LANO and the Louisiana Budget Project (LBP) believe we need a balanced, transparent approach to solving Louisiana’s fiscal crisis rather than relying solely on cuts to services needed by working families. An approach based only on cutting education, human services, healthcare, and other vital services risks serious, long-term damage to the state and its people.
A cuts-only approach fails our families, harms our economy, and threatens our future. We’re for a balanced approach to solving this crisis. That’s why LANO and LBP have joined Better Choices for a Better Louisiana (BCBL), a broad based, growing group of organizations who care about our state.
If you believe we need a balanced, transparent approach to solving Louisiana’s fiscal crisis, join Better Choices for a Better Louisiana by filling out the membership form (link below) and advocate for responsible revenue measures, spending measures, and common sense savings for our state.
BCBL Membership Form
BCBL Guiding Principles
Louisiana Budget Project Reports and Resources
Contact Ashley Herad at Ashley@lano.org or (225) 929-5266 ext. 222 for more information and to join today!
*Eddie Ashworth, Director of the Louisiana Budget Project, would be happy to present further information to your Board or leadership about BCBL and why this movement is critical at this time in our state.
News and commentary from Louisiana's nonprofit sector
Thursday, October 28, 2010
Wednesday, October 27, 2010
Reminder: Capital Outlay and HB1 Requests Due Monday, November 1!
Capital Outlay
The November 1 deadline for submitting Capital Outlay Requests for next year’s budget is Monday.
If your nonprofit organization is interested in submitting a request, you must submit it now.
The application can be accessed and submitted on the eCourts website. Nonprofits submitting Capital Outlay Requests are required also to submit a NGO Supplemental Information/Disclosure form by accessing the NGO database on the legislative website.
HB 1: The State Budget
If your organization plans to ask a State Legislator for an appropriation in HB 1 (General Appropriations Bill) in the 2011 Legislative Session, you are also required to submit a NGO Supplemental Information/Disclosure form by accessing the NGO database on the legislative website.
LANO recommends submission of this form by November 1.
After this date, submissions will undergo a more procedurally complex review process by the Joint Legislative Committee on the Budget. This applies not only to appropriations included in the “State Aid to Local Government” section of HB 1 but also to line item appropriations that might appear in various State Department sections of the Bill.
If you have any questions, please contact Alison Neustrom at alisonneustrom@lano.org.
The November 1 deadline for submitting Capital Outlay Requests for next year’s budget is Monday.
If your nonprofit organization is interested in submitting a request, you must submit it now.
The application can be accessed and submitted on the eCourts website. Nonprofits submitting Capital Outlay Requests are required also to submit a NGO Supplemental Information/Disclosure form by accessing the NGO database on the legislative website.
HB 1: The State Budget
If your organization plans to ask a State Legislator for an appropriation in HB 1 (General Appropriations Bill) in the 2011 Legislative Session, you are also required to submit a NGO Supplemental Information/Disclosure form by accessing the NGO database on the legislative website.
LANO recommends submission of this form by November 1.
After this date, submissions will undergo a more procedurally complex review process by the Joint Legislative Committee on the Budget. This applies not only to appropriations included in the “State Aid to Local Government” section of HB 1 but also to line item appropriations that might appear in various State Department sections of the Bill.
If you have any questions, please contact Alison Neustrom at alisonneustrom@lano.org.
Tuesday, October 19, 2010
Early Voting Starts Today!
Early voting for the November 2nd mid-term elections starts today and lasts until October 26th (excluding Sunday, October 24th). Early voting polls will be open from 8:30am to 6:00pm.
Anyone can vote early in person. Unlike absentee voting by mail, no reason is required to vote early in person. You just need to show up at your Registrar of Voters office or designated location with a current state or government issued photo ID and cast your ballot.
Voters who have no picture ID may bring a utility bill, payroll check or government document that includes their name and address, but they will have to sign an affidavit furnished by the Elections Division in order to vote.
- Find your early voting polling place
- Find out how to absentee vote by mail
- Find out what's on your ballot
- Get summaries of constitutional amendments on the ballot
LANO encourages all nonprofits to integrate voter engagement into their everyday activities. Remind your staff, Board, and clients to vote early or on election day!
