Tax Law Changes Related to Natural Disaster Relief

The National Disaster Relief Act, signed into law last year, provides tax relief for victims of federally declared disasters occurring after Dec. 31, 2007, and before Jan. 1, 2010. Please pass this information along to your nonprofit colleagues and clients, especially those impacted by Hurricanes Gustav and Ike.

This law provides a broad package of tax benefits that may be used by anyone who is affected by a federally declared disaster.


In summary, the National Disaster Relief Act:

• Allows all taxpayers, not just those who itemize, to claim the casualty loss deduction regardless of the taxpayer’s adjusted gross income level;
• Increases the amount by which all individual taxpayers must reduce their personal casualty losses from each casualty from $100 to $500 for taxable years beginning after Dec. 31, 2008. The reduction amount returns to $100 for taxable years beginning after Dec. 31, 2009;
• Removes the requirement that the net casualty loss deduction be allowed only if the casualty loss exceeds 10 percent of the taxpayer’s adjusted gross income;
• Provides a five-year net operating loss (NOL) carryback for qualified natural disaster losses;
• Provides for an increased charitable mileage deduction and an increase in the charitable use of a vehicle allowance.

DHAP Transition Plans Announced by HUD

On February, 5th LANO issued an advocacy alert about the Disaster Housing Assistance Program (DHAP). DHAP is administered by the U.S. Department of Housing and Urban Development (HUD) to provide long-term rental assistance for eligible families displaced by Hurricanes Katrina and Rita, and it was about to expire on February 28th.

DHAP is a program that directly and indirectly impacts nonprofits and the clients they serve. Nonprofits play a key role in helping clients with their housing needs and many of them have expressed concern about the expiration of DHAP.

Using LANO’s advocacy campaign, 104 people sent letters to their Louisiana Members of Congress asking them to urge HUD to extend DHAP. Thank you for taking the time to take action on this very important issue! It made a difference.

Due to our grassroots efforts, the Obama Administration will give temporary reprieve to the estimated 31,000 families that receive DHAP rental subsidies. HUD realized that there was not enough time between now and the end of February to process all DHAP renters into a permanent housing voucher program.

On February, 20th HUD announced details about a new six-month transition rental assistance program for families currently enrolled in DHAP. HUD and FEMA will provide the additional assistance to families as needed until August 31st to give them more time to transition out of the DHAP program, either to self-sufficiency or other federal or state housing programs, including HUD's Housing Choice Voucher (HCV) program, also called Section 8.

While the program runs until August 31st, starting March 1st participants will have to pay for themselves another $100 a month in payments to landlords - part of a transition to self-sufficiency.

HUD is also expanding outreach to all Housing Choice Voucher income-eligible families to encourage transition to HCV assistance, another measure aimed at helping families transition from disaster assistance during difficult economic times. Families who believe they may be eligible for Housing Choice Vouchers must immediately contact their local Public Housing Authority (PHA) to begin the application process.

HUD's recent decision is a relief to the 31,000 families on DHAP who will now have extra time to figure out alternative housing. This decision is not only a relief to those families, but the nonprofits that serve them as well.

Capitol Outlay Funding Update, February 20, 2009

At the 2/18/09 meeting of the Revenue Estimating Conference , there was a brief comment made about the $865 Million fiscal year 2007-2008 State Revenue Surplus. One of the Conference members suggested that while it would be difficult for the Legislature to agree to not spend this Surplus, he plans to recommend that the Administration and the Legislature seriously consider saving this Surplus for future unexpected needs.

For months there has been discussion around the Capitol about using at least 25% of this Surplus as a source of revenue to fund Capital Outlay projects (nonprofits can get funding to buy land, buildings, equipment, etc. through the state Capital Outlay process). This 25% would be about $216 Million. This amount of new funding in the Capital Outlay program would go a long way to ease the competition among Capital Outlay projects to be considered in the 2009 Legislative Session.

You might want to let your Legislators know that you have heard there might be an attempt to save rather than spend the Surplus, and let them know what you think about this issue. The Session starts on April 27th, but there will be a lot of “spending discussions” going on between now and the 27th.

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.

