18 • Philanthropy Journal of North Carolina
September 1993
Senate
Continued from page 16
But not everyone is convinced that
the new law will work to curb
fundraising abuses.
“I think it just adds to the admin
istrative burden of nonprofits rather
than helping to deter people from ille
gal activities,” says Jack McGee, gov
ernmental affairs consultant for the
state March of Dimes.
To address public concerns about
charities, McGee favors beefing up
fundraising laws already on the
books and hiring more staff for the
state’s SoUcitation Licensing division,
which grants licenses to nonprofits
and professional fundraisers.
The state currently has two peo
ple to regulate the roughly 1,280 non
profits and 190 professional fundrais
ers that have applied for licenses in
North Carolina.
Others had more specific worries
about the proposed new law.
Winston-Salem fundraiser Whit
ney Jones objects to a section of the
bill that would require charities to
inform prospective donors that
fundraising licenses are available for
inspection from the state.
“The impact that has on potential
donors is to make them thiiik twice
about the appeal itself,” says Jones,
who is president of the Triad chapter
of the National Society of Fundraising
Executives. “It looks like the govern
ment is warning them that there is
something to be careful of.”
Despite these concerns, groups
such as NSFRE have not opposed
Sands’ bill. Instead, they are focusing
on making sime that final versions of
SB 940 are sensitive to the needs of
nonprofits.
Lionel Randolph, chief of the state
solicitation and licensing division, is
confident that a final bill will meet
\Wth broad public approval. He says
that earlier attempts in North
Carolina to rewrite the Charitable
Solicitions Act were overturned by
the United States Supreme Court as
unconstitutional because of interfer
ence with First Amendment protec
tions of free speech.
By contrast, “this [new version]
should be a very fair bill for aU con
cerned,” Randolph said.
REGULATING CHARITABLE SOLICITATIONS
This version of SB 940, which is designed to strengthen North Carolina's two-decade-old
Charitable Solicitations Act, passed the state Senate in July:
• Intent: "To protect the public by requiring full public disclosure of the identity of persons
who solicit contributions from the public, and of the purposes for which the contributions
are solicited and the manner in which contributions are actually used."
® Requires: Charitable organizations and sponsors to apply for licenses to raise funds and to
provide information on tax-exempt status, names of officers, board members and other
financial information.
• Fees: Raises the minimum licensing fee from $25 to $50 and the maximum from $100 to $200,
depending on the amount raised for charity. Also increases bonding levels for fundraisers from a
$20,000 maximum to $20,000, $30,000 or $50,000, depending on the amount raised.
• Penalties: Makes failure to apply for a license or follow rules a felony, rather than a misdemeanor.
• Exemptions: Fundraisers seeking contributions for religious purposes; local, state or federal
government agencies; accredited educational institutions; licensed hospitals; noncommer
cial radio or television stations; groups that received contributions of less than $10,000 per
year and did not pay officers, trustees or professional fundraisers.
For information on fundraising licenses or to see files on licensed nonprofits and fundraisers, contact
the NC Department of Human Resources Solicitation and Licensing division, (91 9) 733-4510.
Charity grows in hard times
National survey shows 6.8 percent rise
in contributions to nonprofits
The annual Giving USA report by
the American Association of
Fund-Raising Counsel shows
individuals gave 82 cents of
every dollar contributed to tax-
exempt organizations in 1992.
Giving by individuals and foun
dations increased over 1991 lev
els, while giving by corporations
remained static.
D espite lingering concerns
about the national econo
my, giving to charity
remains a popular American pastime.
A new survey by the American
Association of Fund-Raising Counsel
Inc. in New York City shows individu
als donated more of their income to
nonprofits in 1992 than at any time
during the past 20 years.
The just-released Giving USA sur
vey shows giving by Individuals
reached $101.8 billion last year - an
increase of 6.8 percent over 1991.
Eight-five to 90 cents of every
charitable dollar came from individu
als. Funds donated by individuals to
nonprofits added up to as much
money as the conntry spent on gas
and oil last year, the survey says.
Giving by foundations rose to
$8.33 bilhon in 1992 - an increase of
7.9 percent - while giving by corpora
tions remained at $6 bilhon.
Among the most popular causes
were organizations dealing with the
environment and wUdUfe. Giving to
those organizations rose by 6.5 per
cent in 1992 to $3.1 billion - the
largest rate of increase found by the
survey.
In other areas, giving increased
5.2 percent to $56.7 billion for reli
gious organizations; 5.9 percent to
$9.3 billion for arts and humanities;
and 4.2 percent to $14 bilhon for edu
cation.
The survey shows health-related
programs also received more money,
with giving up 5.8 percent over 1991
to $10.2 billion last year.
A trend toward fewer donations
for human service organizations was
reversed, with giving chmbing by 4.2
percent to $11.6 bilhon in 1992.
