Oppose Cap on Deductions for Charitable Donations

Help Nonprofits Across the Country Oppose the Proposed Cap on Charitable Deductions Learn More and Add Your Voice Today! As New York's statewide association of charitable nonprofits with over 3,000 members, the New York Council of Nonprofits, Inc. (NYCON) is strongly urging our Representatives and Senators to oppose efforts to include charitable deductions in an overall cap on itemized deductions and to oppose any other efforts to reduce current levels of charitable deductions. Already Doing More With Less... Community nonprofits, including those considered faith-based, are at the front lines of protecting and strengthening individuals, families and their communities and simply do not have the capacity to bear more burdens associated with ill-advised and sometimes arbitrary withdrawal of federal, state and local governments from domestic programs. During this recession, the workload of many of the state's nonprofits has increased as poverty levels have risen. Research has shown that nationally the demands on the nonprofit sector have soared since at least 2008, increasing 73% in 2008; 77 % in 2009; 77% in 2010; and 85% in 2011. Regarding the proposal of including charitable deductions in the pot of an overall cap of itemized deductions, this will not only be harmful to the good work of charities but is unfair. How Will This Affect Nonprofits? Consider that charitable deductions are different from the other itemized deductions in that the public, not the individual taxpayer, benefits from the expenditure (unlike with mortgage interest, gambling losses, etc.) A cap on itemized deductions would be consumed by fixed-cost deductions being the "first-dollar in" such as mortgage interest and state/local taxes, leaving little or no room under the cap for discretionary charitable gifts. Charities in high tax states, such as New York State, are particularly at risk. In these times, we urge Congress to consider policies that encourage charitable giving, not discourage donations. We ask you to urge our elected officials to oppose legislation that threatens the capacity community nonprofits to acquire the charitable resources needed to better the lives of people and the communities they live in. To Add Your Voice to Those Opposing this Cap, Click Here To learn more about the potential impact of the "Fiscal Cliff" on nonprofits, click here.

Grantsmanship Center is offering free mini-webcasts

Grantsmanship Center is offering free mini-webcasts
The Grantsmanship Center is producing a series of free mini-webcasts. Most are under 3 minutes long and all address a critical aspect of planning or writing grant proposals. Their focus is on planning, developing logical arguments for funding, and developing projects that produce results.

The latest mini-webcast, How to Use Concept Papers, has been released and can be accessed by clicking here, or cutting and pasting the following URL into your web browser (http://youtu.be/YXiAsoeSN0Q).

Additional mini-webcasts on The Center’s YouTube channel include 

• How to Write a Mission Statement 
• How to Get a Grant 
• What’s Most Important 
• How to Apply for Federal Grants – Understanding Federal Grant Application Guidelines
• 8 Reasons You’ll Get the Grant

A number of libraries, colleges, and nonprofits are sharing the mini-webcasts as a service to their constituents. Please feel free to do the same.

Now Available: New NYCON Fiscal Tools

New NYCON Fiscal Tools
Now Available: Budget and Cashflow Toolkits

Just in time for next year’s budget and cash flow planning, NYCON has developed a new benefit for our member that will truly be the “best friend” of every fiscal person who uses it. Designed with the needs and resources of the smaller to medium sized nonprofit in mind, NYCON’s Chief Fiscal Officer and staff have designed a “fool proof” tool for developing a streamlined, compliant and easy to understand budget.

The features of the Budget Toolkit include:

1. Built in instructions on “Getting Started” and “How to Develop Your Budget” 

2. Built in formulas and linked spreadsheets

3. Definitions & Glossary on types of budgets, frequently used budgeting terms & more

4. Templates that your organization can utilize to customize for your own organization’s budget and salary and fringe expenditures.

5. And more!

COST:

Budget & Cash Flow Toolkit Combo
Members:                    $299.00
Non-Members:              $399.00
*Any nonprofit attending this webinar (our first for this very important tool!) will receive a 25% discount off of the prices above.

