Budget Plan Brings Big Changes to Tax Incentives for Donors
The tax plans that Obama aims to implement sound like a good plan to me. The fact that the change effects the top tax bracket population seems to be the main issue from the perspective of the Chronicle of Philanthropy. However, the increase in taxation seems pretty minor, I realize that these people are savvy with their money and the majority of them would likely complain of such changes, but I believe it is a necessary change. Whether it will dramatically affect the philanthropy of this group is somewhat debatable though. At this point of change, I don’t see it doing much in the nonprofit sector. With more change (in this case tax increase), it is more likely that this group will be less philanthropic. But, what I am struggling with in this reasoning is the assumption that this group cares less about their charity donations than other costly habits. It is plausible to me that their philanthropic giving may not change much with increases in taxation. Maybe I am naïve. I wonder where we could find some information on this, do you think that there have been studies that correlate the increases in taxation on the top tax bracket with their charitable giving?
Donors and Nonprofits Face a Defining Moment in Responding to a Crisis
This article discussed the need for nonprofits to engage in activities that promote jobs, including: retraining classes and workshops, hiring those who may have a harder time finding employment in the traditional market, and ultimately preparing these people for the traditional job market. I think Scott Stannard-Stockton makes a good point about the role of nonprofits in stimulating the job market. The private sector really strengthens the basic skill sets that are needed for employment, and provide individuals with second chances.
A Newly Powerful Grant-Making Force: Artist-Endowed Foundations
The artist-endowed foundations are not only growing (over the last 15 years), but also taking a public stance on issues they care about. By taking these public stances foundations, like the Warhol foundation, gain attention and build awareness about these issues, in this example about AIDS. In the art world, this type of advocacy is an essential part of the messages artist are spreading throughout their respective networks. Without a strong backing, by foundations with a conscious like the ones described in this article, their messages carry significantly less weight.
Here's an article about the rise of giving from artist-endowed foundations.
How to Do Good and Prove It: Integrate Social Impact in Your Nonprofit's DNA
I really enjoy reading about the methods of measuring effectiveness and impact of the nonprofits efforts. This concept is crucial and there are many different angles of approach depending on the nature of the organization, some are going to be easier to analyze than others. But, I think it is important to do our best to measure it no matter the difficulty of the task, and find ways that will not strain the working conditions anymore than they already are. In the article, the author describes Kevin Starr’s Impact Approach, which to me looks and sounds like measuring effectiveness, just in different words. I especially like the idea of scalability. This concept requires that the model of the nonprofit can be massively scaled up. There is one very obvious caveat to this, which is that one size (or solutions) does not fit all (or heal all). But, that mainly applies to cases that cannot be clean cut, and the models that work best are still up for debate. So when a model that works—and has been shown to work well—comes up for issues that are relatively clean cut, then scalability is an excellent requirement.
Chapters 10 & 11: Funders & Mutual Benefit
The message that I took away from this week’s chapter readings is that the interaction between nonprofits and businesses is just as important (if not more important in some cases) as their interaction with the government. Funders accumulate their funds from business sector work, and choose carefully how and where to allocate it. So much of what is provided to nonprofits comes from these funders, it is impossible to ignore the major role of both business and government in fueling nonprofit work.
I think that measuring effective is difficult but important for nonprofits to attempt. Transparency is critical for nonprofit organizations and I like the variance in measurement styles that this article presents. It is not a once size fits all deal and I agree with you that organizations should find a method that works best for them and stick with it.
ReplyDeleteI'd bet that there are studies of the philanthropy of any tax bracket, including the upper class, though I'm not sure there's anything about how that philanthropy changes with tax increases - good question! I believe Obama's tax proposals are a necessary change too, though I'm sure they will be met with opposition by the upper class constituents they're affecting, who are usually some of the most politically vocal as is. I think that if they could see the need in the nonprofit sector right now, they wouldn't be complaining.
ReplyDeleteInteresting Gina. I like your thought about wealthy actually caring about charitable giving. I know there are some people who only give for the write off but there are also people who give because they care. Having a good heart has nothing to do with how much money you have, right? I know some very well off folks who donate a lot of time and a LOT of money to March of Dimes. I do not think that anything would make them give less money because the reason they give is because their child died from birth defects. Thanks for your comment!
ReplyDeleteThe thing that interested me most about the How to Do Good and Prove it, is that it is up to the organization to narrow their mission statement down to eight words a still be sure they are getting the point across. I do not like the idea that there is one mass scale that every nonprofit is held up to and measured, but I think what Starr is purposing is the organization doing it for themselves. (Don't know if it'll work, but it might to worth a try.)
ReplyDeleteI like your perspective on the article about tax incentives for the rich. I agree that the wealthy should pay more taxes, but the way Obama's plan is set up will directly affect funding of nonprofits. One of Bob's first lectures described the idea behind charitable giving. When you itemize your taxes, giving to charity actually turns out in your favor at tax time. It benefits both taxpayers and their charities. By taking this away, the only incentive to give is a person's altruism. Obama's plan is essentially running the money that nonprofits would have received directly through the government bureaucracy. By the time it gets to the intended organization, it's diluted down so much its ineffective.
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