Biggest Mistakes Boards Make, Founding Fathers Write a Grant Proposal and more

Practical, Provocative and Fun Food-For-Thought for Non-Profits

The Trouble with "Passion for the Mission" . . . editor notes issue #84

"Passion for the mission is a must" . . . so say many job announcements and board member requirement lists. Wait a minute. Let's examine this sacred cow cliche a little more. Read More>

Surprisingly Uncomplicated Path for Developing Leaders

Kirk Kramer of The Bridgespan Groupsuggests some new approaches to leadership development in his recent papers. For Blue Avocado readers, he cuts right to the chase: Read More>

In the Swirling Dust of Change, Life Still Goes On for an ED

It just makes sense that the founder of the Center for Digital Storytelling would tell his own story in a remarkably compelling way. Here's Joe Lambert with a thoughtful First Person Nonprofit account of how organizational problems can bring out the creativity and best in people and how, through it all, life goes on, though it's your choice how to embrace its everchanging moods: Read More>

The Founding Fathers Write a Grant Proposal

"Just look at this second sentence!" groaned Samuel Adams. "'We hold these truths to be self-evident  .  .' This flies in the face of 'evidence-based practice'! We'llnever get funded!" Read More>

Ten Biggest Mistakes Boards and Executives Make

"To err is human," and as we all ruefully know, nonprofit board members and executive directors are typically human. Here are some of the biggest mistakes we make: Read More>

Take a 3-Minute Vacation to an Oscar-Nominated Film Starring Avocados

Has anyone else seen an avocado in an Oscar nominated film this year? Read More>

To see it online Click Here

Ch-Ch-Changes: Nonprofit Sector Predictions for 2013

WRITTEN BY RICK COHEN

Predictions about the non-profit sector have been made for 2013. While some predictions look promising, non-profits hope that others are mistaken.

For the full story click here.

Data Are Transforming Philanthropy and the Social Economy

Data Are Transforming Philanthropy and the Social Economy

Lucy Bernholz Joins Forces With GrantCraft, Predicts Big Shifts in 2013

New York, NY — January 7, 2013. A GrantCraft publication released today,Philanthropy and the Social Economy: Blueprint 2013, written by leading philanthropy scholar Lucy Bernholz, captures the changing landscape of what it means to use private resources for the public good. No longer the purview of foundations and nonprofits alone, philanthropy is now defined by an array of increasingly diverse activities, such as impact investing, social businesses, peer networks, and crowdfunding. The Blueprint outlines how these and other innovations are transforming the "social economy."

The fourth edition of the Blueprint has joined the suite of materials in GrantCraft — a joint project of the New York-based Foundation Center and Brussels-based European Foundation Centre — which taps the collective knowledge of funders to share insights to help them hone their craft. The analysis and forecasting showcased in the Blueprint provides the GrantCraft community with keen observations about the current landscape, emerging trends, and important breakthroughs likely in the year ahead.

Bernholz notes that the big shifts that matter for donors and "doers" are data-related, and she provides more than a dozen examples of foundations embracing data. Looking into the future, she sees data as transformative for philanthropy, in terms of both practice and policy. Indeed, Bernholz asserts that the use, ownership, and access rules of data will be as definitional for the social economy in the 21st century as the charitable tax deduction was for nonprofits in the 20th century.

"I’m hopeful the Blueprint can contribute to a global discussion about philanthropy, nonprofits, and how we use our private resources for public benefit," said Lucy Bernholz, visiting scholar at Stanford University’s Center on Philanthropy and Civil Society and author of Blueprint 2013. "There are big changes ahead, and theBlueprint gives readers a heads-up on the most meaningful trends."

In this year’s report, Bernholz includes a scorecard for the previous year’s predictions and a list of 2013 forecasts covering crowdfunding, social impact bonds, and political advocacy. She also points out the catchiest philanthropy-related buzzwords of the year and lists possible "wildcard" world events — legislation, scandals, or disasters — that have the potential to mitigate or accelerate the timing of big shifts in the social economy.

"The Blueprint serves as a finger on the pulse of the social economy," said Lisa Philp, vice president for strategic philanthropy at the Foundation Center. "Lucy’s insights about the changing nature of philanthropy have become required reading for funders and anyone concerned with aligning resources toward the greater good."

Throughout 2013, Bernholz will explore the ideas in the Blueprint, as well as trends in Europe and other regions of the world, in an ongoing conversation atField Notes, the GrantCraft blog, as well as on her own blog, Philanthropy2173.

