This morning, the Center for Effective Philanthropy (CEP) published this analysis, “A Note of Gratitude and a Word of Warning,” by Tim Delaney, President & CEO of the National Council of Nonprofits. Tim’s piece responds to three findings in a recent CEP report, State of Nonprofits 2023: What Funders Need to Know.

Tim uses CEP’s first finding, that “more than half of the nonprofit leaders [that CEP] surveyed experienced easier application processes and reduced reporting requirements” last year, to urge more funders to broaden and deepen these improved practices. He adds more details to support CEP’s second finding, that “staff-related issues were the biggest challenge” facing nonprofit organizations, while also reframing the data to focus attention on what happens to the public when nonprofits don’t have enough staff. Finally, Tim pushes back on CEP’s third finding, that nonprofits are supposedly doing fine financially, by citing multiple objective data points showing that nonprofits face increasing workloads due to the public seeking more services, as well as increasing financial pressures due to both higher costs and decreased revenues. Read the article for data and framings you can use.

BoardSource’s Leading with Intent Survey of Nonprofit Board Practices is open until July 31, 2023. The resulting report will highlight leadership transitions; diversity, equity, and inclusion on the board; and the impact of COVID-19 on board culture. Nonprofit chief executives and board chairs are invited to participate to help inform new educational resources and better understand nonprofit board leadership practices, trends, and norms within the field.

New Laws Affecting Nonprofits

July 1 marked the beginning of the new fiscal year in 46 states and the start date on several new laws of interest to charitable nonprofits:

• Audit Threshold: The threshold for mandated audits of charitable nonprofits went up in Connecticut and Mississippi, while new, higher thresholds in Illinois and New Mexico will go into effect at the beginning of 2024. [See NCN’s State Nonprofit Audit Requirements page, which posts all state audit laws]
  
  
• Data Privacy: Many states have enacted data privacy laws over the past two years that provide protections for individuals and impose mandates on how various entities store and utilize personal data. Colorado’s new law applies to nonprofits while the Connecticut statute exempts charitable organizations.
  
  
• Employment Policies: States have enacted several new employment policies including paid leave (Minnesota), retirement security (Vermont), paid time off to vote (Georgia), and disclosure of the use of artificial intelligence in the hiring process (New York City).
  
  
• Minimum Wages: Nevada and Oregon increased their state minimum wage rates, and Virginia amended its minimum wage requirements for employees with disabilities.
  
  
• Taxes: Indiana now requires nonprofits that conduct sales on more than 120 calendar days per year to collect and remit sales tax.

Record-breaking heat, severe drought, raging wildfires, dense smoke, intense floods, devastating tornados: every part of the country – and much of the world – is being hit this summer with life-taking extreme weather of one kind or another. While no person or community is safe from its effects, “the most severe harms from climate change fall disproportionately upon underserved communities who are least able to prepare for, and recover from, heat waves, poor air quality, flooding, and other impacts,” according to the U.S. Environmental Protection Agency.

Since we published an article last year urging all nonprofits, regardless of mission, to consider their action steps on climate change, there’s some reason for hope. For example, among hundreds of billions in new federal climate spending enacted since our article ran, a new federal grant program, Renew America’s Nonprofits, will provide $45 million in funding to reduce energy use in buildings owned and operated by 501(c)(3) nonprofits.

Applications are due on August 3 from 501(c)(3) nonprofits to become Prime Recipients (which will receive the grant funds and subaward to other nonprofits and partners). If your nonprofit qualifies for support, it’s not too late to join the “Teaming List” on the main program page to connect with others in your community and potential Prime Recipients. You can also find FAQs there. For application information, recorded webinars, and contact information, visit the Funding Opportunity Announcement page.

These funds will support nonprofit building owners in creating healthier spaces, reducing emissions, and lowering their energy bills so the savings can be redirected to their mission-critical work.