Read Dan Pallotta's latest post in the Harvard Business Review:
Oregon's Attorney General John Kroger has introduced a bill that would strip the tax-deductible status from donations made to charities that spend less than 30% of their annual budget on services over the course of a three-year period. The law is intended to weed out scams.
And that's a problem. The fact that a charity spends less than 30% of donations on services doesn't mean it's a scam, and the fact that it spends more than that doesn't mean it's not one. The proposed law could not be more dysfunctionally designed: It has a blind spot for real fraud and puts a spotlight on potential innocence.
Here are six reasons why anyone who cares about social progress should contact Mr. Kruger's office and ask him to withdraw this proposed legislation:
1.It uses a false theory of transparency. It assumes — and makes the public think — that disclosure of overhead is transparency. Nothing could be further from the truth. Many reported overhead ratios distort and obscure the truth. They cloak the underlying accounting that goes into calculating the overhead percentage. Reporting a high rate of overhead probably signals a kind of innocence: It means the charity isn't using accounting shenanigans. The law drives right past real fraud (in the form of fraudulent accounting) — misses it completely, every time. Charities using aggressive, unethical accounting practices to mask high overhead get a free pass — or worse, they're made to look good. This practice is widespread. The Nonprofit Overhead Cost Project at Indiana University reported that, of 126,956 tax forms they studied, half of the organizations reported a hard-to-believe 0% fundraising cost, and one-quarter of charities with revenues between $1 million and $5 million reported a 0% fundraising cost.
Read more here.
Thursday, March 24, 2011
Tuesday, March 15, 2011
Nonprofit Compensation: What is too much? …and who decides?
Are you tired of hearing, "That nonprofit pays its employees too much!" If every nonprofit board followed IRS guidance on setting the compensation of its key staff leaders, perhaps we wouldn’t hear that refrain as often. So board members, please do your part by embracing your role as defenders of the nonprofit sector’s right to pay its employees reasonably and fairly. Help us change the conversation from, "What compensation is excessive?" to "What compensation levels will help our organization build its capacity by hiring and retaining terrific staff?"
First, know the process for reviewing the annual compensation of the executive director. Second, be aware of the downside of NOT engaging in an annual compensation review. (Bad press, lack of donor confidence, and potentially IRS penalties….need we say more?)
Background: Under federal law, a charity may not pay more than "reasonable" compensation for services rendered. Although the Internal Revenue Code does not require charities to follow a particular process for determining the appropriate level of salary and benefits, it is clear that compensation for board members, officers, key employees (and others in a position to exercise substantial influence over the affairs of the nonprofit) should be determined by persons who are informed about what comparable nonprofits pay their employees, and who have no financial interest themselves in approving the compensation. (Source: IRS, Governance and Related Topics - 501(c)(3) Organizations 3-4 (2008)). These are the general guidelines offered by the IRS – but the IRS Form 990 offers specifics.
First, know the process for reviewing the annual compensation of the executive director. Second, be aware of the downside of NOT engaging in an annual compensation review. (Bad press, lack of donor confidence, and potentially IRS penalties….need we say more?)
Background: Under federal law, a charity may not pay more than "reasonable" compensation for services rendered. Although the Internal Revenue Code does not require charities to follow a particular process for determining the appropriate level of salary and benefits, it is clear that compensation for board members, officers, key employees (and others in a position to exercise substantial influence over the affairs of the nonprofit) should be determined by persons who are informed about what comparable nonprofits pay their employees, and who have no financial interest themselves in approving the compensation. (Source: IRS, Governance and Related Topics - 501(c)(3) Organizations 3-4 (2008)). These are the general guidelines offered by the IRS – but the IRS Form 990 offers specifics.
The IRS Form 990 asks nonprofits about the three-step process used to approve the compensation of the executive director/CEO (and certain other key employees): Did the process for determining compensation of the following persons include a (1) review and approval by independent persons, (2) comparability data, and (3) contemporaneous substantiation of the deliberation and decision?(See Section VI, Part B, line 15, of the Form 990.) Nonprofits that follow this three-step process are generally able to take advantage of what the IRS refers to as a "rebuttable presumption" that the compensation is reasonable, thereby protecting the nonprofit and the board members from sanctions that can be imposed by the IRS if it finds that the compensation was not reasonable.
