Hidden Issues

Posted on March 5, 2013 by Julia Cain

Yesterday, in The Daily Wrag (Washington Regional Association of Grantmakers), President Tamara Copeland explored “What sequestration means for philanthropy:”

I want to focus on the hidden issues. Much of the impact connected to sequestration will be far less overt. The social worker in me says that as already stressed individuals deal with this reality, mental health-related incidents will also increase. There may be increased incidences of domestic violence, more emergency room visits and falling school performance as home environments become tense. Consider this article about the recession’s impact on our region’s mental health, written when our local economy was actually faring better than the rest of the country.

“The Recession’s ‘Silent Mental Health Epidemic,’ the October 2011 Business Insider article to which Copeland points, discusses a Rutgers University study of “the long-term unemployed,” which found that “32 percent were experiencing a good deal of stress” and “at least 11 percent reported seeking professional help for depression.” Moreover, many more did not have the insurance benefits or financial resources to seek such help, despite potentially needing it.

As Copeland suggests, while our region’s funders should of course ensure that basic needs are met, “it is critical that we keep in mind the less obvious needs [as] a failure to support those, particularly mental health care, can lead to dire consequences.” She also points out that, as much or more so than sequestration, tax reforms could have a critical and perhaps longer-term effect on the national and local nonprofit community.

What are your thoughts? What might be the more “hidden” effects of sequestration?

In The News …

Posted on February 20, 2013 by Julia Cain

Plan to close VA institutions stokes worry for families of the developmentally disabled (Washington Post): “Virginia is among the last states to begin dismantling its large institutions for the developmentally disabled, a decision that was made as part of a year-old settlement agreement with the Justice Department […] All but one of the commonwealth’s five training centers, as the state calls them, are to be shuttered by 2020.” Judith Korf, the mother of a resident of the Northern Virginia Training Center, points out that “I think the past has shown that [the training center] is the only thing that works.” While Virginia officials remain “confident that the training centers’ residents can be properly cared for in the community, [..] there is deep concern that the state is rushing the process to meet unrealistic, arbitrary closure deadlines.”

Leaders of metro counties urge Congress to act on budget (Gazette: Prince George’s): “Impending federal sequestration could damage the fiscal stability of Maryland’s metro counties and leaders of those counties are urging congressional action […] county executives Isiah Leggett, Rushern L. Baker III and Kenneth S. Ulman gathered Tuesday to call on Congress to compromise and stop sequestration.” Montgomery County executive Leggett argued that “the the federal job loss piece alone could cost the county as much as $500,000 a day in local income tax revenue” for his county and Prince George’s county executive Baker “said about 10 percent of Prince George’s jobs are federal.”

Gates, Buffett push Giving Pledge international (Seattle Times): “British billionaire and Virgin Group founder Richard Branson and his wife Joan are among the newest philanthropists who have pledged to give away half their wealth to charity.” This year, the Bill and Melinda Gates and Warren Buffett-initiated Giving Pledge, has grown to include “its first international members, including 12 wealthy individuals and couples from Russia, South Africa, Australia, Germany, India, the United Kingdom and Malaysia.” Since 2010, over 100 individuals and families have signed the Pledge.

In The News …

Posted on February 13, 2013 by Julia Cain

DC, advocates at odds over homeless families; 900 people still in shelter (Washington Post): “This winter, the District’s shelter for homeless families at DC General Hospital is crammed full — 372 adults and nearly 600 children […] City officials say that hard times and the lack of affordable housing in poor neighborhoods are to blame for the continuing crisis of family homelessnes.” Last year, the number of homeless families in the District jumped by 18 percent and advocates argue that DC “is not doing nearly enough to help the neediest residents find permanent housing at a time of budget surplus.” Learn more about Catalogue’s homelessness and housing nonprofits right here.

Class-Divided Cities: Washington, DC Edition (The Atlantic): “More than any other metro we’ve covered, greater Washington, DC is a creative class region […] These are high-skilled, highly-educated, and high-paying positions where workers average $90,442 in wages and salaries, fourth highest in the nation […] Still, the class divide in the region is pronounced. The creative class is concentrated in the center of the metro, as the map shows.” A map charting the geography of class in the region shows a concentration of the creative class to the west and service to the east, yet almost no clusters of working class residents, implying that “Greater Washington is a fully post-industrial region.” Explore the interactive maps right here.

Tech’s new entrepreneurial approach to philanthropy (USA Today): “The intersection of technology and philanthropy is creating “philanthrocapitalism,” borrowing ideas from venture capitalism to fund non-profits.” For example, “NFS [Not For Sale], a model of [eBay founder Pierre] Omidyars’ brand of philanthropy, is based loosely on a venture-capital firm’s approach. And it is quickly becoming a powerful agent for social change, as eBay was for commerce.” Says Suzanne DiBianca, the co-founder and president of the Salesforce.com Foundation, “Companies are beginning to understand their power in leveraging their assets to non-profits […] It’s not just throwing a check over a wall.”

