Friday, November 30

Wonkette publishes Paige Roberts photo

From Wonkette:

Paige Roberts is the Executive Director of the Southeast Mississippi Chapter of the Red Cross (and a former television reporter). She, like Everson, is married with two children, so I’m sure they had lots to talk about after they finished bumping uglies other than the fact that her house was destroyed by Katrina (and that the Red Cross was destroying her marriage). Let’s hope they also talked about what to do if she got knocked up, because two senior officials at the national Red Cross told the NY Times that she’s carrying his child. Like, seriously? How open about your sex life at the office do you have to be for your underlings to know your mistress is preggers?

Mississippi Press names woman in Red Cross scandal

Veto F. Roley at the Mississippi Press is breaking the story that Southeast Mississippi Chapter Executive Director Paige Roberts matches the clues given earlier this week by multiple news reports as to the identity of the woman who had an affair with the former leader of the Red Cross.

Multiple attempts Thursday by The Mississippi Press to reach Roberts were unsuccessful. "You will have to ask her about it," Roberts' husband, Gary Roberts, said when contacted Thursday. He is a municipal judge in Gautier.

A call to Paige Roberts' cellular phone was returned by Kiki McLean, who identified herself as a friend. She referred questions to the American Red Cross national office.
You can read the entire story here.

Paige Roberts was in Washington, D.C., on Thursday to attend a previously scheduled national Red Cross conference. The story goes on to say:
According to the New York Post, which quoted unidentified Red Cross executives, the woman involved with Everson lives in Mississippi, is brunette, lost her home during Hurricane Katrina, is married with two children and is a former television reporter.

According to a 2006 profile in The Mississippi Press, Paige Roberts was a reporter at WLOX-TV 13 from 1993 to 1996 and has two children. She is also brunette. The Robertses' home was completely destroyed in Katrina.
According to Foley's report, Barbara Dumas, chairwoman of the Southeast Mississippi Red Cross chapter, said Thursday that Roberts is still employed.

Nothing drives blog traffic like a sex scandal

And if the scandal involves a high ranking official from one the biggest charities in the country who is forced to resign over an affair with a subordinate... that's going to grab a lot people's attention.

This blog experienced one of the biggest spikes ever from individual Google searches on Thursday. Visitor numbers spiked after rumors swirled that the affair resulted in a pregnancy involving a former TV reporter who is working with a Mississippi chapter of the Red Cross.

All day long, I saw visitors coming to the site for the first time after typing in search terms, such as: "Everson affair pregnant scandal Red Cross," or "Red Cross affair made her pregnant" or "Everson resigns pregnancy affair."

It seems clear to me those spikes came from people who were hunting to find the identity of the unnamed woman in the affair. The Nonprofit Times knows the woman's identity, but chose not to publish it for editorial reasons.

...sources inside the organization told The NonProfit Times that the relationship was not a well-kept secret. In fact, according to a staff member with direct knowledge of the situation, Everson’s inner circle had unofficially warned him he was in dangerous territory with the relationship.
One contact of mine at a well known philanthropy paper told me:


"I'm actually not sure how we would handle the publishing of her name if we did have it -- though I think it's telling that the NY Post actually chose not to publish it."
So - I'm torn between conflicting feeling about whether or not publishing the identity of others involved in the story should be made public. I understand that some private issues should play out in private... and I certainly understand that many co-workers (even subordinates) find themselves in office relationships.

My intern finally tracked down the woman's identity and her picture, but I am not convinced publishing it is the best option. So what do you think?

Should we put it to a vote? Do you think bloggers who have the woman's name, identity, or picture of the poorly kept secret should keep it secret or make the name public?

Maybe we should use our Don't Tell The Donor official poll on the right hand side to cast your vote on what you would like to see happen.

Thursday, November 29

Mississippi belle linked to Red Cross scandal

Several media reports are beginning to shed a little more light on the affair that led to the Red Cross firing their leader on Tuesday. The New York Times tells it this way:

A senior executive at the Red Cross who had been hired by Mr. Everson told board members about Mr. Everson’s relationship — with a married woman who is head of a Red Cross chapter on the Gulf Coast. Mr. Everson met the woman on trips that were part of efforts to restore the Red Cross’s reputation there. She is pregnant, two Red Cross executives said.
The New York Post describes the woman as a sultry Southern belle:
The glamorous brunette, a former TV reporter, is an official with a Mississippi chapter of the Red Cross - a position that put her on the front lines responding to the Hurricane Katrina disaster that leveled her own home.
Neither paper published the woman's name.

