NYCON has added it's voice to those of other nonprofit leaders taking a stand against the proposed change to charitable deductions for high income individuals in New York State.
The proposal would result in a 50% decrease in the deductibility of charitable gifts from higher income donors. Already, earners of $1 million or more can only claim 50% of their contribution as a deduction. This proposal would allow donors earning $10 million or more to claim just 25% of their contribution. NYCON is also concerned that this may potentially be the start of eroding charitable deductions in general.
We are urging our members to learn more about this proposal by reading the following articles by the New York Nonprofit Press, The Daily News, and the Chronicle of Philanthropy.
Then, please join us in adding your voice to the memo of opposition by contacting us via email or calling Doug Sauer, CEO at (800) 515-5012 ext. 103.
Contact NYCON and sign onto the Memo of Opposition.
Contact your Senator. Click here for a searchable database of representatives.
Friday, July 9, 2010
Monday, July 5, 2010
City’s Adopted Budget Cuts $60 Million from Human Services
The NY Nonprofit Press reported that City’s Adopted Budget Cuts $60 Million from Human Services
It is an indication of how bad things are that there appears to be a sense of relief that New York City’s adopted budget for FY2010-2011 features only $60 million or so in cuts to human services. Depending upon who is doing the counting, human services providers had been on the block for as much as $200 million in potential cuts as part of Mayor Bloomberg’s Executive Budget. That feeling of relief is wearing off quickly, however, as providers and advocates begin to take stock of what this budget means for programs and funding streams which have been cut substantially – or in certain cases eliminated entirely.
“While we faced nearly $150 million in cuts to human services, we appreciate that the City Council and Mayor have come together to make some crucial restorations to core services,” says Susan Stamler, Director of Policy and Advocacy for United Neighborhood Houses (UNH). “Unfortunately we will still see over $50 million cut from child care, after school, senior services, adult literacy and mental health services. New Yorkers will feel pain from this budget. The City as well as the State and Federal governments must do more to meet the needs of our communities.”
“The capacity of the not-for-profit human services sector is being really hard hit with multiple rounds of budget cuts at a time when demand for services from the hundreds of thousands of jobless New Yorkers continues to rise,” said Bich Ha Pham, Director of Policy, Advocacy and Research at the Federation of Protestant Welfare Agencies (FPWA). “Many organizations are forced to lay off staff and close entire programs because of the significant reduction of their government contracts.”
The magnitude of funding loss can be seen in a review of budget priorities based on the advocacy of the Human Services Council (HSC) and UNH. These umbrella organizations had requested funding restoration of budget cuts totaling $164 million across a range of human service sectors. Budget negotiations between the Mayor and City Council ultimately restored $103 million, leaving a gaping hole of $60 million, 37% of the restoration advocates had been seeking.
And, this represents only the sector’s top budget priorities – not an all encompassing catalogue of human service budget cuts which would likely raise the total funding loss substantially.
The severity of budget cuts and the relative extent of funding restorations varied markedly by service sector and from one program to another. Here is a brief overview, along with some reactions from providers and advocates.
It is an indication of how bad things are that there appears to be a sense of relief that New York City’s adopted budget for FY2010-2011 features only $60 million or so in cuts to human services. Depending upon who is doing the counting, human services providers had been on the block for as much as $200 million in potential cuts as part of Mayor Bloomberg’s Executive Budget. That feeling of relief is wearing off quickly, however, as providers and advocates begin to take stock of what this budget means for programs and funding streams which have been cut substantially – or in certain cases eliminated entirely.
“While we faced nearly $150 million in cuts to human services, we appreciate that the City Council and Mayor have come together to make some crucial restorations to core services,” says Susan Stamler, Director of Policy and Advocacy for United Neighborhood Houses (UNH). “Unfortunately we will still see over $50 million cut from child care, after school, senior services, adult literacy and mental health services. New Yorkers will feel pain from this budget. The City as well as the State and Federal governments must do more to meet the needs of our communities.”
“The capacity of the not-for-profit human services sector is being really hard hit with multiple rounds of budget cuts at a time when demand for services from the hundreds of thousands of jobless New Yorkers continues to rise,” said Bich Ha Pham, Director of Policy, Advocacy and Research at the Federation of Protestant Welfare Agencies (FPWA). “Many organizations are forced to lay off staff and close entire programs because of the significant reduction of their government contracts.”