Visit the National Council’s website for more information on how to measure comparability of compensation, and visit the IRS website for background on what can happen if a board fails to demonstrate it followed this 3-step rebuttable presumption process [hint: intermediate sanctions].
Demonstrating that your nonprofit has approved the compensation of the executive director/CEO in a thoughtful, deliberative process is a basic fiduciary responsibility of every nonprofit board. Here are some pointers:
Demonstrating that your nonprofit has approved the compensation of the executive director/CEO in a thoughtful, deliberative process is a basic fiduciary responsibility of every nonprofit board. Here are some pointers:
- The process of reviewing executive compensation should recur whenever there is an adjustment to the executive director/CEO’s compensation.
- Having a written policy can help keep the process on track. ( See sample policy).
- The "executive compensation review" should be conducted by persons who are "independent" (not paid by the nonprofit). Many nonprofits use a sub-committee, such as a "compensation committee" made up of board members and volunteers, or the executive committee, to conduct the initial review and then make a recommendation to the full board.
- Having the full board approve the compensation of the executive director/CEO is consistent with being a transparent and accountable organization.
- Documentation of what the board’s decision was based on (such as comparability data) and of the fact that the board carefully deliberated and approved the CEO’s compensation is critical. Minutes of the meeting should include enough details so that if the board’s decision is questioned, the process the board used to determine that compensation is "reasonable" will be clear.
- "Compensation" means both salary and benefits, so if an executive director receives a salary but also other fringe benefits such as insurance, or a car or housing allowance, all those elements must be totaled together to determine the annual compensation.
Read about additional governance policies that your nonprofit’s board should be aware of.
Thursday, March 3, 2011
Building Opportunities 2011: The Nonprofit Shared Space and Services Conference
Join us for three days of practical tools to create successful nonprofit shared space and services.
Building Opportunities 2011 is the largest event in North America dedicated to creating and managing shared nonprofit workspace, administrative services, technology, and programs. Learn from The NonprofitCenters Network's ten years of collected best practices. Join leaders from the nonprofit, philanthropic, business, and public sectors as we discuss WHAT WORKS in shared space and services.
Gather comprehensive information on:
- Nuts and bolts of creating and operating multi-tenant nonprofit facilities
- Proven models of success for sharing administrative services, technology, and programs
- Commercial and nonprofit financing options
- Cost-saving solutions for quality, efficient operations
- Tools to evaluate and amplify the impact of your collaborative space project
- Successful strategies for community-building, ownership and governance, and cross-sector partnerships
What to expect:
- Significant networking opportunities
- Over 20 new workshops and discussions covering diverse topics, incuding community-building and facility operations
- Dynamic speakers from across the design, real estate, and financial sectors, as well as nonprofit sector leaders
- New conference ambassador program to foster peer-to-peer learning
- Thought-provoking plenaries exploring proven impact and future directions for the shared space and services movement
- Tours of nonprofit center facilities in the Los Angeles area
- Valuable resource materials to take home
Learn more and register today.
DATES:
May 9 - 11, 2011
LOCATION:
Center for Healthy Communities at
The California Endowment
1000 North Alameda Street
Los Angeles, CA 90012
COST:
Early Bird through April 1
NCN Members: $295
Non-Members: $495
After April 1
NCN Members: $375
Non-Members: $575
Group Discount:
10% off total amount with 2+ registrants from an organization
Fiscal Sponsorship = Sharing Tax-Exempt Status
How can a nonprofit raise money if it is not tax-exempt?
An organization that is not tax-exempt (either because it has not yet been recognized as tax-exempt by the IRS or has had its exemption revoked) can arrange with another organization that is tax-exempt to serve as its "fiscal sponsor." The role of the fiscal sponsor typically includes handling the administrative responsibilities of receiving and administering charitable contributions on behalf of the sponsored organization. (The fiscal sponsor may be paid a reasonable fee for this administrative service.)
In essence, fiscal sponsorship is a relationship in which the tax-exempt status of one organization is effectively shared with a sponsored organization/program. The sponsored organization benefits because contributions are made to the fiscal sponsor (which is tax-exempt). This allows donors to receive a deduction for their contribution, which generally smooths the way for financial support.
- Because of the administrative responsibilities involved, it is best to memorialize fiscal sponsorship arrangements in a formal written agreement.
- There are other reasons to consider a fiscal sponsorship relationship in addition to fundraising. Many organizations rely on their fiscal sponsor for other functions, such as bookkeeping, human resources, and various administrative roles.
