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Showing posts with label Management. Show all posts
Showing posts with label Management. Show all posts
Monday, October 20, 2014
Nonprofit Knowledge Matters
Thursday, December 5, 2013
Rock n' Roll n' Risk Management - RISK eNews
Rock n’ Roll n’ Risk Management
A friend of the Center, who happens to be an accomplished sound engineer, forwarded a terrific article to us this week about how the best rock n’ roll roadies can do things many music fans might believe are impossible. Why? Well, one reason seems to be that roadies and members of production crews are motivated to do the impossible because the show must always go on.
Why Roadies Are Our Best Bet For Typhoon Haiyan Relief In The Philippines, by Ruth Blatt, published at www.forbes.com, features an interview with Charlie Hernandez, a former roadie and production manager for The Police. Blatt, who writes about “the intersection of rock n’ roll and business,” describes how roadies and the rock concerts they support “descend upon a site and then quickly disappear. Along the way, they face technical complexity, divergent regulations, multiple vendors, language barriers, and the certainty of unforeseen obstacles.”
As we read about how touring professionals came together to provide relief in Haiti and Pakistan after the disasters in those countries in 2010, we couldn’t help but see that the talents of roadies offer valuable lessons for nonprofit leaders charged with ensuring that their missions go on.
Risk Tips from the Road
· Ask for Help and Be Eager to Help — In addition to “somebody to love,” every nonprofit leader needs lots of somebodies to help sustain a charitable mission. The article explains that despite the demands of the work and lifestyle, many roadies and production managers spend their free time helping others. As a result, the best in the business have bigger contact lists in their cell phones than professional match makers. According to our sound engineer friend, keeping a mental note of the skills and interests of people you meet on the road, and saving contact details, are essential to getting the help you need when you need it.
· Close the Loop — Roadies don’t call it a day until every piece of equipment is packed up and on the truck or headed to the airport. The ability to follow-through until the job is completely done is essential to making sure the band is ready for the next stop on the tour. The commitment to closing the loop is applicable in risk management as well. Whether it’s conducting an in-depth review of the nonprofit’s policies and the actions taken by staff after an accident or near-miss, or taking the time to tell a vendor the reasons you’ve decided to change providers, closing the loop is fundamental to preserving trust in key relationships, learning from experience, and inspiring confidence in your mission and team.
· Inspire Loyalty — Blatt’s article explains that “fierce camaraderie” is a must in the tough business of rock n’ roll. That means you’re unlikely to hear about a roadie throwing a fellow roadie under the tour bus, literally or figuratively! Many nonprofit leaders have learned the hard way that you need to earn, rather than insist, on loyalty. True loyalty exists in nonprofits where staff members believe that executives bring integrity to the job each and every day. In the world of risk management, lukewarm loyalty is a downside risk waiting to materialize. When staff are disloyal or disillusioned they are more likely to disregard the risk management policies of the nonprofit.
The Queen song The Show Must Go On was the final track on the rock band’s 1991 album, Innuendo. Written principally by band member Brian May, The Show Must Go On is regarded as a tribute to the bravery and fierce determination of lead singer Freddie Mercury, who continued to perform despite being gravely ill. The song was released as a single, just six weeks before Mercury died in 1991. The song reminds us that nonprofit missions are vital to the health and well-being of individuals, communities and the environment, and therefore must also go on. To reach your goal of becoming an effective risk champion, remember to ask for help and give help freely, close the loop after accidents and near-misses, and inspire true loyalty by leading with integrity.
Melanie Herman is Executive Director and Alexandra Ricketts is Project Manager at the Nonprofit Risk Management Center. Melanie and Alex welcome your feedback on this article or questions about the Center’s resources for nonprofits at Melanie@nonprofitrisk.org, Alexandra@nonprofitrisk.org or(202) 785-3891.
Wednesday, April 17, 2013
The NonProfit Times Weekly E-Newsletter
| IRS Reports 10,000 Fewer Nonprofits In 2012 | ||||||
There were 10,000 fewer registered tax-exempt organizations in 2012 than in 2011. According to the Internal Revenue Service (IRS) Data Book for 2012, which was released Monday, there were 1,484,818 501(c) organizations for the fiscal year ending in September, compared with 1,494,882 in 2011 – a decrease of 10,064, or about 0.68 percent.Read more...
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Saturday, March 9, 2013
National Council of Nonprofits Offers 3 Ways Board Oversight Keeps Nonprofits Out of Trouble
This article was reprinted with permission from Nonprofit Knowledge Matters, a publication of the National Council of Nonprofits.
What is “Oversight” Anyway?
Board members are told that their role is to provide “oversight.” But what does that really mean? We were curious to investigate how board governance “experts” define board “oversight." We compiled this “Top 3 list” in case you are curious too.
1. Follow-through (aka “accountability”). What good is setting policy if the policies aren’t followed? Ellis Carter, Esq., author of the CharityLaw Blog, points out in her piece titled, “Top 15 Non-profit Board Governance Mistakes (From a Legal Perspective)," that exercising oversight is all about making sure that someone (the board) actually follows up on the authority the board delegates to staff and committees:“Oversight is commonly exercised through policies and procedures so long as the board ensures that the policies and procedures are actually followed.” An example of the follow-through challenge for boards is apparent in boards’ relationships with executive directors. In that relationship, appropriate “oversight” includes selecting the “right” person to lead the organization, reviewing and approving the appropriate level of compensation for the staff leader, evaluating his/her performance, and ensuring that there is a leadership succession plan in place. But as we know from numerous surveys and reports, including BoardSource’s Nonprofit Governance Index 2012, one of the oversight balls that boards are most likely to drop is evaluating the executive director’s performance. If boards were better at follow through, they would be regularly evaluating executive directors. More consistent follow-through would also help to avoid common symptoms of tensionbetween the board and CEO that signal insufficient (and indeed, a harmful lack of) oversight.
