National Council of Nonprofits: Advocacy Matters

Getting Serious About Tax Reform Comprehensive tax reform remains on track despite the political scandal involving the Internal Revenue Service and the looming debt limit debate, according to the chairmen of the two tax-writing committees in Congress. Senator Max Baucus (D-MT), chair of the Senate Finance Committee, stated that he thinks the IRS “revelations are frankly helping to spur and help people realize the need for reform.” He has also suggested tax reform could be linked to raising the debt ceiling as a potential compromise to prevent a government shutdown. Representative Dave Camp (R-MI), chair of the House Ways and Means Committee, has indicated that Republicans hope to include a tax overhaul and possible changes to entitlement programs in a deal to raise the debt limit, which is likely to be negotiated in September or October. To keep momentum moving  forward on comprehensive reform, Baucus and Camp plan to make joint appearances across the country to promote a tax overhaul, as they also host several bipartisan, bicameral lunches for rank-and-file members. As part of the tax reform investigation, the Senate Finance Committee recently released a staff report on tax-exempt organizations and charitable giving that reviews current law and the many alternative proposals on the table. The report, the ninth in a series by Committee staff, presents reform options in four broad areas: the charitable deduction, the taxation of business activities of nonprofits, the political activities and lobbying of tax-exempt organizations, and a final catch-all category of broad tax-exempt issues. Notably, the paper sets aside the fundamental question of “whether any revenues raised by tax reform should be used to lower tax rates, reduce deficits, or some combination of the two.” Sequestration Spotlight Impact on Older and Younger Americans Sequestration – the arbitrary, across-the-board spending cuts enacted by Congress when it couldn’t reach agreement on a rational deficit reduction plan – is imposing measurable harm to programs serving older and younger Americans. Seventy percent of Meals on Wheels providers report being forced to reduce the number of meals served to elderly people as a result of sequestration, according to a nationwide survey conducted by the Meals on Wheels Association of America (MOWAA). Individual programs are cutting an average of 364 meals each week and waiting lists for meals have increased by an average of 58 seniors, according to the survey. Likewise, children across the country are losing access to early education. Sequestration cuts are pushing 70,000 children out of Head Start classrooms, 20 percent more than federal authorities originally anticipated. InMassachusetts alone, 1,359 fewer children will benefit from Head Start services compared to last year. The National Council of Nonprofits is collecting stories from nonprofits affected by sequestration and other cuts at www.GiveVoice.org to help nonprofit leaders relay to policymakers the human consequences of sequestration – consequences that could be felt for decades.  North Carolina Tax Debate Splits on Treatment of Nonprofits Nonprofit tax exemptions and charitable deductions are very much at the center of the debate over tax reform in North Carolina, with the House and Senate split over whether and by how much to undermine the ability of charitable nonprofits to succeed in serving local communities. The House-passed tax reform plan would cap all itemized deductions but expressly preserves the charitable giving incentive. The bill maintains current sales tax exemptions for all charitable nonprofits, including arts groups, but repeals the current tax credit for individuals who do not itemize deductions. The House bill is now in conference committee with a more severe Senate tax package that would cap the charitable giving incentive and limit sales tax exemptions for many nonprofits, while reducing individual income tax rates and phasing out corporate income taxes. The Senate bill would also eliminate the tax credit for non-itemizers, cap sales tax refunds beginning July 1, 2017 for nonprofits paying $100,000 or more in sales taxes, and require nonprofit arts groups to charge sales tax on admission fees, among other things. The North Carolina Center for Nonprofits has developed a comparative chart and other excellent resources for understanding the issues and taking action to oppose these harmful measures. Government-Nonprofit Contracting News Texas Governor Perry signed legislation creating the Texas Nonprofit Council, which will work with the Interagency Coordinating Group of state government agencies to strengthen collaboration between government and the nonprofit sector. The Texas Association of Nonprofit Organizations was a strong advocate for the legislation and will remain active in promoting efficiency and cost savings that benefit taxpayers, as well as nonprofits and the people they serve. The Iowa Nonprofit Collaborative has commissioned a study of government-nonprofit contracting practices in the state. The survey goes into detail looking at the effectiveness of RFP processes, performance measurement, payment for services, and other relevant issues. States Diverge on New Corporate Forms State legislatures in recent years have considered various proposals to change the rules governing for-profit enterprises to enable greater socially-focused activities. Last week, Nevada joined the list of states that recognize benefit corporations, a new for-profit corporate form that clarifies fiduciary responsibilities of board members to recognize that both social benefit and profits are appropriate concerns. In North Carolina, lawmakers reversed course on low-profit limited liability corporations (L3Cs), repealing legislation passed in 2010 allowing their formation; the legislation awaits the Governor’s signature. L3Cs are another recent form of for-profit entities with social interests that are allowed to seek funding from private foundations. Existing North Carolina L3Cs would be grandfathered in the legislation. New Disclosure Requirements for New York Social Welfare Groups New York Attorney General Eric Schneiderman approved newtransparency standards and regulations for the electioneering activity of 501(c)(4) social welfare groups. Under the rules that took effect on June 5, social welfare nonprofits are required to report their political spending and itemize their activities if the total exceeds $10,000 per year. Social welfare organizations active in elections with expenses of more than $10,000 are also required to list large donors who gave more than $1,000, ending the anonymous flow of money into political campaigns via these groups. Attorney General Schneiderman hopes New York will serve as a model for similar regulatory reforms elsewhere. Charitable nonprofits organized under Section 501(c)(3) are prohibited from engaging in election-related activities and are not affected by the new regulations. Additional Articles on National Council of Nonprofits Website Maine Rejects Bills to Trample Nonprofit Independence New Solicitation Requirements Enacted Baltimore City Nonprofits Call for Rain Fee Discounts Earning Respect, Even in Opposition An intense, grassroots campaign led by the Maine Association of Nonprofits inspired legislators to reject an amendment that would have imposed a two-year, two percent tax on nonprofits with $500,000 in assets and annual gross receipts of $200,000. However, the goal of the proposal to levy taxes on certain nonprofits remains intact and has been inserted in the state’sbiennial budget as a study. The measure would create a task force to review the feasibility of imposing taxes, fees, or payments in lieu of taxes (PILOTs) on certain nonprofit organizations, with the goal of generating approximately $100 million in revenue annually. A representative of the Maine Association of Nonprofits would be one of four stakeholders serving on the task force, demonstrating that standing up for mission and fellow nonprofits engenders respect from policymakers, regardless of their policy goals.  Federal Issues Tax Reform Sequestration State Issues Tax Reform: NC Government-Nonprofit Contracting: IA, TX New Corporate Forms: NV, NC Electioneering Disclosure: NY Nonprofit Independence: ME Solicitation Regulations: NV, OR Fees: MD Advocacy in Action ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦  Worth Reading Tax-Exempt Organizations and Charitable Giving, Senate Finance Committee Staff discussion paper, June 13, 2013. Federal Contracts and Grants for Nonprofits, Sarah L. Pettijohn, Urban Institute Center on Nonprofits and Philanthropy, May 2013, an issue brief explaining the variety of funding mechanisms used by the federal government to pay nonprofits to deliver services for the government. Legislative Review 2013, Pew Charitable Trusts State and Consumer Initiatives, June 14, 2013, a five-part series byStateline on legislative developments so far this year in the states, focusing on politics, health care, taxes and budgets, social issues, and economic development. “Nonprofits Seek Government Document Standardization,” theNonProfit Times, June 10, 2013, summarizing the findings of the National Council of Nonprofits report, Partnering for Impact: Government-Nonprofit Contracting Task Forces Produce Results for Taxpayers. Worth Quoting “New York is home to many of the most effective, innovative and influential charities in the world. The state's nonprofit sector generates close to $200 billion in economic activity each year. In this difficult economy, nonprofits create jobs; they employ more than one in six New York workers, from scientists to social workers.” New York Attorney General Eric Schneiderman, Crain’s New York Business, June 16, 2013, making the case for regulatory reform legislation. Nonprofit Event June 19-21,Conference on Volunteering and Service, Washington, DC Share this email with your nonprofit colleagues Did you receive this email from a friend? Sign up now to receive this free e-newsletter every otherMonday. © Copyright 2013 National Council of Nonprofits. All rights reserved  1200 New York Avenue, NW | Suite 700 | Washington, DC 20005 | www.councilofnonprofits.org

