PANO

8/11/10 FMAP Legislation Passes the House.  Read more at Reuters.

8/6/10 FMAP Update: On Wednesday, August 4, the Senate voted in support of bill, H.R. 1586, that would extend $16.1 billion in federal Medicaid payments to the states in year 2011. In January to March states will receive 3.2% of funding and from April to June 1.2%. Pennsylvania and a number of other states included the Federal Medical Assistance Percentages (FMAP) funding in the 2010 -2011 budget. In recent news, Governor Rendell announced that an estimate of 12,000 Pennsylvania jobs would be lost if the FMAP funding is not extended.   The controversial FMAP extension was included in the tax extender bill, HR 4213. The FMAP language was stripped out of the bill after the provision did not receive enough support or votes from House Democrats. Proponents of FMAP argue that the extension will provide better quality of care across the states, while opponents argue that the funding adds to the record high national deficit.    The House is returning to session on Monday, August 9. The House is tentatively scheduled to vote on the bill Tuesday, August 10, around 11:00 a.m. To review the bill, please click on: http://thomas.loc.gov/cgi-bin/bdquery/z?d111:H.R.1586.

6/2/10 Workers Incentive Program. The first stimulus is the 2010 Hiring Incentives to Restore Employment Act ("HIRE Act", H.R. 2847), was signed by President Obama on March 18, 2010. The HIRE Act provides for forgiveness of Social Security taxes, but not Medicare taxes, paid on qualified new hires, along with a credit for keeping them on the payroll for at least 52 weeks. Under the HIRE Act, the Social Security tax of 6.2% of wages is eliminated for wages paid to qualified new hires starting on the date of enactment through December 31, 2010. A qualified new hire must start employment any time after February 3, 2010 and before January 1, 2011, and can work full or part time. To be a qualified new hire, an employee generally must be unemployed for at least 60 days before his or her start date. Since this credit is taken on payroll taxes, nonprofit employers, regardless of size, can benefit and use this incentive to hire the unemployed.

This payroll tax forgiveness provision expires at the end of the year, so nonprofits will save more the sooner they hire eligible unemployed workers.

Read more about this at http://www.councilofnonprofits.org/public-policy/federal-policy-issues/economic-recovery/jobs/hiring-incentive-now-available. 

10/29/09 Stimulus Update: The email pasted below was shared with us for distribution by Tony Ross of United Way of Pennsylvania and the State’s Stimulus Oversight Commission. 

The next Pennsylvania Stimulus Oversight Commission meeting will be held on Friday, October 30, 2009, 11:00 AM - 1: 30 PM in Conference Room 1 of the Forum Place Building, 6th Floor 555 Walnut Street Harrisburg.  Meetings are open to the public.  The agenda includes an Implementation Report by Jim Creedon, Secretary of the Department of General Services and Chief Implementation Officer, a review of Broadband Proposals, Workforce Programs Update, Tax Credits Presentation, by PICPA’s Federal Tax Committee.  Four documents will be discussed at the meeting.  Implementation Report with two attachments: Weatherization Training Provider Grants; Executive Order - Small and Disadvantage Business (Creating Opportunities for Small and Disadvantaged Businesses in the Expenditure of Federal Stimulus Monies) Updated Workforce Program Update. 

PANO’s Persistence: For months, PANO has called for the state to upgrade its www.recovery.pa.gov website by adding a single webpage listing all current stimulus opportunities in a dynamic and searchable database.  It is PANO’s position that Pennsylvania’s billions of dollars in stimulus money must be spent to limit the depth and duration of the recession and stimulate the economy.  To do this, nonprofits and for-profit businesses of all sizes need to be given a full, fair and equal opportunity to vie for stimulus opportunities.  Only by providing information to the largest possible pool of potentially qualified applicants, can the State identify the most innovative projects to “stimulate” Pennsylvania’s sluggish economy.  

 The Issue: PANO repeatedly urged the Commission not to distribute information about stimulus opportunities through blast emails or RSS feeds, but to use a more proactive and technologically appropriate communication tool.  Blast emails and RSS feeds with updates of stimulus opportunities provides insufficient information, often without adequate time to apply, and provides it in a clumsy format.  A dynamic and searchable database however with all new and existing stimulus grants and contracts on the www.recovery.pa.gov website would offer one-stop shopping for everyone.  To illustrate my point, go to the “opportunities” page at (http://www.recovery.pa.gov/portal/server.pt?open=512&objID=6016&mode=2) and try to search for stimulus opportunities that might be appropriate for your organization supposing that you don’t already know what’s available.  The cost to develop this dynamic searchable web page would be modest considering what’s at stake:  $16 billion in stimulus funds that Pennsylvania will receive by 2012. 

Executive Order: After months of silence, something finally changed. On Wednesday, October 28 the Governor Signed an Executive Order to ensure that Recovery Act funding opportunities would reach small and disadvantaged businesses. Learn more.  View Executive Order. The Order establishes as an overall Commonwealth aspirational goal that at least ten percent of ARRA funds should go to small disadvantaged businesses as contractors, subcontractors, grantees, sub-grantees and suppliers.  The Order requires agency participation in outreach efforts to encourage and increase small and disadvantaged business interest and participation. It also directs agencies to track and report participation in ARRA opportunities. According to the Governor’s press release, Executive Order 2009-02 formalizes existing practices.  Considering that 90% of the 41,000 charitable nonprofits in Pennsylvania are small businesses, the Administration finally seems to be making an effort to increase outreach so that qualifying for ARRA funds is more inclusive. Now nonprofits and minority owned or women owned businesses should have a fair chance to compete for state-administered Stimulus/ARRA funds. 