Philanthropy and the Social Economy: Blueprint 2013 can be downloaded for free at www.grantcraft.org.

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.

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

We respect your right to e-mail privacy. If you are not interested in receiving periodic messages about Foundation Center events, or have other comments or suggestions, please send e-mail to communications@foundationcenter.org.

The Foundation Center • 79 Fifth Avenue, New York, NY 10003 •  (212) 620-4230

For the Full Online Article Click Here

Business Planning for Nonprofits

From NYCON's national partner National Council of Nonprofts:

True or False: “Business planning is for businesses, and strategic planning is for nonprofits." Be honest. When you first heard the phrase "business plans for nonprofits," did you think, "We don't do that"? Many people think that businesses do business planning, and nonprofits do strategic planning. Strategic planning remains a core element of capacity building. State Associations of nonprofits report that strategic planning is perennially one of the most popular educational programs they offer. Funders often want to see a strategic plan along with a grant proposal. But increasingly, we’re hearing executive directors say to one another, “Do you have a business plan?” Are business plans for nonprofits becoming the new hot thing? And are they replacing strategic plans – simply by adding dollar signs? Advertisement Business planning is not the same as strategic planning. Ideally business planning will inform and improve a strategic planning process that keeps evolving. Business planning provides a sound financial context for the planning process and forces us to look at our nonprofit in the context of a competitive environment. It is hard work because it grounds big picture ideas in reality. Understandably given the option we might prefer to paint a canvas with a broad vision and fill in the colors, rather than first determine what it costs to buy the paint and canvas, and how to price our painting. (It’s much more fun to paint the picture and let somebody else figure out whether it will sell and for how much!) The problem for enthusiastic and inspired artists (as with board and staff members) is that the canvas gets bigger and bigger – but when the masterpiece is finished, there might not be a market for it.     For us amateur artists, two recent books approach nonprofit business planning from a strategic planning perspective and explain it in a very accessible way, even for those not familiar with business terminology. The Nonprofit Business Plan: The Leader’s Guide to Creating a Successful Business Model , a new book by David La Piana and his distinguished colleagues at La Piana Consulting, may just change your attitude towards using the words “business” and “nonprofit” in the same sentence. Also take a look at Nonprofit Sustainability: Making Strategic Decisions for Financial Viability, by the terrific trio Jeanne Bell, Jan Masaoka, and Steve Zimmerman. We think both books are masterful in helping to explain why nonprofits need to pause and take a look at, well…let’s just say it, their “business model.”   Your nonprofit is in the business of something, whether it’s recycling computers, helping veterans rejoin the workforce, or preserving open space from development. And in order to pay for talented employees, that new website you dream of, and the internet connection that makes it work, your nonprofit needs cash. The problem is, assuming your nonprofit is like many others, it’s tempting to continually add new projects or improve existing programs to meet changing needs in the community. Just before a nonprofit launches that new program or makes the necessary adjustments, that’s the time to stop and ask, “How much is this really going to cost? And how will it be paid for?” The question should even be asked for services that clients pay for -- or that are paid by third-parties: “Are all the costs of the program paid for?” What we’re hearing is that many nonprofits have not calculated the full cost of running their operations. Consequently, the revenue received, whether through donations or fees for services (or a combination) might not cover 100% of what it costs to deliver those programs. Private philanthropy is concerned about this funding gap and the strain it puts on charitable nonprofits. The Donors Forum has convened a community of practice on the subject of overhead, bringing together funders and nonprofits to recommend how nonprofits can more easily identify and articulate the true cost of their work, and how grantmakers can become educated about the failure to pay full costs, as well as help nonprofits understand how to calculate the true cost of delivering services.   