Today, I had the honor of meeting Michigan Governor Jennifer Granholm during a town hall meeting about the Recovery and Reinvestment Act. The meeting was extremely helpful in getting a better idea of how the funds will reach the state and local levels. A majority of the funding is being released through formula grants to already existing programs. For example, people eligible for unemployment benefits will see an increase of $25 per month as well as an extension of benefits to 79 weeks. This is not a new program, rather an increase in the already existing program.
Some individuals will benefit directly from the Recovery funds through tax credits-such as the newly increased Earned Income Credit. People over the age of 65 and/or people living with disabilities will receive a stimulus check for $250.
Non-profit organizations have a chance to apply the Recovery Act funds as well. There are many grant opportunities to date that are considered competitive grants and are open to all qualifying organizations. Some of the categories that these competitive grants will be awarded in are: Economic Development, Education and Research, Energy, Environment, Health & Human Services, Job Training, Public Safety, and Technology. Almost all of these grants will need to be applied for directly through the Federal Government. Some of the specific grants that will be awarded will be for projects such as: Early Head Start agencies to expand and increase the number of families served in existing programs, funds to supplement and expand ongoing efforts to provide shelter, food and supportive services for the nation's hungry, homeless and people in economic crisis, as well as grants to provide part-time employment opportunities for low-income seniors.
It is expected that the majority of the grant applications will be due within the next 90 days or so. In addition, there will be more arduous reporting requirements for organizations that receive the Recovery Act funds.
Grant Consulting Services can assist your organization with the grant application and reporting processes.
Thursday, April 16, 2009
Wednesday, March 04, 2009
Economic Stimulus Package
By now most have heard about the enormous $780+ Billion dollar Recovery and Reinvestment Act of 2009, that was recently signed by President Obama. The measures are so enormous that it is difficult to understand precisely what is included in the package and how it will eventually affect nonprofit organizations and the people they serve. I am compelled to do my due diligence and understand where the funds will go, so I am taking the time to read the over 400 page stimulus plan.
At times, I would rather be curled up with John Grisham's latest novel or another great read, but want to try to understand how the organizations I work with will benefit from the money that will eventually reach the state and local levels.
Don Griesmann has already done a fabulous job of researching program areas that offer funds to community organizations in his blog article titled "24 Economic Stimulus Programs for Non Profits."
The Obama administration has also put together a nice website at Recovery.gov that gives details about the program and its expenditures. You can also read the legislation in full by clicking on the following link: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1enr.pdf
At times, I would rather be curled up with John Grisham's latest novel or another great read, but want to try to understand how the organizations I work with will benefit from the money that will eventually reach the state and local levels.
Don Griesmann has already done a fabulous job of researching program areas that offer funds to community organizations in his blog article titled "24 Economic Stimulus Programs for Non Profits."
The Obama administration has also put together a nice website at Recovery.gov that gives details about the program and its expenditures. You can also read the legislation in full by clicking on the following link: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1enr.pdf
Monday, February 16, 2009
Non-Profits Anxious for Stimulus Package
Today, President Obama is expected to sign the multi-billion dollar economic stimulus package. All sectors of society are waiting-more like hanging on for dear life for the benifits of these measures to reach them. Non-profit organizations are especially strained for funds and other resources due to reduced giving trends and organizational cutbacks.
In response to the budget strain, Michigan Governor Granholm is cutting back nearly all arts and cultural grant funding. In addition the Governor is recommending increasing the non-refundable grant application fee from $300 to $1,000. This move will make it nearly impossible for smaller organizations to apply for the very small pool of arts funding still available through the State.
Smaller organizations that relied on these grant funds in the past will need to cut back their services and/or join forces with other arts organization as well as seek funding from other sources.
Non-profits will have to continue hanging on until the benefits of the stimulus package are realized at a local level. That will likely take more time.
In response to the budget strain, Michigan Governor Granholm is cutting back nearly all arts and cultural grant funding. In addition the Governor is recommending increasing the non-refundable grant application fee from $300 to $1,000. This move will make it nearly impossible for smaller organizations to apply for the very small pool of arts funding still available through the State.