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Guest Viewpoint: Especially in hard times, nonprofits need our help

The Press & Sun-Bulletin featured a recent editorial.

There isn't much that is certain in life, aside from death and taxes, of course. We have all experienced, in any number of ways, the effects of rampant uncertainty and financial hardship. But through all of the turbulence, one thing has remained constant: We need our local nonprofits.

Every day, thousands of people in the Southern Tier rely on its stable of local charity and support groups to eat, sleep, care for their children, or come back from what often initially seems like insurmountable odds. Every time, the good will and caring heart of a volunteer or case worker reinforces the ability of so many to do so much in spite of what may lie ahead.

I may be in Raleigh, N.C., but my heart belongs to the Southern Tier, where the community certainly has faced its share of disaster. This year's flood was far beyond any reasonable comprehension. Down here in Raleigh, a tornado ripped through the area with a devastating blow the likes of which this fairly new North Carolinian had never seen. What shined above all else, though, was the overwhelming support of those in our community. The food banks, the disaster recovery groups, the unsolicited support of an otherwise unknown person or resource — all of these things encompassed the system that allowed us to rebuild.

None of this would have been possible were it not for the nonprofits we have in our respective communities. They are the unsung heroes amidst an often dreary façade of unceasing need and uncertainty. Now is the time that we should return the favor, not just as individuals, but as businesses.

Like all businesses, our success is predicated upon the success of our economy and its people. So it is only fitting that we fervently support our community through the multitude of opportunities for us to donate our time, talent and treasure. We follow the example of so many of our colleagues who do the same.

