The Rundown - April 29, 2022
The latest news and notes from the nonprofit and philanthropic sectors.
The Rundown - Draft Day Edition
It is that time of year when young men start to look at their calendar and the minds and hearts start to dance with wild visions of celebration and joy. You might be thinking that I am talking about the start of Spring (which really hasn’t arrived here in Ohio). No, I am talking about the NFL Draft.
The Draft, which is now dragged into a four day spectacle is the most football-centric event without there being any actual football being played. However, every team (with the exception of the New York Jets) will claim this weekend was an overwhelming success and proudly tout that this class of rookies will be the foundation every team needs to take them to the Super Bowl within the next three to five years.
In all seriousness, these young men (and yes, these are young twenty-somethings) will have some huge decisions coming up for them and I personally wish for their continued success and a healthy career.
New Federal Legislation Stumbles out of the Blocks
This story from Independent Sector talked about a recently introduced piece of federal legislation entitled “The Nonprofit Sector Strength and Partnership Act of 2022”. The bipartisan legislation aims to meet the following objectives:
To enhance the ability of the nonprofit sector to address public challenges and maximize opportunities to improve quality of life in the communities where nonprofit organizations work;
To strengthen communities across the United States by making the federal government a more productive partner with nonprofit organizations through the establishment of better federal coordination with respect to enhanced transparency and greater support for the work of nonprofit organizations;
Collect, assemble, and make available federal data and research on the nonprofit sector and to generate new data and research where necessary to support the development of effective federal policy; and,
Raise awareness of the nonprofit sector and the vital civic, social, and economic contributions nonprofit organizations make to the United States
One of the most tangible aspects of the legislation is that it will dramatically change the current IRS Form 1023 EZ. The form that was introduced a few years ago was designed to be a cheaper and more streamlined way to allow more groups to gain tax-exempt status. What has happened, according to Tim Delaney, “ [The IRS"] effectively stopped screening applications for tax-exempt charitable status to make sure organizations legally qualify. It did so by using a stripped down , Form 1023-EZ, that makes it too easy for the IRS to ‘rubber-stamp’ applications and grant nonprofit status to bad actors.” The same article sites IRS Taxpayer Advocate research that states that as many as 1/3rd of the Form 1023-EZ Forms approved for tax-exempt status were given to ineligible applicants.
Most parties believe that the legislation has very little chance of passing, given few outside supporters and it’s introduction during an election year.
Is Philanthropy on the Defensive?
This was an interesting and long (get in a cozy seat for this one) piece written on the Capital Research website. The piece goes in depth in the history of philanthropic giving in the United States with it’s complicated relationship between politics and economics.
I found the piece instructive, especially as a very comprehensive piece of research on the sector and as the article looks forward to the future of philanthropy, it has a grim assessment: “Philanthropy is among several major, once-reliable American institutions toward which both wings of our political spectrum now have deep, resentful, and growing distrust.”
Yikes.
And the author (Michael Hartmann) is right. Philanthropy, as an institution, is dying off just like every other institution. Take a look at religious institutions, academia, government….you name the institution and it has come under attack. Philanthropy, particularly from both sides. Each side of the political debate is convinced that the other side is using the tax code, specifically, and non profit organization, more generally, to gain an unfair advantage.
Philanthropy moves at the speed of trust - trust of our donors, our nonprofits, our clients. Nonprofit organizations largely exist due to a market failure that our capitalist system couldn’t provide and it requires charitable giving to make that work happen. At it’s heart, philanthropic and nonprofit work isn’t political - it’s human. It is about valuing the dignity each person has. There is no need for politics to be a part of it.
Inflation Hitting the Nonprofit Sector
This report from Philanthropy Roundtable is certainly not breaking news for anyone even remotely working with nonprofit groups; inflation is hitting the sector hard.
“Last year we used to get three palettes, and now it’s reduced just down to one. We still are very fortunate to be able to receive it. But being the largest pantry in Palm Beach County, it puts a big dent in our finances.” - Marlene Mejia - CEO of a food pantry in Boyton Beach, Florida.
As you might imagine, nonprofits get the double punch during difficult times like these. Like regular consumers, nonprofits are having difficult times getting materials and goods needed to be handed out to families and households and needs. Secondly, increased economic pressures from inflation is causing an increased strain for services.
Increased demand for services, coupled with higher prices and supply chain challenges is making the sector less and less secure with each passing day.
Is This Event On Your Calendar?
The Mosaic of Community Leadership Conference, hosted by the Paul G. Duke Academy for Community Leadership and the Edison State Center for Leadership Development is scheduled to take place on Wednesday, May 18th at Edison State Community College in Piqua, Ohio. This is a wonderful one-day conference that will feature Dr. Karen Townsend of KTownsend Consulting and multiple breakout sessions.
Check out more at this link!
What Can We Work on Together?
Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?
Why?
Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.
A Quick Note of Thanks!
Thank you all for subscribing to this newsletter. The subscription numbers continue to grow and from what I am learning, this side job seems like it has “sticking power”; seven months in and this is still going strong. Each day brings a new subscriber, a new phone call, a new experience; all of this built on my desire to help nonprofit and philanthropic leaders like you feel less lonely and more empowered to do the best work they can! This is only possible through your support - thank you!
I know many of you have shared this with your friends and colleagues and I am very grateful. Thank you! If you haven’t share it yet…..well, here is your chance….
Ready to Learn Something New?
Spring is a wonderful time to visit Indianapolis and it opens a perfect opportunity to sharpen your skills and meet new professionals in the field. I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!
Other Ways to Connect
Our coaching practice has openings starting here in 2022. If you are interested in working with me to get your nonprofit organization on a track to achieve the big missions you have for your organization, please reach out to me at pinnaclestrategiesltd@gmail.com.
Here are some other ways you can keep in contact with Pinnacle Strategies!
Check us out on our LinkedIn Page
Check us out on the Celebrating Leadership Facebook Page.