Smaller organizations that relied on these grant funds in the past will need to cut back their services and/or join forces with other arts organization as well as seek funding from other sources.
Non-profits will have to continue hanging on until the benefits of the stimulus package are realized at a local level. That will likely take more time.
Thursday, January 15, 2009
What To Do in This Economy?
This is the question on most people's minds whether working with a for-profit or non-profit organization. I am hearing from non-profit organizations that are cutting back on services, marketing and donor relations. All of these actions will have an impact on the organization and the community in which it serves.
Obviously cutting back on services will greatly affect the people who receive services. Plan and communicate service cutbacks carefully. Organizations that handle this poorly can gain a bad reputation that could take years to recover from. Engage the people whom you provide services for in the planning stages. Listen to what they are saying. Ask one or several members of the community you serve to become your spokespeople in the community to help soften the tough message of cutbacks.
Marketing budgets are typically the first to be cut. This is often seen as a non-essential function in an organization. Many non-profits don't even have a "Marketing " line in their budgets. Be very cautious here when evaluating what to cut. Do not mistakenly cut out activities just because they have a low return on investment. For example: perhaps you send out a quarterly newsletter and cannot attribute one donation directly to that newsletter. The reality is that if you have a well written, eye pleasing newsletter it can be a fairly inexpensive way to maintain relationships and even help people that are unaware of your organization to become more familiar with it. Other options could be switching to an online e-newsletter to save on printing and postage costs, or submitting the newsletter twice a year instead of quarterly. Sometimes seemingly low return on investment activities have benefits that are not measured in dollar value.
Lastly, if at all possible, do not cut back on donor cultivation. This means cultivating individuals, corporations and foundations. This reaction will harm the organization over the long run for several reasons. The first being-other organizations are cutting back in donor cultivation. You could have the competitive edge if you continue or even dare to increase your relationship building activities. If you don't someone else will and your donor will get bored with your relationship and eventually take their hard earned dollars elsewhere. Also, this economic downturn will not last forever. Donors will give more and more frequently again. It will be great if you cultivate relationships through these tough times and it pays off big for you in the future!
Obviously cutting back on services will greatly affect the people who receive services. Plan and communicate service cutbacks carefully. Organizations that handle this poorly can gain a bad reputation that could take years to recover from. Engage the people whom you provide services for in the planning stages. Listen to what they are saying. Ask one or several members of the community you serve to become your spokespeople in the community to help soften the tough message of cutbacks.
Marketing budgets are typically the first to be cut. This is often seen as a non-essential function in an organization. Many non-profits don't even have a "Marketing " line in their budgets. Be very cautious here when evaluating what to cut. Do not mistakenly cut out activities just because they have a low return on investment. For example: perhaps you send out a quarterly newsletter and cannot attribute one donation directly to that newsletter. The reality is that if you have a well written, eye pleasing newsletter it can be a fairly inexpensive way to maintain relationships and even help people that are unaware of your organization to become more familiar with it. Other options could be switching to an online e-newsletter to save on printing and postage costs, or submitting the newsletter twice a year instead of quarterly. Sometimes seemingly low return on investment activities have benefits that are not measured in dollar value.
Lastly, if at all possible, do not cut back on donor cultivation. This means cultivating individuals, corporations and foundations. This reaction will harm the organization over the long run for several reasons. The first being-other organizations are cutting back in donor cultivation. You could have the competitive edge if you continue or even dare to increase your relationship building activities. If you don't someone else will and your donor will get bored with your relationship and eventually take their hard earned dollars elsewhere. Also, this economic downturn will not last forever. Donors will give more and more frequently again. It will be great if you cultivate relationships through these tough times and it pays off big for you in the future!
Thursday, November 06, 2008
Roller Coaster Ride
Tracking the economy and its effects on nonprofits lately has me feeling like I am on a roller coaster ride. I have that kind of sick to my stomach feeling just after you leave the highest point of the ride and begin the lightning speed descent downward. I am glad we are securely strapped in.
It looks like working through the current economic conditions may take a while. According to an article published today by Guidestar titled "Fasten Your Seatbelts: It's Going to Be a Bumpy Giving Season" gave results of a recent survey. The survey states that 35% of respondents noticed a decline in giving. This is the largest percentage of organizations that have seen decreases since 2003. For comparison-only 38% of respondents noted increases this year in giving-compared to 52% last year that reported increased giving to their organization.
