Archive
The Charitable Contribution Deduction: Section 170 Reorganized
The Charitable Contribution Deduction: Section 170 Reorganized
Source: Urban Institute
This paper attempts first to clarify tax rules concerning charitable contributions by reorganizing section 170 and simplifying the language, where possible, so that the operative rules will be clearer. In addition, a revision of the estate and gift tax provisions, intended to increase uniformity, is proposed. The possibility of further substantial simplification is explored in the section by section analysis which follows the proposed code revision. Whether or not the Code is actually revised in accordance with the proposed draft, having this tool available will help analyze the statute.
Tweeting Social Change: How Social Media Are Changing Nonprofit Advocacy
Tweeting Social Change: How Social Media Are Changing Nonprofit Advocacy
Source: Nonprofit and Voluntary Sector Quarterly
How are nonprofit organizations utilizing social media to engage in advocacy work? We address this question by investigating the social media use of 188 501(c)(3) advocacy organizations. After briefly examining the types of social media technologies employed, we turn to an in-depth examination of the organizations’ use of Twitter. This in-depth message-level analysis is twofold: A content analysis that examines the prevalence of previously identified communicative and advocacy constructs in nonprofits’ social media messages; and an inductive analysis that explores the unique features and dynamics of social media-based advocacy and identifies new organizational practices and forms of communication heretofore unseen in the literature.
Hat tip: Journalist’s Resource
Peace Corps Announces Top Volunteer-Producing Colleges
Peace Corps Announces Top Volunteer-Producing Colleges
Source: Peace Corps
For the first time ever, schools in a single state hold the No. 1 spot in the small, medium and large undergraduate school categories for the 2013 Top Colleges rankings for producing Peace Corps volunteers. Washington State now holds this noteworthy distinction, with University of Washington leading large schools with 107 alumni currently serving as Peace Corps volunteers, while Western Washington University and Gonzaga University lead in the medium and small categories with 73 and 24 currently serving graduates, respectively.
Also for the first time, two universities are tied for first place in the large schools category, with University of Florida matching University of Washington’s 107 undergraduate alumni currently serving as Peace Corps volunteers. University of Florida made the largest leap of the undergraduate schools ranked No. 1 this year, up from No. 4 in 2012.
Generosity in Canada and the United States: The 2012 Generosity Index
Generosity in Canada and the United States: The 2012 Generosity Index
Source: Fraser Institute
The Generosity Index measures private monetary generosity using two key indicators. The percentage of tax filers who donated to charity indicates the extent of generosity, while the percentage of aggregate personal income donated to charity indicates the depth of charitable giving. The jurisdictions included in the index are the 10 Canadian provinces and three territories, the 50 US states, and Washington, DC. The data used are from the 2010 tax year—the most recent year for which data are available for both Canada and the United States.
The data collected for the Generosity Index show stark differences in charitable giving among the Canadian provinces and territories, as well as between Canada and the United States. Manitoba had the highest percentage of tax filers who donated to charity (26.2%) among the provinces. Prince Edward Island and Saskatchewan tied for second place (25.2%). The provinces with the lowest percentage of tax filers donating to charity are Newfoundland & Labrador (21.1%) and New Brunswick (21.3%).
In the United States, the extent of generosity is over three percentage points higher: 26.7% of US tax filers donate to charity compared to 23.3% of Canadians. The gap between these two countries widens when considering the depth of the generosity of each. In 2010, Americans gave 1.38% of their aggregate income to charity. This rate of giving is more than double that of Canadians, who gave 0.66% of aggregate income to charity in 2010.
Arts Organizations and Digital Technologies
Arts Organizations and Digital Technologies
Source: Pew Internet & American Life Project
A survey of a wide-ranging mix of U.S.-based arts organizations shows that the internet, social media, and mobile connectivity now permeate their operations and have changed the way they stage performances, mount and showcase their exhibits, engage their audiences, sell tickets, and raise funds.
These organizations are even finding that technology has changed the very definition of art: 77% of respondents agree with the statement that the internet has “played a major role in broadening the boundaries of what is considered art.”
Learnings from Startup America Partnership’s first 18 months show networks and resources critical for startup growth should begin at the regional level
Source: Ewing Marion Kauffman Foundation
How does a newly formed nonprofit organization tasked with helping entrepreneurs across America effectively serve startups that are in different places, in different industries and with wildly different needs? Region by region.
This is the central lesson found in "The Start Uprising," a white paper released today by the Ewing Marion Kauffman Foundation that examines where the Startup America Partnership started and where it is now. It is a story chock full of lessons for anyone interested in being a catalyst for entrepreneurship.
