Wednesday, February 2, 2011

Girls Inc. sells Albany building

The Business Review reported that Girls Inc. of the Capital Region has sold its Albany, New York location and now leases space from Northeastern Association of the Blind in Albany Inc.

The new arrangement is expected to save the Schenectady-based nonprofit $10,000 a year in operating costs. Girls Inc. sold its “as-is” two-story, 9,000-square-foot building at 25 Western Ave. to Fairbanks Properties LLC for $80,000, said Gail Wilson-Giarratano, CEO of Girls Inc.

Fairbanks also bought the adjoining property at 27 Western Ave., which it plans to convert to 33 apartments, said Tracy Metzger, senior director at Hunt Commercial Real Estate in Albany.

NABA, at 301 Washington Ave., is less than a block away from 25 Western Ave., in a low-income section of the city.

The Western Ave. building is about 100 years old and required between $200,000 and $300,000 in structural work, including an elevator and accessibility for disabled individuals.

“We needed to stay in the neighborhood, but as a tenant and not a building owner,” Wilson-Giarratano said. Selling to a for-profit company puts the building on the tax rolls, she said. Like most nonprofits, Girls Inc. is exempt from paying property taxes.

Girls Inc. will continue to own its building on Albany Street in Schenectady, home to its administrative offices and program space.

The organization provides programs for 200 mostly inner-city girls at sites in Albany, Schenectady, Rensselaer, Saratoga, Fulton, Montgomery and Schoharie counties. It operates with a $1.8 million annual budget.

Continue reading here

Monday, January 31, 2011

Schenectady seeks other cities in lobbying of state lawmakers on tax issue

The city plans on sending letters to other New York cities to gage interest in sponsoring state legislation allowing nonprofits to be taxed.

City Council President Gary McCarthy acknowledged Tuesday the uphill battle in even suggesting such an endeavor, but said it would be a good way to get discussion going about the financial burdens municipalities face as costs skyrocket and large nonprofits, like hospitals and colleges, pay no property taxes.

McCarthy noted at the council's committee meeting Tuesday night that Ellis Medicine did contribute $40,000 in October as the city faced a large budget deficit, but "Union College has been more or less dragged to the plate," to get the private institution to pay a fee in lieu of taxes, he said. The college announced last week it is giving $40,000 based on what Ellis already gave. The combined $80,000 will keep two city pools open.

"There are multi-million dollar enterprises in this city that are far bigger than some for-profit corporations," he said.

City Council members directed the law office to draft a letter to be sent to all cities and some large villages asking if there would be support to lobby state lawmakers to draft legislation that would require a property tax on nonprofits. Council members said any measure would likely mean nonprofits would only pay a portion of what residential and commercial property owners pay.

Mayor Brian U. Stratton said he supports the efforts, but has gotten staunch resistance before from the Conference of Mayors because of lobbying done by nonprofits.

Councilwoman Denise Brucker said she wants to see if churches can be accountable for a payment as some buildings are rented out with a benefit to the faith organization -- such as the Albany Catholic Diocese renting former schools to the city school district.

Stratton tried to assess a curb fee on nonprofits for the 2011 budget, but canned the idea after it was found the fee wouldn't make the $1.4 million he wanted. He sent letters to some 145 nonprofits asking the fee be voluntary; the city got about $16,000 back.

Sunday, January 30, 2011

Google Finds It Hard to Reinvent Philanthropy

The NY Times featured a recent article on Google and their philanthropy efforts and predictions that they were going to change the game:

JUST before Google first sold its shares to the public in 2004, Larry Page, one of its founders, excited the nonprofit world with a bold commitment to philanthropy.

He vowed to dedicate about 1 percent of Google’s profits, 1 percent of its equity and a significant amount of its employees’ time to the effort, which became known as Google.org, or simply DotOrg. “We hope someday this institution may eclipse Google itself in terms of overall world impact by ambitiously applying innovation and significant resources to the largest of the world’s problems,” Mr. Page wrote in a letter to potential investors.

Although Google intended to tackle major problems like climate change, global poverty and the spread of pandemic diseases, it declared that DotOrg would not be “conventional” — a four-letter word in Google-speak. For starters, the organization would operate in part as a business, thus freeing itself from various constraints placed on nonprofit groups.

Google hired Larry Brilliant, a public health expert and Silicon Valley entrepreneur with no experience running a major philanthropy, to lead DotOrg, which was set up as a business unit within the company. It then poached prominent experts in development, energy and public health from prestigious institutions like the Aga Khan Foundation, Goldman Sachs and the International Water Management Institute.

“Google.org can play the entire keyboard,” Dr. Brilliant said in an interview with The New York Times shortly after his appointment. “It can start companies, build industries, pay consultants, lobby, give money to individuals and make a profit.”

