Let’s get to some facts on nonprofits as you consider your year end donating.

The number of nonprofit organizations reported by the National Center for Charitable Statistics as of October 2009 was 1,569,572 that reported to the IRS.  Since 2006 that is an increase of 91,378 nonprofits. This does not include the 175,000 religious congregations who choose not to report as allowed by law.

Largely overlooked by many in the business arena, the non-profit world is a critical sector of our economy.  The employment of hundred’s of thousands individuals provides for the economic wealth of many communities and the creation of many for-profit companies.  As a reader and possible donor I remind you that most colleges, universities, and hospitals are nonprofits.  From a pure economic view, the education and health care field of nonprofits provide for the greatest measurable opportunity to see an outcome which resulted from the donation.

In 2007, public charities reported over $1.4 trillion in total revenues, nearly $1.3 trillion in total expenses and nearly $2.6 trillion in total assets in 2007. (Source: The Urban Institute, National Center for Charitable Statistics, Core Files 2007)

Volunteering and charitable giving even with a huge influx of funding from the government, non-profits are still prone to struggle in down economic times, since the other part of their funding, donations, often take a turn for the worse.  In addition, while there are many companies created in the for-profit arena to provide help to organizations in becoming more efficient in this business climate, few focus on the non-profit world.   

Even for those who realize and understand the obstacles of starting a small business, few understand the competitive nature of the non-profit industry.  There is a strong movement among social service advocates and the people who utilize social services to have more choice in selecting from whom services are provided and what different types of services are offered.  This has spurred growth in the industry, not just in the number of new nonprofits established each year, but also the amount of money allocated by the government.  This new influx of money has only added to the pre-existing tension between large and small non-profits. The new, smaller non-profits are able to change the way they operate quickly to meeting the changing client base while the larger non-profits are able to expand into new areas and service lines.

While efficiency of the donation may be expected to be able to be accomplished on a larger scale many nonprofits are staying to their mission and finding qualified people willing to work for nonprofits at a wage they can afford. 

 pic by Robin hutton

Congress is wrestling with Health Care Choices.

Government is a nonprofit that can do zero base budgeting. 

There is nothing wrong with expanding medicare and Medicaid and calling it the public option.  Whether it is an individual receiving a subsidy towards their premium or a small business paying the premium for an individual it is the simplest way to get health care reform going. 

Call it a tax, call it it fringe benefits, or call it a requirement of life.  It is still a necessary cost for everyone.  Cost containment will be a lot easier with one system of data to track services and costs. 

Community Health Centers should be considered the other component to build upon to bring access to all affordable health care. 

 pic by Robin Hutton

Charter schools are providing choices for families among District schools.

Charter schools are increasing the opportunities for more to succeed.

Charter schools are more accountable to meeting standards than District schools.

Charter schools are bringing the community resources to bear to educate students.

There are many opportunities for nonprofits can join the charter school effort to educate students.  There are many students that may be failing.  The causes are many but with the right supports these students can reach their full potential and ultimately attend college.

pic by John Schwegal 

The evolution of the human greeting some cultures may have it right for protecting themselves from infection.  Whether on purpose or by default those cultures that used the bow to greet protected themselves from catching illnesses.

The Obama administration fist bump may have been a good attempt to change our habit.

 One habit that has changed is sneezing.  Instead of using your hand it is being promoted that it is better to use your sleeve, a major shift to prevent the passing of germs. 

A public health message on ways to greet and minimize the passing of germs can only help to decrease illness, lower the death toll, increase health, increase productivity and lower costs across many levels of the economy.

For all of us who feel awkward to not hand shake or hug the public health message on how to greet would go a long way to change behavior.  Nonprofits can promote a healthier life style among its employees and those they serve.

Photo by:  Cobalt123

More than 40 members of Congress have signed a letter asking House officials to make sure the final health care bill offers relief to small charities that provide health-care to their employees.  The letter talks about the importance of the the nonprofit workforce.  The President of the National Council of Nonprofits said in a statement that every dollar employers pay in higher premiums is a dollar taken away that could have provided the employees with various everyday needs, especially in this tough economy.  He also said that he hopes the White House will join in with the growing numbers of House and Senate members who are realizing how important nonprofits are.

To read the entire article, please follow then hyperlink to The Chronicle of Philanthropy web-page.

If you want to know what went wrong with our health care system and the best way to fix it, all you have to do is look back a few decades to a time when health care was a community concern, considered as essential as any public utility. It should be again, not just because it makes sense but also because it’s the most profitable way to go.