2. Seeing sustainability, not just dollars (aka “financial oversight”). When a board reviews the organization’s budget or considers whether adequate internal controls are in place, these activities are quite properly part of a board’s financial oversight responsibilities. But too often, the activities focus on the immediate cash flow instead of long-term sustainability. Boards that see their role as monitoring the financial health of the nonprofit, rather than just the financial status, will be more likely to ensure that there will be enough resources in the pipeline to continue providing programs -- or alternatively -- that it’s time to make a course correction. As Jeanne Bell, CEO of CompassPoint, points out in her Nonprofit Quarterly article, "Beyond Financial Oversight, Expanding the Board’s Role in Pursuit of Sustainability," in practice “financial oversight” is often defined as a handful of board members who monitor timely financial reports and drill down on budgets. Unfortunately only infrequently do boards look at the organization’s financial sustainability, which Bell describes as the entire “interdependent mix of programs and fundraising activities that work together to achieve a set of impacts and financial results.” As Jan Masaoka points out in her Blue Avocado article, "Ten Myths About Nonprofit Boards," it’s a myth that approving budgets is the “cornerstone” of the board’s financial oversight. By viewing its financial oversight role through a strategic lens, instead of merely an approve-the-budget lens, boards are more likely to see farther, towards financialsustainability. We like the practical way Andy Robinson and Nancy Wasserman put it in the chapter of The Board Member’s Easier Than You Think Guide to Nonprofit Finances entitled, “Finding the Best Altitude For Financial Oversight.” The authors point out that “inexperienced boards tend to work at the wrong altitude by focusing on details better left to staff….” (How’s that for “oversight”?) They offer a chart illustrating examples of what’s properly the board’s role (example: “use actual financial data for planning, oversight, and evaluation”) versus the domain of staff (example: “develop a diversified fundraising plan reflecting budget goals and organizational needs”).
For more insights from these authors on the board’s financial oversight role, we share this author interview with our readers.
3. Avoiding trouble (aka “legal compliance"). While board members are not expected to know every law or regulation that applies to the operations of the nonprofit they volunteer for, it’s clear that making sure that the nonprofit does not violate any laws (or overstep its mission) is the board’s role. In fact, BoardSource includes legal compliance right at the top of its list of “What do boards do?” What if the board doesn’t know what legal obligations apply? As a fiduciary, the board is expected to either learn – or delegate that role to someone else (which then triggers the follow-through oversight requirement) so that the board can be assured that all the bases are covered. In order to be able to provide oversight in this area, boards should try to learn enough about the applicable legal requirements to ask the right questions, such as “Have we filed all the required annual filings with the IRS?” Fortunately, the IRS has improved its website in recent years so it’s relatively easy to research IRS requirements. For state law requirements, the National Council of Nonprofits’ network of State Associations offers board training and state-specific guidance about legal requirements for charitable nonprofits in their states. Reviewing basic legal requirements during board orientations is one way to prepare new board members for their legal compliance oversight role. But even with that background, some board members may not connect the dots between their own oversight responsibilities and the risks of non-compliance. Charity regulators are not shy about investigating the conduct of a nonprofit board, or even proposing their own list of “best practices” for nonprofit boards (such as this very long list of board oversight recommendations produced by Kentucky's Auditor of Public Accounts). When a legal requirement, such as filing annual reports with a Secretary of State, has been missed, this is a red flag for state regulators to investigate the overall conduct of the board, and that could spell a “heap of trouble” for the nonprofit. Consequently, board oversight for legal compliance needs to be taken seriously.
A board that is governing from a perspective of “Let’s follow-through, stay at the right altitude, and take the high road to stay out of trouble” is more likely to focus on how effective the organization is in addressing its stated mission. A board that takes its oversight role seriously is also more likely to spot issues that could spell trouble for the organization down the road – or around the next bend. When a board realizes that it is accountable for not only the “good,” but also “the bad, and the ugly,” that board is more likely to take its oversight role as a champion for the nonprofit’s mission and fiduciary for its assets seriously; those are the boards that will stay out of trouble.
We hope that these musings on the top three ways boards’ oversight keeps nonprofits out of trouble helps you find the right “altitude” for your own board’s oversight. Don’t forget to check the sidebar for more resources, including our invitation to attend a free webinar, Nonprofit Audits in a Nutshell, on March 28th 3:30-4:30 pm (Eastern), sponsored by First Nonprofit Foundation. Jenifer Holland, a governance consultant with BoardSource, will address the board’s role in the audit process.Join us!
Wednesday, September 7, 2011
New York State Cultural Data Project Orientation Sessions
This month, New York State Cultural Data Project orientation sessions are being offered in New York City and via webinar, featuring a CDP Reports Orientation for Nonprofit Leaders, including board members. Join us to learn how to put CDP to work for you!
To register, please click on the corresponding link below. If you plan to attend multiple trainings, please be sure to register for each below.
--------------------------------------------------------------------------------
New User Orientation
We recommend a New User Orientation if your organization is new to the CDP or if you need a refresher on data entry. This training session will provide an overview of the history and goals of the New York State CDP as well as an introduction to the types of data collected. During the session, we will walk participants through the process of entering data, applying to participating funders and generating reports.