Nearly five years later, however, the hyperbole looks more like hubris. DotOrg has narrowed to just one octave on the piano: engineering-related projects that often are the outgrowth of existing Google products. Dr. Brilliant was sidelined in early 2009 after his loose management style created much disenchantment in DotOrg’s ranks.

The company’s top executives rarely mention DotOrg, which is now run by Megan Smith, a business development executive who devotes only part of her time to the organization.

Although Google gives tens of millions of dollars to charity each year and says the overall company is meeting its 1 percent giving goal, DotOrg itself is no longer making grants to nonprofit groups or financing new companies. Instead, it focuses on projects like using Google Earth to track environmental changes and monitoring Web searches to detect flu outbreaks. Most of the experts it initially hired have left, and Google, a company obsessed with numbers and metrics, struggles to measure DotOrg’s accomplishments.

Google says it has changed its approach to philanthropy, but not its scope or ambition. Ms. Smith readily acknowledges that the organization has yet to prove itself, but she says it has already had a positive impact in various areas, such as public health and the environment.

“We are a start-up,” Ms. Smith said in a recent interview. “The aspirational goals in the founding of DotOrg are long term. Our hope is to get to that point where we could have the impact that our founders hoped.”

In the philanthropy world, many people have a more skeptical view of Google’s experiment.

“I think there were from the beginning two competing ideas about what DotOrg would be,” said Joshua Cohen, a professor of law, politics and philosophy at Stanford who, after DotOrg was formed, was hired to create seminars to educate Googlers on issues bedeviling developing countries. “The first was a Googley idea that DotOrg would completely reinvent philanthropy and, in doing so, reinvent the world and address a hugely important set of problems with solutions only Google with its immense intellectual talent and resources could find.”

The second idea, Professor Cohen said, was more modest: “that DotOrg could make some headway, maybe a little, maybe a lot, in addressing these really big problems by doing what Google as a company is really good at doing, which is to say, aggregating information.”

“The second idea,” he continued, “won out.”

NOTHING illustrates DotOrg’s approach better than Google Flu Trends, an innovative tool that uses data collected from searches about flu symptoms to predict the location of flu outbreaks. In April 2009, Dr. Brilliant said it epitomized the power of Google’s vaunted engineering prowess to make the world a better place, and he predicted that it would save untold numbers of lives.

Public health officials say the tool is undoubtedly useful.

But “on an individual basis, does Flu Trends save lives? No,” said Ashley LaMonte-Fowlkes, an epidemiologist at the Centers for Disease Control and Prevention, which helped Google test and develop it.

Instead, she described it as “a really nice adjunct” to other tools that the agency uses to understand the spread of flu. One major shortcoming of Flu Trends is that in poor regions of the developing world, where devastating pandemics are most likely to start, computers are not widely available, so Google has little data to feed into the tool. Even in the United States, during the swine flu outbreak of 2009, Flu Trends had difficulty detecting the relatively small number of H1N1 infections.

Some veterans of DotOrg say Flu Trends is an example of how Google’s engineering-centric approach frustrated and limited them.

Read more here.

Thursday, January 27, 2011

Don’t get burned. File the 501(h) election!

With much of America gripped by below-freezing weather this winter, it’s nice to imagine being on a sunny beach, with white sand all around, gentle island breezes playing in your hair, and nothing for miles but a cloudless blue sky.

Did you bring your sunscreen?


Reality check – whether freezing or on a beach – you still want to protect your nonprofit from getting burned.


Filing the 501(h) election protects nonprofits from being burned.
By filing one simple form, IRS Form 5768, a charitable nonprofit can protect itself from penalties for engaging in "too much" lobbying. (Charitable nonprofits can lobby; read why lobbying is legal.) A charitable nonprofit can only spend an insubstantial amount of its activities on lobbying. But there is a hazy ill-defined line between what "activities" are considered "substantial" and which are "insubstantial." Here’s where the sunscreen comes in. By filing IRS Form 5768 (also referred to as "taking the 501(h) election") instead of being judged by the uncertain “substantial part” test that evaluates undefined "activities" -- your nonprofit will have the added protection of being evaluated with a more specific test called the “expenditure” test that offers a bright line based on how much money the nonprofit spends on its lobbying activities. If you don’t take the 501(h) election, it’s li! ke guessing how long to stay in the sun before you’ll get a sun burn.

Read all about the advantages of taking the 501(h) election on the National Council’s website. (Note: Private foundations, churches, and integrated auxiliaries of churches are not permitted to file the 501(h) election.)

It’s so simple and effective that some nonprofit practitioners have called it the "cheapest and best insurance on the planet." Indeed, we wonder why more nonprofits don’t use this easy process. Once a nonprofit files the 501(h) election by completing Form 5768, it simply reports annually how much money it spent during the year on lobbying activities on Form 990, Schedule C. As long as the nonprofit’s expenditures are within the acceptable (and generous limits) established by law, the nonprofit is protected. However, if it does not file Form 5768, not only is the reporting to the IRS more detailed, but the IRS will decide, based on uncertain criteria, whether the charitable nonprofit’s lobbying activities are “substantial” or not. Because the IRS has never defined how much is “too much,” the results of this analysis are uncertain. Why not file the! 501(h) election and be sure?