The magnitude of funding loss can be seen in a review of budget priorities based on the advocacy of the Human Services Council (HSC) and UNH. These umbrella organizations had requested funding restoration of budget cuts totaling $164 million across a range of human service sectors. Budget negotiations between the Mayor and City Council ultimately restored $103 million, leaving a gaping hole of $60 million, 37% of the restoration advocates had been seeking.
And, this represents only the sector’s top budget priorities – not an all encompassing catalogue of human service budget cuts which would likely raise the total funding loss substantially.
The severity of budget cuts and the relative extent of funding restorations varied markedly by service sector and from one program to another. Here is a brief overview, along with some reactions from providers and advocates.
Friday, June 25, 2010
Thoughts about board resignation
Board Cafe • By Jan Masaoka • June 18, 2010
At some point you may resign from a nonprofit board before your term is up. You might be angry, disappointed, or just too busy. Don't botch your resignation: do it right.
Most often as board members we stick out our term limits and leave the board feeling good about what we''ve contributed. But there are also times when you resign before your term is up. Maybe you've missed a lot of meetings or maybe you're moving to another city. Maybe you're uneasy with the direction the organization is taking, or maybe you feel that as a board member you are treated like a "mushroom": kept in the dark and fed manure (!).
Regardless of your reason, you can just walk away quietly, or make a weak excuse, or you can use the moment to give meaning to your resignation, both to you and to the board.
Following are some ways to make significance out of your resignation: Read more here.
At some point you may resign from a nonprofit board before your term is up. You might be angry, disappointed, or just too busy. Don't botch your resignation: do it right.
Most often as board members we stick out our term limits and leave the board feeling good about what we''ve contributed. But there are also times when you resign before your term is up. Maybe you've missed a lot of meetings or maybe you're moving to another city. Maybe you're uneasy with the direction the organization is taking, or maybe you feel that as a board member you are treated like a "mushroom": kept in the dark and fed manure (!).
Regardless of your reason, you can just walk away quietly, or make a weak excuse, or you can use the moment to give meaning to your resignation, both to you and to the board.
Following are some ways to make significance out of your resignation: Read more here.
Thursday, June 17, 2010
NY ranks last in volunteering
The Albany Business Review reported that New Yorkers are not very beneficent when it comes to giving their time. Not at all.
In fact, the Empire State ranks 51st out of 50 states and Washington D.C. when it comes to volunteering, according to the annual Volunteering in America report.
Nationally, however, about 1.6 million more volunteers served in 2009 than in 2008, making this the largest single-year increase in the number of volunteers since 2003, when data was first collected for the study. The report is produced by the Corporation for National and Community Service, a government-sponsored nonprofit. Higher unemployment rates also increase volunteerism.
Nationwide, a total of 63.4 million volunteers contributed 8.1 billion hours of service in 2009, an estimated dollar value $169 billion. Overall, the volunteering rate increased in 2009 to 26.8 percent, up from 26.4 percent in 2008.
Volunteering data used in the annual report is gathered through the Current Population Survey, conducted monthly by the U.S. Census Bureau for the Bureau of Labor Statistics. Volunteers are defined as individuals ages 16 and over who perform unpaid activities for or through an organization.
The study showed that 2.9 million, or 19 percent, of New York residents volunteered in 2007-2009, compared with the national average of 26.8 percent. The Capital Region fared better, but still placed in the lower half of the rankings. It ranked 44th out of the 75 mid-sized cities that were studied for the report, with 27.1 percent, or 200,000, of its residents volunteering.
Compared with other mid-sized cities in New York, the Capital Region placed behind Binghamton, ranked 30th, and Poughkeepsie, ranked 41st, and ahead of 71st-ranked Syracuse. Nationally, Provo, Utah, ranked first among mid-sized cities and El Paso, Texas, was last. Utah was the top state for volunteerism.
Volunteers in New York contributed 405.5 million hours, or $8.5 billion worth in service from 2007-2009.
Read more: New York dead-last in volunteerism - The Business Review (Albany)
In fact, the Empire State ranks 51st out of 50 states and Washington D.C. when it comes to volunteering, according to the annual Volunteering in America report.
