NY Appoints Task Force to Investigate How To Strengthen Nonprofits and Increase Compensation

That should have been the headline for the new task force. Instead, the Governor rolls out a new task force to "investigate the executive and administrator compensation levels at not-for-profits that receive taxpayer support from the state." All because of a few bad apples and an expose in the media, the nonprofit sector is bestowed with this helpful committee that will reform the apparent abuses across the sector. A sector where the majority of nonprofit directors make below $50,000. A sector that puts mission before profit and compensation. As NY Council of Nonprofits CEO Doug Sauer points out in the news interview below, what about a member of this very task force, who runs a nonprofit institution receiving NYS tax dollars, that is compensated at almost $2 million? Maybe the task force should look internally first. And what about for profit businesses who receive NYS tax dollar support and their employee compensation? That would keep the task force and the media very busy. It seems that the big picture was definitely missed here, including an opportunity to address these perceived longstanding compensation problems (like the small number nonprofit Execs who are being compensated at problematic and questionable levels). Let's look at these issues and address them, but let's look at the majority of the nonprofit sector and the low pay and other challenges (like NYS contract payments) that are the true problems. Let's strengthen our nonprofit sector with business operations support. Help them build better boards of directors, become entrepreneurial, attract the best and brightest people and provide the important services and programs we all depend on them for.

Breaking News on Nonprofits: Don't Miss The Brief About The Brief

We are all for raising the visibility of the nonprofit sector (although do you really think nonprofits don't have visibility?) and making the case for their impact and importance (which you would think would be easy). But sometimes you have to wonder about our drive in the nonprofit sector to think strategically. Here is a great example of some wonderful intentions to rally the troops and show how strong the human services sector is and its tremendous impact. But, a press release about a brief? Is this the call the action the sector needs? How about some grassroots nonprofit warfare? With great fanfare, we role out political machines and canvas neighborhoods across the US. Maybe its time for the nonprofit sector to take a page from the playbook of the very politicians that claim to represent the people, while touting drastic cuts to social and human services without hesitation. How about a nonprofit door knocking day across America? What could be more powerful than knocking on the doors of your community and telling them how your organizaton helps them. You can even leave them a copy of the brief to read at their leisure.

For Immediate Release

The National Human Services Assembly (www.nationalassembly.org) has released a brief entitled, Putting Human Needs on the National Radar Screen, a brief on messaging and collaborative action for nonprofit human service and community development organizations. The National Assembly is an association of more than eighty of the nation’s leading national nonprofit human service and community development organizations.

The impetus for the brief came from the board of the National Assembly and the National Collaboration for Youth, which is a part of the Assembly. Both groups saw that human services were among the first programs to be cut at both state and federal levels and that the public and public officials are not aware of the importance of these programs to vulnerable people.

The brief suggests language but also establishing new narratives about the collective contributions of related human service and community development programs.

“We either suffer death by a thousand cuts,” said Irv Katz, President of the National Assembly, “or we get more sophisticated about telling our story and more collaborative in demonstrating our collective impact.” “This is not about programs,” he added, “it is about human needs. Those needs are not on the nation’s radar screen currently and won’t be unless service providers and their allies take action to change that.”

Read the brief on messaging»

The Nonprofit Response to "Taxing": Ideas to Consider

The NY Times featured an article about the growing trend of municipalities turning to nonprofits to help plug budget holes by charging fees for services or asking for voluntary payments in lieu of taxes. But we really need to recognize this fee or payment for what it is: a form of taxation. It remains to be seen how nonprofits respond to this growing trend, but we can all see it is a train wreck in slow motion. The funds that these nonprofits now must allocate for such fees will come directly from general operations and programs. Nonprofits have already made significant cuts to preserve programs, so this will be their only choice now. What will the response be from people and communities already demanding more services and assistance?

How should nonprofits respond? What if these were the responses?

• Nonprofits relocate to more "tax" friendly locations- why not, real "businesses" do this everyday. What would the impact be on any city if some of its major nonprofits picked up and moved to another location in exchange for economic incentives, no "service" charges and a true partnership between the city government and the organization?



• Outsource our nonprofits- hey, why not? Corporations outsource our workers all the time. Let's try it in the nonprofit sector. Interested in seeking a direct service? I'm sorry, we don't offer that in person any more, but you are welcome to submit your symptoms in writing, and someone will be back in touch with treatment suggestions shortly. Looking to speak to someone directly? Use our auto attendant feature and get referred around from department to department. This should help nonprofits save some money and pay their fees.



• Charge a service fee of their own- It is interesting that the cities and counties would argue that nonprofits should pay a fee for services they take advantage of. Who do they think is going to pay for these fees? Donors and funders aren't going to okay their money covering these costs. They want to know their money is helping people and paying for programs. So, maybe nonprofits need to take the same approach and add their own service fees? Hey, that will be $1 service fee for restocking that library book. $2 toilet charge for use of the restroom at your local museum. Please make your check payable to your local city treasurer.



• Nonprofit strike-We all know that the nonprofit sector is made up of various types of organizations all carrying out their missions in different ways. Clear agreement on any one issue is somewhat hard to come by in the sector, but new developments like these fees can be a rallying point for all organizations. All nonprofits can see the writing on the wall, and what is happening with larger organizations will trickle down eventually. Why not come together as a sector and develop a true and visible response to how these fees will impact the sector? Maybe it is a well thought out campaign or some lobbying efforts, although this seems like much of the same old. Instead, how about a nationwide nonprofit strike? This isn't about unionizing, but about showing our friends, neighbors, communities and politicians how integral nonprofits are to their everyday lives. I can't think of anything more grassroots to do, but if you have an idea, post it here.

Do you have other ideas? Feel free to share them here. We would love to hear from you.