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»
Wednesday, July 27, 2011
Saturday, June 11, 2011
Strip Club and Dancers Lose Argument for Tax Exemption
Wonder why there is a negative perception about the nonprofit sector? What would you say if you found out an adult entrainment business in your city was tax exempt? Clearly there is a lack of understanding about the value and educational purpose that are the underlying focus of nonprofits. Case in point, an Albany strip club, Nite Moves, argued (with testimony from a cultural anthropologist who has studied exotic dance and visited Nite Moves) that lap dances should be considered choreographed performances (like ballet) and tax exempt.
Right, that makes sense. And why not argue this in the court system because this is an injustice that should be addressed. Too bad the courts (and everyone else...except for the Nite Moves owners) disagreed. As msnbc relates, four Appellate Division justices agreed with a state tax appeals commission's earlier finding that dances onstage or in private rooms at the club Nite Moves in suburban Albany don't qualify for a state tax exemption as "dramatic or musical arts performances."
Just what we need in the news, a strip club making an argument for not paying taxes and comparing themselves to a nonprofit cultural organization. This isn't just silly, it is outright nonsense. Hey Nite Moves's owners, what are those taxable dollars you so strongly are opposed to paying being used for, other than paying your attorneys? Did you know that nonprofits reinvest any revenue into their mission and programs? Here's a quick suggestion for your appeals case. Consider adding some adult dance classes and some outreach programs and emphasize how you serve the needy and unfortunate. Good luck.
Right, that makes sense. And why not argue this in the court system because this is an injustice that should be addressed. Too bad the courts (and everyone else...except for the Nite Moves owners) disagreed. As msnbc relates, four Appellate Division justices agreed with a state tax appeals commission's earlier finding that dances onstage or in private rooms at the club Nite Moves in suburban Albany don't qualify for a state tax exemption as "dramatic or musical arts performances."
Just what we need in the news, a strip club making an argument for not paying taxes and comparing themselves to a nonprofit cultural organization. This isn't just silly, it is outright nonsense. Hey Nite Moves's owners, what are those taxable dollars you so strongly are opposed to paying being used for, other than paying your attorneys? Did you know that nonprofits reinvest any revenue into their mission and programs? Here's a quick suggestion for your appeals case. Consider adding some adult dance classes and some outreach programs and emphasize how you serve the needy and unfortunate. Good luck.
Friday, May 13, 2011
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?
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.
Thursday, May 12, 2011
"Taxing" Nonprofits: Call It What It Is
The NY Times featured a recent story about the growing trend of municipalities developing or charging nonprofits service fees (aka taxes on certain services). Clearly this is a challenge for most nonprofits, especially as they struggle to address increasing needs, higher operating costs and decreasing funding and donations. It seems that nonprofits will likely cut services in response, especially since most have already cut everything possible in an attempt to preserve programs and services. What kind of impact this will have remains to be seen, but it feels like watching a train wreck in slow motion.
The article relates:
As recession-racked cities struggle to balance their budgets with everything short of feeling behind sofa cushions for loose change, a growing number are seeking more money — just don’t use the word taxes — from nonprofit institutions that occupy valuable land but by law do not pay property taxes.
Boston has been sending letters to its largest nonprofit institutions this year, telling them the value of their land and asking them to begin making annual payments that would eventually rise to a quarter of what they would owe if they paid property taxes. Mayor-elect Rahm Emanuel of Chicago wants the city to begin charging water fees to nonprofits, which have been spared them in the past. And the mayor of Providence, R.I., Angel Taveras, cited Boston’s example this month when he called on nonprofits to pay more money to the city.
Read more here.
The article relates:
As recession-racked cities struggle to balance their budgets with everything short of feeling behind sofa cushions for loose change, a growing number are seeking more money — just don’t use the word taxes — from nonprofit institutions that occupy valuable land but by law do not pay property taxes.
Boston has been sending letters to its largest nonprofit institutions this year, telling them the value of their land and asking them to begin making annual payments that would eventually rise to a quarter of what they would owe if they paid property taxes. Mayor-elect Rahm Emanuel of Chicago wants the city to begin charging water fees to nonprofits, which have been spared them in the past. And the mayor of Providence, R.I., Angel Taveras, cited Boston’s example this month when he called on nonprofits to pay more money to the city.
Read more here.
Monday, May 2, 2011
Taxing Nonprofits: What is the Impact?
Tim Delaney, President & CEO, National Council of Nonprofits, posted to Huffington Post about the recent issue of PILOTS in Boston.
As he relates: Leaders of nonprofit organizations across America were stunned by reports this week in the Boston Globe and NPR's Marketplace that the City of Boston would turn its back on the nonprofit cultural, educational, and health care institutions that have played such vital roles in making that city great.
