MNA President & CEO Donna Murray-Brown on the Impact of the Government Shutdown on Nonprofits

Shutdown Image

When the federal government shut down last Tuesday, no one ever thought it would be shut down for more than a couple of days.  As we go into the second week of the shutdown, there has been great impact to the nonprofit sector’s ability to do their work.  Nonprofits are experiencing increased demand for services, stalled payments on government contracts, inability to conduct routine data inquiries, uncertainty of how to engage with their AmeriCorps members, and difficulty in their continued ability to employ staff.

With nearly 30% of nonprofits receiving revenues from government contracts, stalled payments from government contracts are placing a huge strain on nonprofits to meet the needs of their communities while keeping their doors open.  Additionally, the impact of sequestration, a fragile economy, and now thousands of government employees suddenly without income, nonprofits are becoming further strained in fulfilling their missions.

Simple daily activities such as internet searches for data and information on government websites are now impossible due to the shutdown rendering the websites inoperable. The U.S. Census Bureau, one of the “go to” websites, is no longer available to assist a nonprofit in gathering key demographic information to make decisions on every day work, future planning, and creating strategy.

Many nonprofits leverage national service programs to build capacity or provide direct service to those they serve.  Just last week, the Corporation for National and Community Service informed AmeriCorps members across the country they are required to serve during the shutdown, but without any compensation.  AmeriCorps members already receive a modest stipend for their service and, as a condition of their service commitment, are not able to hold a second job while serving.  This has become problematic for national service members because they find it increasingly difficult with each day of the shutdown to feed themselves and pay for housing.

As the days and weeks of the government shutdown continue, the aforementioned challenges will only become greater.  Nonprofits must brace themselves for additional trials and the reality of making painful decisions that may compromise the quality of their programs and services.  Decisions such as whether to buy much needed supplies and equipment, whether to forego important training and professional development, and ultimately, making decisions pertaining to staffing.

Making a decision regarding staff may become a reality for some nonprofits heavily reliant on government funding.  Understanding your legal options is key to making the best decision during this time of uncertainty.  Nonprofit HR, an organization providing guidance to nonprofits on Human Resources related topics and issues, is a great source for nonprofits faced with making decisions regarding staffing. Visit their website at http://www.nonprofithr.com/wp-content/uploads/2013/09/Legal-Considerations-in-Layoffs_final_2013.pdf.

If you are experiencing challenges linked to the government shutdown either similar or dissimilar to that I have highlighted, I want to hear from you.  Please email me directly at dmurray-brown@mnaonline.org.

Donna Murray-Brown Submitted by Donna Murray-Brown, President & CEO, Michigan Nonprofit Association

8 Revelations from a SuperConference 2012 Participant

What a privilege to be able to attend the MNA CMF SuperConference!  I was inspired and energized, learned a great deal of information and met new people with whom we can build relationships.  That is everything you could ask and more from an intense two day experience.

Revelation 1 came from a workshop led by Kid’s Food Basket from Grand Rapids.  They call themselves a “porous” organization, one that someone can enter from any point and get involved.  Not only do they leverage volunteer time, they have involved their volunteers financially to use their myriad volunteers as an income source.  Arts & Scraps has many common elements in mechanics and volunteer involvement, but we have not to date formalized programs for financial as well as time contributions.

Revelation 2 came from the Prize Foundation session.  Remember to look for unlikely and unknown sources for ideas and expertise.  Don’t be afraid to tackle big issues and throw open the doors to seek help.

Revelation 3 came from the advocacy preconference session.  “Keep laser-like focus on long term goals”.  Involve people around their interests and look for commonalities.

Revelation 4 came from the Impact session.  Keep a “burning patience”, nurture the backbone of your organization with optimism and perseverance to reach the goal of a successful collective effort.  I’ve often thought the best attribute to have is just plain stubbornness.  This is a much more elegant statement.

Revelation 5 also came from the  Impact session.  There is no silver bullet, just silver buckshot.  Again, an elegant phrase.

