November 1996 Philanthropy Journal of North Carolina • 11 Media notebook By Todd Cohen Wall Street Journal covering nonprofits The Wall Street Journal has cre ated a nonprofit beat and assigned it to Monica Langley, a lawyer and for mer Journal reporter. Langley who is based in Knoxville, Tenn., already has filed some hard-hitting stories on the sector. On Sept. 30, for example, the Journal reported that NationsBank Corp. in Charlotte, as executor of the estate of Georgia editor and publish er who died in 1945, had agreed to establish a charitable trust that final ly would carry out the publisher’s will directing that the bulk of his wealth be used to help poor blacks with medical care. Langley had reported several days earlier on complaints by family members about “the original execu tor’s practice - continued by NationsBank of Charlotte, N.C., which took over the estate in 1991 - that still stalls any payments to blacks until the last of Mr. [WT] Anderson’s heirs are dead.” The original bequest of $600,000 “has grown at a paltry rate of less than 3 percent a year to only $2 mil lion, a sum that the [state] attorney general’s office says is as much as $2.9 million lower than it should be under conservative invetsment prac tices,” the Journal said. “Furthermore, the executor was pay ing federal income taxes on the estate - even though charitable trusts aren’t required to make such pay ments.” NationsBank “doesn’t dispute mistakes were made - indeed, it agreed to reimburse the Anderson account for $277,214 for the federal income taxes that were mispaid either by it or predecessors,” the Journal said Sept. 27. “But the bank says it has followed the letter of the law and is making efforts to resolve the matter amicably with the heirs.” After the first Journal story, NationsBank said it would begin making annual contributions of $100,000 to an advisory committee the bank wfil set up to carry out Anderson’s trust. An Anderson descendent said the plan was “too little, too late.” Hospital mergers On Oct. 18, in a story by Lan^ey and another reporter, the Journal reported on the binge by for-profit chains to buy nonprofit hospitals. “The chains promise titter cost control and the bottom-line focus being demanded by employers, insurance companies and health- maintenance organizations,” the Journal said. “They maintain, as well that they offer greater efficiency, more-standardized care and better customer service. “Opponents, however, fear hand ing over control to far away execu tive of what is often a prized commu nity fixture. [State] attorneys gener al w'orry that cost control will cut into charity care and preventive medicine. Others fear that in doing these deals, officials of nonprofit hos pitals may be unequal to the task of negotiating with big corporations’ high-powered lawyers, or tempted by fat bonuses to sign away their hospi tals for less than fair value. Some communities also decry the diversion of profits to out-of-state coffers.” Civic joumalism The Wall Street Journal on Oct. 18 also reported on a major initiative by the Pew Charitable Trusts in Philadelphia to influence a growing number of newspapers in the U.S. by funding “civic journalism” projects that aim to reconnect readers with their communities. “With $3.8 billion in assets,” the Journal said, “the Pew foundation has had quick success spreading the gospel,” and since 1994 has helped fund “unusual experiments to make [more than 30] newspapers, their communities and their readers part ners working to improve society.” The Journal also reported that “some journalists argue that the Pew foundation is pushing the press in the wrong direction - one that turns newspapers into advocates and dis courages reporters from exposing wron^oing and failure. At the same time, even some of the strongest pro ponents of civic journalism are reluc tant to accept money from Pew.” Bald Head erosion A controversy over artificial beach protection at Bald Head Island has been fanned by Hurricane Fran, The New York Times reported Sept. 24. Conservationists fear the September storm will prompt other beach communities to seek a state waiver like the one Bald Head received last year from a state policy outlawing jetties, sea walls or other obstructions to the natural wearing away of sand, the Times said. Bald Head subsequently built 16 huge sand-filled tubes along the shoreline. Conservationists say local ero sion-prevention efforts likely won’t succeed and can starve nearby beaches of sand that otherwise would shift naturally. “With the hurricane, probably the pressure is going to be enormous for these types of tubes up and down the coast,” Todd Miller, executive direc tor of the North Carolina Coastal Federal Federation told the Times. Look for MEDIA, page 13 Change Continued from page 10 communities and dig deeper into social concerns. Critics, however, say civic journal ism simply creates the illusion of depth and community connectedness to cloak a widespread retreat on the part of the news media from the hard and patient work required to provide daily coverage of the struggle to make our communities better places to live and work. Readers and viewers should indeed be able to get what they want from the news media - including a daily fix of crime and gossip. But the The PhOanUinipy Journal BoUUHjF DiriKltillS Frank Jr, Mel Bnoe Jr. ' RW WORONOFf Toa> media also should deUver news and information that will help people sort out