Free Vote November 2nd posters are available at LANO offices in New Orleans, Baton Rouge, and Shreveport. Call Ashley Herad at (225) 929-5266 ext. 222, or email ashley@lano.org, to make arrangements to pick one up! Hang the poster in your lobby or other high traffic area, and encourage your community to make their voices heard on November 2nd!
Friday, October 15, 2010
Combined Reporting Can Improve State Business Climate and Help Balance the Budget
Without a change in policy, local companies and families will continue to pay higher taxes or be forced to accept poorer roads, schools, and social services. Other states have managed to level the playing field for state businesses and trim budget deficits by closing this loophole in recent years.
A new report by the independent Louisiana Budget Project shows that Louisiana could collect as much as $61 million in lost revenue in the current fiscal year by adopting a system known as “combined reporting,” a policy change that prevents border-crossing industries from evading state taxes.
“Without combined reporting, some of the richest international companies dodge millions in taxes that home-grown businesses have to pay,” said LBP Director Edward Ashworth. “With one arm these giants hold Louisiana companies at bay, and with the other they keep vital services out of reach of state citizens.”
Corporations like Walmart and Toys-R-Us currently avoid state taxes that local companies must pay by shifting profits and tax liability to subsidiaries in states with low or no corporate income tax. The report from LBP details common schemes, including corporations’ use of real estate investment trusts that, in effect, allow them to pay rent to themselves in another state to reduce taxable profits in Louisiana.
“With our state agencies now being asked to plan for additional 35% budget cuts,” said Ashworth, “it seems criminal to let millions in much-needed state revenue just fly across our borders into others’ pockets.”
As a remedy suggested by the Louisiana Budget Project, combined reporting would add all the reported profits of a multi-state corporation and calculate the percentage owed to Louisiana using an objective formula based on economic activity it conducts within the state.
So far, twenty-three states, including Texas, have adopted combined reporting to recover taxes owed by large multi-national firms.
The Louisiana Budget Project provides independent research and analysis of Louisiana fiscal issues and their impact on low and moderate income residents. For a copy of the full report and more information on LBP visit http://www.labudget.org/. Full report: http://www.labudget.org/lbp/wp-content/uploads/2010/10/Combined-Reporting-RELEASE-FINAL.pdf
IRS 990 Filing Deadline Today
Information posted by the National Center for Charitable Statistics (Urban Institute):
For other related questions to IRS: call 1-877-829-5500 (toll free)
Filing Requirements
Updating its May 17th statement, the IRS will be giving small organizations that haven't filed for three years until October 15, 2010 to complete their Form 990-N or 990-EZ returns. (Click here for the full statement.)
Find out if Organizations in Your Area Still Need to File. Most tax-exempt organizations, other than churches, must file a yearly return or notice with the IRS. If an organization does not file as required for three consecutive years, the organization automatically loses its tax-exempt status. Loss of exempt status means an organization must file income tax returns and pay income tax, and its contributors will not be able to deduct their donations. Click HERE to download the latest official IRS list of organizations in your state that are in danger of losing their exempt status.
For nonprofits that are not yet in compliance, please let the officers of the organizations know that they need to act quickly or their tax-exempt status may be revoked. For additional information on this new requirement, please visit the IRS website.
Missed the Deadline? Nonprofit organizations can complete their Form 990 online at the following sites:
Form 990-N (e-Postcard): http://epostcard.form990.org/
(Gross receipts must be under $25,000.)
Form 990/Form 990-EZ: http://efile.form990.org/
Learn more about the implications for the nonprofit sector. NCCS released a brief, Here Today, Gone Tomorrow: A Look at Organizations That May Have Their Tax-Exempt Status Revoked on July 8 (prior to the IRS announcement giving organizations more time).
For other related questions to IRS: call 1-877-829-5500 (toll free)
Wednesday, October 13, 2010
Nonprofits encouraged to complete the Nonprofit Needs Assessment Follow-up
LANO is encouraging all Louisiana nonprofits in areas impacted by the oil spill and drilling moratorium, to complete the Needs Assessment Follow-up. The first survey was completed in June and the results were utilized in many areas, including Congressional testimony, the America's Gulf Coast report by Secretary Mabus, and others. Given the evolving nature of this disaster, it is important to re-evaluate the ongoing impact on citizens, nonprofits and communities. Please invite other nonprofits in impacted communities to complete this survey.