Wednesday, November 28

Four weeks too late

It's hard to get a lot of respect as an anonymous blogger. I understand that. Why would you trust someone who writes a blog without the accountability of their own personal reputation? That's one of the reasons, I got myself an intern to kick around.

But, come on. That doesn't mean you can simply ignore anonymous blogs altogether and wait for the mainstream media to deliver the news you need.

The security breach at Convio is a perfect case in point. Those of you that read this blog regularly knew back on November 4th that Convio had confirmed the fact that hackers stole password information. During the days that followed, I published no less than 13 entries, I kept in contact with the folks at Convio to ask questions and get official comments, I even posted a detailed analysis on what 6 groups did to notify their members.

I'm not trying to toot my own horn. However, I am shocked by the amount of email I received today from folks who only read about the security breach yesterday in the New York Times. One email was even titled, "BREAKING NEWS" and begged me to notify readers immediately?

Seriously? If anything bad happened, the risk was four weeks ago when the breach occurred.

This isn't news. I'm not sure why the New York Times waited so long to publish their story... Stephanie Strom had to have known this was old news. So, either the timing of the publication is weird or the New York Times just proves once again how blogs have changed the speed of the information world.

Will Red Cross scandal impact fundraising?

Stephanie Strom at the New York Times adds more to the Red Cross story. She reports that Suzy C. DeFrancis, chief public affairs officer for the Red Cross, was told that there had been no threat of a lawsuit. The article also writes:

Since he joined the Red Cross at the end of May, Mr. Everson had traveled around the country, visiting chapters and blood services operations and courting donors. He set ambitious fund-raising targets and, in a conversation about eight weeks ago, said he was concerned about declining donations.
There is also a quote from Trent Stamp at Charity Navigator who said, “This will affect fund-raising, organizational morale and public trust in this organization, which is already dangerously low."

Saucy Red Cross Boss Tossed

My new intern thought it was cute that the New York Post used the headline, "Saucy Red Cross Boss Tossed."

I responded by telling him that he should forget about taking a lunch break today. We have a busy day ahead of us so I went ahead and chained his leg to the desk so that he wouldn't be distracted. I told him if he finds any good angles to the Red Cross story, I will throw him some scraps when I get back from my lunch break.

For me, the most interesting part of the Red Cross story was the irony that Everson's wife is powerhouse lawyer Nanette Rupka Everson - once the chief ethics counsel for the Bush White House. The NY Post points out, "in that high-profile post, she vetted the kind of conduct issues that cost her husband his latest job."

It has also come to my attention to the board learned of Everson's affair from "a senior executive" and he was presented with the "evidence" in front of the full Board.

Tuesday, November 27

Word of Red Cross leader's resignation travels quickly

Late this afternoon, the Red Cross Board of Governors announced on their website that President and CEO Mark W. Everson would be stepping down because of a 'personal relationship.'

It's only been a couple hours and already Google is showing 288 news stories.

Lucky for you, I finally got an intern at Don't Tell The Donor to boss around. I ordered him to read every single story. He rolled his eyes and refused... but at least he gave me this:

**********************************
CNN points out in their coverage that Everson is 53 years old, was paid $500,000-per-year, and perhaps most interesting:

The organization became aware of Everson's relationship with a female Red Cross employee 10 days ago, Chief Public Affairs Officer Suzy C. DeFrancis told CNN in a telephone interview.
Bloomberg describes Everson's previous professional experience as commissioner of the IRS and they reveal personal details about his family:

The former executive is married to Nanette Everson, a former White House lawyer under President George W. Bush who later served as general counsel of the Commodity Futures Trading Commission until last March. They have two children.
And the Nonprofit Times adds some details about emergency conference calls between the executive board and the full board. They also share some rumors of favored replacements:

The rumors of his replacement are already humming. One name is that of Frances Fragos Townsend, who recently stepped down as an advisor at the federal Department of Homeland Security and who was talked about as a possible CEO before Everson.
I'll post more coverage as soon my surprising lazy intern gets through some more articles. Email me if you have any tips about this story or if you have any suggestions on how I can intimidate my intern into working harder and faster.

Red Cross ousts leader after learning of affair with subordinate

This story is just hitting the wires:

The American Red Cross announced today that its Board of Governors asked for and received the resignation of President and CEO Mark W. Everson, effective immediately. Concurrently, the Board appointed Mary S. Elcano, General Counsel, as interim President and CEO.

