Public Policy Action Institute–How are we doing in the area of advocacy for our sector?

Thought leaders from throughout the country have gathered in Chicago to discuss the most pressing issues facing the nonprofit sector.  All agree on one thing, change is coming.  Some call it a tsunami others a perfect storm…….whatever you call it–it is going to be done to us as nonprofits rather than with us if we don’t get our acts together.  This is not just an observation but a fact.  Legislators are meeting now to consider multiple policy changes, tax code changes, etc. that could impact our sector for years to come.  This being said how come there are only 150 people at this event hosted by the Independent Sector–there are over 1.3 million nonprofits in this country.

What is the social compact of today?  How much can we truly afford to cut entitlement programs and services that aid our most vulnerable populations?  How can we advocate for our sector without looking like just another special interest group? What are we willing to give up?

How will we contend with the “duality of interest” in our field–board members who despite their dedication to the mission of the organization they serve must take a conflicting policy stance because of their employer or other self interests?

Follow the conversation on the Independent Sector page or via Twitter #ISPPAI or #ISconf.

Do you follow policies that impact your organization? We all should.

In the midst of delivering programs, raising funds, meeting with partners, working with your board and the many “all other duties as assigned” it is difficult to stay tuned in to and informed about all of the trends and activities taking place in the nonprofit and philanthropic sector that have an impact on our work.

There are many:

• Increased demand in the face of declining government resources
• Greater nonprofit regulation
• Growing class divides; increased first-time human service users
• Diversification of corporate structures to achieve social missions including the L3C

In my opinion (isn’t that the point of a blog), one of the most important issues facing our sector today is the debate over the income tax charitable deduction.  The Senate Finance Committee is currently reviewing this policy which dates back to 1917.  Here are some important details:

• In 2010, individual giving was nearly $212 billion out of $291 in total giving (individuals, foundations, corporations, etc.0

• The after-tax cost of giving is the value of the gift net of the amount of the tax benefits received.  For example, for every dollar given to a charity by an itemized taxpayer in the 28-percent marginal tax bracket, the after-tax cost of giving that dollar is 72 cents

• Studies include empirical evidence regarding the financial incentive for individual donors to give to charitable organizations
• Estate and gift tax charitable deductions could be disproportionately impacted by significant changes to the current tax policy

To learn more or keep up on this issue go to:  http://www.cof.org/templates/311.cfm?ItemNumber=18389&navItemNumber=16117#supercommittee

Question:  How are you weighing in on this issue?

Focusing on mission

This blog will focus on a variety of topics, subjects, issues and thoughts that are directly related to the mission of the BEST Project as well as nonprofits and funders.  BEST aims to build the capacity and sustainability of the Genesee County nonprofit sector.  This means providing a variety of education tools and programs for local organizations.

As many leaders in the sector know, cross-sector partnerships are critical to creating meaningful, systemic change in our communities regardless of the mission of your organization.  Many times people don’t fully understand the scope and reach of the nonprofit sector–from museums to homeless shelters 501c3 organizations are essential to our civil society.  The Michigan Nonprofit Employment report issued by the Johns Hopkins Center for Civil Society Studies in October 2010 helps paint an economic impact picture for the sector.  Here are some of the highlights to share with your board and donors:

• The nonprofit sector employees 11 times as many workers as Michigan’s vehicle manufacturing industry
•  In 2009, nonprofit employees contributed $90 million worth of personal income tax revenues
• Nonprofits in Flint employed 14.8% of private employees in 2009
• Nonprofit employment has continued to grow by about 1.3%

To read the full report go to :  http://www.mnaonline.org/CMDocs/MNA/Research/NED_Bulletin36_Michigan_2010.pdf