Thursday, December 13, 2012

Idealware: Helping Nonprofits Make Smart Software Decisions


Nonprofit Technology Survey

How much do nonprofits budget for technology annually? How effectively do nonprofits feel they are applying technology to fundraising for their cause? To find out the answers to these and other key questions about nonprofit technology practices, we're helping to distribute a  survey created by NTEN, a membership organization of nonprofit technology professionals. 
Please participate in the survey here.
The survey will take about 10-15 minutes to complete.
Everyone who takes the survey before December 21st will be invited to enter a drawing for a $500 Amazon Gift Card.
This survey is intended for the person at your nonprofit organization most likely to manage technology and/or staffing decisions. Not you? Please forward the survey to the person who is.
If you are a consultant or provider who works with nonprofits, please forward this invitation on to your nonprofit clients.
Please take the survey online here.
NTEN is a 501(c)(3) nonprofit that provides education and resources regarding effective technology management in the nonprofit sector. All responses will remain anonymous and only be reported in aggregate. A report based on the findings from this survey will be made available in the first half of 2013, as a free resource for the nonprofit sector.

Nonprofits and the ‘Fiscal Cliff’: What Lies Ahead?


Nonprofits are scrambling to persuade Congress to avoid making spending cuts and tax changes that would hurt donors and the people charities serve.
But how can your organization make its voice heard during the debate surrounding the fiscal cliff? 
View this live discussion that explains what might happen over the next few weeks and months and show you step by step how to influence budget debates on Capitol Hill and in state capitols across the country.
The Guests:
Tim Delaney, is chief executive of the National Council of Nonprofits.
Patrick Lester is director of federal fiscal policy for OMB Watch. Read Mr. Lester's analysis,Mitigating the Impact of a Temporary Sequester.

New York AG Eric Schneiderman to nonprofits: Show us your campaign money


New York AG Eric Schneiderman to nonprofits: Show us your campaign money

By Teri Weaver, The Post-Standard 


Syracuse, N.Y. -- Attorney General Eric Schneiderman has proposed regulations that would make certain nonprofit groups report their political spending, a change that could reveal the source of millions of dollars in campaign money currently hidden from public view.
The proposal could make most nonprofits -- including 501(c)(4)s -- registered with New York report the breakdown of spending that goes toward federal, state and local elections. If that spending topped $10,000, the group would be required to disclose money donated to the group and spending toward political candidates or issue advocacy in state and local races.
Schneiderman, the state's top law enforcement officer, has the authority to regulate nonprofits. He must hold public hearings on the proposal, but he ultimately has the ability to impose the new rules, The New York Times reported.
The changes are a way around the hidden campaign spending that has flourished since
U.S. Supreme Court’s 2010 Citizens United decision -- especially in 501(c)(4) groups.
Those organizations "have become vehicles for political activity, including funding sham 'issue ads' that attack candidates for public office," according to a news release from Schneiderman. The "501(c)(4)s have become attractive conduits for this sort of activity because they can raise and spend unlimited funds, conceal their funding sources, and avoid paying corporate taxes on donations. In the last two election cycles, election spending through 501(c)(4)s exceeded spending through traditional political action committees."
Under the new rules, nonprofits that spend $10,000 or more a year that way would have to list each expenditure and each contribution of $100 or more, including the contributor’s name, address and employer.
The information would be public, with an exception for donors who specify that their funds can’t be used for electioneering.

As the Times points out, the change could affect lawmaking in New York involving such high-profile issues as hydrofracking, gaming and redistricting.
"The rules would also affect any tax-exempt groups that join expected battles over a proposed constitutional amendment that would expand casino gambling, a top priority of Gov. Andrew M. Cuomo; another constitutional amendment that would alter the state’s redistricting process; and any local ballot measures regarding hydraulic fracturing," Nicholas Confessore wrote in the Times story.
The new rules would not apply to 501(c)(3) organizations, which are already strictly prohibited from intervention in political campaigns, according to Schneiderman.