Cash Flow Toolkit
Members:                     $29.99
Non-Members:              $59.99
*Any nonprofit attending this webinar (our first for this very important tool!) will receive a 25% discount off of the prices above

Interested in learning more?

Here's a Link to a recording of a recent webinar on these fiscal tools

Peekskill Officials to Search for New Management at Paramount Building

Peekskill Mayor Mary Foster said the locks have been changed to the building for the Paramount Center for the Arts and the city's Corporation Council is working on RFP for new management at the space.

 

While the City is moving immediately to get the theater operational again, officials are still waiting for a response from the existing board of directors of the Paramount Center for the Arts as to their plan to satisfy their existing financial obligations.

On Oct. 5, the City sent a written request to the board of directors to submit a written reorganization plan by Oct. 19. As a registered not-for-profit agency in New York State, the board of directors of the Paramount Center for the Arts is required to provide a final financial audit to the state.
The City of Peekskill is not responsible for any financial obligations incurred by the current operator, the Paramount Center for the Arts, and all inquiries related to its obligations should be directed to their board and its president.

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Have experience running an 82-year-old performing arts center?

Peekskill city officials said they are searching for new management to run the Paramount Center for the Arts after the theater’s board of directors announced the facility was going on a hiatus earlier this month.

“Our corporation council has been counsel has been dealing with the hired attorney’s of the Paramount board and the staff is working on developing a RFP that will go out for proposal in a very wide circle to see what proposal we’ll get back,” Peekskill Mayor Mary Foster said during Monday’s common council meeting.

Paramount officials made the announcement following a September fundraising campaign in which the goals was to raise $300,000. Vincent Vesce, the board president, said the money was needed to make up for a decrease in grants, sponsorships and other contributions.

According to the Paramount’s last filing with the state Charities Bureau on Aug. 31, 2011, the theater recorded a little more than $1,758,202 in expenses and $1,379,380 in expenses.

The Paramount has a deal in place to lease the building from the City of Peekskill for a dollar a year through 2033.

“There is a legal process to go through when the Paramount just announced on Oct. 3 that they were ceasing operations to getting this point—and getting control of the building,” Foster said.

Foster said locks to the building have been changed and the corporation council is working the Paramount’s attorney’s to determine what assets still exist in the building, what assets belong to the city and what assets belong to the Paramount. This information is necessary to determine what goes inside the RFP that’s sent out, according to Foster.

“Their [the Paramount’s] financial obligations are their financial obligations and they are working with their attorney’s on how they will deal with their obligations that they have to ticket holders, artists who have been cancelled, businesses, etc.,” Foster said.
 

Business Planning for Nonprofits

From NYCON's national partner, the National Council of Nonprofits:

