What is happening with the trillion dollar national debt and what does that mean for federal and state funding for your organization? How do government decisions impact your organization? How can you and your constituents engage in the public policy process and to help structure and pass good public policy that will make our communities a better place to love, work, and play? Learn about local and national efforts your organization can engage with.

1. Our Voice in Setting Good Public Policies
What’s the Relationship Between Government & Nonprofits?
11:30am – 12:45pm
Facilitator: Gregg B h Th G bl F d ti
F ilit t G Behr, The Grable Foundation
Speakers: Jon Pratt, Minnesota Council of Nonprofits / Jane Werner,
Children’s Museum of Pittsburgh / Andrew Yarrow, Independent
Sector

2. Share your thoughts!
• Text “Summit” to 57682 with your
Summit
feedback and thoughts on today’s
event!
• Share your thoughts on Twitter
by adding #GPNPSummit to your
tweets!

3. Obama’s 2012 Budget Proposal: How $3.7 Trillion is
Spent
S t
http://www.nytimes.com/packages/html/newsgraphics/2011/
0119-budget/index.html

4. The Federal Fiscal Outlook and
the N
th Nonprofit Sector
fit S t
2011 Nonprofit Summit
Pittsburgh, May 12, 2011
Andrew L Yarrow
L.

5. At the end of April 2011

7. Why is Debt Rising?
• Revenues declining, spending increasing
• In downturns, revenues down, spending up
• Rapidly rising health care costs
y g
• Aging population
• Political polarization

8. Federal Revenues and
Expenditures (Obama’s FY
(Obama s
2011Budget Proposal)

10. Rising Debt is Dangerous
• Reduces savings
• Crowds out private and p
p public investments
• Reduces growth, income, jobs
• Makes us more dependent on foreign investors
• C ld cause i
Could investors to “
“run f the exits”
for h i ”
• Reduces “fiscal democracy”—fewer choices for spending
y p g

11. The Deficit Reduction Debate, 2011

12. Proposed Elements of a Budget
Compromise
C i
Spending Revenues
Limit spending Raise some tax
rates
Reform entitlements Reduce tax
expenditures
Budget rules New taxes (e g
(e.g.,
consumption)

13. Nonprofit Sector Affected by
Budget P li
B d Policy
• Government grants, contracts and
grants contracts,
fees for service
• Charitable deduction
• Tax exemption

14. Why the Nonprofit Sector is
Important to a Strong Economy
I S E
• 1.6 million nonprofits employ 13.5 million Americans,
10% of work force
• Pay $650 billion in wages and salaries in the U.S.
• Annual charitable giving is $303.8 billion
g g
• Generate $1.4 trillion in revenues and spend $1.3 trillion
• Fo ndations contribute over $42.9 billion ann all
Foundations contrib te o er $42 9 annually
• Seven out of 10 households give to charitable causes

15. The Nonprofit Sector at Risk
• Federal spending cuts
• Tax reform
• Challenges to
g
the exemption

16. Spending Cuts and the
Nonprofit S
N fi Sector
• F d l spending cuts reduce nonprofits’
Federal di t d fit ’
revenues
• States’ fiscal crises reduce spending, raise
calls for taxes, PILOTs on nonprofits
ll f t PILOT fit
• 32 percent of nonprofit sector’s $1.4 trillion
in revenues come from government

17. Proposals to Reduce Tax
Expenditures
E di
• Tax reform proposals focus
on cutting tax expenditures
• President Obama: Cap charitable
and other deductions at 28 percent
• President’s proposed cap could cost charities up
President s
to $7 billion a year in giving

18. Challenges to the Exemption
• Calls to quantify the value of the
nonprofit tax exemption
p p
•E
Examining which charities d
i i hi h h iti deserve
exemption
• Tiers of charitableness?
• Nonprofits’ commercial revenues
• S i l enterprises bl i li
Social t i blurring lines with nonprofits
ith fit

19. Tax Policy and Charitable Giving
• Americans give for many reasons
• Tax policy affects size, number, and timing
p y g
of charitable donations
• With no d d ti f charitable gifts,
deduction for h it bl ift
giving would drop by 25 to 36 percent

20. Incentivizing Generosity
• Unlike other tax deductions that subsidize
personal expenditures, the charitable
l dit th h it bl
deduction provides an incentive for people
to give money to benefit others
others.
• The charitable deduction is a way to enrich
communities, not individual taxpayers.

21. • The power of the tax incentive
can be seen in the timing of
charitable gifts.
• Charitable gifts spike at the
end of the year.
• In fact, more than 20 percent
of annual online giving occurs
on December 30 and 31 .[1]
[1] “Online Giving Study: Donations Driven by Donor Experience Year-End Gifts and Large-Scale Disasters.”
Online Experience, Disasters
Network for Good and True Sense Marketing, Dec. 2010, reported in Philanthropy News Digest, Dec. 15,
2010.

22. • Preserve and expand policies that help
Americans give back to their communities
• Ensure that all Americans’ choices to
participate in and support nonprofits are
treated
t t d equitably
it bl
• Defend government spending for p
g p g public needs
• More clearly define charity and the bases for tax exemption

23. To help protect y our priv acy , PowerPoint prev ented this external picture from being automatically downloaded. To download and display this picture, click Options in the Message Bar, and then click Enable external content.
These Challenges Go Beyond
Numbers and Dollars It’s About
Dollars— It s

44. Three Pittsburgh Stories of
Advocacy
Ad
• Children’s Museum of
Pittsburgh
• Pittsburgh is Art
• Pittsburgh
Association for the
Education of Young
Children.

45. Idea
Id

46. Advocate/Champion

47. Visit your legislators in Harrisburg and in the community.

48. So e eet
Sore feet

49. Patience
P ti
+
+
=

50. Yippee!

51. Idea + People + Sore Feet + Patience =
AN
New Child ’ M
Children’s Museum!
!

52. Impetus
p

53. More impetus- research
p

54. Creativity

55. Impetus + Research + Creativity + Sore Feet =
Advocates for the arts.

56. Research- Message
g
• Children are important
• Parents are important
• Teachers are important
• Quality is important

57. Methods of Delivering the Message
g g
• E-mail
E mail
• Speed dating

58. More delivering the message
g g
• Big Party
• And doing it
again (sore feet)

59. Message + Delivery + Consistency + Sore Feet =
Good policy for kids

60. Greater Pittsburgh Nonprofit Partnership
• Mission is to “strengthen our region by improving the viability, impact
and effectiveness of the sector”.
• Vision: Our nonprofit sector gives citizens greater voice, inspires
p
public p
participation and p
p promotes a vibrant community.y
• 300 Organizations from the nonprofit sector.

62. Idea + data + message + advocates + sore feet =
An enlightened government working on good policy

63. Thank you.
jwerner@pittsburghkids.org
http://www.pittsburghartscouncil.org/
http://www.pghaeyc.org/
http://www pghaeyc org/
http://www.forbesfunds.org/gpnp/

64. Thank you from the Greater
Pittsburgh Nonprofit
Partnership!
a es p

65. Workshop Evaluation
Text “Govt” to 57682 with your answers to the following questions:
Govt
• Please rate the overall value of this workshop
E – Excellent G – Good P – Poor F – Fair
• Did you learn anything that you will apply at your own organization?
Y – Yes N - No
• Please text other comments and feedback.
Submit by hitting “send!” You will receive an auto-reply from the GPNP.
Sample text: “Govt E Y I understand we need to advocate and will add
this to our upcoming staff meeting agenda.”