News for Social Entrepreneurs
Social Entrepreneur blog for the world changers
Michigan School District Lost Thousands To Fake Nonprofit
May 8th
Newly unsealed federal court records show that the Highland Park, Mich. school district lost $170,000 to a fake nonprofit set up by a now indicted school board member.
The Detroit Free Press reported today on the records, which provide a deeper look at the government's case against Robert Davis, 32, who is charged with stealing from the already cash-strapped school district. Davis used money from the phony nonprofit, called Citizens United to Save Highland Park Schools, on personal expenditures. Records show he allegedly spent $84,000 on perks such as custom-made clothes, hotel rooms, bar and restaurant tabs, and spending sprees at malls. He is also accused of withdrawing $86,711 in cash from the organization.
Citizens United was set up in 2005 by Davis, who used his home as the address for the fake nonprofit. According to an FBI search warrant affidavit filed in the U.S. District Court in Detroit, Davis was listed as the sole signatory for the organization's account. Highland Park school officials reportedly had no idea the account existed.
Davis was indicted on April 5 on charges that he stole more than $125,000 from the school district by submitting false invoices for advertising between 2004 and 2010. He faces up to 10 years in jail if he is convicted.
You can read the full story in The Detroit Free Press.
The Detroit Free Press reported today on the records, which provide a deeper look at the government's case against Robert Davis, 32, who is charged with stealing from the already cash-strapped school district. Davis used money from the phony nonprofit, called Citizens United to Save Highland Park Schools, on personal expenditures. Records show he allegedly spent $84,000 on perks such as custom-made clothes, hotel rooms, bar and restaurant tabs, and spending sprees at malls. He is also accused of withdrawing $86,711 in cash from the organization.
Citizens United was set up in 2005 by Davis, who used his home as the address for the fake nonprofit. According to an FBI search warrant affidavit filed in the U.S. District Court in Detroit, Davis was listed as the sole signatory for the organization's account. Highland Park school officials reportedly had no idea the account existed.
Davis was indicted on April 5 on charges that he stole more than $125,000 from the school district by submitting false invoices for advertising between 2004 and 2010. He faces up to 10 years in jail if he is convicted.
You can read the full story in The Detroit Free Press.
Smaller Retailers Tap Into the Power of Digital Displays
May 7th
Four retailers illustrate how digital signs can help attract customers and boost revenue.
National Museum Of Natural History Gets Major Donation
May 7th
David H. Koch, executive vice president of Koch Industries, has made his mark on National Museum of Natural History by donating $35 million to the Washington, D.C.-based museum.
The major gift, which was announced by the Smithsonian Institute last Thursday, will be used to build a new dinosaur hall, according to a report in The Washington Post. It is the largest single donation the museum has ever received, and the fifth largest in Smithsonian history.
Koch, who might be best known for his support of conservative causes, has been a member of the museum's advisory board for the past 15 years. He told The Post that he made the donation because he believes the institution's current dinosaur hall is "obsolete." Many of the specimens included in the current dinosaur exhibit have been there since the museum first opened 100 years ago.
This is certainly not Koch's first experience with philanthropy related to dinosaur exhibits. He donated $20 million to the dinosaur hall in New York City's American Museum of Natural History in 2006. He also gave $100 million to the renovation project for the State Theater of New York at Lincoln Center.
The National Museum of Natural History's current dinosaur exhibit will close in 2014, with the renovated hall scheduled for completion in 2019. The total cost of the work is estimated at $45 million.
You can read more about this story in The Washington Post.
The major gift, which was announced by the Smithsonian Institute last Thursday, will be used to build a new dinosaur hall, according to a report in The Washington Post. It is the largest single donation the museum has ever received, and the fifth largest in Smithsonian history.
Koch, who might be best known for his support of conservative causes, has been a member of the museum's advisory board for the past 15 years. He told The Post that he made the donation because he believes the institution's current dinosaur hall is "obsolete." Many of the specimens included in the current dinosaur exhibit have been there since the museum first opened 100 years ago.
This is certainly not Koch's first experience with philanthropy related to dinosaur exhibits. He donated $20 million to the dinosaur hall in New York City's American Museum of Natural History in 2006. He also gave $100 million to the renovation project for the State Theater of New York at Lincoln Center.
The National Museum of Natural History's current dinosaur exhibit will close in 2014, with the renovated hall scheduled for completion in 2019. The total cost of the work is estimated at $45 million.
