Posts Tagged ‘philanthropy’
November 21, 2011
Will anyone reading this blog who was invited to this event, or knows anyone who was, please comment and tell the rest of us what it was supposed to accomplish and what actually happened? Many thanks from the—oh, what’s the term? “Other 99%”?
From the Chronicle of Philanthropy via LinkedIn (emphasis mine):
White House Hosts Meeting on Nonprofit Leadership
November 14, 2011, 5:07 pm
By Lisa Chiu
The White House has invited leaders from about 200 nonprofits to Washington to take part in a daylong program that will focus on the role of nonprofits and how charities can develop effective leaders. The event, which takes place Tuesday at the national office of the American Red Cross and is closed to the public, will feature discussions led by White House officials and business and nonprofit leaders.
Speakers include Valerie Jarrett, senior adviser to President Obama; Jonathan Greenblatt, director of the White House Office of Social Innovation and Civic Participation; Joshua DuBois, executive director of the White House Office of Faith-Based and Neighborhood Partnerships; and Kenneth I. Chenault, chief executive of American Express. The White House worked with American Express as well as the Annie E. Casey Foundation, the Aspen Institute Program on Philanthropy and Social Innovation, the Center for Creative Leadership, Commongood Careers, Independent Sector, and Public Allies to organize the event.
Tags:501c3, charity, nonprofit, not for profit, philanthropy, politics
Posted in Nonprofit management, Nonprofits--General, Public private partnerships, Strategic Planning (and the tactical kind, too) | 1 Comment »
November 18, 2011
While the Feds debate the future of the charitable deduction (among many other aspects of the tax code), some states are diving in with modifications to their own tax subsidies to charity. Michigan, for instance, will apparently permit a tax credit for donations (available for the past forty-plus years) to expire at year’s end.
Naturally, nonprofit leaders are distressed and are giving voice to their concerns. The Nonprofit Quarterly reports:
According to Michigan Radio, the credit allows Michigan taxpayers to essentially double their contribution when they give to community foundations, homeless shelters, food banks, and public institutions (such as Michigan universities, museums, public libraries, and public broadcasting stations).
The tax credit has been eliminated as part of the governor’s plan to pay for a business tax cut. According to the Detroit News, 250,000 made use of the credit in 2010, and it earned $100 million for Michigan charities and provided $40 million in write-offs.
You won’t find the Nonprofiteer cheering any endeavor designed to pay for a business tax cut, especially when it’s so well-documented that many businesses pay nothing like the nominal rate–or even pay nothing at all. But it’s too simple, and not exactly correct, to argue that the tax credit earned $100 million on a $40 million investment. First, we don’t know how many of those gifts to charities would have been made anyway. Second, as is the case with all tax subsidies, the money taken from the public fisc doesn’t support the same public purposes it would if the taxes were paid. If Michigan traded $40 million worth of public schools and police officers for $100 million worth of private schools and university police forces, is it really better off? The allocation of funds matters as much as, if not more than, the raw amounts.
NPQ further quotes a representative of the Community Foundation for Southeast Michigan:
Studies have shown that people give to charity because they care about the cause, but tax policy influences how much people are able to give . . . . We anticipate that with the loss of the tax credit, people will give to charities they’ve supported in the past, but they will give less because it costs them more.
She may be correct, but that’s actually less an argument for maintaining the credit than for raising the tax rate on individuals. The higher the tax, the greater the value of any tax subsidy, and therefore the more likely individuals are to make tax-subsidized gifts.
That’s the theory, anyway. We’ll all be interested to see how this turns out.
And meanwhile, the Cook County Assessor has begun the process of returning Northwestern Memorial Hospital buildings to the property tax rolls, after a court ruled they were not “charities” and therefore not entitled to continued exemption under the state Constitution. The Illinois situation is worth watching because it represents a modification to tax subsidies not by the legislature but by the courts–meaning something not subject to public pressure or comment.
