Helping Nonprofits That Help Others

The National Council of Nonprofits has called on the new Obama administration to adopt a plan to help the nonprofit community which does so much to help those folks in the community who have fallen on hard times—whether through their own fault or circumstances beyond their control—and it is a pretty good plan.

Here is an excerpt from the press release.

“Washington, DC (Dec. 22, 2008)-Working in close collaboration with its state association members across the country, the National Council of Nonprofits has submitted its recommendations to President-Elect Obama's Transition Team, which had requested the organization's insights 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 National Council says, "then many needy people will have no place to turn." Moreover, that will significantly increase the number of jobs lost across the country.

“The National Council of Nonprofits' recommendations include the following:

• Creating within the first 100 days the Social Entrepreneurship Agency for Nonprofits called for in the Obama Plan so it can help strengthen nonprofits-especially community-based organizations, 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 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. “