The Board acted quickly after learning that Mr. Everson engaged in a personal relationship with a subordinate employee. It concluded that the situation reflected poor judgment on Mr. Everson's part and diminished his ability to lead the organization in the future. He joined the American Red Cross as President and CEO on May 29, 2007.

Bonnie McElveen-Hunter, Chairman of the Board of the American Red Cross, said: "Although this is difficult and disappointing news for the Red Cross community, the organization remains strong and the life-saving mission and work of the American Red Cross will go forward. Mary Elcano, who has ably served as our General Counsel for the past five years, will continue to provide leadership, stability and continuity until a successor is chosen."
The married father of two was hired to improve the image of the Red Cross after criticism of how the charity responded to complains over their handling of the Katrina response. If you want to read his statement, go here.

Sunday, November 25

"the silliness of the haters"

After months of trying to ignore Ron Paul, the grassroots fundraising strength of Paul's campaign to be the Republicans' nomination for President, have finally attracted enough attention to shift the level of attacks.

Recently, some conservative activist criticized Paul for accepting a donation from a Nevada brothel owner.

Paul's campaign was surprised to see Hof, flanked by two prostitutes, emerge from a limousine outside of Lawlor Events Center this morning. They arrived with MSNBC journalist Tucker Carlson, who has been traveling with Paul for a piece he's writing for the New Republic.

Ok, hang on a minute, this story was already funny enough but then Tucker Carlson shows up a bunch of hookers in tow, thinking this would be a good image for the campaign!

Some have asked, "Does this mean Ron Paul thinks brothels are a good idea?"

Lew Rockwell, former congressional chief of staff to Ron Paul. He runs a blog called the LRC Blog where he posted these reactions to the recent criticism on November 25 at 9:04 AM.

Well, No, it means that many diverse Americans think that perpetual war, a police state, income taxes, and the suppression of free speech and voluntary commerce are bad ideas.

When Christian Rightists demand that Ron return the money, and accuse him of approving prostitution if he doesn't, will we see the silliness of the haters?

It makes a good soundbite at a time Paul is getting lots of negative pressure despite his strong candidacy... but I don't agree that haters are being "silly," I think they are attempting to be strategic. And they have been very successful in that attempt.

Friday, November 23

Sears sues university over naming rights

Ryerson University in Toronto is celebrating the opening of a new lecture theatre named for clothier Harry Rosen, but Sears Canada isn't too happy about the name of the building.

The Toronto Star reports:

The department store giant is claiming that instead of getting the promised top billing on a building on the downtown campus in exchange for $10 million in donations, it's left with a lousy little plaque in the George Vari Engineering and Computing Centre, named for a guy who forked over half that much.
Sears Canada Inc. is calling for a court order that Ryerson put its name on a building or, failing that, pay an unspecified amount in damages for breaching the contract.

Thursday, November 22

TechSoup's news - so old it's cold

A reader just forwarded me this email (dated Nov. 20th) from TechSoup, one of the leading edge techie types advising the nonprofit world. Why did it take them so long to notify subscribers?

TechSoup By the Cup - November 20, 2007
The Newsletter from TechSoup.org
"Technology served the way nonprofits need it."

***********************************************
CONVIO SUBSCRIBER ALERT:

Convio/GetActive - the service TechSoup uses to manage and distribute By the Cup - is warning subscribers to exercise caution after hackers broke into its systems and stole email addresses and passwords from 92 nonprofit clients.

While the vast majority of TechSoup email newsletter subscribers were unaffected, 3,000 TechSoup subscribers may have had the usernames and passwords they used to manage their email subscriptions stolen.

There is potential for misuse of this information should you use the same email address and password on other personal accounts (e.g, banking, PayPal,Amazon, Web-based email sites, etc.) Convio would like to advise you of important steps that you should take to prevent misuse of your personal information:

* If this email address and password are used together on any other accounts, it is recommended you change your password on those accounts immediately.

The email goes on to warn subscribers to be wary of emails asking for information. They also reassure folks that their privacy is taken seriously.

Yikes. Are they serious when they use words like "immediately" even though they waited almost three weeks to send out this notice? Maybe they should use warn us about the potential problems associated with Y2K?

Tuesday, November 20

Thank you sir, may I have another?

