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Bass" <[email protected]> 05/21/99 05:33:45 PM Record Type: Record To: Lisa Green/OPD/EOP CC: Subject: Meeting on Nonprofit Sector Issues on 5/28 Lisa: Sorry I'm so late in getting back to you about the Friday, May 28 meeting at 10 a.m. regarding nonprofit sector issues. (This is even later because the email I sent earlier bounced -- I had the wrong address.) We are definitely on and here is information about the meeting. Participants The meeting will include: Audrey Alvarado, Executive Director, National Council of Nonprofit Associations - NCNA is comprised of statewide nonprofit associations throughout the country. Unlike IS, its membership is primarily comprised of state and community-based organizations. Audrey is just starting as the executive director. Gary Bass, Executive Director, OMB Watch - OMB Watch works on a range of government accountability issues and advocates greater citizen participation. We have taken a lead role in protecting the advocacy voice of nonprofit organizations and serve as co-chair of the Let America Speak coalition, the group that mobilized a response to the Istook amendment to cut off the advocacy voice of nonprofits. Kate Conover, Deputy Director, National Committee for Responsive Philanthropy - NCRP works to make philanthropy more responsive to the needs of low-income and disadvantaged populations, and advocates greater philanthropic accountability. Matt Hamill, Vice President for Public Policy, Independent Sector - Independent Sector is the leading representative of national nonprofit organizations, foundations and corporate giving programs. IS is a co-chair of the Let America Speak coalition. Bristow Hardin, Director, The Union Institute's Center for Public Policy - Bristow works with Mark Rosenman and supervises much of their nonprofit-focused activity. Patrick Lemmon, Manager, OMB Watch's Community Education Center - The Center works with nonprofit groups around the country on public policy matters of concern to nonprofits. Mark Rosenman, Vice President, The Union Institute - This is an academic center in Ohio. Mark runs the DC policy and research center, and is a leader on nonprofit sector issues. Purpose of Meeting This meeting is a follow-up to a meeting with had with Audrey Choi earlier this month while she was still in the Vice President's office. She suggested the meeting with you. The basic purpose of the meeting is to build stronger relationships with the Administration and identify ways to work collaboratively. We will provide a brief review of our history with the Clinton Administration on such matters. We can then provide background on each of the organizations and current or looming policy issues. These policy issues will likely cover: tax incentives to increase charitable giving; attempts to use the tax code (credits) to steer charitable giving to "approved" nonprofits; initiatives to limit nonprofit advocacy; impact of devolution on nonprofits; occasional calls from the corporate sector to deny nonprofits tax advantages in "competing" as service deliverers; streamlining and rationalizing grant processes; and increasing opportunities for public participation in policy-making. If you have any questions, you can reach me directly or through Barb Western at (202) 234-8494. I'll send you everyone's birthdate and social security number as soon as I have them. Gary D. Bass OMB Watch 1742 Connecticut Ave., N.W. Washington, D.C. 20009 TEL: (202) 234-8494 FAX: (202) 234-8584 E-mail: Gary D. Bass <[email protected]> Web: http://www.ombwatch.org Date: 05/21/99 Time: 16:33:45 Sarah Rosen Wartell 05/07/99 07:11:04 PM Record Type: Record To: Audrey Choi/OVP@OVP CC: See the distribution list at the bottom of this message bcc: Subject: Re: meeting with non profit sector I think the point about the non-profit sector not feeling they have a voice at the WH needs to be raised with OPL. Maureen Shea did religious groups but obviously that is a slightly different perspective than nonprofits generally. It also strikes me that DPC has lots of the social service issues that this group cares about. Not sure who there is the right person. Finally, should Spotilla or OIRA/OMB meet with them about their concerns about rulemaking and grants process? Let me know if I can help with anythying. Audrey Choi@OVP Audrey Choi@OVP 05/07/99 05:21:32 PM Record Type: Record To: See the distribution list at the bottom of this message CC: Subject: meeting with non profit sector As you may recall, we had a meeting earlier this week with a number of representatives of nonprofit organizations and to discuss issues that affect them as a sector. These included such issues as tax incentives to increase charitable giving, tax credits to steer charitable giving toward approved non profits, streamlining grant processes, and increasing opportunities for public participation in policy making. I thought you might be interested in a quick update on who was there and the issues that they raised. Present at the meeting