Nonprofit finance, accounting, and tax news. Other tidbits of interest to the charity community.
There hasn’t been much visible in the news for a long time on a rumored investigation conducted by several state Attorneys General.
William Barrett tells of whispers he has heard that the investigation is ongoing and about to do something.
I have previously referred to a few public comments pointing out that something seems to be happening: (more…)
We are seeing an increasing number of shame storms in social media. The goal of a shame storm is to severely rebuke and embarrass someone who stepped out of line.
Doesn’t matter if the person loses a job and is emotionally destroyed as a result. Doesn’t matter if the storm is completely out of proportion to the offense. As long as the instigator and following mob have a good time, they don’t care.
I discussed this issue earlier: Be careful on the ‘net. It is cruel and unforgiving. Draw wrong attention and you get dissected, then shamed.
Here are two more articles on shame storming.
4/20 – About Last Night – The shame sharks – Terry Teachout suggests that yes, he does self-censor what he says, or what is called crimestop in the novel 1984.
Creating change in a local church is really hard work. Here are two articles describing why it is so tough.
4/21 – Charles Stone at Pastors Today – 8 Reasons Church Change Is so Difficult – Article describes a few of the reasons change is so tough. Just a few highlights:
A couple of articles on measuring outcomes and some discussion on the high cost of using telemarketers.
4/19 – Nonprofit Chronicles – Foundations, Nonprofits and Performance Anxiety – Marc Gunther describes a theater in Houston that sends an email survey to all customers the next day after a show. Their goal is to “enrich” and “stimulate” their audiences. The surveys ask questions to see if patrons get deeply involved. They want to know more than what the ticket count is.
Those are the kinds of outcome measures that nonprofits ought to be looking for, but aren’t.
I’ll start listing the helpful articles providing background on the major changes to financial reporting of charities. Here’s the first articles I have seen:
Mentioned this previously:
FASB is offering a free webinar on the exposure draft to overhaul financial reporting for charities. Session will be good for 2 hours of CPE.
Webinar will be offered on May 12 at 1:30 p.m. Eastern Daylight Time.
You can register at this page.
FASB has released the long-awaited revision to reporting by nonprofit organizations.
The FASB’s press release can be found here.
The document along with a link is: Proposed Accounting Standards Update- Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954) – Presentation of Financial Statements of Not-for-Profit Entities.
Writing at Inside Philanthropy, David Callahan follows up on his previous article about the intentionally heavy-staff model used by many legacy foundations.
He asks Can Lean Foundations Do Smart Grantmaking? Here’s a Study That Says “Yes”.
He cites a study by Exponent Philanthropy that surveyed nearly 800 members of the organization. The survey, of people associated with foundations with little or no staff, found that foundations can stay informed, make lots of grants, and produce reasonable returns on the invested funds with very low staffing levels.
Here is an issue I’ve not seen before: Is the size of the infrastructure at humongous foundations a problematic issue just by itself?
David Callahan, writing at Inside Philanthropy on April 10, stretches my brain: Ford Sinks Over $1 Billion a Decade Into Overhead. Is That Money Well Spent? – First, adjust that decade cost figure to annual. That would be $100M a year.
In 2013, the Ford Foundation spent $146M on G&A out of $685M total expenses, according to the article. That is 21.3%, which would usually be considered respectable.
The issue, according to the author, is their overall approach of making programmatic grants. That means the foundation chooses this study, that new effort, and another ongoing project. Which in turn means they drive the programs of their grant recipients. That heavy control approach requires a lot of staff.
Therein lies the rub, according to the author. With that approach, foundations gather power and authority unto themselves. At that scale, the agendas of the grant officers are driving the funding of lots of charities.
The author’s perspective: (more…)
Articles on warning signs that a charity’s financial processes aren’t working well, the debate on DAFs, and a way-out-there charity.
4/10 – GuideStar – Ten Signs of Financial Trouble for Board Members – If you are on the board of a larger-sized charity, might be helpful to check out this list of warning signs that something is wrong in the financial function. Applies to any charity in New York.