Nationally, however, about 1.6 million more volunteers served in 2009 than in 2008, making this the largest single-year increase in the number of volunteers since 2003, when data was first collected for the study. The report is produced by the Corporation for National and Community Service, a government-sponsored nonprofit. Higher unemployment rates also increase volunteerism.
Nationwide, a total of 63.4 million volunteers contributed 8.1 billion hours of service in 2009, an estimated dollar value $169 billion. Overall, the volunteering rate increased in 2009 to 26.8 percent, up from 26.4 percent in 2008.
Volunteering data used in the annual report is gathered through the Current Population Survey, conducted monthly by the U.S. Census Bureau for the Bureau of Labor Statistics. Volunteers are defined as individuals ages 16 and over who perform unpaid activities for or through an organization.
The study showed that 2.9 million, or 19 percent, of New York residents volunteered in 2007-2009, compared with the national average of 26.8 percent. The Capital Region fared better, but still placed in the lower half of the rankings. It ranked 44th out of the 75 mid-sized cities that were studied for the report, with 27.1 percent, or 200,000, of its residents volunteering.
Compared with other mid-sized cities in New York, the Capital Region placed behind Binghamton, ranked 30th, and Poughkeepsie, ranked 41st, and ahead of 71st-ranked Syracuse. Nationally, Provo, Utah, ranked first among mid-sized cities and El Paso, Texas, was last. Utah was the top state for volunteerism.
Volunteers in New York contributed 405.5 million hours, or $8.5 billion worth in service from 2007-2009.
Read more: New York dead-last in volunteerism - The Business Review (Albany)
Sunday, June 13, 2010
Nonprofits struggle without payments due to late state budget
The Poughkeepsie Journal reported that nonprofits that contract with the state are not getting paid because of the late budget, which is forcing some groups to consider suspending services temporarily or closing altogether, according to a new report from the state comptroller.
Aside from the late budget, Comptroller Thomas DiNapoli found that the state's track record of approving contracts on time has worsened. They were approved late 82 percent of the time in 2009, compared to 63 percent of the time the previous year.
The mid-Hudson region, which includes Dutchess, Ulster, Orange, Putnam, Sullivan, Rockland and Westchester counties, had 591 late contracts in 2009 — the third largest number in the state. Only the New York City and Albany regions has had more late state contracts.
In Dutchess County, 68 state contracts were late in 2009, ranging from five days to 905 days late. In Ulster County, 53 contracts were late in 2009, according to the state Comptroller's Office.
Contracts worth $50,000 or more were approved late nearly 93 percent of the time, DiNapoli's report said. Of 6,318 such contracts, state agencies approved 5,844 of them an average of 152 days late in 2009. Their total value was $4.2 billion.
State agencies paid about $176,000 in interest to nonprofits for delays in processing contracts, an increase of 18 percent over 2008, DiNapoli's report found.
"The budget crisis is causing a financial crisis for not-for-profits. It's a double shot of trouble," DiNapoli said in a statement. "Contracts for services are being held up and organizations can't get reimbursed for services they have already provided. It's wrong to expect organizations that operate on shoe-string budgets to float the state." Read more here.
Aside from the late budget, Comptroller Thomas DiNapoli found that the state's track record of approving contracts on time has worsened. They were approved late 82 percent of the time in 2009, compared to 63 percent of the time the previous year.
The mid-Hudson region, which includes Dutchess, Ulster, Orange, Putnam, Sullivan, Rockland and Westchester counties, had 591 late contracts in 2009 — the third largest number in the state. Only the New York City and Albany regions has had more late state contracts.
In Dutchess County, 68 state contracts were late in 2009, ranging from five days to 905 days late. In Ulster County, 53 contracts were late in 2009, according to the state Comptroller's Office.
Contracts worth $50,000 or more were approved late nearly 93 percent of the time, DiNapoli's report said. Of 6,318 such contracts, state agencies approved 5,844 of them an average of 152 days late in 2009. Their total value was $4.2 billion.
State agencies paid about $176,000 in interest to nonprofits for delays in processing contracts, an increase of 18 percent over 2008, DiNapoli's report found.