For online article click here

Major Renter to Students to Pay Millions for Civil Fraud

Major Renter to Students to Pay Millions for Civil Fraud



The founder of a nonprofit group that has rented affordable apartments to a generation of New York City college students siphoned millions of dollars from the agency through a shell company, using the group’s money to fly back and forth to a second home in Aspen, Colo., and to pay for a luxury penthouse in Brooklyn, an investigation by the state attorney general’s office has found.
George Scott, the founder of Educational Housing Services, along with his wife, Yun Suk Scott, and the group’s board of directors, agreed to a $5.5 million settlement to resolve the inquiry, the attorney general’s office said on Sunday. Investigators found that the group’s board had acted with what the attorney general called “stunning” negligence in allowing a shell company, which Mr. Scott created, to charge Educational Housing millions of dollars for unnecessary services. The board was also faulted for approving Mr. Scott’s salary: $718,032 in 2010 and as much as $1.4 million in 2007, amounts the attorney general called excessive.
Most of the settlement, which included no admission of wrongdoing, will go toward reducing the students’ rents and improving conditions of their rooms, the attorney general’s office said.
“Siphoning millions of dollars at the expense of college students is deplorable,” Attorney General Eric T. Schneiderman said in a statement. “We have no tolerance for officers and directors who treat a nonprofit organization as a vehicle for personal enrichment.”
Criminal charges were not expected because the attorney general’s office considered Mr. Scott’s actions a case of civil fraud that was approved by the board of directors.
Mr. Scott founded Educational Housing in 1987 and turned it into the city’s largest provider of student housing other than the colleges themselves, the attorney general’s office said. The group operates several residences in Brooklyn and Manhattan.
Mr. Scott resigned as president last month. His lawyer, Robert S. Wolf, denied any wrongdoing and said Mr. Scott had done much to improve student life in the city.
“No monies were siphoned from E.H.S. and in fact all relevant decisions were ratified by E.H.S.’s board of directors,” Mr. Wolf said in a statement.  
In 2002, Mr. Scott created a separate company, Student Services Inc., to provide cable, phone and Internet services to Educational Housing’s dorm rooms.
But investigators found that Student Services was only a middleman between the nonprofit agency and real cable companies, and that it charged Educational Housing millions of dollars over the years for no meaningful work.
The attorney general’s office depicted the board of directors as a willfully negligent group that allowed Mr. Scott to carry out his ruse over many years. In 2008, the board approved a contract for Student Services, the shell company, to provide services to Educational Housing at “unreasonably high rates” for the next five years, Mr. Schneiderman said.
“The breakdown in corporate governance at Educational Housing Services was stunning,” Mr. Schneiderman said.
The board members were found to have received exorbitant salaries, and some had inflated consulting contracts from the company as well, the attorney general’s office said.
As part of the settlement, the five-member board agreed to resign and pay $1 million from their personal funds. They were barred from ever serving on the board of a New York charity.
Educational Housing has two months to propose new board candidates to the attorney general’s office for approval.
For the online article click here

Wednesday, December 12, 2012

Fiscal Cliff Campaign Update


Countdown to Tax Hikes: 22 Days
Countdown to Arbitrary Spending Cuts (sequestration): 24 Days

Need to Know: (action items in this message)
In this message we’re sharing several media ideas and tools that have been developed and utilized within the network. Please take a look, take action today, and tell us what you’re doing (so that everyone will benefit).

I. Big Picture
The media are reporting that momentum is building for Republicans to agree to a tax-rate increase of some level for upper-income taxpayers, which is President Obama’s top priority. There is also growing speculation that Democratic opposition is lessening on some entitlement reforms, such as raising the age for Medicare eligibility from 65 to 67, and changing the index used for calculating inflation for Social Security payments. The oft-quoted mantra for congressional negotiations is that “nothing is agreed to until everything is agreed to,” so no details are close to being final.

Yesterday, Senators Schumer (D-NY) and Menendez (D-NJ) introduced the “Hurricane Sandy and National Disaster Tax Relief Act” that, among other things, lifts the current cap on charitable giving (50 percent of Adjusted Gross Income) for qualified disaster contributions. Once again, policymakers are relying on incentives for giving to alleviate suffering and expedite recovery in their communities.

Tomorrow (Wednesday, 12/12 @ 3:30 – 4:30 Eastern), BoardSource is hosting a webinar on “The Fiscal Cliff’s Twin Threats Against the Work of Charities,” during which we will be sharing our message about how two parts of the fiscal cliff threaten to create massive new burdens on nonprofits and even more work for board leaders. By making funding cuts without reducing the underlying human needs, the demand on nonprofits will increase whilethe resources for providing needed services will decrease. Capping or limiting the value of charitable deductions will further reduce the ability of charitable organizations to meet the increasing need for services. You can share this with your board members and others so they join more than 350 already signed up to learn why they should raise voices. 
Register now to learn more about these potentially devastating threats and what each of us can do NOW to voice our views.  
Also tomorrow (Wednesday, 12/12 @ 1:00-2:00 pm Eastern), several national nonprofits are hosting a conference call on the charitable giving incentive. Speakers include Fr. Larry Snyder of Catholic Charities USA, Diana Aviv of Independent Sector, and Rand Wentworth of the Land Trust Alliance, among others. The call-in number is  712-432-7300: access code 57668#.

