The NonProfit Times - June 1, 2008 - (Page 3)

??????? Editor-in-Chief Paul Clolery ednchief@nptimes.com Senior Editor Mark Hrywna mark@nptimes.com Staff Writer Michele Donohue michele@nptimes.com Contributing Editors Harvey Berger Susan Ellis Tom Gaffny Herschell Gordon Lewis Chip Grizzard Thomas A. McLaughlin Tim Mills-Groninger Jon Van Til Mal Warwick President John D. McIlquham Publisher Willy Morgan willy@nptimes.com Business Manager Barbara Nastasi bizmngr@nptimes.com Production Manager Paul R. Castori production@nptimes.com Webmaster Lisa Marie Pinto webmaster@nptimes.com Advertising Kim Kastner Traffic Manager Kim@nptimes.com Circulation Manager Richard Rukaniec rrukaniec@optonline.net Marketing Manager Sue Juter sue@nptimes.com Account Managers Frank Strazzulla frank@nptimes.com Scott Vail scott@nptimes.com In This Issue SPECIAL REPORT BY NATALIE GHIDOTTI May 1, 2008 Vol. 22 No. 11 Joining The Masses Online 22 Email Evangelism BY NATALIE GHIDOTTI June 1, 2008 UP FRONT The Leading Business Publication For Nonprofit Management • www.nptimes.com • $6.00 U.S. First Kroc Center Set To Open $1.7-billion bequest funds new centers around the country BY MARK HRYWNA he first Ray and Joan Kroc Corps Community Center constructed with funding from Joan Kroc’s $1.7-billion bequest will be dedicated June 27 in San Francisco.The opening will mark the first of 30 scheduled to open during the next five years by The Salvation Army.The next one to be dedicated is slated to be Sept. 14 in Atlanta. Hospices Put On Life Support Fundraising becoming more important as federal cuts loom T BY MICHELE DONOHUE ospices care for people at their most vulnerable time, but now those services are at risk as 3,000 Medicare-licensed hospices face slashed reimbursements in President Bush’s 2009 budget proposal. H 14 14 14 17 First Kroc Center Set To Open BY MARK HRYWNA The widow of McDonald’s founder Ray Kroc, Joan Kroc left the bulk of her estate to The Salvation Army after she died in October 2003. The $1.5-billion bequest, which turned out to be more like $1.7 billion after the estate was settled, was not to go for current programming. Instead, the gift was earmarked to build Ray and Joan Kroc Corps Community Centers, like the one opened in San Diego in 2002, and to provide endowments to operate the facilities equal to construction funding. That stipulation was enough to have Workers prepare to raise the steeple on the Southwest Atlanta some question whether such a “mega-gift” Ray and Joan Kroc Corps Community Center, scheduled to open in the fall. could -- or should -- even be accepted. Some Army chapters have had to overcome donor perception that Other centers are in various stages of planning and construction the organization doesn’t need their contributions given that they with nine more expected to open next year, another 12 in 2010 received a huge bequest,potentially jeopardizing existing program- and four in 2011. Five centers are still undetermined, although one ming.The first Kroc Center, built in San Diego with the help of a of those hopes to break ground this year. The cost of centers ranges from $30 million to $160 million, the most expensive camdonation from Joan Kroc in 1997, made clear the importance of an paign being in Chicago. endowment match. Kroc added $5 million after her original $87The Kroc Center in San Francisco sits on a half-acre of land and million donation proved insufficient to complete the project -- but is about 75,000 square feet, with an additional 60,000 square feet the endowment was never added to -- and the center opened to of transitional housing connected. Construction totaled about $56 problems in 2002. million, with $30 million for the Kroc Center, and another $32 milThe Atlanta and San Francisco centers are further ahead of othlion for the center’s endowment. The largest center, in Chicago, ers because they had already started campaigns when Kroc’s gift, the largest single gift to any one charity, was announced in 2004. Kroc Center, page 10 “If these cuts do happen, we’re going to have to look at the community. We don’t want patient care to suffer,” said Patricia Morgan, Hospice Southeastern Connecticut’s community development director, based in Norwich, Conn. The budget proposal seeks to eliminate the hospice market basket for three years and reduce the update in the following two years by 0.65 percent, affecting the Medicare Hospice benefit reimbursement by more than $5 billion in five years. Another rule that would change, which does not require Congressional approval, is the technical way market basket rates are read, additionally impacting reimbursement by more than $2 billion.The regulations would also increase the time between on-site surveys, from its current six to eight years to 10 to 12 years. Hospice reimbursement cuts would hinder quality end-of-life care that saves the Medicare system more than $2,300 per patient in the last year of life, according to a Duke University study published in Social Science & Medicine, and come when hospices expect more patients as the Baby Boomers age. Hospices, page 31 It’s Layoffs And A Lawsuit At ARC In The Twin Cities BY MICHELE DONOHUE It’s Layoffs And A Lawsuit At ARC In The Twin Cities BY MICHELE DONOHUE he American Red Cross (ARC) can plan for natural disasters, but the