Economic Recovery Provisions that Impact Nonprofits

In the coming weeks, Congress will be finalizing the American Recovery and Reinvestment Act of 2009 (economic stimulus package) in response to the economic crisis facing our country. Currently the House and Senate are revising their bills and offering amendments.

This large piece of legislation includes a focus on job creation, tax cuts and incentives, and financial relief for families, businesses and individuals. In addition, the bill includes funding to inject cash into struggling state economies which will help those nonprofits who count on their state funding contracts and commitments.

The economic stimulus bill will impact the nonprofit sector and the clients they serve, therefore it’s important to understand its many intricacies. To make sense of it all, here are some of the provisions being considered that would impact nonprofits:

E-verify Program
A provision requiring any organization receiving funds under the economic recovery legislation to participate in the federal E-verify program. E-verify is an online database run by the Department of Homeland Security and the Social Security Administration that enables employers to verify an employee’s Form I-9 immigration information.

Community Development Fund
An amendment that would exclude nonprofit entities from competing for over $3.4 billion in community development funds for neighborhood stabilization activities. If adopted, only state and local governments could compete for the funds.

Compassion Capitol Fund
An amendment to increase funding of the Compassion Capitol Fund by $1/2 billion. The Compassion Capitol Fund is a federal grant program to fund things such as, “one-time capacity building grants directly to faith-based and community organizations” and “intermediary organizations that provide training, technical assistance, and capacity-building”.

Volunteer Mileage
An amendment identical to the text of the Giving Incentives to Volunteers Everywhere (GIVE) Act. This provision would raise the volunteer mileage deduction to at least 24 cents per mile and exempt from taxable income mileage reimbursements up to the business rate (currently 55 cents/mile).

Bridge Loan Proposal
A proposal to address the increasing need of nonprofits to obtain the necessary lines of credit to weather the increasing delays in government payments for the services they deliver.

Child Care and Development Block Grants
$2 billion to help states provide child-care services to low-income families.

Medicaid
$87 billion to increase the federal share of Medicaid.

Head Start and Early Head Start
$2.1 billion for early-education programs.

Social Services Block Grants
$400 million to help states provide services to unemployed and low-income people.

AmeriCorps
$200 million for this national-service program to create positions to help nonprofits hit by increased need and shrinking donations.

Food Banks
$150 million to support food banks, which have faced an influx of clients needing food.

Child Tax Credit
Increase the eligibility for the refundable child tax credit in 2009 and 2010 by lowering the threshold to $6,000.

Earned Income Tax Credit
Expand the EITC to provide increased credit for 3 or more children and additional marriage penalty relief for married couples.

Support Gulf Coast Civic Works Projects in the Economic Recovery Package

Right now advocates are trying to include the Gulf Coast Civic Works Act into the economic stimulus package. The main focus of this legislation is to create resident led, human rights based recovery projects that will create “green” jobs and training opportunities for residents and displaced families to revitalize Gulf Coast infrastructure including housing, transportation, and the environment.

The U.S. House of Representatives did not include Gulf Coast Civic Works projects in their draft of the American Economic Recovery and Reinvestment Act. Time is running out but we still have a chance to influence the Senate's version of the recovery package and we need your help today!

There is a renewed interest in the policy and Senators Mary Landrieu, Thad Cochran and Richard Shelby still have an opportunity to include authorizing and funding language for Gulf Coast Civic Works into this bill, especially Senator Landrieu. Please call Senator Landrieu today to express your support for the inclusion of Gulf Coast Civic Works projects in the economic recovery package. A script and the phone number is listed below.

Senator Landrieu (LA) - 202-224-5824Ask for the Chief of Staff or Legislative Director, but you can leave a message with whoever answers the phone. They will keep track of the number of calls they receive.

Tell them:

"Hello, my name is ________________ and I am working on the Gulf Coast Civic
Works campaign. (If you are from the Gulf Coast, please indicate
this.)

I am calling to ask Senator Landrieu to offer the Gulf Coast
Civic Works as an amendment to the economic recovery package during the
Appropriations Committee mark-up.

The Gulf Coast Civic Works Act
was originally introduced in the House. Gulf Coast Civic Works projects
would create 100,000 good jobs and training opportunities for local and
displaced workers to rebuild infrastructure and restore the
environment. Funding for these projects would flow directly from the
Federal Coordinator's office to local entities, administering these
projects.

Gulf Coast advocates have been working diligently to
identify ready-to-go projects that could stimulate the Gulf Coast economy
quickly. (If you know of a ready-to-go project, please explain what it is
here.)

