Category Archives: Not-for-profits

How are Virginians Preparing for the Coming Food Price Shocks?

by James C. Sherlock

Virginians have only begun to experience price inflation at the grocery store.

Price increases are in the food pipeline that will be a much bigger problem starting this summer.

Farmers and ranchers invest up front. They borrow money to do it. They are incredibly efficient at what they do, but are at the mercy of input prices. They must wait until their crops and animals are sold to recoup their investments.

Everything farmers and ranchers do with their farm machinery requires diesel. So do the trucks that move crops to those who prepare them for our use and then to market. Diesel prices are expected to reach more than $6 per gallon this summer, a 35% increase from current prices. Inventories are low.

Most fertilizer is an oil derivative and has skyrocketed up to 300% since early 2021. On average, fertilizer in March of this year was 35% more expensive than it was in the fall of 2021, with Roundup up nearly 90%. In six months.

Of course, the feed ranchers buy for their animals comes from the produce of America’s farmers.

Producer prices that reflect what they have paid for diesel and fertilizer and the trucking costs of moving those crops are predicted to reach grocery stores in the summer and fall. That hardly suggests that the 9% inflation recently seen in retail food prices is the end of it.

It is important to ask what our governments and our best charities are doing to prepare. Continue reading

The Richmond Times Dispatch, “Hate Groups” and Journalism

by James C. Sherlock

The Hanover County School Board (HCSB) is seeking legal assistance in reviewing its transgender policy from the Alliance Defending Freedom (ADF), a conservative legal organization that provides its services pro bono.

ADF’s key values that it goes to court to defend are religious freedom, free speech, marriage and family, parental rights, and the sanctity of life.  It has  won 80% of its court cases and played a role in 64 victories at the United States Supreme Court.

The HCSB, the target of an ACLU lawsuit, wants to know if their transgender policy is defensible in court.  ADF offered to review the policy and advise on modifications if any and a defensive strategy for free.

Seems reasonable.

But not to the Richmond Times Dispatch (RTD). Continue reading

The National Association of School Psychologists is Going to Get Its Members Fired

George Will

by James C. Sherlock

I had dinner with George Will once years ago aboard ship. He is very smart, uncannily observant, understatedly amusing and a terrific dinner guest.

He published yesterday in The Washington Post a column, “Witness how progressives in government forfeit the public’s trust.”

The National Association of School Psychologists (NASP) has proven that Mr. Will’s observation of progressive behavior has escaped the confines of government and infected nonprofits.

As proof of its commitment to progressive dogma, NASP has published a position statement, Promoting Just Special Education Identification and School Discipline Practices. The redefinitions of roles for and recommended assumptions of authority by school psychologists recommended in that paper are absolutely breathtaking. It unintentionally but very effectively challenges the trust of parents, teachers and principals in the very professionals it represents.

NASP wants them to devalue objectivity, the results of tests that only they are qualified to perform, and assume the roles of school sociologists, principals and assistant principals. Roles the NASP defines, of course, with — wait for it — progressive dogma.

Let’s assume they do that. Two related questions:

  • Who in the schools or among the parents will ever again trust school psychologist evaluations? The NASP has now set them up to be sued. Successfully.
  • What school principal will have them?

Continue reading

Looks Like We’ll Be Hearing a Lot More from the “F— UVA” Lady

Hira Azher

by James A. Bacon

I get a lot of unsolicited emails in my inbox from liberal advocacy groups around Virginia. I don’t block them because I think it’s important to know what people have to say, even if I don’t usually agree with them. Imagine my surprise when an email arrived today, introducing the new communications and digital outreach coordinator for Virginia Interfaith Power & Light — Hira Azher.

Bacon’s Rebellion readers may remember Ms. Azher as the resident of the University of Virginia Lawn who made quite the name for herself by posting “F— UVA” in bold letters on her door. For many, that incident exposed for the first time the depth of animosity toward the university, Thomas Jefferson and established institutions generally that exists at UVa. It certainly awakened me to the degree to which UVa in recent years, most notably during the tenure of President Jim Ryan, has become an incubator of grievance, resentment and hate.