These are uncertain times for all of us. Next time, I will offer strategies for non-profits to weather the storm.
It looks like working through the current economic conditions may take a while. According to an article published today by Guidestar titled "Fasten Your Seatbelts: It's Going to Be a Bumpy Giving Season" gave results of a recent survey. The survey states that 35% of respondents noticed a decline in giving. This is the largest percentage of organizations that have seen decreases since 2003. For comparison-only 38% of respondents noted increases this year in giving-compared to 52% last year that reported increased giving to their organization.
These are uncertain times for all of us. Next time, I will offer strategies for non-profits to weather the storm.
Wednesday, October 15, 2008
Trickle Down Theory
Today I am joining thousands of others by writing this post for Blog Action Day. The theme for 2008 is poverty. The idea behind this movement is to get as many people as possible to blog about poverty on this day in order to raise awareness and move toward viable solutions. I don't know if the organizers chose this theme in light of the current economic conditions, or if it is a very ironic coincidence.
Obviously the current economic downturn is going to affect how non-profits do business, just like it is affecting for profit businesses. I am hearing about cutbacks in services and personnel at non-profits because of the economy. As discussed in the last Take It For Granted post titled "The Economy and Reality" I cited an article from the New York Times that discussed how the assets from the foundations that were set up by Lehman Brothers, AIG and others have plummeted.
The majority of foundations in America have a large portion of their investments in the stock market. When foundation assets decline, foundations give less to organizations. When organizations receive less funding, they cut back on services.
This means that the impoverished, and I don't mean just cash poor people, but others who will loose their health care, or jobs, and the hungry will all loose out. For some people, they will be worse off than when they started receiving services from the non-profit organization that can no longer for example-help pay for childcare services. That single mom will loose her job due to lack of child care and then her car will be repossessed and she will be unable to find another job. She will be right back in to the cycle of poverty that she is so desperately trying to escape.
It looks like President Reagan's trickle down economic theory really is true. Only in this case the poor will just get poorer and the executives at the bankrupt businesses will get their millions in severance pay and bonuses.
Obviously the current economic downturn is going to affect how non-profits do business, just like it is affecting for profit businesses. I am hearing about cutbacks in services and personnel at non-profits because of the economy. As discussed in the last Take It For Granted post titled "The Economy and Reality" I cited an article from the New York Times that discussed how the assets from the foundations that were set up by Lehman Brothers, AIG and others have plummeted.
The majority of foundations in America have a large portion of their investments in the stock market. When foundation assets decline, foundations give less to organizations. When organizations receive less funding, they cut back on services.
This means that the impoverished, and I don't mean just cash poor people, but others who will loose their health care, or jobs, and the hungry will all loose out. For some people, they will be worse off than when they started receiving services from the non-profit organization that can no longer for example-help pay for childcare services. That single mom will loose her job due to lack of child care and then her car will be repossessed and she will be unable to find another job. She will be right back in to the cycle of poverty that she is so desperately trying to escape.
It looks like President Reagan's trickle down economic theory really is true. Only in this case the poor will just get poorer and the executives at the bankrupt businesses will get their millions in severance pay and bonuses.
Thursday, October 02, 2008
The Economy and Reality
It seems as if the whole world is on edge the past few weeks due to the spiraling economic conditions in the U.S. I don't believe it is the end of the world, but I do think that the current events will have a negative impact on charitable giving in the immediate and foreseeable future.
Finally, someone with teeth agrees with me. Check out this NY Times article titled "Economy Expected to Take a Toll on Charitable Giving" I believe the most interesting point in this article is the vastness of the ripples that each of the bankrupted/overtaken corporations (or their foundations) will have on non-profits that serve communities of people.
Stay tuned for more...
Finally, someone with teeth agrees with me. Check out this NY Times article titled "Economy Expected to Take a Toll on Charitable Giving" I believe the most interesting point in this article is the vastness of the ripples that each of the bankrupted/overtaken corporations (or their foundations) will have on non-profits that serve communities of people.
Stay tuned for more...
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