Nonprofit Advocacy Matters | January 27, 2014

Proposed Electioneering Rules for 501(c)(4) Social Welfare Groups Under Attack The Chairman of the House Ways and Means Committee is leading an effort to the block implementation of proposed regulations from the Treasury Department that would redefine what constitutes electioneering activities of 501(c)(4) social welfare organizations under the Internal Revenue Code.Legislation by Chairman Dave Camp (R-MI) would prohibit the modification of the rules for one year, thus freezing in place the standards and definitions for determining whether a 501(c)(4) organization crosses the line from promoting social welfare to engaging in too much partisan electioneering. The legislation adds Camp’s name to the list of individuals and groups that oppose draft regulations released in November that would restrict the types of political activities that 501(c)(4) social welfare organizations could engage in without running the risk of losing their tax-exempt status.Conservative and progressive groups alike are panning the proposed regulations. Readers are encouraged to read the proposed regulations and tosubmit comments (to IRS REG-134417-13) byFebruary 27, 2014. Strong, Bi-Partisan Support Expressed in Senate for Charitable Giving Incentive A third of the US Senate has taken a public position insupport of the charitable giving incentive in federal tax law in a letter delivered last week to Senate tax committee leaders. Senators Ron Wyden (D-OR), who is expected to be the next Chairman of the Senate Finance Committee, and John Thune (R-SD), who also serves on the Committee, wrote the letter and called on their colleagues to sign on. The message in support of the work of charitable nonprofits in communities is clear: “The charitable deduction is unique. It is the only provision that encourages taxpayers to give away a portion of their income for the benefit of others. For this reason, it is not a loophole, but a lifeline for millions of Americans in need.” Thirty-three Senators from more than half the states signed the Wyden-Thune letter: Alaska (Murkowski); Arkansas (Boozman), California (Boxer); Colorado (Udall); Florida (Nelson); Hawai`i (Hirono, Schatz); Idaho (Risch); Illinois (Kirk); Indiana (Coats); Kansas (Roberts, Moran); Louisiana (Vitter); Maine (Collins); Maryland (Mikulski); Massachusetts (Markey); Michigan (Levin, Stabenow); Minnesota (Klobuchar); Mississippi (Cochran, Wicker); Missouri (Blunt); Nebraska (Heller); New Hampshire (Shaheen); New York (Schuster, Gillibrand); North Dakota (Hoeven, Heitkamp); Oklahoma (Inhofe); Oregon (Wyden); South Carolina (Scott); South Dakota (Thune, Johnson). The State of the States As the Governors See It Governors across the country are announcing their plans and priorities this month as their legislatures convene for the 2014 session. Here are recurring themes and trends of interest to nonprofits: “Comeback State”: Many Governors used their State of the State address to define 2014 as a “comeback” year of recovery from the Great Recession. But as the Washington Post reports, “in many cases, the ‘comebacks’ will manifest as an absence of further cuts, rather than a return to pre-recession spending levels. Thirty states are collecting less revenue than they did before the recession hit.” Tax Reform: A handful of Governors are hoping positive signs in their states’ economic outlooks will make tax cuts possible in 2014. Citing a more comfortable economic outlook than in years past, the Nebraska Governor proposed $500 million in tax relief, particularly in property taxes. Similarly, the Governor in Wisconsin proposed cutting property and income taxes for the third time in less than a year. Governors in New Jersey andIowa also spoke in favor of property tax relief. Conversely, Rhode Island’s Governor wants to keep tax rates the same and increase overall spending levels. Social Services: Some governors spoke of the need to reinvest in programs that suffered secere cuts during the recession. The CaliforniaGovernor remarked on the significant economic growth the state has experienced and recommended a $154.9 billion spending plan that would increase funding for social services and schools. The Governor of Michigan also touted the state’s improving economy and promised to increase funding for Great Start early childhood education and Meals on Wheels, programs which support the work of many nonprofits in communities. Education: Governors from many states made new investments in education a top priority in their State of the State addresses. Several pledged support for early education: the Governor of New York announced proposals for full funding of a statewide pre-kindergarten; the KansasGovernor proposed full funding for all-day kindergarten while simultaneously fighting a state court case that mandates additional education funding; and Missouri’s Governor proposed tripling pre-school funding. In higher education, Governors in Missouri, Rhode Island, and Iowarecommended freezing tuition rates at public institutions. Similarly, the Arizona Governor wants to stabilize university tuition rates, and is pushing again for a controversial program that would tie base funding for public schools to performance measures. Governors in Alabama, Washington, and Georgia are calling for raising teacher salaries. Maine Nonprofits Call for Return of Full Charitable Giving Incentive The Maine nonprofit community came out in full force at a public hearing last week in support of a bill that would exempt charitable deductions from the $27,500 cap on itemized deductions enacted late in the session last year. If enacted, the new legislation would be retroactive to January 1, 2013. The Maine Association of Nonprofits (MANP) estimates