Having Gulf Coast Civic Works authorized and funded through
the economic recovery package is crucial for communities still recovering across
our region.

Thank you."

Why Should Your Nonprofit Care About Capital Outlay Reform?

Nonprofits can get funding to buy land, buildings, equipment, etc. through the state Capital Outlay process. Governor Jindal has outlined the following criteria for a nonprofit to receive funding:

• must have statewide or substantial regional impact.
• must have been presented/openly discussed during the legislative session.
• must be a state agency priority.
• must have the proper disclosure form published online prior to consideration for funding (consistent with information provided in the House disclosure form).

In the 2008 Regular Session of the Legislature, discussion and debate about the Capital Outlay process ultimately resulted in a law outlining plans for Capital Outlay Reform. It is clear that the goal of the Reform Legislation is to move the project selection process away from an emphasis on politics and towards an emphasis on objective evaluation criteria.


LANO and its member organizations have the opportunity to try and protect our interests by interjecting ideas into the Capital Outlay Reform rule-making process. The details of the new Capital Outlay Reform initiatives will be developed by the Division of Administration – Office of Facility Planning and implemented in an incremental process that will involve discussion and approval through a series of public hearings by four legislative oversight committees.


Sign up for LANO's advocacy and public policy emails to receive updates on Capitol Outlay Reform and ways in which your organizations can be involved in the process.


For more information, download our PDF on Capitol Outlay, how to apply for funding, and Capitol Outlay Reform.


LANO has contracted with James Pupera to keep our members and future members informed on Capital Outlay Reform initiatives, the proposed changes to the Capital Outlay process and understanding how those changes will impact your interests. Mr. Purpera has extensive experience in the State Capital Outlay process having worked for the Division of Administration (Facility Planning & Control) as a Budget Analyst and Budget Manager in the Capital Outlay program, and then having worked for the Legislature as a Budget Analyst for the Ways and Means Committee and the Appropriations Committee.

Nonprofit Thrift Stores and Distributors of Used Children’s Products Beware

In February 2009, new requirements of the Consumer Product Safety Improvement Act (CPSIA) take effect. While aimed at manufacturers and importers of goods with lead content that could harm children, the new law also applies to sellers of used children’s products, such as thrift stores.

While resalers do not have to meet certification standards, or test children’s products, they cannot sell any that exceed the lead limit, unless they have information to indicate that the products being sold have less lead than the new limit. Those resellers that do sell products in violation of the new limits could face civil and/or criminal penalties.

Read the full press release http://www.cpsc.gov/cpscpub/prerel/prhtml09/09086.html or visit the Consumer Product Safety Commission (CPSC) website www.cpsc.gov for more information.

Outstanding ROI Award Announced for Shreveport-Bossier Area Nonprofits

In today’s economic climate, donors to nonprofit organizations are not simply givers but investors who expect a solid rate of return and measureable outcomes. More than ever, donors are seeking to invest in organizations that can bring about positive change at an efficient cost.

The Community Foundation of Shreveport-Bossier is offering an annual award to honor a Shreveport-Bossier area nonprofits that has demonstrated an outstanding ROI to encourage our this type self- measurement and to reward those who already excel in this area.

The award comes with a $10,000 grant to start or add to the winning organization’s endowment at the Community Foundation of Shreveport-Bossier. The application deadline is January 30th.

Download the application at http://www.comfoundsb.org.

Action needed on Federal nonprofit bridge loan

Your action is needed to encourage Congress to include in its final package an emergency bridge loan program [creation of a bridge loan fund] for nonprofits that are experiencing severe cash flow constraints. A rapidly growing number of nonprofits around the country are struggling to maintain services and staff because of ever-lengthening delays in payments from state and local governments, an inability to obtain necessary lines of credit, and declining private contributions.

The Independent Sector (IS) estimates that approximately $15 billion in reimbursements -- 18 percent of the annual funding government agencies provide to nonprofit human service providers -- is currently delayed or soon will be if this problem is not addressed quickly. This bridge fund cover this $15 billion gap and preserve the jobs of 300,000 nonprofit employees necessary for the delivery of vital services to millions of Americans in need. The proposal would essentially be revenue neutral to the federal government, as the loans are slated to be repaid when state and local governments are able to resume their normal reimbursement procedures and schedules.