What stunned nonprofit leaders nationwide is that Boston sent letters essentially mandating that various nonprofits make "Payments-In-Lieu-Of-Taxes" (PILOTs) to the city based on the value of their property, even though Massachusetts law -- like the law in all 50 states -- prohibits local governments from taxing nonprofit property. What in turn shocked nonprofit leaders is how Boston intends to enforce its supposedly "voluntary" PILOT program: with a Scarlet-letter campaign designed to coerce compliance with the city's demand for "voluntary" payments.
Boston has concocted an Orwellian program that uses euphemisms -- such as "PILOTs" instead of "property taxes" and "voluntary" instead of "coerced" -- apparently attempting to hide what is really happening to evade what the law prohibits. The city, knowing the courts would strike down as an illegal act any attempt to directly impose property taxes on charitable nonprofits, invented a program to coerce "voluntary" Payments-In-Lieu-Of-Taxes. But slapping on a misleading label to cover a bad act does not render it any more acceptable; a payment based on property value is still a tax.
To enforce its legally unenforceable program, Boston has threatened to paint a Scarlet letter of shame on every nonprofit that does not comply with the city's demands for payments. Such coercion to obtain what the Commonwealth's law prohibits is outrageous and threatens everyone; who's next, when Boston -- or any government -- wants something the law prohibits?
The city's program also disregards unique aspects of nonprofit law, thus putting coerced nonprofits at risk of running afoul of the Massachusetts Attorney General, who has jurisdiction to oversee that funds donated to nonprofits are used as donors intend. By demanding that nonprofits pay the city 25 percent of their property's tax value, the city is whipsawing nonprofits, putting them in a lose-lose dilemma: either undergo the city's shameful public branding, or cave in to the city's demands to pay, only to have the Massachusetts Attorney General come after the nonprofit if donors complain that they gave their money for purposes other than transfers to the city treasury.
In trying to balance its budget on the backs of people served by charities and those who donate to them, Boston has disregarded not only the law, but also fiscal reality. The recession already has stretched nonprofits too far financially as demands for their services have skyrocketed while their revenues have nosedived, with corporate contributions declining, foundation grants down, and governments delaying payments and not paying full costs on legally-binding contracts. According to the IRS, even individual giving has sagged by 20 percent. Read more here.
As he relates: Leaders of nonprofit organizations across America were stunned by reports this week in the Boston Globe and NPR's Marketplace that the City of Boston would turn its back on the nonprofit cultural, educational, and health care institutions that have played such vital roles in making that city great.
What stunned nonprofit leaders nationwide is that Boston sent letters essentially mandating that various nonprofits make "Payments-In-Lieu-Of-Taxes" (PILOTs) to the city based on the value of their property, even though Massachusetts law -- like the law in all 50 states -- prohibits local governments from taxing nonprofit property. What in turn shocked nonprofit leaders is how Boston intends to enforce its supposedly "voluntary" PILOT program: with a Scarlet-letter campaign designed to coerce compliance with the city's demand for "voluntary" payments.
Boston has concocted an Orwellian program that uses euphemisms -- such as "PILOTs" instead of "property taxes" and "voluntary" instead of "coerced" -- apparently attempting to hide what is really happening to evade what the law prohibits. The city, knowing the courts would strike down as an illegal act any attempt to directly impose property taxes on charitable nonprofits, invented a program to coerce "voluntary" Payments-In-Lieu-Of-Taxes. But slapping on a misleading label to cover a bad act does not render it any more acceptable; a payment based on property value is still a tax.
To enforce its legally unenforceable program, Boston has threatened to paint a Scarlet letter of shame on every nonprofit that does not comply with the city's demands for payments. Such coercion to obtain what the Commonwealth's law prohibits is outrageous and threatens everyone; who's next, when Boston -- or any government -- wants something the law prohibits?
The city's program also disregards unique aspects of nonprofit law, thus putting coerced nonprofits at risk of running afoul of the Massachusetts Attorney General, who has jurisdiction to oversee that funds donated to nonprofits are used as donors intend. By demanding that nonprofits pay the city 25 percent of their property's tax value, the city is whipsawing nonprofits, putting them in a lose-lose dilemma: either undergo the city's shameful public branding, or cave in to the city's demands to pay, only to have the Massachusetts Attorney General come after the nonprofit if donors complain that they gave their money for purposes other than transfers to the city treasury.
In trying to balance its budget on the backs of people served by charities and those who donate to them, Boston has disregarded not only the law, but also fiscal reality. The recession already has stretched nonprofits too far financially as demands for their services have skyrocketed while their revenues have nosedived, with corporate contributions declining, foundation grants down, and governments delaying payments and not paying full costs on legally-binding contracts. According to the IRS, even individual giving has sagged by 20 percent. Read more here.
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