In the letter of introduction to subscribers to the Virginia Interfaith Power & Light newsletter, Azher tells all about herself. Thinking this might be of interest to readers who have followed the Lawn controversy at UVa, I am republishing it here. Continue reading

Medicaid and Medicaid Rate Increases Boost Virginia Hospital Profitability

The Business of Healthcare

by James C. Sherlock

Virginia in 2018 both expanded Medicaid and increased Medicaid reimbursement rates.  

Those changes orchestrated by Virginia hospitals took effect in 2019 and resulted in a major financial windfall to those same hospitals.

I have compared the 2018 and 2019 Hospitals Operating and Total Margins spreadsheets published by the state through its contractor vhi.org. They provide detailed financial performance information for every hospital in Virginia. The 105 hospitals in 2019 included acute care, rural critical access hospitals, children’s, psychiatric, rehabilitation and sub-acute hospitals.

We will see that when the Medicaid changes kicked in in 2019, Virginia’s wealthy urban hospital systems got richer.  

But we will also see that those same changes rescued the rural hospitals from barely breaking even in 2018 and enabled them as a class to book extraordinary profits in 2019.

We will ask at the end of the discussion whether the state-provided outsized profitability of Virginia’s untaxed non-profit hospital systems may warrant a re-examination of their tax exemptions. Continue reading

Virginia’s Physicians and Nurses Must Take – Yes, Take – More Influence Over Virginia Health Policy

Virginia Health Service Areas and Health Districts

by James C. Sherlock

As I have studied and reported upon Virginia’s struggles in COVID response, many things have come into focus that need to be done better in healthcare. I have reported on a lot of them here and called for changes.

One major, overarching flaw needs attention.  

Virginia’s physicians and nurses do not have sufficient influence over health laws, policy, regulations, Department of Health oversight or health programs.  Physicians and nurses as organized groups largely were neither consulted or listened to in COVID response policy. If you doubt it, ask them. They are beyond frustrated.  

When you needed a COVID vaccination, were you able to get one from your doctor or nurse practitioner? Didn’t think so.

I will recommend here a way to change the balance of influence. It is important to all Virginians that it indeed be altered. Continue reading

Probably a Coincidence – COPN, the Monopolization of Health Care and the Marginalization of the Poor

by James C. Sherlock

The Business of Healthcare in Virginia

I have been asked many times about how freer markets in healthcare can coexist with our need to treat the poor. I will try to briefly cover some of the complexities of the answer to that question.

And I will show that of all of the government healthcare control systems, COPN is the only one that has proven to disproportionally hurt poor and minority populations by its decisions and their effects.  

And it does so by design. Continue reading

Bacon’s Rebellion Challenge: Donate Your COVID Recovery Check to Charity

Michael Sparks, creator of the UGK+ Soup: Community First Project, delivers a soup meal to Pearl and Gil Wick. Photo credit: Richmond Times-Dispatch

by James A. Bacon

So, I got my government COVID-19 check in the mail. I like getting money from the federal government, especially when it’s a tax refund. But I did nothing to deserve this particular sum. I have not been an economic victim of the epidemic (not yet, anyway) and I feel totally undeserving, especially when so many other people are suffering. Accordingly, I have decided to donate the sum to a local philanthropy to help Virginians in need. And I urge other Bacon’s Rebellion readers to do the same.

The philanthropy I have selected is Underground Kitchen’s Community First program. There are good reasons to support Underground Kitchen, but many other charities are doing wonderful work as well. I hope readers will take the time to share stories of their favorite nonprofit and explain why they make worthy recipients of readers’ federal-helicopter checks.