Revelation 6 on a personal level, from the Investment session, I recognized that  I’m fortunate enough to have a savings account.  I could invest that in causes in which I believe and put that money to work for social good.

Revelation 7 from the Creativity session:  a couple of wonderful tidbits.  “Money never solved a money problem”—enough said.  Don’t save creativity for big problems, rely on group input and repeat priorities often.

Revelation 8 is back from Kid’s Food Basket.  Make your MISSION seem needy without making your ORGANIZATION seem needy.

Add to this list of big ideas 6 viable contacts for serious follow up and a list of 18 items in a to do list generated by ideas.

This was a very successful two days!  Thank you to the Ford Motor Company Fund for the sponsorship.  I was so excited about it that I probably told 20 people that’s how I was able to attend.  It was a good investment in our organization.  We’ve had the first staff meeting with another scheduled next week.

Submitted by Peg Upmeyer, Director of Arts & Scraps and Superconference 2012 Attendee

A Few Thoughts on Election History on Primary Election Day

This week marks the 47th anniversary of the Voting Rights Act.  This act prohibits discriminatory voting practices that have been responsible for the widespread disenfranchisement of millions of people over the course of U.S. history.

While our nation has made multiple strides in the area of voting rights, in recent months we have seen an increase in the number of laws that add barriers to voting.  These laws require specific forms of photo identification to be present to vote, reduce early voting in certain states, and make voter registration done by nonprofits and civic organizations more challenging.   In Michigan, Governor Snyder vetoed bills that would have made voting in our state more complicated and disenfranchised thousands. In an effort to eliminate voter fraud, we have haphazardly created more barriers to voting. This ultimately reinforces what Voting Rights Act was attempting to prevent.

Voting is a right.  Removing barriers to voting and to make it more accessible is important. Nonprofits in Michigan are aiding in this process by participating in MNA’s 2012 Track the Vote. Not only do nonprofits see accessibly as an important part of electoral engagement, but government agencies do as well.

Recently, the National Association of Secretaries of States declared September 25th as National Voter Registration Day .  This announcement falls in line with months of coordination by nonprofits and civic organizations across the country who are already mobilizing people to register to vote on this day.

It is important to remember the history of voting in our country and acknowledge  the struggle that it took to get here.  It is equally important for all organizations, including nonprofits, to encourage legislation and policies that erase barriers to voting and encourage 100% voter turnout.

Finally it is important to vote, and you can start today!

Vote in today’s Primary Election.

Not sure where your polling location is for today’s primary visit the Secretary of State website .

Have questions about who is running, view the candidates here.

Remember all of the people who fought long and hard to guarantee us these rights. And don’t forget to vote!

Submitted by Meredith Reynolds Assistant for Public Policy and Membership, Michigan Nonprofit Association 

Despite differences, education is central to both State and Federal Budgets

These past few weeks have demonstrated the challenges of creating sound, effective budgets at the state and national level. The Michigan and federal budgets, however, paint two very different pictures of the health of their constituents.

The recession over the past four years has not been kind, but there seems to be a glimmer of hope in Michigan. After several consecutive years of painful cuts, it appears the financial outlook is more optimistic with 2012’s budget surplus. Education funding increased by 0.2%, public safety funding is also set to increase, and the “Rainy Day” fund will grow by an additional $130 million, according to the State Budget Office. At the Federal level, by contrast, the deficit still weighs heavily on programs most Americans take for granted, but rely on – the President offered a 52% decrease in Education, a 35% decrease in Labor, and slight increases for Health and Human Services (3.7%) and the Corporation of National and Community Service (1.3%).

Still, there are some common commitments between the two budgets, such as improving performance and affordability of education. President Obama promotes a ‘Race to the Top’ and links financial aid to universities that keep their tuition under control. Governor Rick Snyder also wants to link increased spending in education to improved performance, best practices, and college tuition restraint. And they are politicians from two different parties.