II. Network Status Update (Let Tammie Smith know what you’ve done lately)
  • Letter to Congressional Delegations: 16 (of 42 State Associations/Nonprofit Allies)
  • Action Alerts: 34 (of 42 State Associations/Nonprofit Allies)
    • Number of Alerts: 44 (10 State Associations/Nonprofit Allies have sent 2 action alerts)
    • NOTE: If you want us to send an Action Alert for you, we can. Just let us know.
  • Media Outreach: 7 State Associations/Nonprofit Allies (13 contacts)
    • Social Media: 17 Facebook postings
III. Good Ideas
As powerful as our individual stories are, letters and phone calls to policymakers alone will not carry the day. We need the help, engagement, and attention of the news media in the home towns of the elected officials. We offer the following ideas from around the network with the goal of getting rank-and-file Senators and Representatives to tell their leaders: “I’m taking a lot of heat back home; you’ve got to prevent these arbitrary cuts and refuse to cap or limit the charitable deduction””
  • Targeted Joint Statements: Last week, leaders of 11 Catholic human service agencies in the Cincinnati area issued a joint statement calling on federal leaders to protect the poor and vulnerable there and abroad in fiscal cliff negotiations. The Cincinnati Enquirer picked up the story and informed all of Speaker John Boehner’s constituents of the potential local impact of the automatic cuts if he doesn’t reach a deal to avert the fiscal cliff.
    • Footnote to this story: Our colleague Beth Bowsky, who lives in Cincinnati, had previously shared with the Enquirer the network’s media statement and other materials, perhaps helping to lay the groundwork for the reporter’s interest prior to his receiving the local story from the Archdiocese.
  • Media Statements: Several State Association leaders have issued comments to the press or talked with reporters as they prepare stories. The National Council of Nonprofits issued a Media Statementlast week – intentionally designed as a background piece rather than the usual news release. The Statement provides a summary of the broader context, all designed to garner the attention of editors for the issues presented.
  • Editorial Board Meetings: Jim White, the new Executive Director for the Nonprofit Association of Oregon, participated in an editorial board meeting at the largest newspaper in the state along with two other nonprofit leaders. They addressed the questions raised, and, through excellent pre-meeting planning, covered all of the key points they wanted to make – using facts, stories, and obvious passion for the community.
  • Divvying Up the State: Yes, we want every State Association to be seen as the leader on this issue in the state; but we all know that the local angle is usually the first interest for editorial boards. TheNorth Carolina Center for Nonprofits solved this problem by preparing and sharing materials for their geographically diverse board members to submit to their local news outlets. This week, the Center is following up with any uncovered media markets to ensure that the whole state is covered.
  • Tools You Can Use: By all means, take the materials we’ve prepared and modify them for maximum impact in your state: InfographicMedia StatementMyths vs. Realitiesother resources.
  • Share: Help us develop the best array of ideas and tools for getting the news media across the country to focus on the impact in communities of the arbitrary cuts and proposals to cap or limit charitable deductions. Share with us and your colleagues the press statements, op-eds, talking points, quotes, etc., that you have developed for media contacts in your states.
IV. Why We’re Fighting
We have received powerful comments from nonprofits throughout the country who have gone to the GiveVoice.org website. Here is a sampling (permission given for naming organizations):
  • “We are a nonprofit organization who helps those with cancer at no cost to them or their families.  We rely on fundraisers and donations to stay open with an all-volunteer staff. We are the only organization offering the programs and services in the Tri-State area we live in. We rely on the current charitable giving incentives so we may continue to help those who are newly diagnosed or going through treatments.” We Care Cancer Support Inc., Bullhead, Arizona
  • “Soroptimist International of the Central Jersey Coast services the hardest hit area of Storm Sandy. Many of our members have lost homes. Our neighbors are suffering devastating loss of homes, income, and emotional and physical needs. We must have our contributions so we can carry on our work to help women and girls in our community. We help the local women's shelter, girl scout's camp, sexual abuse rape victims, and the local children's hospital. We also give gifts for girl's who volunteer in our community and give scholarships to women rejoining the work force. Without the incentive to donate, our work will be overSoroptimist International of the Central Jersey Coast, Lakewood, New Jersey