that application of the cap to charitable giving will result in reduced donations by at least $20 million per year, a conservative estimate according to many of the speakers at the hearing. To learn more about efforts to protect Maine’s charitable giving incentive, see the nonprofit sign-on letter with 83 nonprofit signatories and testimony ofMANP and the National Council of Nonprofits. Taxes, Fees, and PILOTs Taxes: To lower the tax rate for for-profit businesses, proposed legislation in New Hampshire seeks to apply the state’s business enterprise tax base to larger nonprofits. The proposal, which targets mostly nonprofit hospitals and colleges, would extend the tax to nonprofits that accept fees for services and collect more than $2 million in annual revenues. Mary Ellen Jackson, Executive Director of the New Hampshire Center for Nonprofits, has expressed opposition to the bill because it ignores nonprofits’ contributions to society and the “long-held” agreement between government and nonprofits. Tax Exemptions: A Nebraska State Senator introduced a bill to eliminate property tax exemptions for religious organizations, arguing that churches should pay property taxes and that the legislation would increase state revenue. Religious nonprofits have opposed the legislation, saying it ignores the important contributions of churches to their communities. PILOTs: Wisconsin policymakers are considering legislation that would require municipalities that negotiate payments in lieu of taxes (PILOTs) from nonprofits to share the revenues with “overlying” taxing bodies, such as school districts and state and county governments. Municipalities oppose the legislation and believe it infringes on local authority. “[The other taxing bodies] are not coming here and cleaning our streets, removing snow ... why should they get a piece of the revenue?,” one City Administrator asked.  Government-Nonprofit Contracting News New Mexico Withholds Contract Payments to Nonprofit Mental Health Providers New Mexico is withholding payments to fifteen mental health services providers and has transferred their caseloads to Arizona providers based on allegations of fraud that state officials have not substantiated to the public. The accusations of fraud are reportedly based on findings by a private consulting firm which also manages the New Mexico Health Care Exchange; state officials have so far refused to make the audit findings public. The State Attorney General’s Office, which is investigating the findings, found no fraud in its first review of one of the organizations and cleared it to reopen. Unfortunately, that nonprofit has already gone out of business because of the state’s actions and is still owed $400,000 for services it provided under contracts with the state. The situation raises serious questions about the need for government to follow the same transparency expectations it has for nonprofits and to exercise due process for nonprofits contracting with governments to provide services. State legislators reportedly are considering how to protect service providers from unfair attacks.  Additional State and Local Issues How Do You Measure That?: Questioning Business Tax Breaks Florida Considers Increasing Charity Oversight Mandating Volunteerism for Public Benefits Recipients Proposed in Alabama States Reform Gaming Laws Directing Proceeds to Charities Putting Policy In Nonprofit Perspective State of the State addresses give Governors the opportunity to tick off the things they have done and offer a to-do list for their legislators to act on. (See related article, above.) Donna Murray-Brown, President and CEO of the Michigan Nonprofit Association, took the opportunity of the Michigan Governor’s recent address to provide insights to nonprofits in the Wolverine State and hand out a few to-do items as well. First, Donna offered perspective on which all nonprofits should agree: “No matter your political persuasion, and whether you agree or disagree with the progress Michigan has made over the last few years, one thing is certain: all sectors must all work together to realize the hopes and dreams we have for the residents of Michigan.” Reflecting on the significant economic impact provided by the nonprofit community, she observed, “It is becoming clearer and clearer that real progress is inextricably connected with the work nonprofits do every day to meet the needs of the community.” Murray-Brown moved past the statement of fact and provided a call to action: “We must enhance our narrative of our work beyond ‘it’s the right thing to do,’ to ‘our work is imperative to creating a thriving state, and we too have proven results!’” Donna provides six to-do items that all nonprofits, in Michigan and beyond, can take to heart to improve our public policies, our own performance, and our communities. These include continuing to collaborate; leveraging technology as a strategy for mission attainment; recognizing that diversity, inclusion, and equity are key principles to meeting mission; and nonprofits must hone their public policy and advocacy skills to block threats to our work. We are inspired by the optimism of this nonprofit leader in one of our nation's most economically challenged states. As advocates for your mission, we hope that all readers can say the same thing about their work as Donna Murray-Brown did in her conclusion: “These are exciting times in the state of Michigan. It will require much to accomplish the goals we set for ourselves, yet we can and will succeed. We are truly the change we have been looking for! Now, let’s get to work!” © Copyright 2014 National Council of Nonprofits. All rights reserved  1200 New York Avenue, NW | Suite 700 | Washington, DC 20005 |www.councilofnonprofits.org