You can read more about this story in The Washington Post.
Game Changing Ruling On Tax Exemption?
May 7th
A Pennsylvania Supreme Court ruling on the tax exempt status of a Brooklyn, N.Y.-based Orthodox Jewish school's camp could have the potential to set precedent for future legal challenges of charities.
According to a report in the Pittsburgh Post-Gazette, the Mesivtah Eitz Chaim of Bobov Inc. summer camp was ruled not to be a nonprofit, despite being owned by a religious institution. This is because most of the 61-acre property surrounding the camp does not meet the criteria for charities in Pennsylvania.
The ruling has some concerned that we could be returning to the times, mainly in the 1980s and 1990s, when the tax exempt status of nonprofits was regularly challenged by local governments. A spokesman for Pennsylvania state Senate Pro Tem Joe Scarnati openly raised the possibility that the state's constitution might need to be amended the clarify the section on purely public charities.
The court's decision, a narrow 4-3 ruling, had this kind of impact for a number of reasons. For one, it turned the notion of what qualifies as a nonprofit on its head. Yet even more telling was that the court cited its own 1985 ruling, Hospital Utilization Project v. Commonwealth, as the controlling point, not a 1997 law known as Act 55, which lays out what defines a public charity.
The 1985 ruling, also known as the HUP Test, states that a purely public charity must pass five tests to gain tax exemption: advance a charitable purpose; donate or render gratuitously a substantial portion of its services; benefit a substantial and indefinite class of persons who are legitimate subjects of charity; operate entirely free from private profit motive; and relieve the government of some of its burden. Mesivtah Eitz Chaim of Bobov Inc met every criteria except the last one.
We have already seen a number of legal challenges of tax exempt organizations in the past year, with the most famous example being the case of a number of nonprofit hospitals in Illinois.
You can read the full story in the Pittsburgh Post-Gazette.
According to a report in the Pittsburgh Post-Gazette, the Mesivtah Eitz Chaim of Bobov Inc. summer camp was ruled not to be a nonprofit, despite being owned by a religious institution. This is because most of the 61-acre property surrounding the camp does not meet the criteria for charities in Pennsylvania.
The ruling has some concerned that we could be returning to the times, mainly in the 1980s and 1990s, when the tax exempt status of nonprofits was regularly challenged by local governments. A spokesman for Pennsylvania state Senate Pro Tem Joe Scarnati openly raised the possibility that the state's constitution might need to be amended the clarify the section on purely public charities.
The court's decision, a narrow 4-3 ruling, had this kind of impact for a number of reasons. For one, it turned the notion of what qualifies as a nonprofit on its head. Yet even more telling was that the court cited its own 1985 ruling, Hospital Utilization Project v. Commonwealth, as the controlling point, not a 1997 law known as Act 55, which lays out what defines a public charity.
The 1985 ruling, also known as the HUP Test, states that a purely public charity must pass five tests to gain tax exemption: advance a charitable purpose; donate or render gratuitously a substantial portion of its services; benefit a substantial and indefinite class of persons who are legitimate subjects of charity; operate entirely free from private profit motive; and relieve the government of some of its burden. Mesivtah Eitz Chaim of Bobov Inc met every criteria except the last one.
We have already seen a number of legal challenges of tax exempt organizations in the past year, with the most famous example being the case of a number of nonprofit hospitals in Illinois.
You can read the full story in the Pittsburgh Post-Gazette.
Comment On The News
May 7th
One of the great things about the Internet is the ability to interact with a community. Sharing your opinion on the hottest stories is a lot of fun, and now you can do just that thanks to the new commenting feature on The NonProfit Times.
Make your voice heard on the latest issues in the nonprofit sector by signing up to our website today. Once you fill in all the required fields, you can start commenting on any of our news stories. We're really excited to hear your opinions and see some lively (but civil) debates on the hot stories affecting nonprofits.
To get things rolling, here's a link to one of our newest stories on the end of Public/Private Ventures. What are your thoughts on this organization closing its doors after 35 years?
Make your voice heard on the latest issues in the nonprofit sector by signing up to our website today. Once you fill in all the required fields, you can start commenting on any of our news stories. We're really excited to hear your opinions and see some lively (but civil) debates on the hot stories affecting nonprofits.
