pic by ethan hein

New Year Resolution:

Expand use of the Internet

Promote organization on the web

Use web base systems for collecting information

Convert old record systems to web base system.

Convert facilities to energy efficiency systems

Support telecommuting

Support own industry and buy government or nonprofits bonds

Best wishes to all for an improved 2009.

Debt swaps have gone from being a blessing to being the death to financial stability.

Tax-exempt bonds once had been viewed as worthy as municipal bonds due to the nature of government regulation.  However,  with municipal bonds being viewed less favorable, the same has occurred for tax-exempt bonds.

As municipal or nonprofits default on their debt service in 2009 it will cause  serious problems for government and nonprofits needing to finance debt.

I would suggest that certain nonprofits and municipalities look to bankruptcy to create the right amount of time to negotiate with bond holders, especially if it is the change in the financial markets that has created the current fiscal crisis for the organization.

However, due to the fact that some nonprofits and government entities are unable to make the necessary decisions to do what is best for the industry I think regulations should be in place allowing state governments similar measures that the SEC and Federal Reserve have in dealing with financial institutions.

The industry of $430 billion tax exempt bonds is too important to not be more strongly supported during this time of tight credit and illogical behavior of the financial markets.  These bonds are not from entities that represent investors seeking a return but rather are from entities whom are to accomplish public good.

(pics by vintfalken, wonderwebly, and thelastminute )

pic by Leon

by cameronmaddux

The use of 529 Education Prepaid Plans allows families to lock in current tuition rates of the state higher education institutions.  How is that for creating value?  It is like a guaranteed returned.

You might ask what happens if the student does not end up going to college or their choice is another state or private.

Not to worry, the account can be used for any college but will be limited to any increase usually tied to the growth of in state tuition.

This may be the best conservative way to ensure growth in your investment of funds for future generations.

Foundations who are supporting youth in reaching a college education might just want to utilize this approach as well.

Nonprofits find value in every educational experience.

pic by rumpleteaser

Measuring quality in health care based on a five star system.  A helping hand in making tough decisions.

Key Measures:

1. State Health Inspections
2. Staffing
3. Various quality of care measures
4. Final score of overall quality

While the information relies on some data to be self reporting such as use of restraints or the frequency of infections it is a step in the right direction.

The rating system is the beginning of trustful tools for consumers to use in the selection of health care services. Find and compare Nursing homes by going to the Medicare web site. Click here for the link.

Other Tools on the Medicare site are the Medicare’s Guide to Choosing a Nursing Home, a Nursing Home Checklist and Your Rights as a Nursing Home Resident.

Join the movement of evidence base practice.  Help create or use a measuring standard for your organizations services.

 pic by smiteme

Decided to only give gifts to the immediate family and the Uncle who is by himself.

Wrapped presents with Newspaper:  the comic section needed some censoring to be age appropriate.

Donated presents that were never opened.

Donated to one nonprofit that spent 100% of the money on people in need.

All completed with a focus on the prioritization of holiday spending to include the importance of giving to others.

 pic by AL Bar

An organizations actions speak louder than their words.  Nonprofit Hospitals have been creating a bad image of the nonprofit health care industry.  The result is a reaction that will effect every organization in the profession.  The creation of  standards for documenting free care and with leaving less discretion for organizations.

Legislation is under consideration which would require nonprofit hospitals to provide a minimum amount of free care on the poor.

The majority of hospitals in the United States are nonprofits.  When the IRS grants 501 (C) 3 status to a nonprofit it is with the expectation that the organization is going to provide benefits to the community it serves.

The fact that some have curbed free care, some have closed facilities in poor communities and open others in richer communities, some have sent debts to collecting agencies and some have done all three.  These actions have caused Congress to review whether health care reform should include mandates that hospital organizations spend 5% or more of patient revenues on free care to keep their tax exempt status.

This previous post and cartoon link really give one the visual touch.

pic by steve laurie

The Internet has become a leading form of communication.  It will only become even a bigger communication tool when government mandates a free service standard to create open access.

Protecting children from bullying on the Internet has become a crisis for parents.  Human Resource can easier disperse information to its employees to provide helpful tools.   If you have an Employee Assistance Program have this type of communication included in their services.