In today’s challenging economy, the severe consequences of failing to engage in business planning is laid bare when cash stops flowing. The cash flow crunch is a concern for a huge number of charitable nonprofits. The Nonprofit Finance Fund’s 2012 survey found that only 43% of nonprofits surveyed had more than 3 months of cash reserves – and many had less than one month. Nonprofits that continue to focus exclusively on what they do, instead of also what it costs to do it, will find themselves at risk of closing their doors for good. Here is just one example of the need for nonprofits and board members to focus strategically on business models: a 30 year old charitable nonprofit, dependent on donations to pay the rent and stay afloat, is hit hard by the recession when donations dry up. If the nonprofit closes its doors the community’s poor and disabled will be without access to medical equipment, such as wheelchairs, walkers, and oxygen tanks. For 30 years the nonprofit has collected donated equipment, refurbished it, and trained its new owners how to use it. For free. Now at the brink of being forced to shut down, the group’s executive director, reflecting on what happened, explained his mind-shift towards being more business oriented: “We’re not about money, but we have to be right now.”   A solid business plan will take into consideration not only the “vision” and the strategy for how your nonprofit will address needs in the community, but also how everything your nonprofit does fits within a competitive landscape, and how it will fund its activities in a cost-effective way. Done well, business planning is very comprehensive – and requires time. An outside consultant may be helpful to move the process along. The CEO, key program staff, and a few board members are usually tapped for the business planning team so that multiple perspectives inform the analysis of all aspects of the nonprofit’s operations: from mission delivery (programs, services, advocacy) to physical and human resources infrastructure, and marketing, to communications and fundraising activities. A business plan might also include funding projections, and address risk mitigation as well as how outcomes will be evaluated (and the associated costs).   The advantage of having a business plan in place – especially when an attractive new idea presents itself - is that some ventures, partnerships, or projects may strategically fit the mission and perfectly support the vision – but may not be successful financially. With the discipline of a business plan as the “enforcer,” it makes it easier to prioritize the activities that make the most financial sense, and to make hard decisions, such as stopping a program that offers little ROI. As champions for our nonprofits’ missions it is no longer enough to know deep in our bones that “the mission is good.” Instead we need to help boards and staff ask hard questions about money, so that the ability of each charitable nonprofit to deliver its mission into the future is protected. We encourage your nonprofit to take a look at the resources highlighted in this newsletter and on the Council of Nonprofits’ website, and we hope that when your nonprofit engages in this process, business planning will feel much more like painting a masterpiece than counting pennies. Coming soon - a new look for this newsletter and the National Council of Nonprofits   Interested in learning more about business planning for nonprofits? Join us for a free webinar on October 18th with Heather Gowdy and Lester Olmstead-Rose, authors of The Nonprofit Business Plan: The Leader’s Guide to Creating a Successful Business Model. This webinar is an exclusive benefit for members of our network of State Associations. Contact your State Association for the registration link. Not a member? Find your State Association and join today!   This webinar is offered free of charge thanks to generous support from Resources on strategic and business planning (National Council of Nonprofits)    The Nonprofit Business Plan: The Leader’s Guide to Creating a Successful Business Model , by David La Piana, Heather Gowdy, Lester Olmstead-Rose, and Brent Copen   Nonprofit Sustainability: Making Strategic Decisions for Financial Viability, by Jeanne Bell, Jan Masaoka, and Steve Zimmerman   Business Planning for Nonprofits: What It Is and Why It Matters  (Bridgespan)   Sample business plans for nonprofits (Bridgespan)   Tools for business planning, creating a theory of change, a case for support, and building a revenue plan (for purchase from Social Velocity)   Congratulations to Valerie Lies, President & CEO, Donors Forum, and Ann Silverberg Williamson, President & CEO, Louisiana Association of Nonprofit Organizations, as well as Tim Delaney, President & CEO of the National Council of Nonprofits, for being named to the 2012 NonProfit Times Power & Influence Top 50 list.   The National Council of Nonprofits provides information about the failure of government to pay the full costs of services both on our Government-Nonprofit Contracting website and in Nonprofit Advocacy Matters, our bi-weekly newsletter on public policy and advocacy matters affecting charitable nonprofits. An upcoming edition of Nonprofit Advocacy Matters will include an update on federal reforms affecting indirect cost reimbursements. Subscribe today so you won’t miss the latest on this important issue.