True or False: “Business planning is for businesses, and strategic planning is for nonprofits." Be honest. When you first heard the phrase "business plans for nonprofits," did you think, "We don't do that"? Many people think that businesses do business planning, and nonprofits do strategic planning. Strategic planning remains a core element of capacity building. State Associations of nonprofits report that strategic planning is perennially one of the most popular educational programs they offer. Funders often want to see a strategic plan along with a grant proposal. But increasingly, we’re hearing executive directors say to one another, “Do you have a business plan?” Are business plans for nonprofits becoming the new hot thing? And are they replacing strategic plans – simply by adding dollar signs? Advertisement Business planning is not the same as strategic planning. Ideally business planning will inform and improve a strategic planning process that keeps evolving. Business planning provides a sound financial context for the planning process and forces us to look at our nonprofit in the context of a competitive environment. It is hard work because it grounds big picture ideas in reality. Understandably given the option we might prefer to paint a canvas with a broad vision and fill in the colors, rather than first determine what it costs to buy the paint and canvas, and how to price our painting. (It’s much more fun to paint the picture and let somebody else figure out whether it will sell and for how much!) The problem for enthusiastic and inspired artists (as with board and staff members) is that the canvas gets bigger and bigger – but when the masterpiece is finished, there might not be a market for it.     For us amateur artists, two recent books approach nonprofit business planning from a strategic planning perspective and explain it in a very accessible way, even for those not familiar with business terminology. The Nonprofit Business Plan: The Leader’s Guide to Creating a Successful Business Model , a new book by David La Piana and his distinguished colleagues at La Piana Consulting, may just change your attitude towards using the words “business” and “nonprofit” in the same sentence. Also take a look at Nonprofit Sustainability: Making Strategic Decisions for Financial Viability, by the terrific trio Jeanne Bell, Jan Masaoka, and Steve Zimmerman. We think both books are masterful in helping to explain why nonprofits need to pause and take a look at, well…let’s just say it, their “business model.”   Your nonprofit is in the business of something, whether it’s recycling computers, helping veterans rejoin the workforce, or preserving open space from development. And in order to pay for talented employees, that new website you dream of, and the internet connection that makes it work, your nonprofit needs cash. The problem is, assuming your nonprofit is like many others, it’s tempting to continually add new projects or improve existing programs to meet changing needs in the community. Just before a nonprofit launches that new program or makes the necessary adjustments, that’s the time to stop and ask, “How much is this really going to cost? And how will it be paid for?” The question should even be asked for services that clients pay for -- or that are paid by third-parties: “Are all the costs of the program paid for?” What we’re hearing is that many nonprofits have not calculated the full cost of running their operations. Consequently, the revenue received, whether through donations or fees for services (or a combination) might not cover 100% of what it costs to deliver those programs. Private philanthropy is concerned about this funding gap and the strain it puts on charitable nonprofits. The Donors Forum has convened a community of practice on the subject of overhead, bringing together funders and nonprofits to recommend how nonprofits can more easily identify and articulate the true cost of their work, and how grantmakers can become educated about the failure to pay full costs, as well as help nonprofits understand how to calculate the true cost of delivering services.   