To get things rolling, here's a link to one of our newest stories on the end of Public/Private Ventures. What are your thoughts on this organization closing its doors after 35 years?
How to Legally Protect Your Home If Your Business Is Sued (Video)
May 7th
Before starting up, it's important to set up protections for your personal assets, including your home. Here, attorney Mark Kohler explains.
How to Deal With Copycats (Video)
May 7th
If you're first to market, it's not unusual for others to rip off your product. Hear entrepreneur Michael Aiello's story, plus tips from Pinterest investor Brian Cohen on handling knock-offs.
The NPT Jobs Posting Special
May 4th
In this tough economy, you need to take advantage of all sources when recruiting new candidates for open positions. That means not only using job boards, but also social media and print advertisements. With the newest jobs posting special from The NonProfit Times, you get all of that and more.
For only $595, your organization will get all the tools it needs to reach a wide audience of job seekers. Here's a look at some of the highlights:
For only $595, your organization will get all the tools it needs to reach a wide audience of job seekers. Here's a look at some of the highlights:
- Online 30 day posting on The Nonprofit Job Seeker.
- Banner ad to run for 30 days that ad is running, SITE WIDE.
- Job tweeted to @nptjobs & @nonprofittimes list 3x each.
- Listing in the print and digital editions of our magazine
- Blog post of your listing on our Jobs Blog
NY Attorney General Sues Race Horse Nonprofit
May 4th
New York Attorney General Eric Schneiderman announced yesterday that he has filed a lawsuit against the directors of a nonprofit for retired race horses.
The Rochester Democrat and Chronicle reported that Schneiderman accused the Saratoga Springs, N.Y.-based Thoroughbred Retirement Foundation (TRF) of providing inadequate care for its 1,100 retired race horses. The suit alleges the organization took on more horses than it could handle, leading to poor food, unattended injuries, and a lack of shelter for severe weather.
In a statement, Schneiderman said that both the state and the nation need TRF to succeed but that the group's "board has driven this vital organization into the ground." The foundation is also accused of paying its boarding farms less than $3 per horse a day to provide care -- less than half spent by similar organizations -- and that the board diverted funds for horses to repay loans by two of the organization's directors.
TRF Chairman John Moore has denied the allegations, saying that suit is based on a "pile of lies." He insisted that all of the horses they care for are in good condition, and that TRF would pursue every legal avenue to defend itself.
You can read the full story in The Rochester Democrat and Chronicle.
The Rochester Democrat and Chronicle reported that Schneiderman accused the Saratoga Springs, N.Y.-based Thoroughbred Retirement Foundation (TRF) of providing inadequate care for its 1,100 retired race horses. The suit alleges the organization took on more horses than it could handle, leading to poor food, unattended injuries, and a lack of shelter for severe weather.
In a statement, Schneiderman said that both the state and the nation need TRF to succeed but that the group's "board has driven this vital organization into the ground." The foundation is also accused of paying its boarding farms less than $3 per horse a day to provide care -- less than half spent by similar organizations -- and that the board diverted funds for horses to repay loans by two of the organization's directors.
TRF Chairman John Moore has denied the allegations, saying that suit is based on a "pile of lies." He insisted that all of the horses they care for are in good condition, and that TRF would pursue every legal avenue to defend itself.
You can read the full story in The Rochester Democrat and Chronicle.
Complete The 2012 Salary And Benefits Survey
May 3rd
We have been extremely satisfied with the number of people who have participated so far, but we still need help to make our report on nonprofit salaries as complete as possible.
While you have until June 1 to submit your survey, participants who complete it by May 15 will receive an added bonus: The chance to win a free iPad! In addition, all participants will receive a free Executive Summary of the results with salary data for all positions.
So what will the 2012 Salary Survey help you do? Here are some of the advantages:
- Make sound decisions on staff salaries and benefits. Give your board and managers the data they need.
- Get current salary and bonus pay data on 300 + nonprofit jobs from entry-level to the executive office.
- Check YES when the IRS asks you on your Form 990 if salaries for your chief executive and key employees were set using comparability data for similar positions.
- Learn about 94 employee benefits - health insurance, retirement, and more.
- Track changes and trends from 2011 to 2012 for ALL Salary & Benefits information.
- Get data by nonprofit field, budget size, number of employees, and region throughout the U.S.A.
- Discover what special benefits are being offered to 15 executive level positions.
- Stay competitive.
You can read more about the survey by clicking here.
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