Copyright 2012 National Council of Nonprofits. All rights reserved 1200 New York Avenue, NW | Suite 700 | Washington, DC 20005 | www.councilofnonprofits.org

Hospital affiliations increasing: Auburn and Rochester recent example

Recent article on hospital affiliations:

The Auburn hospital, rebranded last week as Auburn Community Hospital, announced Jan. 25 it will explore pairing with the Rochester General Health System "to further enhance its 120-year tradition of providing compassionate, quality acute and long-term care services."

It chose Rochester General over three other suitors: the University of Rochester Medical Center and St. Joseph's and Upstate University hospitals in Syracuse. Crouse Hospital, also in Syracuse, was asked to submit a proposal but did not.

ACH said in a statement that it chose to continue talks with Rochester General because of its "successful track record of collaboration with smaller standalone hospitals, its reputation for innovation, a sterling record of patient safety and a national reputation for quality."

Neither ACH nor Rochester General would elaborate on those criteria, but the decision to seek a partner is part of a statewide trend among hospitals small and large, rural and urban.

William Van Slyke, a spokesman for the nonprofit advocacy group Healthcare Association of New York State, said reductions in Medicaid and Medicare reimbursement rates have cut into hospitals' margins at the same time that stricter performance measures demand greater accountability and better patient results.

"Really what's happening is the whole health care system is transitioning from a fee-for-service model to a coordinated care management system, where you're paid by an insurance company to provide care for a person," he said. "Definitely the squeeze is on. Hospitals across the state are having to find new ways and build new relationships to provide care."

One common way forward has been collaborations, from clinical affiliations to full mergers and purchases. Those discussions have taken place in every corner of the state, from New York City and the Albany area to central and western New York, Van Slyke said.

Rochester General already has a partnership with Newark-Wayne Community Hospital, a 120-bed facility in Wayne County. It also spent two years working with Auburn's neurology unit to attain Stroke Center designation, something AMH achieved last August.

In Syracuse, Upstate took over Community General Hospital last July, combining to create the largest hospital in the region.

Upstate also made a strong pitch to partner with ACH. Its CEO, John McCabe, said the majority of Cayuga County patients who can't be treated at ACH end up at Upstate, including many visits for cardiology, orthopedics, trauma and cancer services.

Upstate's offer included financial help in adding specialists, clinics and infrastructure and paying for a study to decide what sort of health care presence Auburn needs, now and in the future.

The Syracuse hospital put forward five possible business models, ranging from "franchising" as an affiliate to a full purchase, McCabe said.

ACH would not comment on why it chose Rochester General over the other offers, but McCabe said he believed Upstate lost out because he would not promise that Auburn could retain a traditional hospital in the future.

"Clearly other people who responded to the (request for proposals) said you can always have a hospital in Auburn and here's $10 million for capital improvements," he said. "(I was unwilling) to make an absolute commitment that nothing would change in Auburn. I think that's unrealistic with what's going around."

Part of the difficulty for small, rural hospitals like ACH has been attracting doctors in the most profitable sub-specialty practices. Without those lucrative services, they often struggle to generate enough revenue to reinvest in their practice and facilities.

"More and more in New York, people will be asking, 'What's the right configuration of services? What should be regional and what should be left local?'" he said. "I think it may be difficult for (ACH) to still be a full-service, 100-bed hospital.

"That doesn't mean there can't be a medical campus that takes care of the needs of the people of Auburn to a certain level. ... Rather than saying, 'Will there be a building that's a hospital as we know it today?,' people should say, 'What services do we need?'"

A spokeswoman for the University of Rochester Medical Center said that hospital's proposal to ACH "did not offer a capital investment but maintained local ownership and control." St. Joseph's declined to comment.

Van Slyke, of the Healthcare Association of New York State, speaking about hospital affiliations in general but not Auburn in particular, said it's important to be transparent and communicate clearly, and not to be afraid to change.

"More and more providers and hospitals, if they continue to operate under the old model, they won't be able to sustain," he said. "It's very natural for communities to want to hold onto their facilities as they know them. But if there's a transparent discussion centered around meeting community needs under this new era of decreased reimbursement, that will lead to a solution. ... We need to figure out how those services - in-patient beds, OB-GYNs, cancer services, pediatrics - can be sustained in whatever model is the most efficient and most likely to succeed into the future."

ACH and Rochester General plan to provide an update on their discussions at the end of May.

Staff writer Justin Murphy can be reached at 282-2237 or justin.murphy@lee.net. Follow him on Twitter at

CitizenMurphy.


Read more: http://auburnpub.com/news/local/hospital-affiliations-becoming-common/article_fc387244-5aa9-11e1-b042-001871e3ce6c.html#ixzz1ms8xtmVa

Crain's New York Business reported that kids raise the bar on giving

Crain's New York Business reported that kids raise the bar on giving with Facebook fundraisers, even their own foundations.

When Shannon McNamara was 13, her parents took her and her siblings to Peru during summer vacation to volunteer in an orphanage.

“At the beginning of the trip, I was thinking, 'Why can't I be on a cruise ship instead?' ” said Ms. McNamara, now 17 and a senior in high school in Basking Ridge, N.J. But the experience was “worth more than any cruise or trip to Disneyland could give you,” she said.