Below are a few resources to assist organizations to help their community and employees

Stop Cyberbullying:  Defines it, prevention suggestions and legal definitions

Web Site Link:   or Contact:  E-mail: parry@aftab.com or Telephone: 201-463-8663

ConnectSafely.0rg:  Site for forums to take place among teens, parents and experts. You can go to the web site link and send a message or go to a forum and link in and participate.

Cyberbully.org is a site for research, guidance and outreach services on Internet use.  Check out this link.

Help promote the appropriate use of the Internet.

pic by royblumenthal

Taking risks does not mean giving up responsibility.

The $50 billion dollar Ponzi Scheme provides a key opportunity for learning.  The delegation of due diligence comes with risks. Board members need to understand that delegation of their duty to be fiduciary responsible comes with first asking the right questions.  It is safer to get lower returns using investments that are clearer and understandable.  It will not leave doubt in your decision making.

Charities should have as an investment goal to preserve principle and aim for a conservative return of up to 5 percent.  In most cases that is achievable through government bonds or high grade corporate bonds.  (The key word is “up to”).  Greed is what got most individuals and institutions to ignore the need to conduct due diligence.

Out of the many effected I have noted below a few examples of whom to follow and whom not to follow as examples of conducting due diligence.

Those who did their due diligence 

•  American Jewish Committee
• Combined Jewish Philanthropies

Those who seemed to not have conducted sufficient due diligence and lost money.

• Picower Foundation (952 million)
• Robert Lappin Charitable Foundation
• Carl and Ruth Shapiro (145 million)

Those who had money managers whom seemed to not have conducted sufficient due diligence and lost money.

• Maimonides School
• Foundation of the Holocaust  (15.2 million)
• Yeshiva University (110 million)
• Tufts University (20 million)
• New York Law School (3 million)

Protect yourself and any organization your responsible for from being cheated:

1. If you are going to hire money mangers or investment advisers a simple rule is that they should never handle your money directly.  They would have you place your money with a brokerage firm, bank or mutual fund.
2. To ensure legitimacy at all times you should be able to see your account on line at any time.  If this is not available this should be the only warning you need to walk away.
3. If you can not confirm on your own the transactions made on your behalf then walk away.
4. If you receive statements from both a money manager and custodian, read them.  If there are any discrepancies contact the custodian immediately.  If your not satisfied with the answer or your uncomfortable, walk away.
5. If you can not get a meeting with your money manger, you should walk away.

If you think that the time and effort is such a pain or inconvenience to you or to the Board, you should consider not having the responsibility.

pic by urban garden

Moving the Economy forward requires less talk and more action.

Congress needs to pass a bill that requires:

1. All foreclosures to go thorough a standard process where an online auction is conducted thorough a local government/nonprofit affordable housing initiative.
2. No renter can be evicted due to the fact that an owner defaulted on the mortgage.
3. Mandate 25 billion of financial bail out monies to be used by the local nonprofits or housing authorities to bid for the properties as a first right of refusal.  Have the final dollar amount represent the cost to create a sufficient number of housing units in each state to meet a define level of need in the state.
4. Have a requirement that nonprofits or governments participating must pay a minimum of 20% of their bid price with other funds.
5. Mandate that for a property to be purchased under the program that said the bid price can be no more than the amount that would allow for rents to be set within an affordable housing category that is 30% of income.  The category must be defined as representing 30% of that communities set minimum wage level.
6. Government and nonprofits can exceed said cap if they bid for the property and request no federal dollars and are the winning bid.

The Result:

• Property moves more quickly to new owners
• Less people become homeless or evicted
• Number of homes for sale drops
• Values of the housing market stabilize
• Affordable housing stock increases dramatically
• Access to credit markets by nonprofits increases

The initiative needs to be about creating housing for individuals and families can afford base on the wages of that community.  Thus, some of the housings that people are going to lose under foreclosure may be eligible to be renters under the program.

pic by shtikl

If organizations are historically dependent on a particular corporation or foundation for for ongoing operational funds they are at risk year to year. Foundations have lost about 30% of their value in 2008.

Individuals represent the majority of annual giving and provide for the best level of diversification and growth area.

Today is a good day to begin to share office space, share a receptionist, submit joint proposals.  The scaling back of charitable donations does not have to mean the end of a successful program. Think of how you can do things differently building off the successes of the program.  Remember that the ultimate to success is the evolution of a community adopting the effort themselves.  Yes, that means an organization may need to move on to another effort because the community has taken the effort internally.