Did you know?
The IRS will soon release a list of nonprofits that have had their tax-exempt status automatically revoked for failure to file 990s with the IRS for three consecutive years. If a nonprofit loses its tax-exempt status but still wants to fund its operations on a temporary basis while it reapplies for tax-exempt status with the IRS, it will need a way to continue to attract deductible contributions in order to deliver its mission in the community. Fiscal sponsorship may be one answer.
The IRS will soon release a list of nonprofits that have had their tax-exempt status automatically revoked for failure to file 990s with the IRS for three consecutive years. If a nonprofit loses its tax-exempt status but still wants to fund its operations on a temporary basis while it reapplies for tax-exempt status with the IRS, it will need a way to continue to attract deductible contributions in order to deliver its mission in the community. Fiscal sponsorship may be one answer.
Read all about fiscal sponsorships from the Resources section on the National Council’s website: what they are, why an organization might consider using a fiscal sponsor, and what risks and advantages they provide to the nonprofit serving as a fiscal sponsor.
- Looking for a fiscal sponsor or willing to serve as one? Search or sign up using the Fiscal Sponsor Directory. Local community foundations and State Associations may also be helpful resources for finding fiscal sponsors. Some organizations that serve as incubators/fiscal sponsors are listed on our website.
- Stay out of trouble with this post by NonprofitLaw Blog author Gene Tagaki, Esq., that offers advice about what to avoid when engaging in fiscal sponsor relationships: Fiscal Sponsorship – Six Ways to Do it Wrong.
- If your organization is considering becoming a fiscal sponsor, or using one, read about recommended best practices for fiscal sponsors developed by the National Network of Fiscal Sponsors.
- Put it in writing! Suggestions for what to include in a written agreement or memorandum of understanding between a fiscal sponsor and the sponsored organization are set forth on page 5 of this monograph: On Comprehensive Fiscal Sponsorship, by Joshua Sattely, Third Sector New England (2009).
- Debunk the myths and learn about the untapped potential of fiscal sponsorships from this report, More than Money- Fiscal Sponsorship’s Unrealized Potential, BTW Consultants, (May 2007).
- Before you take the plunge, learn from others: The experiences of 200 fiscal sponsors are described in the Fiscal Sponsorship Field Scan, a report based on the first-ever survey of fiscal sponsors conducted by the Tides Foundation (2006).
- More fiscal sponsorship resources from CompassPoint.
How could a nonprofit lose its tax-exempt status?
A nonprofit could lose its tax-exempt status in a number of ways.
- Read about risky activities that – when engaged in by a nonprofit – could jeopardize tax-exemption.
- Most tax-exempt organizations, other than churches, must file an annual return (Form 990) with the IRS – if they do not, they face automatic revocation if they fail to file annual reports for three consecutive years.
- Check the at-risk list. The IRS website provides a state-by-state list of organizations at-risk of losing their tax-exempt status. In some states there are over 12,000 organizations (just in that state) listed!
Tuesday, February 22, 2011
NONDISCRIMINATION TESTING FOR EMPLOYER-SPONSORED HEALTH PLANS
Council Services Plus has formed a partnership with Watson and West, LLP to assist employers with nondiscrimination testing requirements. We are following the legislation and updates to keep abreast of the mandate. We have the resources and expertise to provide the testing requirements once the rules and regulations are established. It will be imperative for employers to satisfy these rules to avoid penalties under section 2716 of the Public Health Services Act (PHSA).
You are receiving this email as a courtesy to help you and your organization prepare for compliance with this aspect of The Patient Protection and Affordable Care Act (PPACA).
Employers are familiar with Section 105(h) testing for retirement plans. PPACA includes similar testing for group health plans to ensure that highly compensated employees (HCE) do not receive favorable treatment in comparison to rank-and-file employees. The full picture of the impact is not yet available due to administrative reviews by the IRS and other federal government agencies; however, we can anticipate that employer groups with 100 employees or more will be required to perform nondiscrimination testing similar, but not the same as, Section 105(h). Oversight of nondiscrimination testing for health plans is shared by the US Departments of Treasury, Labor and HHS.
At this time, please be aware that nondiscrimination requirements focus on plan benefits, eligibility, premium contribution, and administration of benefits to prohibit employers from granting highly compensated employees health benefits that are more generous than the general population of employees. We anticipate clarification of regulations to be available around May. If you are interested in learning more details of the legislation, or want us to keep you informed regarding updates to the regulations, please feel fre to contact us.