Thursday, October 7, 2010
CRITICAL DEADLINE NEARS FOR NONPROFIT TAX FILING
LANO strongly urges its members and all Louisiana nonprofit organizations to confirm their tax filing status immediately if they have not done so.
On October 15, Louisiana nonprofits that have not filed tax returns for consecutive years 2007-2009 will automatically lose their tax-exempt status, according to the IRS.
This penalty stems from the Pension Protection Act of 2006, which mandates that most tax-exempt organizations file an annual return with the IRS, and that any that fail to file for three consecutive years will lose federal tax-exempt status. The first filings under this law were due in 2008 for tax years ending on or after December 31, 2007.
The Service highlighted this requirement in March of 2009, setting a May 15, 2010 deadline that was later extended to October 15. No further extension is expected.
WHAT IS AT RISK?
According to the Louisiana Department of Revenue, the loss of nonprofit status could greatly affect an organization’s charitable work and its donors' potential tax deductions. If an organization loses its exemption, it will have to reapply for tax-exempt status, a process that may take several months and include a filing fee. Also, any income received between the revocation date and renewed exemption may be taxable; however, the IRS notes that donors who contribute to "at-risk" organizations are protected until the final revocation list is published by the IRS.
WHICH LOUISIANA ORGANIZATIONS HAVE NOT YET FILED?
The IRS lists over 5,100 Louisiana organizations as "at-risk" or noncompliant with filing requirements as of October 6, 2010, less than two weeks before the deadline. A full list is available at the IRS website in both PDF and Excel spreadsheet formats. (Click hypertext to download files)
Note that certain organizations are exempt from filing with the IRS, including many faith-based and government-sponsored nonprofits. This may lead to confusion. Click here for full list of excepted organizations.
If you feel your name appears on the at-risk list erroneously, call 1-877-829-5500 (toll-free) to verify that you do not have a filing requirement.
Or, if you believe you already submitted a Form 990-N (e-Postcard), verify that the employer identification number (EIN) used to submit the Form 990-N is correct. Many organizations mistakenly use the EIN of a parent or central organization, bank, or credit union when filing. If you filed using an incorrect EIN, submit a Form 990-N with the correct EIN no later than October 15, 2010.
If you are a subordinate organization whose parent or central organization attempted to submit a Form 990-N on behalf of a group of organizations, submit a Form 990-N for your own organization no later than October 15, 2010. A group return can only be filed on a Form 990; each subordinate organization that is not included in a group return must submit or file its own notice or return.
WHO SHOULD FILE, AND HOW?
According to the IRS, the smallest organizations—those under $25,000 in annual receipts and eligible to file Form 990-N (e-Postcard)—can maintain their tax-exempt status by filing the required annual electronic notice by October 15, 2010. The e-Postcard asks for a few basic pieces of information and is filed electronically. Click here to file the Form 990N.
Organizations may instead file a paper Form 990-EZ or Form 990 in lieu of the Form 990-N as long as the return is complete and filed by October 15. Write “Filed in lieu of Form 990-N” on top of the return and envelope (postmarked no later than October 15, 2010) and mail it to: Internal Revenue Service, M/S 1114, P.O. Box 12610, Ogden, UT 84412.
The IRS offers these guidelines for determining how organizations file:
• Gross receipts normally ≤ $25,000: File 990-N or “e-Postcard”
• Gross receipts < $ 500,000 and total assets < $1.25 million: File 990-EZ or 990
• Gross receipts ≥ $500,000, or total assets ≥ $1.25 million: File form 990
• Private foundation (regardless of financial activity): File 990-PF
FOR ADDITIONAL HELP
Contact the Louisiana Department of Revenue at 225.219.4059
or the Internal Revenue Service at 877.829.5500 (toll-free)
See also: http://www.irs.gov/charities/article/0,,id=225702,00.html
On October 15, Louisiana nonprofits that have not filed tax returns for consecutive years 2007-2009 will automatically lose their tax-exempt status, according to the IRS.
This penalty stems from the Pension Protection Act of 2006, which mandates that most tax-exempt organizations file an annual return with the IRS, and that any that fail to file for three consecutive years will lose federal tax-exempt status. The first filings under this law were due in 2008 for tax years ending on or after December 31, 2007.