New User Orientation, Brooklyn
Irondale Ensemble Project
September 20, 2011
10:00 am
Register
CDP Reports Orientation
If your organization has already submitted at least one Data Profile into the system, we encourage you to join us for a Reports Orientation to learn more about the 77 trend and comparison reports available to your organization, at no-cost! This training offers tips for integrating use of these reports in your financial management, planning and evaluation.
CDP Reports Orientation, Brooklyn
Irondale Ensemble Project
September 20, 2011
1:00 pm
Register
CDP Reports Orientation for Nonprofit Leaders
Is your board interested in analyzing financial trends? Is your executive director looking to set fundraising and marketing goals? CDP reports can help your organization's board and staff make operational decisions, build the case for support and facilitate long-term planning.
This reports orientation session is designed specifically for executive directors, board members, and other nonprofit leaders and will provide participants with an overview of the reports available through the CDP and how they can be used for key decision-making within your organization.
CDP Reports for Nonprofit Leaders, Manhattan
New York City Department of Cultural Affairs
September 21, 2011
10:00 am
Register
Join a CDP training session from your home or office ONLINE via webinar!
New User and CDP Reports Orientation Sessions are offered monthly to all CDP users. You can participate in a WEB-BASED Training Session from your office or home computer. A CDP associate will conduct the training session, during which you will be able to ask questions and learn more about the Cultural Data Project. New User Orientations take place on the first Wednesday and Reports Orientations are held on the third Thursday of every month.
New User Orientation
1st Wednesdays
10:00 am and 2:00pm
Register
CDP Reports Orientation
3rd Thursdays
10:00 am and 2:00 pm
Register
One day prior to the training session, you will be sent a link to connect to this training session online.
Questions? Visit http://www.nysculturaldata.org/ or contact the New York State CDP Help Desk at help@nysculturaldata.org or 1-888-NYSCDP-1 (1-888-697-2371).
To register, please click on the corresponding link below. If you plan to attend multiple trainings, please be sure to register for each below.
--------------------------------------------------------------------------------
New User Orientation
We recommend a New User Orientation if your organization is new to the CDP or if you need a refresher on data entry. This training session will provide an overview of the history and goals of the New York State CDP as well as an introduction to the types of data collected. During the session, we will walk participants through the process of entering data, applying to participating funders and generating reports.
New User Orientation, Brooklyn
Irondale Ensemble Project
September 20, 2011
10:00 am
Register
CDP Reports Orientation
If your organization has already submitted at least one Data Profile into the system, we encourage you to join us for a Reports Orientation to learn more about the 77 trend and comparison reports available to your organization, at no-cost! This training offers tips for integrating use of these reports in your financial management, planning and evaluation.
CDP Reports Orientation, Brooklyn
Irondale Ensemble Project
September 20, 2011
1:00 pm
Register
CDP Reports Orientation for Nonprofit Leaders
Is your board interested in analyzing financial trends? Is your executive director looking to set fundraising and marketing goals? CDP reports can help your organization's board and staff make operational decisions, build the case for support and facilitate long-term planning.
This reports orientation session is designed specifically for executive directors, board members, and other nonprofit leaders and will provide participants with an overview of the reports available through the CDP and how they can be used for key decision-making within your organization.
CDP Reports for Nonprofit Leaders, Manhattan
New York City Department of Cultural Affairs
September 21, 2011
10:00 am
Register
Join a CDP training session from your home or office ONLINE via webinar!
New User and CDP Reports Orientation Sessions are offered monthly to all CDP users. You can participate in a WEB-BASED Training Session from your office or home computer. A CDP associate will conduct the training session, during which you will be able to ask questions and learn more about the Cultural Data Project. New User Orientations take place on the first Wednesday and Reports Orientations are held on the third Thursday of every month.
New User Orientation
1st Wednesdays
10:00 am and 2:00pm
Register
CDP Reports Orientation
3rd Thursdays
10:00 am and 2:00 pm
Register
One day prior to the training session, you will be sent a link to connect to this training session online.
Questions? Visit http://www.nysculturaldata.org/ or contact the New York State CDP Help Desk at help@nysculturaldata.org or 1-888-NYSCDP-1 (1-888-697-2371).
Wednesday, August 3, 2011
Governor Orders Review of Executive Compensation at Nonprofits
From the Governor's Website
Albany, NY (August 3, 2011) Governor Andrew M. Cuomo today announced that he has created a new task force to investigate the executive and administrator compensation levels at not-for-profits that receive taxpayer support from the state. The task force will be led by the New York State Inspector General Ellen Biben, Secretary of State Cesar A. Perales, the Medicaid Inspector General Jim Cox, and the Superintendent of the Department of Financial Services Benjamin Lawsky.
"Not-for-profits that provide services to the poor and the needy have a special obligation to the taxpayers that support them. Executives at these not-for-profits should be using the taxpayer dollars they receive to help New Yorkers, not to line their own pockets. This task force will do a top-to-bottom review, not only to audit current compensation levels, but also to make recommendations for future rules to ensure taxpayer dollars are used to serve and support the people of this state, not pay for excessive salaries and compensation," Governor Cuomo said.
Governor Cuomo continued, "There is a whole range of compensation levels and extremes that have existed for too long and must be reviewed. The use of taxpayer dollars must be scrutinized at every level."