Underground Kitchen started as a Richmond-based enterprise providing high-end corporate events centered on good food and good wine, often in off-beat locations such as pastures or alleyways. After hitting it off in the Richmond and Northern Virginia markets, the business went national and was preparing to go international when the COVID-19 epidemic hit and effectively shut it down. Founders Michael Sparks and Kate Houck did a fast pivot. Continue reading

WTJU Podcast: COVID-19 and the Economy

By Peter Galuszka

Here’s is the twice-monthly podcast produced by WTJU, the official radio station of the University of Virginia. With me on this podcast  are Nathan Moore, the station general manager, and Sarah Vogelsong, who covers, labor, energy and environmental issues across the state for the Virginia Mercury, a fairly new and highly regarded non-profit news outlet. Our topic is how Virginia is handling the economic fallout from the COVID-19 pandemic.

Why Northam Is Such An Important Governor

By Peter Galuszka

This is a bit like throwing chum at a school of sharks, but here is my latest in Style Weekly.

I wrote an assessment of Gov. Ralph Northam that is overall, quite positive. My take goes against much of the sentiment of other contributors on this blog.

They are entitled to their views but, to be honest, I find some of the essays shrill and not really fact based. If Northam wants to delay elective surgeries at hospitals for a week or so, some want to empanel a grand jury.

An acute care health facility in Henrico County becomes one of the most notorious hot spots for coronavirus deaths and it is immediately Northam’s fault even though the care center has had serious problems that long predated the governor’s term in office.

He’s a trained physician who served as an Army doctor in combat during the Iraq War yet he is vilified as being incompetent and incapable of understanding the COVID-19 pandemic.

It’s like the constant repetition of the “Sins of Hillary” on Breitbart and Fox News about emails and Benghazi.

Like him or not, Northam is bound to be one of the most consequential governors in Virginia history given the gigantic problem of the pandemic. He’s not a showboat salesman like Terry McAuliffe nor a smarmy, small-time crook like Robert F. McDonnell.

Anyway, here’s the piece.

Earmarks are Back

The capital projects section of the budget bill is often overlooked by the media. That has been especially the case this year, with all the major initiatives brought forth by the Democrats.

I am working on one or more submissions dealing with capital development, but, in the meantime, there is one item that deserves a post of its own. Deep in the back of budget bill (HB 30), in Item C-72, there lurks a proposal of dubious constitutionality involving a lot of money.

The Children’s Hospital of the King’s Daughters (CHKD) is a well-regarded, private nonprofit, free-standing children’s hospital in Norfolk. The budget bill directs that $33.4 million in tax-supported bond proceeds be provided for the construction of a 60-bed mental health hospital at CHKD. Continue reading

Virginia Mercury At One: Kicking GOP Butt

Success and quality demand recognition, so congratulations to the folks at Virginia Mercury for one year of e-publication.  It represents the future of journalism, which is nothing short of tragic.

Not that a deep progressive bent (or conservative for that matter) has been unknown in journalism.  Most of the great early publications had political backers, and truly independent reporting has been largely mythical.  Everything old is new again.

I remember years ago learning that the page layout mock-ups marked certain advertising blocks so, for example, no story would be placed about lung cancer on the page selling Marlboros, or the plane crash wouldn’t be reported next to the Piedmont Airlines ad.  But with those ads for all to see, we knew who was paying the bills for the daily output of The Roanoke Times.  We have no idea who is paying the bills and potentially pulling the strings at the new internet periodicals and dailies.  Continue reading

Who Are These Guys, and Where Do They Get All Their Money?

Shenandoah Valley Juvenile Center

The report issued by the Northam administration investigating charges of abuse at the Shenandoah Valley Juvenile Center has come under withering criticism by nonprofit groups that filed a lawsuit last year bringing attention to the treatment of unaccompanied immigrant children held there. The Virginia Mercury has the story here.

