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Public Policy Update
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December 2011
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Quick nonprofit lobbying quiz:
Which of the following is considered lobbying by a nonprofit organization?
a. The Board Chair of a Habitat for Humanity affiliate approaches the elected County Treasurer for a donation from the county of abated property.
b. A staff member of your organization speaks during the public comment portion of a County Commission hearing, asking for a donation of a surplus vehicle from the County.
c. A nonprofit, non-membership conservation organization sends an appeal to supporters asking them to write to their Congressperson to support a proposal to create a new designated wilderness area.
d. Volunteers from the Alliance FOR Nonprofits Washington, who are staff at member organizations, participate in Nonprofit Day in Olympia, asking legislators to take unintended consequences into consideration if tax preferences are repealed.
Answer(s) will be in next month's Policy Update.
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Current Issues Affecting the Nonprofit Sector in Washington
Federal policy:
Charitable deduction law. Proposals to change the Charitable Deduction incentive are taking a break for now, with the failure of the Super Committee to reach agreement. See story below.
Nonprofit Advocacy and Lobbying. As resources from governments dwindle while nonprofit services are needed more and more, nonprofits need a stronger voice to represent social needs. Economic interests have undue influence over the political discourse. Alliance FOR Nonprofits Washington has developed one proposal designed to help level the advocacy playing field that will not hamper the ability of others to lobby--see the article below: Changing the Grassroots Lobbying Level.
State Policy:
Budget Shortfall and cuts. More cuts to the state budget are expected to be made. The State faced a deficit of $2 billion in November, when the Legislature convened for a special session. The Legislature chose to make short-term fixes to get the State through the next several months, and will grapple with the issue more energetically in the 2012 regular legislative session. See more below.
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Proposals to Change the Charitable Deduction Take a Break
The President and Congressional members have proposed changes to the Charitable Deduction Law, which is used as an incentive for contributing to 501(c)(3) organizations. The changes range from a cap on the amount allowed as a deduction to its replacement with a tax credit. Changes to the Charitable Deduction were proposed in hearings before the Joint Select Committee on Deficit Reduction, however with that committee unable to come to agreement before its legislatively-imposed deadline, talk of changes are at rest for now.
The Congressional Budget Office studied the projected impacts on federal revenue and giving to nonprofits of eleven changes (see a summary from our friends at Independent Sector).
U. S. Postal Closings Impact Nonprofits
While recent legislative threats to nonprofit discount postal rates may have waned, nonprofits could still see increased costs and fundraising hurdles caused by changes being made by the United States Postal Service (USPS). The USPS has announced plans to save billions of dollars by slowing the delivery speed of all first-class mail, removing guarantees for next-day delivery, and closing 252 of 487 mail processing centers beginning in the spring of 2012. The closing of two processing centers in Cincinnati and Dayton, for example, are expected to cost local nonprofits significantly more due to the additional costs of transporting their bulk mail to a processing center that is more than 100 miles away so that the organizations can continue to receive their discounted rates.
Across the Nation:
State Budgets Continue to Challenge Nonprofits
State resources available to fund programs provided through nonprofits are likely to remain low and may even decline over the next few years, according to a new report and survey. Forty-four states have significantly reduced general spending since the recession began, with $38.5-billion expected to be cut from social services, Medicaid, and education alone in 2011 and 2012. The findings reveal that the end of federal stimulus funding for the states and reduced tax collections are among the factors to blame for the slow recovery in state spending.
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Washington State Policy Update
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More Budget Cuts are Likely
The State faced a deficit of $2 billion in November, when the Legislature convened for a special session. The Legislature chose to make short-term fixes to get the State through the next several months, and will grapple with the issue more energetically in the 2012 regular legislative session. In this year's regular session, lawmakers sought to cut programs without eliminating them, realizing how difficult it is to re-start closed programs. Will this strategy continue to work?
Some cuts to the state budget could be avoided or partially mitigated by raising revenue. Unfortunately, lawmakers may be unable to garner the super-majority of votes needed for any significant new revenues and to restructure our highly regressive tax system. Alliance FOR Nonprofits Washington will be monitoring the session to keep up to date on impacts to the nonprofit sector, especially unintended consequences of tax preference policy.
Until now, much of the deficit problem has been met by cuts to higher education, which led to sharp increases in tuition. These increases cannot be imposed again. The coming special session will have to solve the problem in a different way. To solve a $2 billion shortfall, cuts, reform AND new revenue will be required. Read more at the Policy and Advocacy Center of the Alliance FOR Nonprofits Washington website.
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Save the Date
February 10, 2012 Friday, February 10, 2012 is the day that volunteers for Alliance FOR Nonprofits Washington will converge on Olympia to talk with state legislators and the Governor. The primary topics to address this year are unintended consequences of budgetary policy on nonprofits and reforming regulations to make it easier for nonprofits to provide services.
Nonprofit leaders who participate in Nonprofit Day In Olympia will receive a brief training on advocacy techniques and sector-wide issues. Nonprofit leaders will present in advocacy groups with 1-2 other leaders. All advocacy groups will be equipped with a presentation packet.
If you are interested in participating, Register here. for more information, contact Terry Fernsler, Policy Analyst at tfernsler@allianceofnonprofitswa.org or (206) 328-3826.
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