Nonprofit Advocacy Matters | March 9, 2010

Welcome to the newly redesigned newsletter of the National Council of Nonprofits: Nonprofit Advocacy Matters. We hope you will find this new look helpful and easy to navigate. Also, please visit our newly redesigned website, add it to your favorites, and check back often for developing policy news. 

Progress on Jobs Bills

With House action last Thursday, both chambers have now passed versions of a narrow jobs bill, H.R.2847, which would, among other things, provide incentives for nonprofit and for-profit employers to hire individuals who have been unemployed for at least 60 days. The House altered the Senate-passed version, so now the bill goes back to the Senate for further approval or revision. Before acting on that measure, however, the Senate is seeking this week to complete its work on the American Workers, State and Business Relief Act of 2010  (H.R.4213). That legislation contains several components that would benefit many nonprofit organizations, including extension of the IRA rollover and other charitable giving incentives through 2010 and temporary funding relief to nonprofit and for-profit sponsors of defined benefit pension plans. The bill would also provide an additional six months of federal payments to the states to cover Medicaid costs and extend unemployment insurance and COBRA benefits through 2010. See the National Council website for more information.

Health Care Debate Moves Toward End Game

The President is urging Congress to pass the health care reform bill by March 18, and, in a recent address, is calling on Senators to forgo a filibuster and give the bill an up-or-down vote. The procedure for final passage of the bill will be a challenge. First, the House must approve the Senate bill that passed on Christmas Eve last year. Then Senate Democrats must pass a package of financial fixes to the bill using the process known as "budget reconciliation" that cannot be filibustered and requires only a simple majority to pass. This fix package would then have to be agreed to by the House.

Under this scenario, the final legislation would include the credit for small employers to help them provide health coverage for employees. The credit would allow, in Phase I (2011-2013), small nonprofit employers to take a credit (in the form of 25% of the employer contribution) and apply that credit to taxes withheld through payroll (and employees would still get full credit for taxes withheld from their pay). In Phase II (2014-onward), the amount would increase to 35%. Read more.

House Ways and Means Chairmanship Changes

Rep. Charles Rangel (D-NY) stepped down as Chairman of the powerful House Ways and Means Committee in response to an ongoing investigation by the House Ethics Committee. Rep. Sander Levin (D-MI) has assumed the role of Acting Chairman and is expected maintain the policy priorities that Rep. Rangel had initiated. Kyle Caldwell, President of the Michigan Nonprofit Association, said, "Sander Levin's experience, compassion, and keen understanding of the impact of tax policy on the work of nonprofits will serve Michigan and the nation well." The Ways and Means Committee is responsible for overseeing federal revenue measures, federal social safety net programs, and is central to the debates on such priorities as job creation, economic development, and health care reform.

CENSUS 2010: Stand Up and Be Counted, Urge Others to Do the Same

April 1st is National Census Day. By the middle of this month, census forms will be showing up in mailboxes throughout the country giving individuals the opportunity to be counted. Nonprofits have a stake in making sure every person completes and sends in the Census form. Nearly $377 billion dollars are allocated based on census numbers. This federal funding goes to programs such as heating assistance, childcare, and the State Children's Health Insurance Program. Nonprofits are often an important point of contact for individuals who are likely to be missed by the Census. Visit Nonprofits Count, an initiative of the Nonprofit Voter Engagement Network, for more information and useful resources.

The Big Reset: State Budget Crises and Tax/Spending Overhauls

Late last month, the National Governors Association (NGA) declared, "The long climb toward recovery of state fiscal health has not yet begun, and this has prompted urgent efforts to redesign and downsize government." In a compelling report, The Big Reset: State Government After the Great Recession, the NGA chronicles the crises in the states and the need for fundamental reforms. According to NGA, "In some instances, this has given states an opportunity to enact needed changes that have been avoided during prosperous times. But in other cases, it has prompted hard choices on the best way to 'cut to the bone' while doing the least harm to state competitiveness and quality of life." The report concludes with a call to action: "Governors, legislators, and citizens all need to be engaged in…efforts to redesign state government" to "meet the new austere realities."

Kansas Legislators Debate Eliminating Sales Tax Exemptions

With a $416 million dollar budget shortfall, legislators in Kansas are debating whether to repeal sales tax exemptions granted to nonprofits. It has been estimated that the provision will bring in $182 million; approximately $42 million will be paid by nonprofits.

Local Government Cuts Funding to Nonprofits

This week, Sioux Falls, SD is cutting funding for nonprofits by 15%. Despite February revenue collections exceeding projections, city officials are still concerned about a long-term downward trend. Officials have stated that funding will be restored as revenues continue to increase and return to normal levels. It remains to be seen how long the cuts will remain in place. Similar cuts are happening in Pensacola, Florida, and York County, Virginia. Local officials in those locations have struggled to maintain revenues and are looking to make funding cuts to their budgets.

Colorado's High Court Rejects State Campaign Contributions Ban

Colorado's Supreme Court rejected a voter-approved measure to bar holders of large, no-bid government contracts from making campaign contributions. The 4-1 decision comes weeks after the U.S. Supreme Court turned federal campaign-finance law on its head in the Citizens United Case.  The Colorado court's rejection of the state's ban on campaign contributions will allow businesses, unions, and other government contractors to donate freely to state political campaigns. Read the National Council of Nonprofits analysis of Citizens United v. FEC.

Tucson: Together They Did

Tucson nonprofits aren't just complaining about budget cuts; they are doing something about it. When nonprofit leaders expressed concern about how proposed budget cuts would harm the people they serve, the City Manager had asked the nonprofit community to suggest an alternative way for the city to consider human services funding in light of reduced revenues. Working together, community nonprofits and the city developed a three-tiered plan to prioritize resource allocation. This effort outlines a new path for elected officials and nonprofits to take to create a better model for service delivery. This editorial encourages council members to adopt the plan.  

Advocacy Remains a Great Investment

In Los Angeles, each foundation dollar spent on advocacy generated $91 in tangible benefits, according to a new report by the National Committee for Responsive Philanthropy. The report examined the organizing, advocacy, and civic engagement of 15 organizations in Los Angeles County between 2004 to 2008. The research is part of NCRP's Grantmaking for Community Impact Project, which is designed to demonstrate the return on investment for nonprofit advocacy grant funding. Previous reports have examined the positive return on investments for policy work by nonprofits in Minnesota, New Mexico, and North Carolina.  

Other News

The Budget Crisis and You: Participate in Landmark Survey on Government Payments to Nonprofits

Many nonprofits (randomly selected across the country) will soon be receiving a survey from Washington State University asking about the impacts of government budget cuts, late payments, and other contracting challenges. Visit our website for more information.

Complete the Survey! If your organization receives the randomly distributed survey, please complete and send it in. Your voice matters.

Supply Information! Even if your nonprofit does not receive the survey, you can still help by sending the National Council information about your experiences with government contracts and grants - late payments, late contracts, changed terms, or anything else. Contact Chris Conkey.