 Other Changes:  To reach a wider audience, the State also seems to be using its other websites like the Department of General Services’ Procurement site (http://www.portal.state.pa.us/portal/server.pt?open=512&objID=1230&mode=2), the eMarketplace portal (http://www.emarketplace.state.pa.us/BidContracts.aspx), and NewPA.com  (http://www.newpa.com/find-and-apply-for-funding/american-recovery-and-reinvestment-act-2009/index.aspx).  You can also search the Federal Recovery.org website for Pennsylvania stimulus opportunities at (http://www.recovery.org/for_businesses.aspx?gloc=Pennsylvania*PA&mloc=PA).  One of the stated goals of the Recovery.org website is to provide businesses with the information about when and where ARRA-funded projects are happening they need early enough so they are able to prepare and submit bids/proposals. 

 Why it’s Relevant: Of the $10 billion in stimulus funds that comes directly through the state, Pennsylvania has already spent a third -- more than $2.3 billion, with another $1.6 billion in the pipeline.  How many companies, organizations, or individuals have been excluded from the process because of the convoluted way the Administration has chosen to share information?  What evidence does the Administration have that they reached and chose the most innovative and effective companies.  Would other companies have added more jobs to the economy?  We don’t know.  The whole thing just reeks of political cronyism. What we do know is that fewer applicants, means less innovation, and less economic benefit.  This is an equation that Pennsylvania can ill afford. 

 Next Steps: We recognize the efforts of the Stimulus Oversight Commission, the Department of Community and Economic Development, and the Governor’s office, through the Executive Order to ensure that nonprofits and small and minority owned businesses have full and fair opportunity to compete for state-administered Stimulus/ARRA funds.  PANO will continue to monitor this issue and share updates as it develops.

9/21/09 The following Stimulus Update was shared with us for distribution by Tony Ross of the Stimulus Oversight Commission.   

1. Homelessness Prevention and Rapid Re-Housing Program Funds Awarded.  Sixty-three counties will receive a total of $20,065,423 as part of the county housing partnerships component of the Homelessness Prevention and Rapid Re-Housing Program.  More information.

2. HHS/CDC Announce $373 Million Available for ARRA Chronic Disease Prevention Program.  On Thursday, September 17, U.S. Department of Health and Human Services Secretary Kathleen Sebelius and Centers for Disease Control and Prevention Director Tom Frieden unveiled the availability of a portion of the American Recovery and Reinvestment Act of 2009 (ARRA) wellness and prevention fund.  The Secretary announced the release of the first $373 million of the $650 million fund for a number of competitive grants to “support evidence-based prevention strategies for youths and adults and to promote partnerships across communities and sectors.”  Applicants will be able to propose activities in two categories of funding, one for obesity, physical activity and nutrition and one for tobacco prevention and control.  Awards will range as high as $10 million - $20 million in large cities. Additional information from HHS, including a fact sheet, news release as well as link to a recording of Thursday’s press conference is posted at http://www.hhs.gov/recovery/.  Detailed grant information is available here.  

The CDC forwarded the following reminders for those of you who are interested in being part of the application process:

• The application deadline for the community projects is December 1, 2009.  Applicants are required to submit a Letter of Intent (LOI) to be eligible to apply for this program.  The deadline for submitting a Letter of Intent is October 30, 2009.  Several forms of pre-application support will be available.  Specific information about how to access this support will be posted shortly as a featured item on CDC’s Community Health Web Portal www.cdc.gov/CommunityHealthResources

• Pre-application conference calls will be conducted.  Funding Opportunity Announcement (FOA) information will be available for potential applicants on three separate conference calls, conducted by the Centers for Disease Control and Prevention (CDC).  These are anticipated for September 30, 2009 and October 1, 2009.  Dates and times and for information on how to access these calls will also be posted to: www.cdc.gov/CommunityHealthResources

• A dedicated mailbox for inquiries as been established. Questions can be emailed to: CPPW@cdc.gov.  Answers to submitted questions will be posted for all website users to view on www.cdc.gov/CommunityHealthResources

• A series of expert-led webinars will be offered, each offered live and then available by web archive covering the following topics:  Obesity/ Physical activity/ Nutrition Policy, Tobacco Policy, and Evidence-based Policy Intervention. The scheduled dates and times for these webinars will be located on CDC’s Community Health Web Portal at www.cdc.gov/CommunityHealthResources

• A single source for community tools for application development is available via CDC’s Community Health Web Portal www.cdc.gov/CommunityHealthResources

3. PANO continues to call for the state to update its www.recovery.pa.gov  website by adding a single webpage listing all current stimulus opportunities in a dynamic and searchable database.  We recognize the efforts of the Stimulus Oversight Commission, the Department of Community and Economic Development, and the Governor’s office, to ensure accountability once the funds are distributed, but much work still remains if nonprofits (large and small) are to be given full, fair and equal opportunity to vie for stimulus opportunity.  The Commission did add the RSS feed feature to make it easier for individuals to stay informed when content changes on the PA Recovery web site http://www.recovery.pa.gov/portal/server.pt/community/announcements/6016/rss.  However, all organizations need to know that the opportunities are available in order to apply for them.  A technologically appropriate means of sharing information is essential.  

4. Contact Tony Ross (Tony@uwp.org) of the United Way of Pennsylvania with any questions or concerns.  Tony is also a member of the Stimulus Oversight Commission.  He can share your comments with the Commission.  Learn more about the Stimulus Oversight Commission

9/2/09 Stimulus Oversight Commission Meeting September 10. The next meeting of the Stimulus Oversight Commission is September 10 at 11:00 am. in Conference Room 1 on the 6th Floor of the Forum Place at 555 Walnut Street, Harrisburg, PA. All meetings are open to the public. All are welcome. The Stimulus Oversight Commission reviews, monitors and advises Pennsylvania’s plans for spending of stimulus funds from the American Recovery and Reinvestment Act (ARRA). Learn more.
Submit Feedback/Comment 
List of agency point persons on stimulus

8/25/09 NPower offers training for “emerging adults” NPower Pennsylvania’s IT Works Training Program is free to unemployed young adults age 18-25 (with a high school diploma or GED) interested in a career in technology. The 16-week course helps participants develop IT skills to work as computer support specialists. Students can earn a Microsoft Certified Technology Specialist certification. Job placement assistance is available after graduation. For more information, email Carlos Cartagena or call 215-557-1559 x113.