Nonprofit Revitalization Act Webinars Announced

Complying with the Nonprofit Revitalization Act:  A Practical Webinar Series for New York Nonprofits Presented by David Watson, Esq, Sr. VP of Legal Accountability Services, NYCON and Michael West, Esq., Legal Advisor, NYCON  Various Dates: February 2014 - June 2014  The Nonprofit Revitalization Act is a landmark change in the Not-for-Profit Corporation Law of the State of New York that will usher in a modern era for the operation and governance of nonprofit corporations starting on July 1, 2014. Here at the New York Council of Nonprofits, Inc. (NYCON) we eagerly anticipated the updated statutes and have prepared two practical webinars (to be repeated from February through June) designed to help address your immediate needs in complying with the new law. We will cover the updating of your bylaws, governance issues, materials and more. We encourage all Members to take advantage of these free webinars. Part 1: New  York Nonprofit Revitalization Act Part- Steps To Compliance - An Overview   This session will provide you with a comprehensive overview of the Act as well as a plenary Q/A portion. Webinar to be held in February, April & June - and will be updated accordingly if there are any changes to the law.  This session will provide you with a practical set of actions to take to amend your bylaws to meet the new standards of the Act. Dates: February 27th, April 24th, June 26th  Cost: FREE for current NYCON Nonprofit Members; $79 for Non-Members  Register       Part 2: New York Nonprofit Revitalization Act: Implementing Your Compliance Checklist - Whistleblower, Conflict of Interest, Committees & Executive Compensation: To be held in March and May, this webinar will be more detailed and will focus on the various topics included in the Act that are new and have implications on compliance and board governance in general and your operations specifically. Dates: March 25th and May 20th   Cost: FREE for current NYCON Nonprofit Members; $79 for Non-Members   Register ________________________________________________________________ What You Can Expect:   Participants for "live" webinars on date(s) selected are provided with the opportunity to get specific questions addressed by legal experts quickly. All webinar attendees will have access to a recording of the event and the webinar slides.  All webinar attendees will have access to a comprehensive overview of the Act, compiled by NYCON's expert staff. A recording of the webinar will be made available to NYCON Members for six months. Additional Documents, Tools & Phone Assistance Available to Members as follows:     Documents & Templates to assist your organization with the compliance process, produced by the NYCON Legal Department, will be available to members for $79. Documents, Tools & Templates plus additional assistance via phone to help with implementation can be purchased by members for $259 (includes two hours of phone assistance.) Direct technical assistance above and beyond this can be provided to members at our normal legal fee-for-service rate. Please contact us with any questions you have about the webinars or the Nonprofit Revitalizaton Act.