While I used the Department of Juvenile Justice report as the basis for a blog post yesterday arguing that people were making much ado about a non-scandal, I have to concede that the criticisms of the report are substantive. By substantive, I don’t presume them to be valid. But they are are not frivolous. If I were reporting the story, I would deem them worth probing to see if they were valid.

An interesting sidebar to the controversy is the revelation of the existence of two nonprofit groups that revealed (or, depending upon your viewpoint, concocted) the abuses the first place. One is the Washington, D.C.-based Washington Lawyers Committee for Civil Rights and Urban Affairs. The other is the Henrico County-based disAbility Law Center of Virginia. Both pursue social-justice work. One hews to high standards of transparency; the other does not. 

The Washington Lawyer’s Committee (WLC) is forthright about its commitment to social justice — or at least a leftist perspective on social justice. States the organization’s Guidestar profile: “While we fight discrimination against all people, we recognize the central role that current and historic race discrimination plays in sustaining inequity and recognize the critical importance of identifying, exposing, combating and dismantling the systems that sustain racial oppression.”

The organization reported more than $5 million in revenue in its 2016 990 form, makes the forms accessible on its website, and lists 27 employees on its website. Unlike many nonprofits, the WLC is open about where its money comes from. in 2016 about $3 million came from “contributions and grants,” $830,000 from fund-raising events, and $1.8 million from “legal fees and court awards.”

Most impressively (from a transparency perspective), WLC lists many of its major donors, which include Wiley, Rein & Fielding, a K Street law firm ($414,000); Dentons US LLP, also a K Street Law firm ($173,000), and the Morrison & Foerster Foundation, a San Francisco-based foundation ($215,000); the D.C. Bar Association ($80,000); and Kirkland and Ellis, a Chicago law firm ($153,000), among others. WLC reported another $1.7 million in contributions from unnamed individuals who contributed less than 2% of total revenue.

What emerges is a picture of a well-funded activist group funded mainly by wealthy lawyers, which supplements its income by collecting legal fees and awards from the lawsuits its files. This is not a grassroots organization. It reflects the views of the nation’s liberal legal elite.

In describing what it does, WLC notes a special concern for “people of color, women, children and persons with disabilities [who] are disproportionately forced to live in poverty” (my italics). That may explain the connection with the disAbility Law Center of Virginia. which provides advocacy services across Virginia for people with disabilities.

The disAbilities Law Center is not nearly as transparent. Its 2015 990 form reported $2.9 million in revenue, and its website lists 34 employees. But the nonprofit did not reveal who its major contributors are. More than $2.6 million was classified as “Government grants (contributions),” another $109,000 was described as “National Disability Rights,” $61,000 came from “other attorneys fees,” and $4,000 from settlement fees. The nonprofit reported no revenue from membership dues or fundraising events. As with the WLC, it is safe to say that the disAbilities Law Center is not a grassroots organization, but rather relies upon generous benefactors. I would conjecture that the group’s priorities reflect the preoccupations of liberal elites, but further research is required to document the suspicion.

How does a nonprofit focused on disabilities get mixed up with a center holding illegal unaccompanied-minor immigrants? In its own description, the disAbilities Law Center is part of a “nationwide network of organizations known as ‘Protection and Advocacy systems,’ designed to offer an array of education and legal representation services to people with disabilities and to combat abuse and neglect in both governmentally operated and privately operated facilities.”

The federal government officially recognized the disAbilities Law Center in July 2018 as a group with “authority to monitor conditions and treatment in immigration facilities if those facilities have residents with disabilities.”

So, what does all this mean? The Virginia Mercury was the only media outlet to report today on the follow-up criticism to the report. Reporter Ned Oliver describes the groups as “advocates for the immigrant teens,” never mentioning their social-justice mission or the fact that they are part of a larger constellation of organizations seeking to influence public policy.