The Service highlighted this requirement in March of 2009, setting a May 15, 2010 deadline that was later extended to October 15. No further extension is expected.
WHAT IS AT RISK?
According to the Louisiana Department of Revenue, the loss of nonprofit status could greatly affect an organization’s charitable work and its donors' potential tax deductions. If an organization loses its exemption, it will have to reapply for tax-exempt status, a process that may take several months and include a filing fee. Also, any income received between the revocation date and renewed exemption may be taxable; however, the IRS notes that donors who contribute to "at-risk" organizations are protected until the final revocation list is published by the IRS.
WHICH LOUISIANA ORGANIZATIONS HAVE NOT YET FILED?
The IRS lists over 5,100 Louisiana organizations as "at-risk" or noncompliant with filing requirements as of October 6, 2010, less than two weeks before the deadline. A full list is available at the IRS website in both PDF and Excel spreadsheet formats. (Click hypertext to download files)
Note that certain organizations are exempt from filing with the IRS, including many faith-based and government-sponsored nonprofits. This may lead to confusion. Click here for full list of excepted organizations.
If you feel your name appears on the at-risk list erroneously, call 1-877-829-5500 (toll-free) to verify that you do not have a filing requirement.
Or, if you believe you already submitted a Form 990-N (e-Postcard), verify that the employer identification number (EIN) used to submit the Form 990-N is correct. Many organizations mistakenly use the EIN of a parent or central organization, bank, or credit union when filing. If you filed using an incorrect EIN, submit a Form 990-N with the correct EIN no later than October 15, 2010.
If you are a subordinate organization whose parent or central organization attempted to submit a Form 990-N on behalf of a group of organizations, submit a Form 990-N for your own organization no later than October 15, 2010. A group return can only be filed on a Form 990; each subordinate organization that is not included in a group return must submit or file its own notice or return.
WHO SHOULD FILE, AND HOW?
According to the IRS, the smallest organizations—those under $25,000 in annual receipts and eligible to file Form 990-N (e-Postcard)—can maintain their tax-exempt status by filing the required annual electronic notice by October 15, 2010. The e-Postcard asks for a few basic pieces of information and is filed electronically. Click here to file the Form 990N.
Organizations may instead file a paper Form 990-EZ or Form 990 in lieu of the Form 990-N as long as the return is complete and filed by October 15. Write “Filed in lieu of Form 990-N” on top of the return and envelope (postmarked no later than October 15, 2010) and mail it to: Internal Revenue Service, M/S 1114, P.O. Box 12610, Ogden, UT 84412.
The IRS offers these guidelines for determining how organizations file:
• Gross receipts normally ≤ $25,000: File 990-N or “e-Postcard”
• Gross receipts < $ 500,000 and total assets < $1.25 million: File 990-EZ or 990
• Gross receipts ≥ $500,000, or total assets ≥ $1.25 million: File form 990
• Private foundation (regardless of financial activity): File 990-PF
FOR ADDITIONAL HELP
Contact the Louisiana Department of Revenue at 225.219.4059
or the Internal Revenue Service at 877.829.5500 (toll-free)
See also: http://www.irs.gov/charities/article/0,,id=225702,00.html
LANO RESPONDS TO NATIONAL COUNCIL OF NONPROFITS SURVEY, RECOGNIZES OPPORTUNITIES TO IMPROVE CONTRACTING RELATIONSHIP WITH GOVERNMENT
Louisiana nonprofits participated in a national survey on government contracting that identified problems including late payments, incomplete coverage of costs and unexpected changes to ongoing contracts. LANO seeks to establish a Nonprofit Contract Task Force, in conjunction with state government, to identify and implement solutions.
The National Council on Nonprofits, along with the Urban Institute, conducted an unprecedented survey of more than 19,000 nonprofit human service organizations nationwide to determine the scope and effectiveness of government contracting.
The report, released today, shows state-by-state results that indicate key areas of concern for Louisiana nonprofits. For example, 70% of responding organizations reported problems with government changes to contracts in progress; 72% of respondents said contracts do not cover the full cost of services; and 39% of responding nonprofits reported late payments.