Thursday, December 6, 2012

Insurance Solutions for Today's Nonprofits

ObamaCare: It’s the Law!
Written by: Fred Scaglione

There is a lot of detail we still don’t fully understand about the Affordable Care Act. One thing, however, is finally certain. After a lengthy struggle in Congress; a legal battle that went all the way to the Supreme Court; and a national election which revolved in large part around Republican threats to repeal the legislation on “day one” of a new administration, “ObamaCare” is now the law of the land. And, any reluctance or hesitation to begin moving towards compliance with its provisions is, or at least should be, a thing of the past.

The Affordable Care Act will have implications for almost every individual and all employers in the nation, both for-profit and not-for-profit. Up until now, these impacts have been relatively limited. But, over the coming six to nine months, New York State will begin taking important steps towards the next major set of deadlines that take effect on January 1, 2014. On that date, the law will begin to require certain employers to provide specified healthcare coverage to their employees, or face a series of penalties. And, all individuals will be required to have coverage, either through employer sponsored policies or through insurance that they purchase on their own. To guarantee that all individuals and small employers can purchase reasonably-priced health insurance, New York State will be establishing a “health insurance exchange” where coverage will be available to everyone, regardless of their medical histories. In addition, federal premium subsidies will be available to help cover the cost of health care for low- and moderate-income individuals and families. There are even “small business” tax credits that are available to help smaller employers meet the costs of complying with the law’s new mandates.

So, what will the Affordable Care Act mean for your nonprofit and its employees? That depends on a number of factors.

First and foremost is the determination as to whether you are a “small” or “large” employer – since “large” employers are subject to the employer mandate to provide health insurance coverage or face penalties.
The Affordable Care Act defines “large” employers as those who have 50 or more full-time – or full-time equivalent – employees. It is important to note that the ACA defines “full-time” employees as those working 30 hours per week or more. Consequently, it also calculates both full-time (FT) and full-time equivalents (FTEs) by taking the total number of hours worked by your employees and dividing by 30 (or 120 hours per month). As a result, your agency could have only 40 “full-time” employees who work 40 hours per week, another 20 employees who work 20 hours per week and still be considered a “large employer” because that translates into 66.7 FTEs.

As of January 1st, 2014, “large employers” are required to provide “full-time” employees with health insurance coverage that complies with the ACA guidelines. If they do not provide coverage – and have at least one full-time employee who receives a premium tax credit, through the newly formed Insurance Exchange, to help purchase coverage as an individual -- they will face penalties of $2,000 per full-time employee. (For reasons that seem unclear, an employer’s first 30 employees are excluded when calculating the penalty amount.) For those large employers who do provide coverage – but still have at least one full-time employee who receives a premium tax credit to help cover the costs of insurance purchased individually, the penalty is the lesser of $3,000 for each FT employee receiving a premium credit or $2,000 per full-time employee, again excluding the first 30 employees.

What does the ACA require in terms of employer-provided coverage? There are three key required components of care defined in the law that will affect nonprofits and other “large employers”.
First, generally speaking, these employers must offer coverage to eligible full-time employees that begins within 90 days of being hired. Those “very large” employers with 200 or more FTEs, must automatically enroll employees into health insurance plans – rather than ask employees if they wish to be enrolled – and then allow those who wish to opt-out an opportunity to do so.

Second, the employee share of health insurance premiums that an employer can require is being substantially limited. The maximum employee share of premium coverage for employer-sponsored individual coverage cannot exceed 9.5% of the employee’s gross income. In light of the historic trend towards increasing requirements for employee contributions, the relatively low salary levels which many nonprofits pay for direct care and other employees, and the rising cost of health insurance premiums in recent years, this mandate has the potential to significantly impact a broad range of nonprofit service providers. For example, under this provision, a “full-time” direct care staff member who works 35 hours per week at $10 per hour would have annual income of $18,200 per year or $1,516 per month. Based on this requirement, that staff member’s maximum contribution towards his health insurance premium would be approximately $144 per month. As a result, it is not inconceivable that an agency which had required employees to pay half the cost of their health insurance coverage would no longer be able to do so in these cases.