Now, this network may be totally benign and above-board. Or it may be part of a larger coalition of nonprofit and advocacy groups intent upon undermining the Trump administration immigration policy by filing lawsuits and generating publicity. I don’t know the truth of the matter. My point here is not to criticize either group, for I have no tangible basis for doing so, but to raise the kind of questions that the media should be asking when they report on the Shenandoah Valley Juvenile Center controversy. If a right-wing legal advocacy group were filing a lawsuit, the ideological orientation of the group surely would be noted in any story. The same rule should apply to liberal-progressive groups and their causes.

Love Is A Juicy Tomato, A Ripe Melon

“We as a country have fallen out of love with healthy fruits and vegetables.”

Dominic Barrett said that while sitting at a picnic table a few feet from an acre of healthy fruits and vegetables, a new urban garden in the heart of Northside Richmond created by Shalom Farms.  The location is in my neighborhood beside my normal walking path.  Looking for a story I asked Barrett to meet me there and talk.

Turns out the story is there is no big story, and it’s told from time to time.  This is another example of Richmonders (Virginians, Americans) seeing a problem and doing something about it.  No fuss, no muss, no parade permits, no angry tweets.  The non-profit farm was stared a decade ago as a United Methodist urban mission, has spun off and is now approaching $1 million in annual budget, its staff supplemented by thousands of volunteer hours.

Dominic Barrett, Executive Director Shalom Farms

While official statistics indicate that only one in ten of us eats enough healthy fruits and vegetables, Barrett and his group have plenty of customers for their produce.  Nobody has fallen out of love with fresh-picked tomatoes or corn. Shalom Farms sells product at discounted prices from a “Grown to Go” truck which stops at 11 locations in the city (the stop I saw was bustling), through Richmond Healthy Corner Stores, and give much of it away through a network of other distribution points.

They measure their 2017 output as about 550,000 “servings.”  They also offer food preparation classes, have visitors out to their larger 12-acre farm off Virginia 288 in Powhatan County, and for a few people offer a personalized prescription produce plan to restore health.  A key partner is Health Brigade, formally known as the Fan Free Clinic.

Click on Image for Annual Report

The stories about “food deserts” often fail to mention that decades ago home or neighborhood vegetable gardens or fruit trees were common, even in the city, supplementing purchased food.  This time of year, people were awash with produce grown, given or traded.  At least some of the bounty was then canned or preserved in some other way.  Modern distractions, growing incomes, sprawling supermarkets – all have had a hand in the decline of home gardens.

And of course, as Barrett lists as his biggest lesson from his time in the work, farming is hard and risky.  Why risk a failure from weather or insects when stores have abundant supplies?  But big stores are rare in parts of the city, while cheap and attractive unhealthy food choices are everywhere.  Barrett reported that the group has strong relationships with grocery chains in the area, who do not see Shalom as competition.

The farm on the Westwood Tract inside the city has generated no controversy, Barrett reported.  Five acres are rented from Union Theological Seminary and sit on the edge of a large park-like expanse which is actually at risk for future development.  Many neighbors would prefer the farm to 300 more apartments.

Shalom Farms follows organic practices and has been certified as a natural grower but has not taken the steps (which can be expensive) for official organic certification.  Nor does it preach the Gospel of Organic that discourages people from commercially-grown or even canned or frozen vegetables or fruits.   Fresh is great, local is great, but it’s all better than most prepared foods, so enjoy.

There are aspects of the nutrition challenge Shalom Farms leaves to others, despite what Barrett called “the temptation to be all things.”  The mission is not to rekindle the practice of home gardening, or to feed mass numbers of people.  Like millions of other Americans, they do what they can for those they can reach.  As I said, no big story, nothing new here, but a welcome reminder that more good is being done daily than most realize, and we don’t celebrate that enough.

Moneysaurus and the Trumpenproletariat

Since the end of World War II, the nonprofit sector has consumed an increasing share of the United States economy. Health care, which is dominated by nonprofit hospitals, now hogs an 18% share. The growth of higher education, an overwhelmingly nonprofit industry, continues to outpace the general economy. Millionaires and billionaires are converting wealth into non-taxable foundations on an unprecedented scale, supporting the proliferation of tax-exempt foundations and nonprofit enterprises.