The family took a similar trip to Africa three years ago, and Ms. McNamara started her own nonprofit, Share (Shannon's After-School Reading Exchange), shortly after to help educate African girls. She has since volunteered in Tanzania every summer, and has collected 23,000 books and shipped them to schools there. She has also begun raising money for scholarships.

Meet the teen philanthropists. Armed with new technology and an awareness of global issues, post-Millennials are engaging in social entrepreneurship in previously unimaginable ways. Though still materialistic, these teens and even preteens want to do something more significant than acquire the latest i-Pod Touch or Wii.

Looking for a purpose
Borrowing from trends in celebrity charity, kids are mobilizing their peers to address everything from infant mortality in developing nations to neighborhood concerns. They're donating presents to charity, and they're establishing their own nonprofits.

“The number of kids creating their own organizations and taking action for causes they care about is skyrocketing,” said Nancy Lublin, chief executive of DoSomething.org, a New York-based nonprofit that helps young people to engage in philanthropy.

“Kids today just saw their parents go through a recession, get laid off and struggle,” Ms. Lublin said. “They look around and say: 'What's the point? I don't just want a second car in my driveway. I want a life of purpose.' ”

In the past year, 79% of girls in the United States have contributed food or clothing, 53% have given their own money, and 66% have asked family or friends to give or volunteer, according to research commissioned by the United Nations Foundation.

READ MORE HERE.

Statement of Mental Health America on the Tragedy in Arizona

Contact: Steve Vetzner, (703) 797-2588 or svetzner@mentalhealthamerica.net

ALEXANDRIA, Va. (January 10, 2011)—Mental Health America joins Americans in mourning the loss of those killed in Saturday’s tragic and senseless attack and expressing our wishes for the full recovery of Congresswoman Gabrielle Giffords and fellow citizens who were injured. Our thoughts and prayers are with the families and loved ones of those who lost their lives and everyone who is affected by these horrific events. And we join in applauding the brave actions of individuals who prevented greater harm.

It will likely take many days to understand the reasons and motivations behind this national tragedy. Many have pointed to mental health as an issue.

It must first be emphasized that people with mental health conditions are no more likely to be violent than the rest of the population. And we have science-based methods to successfully treat persons with even the most severe mental illnesses. A very small group of individuals with a specific type of mental health symptoms are at greater risk for violence if their symptoms are untreated.

At the same time, we must recognize that the nation’s mental health system is drastically under-funded and fails to provide Americans living with mental health conditions with the effective community-based mental health services they need. Sadly, in the current environment of strained state budgets, mental health services have been cut drastically just as demand for these critical services has risen dramatically.

It is also important that, as a community, we assist persons with signs and symptoms of mental illnesses to seek treatment. Although rare, when a person becomes so ill that he/she is a danger to themselves or others state laws provide a way to get them help even if they don’t believe that they need it. The best strategy, however, is to have an accessible system of care that is easy to use.

Science has not developed tools to predict reliably individuals at risk for violence. But we can reduce the small risk of violence in those with certain mental health conditions by investing in proven intensive, coordinated community-based mental health services and making certain that they can access these services.

We do not know if the mental health system failed in this situation or if there were missed opportunities or if effective treatment might have averted this tragedy.

We do hope that we can find answers and create solutions that prevent this from ever happening again.

Mental Health America (www.mentalhealthamerica.net) is the country's leading nonprofit dedicated to helping all people live mentally healthier lives. With our century of service to America and our more than 300 affiliates nationwide, we represent a national movement that promotes mental wellness for the health and well-being of the nation— everyday and in times of crisis.

Nonprofit Advocacy Matters Update from National Council of Nonprofits

Five Worst Government Contracting Abuses
Late payments for contracted services is only one of many ways that governments shortchange nonprofits and exploit the contracting relationship. See the five worst government contracting abuses and let us know if you can add further documentation, if you've seen worse, or if you know of solutions in your state that help prevent these and other abuses.

Hearing to Consider Gulf Coast Need for Charitable Assistance
Viewing the impact of the Gulf oil spill on people in the region, Congress is asking "what needs to be done and how the charitable sector and others can reach out to these communities and help." The Oversight Subcommittee of the House Ways and Means Committee has scheduled a hearing for Tuesday, July 20, to consider these questions and examine how donations contributed to charities are being used. In announcing the hearing, Chairman John Lewis (D-GA) stated, "This is the moment when government must rely on charitable organizations to fulfill their missions and address these urgent needs."