SCNY ED Group: Affordable Care Act Overview for Your Nonprofit and City Council Presentation

SCNY ED Group: Affordable Care Act for Nonprofits What's Next for Groups with Less than 50 Employees? Tuesday, December 17, 2013 from 9:00 AM to 10:30 AM Cub Care Children's Center Recess Resource, Inc. 201 Main Street Vestal, NY 13850  Presented by Peter Andrew, CEO, Council Services Plus (Subsidiary of the New York Council of Nonprofits) December 17, 2013  9:00am to 10:30pm The Affordable Care Act certainly has most of us scratching our heads. Staggered implementation dates, last minute delays, multi-page IRS, DOL & HHS guidance documents and the creation of new (and hopefully affordable) small group and individual options has us all searching our "radio dials" for WIIFM (What's In It For Me).  The Lawyers and Policy Wonks have inundated us with large group mandate guidance, but most Nonprofits are small and it's time for someone to tell them what this all means for the nonprofit who employs less than 50 employees and does not have the same mandates or expectations as your larger counterparts. This Program will explore the options that will be available beginning onJanuary 1, 2014 to small groups. Participants will get up to date on the current status of the New York Health Exchange and how to compare those options with what is currently in place (or available at renewal). In addition, we'll touch on the notices your employees may need to receive about the new exchange and how an employee may compare your offering(s) to what is available to them through the new individual exchange. The rates are out so you'll be able to use real numbers to see what this means to your nonprofit's budget and your staff. Join us for this important, timely and free program. We are sure there will be many questions asked and lively discussion with your nonprofit peers! REGISTER NOW   Recap from Binghamton City Council Presentation on Behalf of the SCNY ED Group Deborah Fitzgerald, Executive Director of Cub Care Children's Center, was recently invited to speak to the City Council on the 2nd.  She presented the following powerpoint and handout.  During her presentation, she also addressed the PILOT concerns and potential impact on local nonprofits.    Materials: Presentation Handout

CCPA SEMINAR: (Binghamton) Building a Sustainable Nonprofit Organization

Binghamton University’s College of Community & Public Affairs

67 Washington Street, Binghamton

Building a Sustainable Nonprofit Organization – David Campbell, PhD

Thursday, December 12, 2013 – 9:00am - 12:00 pm                      

                                   

How confident are you in your organization's long-term sustainability?  What steps can you take today to make sure your organization can advance its mission long into the future?  The goal of this workshop is to introduce you to a model of nonprofit sustainability planning that you can use in your organization.  The model is based on the book Nonprofit Sustainability: Making Strategic Decisions for Financial Viability. The model defines sustainability as a combination of both the impact of an organization's activities ("business lines") and the financial performance of each of those activities. The model enables users to develop a simple "matrix map" that displays the financial and program performance of an organization's activities.  The map provides the basis for sustainability planning.  The workshop will provide hands-on opportunities for participants to apply aspects of the model to their organizations (such as the identification of business lines and impact criteria). The workshop is $65/person and includes morning refreshments. To register go to:http://www.surveymonkey.com/s/CCPASeminarsF2013. Contact Joann Lindstrom at 777-9178 with questions.

