MARCH 1996
VOLUME 3, ISSUE 7 / $5.00
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Passing the torch
New heirs
take
charge
The unprecedented transfer of
wealth underway in the U.S. has
spawned a growth industry of
support groups and services
offering a mixture of financial-
pianning advice and therapy to
heirs.
By Merrill Wolf
Listen...
You may be able to hear it already:
the rustling of money - lots of money -
changing hands.
In the next quarter century,
experts say, Americans will bequeath
more than $10 trillion to their chil
dren and grandchildren - the largest
transfer of wealth in U.S. history
In the philanthropic arena, sever
al groups with vested interests are on
the offensive, starting to focus on cul
tivating newly wealthy baby-boomers
and their children as philanthropists.
Among others:
• Many community foundations
are adding planned-giving experts to
their staffs to court new donors
aggressively. Greater individual
wealth is largely responsible for the
nationwide growth of community
foundations, as more people of all
means discover the tax advantages,
convenience and rewards of investing
in their communities throu^ public
charities.
• Tax professionals and lawyers
are doing a burgeoning business
advising wealthy clients about
planned giving and helping them
start family foundations.
• The Council on Fbundations in
Washington, D.C., is about halfway
Look for HEIRS, page 7
High school 'not enough'
Report urges higher education for all
North Carolina and the South can-
no( count on continued growth
and increased prosperity for
their citizens by requiring only
12 years of schoolhig, a new
study says. It calls for a “new
socM contract on education.”
By Sean Bailey
Chapel Hill
The South’s economic health
depends on the region’s willingness
to ensure that education beyond high
school - including continuing educa
tion aimed at retraining seasoned
workers - is guaranteed for all its res
idents, a major new study says.
In the report. Chapel Hill think-
tank MDC Inc. warns that significant
shifts in the age of the South’s work
force could hurt the region’s econom
ic competitiveness unless high school
students, college graduates and expe
rienced workers receive more educa
tion.
Indeed, MDC is using the report as
the basis for a challenge to civic, busi
ness and nonprofit leaders in North
Carolina and the South to push for
STATE OF THE SOUTH
universal education beyond high
school.
“The State of the South - 1996,”
which will be released this month,
tracks progress made in the region
during the last 25 years and predicts
how the region wiU fare in the next 15
years in such areas as education, eco
nomic development, race relations,
job creation and worker training.
The MDC report calls for a “new
social contract on education” in
which society wiU recognize that at
least two years of specialized educa
tion beyond high school wiU help
reduce poverty, increase prosperity
and improve overall living standards
of the region.
The report’s primary findings
show that those with more education
make more money, and those states
with a better educated work force will
fare the best in the ever-changing and
competitive ^obal economy
One of MDC’s main recommenda
tions is for everyone to receive at
least 14 years of schooling, including
Look for SOUTH, page 15
Sizing up refornns
State health leaders brace for cutbacks
This is the third article in a
Journal series examining non
profits’ changing relationship
with government, a topic to be
addressed at Philanthropy ’96,
the third annual conference for
North Carolina’s nonprofit sec
tor. It will be held March 27 in
Greensboro.
By Barbara Solow
The icy storms that shut down
businesses throu^out the state this
winter wreaked another kind of
havoc in rural Northampton County
Because many state offices were
closed, the Rural Health Group Inc. in
Jackson did not get paid for claims
submitted under the Medicaid health
program for the poor.
“What that meant for us was we
had to go out and borrow $40,000 in
order to cover payroll,” says Bill
Remmes, long-time executive direc
tor of the health group, which runs
clinics and nursing homes serving
25,000 people.
The episode underscored how
THE NEXT REVOLUTION
dependent the clinic is on Medicaid
reimbursements.
“Fbr community health centers,
rural health centers and rural physi
cians who work in areas like ours, it’s
a significant part of the revenues that
keep our doors open,” Remmes says.
“In our case, Me^caid represents 35
percent of our money And Medicare
[the health program for the elderly
and disabled] represents another 35
percent.”
Remmes and many others who
work in rural and underserved areas
of the state are watching anxiously
as Congress considers proposals to
slash government health programs.
They say the cutbacks - vtoch coidd
total $270 billion for Medicare and
$182 billion for Medicaid - could
threaten the survival of health-care
organizations already operating on
the margins.
Nonprofits serving the elderly,
chronically ill and disabled also are
worried about potential changes in
government-funded health care.
Dr. Barbara King (left), a physician at Bakersville Community Medical
Clinic in Mitchell County, talks to the mother of some young patients.
The rural health center is among those that will be most affected by
proposed Medicaid cutbacks.
“We figure that maybe 40 percent
of people with HIV [the AIDS virus]
are getting services throu^ Medicaid
and probably 70 percent of women
who are HIV-positive are getting ser
vices that way,” says Cullen
Gurganus, executive director of the
AIDS Services Agency in Ralei^.
“Already, I know of nonprofits that
are billing for Medicaid that are feel-
Look tor CUTBACKS, page 5
Setting an agenda
Legislative committee launches study of sector
Nonprofit leaders are monitoring
the progress of a new legislative
study committee on the sector
created by the General
Assembly last summer.
By Barbara Solow
A new legislative study committee
on nonprofits has begun its work to
improve ties between the state’s pub
lic and nonprofit sectors.
The House Seleet Committee on
Nonprofits met in Raleigh in late
Januaiy to hear presentations on the
size, scope and role of North
Carolina’s nonprofit seetor and dis
cuss issues tor future consideration.
The committee - eonsisting of law
makers and private-sector represen
tatives - was scheduled to meet again
as the Philanthropy Journal went
to press.
The committee’s opening session
met with mixed reactions from North
Carolina nonprofit leaders.
Some welcomed the committee as
an opportunity for fostering coopera
tion between the pubUe and private
sectors. Others were coneerned
about what they termed the “hostile”
stanee of some committee members.
Jane Kendall, executive direetor
of the North Carolina Center for
Nonprofits, is among those who see
the study group as a potential forum
for the seetor.
“It seems like an opportunity for
nonprofits to be very proactive and
take leadership in proposing things
that might be beneficial for the sector
and the state,” says Kendall, who was
invited to speak to the committee’s
opening session. “The primary
emphasis seems to be focused on
increasing charitable giving. I’m
encouraged by that.”
By contrast, Don Wells, statewide
coordinator for Duke University’s
certificate program in nonprofit man
agement, came away with a negative
impression of the committee’s first
meeting.
“In the enabling legislation [that
created the committee], there were
words like ‘partnership’ and ‘support-
Look for COMMITTEE, page 7
INSIDE
Connections 3
Grants and Gifts 16
In March 16
Job Opportunities 20
Opinion 10
People 17
Professional Services...!8
NONPROFITS
FOUNDATIONS
VOLUNTEERS
CORPORATE GIVING
Environmental
groups rally
Environmental crises and the
perceived anti-environmental
agenda of several state law
makers have prompted a
boom in North Carolina's
environmental movement.
Statewide foundation
cultivates local funds
Creating and building philan
thropic funds in communities
throughout the state is the
mission of the North Carolina
Community Foundation.
Wake physician
tends to community
Raleigh pediatrician Jerry
Bernstein has made philan
thropy an important part of
his work.
L
Insurance agents
fund scholarships
The Independent Insurance
Agents of North Carolina has
pledged $750,000 to endow
business scholarships at 15
colleges in the University of
North Carolina System.
• Page 4
• Page 6
• Page 8
• Page 12
NCCU campaign
picking up steam
The new vice chancellor tor
development is banking on
partnerships with corporations
to help North Carolina
Central University exceed its
$50 million
campaign goal.
• Page 14