were Matt Hamill, Vice President for Public Policy, Independent Sector Anne Babcock, Director of Government Relations, Council on Foundations Jane Robinson Ward, Director of Public Policy, National Council of Nonprofit Associations Alison Wiley, Executive Director, Forum of Regional Associations of Grantmakers Gary Bass, Executive Director, OMB Watch Bristow Hardin, Director, The Union Institute's Center for Public Policy - Mark Rosenman, Vice President, Social Responsibility, The Union Institute One of the main points they raised is the need for a point person(s) within the White House to track and follow their issues as a sector. As their issues span education, welfare, community development, poverty, philanthropy et al, they often get bounced around between different policy people at DPC, NEC, OVP, but there is no one who is an ongoing contact for them for issues such as tax credits that can have a broad effect on the entire sector. As the non-profit sector represents between 6%-11% of GDP (depending on the estimates used), it seems a fairly significant portion of the economy for us to address as a sector. Here are a couple of interesting points they raised. Tax Incentives: many non profits suffer adversely when state or federal legislation propose to install tax credit programs that reward giving to only direct service organizations but not organizations that do advocacy. At the federal government level, last year's reauthorization said that the community services block grant can be used to offset tax credits at the state level - hurting non profits that are not direct service organization. Govt reinvention has enormous impact on nonprofits (e.g., devolution and competition), i.e. ed-flex, the older Hatfield bill, and GPRA as examples. The modification of Circular A-110 to make grantee "data" available through FOIA potentially opens up non profits up to crippling FOIA requests. The Admininstration apparently was not engaged in trying to stop the rider, and they claim OMB's rule is only partially helpful. The grant streamlining bill. A bill has passed the House to develop uniform grant application and reporting forms, and to streamline the grant process by using electronic means. The Administration has provided some support but not yet been terribly active. The importance of investing in unmet needs with budget surplus (e.g., there are I in 5 kids in poverty today whereas only I in 7 were in poverty 25 years ago; drinking water systems serving 50 million Americans violate health regulations and standards). 1 realize that these issues don't fall squarely in any one person's portfolio. However, given the importance of the sector and the many ways in which we rely on them as partners in a number of our initiatives, I thought it would be worth raising these issues and seeing if at some point we could caucus about the most time efficient and effective way to make sure we are least well informed of their concerns and issues and figure out who might be the best contact(s) for them in the building. Hope this is somewhat helpful. Thanks, AC Message Sent To: David W. Beier/OVP@OVP Alvin Brown/OVP@OVP Morley A. Winograd/OVP@OVP Lee Ann Brackett/OVP@OVP Sarah Rosen Wartell/OPD/EOP@EOF Lisa Green/OPD/EOP@EOP Dee Lee/OMB/EOP@EOP Message Copied To: david W. beier/ovp@ovp alvin brown/ovp@ovp morley a. winograd/ovp@ovp lee ann brackett/ovp@ovp lisa green/opd/eop@eop dee lee/omb/eop@eop Sally Katzen/OPD/EOP@EOP Audrey Choi@OVP 05/07/99 05:21:32 PM Record Type: Record To: See the distribution list at the bottom of this message CC: Subject: meeting with non profit sector As you may recall, we had a meeting earlier this week with a number of representatives of nonprofit organizations and to discuss issues that affect them as a sector. These included such issues as tax incentives to increase charitable giving, tax credits to steer charitable giving toward approved non profits, streamlining grant processes, and increasing opportunities for public participation in policy making. I thought you might be interested in a quick update on who was there and the issues that they raised. Present at the meeting were Matt Hamill, Vice President for Public Policy, Independent Sector Anne Babcock, Director of Government Relations, Council on Foundations Jane Robinson Ward, Director of Public Policy, National Council of Nonprofit Associations Alison Wiley, Executive Director, Forum of Regional Associations of Grantmakers Gary Bass, Executive Director, OMB Watch Bristow Hardin, Director, The Union Institute's Center for Public Policy - Mark Rosenman, Vice President, Social Responsibility, The Union Institute One of the main points they raised is the need for a point person(s) within the White House to track and follow their issues as a sector. As their issues span education, welfare, community development, poverty, philanthropy et al, they often get bounced around between different policy people at DPC, NEC, OVP, but there is no one who is an ongoing contact for them for issues such as tax credits that