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

A note from MNA President & CEO Donna Murray-Brown

Charitable giving incentives have been a strong vehicle to support the work of nonprofits serving communities across the country.  While we were not successful in retaining the charitable deduction in Michigan, we know there has been an adverse impact to the level of giving received since its elimination.  It is imperative we advocate protecting charitable giving incentives at the federal level. 

Congress has taken a “blank slate” approach to tax reform, and will analyze everything to arrive at a comprehensive set of reforms including consideration of reducing or eliminating incentives for charitable giving.

The following blog titled “The Lab Results Are in on Tax Reform,” is an opinion piece written in support of the charitable giving incentive that was published in a recent The Hill e-communication, a publication widely read by congressional and White House staffers. The blog gives an inside look at the work of key states advocating for charitable giving incentives and strongly suggests the impact of these incentives on the nonprofit sector and the services they provide in communities.

Please take some time to read, share and educate our law makers, media and networks about this very important topic.

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

Statement from MNA President & CEO Donna Murray-Brown on the impact of Detroit’s bankruptcy filing on the nonprofit sector.

Below is a statement from MNA President & CEO Donna Murray-Brown on the impact of Detroit’s bankruptcy filing on the nonprofit sector. A longer statement will be forthcoming.

Donna Murray-Brown, president and CEO of the Michigan Nonprofit Association,  sees the bankruptcy as an opportunity “for not just nonprofit organizations but residents to really create the next Detroit” , Although Murray-Brown acknowledged that the demand for services will probably continue to rise, she’s optimistic. “Nobody wanted to be here, it’s a scary thing to be in a city that just filed for bankruptcy, but it’s also an opportunity,” she said. “Kevyn Orr wants to maintain services to residents. This is a time not to acquiesce but to be proactive and figure out the best role for nonprofits.”

Donna Murray-Brown

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

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

Nonprofits Ready to Partner

Wednesday night, Governor Snyder gave his second State of the State address. As he talked about how far Michigan has moved forward in 2011, and his Administration’s priorities for 2012, he continually came back to two key ideas: collaboration and innovation. Collaboration brings with it a sense of community, inclusion, and hope for the future. With innovation, Michigan can creatively improve upon what is already great or throw out the bad. These are indeed keys to a successful future in Michigan and keystones to the good governance Gov. Snyder also advocates.

But you can’t talk about collaboration with just these two sectors (business and government) while ignoring the impact of nonprofits on many of the metrics on the MiDashboard. By including nonprofits at the table of this discussion from the beginning, alongside elected officials and businesses, Gov. Snyder would not only see a broader, more complete view of the impacts of his proposals, but also a better solution to the problems he has identified.

While Snyder’s agenda was positive and avoided controversy, he can no longer ignore the growing importance of nonprofits that are integral to achieving many of his goals for 2012. By championing his own values of collaboration and innovation, the state, nonprofits, and other key players can work together to achieve the desired results of a healthy and prosperous Michigan.

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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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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