The Nonprofiteer is NOT arguing against “activist judges,” or any nonsense of that kind. The Illinois Supreme Court’s rulings in this area have been (in her view) utterly within the four corners of the Illinois Constitution. She’s merely making the point that sector-wide outcry will have no impact on judicial changes to the tax environment–which means that one way or another we’ll all find out soon how important tax subsidies really are.
Tags:501c3, charity, Chicago, donors, nonprofit, not for profit, philanthropy
Posted in Coverage of nonprofits, Current Affairs, Finances, Nonprofit management, Nonprofits--General, Philanthropy and Taxation, Private Philanthropy, Public private partnerships | 1 Comment »
November 10, 2011
It will be interesting to see how things develop at the Washington Post’s new On Giving section. Self-described as a “conversation about philanthropy and social entrepreneurship,” it at least aspires to talk about the nonprofit sector in more depth than the conventional scandal-or-gala approach. (The Nonprofiteer has long complained about the mainstream media’s coverage of the sector, which manages to be both narrow and shallow; in fact, those shortcomings account for the launching of this blog.)
But is a focus on mammoth gifts and efforts to up-end the nonprofit model really any better? Maybe those are the dog-bites-man stories. Maybe the day-to-day struggles of the majority of good-deed-doing agencies simply don’t lend themselves to the conventions of daily journalism—but the Nonprofiteer would give a lot to see someone try to find out.
Tags:501c3, charity, corporate giving, nonprofit, not for profit, philanthrocapitalism, philanthropy, social entrepreneurship, Washington Post
Posted in Charity scandals, Coverage of nonprofits, Nonprofits--General, Private Philanthropy, Social enterprise | Leave a Comment »
November 8, 2011
. . . wrote Andy Rooney in this long-ago essay. This makes as much sense to the Nonprofiteer as anything else Andy Rooney ever said, which is to say, not much. What does it mean to “deserve” charity, beyond needing it? As George Bernard Shaw’s Alfred Doolittle memorably explained in Pygmalion,
If theres anything going, and I put in for a bit of it, it’s always the same story: “Youre undeserving; so you cant have it.” But my needs is as great as the most deserving widow’s that ever got money out of six different charities in one week for the death of the same husband. I dont need less than a deserving man: I need more. I dont eat less hearty than him; and I drink a lot more. I want a bit of amusement, cause I’m a thinking man. I want cheerfulness and a song and a band when I feel low. Well, they charge me just the same for everything as they charge the deserving. What is middle class morality? Just an excuse for never giving me anything.
Philosopher Matt Zwolinski made the same point in somewhat more formal terms.
T]he mere fact that there is a valid moral distinction to be made does not entail that we want our public policies to make it. It is, after all, difficult to discern between the deserving and the undeserving – maybe especially for governments, but for private charities too.
And Jewish folklore provides yet another version. The story is told of a rabbi who gave a beggar $100 and then faced the reproaches of his wife, who’d seen the beggar’s wife wearing fur. “He told me he needed it, and I had it, so I gave it to him,” replied the rabbi. “What he does with it after is none of my concern.” The point is that generosity is the process of separating yourself from your money, not the process of evaluating someone else’s virtues.
Does the Nonprofiteer tend to give her money to causes she judges worthwhile (and therefore deserving) and to agencies she believes are efficient (and therefore deserving)? Of course. But does she worry about whether the UN Population Fund is providing assistance only to women who became pregnant by an angel, or whether the ACLU vindicates the rights only of upright church-goers? Of course not. People who need help, deserve help. End of conversation.