In The News …

Posted on January 30, 2013 by Julia Cain

At rally, leaders promise action on affordable housing (Greater Greater Washington): “Over 300 people rallied for affordable housing this weekend with the Housing for All Campaign […] The next few months will be critical for housing funding. The task force is scheduled to release its report in the next few weeks, and Mayor Gray will announce his housing plan.” Do you agree that affordable housing is poised to become “key political issue?”

Report: Current Approach To Strategic Philanthropy Is Limiting (The NonProfit Times): “The current top-down approach to strategic philanthropy limits its overall effectiveness,” according to a new study by the Committee for Responsive Philanthropy (NCRP). Says NCRP Executive Director Aaron Dorfman, “All grantmakers want to maximize the impact of their grants […] What they may not realize is that the missing piece in their grantmaking strategy is the social justice lens.” What do you think of the report’s central suggestions?

Free Tax Help Clinics Begin Friday (ARLnow): “Starting this Friday, Arlington County is holding free clinics to assist residents with tax preparation. The clinics are intended to serve residents with ‘low or moderate income.'” Several clinics list a maximum income for those interested in taking part; all clinics begin in February and run through April, with locations at public libraries, Department of Human Services, and ECDC Enterprise Development Group.

In The News …

Posted on January 16, 2013 by Julia Cain

3 Key Elements of Capitalist Philanthropy (Forbes): “Capitalist philanthropy begins with a profitable organization and then moves quickly to incorporate social impact […] The term is not brand new, but is being discussed more often as the millennial generation has developed a strong desire for meaningful work.” Forbes offers three keys to incorporating “capitalist philanthropy” into an organization: “Determine your cause,” “cast the vision,” and “maintain momentum.” What are your suggestions for launching social impact projects? Thoughts on the terminology?

How Small Nonprofits Can Improve Their Fiscal Health (Chronicle of Philanthropy): “Three-quarters of American nonprofits have annual budgets under $1 million, and most are even smaller. What these organizations lack in size, however, they make up for in impact.” Many such nonprofits also “struggle with financial challenges that are unique to their size and structure […] resources generally go directly into program delivery, [for example,] so they can’t invest in infrastructure”. The Chronicle offers five suggestions for small nonprofits to address and improve financial health, plus five ways that grantmakers can help.

UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising (CompassPoint Nonprofit Services): “A joint project of CompassPoint and the Evelyn and Walter Haas, Jr. Fund, the report found high levels of turnover and lengthy vacancies in development director positions throughout the sector […] Beyond creating a development director position and hiring someone who is qualified for the job, organizations and their leaders need to build the capacity, the systems, and the culture to support fundraising success.” Does the report reflect your experience? What do you think might “break the cycle?”

Micro-Entrepreneurs

Posted on January 10, 2013 by Julia Cain

by Marie LeBlanc, Community Partnerships Coordinator

For the past decade or so, microlending and microfinance have been a hot topic in international aid and development — and through microlending organizations like Kiva, an easy way for concerned global citizens from higher income countries to offer a helping hand to their brethren in lower income countries. Kiva is one of many crowd-sourcing organizations that lets donors lend amounts as small as $25 to collectively support micro-entrepreneurs around the world, who pay back those funds (through Kiva) to the original lenders. Nowadays, small business creation and entrepreneurship are very much at the heart of the conversation about kick-starting the United States economy, and Kiva has responded with an interesting solution: bring the international microfinance model to American cities.

This week, Kiva City launched its DC program, in partnership with Capital One Bank and Catalogue-nonprofit Latino Economic Development Center (LEDC). Kiva City DC is a new online portal connecting small business owners in our nation’s capital with Kiva’s global network of over 870,000 lenders. By providing loans to these entrepreneurs, lenders can help them start, sustain and grow their businesses — and even create new jobs. Kiva City DC is the fourth Kiva City site across the country — along with Detroit, New Orleans, and Los Angeles.

Capital One is helping to provide financial heft for the project — matching all loans made to businesses posted by LEDC online through Kiva through 2013. LEDC provides the borrower base, bringing its expertise in financial and small business skill building to the table, as well as its connections to the Latino community in Washington, DC. LEDC’s Community Asset Fund for Entrepreneurs works to identify qualifying borrowers in the D.C. area, administers the loans and posts profiles of each small business owner online at kiva.org. According to the Kiva City DC website, “Kiva lenders’ funds are used to ease the loan requirements for borrowers, including decreasing collateral requirements, interest rates and fees associated with loan disbursement. With Kiva capital, LEDC will reach out to borrowers that may not have met all of LEDC’s existing criteria, allowing the organization to grow its lending program.”