8/12/09 National Council of Nonprofits issues two new Special Reports on Economic Stimulus & Recovery. Earlier this week, the National Council of Nonprofits issued two new Special Reports on Economic Stimulus & Recovery. Special Report No. 8 documents an increase in the demand for nonprofits’ services while operating costs continue to rise, and revenues are falling. Special Report No. 9 offers fresh economic coping strategies being used by nonprofits throughout the country to prompt new thinking about how to face financial challenges head on. These reports are part of an on-going series of the National Council’s Special Reports on Economic Stimulus & Recovery. We are able to share these report with you because through your membership in PANO, you belong to the National Council too. Together these Reports are designed to help you position your nonprofit to be heard more clearly on issues like health care reform, capacity building, or other matters that impact the sector. http://www.councilofnonprofits.org/specialreports. 

Energy Training Partnership Grants-Department of Labor. The US Department of Labor announces the availability of approximately $100 million in grant funds to 20 to 30 projects ranging from $2 to $5 million each. Projects will provide training and placement services in the energy efficiency and renewable energy industries for workers impacted by national energy and environmental policy, individuals in need of updated training related to the energy efficiency and renewable energy industries, and unemployed workers. Proposed projects must be developed and implemented through strategic partnerships. The Application Deadline is September 4, 2009.  For more information go to http://www.doleta.gov/grants/pdf/SGA-DFA-PY-08-18.pdf.  For more information on the array of US Department of Labor employment and training investments opportunities, visit http://www.doleta.gov/grants/find_grants.cfm or call Laura MacDonald or Adri Jayaratne at the DOL Congressional and Intergovernmental Affairs Office at 202-693-4600 or email at Macdonald.Laura@dol.gov or Jayaratne.Adri@dol.gov.   Also please continue to check http://www.grants.gov for stimulus opportunities for which your organization might qualify.

Nonprofit Access to Stimulus Funds. Since the June 22, 2009 United Way Stimulus Forum PANO, co-hosted by the Pennsylvania Charitable Nonprofit Caucus, we have called for the state to improve its www.recovery.pa.gov website, by adding a single webpage listing all current stimulus opportunities in a dynamic and searchable database.  We recognize the efforts of the Stimulus Oversight Commission, the Department of Community and Economic Development, and the Governor’s office, but much work still remains if nonprofits (large and small) are to be given full, fair and equal opportunity to vie for stimulus opportunity.  The Stimulus Oversight Commission has requested your input.  Send your comments, concerns and ideas to the Stimulus Oversight Commission gs-secretary@state.pa.us.  Every reasonably qualified nonprofit should have equal access to stimulus funding opportunities. For background on nonprofit access to stimulus funds go to http://www.pano.org/economy.php.

7/27/09 According to Governor Edward G. Rendell, the Commonwealth’s plan for using Federal American Recovery and Reinvestment Act funds to weatherize tens of thousands of housing units and put nearly a thousand people to work is now open for public comment. The following announcement was shared with us by Tony Ross, President of United Way of Pennsylvania and member of the Stimulus Oversight Commission. We thank him for his service.

7/1/09 Nonprofits Still Having Trouble Accessing Stimulus Funds. If the State is addressing the problem of nonprofit access to the $2 billion in stimulus funds available to nonprofits, then why does the problem persist? Could it be that nonprofits are not sophisticated enough or haven't spoken-up? Unlikely. Could there be another reason why corrective measures have not been taken? I'll give you $2 billion reasons, which conveniently happens to be about the same size as the hole in the State budget.

On June 22, PANO, the PA Charitable Nonprofit Caucus and the United Way of PA held a Stimulus Funding Forum in Harrisburg with leaders of the Stimulus Oversight Commission. 160 concerned nonprofit leaders packed the room. For two solid hours nonprofits from across Pennsylvania heard State officials say they are doing everything they could to spread the word about $2 billion in stimulus competitive grants by using the state web site, www.recovery.pa.gov, by addressing nonprofits at informational forums, and by listing grant opportunities and contacts on the website under ''How Can I Get Recovery Money?''

But is this really ALL THAT CAN BE DONE? Could the process of sharing stimulus opportunity be more efficient, more effective, or more inclusive? COULD THERE A BETTER WAY to reach more potentially qualified nonprofits, or offer the same opportunity to everyone? And if there is a better way, and they know about it, and it's not too expensive, then WHY ISN'T IT BEING DONE?

After the June 22 stimulus forum, PANO was contacted by a reporter from the Allentown Morning Call. The reporter had heard our concerns and wrote the story. The article ran on Sunday June 28 in the Allentown Morning Call. Here's an excerpt:

“Small to midsize nonprofits in particular have found the process [of accessing stimulus funds] a challenge”, said David Ross, public policy officer for the Pennsylvania Association of Nonprofit Organizations. Ross would like to see the state create one central, searchable database of funding opportunities. ''If there is a competitive grant opportunity, if there are choices to be made, if organizations can qualify for some of that money, [then the opportunities should be open to all. Instead], many of them are finding the process so daunting they are not even trying,'' Ross said.

