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How Bank Failures Could Affect Nonprofits — and What to Do

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Wed, Mar 15, 2023 03:41 PM

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Plus, a racial-justice leader who left her job alleging bias by board starts new nonprofit, and the

Plus, a racial-justice leader who left her job alleging bias by board starts new nonprofit, and the Chan Zuckerberg Initiative is committing $250 million to establish a Chicago biohub ADVERTISEMENT [Philanthropy Today Logo]( Did someone forward you this newsletter? [Sign up free]( to receive your own copy. You can now follow The Chronicle on [Apple News]( [Flipboard]( and [Google News](. BANKING CRISIS [How the Ripple Effects of Bank Turmoil Could Affect Nonprofits — and How to Avoid Them]( By Drew Lindsay [STORY IMAGE]( Damage to nonprofits appears limited so far, but charity leaders and experts urge groups to protect assets amid fears about the banking industry’s health. ADVERTISEMENT LEADERS OF COLOR [Racial-Justice Leader Who Left Her Job Alleging Racial Bias by Board Starts New Nonprofit]( By Jim Rendon [STORY IMAGE]( Anne Price, former head of Insight Center for Community and Economic Development, says the new group will focus on improving the economic conditions of Black women. GRANTS ROUNDUP [Chan Zuckerberg Initiative Commits $250 Million to Establish Chicago Biohub]( By M.J. Prest [STORY IMAGE]( Also, the Lowe’s Foundation will give $50 million to develop a pipeline of contractors and tradespeople over the next five years, and the Smithsonian American Women’s History Museum has received $38 million in grants from companies and foundations. Webinars [Build a Diverse Pool of Donors]( [STORY IMAGE]( Many fundraising leaders are figuring out how to build trust with donors who may be quite different than the people who supported their nonprofit a decade ago. Join this 75-minute webinar on March 23 at 2 p.m. Eastern (or on demand later) to learn how your nonprofit can tap into the generosity of donors of all backgrounds and broaden its support. You’ll get practical ways to create inclusive fundraising strategies that attract support from donors large and small. [Sign up today.]( ONLINE BRIEFINGS [Using Data to Improve Online Fundraising]( [STORY IMAGE]( Digital fundraisers can gain all sorts of insights from data about online campaigns. Whether its testing subject lines or social posts, analyzing email or newsletter open rates to see which messages resonate with supporters, or tracking people’s online engagement with your organization — data can take digital fundraising from good to great. Join us on March 28 at 2 p.m. Eastern to learn from your peers how to make the most of digital data, even without a big budget. [Sign up today]( SUBSCRIBE TO THE CHRONICLE Enjoying the newsletter? [Subscribe today]( for unlimited access to nonprofit news and analysis. Nonprofit News From Elsewhere Online Florida Gov. Ron DeSantis’s takeover of a small liberal-arts college has put about $29 million in donations to the institution at risk. Charlie Lenger, a longtime trustee of New College who was recently replaced by a DeSantis ally, said 13 donors have told her they are canceling plans to give $29 million to the school. They object to DeSantis’s plans to remake the college into a conservative institution, starting with killing its diversity, equity, and inclusion program, and to pay the new president, DeSantis’s former education minister, more than double his predecessor’s salary. The $29 million, a big hit for an institution with 700 students, is almost certainly an underestimate because it counts only gifts in those donors’ estate plans. Those supporters also plan to stop annual giving, while 150 alumni have vowed not to donate to the college until they are “reassured foundation funds will not be used to support the newly appointed Board of Trustee agenda.” New College had $43.5 million in net assets and took in $2.4 million in revenue in 2019. Backers of DeSantis’s plans say the Republican legislature is likely to increase the institution’s funding and New College can tap a new conservative donor base. ([USA Today]( A nonprofit in Baltimore is struggling to buy rundown houses from investors to fix them up and sell them at a discount to local residents. Trying to help turn around a predominantly Black neighborhood with low rates of home ownership, the Southeast Community Development Corporation repeatedly hits a wall with out-of-town developers who buy low and sit on the properties because they “don’t know the market and have inflated the prices,” an SCDC leader said. The pandemic-era investor run on housing has abated everywhere in the country except Baltimore. In one recent acquisition, a broker charged the nonprofit $54,000 for a house that had sold at auction for $7,000 two years earlier. The group’s executive director said it can raise the money to cover the difference between the renovated houses’ appraisals and selling prices, but getting the houses from investors has been “very, very hard.” ([Baltimore Sun]( More News - A Tesla, 37-Acre Property, a Plane: the Purchases Allegedly Made in a $250 Million Covid-Aid Fraud Scheme ([Wall Street Journal]( — subscription) - Effective Altruist Leaders Were Warned About Sam Bankman-Fried Years Before FTX Collapsed ([Time]( - SVB Didn’t Just Lend to Startups. It Was Key Partner for Affordable Housing ([Bloomberg]( - Steps From the Capitol, Trump Allies Buy Up Properties to Build MAGA Campus ([Washington Post]( - The Estimated Value of Tax Exemption for Nonprofit Hospitals Was Nearly $28 Billion in 2020 ([Kaiser Family Foundation]( - NYC Mayor Eric Adams Pens Bills to Support, Hold Accountable, Nonprofits in City Violence Interruptor Network ([amNew York]( - Measure Designed to Allow Chicago’s Nonprofit Employees to Unionize Set for Key Vote ([WTTW]( - Re-entry Program Provides Pathway for Formerly Incarcerated Women in Vt. ([Barre-Montpelier Times Argus]( Opinion - Head Start Centers in Community Colleges Can Change the Child Care Equation ([Washington Post]( - Funding for Ukraine Is Far From Unchecked Charity ([Hill]( Museums - Major Museums Around the World Are Quietly Recategorizing Works From Russian to Ukrainian ([CNN]( - Dozens of Museums and Universities Pledge to Return Native American Remains. Few Have Funded the Effort. ([ProPublica]( SPONSOR CONTENT | Center for Creative Leadership [Building Stronger Relationships with Boards & Staff]( The 3 building blocks that nonprofit leaders can use to establish more psychological safety — particularly between board members and staff – are trust, candid feedback, and inclusive leadership. Editor's Picks GIVING [How Philanthropy Helps Coal Communities Access Historic Levels of Federal Funding]( By Sono Motoyama [STORY IMAGE]( Thanks to the good ideas of local nonprofits — and to an influx of federal and state funds — projects such as turning West Virginia coal mines into greenhouses, launching training programs in sustainable trades on the Crow Reservation in Montana, and expanding West Virginians’ access to broadband have seen the light of day. OPINION | WHAT WE'VE LEARNED [Want to Help Communities Thrive? Invest in Residents Eager to Disrupt the Status Quo.]( By Bobby Milstein [STORY IMAGE]( A Wisconsin area known as the Fox Cities is showing what’s possible when individuals are given the support needed to bridge divides and work together to create healthy and hopeful communities. INTERVIEW [Growth of Organizations That Advance the Work of All Nonprofits Poses Challenges, Research Finds]( By Alex Daniels [STORY IMAGE]( Lack of funding stymies innovation for these groups, and the lack of any way to evaluate the quality of services provided means nonprofits often face tough choices when seeking help for training, advocacy, and other needs, according to scholars at the Urban Institute. OPINION [A Set of Ethical Principles Can Help Philanthropy Regain Public Trust in the Field]( By Kathleen Enright [STORY IMAGE]( With the release this week of guidelines for building trust in the philanthropic world, the head of the Council on Foundations is calling on grant makers to hold each other accountable for maintaining high ethical standards. MANAGEMENT AND LEADERSHIP [How Fundraisers Can Get Off the Road to Exhaustion and Burnout]( By Emily Haynes [STORY IMAGE]( Unfamiliarity with the physical signs of stress and burnout can prevent fundraisers from taking the breaks they need to recover. ADVERTISEMENT RECOMMENDED WEBINAR [Join Our Next Webinar]( — More and more fundraising leaders are figuring out how to tap the generosity of donors from a range of cultures, faiths, and sexual identities. Their lessons can help your nonprofit engage and build trust with donors who may be quite different than the people who supported your nonprofit a decade ago. Join this 75-minute webinar on March 23 at 2 p.m. Eastern (or on demand at your convenience) to learn how your nonprofit can tap into the generosity of donors of all backgrounds and broaden its support. You'll learn from an expert on wealthy BIPOC donors and a nonprofit leader who has worked in 17 countries to advance gender and racial equity who will share practical ways to create inclusive fundraising strategies that attract support from donors large and small. [Register today.]( JOB OPPORTUNITIES [Director of Advancement]( The Girls' Middle School [Assistant Vice President, University Advancement and Alumni Engagement]( Texas Woman's University [Search other jobs.]( NEWSLETTER FEEDBACK [Please let us know what you thought of today's newsletter in this three-question survey](. [Chronicle of Philanthropy Logo]( This newsletter was sent to {EMAIL}. [Read this newsletter on the web](. [Manage]( your newsletter preferences, [stop receiving]( this email, or [view]( our privacy policy. © 2023 [The Chronicle of Philanthropy]( 1255 23rd Street, N.W. Washington, D.C. 20037

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