Rival Estate Tax Revisions Proposed
The estate tax expired at the end of 2009, but will snap back automatically in 2011 to a 55 percent tax rate with a $1 million exemption unless changes are made. Senators are proposing rival plans to weaken or strengthen the federal tax on estates. Sens. Blanche Lincoln (D-AR) and Jon Kyl (R-AZ) introduced a measure last week to set the estate tax rate at 35 percent, with a $5 million exemption phased in over 10 years and indexed for inflation. Sen. Bernie Sanders (I-VT) recently introduced the Responsible Estate Tax Act, S.3533 to set an exemption of $3.5 million and impose tax rates from between 35 percent and 55 percent based on the size of the estate above the exemption level. Senate Majority Leader Harry Reid (D-NV) has said that he does not intend to allow any estate tax votes in the coming weeks, but he continues to negotiate with the Republican Leader, Sen. Mitch McConnell (R-KY), on the Senate schedule and amendments.

Financial Regulatory Reform Enacted, Cuts Debit Card Fees
Last week the Senate passed and sent to President Obama the Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R.4173). The measure imposes new restrictions on risky financial investments, creates a Consumer Financial Protection Bureau within the Federal Reserve, and allows the Federal Reserve to regulate the amount of fees that nonprofits and merchants can be charged for debit card transactions. President Obama is expected to sign the bill this week.

Nonprofit Sector Act
Federal Data of "Uncertain Quality"
The case for the Nonprofit Sector and Community Solutions Act, H.R. 5533, was made recently by SubsidyScope, a program of Pew Charitable Trusts. In seeking to analyze the effects of tax subsidies and federal grants, the authors reached the following conclusions:

"It is challenging to assemble and present spending and subsidy data regarding the nonprofit sector because the federal government does not identify nonprofits as a distinct budget category. Further, federal budget data are of uncertain quality; specifically, the data available through USAspending.gov are incomplete because certain program information is missing for a number of records, making it difficult to discern which specific agencies and programs may be awarding funds to nonprofits."

A key component of H.R. 5533 is to overcome the data challenges that SubsidyScope, and many other nonprofit researchers, have identified.

IRS Seeks Comments on New Disclosure Requirement
The health care reform law enacted earlier this year requires nonprofits and businesses, starting in 2012, to report aggregate payments to vendors in excess of $600 for goods and other property. The requirement applies for payments to all vendors, not just those related to health care. Currently, nonprofits and others are required to file Form 1099s for payment of services by independent contractors, but not for goods from vendors. The IRS is seeking public comment on how to most effectively carry out the law change, with the stated goal of minimizing burdens and avoiding duplicate reporting. The deadline for comments is Sept. 29, 2010. Please share this information with your accounting and operations personnel and send the National Council your ideas on how best to limit the impact of this new reporting requirement.

NY comes up last in volunteerism

The Albany Business Review reported that New Yorkers are not very beneficent when it comes to giving their time. Not at all.

In fact, the Empire State ranks 51st out of 50 states and Washington D.C. when it comes to volunteering, according to the annual Volunteering in America report.

Nationally, however, about 1.6 million more volunteers served in 2009 than in 2008, making this the largest single-year increase in the number of volunteers since 2003, when data was first collected for the study. The report is produced by the Corporation for National and Community Service, a government-sponsored nonprofit. Higher unemployment rates also increase volunteerism.

Nationwide, a total of 63.4 million volunteers contributed 8.1 billion hours of service in 2009, an estimated dollar value $169 billion. Overall, the volunteering rate increased in 2009 to 26.8 percent, up from 26.4 percent in 2008.

Volunteering data used in the annual report is gathered through the Current Population Survey, conducted monthly by the U.S. Census Bureau for the Bureau of Labor Statistics. Volunteers are defined as individuals ages 16 and over who perform unpaid activities for or through an organization.

The study showed that 2.9 million, or 19 percent, of New York residents volunteered in 2007-2009, compared with the national average of 26.8 percent. The Capital Region fared better, but still placed in the lower half of the rankings. It ranked 44th out of the 75 mid-sized cities that were studied for the report, with 27.1 percent, or 200,000, of its residents volunteering.

Compared with other mid-sized cities in New York, the Capital Region placed behind Binghamton, ranked 30th, and Poughkeepsie, ranked 41st, and ahead of 71st-ranked Syracuse. Nationally, Provo, Utah, ranked first among mid-sized cities and El Paso, Texas, was last. Utah was the top state for volunteerism.

Volunteers in New York contributed 405.5 million hours, or $8.5 billion worth in service from 2007-2009.

Read more: New York dead-last in volunteerism - The Business Review (Albany)

United Way now one in Niagara

Buffalo Business First reported that two United Way agencies in Niagara County have completed a consolidation, creating a $1.6 million agency that will serve over 80,000 county residents.

The United Way of Greater Niagara brings together the United Way of Niagara and the Eastern Niagara United Way, which together support 75 different human service programs run by 21 service providers.

Carol Houwaart-Diez, executive director of the new group, says together the agencies will be able to cut costs for business services like insurance rates and rental property, with the savings going back into program allocations to benefit county residents.

As the agency completes the second phase of a needs assessment process, the services funded by the agency may also change, she says.

“Now we’re trying to find out the gaps in the community. Once we find that out, we will determine if there will be significant changes,” she says.

With headquarters in Niagara Falls on Military Road, the agency will shut down its full time Lockview Plaza site this month and open a part-time community service office in Lockport’s Bewley Building. The new organization has seven employees and a 20-member board of directors.

Companies in the region will have one Day of Caring event, one meeting for agency CEOs and one funding process – saving them time and effort.

Initially, the consolidation plan that began four years ago called for bringing together all three United Way agencies in Niagara County, but talks with the United Way of the Tonawandas fell through after members voted it down on two separate occasions.

Read more: United Way now one in Niagara - Business First of Buffalo

Forum Features Discussion with NYS Comptroller and Strategic Alliances and Partnerships

The blog, Done by People, by Joe Brown, Principal and Founder of Slope Resources, LLC, offered the following recap of the "A Conversation with NYS Comptroller Thomas P. Di Napoli and Panel Discussion on Strategic Alliances & Partnerships."

On Monday, I had the opportunity to attend a highly informative and engaging forum which brought together government and nonprofit representatives to discuss the topic of strategic alliances and partnerships among nonprofit organizations. While the discussion focused on New York State’s nonprofit sector, the challenges, considerations, and ideas discussed are applicable to organizations nationwide. In the absence of a video or audio recording of the session, I wanted to share this detailed recap and my impressions of the session.

The event was sponsored by the Community Foundation for the Greater Capital Region and the New York Council of Nonprofits (NYCON) and held at the headquarters of New York State United Teachers (very nice digs, by the way) in Latham, New York, a few miles northeast of Albany.

Karen Bilowith, President and CEO of the Community Foundation for the Greater Capital Region, presided over the session. The approximately 75 attendees included representatives of various nonprofits, including arts, cultural, health, and human services organizations, as well as a number of funders and consultants (including yours truly). Following Ms. Bilowith’s welcoming comments, New York Secretary of State Lorraine Cortés-Vázquez provided brief opening remarks. Ms. Cortés-Vázquez assured the attendees that “most in government” recognize the importance of the nonprofit sector and rules and regulations pertaining to the sector should not be so onerous as to provide disincentives for staff, board members, and volunteers to participate.

I’m from the government, and…
Ms. Cortés-Vázquez then introduced the session’s keynote speaker, New York State Comptroller Thomas P. DiNapoli. The Office of the State Comptroller has responsibility for the review, approval, and payment of the state’s contracts with nonprofit organizations. Mr. DiNapoli noted the importance of the nonprofit sector to the state and its economy, citing 2006 statistics that the state’s approximately 24,000 nonprofits reported revenue of $133 billion and employed nearly 1.2 million people, or 17% of the state’s workforce. He quantified the state’s contractual bonds with the sector as consisting of nearly 31,000 active contracts totaling $14.6 billion, as of June 2009. Read more here.

The balance of the session was devoted to presentations and discussion by a panel consisting of:
■Doug Sauer, who has served as Chief Executive Officer of New York Council of Nonprofits (NYCON) since 1980. NYCON’s membership represents approximately 1,600 charitable nonprofit organizations across New York State.
■Cristine Cioffi, who is a partner in the law firm of Cioffi • Slezak • Wildgrube P.C., but spoke primarily in her role as Chair of the Board of Trustees of Ellis Medicine, an organization which resulted from the recent merger of three nonprofit hospitals in Schenectady County.
■David W. Palmquist, who as Manager of the New York State Museum’s Chartering Program, oversees the chartering of museums, historical societies, and similar cultural organizations with educational purposes across the state.
The panelists responded to questions posed by Ms. Bilowith, as well as several questions from audience members.

