News from The Post-Standard

Company's unusual plan: a non-profit to turn vacant downtown Syracuse building into college dorm

by: Rick Moriarty

Syracuse, NY -- A new company wants to bring college students to live downtown Syracuse by turning a vacant office building near Armory Square into a dormitory for 146 students.

The project proposed by Syracuse Creekwalk Commons Inc. is unusual because the newly formed company is not affiliated with any college but hopes to redevelop the building as a nonprofit corporation exempt from income and property taxes.

Construction contractor James Breuer, a director of the company and one of the building's owners, said most of its tenants likely would be Syracuse University students. However, he said full-time students from any of the area's colleges and universities could live there.

The company has proposed transforming the E.M. O'Donnell Building at 324 W. Water St. into 69 apartments, along with 8,000 square feet of retail space. The building is owned by EMO Properties LLC, of which Breuer is a partner, and has been vacant for three years.

Syracuse Creekwalk Commons has applied to the Internal Revenue Service for status as a nonprofit corporation that would support higher education by providing a residence hall for students.

Breuer said nonprofit status would allow the company to borrow money at the lower interest rates available through tax-exempt bonds.

He said Creekwalk Commons would be exempt from property taxes as a right because it would be owned by a nonprofit corporation and operated as student housing. However, he said the corporation plans to "keep the city whole" by voluntarily making payments to the city.

About $65,000 a year in property taxes are paid on the building. Breuer declined to say whether keeping the city "whole" means that Creekwalk Commons would be willing to pay that amount. He said the amount of the payment would be subject to discussions with city officials, he said.

Syracuse Assessment Commissioner David Clifford said the fact that a nonprofit corporation would own the building does not mean that the housing would be exempt from property taxes. He said he would have to be convinced that the project served charitable or educational purposes and that no profits would be paid to private individuals.

"It's unique, and we'll see how it works out," he said.

Creekwalk Commons would be the first college dormitory close to downtown's core. Upstate Medical University transformed a vacant apartment building on Harrison Street, on the eastern edge of downtown, into a 139-unit residence hall last year.

The developers think the building's location between Erie Boulevard West and West Water Street will appeal to students. The building is one block north of Armory Square, a former warehouse district popular with college students because of its mix of bars, restaurants and specialty shops.

It also sits along Onondaga Creekwalk, the new pedestrian and bicycle path that follows Onondaga Creek from Armory Square to Onondaga Lake. The creek flows under the O'Donnell Building. (The creekwalk goes around the building.)

The project also is unusual because Syracuse Creekwalk Commons, though not associated with any college, is seeking tax-exempt status so it can borrow money at a lower cost than it could as a for-profit venture.

The company plans to add a fourth floor to the three-story building. Its apartments would be fully furnished, and the building would have laundry facilities, a fitness center and an indoor bicycle storage facility. Each floor would have a student lounge.

Breuer said the company hopes to start construction in July and have the apartments ready for lease starting in July 2014 -- in time for fall semester.

Students would be able to lease one- or two-bedroom apartments for either 10 or 12 months, or for two summer months.

The building is 500 feet from a former Armory Square furniture warehouse that houses the Department of Design of Syracuse University's College of Visual and Performing Arts.

"Connective Corridor" buses, a joint project of Centro and Syracuse University, provide free daily transportation between Armory Square and the university.

Breuer said turning the building into student housing makes business sense because the downtown office market is weak while demand for student housing outpaces supply at many local colleges and universities. Efforts to lease the building to an office tenant over the past three years have failed, he said.

"It's not going to compete with other developments downtown," Breuer said. "It's bringing a whole new population downtown."

In recent years, developers have converted a number of vacant and underused office buildings in the heart of downtown into apartments, primarily for young professionals and empty-nesters.

Creekwalk Commons has applied to the Onondaga Civic Development Corp. for $17 million in tax-exempt bonds to finance the project.

The OCDC was created by the County Legislature to help nonprofit organizations obtain low-cost financing. It would receive a $170,000 fee for issuing bonds. In the event of default, buyers of the bonds could foreclose on the project but could not go after the OCDC or the county.

The O'Donnell building is directly across Erie Boulevard West from National Grid. The utility and its predecessor, Niagara Mohawk Power Corp., used it as office space and a customer service center for 25 years until its lease expired in 2010.

EMO Properties, which has owned the building since 1985, would sell it to Creekwalk Commons at a price to be determined by an appraisal, said Breuer. EMO has about 50 partners. Breuer declined to disclose who its other partners are, saying it is a private company not subject to public disclosure. Creekwalk Commons estimated the purchase price at $1.6 million in its application to the OCDC. The city assesses the building at $1.6 million and the land it sits on at $400,000. Breuer said the $1.6 million was only an estimate and is subject to change based on the appraisal.