The Governor's task force will determine the protocol and scope of the investigation in order to target the audit to focus on ensuring that state taxpayer dollars meant to help and protect New Yorkers, particularly the poor and indigent, are going to that purpose and are not being diverted to compensation. It will also provide recommendations for State agency policies and procedures that will ensure that taxpayer dollars are not being diverted to excessive compensation.
Commissioners from the Department of Health, the Office of Mental Health, and OPWDD will also serve on the task force.
The Governor's action follows reports of startlingly excessive salaries and compensation packages for executives at not-for-profits that depended on state Medicaid funding through the Office of People With Developmental Disabilities (OPWDD) and other State agencies.
The State's Medicaid Inspector General has the authority necessary to exclude providers from participation in the Medicaid program if it is found that they have engaged in fraudulent or abusive practices.
There are currently no state rules governing executive and administrative compensation for not-for-profits that receive state support.
According to the Department of the Budget's January 2010 preliminary analysis of not-for-profit employees contracting with the mental hygiene agencies (Office of People With Developmental Disabilities, Office of Mental Health, and Office of Alcohol and Substance Abuse Services), there were approximately 1,926 employees with annual salaries greater than or equal to $100,000. The total value of their salaries was $324.6 million, with an average salary of $168,555.
NYCON Statement on Governor's
Review of Executive Compensation:
"NYCON supports IRS and state enforcement efforts to root out those relatively few and often large institutional nonprofits, especially in health care and higher education, where charitable resources are used for the private and personal gain of executives. Such abuses are a stain on the sector and the Governor is right, public trust is integral to the mission and work of our state's charities. The Internal Revenue Service already provides compensation guidelines as set forth in the federal tax code and we believe those guidelines should be upheld.
It needs to be emphasized, however, that these cases are very much the exception.
The vast majority of community-based nonprofit employees are doing hard and challenging work at compensation levels that are far below public employees and often the for-profit sector. It should also be noted that the phrase "taxpayer supported nonprofits" is misleading as the state government contracts to buy services from nonprofits, just as it contracts with the for-profit sector; except the nonprofit is often expected to unfairly perform at below the actual cost of doing business. Perhaps it is also time to order an extensive review of the executive compensation levels of "taxpayer supported for-profit businesses."
NYCON asks the Governor to take this opportunity to go beyond the immediate executive compensation issue and take a comprehensive look at how the state's overall regulatory and business relationship with the nonprofit sector can be improved in the interest of all concerned."
Doug Sauer, CEO, New York Council of Nonprofits, Inc.
http://www.nycon.org/
1-800-515-5012, ext 103
dsauer@nycon.org
Albany, NY (August 3, 2011) Governor Andrew M. Cuomo today announced that he has created a new task force to investigate the executive and administrator compensation levels at not-for-profits that receive taxpayer support from the state. The task force will be led by the New York State Inspector General Ellen Biben, Secretary of State Cesar A. Perales, the Medicaid Inspector General Jim Cox, and the Superintendent of the Department of Financial Services Benjamin Lawsky.
"Not-for-profits that provide services to the poor and the needy have a special obligation to the taxpayers that support them. Executives at these not-for-profits should be using the taxpayer dollars they receive to help New Yorkers, not to line their own pockets. This task force will do a top-to-bottom review, not only to audit current compensation levels, but also to make recommendations for future rules to ensure taxpayer dollars are used to serve and support the people of this state, not pay for excessive salaries and compensation," Governor Cuomo said.
Governor Cuomo continued, "There is a whole range of compensation levels and extremes that have existed for too long and must be reviewed. The use of taxpayer dollars must be scrutinized at every level."
The Governor's task force will determine the protocol and scope of the investigation in order to target the audit to focus on ensuring that state taxpayer dollars meant to help and protect New Yorkers, particularly the poor and indigent, are going to that purpose and are not being diverted to compensation. It will also provide recommendations for State agency policies and procedures that will ensure that taxpayer dollars are not being diverted to excessive compensation.
Commissioners from the Department of Health, the Office of Mental Health, and OPWDD will also serve on the task force.
The Governor's action follows reports of startlingly excessive salaries and compensation packages for executives at not-for-profits that depended on state Medicaid funding through the Office of People With Developmental Disabilities (OPWDD) and other State agencies.
The State's Medicaid Inspector General has the authority necessary to exclude providers from participation in the Medicaid program if it is found that they have engaged in fraudulent or abusive practices.
There are currently no state rules governing executive and administrative compensation for not-for-profits that receive state support.
According to the Department of the Budget's January 2010 preliminary analysis of not-for-profit employees contracting with the mental hygiene agencies (Office of People With Developmental Disabilities, Office of Mental Health, and Office of Alcohol and Substance Abuse Services), there were approximately 1,926 employees with annual salaries greater than or equal to $100,000. The total value of their salaries was $324.6 million, with an average salary of $168,555.
NYCON Statement on Governor's
Review of Executive Compensation:
"NYCON supports IRS and state enforcement efforts to root out those relatively few and often large institutional nonprofits, especially in health care and higher education, where charitable resources are used for the private and personal gain of executives. Such abuses are a stain on the sector and the Governor is right, public trust is integral to the mission and work of our state's charities. The Internal Revenue Service already provides compensation guidelines as set forth in the federal tax code and we believe those guidelines should be upheld.
It needs to be emphasized, however, that these cases are very much the exception.
The vast majority of community-based nonprofit employees are doing hard and challenging work at compensation levels that are far below public employees and often the for-profit sector. It should also be noted that the phrase "taxpayer supported nonprofits" is misleading as the state government contracts to buy services from nonprofits, just as it contracts with the for-profit sector; except the nonprofit is often expected to unfairly perform at below the actual cost of doing business. Perhaps it is also time to order an extensive review of the executive compensation levels of "taxpayer supported for-profit businesses."
