from The New York Times: One-Fourth of Nonprofits Are to Lose Tax Breaks As many as 400,000 nonprofit organizations are weeks away from a doomsday. At midnight on May 15, an estimated one-fifth to one-quarter of some 1.6 million charities, trade associations and membership groups will lose their tax exemptions, thanks to a provision buried in a 2006 federal bill aimed at pension reform. ... The federal legislation passed in 2006 required all nonprofits to file tax forms the following year. Previously, only organizations with revenues of $25,000 or more - or the vast majority of nonprofit groups - had to file. The new law, embedded in the 393 pages of the Pension Protection Act of 2006, also directed the Internal Revenue Service to revoke the tax exemptions of groups that failed to … Continue Reading
Are “American Friends of” Organizations a Thing of the Past?
by Shuey Fogel International organizations have been highly successful in raising funds from the United States through U.S. based charities commonly referred to as “Friends of” organizations. These charities are registered in the States and have 501(c)3 tax-exempt status, allowing donations to these essentially foreign organizations to be tax-deductible. As you can imagine, many charities registered outside of the United States consider an “American Friends of” organization as a vital part of their fundraising strategy. Jewish causes, especially those based in Israel, are no exception to this rule. A recent report compiled by Dr. Nissan Limor estimated that foreign donations to Israeli charities from sources outside of Israel stood at 2.165 billion dollars in 2007, with much of that … Continue Reading
The NTEN 2010 Conference: Lessons Learned
Two Jewish Agency attendees weigh in on the recent NTEN 2010 Conference. by Florence Broder and Ziva Haller Rubenstein This year’s Nonprofit Technology Conference in Atlanta was a buzz: continuing many of the trends from the SXSW conference, and the seminars and the energy of the participants did not disappoint. Early on, five key areas emerged as critical parts of keeping nonprofit organizations on top of its e-philanthropy initiatives as well as way to be interactive with online communities. 1. Metrics and ROI Most organizations already have a presence on social networks like Facebook and Twitter but that is no longer enough. It’s now time to become more strategic in undertstanding your audience through metrics analysis. Believe it or not, it’s time to go back to basics, that … Continue Reading
When the Creator is Also the Undertaker
Founder’s Syndrome: When the Creator is Also the Undertaker Many non-profit organizations are created and founded by people with vision, passion and commitment. The combination of these qualities is what enables a person to implement their ideas and to bring them to fruition in a real way. A person may be motivated by a personal situation or they may see a need in the community. There is a decision to respond and develop an organization that will meet the need that has been identified in the community. For example, a parent of an autistic child who has experienced the frustration of lack of adequate services may be motivated to establish a non-profit organization to advocate for more comprehensive services or establish a non-profit organization to provide needed support services to the … Continue Reading
Foundation Chief Liable for Bad Investments
from Portland Business Journal: Ex-foundation director ordered to repay $2M The judge, in a case handled by the Oregon Department of Justice, said Ann Ellis “imprudently invested” the assets of The Wintercross Foundation. “This verdict is about accountability,” said Keith Dubanevich, chief of staff and special counsel to Attorney General Kroger, in a statement. “Running a charity is a special trust and we will not hesitate to bring action against anyone who violates the public’s trust.” … Continue Reading
StL Federation Investments Show Strong Return
from jewishinstlouis.org: St. Louis Jewish Federation’s Investments Show Strong Return in ’09; Reflects a Consistent, Balanced Approach Jewish Federation’s Jewish Community Foundation of St. Louis (JCF), which holds the endowment funds and planned gifts for Jewish Federation and many of our community agencies, has shown a very strong investment return in 2009 of 24.7% over ’08. Although not a full recovery, assets have reached a total of $99.2 million. ... While Federation is investing to grow long term, we are also providing an annual source of revenue for our community, said Judy Abrams, Jewish Federation’s chief administrative officer, who is the lead staff person on the committee. “It is important that the committee keeps apprised of the cash needs of Jewish Federation … Continue Reading
Attorneys Advise Prudent Actions for Nonprofit Leaders
Charities In Distress: Governance and Standards of Care In Troubled Times by Christina M. Mason and Carolyn R. Caufield In times of economic hardship, non-profit organizations confront issues that are unique to their status. Like business entities, charities have responsibilities to their employees, to conduct their activities and to their creditors. But charities also have obligations to their donors and are accountable to the community at large for the use of their assets for charitable purposes, which may impede how those assets are used in responding to financial difficulties. So how does a charity navigate perilous economic waters when its actions are scrutinized and governed by a multiplicity of (potentially conflicting) interests? Of paramount concern to charitable directors and … Continue Reading
New Data Privacy Law You Need to Know
from Philantopic: Mass Morass: New Data Privacy Law There's a new Massachusetts regulation that affects nonprofits that access or store personal information provided by residents in the state. Do you accept gifts from Bay State donors and process their credit cards? Process or save copies of their checks? Are you seeing or holding the Social Security numbers of constituents? A "yes" to any of these brings your organization within the purview of Title 201 of the Code of Massachusetts Regulations Section 17.00, Standards for the Protection of Personal Information of Residents of the Commonwealth. And compliance isn’t pretty. … Continue Reading
Hadassah or Esther? Hospital Governance Needs Transparency
by Mayer Brezis and Sara Singer Hadassah’s Board of Directors will not renew the contract of hospital CEO, professor Mor-Yosef. No one knows why. As owner, Hadassah Women's Zionist Organization of America (HWZOA) can do what it sees as right, and confidentiality in sensitive discussions can be necessary. Meanwhile, however, a sense of unfairness and bewilderment raise mistrust among hospital staff. Hadassah is not a private company with trade secrets like Coca Cola: as a public hospital serving over a half-million patients every year, largely through taxpayer funds, it bears greater accountability for transparency. Transparent governance is especially important in healthcare organizations from which the public demands accountability for quality and safety. People expect openness from nurses … Continue Reading
Nonprofit Organizations Under the Microscope
What are not-for-profit organizations doing - or not doing - in the face of declining revenues, growing governance and disclosure expectations, and closer scrutiny from regulators and donors? Each year since 2003, Grant Thornton’s National Board Governance Survey for Not-for-Profit Organizations has examined the governance of not-for-profit organizations in order to learn how they are handling these increased demands. According to the 2009 survey, the vast majority of organizations have responded to these challenges by cutting costs, seeking new revenue streams, reducing endowment spending, enhancing their governance practices and reassessing their strategic plans. For example: Nearly nine in 10 (87%) respondents reduced expenses, while more than half (54%) reduced personnel. Boards made … Continue Reading
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