Mackinac Policy Conference Review

Last week, the Detroit Chamber of Commerce held its annual Mackinac Policy Conference at the Grand Hotel on Mackinac Island. Donna Murray-Brown and I were fortunate enough to attend the conference this year on behalf of MNA. One difference in the conference this year, was the lack of lawmakers. Michigan legislators stayed behind in Lansing to put the finishing touches on the FY’12-13 state budget.

This year’s theme was on making Michigan and Detroit a place for global competitiveness. To help attendees think about Michigan in a global setting, the Detroit Chamber had two very high-profile foreign affairs experts, Fareed Zakaria and Thomas Friedman. Both had very similar messages, Michigan and the United States can no longer think of itself as the sole “super power” on the global stage – both in foreign policy and economic progress. Both Zakaria and Friedman came to the same recommendations, improve US infrastructure (including wireless deployment), open up immigration policy, and invest in K-16 education. Detroit Public Television has both sessions on their website, you can view each of them here.

Fareed Zakaria and Thomas Friedman were not the only ones touting the need for Michigan to invest in the future. Numerous keynote speakers and panelists also reiterated the point: if Michigan is going to succeed, it must invest in the future.

One slightly low point of the conference was the “Fab Five” panel, where the leaders of Macomb, Oakland, Wayne, and Washtenaw counties, and Detroit Mayor, David Bing discussed regional collaboration. There was much more of the usual bickering around turf and who should pay for what, instead of broader discussion of a vision of what regionalism looks like for the Detroit area, which would have built upon what the other keynote speakers proposed. There is always next year…

 

Submitted by Christina Kuo, Senior Director of Public Policy and Public Affairs, 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

End of an Era, or The Start of Something New

It is unbelievable that 4,000 people from around the country descended on New Orleans to either memorialize an era of remarkable achievement for volunteering and national service or to look to the future growth of this movement. I say unbelievable because this year’s National Conference on Volunteering and Service provided great content, great speakers, and untold opportunities to learn, serve and network with people who know and understand the power of service. This conference has been a bold joint convening hosted by the Corporation for National and Community Service (CNCS) and the Points of Light Institute (POLI) – a relationship that has given rise to a number of highly successful mobilizing efforts including this, the largest gathering of leaders and practitioners in our sector.

Yet this relationship also leads to some strange scenarios like the one we witnessed last week in the Big Easy. While we celebrated the great work of thousands of volunteers who responded to the natural and man-made disasters that have plagued the Gulf Coast region, there was an underlying concern that a storm of a different kind waited just around the corner. And like the BP oil spill and levee failures that taxed the resources and spirit of the Gulf residents, the appropriations for the CNCS (or potential lack thereof) could be a tragic failure of our commitment and ingenuity.

Despite the dark cloud on the horizon that CNCS funding cuts represented, the thousands gathered were not, and could not, be empowered to have a robust dialogue on how to overcome this challenge. Why? Because the CNCS cannot be in a position to lobby its own constituencies in support of their own existence. Strange, yet true. So, while conservative icon and successful Governor Haley Barbour thanks the national service field for coming to the rescue of Mississippi, participants are left to say, you’re welcome and not, you’re welcome and please tell your friends. As a POLI board member, I felt somewhat like the married couple that doesn’t talk about the challenges brought on by the in-laws. On the one hand they can be troubling and meddlesome, and on the other, without them, neither of us would be here.

Next year’s conference will be held in Chicago, and will not be in partnership with the CNCS. Correctly, in my opinion, the CNCS has decided not to renew its contract with the POLI and seek other means to provide professional development opportunities for grantees that may or may not involve the Chicago gathering. I concur with their decision because it will allow them to demonstrate that they are making prudent and careful future decisions on their resources that a national conference with high profile champions could give lawmakers a chance to call into question.

We have to convince our support network to communicate the tremendous value of our mutual work and the need for financial support of our cause. This summer is an excellent time to engage elected officials in their districts and educate and explain the power, impact, and genuine need for national service, especially as we seek to make every public dollar go further. If we don’t, we may well have celebrated the end of an era in the Crescent City rather than realizing the dawn of a new beginning.