Just a few tidbits:
1.FINANCIAL INFORMATION IS LATE–
Update: In case you missed it, here is my flash news report of about a year ago. Seemed like today might be a good day to run it again.
Jerry Bowyer has the report from Jerusalem. It is in the very early edition of today’s paper. Apparently that seditious rabble-rouser from Nazareth got his just due Friday past when the Sanhedrin and Roman government both agreed to address treason as treason ought be addressed.
The article’s first paragraph,
Jesus of Nazareth was executed today on the orders of the Roman State. Method of execution: Crucifixion. The charge under Roman law was treason, and under Herodian law blasphemy against the Temple. The evidence against this anarchist was so strong that authorities of both the Roman State and the Kingdom of Herod concurred with the arrest and execution, and he was subjected to trial by both governments. And in a rare uprising of spontaneous collective justice, the mass of people who were gathered for Passover called for his execution as well. The mob affirmed their loyalty to the state, chanting, “We have no king but Caesar.”
For the rest of the story, check out the full news report in Forbes: Jesus of Nazareth, Enemy Of The State, Executed For Treason.
After reading the full article, I’m sure you will agree with me that we shall never hear of his name again.
Hold on…
The paperboy is shouting something about an extra edition….Let me go get a copy of the paper to see what happened since sunrise.
Update: Since a year ago, there have been a number of foolish, unbelievable, preposterously silly rumors floated that something peculiar happened that weekend.
I’m confident there are perfectly logical reasons for those grossly exaggerated stories a few months back that followers of this discredited rabble-rouser were understandable in languages they had never studied. That’s crazy talk. Speaking in other languages. Inconceivable! Those fishermen are so unreliable. These stories will die out very soon.
I assure you we won’t hear about that dead, returned to the dust, rabbi-wanna-be, overrated carpenter ever again. Beside which, everyone knows that nothing good has ever come out of Nazareth. His followers will shut up and fade away any day now, never to be heard from again.
P.S. In case you missed the date, this discussion was posted on Easter Sunday.
Recognizing dysfunctional people who are trying to disrupt your congregation is the first step in healing the hurt.
Peter Chin describes how insulated members of a small group or close-nit bunch of friends learn How to Destroy Your Pastor.
Sometimes it is necessary for a pastor to move on when the pastor isn’t ready to do so. However, and this is a hugely critical however, such a decision must be a corporate decision, not just the opinion of a small group of people who have decided they don’t like the pastor.
I have experiential knowledge of being part of the resistance standing up to a gaggle of people who decided they wanted to drive off a pastor.
Peter Chin describes the dynamics in which a small group can become insular, which creates an echo chamber. The lack of outside feedback reinforces growing misperceptions or biases.
You can find my two posts for April 1 at my other blog, Outrun Change:
Democracy and innovation will trump totalitarianism and lack of freedom. Of course, it helps to have cloaked starships that fire photon torpedoes at warp speed hitting their targets hundreds of thousands of kilometers away go up against death stars that manually target lasers using visual observation.
News reports you may have missed on history books you may have read – April 1
Some books keep getting filed in the fiction section instead of the history section where they belong. Here are some news reports on a few of those books. Historian J.R.R. Tolkien gets good coverage.
Remember, it is April 1st.
More good stuff is my way of pulling together articles that are worth discussing just won’t get a full post by themselves. I’ve done that previously on this blog with the overhead ratio issue. Will start doing the same thing with general nonprofit articles.
So, here are a few quick reads for background: why churches struggle to grow past certain levels, and some info on filing 990s.
3/25 – Thom Rainer – One Key Reason Most Churches Do Not Exceed 350 in Average Attendance – Here is some info on the size of typical churches in the U.S.: (more…)
March 14 is referred to as Pi day by people who enjoy math. Since pi equals 3.14159, that makes March 14 pi day.
3/14
3.14
Get it?
Well, it’s funny for some of us. Really.
Million Dollar Way points out that tomorrow, March 14, 2015, is the Pi day of the century.
I’ll let Mr. Oksol explain it: (more…)