Third, the law mandates that all health insurance policies – including those provided by employers – meet certain coverage standards in terms of what costs of services are paid by the insurance and what the consumer’s out-of-pocket costs might be. Under the ACA, policies are required to have an actuarial value of 60%, meaning that a consumer’s out-of-pocket costs of healthcare would not exceed 40% of total medical expenses. Since New York State has traditionally required policies sold in the state to meet relatively high quality standards, it seems unlikely that this would have a significant impact on coverage currently being offered by nonprofit employers. However, recent trends towards low-cost but high-deductible policies might well run up against these limitations.

Many of New York State’s nonprofits are likely to fall below the ACA’s “large employer” threshold and, therefore, face no new mandate to provide health insurance coverage to their employees. However, the law still may offer a series of opportunities – and some interesting questions -- both for these “small employer” nonprofits and their employees.

New York State’s Health Insurance Exchange which is expected to be developed as early as October 1st, 2013 – and must by law be in place by January 1, 2014 – is designed to allow individuals without access to small group plans to purchase coverage at a cost which is considerably lower than current individual premium levels. In fact, it is estimated that individual coverage available through the exchanges may reduce premiums by between 60 and 70%.

Moreover, individuals purchasing insurance through these exchanges may be eligible for income-based premium tax credits that would limit their cost of coverage to as low as 2% of income for those with household incomes between 100% and 133% of the Federal Poverty Levels (FPL), and just 9.5% of income for those earning up to 400% of (FPL), or $92,201 for a family of four. For example, a single mother with two children who earns $25,390, or 133% of the current FPL for a family three, would receive premium credits covering health insurance costs above $42.32 per month.

Based on these lower costs and premium supports, many staff at nonprofits may feel that better insurance options are available through the exchanges. However, employees who are offered an employer sponsored plan that meets the maximum contribution criteria of 9.5% of gross income and provides the 60% coverage value outlined above are not eligible for exchanges or premium credits. As a result, it will be interesting to see whether some smaller nonprofits decide to terminate coverage benefits and urge their employees to seek insurance through the exchange/premium credit option.

New York State’s Health Insurance Exchange will also offer “small employers” with 50 or fewer full-time employees an opportunity to purchase insurance. However, due to New York’s current community-rating system, it is not anticipated that policies sold through the Exchange will be considerably less expensive than those currently available to small employers on the open market.

Another feature of the ACA, however, may help smaller employers – those with fewer than 25 full-time equivalent employees – to obtain tax credits to help offset the cost of health insurance benefits for their employers. The credits are available based on a sliding scale to nonprofits whose average salary level is less than $35,000, with the maximum benefit going to those whose average salary is $25,000 or less. While this sounds like it may be a significant benefit for many small nonprofits, it appears that relatively few organizations actually meet these average salary guidelines. Once again, this is driven in part by the calculations used to determine both your number of FTEs – in this case using 2,080 hours per year or 40 hours per week – and your total salary expenses. Based on these formulas, many organizations with staff who work a 35-hour week will see their number of FTEs fall below their actual number of full-time employees – and as a result, their calculated average salary rise above the levels which staff actually receive.

During the course of 2013, we will learn many additional details about how the Affordable Care Act will be implemented and how the State health insurance exchanges will operate. Nonprofits and the individuals who work in them need to begin thinking about what compliance with the law’s requirements will mean and how emerging details affect their plans.
Peter Andrew is President and CEO of Council Services Plus, the insurance brokerage subsidiary of the New York Council of Nonprofits

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.

Help Stop the Threats to Charitable Giving Incentives

Help Stop the Threats to Charitable Giving Incentives
Please Act Now



As Congress and the White House consider various proposals to avoid the impending fiscal cliff scenario of more than $600 billion in federal spending cuts and tax increases for 2013, some have set their sights on limiting the deductions for charitable gifts and possibly even the status of nonprofit organizations as an answer. In particular, we are deeply troubled by reports of proposals under consideration that would create an aggregate dollar limit or percentage cap for all itemized deductions as a potential short-term revenue solution during the lame duck session.

Over the past 18 months, Americans for the Arts has intensified its outreach to Congress on the detrimental impact that these policies would have on thousands of nonprofit organizations across the country and, more importantly, the communities and individuals that they serve. In addition to lobbying on this issue during our own Arts Advocacy Day conferences for the last few years, we are actively working with Independent Sector and its diverse network of nonprofit organizations, ranging from American Cancer Society and YMCA to Catholic Charities and The Nature Conservancy. Together, we have lobbied dozens of congressional offices, sent letters (including one today) to the president, and ran ads in major political newspapers, with another new ad coming out this month.


