Harvard loses $1.8 billion in cash
In handing over a chunk of its operating cash to Harvard Management Co., the firm that oversees the school’s endowment, Harvard University lost almost $2 billion in operating funds in fiscal 2009, The Boston Globe reported Oct. 17 (see Harvard cash story). Rather than stashing its spending money in bank-like accounts, the school invested it with its endowment fund, which lost about 27 percent of its value during the year.
Goldman Sachs and Morgan Stanley invest in charity
On the same day it announced a $16 billion bonus pool for employees, Goldman Sachs donated $200 million to its charitable foundation, while rival Morgan Stanley unveiled its new “Step Up to the Plate” program, an effort to prevent and treat malnutrition in children, Reuters reported Oct. 19 (see Morgan, Goldman story).
Harvard pays $500 million to exit interest-rate swaps
Harvard University lost at least $500 million when it bet that interest rates would rise, Bloomberg News reported Oct. 17 (see Harvard interest rates story). The school was forced to pay over $497 million in fiscal 2009 to get out of the $1.1 billion it invested in interest-rate swaps, and has agreed to pay additional money over the next several decades to offset similar swaps.
Nonprofits struggle with executive compensation
Jane McIntyre, the new executive director of United Way of Central Carolinas, requested a salary of $150,000, less than the $365,000 salary and $1.2 million retirement package that led to the ouster of Gloria Pace King, McIntyre’s predecessor, The Charlotte Observer reported Oct. 19 (see nonprofit salaries story). McIntyre’s request illustrates problems nonprofits face in providing competitive salaries for executives without inviting public outcry over paying too much.
Regulatory path clear to convert newspapers to nonprofits
Newspapers could be converted to nonprofit entities without new laws or IRS changes, says a new report from Harvard’s Shorenstein Center on the Press, Politics and Public Policy, Editor and Publisher reported Oct. 19 (see nonprofit newspapers story).
Atlanta-area nonprofits struggle
While economists say the recession may be ending, nonprofits in the Atlanta area continue to grapple with rising needs and falling donations, The Atlanta Journal-Constitution reported Oct. 19 (see Atlanta nonprofits story). Seven in 10 of the area’s nonprofits say demand for their services is up, while over six in 10 report falling donations, says the report from the Georgia Center for Nonprofits.