NYCON asks the Governor to take this opportunity to go beyond the immediate executive compensation issue and take a comprehensive look at how the state's overall regulatory and business relationship with the nonprofit sector can be improved in the interest of all concerned."
Doug Sauer, CEO, New York Council of Nonprofits, Inc.
http://www.nycon.org/
1-800-515-5012, ext 103
dsauer@nycon.org
Wednesday, July 20, 2011
NYS employee fee to impact nonprofits
Read below about the recent news about a new fee per employee for employers related to NYS Unemployment Insurance borrowing. As a nonprofit, there is another alternative, which you can learn about from NYCON:
Find Out if the Unemployment Savings Program for NYCON Members through First Nonprofits Companies can Save You Money.
Why pay a tax if you don’t have to? Many NYCON Members have switched from paying the state unemployment tax rates to First Nonprofit Unemployment Savings Program saving up to 60% of their unemployment costs annually. Find out if you can too. Take NYCON's FREE upcoming Beneft Spotlight: Unemployment Savings Program on August 23rd from 10 am to 11am. REGISTER HERE
A Big Bill for Employers
The Albany Times Union reported that Gov. Andrew Cuomo on Tuesday rolled out a sweeping plan to help revitalize the state's economy, complete with an ad campaign and competitive grant program designed to spark innovation.
But businesses have a more immediate concern: The bill is coming due for New York's unemployment insurance.
Citing the need to borrow more than $3 billion from the federal government to prop up its chronically empty account, the state faces a whopping $95 million interest payment on loans for the fund due Sept. 30.
As a result, the state Department of Labor is assessing businesses up to $21.25 per employee to cover the cost. That payment is due Aug. 15.
Complaints about what businesses describe as a hidden tax were rolling in Tuesday after numerous employers received the notices and as Cuomo expounded on his plans for the economy.
"This is something that could -- depending on the number of employees -- be a pretty hefty cost in this economy," said Mike Durant, New York state director for the National Federation of Independent Businesses.
When asked about the surcharge during a news conference outlining his revitalization plans, Cuomo stressed that the bill for interest is ultimately coming from Washington, D.C.
"It's a federal decision whether or not they'll waive the interest payments. I hope that they do," he said, adding that his office was pushing the state's congressional delegation on the issue.
The hefty tab illustrates what can happen as the federal stimulus program, enacted shortly after the recession started in 2008, runs out.
The Department of Labor noted that the stimulus program provided no-interest loans to the states in 2009 and 2010, but not this year.
Read more: http://www.timesunion.com/local/article/A-big-bill-for-your-boss-1472786.php#ixzz1SetH4Zip
Find Out if the Unemployment Savings Program for NYCON Members through First Nonprofits Companies can Save You Money.
Why pay a tax if you don’t have to? Many NYCON Members have switched from paying the state unemployment tax rates to First Nonprofit Unemployment Savings Program saving up to 60% of their unemployment costs annually. Find out if you can too. Take NYCON's FREE upcoming Beneft Spotlight: Unemployment Savings Program on August 23rd from 10 am to 11am. REGISTER HERE
A Big Bill for Employers
The Albany Times Union reported that Gov. Andrew Cuomo on Tuesday rolled out a sweeping plan to help revitalize the state's economy, complete with an ad campaign and competitive grant program designed to spark innovation.
But businesses have a more immediate concern: The bill is coming due for New York's unemployment insurance.
Citing the need to borrow more than $3 billion from the federal government to prop up its chronically empty account, the state faces a whopping $95 million interest payment on loans for the fund due Sept. 30.
As a result, the state Department of Labor is assessing businesses up to $21.25 per employee to cover the cost. That payment is due Aug. 15.
Complaints about what businesses describe as a hidden tax were rolling in Tuesday after numerous employers received the notices and as Cuomo expounded on his plans for the economy.
"This is something that could -- depending on the number of employees -- be a pretty hefty cost in this economy," said Mike Durant, New York state director for the National Federation of Independent Businesses.
When asked about the surcharge during a news conference outlining his revitalization plans, Cuomo stressed that the bill for interest is ultimately coming from Washington, D.C.
"It's a federal decision whether or not they'll waive the interest payments. I hope that they do," he said, adding that his office was pushing the state's congressional delegation on the issue.
The hefty tab illustrates what can happen as the federal stimulus program, enacted shortly after the recession started in 2008, runs out.
The Department of Labor noted that the stimulus program provided no-interest loans to the states in 2009 and 2010, but not this year.
Read more: http://www.timesunion.com/local/article/A-big-bill-for-your-boss-1472786.php#ixzz1SetH4Zip
Friday, July 1, 2011
Cultural groups rejoice as city restores proposed cuts
Crain's New York Business reported that despite threats of deep cuts to institutions from the Metropolitan Museum to Staten Island's Botanical Gardens, nearly all of the money was restored in the city's final budget.
After yet another year of in which local cultural institutions were threatened by proposed deep budget cuts from the city, nearly all the money was restored in the final budget for this fiscal year.
The cultural institutions group—made up of all the arts groups in city-owned building ranging from the Metropolitan Museum of Art to the Snug Harbor Cultural Center and Botanical Garden on Staten Island—received an initial restoration of $20.5 million of its proposed $33.7 million cut. Sources say Mayor Bloomberg is going to put in an additional $10 million from discretionary funds, nearly fully restoring the CIGs funding.
