incarnate word advocating for the nonprofit sector june 2013
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Advocating for the
Nonprofit Sector
Presented by: Mary Beth HarringtonPassionate Nonprofit Expert 501c³ – Taking Nonprofit to the Third PowerJune 17, 2013
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6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power
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BEYONDTHE CAUSE:The Art and
Scienceof Advocacy
http://www.independentsector.org/beyond_the_cause
Strengths of community of organizations: Favorable public opinion; A network of hundreds of organizations already
engaged in this work, many of whom know and communicate with each other regularly;
Some relationships with key public officials responsible for oversight and governance of the sector;
Growing field of credible research directly related to key policy issues.
Advocacy & Policy Issues
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Public policy successes prove that it is possible for this network to pool assets and achieve important outcomes.
Collaborative model not common practice; most believe more can be done to increase effectiveness of sector-wide advocacy around important national public policy issues affecting the charitable sector
Advocacy & Policy Issues
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Collaborative Model means… Developing shared, long-term goals; Increasing the number and depth of
relationships with a broader range of key public officials;
Improving coordination among organizations; Increasing the visibility and clout of the sector;
particularly with government officials will increase the sector’s influence.
Advocacy & Policy Issues
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Advocates call for strong leadership to organize the sector around a common agenda to create a more favorable regulatory and legislative environment to facilitate the work of the charitable sector.
Summary: We are stronger when we advocate as the nonprofit sector rather than as individual organizations.
Advocacy & Policy Issues
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Challenges include: Limited resources available to develop a
shared, long-term vision and to sustain the level of ongoing building activities found among the most effective advocates.
Requires shift in the status quo–a reimagined structure for convening and harnessing the assets of sector organizations with stronger incentives for collaboration and an operational model to sustain level of activity required to achieve consistent success over time.
Advocacy & Policy Issues
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Congress poised to take a closer look at the charitable sector through tax reform in 2013 and beyond, it is propitious for the nonprofit and philanthropic sector to align its efforts by creating a joint strategy that will enable organizations to better serve the growing
needs of American communities.
Advocacy & Policy Issues
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Understanding the
Nonprofit Sector
Pilgrims and Philanthropy 1950’s to mid 1980’s
nonprofits benefitted from US excess 1980’s
shift in donations, corporate spending, government programs
ironically, communities became more dependent on nonprofits
2000’s while need for nonprofits increase, perceivable
value of nonprofits decrease nonprofits increasing asked to do more with less
Brief History of Nonprofit Sector
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WARNING!Reality check approaching!
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• A nonprofit is a corporation• A nonprofit makes money• A nonprofit has employees• There are just a few nonprofits in Texas• The purpose of a nonprofit is to “do good”• “Stakeholder” is another term for vampire
slayer• Nonprofits do not impact the economy
What is a Nonprofit?
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What is a Nonprofit?
“Nonprofit” is an IRS Designation•Chapter 22 of Texas Business Organization Code (aka Texas Nonprofit Corporation Law (NCL)•Internal Revenue Code 501 (c) • 28 types of non-profit organizations
exempt from some federal income taxes
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Is It A Nonprofit? University HospitalUnited WayWorkforce AgencyHospiceHomeless ShelterAnimal ShelterSchool
Nonprofit Quiz
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Nonprofits to the Third Power17
Texas has the third largest number of reporting charitable nonprofits, exceeded only by California and New York.
All Nonprofit Organizations - 70,383 (1998) 100,734 (2008) 43.1% (change)
501(c)(3) Public Charities 3- 37,715 (1998) 66,104 (2008) 75.3% (change)
501(c)(3) Private Foundations - 4,007 (1998) 7,103 (2008) 77.3% (change)
http://www.tano.org/attachments/wysiwyg/1/Number_of_NPOS_in_TX.pdf
Texas Nonprofit Organizations
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True or False – Nonprofits employ people but they really do not make much money, receive benefits, and usually work part-
time.
Nonprofit Quiz
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U.S. charities employed over 9.4 million paid employees in 2004, or 7.2 percent of the American employment force, and spent over $321.6 billion in wages
+ engaged 4.7 million full-time equivalent volunteers
= total workforce of 14.1 million
= 10.5% of total US workforce
Employment & Payroll
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Texas nonprofit sector is a major economic force employing more than six times as many workers as the state’s oil and gas extraction industry and more than twice as many workers as the state’s real estate and leasing industry.