For more information on borrowers currently seeking loans through Kiva and LEDC, check out borrower profiles online here, and for information on recommending the lending process to potential borrowers, check out LEDC’s online application .

In The News …

Posted on January 9, 2013 by Julia Cain

DC area unemployment rate is unchanged at 5.3 percent (Washington Post: Local): “The Washington area jobless rate hovered at 5.3% in November, according to a Labor Department report released Tuesday [January 7] that revealed little change in the local employment picture […] the Washington economy has been steadily adding jobs, but not at a fast enough clip for the recovery to shift into higher gear.” Education and health services posted the largest job gains, with the latter alone adding 11,300 between November 2011 and 2012. Local leisure and hospitality continued to add jobs as well, while manufacturing and construction both subtracted. Overall, the area remains well below the national rate of 7.8%.

The Fiscal Cliff Legislation: A Primer for Nonprofits on Its Provisions (Nonprofit Quarterly): “The short message that should be taken away from the so-called “fiscal cliff” legislation passed last night [January 1] is that it is no time to relax […] Here is our scorecard on the fiscal cliff mini-bargain.” At the NPQ website, you can read an overview of the final legislation on charitable deductions, marginal tax rates, and other taxes (such as the payroll tax); that said, “good news for nonprofits and the communities they serve is that a variety of programs that benefit working class and lower income people have been saved — for the time being.”

Continue reading →

Fiscal Cliff — Averted?

Posted on January 3, 2013 by Spur Local

by Marie LeBlanc, Community Partnerships Coordinator

While many Americans across the county rang in New Year’s Day 2013 with pomp, circumstance, and auld lang syne, the United States Congress was (for once) hard at work — barely scraping through the passage of legislation that averted the dreaded “fiscal cliff.” However, is the danger really past? Various news outlets and media sources have been reporting on the “wins and losses”of the fiscal cliff bill, trying to help citizens make sense of it — and understand the real-world implications on their wallets this month and tax bills come April. Yesterday, the Nonprofit Quarterly’s Rick Cohen offered his take on the implications for nonprofits.

According to Cohen, changes made to charitable deductions and marginal tax rates (increasing only on households with annual incomes above $450,000) “constitutes an absolutely minimal touch on charitable contributions.” Due to various tax provisions, on everything from the expiration of the payroll tax “holiday,” to changes in capital gains and dividend income tax rates, the “fiscal cliff bill not only raises less revenues than the President’s proposal, but even less than Speaker Boehner’s Plan B.” However, many programs serving working class and lower income populations have been saved for now, including unemployment benefits and various tax credits on earned income, children, and renewable energy.

The specter of the cliff itself impacted municipal and county-level spending, even before emergency legislation was passed. According to the DC Fiscal Policy Institute, “the impact of the federal budget impasse on the District was felt 10 days before the New Year’s Eve fiscal cliff deal.” Despite signs of growth in the DC economy, instability in the federal budget prevents these signs from being fully recognized and providing the foundation needed for expanding, and even maintaining, levels of social spending. Programs for domestic violence, mental health, and educational enrichment have fallen victim to the budget gridlock.

Ultimately, Cohen offers this perspective on the budget solution, and its potential future impact:

The fiscal cliff isn’t just a matter of “saving” the maximum deductibility of charitable donations or avoiding the reinstatement of the arcane and minimal Pease amendment, but recognizing how dysfunctional the nation has become and how the communities’ nonprofits serve are the primary victims. If the focus of nonprofit advocates leaving shoe leather in the halls of the Capitol is simply on maximizing the value of the charitable deduction or, perhaps more accurately, maximizing the value of the deduction for ultra-wealthy tax itemizers, then the result, reflected in the fiscal cliff legislation and future bills to be addressed in the next couple of months, will be a truly pyrrhic victory for the communities nonprofits serve.

Request for Proposals

Posted on January 2, 2013 by Julia Cain

Happy New Year, friends!

And on this second day of the year, the application for the the 2013 Catalogue for Philanthropy is live and online:

The mission of the Catalogue is to create strong and vibrant communities by connecting caring citizens with worthy community causes. We do this by raising visibility and resources for the best small community-based nonprofits, and engaging donors in a more meaningful giving experience. To that end we publish an annual print Catalogue that is distributed to 25,000 high net worth individuals, encouraging them to give to vetted, community-based nonprofits. The past few years have seen new channels of distribution open for the Catalogue and its featured nonprofits — through corporate portals and our workplace giving program, a budding school portal program, and partnerships with local media.

Applications are due on February 25, 2013, at midnight. As we did last year, we’ll feature some FAQs a bit later in the month. So if you have any questions about the process, feel free to leave them in the comments and we will be sure to tackle them.

Looking forward to reading your application!