Funding for the hundreds of arts institutions that are not in city-owned buildings, like the Museum of Modern Art, received a restoration of $9 million, basically erasing their proposed cut.
Arts executives had expected little restoration this year because of the city's precarious financial state. Though they were thrilled with the final numbers, they questioned why they have been forced to go through this “budget dance” every year.
“We are very grateful for the City Council and the mayor's concern and commitment to the cultural sector,” said Norma Munn, chairperson of the New York City Arts Coalition. “There were people going without pay checks over the last few months because we were having such a tough time in the sector, so every dime counts.”
The New York Public Library, which waged an aggressive campaign to keep its city funding, received a restoration of $36.7 million of its proposed $40 million cut. Library officials said the final budget would allow it to avoid layoffs and keep all libraries open at least five days a week.
“When it comes to libraries, the real winners this budget season are New Yorkers,” a spokeswoman for the library said. “Thanks to a sizable restoration from the City, all of our 90 locations across the Bronx, Manhattan, and Staten Island will remain open.”
After yet another year of in which local cultural institutions were threatened by proposed deep budget cuts from the city, nearly all the money was restored in the final budget for this fiscal year.
The cultural institutions group—made up of all the arts groups in city-owned building ranging from the Metropolitan Museum of Art to the Snug Harbor Cultural Center and Botanical Garden on Staten Island—received an initial restoration of $20.5 million of its proposed $33.7 million cut. Sources say Mayor Bloomberg is going to put in an additional $10 million from discretionary funds, nearly fully restoring the CIGs funding.
Funding for the hundreds of arts institutions that are not in city-owned buildings, like the Museum of Modern Art, received a restoration of $9 million, basically erasing their proposed cut.
Arts executives had expected little restoration this year because of the city's precarious financial state. Though they were thrilled with the final numbers, they questioned why they have been forced to go through this “budget dance” every year.
“We are very grateful for the City Council and the mayor's concern and commitment to the cultural sector,” said Norma Munn, chairperson of the New York City Arts Coalition. “There were people going without pay checks over the last few months because we were having such a tough time in the sector, so every dime counts.”
The New York Public Library, which waged an aggressive campaign to keep its city funding, received a restoration of $36.7 million of its proposed $40 million cut. Library officials said the final budget would allow it to avoid layoffs and keep all libraries open at least five days a week.
“When it comes to libraries, the real winners this budget season are New Yorkers,” a spokeswoman for the library said. “Thanks to a sizable restoration from the City, all of our 90 locations across the Bronx, Manhattan, and Staten Island will remain open.”
Monday, May 2, 2011
Boston is Pushing PILOTs for Nonprofits: What Will be the Impact
Tim Delaney, President & CEO, National Council of Nonprofits, posted to Huffington Post about the recent issue of PILOTS in Boston.
As he relates: Leaders of nonprofit organizations across America were stunned by reports this week in the Boston Globe and NPR's Marketplace that the City of Boston would turn its back on the nonprofit cultural, educational, and health care institutions that have played such vital roles in making that city great.
What stunned nonprofit leaders nationwide is that Boston sent letters essentially mandating that various nonprofits make "Payments-In-Lieu-Of-Taxes" (PILOTs) to the city based on the value of their property, even though Massachusetts law -- like the law in all 50 states -- prohibits local governments from taxing nonprofit property. What in turn shocked nonprofit leaders is how Boston intends to enforce its supposedly "voluntary" PILOT program: with a Scarlet-letter campaign designed to coerce compliance with the city's demand for "voluntary" payments.
Boston has concocted an Orwellian program that uses euphemisms -- such as "PILOTs" instead of "property taxes" and "voluntary" instead of "coerced" -- apparently attempting to hide what is really happening to evade what the law prohibits. The city, knowing the courts would strike down as an illegal act any attempt to directly impose property taxes on charitable nonprofits, invented a program to coerce "voluntary" Payments-In-Lieu-Of-Taxes. But slapping on a misleading label to cover a bad act does not render it any more acceptable; a payment based on property value is still a tax.
To enforce its legally unenforceable program, Boston has threatened to paint a Scarlet letter of shame on every nonprofit that does not comply with the city's demands for payments. Such coercion to obtain what the Commonwealth's law prohibits is outrageous and threatens everyone; who's next, when Boston -- or any government -- wants something the law prohibits?
The city's program also disregards unique aspects of nonprofit law, thus putting coerced nonprofits at risk of running afoul of the Massachusetts Attorney General, who has jurisdiction to oversee that funds donated to nonprofits are used as donors intend. By demanding that nonprofits pay the city 25 percent of their property's tax value, the city is whipsawing nonprofits, putting them in a lose-lose dilemma: either undergo the city's shameful public branding, or cave in to the city's demands to pay, only to have the Massachusetts Attorney General come after the nonprofit if donors complain that they gave their money for purposes other than transfers to the city treasury.
In trying to balance its budget on the backs of people served by charities and those who donate to them, Boston has disregarded not only the law, but also fiscal reality. The recession already has stretched nonprofits too far financially as demands for their services have skyrocketed while their revenues have nosedived, with corporate contributions declining, foundation grants down, and governments delaying payments and not paying full costs on legally-binding contracts. According to the IRS, even individual giving has sagged by 20 percent. Read more here.
As he relates: Leaders of nonprofit organizations across America were stunned by reports this week in the Boston Globe and NPR's Marketplace that the City of Boston would turn its back on the nonprofit cultural, educational, and health care institutions that have played such vital roles in making that city great.