Start off the New Year by protecting your nonprofit with the 501(h) election – it’s easier than putting on sunscreen. (You only have to do it once!)

Tuesday, January 18, 2011

Study Reports Up to Half in US Impacted by Pre-existing Conditions for Health Insurance Coverage

http://www.msnbc.com/ reported on a study that as many 129 million Americans at risk of being rejected for insurance coverage or having to pay more.

As many as 129 million Americans under age 65 have medical problems putting them at risk of being rejected by insurance companies or having to pay more for coverage, according to a U.S. government study reported by the Washington Post on Tuesday.

The Department of Health and Human Services is scheduled to release the study on Tuesday, the Post said, the same day the House of Representatives is expected to begin considering a Republican bill to repeal President Barack Obama's healthcare overall.

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..The report is part of the Obama administration's effort to convince the public of the advantages of the law, which contains insurance protections for people with pre-existing medical conditions.

"Americans living with pre-existing conditions are being freed from discrimination in order to get the health coverage they need," HHS Secretary Kathleen Sebelius said in a statement to be released Tuesday, the Post reported.

The study found that one-fifth to one-half of non-elderly people in the United States have conditions that trigger rejection or higher prices in the individual insurance market, the Post said. They range from cancer to chronic illnesses such as heart disease, asthma and high blood pressure.

A Republican House aide, speaking on condition of anonymity because the report was not yet public, told the Post: "When a new analysis is released on the eve of a vote in Congress, it's hard to view it as anything but politics and public relations."

The repeal vote would fulfil a campaign promise of Republicans who won control of the House in November elections. But the measure will likely die in the Senate, where Democrats held on to their majority.

Monday, January 17, 2011

New York Board of Regents Form 16-Member Committee to Investigate Deaccessioning

www.mediabistro.com reported the following:

This past fall, you might remember, was a bit rocky for the museum industry in New York. First, the state’s plans to pass a bill making selling pieces or collections of art in order to pay for anything but more art, particularly by government-funded museums, would be illegal, failed to pass through the senate. This was likely due to pressure put against its passing by the big, New York City-based museums who publicly stated on a number of occasions their distaste for regulation and promised they could police themselves just fine. If you were in support of the failed bill, things got even worse when the New York Board of Regents allowed emergency regulations surrounding museum deaccessioning to expire. This concerned many, as it was a sign that the flood gates for art sales could potentially now be open. Though that didn’t seem to happen en mass, at least on the record, the Regents caught a good deal of heat for it. Now, some months later, they appear to be attempting to regroup and figure out the controversial issue-at-hand. Judith H. Dobrzynski of Real Clear Arts reports that the Regents have recently formed a 16 member advisory committee who will look into how the state should handle museum deaccessioning. The list of members include lots of directors of museums across the state, as well as a couple of more high-profile museum types, including Martin Sullivan of the National Portrait Gallery, who was recently/currently mired in a controversy of his own. So what will come of the committee? That’s anyone’s guess. But given how tumultuous 2010 was for the state, it’s sure to be interesting to watch pan out.

States' desperate times lead to desperate measures

New York: Democratic Gov. Andrew Cuomo proposed eliminating 20% of state agencies by combining duties, such as merging the Insurance Department, Banking Department and the Consumer Protection Board into the Department of Financial Regulation. It's part of "radical reform" to pull his state out of its fiscal crisis.
New Jersey: Republican Gov. Chris Christie skipped a $3.1-billion payment to the state's pension system in a push to cut benefits for public workers, while proposing higher employee contributions and a boost in the retirement age from 62 to 65.

Georgia: Deep cuts appear to await the state's popular HOPE scholarship program that provides public-college tuition to students who earn good grades. Rising tuition and enrollment have outpaced the lottery revenues that fund the program, and Republican Gov. Nathan Deal has not proposed any additional state money to bail it out.

Illinois: Lawmakers voted for a dramatic 66% hike in personal income tax, from 3% to 5%, in a bid to resolve a $15-billion deficit, which amounts to more than half of the state's general fund. The tax increase will be coupled with strict 2% limits on spending growth. "It's important for their state government not to be a fiscal basket case," said Gov. Pat Quinn, a Democrat.

Texas: In oil-rich Texas, where education and social service spending is relatively low and Republican Gov. Rick Perry has railed against government spending, hard times loom. The shortfall is projected to be between $15 billion and $27 billion over the coming two-year budget cycle.

South Carolina: Outgoing GOP Gov. Mark Sanford proposed a spending plan that would end funding for museum and arts programs, slash college funding and cut state workers' pay by 5%.