Launched at the White House in January 2011 as a demonstration project by the Kauffman Foundation and the Case Foundation, Startup America Partnership initially focused on helping entrepreneurs get their companies off the ground by delivering free or low-cost services and connecting them with large corporations.
By mid-2012, however, the initiative’s leaders had discovered that what startup entrepreneurs need most is the mentorship and fellowship of other entrepreneurs who can help them avoid missteps and point them toward customers, funders and talent. This learning shifted Startup America Partnership’s focus toward becoming the catalyst for a movement of entrepreneurs, by entrepreneurs, through startup regions.
"This paper sums up why a startup region strategy has become Startup America Partnership’s organizing principle, and how their experience can benefit any organization that wants to promote entrepreneurship," said Dane Stangler, director of research and policy at the Kauffman Foundation. "What Startup America Partnership seeks to achieve is critically important to America’s economic recovery and long-term prosperity. The more they can provide connections and resources locally that help startups grow faster, the more quickly these companies will become job creators."
Pivoting to regional hubs was a response to what the Startup America Partnership team learned was a lack of connectedness among entrepreneurs and is consistent with Kauffman research that challenged misconceptions about where high-growth companies start and what entrepreneurs need to succeed.
Financial Sustainability for Nonprofit Organizations: A Review of the Literature
Financial Sustainability for Nonprofit Organizations: A Review of the Literature
Source: RAND Corporation
Nonprofits face a myriad of challenges in establishing and maintaining financial sustainability, and these challenges are exacerbated for nonprofits serving low-resources, high-need communities. This literature review identifies key themes and findings that may inform operations and decisionmaking related to improving sustainability in such organizations. The authors conducted systematic literature searches using a combination of academic search engines and the broader Internet. They identify and discuss key challenges of financial sustainability for nonprofits, such as over-reliance on external funding sources, demonstrating value and accountability to funders, and promoting community engagement and leadership, as well as promising practices for meeting these challenges and achieving financial sustainability. Additionally, the authors discuss unique challenges faced by nonprofits serving low-resources, high-need populations. It is the authors’ hope that this review will enhance the limited literature on financial sustainability in low-resource or high-need communities and will contribute to an evidence base for promising practices, providing leaders of and investors in nonprofits the ability to support and promote growth among organizations serving those most in need.
2012 Fundraising Effectiveness Survey Report
2012 Fundraising Effectiveness Survey Report
Source: Urban Institute
The Center on Nonprofits and Philanthropy at the Urban Institute and the Association of Fundraising Professionals established the Fundraising Effectiveness Project (FEP) to conduct research on fundraising effectiveness and help nonprofit organizations increase their fundraising results. Piloted in November 2006, FEP collects fundraising data from nonprofit organizations beginning with data for 2004-2005. The Fundraising Effectiveness Survey enables participating groups to measure and compare their fundraising gain and loss ratios to those of similar organizations. This report incorporates data from 3,184 survey respondents received as of February 2012, covering year-to-year fundraising results for 2010-2012.
Nonprofit Sector is Growing Faster than Rest of the Economy
Nonprofit Sector is Growing Faster than Rest of the Economy
Source: Urban Institute
Even during and after the recession, from 2007 to 2010, nonprofit employment grew 4 percent and wages increased 6.5 percent, while they decreased in the business sector by 8.4 percent and 8 percent, respectively, and increased only 1 percent and 4.8 percent, respectively, for government. However, in 8 of the past 10 years, the nonprofit sector spent more than it earned. The gap between revenues and outlays was $65 billion in 2008, 2009, and 2010.
What Is the Relationship of Medical Humanitarian Organisations with Mining and Other Extractive Industries?
What Is the Relationship of Medical Humanitarian Organisations with Mining and Other Extractive Industries?
Source: PLoS Medicine
Summary Points
- In developing countries, extractive industries (including ore mineral mining and oil extraction) have far reaching consequences on health through environmental pollution, some communicable diseases, violence, destitution, and compromised food security.
- The rapid expansion of extractive industries and the increasing frequency of environmental disasters are bound to engage medical humanitarian organisations in developing novel types of expertise.
- While humanitarian organisations might be called to intervene in areas occupied by the extractive sector, in this Essay I argue that oil and mineral exploitation reveals a fundamental clash of values between humanitarianism, the for-profit sector, and privatised global philanthropy.
Specific medical humanitarian organisations can respond to these challenges in different ways, based on their position between pragmatic or principled approaches, and their willingness to develop new technical capacities.
How America Gives
Source: Chronicle of Philanthropy
From America’s Generosity Divide:
The nation’s generosity divide is vast, according to a new Chronicle of Philanthropy study that charts giving patterns in every state, city, and ZIP code.