Please read the Article (6/28/09) A frustrating funding hunt for Lehigh Valley nonprofits, by Scott Krauss. Krauss raised the issue, but only scratched the surface. http://www.mcall.com/news/local/all-5nonprof.6939998jun28,0,6084517.story?page=1. 

If the problem can be fixed with a relatively simple website with a searchable database of funding opportunities, then the question why not fix it? Why not share stimulus opportunity with all who might qualify?

6/22/09 Stimulus Resources  On June 22, the Pennsylvania Charitable Nonprofit Caucus and 160 participants engaged leadership of the Stimulus Oversight Commission: General Services Secretary James Creedon, Chief Implementation Officer & Ronald J. Naples – Chairman of Governor’s Working Group for Stimulus Accountability and Chief Accountability Officer in a conversation on how to better connect nonprofits to stimulus funds. The Caucus co-sponsored this forum with the United Way of Pennsylvania to help nonprofits connect with the stimulus funds that are currently available, because charities are having difficulty identifying the over 100 funding streams in the stimulus package, satisfying the requirements and meeting the deadlines.  Here are some resources from the event:

Funding Opportunities Powerpoint
Handouts for the Forum
Handouts on Implementation
Pennsylvania State Agency Point Persons on the Stimulus

Here are some additional resources you may find helpful:

ARRA Competitive Grants
ARRA webpage for State Department of Education
Commonwealth of Pennsylvania Federal ARRA Funds Status as of 06/05/09
Department of Conservation and Natural Resources Grant Center
Department of Environmental Protection Grant Center
List of agency point persons on stimulus
MapShot: Best ARRA Funding Resources by State  The latest from the Foundation Center offers a state-by-state map with annotated links to helps nonprofits connect with ARRA funding opportunities. 
NCN Special Report #1 (2/23/09) Analysis of stimulus bill & details on specific grant areas that nonprofits can access.
NCN Special Report #2 (2/24/09) Tips, strategies and ideas on how to access stimulus money.
NCN Special Report #3 (3/3/09) How states plan to spend the stimulus money.
NCN Special Report #4 (3/3/09) State and national sources of information on stimulus money.
NCN Special Report #7 (4/14/09) Notes on White House Briefing for Nonprofits  
Pennsylvania Stimulus Oversight Commission Meeting Materials

New ARRA Stimulus Resource Directory. Are you having trouble accessing stimulus funds? Check out the latest Stimulus funding Resource Directory (2nd edition) from Congressman Joe Sestak (D-7). This Directory provides detailed information on the American Recovery and Reinvestment Act (ARRA) funds available, and offers details and web site references to help you locate the stimulus funding that’s right for your organization. While the directory is organized by federal government department distributing the various funds, it provides direct, state, regional, and local contacts of the particular opportunities. The website is updated weekly (each Friday) for new information.

Pennsylvania 7th Congressional District Federal and State Grant and Resource Directory (2nd Edition)

Multipart PDF Form:

• Table of Contents
• Pages 1-50   (http://www.sestak.house.gov/pdf/4.pdf)
• Pages 51-120
• Pages 121-170
• Pages 171-214

 Searchable PDF Form:

• PA 7th CD Federal and State Grant and Resource Directory (searchable)  or  (http://www.sestak.house.gov/pdf/searchme.pdf)

3/11/09 PA Nonprofits Have $8.3 Billion In Shovel Ready Projects. A report released by John Hopkins University’s Listening Post Project, projects that Pennsylvania nonprofits have $8.3 billion worth of infrastructure construction projects that were put on hold due to the recession. Funding these projects can stimulate the economy and help move our Commonwealth forward. If your organization has a shovel ready project in need of stimulus funds post it on the PA Recovery website at www.recovery.pa.gov. 
Listening Post Project Report

3/11/09 Guide to Accessing Stimulus Money. Do you have a nonprofit shovel-ready projects in need of stimulus money? Check out PANO’s Access Guide to Stimulus Funds. The guide includes special reports produced by the National Council of Nonprofits; details of the $787 billion Recovery Act’s stimulus provisions; and tips on how to access these funds. Check out PANO’s guide at http://capwiz.com/pano/issues/alert/?alertid=12846376&type=CU&show_alert=1.  The State Budget Office is looking for worthy projects for the stimulus money. If your organization shelved a construction project because of the recession, post your project on the State’s new website, www.recovery.pa.gov. 

3/11/09 Given the Obama Administration’s focus on public service, the funds provided in the Recovery Act, Senator Kennedy’s Serve America Act, recently introduced bills to raise the volunteer mileage rate tax deduction, pending legislation to reauthorize the Corporation for National and Community Service, and the House Committee hearing on February 25, the 4 new service bills introduced as part of “Service for All Ages” initiative, and the March 10 Senate HELP Committee hearing on “The Next Generation of Service”, volunteerism is a major issue for 2009. A nexus of legislation, initiatives and funding are building momentum in Congress. Together they will create more volunteers and more programs. But for this boost in volunteerism to be sustainable, certain structural issues like the volunteer mileage rate must be addressed. For more information go to http://www.pano.org/publicpolicy/publicpolicy-volunteerism.php.

2/11/09 Economic Stimulus Package. The US Senate passed their version on the economic stimulus package with a 61 to 37 vote. http://capwiz.com/pano/issues/bills/?bill=12521556.  Amendments to increase the volunteer mileage rate and provide bridge loan funding to nonprofits did not make it into the final version. The House and Senate versions of the stimulus package now will be combined in a joint conference committee to develop the final version. The bill is expected to be on President’s desk before Presidents Day. PANO will continue to push for bridge loan funding and continue our efforts to raise the volunteer mileage rate http://www.pano.org/publicpolicy/publicpolicy-irs_CRR.php.  PANO will provide updates on these issues.