Syracuse Creekwalk Commons filed a certificate of incorporation with the state in March, describing itself as a supporting organization to Downtown Syracuse Foundation Inc., an independent, nonprofit foundation formed last year to promote downtown development.

According to its incorporation papers, the purpose of Creekwalk Commons is to redevelop the O'Donnell building "to further the educational missions of the institutions of higher education by providing the enriching experience to students of being housed in the downtown Syracuse community."

Breuer said all earnings would be put back into the building.He said the organization's board of directors will serve as volunteers without compensation. In addition to Breuer, the organization lists its officers as Linda Hartsock, director of community engagement and economic development at Syracuse University; Robert Doucette, a partner in Paramount Realty Group; Merike Treier, executive director of the Downtown Committee of Syracuse; and Edward Green, of Edward S. Green & Associates. Hartsock is listed as the organization's president.

Breuer's company, Hueber-Breuer Construction Co., would serve as construction manager for the building's conversion, according to Creekwalk Commons' application for financing. Breuer said all contracts for the actual construction work would be put out to bid and would be awarded to the lowest, qualified bidders.

Most student housing in the city is owned, directly or indirectly, by colleges and are exempt from property taxes. EdR, a private real estate investment trust, built and operates two Syracuse University dormitories and makes payments in lieu of taxes on them.

Breuer's construction company has played a role in other student housing projects in the city.

Among them was Upstate Medical University's $28 million transformation of a vacant high-rise, Townsend Tower, into a 139-unit dormitory named Geneva Tower last year. Hueber-Breuer was construction manager on the project.

It also was construction manager for Centennial Hall, a 454-bed dormitory that State University College of Environmental Science and Forestry opened in Syracuse in 2011.

Robert Simpson, president of CenterState Corporation for Economic Opportunity, the area's primary economic development group, said the project would help advance the city's goal of breaking down the wall that once separated it from Syracuse University and other educational institutions on University Hill east of downtown.

"That's been a priority, integrating the city with the colleges," he said. "This would add another layer."

To see the online article click here.

The Greatest Risk of All from the Non-Profit Risk Management Center

Got Risk Insight? Submit a Session Proposal Today

If you’ve figured out how to identify risks, teach safety and risk management to the board, or engage staff members in risk management initiatives… we want you on the faculty of the 2013 Risk SUMMIT. Visit the conference webpage and complete the workshop proposal form before the May 1 deadline.

The Greatest Risk of All

By Melanie Lockwood Herman

“I’m only human
Of flesh and blood I’m made
Human
Born to make mistakes”

– Human, The Human League, © Universal Music Publishing Group, Kobalt Music Publishing Ltd., EMI Music Publishing.

Many leaders of leading nonprofits worry excessively about external threats: competing organizations, fickle institutional funders, increased government regulations, the unpredictable global economy, radical political changes, and the like. Yet the most serious threats to a nonprofit mission arise from the humanity of our workforce. After all, we’re only human. Avoiding conflict, burying mistakes and feeling apprehensive about risk-taking are familiar components of human DNA.

What’s the Risk of Being Human?

·         Conflict: When we ignore conflicting opinions or work styles at the board table or in the staff work room, we may rob our nonprofits of the contributions of creative leaders.

·         Mistakes: When we severely punish employees for their errors, we may inadvertently cause staff to bury their mistakes.

·         Risk Aversion: When we allow fear to extinguish proposed action that is risky, but potentially mission-advancing, we fail to leverage our reputation and assets.

Don’t Eliminate the Greatest Risk

If the greatest risk facing your nonprofit is its human DNA, how can you manage human nature? Here are a few strategies to consider:

·         Embrace Conflict: Identify examples of unresolved conflict in your nonprofit and reflect on the consequences. What toll has conflict avoidance taken on your mission? Have high-performing staff or volunteer leaders walked away in frustration? Acknowledge that conflict is normal. Instead of pretending that everyone agrees, dig deep to find the wisdom in disagreement. Applaud the team member who has the courage to say “I disagree, and here’s why,” when everyone else has voted “yes.”

·         Bring Mistakes to the Surface: Unearth mistakes and face them head on. Provide a comfortable space in which to step up and fess up to a mistake. Is that comfortable space consistent in the divisions, departments or functions of your nonprofit? How might you reward staff who bring errors, oversights or even wrongful assumptions to light?

·         Resolve to Take More Risk: How often is a creative idea dismissed as “too risky?” Instead of allowing gut reactions or protests from your risk manager to stifle creative ideas, reflect on ways to encourage and inspire risk-taking.

