the hidden world of nonprofits

The Hidden Worldof Nonprofits

Ronald Campbellrcampbell@ocregister.com

Additional material: Gary Cohn

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

Gary is an investigative reporter and adjunct professor at USC’s Annenberg School of Journalism. He has reported for The Baltimore Sun, Philadelphia Inquirer, Los Angeles Times and other newspapers and magazines.

CohnGary

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

• 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 2010

Receipts $1 mill. $500k $200k

Assets $2.5 mill. $1.25 mill. $500k

THE MONEY TRAIL, CONT.

• Pages 3-4: Preview of coming attractions

• Pages 5-6: Catchall

• Pages 7-8: Pay!!!

INSIDE THE 990

• Page 9: Revenue

• Page 10: Expenses

• Page 11: Balance sheet

• Schedules

INSIDE THE 990, CONT.

Lets look at some 990s: USC, the LA Opera Company, the Getty Museum and Orange

County Performing Arts Center

Case studies

The president or the football coach?

At USC, who made more in 2009?

Could be retitled: Hey reporter! Come look at

me –

Transactions with interested parties

Case study: LA Opera Company

Big piece of art

LA Opera Company: A $7 million deficit in 2009

Case study

The Getty: Perks and Pictures

Big piece of art

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

• 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

Before the fall …

Big piece of art

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

$-$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000

2005 2006 2007 2008 2009

Programs

Other

Donations

Expenses

OCPAC’s board members and donors represent the power structure of the nation’s fifth-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

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

• Links to offering statements, other documents

A NEW TOOL

Big piece of art

EMMA search

$240 million bond issue

Chapman University revenue, 2005-2009

One product of Chapman’s boom: a new library

990 for 2010 still not available

Big piece of art

Nonprofits play a huge role in our society – yet have been

under-reported by news organizations

Review

---- Great stories, Good jobs

What covering nonprofitscan do for you

Gary Cohngarycohn@usc.edu

QUESTIONS?