"The budget crisis is causing a financial crisis for not-for-profits. It's a double shot of trouble," DiNapoli said in a statement. "Contracts for services are being held up and organizations can't get reimbursed for services they have already provided. It's wrong to expect organizations that operate on shoe-string budgets to float the state." Read more here.
Thursday, June 3, 2010
NYCON CEO speaks at Forum on Strategic Alliances & Partnerships
The blog, Done by People, by Joe Brown, Principal and Founder of Slope Resources, LLC, offered the following recap of the "A Conversation with NYS Comptroller Thomas P. Di Napoli and Panel Discussion on Strategic Alliances & Partnerships."
On Monday, I had the opportunity to attend a highly informative and engaging forum which brought together government and nonprofit representatives to discuss the topic of strategic alliances and partnerships among nonprofit organizations. While the discussion focused on New York State’s nonprofit sector, the challenges, considerations, and ideas discussed are applicable to organizations nationwide. In the absence of a video or audio recording of the session, I wanted to share this detailed recap and my impressions of the session.
The event was sponsored by the Community Foundation for the Greater Capital Region and the New York Council of Nonprofits (NYCON) and held at the headquarters of New York State United Teachers (very nice digs, by the way) in Latham, New York, a few miles northeast of Albany.
Karen Bilowith, President and CEO of the Community Foundation for the Greater Capital Region, presided over the session. The approximately 75 attendees included representatives of various nonprofits, including arts, cultural, health, and human services organizations, as well as a number of funders and consultants (including yours truly). Following Ms. Bilowith’s welcoming comments, New York Secretary of State Lorraine Cortés-Vázquez provided brief opening remarks. Ms. Cortés-Vázquez assured the attendees that “most in government” recognize the importance of the nonprofit sector and rules and regulations pertaining to the sector should not be so onerous as to provide disincentives for staff, board members, and volunteers to participate.
I’m from the government, and…
Ms. Cortés-Vázquez then introduced the session’s keynote speaker, New York State Comptroller Thomas P. DiNapoli. The Office of the State Comptroller has responsibility for the review, approval, and payment of the state’s contracts with nonprofit organizations. Mr. DiNapoli noted the importance of the nonprofit sector to the state and its economy, citing 2006 statistics that the state’s approximately 24,000 nonprofits reported revenue of $133 billion and employed nearly 1.2 million people, or 17% of the state’s workforce. He quantified the state’s contractual bonds with the sector as consisting of nearly 31,000 active contracts totaling $14.6 billion, as of June 2009. Read more here.
The balance of the session was devoted to presentations and discussion by a panel consisting of:
■Doug Sauer, who has served as Chief Executive Officer of New York Council of Nonprofits (NYCON) since 1980. NYCON’s membership represents approximately 1,600 charitable nonprofit organizations across New York State.
■Cristine Cioffi, who is a partner in the law firm of Cioffi • Slezak • Wildgrube P.C., but spoke primarily in her role as Chair of the Board of Trustees of Ellis Medicine, an organization which resulted from the recent merger of three nonprofit hospitals in Schenectady County.
■David W. Palmquist, who as Manager of the New York State Museum’s Chartering Program, oversees the chartering of museums, historical societies, and similar cultural organizations with educational purposes across the state.
The panelists responded to questions posed by Ms. Bilowith, as well as several questions from audience members.
Doug Sauer
While all three of the panelists presented interesting perspectives on the potential of various collaborative models for nonprofit organizations, I was particularly impressed by Mr. Sauer’s insight and candor on a number of fronts. Early in his presentation, he discussed the recent proliferation of nonprofits, describing the creation of thousands of new organizations each year, many of which are not active, and the resultant saturated environment. (I was reminded of a recent article in the Chronicle of Philanthropy, which noted that the number of nonprofit organizations nationwide has increased by 90% to 1.2 million since 1996). Read more here.
On Monday, I had the opportunity to attend a highly informative and engaging forum which brought together government and nonprofit representatives to discuss the topic of strategic alliances and partnerships among nonprofit organizations. While the discussion focused on New York State’s nonprofit sector, the challenges, considerations, and ideas discussed are applicable to organizations nationwide. In the absence of a video or audio recording of the session, I wanted to share this detailed recap and my impressions of the session.
