Newspapers / Philanthropy Journal of North … / May 1, 1995, edition 1 / Page 4
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Nonprofits An executive switch Former CBS News President Van Gordon Sauter begins his first non profit job this month as president and general manager of public TV station KVIE in Sacramento, Cal. 4 • Philanthix^yJournal of North Carolina May 1995 Larger lessons End of Aramony trial raises issues Nonprofit- leaders and observers in North Carolina see a number of lessons that can be learned from the recently-concluded trial of William Aramony, former head of the United Way of America. Not least is the role of non profit boards in keeping the public trust. By Philanthropy Journal Staff I A /hen former United Way of America presi- 1 /1 / dent William Aramony was found guilty last V V month of stealing nearly $600,000 from the nation’s biggest charity, the headlines were not as big as when the scandd about his activities broke in 1991. Still, the case involving Aramony - who led the national United Way tor 22 years before resigning in disgrace - has larger ImpUcations that nonprofits in North Carolina and throughout the U.S. still are wrestling with, sector leaders say. A federal jury deliberated for more than a week before finding Aramony guilty on 25 counts of fraud, con spiracy and money laundering. During the trial, prosecutors focused attention on Araraony’s lavish spending on his girlfriends, while the defense coun tered that the United Way board was responsible for tolerating his activities. Here are some reactions to the end of the Aramony trial from nonprofit and United Way lead ers in North Carolina. Lionel Randolph, Raleigh, head of the state Division of Solicitation and Licensing, which is in ETHICS Look for TRIAL, page 5 Dorothy MocNeil Horry and her son, Johnny, walk through the Fayetteville Street public housing project in Durham. File photo e all need to realize that housing is an investment in our future. It is eco nomic develop ment, crime reduc tion and prevention - community-build ing. CATHY COOPER-RUSKA executive director, Greensboro Housing Coalition Housing groups eye federal cutbacks Nonprofit housing groups in North Carolina are concerned that proposed cuts in federal funds will bring progress on affordable housing to a standstill. So they are busy worMng to persuade legislators about the need for their support. By Barbara Solow F or the first time in their organization’s history, members of the Raleigh/Wake Coalition for the Homeless are holding informational sessions with state lawmakers. Although the meetings were not planned in direct response to last fall’s elections, coalition leaders say the new makeup of the General Assembly forms a backdrop to their efforts. “We haven’t talked about the fact that this is happening because the political cli mate is changing, but it’s happening and the political climate has changed,” says Coalition President Boo 'lyson. Nonprofit housing groups throughout North Carolina are taking similar steps to make newly-elected legislators and the public aware of the need to snpport low-income housing. That support is threatened by a pro posed $7.3 billion cut in federal Department of Housing and Urban Development (HUD) funds. When the Philanthropy Journal went to press. Congress was still dis- cnssing HUD funding. Such a cutback Abdul Rasheed could cost North Carolina as much as $73 million in funds for public housing, rental assistance and other services, low-income housing advocates say. Linda Shaw, executive director of the North Carolina Low Income Housing Coalition, estimates the proposed federal cuts could result in 1,000 fewer vouchers for subsidized “Section 8” housing for poor North Carolinians. “We’re definitely looking at a potential increase in homelessness,” she says. “HUD estimates our need for assisted rental hous ing in North Carolina is over 200,000 house holds. Last year we had 17,000 people served in homeless shelters. Given the needs that we already have, the cuts are going to make things a whole lot worse.” In Greensboro - a city that has won awards for its affordable housing initiatives - officials expect to have to scale back low- income housing programs by one-third if fed eral HUD funds are slashed. ‘“The nonprofits aren’t very happy about it,” says city Housing Director Andy Scott. “We have less money to give them. 