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

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The Path of Least Resistance?

What do voters think about the current budget debates at the state and federal levels? If we go by the major headlines, we want cuts to the public budgets and no new taxes. Or do we?

Now that the realities of the proposed cuts are coming into focus, it is unclear if the budgets proposed so far actually meet the expectations of the public that will be impacted by the changes. Such is the nature of major change—it all looks good from afar, but when it comes to our own sacrifices, we see ours as too large and others as too small.

The gridlock at the federal level with the near-federal government shutdown will be amplified as Congress and the White House debate the 2012 budget. But we are now realizing the cuts of the current budget compromises. Included in those, hidden away in the obscure portion of the Labor Health and Human Services budget, is a small dollar amount cut with large implications—the elimination of funding for Learn and Serve America funds. These are important dollars that help young people not only learn experientially (especially important for those “hard to reach” students), but also promote the school climates we all agree are important to quality learning.

At the state level, a small cut of $675,000 in the massive Department of Human Services budget will not only eliminate all support for the Michigan Community Service Commission, but also turn away more than $13 million in federal funding for national service programs all across Michigan.

To balance our state budget, lawmakers are proposing the elimination of tax credits that have leveraged millions to help local communities through community foundations, food pantries, homeless shelters, arts organizations, and colleges and universities.

Do voters really believe that eliminating support for sound, proven, affordable (bordering on cheap) programs that solve problems that government cannot afford to address directly makes any sense? We may never know, because there is little talk about what the voters actually want.

The Center for Michigan has been working hard to identify what Michiganders want to see in a Michigan budget, but few if any of their suggested reforms have received enough support. They have even developed a tool for citizens to identify how they would balance the budget.

A flood of recent polling indicates that voters are not supporting many of the proposed cuts to programs. Slate Magazine reports all political ideologies oppose the cutting of Medicare – 92% of Democrats, 73% of Republicans, 75% of Independents, and 70% of Tea Party Members. Regarding revenues, the recent Gallop poll shows that Americans do not want lawmakers to remove charitable incentives.

Clearly there is a strong sense that people know that changes are necessary, but the proposals on the table are largely looking to impose change on those least likely to present strong opposition as opposed to changes the voters are telling pollsters they would like to see.

At no other time is the voice of the nonprofit sector more necessary than now.


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

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Proposed Cuts Would Undermine Nonprofit Sector’s Work

The status of the state budget in Michigan has been a hot issue over the last few weeks, as legislators work to create a balanced budget. While we know that some cuts are inevitable and that shared sacrifice is important, the proposed budget cuts to the Michigan Community Service Commission (MCSC) and the total elimination of charitable tax credits will have a negative impact on the nonprofit sector as a whole.

If funding for the Michigan Community Service Commission is zeroed out, as the Senate Appropriations Subcommittee for the Department of Human Services proposed, Michigan risks losing $13.3 million in federal funds that are leveraged by MCSC. The elimination of MCSC’s budget, a total of $675,000 per fiscal year, is not worth losing those federal funds – the math simply does not make sense. MCSC brings money into Michigan while providing important services for the community, like placing more than 1,200 AmeriCorps members who work tirelessly to strengthen Michigan communities.

The governor’s proposed budget also includes another big hit to nonprofits: the elimination of charitable tax credits. This proposed tax plan, which includes this budget cut, just passed the House by a slim margin and will move to the Senate for a vote. The state’s potentially small gain in revenue (less than $50 million/year) will be dwarfed by the negative impact of denying nonprofits of the leverage they need to multiply and diversify their donations through individual giving tax credits. Without providing encouragement for donations, Michigan’s nonprofit sector will see less charitable giving, further straining their efforts to assist and develop Michigan communities.

With these devastating proposals looming, organizations and individuals throughout the state need to tell their legislators they oppose these budget changes that will negatively affect the nonprofit community. Decreasing nonprofits’ capacity to serve communities is not the answer to the budget problems in our state.

Michigan Nonprofit Association is spearheading the effort to get organizations and individuals to sign-on to two separate letters – one opposing the elimination of charitable tax credits and the other to oppose the elimination of funding for MCSC. You can view both letters, and sign on to them, by visiting http://www.mnaonline.org/proposedbudgetcuts.aspx.