Despite the other differing priorities of the two budgets, it is clear that superior education for future generations must be a priority for education beyond high school. Whether it is community college, traditional four-year, or vocational – higher education has become increasingly important to achieve personal financial security.

Submitted by Michelle Eichhorst, Public Policy Fellow for Michigan Nonprofit Association

New Year, New Language

Going through my Twitter timeline after Christmas and before New Year’s Day, I found every single list imaginable for “year-in-review” or “what-to-expect in the coming year.” One that I actually read was #nonprofitresolutions that the Chronicles of Philanthropy was running, here is the link ow.ly/8e3O4.

Two things struck me about this list: 1) the nonprofit resolution from the executive director of the The Evergreen Group, Howard Kucher. He believes that nonprofits should call themselves “social benefit organizations,” instead of by their tax status. 2) That out of the 20 nonprofit leaders that were quoted, only three called for more advocacy and organizing! I kind of feel like these two things are somehow related.

My professional background (nonprofit lobbying and advocacy, and electoral campaigns) really identified with what Mr. Kucher was getting at! A change of language can change perception, both by those who adopt the label and by those hearing it. Maybe if organizations start calling themselves “social benefit” orgs, then it will force us to think of the things we CAN and SHOULD do, i.e advocacy and lobbying, instead of the things we can’t do based on the regulations we have to follow.

By changing the labels, it also allows organizations to think beyond their charitable missions, to ones that include the economic value and contribution of the organization beyond the direct benefit to their constituents and clients. Nonprofts Social benefit organizations need to show more than how many people go through their programs; they need to also show their greater value to society. Yes, I know you fed 200K families last year, but what does that mean? How does that impact the community that I live in?

Maybe by changing the language we use, the sector will finally start advocating and lobbying. It is a new year, so a girl can dream…

Submitted by Christina Kuo, Senior Director of Public Policy and Public Affairs for Michigan Nonprofit Association

Small Steps

Many advocates wonder if their efforts are making a difference. Those of us in the engagement business often measure success by the number of individuals who take action or by the various laws or policies that are changed as a result of our mobilization efforts. Then there are times when success is measured by what doesn’t happen or by extremely small, but extremely important, steps.

Making changes to Michigan’s redistricting process is one of those difficult mobilization efforts for which successful actions may be difficult to realize. The Michigan Redistricting Collaborative has been working hard to ensure that lawmakers seek the input of the public as the lines for voting districts are redrawn. A decade ago, lawmakers were working in private conference rooms to cut deals and draw maps to secretly preserve incumbencies among both Republicans and Democrats. Once finished, the maps were hastily passed through both chambers of the Michigan Legislature, quickly signed into law, and even debated in court filings before the entire process and map formulas became public.

Ten years later the overall process remains the same. The Legislature gets to draw its own maps provided it remains within the general rules laid forth by the Michigan Constitution, Michigan Supreme Court cases and those requirements provided for by the Voting Rights Act. Within these boundaries, demographers are helping politicians privately pick their constituents. Members of both parties are working behind the scenes to ensure they are not drawn out of their own district or pitted against a challenger in their own party.

And yet, we know this prior to the final decisions on the district lines, albeit barely before the critical votes. Many of my colleagues involved in the Michigan Redistricting Collaborative are frustrated by the lack of change in the system, the haste with which the Legislature and the Governor are moving to dispense this “insider’s game,” and the general lack of interest by the public in the dysfunctional nature of our Redistricting process in Michigan. So you ask, what did all our work accomplish? We accomplished what we asked our lawmakers to do: we increased the transparency of one of the most covert, public processes in Michigan.

At www.DrawtheLineMichigan.org you can see the media traffic over the past two months as lawmakers were asked how the maps would be drawn, what input the public would have on the process, which lawmakers would be making the decisions, and what the impact would be on vulnerable populations. Read the quotes from the leadership in the House and Senate where Senate Majority Leader Richardville and House Speaker Bolger were asked to explain how public comment would be sought and how this time, the process would be different. Look at the work that individual citizens did to draw their own maps using the common electronic media and public information tools available to anyone.

