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October 1997 VOLUME 5, ISSUE 2/$5.00 A nonprofit newspaper for the nonprofit community Look for us on the World V^de Web at hftpi/7www.pi,org OF NORTH CAROUNA Group says fair-market value belongs to public Coalition forming on Blue Cross conversion By Todd Cohen A broad coalition is forming to advocate on behalf of nonprofit and consumer interests in connection with the possible conversion of Blue Cross and Blue Shield of North Carolina from nonprofit to for-profit status. HEALTHCARE The coalition, tentatively called the Coalition for the Public Trust, is an outgrowth of opposition to a bill considered by state lawmakers in the last legislative session. The bill, backed by Blue Cross, would not have required the nonprofit health insurer to contribute anything to charity in the event of its conversion. However, because of last-minute lobbying by nonprofit leaders and others, action on the bill was delayed pending a study ordered by the state Senate. If Blue Cross converts, members of the coalition want the health insur er’s entire fair market value — which they estimate ranges from $1 billion to $2 billion — to be retained in the form of a new foundation that would support health care for underserved children and families in the state. They estimate that such a foundation would make annual grants of $50 mil lion to $100 million. These nonprofit leaders argue that because Blue Cross is a nonprof it, it has no owners and is adminis tered in the public interest. Should Blue Cross become a busi ness, they say, neither its current managers and customers nor its future owners are entitled to any profit that has resulted from the orga nization’s nonprofit status. Members of the emei^g coalition include roughly 70 nonprofit leaders and others who signed a letter to law makers calling for a new foundation to retain Blue Cross’ entire fair mar ket value; the North Carolina Health Access Coalition; the North Carolina Association of Community Foundations; and the N.C. Center for Nonprofits. Call Adam Searing, project direc tor for the Health Access Coalition, at (919) 856-2568. Asking for more than ever United Way seeks $122 million in state Fundraising campaigns of North Carolina's 74 local United Way affili ates are in full swing. This year, the emphasis is-on increasing leadership gifts of $ 1,000 or more and on edu cating donors about their donations' impact. By Kelly Prelipp Lojk Inspired by the record-breaking success of 1996 United Way campaigns throughout the U.S., Unit^ Way affili ates in North Carolina are geared up for an encore performance. Nationwide, United Way affiliates collected $3.25 bil- Uon in 1996 for 45,500 char ities. The 3.2 percent increase outpaced inflation for the first time in seven years. While giving in all geographic regions rose, according to United Way of America, the Southeast saw the greatest growth, 5 percent. J. Michael Cook, chairman of the board of governors of the United Way of America, attributes the success of FUNDRAISING J 1996 fundraising cam paigns to a robust economy and new stan dards developed since the 1992 scandal, when national United Way President William Aramony resigned and later was comicted of misusing hundreds of thousands of dol lars in donations. Local United Way affiliates are tak ing advantage of the booming North Carolina economy and United Way’s new accountability standards to focus on two fundraising strategies in partic ular: increasing leadership gifts, which ai-e individual donations of $1,000 or more, and educating potential donors about the impact United Way agencies have on the community In North Carolina, the 74 local United Way affiliates raised more than $115 million. ’This year. United Ways are tiying to raise more than $122 mil- Uon in the state. (See chart, page 15.) On average. United Ways in the state are trying to raise 6 percent more Look for UNITED WAY, page 16 The South's unfinished business Year of conferences to focus on racism, poverty inequak^ Foundations and nonprofits with roots in the South are plan ning and sponsoring a yearlong series of meetings on some of the region's thorniest issues. The first conference will be in Chapel Hill on Oct. 27-28. By Leslie 'Waugh Chapel Hill Despite advances made in race relations during the past several decades, the work to end discrimina tion and the social problems it breeds isn’t over yet — not in the U.S., and especially not in the South. That is the consensus of several foundations and nonprofit organiza tions based in the &uth that have joined forces to provide a forum for grassroots activists, poUcyraakers, educators and others to explore new ways to tackle old problems: racism, poverty and inequity. This month, the