The opposite pattern occured in
giving to international affairs. After
rising in 1991, donations to interna
tional charities feh by 2.3 percent to
$1.7 bilhon in 1992.
In addition to tracking giving pat
terns, the survey also reflects the
growing influence of the nonprofit
sector.
According to U.S. Census data
used in Giving USA, the sector
employed 6.7 percent of the nation’s
workforce in 1990, or 3.1 percent of
the total population.
North Carolina ranked 17th
among the states in the number of
residents employed by nonprofits, and
45th in the percentage working for
nonprofits. The survey shows 50,279
Tar Heel residents - or 2.3 percent of
the state’s population - are working in
the not-for-profit sector.
New York was first in the number
of people, and Washington, D.C., was
first in the percentage of people work
ing for nonprofits.
Giving USA shows the smallest
nonprofits - those with assets of less
than $100,000 - are the most rehant
on contributions. Such organizations
derive about half their total revenues
from gifts and grants, the survey
shows.
By contrast, contributions make
up only about 15 percent of revenues
for nonprofits with assets of more
than $50 miihon.
Copies of Giving USA cost $45 and
can be ordered by calling (212) 354-
5799.
Barbara Solow
to
THE NEWS AND OBSERVER FOUNDATION
and the staff of the
PHILANTHROPY JOURNAL OF NORTH CAROLINA
on an excellent publication
O'HERRON & COMPANY
Investment Counsel
1300 St. Mary's Street, Suite 210
Raleigh, NC 27605
Phone (919) 834-9224
FAX (919) 828-7911
WILLIAM L. BONDURANT
BORN: Winston-Salem
EDUCATION: Davidson College, A.B., economics, 1958;
Duke University School of Law, 1961;
admitted to North Carolina Bar, 1961.
PROFESSIONAL:
1962: U.S. Army
1962-67: Davidson College, director of alumni activities
and legal adviser
1976-68: Davidson college, administrative assistant
to the president and legal adviser to the college
1968-1972: executive associate, Mary Reynolds Babcock
Foundation
1973- 1974: Secretary of Administration, North Carolina
Department of Administration (leave of absence from
Foundation)
1974- 1993: Executive director, Mary Reynolds Babcock
Foundation.
Bondurant
Continued from page 17
as dealing with major problems in
society and making a difference by
attacl^gthe roots of those problems.
He learned from his parents that
even a small sum of money can do a
lot to help make the world a better
place.
“If you’ve got $10,” he says, “you
can become a philanthropist.”
His experience at Babcock
showed him that with wealth comes
the abihty - and, he’d add, the respon-
sibihty - to help rectify societal ills.
He beheves that an investment of
$5 mlUion to $10 million can make a
difference in the lives of the conntless
thousands of people helped by non
profits for years to come.
Historically the Southeast, espe
cially North Carolina, hasn’t been
home to lots of people with large
pools of wealth. But the demograph
ics of income distribution have
changed.
“I believe today, because of the in
flow of capital and industry into
North Carolina and into the
Southeast, there are now many more
individuals and famihes who do have
surplus wealth in amounts large
enou^ to create a significant trust or
foundation,” Bondurant says.
Yet many of these people don’t
have a clear idea of how they want
that money spent.
“They wisely are concerned about
the wisdom of leaving all of their
estate to their children or the desir
ability of leaving it all to the IRS,”
Bondurant says. “You can corrupt
both that way.”
But they aren’t necessarily sure of
what to do with their money.
Bondurant’s solution is to use the
money to help reshape the landscape
of society.
Foundations are “social venture
capital,” he says. “They provide the
money to help society get around a
roadblock.”
And he is acutely aware of just
how many roadblocks there are.
“I’m driven so much to do this
work, having read 2,000 grant pro
posals for 25 years” for programs
whose sole purpose is to meet social
needs.
Bondurant wants to use that drive
to show the wealthy how they can
help solve these problems by setting
up their own foundations to give
away money.
His challenge is to help each fami
ly or individual donor create a foun
dation that win be flexible and effec
tive while honoring the donor’s inten
tions and dreams now and for years
to come.
Bondurant beheves setting up and
running a foundation is the most
rewarding endeavor one can under
take with surplus income.
He hopes to persuade two to three
wealthy individuals a year that the
greatest purpose for having earned
surplus wealth in the first place is to
give it away. Indeed, he says he was
recently talking with a family about
the creation of a foundation with
rou^y $30 million in assets.
“The more money you give away
wisely, the more you be stimulat
ed to earn even more so that you can
enjoy giving it away wisely,” he says.
And with BiU Bondurant around,
wealthy individuals across the South
east have someone to call upon to
help them do just that.
To reach Bondurant, call him in
Ralei^ at (919) 571-7050.