Nonprofit Advocacy Matters | December 2, 2013

Treasury, IRS Propose Major Shift in Electioneering Rules for Non-Charitable Nonprofits The Treasury Department and Internal Revenue Service issued proposed regulations last week that would restrict the types of political activities that 501(c)(4) social welfare organizations could engage in without running the risk of losing their tax-exempt status, but stopped short of providing a clear percentage or “bright line” for determining how much political activity would be considered too much. The proposed rules would create a new term, “candidate-related political activity,” that is drawn from federal election campaign laws to distinguish what activities will not be considered related to promoting social welfare. In addition to retaining current restrictions on election-related activities (e.g., prohibition on direct contributions to candidates), the proposed definition of “candidate-related political activity” would include running ads that name candidates shortly before elections. The rules would also apply to a broader array of offices beyond elective offices under current rules to also include activities in support or opposition of the appointment or confirmation of executive branch officials and judicial nominees. Also falling under the definition would be partisan and nonpartisan activities such as voter registration drives, get-out-the-vote efforts, candidate forums, and voter guides. The proposal asks for public comments on what types of activities should be exempted from this blanket inclusion of measures many organizations consider essential to their missions of promoting civic engagement and democracy.   On the controversial question of how much “candidate-related political activity” is too much, Treasury and the IRS toss that hot potato to the public which is asked to weigh in with comments on what is an acceptable level (beyond the current vague regulatory standard of engaging “primarily” in social welfare activities) and how to measure those activities. The public is also asked to opine on whether rules similar to the proposed rules should be applied to 501(c)(3) charitable nonprofits, 501(c)(5) labor unions, and 501(c)(6) chambers of commerce and trade associations. Comments should be submitted to the Internal Revenue Service by February 27, 2014. Budget Negotiators Aiming Low, May Hit the Target A grand budget bargain, it’s not, but budget negotiators working on a deal to keep the government operating into the New Year reportedly are close to reaching an agreement on two important issues: (1) setting overall spending levels for the rest of the current and 2015 fiscal years, and (2) curbing some of the second wave of arbitrary sequestration cuts that otherwise go into effect on January 15, 2014. To date, the House and Senate have been nearly $90 billion apart on how much to spend this fiscal year that started in October. Negotiations have been stuck in the same partisan positions from the past three years – raising taxes versus cutting spending in entitlement or mandatory programs. The leaders of the budget negotiations, Senator Patty Murray (D-WA) and Representative Paul Ryan (R-WI), reportedly are seeking to reduce the additional automatic and arbitrary sequestration cuts by coming up with a combination of non-tax revenue gains, including user fees and sale of wireless spectrum, and modest cuts in mandatory spending in such areas as federal employee retirement plans. The legislation that funded federal programs after the government shutdown gave the budget conference committee untilDecember 13 to strike a deal. That legislation, known as a Continuing Resolution, expires on January 15 and another federal government shutdown is possible unless the House, Senate, and President can agree on a spending plan. Influential Senators Make Bi-Partisan Call for Support of Charitable Giving Incentive The charitable giving incentive should be protected during the rewrite of the federal tax code, according to a letter to leaders of the Senate Finance Committeesigned by Senators Ron Wyden (D-OR) and John Thune (R-SD). “It is the only provision that encourages taxpayers to give away a portion of their income for the benefit of others,” the Senators wrote, stressing, ”For this reason, it is not a loophole, but a lifeline for millions of Americans in need.” The letter is significant both because of what it says, and because of the influence that the writers wield in the Senate. Senator Wyden is scheduled to become the top Democratic tax writer in 2015 upon the retirement of current Finance Committee Chairman Max Baucus (D-MT). Wyden is a long-standing supporter of tax incentives for giving, including retaining the charitable deduction in a bi-partisancomprehensive tax overhaul bill he sponsored with Senator Dan Coats (R-IN). Senator Thune serves as Chairman of the Senate Republican Conference, the number three position in Senate Republican leadership, and has been a consistent critic of efforts to curb or eliminate charitable giving incentives. Both Senators Wyden and Thune are members of the Senate Finance Committee. Additional Federal Issues Nonprofit Electronic Filing of Tax Returns Proposed Religious Tax, Reporting Exemptions Challenged in Courts States Can’t Show Job Growth from Tax Incentives Given to Businesses Half of states lack the ability to measure the outcomes of the incentives they hand out to for-profit companies in the name of creating new jobs, and only a quarter have workable measures, according to a study from the Pew Center on the States. Every state has at least one jobs tax incentive, according to the report, “but no state regularly and rigorously tests whether those investments are working and ensures lawmakers consider this information when deciding whether to use them, how