Power Corrupts–Even at Charities

Paul Clolery has an excellent piece at Huffington Post about the recent death of William Aramony and the Penn State scandal. He writes:

“Aramony was the center of the United Way sex and finance scandal during the 1990s and for a quarter-century was the punchline for charity officials going off the rails.”

“The Penn State […]

Charity Regulators and the Menace of Regulating Online Activity

Recently I took an online webinar about state regulations of online fundraising. People could opt to listen in to the webinar via telephone.

The webinar was taught by two state charity regulators, which I found disappointing because the presentation was so one-sided and incomplete. The regulators in the webinar are lawyers in the attorney general […]

How California charity regulators abuse and violate their investigation statute

The NonProfit Times reports on a California investigation into the foundation of a deceased celebrity.

The California investigation statute, beginning at California Government Code Section 11180, requires that subpoenas be issued “in a manner consistent with the California Constitution.”

Article I, Section 13 of the California Constitution replicates the Fourth Amendment to the United States […]

Is the Postal Service unlawfully denying entry of mail at nonprofit postage rates?

Nonprofits that mail using the reduced nonprofit postage rates need to be on the lookout for violations of law by the United States Postal Service.

The USPS is under financial pressure, and has a history of abusing access to the nonprofit postage rates when money is tight.

I’ll provide more details this week, but […]

I-Regulate: Charity regulators to sink their hooks into your mobile devices

Just two days before the death of innovator and entrepreneur Steve Jobs, state charity regulators were busy at their annual meeting trying to figure out how to get their non-innovative and job-killing regulatory grappling hooks into fundraising communications through social media.

The motto for charity regulators must be: “Build it, and they will regulate it.”

[…]

Are Charity Regulator Investigations of 9/11 Charities Illegal?

The Chronicle of Philanthropy covers the Associated Press report that New York and Arizona are investigating 9/11 charities that may have failed to “keep promises to create memorials or contribute to 9/11 causes.”

AP reports that “New York Attorney General Eric Schneiderman’s office said state lawyers are conducting their own ‘broad review’ of 9/11 charities […]

First Circuit Reminds Nonprofits That Citizens United Did Not Free Them

Nonprofits believing the Citizens United case freed them to engage in expressly advocating election or defeat of candidates need to be careful.

The First U.S. Circuit Court of Appeals upheld both Maine and Rhode Island statutes requiring nonprofit organizations to register as political action committees when engaging in express advocacy about electing or defeating candidates.

[…]

'Hmmm,' back to a FOCR (friend of charity regulators)

A reader and defender of charity regulators writes, “I [meaning, he] and others have proposed ideas like your online posting process for many years. When and how did NASCO ‘oppose’ it?”

The opposition from NASCO first came in private correspondence after I asked them to support it, and also asked that NASCO make disclosures about […]

Charity regulators use anonymity to cloak failures to follow the law

I’ve said it many times, charity regulators often fail to cite to any law supporting their demands made on registrants. Often their demands are either unsupported by the law or rely on lopsided and aggressive interpretations of the law.

Whenever you receive such a demand, your first reaction may be to reply by asking for […]

Significance of today’s release of Project Veritas videos and charity regulators

The Daily Caller broke the story about James O’Keefe’s Project Veritas latest sting. This one shows state Medicaid officials not only aiding scofflaws, but I imagine breaking some laws themselves.

My mantra about charity regulators is that they are the biggest violators of the laws that govern charitable solicitation. They are unaccountable, and that fosters […]