President Obama Announces Extension of Federal Coordinator's Office

Today President Obama announced that he will extend the Office of the Federal Coordinator for Gulf Coast Rebuilding. The mission of the Office of the Federal Coordinator for Gulf Coast Rebuilding is to identify and help address the priority needs for long-term rebuilding by working with the people on the ground and with decision makers in Washington. Since President Obama was elected, Gulf Coast advocates have been working hard to encourage the new Administration to extend this office because of its importance to the region.

The executive order that established the office was set to expire on February 28. President Obama extended the office through the end of the fiscal year, September 30, 2009. Over the upcoming six month period, Gulf Coast advocates will be using this opportunity to recommend ways that the Federal Coordinator's office can be strengthened such as creating a citizen based council, giving the Federal Coordinator more authority, and creating more ways the Federal Coordinator can report directly to the President.

The President also announced that he has asked Homeland Security Secretary Janet Napolitano and Housing and Urban Development Secretary Shaun Donovan to tour the Gulf Coast and New Orleans on March 5th and 6th to assess the rebuilding efforts. These visits will be a great opportunity to showcase the work that has already taken place in the Gulf Coast, and how much more is left to be done.

LANO will be involved in recommending ways to strengthen the Federal Coordinator's office and how to leverage the upcoming visits of the two Administration officials.

Nonprofits are Ready to Implement the Economic Stimulus Package

According to a survey conducted by the Johns Hopkins University Nonprofit Listening Post Project, Louisiana nonprofits are standing by with federal-stimulus-related projects worth $868 million - just part of the $166 billion in potential nonprofit projects across the country.

These “shovel-ready” projects can help Louisiana’s communities in two ways: by creating short-term jobs and by building long-term facilities that will serve our communities for decades. But to move these projects from the “shovel-ready” stage – meaning a project “has completed all necessary design work, is ready to be put out to bid, and could be underway within 90 days” – nonprofits need access to the economic stimulus dollars from our state and local governments.

These latest findings reinforce that nonprofits represent a strong and vital economic force in Louisiana’s economy. These projects should catch the attention of policymakers and business leaders as they look for quality investments to create jobs and strengthen our economy.


In the coming weeks, LANO will be conducting further analysis on how the economic stimulus package will trickle down to our state and local governments, and more importantly how nonprofits can leverage this funding. This survey reinforces that nonprofits have the projects and are ready to take on the challenge of implementing this large investment from the federal government.

LANO Website Maintenance

The LANO website will be down briefly this morning for necessary maintenance. It should be back online by 10:30am. The blog will remain available. We apologize for the inconvenience and appreciate your patience while we improve the site.

Survey Addresses Concerns about Fiscal Health of Nonprofits

The current economic climate means the possibility of reduced government funding at state, local and federal levels, as well as a trend for private donors to become more selective with their contributions. These challenges give rise to mounting concern as nonprofit organizations seek to carry out their vital missions.

LANO, The Community Foundation and Capital One conducted a Shreveport-Bossier Nonprofit Fiscal Checkup survey to provide direction for nonprofits and funders as agencies grapple with potential budget cuts that threaten their continued service to area communities. The goal is to better identify and leverage available resources in order to meet what some providers are already describing as a growing demand for aid.

Key findings include:

• 69% of nonprofits expect an increased need for their services in the next six months.
• These organizations expect the need for their services to increase 28%.
• 47% of organizations expect a decrease in their budget next year.
• These organizations expect an average funding decrease of 21%.

This morning the Community Foundation, Capital One and LANO held a briefing with funders and state and local government representatives to report the results, and released the report to local media. Download the full report.

Please share your stories of how the economy is affecting your organization's demand for services and funding stream in the comments.

Support 2-1-1 on February 11th: National 2-1-1 Day

February 11th is National 2-1-1 Day and you can recognize it by helping to expand 2-1-1 by advocating for a newly introduced federal bill.

Former Senator Clinton (D-NY) has re-introduced the “Calling for 2-1-1 Act of 2009” (S.211; H.R.211), which is a federal bill that will support and enhance the 2-1-1 calling program.

What is 2-1-1?

2-1-1 is an easy to remember telephone number that, where available, connects people with important community services and volunteer opportunities. The implementation of 2-1-1 is spearheaded by United Ways and information and referral agencies in states and local communities. United Way of America (UWA) and the Alliance for Information and Referral Systems (AIRS) strongly support federal funding so that every American has access to this essential service.