Please contact your Senators and congressional representatives [talking points and sample letters are provided [publicpolicy@independentsector.org.], particularly those that sit on either the House or Senate Appropriations committees, to urge inclusion of the program in the economic recovery package they will be working on over the next few weeks.

Federal lobbying rules

Public comment is being requested by the Clerk of the U.S. House of Representatives and Secretary of the U.S. Senate about federal lobbying; specifically, on Form LD-203 Semi-Annual Disclosure Form for registered lobbyists and individual lobbyists. Registered lobbyists or lobbying entities can take advantage of this opportunity to provide suggestions at http://lobbyingdisclosure.house.gov/ (click “contact us’).

Nonprofit collaboration in workforce development

For nonprofit organizations engaged in workforce development, a new instructional guide has been published by Seedco to assist Workforce Development Boards (WIB’s) in developing successful partnerships with faith-based and community groups. The Project Reach-Out Guide provides a step-by-step instructional plan for creating networks in communities to improve outcomes. Find this resource at www.seedco.org/pro_toolkit.

Economic Vitality for Nonprofits

The National Council of Nonprofits (NCNA) has developed a new resource that is available to nonprofits, policymakers, and the public about economic vitality for the future. The free resource provides a timely analysis of the impact of the economic downturn on nonprofits. A special feature of this free resource is information about grantmakers that are supporting nonprofits with extra contributions to assist nonprofits at this challenging time. You can find the resource at www.councilofnonprofits.org/economy.

LANO Not Affiliated with XL Bingo

XL Bingo, a video bingo company, recently sent out an email solicitation addressed to some LANO members that has created confusion.

The wording of the email construes that LANO may have endorsed their company, or that LANO gave them a referral. Neither is true.

LANO is in no way affiliated with XL Bingo and does not endorse it or its services or products. We have contacted XL Bingo to request they discontinue using LANO's name in their solicitations. We apologize for any confusion.

Victim Services Funding: Deadline January 21

The U.S. Office for Victims of Crime (OVC) is accepting applications for the HOPE II grant to create, expand, or improve victim services across the country, through faith-based and/or community-based organizations serving underserved crime victims in high-crime urban areas.

The subaward period is six months from March 1 – August 31, 2009 and each subaward amount is up to $50,000.

Download the RFP here, and be sure to submit your proposals by Wednesday, January 21st, 2009 at 5:00 p.m. EST.

Starbucks C.O.A.S.T. Fund Grant Deadline March 6

The Starbucks C.O.A.S.T (Creators of a Strong Tomorrow) Fund provides grants from $2500 - $10,000 to neighborhood nonprofit organizations that are directly involved in recovery in communities most affected by hurricanes Katrina and Rita.

The deadline to apply for this round of grants is March 6th.

The fund is the result of a collaboration between the Starbucks Foundation, the Greater New Orleans Foundation, the Baton Rouge Area Foundation and the Community Foundation of Acadiana.

Applications are submitted through the community foundation in your region of the state. Visit the Starbucks C.O.A.S.T. Fund website for more information on how to apply.

KLB Grant for Combating Litter Due Feb. 6

Keep Louisiana Beautiful is awarding up to $15,000 to nonprofits committed to reducing litter in their communities. Applicants must meet the following criteria in order to be eligible for funding consideration:

• Demonstrate a strong commitment to supporting the mission of KLB; and
• Demonstrate the provision of a valuable service to the community in which it serves.

The electronic application must be emailed to Melanie-Peck_klb@cox.net no later than February 6, with grants awarded by February 27.

For an official community grant application and guidelines visit www.keeplouisianabeautiful.org. Direct questions can be sent to KLB Affiliate Services Coordinator Melanie Peck at Melanie-Peck_klb@cox.net.

Recovery Resources Fairs Across Louisiana

Access to government programs and potential sources for funding and technical assistance put you one step closer to implementation of your recovery projects. The Recovery Resource Fair is an unparalleled event that offers many promising leads to these resources, all under one roof.

Representatives from federal and state agencies, as well as a number of the top giving foundations in the State of Louisiana, will present an overview of the available programs and funding opportunities offered by their respective agencies/organizations.

In the afternoon, you may schedule appointments for face-to-face conversations with representatives from these agencies/organizations -- such as the U.S. Department of Agriculture, the U.S. Economic Development Administration, and the Governor’s Office of Homeland Security and Emergency Preparedness -- to discuss development of your projects and to address options to facilitate your recovery and/or preparedness goals.

