April 1997 VOLUME 4, ISSUE 8/ $5.00 A nonprofit newspaper for the nonprofit community Look for us on the World Wide Web ql bttp://phil«hfhropy-ioumal.org OF NORTH CAROLINA Seizing opportunities Nonprofits adapt to increased scrutiny Many nonprofit leaders see increased attention from the media and public officials as a positive development. But they warn that misconceptions about the role of the “independent sec tor” remain in force. By Barbara Solow In North Carolina and throu^out the U.S., nonprofits are increasingly in the spotlight. Public officials and the media are paying more attention to the sector as issues such as welfare reform, health care and education are debat ed. Regulatory agencies are probing the activities of large tax-exempt groups. And a growing number of forums - such as Gov. Jim Hunt’s recent legislative briefing for non profits and President Clinton’s national summit on voluntarism this month - are generating greater public awareness of the role nonprofits play in their communities. THE SECTOR But while they welcome the grow ing recognition of their work, non profit leaders are wary about what they see as persistent misconcep tions about how the sector operates. “I’m concerned any time I see such rapid attention being given,” says Jacquie Kennedy, executive director of the Raleigh-based North Carolina Commission on National and Community Service. “I think it’s very important that we identify the roles, responsibilities and expecta tions about what our resources really are. It’s frightening for a lot of non profits because they don’t have the resources to address what seems now to be a sui^e for them to pick up on what government isn’t doing.” So-called “devolution” - a move ment away from government-funded services in favor of privately-funded initiatives - is creating both danger Look for SECTOR, page 15 James and Mary Semans Enriching the culture by beheving in people For the past 40 years, James and Maiy D.B.T. Semans have support ed arts, cultural and health care organizations in the belief that tal ent can appear anywhere if it is properly nourished. By Kelly Prelipp Lojk Durham When Mary Duke Biddle Trent and James Semans met in 1953, she was a widow with four children and a budding career in public life. He was a distin guished urologist in private practice in Atlanta. Both came from prominent families — hers were tobacco magnates from Durham; his father was a banker in Uniontown, Pa. The couple hit it off immediately, finding they had common interests, par ticularly in medicine and the arts, and a shared love of learning. Within a year of their initial meeting, they wed, beginning a dynamic partnership that continues to thrive. Throughout their marriage, they have remained devoted to their mutual interests and have worked tirelessly on promoting them through their philan thropy B^use of their significant and sustained sup- Dr. James and Mary Duke Biddle Trent Semans in their Durham home. Photo by Kristin FVelipp PHILANTHROPY AWARD port for North Carolina’s nonprofit sector, the Semanses are the recipients of the 1997 North Carolina Philanthropy Award. The couple were scheduled to receive the award, which is sponsored by the Philanthropy Journal, at Philanthropy ’97, the annual conference for the state’s nonprofit sec tor. Joel Fleishman, president of Atlantic Philanthropic Service Co. in New York, has known the Semanses since 1961, while working as a legal assistant for Gov. Terry Sanford. “In my view,” Fleishman says, “no individud philan thropists have had a greater continuing influence on the state of North Carolina over as long a period of time as Jim and Mary Semans have. “Their contributions of time, energy and vision have profoundly shaped the landscape, especially in the worlds of culture and the arts. There are count less institutions in North Carolina that would not be in existence today but for the loving dedication of Jim and Maiy ” In fact, in the last 40 years it is dif ficult to name a significant cultural pro ject undertaken in the state that has not received support from the Semanses. James ^mans is chairman of the Mary Duke Biddle Foundation, estab lished 41 years ago by his mother-in-law to help fnnd charitable activities at Duke University, in North Carolina and New York. Mary Semans is vice chair woman of the foundation’s board of trustees. Mary Semans has been a trustee of the Duke Endowment in Charlotte since 1960 and chairwom an since 1981. The foundation established by her great uncle, James Buchanan Duke, is the largest in Look for SEMANS, page 20 Booming-business Investment advisers court growing sector In the face of rapid growth within the sector, money managers advise nonprofits and founda tions to consider investing in longer-term and less conserva tive ventures. By Kelly Prelipp Lojk Business in the nonprofit sector is booming. 