What is the Calling for 2-1-1 Act of 2009?

This federal bill authorizes $150 million for years one and two, and $100 million for years three through five through the U.S. Department of Health and Human Services (HHS) to help implement and sustain 2-1-1 nationwide. States would designate, if they have not already, a lead entity for 2-1-1 which would develop a statewide plan for implementation and administration of the funds. States would be required to provide a 50% match in order to draw down the federal dollars. Learn more about the Calling for 2-1-1 Act of 2009.

Take Action

LANO has created an advocacy campaign so that you can email a letter to your Member of Congress to ask for their support and co-sponsorship of The Calling for 2-1-1 Act of 2009.

Take action and send a letter to Congress about the importance of 2-1-1 and its role in supporting Louisiana's nonprofits.

Terrific Learning and Networking on Earned Income Strategies

The 10th Social Enterprise Summit is scheduled for April 15-17 at the Intercontinental Hotel in New Orleans, LA. The Summit is the largest annual training and networking event of its kind in the U.S., and attendees from across the country will look forward to:

• Five educational tracks including Operations, Finance, Getting Started, Case Studies and Policy
• Forty informative sessions on the nuts and bolts of planning and operating earned income strategies
• Inspirational keynote presentations from the cutting edge of the field
• Opportunities to make valuable new peer connections with other practitioners
• Tours of local social enterprises in New Orleans

You’ll come away from the Summit with practical take-aways and new colleagues for building your own earned income strategies. You can get more information on the Summit and register at www.se-alliance.org/summit.cfm.

The Summit is hosted by the Social Enterprise Alliance, a national membership association consisting of 500 organizations applying entrepreneurial strategies for solving social problems.

Update on the Economic Stimulus Package

The American Recovery and Reinvestment Act, or economic stimulus recovery package, currently rests in the hands of the Senate. On January, 28th, the House passed its $819 billion version and the Senate is still debating their bill, which is expected to be finalized this week.

There is a lot of back and forth going on in the Senate and amendments are being offered to cut back on some of the spending. Therefore the below list of provisions and funding allocations will change once the bill gets voted on by the full Senate and compromises must be made between the Senate and House bills.

In the meantime, to keep you abreast of how this large economic recovery package will impact nonprofits and the clients they serve, here is a brief synopsis of provisions to watch out for:

Senate Amendment: The Senate adopted an amendment authored by Senator Mary Landrieu (D-LA) to make $2.25 billion in Neighborhood Stabilization Program (NSP) dollars in the Economic Recovery Package available to redevelop properties damaged or destroyed by natural disasters.

Compassion Capitol Fund: $100 million (House): 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. Thus far the Senate has not addressed this program.

E-verify Program: The House bill includes 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.

Volunteer Mileage: A possible Senate amendment similar to the text of the Giving Incentives to Volunteers Everywhere (GIVE) Act, which 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).

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.

Medicaid/COBRA: Temporary subsidies for health insurance coverage to provide a 65 percent premium subsidy for individuals who lost their jobs after September to help cover the cost of COBRA premiums.

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.

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

Child Tax Credit: Senate—Increase the eligibility for the refundable child tax credit in 2009 and 2010 by lowering the threshold to $6,000. House—All low-income families’ earnings count towards calculating their tax credit, which essentially means 10 million more children will be eligible.

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

AmeriCorps/Corporation for National and Community Service: $200 million for the Corporation and its programs; $160 million for AmeriCorps; $40 million for the National Service Trust.

Temporary Assistance for Needy Families (TANF): Emergency Contingency Fund—$3 billion to increase the amount available through Fiscal Year 2010; Extension of TANF Supplemental Grants—Supplemental grants provide additional assistance to states with high population growth and/or increased poverty. This extension would provide qualifying states with the same grant amount in FY 2010 as it received in FY 2009.

Unemployment Insurance: $500 million for administrative costs to be shared by all states; provide one third of the allotted funds (based on a formula) to states that allow workers to count more recent wages by adopting the Alternative Base Period, and distribute the remaining two thirds of funding to states that adopt certain reforms.

Emergency Food and Shelter Program: $200 million (House); $100 million (Senate).
Supplemental Nutrition Assistance Program (food stamps): $20 billion (House); $16.5 billion (Senate).