Tags:501c3, ACLU, charity, deserving poor, donors, Fundraising, nonprofit, not for profit, philanthropy, Poverty, Relations with funders, UNFPA
Posted in Coverage of nonprofits, Fundraising, Mission, Nonprofit management, Nonprofits--General, Poverty, Private Philanthropy | Leave a Comment »
November 7, 2011
Alarms are sounding in the Nonprofiteer’s home town of Chicago today about the first budget proposed by Mayor Rahm Emanuel, which requires nonprofits to pay for water and sewer services they previously received free. A sector-wide outcry produced one modification—a phasing-in of the charges over three years at smaller nonprofits—but generally the Mayor is keeping a campaign promise to ask nonprofits to bear their “fair share” of municipal costs.
He also seems to be following the lead of the Illinois courts which, as previously noted, are re-examining the nonprofit status of several of the state’s hospitals. The Nonprofiteer’s colleagues at The Nonprofit Quarterly characterize Emanuel’s move as over-reaching, in that it affects nonprofits other than hospitals. But the Nonprofiteer has no difficulty identifying non-hospital nonprofits whose water and sewer bills she doesn’t feel like subsidizing: the YMCA of Metropolitan Chicago (which, notwithstanding the social services it provides, is mostly a very successful health club that uses a lot of water); the Art Institute of Chicago (which, notwithstanding the educational programs it provides, is a wealthy institution with very low personnel costs because every art-history major wants to work there); the University of Chicago (whose housing and athletic facilities use as much water as any suburban development and whose property tax exemption is secured by the Illinois Constitution). And let’s remember that the smallest nonprofits are renters, most of whom get water and sewer as part of their leases from for-profit landlords, and won’t be affected in the least. So a bit less howling, okay?
Especially as we contemplate this past weekend’s flood of accounts transferred to nonprofit credit unions in reaction to the obvious greed of the largest banks, particularly Bank of America. (Even a major philanthropist has moved his accounts to protest B of A’s failure or refusal to modify a reasonable number of mortgages). Maybe if the credit unions get wealthy enough they’ll be able to provide the rest of the sector with the working-capital loans it can rarely get from commercial banks. Maybe they’ll offer special water-and-sewer-bill loans.
And maybe a little taste of self-help will remind the sector that it’s supposed to be independent. Political trends come and go but the work we do must continue, and it’s our business to organize ourselves so it can.
Tags:501c3, arts groups, charity, Chicago, credit, nonprofit, not for profit, philanthropy, Real Estate, recession, Relations with funders, social services, taxation, water bills
Posted in Arts Organizations, Coverage of nonprofits, Current Affairs, Environmental, Finances, Government grants, Health care, Higher education, Nonprofit management, Nonprofits--General, Private Philanthropy, Public private partnerships, Real Estate, Relations with funders, Social Service Agencies | Leave a Comment »
November 3, 2011
Thanks to Thomas Cott of You’ve Cott Mail for pointing the Nonprofiteer to this article in Crain’s New York Business about the value of collaboration among small arts organizations as typified by the Lower Manhattan Arts League.
The league — which includes small groups like Access Theater and larger organizations such as Dance New Amsterdam and the Children’s Museum of the Arts — has monthly meetings where constituents help each other with everything from fundraising to legal advice. The groups have created a downtown cultural festival, which they produce in the fall and spring. The members even apply for some grants as one entity and lobby the city government as a pack. Individually, some members with budgets as small as $100,000 are barely on funders’ radar, but as a group the members generate around $14 million in economic activity per year and employ roughly 1,200 people full- and part-time. After years when none of the groups were able to score a grant from American Express, for example, the consortium applied together in 2009 and was awarded $100,000. They divvied up the money according to the size of each budget.
While the cheery tone of the article elides some of the serious difficulties arts organizations face in aligning their missions and needs with one another, the point is nonetheless well-taken: organizations too small to get attention on their own may be big enough when combined with others to secure foundation funding and government cooperation.
Such collaborations also serve as living ripostes to the chronic funder complaint that the supply of arts organizations exceeds the demand for them: if these disparate groups can work together without cannibalizing their audiences or funding, they must not be duplicating each other’s work. Or, as it is written: the whole [collaborative network] is greater than the sum of its parts.
