Nonprofits' risky financing taking toll...

September 28, 2009

Like homeowners and businesses, many nonprofits engaged in what some experts say was risky financial behavior and now are paying the price by eliminating jobs, freezing salaries and taking other cost-cutting measures, The New York Times reported Sept. 23 (see nonprofit finance story).

Republican U.S. Sen. Charles Grassley of Iowa released documents showing leaders of the ACORN community-organizing network transferred several million dollars in charitable and government funds intended for the poor to its affiliates with political and profit-making missions, the Washington Post reported Sept. 25 (see ACORN funding story).

The endowment at Stanford University plunged $4.6 billion last year, or 27 percent of its value, its biggest drop ever, because of a high-risk investment strategy that had produced strong results in the past, the San Jose Mercury News reported Sept. 23 (see Stanford endowment story).

The Minnesota Charities Review Council is revising standards for charities in the state, including a controversial change that would let nonprofits spend more for fundraising and administration, the Minneapolis Star Tribune reported Sept. 23 (see Minnesota charities story).

The Bill and Melinda Gates Foundation is launching an effort to raise awareness about U.S. government programs to improve global health, an effort that includes an ad campaign in Washington State and a web site with personal stories from people who have benefit from U.S. programs, the Associated Press reported Sept. 24 (see Gates Foundation story).

The value of their endowments fell 24 percent at Duke University to $4.6 billion in the fiscal year ended June 30, 19.6 percent at the University of North Carolina at Chapel Hill to $1.77 billion, and 14.6 percent at N.C. State University to $464 million, Triangle Business Journal reported Sept. 25 (see college endowments story).

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