DARLING NONPROFIT
NEWSLETTER
MARCH 2010 - ISSUE # 9
Nonprofits
need to be aware of Their Mission
It is
important for all nonprofit leaders to take a real close look at the Provena
Covenant Medical Center v The Department of Revenue ruling. In the Provena
case, the Illinois Supreme Court upheld the right of Illinois to deny a
hospital tax exemption deduction on the ground that the hospital had failed to
provide sufficient charitable work.
The central issue in this case is
whether Provena Hospitals established that it was entitled to a charitable
exemption under section 15–65 of the Property Tax Code (35 ILCS 200/15–65 (West
2002)) for the 2002 tax year for various parcels of real estate it owns in Urbana.
In the opinion it was detailed that the Illinois statute, eligibility for a
charitable exemption under section 15–65 of the Property Tax Code (35 ILCS 200/15–65
(West 2002)) requires not only charitable ownership, but charitable use.
Specifically, an organization seeking an exemption under section 15–65 must
establish that the subject property is “actually and exclusively used for
charitable or beneficent purposes, and not leased or otherwise used with a view
to profit.”35 ILCS 200/15–65 (West 2002). When the law says that property must
be “exclusively used” for charitable or beneficent purposes, it means that
charitable or beneficent purposes are the primary ones for which the property
is utilized. Secondary or incidental charitable benefits will not suffice, nor
will it be enough that the institution professes a charitable purpose or
aspires to using its property to confer charity on others. “[S]tatements of the
agents of an institution and the wording of its governing legal documents evidencing
an intention to use its property exclusively for charitable purposes will not
relieve such institution of the burden of proving that its property actually
and factually is so used.” Methodist Old Peoples Home v. Korzen, 39 Ill. 2d at 157.
The court when on to conclude that in
the case, the record clearly established that the primary purpose for which the
PCMC property was used was providing medical care to patients for a fee.
Always Keep Your Eye on Your purpose
The nonprofit community is under local attack by cities,
counties and states to get tax revenue from nonprofits that are also
struggling. These governmental agencies are coming up with creative ways of
extracting revenue from nonprofit. Charging fees as oppose to taxes has been a
major tool used by municipalities. The Provena ruling now provide municipal
government a major weapon to go after nonprofits that are not strictly adhering
to their mission of providing charity.
An excellent article was written by Rick Cohen
for blueavocado.org, March 14, 2010 entitled, Attack on the Tax-Exemption killers
can be viewed here. http://www.blueavocado.org/content/attack-tax-exemption-killers
Darling Nonprofit
Consultant can help you Achieve Your Vision, Reach Your Mission!
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Quotes of the Moment
·
Leadership
is doing what is right when no one is watching.-George Van Valkenburg
·
I choose to
focus on not what has happened but what we can do. - Ellen Pom
·
And while the law of competition may be sometimes hard for the
individual, it is best for the race, because it ensures the survival of the
fittest in every department.–Andrew Carnegie
·
We live in a moment of history where change is so speeded up that
we begin to see the present only when it is already disappearing.– R. D. Lang
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Tips and Things Too Ponder:
Has Your Nonprofit taken a Good
Look at Its Future?
Many
nonprofit refuse to take a hard look at its future, instead they have chosen to
bury their head in the sand, rather than dealing with some of the touch choices
they will have to make in order to survive and thrive. What’s your organization
future and what steps are you presently taking to deal with this matter.
What other reason do you contact
donors other than for fundraising?
There many
reasons other than fundraising that you should contact donors. What are your
reasons? Create a list of reasons and utilize those reasons to stay in contact
with your donors.
Are you using social network as
your choice for communication?
Social networking has huge communities of people sharing
information with each other. There are many experts who suggest that social
networking is a much more effective way of communicating than emails. However
there are others that say social networking should be used as an adjunct to email, rather than a
replacement. Both media have their own strengths, and a place in a
communications vehicle. I would like to know your organization point on this
matter.
=========================================================.
Announcements
Founder Larry Jones Voted Off Feed The
Children’s Board
Jones had been fired this past November, less than three months after
giving up control of the organization he started 30 years ago.
See http://www.nptimes.com/10Mar/news-100319-1.htm
Acorn will close its operation
Acorn, a nationwide charitable organization has just recently decided
to close its operation due to the negative publicity it received during the
presidential election campaign which has resulted in the lost of substantial
funding. The New York time reports, Acorn battered politically from the right
and suffering from mismanagement along with a severe loss of government and
other funds, is on the verge of filing for bankruptcy. “For ACORN as a national organization, our vindication
on the facts doesn’t necessarily pay the bills,” said CEO Bertha Lewis in a
written statement. The California and
New York chapters, two of the largest, have severed their ties to the national
group and have independently reconstituted themselves with new names.
ACORN Closing Its Doors, Chapters Might Re-Emerge
Chicago-based community organizing group ACORN, which has
been under numerous investigations, including being the subject of a video
sting operation, announced it would close its doors on April 1. http://www.nptimes.com/10Mar/news-100323-1.html
Foundations
Play Key Role in Remaking Detroit
Philanthropic dollars
are seeding the reinvention of Detroit. The project's seed money is a $35
million grant from Kresge."The foundations are making investments to
augment the capacity of government," says Bruce Katz, founding director of
the Metropolitan Policy Program at Brookings. "They're pooling funds to
take on a monumental task, which is, How do you begin to change the trajectory
of an entire metropolitan economy?" The Kresge Foundation, in Michigan, is paying for a prominent
urban planner and a team of consultants to work with city planners on an effort
to downsize Detroit. http://www.time.com/time/world/article/0,8599,1972926,00.html
Nicola
Goren the former acting chief is moving on to become President of the
Washington Area Women’s Foundation. Former National-Service Acting Chief Executive
Moves On
Facebook Co-Founder Starts
Philanthropic Social-Networking Site
Chris Hughes co-founded the
social-networking giant with two roommates as a Harvard undergraduate, and
later served as director of online organizing for Barack Obama’s 2008
presidential campaign. Announced that his next project will be Jumo, a new social network set to start in the fall that
will help people find causes and nonprofit organizations that they care about.
Read More: http://philanthropy.com/article/Facebook-Co-Founder-Starts/64754/?sid=&utm_source=&utm_medium=en
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