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Advocating for
the Nonprofit
Sector
Presented by:
Mary Beth Harrington
Passionate Nonprofit Expert
501c³ – Taking Nonprofit to
the Third Power
June 17, 2013
Tweet This!
Tweet comments about today’s workshop to
#mbharrington501
Chat with our presenter anytime @
mbharrington501
6.18.13 KTB2013 Advocacy ©501 c³ - Taking2
BEYOND
THE CAUSE:
The Art and
Science
of Advocacy
http
://www.independentsector.org/beyond_the_cause
 Strengths of community of organizations:
 Favorable public opinion;
 A network of hundreds of organizations already
engaged in this work, many of whom know and
communicate with each other regularly;
 Some relationships with key public officials
responsible for oversight and governance of the
sector;
 Growing field of credible research directly
related to key policy issues.
Advocacy & Policy
Issues
46.18.13 KTB2013 Advocacy ©501 c³ - Taking
 Public policy successes prove that it is possible
for this network to pool assets and achieve
important outcomes.
 Collaborative model not common practice;
most believe more can be done to increase
effectiveness of sector-wide advocacy around
important national public policy issues affecting
the charitable sector
Advocacy & Policy
Issues
56.18.13 KTB2013 Advocacy ©501 c³ - Taking
Collaborative Model means…
 Developing shared, long-term goals;
 Increasing the number and depth of relationships
with a broader range of key public officials;
 Improving coordination among organizations;
 Increasing the visibility and clout of the sector;
particularly with government officials will increase
the sector’s influence.
Advocacy & Policy
Issues
66.18.13 KTB2013 Advocacy ©501 c³ - Taking
Advocates call for strong leadership to
organize the sector around a common
agenda to create a more favorable
regulatory and legislative environment to
facilitate the work of the charitable sector.
Summary: We are stronger when we
advocate as the nonprofit sector rather
than as individual organizations.
Advocacy & Policy
Issues
76.18.13 KTB2013 Advocacy ©501 c³ - Taking
Challenges include:
 Limited resources available to develop a shared,
long-term vision and to sustain the level of
ongoing building activities found among the
most effective advocates.
 Requires shift in the status quo–a reimagined
structure for convening and harnessing the assets
of sector organizations with stronger incentives
for collaboration and an operational model to
sustain level of activity required to achieve
consistent success over time.
Advocacy & Policy
Issues
86.18.13 KTB2013 Advocacy ©501 c³ - Taking
Congress poised to take a closer look at the
charitable sector through tax reform in 2013
and beyond, it is propitious for the nonprofit
and philanthropic sector to align its efforts by
creating a joint strategy that will enable
organizations to better serve the growing
needs of American communities.
Advocacy & Policy
Issues
96.18.13 KTB2013 Advocacy ©501 c³ - Taking
Understanding
the Nonprofit
Sector
 Pilgrims and Philanthropy
 1950’s to mid 1980’s
 nonprofits benefitted from US excess
 1980’s
 shift in donations, corporate spending,
government programs
 ironically, communities became more
dependent on nonprofits
 2000’s
 while need for nonprofits increase, perceivable
value of nonprofits decrease
 nonprofits increasing asked to do more with less
Brief History of
Nonprofit Sector
116.18.13 KTB2013 Advocacy ©501 c³ - Taking
126.18.13 KTB2013 Advocacy ©501 c³ - Taking
WARNING!
Reality check
approaching!
6.18.13
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
14
• A nonprofit is a corporation
• A nonprofit makes money
• A nonprofit has employees
• There are just a few nonprofits in Texas
• The purpose of a nonprofit is to “do good”
• “Stakeholder” is another term for vampire
slayer
• Nonprofits do not impact the economy
What is a Nonprofit?
156.18.13 KTB2013 Advocacy ©501 c³ - Taking
What is a
Nonprofit?
 
