"The Hidden World of Nonprofits" in Minneapolis 2011

The Hidden Worldof Nonprofits

Ronald Campbellrcampbell@ocregister.com

Ron is a staff writer for The Orange County Register where he pioneered the paper’s computer-assisted reporting program. He has investigated charities, penny stocks, immigration and the buying and selling of human body parts.

CampbellRONALD

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Nonprofits are everywhere – in health care, education, culture,

the economy – everywhere except the news.

HIDDEN IN PLAIN SIGHT

www.guidestar.org• Free access 3 years of 990s• Premium ($300 for IRE members) unlimited access

FOLLOW THE MONEY

Your new best friend

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Minnesota: a hotbed of nonprofits

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• Health care• Blue Cross/Blue Shield, Mayo Clinic

• Universities• St. Thomas, St. Olaf, U of M Foundation

• Cultural centers• American Public Media, Guthrie Theatre

Nonprofits in Minnesota

• Tiny charities ($25k/$50k) file 990-N “e-postcards”• … or nothing at all (churches)

THE MONEY TRAIL

Filing thresholds for 990 vs. 990-EZ

2008 2009 2010Receipts $1 mill. $500k $200kAssets $2.5 mill. $1.25 mill. $500k

THE MONEY TRAIL, CONT.

•Pages 1-2: ABC’s, purpose •Pages 3-4: Preview of coming attractions• Pages 5-6: Catchall• Pages 7-8: Pay!!!

INSIDE THE 990

• Page 9: Revenue• Page 10: Expenses• Pages 11-12: Balance sheet, and reconciliation

INSIDE THE 990, CONT.

Great information, starting at the top

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A hint of what’s to come

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Life, the universe and everything

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Anatomy lesson: the checklists

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More questions, more answers

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Who’s in charge here?

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Money, money, money!

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But wait -- there’s more!

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How the money rolls in

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Where all the money goes

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Balance sheet: the assets

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Balance sheet: liabilities and endowment

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It started with a lima bean field, became “an international shopping destination,” and then …

CASE STUDY: ORANGE COUNTY PERFORMING ARTS CENTER

Performing Arts Center, opened August 1986

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• Founded 1979.• Opened 3,000-seat hall 1986.• Opened 2,000-seat concert hall and theater 2006.• Privately funded for 20 years.

CASE STUDY: OCPAC

Concert hall, opened September 2006

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OCPAC’s board members and donors represent the power structure of the nation’s sixth-largest county. They include the billionaire co-founder of Broadcom and owner of the Anaheim Ducks hockey team (right), a former ambassador to Spain, many millionaires and corporate executives, even a onetime aide to former President Nixon.

CentralHeavy hitters

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Before the fall …

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O.C. Performing Arts Center finances, 2005-2009

$-

$15,000,000

$30,000,000

$45,000,000

$60,000,000

$75,000,000

$90,000,000

2005 2006 2007 2008 2009 2010

Programs

Other

Donations

Expenses

Ugly bottom line

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Troubled balance sheet

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OCPAC financial assets, 2008-2010

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

2008 2009 2010

Stocks, bonds

Pledges

Cash, savings

Six-figure carpenters

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Investments in 2009 (top) and 2010 (bottom)

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Culture with a $240 million price tag

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http://emma.msrb.org• Created by Municipal Securities

Rulemaking Board• Links to offering statements, other

documents

A NEW TOOL

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EMMA search

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$240 million bond issue

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Digging deeper: Continuing disclosures

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Chapman finances, 2005-2010

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2005 2006 2007 2008 2009 2010

$(50,000,000)

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

2005 2006 2007 2008 2009 2010

Other

Programs

Donations

The sounds of prosperity

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Chapman on EMMA - the search

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Chapman EMMA results

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Chapman income, 2000-2009

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Donations Programs

Mean program revenue: $182.9 millionStandard deviation: $44.6 million

Mean donations: $27.3 millionStandard deviation: $8.6 million