Thursday, May 13, 2010

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.

Thursday, April 29, 2010

COBBLESTONE SOCIETY MUSEUM EXECUTIVE DIRECTOR/CURATOR

The Cobblestone Society Museum is seeking an Executive Director/Curator. Founded in 1960 to preserve three National Historic Landmark Designated cobblestone buildings in the hamlet of Childs, NY, the Cobblestone Society is a small historical society which has grown to encompass a Museum consisting of 8 historic buildings, including furnished buildings and a Resource Center which houses the Museum’s library. Located in a rural Western New York community in Orleans County, approximately 30 miles west of Rochester, NY, the Museum is just north of the Village of Albion, NY and the historic Erie Canal.

The position of Executive Director/Curator requires a passion for history along with previous non-profit leadership and management, fundraising and grantwriting experience, strong communication skills, excellent writing and interpersonal skills and the ability to form productive relationships with the Board of Trustees, volunteers and the community. A minimum of an undergraduate degree in museum studies, American history or related field and three years experience will be required. The position administers the organization’s day-to-day operation, including membership development, volunteers, database and website management, the historic buildings, and management of the collections. Responsibilities also include educational and fundraising programs, grantwriting, supervising volunteers and coordinating programs, events and publications in cooperation with an active Board of Trustees. Anticipated start date is November 1, 2010. See the Cobblestone Society Museum’s website (www.cobblestonesocietymuseum.org) for a complete job description and required qualifications. EOE

Applications, which must include six (6) copies of a cover letter and resume, must be postmarked by June 15, 2010 and should be mailed to: Search Committee, Cobblestone Society Museum, P.O. Box 363, Albion NY 14411.

Tuesday, April 27, 2010

NYS offers new online tool for nonprofits

The Albany Business Review reported that the state has created a new tool to help nonprofit organizations—and people interested in starting nonprofits—find resources necessary to deal with tax and labor issues and find other resources.

Comptroller Thomas DiNapoli said the tools, found on the http://www.yourmoneynewyork.com/ website, will help New Yorkers find federal, state and local government resources.

That information includes:

• General resources about nonprofits
• Lobbying
• Working with employees and volunteers
• Fundraising help.

“Nonprofit organizations are vital to New York, not only for the services they provide but for the jobs they create,” DiNapoli said.

There are about 1.2 million New Yorkers working for more than 24,000 nonprofits with revenue of $133 million in the state, the comptroller said. That represents about 17 percent of the state’s work force.

Read more: NY provides online help for nonprofits - The Business Review (Albany)

Tuesday, April 20, 2010

Nonprofits can save the cost of payroll taxes through 2010

NYCON's national partner, the National Council of Nonprofits, has provided the following information for nonprofits:

On March 18, 2010, President Obama signed into law the Hiring Incentives to Restore Employment Act (HIRE Act), a $17 billion jobs package that includes temporary tax incentives to encourage employers to hire new workers. The main job-creation incentive allows most employers, including nonprofits, to keep the 6.2 percent payroll taxes on certain new hires, thus lowering their cost. This payroll tax forgiveness provision expires at the end of the year, so nonprofits will save more the sooner they hire eligible unemployed workers.

What You Need To Know:

The IRS released a statement on their newswire and posted general answers on their website offering a brief outline of the credit. Here are answers to the five key questions that most nonprofits need to know:

1.Is my nonprofit eligible? Yes. All 501(c) nonprofits are eligible.

2.Who do I need to hire to get the credit? There are four criteria that apply to any person hired after February 3:
a.The individual must sign a new IRS Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, certifying that he/she has not worked more than 40 hours in the previous 60 days. (The IRS is currently developing a form employees can use to make the required statement.)
b.The new hire cannot replace an existing employee. It is okay to fill vacancies for individuals who left voluntarily or for cause. It is also permissible to rehire a laid-off employee who otherwise qualifies as an eligible employee.
c.The new hire is not related to a fiduciary of the organization.
d.The work the employee is doing must be in furtherance of the employer’s tax-exempt purpose.

3.How do you claim the credit? Employers claim the payroll tax exemption on their quarterly Form 941, beginning with the second quarter of 2010. The credit applies to the employer’s 6.2 percent share of social security tax on all wages paid to qualified employees. The employee’s 6.2 percent share of social security tax and both the employer’s and employee’s shares of Medicare taxes still apply to all wages. The IRS has posted a draft form 941 on its website and will release a final form next month along with the form’s instructions.

4.How long can I claim the credit? March 19 through December 31, 2010. As an example, for a person who starts work on April 1, the nonprofit keeps the payroll tax money that would otherwise be withheld, amounting to a savings of $1860 for someone with an annual salary of $40,000 (savings of 6.2% payroll taxes on $30,000 which is 9 months of salary).

5.Can I claim the $1000 bonus if the employee stays on the payroll for 52 weeks? Normally, no. The law includes a $1000 bonus credit that can only be applied to business income tax liability. Nonprofits are exempt from this liability, except in the area of unrelated business income.

For more info, click here.