The event was sponsored by the Community Foundation for the Greater Capital Region and the New York Council of Nonprofits (NYCON) and held at the headquarters of New York State United Teachers (very nice digs, by the way) in Latham, New York, a few miles northeast of Albany.
Karen Bilowith, President and CEO of the Community Foundation for the Greater Capital Region, presided over the session. The approximately 75 attendees included representatives of various nonprofits, including arts, cultural, health, and human services organizations, as well as a number of funders and consultants (including yours truly). Following Ms. Bilowith’s welcoming comments, New York Secretary of State Lorraine Cortés-Vázquez provided brief opening remarks. Ms. Cortés-Vázquez assured the attendees that “most in government” recognize the importance of the nonprofit sector and rules and regulations pertaining to the sector should not be so onerous as to provide disincentives for staff, board members, and volunteers to participate.
I’m from the government, and…
Ms. Cortés-Vázquez then introduced the session’s keynote speaker, New York State Comptroller Thomas P. DiNapoli. The Office of the State Comptroller has responsibility for the review, approval, and payment of the state’s contracts with nonprofit organizations. Mr. DiNapoli noted the importance of the nonprofit sector to the state and its economy, citing 2006 statistics that the state’s approximately 24,000 nonprofits reported revenue of $133 billion and employed nearly 1.2 million people, or 17% of the state’s workforce. He quantified the state’s contractual bonds with the sector as consisting of nearly 31,000 active contracts totaling $14.6 billion, as of June 2009. Read more here.
The balance of the session was devoted to presentations and discussion by a panel consisting of:
■Doug Sauer, who has served as Chief Executive Officer of New York Council of Nonprofits (NYCON) since 1980. NYCON’s membership represents approximately 1,600 charitable nonprofit organizations across New York State.
■Cristine Cioffi, who is a partner in the law firm of Cioffi • Slezak • Wildgrube P.C., but spoke primarily in her role as Chair of the Board of Trustees of Ellis Medicine, an organization which resulted from the recent merger of three nonprofit hospitals in Schenectady County.
■David W. Palmquist, who as Manager of the New York State Museum’s Chartering Program, oversees the chartering of museums, historical societies, and similar cultural organizations with educational purposes across the state.
The panelists responded to questions posed by Ms. Bilowith, as well as several questions from audience members.
Doug Sauer
While all three of the panelists presented interesting perspectives on the potential of various collaborative models for nonprofit organizations, I was particularly impressed by Mr. Sauer’s insight and candor on a number of fronts. Early in his presentation, he discussed the recent proliferation of nonprofits, describing the creation of thousands of new organizations each year, many of which are not active, and the resultant saturated environment. (I was reminded of a recent article in the Chronicle of Philanthropy, which noted that the number of nonprofit organizations nationwide has increased by 90% to 1.2 million since 1996). Read more here.
Tuesday, May 25, 2010
NYCON Featured on NPR's All Things Considered
NPR story, Amid Red Ink, Tax-Exempts Asked To Add To Coffers, features NYCON CEO Doug Sauer.
State and local governments, eager to close their budget gaps, are increasingly going after charities and other tax-exempt groups. Government officials are proposing new fees on nonprofits to help pay for services. They're also challenging the exemptions these groups get from sales and property taxes.
In Concord, Mass., for example, the Board of Selectmen sent a letter to the town's nonprofits earlier this year. It said that local property taxes were so high they were driving residents away. The board asked the town's private schools, hospitals, charities and churches if they could start paying their fair share.
"I guess we're just hoping that in times where people are economically really stretched, that to the extent that they're able, they can contribute," says board member Virginia McIntyre.
But the initial response was not what the board had hoped. One arts group offered to contribute $1,000 to the town, but most of the nonprofits responded — politely — that they contributed to Concord in many nonmonetary ways.
'A Slippery Slope'
Kathi Anderson is executive director of the Walden Woods Project in Concord. It preserves property including Walden Pond, made famous by Henry David Thoreau — who, she notes, went to jail rather than pay a tax he opposed.
"The land that is now protected is a wonderful resource, not only for people who live in the community, but for people who visit the community," Anderson says.
She says she feels the town's pain but that her group is hurting financially, too. She says it would be hard-pressed to come up with the $89,000 Concord says the Walden Woods Project would owe if it weren't tax-exempt. Even a "donation" to the town would send the wrong message, Anderson says.
