About Me 0129: 2011

Monday, December 26, 2011

Making Money on Line

Last year, I wrote about an interesting study with implications for the new generation of nonprofit news organizations — and for those who’d like to see governments more involved in funding journalism.

Analyzing years of data from nonprofits, the study found that nonprofits who received government grants didn’t end up reaping the full benefit of those dollars — because increased giving from governments correlated with a decrease in giving by private donors, a phenomenon known as crowding out.

For every $1,000 given through a government grant, nonprofits reduced their investment in other forms of fundraising by an average of $137. That, in turn, meant an average drop of $772 in gifts from private donors. In other words, that $1,000 check from the government netted only $410, on average, because grant recipients reduced how much they tried to raise money through other means.

Well, the authors of that study, UCSD’s Jim Andreoni and McMaster’s Abigail Payne, are back out today with another study that tries to understand nonprofit fundraising behavior. This time they look at data from Canadian nonprofits, which lets them crunch the numbers in ways unavailable to them in the United States. And they found that crowding out was even bigger than in their study — that government grants led to, nearly dollar for dollar, reduced revenue from elsewhere.

Go read the full paper if you’re interested in the details, but here are a few of the highlights.

Government grants encourage individual donors to give

For individual donors — whether wealthy philanthropists or small-scale givers — it can be a challenge to determine the worthiness of a nonprofit. Andreoni’s research, in particular, has focused on the signals that nonprofits send to try to establish that worthiness. This study finds that a government grant seems to serve as a signal to individuals that a nonprofit deserves their patronage. As Andreoni and Payne put it:

Individuals, who are likely the least well informed of the finances or effectiveness of a charity, use the grants as a signal of quality and are thus encouraged to give by government grants…

…the government grants have a small effect of crowding-in individual donors, which is consistent with a view that individuals are either unaware of changes in government grants, or are using them as signals of the quality of the charity.

Government grants discourage giving by foundations

Andreoni and Payne find that other charities or foundations — think the Canadian equivalents of Carnegie, Knight, Ford, or smaller community foundations — move in the opposite direction, perhaps seeing government money as a good reason to shift funding elsewhere.

Unlike private donors, these institutional donors are likely to be quite well informed about the quality and finances of charities. But as with private donors, there are costs of attracting institutional gifts, such as making applications and accounting for expenses. In contrast to private donors, government grants are less likely to provide any signaling value to institutional donors, and more likely to make the donor institution feel their marginal impact has been reduced, leading to lower giving and more crowding out.

The biggest variable: how much fundraising effort changes

These largest driver of these changes in nonprofit revenue is not the behavior of individual donors or foundations. It’s the behavior of the nonprofit organization itself. Andreoni and Payne’s research has consistently found that nonprofits respond to a government grant by reducing their investment in fundraising — even though fundraising nets a return of about $5 for every $1 spent. The study notes that’s consistent with the idea that “charities find [fundraising] a necessary but unpleasant activity.”

In other words, when a grant comes in, they’re often happy to use that as a reason to reduce other fundraising efforts — which can make the government grant a substitute for old money rather than new money.

This new study finds that nonprofits receiving government grants, for instance, has significantly reduced revenue from galas and other special fundraising events — a reduction of $540 for every $1,000 in government money.

In all, the Canadian data finds that a government grant ends up being a wash: “Each $1,000 in grants reduces revenue from other sources by about $1,000.” But most of that reduced revenue — 77 percent — is due to reduced fundraising effort by the nonprofit, not the result of changed behavior by individual or foundation donors.

In other words, that decline is mostly within nonprofits’ control. For nonprofit news organizations, the key takeaway may be precisely that: Be aware that a new big pile of money might tempt you to scale back other fundraising. Evaluate those efforts independently, not just on how empty or full your coffers might be at the moment — particularly if your aim is to grow, not just to tread water.

Photo by Howard Lake used under a Creative Commons license.

Go read the full paper if you’re interested in the details, but here are a few of the highlights.

Government grants encourage individual donors to give

Individuals, who are likely the least well informed of the finances or effectiveness of a charity, use the grants as a signal of quality and are thus encouraged to give by government grants…

…the government grants have a small effect of crowding-in individual donors, which is consistent with a view that individuals are either unaware of changes in government grants, or are using them as signals of the quality of the charity.

Government grants discourage giving by foundations

Unlike private donors, these institutional donors are likely to be quite well informed about the quality and finances of charities. But as with private donors, there are costs of attracting institutional gifts, such as making applications and accounting for expenses. In contrast to private donors, government grants are less likely to provide any signaling value to institutional donors, and more likely to make the donor institution feel their marginal impact has been reduced, leading to lower giving and more crowding out.

The biggest variable: how much fundraising effort changes

Photo by Howard Lake used under a Creative Commons license.

Tuesday, December 20, 2011

Who's Making Money

“That government is best which governs least,” or so Henry David Thoreau believed, at least. Apparently though, Mr. Thoreau would have been at odds with today’s editorial board at the New York Times, for they managed to find a dark cloud amidst the silver lining of the improving November unemployment numbers that only true statists (and also those hopelessly afflicted by self-flagellating “white guilt” that is the hallmark of the left) could divine.

The Times points out that, although 120,000 jobs were created last month bringing national unemployed down by .4% overall, some 20,000 government jobs were sacrificed at the altar of increasing state, county and city budgetary woes. It was the largest drop for any sector of the economy.

To a leftist, for whom the state is ultimate arbiter of economic, moral and social policy, this represents a “troubling trend that’s been building for years.” The Times goes on to lament: “Those layoffs mean a lower quality of life when there are fewer teachers, pothole repair crews and nurses.” It’s said as though these decisions are made in a vacuum that has nothing to do with the shrinking revenue base unable to match increased spending — spending usually carried out by detached bureaucrats whose job it is to walk into their office each morning, snap open their briefcase and proceed to spend other people’s money. Yes, layoffs always hurt. I would rather have three cops walk my street than two. I’d rather have two firehouses than one within a mile of my home. As for teachers, that depends on who’s at the blackboard.

The problem for statists is, as my own Governor Christie will tell you, there are a finite amount of dollars available to one crafting a budget. States, counties, and cities cannot print their own currency to keep the money flowing, and issuing bonds merely shifts the burden to the next generation while piling on even more debt making the inevitable day of reckoning that much more severe. The federal government, now drowning in $15 trillion of its own mismanaged debt, can no longer extend the lifeline that has served as a substitute for local fiscal discipline. As with other aspects of left-wing big government/low growth models now collapsing under the uncompromising weight of mathematics, what these employment figures show is that the great reset to where 2+2=4 again is now impacting the statehouse and courthouse as well as the White House.

To those who view government not as the solution to but the cause of many of today’s budgetary calamities, its shrinking payrolls represent a step in the right direction towards much-needed fiscal discipline. The -20,000 figure, especially when juxtaposed against a growing private sector and shrinking unemployment overall, is a welcome trend in what I would call a shift of hiring bias in favor of efficiency and productivity.

Of course, I am also a racist for cheering on the shrinking of what is clearly a bloated and inefficient government in favor of the private sector. Why? Well, according to the elitist liberal editors of the New York Times, who with self-righteous hauteur consider themselves as the protectors of helpless black and Hispanic races unable to look after themselves, “millions of African-Americans — one in five who are employed — have entered the middle class through government employment, and they tend to make 25 percent more than other black workers.” They go on to worry that:

“The effect is severe, destabilizing black neighborhoods and making it harder for young people to replicate their parents’ climb up the economic ladder.” They then offer up the obligatory academic support: “The reliance on these jobs has provided African-Americans a path upward,” said Robert Zieger, an emeritus professor of history at the University of Florida. “But it is also a vulnerability.”

I am by no means dismissing the very real pain of job loss these statistics imply, but the professor is right. It is indeed a vulnerability. It means that, once again, thanks to their modern masters on the far left, black and now many Hispanic Americans have been placed in a position whereby much of their financial security comes not from themselves but rather the State on high, if not in the form of outright welfare, then in the form of a government paycheck. But naturally, the liberal elites do not blame themselves for this dependency that leaves their wards exposed to devastating layoffs when the inevitable austerity measures waiting for them at the end of the quasi-socialist rainbow commence.

So in their world where noble intentions are all that matter, no matter how much harm they end up doing the very people they claim to want to help, who then is to blame? You guessed it. Republicans.

“Many Republicans, however, don’t regard government jobs as actual jobs, and are eager to see them disappear.” Though many of these jobs are vital services, as anyone who has walked in a DMV or Post Office can attest, they are not all essential. Furthermore, they do not contribute to economic growth in the same way a private worker does simply because they do not earn their incomes from the fruits of wealth creation; rather, their incomes are derived from the extraction of taxes from wealth created by others. If I make one dollar and pay you fifty cents, it doesn’t alter the fact that only one dollar has been created. If a friend and I each make a dollar and we each give you fifty cents, two dollars have still been created, not three, and so on — Keynesian howls from frumpy, bearded Princeton Nobel laureates to the contrary notwithstanding. So in that respect, Republicans (and I suspect many Democrats who must also own calculators) are correct.

The Times editors of course do not find mathematics at the heart of the GOP’s satisfaction over the shrinking government rolls, but rather a sinister political calculation that targets, what else, race:

“Republican governors around the Midwest have aggressively tried to break the power of public unions while slashing their work forces, and Congressional Republicans have proposed paying for a payroll tax cut by reducing federal employment rolls by 10 percent through attrition. That’s 200,000 jobs, many of which would be filled by blacks and Hispanics and others who tend to vote Democratic, and thus are considered politically superfluous.” [My emphasis added]

But then I must ask the Times: Does this then mean there is a flip-side by which Democrats intentionally keep bloated governments afloat (often by increasing taxes on the private sector) in order to pacify with government jobs those same minorities whose votes they consider essential to their maintaining power? Assuming even the Times was correct in its take on GOP motives, then it must be assumed that the motive of the Democrats is to keep minorities employed in large swaths of a wasteful and bloated government labor force just to keep their own political machines running, correct? Or are left-wing politicians just more noble creatures than the rest?

What the Times fails to see is that their own editorial is as much a condemnation of liberalism as the conservatism that seeks to unravel it — and also has the brazenness to celebrate a shift of employment from the wealth-redistributing government to the wealth-creating private sector. By proffering the bogus notion that the necessary shrinking of government payrolls is tantamount to a racist assault on the black and Hispanic communities, liberal elites refuse to look themselves in the mirror and ask what party and power group is most responsible for putting minorities in such a position of dependency on the government paycheck to begin with. So long as there are votes to be bought, neither the Democratic machine nor the Times editors who protect it will never question whether it is a good thing that such a large segment of blacks and Hispanics are now so “vulnerable” to the unavoidable hammer of mathematics coming down hard upon a state-centered system upon which so many depend for their very livelihoods… no matter how many votes it means for them in the next election cycle.

Doubling down on their commitment to protect Wall Street at all costs, Republicans aren't budging from their opposition to an effective Consumer Financial Protection Bureau. They've vowed to block any nominee to head up the new agency unless the administration allows them to gut the agency, making it completely powerless to do what it was created to do: level the financial playing field for middle class families. And that's just what they're doing.

Senate Republicans on Wednesday showed no signs of backing down from their threatened filibuster of President Barack Obama’s nominee to head a new financial watchdog agency, even as Democrats framed the fight as a stark choice between Wall Street and Main Street. [...]
Cordray’s nomination is destined to fail in the Senate on Thursday, with Republicans nearly united in their opposition to the former Democratic Ohio attorney general. Massachusetts Sen. Scott Brown is the only Republican who’s publicly backed the nomination, saying Cordray should be confirmed with a simple majority, not the 60-vote threshold the GOP has insisted on to avert a filibuster.

The GOP doesn't want the CFPB doing radical things like the project they're rolling out today.

In another blow against fine print, the Consumer Financial Protection Bureau comes to Cleveland today to unveil a new model credit card agreement that's shorter and easier to read.
The new form whittles credit disclosures, which average about 5,000 words, to 1,000 words contained in a slim two pages of readable type.

How crazy and dangerous is that, informing credit card holders of how their cards work? (Here's the CFPB's template for an agreement.) Wall Street, and Republicans, don't want informed consumers. It's much harder for them to steal your money if you know how they're doing it.

The only resolution to this won't be a permanent one. President Obama is going to have to ratchet the fight up a notch, and give Cordray a recess appointment. He's already vowed to veto any efforts to weaken the CFPB, and highlighted Cordray's nomination and a strong CFPB in his speech yesterday in Kansas, saying:

"Every day we go without a consumer watchdog in place is another day when a student, or a senior citizen, or member of our Armed Forces could be tricked into a loan they can't afford—something that happens all the time.
"Financial institutions have plenty of lobbyists looking out for their interests. Consumers deserve to have someone whose job it is to look out for them. I intend to make sure they do, and I will veto any effort to delay, defund or dismantle the new rules we put in place."

A recess appointment would take the fight to Republicans, and give the Bureau the director it needs.

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Monday, December 19, 2011

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Thursday, December 15, 2011

Tips on appointing a appliance repair provider Appliance Repair Chicago

Tips on hiring an appliance repair service

1. For virtually every decisions including picking a major appliance repair company, find recommendations to begin different appliance repair companies through persons in whose views a person confidence, like the family as well as good friends that have received encounters throughout selecting appliance repair providers before
.

2. Contemplate if it's additional cost-effective to be able to basically unhealthy the appliance to get a brand new a single than to get this restored by the specialist. Cost-free rates is also due to various appliance repair chicago
on the net or over the product. Because of this, you will not need to ebook a proper program call for a specialist straight away and find incurred inflated service fees for any uncomplicated fix you could even accomplish by yourself. At this time, you are able to pre-judge whether you need to restore or perhaps swap this faulty kitchen appliance
.

3. A different component that will help you to take into consideration regardless of whether you ought to seek the services of an established appliance repair pc professional could be the regular life expectancy of your kitchen appliance. Execute a tiny online investigation to determine but if your equipment could possibly be too outdated of course, if fixing it's going to you should be a new waste associated with dollars along with time period
.