I used to work at a small social service nonprofit that accepted in-kind donations of clothes and food for our case workers to give to their clients. As a development officer, I would frequently get phone calls from a board member who would say something like this:

"Mrs. Smith is on her way over with a car load full of donations. She is a very wealthy real estate agent that the fundraising committee has been trying to cultivate for a long time. Can you meet her downstairs and thank her for the donations when she gets there?"
Believe it or not, I wasn't as cynical as I am today that early in my career, so I would cheerily accept countless bags of crap from rich people who felt guilty about throwing their "gently worn" clothes in the trash.

I honestly didn't mind the senselessness of me spending hours accepting donations, sorting them, and then writing tax deductible thank you letters... only to later throw most of it in the trash myself. Heck, I believed in that organization so much, I would eat maggots if it meant bringing on a new potential major donor.

What did bother me so much was the fact that many of these donors who unloaded their "gently worn" junk walked away with a sense of gratification that their charitable obligation had been made... and therefore never gave a financial donation.

I had this video clip of Kevin Bacon from the movie Animal House in mind when I read this opinion piece by Mark Winne, the former director of Connecticut's Hartford Food System. Winne describes his frustration at the troubling co-dependency between food bank donors and recipients.
Both parties were trapped in an ever-expanding web of immediate gratification that offered the recipients no long-term hope of eventually achieving independence and self-reliance.
He goes on to make this conclusion:
While none of this is inherently wrong, it does distract the public and policymakers from the task of harnessing the political will needed to end hunger in the United States.

The risk is that the multibillion-dollar system of food banking has become such a pervasive force in the anti-hunger world, and so tied to its donors and its volunteers, that it cannot step back and ask if this is the best way to end hunger, food insecurity and their root cause, poverty.
I recommend the article. I'd like to thank one of my favorite readers for passing it on - at this time of year I'm thankful that I have so many great readers in all corners of the nonprofit fundraising industry.

I can't help but think how many other small nonprofits around the country continue to accept in-kind donations they can't possibly use simply because they don't want to tell prospective donors "no" - and by doing so - may actually be prolonging an end to the societal problem they are hoping to cure.

Monday, November 19

BBC Children in Need breaks record

The BBC has an annual fundraising drive called Children in Need.

Last year, they raised £18.3m - with the sum reaching £33m after donations from all fund-raising was collected - and was seen by 8.9 million people at its peak.

It appears that this year is going to break all previous records... with £19m coming in during the 7 hour telethon which featured a performance by the Spice Girls. Organizers estimate the 36,000 donations were made online and 15,000 donations were made using digital TV service... and more than 212,000 phone calls were placed to operators.

Go here to listen to an interview exploring the technical requirements to handle 212,000 donation phone calls in one night.

Sunday, November 18

The Things We Think and Do Not Say

Do you remember that scene in Jerry Maguire where Tom Cruise stays up all night writing a passionate mission statement and then distributes to his coworkers. He called it, "The Things We Think and Do Not Say" and when he walks in to the office the next day everyone gives his a standing ovation... only for him to be fired less than a week later.

I had this movie clip running through my mind when I came across Marsha Gittleman and James R. Rennert's opinion piece on the website of a Long Island, NY newspaper. Gittleman is director of development and public relations at United Cerebral Palsy of Suffolk and Rennert is province director of development at the Cenacle Sisters.

The two of them criticize the inefficiencies of special event fundraisers. They scold honorees who lend their names for fundraising without ever learning about the nonprofit honoring them or the cause. The authors even shame donors who ask, "what's in it for me?" or who attend fundraisers only because of the social status it brings them.

The directors of development come to the conclusion that if we all really care about the biggest percentage of each gift going to the cause, fundraisers should declare a hiatus in special events and return to personal face-to-face solicitations.
On Long Island for too long, organizations have had a misplaced comfort level in selling tickets to an event rather than promoting a cause.
The real target of this opinion piece does not appear to be the event planners, caterers, and silent auction promotion companies... rather the real target of this piece seems to be fellow development directors who have forgotten how to solicit donations based on the mission of their nonprofit without selling donors a ticket to a gala or an event.

Saturday, November 17

Political fundraising can help or hurt candidates image

On Thursday, three researchers from the Ohio State University presented the conclusions of an interesting study at the annual meeting of the National Communication Association.

They tested an idea by showing newspaper articles about a mayoral campaign to 239 adults. Embedded in those news stories were references to the fund-raising prowess of the candidates. Later the participants in the study rated the candidates on several traits, including leadership, honesty, intelligence, and competency.

The liberal candidate who raised the most money was perceived as lower in integrity. However, there was no similar drop for conservative candidates who raised a lot of money. The conservative candidate best at raising money was more likely to be considered "competent" - particularly by conservative voters.