“Nonprofit” is an IRS Designation
•Chapter 22 of Texas Business Organization
Code (aka Texas Nonprofit Corporation Law
(NCL)
•Internal Revenue Code 501 (c)
• 28 types of non-profit organizations
exempt from some federal income taxes
6.18.13 KTB2013 Advocacy ©501 c³ - Taking16
Is It A Nonprofit?
University
Hospital
United Way
Workforce Agency
Hospice
Homeless Shelter
Animal Shelter
School
Nonprofit Quiz
 
6.18.13
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
17
Texas has the third largest number of
reporting charitable nonprofits, exceeded
only by California and New York.
All Nonprofit Organizations
- 70,383 (1998) 100,734 (2008) 43.1% (change)
501(c)(3) Public Charities 3
- 37,715 (1998) 66,104 (2008) 75.3% (change)
501(c)(3) Private Foundations
- 4,007 (1998) 7,103 (2008) 77.3% (change)
http://www.tano.org/attachments/wysiwyg/1/Number_of_NPOS_in_TX.pdf
Texas Nonprofit
Organizations
6.18.13
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
18
True or False – Nonprofits employ people but
they really do not make much money,
receive benefits, and usually work part-time.
Nonprofit Quiz
 
6.18.13
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
19
 U.S. charities employed over 9.4 million paid
employees in 2004, or 7.2 percent of the
American employment force, and spent over
$321.6 billion in wages
 + engaged 4.7 million full-time equivalent
volunteers
 = total workforce of 14.1 million
= 10.5% of total US workforce
Employment &
Payroll
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
6.18.1320
 Texas nonprofit sector is a major economic
force employing more than six times as many
workers as the state’s oil and gas extraction
industry and more than twice as many workers
as the state’s real estate and leasing industry.
 384,545 nonprofit employees in Texas earned
over $12.5 billion in wages in 2004, exceeding
total payroll for Texas’ entire state government.
Texas Nonprofit
Employment &
Payroll
21 6.18.13
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
Overall weekly wages of nonprofit employees
are lower than for-profit workers. But, in
industries in which nonprofits and for-profits
are both significantly involved, nonprofit
average weekly wages generally outpace
for-profit wages.
Lester M. Salamon and Stephanie Lessans Geller (Baltimore: Johns Hopkins Center for Civil Society Studies, May
2007). http://www.tano.org/texas-nonprofit-sector/
Texas Nonprofit
Employment &
Payroll
22 6.18.13 KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
True or False – Nonprofits do not make money.
True or False – Nonprofits do not pay any
taxes.
Nonprofit Quiz
 
23 6.18.13
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
 Texas charitable nonprofits generate over $50
billion in total revenue and hold total assets of
$96 billion.
 Nonprofit sector sizable employer, adding both
paid jobs and volunteer workers at a much
higher rate than rest of the economy.
 Nonprofit organizations not only contribute to
the social and political life of state and nation,
but to its economic life as well.
Nonprofit Sector =
Economic Force
24 6.18.13
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
True or False: Nonprofits cannot lobby or
educate others on their needs.
Nonprofit Quiz
 
