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Do IT this week: Layering
Charities, state government would be vying for funds from individuals and companies
By Dennis J. Willard
Beacon Journal Columbus Bureau
Published on Thursday, May 07, 2009
COLUMBUS: Bob Kulinski has been the United Way of Summit County's director for a decade and the challenges facing the 46 agencies under his umbrella have never been greater.
Corporate and foundation funds are tight, investment earnings for individuals are plummeting, the economy has sunk.
In this climate, the United Way and other nonprofit social service organizations must ask people and companies to give generously so others less fortunate can be cared for, fed, clothed and sheltered.
So Kulinski, and others like him, are not happy with Gov. Ted Strickland's plan to create nonprofit entities within state government, formed and run by taxpayer-paid employees, to solicit contributions from companies and individuals.
Summit County's United Way raised about the same amount of money in 2008 as it did in 2007, which Kulinski said was no small feat considering the six largest other local United Ways in Ohio were down about $10 million during the same period.
''State departments would be in direct competition with charities. The last thing we need is state departments setting up their own shadowy subsidiaries,'' Kulinski said. ''There are ethical considerations as far as the potential coercive effects of this policy. At best, the governor has not thought out the possibilities. At worst, it is just outrageous.''
Strickland persuaded House Democrats to slip language into a 796-page omnibus amendment adopted last week that would allow state agencies to form nonprofit corporations to solicit money for governmental purposes ranging from special projects to day-to-day operations.
The ethical questions addressed in this column last Sunday aside, state government would begin competing directly with a myriad of nonprofit social service organizations that depend upon contributions to exist.
There are a pair of huge differences between the two, however.
It is fair to say that individuals and companies that contribute to organizations like the United Way, the Girl Scouts, and food banks are opening their wallets and hearts to help others.
A question of motives
It is just as fair to question the true motives of individuals and companies that would suddenly feel the urge to contribute to nonprofit entities formed within the walls of state government.
Would they be writing checks to help themselves?
Lisa Hamler-Fugitt is executive director for the Ohio Association of Second Harvest Foodbanks. She is a tireless advocate working the legislative hallways and committee rooms for the poor and hungry.
''The governor's proposal is just strange at a time when we are seeing unprecedented requests for basic needs. Last year's donors are this year's recipients,'' she said.
Her organization operates 12 food banks across the state with 3,000 member charities.
''We don't understand the provision. I question its overall intent. As not-for-profit charities are struggling to raise dollars to meet basic needs, it just seems to be setting up government as a competitor for meager resources,'' Hamler-Fugitt said.
Board sends letter
On Monday, the United Way of Ohio board sent a letter to the governor on behalf of its members asking, in essence, ''What are you thinking?''
''We were hoping to better understand the thought process behind agency nonprofits, and why the Governor's office asked for the inclusion of this amendment. While we have not yet taken an official position on the language of the amendment, it is of great concern for our membership to understand the purpose and process by which this language was initiated.''
The letter, signed by Steve Hollan, the United Way board chair, and Erskine Cade, chair of the public policy committee, goes on to note, ''If you could please provide some rationale, behind the inclusion of this provision, we would very much appreciate it.''
Individuals and companies can, and have, contributed money and other services to state and local governments for years. It goes on every day, but Strickland's plans are different.
He's giving solicitation a bad name.
On Tuesday, the United Way of Ohio drafted a ''white paper'' on the subject that was sent a day later along with a letter to the 33 members of the Ohio Senate, where the two-year budget bill is under consideration. It asks that the provision be removed and for senators to oppose any effort to resurrect the idea.
''While there may be some legitimate and fairly narrow purposes that would be served by allowing governmental entities to form nonprofit corporations and solicit financial contributions and in-kind donations, the broad language . . . goes beyond efforts to simply support the fulfillment of specific targeted goals and responsibilities of the respective departments,'' the white paper states.
Among the problems this creates: competition between government and charities for limited philanthropic resources, confusion among donors, undue government influence, companies doing business with the state choosing government over charities and duplication of services.