“Challenges and delays in contracting impact everyone,” said LANO President and CEO Ann S. Williamson. “Citizens are affected by gaps in service as nonprofits await reimbursement. Charitable foundations must weigh providing bridge loans against other community needs. We expect that governments also seek greater efficiency in contracting in light of declining resources.”
Government contracting with nonprofits is essential to the successful delivery of key human services to Louisiana citizens, accounting for more than $2.2 billion in state funding in 2009. According to research released by LANO in June, 13% of all state contracts (N=2,786) went to nonprofit organizations last year. Direct human services, including immunizations, care for the developmentally disabled, combating child abuse and preventing teen pregnancy, comprise the majority of vital programs delivered by nonprofits through state funding.
The survey by the National Council of Nonprofits and Urban Institute focused on human service organizations, with 59% of respondents in that category. Crime and legal services, and community and economic development were also prominently represented. While Louisiana nonprofits reported significant problems in key areas of the contracts process, fully three-quarters of state respondents deemed the situation “about the same” or “better” than in previous years.
“Obstacles and opportunities exist on both sides of the nonprofit and government contracting partnership,” said LANO Vice President of Public Policy, Dr. Alison Neustrom. “LANO has asked the Division of Administration to join with the nonprofit sector to create a Nonprofit Contract Task Force to identify bottlenecks, best practices, and see how policies, practices, and laws in other states currently advance this effort.”
In a letter delivered last week to Division of Administration Commissioner Paul Rainwater, LANO proposed a task force including officials from state departments that primarily contract with nonprofits, nonprofit sector representatives, community foundation leaders and other key stakeholders. According to LANO, “an efficient, reliable contracting process is essential to the people of Louisiana and a shared goal of both government and the nonprofit community.”
In conjunction with the release of the Urban Institute's survey results, the National Council of Nonprofits issued a Special Report that provides additional context to the Urban Institute findings, including identifying specific practices that contribute to the problems nonprofit human services providers have experienced. For copies of this and related reports, visit http://www.lano.org/.
Established in 1997, LANO is an association of more than 800 nonprofits, foundations, corporations and caring individuals dedicated to supporting Louisiana’s nonprofit sector and the people it serves. For more information, contact Matt Mullenix, Vice President of Public Relations, 225.929.5266 or matthewmullenix@lano.org.
The National Council on Nonprofits, along with the Urban Institute, conducted an unprecedented survey of more than 19,000 nonprofit human service organizations nationwide to determine the scope and effectiveness of government contracting.
The report, released today, shows state-by-state results that indicate key areas of concern for Louisiana nonprofits. For example, 70% of responding organizations reported problems with government changes to contracts in progress; 72% of respondents said contracts do not cover the full cost of services; and 39% of responding nonprofits reported late payments.
“Challenges and delays in contracting impact everyone,” said LANO President and CEO Ann S. Williamson. “Citizens are affected by gaps in service as nonprofits await reimbursement. Charitable foundations must weigh providing bridge loans against other community needs. We expect that governments also seek greater efficiency in contracting in light of declining resources.”
Government contracting with nonprofits is essential to the successful delivery of key human services to Louisiana citizens, accounting for more than $2.2 billion in state funding in 2009. According to research released by LANO in June, 13% of all state contracts (N=2,786) went to nonprofit organizations last year. Direct human services, including immunizations, care for the developmentally disabled, combating child abuse and preventing teen pregnancy, comprise the majority of vital programs delivered by nonprofits through state funding.
The survey by the National Council of Nonprofits and Urban Institute focused on human service organizations, with 59% of respondents in that category. Crime and legal services, and community and economic development were also prominently represented. While Louisiana nonprofits reported significant problems in key areas of the contracts process, fully three-quarters of state respondents deemed the situation “about the same” or “better” than in previous years.
“Obstacles and opportunities exist on both sides of the nonprofit and government contracting partnership,” said LANO Vice President of Public Policy, Dr. Alison Neustrom. “LANO has asked the Division of Administration to join with the nonprofit sector to create a Nonprofit Contract Task Force to identify bottlenecks, best practices, and see how policies, practices, and laws in other states currently advance this effort.”
In a letter delivered last week to Division of Administration Commissioner Paul Rainwater, LANO proposed a task force including officials from state departments that primarily contract with nonprofits, nonprofit sector representatives, community foundation leaders and other key stakeholders. According to LANO, “an efficient, reliable contracting process is essential to the people of Louisiana and a shared goal of both government and the nonprofit community.”