1/29/09 Urge Senate to Include Nonprofit Bridge Loans in Stimulus Bill.  Urge Support for Nonprofit Bridge Loans Take Action! Contact Senator Specter's Office Today! Has your organization has been hurt by delays in government reimbursements? A nonprofit Bridge Loan Program can help.

The House approved an $819 billion stimulus package Wednesday night (1/28/09) by a vote of 244-188. On Tuesday, (1/27/09) the US Senate Finance and Appropriations Committees approved the markup of the American Recovery and Reinvestment Act of 2009. The Recovery Plan would create and save jobs and jumpstart our troubled economy. The bill also includes provisions that Independent Sector, National Council of Nonprofits, and PANO have been supporting, such as help for job training and education, an increase in the Medicaid matching rate, support for emergency food and shelter program, and community services and community development block grants. But an important proposal is missing from this bill: a provision for emergency bridge funding for nonprofits that are hurt by delays in government reimbursements.

On January 14, Independent Sector issued a proposal that a short-term emergency bridge funding program be added to the Recovery Bill. Government delays in reimbursement payments to nonprofits are threatening nonprofits ability to provide services to the growing numbers of Americans in need. Nonprofits nationwide are having trouble maintaining services and staff because of the ever-lengthening delays in payments from state and local governments, their inability to obtain necessary lines of credit, and declining private contributions. Approximately 18% of the annual funding that government agencies provide to nonprofit human service providers, ($15 billion) is being held in delayed reimbursements or will be delayed if the problem is not addressed quickly.

The Recovery Plan is moving quickly through Congress. The Senate will take-up the House bill immediately, and Congress could pass the final bill package by President's Day (2/16/09).

Pennsylvania's Senator Arlen Specter is a ranking member on the Senate Appropriations committee. He can help get the bridge funding proposal included in the Recovery Bill. But so far, the Senator's office has not heard from Pennsylvania nonprofits that have been effected.

If your organization has been hurt by delays in government reimbursements, CONTACT SENATOR SPECTER'S OFFICE TODAY!

Bridge loan funding would cover the $15 billion gap at relatively little cost to the federal government. By alleviating the cash flow constraints of nonprofits that provide services on behalf of governments, loans under the program would preserve the full-time jobs of over 300,000 individuals over the next two years, and prevent the loss of services to at least 7.8 million people in need. Much of this funding will be repaid to the federal government when state and local governments are able to resume their normal reimbursement procedures and schedules.

CONTACT SENATOR SPECTER'S OFFICE TODAY! If your organization has been harmed by delayed reimbursements for services provided on government contacts, we urge you to contact Senator Specter's office today. Urge them to add the emergency loan provision to the Recovery Plan. Let them know of the critical nature of the services you provide, the impact that the recession is having on your ability to provide these services, and explain how you have been impacted by delayed government reimbursements. Senator Specter's Office needs to hear from you.

Contact Senator Arlen Specter's Office using the Action Alert letter; or Call his Washington, D.C. Office: (202) 224-4254

The District offices numbers are: Philadelphia Office: (215) 597-7200 Philadelphia Office: (215) 597-7200 Erie Office: (814) 453-3010 Allentown Office: (610) 434-1444 Wilkes Barre Office: (570) 826-6265 Harrisburg Office: (717) 782-3951 Pittsburgh Office: (412) 644-3400 Scranton Office: (570) 346-2006

Details of the Bridge Loan Funding proposal visit http://www.independentsector.org/programs/gr/Nonprofit_Bridge_Loan_Program.htm.

1/27/09 US Senate Finance Committee Approves Stimulus Package, Without Bridge Loan Proposal.  The US Senate Finance Committee approved the markup of the American Recovery and Reinvestment Act of 2009 to create and save jobs and jumpstart our troubled economy.  The bill also includes help for job training and education, an increase in the Medicaid matching rate, support for emergency food and shelter program, and community services and community development block grants. But an important proposal is missing: a provision for emergency bridge funding for nonprofits that are hurt by delays in government reimbursements. 

The Recovery Package: The American Recovery and Reinvestment Act of 2009 is divided among tax cuts and targeted priority investments such as renewable energy, infrastructure spending, education funding, protecting vital services, job creation & training, not to mention healthcare, an a Medicaid matching rate increase, emergency food and shelter program support, and community services and community development block grants.  Much of this funding is critical to nonprofits and to those they serve.  While Congress has said that there will be no specific earmarks for nonprofits in this bill, nonprofits will be able to access these funds later through various agencies at the State level. Most of $825 billion will be channeled through existing government entities. For H.R.1 - the Recovery Package go to http://capwiz.com/pano/issues/bills/?bill=12521556&size=full.

Nearly every state in the country is running a budget deficit—and they can’t just borrow to pay it.  That means the Federal relief funds allocated for states' road and bridge repair is actually intended to bail out states from their economic mess.  Pennsylvania will receive $450 million of this money to help close a projected $2 billion revenue shortfall by June 2009. This money is designed to prevent States from having to drastically cut human services funding.

Next Steps: The Senate Committees approved the Recovery Plan on Tuesday (1/27/09).  Next the House is expected to vote on its version of the bill on Wednesday (1/28/09). The House version (H.R.1) will be sent to the Senate. The Senate will then take-up H.R.1, strip out all of the text and replace it with their combined text from the Senate Appropriations and Finance Committees.

Bridge Funding Proposal: On January 14, 2009, Independent Sector issued a proposal that a short-term emergency bridge funding program be added to the Recovery Bill. Government delays in reimbursement payments to nonprofits are threatening nonprofits ability to provide services to the growing numbers of Americans in need.  Nonprofits nationwide are having trouble maintaining services and staff because of the ever-lengthening delays in payments from state and local governments, their inability to obtain necessary lines of credit, and declining private contributions.  Approximately 18% of the annual funding that government agencies provide to nonprofit human service providers, ($15 billion) is being held in delayed reimbursements or will be delayed if the problem is not addressed quickly.