This week we will see quick passage of the legislation that will define the voting boundaries for Michiganders for the next ten years. While many may not like either the outcome or the process used, we can take solace in knowing that we brought the process into the light and injected the important principles of transparency, citizen engagement, competitive districts, and fairness into the debate over redistricting. These small victories may not be what many had hoped for in helping to form our more perfect union, but it’s an important start.


Submitted by Kyle Caldwell, president and CEO, for the Michigan Nonprofit Association.

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There is Danger in Not Raising Our Voice

As nonprofit leaders we live by the old farmer’s adage of, “Fix it up, use it up, wear it out, or do without.” Our adoption of this philosophy is what empowers nonprofits to gain trust and develop partnerships that further our mission. It works well, except in one area—expressing our voice.

Nonprofit voice is shorthand for our sector’s role in sharing what it knows, speaking for those unable to express their needs, and informing and influencing decision makers so that they do the right thing. In short, our voice is our right and responsibility to exercise our political capital for the common good. Yet it is often too hard to express our voice with so many pressures bearing down on our organizations, our work and our constituents.

Given all these pressures, we have to examine how we use our voice. Some might argue that like elected officials, we need to look at our voice as political capital—a resource we spend thriftily and only when absolutely necessary. In this case we might look at the Governor’s proposal to eliminate charitable giving incentives as $50 million that we could offer up as sacrifice to gain government goodwill. In other words, we shouldn’t expend our capital on this matter when so many other larger issues could come up later. Several sector leaders have come to me with this very concern. They worry that if they shout now, they won’t be heard later. Or they worry that they could jeopardize their friendly relationship with their elected officials.

These concerns are certainly understandable, but extremely dangerous. Here’s why.

First, nonprofit voice, unlike our own vocal chords, is a muscle that only works if exercised. Granted you want to be sure that you pick your battles. However, in my 15 plus years of experience in government/nonprofit interactions, I have never witnessed an elected or unelected government official respect and support an organization that stayed quiet during a hard political decision. Granted, some have been burned when they have handled their advocacy improperly and did not follow the rules, but there are none that I can think of that are respected for their complete silence. I know that some will dispute my conclusion on this, so I’ll explain why in my next point.

Second, the depth and length of the memory of goodwill in our political system is directly proportional to our term limits. No elected official today in Michigan has to worry about the long-term (15-20 years) consequences of their actions. Term limits guarantee that they will not be in office when the day of reckoning comes for their decisions. In addition, our state political bodies are largely controlled by the leadership rather than the caucuses. Large decisions are made by roughly six leaders in the House and Senate and the Governor. All the rest are waiting for direction and support.

Third, nonprofits have the privilege and responsibility to advocate for those unable to speak for themselves. This characteristic cuts across all 501(c)(3) nonprofits—we are charted with a charitable purpose to serve the common good. We are also constrained to be nonpartisan in our expression of voice. This makes for a power combination of benevolence and neutrality as we address Michigan’s most challenging issues. We all have to hold up these powerful characteristics whether a community foundation or a college, whether a food pantry or a hospital, whether a museum or a child daycare center, whether a senior living center or a land conservancy, we all have the responsibility and privilege to exercise our voice and advocate for the issues important to our constituents and the sector.

MNA recognizes that this is hard work and that little support exists to underwrite the time, talent and treasure it takes to advocate appropriately and effectively. That is why we give you the tools you need to make it easier and integrate it into your daily activities. Be sure to check out our website for our public policy & advocacy tools as well as our nonprofit resources that help you stay legal and ensure that your organization can effectively and legally share its voice. MNA has a platform you can use for your own organization to give a framework to your advocacy. You can also participate in our events including the Nonprofit SuperConference where we will be joined by Governor Rick Snyder. Finally, be sure to sign up for our Advocacy Alerts. These will give you the most current information on how you can exercise your voice.