Center for the Study of the American South at the University of North Carolina at Chapel HiU will host the first in a series of six conferences designed to raise awareness about communities’ successes and failures in the strug gle to end discrimination. “Unfinished Business: Overcoming Racism, Poverty and Inequality in the South” will be held Oct. 27-28 at the Friday Continuing Education Center in Chapel Hill. The invitation-only meeting will bring together corporate executives, jour- naUsts, lawyers, nonprofit managers, academics and activists from across gender, race and class lines to ham- SPEAK M@W AGAINST THE GENERATION BEFORE THE CIVIL RIGHTS MOVEMENT IN THE SOUTH JOHli ECEilTOPi Speak Now Against the Day inspired non profit leaders in the South to design a series of conferences to take a '90s look at events of the 1930s, '40s and '50s. mer out fresh strategies lor tackling deeply ingrained social issues that have plagued the South — and the nation — for decades. WilUam Winter, former governer of Mississippi and a member of President Clinton’s Initiative on . Race, will deliver the opening keynote address. Other panelists include Elaine Jones of the NAACP Legal Defense Fund; Chuck Stone, a journalism professor at UNC-CH; and George Autry, president of MDC Inc., a research insti tute in Chapel Hill. 'The Chapel Hill confer ence is the kickoff lor sub sequent meetings to be held through late 1998 in Richmond, Va.; Atlanta; New Orleans; and Memphis; and closing in Birmingham, Ala., with a call-to-action conference designed to last several days. The yearlong series will explore — and move beyond — the period from the 1930s throng the ’50s, an era that quietly set the stage for the tumultuous eM rights movement of the 1960s. A goal of the series is to create a new agenda for improving race relations in the 1990s and beyond. In addition to roundtable discussions, organizers want tangible products to emerge from the conferences, such as an hourlong documentary program, a book or report on race relations and tools to use in pubhc teaching schools. The lead sponsor for the series is the Jessie Ball duPont Rehgious, Charitable and Educational Fund, based in Jacksonville, Fla., which has contributed $250,000 for the series. The Southeastern Council of Fbundations, the Southern Education Look for CONFERENCE, page 2 Reform or setback? Welfare law raises issues for nonprofits The North Carolina legislature has finally reached a compromise on welfare policy. What are the implications for the state's non profit community? By Rachel Mum Capping its second longest ses sion ever, the North Carolina legisla ture reached a budget agreement at the end of August. Central to this agreement is an accord on welfare, under which 13,000 of North Carolina’s approximately 84,000 fam ilies on public assistance will be sub ject to new regulations. LEGISUTION The compromise stipulates that counties with a combined total of no more than 15.5 percent of the state’s welfare recipients will be allowed to construct their own welfare pro grams, including determining eligibil ity criteria and level and duration of benefits. POot, or “electing,” counties will be able to cut welfare spending by 10 percent the first year and up to 20 percent the following year, giving counties a financial incentive to become pilots. To qualify as a pilot, a county first must gain approvd of three-fifths of its commissioners. It then must sub mit a detailed welfare reform plan to the state Department of Health and Human Services. The department will make recommendations to the General Assembly, which has final Look for WELFARE, page 2 1 NONPROFITS j FOUNDATIONS i VOLUNTEERS 1 1 CORPORATE GIVING 1 FUNDRAISING Connections 3 Grants & Gifts 18 In October 17 Opinion 10 People 18 Professional Services..!9 Bridging learning difficulties A nonprofit strives to cultivate greater understanding and tolerance of learning differences. Investments pay off Investments by community foundations are generating high returns. A North Carolina community foundation is among the top performers. Parent involvement Five of 13 winners of a national award recognizing innovation in improving schools are linked to North Carolina. Shopping with a conscience A recent study shows that consumers are increasingly responsive to companies that align themselves with social issues. Facing fundraising challenges An administrator at Blue Ridge Community College examines what's in store for private fundraising by North Carolina community colleges. • Page 4 • Page 6 • Page 8 • Page 12 • Page 14
Philanthropy Journal of North Carolina (Raleigh, N.C.)
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Oct. 1, 1997, edition 1
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