1/22/09 Federal Stimulus Package Approved by US House Appropriations Committee. The House Appropriations Committee approved its portion of the economic stimulus package on 1/21/09 by a vote of 35 to 22. The $825 billion American Recovery and Reinvestment Bill is divided among tax cuts and targeted priority investments ranging from renewable energy and infrastructure projects to education funding, protecting vital services, job creation, and healthcare. The House recovery proposal also includes funding for additional job training and education, an increase in the Medicaid matching rate, support for the emergency food and shelter program, and community services and community development block grants. The House Ways and Means Committee will markup the tax provisions of the House bill on 1/22/09. The Senate Appropriations and Finance Committees are expected to markup their versions of the stimulus package on Tuesday, 1/27/09.

1/21/09 New Report Details Impact of Recession on Pittsburgh Agencies.  The Pittsburgh Foundation in cooperation with four additional community foundations from Pennsylvania and Ohio released its report documenting the impact of the recession on nonprofit human services. The report outlines the significant impact that the recession is having on the nonprofit sector as it steps up as a “safety net” to individuals and families in need.  According to the study, Pennsylvania and Ohio will need an additional $3.3 billion in funding over the next two years to safeguard their social services safety net.  Pennsylvania would need some $80.3 million to support its community-based nonprofits such as food-banks and transportation assistance agencies. Read more at http://foundationcenter.org/pnd/news/story.jhtml?id=241700008.  

The Forbes Fund also released a new report; this one entitled ”Understanding the Impact of the Economic Downturn on Pittsburgh Residents and Human Service Agencies.” The study focuses on basic services, the extent of the economic crisis and recommendations for continuing on. The report was based on data that was obtained through the membership of the Greater Pittsburgh Nonprofit Partnership. The Report was shared it with the Obama administration and other elected leaders in Washington.  Download a pdf of the report at http://www.forbesfunds.org/documents/Understanding-the-Impact-of-the-Economic-Downturn.pdf.

1/19/09 The Chronicle of Philanthropy published an article that was written by board member Don Kramer and Policy Officer David Ross.  The article proposes three ways in which the Obama Administration can jumpstart the economy by stimulating the nonprofit sector.  Nonprofit organizations are economic engines for growth and development.  They should be included in any stimulus package, as well as subsequent legislation such as the Serve America Act and a new GIVE Act.  PANO’s proposals outlines three provisions: 1) temporarily allowing a double-deduction for increased giving; 2) expanding the IRA rollover for charitable giving by lowering the eligibility age to 59 ½; and 3) providing $3,000 grants for each new full-time job a nonprofit creates.  These proposals will stimulate charitable contributions and help charities maintain or expand their current programs.  I encourage you to read the article at http://philanthropy.com/news/updates/index.php?id=6844.

1/14/09 Could Nonprofit Shovel-Ready Projects Stimulate the Economy? On 12/17/08 the Washington Post and New York Times published an open letter (actually two-page ads) where 31 state universities, including Penn State, asked President-elect Obama for 5 percent of any economic stimulus package he approves. The advertisements were paid for by the Carnegie Corp. of New York (a nonprofit). Colleges and Universities are claiming that they have $40 - $45 billion in shovel-ready projects “ready to go” that will stimulate the economy and propel the nation forward. According to the advertisement, "shovel-ready" means a project that can begin within 120-180 days of the money's receipt. The colleges and universities are proposing that most of the money go to public institutions on the verge of renovating and building classrooms and research facilities. On 12/17/08 news article from the Morning Call of Allentown compared PA higher education leaders to the banking industry and auto industry execs who are looking to Washington for a bailout.

It’s been speculated that States really don’t have enough "shovel-ready" infrastructure projects to use the money they are requesting. Moreover, infrastructure investment won’t have the stimulus effect that the Administration will need to jump-start the economy. – at least not to the level that other types of activities might. Still, the Commonwealth of Pennsylvania has already budgeted for $450 million in federal relief funding. (PA needs to close a $1.6 billion revenue shortfall by June 2009, and our rainy-day funds won’t cover it.) The State plans to use the Federal bailout money to avoid drastic cuts to human service funding. So the Federal money to States is no longer a stimulus; it’s a bailout. So where will the stimulus come from, and could it come from nonprofits?

A recent study showed that foundation grants made to charities produced more than $8.50 in direct social and economic benefit for each dollar granted. This is a huge boost to the local economy. And you can’t get these kind of results through road and bridge repair. Charities are stimulus. We must invest in them.

Could nonprofits with “shovel-ready” projects be part of the stimulus package? Last month I met with a charity with a $2 million HUD project in need of $500k to complete. Rising fuel cost earlier this year caused increases in blacktop and roofing prices. Added costs stalled the project. So it sits…. “shovel-ready”, and it’s not the only one. Projects like this probably await completion throughout the country.

The question is how do nonprofits champion this shovel-ready” projects idea before February 12, without looking like the auto industry lobbying for a bailout? If you know of “shovel-ready” nonprofit projects let us know.

12/17/08 PANO Urges Obama Administration to Stimulate the Economy with Nonprofits.  As the President-Elect’s team races to identify workable economic stimulus proposals before inauguration, nonprofit leaders have answered the call. Earlier this week, PANO proposed five innovative ways to stimulate the economy through charitable service. Our five suggestions are as follows:  

1. Advance the age for IRA roll-overs to 59 1/2.

The tax provisions allowing individuals over 70 1/2 to make charitable contributions from their individual retirement accounts without recognizing income on the withdrawal have had a beneficial impact on contributions.  If the date for eligibility were lowered to 59 1/2, it would make the same benefits available for the leading edge of the baby boom and would undoubtedly provide a jolt to contributions, with the same benefits for the economy as those resulting from the enhanced deduction. For more on the current IRA rollover charitable giving incentive go to http://www.independentsector.org/programs/gr/irarollover.html.  