The Center offers numerous resources on the topic of human-inspired risk, including the upcoming webinar on HR Risk: Take the High Road without Getting Lost. Join me live on May 1st at 2 pm Eastern, or register to watch the recording at your convenience. You can also check out some of our articles exploring HR risk and reward:

·         Creating an Effective Employee Handbook for Your Nonprofit

·         Five Things That Should Never Appear in an Employee Handbook

·         Grievance Procedures and Internal Dispute Resolution

·         Happy Endings

·         Human Resource Risks and the Forest of Fog

Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your comments about people and risk or your questions about the Center’s services at Melanie@nonprofitrisk.orgor (202) 785-3891. The Center provides risk management Cloud tools and resources at www.nonprofitrisk.org and offers custom consulting assistance to organizations unwilling to leave their missions to chance.

Nonprofit CEOs face pay limits in July

New $199G cap targets health, human services

After learning that two top executives at a New York City nonprofit that serves the developmentally disabled earned nearly $1 million each and got other benefits, Gov. Andrew Cuomo 15 months ago issued an executive order limiting executive salaries of organizations that contract with one or more of 13 state agencies to $199,000 a year.

The order, which also restricts administrative spending, directed the departments to issue regulations within three months. Proposed regulations came out after 90 days had elapsed and were to have taken effect Jan. 1 of this year. Due to the issue’s complexity and questions and criticism from the nonprofit sector, they were revised and the implementation date was moved to April 1. Additional changes were published in March, and the start date is now scheduled for July 1, nearly 18 months after Cuomo’s executive order.

To Read The Full Article Click Here

Disabilities services providers and advocates rally to protest budget cuts

By Ellie Wilkinson

Syracuse, N.Y. -- Joyce Herrington, 60, has lived in her own apartment for 35 years with help from Onondaga Community Living, a Syracuse nonprofit that provides services to adults with developmental disabilities. But Herrington, of East Syracuse, believes proposed state budget cuts could make it a lot harder for her to maintain her independence.

“The cuts could affect aid and the way aid is asked to help us out. We want things to stay as they are,” Herrington said.

Herrington was one of more than 100 protesters who gathered outside the State Office Building in downtown Syracuse today to protest Gov. Andrew Cuomo’s recent proposal to slash $120 million from programs and services that benefit people with disabilities. 

Individuals with developmental disabilities, family members and employees of several local nonprofits, including Arc of Onondaga, Onondaga Community Living andEnable, attended the rally. As protesters gathered on the sidewalk, many waved neon signs reading, “Don’t cut our lifelines!” and “Your cuts will hurt me! I am scared.”

Cuomo’s proposed budget cut would reduce funding to all disabilities service providers by 6 percent.

This reduction would come on top of the 9 percent cut, totaling $250 million, that has impacted developmental disabilities services in the past few years.

Prudence York, executive director of Enable, a disabilities service agency, said that Cuomo’s most recent proposed cuts would reduce Enable’s budget by $540,000, which would greatly affect the more than 1,500 individuals Enable helps each year. In Onondaga County, York estimated that the cuts would total $3.6 million.

“The agencies that serve people with disabilities have already had 9 percent cuts over the past three years,” York said. “While it’s a difficult job being the governor, I don’t think it’s fair to look at the services to the people who are most vulnerable citizens to bear a 15 percent cut.”

One protester, Martin Tiller, 27, said that Enable’s help is the reason he is able to live in his own apartment.

“It’s the money that keeps me going from day to day. It pays the rent, heat, electrical bill,” he said. “It was such a big deal to open the door to my apartment. I relished it," he said.

Hal and Ruth Brown, of Camillus, also said that Enable made a difference in their daughter Betsy’s life.

“We have a disabled daughter who for 24 years has been with Enable,” said Hal Brown, a former state assemblyman who served in the government for 14 years. “This is uncalled for.”

“Betsy receives a certain amount from Enable for living expenses, rent and mortgage. If that’s cut back, we’d have to change the way she lives,” Ruth added.

Pat Fratangelo, executive director of Onondaga Community Living, underscored how the budget cuts could greatly affect the day-to-day lives of individuals with disabilities.

“These people were not institutionalized. They were ordinary people living their lives,” she said. “Why should they take the brunt of what happened?”

Sally Johnson, president of Disabled in Action of Greater Syracuse, kicked off the rally at noon and introduced the speakers.

“We are here to send a message to the governor. The message is: Stop cutting our services. Governor Cuomo, we voted for you, and you better remember this,” Johnson said. Her statement was met with loud cheers from the protesters and honking horns from passing cars.

Several speakers, including Jeannine Nolan of Arc of Onondaga, Agnes McCray of ARISE and Alex Lupole, who receives services from Onondaga Community Living, took the podium to criticize Cuomo’s budget cuts and explain how it would personally affect those with developmental disabilities. In between speakers, protesters waved their signs and loudly chanted, “No more cuts.”

The rally ended at 12:30 p.m. and protesters quickly disbanded and cleared the sidewalk.

The Democratic majority in the state Assembly and the coalition controlling the state Senate have indicated that they are planning to propose restoring the money that the governor wants to cut. They may release their proposal as early as today.