Monday, March 22, 2010

April 29th BACK TO BASICS for tough times

Association of Fundraising Professionals
Genesee Valley Chapter

For immediate release Contact:
March 19, 2010 Deborah Zeger, Conference Chair 585-329-8032 or dzeger@tbk.org

BACK TO BASICS for tough times

The troubled economy is challenging many non-profit organizations to tighten their financial belts and shore up their funding bases. That’s the genesis behind BACK TO BASICS, a regional conference to help volunteers and professionals hone their fundraising skills and connect with others in the field.

On April 29th, the Association of Fundraising Professionals (AFP) Genesee Valley Chapter will host its annual Great Lakes Regional Conference at Temple B’rith Kodesh in Rochester. The event is one of the premier fundraising conferences in the Northeast and is expected to attract some 200 attendees from Buffalo, Rochester, Syracuse and the Finger Lakes.

“The conference offers a range of practical workshops that provide relevant and usable information to help non-profits navigate these changing times,” explains Deborah Zeger, the conference chair.

BACK TO BASICS will feature Roberta (Robbe) A. Healey, Chair of the Board of Directors of AFP International, who has more than thirty years experience in non-profit organization management and development. Healey, who has lived and worked in Western New York, will share her unique perspective about how to “Crisis Proof Your Fundraising Program.”

Other headline speakers include Frank Interlichia, Associate Vice President for University Advancement and Martha Krohn, Executive Director of Annual Giving Programs. Both speakers are with the University of Rochester and will give a joint talk about the University’s success in growing its Annual Fund despite the recession.

The AFP Genesee Valley Chapter offers several financial incentives to make it easier for volunteers and professionals to attend the conference. Those incentives include Meyers Scholarships for members and non-members, a discount for early registration (by March 26th), half-day or lunch only participation, a new member discount and multiple-attendee discount. For more information, visit www.afpgv.org and look for information about the conference and Meyers Scholarships.

Conference sponsors include the University of Rochester, Temple B’rith Kodesh, Advanced Marketing Direct, Oser Press and Parachute Graphic Design and Writing.
* * * * *

Who: AFP Genesee Valley Chapter is a volunteer-based organization representing more that 250 fundraising professionals in the Greater Rochester area. As part of an international organization of fundraising professionals, our mission is to advocate for philanthropy and promote ethical and successful non-profit development by addressing the needs of diverse professionals in our region. Our members represent colleges, universities and secondary schools, hospitals and health care facilities, social service and cultural agencies, and local charities.

What: Great Lakes Regional Conference, BACK TO BASICS, featuring Roberta (Robbe) A. Healey, Chair, AFP International. The event is open to the public.

When: Thursday, April 29, 2010 from 8:00 am to 4:15 pm.

Where: Temple B’rith Kodesh, 2131 Elmwood Avenue, Rochester.

How: Visit www.afpgv.org and register on-line.

Sunday, March 7, 2010

Bumpy ride for corporate giving amid recession

Reuters reported that giving by U.S. companies endured the worst recession in decades with mixed results as some pared back philanthropy in the face of tough times, others increased budgets and most predicted a steady 2010.

The economic downturn sparked some changes in giving priorities as well, with several companies placing more importance on basic needs such as fighting hunger and homelessness and others focusing more in their local communities.

"This is not just giving money anymore. It's solving problems. These are social issues that we're addressing," said Charles Moore, executive director of the nonprofit Committee Encouraging Corporate Philanthropy.

"Companies continue to examine their priorities. Very few are taking on new kinds of causes, and they are tending to reallocate the funds they do have," he said. "There's great expectation on the part of communities and (employees) on companies -- they expect more."

Reuters spoke to 10 companies whose philanthropic arms are ranked by the Foundation Center among the top U.S. foundations. Four said the dollar value of their giving increased in 2009, two said it remained steady, and four said it dropped. Read more here.

Monday, March 1, 2010

Tax Exemptions Eyed as Plug for Budget Gaps

The NY Times reported that faced with steep declines in tax revenue, an increasing number of states and localities are considering eliminating various tax exemptions for nonprofit groups.

A bill before the Hawaii Legislature, for instance, would require charities to pay a 1 percent tax, and Kansas is considering making them subject to sales taxes.

Revoking the nonprofit organizations’ exemptions from property taxes is also under scrutiny in several counties in Kansas, as well as in Pennsylvania.

And last fall, Minneapolis made charities subject to the fees it charges businesses and residents for streetlights in hope of gaining an additional $155,000, an exercise Jon Pratt, executive director of the Minnesota Council of Nonprofits, describes as “looking under the sofa cushions.”

In most cases, churches would be exempt from the tax measures, but all other nonprofit groups, including private schools and colleges, would be affected.

City and state officials say they have no choice.

“We’re having to look at the public services nonprofits use and how we can adequately cover those costs,” said Matt Greller, executive director of the Indiana Association of Cities and Towns. “We can’t give them away for free any longer.”

Nonprofit groups say the moves to wring revenue out of them are shortsighted and will produce cutbacks in critical services that governments rely on them to provide, like mental health and emergency foster care services.

“Nonprofits are really hurting in this economy,” said Tim Delaney, chief executive of the National Council of Nonprofits, a trade association. “Their revenues are down, too, and demand for the services they provide, services that government expects them to provide, is way up.” Read more here.