Because of the importance of this issue, a new Charitable Giving Coalition has also emerged, in which Americans for the Arts is a member. Today, December 5, hundreds of nonprofit groups will lobby together for “Protect Giving – DC Days.” Americans for the Arts will be leading one of these delegations. It doesn’t stop there. We need our grassroots advocates to participate as well.


YOU can ensure that your voice of support for the arts and the nonprofit sector is heard by your congressional delegation as they consider these issues in this lame duck session. Take two minutes to send a customizable message to your members of Congress.

Help us continue this important work by becoming an official member of the Arts Action Fund. If you are not already a member, you can play your part by joining the Arts Action Fund today -- it's free and easy to join.

Tuesday, December 4, 2012

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” 
  1. Built in formulas and linked spreadsheets
  1. Definitions & Glossary on types of budgets, frequently used budgeting terms & more
  1. Templates that your organization can utilize to customize for your own organization’s budget and salary and fringe expenditures.
  1. 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

Link to a recording of a recent webinar on these fiscal tools

Area branch quits Planned Parenthood

Area branch quits Planned Parenthood
Source: Daily Star
Author: Richard Whitby

The Planned Parenthood of south central New York has announced that it will be breaking away from its parent organization due to the new policy of having affiliates begin performing abortions in at least one location next year. The soon-to-be Family Planning of South Central New York will continue to provide the same services that they have continuously been providing. To read more about this article check out the link below.

click here for article

Tuesday, October 23, 2012

New Reports Shed Light on Payout Practices and Expense Patterns of U.S. Foundations

New York, NY — October 23, 2012. The Foundation Center, the nation's leading authority on philanthropy, has released new reports that examine the payout practices and spending patterns of more than 1,000 larger U.S. independent foundations. These reports provide an authoritative, unbiased source of knowledge to help the public and policymakers better understand foundation practice and to help foundations benchmark their own activities.

Understanding and Benchmarking Foundation Payout explains the concept of payout, which refers to the total amount that a foundation reports as its charitable distribution. (The law requires the vast majority of private U.S. grantmaking foundations to distribute at least 5 percent of their net investment assets for charitable purposes each year.) The report is the first of its kind to track payout practices of the largest U.S. foundations. It finds that during the period 2007-2009, the largest share of endowed foundations (46 percent) reported payout rates in the range of 5 to 5.9 percent, on average. Nearly one-in-five foundations had payout rates at or above 10 percent. The Foundation Center does not take sides on whether the minimum payout rate should be higher or lower — whether foundation assets should be spent down quickly or preserved long-term — rather it provides data and research to inform the debate.

"While the very top grantmakers tend to pay out close to the 5 percent minimum, there is surprising variation in payout levels of larger foundations overall, and annual rates are affected by drastic changes in the stock market," said Loren Renz, the author of the report and vice president emeritus for research at the Foundation Center. "Only by averaging these rates across multiple years can a balanced view of payout practices be realized."

The amount a foundation spends on staff, overhead, and other program-related administrative expenses is included in the calculation of its qualifying distributions each year. Benchmarking Foundation Administrative Expenses: Update on How Operating Characteristics Affect Spending considers how differences in foundations’ infrastructure, operations, and programmatic activities influence their spending patterns.

The report finds that whether a foundation employs paid staff is the single most important factor affecting its expense levels, followed by staff size. In addition, foundations that regularly engage in international grantmaking, foundation-administered programs, or making grants directly to individuals have expenses-to-qualifying distribution ratios that are roughly twice as high as those that do not.

Understanding and Benchmarking Foundation Payout and Benchmarking Foundation Administrative Expenses can be downloaded at no charge from the Gain Knowledge area of the Foundation Center's web site. To receive future updates on Foundation Center news, sign up here.

This research was made possible through support from the Charles Stewart Mott Foundation.

About the Foundation Center
Established in 1956, the Foundation Center is the leading source of information about philanthropy worldwide. Through data, analysis, and training, it connects people who want to change the world to the resources they need to succeed. The Center maintains the most comprehensive database on U.S. and, increasingly, global grantmakers and their grants — a robust, accessible knowledge bank for the sector. It also operates research, education, and training programs designed to advance knowledge of philanthropy at every level. Thousands of people visit the Center's web site each day and are served in its five regional library/learning centers and its network of more than 470 funding information centers located in public libraries, community foundations, and educational institutions nationwide and around the world. For more information, please visit foundationcenter.org or call (212) 620-4230.