For more information or questions concerning the above, please contact Cathy Connors, at (800) 515-5012 x131; or via email at cconnorscconnors@councilservicesplus.com
You are receiving this email as a courtesy to help you and your organization prepare for compliance with this aspect of The Patient Protection and Affordable Care Act (PPACA).
Employers are familiar with Section 105(h) testing for retirement plans. PPACA includes similar testing for group health plans to ensure that highly compensated employees (HCE) do not receive favorable treatment in comparison to rank-and-file employees. The full picture of the impact is not yet available due to administrative reviews by the IRS and other federal government agencies; however, we can anticipate that employer groups with 100 employees or more will be required to perform nondiscrimination testing similar, but not the same as, Section 105(h). Oversight of nondiscrimination testing for health plans is shared by the US Departments of Treasury, Labor and HHS.
At this time, please be aware that nondiscrimination requirements focus on plan benefits, eligibility, premium contribution, and administration of benefits to prohibit employers from granting highly compensated employees health benefits that are more generous than the general population of employees. We anticipate clarification of regulations to be available around May. If you are interested in learning more details of the legislation, or want us to keep you informed regarding updates to the regulations, please feel fre to contact us.
For more information or questions concerning the above, please contact Cathy Connors, at (800) 515-5012 x131; or via email at cconnorscconnors@councilservicesplus.com
Monday, February 14, 2011
House Cuts Deep and Destructive for Nonprofits
House Appropriators Would Slash More than $65 billion in the Next Seven Months;
Vulnerable People Hit Hard
The House Appropriations Committee has released the cuts it will make to finish out the remaining 7 months of this fiscal year. It proposes to cut $100 billion below the President's FY 2011 budget proposal, of which $81 billion is cut from domestic and international programs, and $19 billion comes from military, homeland security, and veterans' programs. The President's proposals were higher than the level of spending that has been adopted so far in temporary spending measures. This proposal cuts about $60 billion as compared to FY 2010. Because there are increases in military, veterans' and homeland security spending, the cut to domestic and international programs is higher than the $60 billion in net reductions. There are $65.5 billion in cuts to domestic and international spending and a net $3.4 billion in cuts to military construction, homeland security, and veterans affairs. There are increases for veterans health care ($3.687 billion), homeland security ($1.2 billion) and defense spending (approximately $9 billion?).
Even though we are already five months into the fiscal year, some programs lose ALL of their regular FY 2011 appropriations (some may have remaining economic recovery or other funding).
Some terminated programs:
Reintegration of Ex-Offenders
YouthBuild
Green Jobs Innovation Fund
Career Pathways Innovation Fund
National Health Service Corps
Family Planning (Title X)
Teen Pregnancy Prevention Discretionary Grants
Mentoring Children of Prisoners
Even Start
Striving Readers
High School Graduation Initiative
Federal Supplemental Educational Opportunity Grants (higher ed financial assistance)
LEAP program (for low-income college students)
There are other very draconian cuts. Here are some comparisons to FY 2010 levels. PLEASE SHARE ANY ADDITIONAL INFORMATION OR CORRECTIONS YOU HAVE ABOUT THESE OR OTHER CUTS:
$1 billion from Head Start (15 percent);
$1.4 billion from various job training programs (we're not sure exactly what is cut, but for purposes of comparison, two major job training programs, adult and youth training, were funded at $1.78 billion in FY 2010. (That does not include nearly $1.7 billion in economic recovery act funding that was available in FYs 2009 and 2010 - that is gone too.)
Community Health Centers (46 percent of regular appropriation);
Substance abuse treatment (more than $200 million cut);
Community Services Block Grant (44 percent cut);
Low Income Home Energy Assistance (LIHEAP) contingency fund (66 percent cut);
FEMA Emergency Food and Shelter Program (50 percent cut);
Title I (K-12 education for low-income students) ($693.5 million),
IDEA (special education) grants to states: (nearly $560 million);
Commodity Supplemental Food Program (11.4 percent cut);
Community Development Fund ($2.95 billion, or 66.3 percent cut);
Project-based rental assistance ($715.5 million, or 8.4 percent cut);
Public Housing Capital Fund ($1.07 billion, or 42 percent cut);
Housing for the Elderly ($551 million, or 67 percent cut);
Housing for Persons with Disabilities ($210 million, or 70 percent cut).