Doug Sauer
While all three of the panelists presented interesting perspectives on the potential of various collaborative models for nonprofit organizations, I was particularly impressed by Mr. Sauer’s insight and candor on a number of fronts. Early in his presentation, he discussed the recent proliferation of nonprofits, describing the creation of thousands of new organizations each year, many of which are not active, and the resultant saturated environment. (I was reminded of a recent article in the Chronicle of Philanthropy, which noted that the number of nonprofit organizations nationwide has increased by 90% to 1.2 million since 1996). Read more here.

Foundations offer loans as a way to help nonprofits

The Buffalo News reported that a $650,000 check in 2008 from the Community Health Foundation of Western and Central New York for a new program to assist the frail elderly in Cattaraugus County came with a caveat: Trustees of the foundation wanted the money back, with interest.

A single grant of that size was beyond the capacity of the foundation, so trustees decided instead to make it a loan.

The money allowed Community Care of Western New York to launch a program that will keep more than 200 rural elderly people safely in their homes. Without it, the project probably would have stalled.

"It would not have opened without us, and what is a really promising model for elder care in a rural community would have been lost," said Ann Monroe, foundation president.

Increasingly, foundations in Western New York and across the country are turning to loans, loan guarantees and other measures as a way to aid needy nonprofit organizations without giving away the store.

The John R. Oishei Foundation, the area's largest private foundation, currently has more than $12 million — nearly 4 percent of its $280 million asset base — being used in this fashion. And at least two other local foundations, the Margaret L. Wendt Foundation and the Joy Family Foundation, have experimented with alternative financing.

Known as "program-related investments," or more popularly "PRIs," the loans and loan guarantees are serving a dual purpose for foundations hammered by stock market losses in 2008.

PRIs, like grants, put money toward projects that might not otherwise get off the ground. Read more here.

NON-PROFITS MUST EXPLORE RESTRUCTURING AND OTHER FORMS OF COST-EFFECTIVE COLLABORATION

Gerald Archibald, from The Bonadio Group, offered the following viewpoint:

“I don’t think you ever stop giving. I really don’t. I think it’s an on-going process. And it’s not just about being able to write a check. It’s being able to touch somebody’s life.” Oprah Winfrey

When you are asked to contribute to this year’s United Way Campaign, please dig deep and be as generous as possible with your pledge. After 35 years as a volunteer and contributor to our United Way, I continue to believe that the United Way Campaign provides the life blood for continuation of critical programs and services to those who are less fortunate in our community.

In last month’s column, (“There’s a lot of room to operate between autonomy and takeover,” April 1), I referenced a question posed to me by a board member who asked whether her non-profit agency should merge with another.

Coincidentally, the week that article ran, I had an opportunity to hear United Way’s President Peter Carpino make the case to me, and other members of an Executive Committee on which I serve, why non-profits need to do business differently.

United Way takes this subject very seriously… so seriously, in fact, that its Board has made a five-year commitment to a “Non-profit Sustainability Initiative.” United Way also has assembled a 12-member consortium with representatives from organizations that are interested in and committed to this issue as well.

The consortium’s membership is impressive and includes the Simon School, RIT’s Simone Center for Innovation and Entrepreneurship, SUNY Brockport, the Council of Agency Executives, the New York Council of Non-Profits, the Rochester Business Alliance, The Community Foundation, the Greater Rochester Health Foundation, the Greater Rochester Quality Council, the Center for Governmental Research, and Grantmakers Forum of New York.

There’s no question in my mind that United Way is the right organization to assume leadership on this issue and that the time is right for them to do so.

Consider this:

New York State is facing a projected $27.5 billion deficit over the next three years;
Rochester’s United Way has raised $7.5 million less in the past four years, including $3.5 million less last year alone;

Given the impact that last year’s market downturn had on foundations’ endowments, grant making was reduced significantly.

The concept of sustainability is not new to United Way. Over the past 15 years, through its Synergy Fund, United Way has invested nearly $1 million to support increased efficiencies among not-for-profits through organizational re-engineerings ranging from co-locations to mergers. Recent successes include the Ibero-PRYD merger and AIDS Rochester-AIDS Community Health Center merger (now called AIDS Care).

Carpino noted that, given current economic realities, conditions are ripe for non-profits to explore restructuring and other forms of cost-effective collaboration more intentionally and to assess what is the right level of competition (given that too much competition can lead to service duplication).

And, he said, public and private funders no longer have the capacity (or, in some cases, the willingness) to support all the programs they’ve supported in the past. Therefore, non-profits should seek out and take advantage of opportunities to sharpen their focus or modify their priorities in light of changing community priorities. Read more here.