**For more press releases CLICK HERE

Sunday, October 14, 2012

Vestal refuses tax exemption on new UHS clinic, case headed to court

United Health Services Hospitals Inc. and the Town of Vestal are likely headed for a showdown in court after officials refused to grant the nonprofit a tax exemption on an $8.48 million property assessment for its new hospital clinic and the land it sits on.
 
UHSH contends it can use its nonprofit status for a tax exemption on not just the 77,600-square-foot facility it built and owns at 4417 Vestal Parkway East, but also the land it leases from a private corporation.
 
The town, however, dismissed the request for the tax exemption in May, saying: “Your complaint has been dismissed because of your (or your representatives) willful neglect or refusal to attend this board’s hearings or to be examined concerning your complaint or to answer questions relevant to your complaint.”
 
If the exemption is granted, the town, Broome County and the Vestal Central School District stand to lose tax revenue from the property. Just how much remains to be seen.
 
The private corporation, FGR Vestal LLC, with principal members George and Ronald Akel, previously paid property taxes on the parcel.
 
In May, while construction of the new hospital clinic was still underway, the building, improvements on the land, and the land itself, were valued at $8.48 million based on the tax roll filed for the 2012-13 fiscal year.
 
Before the facility was built, the land was assessed at $2.42 million, and FGR paid the $36,702 tax bill on the parcel, reflecting the 2011-12 fiscal year. FGR also paid the $49,437 school tax bill to the Vestal school district for the same fiscal year.
 
UHSH, which is administered by parent organization United Health Services Inc., or UHS, said lost tax revenue would be offset by the new hospital clinic creating other economic benefits for the town.
 
Vestal Town Attorney David Berger did not return requests seeking comment. Town Supervisor John Schaffer and Town Assessor Mark Minoia declined to comment, citing potential litigation.
 
After town officials dismissed the tax exemption request, UHSH began pursuing a legal challenge in Broome County Supreme Court, according to court documents filed July 27.
“It is very concerning to us that the Town of Vestal is choosing to question our tax-exempt status, while scores of other not-for-profit agencies in the town also are tax-exempt,” Matthew Salanger, president and CEO of UHS, said in a statement.
“We expect that the new UHS Vestal, with its appealing design, range of services and central location, will attract many people from outside the area to Vestal, where they will purchase goods and services and contribute substantial dollars to the local economy,” he added.
With the 2012-13 fiscal year tax exemption dispute unresolved, UHS, on Oct. 2, paid the $180,255 school tax bill that is based upon the disputed $8.48 million property assessment.
The town and county tax rates for the 2012-13 fiscal year haven’t been finalized.
'A unique situation'
During initial interviews for this report, attorneys for UHSH said court proceedings have been adjourned until November while they negotiate with town officials to try to reach a settlement.
In follow-up interviews, attorneys said UHSH plans to leave it up to the courts to decide.
“Is the property partially exempt, wholly exempt or, as it currently stands, not exempt at all,” said Paul Sheppard, an attorney of the firm Hinman, Howard & Kattell, representing UHSH in the case.
“This is a unique situation in that (UHSH) possesses the building that is on the property,” said Jeffery Alexander, a vice president and general counsel for UHS.
He said this means the leased land becomes an “integral” part of the not-for-profit health care services and is thus warranted a tax exemption based on New York State tax laws.
 
Alexander was asked to provide examples of other lease agreements where the nonprofit owns a building, but leases the land it sits on.
 
“UHS has many tenant leases, but none parallel the Vestal situation,” he said, noting other legal precedents could not be found by the nonprofits’ outside legal counsel.
 
In March 2010, UHSH began a 25-year lease with FGR for the property where the hospital clinic was built for about $30 million, according to UHS. The lease permits UHSH to renew for another 50 years.
 

Tuesday, October 2, 2012

UPMC Among Nonprofits Eager to Avoid Paying Property Taxes

An interesting article about a major nonprofit (UPMC) who is making a rare move in order to avoid paying property taxes. Click on the link below to read this article and learn more about what types of deals other nonprofits are making.
 
 
View Article Here

2011 Member Mapping Report from National Council of Nonprofits

2011 Member Mapping Report from National Council of Nonprofits
A unique report that gives your State Association data and analyses that are relevant to every State Association board and staff member in the National Council of Nonprofits' network. 