In states like Utah and Mississippi, the typical household gives more than 7 percent of its income to charity, while the average household in Massachusetts and three other New England states gives less than 3 percent.
The same holds for the nation’s 50 biggest metropolitan areas. The Chronicle found that residents of Salt Lake City, Memphis, and Birmingham, Ala., typically give at least 7 percent of their discretionary income to charity, while those in Boston and Providence average less than 3 percent. (See our interactive tool to find giving data for any place in the United States.)
To account for sharp differences in the cost of living across America, The Chronicle’s study compared generosity rates after residents paid taxes, housing, food, and other necessities.
The study, based on the most recent available Internal Revenue Service records of Americans who itemized their deductions, examines taxpayers who earned $50,000 or more in 2008. They donated a median of 4.7 percent of their discretionary income to charitable causes. Altogether, they provided $135-billion to charity, nearly two-thirds of the $214-billion donated by all individuals in 2008, according to “Giving USA,” the benchmark of giving patterns.
FTC Alerts Consumers Who Want to Help Colorado Movie Theater Shooting Victims
FTC Alerts Consumers Who Want to Help Colorado Movie Theater Shooting Victims
Source: Federal Trade Commission
The Federal Trade Commission, the nation’s consumer protection agency, has tips for anyone who may want to donate money to the victims and families of the Aurora, Colorado, movie theater shooting.
One opportunity for giving, the Aurora Victim Relief Fund, has been established by Colorado Governor John Hickenlooper and the Community First Foundation to meet immediate and long-term needs of victims and their families. Donations are being accepted through the Foundation’s GivingFirst.org program, which describes how various nonprofit organizations are offering direct support to those affected.
Unfortunately, legitimate charities face competition from fraudsters who either solicit for bogus charities or aren’t entirely honest about how a so-called charity will use your contribution. It’s wise to be wary of charities that spring up overnight in connection with current events, like the theater shooting.
Urgent appeals for aid that you get in person, by phone or mail, by e-mail, on websites, or on social networking sites may not be on the up-and-up. The agency’s Charity Checklist has tips for guidance on donating wisely.
Inertia of the Humanitarian System Means More Famines are Inevitable
Inertia of the Humanitarian System Means More Famines are Inevitable
Source: Chatham House
Early warnings that could prevent food shortages from developing into famines are not triggering early action among humanitarian agencies or donor governments, resulting in thousands of avoidable deaths, says a new Chatham House report. Instead, the humanitarian system tends to mobilize only once a crisis hits, when it is by definition too late to prevent an emergency.
Modern early warning systems provide a crucial window of opportunity during which the humanitarian system can intervene to avert disaster and prevent the downward spiral into destitution and starvation that can follow from drought. This opportunity is being wasted, according to the report, launched on the first anniversary of the 2011 Somalia famine declaration.
The report author, Rob Bailey, says, ‘Organizations need to look carefully at how they can reward decision-makers for appropriate early action and penalize inappropriate delay. Unless the humanitarian system gets to grips with the fundamental constraints of perverse incentives and adverse politics, more avoidable catastrophes are inevitable.’
Top Trends in Nonprofit Technology
As a nonprofit, you face a complex and evolving environment. New organizations each day make competition fiercer, while a trend in the privatization of funding sources has created myriad challenges for building a case for funding and demonstrating results to maintain funding levels year over year. Your donors are different, too. A “thank you” letter is the bare minimum standard for stewardship. Today’s donor wants to better understand and engage in your mission. And because of this increased interest and involvement, individual donors, as well as funders, have an increased focus on accountability, outcomes, and evaluation, as well. To keep your organization alive and in the forefront of your donors’ minds despite these challenges, you may feel the need to reinvent your approach to fundraising — either upgrading areas of operations that seem to be under-serving staff, constituents, and beneficiaries, or reevaluating your programs as a whole. Technology can play a key role in efforts to enhance, optimize, or reengineer processes and operations.
Protecting Your Constituents’ Personal Information: A principle every nonprofit should embrace
Beyond HIPAA, FERPA, PIPEDA, PCI Compliance, and other government-mandated privacy regulations, nonprofit organizations have an obligation to protect the privacy of constituent information. Governmentmandated privacy regulations tell us what kinds of information we can collect, opt-in and opt-out permissions we may need, and how we can use the information acquired. But every organization should further define how staff will manage requests for constituent information such as addresses and phone numbers. You can educate trustees, volunteers, and staff by creating and enforcing a policy to protect the personal privacy of constituents by maintaining confidentiality of all constituent information.
CRS — The Peace Corps: Current Issues
The Peace Corps: Current Issues (PDF)
Source: Congressional Research Service (via Federation of American Scientists)
Founded in 1961, the Peace Corps has sought to meet its legislative mandate of promoting world peace and friendship by sending American volunteers to serve at the grassroots level in villages and towns in all corners of the globe. As of end September 2011, about 9,095 volunteers were serving in 76 nations.