384,545 nonprofit employees in Texas earned over $12.5 billion in wages in 2004, exceeding total payroll for Texas’ entire state government.
Texas Nonprofit Employment & Payroll
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Overall weekly wages of nonprofit employees are lower than for-profit workers. But, in industries in which nonprofits and for-profits are both significantly involved, nonprofit average weekly wages generally outpace for-profit wages.
Lester M. Salamon and Stephanie Lessans Geller (Baltimore: Johns Hopkins Center for Civil Society Studies, May 2007). http://www.tano.org/texas-nonprofit-sector/
Texas Nonprofit Employment & Payroll
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True or False – Nonprofits do not make money.
True or False – Nonprofits do not pay any taxes.
Nonprofit Quiz
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Texas charitable nonprofits generate over $50 billion in total revenue and hold total assets of $96 billion.
Nonprofit sector sizable employer, adding both paid jobs and volunteer workers at a much higher rate than rest of the economy.
Nonprofit organizations not only contribute to the social and political life of state and nation, but to its economic life as well.
Nonprofit Sector = Economic Force
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True or False: Nonprofits cannot lobby or educate others on their needs.
Nonprofit Quiz
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Spreading the Word
Advocacy and Six Degrees
• Six Degrees of Kevin Bacon - Assumes any individual involved in the Hollywood, California film industry can be linked by film roles to Kevin Bacon in six steps.
• Posits that any two people on Earth are, on average, about six acquaintance links apart.
• In 2007, Bacon started a charitable organization named SixDegrees.org
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Local “Friendraising” Advocacy Introduce “friends” to your organization Follow meeting with phone call or note to
“Friend”. With permission, “Friend” is added to
organization communications. “Friend” is invited for tour of organization to
see programs in action. Follows tour with phone call or note to
“Friend”. “Friend” is invited to call to action event.
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Plenty of Pie to Go
Around!
Incorporate stats into corporate solicitations Show by contributing to your nonprofit, you
contribute to the communities economic growth
Paradigm shift - For profits expected to make a profit whereas nonprofits expect to work for .90 on the dollar
Advocate essential role not only your organization but all nonprofits play in the community
By advocating for the sector as a whole you increase corporate, foundation, and individual donations!
Get Your Slice!
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Nonprofits not included in health reform Included in HIRE act… result of fight to include
NPs in small employer health care credits Prepare now for 2013 TX Legislative session Legislators watching other states
states cutting funds delays /withholding in paying government contract fees new fees & taxes
Missing Piece
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Minnesota - Nonprofit Sector and Community Solutions Act (HR 5533), a bill that will transform the way that the federal government thinks about and deals with the charitable nonprofit community in the United States.
Toronto – REAL return on investment for donors!
Britain – Nonprofit advocate cabinet level position
More Pie for Everyone
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Get Prepared!Change your perspective to advocate for
nonprofit sector as a wholeStay Informed!Collaborate!Get Engaged!The Survival of the nonprofit sector is
in the balanceSmall BusinessCoke and Pepsi
Start Rolling!
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Resources for Advocacy Information The Powerful, Free, and Easy 501(h) Election:
Benefits Galore! http://www.councilofnonprofits.org/nonprofit-advocacy/501h-election
Lobbying Rules for 501(c)(3)s http://www.independentsector.org/lobbying_rules
Beyond the Cause: The Art and Science of Advocacy http://www.independentsector.org/beyond_the_cause
Frontera Strategy - Jason Sabo http://fronterastrategy.com/About_Us.html
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Nonprofit Favorites GrantStation – www.grantstation.com
Chronicle of Philanthropy - www.philanthropy.com
Nonprofit Quarterly - www.nonprofitquarterly.org
Blue Avocado – www.blueavocado.org
BoardSource - www.boardsource.org
Idealware – www.idealware.org
TechSoup – www.techsoup.org
Nonprofit Risk Management Center – www.nonprofitrisk.org
Independent Sector – www.independentsector.org
C-Forward – www.cforward.org
Texas C-Bar – www.texascbar.org
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Free Nonprofit Advice & Counsel!
Mary Beth Harringtonmbharrington64@hotmail.com972-839-9960www.mbharrington501c³com
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