Newspapers / Philanthropy Journal of North … / May 1, 1995, edition 1 / Page 5
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May 1995 Philanthropy Journal of North Carolina Housing Continued from page 4 that federal housing funds be distrib uted in bloek grants to states to cut down on what lawmakers see as waste and inefficiency at HUD. But some North Carolina housing advocates worry that the block grant system will bypass needed programs. Bill Powell, a volunteer tor Trian^e-area nonprofits that provide housing for people with HIV and AIDS, says that federal funds have been the main source of support for housing for “underserved groups.” “The history of North Carolina’s service to HIV housing is extremely poor,” says Powell, vHio works as an engineer for Gail Freeman Associates in Durham. “If [federal] monies are turned over as block grants, we may very well see a fur ther setback.” Federal AIDS housing grants to North Carolina have risen to $1.21 million in 1994 from $395,000 in 1992. “But it may stop there,” says Joan Plotnick, the state’s AIDS housing program administrator. “We could get as much as $1.15 million in 1995 but that is money the federal govern ment is thinking of rescinding.” As for state housing money. Gov. Jim Hunt’s proposed budget contains no mention of the North Carolina Housing Trust Fund - a pool of money that is allocated each year for low-income housing assistance. Shaw of the Affordable Housing Coalition says the fund began with about $20 million in the early 1980s. Since then, housing groups have had to lobby each year for renewed fund ing. “Our most successful year was in 1994, wiien we got about $4 million,” she says. “So that gives you an idea of the level we are at in terms of state support.” The coalition hopes to persuade state lawmakers to provide $7.5 mil lion for the Housing Trust Fund and about $2.5 million in technical assis tance grants to nonprofit housing groups this year. With federal and state housing funds in question, could support from the private sector fill the gap? Not likely, housing advocates say. “'The private sector has not seen this [low-income housing] as a prof itable undertaking; they see it as a risky undertaking,” says Abdul Rasheed, president of N.C. Community Development Initiative Inc., a nonprofit that is trying to raise $30 million for community develop ment efforts across the state. “'The government generally pro vides the hi^-risk dollars necessary to bring the private dollars in. We don’t really get the full investment by the private sector unless public dol lars do the early pre-development work.” Shrinking government support for a wide array of social services means corporations and foundations will likely have less money to give to housing, nonprofit leaders say. Others cite widespread distrust of HUD, the failure of previous federal housing initiatives and waning public sympathy tor anti-poverty programs as reasons why housing is often a hard sell with funders and donors. Still, the picture is not all bleak. Peter Skillern, executive director of the Durham Affordable Housing Coalition, is among those who believe Congressional budget debates may provide new openings for nonprofits. “Housing groups need to look at this as an opportunity,” he says. “If they are going to roll these [HUD funds] up into block grants and give them to municipalities, there is a new opportunity to restructure how we deliver services. I would hope that we can take advantage of that.” The Durham coalition was co sponsor of a “Fair Housing Summit” held April 27-29 that brou^t togeth er bankers, state officials and non profits to discuss affordable housing strategies. Beth Mazcka, director of the Affordable Housing Coalition of Asheville/Buncombe County, says this is a time for action. “Nonprofits are going to have to prove that they have the track record and can provide these services more cheaply,” she says. “That will increase public confidence in invest ing in nonprofits.” “We’re encouraging the United Way to take a leadership role in bringing together the private sector and nonprofits. We’ve just got to be creative in dealing with this [hous ing] issue as a community.” The message that housing groups are trying to convey is that support for affordable housing goes further than bricks and mortar. ‘We all need to realize that hous ing is an investment in our future,” says Cathy Cooper-Ruska, executive director of the Greensboro Housing Coalition. “It is economic develop ment, crime reduction and preven tion - community-building. Part of our role is to say that what we’re doing is all of those things, not just building houses.” Trial Continued from page 4 charge of licensing nonprofit fundraisers: Generally speaking, United Ways return 88 percent of the funds they raise to user agencies. That’s a pret ty staunch, solid record...As soon as 1 can get some more staff [the office will look at disclosure of information by nonprofits]. We will look at those kinds of issues. The whole idea of charitable registration and licensing is to ensure full disclosure. How we can disseminate that information is something we will constantly look at. George Pfeiffer, Asheville, pres ident of United Way of Asheville and Buncombe County; former employee and colleague of William Aramony at the United Way of America in Alexandria, Va.: We’re certainly seeing an increasing demand for accountability and integrity around issues like over head costs, accountability, CEO salaries and just, ‘What’s happening with my dollar bill?’...! think the pub lic scrutiny is forcing boards more and more to exercise more power and give less power to the CEO to the point where the Aramony thing can never happen again...Locally, I’m hearing much more interest in creat ing standardized ways of reporting financial data....I think it [Aramony’s conviction] was good for United Way because it shows the wheels of jus tice are working and they got him. 1 think people were feeling that he could probably get some of those big leader-types to kind of protect him, but it’s saying the system is work- ing...lt was a hiunan tragedy - he was bri^t and capable and had bound less energy - and he had a weakness that went unchecked. He really did create a much stronger system for the United Way than prior to his appointment. But somewhere along the line he started believing the press about how good he was and that he was bigger than common sense. Steve Smith, Durham, director of Undergraduate Studies and assistant professor of public poli cy, Duke University Center for the Study of Philanthropy and Voluntarism: The Aramony trial and the public ity surrounding the initial indictment provided impetus for changes already under way in the United Way. Those changes are going to continue. 