'They have less money to leverage with private lenders and charitable sources.” Republicans in Congress have proposed Look for HOUSING, page 5 Food bank leaders react to negative press coverage Leaders of North Carolina food banks are taking steps to address what they see as inaccurate and “one-sided” information contained in a recent newspaper article about the Second Harvest national network of food banks. The Chronicle of Philanthropy published a story in its March issue under the headline, “A Troubled Food-Bank Network.” TTie story quot ed critics as saying Second Harvest puts too many limits on the geograph ic areas its affiliates can serve; pro vides too many non-food items and not enough nutritious food; and “sti fles dissent” among its members. Anne Register, executive director of the Metrolina Food Bank in Charlotte and a member of Second Harvest’s national board, says a let ter-writing campaign has begun among food bank members and sup porters - both within North Carolina and nationally - to respond to the published criti cisms. The latest issue of the Chronicle contains eight letters on the subject. “1 think anyone who has had any relationship with Second Harvest will know that [the article] is so full of inaccuracies that it will not do any damage with those good Greg Kirkpatrick friends,” Register says. “Unfortunately, for folks out on the periphery who have not had direct experience with the organization, it could cause some questions.” R^ter says the Chronicle story did not contain enough interviews to give a balanced view of Second Harvest and failed to disclose the bias es of some of the network’s critics. Beyond the question of who was quoted in the story, the criticisms lev eled at Second Harvest are “pathetic,” says Greg Kirkpatrick, executive director of the Raleigh-based Food Bank of North Carolina, which has been a member of the national net work since 1984. “One of the big things in the article was the suggestion - completely undocumented as far as I can see - that Second Harvest is at odds with other anti-hunger groups,” he says. “Nothing could be further from the truth.” Kirkpatrick discounted the idea that Second Harvest does not provide sufficient food or gives too many non food supplies. “What we get from Second Harvest is an incredibly wide variety of foods and non-foods,” he says. “And frankly, some of the best stuff from them is non-food. 1 will gladly accept toothpaste, deodorant, sham poo, cleanser. 'That’s what allows peo ple to stretch their food stamps fur ther.” Register - whose food hank was the first in North Carolina to be certi fied by. Second Harvest - says the geo graphic limits on Second Harvest affil iates allow surplus food supplies to be spread evenly across the whole net work - preventing shortages in some areas. Both Register and Kirkpatrick strongly objected to the notion that Second Harvest members lack auton omy or the ability to speak freely. ‘"There is no way in the world in which this organizatton could operate in a big-brother fashion,” says Register. “It works because we follow a standard, a yardstick tor measuring various things about how to run a food distribution center...There are rules and regulations in any system. If you don’t think it works, you always have the choice to leave.” Barbara Solow BRIEFLY New hot-line for arts advocates Arts groups in search of the latest news on government funding cuts to the arts can call a new information phone line set up by Arts Advocates of North Carolina and ARTS North Carolina. Callers will hear a recorded update of state legislation.Call (919) 406- 8244. Postal rules would alter charity mailings The U.S. Postal Senrice has proposed new rules that would prohibit advertising in mailings sent at third-class nonprofit rates unless the items being advertised were "substantially related" to the organization's mission. The postal service also has released a new design for stamps that charities can use to send third-class mailings. Consumer group moves in Citizen Action, which bills itself as the nation's largest grassroots consumer rights organization, is opening a North Carolina office in Raleigh. Lori Everhart will direct the office. For infor mation, call Everhart at (502)473-7731. Bill would end nonprofit abuses Congressman Robert Menendez (D-N.J.) intro duced legisbtion that would give the public more access to information on nonprofits. The Tax Exemption Accountability Act would cre ate a national clearinghouse offering copies of nonprofit tax returns for a reasonable fee. It also would cap execu tive salaries. New South museum has new home The Museum of the New South in Charlotte has a new home at 324 North College Street. The museum bought the building and will be open for exhibits in the fall. Until then, exhibits will be displayed in Founders Hall Gallery at NationsBank Corporate Center on North Tryon Street. Call the muse um at (704) 333-1887. Hospital makes top 100 list Memorial Mission Medical Center in Asheville has been listed among the "top 100 hospitals" in the U.S. according to Modern Healthcare, a weekly busi ness news publication. Selection of the top 100 was based on statistical mea sures covering finances, operations and clinical per formance.
Philanthropy Journal of North Carolina (Raleigh, N.C.)
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May 1, 1995, edition 1
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