Legislators must adopt a budget plan by April 1, but they are aiming to finish by March 21, before Passover and Easter. 

For the online article click here.

NYSACRA Action Alert

NYSACRA Action Alert

PLEASE consider reaching out to your assemblyman and senator to express your concern over the cuts proposed below. Springbrook provides invaluable support to people with developmental disabilities. The proposed 6% cut equates to $1.2 million for this organization.The proposed 6% cut equates to $1.2 million for this organization. The phone calls take less than a minute each. PLEASE PLEASE call.

As you are well aware, the proposed 2013-14 Executive Budget proposes a 6% across the board cut to all voluntary not-for-profit providers throughout the State of New York, effective April 1, 2013.  If this cut is enacted, the developmental disabilities system of supports and services will be negatively impacted, dramatically.  NYSACRA has received information from members as to how the reductions will be absorbed if a restoration is not successful.  Agencies will be forced to: reduce services and supports, eliminate entire programs, layoff all levels of staff including direct support professionals.  We all know how this will translate if the cuts are to be taken: the great strides we've made as a sector will quickly erode and the quality of life for people with intellectual and developmental disabilities (I/DD) will be negatively impacted.

Both houses of the State Legislature are in the process of negotiating and getting ready to release the respective one-house budget measures.  While we understand the 6% across the board cut to the not-for-profit developmental disabilities sector is gaining great attention in the State Legislature, we need to continue advocacy efforts and therefore we are asking agencies, parents and family members, agency staff and direct support professionals, self advocates to make two telephone calls this week.

WHO TO CALL:

Please make two telephone calls, one to your State Assemblymember and the other to your State Senator in their Albany Offices

WHEN:

This week (the week of March 4^th)

WHAT'S MY MESSAGE:

"I'm a constituent and I am concerned the proposed 6% across the board cut to the not-for-profit developmental disabilities providers will negatively impact supports, services and programs.  I wish to thank my Assemblymember/Senator for his/her support of people with intellectual and developmental disabilities and ask him/her to support restoration of the 6% proposed cut in the one-house budget bill."

HOW:

Contact the Assembly Operator at 518-455-4100 and ask to be transferred to your Assemblymember's Office. (if you do not know who your Member of the Assembly is, go towww.assembly.state.ny.us to identify your Member.  You may also obtain his/her direct Albany Office telephone number, rather than going through the Assembly Operator).

Contact the Senate Operator at 518-455-2800 and ask to be transferred to your Senator's Office (if you do not know who your Member of the Senate is, go to www.nysenate.gov to identify your Senator. You may also obtain his/her Albany Office telephone number on the website, rather than going through the Senate Operator).

THANK YOU FOR YOUR ONGOING ADVOCACY AND EFFORTS!

LOOK FOR MORE NYSACRA ACTION ALERTS

THROUGHOUT THIS WEEK AND NEXT WEEK

Sequestration and Nonprofits in New York State

Sequestration and Nonprofits in New York State: Telling the Story of Impact on the People We Serve

When Washington policymakers failed to reach agreement to stop the $85 billion in arbitrary budget cuts known as “sequestration,” they let loose a wide array of cuts and changes that are likely to be felt first and frequently by charitable nonprofits. We feel that the best way to demonstrate the adverse effect of sequestration on our communities is for charitable nonprofits like yours to share the stories and data of what it means to the people you serve. That is why the websitewww.GiveVoice.org has been launched by the National Council of Nonprofits.

As a member of the New York Council of Nonprofits, you are part of the nation’s largest network of charitable nonprofits, connected through the National Council of Nonprofits. This network is mobilizing to (a) alert the nonprofit community about how the new federal sequestration cuts will affect almost every charitable nonprofit in America – even those without any government contracts – and (b) start documenting the effects of the sequestration cuts on the work of nonprofits and the communities we all serve.

The cuts mean that nonprofit staff members and board members must raise billions of dollars more this year alone to handle the resulting increased demands for services.  We encourage you to visit www.GiveVoice.org to see how sequestration will have multiple ripple effects and then share your data and stories about what the cuts mean to the work of your nonprofit (including changes to your own staffing levels) at www.GiveVoice.org so state, subsector, and national trends can be analyzed the story of the impact can be documented and demonstrated.

Historically, the nonprofit community has suffered because we have been fragmented and separated into different silos. This new GiveVoice.org resource allows nonprofits here in New York to learn together and lift our voices together for the public good.

Thanks for your membership in New York Council of Nonprofits; by coming together, the nonprofit community can better serve our broader communities across New York.

National Webinar Free for Your Members

Sample Promotional Language

Like yours, many nonprofit organizations often find themselves wondering...

• Do we need to have an independent audit? (And what does that entail anyway?)
• Are there special rules for us because we receive government grants?
• How can we prepare so that the process goes smoothly?
• What’s the board’s role?

