Philanthropy Front and Center - Washington, DC

Learn About Funders Focused on Climate Change

How great would it be to bring together all the bloggers in the world to focus attention on just one important topic for a day? That is the mission of Blog Action Day, and today is that day! For 2009 the focus is on climate change, and at last count, over 8,000 bloggers in 148 countries planned to participate.

To play our part in this global effort, we are offering information resources for nonprofits working on climate change and other environmental causes.

A good place to start is the Foundation Center's web portal, Focus on Climate Change. Our research staff discovered that foundation giving for climate change has increased nearly 5-fold domestically since 1997 and nearly 8-fold internationally. Using our portal, you will find information on some of the top US foundations interested in supporting programs addressing climate change and other environmental issues. You'll also find maps showing where environmental grants have been given and links to related reports, like Taking Action on Climate Change from the William and Flora Hewlett Foundation. 

To find additional reports, you can visit PubHub, our database of foundation-sponsored reports. Browse under the subject area "Environment," or search on keywords like "climate change" or "global warming."

Looking for funding opportunities you can apply for right now? Check out our online list of Requests for Proposals! Here you will find current RFPs for US-based foundations that have set aside funds to address specific issues. You can browse the RFPs by category, including Environment. Be sure to read over the application guidelines carefully.

Since not all foundations put out RFPs, you can research other funders interested in environmental causes using Foundation Directory Online, our database with information on US grantmaking organizations.  A quick search on "environment" brought up a listing of over 5,500 foundations with an interest in this field! You can get Foundation Directory Online by subscription, or you can use it for free at our library in DC or at our local partner libraries.

The Foundation Center is here to help nonprofits realize their vision for a better world, so we hope you will take advantage of the resources we offer!

Nonprofits and the Chains That Bind Them

More than 300 people recently attended an event hosted by the Foundation Center-Atlanta to hear author Dan Pallotta talk about his book - Uncharitable – which has provoked debate in the nonprofit sector for asserting that entrenched cultural beliefs about charities are crippling nonprofits' ability and potential to respond to the scale of social ills they confront. (Tactical Philanthropy has a good example of this debate.)

Pallotta's book stems from his experiences as the founder of the now defunct Pallotta TeamWorks, a for-profit company that organized large-scale, multi-day walks and bike rides, raising $305 million over nine years for causes like AIDS and breast cancer.

Pallotta argues that nonprofits will never achieve the scale of capacity they need to create real change because public perceptions deprive nonprofits from enjoying freedoms afforded corporations, especially in regards to:

• Executive compensation: Low salaries turn away good talent and leadership, yet high salaries draw suspicion
• Marketing: Nonprofit advertising is OK only if it's donated
• Risk-taking to generate revenue: Nonprofits are afraid to take risks because of the criticism that will ensue if they fail
• Investment in long-term revenue growth: Everything is measured in 1-year increments, which doesn't fit all nonprofits
• Profit as incentive to raise growth capital: Profit-making ventures draw suspicion

Less controversial but no less provocative was his argument that nonprofits are especially harmed by the overhead-program ratio -- "What percentage of my donation goes to the cause?" -- what Pallotta calls the "most sinister question" perpetuated by charity watchdogs and the media. Sinister because it:

• Makes the public think overhead is not part of "the cause"
• Forces nonprofits to forgo what they need to increase capacity to solve problems, like a powerful (but expensive) new leader or a major ad campaign to increase long-term giving
• Gives donors bad information since it says nothing about program quality (Did it make a difference?) and is subject to aggressive accounting methods

(See Pallotta's blog postings for HarvardBusiness.org to read his key arguments, many of which he echoed in Friday's presentation.)