can have a broad effect on the entire sector. As the non-profit sector represents between 6%-11% of GDP (depending on the estimates used), it seems a fairly significant portion of the economy for us to address as a sector. Here are a couple of interesting points they raised. Tax Incentives: many non profits suffer adversely when state or federal legislation propose to install tax credit programs that reward giving to only direct service organizations but not organizations that do advocacy. At the federal government level, last year's reauthorization said that the community services block grant can be used to offset tax credits at the state level - hurting non profits that are not direct service organization. Govt reinvention has enormous impact on nonprofits (e.g., devolution and competition), i.e. ed-flex, the older Hatfield bill, and GPRA as examples. The modification of Circular A-110 to make grantee "data" available through FOIA potentially opens up non profits up to crippling FOIA requests. The Admininstration apparently was not engaged in trying to stop the rider, and they claim OMB's rule is only partially helpful. The grant streamlining bill. A bill has passed the House to develop uniform grant application and reporting forms, and to streamline the grant process by using electronic means. The Administration has provided some support but not yet been terribly active. The importance of investing in unmet needs with budget surplus (e.g., there are I in 5 kids in poverty today whereas only I in 7 were in poverty 25 years ago; drinking water systems serving 50 million Americans violate health regulations and standards). I realize that these issues don't fall squarely in any one person's portfolio. However, given the importance of the sector and the many ways in which we rely on them as partners in a number of our initiatives, I thought it would be worth raising these issues and seeing if at some point we could caucus about the most time efficient and effective way to make sure we are least well informed of their concerns and issues and figure out who might be the best contact(s) for them in the building. Hope this is somewhat helpful. Thanks, AC Message Sent To: David W. Beier/OVP@OVP Alvin Brown/OVP@OVP Morley A. Winograd/OVP@OVP Lee Ann Brackett/OVP@OVP Sarah Rosen Wartell/OPD/EOP@EOF Lisa Green/OPD/EOP@EOP Dee Lee/OMB/EOP@EOP Non - Progits Sectoral (58ue inject per profits/ Audrey Choi@OVP 05/07/99 07:17:08 PM - corduction w/ Treasury Record Type: Record 2 To: Sarah Rosen Wartell/OPD/EOP@EOF CC: See the distribution list at the bottom of this message bcc: Subject: Re: meeting with non profit sector OPL would be a great solution to help them feel they have more of a voice. on the substance side, it seemed that while DPC has a lot of the issues that the individual non-profits care about, the things that the sector as a whole seems to be most affected by are some of the financial and tax issues -- i.e tax credits, revisions that would let high net worth individuals roll an ira over into a foundation or charity without taxes, etc. -- that might also be relevant for someone who deals with treasury/omb/irs. Sarah Rosen Wartell@EOP Sarah Rosen Wartell@EOP 05/07/99 07:11:04 PM Record Type: Record To: Audrey Choi/OVP@OVP CC: See the distribution list at the bottom of this message bcc: Subject: Re: meeting with non profit sector I think the point about the non-profit sector not feeling they have a voice at the WH needs to be raised with OPL. Maureen Shea did religious groups but obviously that is a slightly different perspective than nonprofits generally. It also strikes me that DPC has lots of the social service issues that this group cares about. Not sure who there is the right person. Finally, should Spotilla or OIRA/OMB meet with them about their concerns about rulemaking and grants process? Let me know if I can help with anythying. Audrey Choi@OVP Audrey Choi@OVP 05/07/99 05:21:32 PM Record Type: Record To: See the distribution list at the bottom of this message CC: Subject: meeting with non profit sector As you may recall, we had a meeting earlier this week with a number of representatives of nonprofit organizations and to discuss issues that affect them as a sector. These included such issues as tax incentives to increase charitable giving, tax credits to steer charitable giving toward approved non profits, streamlining grant processes, and increasing opportunities for public participation in policy making. I thought you might be interested in a quick update on who was there and the issues that they raised. Present at the meeting were Matt Hamill, Vice President for Public Policy, Independent Sector Anne Babcock, Director of Government Relations, Council on Foundations Jane Robinson Ward, Director of Public Policy, National Council of Nonprofit Associations Alison Wiley, Executive Director, Forum of Regional Associations of Grantmakers Gary Bass, Executive Director, OMB Watch Bristow Hardin, Director. The Union Institute's Center for Public Policy - Mark Rosenman, Vice