Tags:501c3, arts groups, charity, collaboration, donors, foundations, Fundraising, nonprofit, not for profit, philanthropy, public funding for the arts, Relations with funders, theater
Posted in Advocacy, Arts Organizations, Coverage of nonprofits, Government grants, Management Advice Day tip, Mergers, acquisitions and consolidations, Mission, Nonprofit management, Nonprofits--General, Relations with funders | 3 Comments »
November 2, 2011
Ellen Alberding’s interview with the Chicago Tribune in advance of the Independent Sector‘s meeting in Chicago earlier this week pressed nearly every one of the Nonprofiteer’s buttons. Ms. Alberding, head of the Joyce Foundation, described the Foundation’s approach to what even she characterizes as a perfect storm of increased need and reduced resources in the nonprofit sector:
We do what any good business person would do when faced with reduced resources. We have become very focused on first maintaining support of our core grantees. Foundations are required to spend a minimum amount — 5 percent of our assets. On occasion, we will overspend that in order to keep our grantees whole.
In other words, business as usual. Most likely the Joyce Foundation’s governing documents prevent its Board from spending its assets down to zero, but there’s no reason why the Foundation shouldn’t use more than the statutory minimum 5% of its $800 million in assets to sustain the work it exists to support. Foundations are NOT businesses; they exist to give their money away, and only in some vague theoretical sense is an institution with $800 million facing constraints preventing it from giving away more than $40 million.
If Joyce gave only 6% instead, that would be another $8 million available to nonprofits in its areas of concern—a not-insubstantial 20% increase. What is stopping the Foundation from doing this, other than a misguided sense that preserving its capital is more important than doing its job?
And then the cherry on the sundae:
It’s the position of the Independent Sector that a cap [on charitable deductions] will reduce charitable contributions across the board and diminish support for nonprofit organizations. I believe it’s the administration’s view that the 28 percent cap might have some impact, but it wouldn’t have a dire impact. (But) I think we have to listen to the organizations themselves, who feel otherwise.
In other words, notwithstanding reality, the prejudices of self-interested parties will dictate the organization’s behavior. Their minds are made up—don’t confuse them with the facts. But as President of the organization, doesn’t it behoove Ms. Alberding to make sure her members don’t make their decisions based on fantasy?
Grrrr.
Tags:501c3, Board of Directors, charity, Conflict of Interest, donors, Endowment, foundations, Fundraising, grantmaking, grants, IRS, nonprofit, not for profit, philanthropy, politics, recession, Relations with funders
Posted in Boards of Directors, Conflict of Interest, Coverage of nonprofits, Finances, Foundation Hall of Shame/Stupid Foundation Tricks, Fundraising, Investment, Mission, Nonprofit management, Nonprofits--General, Philanthropy and Taxation, Private Philanthropy, Relations with funders | Leave a Comment »
October 31, 2011
Do you have any advice on getting phone numbers for donors not connected to board/staff/etc?
We’re finding it increasingly challenging, and people are understandably protective of personal info.
Signed, Waiting By The Phone
Dear Waiting:
I don’t, actually, though I’m a big user of WhitePages.com, where lots of people “protective of personal info” will find to their surprise that they’ve been listed. It’s worth checking, at least, because it’s much more comprehensive than the old phone book. You do risk having people say, “How did you get this number?” though relatively few will want to yell at you for saying thank you, and it doesn’t hurt to say, “Your number is published on WhitePages.com so we thought it was public information; if you’d rather it weren’t you might contact the site.”
Another thing: make sure your staff carefully examines the front of any check you receive (does anyone still send checks instead of credit card numbers?). It’s pretty standard to have phone numbers there, and that’s your first, last and only chance to copy down information you’ll need later.
Finally, modify your donor contribution card to ask for a phone number. Some people will refuse to complete the card, but many will fill it in just out of habit and then you’ve got them.