Nonprofit leaders must advocate for their missions and the people they serve. Our organizations have to exercise our voice to be heard, understood and respected. I hope you will exercise your voice as a nonprofit leader and help elected officials make the right choices in these challenging and transformative times


Submitted by Kyle Caldwell, president and CEO, for the Michigan Nonprofit Association.

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Save Service, Change Lives

Serving as an AmeriCorps member changed my life. I graduated from college at the beginning of the 2008 recession and AmeriCorps was one of the only jobs available to me. Little did I know that my time serving at a small community art center would impact my career path choices. I found such meaning and gained so many skills from my service that I have chosen to stay in the nonprofit sector, now working with the Michigan Nonprofit Association. This program opened doors for me, and now the federal government is considering cutting the funding. These are valuable programs. They make differences in the lives of your friends, neighbors and community. Please show your support for these programs. Below you will find an email circulated by Save Service, the campaign striving to protect this incredible resource in our country. Follow the steps and do your part to keep national service a part of our country’s legacy.

It’s time to Make the Call! Take five minutes RIGHT NOW and dial 1-855-US-SERVE (1-855-877-3783) to be connected directly to your US Senators and ask them to save funding for the Corporation for National and Community Service.

Your voice is your vote for national service; with just days to go before the next continuing resolution runs out, we need our Senators to know their constituents continue to see this as a vital community resource that must be protected in final negotiations for the FY11 budget.

Tell them that cutting AmeriCorps, Learn and Serve and Senior Corps – cost-effective, highly-leveraged programs – will jeopardize jobs, economic investment and services in your state. Tell them how the opportunity to serve has made a difference in your own life, or how you’ve seen it make a difference in your community. Tell them in these final hours, we need their leadership and support on this issue now more than ever.

As a reminder, visit http://www.saveservice.org/ for talking points, voting records, and more.

Then follow these easy steps:
1. Dial 1-855-US-SERVE (1-855-877-3783) … It’s free and easy and will connect you directly to your Senator’s office.
2. Hang up and Call 1-855-US-SERVE a Second Time … you have two Senators!
3. Recruit a Friend to Call. Promote that you called on your Facebook page!
4. Let us know you Made the Call. Visit our reporting page.
5. Forward this email to your networks!

This week is critical for us to demonstrate yet again the strength and power of the national service community. Thank you for making the call, and for all you are doing to help us Save Service in America.

For more specific information on how these service programs affect Michigan, check out the MNA website: http://mnaonline.org/servicefunding.aspx

Submitted by Jessica Swisher, Administrative Assistant, Membership and Advocacy for the Michigan Nonprofit Association.

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Draw the Line

The data is out and the direction is clear, Michigan is losing population at an alarming rate. We are smaller, with Flint down 18%, Detroit down 25% (the largest non-natural disaster caused drop of any city above 100,000-ever), Grand Rapids down 5%, and even booming Ann Arbor was down. Only small rural communities in the UP and other northern Michigan regions saw any growth.

Despite a large turnout of early respondents and hosting the top early reporting city in the country, Michigan’s Census count shows a huge population shift. With that shift come very serious consequences including a drop in federal funding and loss of congressional representation.

A consequence we often overlook is the role of Census data in redistricting—the lines drawn for politicians to represent our interests and communities. With the release of the final Census numbers, the clock is now ticking for congressional, state and county redistricting. How much input will you have in determining who represents you in Congress, the Michigan Legislature and County Commissions? The answer is very little if we repeat the mistakes of the past.

Redistricting, a process that takes place just once every 10 years, can keep our communities together or split them apart—changing whether we have representatives who feel responsible for our concerns.

Instead of drawing districts that accurately represent our communities, in many cases the parties engaged will put their own interests first – creating “safe districts.” This is something both parties do frequently, giving undue power to political insiders, lobbyists and PACs. It needs to stop.