What stunned nonprofit leaders nationwide is that Boston sent letters essentially mandating that various nonprofits make "Payments-In-Lieu-Of-Taxes" (PILOTs) to the city based on the value of their property, even though Massachusetts law -- like the law in all 50 states -- prohibits local governments from taxing nonprofit property. What in turn shocked nonprofit leaders is how Boston intends to enforce its supposedly "voluntary" PILOT program: with a Scarlet-letter campaign designed to coerce compliance with the city's demand for "voluntary" payments.
Boston has concocted an Orwellian program that uses euphemisms -- such as "PILOTs" instead of "property taxes" and "voluntary" instead of "coerced" -- apparently attempting to hide what is really happening to evade what the law prohibits. The city, knowing the courts would strike down as an illegal act any attempt to directly impose property taxes on charitable nonprofits, invented a program to coerce "voluntary" Payments-In-Lieu-Of-Taxes. But slapping on a misleading label to cover a bad act does not render it any more acceptable; a payment based on property value is still a tax.
To enforce its legally unenforceable program, Boston has threatened to paint a Scarlet letter of shame on every nonprofit that does not comply with the city's demands for payments. Such coercion to obtain what the Commonwealth's law prohibits is outrageous and threatens everyone; who's next, when Boston -- or any government -- wants something the law prohibits?
The city's program also disregards unique aspects of nonprofit law, thus putting coerced nonprofits at risk of running afoul of the Massachusetts Attorney General, who has jurisdiction to oversee that funds donated to nonprofits are used as donors intend. By demanding that nonprofits pay the city 25 percent of their property's tax value, the city is whipsawing nonprofits, putting them in a lose-lose dilemma: either undergo the city's shameful public branding, or cave in to the city's demands to pay, only to have the Massachusetts Attorney General come after the nonprofit if donors complain that they gave their money for purposes other than transfers to the city treasury.
In trying to balance its budget on the backs of people served by charities and those who donate to them, Boston has disregarded not only the law, but also fiscal reality. The recession already has stretched nonprofits too far financially as demands for their services have skyrocketed while their revenues have nosedived, with corporate contributions declining, foundation grants down, and governments delaying payments and not paying full costs on legally-binding contracts. According to the IRS, even individual giving has sagged by 20 percent. Read more here.
Wednesday, March 9, 2011
Nonprofits Discuss Collaboration
More than 140 people representing over 70 nonprofit organizations converged on Bethel Woods Center for the Arts for a watershed summit that organizers hope will translate into more efficient and less costly organizations.
The day-long schedule of panel discussions and group brainstorming sessions drew executive directors, board members and representatives from organizations providing services ranging from arts education to support for people with developmental disabilities.
If nothing else, they heard one clear message: that collaboration could help nonprofits not only survive but thrive amid a retreat in giving by private donors and governments that is likely to endure.
"If we're all going to survive, we have to find new ways to collaborate and work together," said Sullivan County Legislature Chairman Jonathan Rouis, who has been pushing for a summit since 2009.
Summit organizers hope the face time and brainstorming will eventually spur collaborations or resource-sharing that could prevent the duplication of services and save money.
"The goal really was to take nonprofits off their islands," said Amanda Speer, Cornell Cooperative Extension's family and youth development team coordinator and chair of the summit's organizing committee.
"Before any of the ships start sinking, how do we work together to keep each other afloat," she said.
Jonathan Drapkin, Pattern for Progress president and chief executive officer and former Gerry Foundation executive director, laid out the challenges facing nonprofits as private and public funding shrinks.
He cited Greene and Columbia counties, which share a community college, and the merger of three school districts into the Sullivan West School District as examples of successful collaborations.
"Either you try to be the masters of your own fate or you wake up and find that fate has taken its own course," said Drapkin.
Darrin Raynor, assistant executive director for New Hope Community Inc., said he attended in hopes of sharing ideas and finding out about different organizations. "The opportunity to see the other organizations and hear what they have to say is priceless," he said.
Elena Goyanes, a board member for Catskill Arts Society, said, as she ate lunch, that she was already thinking of ways she could work with some of the groups represented at the summit.
"It's stirring thoughts of how we can further reach out into the community," she said.
From the Times Herald-Record online.
Tuesday, February 8, 2011
New Arts Advocacy Group Announced: ARTS NYS Coalition
Times Square Chronicles featured the following post on a new arts advocacy group:
New York City is the heartland of arts and entertainment including commercial and non-profit theatre. In fact, it is the cultural center throughout the country. However, the NY State Council on the Arts (NYSCA) is proposing the largest cuts of any State agency. It seems like a small part of the budget, .0003%, but in reality, with current economic times as they are, perhaps it represents a good portion. Without having a complete budget at hand and someone competent to explain it, I’m like most New Yorkers . . . trying to figure it all out. What is known, however, is that funding for the State Council on the Arts has been consistently reduced by nearly 30% over the past 4 years, representing the largest cut to any state agency. If we’re to continue our place as a major cultural arts center, we must have the funds necessary.
As a state, we have many attributes of which to be proud, but the arts are the soul of New York. Everyday, artists and arts groups throughout the state provide New Yorkers and the multitude of national and international visitors with pleasure, education, new ways of seeing the world, and enormous economic benefits.
Nonprofit cultural organizations in New York City are major contributors to the city’s economy. This sector is the second-largest component of the arts industry and is closely tied to the commercial sector. These organizations also share a labor pool of artists and other creative workers with the commercial sector and often develop artistic products that transfer to Broadway or is otherwise utilized commercially. A similarly complex interaction occurs between museums and commercial galleries and auction houses.