OUR ABILITY TO FIGHT THESE CUTS DEPENDS ON GETTING INFORMATION ABOUT HOW MANY ARE CURRENTLY SERVED, HOW THEY ARE HELPED, AND SOME ESTIMATES OF HOW MANY WILL LOSE HELP BECAUSE OF THESE RECKLESS PROPOSALS. PLEASE HELP!
The full list of cuts from the House Appropriations Committee:
http://republicans.appropriations.house.gov/_files/ProgramCutsFY2011ContinuingResolution.pdf
A summary list by appropriations subcommittees:
http://republicans.appropriations.house.gov/_files/FY2011CRSpendingTablesbySubcommittee.doc
The full legislative text:
http://www.rules.house.gov/Media/file/PDF_112_1/legislativetext/2011crapprops/AppropCRFinal_xml.pdf
This continuing resolution (CR) will be on the House floor next week (likely starting on Wednesday). Debate may proceed for several days; amendments will be permitted. However, amendments to increase funding for any program can only be allowed if they include cuts in other programs within the same subcommittee jurisdiction. Amendments to cut more deeply will be allowed; funds saved through such cuts are reserved in a "lockbox" to reduce the deficit; the money saved cannot then be used to restore funds to another program. After the bill is passed in the House, the Senate must act on it, and a final CR enacted before the March 4 deadline, when the current temporary spending measure expires.
SAVE for All: Strengthening America's Values and Economy for All
If you were wondering whether you should be part of the SAVE for All campaign, the House spending proposal is a good reason to join. Please read and sign the Statement of Principles, and join with hundreds of organizations to fight harshly short-sighted cuts - and to SAVE vulnerable people from losing services and opportunities to escape poverty.
Vulnerable People Hit Hard
The House Appropriations Committee has released the cuts it will make to finish out the remaining 7 months of this fiscal year. It proposes to cut $100 billion below the President's FY 2011 budget proposal, of which $81 billion is cut from domestic and international programs, and $19 billion comes from military, homeland security, and veterans' programs. The President's proposals were higher than the level of spending that has been adopted so far in temporary spending measures. This proposal cuts about $60 billion as compared to FY 2010. Because there are increases in military, veterans' and homeland security spending, the cut to domestic and international programs is higher than the $60 billion in net reductions. There are $65.5 billion in cuts to domestic and international spending and a net $3.4 billion in cuts to military construction, homeland security, and veterans affairs. There are increases for veterans health care ($3.687 billion), homeland security ($1.2 billion) and defense spending (approximately $9 billion?).
Even though we are already five months into the fiscal year, some programs lose ALL of their regular FY 2011 appropriations (some may have remaining economic recovery or other funding).
Some terminated programs:
Reintegration of Ex-Offenders
YouthBuild
Green Jobs Innovation Fund
Career Pathways Innovation Fund
National Health Service Corps
Family Planning (Title X)
Teen Pregnancy Prevention Discretionary Grants
Mentoring Children of Prisoners
Even Start
Striving Readers
High School Graduation Initiative
Federal Supplemental Educational Opportunity Grants (higher ed financial assistance)
LEAP program (for low-income college students)
There are other very draconian cuts. Here are some comparisons to FY 2010 levels. PLEASE SHARE ANY ADDITIONAL INFORMATION OR CORRECTIONS YOU HAVE ABOUT THESE OR OTHER CUTS:
$1 billion from Head Start (15 percent);
$1.4 billion from various job training programs (we're not sure exactly what is cut, but for purposes of comparison, two major job training programs, adult and youth training, were funded at $1.78 billion in FY 2010. (That does not include nearly $1.7 billion in economic recovery act funding that was available in FYs 2009 and 2010 - that is gone too.)
Community Health Centers (46 percent of regular appropriation);
Substance abuse treatment (more than $200 million cut);
Community Services Block Grant (44 percent cut);
Low Income Home Energy Assistance (LIHEAP) contingency fund (66 percent cut);
FEMA Emergency Food and Shelter Program (50 percent cut);
Title I (K-12 education for low-income students) ($693.5 million),
IDEA (special education) grants to states: (nearly $560 million);
Commodity Supplemental Food Program (11.4 percent cut);
Community Development Fund ($2.95 billion, or 66.3 percent cut);
Project-based rental assistance ($715.5 million, or 8.4 percent cut);
Public Housing Capital Fund ($1.07 billion, or 42 percent cut);
Housing for the Elderly ($551 million, or 67 percent cut);
Housing for Persons with Disabilities ($210 million, or 70 percent cut).