The irony in the current debate over a “public option” health plan is that we once had a form of socialized medicine. Blue Cross, the most recognizable name, began in 1929 as a tax-exempt insurer covering a community of teachers in Dallas. Blue Shield was started as a tax-exempt insurer to cover employees of mining and lumber companies in the Pacific Northwest, with a group of local doctors providing care through a service bureau.

To continue reading the rest of this article, please follow the hyperlink to the Forbes.com page.

pic by Rachael 2008

Nonprofits are creating solutions for tomorrow every day.  As congress debates whether to have State run health plans the key is making health care mandatory.  The utilization of the Community Health Centers for the uninsured with a low cost mandatory minimum plan just might do the trick.   Let’s introduce the sliding fee schedule and stop excluding anyone.  Just because someone is excluded from paying health insurance does not mean that they are cured from getting sick.  The sliding fee is the best way to approach the mandatory payment process and its stops the folks from having insurance temporary for procedures then dropping it.

State governments should work with their community health centers and other nonprofit health care providers to create affordable health care network.  The health care should be based on a set premium for each person they enroll.   Let the network decide how best to work the system.

State governments should not be prevented from setting up health care cooperatives.  It should not be a question about whether the US is going to have for its citizens affordable health care.  It should not be about what percentage of US citizens are exempt.  Exemptions create loop holes and a more costly system to manage.  There is only one successful outcome.

100% of US citizens receiving affordable health care.

pic by www.iQoncept.com

The Chronicle of Philanthropy conducted a survey of 325 large charities and the result was a substantial number making salaries placing them in the top 1% earners. For a peek at the list check out the NPR article through this link. 

I am in agreement with many in Congress that these salaries are not in line with the intent of the creation of the 501 C 3 tax code for charitable organizations.  The top executive in the United States is the President.  This Chief Executive makes no where near these salaries and oversees the largest economy in the world.  A nonprofit’s mission should be first and foremost where dollars are spent.  The compensation of executives at these organizations is clearly out of line with the organizations mission. It says to the community that the organizations have so much money that they can afford to pay large corporate salaries for an outcome that is charitable.  The executive receiving the compensation certainly is not being charitable to the organization by accepting a salary placing them in the top 1% income bracket.

Any nonprofit who says that they must pay the high salary exceeding that of the the Office of the President of the United States to recruit the most qualified person has placed more importance on a person then on the mission of the organization. Placing importance on a single person instead of the institution risks the mission of the organization.

I support Congress passing legislation to limit compensation on executives.   However, lets make it simple.  No salary for a nonprofit can exceed the salary of the President of the United States. If a nonprofit is to exceed said salary they must convert to a for-profit.   Plain and simple.

I believe Socrates would have questioned the merit of the decision by which such a decision had been made by a Board of any nonprofits wishing to pay these extremely high salaries.

For me these organizations represent the beginning of a list of nonprofits for donors not to donate to.

pic by ddonar

The Pew Center on the States reported 7.3 million adults are in the US correction system, which amounts to 1 for every 31 adults.  $50 billion annually and growing.  It is second to Medicaid of state expenditures. 

• If you live in Georgia it is 1 for every 13 adults.
• If you live in New Hampshire it is 1 for every 88 adults.

The racial gap is nothing to be proud of.

• 1 of every 11 black adults
• 1 of every 27 Hispanic adults
• 1 of every 45 white adults

Costs on average are $29,000 for sending a person to prison.

Costs on average for community probation and monitoring is up to $2,750.

The Pew Center report provides an outline on how to deal with the growing problem.  I would highlight their findings on evidence base practices and performance measures as the correct means to decide what programs to fund. 

It is my opinion that a criminal system that is designed to ignore individual situations and the severity of the crime creates a failing system which can never achieve its outcome goals.  

Those programs that should be increased are those who show an impact in reducing recidivism. 

Pew Center on States Link:

http://www.pewcenteronthestates.org/report_detail.aspx?id=47134

Nonprofits should use the report to better understand the direction of evidence base practices and performance base contracting. 

pic by tsudohnimh

Congress is famous for complaining and playing political games with important decisions. In the meantime, businesses spend millions to support foreign countries due to US reliance on foreign oil.

Nonprofits do not need to wait for Congress to begin to lower its energy costs.  Nonprofits should look to foundations and individuals to support the one time cost of installing alternative systems and end up saving in their operating costs.

In the states of California and Massachusetts there is the option to go solar and not have to buy the system.  Thereby, lowering the costs to a few thousand to have installed.

Another option for nonprofits is to think more about establishing cooperatives to lower their energy costs.  Bulk purchasing and implementing a plan energy conservation program as a group will save tens of thousands of dollars when done in conjunction with others.

In a sampling of providers in any particular zip code there seems to be a sufficient number of organizations in any geographic area to make this work.