January Edition 2010 - New York Nonprofit Press

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6 New York Nonprofi t Press www.nynp.biz January ‘10 BoardServeNYC BUILD YOUR NONPROFIT BOARD BoardServeNYC connects nonprofits to a talented pool of New Yorkers who are passionate about service and are ready, willing and able to serve as board members. BoardServeNYC: • Is FREE to New York City nonprofits of all types • Offers referral and matching services that connect the right candidates to the right nonprofits • Matches nonprofits with potential board candidates who have undergone training in nonprofit governance and work in fields, such as finance, marketing, IT, fundraising, law, operations and human resources • Provides support and guidance to nonprofits in how to effectively engage candidates and utilize new board members Visit BoardServeNYC.org to sign up for this free service For additional ways to engage volunteers in service, visit nyc.gov/service PROUD PARTNER EXCLUSIVE FINANCIAL SERVICES SPONSOR GIVE. ADVOCATE. VOLUNTEER. LIVE UNITED NEWS unitedwaynyc.org Human Services Take Hard Hit in Deficit Reduction Plan Human service providers who had been looking to the state legislature for protection from Governor Paterson’s proposed mid-year budget cuts are scratching their heads -- and licking their wounds – after passage of a $2.7 billion Deficit Reduction Plan (DRP) on December 2nd. While the legislature failed to meet Paterson’s $3.2 billion target, the level of cuts for many human service programs was worse than anticipated. Almost as troubling is the lack of clarity over how budget cuts will impact actual agency contracts during the current year. “What the legislature passed goes beyond what the governor himself had proposed,” said John Albert, Vice President of External Relations at The After School Corporation (TASC). For most human service programs, Paterson had sought to eliminate 10% of current year appropriations which were unspent as of November 1st. The bills as passed increased the cuts to 12.5% of unspent funds. At least some advocates and human service providers believe the sector carried a heavier burden to make up for lower than requested cuts to school funding. The 12.5 percent cuts to certain local assistance programs total $390 million and fall out as follows: A $18.1 million reduction to social services programs; A $36.9 million reduction to education and arts programs outside of School Aid; A $41.2 million reduction to health care and aging programs outside of Medicaid; $112.5 million reduction to mental hygiene programs; A $17.4 million reduction to higher education programs; A $156.8 million reduction to transit programs; and A total of $7 million in other reductions. AG Gets Interim Court Order Shutting Down UHO Attorney General Andrew M. Cuomo has obtained an interim court order shutting down United Homeless Organization, Inc. (UHO). The court order requires UHO to immediately halt all charitable solicitations from the public by any means and freezes UHO’s assets, including bank accounts and vehicles. Last month the AG filed a lawsuit against UHO, its founder and president Stephen Riley, and its director Myra Walker, alleging that Riley and Walker used the organization to dupe the public into donating cash to fund services for the homeless, when the money was instead used for personal expenses. “Today’s court order prevents UHO from further exploiting the trust and good will of New Yorkers,” said Cuomo. “But this organization’s bad behavior shouldn’t undermine the public’s willingness to donate to legitimate charities. As my office continues to aggressively monitor the ac- A preliminary estimate of the impact of cuts by program areas was released by the Division of Budget (DOB). (A copy of the list is available at the NYNP website: http://nynp.biz/DRPLOCALASSISTAN- CEREDUCTIONS.pdf) It was unclear whether budget reduction targets included in legislation would change substantially pending further review of actual expenditure levels prior to November 1st by DOB. In at least some cases, advocates were arguing that these assumptions did not match commitments incurred by state agencies due to actual spending by nonprofit providers or local government jurisdictions. Among the anticipated cuts to services for children, families and youth were the following: Youth Development and Delinquency Prevention/Special Delinquency Prevention Program - $2.6 million; Advantage Afterschool - $2.4 million; Extended Day Programs - $3.4 million; Runaway and Homeless Youth - $506,000; Child Advocacy Centers - $448,000; Existing Community Service Providers (CSPs) - $870,000; AIDS prevention and Education - $521,000; Hunger Prevention and Nutrition Assistance Program (HPNAP) - $1,2 million Homelessness Intervention Program - $295,000; Single Room Occupancy $1.4 million Neighborhood Preservation Program - $728,000. Cuts to Office of Mental Health (OMH) programs totaled $57.9 million while services for the developmentally disabled were cut by over $35 million and Office of Alcoholism tivities of UHO and other charities, New Yorkers should feel even more confident in giving this holiday season.” According to the lawsuit filed in New York Supreme Court, New York County, Riley and Walker had UHO workers set up tables across the city with plastic jugs to collect cash donations, telling sympathetic passersby that donated funds would be used for services for the homeless. However, Cuomo’s investigation revealed that money collected went directly to Riley and Walker, was kept by the people working for UHO, or was used to continue the fraud, instead of funding charitable programs or services. The lawsuit charges Riley, Walker, and UHO with engaging in a scheme to defraud and violating New York State’s notfor-profit and charitable solicitation laws. The order was issued by Justice Barbara R. Kapnick of New York Supreme Court. The next court date is set for January 11, 2010.
