So busy, in fact, that I need to hand off the 501(c) Files to someone who has the time and energy to give it the attention it deserves. This was not a decision made lightly: I’ve had tremendous fun exploring the intersection of nonprofits and business, and my eyes have been opened to a host of initiatives — and to a wealth of passion — that I was only dimly aware of before. Well, it’s time to let someone else step in and explore for himself or herself.

My thanks to b5media for giving me this outlet. The people at that company are exactly the kinds of colleagues you want to have — funny, nurturing, smart, supportive. Make sure you check out the Business Channel’s other blogs — the work being done there is nothing short of remarkable. I hope to return to b5 in some sort of blogging capacity, so do keep poking around b5’s various efforts, please.

Finally, thanks to you for reading. I’ve so enjoyed getting to know some of you online, and our conversations have challenged and enlightened me in all the best ways. I’d love to keep those conversations going, so please don’t hesitate to reach out to me. (See my website for contact info.)

And keep those missions alive, wouldya? | 501(c)

Post from: EveryJoe

The Busy Nonprofit Sector Claims Another Voice

Post from: EveryJoe

Notes, Follow-Ups, and Reminders | Nonprofit Tidbits from the Last Week

Social entrepreneurs are clamoring for a realignment of the way the federal government and nonprofit groups work together to maximize the impact of American generosity.

–The Washington Post

What a colossally bad idea.

For all of the flaws the nonprofit sector has, in most cases the organizations comprising it have a clear idea of whom they wish to help and how.

When was the last time the federal government could make such a statement? Could it ever?

The whims of politics, the inevitable ethical vagaries, the inability to get anything worthwhile done — is this really what nonprofits seek to get in bed with? Such a partnership would hamper, not enhance, the sector’s ability to fulfill its mission. | 501(c)

Post from: EveryJoe

Can Uncle Sam Help the Nonprofit Sector? Some Think So. Me, Not So Much.

An Albuquerque nonprofit group, accused by three legislators of skirting the state campaign finance law, must register as a political action committee, the secretary of state says.New Mexico Youth Organized, a division of the Center for Civic Policy, also must file campaign finance reports, Mary Herrera said Monday.

The Center for Civic Policy pledged to fight the directive, saying that mailers about the trio’s voting records were educational, not political, in nature, meant “to make sure New Mexicans knew what actions have been taken on issues important to them by their elected officials.” The defeated incumbents called it election fraud, though their challenge to the Center’s status, and not the content of its mailings, leads me to question their motives as being less about nonprofit law and more about holding on to their seats. | 501(c)

Post from: EveryJoe

Deemed to Have Crossed the Line, a Nonprofit Is Sent PACing

In the first instance, reported by the New York Times, a friend of the founder of the Association of Community Organizations for Reform Now (Acorn) ponied up almost a million bucks to cover the debt incurred when the founder’s brother embezzled scratch from Acorn. Talk about it’s not what you know, it’s who you know:

[Drummond] Pike[,the founder and chief executive of the Tides Foundation,] is a friend of Wade Rathke, the founder of Acorn and its leader until the scandal broke, and he agreed to buy the promissory note that required the Rathke family to repay Acorn the money that Mr. Rathke’s brother, Dale, had stolen.

Mr. Rathke is a member of the board of the Tides Foundation and other Tides-related organizations.

Acorn officials worked hard to keep Pike’s identity as Rathke’s white knight a secret, which tells you something about the fishiness of it all.

Meanwhile, in western Pennsylvania, the Voluntary Action Center “apparently has closed its doors a day after its former executive director was charged with stealing from the agency.” Darla LaValle, who resigned last year, is “accused of inflating her salary and denying retirement benefits to two employees.” Interestingly, she also can boast a connection — her husband is a state senator. Then again, he’s also not running for reelection. | 501(c)

Post from: EveryJoe

Nonprofits in Trouble Ask: Who Do You Know?

“I could sell [pins] for a couple hundred bucks,” he said. “But I spent thousands to come here. That’s not what it’s about.”

Sounds like a pretty mission-oriented activity to me. | 501(c)

Post from: EveryJoe

In Beijing, Collectors Go for Gold, Not Green

Post from: EveryJoe

Notes, Follow-Ups, and Reminders | Nonprofit Tidbits from the Last Week

These are misconceptions that hinder the growth of the organization and become obstacles to achievement of the organization’s mission. The nonprofit organization must be run as if it were a serious business if it is to be successful and continue to exist in a competitive market. To do this, the notion that a nonprofit group should not make a profit needs to be dispelled.

Saunders goes on to conduct that dispelling with five points that make the case for a business-oriented outlook for the sector. With respect to the paragraph above, these two points from his column bear repeating here:

• Dependable and knowledgeable staff must be paid livable salaries and benefits.
• Money must be spent on resources that help meet the organization’s mission.

It’s worth reading to digest all of Saunders’s points and to absorb his pragmatic, forward-thinking worldview. | 501(c)

Post from: EveryJoe

The Myth of Bake Sales as a Viable Fundraising Tool

Great news for the sector, right?

Well, that depends on how well the sector’s doing here.

As the Philadelphia Inquirer reported yesterday, the Philadelphia Foundation “is commissioning a study to benchmark the state of nonprofits in Philadelphia and its four neighboring Pennsylvania counties.”

It has tapped the Economy League of Greater Philadelphia to catalog and group the members of our nonprofit world, examine their finances and funding sources, and compare them with their peers. The foundation will spend $100,000 on the first phase of the study.

An Economy League official pointed out that determining the health of the sector will help the government determine whether nonprofits will be able to pick up the slack in the wake of slashed budgets, and that donors will be able to get a big-picture look at the sector. It’s an ambitious undertaking, to be sure, but, I think, a necessary one. I wouldn’t be surprised to see other metropolitan areas take up similar projects as accountability and efficiency continue to be watched. | 501(c)

Post from: EveryJoe

Philadelphia Nonprofits Have the Numbers, But Are They Healthy?

Joe Browne, the N.F.L.’s executive vice president for communications and public affairs, said league lobbyists had not yet found a Congressional sponsor for their proposal.

“I’ve been here 40 years,” Browne said. “I finally get to the point where I’m making 150 grand, and they want to put my name and address on the form so the lawyer next door who makes a million dollars a year can laugh at me.”

He added, “A hundred and fifty thousand here is not the same as it is in Dubuque, Iowa, or West Texas.”

I’m sure schoolteachers and nurses in Dubuque and Midland are very sympathetic to Mr. Browne’s plight.

Anyway, I had no idea the NFL was classified as a nonprofit. It considers itself, according to the New York Times, a “trade association” funded by its various teams, whose owners have access to the league’s salary information, and so its proposal to Congress is to exempt it and other trade associations from disclosing paycheck data. Ah, but here’s the rub:

The league benefits from tax-exempt status by being able to sell hundreds of millions of dollars in bonds at a reduced rate that are then lent at cut rates to clubs building new stadiums.

Throw in the many, many millions of dollars that the league and its teams earn from television deals, merchandising and licensing, corporate affiliations, and the like, and you’ve got a situation soaked in chutzpah. Major League Baseball, faced with the same dilemma, last year threw up its hands and changed its status to for-profit. Don’t be surprised if the NFL punts and does the same thing. | 501(c)

Post from: EveryJoe

The NFL Gets Thrown for a Loss by the IRS