2. Raise the Volunteer Mileage Rate to 100% of the rate that business receives. 

The volunteer mileage rate however remains fixed at 14 cents per mile.  As of January 1, 2009, I could write-off 55 cents per mile to visit a client, 24 cents per mile to visit my physician or move my apartment to another town, but if I volunteer at the VA hospital or serve two nights each week counseling at a homeless shelter, I can only recover 14 cents per mile driven for charitable service. Gas prices will rise again.  A volunteer mileage rate deduction fixed by law at 14 cents jeopardizes charities that rely on volunteer drivers, imposes hardship on volunteers from rural America, and treats volunteers as second class citizens.  If the Obama administration is serious about promoting volunteerism for both rural and urban America, then it must  raise the volunteer mileage rate to 100% of the standard business rate. For more information on raising the volunteer mileage rate go to http://www.pano.org/publicpolicy/publicpolicy-irs_CRR.php.

3. Make $3000 grants to charities that provide new jobs.

Campaign rhetoric on the economic stimulus plan suggested that businesses will receive a $3000 tax credit for creating new jobs.  Public charities generally can not use tax credits, but they could definitely use a $3000 grant for creating new jobs or an offset to their withholding tax obligations.  These grants should probably not apply to charities exempt as “churches” so that Constitutional issues can be avoided.  Charities are a major employer across the country.  They provide services for the public benefit that government can not or will not provide.  If the new Administration is serious about creating jobs, full-time jobs, then they should stimulate job creation in a major economic sector that directly benefits the public—the nonprofit sector. 

4. Temporary double deduction for increased charitable contributions. 

Taxpayers who increase their charitable contributions should be able to claim a double charitable contribution deduction to the extent that their aggregate charitable contributions to public charities in 2009, and again in 2010, exceed the amount of such contributions in 2007. If we want money to be spent quickly, and in this country, getting new funds to cash-strapped charities is a sure way to do it.  And it has the added benefit of getting help to those served by charities who are in the greatest need. It provides major employment at a time when we need to keep and create jobs.  And by definition, it provides goods and services for the public good. 

5. Nonprofit Capacity Building Initiative (NCBI):

Capacity Building is critical to a healthy and sustainable nonprofit sector. There is a reason why the recession is impacting the nonprofit sector harder than other sectors of the economy. Nonprofits typically lack effective infrastructure and reserves necessary to weather an economic downturn.  It is typical for organizations to operate on a scale that in other industries would barely comprise a department.  Over the past year, small and mid-size nonprofits –and their employees -- have cut-back so much already, that there is nothing left to cut, but capacity, staff and core services.  It does not have to be this way.  The Nonprofit Capacity Building Initiative could be part of the solution --- to build a healthy and sustainable nonprofit sector.

For ideas from other nonprofits on how the new administration can build the economy by strengthening the sector visit OMBWatch at http://www.ombwatch.org/article/articleview/4408/.

See letter to PANO members.
See National Council of Nonprofits letter.

12/17/08 Advocacy Groups Call for Social Services Block Grant Funding.  The Child Welfare League of America and the Coalition for Human needs, are urging Congress to increase the Social Services Block Grant (SSBG) to $2.8 billion as part of the economic recovery package.  In 2008, more than 2 million jobs were lost, and more will follow. As state and local governments trim their budgets, human service funding cuts are forcing nonprofits to reduce services, cut staff, or close their doors.  This trend will worsen as the recession deepens. The severe budget shortfalls faced by states like Pennsylvania will result in further reductions or elimination of human services and the organizations that provide these services. For more information go to http://www.chn.org/takeaction/index.html.

12/16/08 Pittsburgh Area Foundations Create Emergency Fund for Distressed Charities.  Facing increased demands for their services, and decreased contributions, the economic crisis has weakened the nation’s safety net.  In Pittsburgh, families are losing their homes, workers are losing their jobs, retirement savings are being threatened, and lines are grown longer at homeless shelters, soup kitchens and food banks.  Demand for charitable services is increasing sharply, but contributions are not keeping pace.  Charities are quickly finding their resources being stretched dangerously thin-- and the recession has just begun.  According to a report by the Forbes Funds, Aid requests at Pittsburgh-area agencies have jumped 73 percent in the past six months while support for the same agencies is falling”  Read the Pittsburgh Post-Gazette article by Tim Grant http://www.post-gazette.com/pg/08351/935369-28.stm. 

12/12/08 Human service agencies take cuts in Franklin County's 2009 Budget. By Jim Cook, Public Opinion, Chambersburg, PA.  Federal and State revenue shortfalls are translating into budget cuts at the County level across the State.  Franklin County announced last week that will be cutting-back on services for children, the elderly, the disabled, the mentally ill and for substance abuse. The county contracts with nonprofit agencies to provide these services. Federal and State dollars pay for a portion of these services.  While the county has no plans to drop existing clients, the waiting list for new clients grows longer each day.  Make no mistake—Franklin County is a bellwether of Pennsylvania’s 66 other counties- both rural and urban.  Read Human service agencies take cuts in Franklin County's 2009 Budget, by Jim Cook, Chambersburg Public Opinion http://www.publicopiniononline.com/ci_11202004?source=most_emailed.

12/3/08
The Recession is Official  by David Ross, J.D.