President, Social Responsibility, The Union Institute One of the main points they raised is the need for a point person(s) within the White House to track and follow their issues as a sector. As their issues span education, welfare, community development, poverty, philanthropy et al, they often get bounced around between different policy people at DPC, NEC, OVP, but there is no one who is an ongoing contact for them for issues such as tax credits that can have a broad effect on the entire sector. As the non-profit sector represents between 6%-11% of GDP (depending on the estimates used), it seems a fairly significant portion of the economy for us to address as a sector. Here are a couple of interesting points they raised. Tax Incentives: many non profits suffer adversely when state or federal legislation propose to install tax credit programs that reward giving to only direct service organizations but not organizations that do advocacy. At the federal government level, last year's reauthorization said that the community services block grant can be used to offset tax credits at the state level - hurting non profits that are not direct service organization. Govt reinvention has enormous impact on nonprofits (e.g., devolution and competition), i.e. ed-flex, the older Hatfield bill, and GPRA as examples. The modification of Circular A-110 to make grantee "data" available through FOIA potentially opens up non profits up to crippling FOIA requests. The Admininstration apparently was not engaged in trying to stop the rider, and they claim OMB's rule is only partially helpful. The grant streamlining bill. A bill has passed the House to develop uniform grant application and reporting forms, and to streamline the grant process by using electronic means. The Administration has provided some support but not yet been terribly active. The importance of investing in unmet needs with budget surplus (e.g., there are I in 5 kids in poverty today whereas only I in 7 were in poverty 25 years ago; drinking water systems serving 50 million Americans violate health regulations and standards). I realize that these issues don't fall squarely in any one person's portfolio. However, given the importance of the sector and the many ways in which we rely on them as partners in a number of our initiatives, I thought it would be worth raising these issues and seeing if at some point we could caucus about the most time efficient and effective way to make sure we are least well informed of their concerns and issues and figure out who might be the best contact(s) for them in the building. Hope this is somewhat helpful. Thanks, AC Message Sent To: David W. Beier/OVP@OVP Alvin Brown/OVP@OVP Morley A. Winograd/OVP@OVP Lee Ann Brackett/OVP@OVP Sarah Rosen Wartell/OPD/EOP@EOP Lisa Green/OPD/EOP@EOP Dee Lee/OMB/EOP@EOP Message Copied To: david W. beier/ovp@ovp alvin brown/ovp@ovp morley a. winograd/ovp@ovp lee ann brackett/ovp@ovp lisa green/opd/eop@eop dee lee/omb/eop@eop Sally Katzen/OPD/EOP@EOP Message Copied To: Sally Katzen/OPD/EOP@EOP David W. Beier/OVP@OVP Alvin Brown/OVP@OVP Morley A. Winograd/OVP@OVP Lee Ann Brackett/OVP@OVP Dee Lee/OMB/EOP@EOP Lisa Green/OPD/EOP@EOP David W. Beier@OVP 05/08/99 11:15:14 AM Record Type: Record To: Audrey Choi/OVP@OVP CC: See the distribution list at the bottom of this message Subject: Re: meeting with non profit sector If possible, it would be good to set them up with OIRA as well as DPC> Message Copied To: sarah rosen wartell/opd/eop@eop sally katzen/opd/eop@eop alvin brown/ovp@ovp morley a. winograd/ovp@ovp lee ann brackett/ovp@ovp dee lee/omb/eop@eop lisa green/opd/eop@eop Audrey Choi@OVP 05/07/99 05:21:32 PM Record Type: Record To: See the distribution list at the bottom of this message CC: Subject: meeting with non profit sector As you may recall, we had a meeting earlier this week with a number of representatives of nonprofit organizations and to discuss issues that affect them as a sector. These included such issues as tax incentives to increase charitable giving, tax credits to steer charitable giving toward approved non profits, streamlining grant processes, and increasing opportunities for public participation in policy making. I thought you might be interested in a quick update on who was there and the issues that they raised. Present at the meeting were Matt Hamill, Vice President for Public Policy, Independent Sector Anne Babcock, Director of Government Relations, Council on Foundations Jane Robinson Ward, Director of Public Policy, National Council of Nonprofit Associations Alison Wiley, Executive Director, Forum of Regional Associations of Grantmakers Gary Bass, Executive Director, OMB Watch Bristow Hardin, Director, The Union Institute's Center for Public Policy - Mark Rosenman, Vice President, Social Responsibility, The Union Institute One of the main points they raised is the need for a point person(s) within the White House to track and follow their issues as a sector. As their issues span education, welfare, community development, poverty, philanthropy