For the Benefit of Our Workers: The Massachusetts Nonprofit Employee Benefit Study

Analyzes survey results on the types and costs of benefits offered to employees of Massachusetts' large nonprofit institutions, small grassroots organizations, and safety-net organizations. Includes comparisons with those in other states

Is it Time to Address Selective Disclosure for Nonprofit Organizations?

Over the past two decades, there have been several highly publicized nonprofit scandals that have eroded the publics confidence in the sector (Aviv 2004). Significant changes in nonprofit regulation have been implemented to address these concerns that have expanded the financial information available to the public. Interestingly, the calls for more nonprofit accountability have not focused on an important concern, that of selective disclosure. This is a practice under which an organization provides material information to some constituents while withholding it from others. This paper argues that practice is frequently observed in the nonprofit sector. As the New Era Philanthropy scandal highlighted, this practice can pose substantial risks to the nonprofit sector by facilitating fraud and harming the publics trust. The paper describes the existing nonprofit reporting requirements and potential shortcomings. It examines two alternative disclosure environments, the Freedom of Information Act (FOIA) in the federal government and corporate securities regulation, particularly Regulation Fair Disclosure, and their limitations. It will then discuss what measures could be taken to address selective disclosure in the nonprofit sector.This publication is Hauser Center Working Paper No. 33.7. Hauser Working Paper Series Nos. 33.1-33.9 were prepared as background papers for the Nonprofit Governance and Accountability Symposium October 3-4, 2006

Reengineering Nonprofit Financial Accountability: Toward a More Reliable Foundation for Regulation

Today, the annual IRS Form 990 tax filing is the principal annual disclosure mechanism of nonprofit organizations. Over time, considerable thought has been put into finding ways to improve access and use of the 990 Form, with only scant attention focused on whether the 990 is the right data source on which to build a system of nonprofit accountability. This paper takes a broader perspective, assessing not only the quality of the financial data and its availability, but also the entire financial reporting model. The paper begins with a framework for thinking about organizational accountability. It then examines the current structure of nonprofit financial reporting and contrasts it with alternative systems developed for publicly traded firms and credit unions. The paper concludes with recommendations for improving nonprofit accountability by reengineering the reporting and oversight systems in the sector.This publication is Hauser Center Working Paper No. 4. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

The Price of Doing Good: Executive Compensation in Nonprofit Organizations

This article examines whether nonprofit executive pay patterns are consistent with the espoused social mission of these organizations. We find that nonprofit CEOs are paid a significant fixed component, and many CEOs also receive additional pay associated with managing larger sized organizations. Our analysis indicates that nonprofit executive compensation is not significantly related to CEO performance, as measured either by improved fund-raising results or better administrative efficiency. This weak pay-for-performance link may be due in part to nonprofits concern about violating the non-distribution constraint in the sector, which prohibits the distribution of excess earnings. While nonprofits may not be breaching the letter of the law, some organizations appear to challenging its spirit: We present evidence that CEO compensation is significantly higher in organizations where free cash flows is present, as measured by commercial revenues, liquid assets and investment portfolios.This publication is Hauser Center Working Paper No. 8. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

Leaf Micromorphology Aids Taxonomic Delineation within the Hypervariable Genus Metrosideros (Myrtaceae) on O\u27ahu

Variation in leaf micromorphology can aid delimitation of taxonomically difficult groups. The woody genus Metrosideros (Myrtaceae) dominates Hawai\u27i\u27s native forests and comprises striking, predominantly infraspecific, macromorphological variation, including many forms unrecognized in current taxonomic treatments. On taxonomically rich O\u27ahu, 10 taxa (varieties or unnamed morphotypes of M. polymorpha and other species) occur in a predictable sequence with overlapping ranges from low to high elevation along the numerous leeward ridges of the Ko\u27olau Range. We used scanning electron and light microscopy to examine mature, nonsenescing sun leaves from each of these 10 taxa. Parametric and nonparametric tests were used to compare stomatal complex (SC) traits and those of a newly described secretory structure (SS) across taxa. Correlations among traits and discriminant analyses were also done. Density and length of SCs were inversely related overall, and both measures varied significantly across taxa. Although abaxial SSs were consistently present only in the two highest-elevation glabrous taxa, adaxial SSs were present in all 10 taxa. Length and density of adaxial SSs and density of abaxial SSs varied across taxa, and densities of both SCs and SSs were greatest at high elevation. Combined, the SC and SS traits differentiated 100% of four glabrous varieties and two of three pubescent varieties of M. polymorpha. Variation in leaf micromorphology, including presence and density of a newly described SS, aids delimitation of closely related Hawaiian Metrosideros taxa and may refilect differential local adaptation across a heterogeneous landscape

Salar Music and Identity: A Sad Sound

The Salar are a Muslim minority group in China. They are from the northwest province of Qinghai. Xunhua, the Salar autonomous county, is located about 150 kilometers away from Qinghai’s capital, Xining. I have elected to learn about this minority group because of the need for research and general value. There is a need because little prior research has been done concerning the Salar minority within the field of ethnomusicology. This hole needs to be filled within minority China research. Beyond ethnomusicology, cultural and sociological understanding will profit, expanding the knowledge base of humankind. Also, the Salar themselves are interested in preserving their culture, especially in written format. Preserving their music and culture, as well as in sharing that music and culture with the world is of great value. Through this study and specifically through the use of ethnographic fieldwork and musical analysis techniques, I have explored attributes of Salar music and where possible its relationship to ethnic identity. The purpose of this study is to identify characteristics of Salar music through musical analysis in hopes of better understanding the ethnic identity of the Salar people

An Investigation of Fraud in Nonprofit Organizations: Occurrences and Deterrents

Losses due to fraudulent activities are particularly troublesome in the nonprofit sector because they directly reduce resources available to address tax-exempt purposes. The ensuing bad publicity may also reduce contributions and grants in subsequent periods. This paper uses data provided by Certified Fraud Examiners to report on the types of fraud they identified in nonprofit organizations and the characteristics of both the victims and the perpetrators of the fraudulent activities. Based on the analysis of the data, the authors suggest ways that fraud losses can be prevented or mitigated. In particular, governing boards are urged to consider important controls in addition to the annual financial statement audit.This publication is Hauser Center Working Paper No. 35. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

Passion & Purpose: Raising the Fiscal Fitness Bar for Massachusetts Nonprofits

Presents data on and financial analyses of the state's nonprofit sector by organization type, budget, focus area, and location. Recommends better financial stewardship, restructuring, repositioning, and reinvestment to enhance nonprofits' sustainability

Misreporting Fundraising: How do Nonprofit Organizations Account for Telemarketing Campaigns?

The purpose of this study is to examine the frequency, determinants and implications of misreporting fundraising activities. We compare state telemarketing campaign reports with the associated information from nonprofits annual Form 990 filings to directly test nonprofits revenue and expense recognition policies. Our study indicates that smaller nonprofits, and those with less accounting sophistication, are more likely to inappropriately report telemarketing costs as a component of net revenues rather than as expenses. In addition, less monitored firms are more likely to report telemarketing campaign revenues net of expenses. Additionally, among those firms that do report telemarketing costs as expenses, we find that smaller firms, and those with relatively less officer compensation, are more likely to allocate telemarketing expenses to non-fundraising expense categories.This publication is Hauser Center Working Paper No. 37. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers