http://www.newjerseynewsroom.com/sta...its-giving-outNewark Charter School Fund spending more on itself than it's giving out
Tuesday, 28 December 2010 09:42
BY JOE TYRRELL
NEWJERSEYNEWSROOM.COM
In its first two years of operation, the Newark Charter School Fund spent more on consultants and internal compensation than it gave in grants to local schools.
Tax records show that administrative expenses accounted for 42.6 percent of the fund's expenditures in 2008-09, which non-profit monitors describe as an unusually high amount.
While putting almost $2.4 million into compensation for its own officers, staff salaries and consulting fees, the fund gave barely half that to individual schools.
Charity Navigator of Glen Rock, N.J., analyzes more than 5,500 non-profits with at least $1 million in annual revenues. "Most of them spend only about 15 percent on administration," said Sandra Miniutti, the organization's vice president for marketing.
In an era when some non-profits try to create the appearance of efficiency by classifying overhead costs as projects or services, "it's almost refreshing that someone is admitting that so little is going to programs," said Mike Elmaleh, an accountant and auditor of non-profit groups. "In a twisted way, it's very honest."
The largest single recipient of NCSF money over the two years was the New York-based New Leaders for New Schools, where fund partner Mashea Ashton was executive director and remains a senior advisor. The organization recruits and trains aspiring principals, often through year-long residencies with mentors.
Launched with fanfare in April 2008 with the backing of deep-pocket private foundations, the NCSF has seen the limelight stolen by an even more dramatic bit of philanthropy, Facebook billionaire Mark Zuckerberg's $100 million pledge to Newark schools in September 2010.
The fund's record illuminates the challenges facing the Partnership for Education in Newark as it begins implementing the Zuckerberg program by spending $1 million on public outreach.
While PEN seeks public input, the fund has adopted an increasingly low profile. For almost two years prior to the Zuckerberg announcement, the NCSF did not post a news release, press report or staff interview on its website.
Asked earlier this year what grants the fund was providing to Newark schools and groups, fund officials declined to answer. After back-and-forth over why the question was being asked, fund spokesman Bruno Tedeschi said, "We're conducting an internal review as to how much information we have to give out."
The NCSF did not respond to requests for comment on this story.
The NCSF is one of a growing network of philanthropic groups formed with the backing of Newark Mayor Cory Booker....Booker's education aide, De'Shawn Wright, left to become a partner in the fund, although his future there is uncertain after being named deputy mayor for education in Washington, D.C. on December 22.