Women, Infants, and Children (WIC) Program: $100 million (House); $500 million (Senate).

Senior meals program: $200 million (House); $100 million (Senate) to go toward funding for formula grants to states for elderly nutrition services including Meals on Wheels and Congregate Meals.

Community Services Block Grant: $1 billion (House).

Neighborhood Stabilization: $3.4 billion (House); $2.25 billion (Senate) to help communities purchase and rehabilitate foreclosed, vacant properties; Nonprofits may compete directly for these funds with state and local governments. ­­­

Ideas that have been proposed, but are not currently included in either bill:


Bridge Loan Proposal: Short-term $15 billion bridge loan program administered by the federal government with loans disbursed to eligible nonprofits through a network of qualified financial assistance providers. This proposal is aimed to address the increasing need of nonprofits to obtain the necessary lines of credit to weather the delays in state government payments for the services they deliver.

Kennedy Center for Performing Arts Offering Support to Arts Organizations

Most nonprofits are feeling the effects of these harsh economic times, and the John F. Kennedy Center for the Performing Arts has announced the creation of a program, Arts in Crisis, to provide nonprofit organizations free counseling in:

• fundraising
• building more effective Boards
• budgeting
• marketing
• technology
• and other areas pertinent to maintaining a vital performing arts organization during a troubled economy.

Organizations can get help online, over the phone and may even have the opportunity to meet with Kennedy Center President Michael Kaiser or members of the center's executive staff. For more information or if your organization is interested participating, visit the Arts in Crisis Web site.

Capital Outlay Interim Emergency Meeting, Feb 10th, 3pm

What happens when situations change and cause the need to change the scope and description of a Capital Outlay project from what was originally indicated in the Capital Outlay Request form and what was described in the Capital Outlay Act? You call you legislator and get on the agenda for a meeting of the Interim Emergency Board.

If you need to make changes to your Capital Outlay appropriation(s) you still have time to ask your Legislators to add your request to the Interim Emergency Board agenda for their February 10th meeting.

In regards to such Capital Outlay projects, the Interim Emergency Board is authorized to make limited adjustments to a project description and scope; and can even change the entity to which an appropriation is made.

The Interim Emergency Board does not meet on a regular schedule and typically meets only three or four times per year, so if you have been thinking about requesting any project changes you might want to submit your requests for this meeting.

What's on the agenda for the February 10th meeting?

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.

Advocacy Alert: Support Disaster Housing Assistance

Last night LANO sent an advocacy alert to its members about supporting extending the Disaster Housing Assistance Program (DHAP) by one year. This alert asked that you contact your Members of Congress today about this important housing program.

On February 28th, the Disaster Housing Assistance Program (DHAP) is scheduled to expire, which could put our most vulnerable citizens in the Gulf Coast at risk of homelessness. This program is vital for many of the clients that nonprofits serve and if it ends in a month it could place a huge strain on these familes and the nonprofit community.

Negotiations are currently happening in Washington, DC about extending this program for a year so it's important that federal legislators hear from you today.

LANO has created an advocacy campaign so that you can quickly and easily email a letter to your Member of Congress explaining the importance of extending DHAP.

Help Nonprofit Projects Become Eligible for the Economic Stimulus Package

As you know, Congress is in the midst of finalizing a gigantic economic stimulus package which will include many infrastructure projects. Unfortunately, very little information has been assembled that could be used to alert policy-makers about the need to make nonprofit projects eligible for these stimulus package infrastructure projects. This is where you come in!

The Listening Post has created a survey to educate Congress about the various “shovel ready” construction projects nonprofits have on hold that could help the nation’s recovery/investment efforts by generating both immediate jobs and long-term facilities that could benefit communities for decades. Please take a moment of your time and fill out a simple survey.

This information is important so that nonprofits are not passed up for many lucrative projects in the stimulus package. Please respond by noon on Monday, February 9, even if you have no such projects. If you have any questions please contact Elisabeth Gehl at elisabeth@lano.org.

Advocate for the Serve for America Act

Recently the Serve for America Act was re-introduced in the Senate. This federal bill works to expand service opportunities nationwide to encourage people of all ages to give their time to help solve our nation’s challenges. This is a bipartisan bill with Democratic and Republican support. Currently, Senator Landrieu (D-LA) is a cosponsor of the bill and LANO encourages Senator Vitter to sign on as well.

