Greater Pittsburgh Nonprofit Partnership

Semi-Annual Member MeetingWednesday June 22 2011Wednesday, June 22, 2011

8:00AM – 10:00 AM

Today’s AgendaToday’s AgendaBreakfast + NetworkingW l C ll F d Th M t i Welcome Colleen Fedor, The Mentoring

Partnership, chair GPNP Advisory TeamImplications of the changing charitable giving incentives in the federal tax code

Ron Kramer, Schneider Downsincentives in the federal tax code

PA Budget Update Laura Maines, Wesley Spectrum

Committee Reports Bernadette Turner, Addison Behavioral Care

2012 Dues Change Dave Coplan, Human Services Center C tiCorporation

Closing Diana Bucco, The Forbes Funds

Workshops – 10:15 to 11:15 Advocacy 101, Joe Geiger, PANOTechnology, Joe Polk, Penn State

Ron Kramer Schneider DownsRon Kramer, Schneider Downs

Implications of the changing h it bl i i i ti i th charitable giving incentives in the

federal tax code

The Charitable Contribution D d tiDeductions Section 170(a) of the Internal Revenue Code (“IRC”) provides a tax deduction

for any charitable contribution (as defined in IRC Section 170(e)) to or for the y ( ( ))use of certain nonprofit organizations

Under the general rule of IRC Section 170(b)(1)(A), an individual’s tax deduction for charitable contributions to public charities and private operating foundations is limited to 50% of their contribution base (generally adjusted foundations is limited to 50% of their contribution base (generally adjusted gross income “AGI”) for the year

A 30% limitation applies to contributions to semi-public charities and private foundations and to contributions of capital gain property to public charities

Contributions of appreciated property to semi-public charities and private foundations are deductible only up to 20% of the donor’s contribution base (AGI)

The charitable contribution deduction for a C corporation is limited to 10 The charitable contribution deduction for a C corporation is limited to 10 percent of its taxable income for the year

Both individuals and corporations may carry over to the five succeeding taxable years any amount of charitable contributions that exceed the deduction limitationslimitations

PA BUDGET: WHERE ARE WE NOW?WHERE ARE WE NOW?• In late May, HB1485, the budget proposal of the PA House of Representatives, passed by a

vote of 109-92 virtually along party lines. Although the House budget follows the Governor’s proposed budget by keeping funding at $27 3 billion it shifts funds through various cuts and proposed budget by keeping funding at $27.3 billion, it shifts funds through various cuts and restorations. The House bill does not include the use of the $544 million in unexpected, additional revenue.

• The Senate has begun work on the budget bill, and Senators generally would like to pass a The Senate has begun work on the budget bill, and Senators generally would like to pass a budget bill by this week. However, Governor Corbett has indicated that any budget coming in even slightly above his proposed $27.3 would be vetoed.

• While the House budget adhered to the Governor’s $27.3, the Senate has indicated a illi t li htl th t b S ifi ll J 13 2011 H i b willingness to move slightly on that number. Specifically, on our June 13, 2011 Harrisburg

visits, it was clear that both the Senate and the House are open to using the $544 additional revenue. However, all indicated trepidation that the Governor would support such a use of the additional revenue.

• The Senate’s budget has yet to be made public and the word is that once it is made public, it should be considered final.

• Although Representatives and Senators continue to indicate that the budget will be l t d ti thi i i di i f th dditi l ll completed on time this year, increasing discussion of the additional revenue, as well as

debate regarding potential plans to include a fee on natural gas drillers may delay the budget into July.

Key Advocacy AreasKey Advocacy AreasEarly Childhood

Education Arts & Culture Community & Economic Development WelfareEducation

• Restore quality child care subsidies, cuts to Pre-K classrooms funded through accountability block

• Restore the 70% cuts to arts funding to leverage another $8 million to serve over 840 000 children and

Development

• Restore funds to Main Street and Elm Street programs that have proven to be effective in creating tax base

• Restoring funding to Medicare/Medicaid, family support centers, afterschool assistance in homeless shelters accountability block

grant, state funding for TEACH scholarships, Keystone STARS award

840,000 children and youth

in creating tax base and transform neighborhoods

in homeless shelters and other programs under DPW that are critical to our community well being

Invest in Our Future! Cutting many of these cost cutting measures will cause explosive increases in the future. Average cost per child through Family Support Centers is $1,610 compared to the average cost per year to house a state p g p yprisoner of $22,650.

Why Cut What Works? Now is Not the Time!Why Cut What Works? Now is Not the Time!

Current Efforts and Next StepsCurrent Efforts and Next Steps District and Harrisburg Visits with Legislators What are the consequences and the impacts of the reduction in

funding to vital services? Spend now for future cost savings – destroying existing infrastructure p g y g g

will obliterate necessary services now as well as in the future. June 13, 2011 Hill visits Action Alerts Web site updates text messaging mobile platform Action Alerts, Web site updates, text messaging, mobile platform

WHY CUT WHAT WORKS? PA Budget Watch Seriesudget atc Se es May 18 rally in Market Square, Downtown Press Conference June 9, 2011 at Family Resources

Membership CommitteeMembership Committee

316 Members

43 New Members2011 Membership2011 Membership

93% Retention Rate!

Membership CommitteeMembership Committee

Membership CommitteeMembership Committee

Communications + Public PolicyCommunications + Public Policy

Communications + Public PolicyCommunications + Public Policy

Communications + Public PolicyCommunications + Public Policy

Communications + Public PolicyCommunications + Public Policy

2012 Dues Changes2012 Dues Changes Strategic Plan calls for more active public policy and advocacy

d t k i ifi t i t i th iagenda to make a significant impact in the region. To accomplish this, we need to have additional income to

support skilled staff.support skilled staff. Past 6 years, member dues have accounted for < 50% of total

budget; additional expenses have been covered by The Forbes ( $ )Funds (2011 member dues = $31,200).

Just as our members are moving towards financial self-sufficiency we must move in that direction as wellsufficiency, we must move in that direction as well.

Three-pronged approach to income generation: Member Dues, Sponsorships + Foundation Grants.

2012 Dues Structure2012 Dues Structure

Operating BudgetCurrent

Dues 2012 Dues Increase in Fee

proposed for 2012 0-$999k $100 $100 0%0-$999k $100 $100 0%$1M-$4M $100 $200 100%$4M-$10M $100 $300 200%>$10M $100 $500 400%Associate Members $100 $500 400%

Additional ConsiderationsAdditional Considerations Associate Members – potentially two levels of membership

based on annual income.

S h l hi S t b d ill h Scholarship Support – members and sponsors will have the opportunity to contribute to scholarship fund.

Your input + comments are welcome and encouraged. Please connect with staff. ease co ect t sta

Stay Tuned!Stay Tuned! Continuous updates on the PA State Budget.

Member orientation session on July 6th from 8:30AM to 9 30AM h t d b A h Sh t JF&CS d 9:30AM hosted by Aryeh Sherman at JF&CS – new and existing members are encouraged to attend.

Please complete your meeting evaluation and leave it at the registration desk. t e eg st at o des

W k h D t ilWorkshop Details

Workshops 10:15 to 11:15Workshops 10:15 to 11:15 Advocacy 101, Joe Geiger, Executive Director, PANO in

ALC 2 which is located up one level and you can take the stairs or the elevator.

Technology, Joe Polk, Senior Technical Specialist with the Pennsylvania Technical Assistance Program (PennTAP) Pennsylvania Technical Assistance Program (PennTAP) Penn State University, in the Falk Library which is just across the main hallway.