Dates and Locations

• Houma: Tuesday, February 3rd
• Ruston: Wednesday, February 4th
• Lake Charles: Thursday, February 5th
• Chalmette: Friday, February 6th

Space is limited; for more info and to register online, please click here.

Questions? Contact Paul Bratton by phone at 504-762-2202 or by email at FEMA-LARecoveryResourceFair@dhs.gov.

LANO Helps National Council of Nonprofits Develop Recommendations to the Presidential Transition Team

To ensure that the voices of Louisiana's nonprofits get heard, the Louisiana Association of Nonprofit Organizations (LANO) which is a member of the National Council of Nonprofits ( http://www.councilofnonprofits.org/) helped develop recommendations submitted to President-Elect Obama’s Transition Team. Members of the Transition Team had asked the National Council of Nonprofits for ideas regarding ways the federal government can work better with nonprofits.

To put its recommendations in context, the National Council of Nonprofits’ report emphasizes: “The nonprofit sector serves as America’s social safety net to provide for people needing basic human services like food, shelter, and health care. Yet that community safety net is unraveling rapidly, straining to endure the additional weight dropping on it from the economy. With more people losing their jobs due to layoffs, losing their homes due to foreclosures, and losing all or a portion of their health insurance due to employers cutting jobs and benefits, the demand for nonprofit services is skyrocketing.”

At the same time, the report continues, “nonprofit revenues are plummeting as foundation assets evaporate, state and local governments cut contracts and freeze reimbursement rates, corporate donations shrink, and individuals suffer financially. The nonprofit sector remains committed to providing as much relief as possible to those in need. However, despite the purest intentions and the strongest dedication, community nonprofits cannot continue to do so much more with so much less for very much longer.”

The report provides an overview of how the economy is harming nonprofits, and cites a projection by noted public service expert Dr. Paul Light that the menacing economy could wipe out as many as 100,000 nonprofits within the next six months. “If that happens,” the Council says, “then many needy people will have no place to turn.” Moreover, that will increase significantly the number of jobs lost across the country.

The National Council of Nonprofits’ recommendations include the following:

· Creating the Social Entrepreneurship Agency for Nonprofits called for in the Obama Plan within the first 100 days so it can help strengthen nonprofits, especially community-based nonprofits because 93% of all charitable nonprofits have revenue under $1 million.
· Focusing the economic recovery plan “first on maximizing operating budget relief for state and local governments” to prevent additional substantial state operating budget reductions because “future cuts to state and local governments will greatly exacerbate our nation’s current economic crisis.”
· Establishing a new Community Services Protection Fund to restore “the public/private covenant between governments and nonprofits by investing in nonprofits that perform work that traditionally has been performed and/or funded by government – because past government policies that shifted government human service programs to nonprofits often did so without full payment to provide those services.”
· Eliminating the distinction between the Standard Business Mileage Rate (now 58.5 cents per mile) given to corporate and federal employees and the substandard Charitable Mileage Rate (now just 14 cents per mile) for volunteers so there is one rate, set the same way, and treated the same way for tax purposes so volunteer workers helping others are treated the same as paid workers.
· Strengthening democracy by restoring the American people’s ability to amplify their voices through nonprofits so the people may participate meaningfully in their government.

“We were honored to have an opportunity to play a role developing this unique communication on behalf of nonprofits in Louisiana said Melanie Guste, Ph.D., President and CEO of LANO. “Although this happened in lightening speed, given the nature of a transition, it was exciting to see behind the scenes as ideas came from across our nationwide network to inform the process.”

In releasing the package of recommendations, Tim Delaney, president & CEO of the National Council of Nonprofits, said, “That the Transition Team reached out to seek the views of America’s community-based nonprofits is most encouraging. We look forward to working with the incoming Administration and new Congress to help solve the significant challenges our country faces.”

For more information about how the economy is hurting nonprofits across the country and strategies nonprofits can use, visit the National Council of Nonprofits’ online clearinghouse of information, the Nonprofit Economic Vitality Center, at www.councilofnonprofits.org/economy/.

The National Council of Nonprofits is the network of state and regional nonprofit associations serving more than 20,000 member organizations. By linking local nonprofit organizations across the nation through state associations, the National Council helps small and midsize community-based nonprofits manage and lead more effectively, collaborate and exchange solutions, engage in critical policy issues affecting the sector, and achieve greater impact in their communities.

Contact Information:
If you would like to see a full copy of the NCNA recommendations please contact Elisabeth Gehl, LANO’s New Orleans Director of Public Policy, at elisabeth@lano.org.