In addition to creating a number of service opportunities through a variety of programs, such as the expansion of America Corps, the bill would directly address the increased capacity and success of nonprofits by:

• Establishing a Commission to study and improve how the federal government, nonprofits, and the private sector work together to meet national challenges effectively;
  
• Applying Effective Business Strategies to the Nonprofit Sector by establishing a network of “Community Solution Funds” that are basically venture capital funds to help the nonprofit sector seek talent and put it to work.

More information about the Serve For America Act

Encourage Senator Vitter to support and co-sponsor the Serve for America Act by emailing a letter to him today.

FEMA & HUD Deny Extension for Disaster Housing Program

On February 28th, the Disaster Housing Assistance Program (DHAP) is scheduled to expire, putting many of our most vulnerable citizens in the Gulf Coast at risk of homelessness. DHAP is a program administered by the U.S. Department of Housing and Urban Development (HUD) that provides long-term rental assistance for eligible families displaced by Hurricanes Katrina and Rita. DHAP has been crucial for many families following the 2005 storms and their only option since few affordable housing units have been rebuilt.

Over the past several months, the Louisiana Recovery Authority (LRA) has urged HUD and FEMA to extend the DHAP program in order to allow sufficient time to transition households into voucher programs and off of the subsidy. On January 16th, HUD and FEMA notified the LRA that the request for a one year extension has been denied.

According to the most recent data from HUD, 16,802 households in Louisiana currently receive DHAP assistance. Of those:

• Approximately 7,000 may be eligible for Housing Choice Vouchers, which will provide critical support for the elderly and disabled;
• Only 3,000 are estimated to be at a “low risk” for homelessness, according to HUD’s own data;
• This means that approximately 7,000 families who rely on DHAP will have remaining housing needs and will not be served after February 28.

According to the LRA, the state of Louisiana needs a one year extension of DHAP so that HUD can transition families eligible for housing vouchers off of DHAP; the state can work with the federal government to assess the needs of the remaining households; and a plan can be developed to support those families with outstanding needs who otherwise would fall through the cracks. Finally, the state needs more time to bring more rental properties online in order to create more affordable housing options and create a more stable rental market.

Affordable housing is a critical issue for the clients that nonprofits serve, especially those in the Gulf Coast, and one that LANO has advocated for since the 2005 storms. In the coming weeks as the deadline fast approaches, LANO will be involved with any federal advocacy around the one year extension of DHAP and will continue to update its members about pertinent developments.

Spread the Word: Earned Income Tax Credit (EITC) Worth Thousands in Refunds

The federal Earned Income Tax Credit (EITC) is a tax benefit for low- to moderate-income working families, as well as some workers without children. Claiming EITC on your tax return is easy, and can be worth up to several thousand dollars.

It is a time to inform low-income working families and individuals about this valuable tax break and to let them know what they need to do to claim it. Please click here to use our tell-a-friend page to help spread the word about EITC.

Who is Eligible?
Single or married people who worked full-time or part-time at some point during the year can qualify for the EITC, depending on their income. Qualifying persons who file a federal income tax return can receive a refund even if no taxes were taken out of their pay during the year. All filers who are eligible to claim the federal EITC are automatically eligible for the state EITC. Louisiana's first state EIC takes effect in tax year 2008, and can be claimed on state income tax returns this spring. The state credit is equal to 3.5% of the federal credit.

Free Tax Assistance
Volunteer Income Tax Assistance (VITA) sites throughout Louisiana provide FREE tax help to low-and moderate-income taxpayers to determine eligibility and to file the claim for the credit. There are over 170 free income tax assistance services located throughout the state. To find the site nearest you, call the Louisiana Department of Social Services toll free number, 1-888-LA-HELP-U (1-888-524-3578), between now and April 15, 2009. This information can also be obtained by calling 2-1-1.

For more information on EITC download the Department of Social Services brochure.

Spread the Word
The Louisiana Budget Project has launched a tell-a-friend website to make it easy for you to spread the word about this valuable tax break. Please visit the tell-a-friend page to send information about EITC and free tax assistance with your friends, co-workers, family members and clients.