what’s going on in the world and in their communities - even if the “need” for that information doesn’t rank high in a focus group or market survey. As news organizations strug^e to redefine their role in our communi ties, they have a powerful opportuni ty to make a difference by giving their customers news and information that truly helps them become better par ticipants in community life. And people working in and with the nonprofit sector have an equally powerful opportunity to help the media better understand the crucial role that philanthropy - nonprofits, foundations, voluntarism, charitable giving, corporate giving and fundraising - plays in making our communities better places to live and work. Todd Cohen Journal launches Webchat Surfers on the World Wide Web soon will be able to participate in online Web chat with newsmakers from the nonprofit world at Philanthropy Journal Online. Philanthropy Journal Online, an electronic arm of the Philanthropy Journal of North Carolina, will host its first online Nonprofit Web Chat on November 18 when Don Wells, statewide coordinator for Duke University’s certificate program in nonprofit management appears in the Journal’s Webchat room. Wells will be present in the Web room, virtually speaking, from 2 p.m. to 4 p.m. He will be interviewed by Sean Bailey, Journal’s director of new media. The public is invited to participate in this “virtual talk show^” which rep resents an experiment for Philanthropy Journal Online. Web chat is a relatively new addi tion to World Wide Web technology. To participate, computer users will need to have a World Wide Web browser that is capable of handling “forms.” This type of brow'ser includes most Netscape and Microsoft browsers and version 3.0 of the America Online browser. Webchatting does not require a participant’s con stant attention. In fact, one can easily “tune in” to the conversation, follow its drift whOe doing other activities, and then jump in and ask a question or make a com ment when moved by a topic. Web surfers will be able to partic- Don Wells ipate in one of three ways. First, someone wanting to participate may visit Philanthropy Journal Online’s site at http://philanthropy- joumaI.org and follow the links to the Web chat room. Once there, partici pants may post a question for Wells to answer during his appearance. Second, computer users may come to the Web site during the inter view. After arriving at the site, partic ipants should follow the links and directions and read the interview as it has been unfolding. At the appropri ate time, anyone may jump in and ask a question or make a comment. Computer users who can’t make it to the live event may come to the Web site later, read the transcript of the interview and ask any additional questions by sending email to Wells. For information, send email to sbailey@mindspring.com Kidder Continued from page 10 its who focus on ethics. JOURNAL: And you’re saying you’d like to see more of that explicit focus? KIDDER: Yes, absolutely. Let me tell you why I am so passionate about these issues. In 1989, when I was a columnist with TYie Christian Science Monitor, I was one of the first reporters to tour the Chernobyl nuclear power plant [in Russia after the explosion]. The story I pieced together from the people I visited can only be described as a moral melt down. There were two engineers who basically performed an experiment. They h^ to override alarm systems. There was talk of guns being held to people’s heads...Chernobyl was and remains the world’s largest industrial accident. This kind of event and the extent of the damage is new stuff. We could not have done this in the 19th century. All of a sudden, what we’re seeing is technology leveraging ethics. All of a sudden, we’re no longer talking about ethics as a pleas ant diversion. It’s a matter of sur vival. The real risk is that we won’t survive the 21st century with the ethics of the 20th century. So where is the nonprofit sector in all of this? It pours money into educa tion, the environment. But where is the sector in this big agenda item for the 21st century? Interestin^y corpo rations are a bit out in front of the curve on this. They are funding char acter education and are teaching ethics. In that sense, there is some thing going on that, fortunately is changing. JOURNAL: The nonprofit sector has a reputation for being more ethi cal than the for-profit sector or gov ernment. Do you buy that? KIDDER: Yes, I do. Interestingly, because of the charitable impulse and the fiduciary responsibility of han dling someone else’s money, we [non profits] are held to a higher standard. People will forgive politicians major character flaws or businesses. But they are not so willing to forgive the nonprofit sector. JOURNAL: What would you like to see happen to create more of a focus on ethics in the sector? KIDDER: What we most need ri^t now is a language - a language of public discourse that allows people to talk about ethics without sounding like they are from the 19th century or some fringe political group or simply naive. There are ways to address these issues. ’When you look at the world through the lens of ethics, you see things you normafiy wouldn’t see. And the sooner we develop that lan guage, the better. JOURNAL: Do you think people can agree on a common set of ethical standards? KIDDER: You know, the topic that got us started at the institute was a book called “Shared Values for a Troubled World.” We did interviews in many different countries with many different kinds of people - black and white, old and young, rich and poor. We asked, ‘If you could formu late a global code of ethics, what would it be?’ And we ended up talking about ei^t values we have in com mon as a world. 'They are: love/car ing, truth/honesty: freedom (which was talked about in every cmmtry in the world but the U.S. Here, we take it for granted); fairness/equity; commu nity/unity; tolerance; responsibility/accountability; and something I call “respect for life,” which relates to not killing and pre serving the environment. At the institute, we are the educa tion partner for the Council on Foundations. And as we do these seminars for foundations and for cor porate groups, military academies, schools - we’ve done seminars for about 5,000 people at this point in seven or ei^t different countries - you find these things so common, that you are forced to conclude that there really is a set of shared moral values. JOURNAL: Can nonprofits recov er the public trust they’ve lost through such things as the Aramony scandal? KIDDER: I don’t know if the sec tor has lost public trust. Peopie have become more astute in their giving. And they know they can get ripped off in the nonprofit sector - unfortunate ly I think it helps to have organiza tions out there like Independent Sector, so people know that nonprof its can police themselves. But we have to be more proactive. The oppor tunities for scams are now enhanced because of technology And we have to be very aware of efforts to take away the tax benefits of nonprofits. JOURNAL: What are the major forces that shape people’s ethics? KIDDER: 'lliat’s a huge question. In the past, it’s been a three-legged stool. And the legs have been family, the religious entity and the communi ty, as typically represented by the school. I think you can argue that two of those legs have been kicked out and the whole thing today gets thrown back on the community - the schools. And the schools are saying they can’t handle the whole burden. JOURNAL: Is there anything you’d like to add? KIDDER: Getting to the idea of what other countries think of us and the importance of our third sector, one of the things that communism was almost perfect at was destroying a sense of ethics within individuals. Law and government becomes your enemy so you try to find a way around and through that thicket. When you take the controlling mech anism off of that, in many of those [former Communist] countries, the ethical atmosphere is at rock bottom. At the same time, these countries are deeply interested in becoming part of the European Union and the West. ’They’re saying, “We know there is this thing called ethics that matters in the business community How do we get it?” I think we have a tremendous opportunity to, I wouldn’t say export ethics, but to export ethical concep tions - the decision-making models, what we call in our Institute “ethical fitness.” And that is what the non profit sector is all about - creating those structures for a civil society It really is our third sector. COVITZ Continued from page 10 dures, long-range and strategic plan ning, writing'improving case for sup port, writing/analyzing mission state ment, prioritizing responsibilities, development references, records and financial reporting, computers, hard ware and software for the job, board relationships, administrative rela tionships, staff relationships, self development/career planning. • Volunteers - role of the board in development, role of development committee, selection and orientation, management of volunteers for special events, fundraising. • Methodology - annual cam paigns, direct mail, major gifts, grant writing, capital campaigns, special events, planned gifts, memorid and honor gifts, corporate support, foun dation support, staff/employee cam paigns, phon-a-thons/telemarketing. • Donor recognition - gift clubs, premiums, recognition. • Marketing - public relations vehicles, relationships with the press, donor publications, newslet ters, annual reports, organizational image/advertising. The mentor evaluates the part ner’s level of expertise, and the part ner indicates where help is needed. The two sets of responses are com piled and the mentors and their part ners are matched. Because the 'lYiad chapter serves a wide geographic area, matches also are based upon the proximity of the two participants. The mentor’s responsibilities include establishing times, dates, and locations of meetings; goals and objectives; maintaining confidentiali ty of any shared information; and working with the partner for one year. The partner’s responsibilities include attending meetings; estab lishing goals and objectives; report ing on progress at each quarterly meeting; and working with the men tor for one year. At the end of the year, both the mentor and the partner complete an evaluation form that will be used to refine and improve the program. 'This new program has many ben efits. Experienced fundraisers get a chance to reinforce their skills while enjoying the satisfaction of helping newcomers become confident in their work. 'The partner has the benefit of learning from a professional who has “been there and done that.” It also enables the partner to avoid costly mistakes that inexperienced practi tioners often learn first-hand. 'The mentoring program is another one of the benefits of NSFRE membership.