Mining
Nonprofit Data
NICAR 2014 Baltimore
Kendall Taggart
OVERVIEW
-The mini backstory of our recent series with The Tampa Bay Times, America's Worst Charities
-The basics of the form 990
-Tools beyond the 990
-Story ideas
Six charities All Listed at one address
GOING BEYOND AN ANECDOTE
Fundraising data collected by at least a dozen states.
Simple way to strengthen your story:
Go back in time.
un-sexy, Time-consuming steps
- Get to know the flaws in your data.
- The ultimate guide: CARwash by Jen LaFleur
- Develop a solid methodology
- Go from data to on-the-ground reporting and back again
- Share your approach with at least three experts before publication (ideally your harshest critic)
USEFUL DATA-Mining TOOLS
1. SQLite - free and easy to install. It comes on Mac OS X .
2. Use a database manager (I use Navicat. A free option is the SQLite plug-in for Firefox.)
3. Open Refine - formerly Google Refine - for cleaning up names.
THE ULTIMATE TIP SHEET ON THE 990
Ron Campbell has a great tip sheet (#3496) on how to decipher the 990 available at ire.org
FIGURE OUT HOW MUCH THEY'RE SPENDING ON PROGRAMS
FROM THE 990:
(Part IX, Line 25, Column B)
(Part IX, Line 25, Column A)
Program Expenses
Total Expenses
BE CAREFUL OF ACCOUNTING TRICKS
#1: Gifts-in-kind
(examples: medical supplies sent abroad)
Schedule F of the 990
example: Following medical supplies to Guatemala
BE CAREFUL OF ACCOUNTING TRICKS
#2: "Joint cost allocations"
Allows charities to count telemarketing as an "educational program"
Part IX, Line 26 of the 990
Total Expenses | Programs | Management | Fundraising
Example: Police Charity runs in-HOUSE
Telemarketing Operation
CHECKLIST OF REQUIRED SCHEDULES
Some juicy questions include:
- Question 26: did the organization provide a loan to a key employee, trustee, etc.?
- Question 27: did the organization provide a grant to a key employee, trustee, etc.?
- Question 28: 'related business transactions' (has the organization been paying a brother, mother, sister, etc.?)
(Checklist starts on page 3 of the Form 990, Part IV)
GOVERNANCE
How is the nonprofit managed?
Part VI
- Question 2: do any of the board members have a family or business relationship?
- Question 6: 'significant diversion of assets' - losses attributed to theft, investment fraud, embezzlement and other unauthorized uses of funds in excess of $250,000 or 5 percent of gross receipts
(Starts on page 6 of the Form 990, Part VII)
Example: Washington Post investigation
Tools beyond the form 990:
#1 State records
- Treasure trove hidden in Colorado
-
Third-party audits, fundraising contracts in North Carolina
-
Application for exempt status, and older tax filings in California
**A special shout-out for audits
Example: Optimal Medical Foundation
We learned in an audit that the only grant an organization had given out was to a company with ties to the president of the charity.
The charity The for-profit
TOOLS BEYOND THE FORM 990:
#2 Disciplinary actions:
Resource:
includes about 8,000 regulatory actions taken by states against all kinds of charities and solicitors.
TOOLS BEYOND THE FORM 990:
#3 -The data available from the IRS.
Download here.
Story Ideas
- Use the IRS 990 data to develop a list of ledes:
- Find nonprofits in your coverage area that report high levels of tax-exempt bond proceeds. Many nonprofits have used risky financial tools (NYT story)
- Find nonprofits with high professional fundraising fees
- Using the CIR/Times database of disciplinary actions, track nonprofits that are raising money in your area, despite a sordid history.
steal this app
Have Questions?
email: ktaggart@cironline.org
phone: 510.809.2204