Large or small, local businesses provide the resources that nonprofits require to help those in need. It is a cycle that not only represents the right thing to do, but breeds an air of consciousness into the lungs of a business's employee base. Leadership comes from experience, and there's no experience quite like giving to others and advancing a good cause.

In that spirit, our organization, like many others, is rolling out an office initiative focused on philanthropy. We will be working as a team on local projects meant to further the causes we hold dear, whether it's volunteering at a soup kitchen or organizing a fundraising contest within our respective walls. No matter what we do, it will be because we aim to make our relatively small contribution as meaningful as possible.

Whether you're a business owner or simply a potential volunteer, join us by recommitting yourself to helping those among us who need it the most. For all kinds of good reasons, now is the time.

Fitzsimmons, born and raised in the Southern Tier, is the chief operating officer of The Sorin Group in Raleigh, N.C.

Boys & Girls Club gets funding boost

The Press & Sun-Bulletin reported that the Boys & Girls Club has received a $250,000 shot in the arm from U.S. Rep. Maurice D. Hinchey, D-Hurley.

"It's a giant help," said the club's Resource Development Director Jocelyn Terranova. "This definitely helps to bring us one step closer to rounding this project off."

Including the funds garnered by Hinchey, the club has about $3.7 million of the $4.7 million needed for construction of its new handicapped-accessible, 21,500-square-foot facility, she said. The non-profit is seeking the remaining $1 million needed for the 90 Clinton Street facility.
Construction of the building will be completed shortly, Terranova said, and it should be occupied by late September or early October. Read more here.

United Way gives $58K to 11 nonprofits

The Press & Sun-Bulletin reported that eleven nonprofit groups will receive a total $58,925 in grant money from the United Way of Broome County and the Helen T. Howland Foundation, United Way officials announced Wednesday.

The funds, from Venture and Special Assistance grants, will go toward projects that span early childhood care to service access for the elderly, said United Way Executive Director Alan Hertel.

"The projects that you provide represent what it means to live united," he told nonprofit representatives during a Wednesday morning press conference.

Read more here about the recipients.

Press & Sun Sponsors Writing Project to Raise Money For Victims' Families

Members of the Broome County arts community are seeking poems and personal essays/memoirs reflecting on the April 3 massacre at the American Civic Association. Submissions are welcome from all membersof the community for a collection to be titled "Binghamton Remembers."All proceeds from the collection, which will be available for purchase in June, will benefit the fund set up by Catholic Charities of Broome County to help the families of victims.

Final selections will be determined by Andrei Gurianu, Broome Countypoet laureate and editor of The Broome Review; collection editor Kristen Cox Roby; and other members of the Boome County arts community. The work is being sponsored by the Press & Sun-Bulletin. Creative pieces of no more than 1,000 words will be considered.Submissions must be sent via e-mail to binghamtonremembers@gmail.com. Please include your full name and phone number. The deadline is 5 p.m.April 26.

ACA director vows facility will reopen

The Press & Sun-Bulletin reported that the American Civic Association board members have decided "overwhelmingly" to reopen the building that nearly two weeks ago was the site of mass murder.

"Our return is not a question of if, but when," said the organization's executive director, Andrew Baranoski.

Thirteen people - 11 immigrants taking an English class, their teacher and a caseworker - were gunned down April 3 at the American Civic Association building at 131 Front St. The gunman, Jiverly A. Wong, 41, walked into the brick structure around 10:30 a.m., wounding four others and killing himself before police arrived.

The offices are closed to the public while repairs and modifications are made to the building, Baranoski said. Security upgrades will be among the changes considered, though details are still being discussed, he said.

The gunman sprayed 98 shots in the building's lobby and a classroom in just over one minute, according to police. At least one bullet hole in a front window is still visible from the outside.
There is no timeframe for the ACA to reopen. The organization hopes this week to select an alternative site to house client services until the building is ready to reopen. Read more here.

Nonprofit Support for Victims of Binghamton Tragedy

Nonprofits are offering a number of responses to the recent tragedy at the American Civic Association.

Catholic Charities
In response to the tragedy at the American Civic Association on April 3rd, Catholic Charities was asked to provide a safe haven for family members, friends and colleagues of those involved where they would have access to information from the police, food and counselors. Many of the people released from the Civic Association were later brought to Catholic Charities to be reunited with their families and friends.

Catholic Charities will be offering a hospitality center for persons who would like to connect with each other after Friday’s tragedy at the American Civic Association. We understand that teachers, students and others who have a relationship with the Civic Association may be seeking a place to share their thoughts and feelings and we would like to offer a place for comfort and support. Individuals seeking immediate counseling should continue to contact the hotline at 778-3911.The Hospitality Center at 232 Main Street in Binghamton will be open on Monday, April 6th & Tuesday, April 7th from 9 a.m. to 4 p.m. Appointments are not necessary. Please call 607-729-9166 for additional information.

Catholic Charities also has set up a special fund for the victims. Visit the website for information.

American Red Cross
The American Red Cross has set up a 24 hour hotline for the families as well as the community. The number is: 607-778-3911. The Family Crisis Assistance Center has been moved to the Holiday Inn-Arena on Hawley Street in downtown Binghamton.