In today’s challenging economy, the severe consequences of failing to engage in business planning is laid bare when cash stops flowing. The cash flow crunch is a concern for a huge number of charitable nonprofits. The Nonprofit Finance Fund’s 2012 survey found that only 43% of nonprofits surveyed had more than 3 months of cash reserves – and many had less than one month. Nonprofits that continue to focus exclusively on what they do, instead of also what it costs to do it, will find themselves at risk of closing their doors for good. Here is just one example of the need for nonprofits and board members to focus strategically on business models: a 30 year old charitable nonprofit, dependent on donations to pay the rent and stay afloat, is hit hard by the recession when donations dry up. If the nonprofit closes its doors the community’s poor and disabled will be without access to medical equipment, such as wheelchairs, walkers, and oxygen tanks. For 30 years the nonprofit has collected donated equipment, refurbished it, and trained its new owners how to use it. For free. Now at the brink of being forced to shut down, the group’s executive director, reflecting on what happened, explained his mind-shift towards being more business oriented: “We’re not about money, but we have to be right now.”   A solid business plan will take into consideration not only the “vision” and the strategy for how your nonprofit will address needs in the community, but also how everything your nonprofit does fits within a competitive landscape, and how it will fund its activities in a cost-effective way. Done well, business planning is very comprehensive – and requires time. An outside consultant may be helpful to move the process along. The CEO, key program staff, and a few board members are usually tapped for the business planning team so that multiple perspectives inform the analysis of all aspects of the nonprofit’s operations: from mission delivery (programs, services, advocacy) to physical and human resources infrastructure, and marketing, to communications and fundraising activities. A business plan might also include funding projections, and address risk mitigation as well as how outcomes will be evaluated (and the associated costs).   The advantage of having a business plan in place – especially when an attractive new idea presents itself - is that some ventures, partnerships, or projects may strategically fit the mission and perfectly support the vision – but may not be successful financially. With the discipline of a business plan as the “enforcer,” it makes it easier to prioritize the activities that make the most financial sense, and to make hard decisions, such as stopping a program that offers little ROI. As champions for our nonprofits’ missions it is no longer enough to know deep in our bones that “the mission is good.” Instead we need to help boards and staff ask hard questions about money, so that the ability of each charitable nonprofit to deliver its mission into the future is protected. We encourage your nonprofit to take a look at the resources highlighted in this newsletter and on the Council of Nonprofits’ website, and we hope that when your nonprofit engages in this process, business planning will feel much more like painting a masterpiece than counting pennies. Coming soon - a new look for this newsletter and the National Council of Nonprofits   Interested in learning more about business planning for nonprofits? Join us for a free webinar on October 18th with Heather Gowdy and Lester Olmstead-Rose, authors of The Nonprofit Business Plan: The Leader’s Guide to Creating a Successful Business Model. This webinar is an exclusive benefit for members of our network of State Associations. Contact your State Association for the registration link. Not a member? Find your State Association and join today!   This webinar is offered free of charge thanks to generous support from Resources on strategic and business planning (National Council of Nonprofits)    The Nonprofit Business Plan: The Leader’s Guide to Creating a Successful Business Model , by David La Piana, Heather Gowdy, Lester Olmstead-Rose, and Brent Copen   Nonprofit Sustainability: Making Strategic Decisions for Financial Viability, by Jeanne Bell, Jan Masaoka, and Steve Zimmerman   Business Planning for Nonprofits: What It Is and Why It Matters  (Bridgespan)   Sample business plans for nonprofits (Bridgespan)   Tools for business planning, creating a theory of change, a case for support, and building a revenue plan (for purchase from Social Velocity)   Congratulations to Valerie Lies, President & CEO, Donors Forum, and Ann Silverberg Williamson, President & CEO, Louisiana Association of Nonprofit Organizations, as well as Tim Delaney, President & CEO of the National Council of Nonprofits, for being named to the 2012 NonProfit Times Power & Influence Top 50 list.   The National Council of Nonprofits provides information about the failure of government to pay the full costs of services both on our Government-Nonprofit Contracting website and in Nonprofit Advocacy Matters, our bi-weekly newsletter on public policy and advocacy matters affecting charitable nonprofits. An upcoming edition of Nonprofit Advocacy Matters will include an update on federal reforms affecting indirect cost reimbursements. Subscribe today so you won’t miss the latest on this important issue.

