Giving away money can be done smartly, bank official says

Mulholland, as senior vice president of community relations, handles philanthropy for Citibank in Nevada. She takes her job seriously. In the banking world, getting bang for your bucks is expected, even demanded. “I love this job. I think this job and what I do make a difference. How many people can say that?”

Long ago in Las Vegas, charity donations were done on a handshake, she said. Someone needed $10,000, a casino owner said, “You got it.”

That has changed. Companies now designate people such as Mulholland to help decide who should or should not get their money, a job Mulholland has held since 1984.

She has a checklist of questions that should be answered “yes.” It works for her and would work for you.

■ Is it a 501(c)(3) nonprofit charitable organization?

■ Does it have audited financials?

■ Does at least 85 percent of the funding go to programming?

■ Does it help people who need help?

■ Does its mission and work strengthen and sustain our community?

■ Does it report measurable results?

■ Does it perform consistently and positively?

■ Is it accountable for its money?

■ Is there an opportunity in which Citibank employees can volunteer?

■ Does all the money stay in Nevada?

The only “no” answer might be to the question: Does it duplicate services of other nonprofits?

“Also, I usually ask the board chair what the executive director’s salary is and what percent of the budget is devoted to administrative costs overall. I usually look for 10-12 percent in that area,” Mulholland said. “Every donor to charity in this community should be asking these exact questions, especially in a recession.”

Mulholland continued, “After we’ve given, I ask for reports from year to year. What did you do with that $15,000? How many people did you help? And I want it in writing.”

Citibank’s focus is on strengthening communities and meeting unmet needs. That includes work programs, neighborhoods in distress, affordable housing for seniors and helping low-income people who can’t get food.

The bank’s contributions average between $5,000 and $15,000 a year per charity, and the bank hasn’t cut its giving despite the economic downturn. “But we have refocused to those who really need it,” she said.

The bank is less likely now to buy a table to a big lavish dinner for which some of the money pays for overhead and is more likely to work with charities and try to develop specific programs. “The trend is more program-driven than big gala-driven,” she said.

“Often you develop programs together and tell a nonprofit we’d fund it if you can help these people. All of a sudden, you’re designing a small partnership that can grow.”

Mulholland donated and worked with Foundation for an Independent Tomorrow started by Janet Blumen to help train unemployed and underemployed to get jobs. Mulholland suggested to Blumen that one component should include basic financial education. How to write a check. How to mend bad credit. “We provided some technology so they could go into the classroom and do the vocational plan online,” she said.

Only once has she had to stop funding a nonprofit that didn’t perform.

Sometimes she runs across people with good intentions, who don’t know what they’re doing. The bank won’t fund them.

Nor should you. Good intentions aren’t enough.

Bill Gates knows this. Barbara Mulholland knows this. She wants the bank’s money to be just as productive as Gates’, just on a smaller scale.

Jane Ann Morrison’s column appears Monday, Thursday and Saturday. E-mail her at Jane@reviewjournal.com or call (702) 383-0275. She also blogs at lvrj.com/blogs/morrison.