This is not a Republican or Democrat issue. It’s a Michigan issue. Michigan’s weak redistricting laws are unacceptable and an embarrassment. As long as there are similar numbers of people in each district, lawmakers have nearly free reign to draw lines as they see fit – and that usually means that districts are solidly held by one party and voters have little meaningful choice on Election Day. Voters’ voices are being lost and their choices limited.

MNA is leading a coalition of organizations interested in ensuring Michigan citizens have an open and transparent redistricting process. Be sure to check out www.drawthelinemichigan.org and see how your nonprofit can help ensure that Michigan voters pick their representatives and not the other way around.

Submitted by Kyle Caldwell, president and CEO, for the Michigan Nonprofit Association.

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A Budget Challenge on Three Fronts

Is Michigan a Nonprofit-friendly state and why does it matter? This is our sector’s most important question as we face a three-front fiscal crisis. The three fronts are the budget shortfalls at the federal, state and local levels; challenges in government contracting and granting; and skyrocketing need levels that have not been seen for some time.

Michigan’s current projected budget gap for FY 2012 is $1.8 billion, placing us in the top 20% of the 45 states projecting shortfalls. The Recovery Act Funds are drying up now with the reduction of the $98 billion invested from FY 2009 to FY 2011 to a projected $6 billion for FY 2012. The U.S. Senate is debating on whether to cut $4.7 billion or $57 billion from the current budget for the remaining six plus months of this fiscal year. That debate is largely seen as setting the stage for how the FY 2012 debate will be waged as the Congress and President declare each others’ budget as unrealistic. These budget challenges combined with the stresses placed on nonprofits through the proposed repeals of Michigan tax credits make the public/private partnerships difficult for nonprofits to continue.

An increasing number of nonprofit organizations with federal, state, and local contracts report a strained government partnership. Some report that governments are failing to make payments for services performed under contracts, forcing the organizations to make painful cuts to programs, services and staff. In light of the budget cuts in revenue sharing and other public sources, local government agencies are withholding reimbursements, rescinding agreements altogether, or imposing other financial burdens that harm nonprofits. This challenging relationship is exacerbated by the fact that generally government contracts simply don’t cover the full cost of providing services. This is proven in our own look at the Michigan landscape.

MNA data reveals that 45% of nonprofits experience delays in scheduled government payments. In addition, when organizations were asked to identify specifically where the delay in government funding was occurring: 39% reported delays at the local level, 26% reported delays at the state level, and 16% reported delays at the federal level. We also found that 49% reported raising less financial/in-kind support in 2009 compared to previous years. Beyond budget cuts, nonprofits struggle to provide vitally needed services to a growing population with more constraints and few resources.

The final conspirator is the growing levels of need. Let’s agree to set aside for the moment the effects of the recession including the job loss, record foreclosure rates, and persistently high unemployment rates. There are other huge issues including the unpaid pension and healthcare liabilities on the state’s books. Michigan has a growing need with the aging of the Baby Boomers and the now projected decline—not stagnation, but decline—of population growth and thereby working taxpayers. While Michigan’s 1.9 million who depend on Medicaid are spared the budget axe in Governor’s Snyder’s FY 2012-2013 budget proposal, they are still expected to grow in numbers at an alarming rate that may exceed our ability to provide them healthcare coverage. This will lead to more elderly, children and vulnerable populations looking for help elsewhere, especially local mission-driven nonprofits concerned with the health of our communities.

These are reasons we should care. As a sector, we should begin to call for policy makers to build a fertile landscape for an effective, engaged, relevant and understood nonprofit sector. We need to demand that the state’s policy climate be supportive of the sector that is one of the leading economic engines, employs one in ten workers, and includes the assets our state will need to lead to our economic transformation—education, healthcare, arts & culture, and environmental stewardship. These are the reasons that every Michigander needs to call for Michigan to be a nonprofit-friendly state. It’s what will be at the forefront of our reinvention.


Submitted by Kyle Caldwell, president and CEO, for the Michigan Nonprofit Association.

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