Undermining the nonprofit sector is not a successful strategy for the state’s budget. We encourage you to sign-on the letters to tell our lawmakers to oppose the elimination of charitable tax credits and the zeroing out of MCSC funding!

Submitted by Katie VanderVeen, Public Policy Fellow for 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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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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SuperConference 2011, Not Your Ordinary Workshops

This year the SuperConference planning committee has hand selected presenters for the 30+ workshops that will be taking place at SuperConference on May 10th and 11th. Presenters include speakers from our plenary sessions as well as speakers from across the U.S. Not only that, workshops are divided into six topic-based tracks that appeal to those at both an intermediate and advanced level.

Below, is a sneak peek at some of the workshops and presenters from each track that are being featured this year.

Planned Giving Strategies to Meet Donor Expectations and Current Funding Goals
Advanced Fund Development Course
Facilitated By: Christopher L. Kelly, Vice President/Senior Philanthropic Advisor – Comerica Charitable Services Group

“Opportunities and Options” are the requirement of today’s donor. Our donors would like to see multiple ways to meet current gifting goals for their beloved organization, as well as paths toward leaving a lasting legacy. In this workshop we will discuss various planned giving vehicles; how they function traditionally, but more importantly, how they can function to meet the challenges presented by today’s sophisticated donor base. The result will provide opportunities for donors to gift from their accumulated wealth, rather than their disposable income, which translates into potentially larger and concrete financial commitments, and the opportunity to generate new relationships with the next generations of your current donor base.

The Game Plan
Intermediate Public Policy and Advocacy Course
Facilitated By: Abby Levine, Legal Director of Advocacy Programs – Alliance for Justice.

This interactive session helps organizations strategize how best to employ the advocacy tools at their disposal. It includes a discussion of advocacy fundamentals that help participants define their goals and objectives, appropriate targets, and effective advocacy tools, as well as assessing advocacy capacity and evaluating advocacy activities and planning for future campaigns.

Communications & Collaborations
Cross Track Communication Course
Facilitated By: David Stillman and Debra (Fiterman) Arbit, BridgeWorks

Join our Keynote Speakers, David & Debra, as they take you on a deeper dive of working through generational issues to keep your organization relevant in today’s changing world!

Five Crazy Habits
Intermediate Governance/Professional Development Course
Facilitated By: Robin Lynn Grinnell, Program Officer – Cook Family Foundation

Is your board agenda chock full of lengthy (ugh) program reports? Are you stuck in a perpetual cycle of fundraising events that are “just fine”? Do you sometimes sit at your desk and wonder if your board and/or staff will ever really get it together? If you answered ‘yes’ to any (or all) of these questions, don’t dismay… Many nonprofits have adopted Five Crazy Habits that simply trip us up. None of them are blatantly obvious and they’re certainly not illegal – they just make our work harder. Join us for a fast-paced session in which we’ll laugh (and groan) at our collective goofs and we’ll share some simple fixes that – with a little dedication – will get you back on the right path!

Google Grant & Apps!
Cross Track Planning Course
Facilitated By: Elyse Guilfoyle, AdWords Account Strategist – Google, Mary Elizabeth Ulliman, AdWords Account Manager – Google, and Jon Fraiser, Google

You are changing the world, and we want to help! Google employees from the Ann Arbor office will introduce you to Google’s free product offerings for nonprofits. They will touch on a wide variety of products that can help you: Reach and engage your supporters, improve your organization’s operations, Raise awareness for your cause .This session will focus specifically on the Google Grants program and Google Apps for Nonprofits. The Google Grants program empowers select nonprofit organizations to achieve their goals by helping them promote their websites via advertising on Google.com. As a Google Grants recipient, your organization can solicit donations, recruit volunteers, promote events and programs, and much more through Google Grants ads.

