News Briefs for November 21, 2013

Senator Opens Inquiry Into Nonprofit Over Diversion of Assets

Sen. Charles Grassley, a veteran Republican lawmaker, opened an investigation into a charity that was highlighted in a Washington Post report about nonprofits that had lost millions of dollars to theft, fraud, and other unauthorized use of assets. Mr. Grassley asked the American Legacy Foundation, which works to cut tobacco use, for details about a $3.4-million embezzlement described by the Post, as well as multiple questions about its finances. Robin Koval, Legacy’s new president, said in a statement the group took the inquiry seriously and would respond with “transparency.”

Investment Returns on College Endowments Grew Nearly 12% In 2013, Survey Finds

College endowments saw average investment returns of 11.7 percent in the 2013 fiscal year, according to preliminary figures from an annual survey. The 2013 data for 461 U.S. institutions, released by the Commonfund Institute and the National Association of College and University Business Officers, contrast sharply with results in the 2012 fiscal year, when endowments averaged a 0.3-percent loss.

Americans Give Bulk of $1-million Donations

Americans provided $14-billion of the $19-billion in gifts of $1-million or more made to charity by donors around the world last year, according to a study by Coutts, a London bank, and Indiana University’s Lilly Family School of Philanthropy. Researchers examined donations from people in China, Hong Kong, the Middle East, Russia, the United Kingdom, and the United States.

Grant Makers Should Not Tell Nonprofits What To Do, Foundation Donors Say

More than 77 percent of foundation donors said in a survey that grant makers should support nonprofits without telling them what to do, rejecting the concept of “strategic philanthropy.” Of 198 donors surveyed by Foundation Source, a group that provides services to grant makers, 37.4 percent said personal knowledge of a nonprofit was the most important factor in deciding where to give, while 25.6 percent said “clear evidence of demonstrable impact” mattered most.

Combined Federal Campaign Extends Solicitation Period By One Month

The Combined Federal Campaign, the workplace-giving program for federal employees, has extended its solicitation period by one month, until January 15, because of the 16-day government shutdown. The government said many campaign events were planned for the days the government was closed.

Anti-Humane Society Group Steps Up Battle By Asking IRS to Investigate Financial Abuses

The Center for Consumer Freedom has intensified its long-running battle against the Humane Society of the United States by filing a complaint with the Internal Revenue Service, charging that the animal-welfare group improperly counted donated air time as contributions on its tax returns. The charity, which calls the center a front group for companies unhappy with its efforts to protect farm animals, responded that it “follows standard accounting principles” and “receives accounting and auditing advice from experts in the field.”

Insurance Company To Pay Legal Bills Of Group in ‘Three Cups of Tea’ Scandal

An insurer will pay $1.2-million to the Central Asia Institute, the charity co-founded by Three Cups of Tea author Greg Mortenson, in a settlement over legal costs from a lawsuit and a state investigation, a lawyer involved in the case said. The lawsuit by disappointed readers said Mr. Mortenson committed fraud by fabricating parts of his book. The lawsuit was dismissed, and Mr. Mortenson agreed to pay $1-million to his charity in a settlement with the Montana attorney general’s office over alleged financial transgressions.

Foundation Grants to Media Projects Grow at Faster Pace Than Other Giving

Foundation giving for media projects grew by 21 percent from 2009 to 2011, more than four times the rate that domestic giving increased over all, according to a Foundation Center study. Foundations gave $1.86-billion in media-related grants.