JULY/AUGUST 1994 Library of Nr.rf- Kdieio/* VOLUME I, ISSUE n / $5.00 PhilantbropvJoumal Trolling for dollars Solicitors pocket most funds they raise for charities Professional solicitors keep more than 60 percent of the charity funds they raise, according to a recent report. State lawmakers hope to curb that with a new law. But officials predict the problem won’t go away soon. By Susan Gray P rofessional solicitors kept more than 60 percent of the money they raised tor chari ties between May 1993 and April 1994, a state regulator has reported. Some kept as much as 90 percent to 95 percent. Retaining that much money is legal. In 1988,the Supreme Court ruled that solicitors can keep as much as they want of the charitable money they raise as long as they dis close the amount to the charity and to the state soUcitation and licensing section. A bill under consideration by state lawmakers would tighten the REGULATION regulation of professional solicitors. It would not limit how much money they can keep, but, it would require solicitors to identify themselves as professionals to donors. It also would require that, if donors ask how much of a don tion goes to charity, they disclose that informaton. THE NUMBERS The State Soliciting and Licensiqg Section reported on fund raising by 47 hcensed solicitors oper ating in North Carolina, although at least twice that number of sohcitors probably work in the state, according to people familar with the solicitation industry. “Oh, there’s more!” says Lionel Randolph, chief of the St^e Soliciting and Licensing Section. “Absolutely no doubt. We discover them almost everyday.” According to the report, only 10 of the 47 solicitors gave more than halt the money they raised to charity. Only one. Response Djmamics Inc. of Virginia, gave more than 75 percent. In comparison. United Way affili ates in North Carolina give an aver age 88 percent of the funds they raise to charity, Randolph says. “The stats here are very dismal,” he says. “First of all, the gross amount raised has decreased by about $1.5 million. However, they more than made up for that by returning even less to their sponsors. Look for REGULATION, page 16 Making choices Food banks harvest software gift Two companies each offered to donate a software system to connect 185 food banks that are members of the national Second Harvest network. The two offers left Second Harvest with some difficult decisions. By Todd Cohen 5 econd Harvest, the national network of 185 food banks, is going hi^-tech. Thanks to a gift of software from Lotus Development Corp. in Cambridge, Mass., members of the Chicago- based nonprofit soon will be plumed into one another’s computers. Deciding how to divvy up the nearly 900 million pounds of food distributed each year by Second Harvest will be speeded through electronic messages, which are quicker and less costly than phone calls, faxes or mail. Second Harvest’s leap into the TECHNOLOGY electronic frontier, however, did not come without some tough choices. In addition to the offer of ec;Mail from software giant Lotus, Second Harvest had received an offer of software from Xcellenet Remoteware in Atlanta. The two offers were worth an estimated $100,000 and $200,000, respectively - for the software itself and technical Look for GIFT, page 21 Illustration by Margaret Baxter Public journalism Rebuilding communities throng media As newspapers lose readers and the public’s trust, and as communi ties face increasing social prob lems, some foundations are funding efforts to better plug newspapers into their communi ties. Advocates of “public jour nalism” hope that a more engaged media will help reunite communities. By David E. Brown A newspaper photographer /j happens upon two men hav- / ling a heated argument. One is brandishing a gun. Does the pho tographer try to mediate? Or play objective observer and fire away with the camera? And if he does the latter, is he a good journalist or a cop-out? A Congressional candidate releas es a tongue-in-cheek Top 10 list of reasons her opponent is a scoundrel. Is it just too cute for the newspaper not to publish? Or is she leading the public by the nose with a publicity stunt? Is “Man Bites Dog” enough? Or should the press be helping man and dog work out their differences for the good of the community? “Traditionally, a newspaper just kicks butt, and there’s no obligation beyond that,” says Davis “Buzz” Merritt, editor of the Wichita Eagle. “I like the idea of the journalist as a fair-minded participant. We need to see that public life goes well. Clearly, just telling the news doesn’t do that.” Says Ferrell Guillory, associate editor of The News & Observer in Ralei^, ‘“We live in a society where communication can fracture people as well as bring them together. Newspapers are very good at criticiz ing, analyzing, holding people to account. But they are not very good at coming up with solutions.” And across the country, they are in trouble. A gradual decline in circu lation that began some 30 years ago continues; 'The news media appear to be going the way of pohticians in the public’s trust. And advertisers, once dependent on newspapers, have effec- Look for MEDIA, page 11 From a whisper to a shout Nonprofit voices sou^t on health care At a meeting sponsored by the North Carolina Center for Nonprofits in Durham last month, experts called on non profits to become more involved in the national debate on health-care reform. On the state level, a new ini tiative to create universal cov erage for North Carolinians by 1995 may provide some open ings. By Barbara Solow Durham A Ithough they have much at stake, nonprofit organiza- / 1 tions have been slow to involve themselves in the national debate on health care. So says Donald Tebbe, a health- HEALTH care reform consultant for the Nonprofit Risk Management Center in Washington, D.C. Tebbe spoke to members of the North Carolina Center for Nonprofits in Durham last month at a special session on health-care reform. “This issue has a greater impact on nonprofits than any Look for HEALTH, page 25 NSIDE Careers 26 Connections 3 Corporate Giving 12 Grants and Gifts 19 Ideas 26 In July/Aug 18 Job Opportunities 24 Opinion 10 People 19 Professional Services...22 R.S.VR 18 Technology 1 Closing the loopholes A proposed update of North Carolina's lobby ing law includes stricter reporting requirements for nonprofit and for- profit lobbyists. Page 4 ^ FOUNDATIONS . f VOLUNTEERS. Happy 50th Preventive As the foundation she measures founded approaches its Like their counterparts 50th birthday, Kate across the country. Tar Bitting Reynolds would be Heel nonprofits are taking pleased to know the Kate steps to avoid potential lia- B. Reynolds Charitable bility problems for direct Trust still is serving poor service volunteers and and needy people and funding health care. board members. • Page 6 • Page 8 giSNDRAiSING What's in a name? Naming a building or program after a donor is a well-inten tioned move, but fundraisers say there can be pitfalls. Page 14