much to spend, and who should get them.” News reports appear to confirm the Pew findings and suggest further that incentives to for-profit businesses may not be effective. For example, Georgia has given $106 million in tax breaks to companies that failed to deliver 42 percent of the jobs they promised.Tennessee’s Jobs Tax Credits programs are being criticized after an audit last month revealed that state officials were unable to prove many of the businesses receiving credits had produced the required number of jobs or capital investments. The Illinois Governor’s $527 million worth of tax breaks are also under fire: "Politicians love these types of programs because they can point to the jobs they created," one economics professor warns. "But the problem is it's hard to measure the jobs lost through higher taxes paid by other businesses that pay for these programs." After a drawn-out jobs incentive race with neighboring Kansas, the Governor of Missouri has called for a moratorium on certain business incentives that he says have moved jobs around the state rather than creating new ones. Government-Nonprofit Contracting Updates Kansas Shifts Human Service Delivery from Nonprofits to For-Profit Companies Kansas will become the first state to shift responsibility for delivery of services to developmentally disabled people away from the current network of community-based nonprofits to for-profit companies based out of state. As a result of the change, three insurance companies will be making final decisions about who is eligible for care and which services are appropriate and reimbursable. Currently, community-based nonprofits and county agencies have that responsibility. Families and advocates reportedly are worried that the insurance companies lack experience in managing statewide programs of this complexity and may make decisions based on profit motives rather than on the wellbeing of disabled individuals. The switch from government and nonprofit oversight to for-profit management is under consideration in Louisiana and New Hampshire. Late Payments, Management Problems Cost Pennsylvania Taxpayers $7 million Lax management, unfair bidding practices, and late payments to contracted home care providers cost Pennsylvania taxpayers $7 million, according to a new report from the Commonwealth’s Auditor General. The identified problems stemmed from a new contract between the Department of Public Welfare and a financial service provider that the Auditor General found was awarded based on preferential treatment. During the transition to the new provider, contracted home care workers did not receive payments for up to four months. These contract payments, which amount to the home care worker’s paychecks, cover medical services allowing elderly and those with disabilities to remain in their own homes. The lack of payments resulted in 1,600 patients obtaining services elsewhere, at a higher cost, when their home care providers were forced to leave their jobs.   Incoming Pittsburgh Mayor Opts for Confrontation, Collaboration - Simultaneously The Mayor-Elect of Pittsburgh is pushing for changes that could have both negative and positive effects on local nonprofits. Even before being sworn in as Pittsburgh’s new Mayor, Bill Peduto is calling for an aggressive approach to extracting payments in lieu of taxes (PILOTs) from larger nonprofits by replacing the City’s annual agreements with the Pittsburgh Public Service Fund (PPSF) for millions of dollars with a longer-term agreement that would demand even more money. At the same time, he reportedly is creating anonprofit liaison office focused on working collaboratively with local nonprofits to improve the work being done in low-income communities. "We need to be able to create a city government that enables you to carry out your mission," the Mayor said to an annual convening of area nonprofits. Additional State and Local Issues Report Reveals Corporate Spying on Nonprofits Reality-Driven Policy Priorities In Montana and elsewhere, it has proved difficult this year to gauge the effects on charitable nonprofits of congressional actions and inactions on such issues as the federal government shutdown, the fiscal cliff, arbitrary sequestration cuts, and the Affordable Care Act, to name only a few. In October, the Montana Nonprofit Association (MNA) asked charitable nonprofits “How are you faring?” Seventy organizations responded, and the results will be used to inform and motivate the State Association’s policy and advocacy work on the largest federal policy issues affecting nonprofits. Here’s what MNA learned from survey participants: More than two-fifths of nonprofit survey respondents say they were directly affected by the federal government shutdown. More than twenty percent of respondents said the services they provide were affected. More than 40 percent of respondents also said they were directly affected by sequestration, the arbitrary, across-the-board federal spending cuts that started going into effect in March. Only 56 percent of nonprofits say they understand and are prepared for the implementation of the Affordable Care Act. MNA also received compelling, real-world stories from nonprofits. Here is one example:   “After having two years of primarily flat funding, sequestration reduced our funding levels by 5.27%. It was a major hit to our budget. The bills continue to come in and the cost of business continues to increase at a rate not adequately addressed by our funding. The needs in the community by low-income families continues to increase and demand for services is ongoing.”   MNA plans to continue offering surveys in the coming year so that it can develop and pursue public policy priorities based on its members’ experiences in the ever-changing operating environment in which nonprofits work.