OUR ABILITY TO FIGHT THESE CUTS DEPENDS ON GETTING INFORMATION ABOUT HOW MANY ARE CURRENTLY SERVED, HOW THEY ARE HELPED, AND SOME ESTIMATES OF HOW MANY WILL LOSE HELP BECAUSE OF THESE RECKLESS PROPOSALS. PLEASE HELP!
The full list of cuts from the House Appropriations Committee:
http://republicans.appropriations.house.gov/_files/ProgramCutsFY2011ContinuingResolution.pdf
A summary list by appropriations subcommittees:
http://republicans.appropriations.house.gov/_files/FY2011CRSpendingTablesbySubcommittee.doc
The full legislative text:
http://www.rules.house.gov/Media/file/PDF_112_1/legislativetext/2011crapprops/AppropCRFinal_xml.pdf
This continuing resolution (CR) will be on the House floor next week (likely starting on Wednesday). Debate may proceed for several days; amendments will be permitted. However, amendments to increase funding for any program can only be allowed if they include cuts in other programs within the same subcommittee jurisdiction. Amendments to cut more deeply will be allowed; funds saved through such cuts are reserved in a "lockbox" to reduce the deficit; the money saved cannot then be used to restore funds to another program. After the bill is passed in the House, the Senate must act on it, and a final CR enacted before the March 4 deadline, when the current temporary spending measure expires.
SAVE for All: Strengthening America's Values and Economy for All
If you were wondering whether you should be part of the SAVE for All campaign, the House spending proposal is a good reason to join. Please read and sign the Statement of Principles, and join with hundreds of organizations to fight harshly short-sighted cuts - and to SAVE vulnerable people from losing services and opportunities to escape poverty.
Tuesday, February 8, 2011
New Arts Advocacy Group Launches: ARTS NYS Coalition
Times Square Chronicles featured the following post on a new arts advocacy group:
New York City is the heartland of arts and entertainment including commercial and non-profit theatre. In fact, it is the cultural center throughout the country. However, the NY State Council on the Arts (NYSCA) is proposing the largest cuts of any State agency. It seems like a small part of the budget, .0003%, but in reality, with current economic times as they are, perhaps it represents a good portion. Without having a complete budget at hand and someone competent to explain it, I’m like most New Yorkers . . . trying to figure it all out. What is known, however, is that funding for the State Council on the Arts has been consistently reduced by nearly 30% over the past 4 years, representing the largest cut to any state agency. If we’re to continue our place as a major cultural arts center, we must have the funds necessary.
As a state, we have many attributes of which to be proud, but the arts are the soul of New York. Everyday, artists and arts groups throughout the state provide New Yorkers and the multitude of national and international visitors with pleasure, education, new ways of seeing the world, and enormous economic benefits.
Nonprofit cultural organizations in New York City are major contributors to the city’s economy. This sector is the second-largest component of the arts industry and is closely tied to the commercial sector. These organizations also share a labor pool of artists and other creative workers with the commercial sector and often develop artistic products that transfer to Broadway or is otherwise utilized commercially. A similarly complex interaction occurs between museums and commercial galleries and auction houses.
The nonprofit arts industry is labor-intensive. Half of the direct spending by all nonprofit cultural organizations goes to wages and benefits, and about 11 percent is for fees and services, including outside artistic fees. The majority of the employees are city residents, and many of the vendors and workers who supply goods and services to these institutions are located either within the city or in nearby suburban counties.
New York City is also a mecca for those who work in commercial theaters also apply their artistic talent and technical expertise in nonprofit theater and in the motion picture and television industry.
Who is ARTS NYS Coalition?They are a group of colleagues who joined together to ensure that the public has access to information on the state of the arts in New York State. Currently, the coalition includes the New York City Arts Coalition and the Arts Councils of Dutchess, Greene, Onondaga (Syracuse) and Westchester Counties, Huntington, Northern Adirondacks, Saint Lawrence and Southern Finger Lakes regions, Arts Alliances of Harlem and Buffalo, New York Folklore Society, NYS Alliance for Arts Education, and Museum Association of New York.
