SYMPOSIUM NOTES: AVOIDING BERNIE MADOFF

The Fundraising in This Economic Crisis: Unearth Potential symposium was fortunate to have fantastic presenters and the generous support of the Unitarian Church of Evanston. This week we will share some of what we learned.

Michael Pierce addressed our questions regarding avoiding the next Bernie Madoff. Michael is a CPA and Certified Fraud Examiner. He is a partner in the CPA firm of McGladrey & Pullen. He is Vice Chair of the Illinois CPA Society. AND, he serves on the board of an organization that was ripped off by Bernie Madoff. He shared his valuable insight into “fraudsters.”

The reason Bernie Madoff’s Ponzi scheme came to light was because the economy has compelled people and organizations to withdraw money from their investments. According to Michael, “When times are tough we find just how many times we’ve been taken.” ....

It is difficult to find fraud until you know it exists. Often suspicion arises when a staff person goes on vacation and a back-up person steps in and questions what they see. It is very difficult to protect against fraud: different organizations have different challenges....

Non-profits should have sophisticated accounting systems to track where the funds go and have standards in place to protect themselves. Michael said the best protection is having a system that would require multiple people to group together in order to perpetrate the fraud. The fraudsters are very focused. There’s more of a chance that the wrong person will be approached and will blow the whistle. Michael described the three elements almost always present in organizational fraud, and much more.

If you would like a copy of the 46-page "Audit Committee Guide for Not-for-Profit Organizations" that attendees received, contact Michael Pierce at McGladrey & Pullen, 570 Lake Cook Rd., Deerfield, IL 60015 or 847-940-1300 x3600 or Michael.Pierce@rsmi.com.

A full copy of Symposium minutes is available by emailing kamblake@aol.com.

SYMPOSIUM NOTES: GRANTSMANSHIP

The Fundraising in This Economic Crisis: Unearth Potential was well-attended, well-received and very, very fortunate to have fantastic presenters and the generous support of the Unitarian Church of Evanston. Below is a small idea of some of what we learned.

Marybeth Schroeder, Senior Program Officer at the Evanston Community Foundation, shared her knowledge and perspective of how charitable foundations have been affected by the economy -- ECF, as well as local and national foundations. The ECF's activities are three-pronged:

1. Raise and manage endowment
2. Make grants to Evanston organizations
3. Serve as a community convener by bringing together other community partners

Marybeth urged the audience to consider, when applying for a grant from a foundation, if the mission of the organization fits with the guidelines of the foundation.... Organizations should not spend time pursuing grants from sources that are unlikely to fund them.

Be familiar with application deadlines. ECF has three giving cycles in 2009....

Foundations must have careful management of its endowed funds, ECF lost only 19% on its investments last year, while the national average is about 30%. They are not pulling into their shell and shunning new commitments....

For a copy of the full minutes of the Symposium, email kamblake@aol.com.

DON'T MISS THIS ONE

Fundraising in This Economic Crisis: Unearth Potential!

We have a wonderful array of presenters and fundraising colleagues attending the symposium (see below). We will cover the state of charitable foundations, financial oversight in the face of Bernie Madoff, the role of Board members in today’s nonprofit organization, how the fundraising pyramid applies to all nonprofits, cost-cutting ideas and innovation.

Sponsor: Kathy Miller, Public Interest Fundraising consultant to local, state, national and international organizations for over 20 years.

Host: Sandra Robinson, Manager of the Unitarian Church of Evanston, overseeing all programs related to ministry and outreach.

Panelists:

The State of Charitable Foundations
Marybeth Schroeder,
Senior Program Officer, Evanston Community Foundation

Financial Oversight in the Face of Bernie Madoff,
Michael Pierce,
CPA, CFE, Partner at McGladrey & Pullen and Vice Chair, Illinois CPA Society

Role of Board Members in Today’s Nonprofit,
Daniel Luber,
Corporate Vice President of Social Responsibility and Environmental Affairs, Lawson Products

When: Friday, March 27, 2009 from 12:30 PM – 3:30 PM. We will start at 12:30 sharp!

Where: Unitarian Church of Evanston, 1330 Ridge Road, Evanston, IL

Registration - Share This Opportunity: Organization representatives, board members and fundraising volunteers are encouraged to attend. They must RSVP with name, organization and contact information to 847/227-7174 or email kamblake@aol.com to reserve a place. Registration is free, but space is limited.

Note: Case Statement Challenge participants must be in attendance at the Symposium to secure the charitable donation.

Your Marketing: If it could benefit your organization to have pictures of you at this event, bring a camera and we can help you capture the occasion.

CUDDA, WUDDA, SHUDDA

Don’t let “Cudda, wudda, shudda” be your year end review (or the theme of your exit interview). Start now, at full throttle, with an action plan rather than a reaction plan! Join us for Fundraising in This Economic Crisis: Unearth Potential on March 27th. Register at kamblake@aol.com. (See Feb. 13 blog below for details.)

PINCHING PENNIES

Non-profits are pinching their pennies so hard their fingers are bleeding!

• Food lines are stretching further out the door.

• The arts are shrinking and dying.

• Community mental and public health services are being curtailed.

• Education is waaaay underfunded.

The list goes on and on.

The last thing charities should do is put their heads in the sand. They need to keep making the compelling case, inviting people to participate in giving through tough economic times.

On March 27th I am hosting a free symposium in Evanston for Chicago-area non-profits to discuss the economics of philanthropy right now and methods for long-term fundraising success, cost-cutting and innovation. Participants will receive relevant materials, share information and network with colleagues in the field.

"Fundraising in This Economic Crisis, Unearthing Potential," 12:30 - 3:30 at the Unitarian Church, 1330 Ridge, Evanston, IL 60201 Register at kamblake@aol.com.

WWWD?

I wrote a recent blog about What Would Warren Do? I've been reminded by a conscientious friend of what the investing guru did in 2008:

Berkshire Hathaway's net worth fell by $11.5 billion, according to its annual report. Since peaking at $151,000 a share in December 2007, it has fallen to $78,600, a decline of 48 percent. The S&P 500 has dropped 49 percent over the same period.

Thank you, John.