"This is a slippery slope because if indeed a donation is made, then it implies that one supports the notion of having charities essentially pay taxes," Anderson says.
And that would fly in the face of the long-time relationship between government and charity — the idea that nonprofits fill a valuable community role and should be exempt from tax.
But increasingly that relationship is being challenged. Boston wants its universities, hospitals and nonprofits to pay 25 percent of what they'd owe if they weren't tax-exempt. Philadelphia is talking to its universities about similar payments. Kansas and Hawaii considered repealing tax exemptions for nonprofits as part of their budget debates. And Minneapolis has imposed a "streetlight fee" on nonprofits to help pay for electricity and bulbs.
Tim Delaney, president of the National Council of Nonprofits, says these moves couldn't come at a worse time.
"Corporate donations are down significantly. Individual giving is down. Foundation giving is down substantially," even though demand for charitable services is up, he says. Delaney says adding more costs will only hurt taxpayers in the long run because there's high demand for the types of services — such as health care and food pantries — that many nonprofits provide.
"When we can't [provide them], then there's greater needs in the community. And when the needs get so severe, then we're going to find people demanding that government step in. That is going to cost a whole lot more," he says.
Albany's Experience
But Frank Commisso, a council member in Albany, N.Y., says cities like his have little choice. More than half of Albany's property is tax-exempt because the city is home to so many state offices, hospitals and universities. But he says these institutions still rely on city services. Read more and listen to the story here.
State and local governments, eager to close their budget gaps, are increasingly going after charities and other tax-exempt groups. Government officials are proposing new fees on nonprofits to help pay for services. They're also challenging the exemptions these groups get from sales and property taxes.
In Concord, Mass., for example, the Board of Selectmen sent a letter to the town's nonprofits earlier this year. It said that local property taxes were so high they were driving residents away. The board asked the town's private schools, hospitals, charities and churches if they could start paying their fair share.
"I guess we're just hoping that in times where people are economically really stretched, that to the extent that they're able, they can contribute," says board member Virginia McIntyre.
But the initial response was not what the board had hoped. One arts group offered to contribute $1,000 to the town, but most of the nonprofits responded — politely — that they contributed to Concord in many nonmonetary ways.
'A Slippery Slope'
Kathi Anderson is executive director of the Walden Woods Project in Concord. It preserves property including Walden Pond, made famous by Henry David Thoreau — who, she notes, went to jail rather than pay a tax he opposed.
"The land that is now protected is a wonderful resource, not only for people who live in the community, but for people who visit the community," Anderson says.
She says she feels the town's pain but that her group is hurting financially, too. She says it would be hard-pressed to come up with the $89,000 Concord says the Walden Woods Project would owe if it weren't tax-exempt. Even a "donation" to the town would send the wrong message, Anderson says.
"This is a slippery slope because if indeed a donation is made, then it implies that one supports the notion of having charities essentially pay taxes," Anderson says.
And that would fly in the face of the long-time relationship between government and charity — the idea that nonprofits fill a valuable community role and should be exempt from tax.
But increasingly that relationship is being challenged. Boston wants its universities, hospitals and nonprofits to pay 25 percent of what they'd owe if they weren't tax-exempt. Philadelphia is talking to its universities about similar payments. Kansas and Hawaii considered repealing tax exemptions for nonprofits as part of their budget debates. And Minneapolis has imposed a "streetlight fee" on nonprofits to help pay for electricity and bulbs.
Tim Delaney, president of the National Council of Nonprofits, says these moves couldn't come at a worse time.
"Corporate donations are down significantly. Individual giving is down. Foundation giving is down substantially," even though demand for charitable services is up, he says. Delaney says adding more costs will only hurt taxpayers in the long run because there's high demand for the types of services — such as health care and food pantries — that many nonprofits provide.
"When we can't [provide them], then there's greater needs in the community. And when the needs get so severe, then we're going to find people demanding that government step in. That is going to cost a whole lot more," he says.
Albany's Experience
But Frank Commisso, a council member in Albany, N.Y., says cities like his have little choice. More than half of Albany's property is tax-exempt because the city is home to so many state offices, hospitals and universities. But he says these institutions still rely on city services. Read more and listen to the story here.
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