A panel discussion followed Pallotta's presentation.  Participants included the author, plus:

• Joe Bankoff, president and CEO, Woodruff Arts Center
• Bill Bolling, founder and executive director, Atlanta Community Food Bank
• Martin Lehfeldt, author and former president, Southeastern Council of Foundations
• Milton J. Little, Jr., president and CEO, United Way of Metropolitan Atlanta
• Carol Naughton, vice president for communities, New Community Ventures, LLC
• Dennis Young, Professor of Public Administration and Urban Studies and director of the Nonprofit Studies Program at Georgia State University

Some recurring themes and questions were:

• Nonprofits need to do better at educating donors and the public about their accomplishments and return on investment, but how?
• Nonprofit workers are drawn to the sector for altruistic motivations, but how to balance that with personal economic interest?
• What is the 10-second answer to the persisting question of overhead-program ratio?
• How can the nonprofit sector adopt and/or hybridize some corporate methods, like social purpose investing?
• The whole nonprofit sector could use a re-branding campaign to improve its image (Pallotta's suggestion: "social transformation sector")

A video of the event will be posted at our Events Archive within a few weeks so that you can see and hear the full discussion as well as the audience Q&A session afterwards. 

Do you agree with Pallotta? What can nonprofits do, if anything, to change public perception of the sector?

(This post is from Sandy Pon, Virtual Library/Learning Center Specialist.)

Space still available for Workplace Giving Program - 4/30 @ 3:00pm

On Wednesday, April 29, 2009, The Washington Post ran an article about workplace giving and how area nonprofits are withdrawing from United Way.  We are hosting a program on the topic of workplace giving on Thursday, April 30, 2009 and one of our panelists will be Don Sodo, CEO of America's Charities who is quoted in the article.  Also speaking is Steven Sanderson of the United Way of the National Capital Region. There is still time to register for what no doubt will be a lively discussion.  The program is free. Register here.

 

From The Answer Desk: What Do Nonprofits Need to Know about the American Recovery and Reinvestment Act (Stimulus Bill)?

A: The American Recovery and Reinvestment Act (ARRA), signed into law by President Obama on February 17, 2009, will provide more than $787 billion in spending and tax cuts intended to help stimulate the national economy.

The Foundation Center has collected the best resources on how nonprofits may be able to access stimulus package funding and our new MapShot: Best ARRA Funding Resources by State connects you to information about funding and other current opportunities in each state.

The Act includes new or expanded government grant programs to provide funding for assistance to communities or individuals affected by the economic crisis. Nonprofit organizations interested in applying for grants provided by this Act should visit the Grants.gov website for a listing of Recovery Act funding opportunities. For-profit organizations can find recovery procurement and contracting opportunities at FedBizOpps.gov.

In order to provide full accountability and transparency for the distribution of stimulus funds, the Federal government has created the Recovery.gov website. Visitors to the site can read the full text of the Act, view a timeline of administrative deadlines, and find news and updates on funding opportunities from Federal agencies.

Most state governments and Federal agencies have also created their own economic recovery sites. Directories of these official sites can be found at Recovery.gov:

• State Recovery Sites 
• Agency Recovery Sites

The National Council of Nonprofits has issued a series of special reports on the economic stimulus and recovery, including:

• Nonprofit Grant Opportunities - Summarizes the major spending and tax cut provisions of the Act and identifies potential grant opportunities for nonprofits.
• Stimulus Grant Tips and Thoughts - Offers grant information, tips, and considerations for nonprofits interested in applying for stimulus funds.
• Whether and How States are Accepting & Distributing Federal Stimulus Funds - Reviews how state governments have indicated they will handle the Federal funds.
• Sources of Information Regarding Stimulus Funds - Identifies sources of information about the Act and stimulus funds.

The National Council of Nonprofits also encourages organizations to contact their state nonprofit associations or their state and Congressional representatives for more information on local stimulus funding.

Selected resources below may also be helpful.

Independent Sector - Economic Recovery Act and Nonprofits - Provides this analysis and commentary on the Act at its site, along with tips for nonprofit organizations on establishing strong ties with policymakers.

American Recovery and Reinvestment Act of 2009: State-By-State Estimates of Key Provisions Affecting Low- and Moderate-Income Individuals - This report, issued by the Center on Budget and Policy Priorities, outlines key provisions of the Act affecting low- and moderate-income individuals and includes a state-by-state analysis of these funding provisions.