January ‘10 New York Nonprofi t Press www.nynp.biz 7 NEWS Busted! Nonprofit Administrator Arrested for Stealing SYEP, 21st Century Funds Debby Denise Matthew Campbell, aka Denise Matthewº, was arrested last month on federal bank fraud and embezzlement charges for allegedly stealing more than $40,000 in Summer Youth Employment Program (SYEP) and 21st Century Learning Center funds. The thefts allegedly occurred during periods from 2004 through 2007 while Campbell managed programs at Caribbean and American Family Services (CAFS) and Mid-Bronx Senior Citizens Council. Campbell reportedly stole more than $20,000 during 2004 and 2005 while managing the SYEP program operated by CAFS. Campbell enrolled SYEP participants who were either completely non-existent or did not actually work in the program. Campbell then used the debit cards CAB is Now BronxWorks Citizens Advice Bureau is now Bronx- Works. The agency celebrated its name change at a ceremony attended by friends and supporters, including Congressman Jose E. Serrano, Deputy Mayor Linda Gibbs, Deputy Borough President Aurelia Greene, and Assemblywoman Vanessa Gibson and Bernice Williams, Vice Chair for Bronx Community Board 5. “The old name no longer fits what we do. The new name is a more accurate reflection of our purpose and it makes clear to people that we are a Bronx-based organization,” said Executive Director Carolyn McLaughlin at a ceremony last month marking the event. The Citizens Advice Bureau was founded in the Morris Heights section of the Bronx in 1972. It was based on a British model that emphasized the provision of neighborhood-based walk-in services to help people obtain benefits, address housing matters, and avoid consumer scams. “We have clearly grown beyond that,” says McLaughlin, who has led BronxWorks since 1979. “Our organization is a leading direct service provider for children, working age adults, seniors, and families.” In 2009, BronxWorks was a finalist for the highly-coveted New York Times Nonprofit Excellence Award, a testimony to its superior management practices and outstanding service to low-income individuals, households, and communities. Robert Hess, the commissioner of the New York City Department of Homeless Services, has lauded BronxWorks for its street homeless initiatives, which have resulted in a 72% reduction in the number of homeless individuals on Bronx streets between 2005 and 2009. The name change did not occur overnight or in a vacuum. issued by the New York City Department of Youth and Community Development (DYCD) to pay these individuals and made withdrawals for her own purposes. Campbell reportedly falsified attendance and work records for these phony participants who were assigned to work sites outside New York City. As part of the fraudulent documentation, Campbell falsified letters indicating that the non-existent SYEP program participants were homeless youth living in a Jackson Heights group home operated by another agency where she had once been employed. That agency did not, in fact, operate group homes and the address provided was a residence of an individual whose estate was managed by Campbell’s spouse. In addition to these non-existent “Our board, senior staff, and key stakeholders were engaged in a process that entailed several months of careful review and deliberation,” explains McLaughlin. “We looked at many options before moving ahead with the name change, which is accompanied by a new tagline and logo, as well as a refined mission statement.” A board committee, created by CAB board chair Sean Delany, and chaired by United Way of program participants, Campbell also reportedly falsified work records authorizing SYEP payments for her son and another youth who lived with Campbell In a separate incident, Campbell allegedly stole over $18,000 from a 21st Century Learning Program which she managed for Mid-Bronx Senior Citizens Council. In March 2007, Campbell was terminated by Mid-Bronx after it was revealed that she was simultaneously employed on a fulltime basis by both Mid-Bronx and another agency. It was then learned that Campbell had allegedly stolen more than $18,000 by falsely double endorsing checks made out to other program employees and depositing them into her own bank account. “This defendant devised elaborate schemes to steal thousands of dollars that BronxWorks’ Executive Director Carolyn McLaughlin unveiling the name change of CAB to BronxWorks New York City president and CEO Gordon Campbell oversaw the process. instead should have helped young people, according to the charges,” said Department of Investigation Commissioner Rose Gill Hearn. “This case drives home the importance of DOI’s ongoing efforts with the U.S. Attorney’s Office for the Southern District of New York to expose unscrupulous insiders who loot nonprofits and ensure that they face justice.”
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