Thus far, the coalition has established this website, http://www.artsnys.org/, which will be a resource for data on the arts in New York State as well as information on pending legislation at the state and federal level. This website, in partnership with Americans for the Arts, will provide contact level providing information for elected representatives and will allow individuals to send their representatives customized messages.
ARTS New York State Coalition will also plan and coordinate state-wide advocacy events for 2011 which will provide the arts community with opportunities to meet with elected officials to discuss arts funding in the 2011/12 New York State Budget as well as other issues. A designated Arts Day in Albany is scheduled for Tuesday, February 8, 2011 in addition to many arts advocacy events planned in local districts during the week of February 7 – 13, 2011. Today we have a new governor, who is facing serious budget deficits, and we need him and his administration to be aware of the extent of the past cuts and the need for thoughtful care as they develop the budget for 2012.
It is very urgent that the Governor of our state hear from those who enjoy and treasure the arts in New York State. Send your message to Gov. Andrew Cuomo today.
Lest we forget, cuts to the arts is not only state wide, but on a Federal level as well. In addition to contacting your local representatives, do the same with State Senators and Congressional reps.
New York City is the heartland of arts and entertainment including commercial and non-profit theatre. In fact, it is the cultural center throughout the country. However, the NY State Council on the Arts (NYSCA) is proposing the largest cuts of any State agency. It seems like a small part of the budget, .0003%, but in reality, with current economic times as they are, perhaps it represents a good portion. Without having a complete budget at hand and someone competent to explain it, I’m like most New Yorkers . . . trying to figure it all out. What is known, however, is that funding for the State Council on the Arts has been consistently reduced by nearly 30% over the past 4 years, representing the largest cut to any state agency. If we’re to continue our place as a major cultural arts center, we must have the funds necessary.
As a state, we have many attributes of which to be proud, but the arts are the soul of New York. Everyday, artists and arts groups throughout the state provide New Yorkers and the multitude of national and international visitors with pleasure, education, new ways of seeing the world, and enormous economic benefits.
Nonprofit cultural organizations in New York City are major contributors to the city’s economy. This sector is the second-largest component of the arts industry and is closely tied to the commercial sector. These organizations also share a labor pool of artists and other creative workers with the commercial sector and often develop artistic products that transfer to Broadway or is otherwise utilized commercially. A similarly complex interaction occurs between museums and commercial galleries and auction houses.
The nonprofit arts industry is labor-intensive. Half of the direct spending by all nonprofit cultural organizations goes to wages and benefits, and about 11 percent is for fees and services, including outside artistic fees. The majority of the employees are city residents, and many of the vendors and workers who supply goods and services to these institutions are located either within the city or in nearby suburban counties.
New York City is also a mecca for those who work in commercial theaters also apply their artistic talent and technical expertise in nonprofit theater and in the motion picture and television industry.
Who is ARTS NYS Coalition?They are a group of colleagues who joined together to ensure that the public has access to information on the state of the arts in New York State. Currently, the coalition includes the New York City Arts Coalition and the Arts Councils of Dutchess, Greene, Onondaga (Syracuse) and Westchester Counties, Huntington, Northern Adirondacks, Saint Lawrence and Southern Finger Lakes regions, Arts Alliances of Harlem and Buffalo, New York Folklore Society, NYS Alliance for Arts Education, and Museum Association of New York.
Thus far, the coalition has established this website, http://www.artsnys.org/, which will be a resource for data on the arts in New York State as well as information on pending legislation at the state and federal level. This website, in partnership with Americans for the Arts, will provide contact level providing information for elected representatives and will allow individuals to send their representatives customized messages.
ARTS New York State Coalition will also plan and coordinate state-wide advocacy events for 2011 which will provide the arts community with opportunities to meet with elected officials to discuss arts funding in the 2011/12 New York State Budget as well as other issues. A designated Arts Day in Albany is scheduled for Tuesday, February 8, 2011 in addition to many arts advocacy events planned in local districts during the week of February 7 – 13, 2011. Today we have a new governor, who is facing serious budget deficits, and we need him and his administration to be aware of the extent of the past cuts and the need for thoughtful care as they develop the budget for 2012.
It is very urgent that the Governor of our state hear from those who enjoy and treasure the arts in New York State. Send your message to Gov. Andrew Cuomo today.
Lest we forget, cuts to the arts is not only state wide, but on a Federal level as well. In addition to contacting your local representatives, do the same with State Senators and Congressional reps.
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