The most wide-spread issue is worker classification.  Employers who provide a worker with a certain degree of instruction, a place to perform the work outlined, reimburse a worker, or pay him or her by the hour are all indicators that the worker is an employee.  Too often employers who wish to evade employment tax or are simply unaware of this codification, inaccurately classify their workers.  Workers who are hired for a specific service, paid by the job, and has control of how the service is performed, are characteristics of an independent contractor.  The government defines an independent contractor as such if “the payer has the right to control only the result of the work and not what will be done and how it will be done,” and whose wages are subject to self-employment tax.

If audited, and investigations uncover improperly recorded fringe benefits or discover compensation provided to “disqualified persons” like charity officers, organizations could be subject to penalties and interest fees.  For more information on fringe benefits and worker classification regulations, go to http://www.irs.gov/businesses/small/article/0,,id=99921,00.html.

This survey, with participants in four key fields (children and family services, elderly housing and services, community and economic development, and arts and culture) from across the United States, found that altogether 63% of all respondents are currently paying fees to local governments.  Almost 90% of all organizations surveyed reported that they have been paying these and similar fees for the past 5 years.  Sales tax, property fees, and user fees are the most popular types of payments non-profits make.  PILOTs are mostly common among the larger organizations although they understand that these fees are voluntary.  Salamon explains, “[they] can understand reasons for payment, but it has to be voluntary.  They understood it couldn’t be a free ride.”  Still, it has been a long-standing principle that non-profit charitable organizations should be exempt from taxation by the government.

Oddly enough, the governments that are providing grants to these organizations are taking a small percentage of it back in these fees.  Grants, specifically meant to subsidize program services, are diminished to pay these fees.  When asked how to alleviate these pressures, the majority of organizations responded with increases to program fees or reducing the very services they receive grants to provide.  “The government  should take into consideration that the services provided by non-profits might have to be taken over by the government, should non-profits have much more to carry financially,” one respondent noted.

There are some ways organizations can be reimbursed but these pathways are lesser known.  And some organizations are joining up with larger and umbrella organizations to discuss and tackle this issue.  Salamon suggests a reevaluation of the taxation system, much like the current scrutiny of evasive corporations to corporate tax.  This survey provides the data for a much-needed dialogue between local governments and non-profit organizations, together to find a less self-defeating fiscal answer.

Read full article at www.thenonprofittimes.com.

Ironpaper proposed an updated website for NYSDEA that will improve their ability to provide New York’s dance educators with the services they provide. This non-profit organization promotes dance as an art form as well as an effective tool for education, through networking, professional services, and support. With many yeas of experience creating on-line tools for non-profit organizations through web design, content management strategies that define and organize constituencies, and elevating awareness through an enriched online presence, Ironpaper’s team created a strategic approach to this new website, which firmly blends their mission into a clean design.

Their new website not only reflects the look and feel of the NYSDEA but it also provides their viewers with clear and simple navigation to the organization’s information and history, schedule of events and performances, and other resources for dance educators of New York. NYSDEA’s membership program is a hub for dance educators to network. Ironpaper’s design has made becoming a member clear, easy, and available on every page of the site. Dance advocacy is another pillar of the NYSDEA’s mission. Through their events calendar page, pre-kindergarten to post-secondary institutions from can promote their events, workshops, job openings, and other dance programs on a clear platform to a wide audience.

For more information, visit www.ironpaper.com.

This year the gala, supported by the foundation’s board (which includes Diane Sawyer, Gweneth Paltrow, and Richard Fuld, formerly of Lehman Brothers), featured performances by Lady Gaga and Fergie of the band Black Eyed Peas and raised $47.4 million. Almost $12 million of what the event raised, will be awarded to a new initiative by Robbin Hood to assist veterans living in New York City poverty.

Over 22 million americans are veterans and 240,000 live in New York City, according to the Foundation. Robin Hood will use these funds to work with federal, state, and local agencies that assist veterans with the housing, job-training, and health services they need.

The event was simulcast, from the Jacob Javits Convention Center, on Facebook where viewers could vote for five charities that work with impoverished youth in the city, to receive $1 million in assistance. With over a million votes cast, Lady Gaga announced during the event, the winning organization was SCO Family of Services, who provide services for New York City’s homeless and LGBTQ youth.

For more information on the foundation and its new veterans services initiative, visit www.robinhood.org

During the recession, many jobs that were lost were filled by volunteers.  Non-profits that cultivate an active volunteer program, have been able to cope with the diminishing support for program services as well as general day-to-day operations.  The actual effect of these volunteer services is starting to be converted in to hard numbers, to give the organization a view into the performance of the whole organization: by staff and volunteers.  The Non-profit Institutions Handbook has set out to map the scale of volunteering and non-profits’ economic impact under the System of National Accounts.  This applies data from non-profit and volunteer performance to an already reliable and recognized system to more accurately track the economic impact on a global and national level.

A healthy volunteer program not only benefits the organization, and it’s ability to survive.  It also raises interest and awareness to its services, promotes the experience of hands-on solutions, and provides a personal sense of “good doing” for the community served.

Although these efforts will certainly achieve a bit of PR buzz (note this article), the offers will certainly help to connect friends and family in a time of great need.

Signs of recovery for non profits
Revenues have generally begun to recover from a terrible couple of years during the great recession. Among those surveyed in the report, 60 percent of the non profits mentioned that they are actively hiring new talent–a strong indicator of recovery. Last year, only 31 percent stated that talent recruitment was possible. Another strong sign of recovery was that only 32% experienced funding cut-backs in 2010–compared to 80% in 2009.  Also, 84% of those organizations surveyed said that their has been an increased demand for their services, since the beginning of the recession.

Below is a small sampling from the study, which show how much more likely a women (than a man) would give a donation to a cause:

• International: 55%
• Community 51%
• Religious Institutions 42%
• Health care 38%
• Youth or Family 32%
• Education 31%
• Helping people in Need 18%
• Combined purposes 14%

Source: Women’s Philanthropy Institute, The Center on Philanthropy at Indiana University, 550 W. North Street, Suite 301 Indianapolis, IN 46202, http://www.philanthropy.iupui.edu/womengive/