Copyright 2012 National Council of Nonprofits. All rights reserved 1200 New York Avenue, NW | Suite 700 | Washington, DC 20005 | www.councilofnonprofits.org

Nominate an Outstanding CPA; Join the NYCON Board

2012 Michael H. Urbach, CPA, Community Builders Award Now Accepting Nominations Submission Accepted through August 24th, 2012 Sponsored by the New York Council of Nonprofits (NYCON) and the New York State Society of Certified Public Accountants (NYSSCPA) Lewis Kramer, Urbach Award Recipient and Doug Sauer, CEO, NYCON The New York Council of Nonprofits, Inc. (NYCON) and the New York State Society of Certified Public Accountants (NYSSCPA) are pleased to announce this call for nominations for the Ninth Annual Michael H. Urbach, CPA Community Builders Award. The award is named in honor of the late Michael H. Urbach, CPA, former partner of Urbach, Kahn and Werlin, former NYS Commissioner of Tax and Finance and Chair of the State Employees federated Appeal, and board leader of a number of charities. This award is in recognition of the important role, talents and leadership that a Certified Public Accountant (CPA) in New York State can provide as a board member for community-based charities. Award Criteria & Submission Candidates must: Be a CPA in good standing and a member of NYSSCPA. Have served as an Officer on at least 3 different charitable 501(c)(3) community-based nonprofits with service as President/Chair at least once. Have demonstrated exemplary board leadership resulting in significant and positive organizational impact including, but not limited to, financial turn-around, growth, and/or organizational re-structuring. Preference will be given to nominees whose board leadership accomplishments have been with community-based charities. Deadline - August 24th, 2012 Nominations addressing the candidate's qualifications must be received by August 24th. Nominators are strongly encouraged to address the qualifications related to the four (4) criteria mentioned above and to include at least three (3) letters of support from the charities who have benefited from the candidate's volunteer leadership. Send two (2) packets of nomination materials to: Urbach Community Builders Award Committee New York Council of Nonprofits 272 Broadway Albany NY 12204 or email the packet to Melissa Currado, Executive Assistant to the CEO at mcurrado@nycon.org. NYCON Now Accepting Applications for Board Membership A great opportunity to volunteer your time and lend your expertise to help nonprofits of all types improve the quality of life in New York State. The New York Council of Nonprofits' Board Development Committee is now accepting applications for nominees for its Board of Directors. Terms are for three years, starting January 1, 2013, with a three consecutive term limit. Successful nominees will be presented for election to our Membership at NYCON's Annual Meeting on October 4th in New Paltz. Applicants must be individuals of high integrity, demonstrate commitment to our state's nonprofit sector, and be willing to invest the time, effort, expertise and influence necessary on a regional and statewide basis to further NYCON's mission. All applications will be considered by the Board Development Committee however priority consideration will be given to individuals who meet more than one of the following characteristics: Resides in Hudson Valley, Metro New York or Central New York regions Has public policy knowledge & expertise, particularly with respect to state government Has marketing & Media Relations expertise Is affiliated with Organized Philanthropy Has Banking & Corporate Business expertise & affiliations Is a racial or ethnic minority Applications are due by August 27th, 2012. If you are interested we encourage you to review the NYCON "Board Brief" document and complete the application below: Download an application Download the NYCON "Board Brief" Candidates are recommended to the Board by the Committee and the Board in turn recommends a slate to the NYCON Membership which convenes for our Annual Meeting at Mohonk Mountain House on October 4th during Camp Finance. Board members elected by the members begin service in January 2012. Questions?Please contact us.

All About the Board Members... Nominate an Outstanding CPA Board Member by August 24th Are You Interested in Joining the NYCON Board? Thank You to Our Supporters! NYCON and NYSSCPA would like to recognize The Community Foundation for the Greater Capital Region for their grant contribution towards the Michael H. Urbach, CPA Community Builders Award. For More Information visit NYCON at WWW.NYCON.ORG or contact Melissa Currado at (800) 515-5012 or mcurrado@nycon.org Co-sponsored by The New York State Society of Certified Public Accountants 　 www.nysscpa.org

Is Your Nonprofit Ready for Health Care Reform?

NYCON's insurance subsidiary Council Services Plus (CS Plus) offers info, resources and direct insurance assistance to nonprofits across NYS. CS Plus only works with nonprofits, and has brought over $1 million in savings to nonprofit clients. Visit www.councilservicesplus.com for more info or e-mail.

