New Guide Star Survey Finds that Recession Continues to Hurt Nonprofit Sector

GuideStar USA, Inc., a leading source of  nonprofit information,  on August 16 announced the results of its first economic survey of public charity and private foundations in 2010.  Over 7,000 nonprofit organizations (NPO’s) were surveyed (31 in West Virginia) and it was determined that the nonprofit sector continues to experience the effects of the recent economic downturn.  The survey showed that 40% of respondents have seen a further decline in contributions in the first 5 months of this year compared to the same period in 2009.  During this decline, 63% of the NPO’s have seen an increase in demand for their services.

GuideStar’s President and CEO, Bob Ottenhoff stated “It’s more important than ever that nonprofits are transparent about their earnings and offerings so that donors and grant makers will know that their dollars are going to organizations that will use their gifts wisely.”

Highlights of the survey include:

• 8% of NPO’s reported that they were in eminent danger of closing
• 17% have reduced services; 11% have laid off employees
• 17% of organizations that use volunteers have converted one or two paid staff positions to volunteer positions
• 32% said they had increased their reliance on volunteers

To see GuideStar’s survey results visit  http://www2.guidestar.org/ViewCmsFile.aspx?ContentID=2963

As you can see from the survey it is increasing important that NPO’s maintain a competitive edge in planning, grant writing and marketing.    TEA has over 15 years experience in the non-profit management arena and currently staffs both an Executive Director and Program Manager.  We recently achieved non-profit management certification from Duke University’s non-profit management program.    TEA has extensive experience in grant writing, grant management and strategic planning and implementation.  

In WV, there are over 13,000 non-profit organizations (NPO),   this number up 25.6% from ten years ago.   NPO’s include public charities, private foundations and other groups such as social and recreational clubs and trade associations.

Protecting Land Through Conservation Easements

TEA has been fortunate to have the West Virginia Land Trust (WVLT) as a client for many years now.  Our role has been to help support and further the mission of the organization to protect special places in WV through voluntary conservation easements. The WVLT is a private non-profit organization that actively works to conserve land by undertaking or assisting with direct land transactions – primarily the acceptance of donation of conservation easements or land. There are several land trusts currently operating in WV which vary greatly in scope and scale, but the WVLT is the only statewide land trust. All land trusts, however, share the common mission of working cooperatively with land owners to protect and conserve land for its natural, recreational, scenic, historic, or productive value.

Land trusts use a variety of tools to help landowners protect their land. The most commonly used protection methods are land donations or the purchase/acceptance of conservation easements. A conservation easement is a voluntary legal agreement between a landowner and a land trust that permanently restricts certain aspects of land use in order to protect the conservation values of the property. Land owners many either donate or sell a conservation easement.  When a landowner places a conservation easement on his or her land, he or she maintains ownership and use of the property and can sell it or pass it on to heirs. The land is subject to certain restrictions agreed upon by the landowner and the land trust. Future landowners are bound by these restrictions as well, and the land trust is responsible for monitoring the property and upholding the terms of the easement.

There are many benefits to placing land in a conservation easement. Landowners get the satisfaction of knowing their land is protected in perpetuity and may also experience tax advantages such as income tax deductions, estate tax benefits, and possibly a reduction in property taxes. Land conservation can also have larger environmental benefits such as preserving water quality, wildlife habitat, and scenic view sheds.

TEA provides day-to-day support for the WVLT but also helps guide the organization strategically.  For example, TEA is currently helping the WVLT explore ways to expand partnerships with other conservation groups, like the Outdoor Heritage Conservation Fund Board, to help leverage resources.  We are also exploring new creative approaches to land conservation like mitigation banking and in-lieu fee programs.  Through these efforts, and others, TEA helps the WVLT achieve its goal of land conservation in WV.   

To learn more about conserving land in WV and how you may protect your property please visit the WVLT website or call 304-346-7788.  To learn more about how TEA can help your organization grow and thrive contact us.

Disaster Loans Available for Nonprofits in WV

The U.S. Small Business Administration (SBA) announced recently that nonprofit agencies, such as food kitchens and homeless shelters, may qualify for low-interest rate disaster loans. Nonprofit organizations can apply for funds to repair or replace assets that were damaged during the mid-December winter storm of 2009. Only organizations in the 15 disaster-declared counties are eligible – those counties include Boone, Calhoun, Clay, Fayette, Greenbrier, Kanawha, McDowell, Mingo, Nicholas, Pendleton, Pocahontas, Raleigh, Ritchie, Roane and Wyoming.

Loans are available to repair or replace homes, business properties, inventories, supplies, machinery, and equipment. Working capital loans can also be provided to assist organizations in meeting their financial obligations during the disaster recovery period. Approved loan applicants may also be eligible to receive additional funds to pay for improvements to help mitigate the impacts of future disasters.

To learn more about the loans and other SBA programs visit www.sba.gov or contact the West Virginia District Office at 304-623-5631 or wvinfo@sba.gov. The filing deadline for physical property damage is May 3. The deadline to return economic injury applications is Dec. 2.

Non-Profits – Changes for Tax Form 990

In an effort to improve compliance and to address changes in the non-profit sector, the IRS and Congress have made significant changes to Form 990. Chris McNeely, a Certified Public Accountant with the Fyffe Jones Group says that the IRS estimates that preparation time could increase by as much as 30%, which could mean higher professional fees. Prior years’ Form 990 included Schedules A & B while the new form contains sixteen schedules. Transitional rules have been provided for 2009, organizations with gross receipts less than $500,000 may file Form 990EZ. The 2008 cutoff was $1 million.

Changes on the 2009 Form include alterations in almost all sections. New questions have been implemented in Part IV, Checklist of Required Schedules and Part XI, Financial Statements Reporting. Also for 2009 a new glossary definitions in the Instructions has been included. McNeely suggests that the additional requirements in Part III, Statement of Program Service can provide non-profit organizations a useful marketing tool.

For a complete listing of changes visit the IRS website:
http://www.irs.gov/charities/article/0,,id=218938,00.html.

The filing deadline for calendar year non-profits is May 17, 2010.

WV Receives Grant Monies to Increase CHIP & Medicaid Enrollment

In September 2009 the U.S. Department of Health and Human Services announced $40 million in grants to 69 grantees in 41 states and the District of Columbia to help them find and enroll children who are uninsured but eligible for either Medicaid or the Children’s Health Insurance Program (CHIP). Over $300,000 of those funds were earmarked for the West Virginia Alliance for Sustainable Families (WVASF) and its partners including: the West Virginia Healthy Kids and Families Coalition, the Partners in Health Network, the Partnership for African American Churches, and South Central Educational Development.

Terrell Ellis and Associates (TEA) is responsible for the WVASF portion of the grant which is to provide overall administration and also to coordinate the outreach and enrollment activities at the volunteer income tax assistance sites throughout the state as the eligibility guidelines for the earned income tax credit (EITC) and CHIP very similar there is expected to be a lot of overlap with clients.

Other outreach and enrollment is being done by the other partners through health care providers at local clinics and hospitals throughout the state and at the grass roots level through faith based community organizations.

For more information on the expansion efforts, contact Calah Young at Terrell Ellis & Associates, Inc., (304) 342-6972.