To answer these questions and more, NYCON is excited to bring you Nonprofit Audits in a Nutshell, a free webinar on March 28th at [3:30pm Eastern] , hosted by our national network, the National Council of Nonprofits. This webinar features practical tips from nonprofits about their audit practices, as well as experts from BoardSource andRaffa and is designed to give you background on everything you need to know about the independent audit process (from legal requirements to practical advice).

Thanks to the support of First Nonprofit Foundation, this exclusive webinar is available, free of charge, to all members of NYCON. Don't miss this opportunity - Register Today!

Biggest Mistakes Boards Make, Founding Fathers Write a Grant Proposal and more

Practical, Provocative and Fun Food-For-Thought for Non-Profits

The Trouble with "Passion for the Mission" . . . editor notes issue #84

"Passion for the mission is a must" . . . so say many job announcements and board member requirement lists. Wait a minute. Let's examine this sacred cow cliche a little more. Read More>

Surprisingly Uncomplicated Path for Developing Leaders

Kirk Kramer of The Bridgespan Groupsuggests some new approaches to leadership development in his recent papers. For Blue Avocado readers, he cuts right to the chase: Read More>

In the Swirling Dust of Change, Life Still Goes On for an ED

It just makes sense that the founder of the Center for Digital Storytelling would tell his own story in a remarkably compelling way. Here's Joe Lambert with a thoughtful First Person Nonprofit account of how organizational problems can bring out the creativity and best in people and how, through it all, life goes on, though it's your choice how to embrace its everchanging moods: Read More>

The Founding Fathers Write a Grant Proposal

"Just look at this second sentence!" groaned Samuel Adams. "'We hold these truths to be self-evident  .  .' This flies in the face of 'evidence-based practice'! We'llnever get funded!" Read More>

Ten Biggest Mistakes Boards and Executives Make

"To err is human," and as we all ruefully know, nonprofit board members and executive directors are typically human. Here are some of the biggest mistakes we make: Read More>

Take a 3-Minute Vacation to an Oscar-Nominated Film Starring Avocados

Has anyone else seen an avocado in an Oscar nominated film this year? Read More>

To see it online Click Here

Nonprofit Knowledge Matters | Fundraising Flu

Diagnosis: Serious Illness.

Rx: Manage Expectations and Change the Culture

A new report on fundraising has uncovered a serious issue regarding the health of charitable nonprofits. Like the flu, it’s contagious, spread by mismatched expectations. But, unlike the flu, no immunization shot is available. Instead, staff leaders and board members who are anxious to avoid this debilitating condition can take some basic precautionary measures to recognize the symptoms and commit to re-thinking the organization’s culture.

 

Like influenza, the diagnosis and consequences can be quite serious: Let’s call it, “the Fundraising Flu.” When it hits, nonprofits are so weakened and fatigued that they lack the basic elements necessary to successfully raise money. We’ve all seen it happen. It starts with the germ of mismatched expectations, which leads to disappointment and frustration that weaken relationships and prevent a positive culture surrounding fundraising at the nonprofit.

 

Symptoms of the Fundraising Flu include:

• Board members who expect executive directors to raise all the money.
• Executive directors often don’t have a background in fundraising and view it as geting in their way of doing the “real work” of the organization, and therefore expect their boards and development directors to raise all the money.
• Development directors who feel unsupported by executive directors and boards who are not engaged with fundraising activities.

Fortunately, we can now view the recent insightful report by CompassPoint, Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, as a physician's desk reference on the health of nonprofits. The report's prognosis is that charitable nonprofits large and small can suffer from this affliction. While examining the reasons why there is such high turnover and so many vacancies in the development director position throughout the charitable nonprofit community, the report recognizes that it’s more than just the germ of mismatched expectations that leads to Fundraising Flu. It’s also the absence of technology or strategic thinking. Indeed, almost a third of smaller nonprofits who responded to the survey – those with budgets of less than $1 million – reported that they did not have sufficient tools in place, such as either a database to track donor information – or a fundraising plan. In their weakened conditions, without technology or key staff, fundraising, delivery of mission, and eventually sustainability, all suffer.

 

How can we all keep the Fundraising Flu at bay?