It’s official—we are in a recession, according the National Bureau of Economic Research, and the economic decline began a year ago. The economy has been in a steady decline since December 2007.  Some speculate that the recession could be worse than the recession of the mid 1980’s.  41 states are facing budget deficits.  To prevent a possible $1 billion deficit, Pennsylvania’s Governor Rendell has implemented across-the-board spending cuts to reduce spending by $350 million , without –he claims- sacrificing crucial services.  Facing a $1 billion deficit of its own, Philadelphia is shutting-down libraries, recreation centers, swimming pools cutting funding for arts programs. Across the Commonwealth, local governments are cutting back too. And now tax reform is on the table again. Read the new Pennsylvania Budget and Policy Center Primer on state and local tax policy, the budget process, and comparative tax burdens and spending levels.

Pennsylvania Could Lose 4000 Nonprofits in 2009 by David Ross, J.D.

In two recent editorials (11/27/08 and 11/28/08) Paul Light a nonprofit sector scholar announced that within the next 6 to 24 months, more than 100,000 nonprofits will fail due to the current economic downturn.  Nationwide, there are over 1 million 501(c)(3) charitable nonprofit organizations registered with the IRS. 41,000 of them are located in Pennsylvania.  If Paul Light’s 10% failure rate is correct, then Pennsylvania should expect to lose over 4,100 mission-driven, community-based organizations.  

For nonprofits who serve the needs of the community, the situation is dire.  Charities rely on three basic funding sources: 1) government grants and contracts; 2) public contributions and foundation grants; and 3) investments and fee-for-service.  All have either decreased or are expected to decrease in 2009.  Corporations are scaling-back their donations   Not even the largest nonprofits like the Gates Foundation are immune.

Add to this pressure, the fact that smaller nonprofits are more vulnerable to economic fluctuations than are their larger counterparts.  Pennsylvania has a greater percentage of smaller charities compared to other states.  90% of Pennsylvania’s 41,000 registered 501(c)(3)’s have annual budgets under $1 million, and 86% under $500,000.  Compare these numbers to the national average of 81% under $1 million and 73% under $500,000.  To make matters worse, Pennsylvania’s smaller charities generate only 3.7% of the sector’s total revenue and control only 6.7% of the sector’s total assets.

Over the past few years, small and mid-size nonprofits have cut-back so much already, that there is often nothing left to cut, but capacity, staff and core services.  According to Paul Light in a recent Washington Post editorial, “Budgets are tight, hiring freezes are in place, and cutbacks are taking their toll on training, information technology, evaluation and even fundraising. Driven by increasing demand for basic services, many nonprofits are shorting their own employees, who are so deeply committed to their missions that they are willing to take pay cuts to help the needy. They are part of a self-exploiting workforce….”

Nonprofits Urged to Weigh-In on Second Stimulus Package by David Ross, J.D.

When the 111^th Congress convenes on January 6, 2009, a second economic stimulus package will be one of the first items on its agenda. President-Elect Obama has pledged an economic stimulus package that will jolt the economy and create 2.5 million jobs.  The stimulus package is expected to cost between $500 and $700 billion, and be ready for signature by his inauguration.  At the National Governors Association Conference this week, states requested federal funding for $136 billion in infrastructure projects, and additional funding for unemployment insurance, the food stamp program, and Medicaid.

Nonprofits are being urged to play a greater role in the planning of this economic stimulus package. Share your ideas for change, discuss them with others, and vote for your favorites at www.change.org or at www.WhiteHouse2.org (an independent website not affiliated with The White House).  For recommendations of OMBWatch to President-Elect Obama and the 111th Congress, go to http://www.ombwatch.org/article/archive/551

11/28/2008 Clothing drive organizers 'overwhelmed' by response - A clothing drive for victims of Monday's fire on East King Street is being "overwhelmed” with donations, said Victoria Connor, spokeswoman for the York-American Red Cross.

11/19/08 Nonprofits Coping With Tough Economic Times by David Ross, J.D. PANO Policy Officer:

The state Revenue Department reported that due to the national economic downturn, the state’s $281.4 million revenue collections for the third quarter of 2008 (July-September) was 4.7 percent below official projections. In response, the Governor froze hiring, banned out-of-state travel and cut spending to save approximately $200 million.  The Governor also asked the Legislature, judiciary, treasurer, attorney general, auditor general, SSHE, PHEAA and independent state agencies to reduce their spending by 4.25%.  State budget resources including 2008-2009 budgetary freeze amounts are posted at http://www.budget.state.pa.us/budget/cwp/view.asp?a=3&q=167632.  

As the economic downturn continues, many Pennsylvania municipalities will soon announce their own budget cuts and belt tightening strategies. Even the City of Philadelphia is facing major deficits. While Philadelphia’s foundations reassure their community partners that their current commitments are secure during this economic downturn, cut to libraries, swimming pools, and the arts leave many wondering how their charity will weather the storm.  Compare the 11/18/08 Pittsburgh Post-Gazette article http://www.postgazette.com/pg/08323/928726-51.stm to the 11/18/08 Philadelphia Inquirer article http://www.philly.com/inquirer/local/20081112_Charitable_foundations_feel_economic_pinch.html

http://www.nytimes.com/2008/11/11/giving/11FALLOUT.html?pagewanted=1&_r=3&ref=giving and the 11/3/08 Pittsburgh Business Times article “Nonprofits worry about ’09 budgets as economic concerns linger” http://www.bizjournals.com/louisville/othercities/pittsburgh/stories/2008/11/03/story4.html 

National Economic Vitality Center

We would like to share a special resource designed to help nonprofits cope in this severe economic downturn.

Members in the News

In sharing some hopeful thoughts on the current times, Bob Wooler, Executive Director of The Nonprofit Partnership, Erie, PA has posted his reflection on the PA sector having been to Philadelphia, Pittsburgh and Erie in his recent travels. You can read Bob’s thoughts here.    

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