© Copyright 2013 National Council of Nonprofits. All rights reserved  1200 New York Avenue, NW | Suite 700 | Washington, DC 20005 |www.councilofnonprofits.org

Data Spurs Emergence of a "Digital Civil Society"

FOR IMMEDIATE RELEASE CONTACT:
Cheryl Loe Communications Project Manager The Foundation Center (888) 356-0354 ext. 701 communications@ foundationcenter.org	Jon Warne Communications Officer European Foundation Centre +32 2 512 8938 jwarne@efc.be
Data Spurs Emergence of a "Digital Civil Society" New Edition of Annual Blueprint Forecast Offers Insights, Predictions for Philanthropy New York, NY — December 4, 2013. Released today,Philanthropy and the Social Economy: Blueprint 2014 is the much anticipated annual forecast for the industry of philanthropy. Written by leading scholar Lucy Bernholz, the latest edition — which considers the European context for the first time in addition to the American landscape — explains the shifts that come as civil society is manifested in digital environments, including opportunities to establish a new standard of trust regarding how private data are used for public benefit. As data become more and more a part of our everyday lives, ethical challenges facing philanthropic enterprises of all types emerge. "Now, more than ever, we need new frameworks to understand and shape philanthropy for the 21st century," said Lucy Bernholz, visiting scholar at Stanford University's Center on Philanthropy and Civil Society and author of Blueprint 2014. "I'm hopeful theBlueprint can further regional and global conversations about how philanthropy — in all its various forms — can best evolve to meet society's needs in this rapidly changing world." The Blueprint is published by GrantCraft, a joint service of the New York-based Foundation Center and Brussels-based European Foundation Centre that taps the practical wisdom of funders to develop resources for the philanthropy sector. In addition to philanthropists, the Blueprint is a strategic resource for anyone using private resources for public benefit, including social business leaders, nonprofit and association executives, individual activists, and policymakers. In this year's report, Bernholz presents her observations of European philanthropy, discusses how digital civil society can potentially change the root structures of the social economy, makes predictions for 2014 (and revisits those she made for 2013), and considers the reach of the "civic technology" efforts of governments and technologists to engage citizens. "As changemakers strive to make the world a better place, Lucy Bernholz has their backs by looking ahead," said Bradford K. Smith, president of the Foundation Center. "Everyone in the social sector can benefit from Lucy's perceptive observations and insights on where we are now, where we are headed, and most importantly, where we should be headed." A highlight of each year's Blueprint is a list of emerging philanthropy-related buzzwords ("privacy" ranks number one this time around). The Blueprint also lists wildcard world events — unanticipated legislation, scandals, or disasters — that have the potential to mitigate or accelerate the timing of big shifts in the social economy. One of Bernholz's predictions for 2014 is that a major crowdfunding scandal will draw scrupulous attention to online fundraising platforms. In her career as a consultant, writer, and blogger, Bernholz has established herself as an incisive authority in the complex arena of data and philanthropy. The Huffington Post calls Bernholz a "philanthropy game changer," Fast Company magazine named her Philanthropy2173 blog "Best in Class," and she has been named toThe Nonprofit Times' annual list of 50 most influential people. Throughout 2014, Bernholz will continue to investigate and cultivate conversations around the ideas in Blueprint at theGrantCraft blog and on Philanthropy2173. Philanthropy and the Social Economy: Blueprint 2014 can be downloaded for free at www.grantcraft.org/blueprint2014 and discussed online using #blueprint14. 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 at more than 470 Funding Information Network locations nationwide and around the world. For more information, please visitfoundationcenter.org or call (212) 620-4230. About the European Foundation Centre The European Foundation Centre, founded in 1989, is an international membership association representing public-benefit foundations and corporate funders active in philanthropy in Europe, and beyond. The Centre develops and pursues activities in line with its four key objectives: creating an enabling legal and fiscal environment; documenting the foundation landscape; building the capacity of foundation professionals; and promoting collaboration, both among foundations and between foundations and other actors. Emphasising transparency and best practice, all members sign up to and uphold the European Foundation Centre Principles of Good Practice. For more information, please visit www.efc.be. View Press Releases The Foundation Center • 79 Fifth Avenue, New York, NY 10003 •(212) 620-4230