25 6.18.13 KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
Spreading the
Word
Advocacy and Six
Degrees
• Six Degrees of Kevin Bacon -
Assumes any individual
involved in the Hollywood,
California film industry can
be linked by film roles to
Kevin Bacon in six steps.
• Posits that any two people
on Earth are, on average,
about six acquaintance links
apart.
• In 2007, Bacon started a
charitable organization
named SixDegrees.org
27 6.18.13 KTB2013 Advocacy ©501 c³ - Taking
Local
“Friendraising”
Advocacy
 Introduce “friends” to your organization
 Follow meeting with phone call or note to
“Friend”.
 With permission, “Friend” is added to
organization communications.
 “Friend” is invited for tour of organization to see
programs in action.
 Follows tour with phone call or note to “Friend”.
 “Friend” is invited to call to action event.
6.18.13 KTB2013 Advocacy ©501 c³ - Taking28
Plenty of Pie to
Go Around!
 Incorporate stats into corporate solicitations
 Show by contributing to your nonprofit, you
contribute to the communities economic
growth
 Paradigm shift - For profits expected to make a
profit whereas nonprofits expect to work for .90
on the dollar
 Advocate essential role not only your
organization but all nonprofits play in the
community
 By advocating for the sector as a whole you
increase corporate, foundation, and individual
donations!
Get Your Slice!
6.18.13 KTB2013 Advocacy ©501 c³ - Taking30
 Nonprofits not included in health reform
 Included in HIRE act… result of fight to include
NPs in small employer health care credits
 Prepare now for 2013 TX Legislative session
 Legislators watching other states
 states cutting funds
 delays /withholding in paying
 government contract fees
 new fees & taxes
Missing Piece
31 6.18.13
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
 Minnesota - Nonprofit Sector and Community
Solutions Act (HR 5533), a bill that will transform
the way that the federal government thinks
about and deals with the charitable nonprofit
community in the United States.
 Toronto – REAL return on investment
for donors!
 Britain – Nonprofit advocate cabinet level
position
More Pie for
Everyone
32 6.18.13
KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
Get Prepared!
Change your perspective to advocate for
nonprofit sector as a whole
Stay Informed!
Collaborate!
Get Engaged!
The Survival of the nonprofit sector is in the
balance
Small Business
Coke and Pepsi
Start Rolling!
33 6.18.13 KTB2013 Advocacy ©501 c³ - Taking
Nonprofits to the Third Power
Resources for Advocacy
Information
 The Powerful, Free, and Easy 501(h) Election:
Benefits Galore!
http://www.councilofnonprofits.org/nonprofit-advocacy/501h-election
 Lobbying Rules for 501(c)(3)s
http://www.independentsector.org/lobbying_rules
 Beyond the Cause: The Art and Science of
Advocacy http://www.independentsector.org/beyond_the_cause
 Frontera Strategy - Jason Sabo http://
fronterastrategy.com/About_Us.html
34 6.18.13 KTB2013 Advocacy ©501 c³ - Taking
Nonprofit
Favorites
 GrantStation – www.grantstation.com
 Chronicle of Philanthropy - www.philanthropy.com
 Nonprofit Quarterly - www.nonprofitquarterly.org
 Blue Avocado – www.blueavocado.org
 BoardSource - www.boardsource.org
 Idealware – www.idealware.org
 TechSoup – www.techsoup.org
 Nonprofit Risk Management Center – www.nonprofitrisk.org
 Independent Sector – www.independentsector.org
 C-Forward – www.cforward.org
 Texas C-Bar – www.texascbar.org
35 6.18.13 KTB2013 Advocacy ©501 c³ - Taking
Free Nonprofit
Advice &
Counsel!
Mary Beth Harrington
mbharrington64@hotmail.com
972-839-9960
www.mbharrington501c³com

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Incarnate word advocating for the nonprofit sector june 2013