In conjunction with the release of the Urban Institute's survey results, the National Council of Nonprofits issued a Special Report that provides additional context to the Urban Institute findings, including identifying specific practices that contribute to the problems nonprofit human services providers have experienced. For copies of this and related reports, visit http://www.lano.org/.
Established in 1997, LANO is an association of more than 800 nonprofits, foundations, corporations and caring individuals dedicated to supporting Louisiana’s nonprofit sector and the people it serves. For more information, contact Matt Mullenix, Vice President of Public Relations, 225.929.5266 or matthewmullenix@lano.org.
Monday, October 4, 2010
Capital Outlay and HB 1 Request Deadlines Approaching
Capital Outlay
The November 1 deadline for submitting Capital Outlay Requests for next year’s budget is fast approaching. If your nonprofit organization is interested in submitting a request, be working on it now. The application can be accessed and submitted on the eCourts website.
Nonprofits submitting Capital Outlay Requests are required also to submit a NGO Supplemental Information/Disclosure form by accessing the NGO database on the legislative website.
HB 1: The State Budget
If your organization plans to ask a State Legislator for an appropriation in HB 1 (General Appropriations Bill) in the 2011 Legislative Session, you are also required to submit a NGO Supplemental Information/Disclosure form by accessing the NGO database on the legislative website.
LANO recommends submission of this form by November 1. After this date, submissions will undergo a more procedurally complex review process by the Joint Legislative Committee on the Budget.
This applies not only to appropriations included in the “State Aid to Local Government” section of HB 1 but also to line item appropriations that might appear in various State Department sections of the Bill.
If you have any questions, please contact Alison Neustrom at alisonneustrom@lano.org.
The November 1 deadline for submitting Capital Outlay Requests for next year’s budget is fast approaching. If your nonprofit organization is interested in submitting a request, be working on it now. The application can be accessed and submitted on the eCourts website.
Nonprofits submitting Capital Outlay Requests are required also to submit a NGO Supplemental Information/Disclosure form by accessing the NGO database on the legislative website.
HB 1: The State Budget
If your organization plans to ask a State Legislator for an appropriation in HB 1 (General Appropriations Bill) in the 2011 Legislative Session, you are also required to submit a NGO Supplemental Information/Disclosure form by accessing the NGO database on the legislative website.
LANO recommends submission of this form by November 1. After this date, submissions will undergo a more procedurally complex review process by the Joint Legislative Committee on the Budget.
This applies not only to appropriations included in the “State Aid to Local Government” section of HB 1 but also to line item appropriations that might appear in various State Department sections of the Bill.
If you have any questions, please contact Alison Neustrom at alisonneustrom@lano.org.
Friday, October 1, 2010
PitchNOLA 2010: Innovative Ideas for Change
Social Entrepreneurs of New Orleans (SENO) is hosting "PitchNOLA," an "elevator pitch" competition open to social entrepreneurs with ideas for ventures that will effect positive change in New Orleans. The event, which is in its 2nd year, is OPEN TO ALL community members in the Greater New Orleans area.
With two rounds of competition, one winning idea will be chosen, and the winner will take home $5,000 to spend on the development of their venture. The competition provides all participants with an excellent opportunity to pitch their innovations to a panel of “celebrity judges” and a live audience (200+) of accomplished business professionals, social entrepreneurs, and activists.
Entrants need to electronically submit a 500-word proposal to SENO by October 15, 2010, 11:59pm, and be prepared to pitch their ideas to a live audience and a panel of local "celebrity judges."
Read the submission guildelines and learn more about PitchNOLA...
With two rounds of competition, one winning idea will be chosen, and the winner will take home $5,000 to spend on the development of their venture. The competition provides all participants with an excellent opportunity to pitch their innovations to a panel of “celebrity judges” and a live audience (200+) of accomplished business professionals, social entrepreneurs, and activists.
Entrants need to electronically submit a 500-word proposal to SENO by October 15, 2010, 11:59pm, and be prepared to pitch their ideas to a live audience and a panel of local "celebrity judges."
Read the submission guildelines and learn more about PitchNOLA...
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