'This news may come as a surprise to organizations scrambling to make ends meet, but a look at the big pic ture shows otherwise: The sector, which for two decades has grown more rapidly than business or gov ernment, has 500,000 charitable non profits whose annual operating expenses account for 8 percent of the national economy. These statistics, however, come as little surprise to the for-profit invest ment advisers and institutions trying to attract nonprofits’ business by offering financial management ser vices specifically for the sector. INVESTING Nonprofits clearly see the value of cultivating donors and raising funds. But to many, thou^ts of re-evaluat- ing investment strategies and diversi fying portfolios seem like a luxury they can’t afford. Roger Hart, who provides accounting services for smaJler non profits from his Chapel Hill office, says many organizations have a way to go in learnhig the basics of money management. “People who work at nonprofits tend to be program-oriented, client- oriented and service-oriented,” Hart says. “They are personally not as interested in financial management and have a tendency to neglect such issues.” When it comes to investing money, financial advisers run into additional difficulties. For example, in discussing investment policies Look for INVESTING, page 11 A new player Group to expand coverage for kids Healthy Kids, a new effort to pro vide health insurance for North Carolina children, hopes to launch a model program this fall. Among its founders are former staff and board members of the Caring Program for Children. By Barbara Solow A new nonprofit modeled on a Florida health-care program aims to reduce the number of uninsured chil dren in North Carolina. Healthy Kids of North Carolina proposes to operate as a subsidized health insurance program for chil dren marketed through the state’s schools. Organizers hope it will become one of seven national demon stration projects funded by a $3 mil lion grant from the New Jersey-based Robert Wood Johnson Foundation. Among the supporters of Healthy Kids are former sMf and board mem bers of the Caring Program for Children - a health insurance program managed by Blue Cross Blue Shield of North Carolina. Founding board members of Raleigh-based Healthy Kids are Connie Mullinix of Flynt Mullinix Health Care Consulting in Chapel Hill; Bob Greczyn, president and chief executive officer of Cary-based Healthsource North Carolina; and Meg Sternberg, vice president of sales and marketing for United Healthcare in Cary. Karen Mortimer - who was tired as executive director of the Caring Program after she spoke out against a decision to give administrative control to Blue Cross - is a consultant to Healthy Kids. MuUinbc says the Healthy Kids program will focus on children of the working poor. “Most uninsured children - and there are now about 127,000 in North Carolina - have parents who have jobs,” she says. “The idea is to sell insurance to families for children who are eligible for the [federal] school lunch programs.” To make the program affordable to Look for HEALTHY KIDS, page 9 Connections 3 Grants & Gifts 16 In April 16 Job Opportunities 24 Opinion 10 People 17 Professional Services...!8 ( NONPROFITS } FOUNDATIONS 1 VOLUNTEERS 1 CORPORATE GIVING 1 FUNDRAISING Joining forces A statewide coalition of nearly 50 nonprofits has formed to lobby tor the needs of North Carolina's children. Expanding the base The Triangle Community Foundation's new Catalyst ini tiative has resulted in $32 million in new endowed funds or deterred gifts to charity. In search of a model The NetDay volunteer effort to wire schools tor the Internet may not be applica ble to all parts of the non profit sector, but it has been successful in expanding the reach of new technology. Dishing out donations Ben & Jerry's ice cream fran chise stores in North Carolina have, in some cases, sur passed their parent compa ny's level of giving to non profits. Celebrity waiters A new nonprofit will enlist volunteers to work as waiters at special fundraising events for charities in North Carolina. • Page 4 • Page 6 • Page 8 • Page 12 • Page 14