Rock n' Roll n' Risk Management -RISK eNews

Rock n’ Roll n’ Risk Management

By Melanie Lockwood Herman and Alexandra Ricketts

A friend of the Center, who happens to be an accomplished sound engineer, forwarded a terrific article to us this week about how the best rock n’ roll roadies can do things many music fans might believe are impossible. Why? Well, one reason seems to be that roadies and members of production crews are motivated to do the impossible because the show must always go on.

Why Roadies Are Our Best Bet For Typhoon Haiyan Relief In The Philippines, by Ruth Blatt, published at www.forbes.com, features an interview with Charlie Hernandez, a former roadie and production manager for The Police. Blatt, who writes about “the intersection of rock n’ roll and business,” describes how roadies and the rock concerts they support “descend upon a site and then quickly disappear. Along the way, they face technical complexity, divergent regulations, multiple vendors, language barriers, and the certainty of unforeseen obstacles.”

As we read about how touring professionals came together to provide relief in Haiti and Pakistan after the disasters in those countries in 2010, we couldn’t help but see that the talents of roadies offer valuable lessons for nonprofit leaders charged with ensuring that their missions go on.

Risk Tips from the Road

·         Ask for Help and Be Eager to Help — In addition to “somebody to love,” every nonprofit leader needs lots of somebodies to help sustain a charitable mission. The article explains that despite the demands of the work and lifestyle, many roadies and production managers spend their free time helping others. As a result, the best in the business have bigger contact lists in their cell phones than professional match makers. According to our sound engineer friend, keeping a mental note of the skills and interests of people you meet on the road, and saving contact details, are essential to getting the help you need when you need it.

·         Close the Loop — Roadies don’t call it a day until every piece of equipment is packed up and on the truck or headed to the airport. The ability to follow-through until the job is completely done is essential to making sure the band is ready for the next stop on the tour. The commitment to closing the loop is applicable in risk management as well. Whether it’s conducting an in-depth review of the nonprofit’s policies and the actions taken by staff after an accident or near-miss, or taking the time to tell a vendor the reasons you’ve decided to change providers, closing the loop is fundamental to preserving trust in key relationships, learning from experience, and inspiring confidence in your mission and team.

·         Inspire Loyalty — Blatt’s article explains that “fierce camaraderie” is a must in the tough business of rock n’ roll. That means you’re unlikely to hear about a roadie throwing a fellow roadie under the tour bus, literally or figuratively! Many nonprofit leaders have learned the hard way that you need to earn, rather than insist, on loyalty. True loyalty exists in nonprofits where staff members believe that executives bring integrity to the job each and every day. In the world of risk management, lukewarm loyalty is a downside risk waiting to materialize. When staff are disloyal or disillusioned they are more likely to disregard the risk management policies of the nonprofit.

The Queen song The Show Must Go On was the final track on the rock band’s 1991 album, Innuendo. Written principally by band member Brian May, The Show Must Go On is regarded as a tribute to the bravery and fierce determination of lead singer Freddie Mercury, who continued to perform despite being gravely ill. The song was released as a single, just six weeks before Mercury died in 1991. The song reminds us that nonprofit missions are vital to the health and well-being of individuals, communities and the environment, and therefore must also go on. To reach your goal of becoming an effective risk champion, remember to ask for help and give help freely, close the loop after accidents and near-misses, and inspire true loyalty by leading with integrity.

Melanie Herman is Executive Director and Alexandra Ricketts is Project Manager at the Nonprofit Risk Management Center. Melanie and Alex welcome your feedback on this article or questions about the Center’s resources for nonprofits at Melanie@nonprofitrisk.org, Alexandra@nonprofitrisk.org or(202) 785-3891.