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Nonprofit Advocacy Matters | January 3, 2012

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January 3, 2012
2012: Collective Eyes, Ears, and Voice on Policy Opportunities/Challenges
This past Sunday many of the almost 40,000 new laws enacted in the 50 states last year became effective. That list will begin growing even longer soon as most state legislatures reconvene in the coming weeks.
 
As regular readers of Nonprofit Advocacy Matters know, in 2011 nonprofits throughout the country won most legislative battles at the state level over tax-exemptions, lost ground on government funding for programs that serve individuals and communities, and made progress in strengthening the government-nonprofit relationship in many states. In a growing number of communities, municipal leaders sought new taxes, fees, and payments in lieu of taxes (PILOTs) to fill holes in their budgets; some proposals were adopted, while many others were withdrawn once policymakers heard from and recognized the true value of nonprofits.
 
In 2012, Nonprofit Advocacy Matters will continue sharing information about significant public policy trends and legislative proposals at the federal, state, and local levels that impact the work and operations of nonprofits. We ask for your help in covering the nonprofit policy news of this very large country. Let us know of policy proposals – good and bad – that you think deserve attention, as well as advocacy success stories that will inspire nonprofit colleagues to join in the effort to advance the vital role, capacity, and voice of charitable nonprofit organizations.
 
Federal Issues
 
Tax, Spending Policies Loom in the New Year
The last issues before Congress in 2011 and the first for the new year are the same: how to continue a payroll tax cut, extend unemployment and food benefits, and delay cuts in Medicare reimbursements, as well as how to pay for them all. Each of the issues impacts the work of nonprofits, whether as employers or service providers for affected populations. On December 23, Congress passed a $33 billion package that extends existing law for two months, giving lawmakers more time to try to work out year-long funding solutions and policy questions.
 
State Issues
 
Taxes, Fees, and PILOTs Update
New York Approves Benefit Corporations 
Governor Andrew Cuomo recently signed legislation making New York the seventh state to recognize benefit corporations, a legally distinct type of for-profit business corporation that is committed to accomplishing one or more social or public purposes. Under this corporate form, the directors are protected from liability for decisions that further the social mission, even if the decisions impair profitability.The new law will take effect in February of 2012, following similar laws in California, Hawaii, Maryland, New Jersey, Vermont, and Virginia.
 
California Parks: Nonprofits/Funders Providing Short-Term Help or Enabling Long-Term Avoidance?
New concerns have arisen about the long-term implications for California’s state parks, which nonprofit and philanthropic groups saved from closure by stepping in to rescue several in response to extreme cuts in state funding in 2011. A spokesman for the California State Parks Foundation expressed concern that nonprofits’ sudden responsibility for the parks will make it even easier for the state to cut funding in the future. In response, the Assembly Member who sponsored the legislation permitting takeover by nonprofits acknowledged that the legislation was just a solution to an immediate problem that still requires long-term planning. 
 
Nonprofits on Positive Side of Cost/Benefit Analysis
In what is a surprising opportunity and departure from the attitude of local policymakers in Pennsylvania toward nonprofit property taxes and PILOTs, the McKeesport City Council is considering adopting separate leasing requirements for for-profit and nonprofit organizations renting property from the city. "The nonprofit community is struggling, and if some of these groups pay rent, it'll hurt the other work they're doing in the community," said the city administrator. The Council’s president will provide a lease proposal that includes set rates and possible nonprofit exemptions in March.
 
 
Advocacy in Action
 
The Word Is Out About Nonprofit Impact
At a December breakfast meeting with lobbyists and lawyers, U.S. Senator Claire McCaskill (D-MO) was asked about her personal involvement with charitable nonprofits in her community. She named a few programs she supports financially and discussed a favorite volunteer experience. Then she stopped, looked at the lone nonprofit representative in a room of special interest lobbyists, and said:

Let me know what I can do to help nonprofits. Nonprofits are tremendous job creators. They are vital to our economy and we are relying on them to pick up the slack.
 
Apparently, the word about nonprofit impact is getting out. Someone needs to hand that Senator a bullhorn to help her spread that basic truth.