4. Using old models of dishwashers, washing machine's, along with refrigerators, they will tend to have an even better quality with regards to their particular central parts compared to recent low-end models. Globalization has lead to having certain little regions of a lot of devices being stated in bulk in numerous areas on the planet; this specific added towards creation of low-cost, fairly low-quality inner elements. There are numerous excellent and incredibly resilient old-model home appliances that could be value mending
.

5. An easy react connected with unplugging then insert returning a digital product can on occasion crystal clear the situation pertaining to small electric malfunctions in cleaners
.

6. When you choose a expert appliance repair technical assistant into the future above as well as accomplish this mend for you personally, you may want to check out google with regard to appliance repair guides that will explain the condition and existing popular do-it-yourself repairs. On the web appliance manuals tend to be free of charge and could give you complete particularly how to carry out minor fixes pertaining to certain models of kitchen appliances
.

7. Should you have the actual knack correctly and also would rather carry out technological property maintenance tasks alone, you must perform like a specialist and wear basic safety cups and also steel-toed safe practices shoes and boots. It's also sound judgment to unplug the appliance first before you begin unscrewing anything at all. Sharpened sides are present interior dryers so that you need to be cautious when focusing on one particular
.

Why you should hire a professional appliance repair service?

Selecting an expert to perform a good appliance repair could keep people via losing your time and energy tinkering with the particular processes of the home appliance for you to don't understand. Attempting to make it better alone may even lead to more deterioration on your own equipment. There are numerous affordable appliance repair providers being publicised on the internet as well as within the phonebook. You possibly can always make contact with the correct one who are able to correct whatever deterioration machine you may have at your home
.

Therefore residence product objects which can be a lot more cost-effective to correct when compared with to switch. Microwaves, refrigerators, freezers, ranges, dryers, ranges, for example. boost each of our daily lifestyles; all of us sometimes possibly discover comfort and ease by using these people. Whenever they get shattered or perhaps go wrong properly, eliminating all of them immediately in support of a brand new one will not be monetarily noise. You'll find a great number of circumstances whereby your malfunctioning is very small, in support of some minimal changes as well as uncomplicated maintenance tasks can make that possibly be as well as brand new yet again
.

Pros which provide residence restore services can be found on the net or maybe within the phonebook, and also some of them are going to are available above or consult a person for the mobile phone to provide no cost estimations in feasible costs intended for fixing a clear residence appliance
.

What to look for when hiring a professional appliance repair service?

Request from relations and also friends primary intended for advice. The individuals in whose views you confidence are usually the best method to obtain data regarding various other property appliance repair products and services they may have attempted ahead of.

If you are using either a great on the net appliance repair forum or perhaps the on-line advertisement of an commercial appliance repair firm, you then must ensure who's states “licensed in addition to insured” so that you can make sure you happen to be obtaining the solutions from a specialized who may have underwent some sort of formal appliance repair training. The company’s state permit should also end up being something else you will want to look for. The permission variety must be appropriate and also the insurance plan needs to be current. Moreover, you need to analysis precisely long that will appliance repair corporation has been around organization in addition to where places that runs; a corporation using a substantial amount of community background is commonly much more reputable given it is going by means of selected programs and keep it is specialist reputation in the marketplace. One more thing not to ever disregard even though seeking a great appliance repair service can be set up company will be listed throughout significant world-wide-web websites such as discolored internet pages, The search engines routes, Bing regional, for example. The idea should be listed a place; a very obscure just one could just be a great novice new venture or possibly a fraud. You will need to additionally remember that appliance repair chicago
which often publicise to a great extent may perhaps charge much greater than these smaller regional people that will count a lesser amount of about advertising but hefty for the word-of-mouth propagate of the great mend solutions.

If you have ultimately decided on that appliance repair business to visit along with, you might make inquiries pointedly regarding the label in the technical assistant who'll be maintenance anyone along with quickly ask to talk with your ex initial. At this point, it is strongly recommended which you question your technical assistant the length of time they has become correcting devices. Supply the technician information in the dilemma. Supply each of the signs or symptoms thus that he / she can easily consider doable reasons for the appliance breakdown. The tech will likely provide some possible leads to with the machine trouble perhaps previous to he or she offers the chance to arrive over to your dwelling. Lastly, obtain an estimate in the repair charge after getting layed out the problem. An established specialist is actually ready to provide 1

It’s vital that you remember that if you are seeking a great appliance repair organization, make sure to examine their popularity. Find out what additional prior clients have to state concerning all of them. Check out: www.aaaasc.com for more information regarding tracking down an established appliance repair in Chicago or just lookup by using appliance repair Chicago. Once you've your website, have a look at their own support locations to determine should they possess coverage where your house is located. Then call the quantity for the location and also plan a scheduled appointment.

Saturday, December 3, 2011

Make Making Money