  • 1. Advocating for the Nonprofit Sector Presented by: Mary Beth Harrington Passionate Nonprofit Expert 501c³ – Taking Nonprofit to the Third Power June 17, 2013
  • 2. Tweet This! Tweet comments about today’s workshop to #mbharrington501 Chat with our presenter anytime @ mbharrington501 6.18.13 KTB2013 Advocacy ©501 c³ - Taking2
  • 3. BEYOND THE CAUSE: The Art and Science of Advocacy http ://www.independentsector.org/beyond_the_cause
  • 4.  Strengths of community of organizations:  Favorable public opinion;  A network of hundreds of organizations already engaged in this work, many of whom know and communicate with each other regularly;  Some relationships with key public officials responsible for oversight and governance of the sector;  Growing field of credible research directly related to key policy issues. Advocacy & Policy Issues 46.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 5.  Public policy successes prove that it is possible for this network to pool assets and achieve important outcomes.  Collaborative model not common practice; most believe more can be done to increase effectiveness of sector-wide advocacy around important national public policy issues affecting the charitable sector Advocacy & Policy Issues 56.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 6. Collaborative Model means…  Developing shared, long-term goals;  Increasing the number and depth of relationships with a broader range of key public officials;  Improving coordination among organizations;  Increasing the visibility and clout of the sector; particularly with government officials will increase the sector’s influence. Advocacy & Policy Issues 66.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 7. Advocates call for strong leadership to organize the sector around a common agenda to create a more favorable regulatory and legislative environment to facilitate the work of the charitable sector. Summary: We are stronger when we advocate as the nonprofit sector rather than as individual organizations. Advocacy & Policy Issues 76.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 8. Challenges include:  Limited resources available to develop a shared, long-term vision and to sustain the level of ongoing building activities found among the most effective advocates.  Requires shift in the status quo–a reimagined structure for convening and harnessing the assets of sector organizations with stronger incentives for collaboration and an operational model to sustain level of activity required to achieve consistent success over time. Advocacy & Policy Issues 86.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 9. Congress poised to take a closer look at the charitable sector through tax reform in 2013 and beyond, it is propitious for the nonprofit and philanthropic sector to align its efforts by creating a joint strategy that will enable organizations to better serve the growing needs of American communities. Advocacy & Policy Issues 96.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 11.  Pilgrims and Philanthropy  1950’s to mid 1980’s  nonprofits benefitted from US excess  1980’s  shift in donations, corporate spending, government programs  ironically, communities became more dependent on nonprofits  2000’s  while need for nonprofits increase, perceivable value of nonprofits decrease  nonprofits increasing asked to do more with less Brief History of Nonprofit Sector 116.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 12. 126.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 14. 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power 14
  • 15. • A nonprofit is a corporation • A nonprofit makes money • A nonprofit has employees • There are just a few nonprofits in Texas • The purpose of a nonprofit is to “do good” • “Stakeholder” is another term for vampire slayer • Nonprofits do not impact the economy What is a Nonprofit? 156.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 16. What is a Nonprofit?   “Nonprofit” is an IRS Designation •Chapter 22 of Texas Business Organization Code (aka Texas Nonprofit Corporation Law (NCL) •Internal Revenue Code 501 (c) • 28 types of non-profit organizations exempt from some federal income taxes 6.18.13 KTB2013 Advocacy ©501 c³ - Taking16
  • 17. Is It A Nonprofit? University Hospital United Way Workforce Agency Hospice Homeless Shelter Animal Shelter School Nonprofit Quiz   6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power 17
  • 18. Texas has the third largest number of reporting charitable nonprofits, exceeded only by California and New York. All Nonprofit Organizations - 70,383 (1998) 100,734 (2008) 43.1% (change) 501(c)(3) Public Charities 3 - 37,715 (1998) 66,104 (2008) 75.3% (change) 501(c)(3) Private Foundations - 4,007 (1998) 7,103 (2008) 77.3% (change) http://www.tano.org/attachments/wysiwyg/1/Number_of_NPOS_in_TX.pdf Texas Nonprofit Organizations 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power 18
  • 19. True or False – Nonprofits employ people but they really do not make much money, receive benefits, and usually work part-time. Nonprofit Quiz   6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power 19
  • 20.  U.S. charities employed over 9.4 million paid employees in 2004, or 7.2 percent of the American employment force, and spent over $321.6 billion in wages  + engaged 4.7 million full-time equivalent volunteers  = total workforce of 14.1 million = 10.5% of total US workforce Employment & Payroll KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power 6.18.1320