The Rx: Recalibrate expectations and change the culture. The report explores the causes of high vacancies that exist for the position of development director: survey data show that a significant number of development directors are being asked to leave because they are not raising enough money or are judged as not well suited for the job. These findings point to mismatched expectations that we see over and over again. Do these scenarios sound familiar to you? Executive directors wish that board members would be more active in raising money; the board expects the executive director to pull millions out of a hat. Meanwhile, the development director is pulling out his/her hair trying to get the executive director to pick up the phone to call a donor, while the board is skeptical whether the development director’s high salary is a worthwhile investment. Obviously there is a disastrous mismatch of expectations going on (everyone thinking that it is everyone else’s fault that the nonprofit is not bringing in more contributions). It’s unfair to expect a development director to succeed at fundraising without the support of the board or executive director (21% of the development directors surveyed characterized their relationship with the executive director as “weak or nonexistent,” and three out of four executive directors characterized their board’s engagement as “insufficient”). It’s also unfair to hire someone who is not experienced or skilled at fundraising and expect money to flow in the door (one in four executive directors reported that their development directors were “novices” in various basic fundraising activities). Executive directors who don’t like to pick up the phone to speak with a donor should not expect their board members or development directors to pick up their slack. And board members who think the reason why the development director was hired is to pick up their slack should step off the board! What jumps out from the report is that development directors are not sticking around when they don’t have the resources to succeed, and those resources includeengaged leadership. The report points out that fundamentally, in order to avoid Fundraising Flu, charitable nonprofits need inspired and engaged leadership around financial sustainability.

 

The report’s experienced authors note that we need a “’fundamental shift in thinking and action across the nonprofit sector” in order to embrace a culture that supports fundraising and is more donor centered. We think that what’s also needed is a dose of better managed expectations. With fundraising, the devil is in the details: not the details of a grant proposal, but the details that keep a nonprofit on track with follow-up, thank you notes, deadlines, and putting all those business cards that are stacked up on your desk into a database. These administrative details are not necessarily most efficiently accomplished by a high level development director. Before hiring a development director, consider whether a development assistant is more appropriate. As played out in this Blue Avocado article, the lack of a development director may not be fatal if what really is needed is a detail-oriented staff member who can keep the fundraising activities on track. But success will only be achieved when there is an overall strategy in place that supports fund development, championed by an executive director and board both willing to provide leadership for the organization’s fund development activities.

 

At its essence the report’s cry for charitable nonprofits to embrace a “culture of philanthropy” (we prefer “culture of sustainability”) is the recognition that charitable nonprofits can’t be successful in fundraising –even if they are fortunate enough to hire a dynamite development director – unless there is fundraising leadership in place (a triad of engagement between the executive director/development director/board of directors) as well as a supportive culture for fundraising. To read more about how to combat the Fundraising Flu, we refer you to CompassPoint's full report, especially the Call to Action that identifies 10 steps for charitable nonprofits to take to immunize themselves from what the authors characterize as the “passive, apologetic, and siloed” nature of fundraising today.

And, for training and peer learning about leadership and fund development, don’t forget to check the calendar of events of your state association of nonprofits. Engagement in fund development is too important not to make it one of the highest priorities for the leadership of your organization.

New York Non Profit Press: The Upstate Difference

The Upstate Difference

Written by Fred Scaglione 

Everyone here at the New York Council of Nonprofits (NYCON) was extremely pleased when NYNP announced that they were expanding coverage to include the Greater Capital Region.  It is a natural progression from NYNP’s previous expansion to covering the Hudson Valley.

As fans and supporters of NYNP for many years, we have advocated for and worked to help the NYNP find ways to broaden its geographic scope and to also expand sector-wide.

Linking and bridging the information and “news” interests of downstate nonprofits with those upstate certainly has it challenges as they are often perceived as different worlds.   As a statewide association where our membership of over 3,400 nonprofits is evenly split between downstate and upstate, NYCON understands the importance of promoting and unifying the common characteristics, interests, and voice of our state’s charitable community. NYNP’s expanded geographic reach will undoubtedly be an important contribution  to narrowing the so-called “upstate-downstate divide”.

The divide is a matter of both reality and perception and is a product of deep historical, demographic, socio-economic, political, and cultural roots.  There is no question that nonprofits in the Greater Capital Region – and throughout “upstate” New York – face many of the same challenges as do their colleagues downstate whether they be seeking financial sustainability and unrestricted resources; struggling to do business with a state government that is wanting “more and better for less” while choking nonprofits with late contracts and payments and piling on unfunded regulatory and administrative mandates; and weakened private giving.

Of course the first question that emerges is where does upstate begin?   Most will say downstate is NYC and Long Island. The most liberal perspective would say that  downstate starts with Poughkeepsie because of the Metro North commuter train; then there is the question about what if any part of the  west side of the Hudson is included, such as Rockland.  A middle ground definition says that downstate is all that is south of the Tappan Zee, thereby dividing Westchester.

The real differences that exist are very much matters of scale, scope and socio-economic patterns.  A medium size nonprofit downstate for example would be considered a large nonprofit upstate.  For nonprofits, a major “felt” difference is the pocketbook issue.  The further down the Hudson Valley you go, the more expensive it is to operate and, on the other side of the coin, the greater access there is to donor wealth and organized philanthropy.