The nonprofit arts industry is labor-intensive. Half of the direct spending by all nonprofit cultural organizations goes to wages and benefits, and about 11 percent is for fees and services, including outside artistic fees. The majority of the employees are city residents, and many of the vendors and workers who supply goods and services to these institutions are located either within the city or in nearby suburban counties.
New York City is also a mecca for those who work in commercial theaters also apply their artistic talent and technical expertise in nonprofit theater and in the motion picture and television industry.
Who is ARTS NYS Coalition?They are a group of colleagues who joined together to ensure that the public has access to information on the state of the arts in New York State. Currently, the coalition includes the New York City Arts Coalition and the Arts Councils of Dutchess, Greene, Onondaga (Syracuse) and Westchester Counties, Huntington, Northern Adirondacks, Saint Lawrence and Southern Finger Lakes regions, Arts Alliances of Harlem and Buffalo, New York Folklore Society, NYS Alliance for Arts Education, and Museum Association of New York.
Thus far, the coalition has established this website, http://www.artsnys.org/, which will be a resource for data on the arts in New York State as well as information on pending legislation at the state and federal level. This website, in partnership with Americans for the Arts, will provide contact level providing information for elected representatives and will allow individuals to send their representatives customized messages.
ARTS New York State Coalition will also plan and coordinate state-wide advocacy events for 2011 which will provide the arts community with opportunities to meet with elected officials to discuss arts funding in the 2011/12 New York State Budget as well as other issues. A designated Arts Day in Albany is scheduled for Tuesday, February 8, 2011 in addition to many arts advocacy events planned in local districts during the week of February 7 – 13, 2011. Today we have a new governor, who is facing serious budget deficits, and we need him and his administration to be aware of the extent of the past cuts and the need for thoughtful care as they develop the budget for 2012.
It is very urgent that the Governor of our state hear from those who enjoy and treasure the arts in New York State. Send your message to Gov. Andrew Cuomo today.
Lest we forget, cuts to the arts is not only state wide, but on a Federal level as well. In addition to contacting your local representatives, do the same with State Senators and Congressional reps.
New York City is the heartland of arts and entertainment including commercial and non-profit theatre. In fact, it is the cultural center throughout the country. However, the NY State Council on the Arts (NYSCA) is proposing the largest cuts of any State agency. It seems like a small part of the budget, .0003%, but in reality, with current economic times as they are, perhaps it represents a good portion. Without having a complete budget at hand and someone competent to explain it, I’m like most New Yorkers . . . trying to figure it all out. What is known, however, is that funding for the State Council on the Arts has been consistently reduced by nearly 30% over the past 4 years, representing the largest cut to any state agency. If we’re to continue our place as a major cultural arts center, we must have the funds necessary.
As a state, we have many attributes of which to be proud, but the arts are the soul of New York. Everyday, artists and arts groups throughout the state provide New Yorkers and the multitude of national and international visitors with pleasure, education, new ways of seeing the world, and enormous economic benefits.
Nonprofit cultural organizations in New York City are major contributors to the city’s economy. This sector is the second-largest component of the arts industry and is closely tied to the commercial sector. These organizations also share a labor pool of artists and other creative workers with the commercial sector and often develop artistic products that transfer to Broadway or is otherwise utilized commercially. A similarly complex interaction occurs between museums and commercial galleries and auction houses.
The nonprofit arts industry is labor-intensive. Half of the direct spending by all nonprofit cultural organizations goes to wages and benefits, and about 11 percent is for fees and services, including outside artistic fees. The majority of the employees are city residents, and many of the vendors and workers who supply goods and services to these institutions are located either within the city or in nearby suburban counties.
New York City is also a mecca for those who work in commercial theaters also apply their artistic talent and technical expertise in nonprofit theater and in the motion picture and television industry.
Who is ARTS NYS Coalition?They are a group of colleagues who joined together to ensure that the public has access to information on the state of the arts in New York State. Currently, the coalition includes the New York City Arts Coalition and the Arts Councils of Dutchess, Greene, Onondaga (Syracuse) and Westchester Counties, Huntington, Northern Adirondacks, Saint Lawrence and Southern Finger Lakes regions, Arts Alliances of Harlem and Buffalo, New York Folklore Society, NYS Alliance for Arts Education, and Museum Association of New York.
Thus far, the coalition has established this website, http://www.artsnys.org/, which will be a resource for data on the arts in New York State as well as information on pending legislation at the state and federal level. This website, in partnership with Americans for the Arts, will provide contact level providing information for elected representatives and will allow individuals to send their representatives customized messages.
ARTS New York State Coalition will also plan and coordinate state-wide advocacy events for 2011 which will provide the arts community with opportunities to meet with elected officials to discuss arts funding in the 2011/12 New York State Budget as well as other issues. A designated Arts Day in Albany is scheduled for Tuesday, February 8, 2011 in addition to many arts advocacy events planned in local districts during the week of February 7 – 13, 2011. Today we have a new governor, who is facing serious budget deficits, and we need him and his administration to be aware of the extent of the past cuts and the need for thoughtful care as they develop the budget for 2012.
It is very urgent that the Governor of our state hear from those who enjoy and treasure the arts in New York State. Send your message to Gov. Andrew Cuomo today.
Lest we forget, cuts to the arts is not only state wide, but on a Federal level as well. In addition to contacting your local representatives, do the same with State Senators and Congressional reps.
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