;
  • Recent Congressional attention to the needs of nonprofits, late in coming, still fails to give small nonprofit employers policy parity with small businesses in terms of health care reform, treating nonprofits as second-class corporate citizens in U.S. public policy

Continue reading »

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How This Country Continues to Miss the Point about Immigration

How can this nation continue to be so mystifyingly confused, contradictory, and sometimes downright incoherent about immigrants and immigration?   The Summer 2009 issue of Nonprofit Quarterly is devoted to the challenges faced by nonprofits in serving, representing, and advocating for immigrant populations in the midst of a confusing public discourse.  The authors in the issue describe the obstacles of punitive state and local laws, hostile public opinion, and chaotic shifts and reversals in national approaches to immigration–and what creative, inventive, intrepid nonprofits around the nation are doing to counter these conditions.

Punitive, hostile, chaotic? You can attach these adjectives daily to the challenges nonprofits and immigrants have to address every day.  Consider these milestones of the last week or two: Continue reading »

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Senate and House Divergence in FY2010 Appropriations for Nonprofits

Appropriations start in the House of Representatives, but require action from the Senate as well in order to pass a budget.  The Senate’s Committee on Appropriations started to make some budget headway just this past week, passing a number of bills that will require negotiations and blending with their House Appropriations counterparts in conference committee.

Where is the Senate’s attention on issues of concern to the programs and finances of the nonprofit sector (knowing full well that nonprofits should be attentive to and involved in every aspect of federal government budgetary matters, not just those that lead to money filling nonprofit coffers)?  Here is  the beginning of a budgetary travelogue of the recommendations from Senate appropriators: Continue reading »

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House Appropriations for the “Other” Programs in the FY2010 Budget

A number of programs of importance to nonprofits are lodged in agencies other than HUD, Education, Labor, HHS, and Agriculture.  We note a couple of them in terms of how they fared with the House Appropriations Committee here: Continue reading »

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Smoke, Mirrors, and Earmarks in the FY2010 Budget

It should come as no surprise to savvy nonprofit budget hawks that some of the appropriations for programs that would normally be distributed through competitive or formula processes have already been allocated through other means–as earmarks.  In the House Appropriations Committee budget recommendations, there are significant slices of program lines that have already been awarded to various state and municipal government agencies and to nonprofits of varying sizes and stripes.

While we understand some of the arguments in favor of earmarks, especially those raised by rural groups that point out how earmarks constitute a small but important mechanism for getting money to rural areas notwithstanding the frequent built-in urban biases to many federal competitive programs, we tend to be unsympathetic toward earmarks in the federal budget.  Relatively few nonprofits to our knowledge have the political connections or can pay for the earmark-lobbying experts to win these grants.  The playing field for nonprofits competing for grant support of any kind is hardly level, we know, but earmarks clearly reflect one of the most uneven, asymmetrical dimensions of the federal grants scrum.

Without reprinting pages and pages of earmarks, we offer a selection of the House Appropriations Committee’s choices (including some that appear to been requested by President Obama and endorsed by Congressional co-requesters).

Continue reading »

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