During much of the post-World War II period, mills and manufacturers dotted the landscape’s waterways and rail, providing a sound base for the economies of small cities and even far-flung towns and villages.  The broad transformation and deterioration of upstate New York’s economy over the past several decades have created a challenging  philanthropic environment. 

Philanthropy is very much a local phenomenon upstate. You can count on just a couple of fingers the number of foundations whose grant eligibility is restricted to nonprofits located anywhere in New York State or to nonprofits in any region upstate.   Given the high number and small size of cities, towns and villages, it is a complicated maze.

Historically, philanthropy in the Greater Capital Region and across upstate New York generally has been driven by several factors:

•    Locally-owned major businesses and banking – and the families who owned them – with strong, well-established and long-lasting roots in the community.  These business leaders and their families were the traditional community philanthropists and often founded the long standing charities.  The lineage of an often multi-generational, family connection to the local community remains some but is being lost with time as their businesses have declined, been sold or closed.  Banking is a good example as it seemed like every community had an independently-owned bank that was named after their town, city or county.  These banks typically played a leading role in local civic life with the Community Chest or now the United Way.  Some of these banks still exist, but by and large they have been acquired by those whose corporate headquarters and major charitable decision-making are elsewhere.

•    National or global corporations – Some communities were and still are in some ways are dominated by a particular national or global company – IBM in the Hudson Valley and GE in Schenectady, Waterford and Ft. Edward, for example.  These companies were extremely engaged in volunteerism and charitable giving and in many ways defined their local community. They saw and very much valued the connection between a strong, vibrant local community and a healthy, productive work force.  Globalization, significant downsizing,   the shift of corporate donations having a marketing value, and a greater focus on securing  property and other tax breaks from the local community, have dramatically changed the character of their relationship to the communities and the nonprofits in them.  In the recent years, some of these companies have been economically on the upswing.  It is important to note the Capital Region is branded as “Tech Valley” and has become a national and international center for Nano-Science research and micro-chip production.  The impact of all this on charitable engagement has yet to be determined but these plants seem strangely removed and remote from both the communities where they are located -- and the charities that serve them.

•    State government – In the Capital Region, the State Employees Federated Campaign (SEFA), was for many years a dominant philanthropic force, raising millions annually in a region that was dependent on the economic engine of the State.  The significant decline in the state workforce and the trend to toward designated giving has dramatically affected the scope and impact of SEFA.

•    Foundations – Unlike downstate, there are few foundations of significant size.  Community Foundations are growing in size and number and are becoming a significant leadership force in bringing together the traditional as well as the emerging philanthropists.  They are challenged however to secure unrestricted funds to support their own operations and to provide discretionary grants.

Upstate cities are declining in population as urban flight has continued for a generation.    As wealth in terms of people and businesses moves to the suburbs, people take their volunteer time and charitable contributions with them, preferring to invest in organizations within their own home school districts and communities.  It is increasingly difficult for urban-based nonprofits to attract charitable gifts especially those that are considered “major”.

This situation stands in stark contrast to New York City, where the large numbers of poor and low-income individuals and families are balanced in part by whole communities of high-income and wealthy residents who willingly support and serve on the boards of local nonprofits.
Although much can be said about the urban-suburban demographic shifts, what is often neglected in this discussion is the truly rural areas of upstate. Rural communities have little tax base and employment opportunities, there is serious a lack of public transportation, and rural communities are extremely challenging and expensive for nonprofits to serve.  In these times where funders want more production and more efficiencies, rural services are often the first to be cut by nonprofit providers. And, quite frankly, their political influence is minimal.

Change in the upstate nonprofit landscape is afoot however.  In the Greater Capital Region, and all across upstate New York, nonprofits have begun consolidating with other similar, like-minded and complementary organizations in an effort to expand their programmatic and geographic reach while reducing administrative expenses by gaining economies of scale.  Regionalization is becoming more and more of a reality as it is increasingly clear it is no longer sustainable to have duplicative or otherwise competitive organizations in the same county or within neighboring counties.  The Governors Regional Economic Councils is having a huge impact on changing the parochial culture of upstate.  All of a sudden, that Hudson River is not the dividing force it once was.

Nonprofits everywhere are facing difficult and challenging times.  However, the environment with which many Greater Capital Region and other upstate charities are attempting to cope is more difficult and challenging than many leaders of government and the downstate philanthropic community appreciate. The expansion of the NYNP will help promote greater understanding and respect for the challenging work being done by upstate nonprofits.

Doug Sauer is Chief Executive Officer of the New York Council of Nonprofits, Inc.

For the online article click here

NTEN:Change on Nonprofit Collaboration

Happy 2013 from NTEN:Change!

With all the end-of-year campaigns and, for many of us, time off, chances are you haven't been able to read the latest issue of NTEN:Change yet. We certainly understand the time crunch around this time.

