Across the Country State Governments Are Placing Extraordinary Burdens on Nonprofits

On March16, the National Council of Nonprofit released a special report documenting how states are delaying contract payments to their nonprofit partners, slashing funds for essential programs, and imposing new fees and taxes on 501(c) (3) organizations. The report suggest and encourage the leaders of governments and the nonprofit community to work together to help solve the problem created by governmental financial crises.  special report

Boston is Working on Plans to Significantly Increase Payments  Nonprofits Make for Government Services They Use

A Boston mayoral task force will begin final work Tuesday on a plan to significantly increase payments nonprofit institutions make voluntarily to finance government services they use, The Boston Globe reports.

The city wants major tax-exempt organizations to gradually increase their payments for city services to 25 percent of what they would owe in property taxes. Nonprofit leaders said that the 25% target would hurt them and force layoffs and reduction of services at hospitals, universities, and charities. The city responded by suggesting that nonprofit institutions could soften the financial burden by covering up to half their payments through free community services, such as  health screening or scholarships.

It is important for all nonprofit leaders to take a real close look at the Provena Covenant Medical Center v The Department of Revenue ruling.

In the Provena case, the Illinois Supreme Court upheld the right of Illinois to deny a hospital tax exemption deduction on the ground that the hospital had failed to provide sufficient charitable work. The central issue in this case is whether Provena Hospitals established that it was entitled to a charitable exemption under section 15–65 of the Property Tax Code (35 ILCS 200/15–65 (West 2002)) for the 2002 tax year for various parcels of real estate it owns in Urbana. In the opinion it was detailed that the Illinois statute, eligibility for a charitable exemption under section 15–65 of the Property Tax Code (35 ILCS 200/15–65 (West 2002)) requires not only charitable ownership, but charitable use.

Always Keep Your Eye on Your purpose

Up to 25% of Nonprofit Group Could Lose Charity Status

According to The New York Times up to 25% of nonprofit groups could lose charity status as of May 2010. The Pension Protection Act of 2006 includes a requirement that all charities file tax forms and directs the Internal Revenue Service to revoke exemptions for groups that fail to file for three years in a row. The three-year deadline falls on May 15. Charities that had annual revenue of less than $25,000 in the pass were excused from filing tax forms. The IRS has sent out hundreds of thousands letters to potentially affected groups since the bill’s passage. It said it will probably not issue revocation notices until January to give nonprofits a chance to file the required documents.

Michigan Nonprofit Groups Protest Detroit Hospital Sale

In the March31, 2010 issue of Philanthropy Today it was reported, a trio of Michigan groups active on health and legal issues is raising objections to the proposed sale of the Detroit Medical Center to a for-profit company, reports the Detroit Free Press. In a letter to the state’s attorney general, the Michigan Universal Health Care Network, the local clergy charity Moses, and Michigan Legal Services contend the planned purchase by Nashville’s Vanguard Health Systems violates state law and threatens continued care for the poor. The Attorney General Mike Cox must approve the deal.

· $75-Million Gift Will Help Start New Southern Calif. Hospital

The telecommunications mogul Irwin Jacobs and his wife, Joan, have pledged $75-million to the University of California San Diego to launch a new hospital project, The San Diego Union-Tribune reports. The university announced plans Thursday for the $664-million, 245-bed facility next to its existing Thornton medical center in La Jolla, Calif. The Jacobs Medical Center will focus on maternity and infant care, cancer treatment, and advanced surgery.

· Bloomberg Is Quietly Ending a Charitable Program

The New York time reports that Mayor Michael Bloomberg, New York City’s richest man and biggest philanthropist, is quietly pulling the plug on an unusual program that poured nearly $200 million of his fortune into nonprofit groups across five boroughs, in a sign of major change under way in his charitable giving plans.

Since he was first elected mayor in 2001, Mr. Bloomberg has provided money to hundreds of mostly small neighborhood, arts and cultural groups through the Carnegie Corporation of New York, a philanthropic trust.

· N.J. charity scam, honed for skeptics, shut down

An April 1, 2010 post in the reported on a N.J. Charity scam which was shut down. A pair of New Jersey businessmen ran a massive, nationwide telemarketing scheme designed to enrich themselves while collecting money for police, firefighters, and military veterans. The Federal Trade Commission and U.S. Justice Department said Wednesday that they had finally put an end to the lucrative scheme engineered by the two men, Scott Pasch and David Keezer. To settle civil charges against them, Pasch and Keezer agreed to a lifetime ban on telemarketing and soliciting for charities, the FTC said. And the two men and their companies also agreed to pay $18.8 million in civil penalties – the most in FTC history, the agency said. No criminal charges have been filed.


Quotes of the moment

“The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy.’” -Martin Luther King, Jr.

“None of us is as smart as all of us.”, “That is good because the problems we face are too complex to be solved by any one person or any one discipline.”- Warren Bennis

“A successful man is one who can lay a firm foundation with the bricks others have thrown at him.” -David Brinkley

“The difference between an obstacle and an opportunity is our
attitude towards it. Every opportunity has a difficulty, and
every difficulty has an opportunity.” — J. Sidlo Baxter

If you know of any nonprofit organizations doing great work offering hope for the hopeless, please sent me an email. The organizations may get mention in a later post or may even get listed as a resource on my web site. Please take a look at my newsletter for other tips, resources and valuable information.

If you know of resources that you think would be helpful to other, please forward their contact information so that we can share it. Keep checking back here for more information, ideals and comments as we moved forward in these tough times.

See you soon!


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