StateRecovery.org - A service of the Council on State Governments, StateRecovery.org is targeted towards officials in state government, but contains useful information on federal assistance, listings of grant opportunities, and a series of reports analyzing the prospective impact of stimulus funding at the state level.

National Conference of State Legislatures - Economic Stimulus 2009 - Provides summaries and analysis of major provisions of the Act for state legislators, but also includes information that can useful to the general public.

National Governors Association - American Recovery and Reinvestment Act - Created to provide information on state implementation of ARRA, analysis of the Act’s provisions for a range of topics, and links to additional resources.

Have a question? Ask Us!

(This post is from Stephen Sherman, Reference Librarian, Foundation Center-Atlanta)

Looking for Help with Your Form 990 This Year?

The deadline for individual tax returns has come and gone, so now is a good time to focus on annual filings for nonprofits. Last year, the IRS unveiled the revised Form 990, which includes new filing requirements for smaller organizations (see this article from GuideStar), expanded reporting requirements for topics such as governance, compensation, and joint ventures, and categorized reporting of fundraising activities and revenue. Listed below are some resources that will help you adapt to the new Form 990 and complete your annual filing this year.

Our FAQ on the redesigned Form 990 provides an overview of the major changes to the form, as well as links to related resources from the IRS and other organizations.

Full coverage of the redesigned Form 990, including filing instructions and frequently asked questions, can be found at the IRS web site. 

Looking for training on how to complete the new Form 990? The IRS offers a series of web-based mini-courses covering the redesigned Form 990 and its various schedules. There are additional online courses on applying for tax-exempt status, employment issues, charitable tax deductions, unrelated business income, and more. The IRS also conducts a number of in-person Workshops for Small and Mid-Size Tax-Exempt Organizations.  Each one-day workshop is presented by an experienced tax professional and includes information on what 501(c)(3) organizations must do to keep their tax-exempt status and comply with tax obligations.

The IRS also has a section of its site devoted to more general Tax Information for Charitable Organizations, including tax exemption, filing requirements, restrictions on political activities, and the life cycle of a public charity.

The Foundation Center-Washington, DC has a number of guides and handbooks for completing the Form 990 in its collection, including:

The New Form 990: Law, Policy, and Preparation (Hokoken, NJ: John Wiley & Sons, 2009) provides instructions for completing the revised Form 990. Following the overview, the chapters conform to the order of the form, looking at each part, line, and schedule of the document, explaining the pertinent laws. Written in non-technical language, the book also discusses those aspects of the new form that are controversial or have been challenged. A copy of the form is included.

The Zondervan Church and Nonprofit Organization Tax & Financial Guide (Grand Rapids, MI: Zondervan Publishing House) discusses various financial and accounting topics in plain language. Subjects covered include tax exemption, employee compensation, reporting, and charitable gifts; the book contains sample documents.

You can find more books, articles, and other resources on this topic by searching the Catalog of Nonprofit Literature (CNL) for the subjects "Tax returns," "Taxation," or "Nonprofit organizations--accounting."

You may also be interested in these recorded presentations on the new 990:

Video New Governance Practices Required by the Revised Form 990: Is Your Board Ready?

Podcast Getting Ready for Schedule G on the New IRS Form 990

If your nonprofit needs additional assistance in completing the new 990, the DC Bar Pro Bono Program may be able to help.

(Based on a post by Stephen Sherman, Reference Librarian, Foundation Center-Atlanta)

OPGS Facing Major Funding Cuts in DC 2010 Budget

 

These cuts will result in reductions in the valuable services that the Mayor's Office of Partnerships and Grant Services (OPGS) provides for DC nonprofits. Its weekly electronic Funding Alert is a useful tool for identifying federal grants and other local funding sources that often do not show up anywhere else. The office also provides a wide range of technical assistance to faith and non-faith based community organizations and operates a Grants Information Resource Center in the Wilson Building that provides free access to the Foundation Center's database of grantmaker information, Foundation Directory Online.