Why the difference? For conservative candidates, successful fund-raising "may signify a great individual achievement, leadership, and loyalty among his supporters," the researchers noted. . . . Similarly, he is perceived as being more competent when he has more money, perhaps because he has done what it takes to win without violating . . . his ideological principles."

"The liberal candidate, however, does not fair so well in the court of public opinion by raising more money," they added. "Across the board, respondents felt the liberal had less integrity when he had more money."
Do you think the same shifts in opinion occur when liberal nonprofit groups publicize their fundraising results?

Thursday, November 15

Coverage of Convio security breach varies

This blog covered the news of Convio's recent security breach closely. We noted that despite Convio's best efforts to notify all 92 nonprofits impacted by the hacker - it seems only a handful of nonprofits made the news public.

Today I came across three stories of the breach that told the story - all with a slightly different tone:

Roger Craver at The Agitator applauded Gene Austin, Convio's CEO for prompt and open recognition and acknowledgement of problems - saying that it was a critically important part of the process of building trust. Roger even thought Austin "deserved a raise."

Compare that to Allan Benamer over at the Non-Profit Tech Blog who was not so gracious in giving Convio a "C-".

Convio gets that “C-” for the late disclosure and for not doing due diligence properly on their GetActive acquisition. However, Dave Crooke did a decent job of answering technical questions regarding the breach despite the fact that he did it on an e-mail list when he should have done it on the Convio site itself. However, Tad Druart, Convio’s Director of Corporate Communications, did a good thing by not only alerting the press but also the blogosphere. It was a calculated decision to be sure, but Tad probably tamped down on the level of blogging cattiness by the likes of yours truly and others.
I have to think Allen is referring to me as one of the others who might have been catty if Tad had not reached out to me to answer questions and offer official statements.

Finally, I thought it was interesting how the brief story on page 32 of the November 15th Chronicle of Philanthropy gave Gene Austin an opportunity to give the money quote... blaming the problem solely on the ghost of GetActive.

Despite the fact that roughly half of Convio's 1300 clients use the GetActive software, Austin told the Chronicle that he thinks the attackers may have focused on GetActive because, in the past, "Convio has put more investment in security than GetActive."

Food depositories report decline in donations

In May of this year, the Wall Street Journal published a story about how food banks across the country have experienced a drop in food donations - by more than 15 or 20% in some cases.I read more this morning about how this pinch is hurting big cities like Chicago:


Food retailers and manufacturers, in other words, are becoming more efficient—wasting less food, mislabeling less often and instituting fewer marketing campaigns—resulting in less food donated to the depository.

The federal government, in the midst of a legislative roadblock regarding the 2007 Farm Bill, is providing less food for the depository. In 2005 the government provided 34 percent of the depositories’ food supply—16 million pounds. However in 2006 the government decreased its donation to 10 million pounds.
Go here for more of the story.

Tuesday, November 13

If you've ever been to Erie, PA

An anonymous donor gave $100,000,000 to the Erie Community Foundation which is to be split between 46 local charities.

Each of the charities will get about $1 million to $2 million. The recipients include a food bank, a women's center, a group for the blind and three universities.
The city — and the entire county of 280,000 — could clearly use the money. There is a poverty rate of 19% in this industrial city on the shores of Lake Erie.

Baltimore aquarium bonds are downgraded

I know of a lot of nonprofits who have used bonds to raise money in recent years. There can be some real advantages for Boards who are looking to raise funds using the tax advantages of bonds... but what happens if those bonds get downgraded?

Aaron Cahall at The Examiner explains the impact such a downgrade had on the Baltimore Aquarium:

Last month, Fitch Ratings downgraded its rating for the aquarium’s approximately $34 million in bonds to “BBB+” from “A+”, citing the attraction’s diminished liquid assets and declining attendance. In early September, Moody’s Investors Service lowered its rating on the bonds from A3 to A2, and both firms held a negative outlook at the lower levels.
The institution has $23 million on hand, which is down from previous years... and it needs to find a way to push for new fundraising opportunities.
Contributions and grants totaled $9,532,193, or 23 percent of the aquarium’s $41.7 million budget last year, according to its 2006 annual report. Approximately 50 percent of the aquarium’s revenue comes from admissions, said Molly Foyle, director of media relations for the aquarium, with 30 percent from gift shop and on-site revenues and 20 percent from city, state and private contributions.
To be honest, I don't think this is going to be the only group that has their bond ratings lowered over the next few months.