  • 21.  Texas nonprofit sector is a major economic force employing more than six times as many workers as the state’s oil and gas extraction industry and more than twice as many workers as the state’s real estate and leasing industry.  384,545 nonprofit employees in Texas earned over $12.5 billion in wages in 2004, exceeding total payroll for Texas’ entire state government. Texas Nonprofit Employment & Payroll 21 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power
  • 22. Overall weekly wages of nonprofit employees are lower than for-profit workers. But, in industries in which nonprofits and for-profits are both significantly involved, nonprofit average weekly wages generally outpace for-profit wages. Lester M. Salamon and Stephanie Lessans Geller (Baltimore: Johns Hopkins Center for Civil Society Studies, May 2007). http://www.tano.org/texas-nonprofit-sector/ Texas Nonprofit Employment & Payroll 22 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power
  • 23. True or False – Nonprofits do not make money. True or False – Nonprofits do not pay any taxes. Nonprofit Quiz   23 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power
  • 24.  Texas charitable nonprofits generate over $50 billion in total revenue and hold total assets of $96 billion.  Nonprofit sector sizable employer, adding both paid jobs and volunteer workers at a much higher rate than rest of the economy.  Nonprofit organizations not only contribute to the social and political life of state and nation, but to its economic life as well. Nonprofit Sector = Economic Force 24 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power
  • 25. True or False: Nonprofits cannot lobby or educate others on their needs. Nonprofit Quiz   25 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power
  • 27. Advocacy and Six Degrees • Six Degrees of Kevin Bacon - Assumes any individual involved in the Hollywood, California film industry can be linked by film roles to Kevin Bacon in six steps. • Posits that any two people on Earth are, on average, about six acquaintance links apart. • In 2007, Bacon started a charitable organization named SixDegrees.org 27 6.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 28. Local “Friendraising” Advocacy  Introduce “friends” to your organization  Follow meeting with phone call or note to “Friend”.  With permission, “Friend” is added to organization communications.  “Friend” is invited for tour of organization to see programs in action.  Follows tour with phone call or note to “Friend”.  “Friend” is invited to call to action event. 6.18.13 KTB2013 Advocacy ©501 c³ - Taking28
  • 29. Plenty of Pie to Go Around!
  • 30.  Incorporate stats into corporate solicitations  Show by contributing to your nonprofit, you contribute to the communities economic growth  Paradigm shift - For profits expected to make a profit whereas nonprofits expect to work for .90 on the dollar  Advocate essential role not only your organization but all nonprofits play in the community  By advocating for the sector as a whole you increase corporate, foundation, and individual donations! Get Your Slice! 6.18.13 KTB2013 Advocacy ©501 c³ - Taking30
  • 31.  Nonprofits not included in health reform  Included in HIRE act… result of fight to include NPs in small employer health care credits  Prepare now for 2013 TX Legislative session  Legislators watching other states  states cutting funds  delays /withholding in paying  government contract fees  new fees & taxes Missing Piece 31 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power
  • 32.  Minnesota - Nonprofit Sector and Community Solutions Act (HR 5533), a bill that will transform the way that the federal government thinks about and deals with the charitable nonprofit community in the United States.  Toronto – REAL return on investment for donors!  Britain – Nonprofit advocate cabinet level position More Pie for Everyone 32 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power
  • 33. Get Prepared! Change your perspective to advocate for nonprofit sector as a whole Stay Informed! Collaborate! Get Engaged! The Survival of the nonprofit sector is in the balance Small Business Coke and Pepsi Start Rolling! 33 6.18.13 KTB2013 Advocacy ©501 c³ - Taking Nonprofits to the Third Power
  • 34. Resources for Advocacy Information  The Powerful, Free, and Easy 501(h) Election: Benefits Galore! http://www.councilofnonprofits.org/nonprofit-advocacy/501h-election  Lobbying Rules for 501(c)(3)s http://www.independentsector.org/lobbying_rules  Beyond the Cause: The Art and Science of Advocacy http://www.independentsector.org/beyond_the_cause  Frontera Strategy - Jason Sabo http:// fronterastrategy.com/About_Us.html 34 6.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 35. Nonprofit Favorites  GrantStation – www.grantstation.com  Chronicle of Philanthropy - www.philanthropy.com  Nonprofit Quarterly - www.nonprofitquarterly.org  Blue Avocado – www.blueavocado.org  BoardSource - www.boardsource.org  Idealware – www.idealware.org  TechSoup – www.techsoup.org  Nonprofit Risk Management Center – www.nonprofitrisk.org  Independent Sector – www.independentsector.org  C-Forward – www.cforward.org  Texas C-Bar – www.texascbar.org 35 6.18.13 KTB2013 Advocacy ©501 c³ - Taking
  • 36. Free Nonprofit Advice & Counsel! Mary Beth Harrington mbharrington64@hotmail.com 972-839-9960 www.mbharrington501c³com

Editor's Notes

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