The 2011 report addresses many frequently asked questions, including:

  • How are State Associations weathering the economy?
  • How do State Associations earn revenue other than through member dues?
  • Why are the numbers of people trained through our network trending down?
  • Why are there lots of new members in State Associations every year, but not a corresponding growth in the network?
VIEW REPORT HERE

Tuesday, September 4, 2012

Press Release from NYS Healthy Farms, Healthy People Meeting


New York State Healthy Farms, Healthy People Meeting, Tuesday, October 16, 2012


Full Press Release

The Rural Health Network of South Central New York is honored to be hosting the New York State Healthy Farms, Healthy People Meeting on October 16, 2012, in Binghamton, New York as the first day of the two-day Growing Health 2012 program.  Participants from throughout the state will register by region and spend the day considering four critical New York State Healthy Farms, Healthy People issues: 1. NYS Agricultural Capacity and Infrastructure; 2. Individual and Consumer Access to NYS Food Products; 3. Business and Institutional Access to NYS Food Products and; 4. NYS Food Coalitions, Networks, and Collaborations.

State and national farm, food, and health leaders will facilitate these four concurrent sessions throughout the day. Regional groups will participate in each of the four sessions. David Haight, New York State Director of the American Farmland Trust will provide a keynote presentation, and our lead facilitator for the day will be Mary McFadden, Supervising Public Health Educator, Broome County Health Department and Rural Health Network Board Member.

The New York State Healthy Farms, Healthy People Meeting will help those with little or no experience accessing NYS-produced food to do so efficiently and effectively. The meeting will also provide an opportunity for those with NYS food production and procurement experience to learn more about opportunities available to improve efficiency and effectiveness. Finally, the meeting will connect stakeholders within regions, to improve networks leading to increased efficiency in the procurement and use of NYS food products to improve health, food security, and local economies.

Regions will meet at the end of the day and then report out in a plenary session on one or two actions each region can take to increase utilization of NYS agricultural and food products to improve health.  Facilitators will also meet at the end of the day and report on policy recommendations that would help address barriers and increase opportunities to utilize more NYS agricultural and food products to improve health.  These policy recommendations will be shared with the NYS Department of Agriculture and Markets, New York State Department of Health, the United States Department of Agriculture, and other appropriate governmental and advocacy groups.

This meeting is a part of the Healthy Farms, Healthy People (HFHP) State Meetings Learning Community. The Centers for Disease Control and Prevention (CDC) has supported the learning community through its cooperative agreement with the National Network of Public Health Institutes (NNPHI). NNPHI has provided funding to selected state meetings and contracted with the Institute for Agriculture and Trade Policy (IATP) to provide technical assistance to meeting organizers. The views expressed during this meeting do not necessarily represent the views of NNPHI, IATP, CDC, or the Healthy Farms, Healthy People Coalition.

New York State Healthy Farms, Healthy People partners include: The Center for Agricultural Development and Entrepreneurship, The Food and Health Network of South Central New York, and The New York State Department of Health.

For more information about the NYS Healthy Farms, Healthy People Meeting, please go to: http://growinghealth.rhnscny.org/hfhp or call the Rural Health Network of South Central New York at (607) 692-7669.  Register on-line at: http://growinghealth.rhnscny.org/registration

Impacts of the Health Law for New Yorkers


Many of you have questions about health care reform in New York and what its implications are for both you and your clients. Here is an article that clearly explains some of the main questions people are asking. These answers come from James Knickman, a knowledgeable and reputable source, who is the President and Chief Executive Officer of the New York State Health Foundation (NYSHealth), a private, statewide foundation dedicated to improving the health of all New Yorkers.

Tuesday, August 28, 2012

How America Gives- Interactive Fundraising Tool


Check out this great new interactive tool that can help nonprofit directors get information about the giving patterns in every state, county, city and ZIP code in the United States. This is an exciting new tool that can help  you out with fundraising. 

How America Gives is a free resource that spotlights giving statistics across a variety of income levels and allows users to compare and share data about charitable contributions. You can access it here:http://philanthropy.com/givingmap 

You are also invited to check out our exclusive How America Gives special report, which includes rankings, analysis, and much more: http://philanthropy.com/americagives 

Wednesday, August 15, 2012

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
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:
  1. Be a CPA in good standing and a member of NYSSCPA.
  2. 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.
  3. 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.
  4. 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:
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...


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
or contact
Melissa Currado at (800) 515-5012 or
mcurrado@nycon.org



Co-sponsored by
The New York State Society of Certified Public Accountants
 
nysscpa