1 don’t think this verdict will have that much additional effect...! do think that the other impli cation of the Aramony case is: What are the roles and responsibilities of boards of directors?...lt underscores the need to think throng what those roles are, particularly in large non profit organizations...Many [nonprof its] are facing challenges to their tax-exempt status and a downtium in federal support. So there are lots of pressures being placed on them. 1 think that’s going to continue to lead to greater scrutiny which will inevitably put a focus on the role of the board. Sherry Worth, Raleigh, board member and 1995 campaign chair of United Way of Wake County; trustee of Rex Hospital, Peace College and Children’s Museum About the World: I’m delighted that he was found guilty. What it did for our board is make us more aware of accountabili ty. We were already doing it, but we’re now doing a better job...Our board is a hands-on board. We really have a handle on the situation of what’s going on with the executive staff and funding...Other nonprofit boards found themselves looking at what their bottom line is because, really, when you go out and talk to people about giving to your organiza tion you have to be able to account for where the money goes. At the United Way, we’ve kept [the amount of money that goes into administra tive costs] at 12-and-a-half percent. You have to be able to keep those expenses down to be credible. I think other nonprofits I’ve been involved with are trying to do a better job of that now... Until Aramony, I don’t think people really questioned what the nonprofits were doing with their money. Frank Byrne, Charlotte, execu tive director of American Red Cross Greater Carolinas ch^ter, a United Way agency: 1 think it’s unfortunate that such a wonderful career had to end this way. Mr. Aramony did shape the United Way in great growth for years before the scandal. 1 think it’s equal ly important that the acts of an indi vidual are separated from the work of an organization...! think [the trial and conviction] pointed out to every body that people will be held accountable for their individual actions. 1 don’t know that it [specifi cally] impacted the United Way. I think they made the changes in reporting and accountability long before there was a conviction. Whitney Jones, Winston- Salem, president of Whitney Jones Inc. fundraising consulting firm, and president of Triad chap ter of National Society of Fund Raising Executives: It certainly is indicative of an increasing need for disclosure on the part of nonprofit organizations in terms of how their funds are used. And it’s also indicative of the need for better management on the part of nonprofit boards...! know people within the United Way who say on balance, Aramony’s contributions to the United Way and the whole non profit world have been very high. It’s like anything else that happens in the world today - a rare, hi^y-publi- cized event. In any community, there is probably something like that going on at any time. It’s not indicative of most of the nonprofit world. Maria Mauriello, Raleigh, director of public relations, Methodist Home for Children: Anytime something like [the Aramony trial and conviction] occurs, there may be a feeling in the general public about where the money goes when they make a dona tion to a nonprofit organization. Certainly, I think that the United Way case brings that question into everyone’s mind about where the^ money goes...They should make financial records public - the break down of where the money comes from and where it goes. The Greensboro coalition is work ing on establishing a “lenders alliance” of bankers, nonprofits, builders and others who will work to find ways to increase the number of affordable homes in the Triad. Skillern of the Durham housing coalition says the situation mirrors what happened in the early 1980s, when the Reagan Administration slashed federal housing funds, and nonprofits - including many church groups - stepped in to fill the gap. “Now, not onty are we going to have fewer dollars to deliver services, there will be more demand for services,” he says. “I agree, and think everyone does, that we need a reform of how housing services are delivered...The big challenge is going to be coordina tion and collaboration among agen cies.” Winslow II CoNsiDiNE EXPERIENCE S SUCCESS •Capital Campaigns • Sponsorship Development •Planning • Public Relations Post Office Box 10973, Salem Station Winston-Salem, North Carolina 27108 910- 722-7982 (phone) 910- 722-8671 (fax) Internet: 73145.1750 ©CompuServe, com Hugh Morton, Jr. Video Productions Broadcast-Quality Fundraising Videos and PSAs for Nonprofits 720 Lake Boone Trail Raleigh. NC 27607 (919) 834-8444 Duke University Certificate Program in Nonprofit Management Spring Catalog Available Now For informaHon about courses offered at 13 sites through out North Carolina please contact the following: Course locations •Western N.C. •Fayetteville area • Greensboro, High Point, Winston-Salem •New Bern area •Rocky Mount, Wilson, Greenville area •Wilmington area • Charlotte area • Classes at Duke •Statewide Coordinator Contact John Williams, 800-621-0008 Jennifer Borton, 910-678-7212 Susan Larson, 910-334-5677 Susan Moffat, 919-638-5781 Chet Mottershead, 919-977-3800 Diane Brann, 910-350-3193 Dana Bradley 704-547-3941 Maril)m Hartman, 919-684-3255 Don Wells, 919-732-1648 f Reminder; The deadline to register for Philanthropy '95 Is May 5.
Philanthropy Journal of North Carolina (Raleigh, N.C.)
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May 1, 1995, edition 1
5
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