There are now some 1.6 million nonprofit institutions in the U.S. employing 11.4 million people and comprising the third largest employer in the country after retail and manufacturing, according to the Independent Sector website. In 2016 the PHP Staffing Group reported that employment over the previous 10 years had grown 20%  for non-profits compared to 2% to 3% for the for-profit sector.

Americans typically think of the U.S. economy as divided between the government sector and the private sector. But that view grossly oversimplifies the modern American economy. The nonprofit sector, which comprises 10% of the economy, belongs in category by itself. Nonprofit entities are private in the sense that they are not government organizations. But they behave very differently from for-profit enterprises. Most importantly, they aren’t accountable to the public in the same way that government and corporations are.

Americans have a U.S. Constitution and 50 state constitutions with checks and balances. We hold elections to throw out politicians we don’t like. We have the right to attend public meetings and to petition the government. We have transparency rules governing access to information. We have a fourth estate which, though diminished in size and capacity, views its central mission as acting as a watchdog over government. Governance leaves much to be desired — gerrymandering is a travesty of democracy — but the public is acutely aware of the inadequacies, and people are working to fix them.

We have a different set of mechanisms to hold corporations accountable. Executives of U.S. corporations answer to boards of directors, to equity investors, to bond holders, to banks and other financiers, and, most dramatically, to the marketplace. Unlike failed governments, failed corporations go out of business. Their corporate DNA exits the economic gene pool. Government functions as an additional backstop against corporate abuses against the public health and safety.

To whom do nonprofits answer in exchange for the massive benefit of being exempt from taxes? Nonprofits do have boards of directors (or trustees) but they don’t have investors capable of overthrowing them in a shareholder revolt or otherwise enforcing accountability. Most nonprofit boards are docile; they rubber stamp management’s vision for institutional advancement. While nonprofits aren’t as immune to catastrophic failure as governments are, they don’t pay the same price that corporations do for failure. Indeed, nonprofits with large endowments can be immune to outside pressure. Not that anyone notices. Transparency standards are minimal compared to those for government and publicly traded companies. Billions of dollars of so-called “dark money” slosh through the nonprofit system with almost no oversight and accountability. Except when scandals erupt, the fourth estate considers nonprofit activities of secondary interest. 

The political economy of nonprofits. Nonprofit entities have fundamentally changed the nature of American society, the economy. and the political system. Americans have been astonishingly sanguine about the creation of a new set of winners and losers.

Who are the winners? There are two sets of clear-cut winners — the millionaires and billionaires who get to shelter their wealth, and the nonprofit managerial class that gets to administer it. Insofar as the nonprofit managerial class is comprised of university-educated progressives who prioritize social justice issues, poor people and minorities are intended beneficiaries. However, insofar as the therapeutic ministrations of social-justice minions are counter-productive — a point I have argued repeatedly on this blog — the poor and minorities may be in actuality more victims than beneficiaries.

Whatever may be the case in that particular regard, the priorities of millionaires, billionaires and nonprofit administrators rarely extend to the well-being of working-class and middle-class Americans — especially the alienated, white Trump-voting segment of the electorate whom some have labeled the Trumpenproletariat.

These biases are most clearly visible in the higher education sector. The number one goal of the managerial class at colleges and universities is institutional advancement: building edifices, programs, and bureaucratic empires that maximize the prestige of the institution. In the pursuit of this goal, the managerial class is responsive to two main constituencies: (1) affluent alumni and their offspring (commonly referred to as legacies) whose good will they cultivate for gifts and benefactions, and (2)  lower-income and minority Americans in alignment with the leftist, politically correct value system of academe. The Trumpenproletariat, representing some 40% or so of the nation’s population, has zero influence. Continue reading