OPGS is under the DC Council Committee on Government Operations and the Environment, which is chaired by Mary Cheh. Other committee members are: Kwame Brown, David Catania, Harry Thomas, Jr. and Tommy Wells. If you wish to show your support for OPGS, contact the committee members.

What services of OPGS have helped you?

Become a DC Leader

The members of Leadership Greater Washington are among the region’s most important change agents. The organization provides a platform for its 1,200 members to identify challenges in the region, drive dialogue, and create connections that facilitate solutions.

In order to become a member, an individual must be selected through an application process and complete an initial program year. The year-long program provides intensive, hands-on study and in-depth discussion of regional issues including affordable housing, arts, economic development, education, inclusiveness and equity, health, public safety, and transportation. In order to keep pace with the dynamic nature of the region, the program evolves from year to year. Approximately 55 individuals are selected from a pool of applicants to participate in each program year. You can view a list of 2009 participants here.

The application deadline to be part of the Class of 2010 is just around the corner on March 31, 2009. You can learn more and download the application online. The final informational session for applicants is being held on Wednesday, March 18 at 5:30 pm.

Nonprofits and the Stimulus Bill

The DC-based National Council of Nonprofits recently released a series of four Special Reports about our nation’s economic recovery, including analysis of the American Recovery & Reinvestment Act of 2009 (commonly referred to as the economic stimulus bill) that President Obama signed into law on February 17, 2009.

The National Council decided to share this information broadly, saying, "With individuals and communities suffering, Americans in all three sectors – business, government, and nonprofit – need to come together and share information. By working together, we can collectively develop better solutions for the common good."

• Nonprofit Grant Opportunities [PDF]
  This core report analyzes the $787 billion economic stimulus legislation, summarizing the major spending and tax cut provisions and identifying potential grant opportunities for nonprofits.

• Stimulus Grant Tips and Thoughts [PDF]
  This report offers grant information, tips, and considerations - including that the stimulus package offers some grant opportunities, but is not a universal remedy for everyone.

• Whether and How States Are Accepting & Distributing Federal Stimulus Funds [PDF]
  This report reviews how various Governors have indicated they will handle the federal funds.

• Sources of Information Regarding Stimulus Funds [PDF]
  This report identifies national and state sources of information about the federal stimulus funds, including official recovery websites that states have established.

These Special Reports will be revised on a periodic basis, so you may want to visit the National Council's web site to look for future updates.

Don't forget that the Obama administration has created a web site, Recovery.gov, to track the distribution of stimulus funds.

Address Change for Local Grantmaker

The Eugene and Agnes E. Meyer Foundation, a prominent Washington, DC funder, will be moving to a new address. As of February 23, 2009, the Meyer Foundation will be housed at the following location:

Meyer Foundation
1250 Connecticut Avenue, NW
Suite 800
Washington, DC 20036
Telephone:  202-483-8294
Fax:  202-328-6850

In this new location, the Meyer Foundation has created a green, energy-efficient office which is more Metro and bus accessible. And its new community conference center will be larger, more flexible, and will remain available free of charge to Meyer grant recipient groups and funding colleagues.

Standards and Fundraising Success

In this terribly challenging economy, nonprofits are more focused than ever on fundraising. As we work to craft the strongest possible proposals and develop relationships with foundations and other funders, we also must remain focused on our organizations’ infrastructure. We must insist that our “house in is order” and that our boards, volunteers and staff are working within a strong organizational framework.  

 The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector® offers a model for how the most well managed and responsibly governed organizations operate. The Standards for Excellence® code encourages nonprofits to embrace best practices in critical areas like mission, program evaluation, governance, conflicts of interest human resources, financial issues, openness, fundraising, and public policy and public affairs. Strengthening these areas will help you meet your mission and make your case to funders.

To learn more about the Standards for Excellence® code, attend our special program on February 6 at 9:30 am at the Foundation Center, Washington, DC.  Space is still available, so be sure to register for this free informative program!

Sponsored by the Maryland Association of Nonprofit Organizations.