In 2012, the 112th Congress is considering the President’s annual funding request for the Peace Corps, efforts to reauthorize the Peace Corps, and related issues. In February 2012, the Administration issued its FY2013 budget request, proposing $374.5 million for the Peace Corps, $500,000 less than the FY2012 level of $375 million approved in December 2011 in the Consolidated Appropriations Act 2012 (Division I of P.L. 112-74, H.R. 2055).
The last Peace Corps funding authorization (P.L. 106-30), approved in 1999, covered the years FY2000 to FY2003. On July 21, the House Foreign Affairs Committee reported H.R. 2583, the Foreign Relations Authorization for FY2012, which includes language authorizing $375 million for the Peace Corps in FY2012 as well as provisions addressing Peace Corps safety and security. On July 27, 2011, Senator Kerry introduced S. 1426, the Foreign Relations Authorization for FY2012 and FY2013, including language authorizing $439.6 million for the Peace Corps in FY2012 and “such sums as may be necessary” for FY2013.
On November 21, 2011, the Kate Puzey Peace Corps Volunteer Protection Act of 2011 was signed into law (P.L. 112-57). It puts into place a number of safeguards to address and reduce the incidence of volunteer rape and sexual abuse.
A comprehensive assessment of Peace Corps operations was published in June 2010. It makes 64 recommendations supporting a six-point strategy to be implemented in the coming years.
Current issues include the extent to which there is available funding for Peace Corps expansion, whether the Peace Corps has the institutional capacity to expand, and whether volunteers are able to function in a safe and secure environment.
This report will be updated as events warrant.
2012 Nonprofit Social Networking Benchmark Report
Blackbaud, NTEN and Common Knowledge just released the fourth annual 2012 Nonprofit Social Networking Benchmark Report.We learned a lot of things, but one prevailing theme stood out — despite limited budgets and staffing, nonprofits continue to find great value in their fast-growing social networks.The report is packed with insights into how nonprofits are leveraging social networks as part of their marketing, communications and fundraising strategies. Have a look at the INFOGRAPHIC below then download the full report to learn more about important behaviors and trends.
Guide to the Internal Revenue Service Decision-Making Process Under Section 501(c)(3) for Journalism and Publishing Non-Profit Organizations
Guide to the Internal Revenue Service Decision-Making Process Under Section 501(c)(3) for Journalism and Publishing Non-Profit Organizations
Source: Social Science Research Network (Berkman Center for Internet & Society)
Confusion about the IRS’s processes and standards has led to criticism of the IRS as being arbitrary in its decision-making process and adverse to the journalism industry. But while there have been controversial decisions by the IRS in particular cases, it is critical to understand that the IRS’s primary duty with respect to these applications is to protect the public fisc by ensuring that only organizations that meet criteria enacted by the United States Congress are granted a Section 501(c)(3) exemption. Although the IRS has some discretion in applying these criteria, it does not have the authority to recognize broad new categories of tax-exempt organizations, such as news outlets.
Until and unless there is action in Congress to facilitate tax exemptions for journalism non-profits, news organizations seeking 501(c)(3) status must learn how to structure their operations to meet the existing standards applied by the IRS. To that end, this guide is intended to provide practical information regarding the standards that the IRS applies in determining whether to grant federal tax-exempt status to a non-profit organization under Section 501(c)(3).
China Civil Foundation Developing Trends.2011
Foundation Data Review is a series of data research products based on the most complete foundation database independently developed in China by China Foundation Center, which annually produces a number of research reports targeted at various types of foundations, industrial fields and hotspot topics. The series of reports conducts research and development of information of public benefit organizations with its information platform, targeting at the issue of transparency currently prevailing in public benefit and charity fields while extensively disseminating the research findings. Covering all foundations, the series of reports promotes the transparency and public confidence of foundations in that it contributes to the trust and confidence in public benefit organizations by releasing the research findings.
Foundation Support for Water-related Issues Growing
In recent years, the number of U.S. charitable foundations awarding grants for water, sanitation, and hygiene (WASH) projects around the world has more than tripled. A new research brief by the Foundation Center, Foundation Funding for Water, Sanitation, and Hygiene, finds that between 2003 and 2010 this growth in the number of active funders was accompanied by a nearly five-fold increase in the number of organizations receiving these grants, to the tune of $144 million in 2009-2010. And, while WASH funding as a proportion of international grantmaking overall has grown from 0.2 percent in 2003, it remains very small (1.7 percent in 2010).
+ Full Report (PDF)
