Learning in East New York

On its fifth anniversary, the non-profit Groundwork Inc. held its inaugural fall benefit in the Time Warner Building on the Upper West Side. “I’ll keep this brief. It’s very dangerous to keep 400 people from an open bar,” said Richard Buery Jr., co-founder and executive director of Groundwork, to laughter from an audience that included Kevin Fraser, a correspondent for the television show Entertainment Tonight, and Silda Wall Spitzer, the wife of New York’s governor. Standing in front of a mammoth web of windows, Buery gestured toward the expansive view behind him: Columbus Circle lit by the bright glow of its fountain lights, the still trees of Central Park and the red taillights of cars cruising south on Broadway Street, the silhouette of the city’s skyscrapers against the clear night. Buery remarked on the beauty of Central Park and spoke about the reason why everyone had come together that night: less than 14 miles away was East New York, where 10 percent of the people go to college and the high school graduation rate is 40 percent. The crowd–a diverse group of men and women in suits and dresses that paid $300 or $1000 for a ticket–remained silent. Buery then pointed out Groundwork’s successes. The entire graduating class of the non-profit’s high school program–nine in 2006 and 14 in 2007–walked away with diplomas. Ninety-five percent of those students went to college, getting into such places as Cornell University, New York University, Virginia State University, and Kingsborough Community College. The audience applauded. The event and silent auction would raise over $545,000.

FORTUNE Small Business: With record Sotheby’s sale, art market keeps booming

With record Sotheby’s sale, art market keeps booming

Collectors dropped a historic $362 million at Sotheby’s evening contemporary art auction this week – a sign that for dealers and gallery owners, good times are still rolling.

By Herman Wong

First Published: May 16, 2008: 6:22 PM EDT

(FORTUNE Small Business) — The sky may be falling on the economy, but the art market is flying high.

Sotheby’s spring contemporary art auction on Wednesday evening was the most lucrative auction in the company’s history, blowing past the high end of Sotheby’s estimate with sales totaling $362 million, including a record $86.3 million for a 1976 Francis Bacon triptych that had been expected to sell for about $16 million less.

Such extravagant consumption is an optimistic sign for art dealers.

FORTUNE Small Business: Lawsuit: ‘My company waterboarded me!’

A former Prosper Inc. employee is suing his ex-employer over an extreme ‘team-building exercise’: gang waterboarding.

By Herman Wong

Last Updated: April 23, 2008: 11:29 AM EDT

(FORTUNE Small Business) — Is the slumping economy depressing your sales team’s spirits? Here’s an idea: Pump them up with a little waterboarding!

In January, Chad Hudgens sued his former employer, Prosper Inc., claiming that what was billed as a team-building exercise ended up using a motivational tool previously reserved for enemy combatants. According to Hudgens’s complaint, it really was a bonding experience: Co-workers held his arms and legs to prevent his escape while a gallon of water was poured into his mouth and nose so he couldn’t breathe.

Other employees at the executive-coaching firm, based in Provo, Utah, remember things differently.

“According to one witness a lot of joking was going on, high-fives, and then they all went to lunch,” says Prosper president Dave Ellis, adding that he was unaware of the outing until Hudgens complained.

As for the actual technique, Ellis believes the employees weren’t channeling Guantánamo but Socrates, who reputedly dunked a prospective student’s head underwater to make a point about wanting to learn as badly as wanting to breathe.

“I don’t know if sales went up or went down” after the training exercise, says Ellis, 56. “I do know the response from the team members regarding the allegations: They felt so strong a backlash to the plaintiff, it solidified some of the morale of the team.”

FORTUNE Small Business: EBay’s new search slashes sales for some sellers

EBay’s Best Match search method is intended to favor sellers with strong customer feedback, but some merchants say their sales have sunk since its launch.

By Herman Wong

Last Updated: April 24, 2008: 5:43 PM EDT

(FORTUNE Small Business) — Improving the buyer experience is the core of eBay’s (EBAY, Fortune 500) growth strategy. The auction site is betting on Best Match, a new default search algorithm, to deliver. But the new system has left many sellers confused and angry.

Numerous eBay sellers have seen precipitous drops in their sales since Best Match became the company’s default search option in March.

EBay’s search algorithm used to be fairly straightforward, returning results based on sort options such as price, recent listings, or auction ending times. The proprietary, secrecy-shrouded new Best Match formula emphasizes seller feedback ratings from past customers, as well as past customer buying patterns. Consequently, some vendors now find their items buried deep in search results and can’t figure out how to surface them.

“Morale is at an all time low for sellers,” says Ina Steiner, 45, editor of AuctionBytes, a trade publication for online merchants. “There are obviously some sellers who are benefiting from these changes. But there’s an overwhelming number of sellers who are feel they are not benefiting and are frustrated.”