newly merged Twin Cities chapter in Minneapolis, Minn., wasn’t prepared for two waves of layoffs, an age and sexual discrimination lawsuit and a crippling financial market -- all during the past two years. T Confronted with a $2-million deficit, the Twin Cities ARC announced 11 employee layoffs for the chapter that serves more than 130 cities and 2.5 million people in Minnesota. The layoffs come as the chapter organized its $10 million fiscal year 2009 budget and goals, according to chapter CEO Jan McDaniel. Another four open job positions will not be filled in addition to the 11 layoffs, reducing staff size to 80 employees.The chapter cut 24 employees last year. “Unfortunately, when it came to lower donations and lower earned revenue, and look- ing into 2009 and saying we have to be conservatively aggressive, it was really about personnel costs at that point,” said McDaniel. She said that the chapter saved some money by streamlining business operations and outsourcing professional services when the St. Paul and Minneapolis chapters merged in 2006. The chapter has been using a financial reserve to cover the deficit and using interest income to pay salaries. But the investments are declining with the stock market slump, leaving the organization with a smaller financial base. Unrestricted individual contributions declined from nearly $2.2 million in 2006 to $1.3 million in 2007. Restricted individual contributions soared, from $32,016 in 2006 to $238,899 in 2007. Corporate and foundation funding increased more than $300,000 in that year, but doesn’t match the contributions lost Twin Cities, page 8 THIS FRONT PAGE NEWS IS FOR YOU The first custom Visa program for smaller organizations has a $100 donation waiting for your group. Call 1-866-747-7488 or visit www.cardpartner.com. Classified Manager Ellen Helms ellen@nptimes.com www.nptjobs.com Corporate John McIlquham President & CEO Paul Clolery Vice President/Editorial Director Willy Morgan Publisher Hospices Put On Life Support BY MICHELE DONOHUE 4 Who When Where How What? 7 Idol Charities Still Waiting For Funds BY MICHELE DONOHUE Executive Offices Mack-Cali Lake View Plaza 201 Littleton Road, 2nd fl. Morris Plains, NJ 07950 (973) 401-0202 Postmaster Mail address changes to: THE NONPROFIT TIMES PO Box 1145 Bellmawr, NJ 08099-5145 THE NONPROFIT TIMES is published semi-monthly A one-year subscription is $65 US, $89 US Canada and $129 US for international. The NonProfit Times (ISSN 0896-5048) USPS #001-548 is a publication of NPT Publishing Group, Inc. Periodicals postage paid at Morris Plains, NJ and additional entry points. Unsolicited manuscripts are welcome, but The NonProfit Times does not assume responsibility for their return. None will be returned without a self- addressed, stamped envelope. No material in this publication may be photocopied or reproduced in any form whatsoever with out permission of the Publisher. Views expressed by independent columnists or correspondents are theirs and do not necessarily represent the views of NPT Publishing Group, Inc. © 2005 NPT Publishing Group, Inc. 34 United Way Refocusing On Programs, Reducing Affiliates BY MARK HRYWNA COLUMNS OPINION GENERAL RAMBLINGS Heck Of A Job BY PAUL CLOLERY 20 24 28 BOARDS Who’s Next? BY DENNIS C. MILLER NPT WEB-ONLY CONTENT Go to www.nptimes.com to access these Web-only columns. Eleanor Clift No matter who wins the November elections, President George W. Bush’s faith-based initiative is likely to continue. STREETSMART NONPROFIT MANAGER Play On Words BY IRV KATZ Three Corners BY THOMAS A. MCLAUGHLIN OPINION TAXING ISSUES Make Endowments Pay BY MARY G. LYNCH Fiduciaries And The 990 BY HARVEY J. BERGER, GARRETT B. GLUTH AND D. GREG GOLLER TECHNOLOGY Don’t Tell The Donor This month, "a fundraiser," the anonymous blogger, calls development professionals to task for doing a poor job in attracting and training a new generation of leaders. Donor Management Software BY SHAUN SULLIVAN DEPARTMENTS 26 33 Ron Sellers A new study shows that most Americans who attend religious worship services have changed where they worship at some point in their lives. Business Briefs Calendar 35 36 NPT Jobs Resource Directory CORRECTION On Page 6 of the May 1 edition, in the sidebar story,“Some Groups Become Landlords,” the fourth paragraph should have read: “Currently housed on one floor at 18th and M streets, IS will occupy three floors at 16th and L streets.” Independent Sector toured approximately 30 sites -- 20 lease options and 10 purchase options -- before boiling it down to seven finalists. JUNE 1, 2008 THE NONPROFIT TIMES www.nptimes.com http://www.nptjobs.com http://www.nptimes.com http://www.nptimes.com

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The NonProfit Times - June 1, 2008 First Kroc Center Set To Open It’s Layoffs And A Lawsuit At ARC In The Twin Cities Hospices Put On Life Support Contents Who...When...Where...How...What? Idol Charities Still Waiting For Funds Heck Of A Job Play On Words Make Endowments Pay Donor Management Software Who’s Next? Joining The Masses Online Email Evangelism Three Corners Business Briefs Fiduciaries And The 990 Calendar United Way Refocusing On Programs, Reducing Affiliates NPT Jobs Resource Directory

The NonProfit Times - June 1, 2008

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