Council of Nonprofits in the News

OMB increases indirect cost reimbursements for nonprofits

February 1, 2014

It’s also hoped the acknowledgment by OMB will get the attention of corporations and foundations whose grants funding still operates under the 7-10 percent indirect costs principle. Conversations and policy changes about these issues are already happening in leading-edge philanthropic organizations.

To benefit fully from the new guidelines, nonprofits advocate the National Council of Nonprofits recommends nonprofits up their game in several areas.

First, they must be able to accurately identify and track their real overhead costs. Second, they’ll need to develop the skills for negotiating higher reimbursement rates with government organizations. Third, since no additional monies were added to available government contracts and grants funding with the new guidelines, nonprofits must “become more adept at advocacy on appropriation and tax matters.”

Short on Revenue, State and Local Governments Exert Pressure on Nonprofits

January 27, 2014

Maine Association of Nonprofits"A lot of us on the task force kept saying we are sympathetic to municipalities with financial struggles, but we don't feel the nonprofit sector is the appropriate source of revenue to relieve those pressures," Brenda Peluso, director of public policy and operations at the Maine Association of Nonprofits, told Tax Analysts. "It's really just taking money and putting it in another pocket."


North Dakota Association of Nonprofit OrganizationsIn North Dakota, a similar bill (HB 1380 (Doc 2014-125)) would allow municipalities to levy special assessments on tax-exempt nonprofits for safety and emergency services. It was defeated in the House, but the taxation committee has expressed interest in revising the bill for consideration during the 2015 legislative session, said Dana Schaar Jahner, executive director of the North Dakota Association of Nonprofit Organizations.


Donors ForumDelia Coleman, director of public policy and strategic communications at the Donors Forum, an Illinois association of nonprofits, said that nonprofits earn their tax-exempt status through the work they do in communities, helping those who fall through the cracks of the government's safety net.

Tinkering with that status would endanger their work, she said.

"With the decrease in funding that nonprofits have experienced over the past five years due to the recession, going after nonprofits for revenue really endangers the stability nonprofits provide for communities," Coleman said.


"We feel we are being attacked from all directions," David Thompson, vice president of public policy at the National Council of Nonprofits, told Tax Analysts. "States are reevaluating their tax policies and looking at nonprofits. We see the frantic money grabs. They don't want to raise property taxes, so they ask who we can raise taxes on."

Charitable nonprofits: A little take, a lot of give

January 26, 2014

Charitable nonprofits raise property values, increase the quality of life and generally take up 5 to 10 percent of a tax base, a relatively small amount, said David Thompson, National Council of Nonprofits vice president of public policy.

They also often are contracted to provide services the government cannot.

"Our strong view is that cities do better because of nonprofits, not despite nonprofits," Thompson said. "In many ways we reduce the burden on the government."

New nonprofit alliance will have big impact in Florida

January 25, 2014

There are 36 other states that already have a statewide organization recognized by the National Council of Nonprofits and Florida is finally getting our own. It’s ridiculous we haven’t been one of the national leaders.

This statewide alliance is going to have a huge impact on all nonprofits in Florida and I strongly urge you to check them out at www.flnonprofits.org and follow what they are doing. Better yet, get involved and make it all happen.

Health Groups Get Paid On Time

January 20, 2014

Nonprofits were owed, on average, more than $200,000 for services provided to state governments in 2012 and nearly a third of nonprofits reported receiving late payments from governments.

The results are from the “Nonprofit-Government Contracts and Grants: Findings of the 2013 Survey,” a collaborative project of The Urban Institute’s Center on Nonprofits and Philanthropy and the National Council of Nonprofits, with funding from the Bill and Melinda Gates Foundation. Included were nonprofits that are required to file a Form 990 and have more than $100,000 in expenditures, with more than 4,000 organizations completing the survey. Results were weighted to represent all nonprofits that had contracts and grants with government agencies in 2012.

5 reasons candidates should listen to nonprofits

January 15, 2014

Did you know that nonprofit workers represent 10 percent of the work force? That’s a whole lot of voters who care about a whole lot of causes. According to the National Council of Nonprofits, “In 2010, nonprofits employed 13.7 million Americans, or about 10% of the work force. In fact, if the nonprofit sector were a country, it would have the seventh largest economy in the world. In 2010, 9.2% of all wages and salaries paid in the U.S. were from nonprofit organizations and the nonprofit sector represented 5.5% of the GDP in 2012.”

And just in case there is any remaining doubt, nonprofits can engage in advocacy and getting out the vote—for many nonprofits, it is part of their mission.

Federal Grantees to Get Help With Overhead Costs

January 9, 2014

The Office of Management and Budget said it considered higher rates, but that it picked a “conservative” amount “to protect the federal government from excessive over reimbursement.”

Before the new budget office rule, charities were “getting bupkis” for their overhead costs from the government, said David Thompson, vice president of public policy at the National Council of Nonprofits, an umbrella group for charities.

Mr. Thompson said that while he thinks the change is needed, the 10-percent rate is still well below the overhead rate at many nonprofits. A more “rational” level, he said, would be between 20 and 40 percent.


Donors ForumMs. Hughes is in what Delia Coleman called a “double vise,” struggling to serve the needy with fewer federal dollars while facing debilitating “overhead constraints.” But Ms. Coleman, director of public policy at Donors Forum, an Illinois nonprofit advocacy group, added that the new rule “eases the strain somewhat” on nonprofits.

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