We thought you might be interested in these articles in particular from our December Issue on Nonprofit Collaboration, however, so we hope you'll take a look when you have a few minutes:

Leadership Cheat Sheet: Is Your Organization Ready to Collaborate? Five Questions for Board and Staff, from La Piana's Heather Gowdy and Bob Harrington. Read the article.

Advocacy: Sharing A Cause (and Data) Across Multiple Orgs. Developing a High Touch, Human Platform for Collaboration, from Upwell's Rachel Weidinger. Read this article.

DIY: 5 Tips for Working More Effectively With Consultants , by Dennis Deery. Read the article.

Of course, there are also case studies, how-tos, nonprofit leadership profiles, a podcast, and much more in the current issue: click here to open in the e-reader.

If you'd like to downoad the PDF version of the issue, click here to start the download . You can also access a text-only version of the articles (for translation or accessibility needs).

To read the latest issue click here.

Statement on Fiscal Cliff Deal

NYCON's Statement on the "Fiscal Cliff" Deal and Implications for New York State's Nonprofits  

The New York Council of Nonprofits, along with colleagues nationwide, expresses mixed views about the passage of the "American Taxpayer Relief Act of 2012" (H.R.8, as amended).

NYCON applauds Congress for the strong bipartisan vote in passing a compromise bill to avert certain immediate threats posed by the fiscal cliff. We thank those elected officials and staff members on Capitol Hill and at the White House who worked around the clock to make this compromise possible and for maintaining incentives for charitable giving for most Americans. As negotiations continue on the now-postponed sequestration cuts and on the debt ceiling, we encourage Congress and the President to recognize how essential these incentives are for the work charitable nonprofits perform in every community throughout the country.

However, the New York Council of Nonprofits also would like to express deep concern that Congress and the President have failed to resolve the pending across-the-board cuts of $54.6 billion from domestic spending programs that will touch virtually every person and every community in America.  

Federal policymakers have failed to recognize that the arbitrary sequestration cuts to domestic programs will reduce funding without reducing the underlying human needs, thereby increasing demands on states, local governments, and nonprofits in local communities while also decreasing resources to provide needed services. Too many policymakers apparently are unaware that federal funding actually flows to the states and localities to deliver basic human services. Often these services are delivered through contracts with nonprofits because governments have found charitable nonprofits to be more efficient and effective, in part because they are mission-driven rather than profit-driven. After five years of serving so many more for so much longer with so much less, America's charitable nonprofits are past the breaking point.

Kicking the can down the road means kicking those who are already down and struggling to get back up. We must keep up the pressure on Congress and the President to stop the punitive and arbitrary cuts and get to work on continuing our economic recovery.

To learn and do more, NYCON encourages our members to visit the National Council of Nonprofits website at www.councilofnonprofits.org.

For the full article click here.

New York AG Eric Schneiderman to nonprofits: Show us your campaign money

By Teri Weaver, The Post-Standard 

Syracuse, N.Y. -- Attorney General Eric Schneiderman has proposed regulations that would make certain nonprofit groups report their political spending, a change that could reveal the source of millions of dollars in campaign money currently hidden from public view.

The proposal could make most nonprofits -- including 501(c)(4)s -- registered with New York report the breakdown of spending that goes toward federal, state and local elections. If that spending topped $10,000, the group would be required to disclose money donated to the group and spending toward political candidates or issue advocacy in state and local races.

Schneiderman, the state's top law enforcement officer, has the authority to regulate nonprofits. He must hold public hearings on the proposal, but he ultimately has the ability to impose the new rules, The New York Times reported.

The changes are a way around the hidden campaign spending that has flourished since
U.S. Supreme Court’s 2010 Citizens United decision -- especially in 501(c)(4) groups.

Those organizations "have become vehicles for political activity, including funding sham 'issue ads' that attack candidates for public office," according to a news release from Schneiderman. The "501(c)(4)s have become attractive conduits for this sort of activity because they can raise and spend unlimited funds, conceal their funding sources, and avoid paying corporate taxes on donations. In the last two election cycles, election spending through 501(c)(4)s exceeded spending through traditional political action committees."

Under the new rules, nonprofits that spend $10,000 or more a year that way would have to list each expenditure and each contribution of $100 or more, including the contributor’s name, address and employer.

The information would be public, with an exception for donors who specify that their funds can’t be used for electioneering.

As the Times points out, the change could affect lawmaking in New York involving such high-profile issues as hydrofracking, gaming and redistricting.

"The rules would also affect any tax-exempt groups that join expected battles over a proposed constitutional amendment that would expand casino gambling, a top priority of Gov. Andrew M. Cuomo; another constitutional amendment that would alter the state’s redistricting process; and any local ballot measures regarding hydraulic fracturing," Nicholas Confessore wrote in the Times story.

The new rules would not apply to 501(c)(3) organizations, which are already strictly prohibited from intervention in political campaigns, according to Schneiderman.

For online article click here