Health Care Reform: Are You Prepared? The United States Supreme Court largely upheld President Obama's health care law, the Affordable Care Act in a mixed decision. The court's ruling, seen as one of the most significant in decade, is a crucial milestone for the law, allowing almost all of its far-reaching changes to roll forward. The decision did significantly restrict one major portion of the law: the expansion of Medicaid, the government health-insurance program for low-income and sick people. The ruling gives states more flexibility not to expand their Medicaid programs, without paying the same financial penalties that the law called for. The legislation for the Patient Protection and Affordable Care Act (PPACA) will impose significant new responsibilities on employers, some of which are already effective. While further guidance is expected on the application of these requirements, the following provides a summary and timeline of key provisions of the PPACA. As employers look ahead to the implementation of the PPACA, CS Plus will be providing additional updates to provide clients with compliance strategies in connection with various components of the new law. Summary of the Affordable Care Act The Affordable Care Act (umbrella term for the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010) was passed by Congress in March 2010 to overhaul the health care system, expand affordable coverage, change insurance rules and create an online marketplace (exchange) in each state for the individual and small group markets. Most U.S. citizens and legal residents will be required to have health insurance in 2014. Those without coverage would pay a tax penalty based on household income to be phased-in starting in 2014. Federal subsidies will be available to assist those who cannot afford to purchase coverage. Large employers (50 or more full-time employees) will be required to "pay or play" starting in 2014. Qualifying small employers (no more than 25 employees) are eligible for a tax credit for offering coverage beginning in 2010. The tax credit increases in 2014 if employers buy from the exchange, and then phases out in 2016. How Health Reform will Impact Businesses The Patient Protection and Affordable Care Act (PPACA) impacts businesses in several ways - from the types of benefits offered under insurance plans, to the ways employers conduct their businesses. Some provisions are already in effect and more will be implemented over the next several years. General Impacts on Employer-Provided Coverage There are several mandates from the Patient Protection and Affordable Care Act (PPACA) already in effect. View the Timeline below for more information on timing of provisions. Some of the key mandates are below. Grandfathering - "Grandfathering" allowed some plans to be exempt from some Health Care Reform provisions. Lifetime Limits and Annual Limits - Law prohibits imposing annual limits on Essential Health Benefits and any lifetime dollar limits. Medical Loss Ratio (MLR) Reporting - A Medical Loss Ratio or MLR is the percentage of premium dollars insurers spend to provide covered medical services and improve the quality of health care for their members. No Pre-Existing Conditions Exclusions - As of September 2010 there are no pre-existing exclusions for children under age 19. Beginning in 2014, this provision applies to everyone, including adults. Patient-centered Outcomes Research Fee - The Patient-Centered Outcomes Research Tax, also known as the Comparative Effectiveness Research Fee, is a fee paid to the government to fund Patient-Centered Outcomes Research Institute (PCORI) research. Preventive Services - The Patient Protection and Affordable Care Act of 2010 (PPACA) requires health plans to cover designated preventive services without any member cost sharing. Summary of Benefits Coverage - The Departments of Health and Human Services, Labor and Treasury recently issued final regulations requiring health plans to provide a SBC and Uniform Glossary that clearly explain benefits and coverage within a standardized template with uniform language. W-2 reporting - PPACA contains a requirement for employers to report the cost of health coverage under an employer sponsored group health plan on an employees W-2 form. The cost includes both the cost paid by the employer and contributions from the employee. Women's Preventive Services - The Patient Protection and Affordable Care Act (PPACA) requires health plans to cover designated women's preventive services without cost sharing for the member. Cost-sharing includes deductibles, copayments and coinsurance. Some of the benefits and services outlined in the women's preventive guidelines are already included within the existing PPACA preventive services requirements. Establishment of Health Insurance Exchanges On April 12, 2012 Governor Andrew M. Cuomo issued an Executive Order to establish a statewide Health Exchange. State-established health insurance exchanges must begin to operate on January 1, 2014. The Exchanges are virtual marketplaces that allow individuals and eligible employers to purchase health insurance. Initially in 2014, only employers with up to100 employees can purchase insurance for their employees through the Exchange. Prior to 2016, states can limit the size to businesses with up to 50 employees. Beginning in 2017, states can allow employers with more than 100 employees to purchase health insurance for their employees through the Exchange. How Does Health Care Reform Affect Small Businesses? In addition to the key provisions outlined, it's important to know that small businesses already have an opportunity to qualify for: Small business tax credits - In an effort to help small employers offer affordable coverage to their employees, the Patient Protection and Affordable Care Act provides for tax credits for qualified small employers. These credits began in 2010. The credits increase in 2014, but are only available for coverage purchased on an Exchange. The small group tax credit sunsets in 2016. Timeline It will take several years for changes to be enacted and regulations written. However it's important to begin to understand what will be happening in the near future versus long term changes. To view a larger image of the timeline, CLICK HERE.

If you have any questions regarding this update, please contact Anthony DeCicco, Account Executive, Group Benefits at adecicco@councilservicesplus.com; or by phone at (877) 501-4277, ext 123.