Tags:501c3, charity, donors, Fundraising, nonprofit, nonprofits, not for profit, philanthropy, Relations with funders, volunteer
Posted in Fundraising, Management Advice Day tip, Nonprofit management, Nonprofits--General, Private Philanthropy, Relations with funders, Technology | Leave a Comment »
October 28, 2011
So here’s something the Nonprofiteer heard yesterday: if an agency’s response to every initial donation is to have a Board member pick up the phone and call the donor to thank him/her, the likelihood of a second donation increases by something like 80%.
What’s terrific about that (other than the obvious, donor retention) is that picking up the phone is often the biggest hurdle Board members need to clear to become effective fundraisers. So if they get used to picking up the phone in a completely non-threatening situation–when their only task is to say, “Hi, I’m a volunteer Board member of agency X and I just wanted to thank you for your gift–we really appreciate your support”–you’re halfway (well, maybe one-third-way) to getting them to pick up the phone and ask their friends to come to a benefit event or a fundraising lunch.
Sounds like the ultimate low-cost high-yield endeavor. Has anyone tried it? Is it as good as it sounds?
Tags:501c3, Board of Directors, charity, charity promotion, donors, Fundraising, human resources, nonprofit, nonprofits, not for profit, personnel, philanthropy, Relations with funders, volunteer
Posted in Benefit events, Boards of Directors, Fundraising, Management Advice Day tip, Nonprofit management, Nonprofits--General, Personnel Issues, Private Philanthropy, Relations with funders, Volunteers/Volunteerism | 3 Comments »
October 27, 2011
Kudos to the Nonprofiteer’s nonprofit consulting colleagues Campbell and Co. for sponsoring a study by the Indiana University Center on Philanthropy to determine the impact on giving of increased marginal tax rates and a cap the charitable-giving deduction. While some of us have been arguing that both of these moves toward social justice should be supported by the nonprofit community, and others have been arguing that the world will come to an end if every penny of tax savings isn’t afforded to the generous rich, these institutions decided to look for the facts.
The facts–as elegantly stated in a Congressional Research Service study that came to the same conclusion–are these:
The estimated effects of the cap and other elements of the budget package depend on whether the proposals are compared with the current tax rates of 33% and 35% or the rates scheduled for 2011, 36% and 39.6%. Compared with current rules, estimated effects are between one-half a percent and 1% decline in charitable giving . . . . When compared with tax rate provisions in 2011, charitable deductions are estimated to fall by about 1.5% if only the cap is considered, but if income effects from the entire budget package are included contributions actually rise 2.5%. The relatively modest effects of the proposal arise because (1) the effect of caps on the subsidy value is limited, (2) only a fraction (about 16%) of charitable giving is affected, and (3) because evidence suggests that behavioral responses to changes in subsidies are relatively small.
(Emphasis the Nonprofiteer’s.) To paraphrase: the tax subsidy isn’t much reduced; that small reduction doesn’t affect 84% of charitable giving; and, in fact, charitable giving isn’t all that tied to tax benefit.
So whether we take the IUPUI findings that charitable giving is likely to decline modestly if these tax reforms are enacted, or the CRS findings that it might actually go up, we should realize that everyone who’s hyperventilating about the impact of these changes on their poor struggling private school, museum or hospital should just take a deep breath. Given that the reforms will support many of the social programs, environmental protections, educational institutions and health care options the nonprofits themselves seek to provide, it’s about time for the community to stop whining and agree to pony up.
Tags:501c3, charitable tax deduction, charity, donors, Fundraising, IRS, nonprofit, nonprofits, not for profit, philanthropy
Posted in Advocacy, Arts Organizations, Coverage of nonprofits, Current Affairs, Disease charities, Education, Environmental, Finances, Fundraising, Health care, Higher education, Nonprofit management, Nonprofits--General, Philanthropy and Taxation, Private Philanthropy, Social Service Agencies | Leave a Comment »