Senate Republicans, including John Carey, the finance chairman from Wellston, are looking at the policy and have not decided whether to pull or to retain the language.
No fan of the idea
The United Way chairman in Senate President Bill Harris' home county of Ashland is no fan of the idea.
Everett DeVaul said he is leery about the precedent being set by state government.
''Giving comes from the heart for nonprofits. You care about the agency, what it does, you care about the causes, you have a personal situation in your family that causes you to say this is your charity of choice,'' DeVaul said.
''For the governor, it's a political agenda to secure more dollars and take dollars away from communities that really need them to serve our mission,'' he said.
Amanda Wurst, Strickland's spokesman, said the governor's intent was not to create a competitive environment.
''We still believe this is an innovative solution to bring resources to functions of state government,'' Wurst said. ''This is a great way to create private-public relationships.''
Dennis J. Willard can be reached at 614-224-1613 or dwillard@thebeaconjournal.com.
COLUMBUS: Bob Kulinski has been the United Way of Summit County's director for a decade and the challenges facing the 46 agencies under his umbrella have never been greater.
Get the full article here.
Comments
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Akron, OH
Posted 02:54 AM, 05/07/2009
Strickland = Weasel
Don't say that we didn't try to warn you before the last election!
Posted 05:45 AM, 05/07/2009
With this bonehead move by Strickland and Obama's plan to reduce an individual's right to a tax credit for charitable contributions, the poor and minorities are being abandoned by the democrats. Studies show charitable contributions are always higher under a republican president.
Let's see if anyone even cares in the next election.
Rio Linda, CA
Posted 07:21 AM, 05/07/2009
This is the greatest thing I have ever seen!
The allegedly non-partisan United Way and Kulinski held a press conference a few years ago at his office and invited Jim McCarthy, Tim Ryan, Plusquellic and a few other Dems, and did not invite one Republican to the "Bash Bush" fest at his office.
United Way is the same group that hired Democrat Barbara Sykes as their president after her failed statewide run. I believe they also hired a former House Democrat from the Dayton area also.
Needless to say Alex Arshinkoff was pilloried in the local press for exposing the truth about Kulinski and the local United Way for what it is.
The United Way concept is a sham anyway. They take your charitable contribution, keep 40% OF YOUR DONATION for EXPENSES, then they force the organizations to BEG THEM for the money!!
What a racket!
I'm voting for Strickland next year BECAUSE he did this!
Akron, OH
Posted 07:32 AM, 05/07/2009
Mebbe Teddyboy needs the charity dollars to impliment his school fundin' plan.
Ever-buddy remembers that one. It's the plan that was promised durin' his campaign, took two years to come up with a plan, no-buddy truely understands the plan, includin' Teddyboy, and it won't be enacted durin' his tenure.
Rio Linda, CA
Posted 08:07 AM, 05/07/2009
Does this mean Bobby kulinski is not going to have any more United Way scavenger hunts through Democrat judicial candidates headquarters???
Akron, OH
Posted 08:12 AM, 05/07/2009
Sounds like a complete waste of money to me.
akron, oh
Posted 09:28 AM, 05/07/2009
Is your ss# the mark of the beast? Think about it
akron, oh
Posted 10:30 AM, 05/07/2009
I think that's the largest part of the problem, government agencies are operating like a profit machine, when they shouldn't be. The government should have NO NEED to form a "non-profit" entity since it should be one in the first place.
AKRON, ohio
Posted 01:35 PM, 05/07/2009
Maybe now the U.W. won't have money to fund the International Institute on North Hill anymore. The I.I. brings "political refugees" to Akron and gets them on govt. assistance. Thanks alot I.I., you're worthless.
Posted 02:44 PM, 05/07/2009
a broad set of economic theories of social organization advocating state or collective ownership and administration of the means of production and distribution of goods, and the creation of an egalitarian society.
akron, oh
Posted 09:38 PM, 05/07/2009
I had to 'volunteer' a few hours as part of a college class.
yes, the International Institute is worthless. WSP you are correct.