Catch the Spirit of Service
Intermediate Civic Engagement Course
Facilitated By: Jeanine Yard, Program Officer – Michigan Community Service Commission and Evan Albert, State Program Director – Corporation for National & Community Service

Is your organization interested in making connections with National Service programs such as AmeriCorps, Senior Corps, and Learn and Serve? Do you wonder what a strong national service program looks like and how you might become that strong program effectively utilizing national service members. Join us for this interactive workshop and get answers to all your National Service questions. Learn how to ready your organization to apply for a grant or to host a member, identify opportunities for collaboration with other service programs, and find out how national service can add value to your organization.

For more information on SuperConference 2011, the workshops, keynote speakers, and other conference features, visit www.MNAonline.org/superconference.aspx .

Submitted by Ashley Branoff, Communications Coordinator for Michigan Nonprofit Association.

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Governor Proposes Changes that Affect Nonprofits

Governor Rick Snyder unveiled a bold and politically charged budget proposal last week. The proposal calls for a flat income or profit tax on businesses (in place of the MBT), taxing of pensions, elimination of the homestead provisions, and a myriad of cuts to social services and education programs and institutions. Governor Snyder’s budget also included the rolling back of decades work to make Michigan one of the nation’s most Nonprofit Friendly States. Michigan has a proud tradition of giving and volunteering:

• nearly half of all citizens volunteer,
• 85% donate financially to nonprofits,
• nearly 90% see charities as important to the quality of life in Michigan,
• 93% say the need for nonprofits is greater today than in the past, and
• nine out of ten believe that charities should retain their tax exemptions.

Over the past three years as our state’s manufacturing, retail, and government sectors have struggled and declined, only one sector was hiring and growing–the nonprofit sector.

• One in ten workers in Michigan is employed by a nonprofit.
• During the recession, employment in the nonprofit sector grew by 14%.
• Wages increased among workers in the nonprofit sector by 2.7%.

While growing, the sector has not been able to meet the overwhelming demand for services brought on by persistently high unemployment, record levels of foreclosures, stalled business investment, and tight money markets. Individual giving is especially challenging to maintain in a climate of constrained discretionary income levels. Nonprofits are also working to deal with the challenges of government where payments are late and fail to cover the full costs of services provided.

Given this growth, our state’s long tradition of public/private partnerships, the tools we’ve developed to encourage growth in individual philanthropy, and the challenges of government grants and contracts, it is difficult to understand the rationale behind the Governor’s budget choices.

In addition to the tax changes for seniors and businesses, the Governor proposed 15%+ cuts to the 15 public 4-yr. higher education institutions, over $400 per pupil cuts in K-12 funding, the budget calls for the all out elimination of the majority of the charitable incentive tools Michigan nonprofits use to support vital services to Michigan residents. They include:

• Earned income tax credit (a Michigan companion to the national credit) – $353.8 million
• Gifts: public art, radio, colleges, universities, archives, museums, libraries credit – $24.8 million
• Community foundations, $3.4 million
• Food banks and homeless shelters credit – $21 million
• College tuition and fees credit – $4.8 million
• Automobile donation credit – $100,000
• Energy efficient home improvement credit – (figures not available)
• Historic preservation credit – (figures not available)

In just the areas we can calculate right now, the nonprofit sector will be taxed a total of $54.1 millionin this budget year alone. This excludes the energy credit, preservation credit, both of which go to support areas in which nonprofits are essentially the only service providers, and also leaves out the Earned Income Tax Credit ($353.8 m) which goes to the individuals only nonprofits, in partnership with government, serve – the working poor. It also omits any local government financial challenges that will be thrust upon nonprofits as revenue sharing is cut nearly in half in the Governor’s budget. And, of course this calculation omits the loss of leveraging power nonprofits will suffer when Michigan donors realize our state tax credits as incentives to give are gone (with the exception of a few targeted for veterans and special needs children).

The Governor and members of the legislature have difficult choices to make. Michigan’s structural deficit has long been the can kicked down the road and the end of the road is here. Michigan’s nonprofit sector will be called upon to make sacrifices for our future financial security. No one should operate under the illusion that they will be spared the budget axe during this important time in our state. As a sector, we need to decide if Governor Synder’s proposal properly defines the sacrifices we want to make or if there are more sustainable and ultimately healthier choices we can make to help in Michigan’s economic recovery.


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

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