logo logo
giving banner
Donate
    • Membership
    • Donate
  • Social Justice
    • Racial Justice
    • Climate Justice
    • Disability Justice
    • Economic Justice
    • Food Justice
    • Health Justice
    • Immigration
    • LGBTQ+
  • Civic News
  • Nonprofit Leadership
    • Board Governance
    • Equity-Centered Management
    • Finances
    • Fundraising
    • Human Resources
    • Organizational Culture
    • Philanthropy
    • Power Dynamics
    • Strategic Planning
    • Technology
  • Columns
    • Ask Rhea!
    • Ask a Nonprofit Expert
    • Gathering in Support of Democracy
    • Humans of Nonprofits
    • The Impact Algorithm
    • Living the Question
    • Nonprofit Hiring Trends & Tactics
    • Notes from the Frontlines
    • Parables of Earth
    • Reimagining Philanthropy
    • State of the Movements
    • We Stood Up
    • The Unexpected Value of Volunteers
  • Newsletters
  • NPQ Online Events
  • Leading Edge Membership

Nonprofit Newswire | Mental Health Agency and Affiliated Foundation Need an Intervention

Rick Cohen
July 15, 2010

 

July 13, 2010; Source: Smoky Mountain News | In western North Carolina, a state-funded mental health agency and a formerly affiliated nonprofit foundation are at war. The state agency, the Smoky Mountain Center, says that the nonprofit, the Evergreen Foundation, has “strayed from its mission and needs realignment.”

SMC established the Foundation many years ago as a “type II supporting organization” to provide funding for the Center, including the Center’s capital (space/facility) needs. Evergreen counters that the Center is trying to control the foundation and its finances, “raid(ing) the foundation” for its $20 million in assets. The Center wants Evergreen “to come back under its auspices rather than operate independently,” a position supported by the commissioners of all seven western North Carolina counties.

Sign up for our free newsletters

Subscribe to NPQ's newsletters to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

On its own volition, Evergreen changed its mission statement in 2009 to remove language about its purpose as a supporting organization for SMC. Why? One reason might be that in the past, both organizations had the same executive director, Tom McDevitt, but two years ago, he left the SMC under less than amicable circumstances, but retained his position running the Foundation.

Depending on the news source, some $13 million to $14.5 million in public (local and state) funds have gone to Evergreen between 1997 and 2009 plus $3 million to $4 million in rent payments (and additional funds for purchase and renovation of facilities). Believing that public funds given to a nonprofit makes them private and not subject to public scrutiny, the foundation appears to have received substantial revenues for several years while spending (or granting out) relatively little: (based on NPQ’s look at Evergreen’s 990s) FY2008 total revenue $2,242,891, total expenditures $561,976; 2007 revenues $2,748,886, expenditures $549,136; 2006 revenues $2,716,608, expenditures $493,077.

In response to criticism, Evergreen has begun giving out more money in grants, though aiming to add organizations other than SMC, since SMC is no longer the region’s only mental health provider. It seems to us that this scrap is silly and unproductive, the state’s mental health agencies and the state attorney general ought to be intervening to figure out—in the open, with public disclosure—just what is happening and how the issues between the two organizations can be resolved.—Rick Cohen

Our Voices Are Our Power.

Journalism, nonprofits, and multiracial democracy are under attack. At NPQ, we fight back by sharing stories and essential insights from nonprofit leaders and workers—and we pay every contributor.

Can you help us protect nonprofit voices?

Your support keeps truth alive when it matters most.
Every single dollar makes a difference.

Donate now
logo logo logo logo logo
About the author
Rick Cohen

Rick joined NPQ in 2006, after almost eight years as the executive director of the National Committee for Responsive Philanthropy (NCRP). Before that he played various roles as a community worker and advisor to others doing community work. He also worked in government. Cohen pursued investigative and analytical articles, advocated for increased philanthropic giving and access for disenfranchised constituencies, and promoted increased philanthropic and nonprofit accountability.

More about: Nonprofit News
See comments

szn-of-change
You might also like
Feeling Invisible, Many Disabled Caregivers Also Need Support
Sara Luterman
Right in Our Backyard: Community-Based Organizations and the Potential to Build a New Democracy
Emily Blank
Built for a Time Such as This: How ABFE Used a Tumultuous Time in History to Uplift Its Community
Chelsea Crandall
Why Doesn’t the Impact of Air Pollution Resonate with Donors?
Rebecca L. Root
What I Found on the Other Side of Being Pushed Out
Nicole Singleton
When She Didn’t Grow Up Seeing Herself in Books, She Became the Librarian She Never Had
Errin Haines

Upcoming Webinars

Group Created with Sketch.
May 28, 2:00 pm ET

Learn Out Loud

Revisiting Maurice Mitchell's "Building Resilient Organizations"

Register
Group Created with Sketch.
June 25, 2:00 pm ET

Reframing Organizational Resilience

Register

    
You might also like
A vintage television dispalying an image of a woman’s hand lighting planet earth on fire with a handheld lighter.
When Broadcast News Abandons the Climate Beat, Movement...
Shilpi Chhotray
An illustration of a woman blowing out a lit match, but an illustration of the earth is peeaking out from under the flames.
The planet is overheating. Why is the news looking away?
Grist
Yellow CLOSED sign hanging in a dusty shop window, conveying themes of business failure, recession, and economic downturn.
Nonprofits in Limbo as Flipcause Bankruptcy Unfolds
Lauren Girardin

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

See our newsletters

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

  • About
  • Advertise
  • Careers
  • Contact
  • Copyright
  • Donate
  • Editorial Policy
  • Privacy Policy
  • Funders
  • Submissions

We are using cookies to give you the best experience on our website.

 

Nonprofit Quarterly | Civic News. Empowering Nonprofits. Advancing Justice.
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.