et al, they often get bounced around between different policy people at DPC, NEC, OVP, but there is no one who is an ongoing contact for them for issues such as tax credits that can have a broad effect on the entire sector. As the non-profit sector represents between 6%-11% of GDP (depending on the estimates used), it seems a fairly significant portion of the economy for us to address as a sector. Here are a couple of interesting points they raised. Tax Incentives: many non profits suffer adversely when state or federal legislation propose to install tax credit programs that reward giving to only direct service organizations but not organizations that do advocacy. At the federal government level, last year's reauthorization said that the community services block grant can be used to offset tax credits at the state level - hurting non profits that are not direct service organization. Govt reinvention has enormous impact on nonprofits (e.g., devolution and competition), i.e. ed-flex, the older Hatfield bill, and GPRA as examples. The modification of Circular A-110 to make grantee "data" available through FOIA potentially opens up non profits up to crippling FOIA requests. The Admininstration apparently was not engaged in trying to stop the rider, and they claim OMB's rule is only partially helpful. The grant streamlining bill. A bill has passed the House to develop uniform grant application and reporting forms, and to streamline the grant process by using electronic means. The Administration has provided some support but not yet been terribly active. The importance of investing in unmet needs with budget surplus (e.g., there are 1 in 5 kids in poverty today whereas only I in 7 were in poverty 25 years ago; drinking water systems serving 50 million Americans violate health regulations and standards). I realize that these issues don't fall squarely in any one person's portfolio. However, given the importance of the sector and the many ways in which we rely on them as partners in a number of our initiatives, I thought it would be worth raising these issues and seeing if at some point we could caucus about the most time efficient and effective way to make sure we are least well informed of their concerns and issues and figure out who might be the best contact(s) for them in the building. Hope this is somewhat helpful. Thanks, AC Message Sent To: David W. Beier/OVP@OVP Alvin Brown/OVP@OVP Morley A. Winograd/OVP@OVP Lee Ann Brackett/OVP@OVP Sarah Rosen Wartell/OPD/EOP@EOP Lisa Green/OPD/EOP@EOP Dee Lee/OMB/EOP@EOP University of Colorado at Denver Graduate School of Public Affairs Campus Box 142 P.O. Box 173364 Denver, Colorado 80217-3364 Location: 1380 Lawrence Street Suite 500 Phone: (303) 556-5970 INCVA Fax: (303) 556-5971 National Council of Nonprofit Associations Audrey R. Alvarado, Pb.D. Executive Director 1900 L Street NW, Suite 605, Washington, DC 20036 June 14, 1999 (202) 467-6262 Fax: (202) 467-6261 E-mail: [email protected] Web: www.ncna.org Ms. Lisa Green Senior Advisor National Economic Council The White House Washington, DC Dear Lisa, It was a pleasure to meet you at our meeting of May 28, 1999 to discuss ways to enhance communication between the Clinton administration and the nonprofit community. It does sound like you have a full agenda that will definitely keep you busy. I mentioned some statistics during our meeting about the economic growth of nonprofits in Colorado and you asked me to send you some additional information. 1 have finally tracked down a copy and you will find a copy of the report enclosed. I hope you find it helpful to your work. I will be starting my new job on July 6 and look forward to working with you and others in the administration. Good luck to you. Sincerely Andres 1. Award Audrey R. Alvarado FACTS ABOUT COLORADO NONPROFITS How many charitable nonprofits operate in Colorado? There are 3,771 "operating" charitable nonprofits (those that file annual information returns or Form 990 with the Internal Revenue Service) based in Colorado. The total number of charitable nonprofits registered in Colorado with the IRS is 12,660. The 8,840 nonprofits that do not file annual information returns are primarily organizations with annual income under $25,000 (55%), churches and religious organizations (20%), and subordinates of national organizations that file information with their parent organizations (25%). Colorado has 1 operating charitable nonprofit per 1,000 people, placing it 15th among the 50 states. The number of nonprofits per capita tends to be higher in less densely populated states. This trend is also true of the distribution of nonprofits within states. Regions of Colorado with lower populations tend to have more nonprofits per capita, even though the total number of nonprofits in these regions is very low. The Northwestern Mountain region of Colorado (Routt, Jackson, Grand, Eagle, Pitkin, and Summit counties) has the highest number of nonprofits per person, but only ranks 4th in the total number of nonprofits per region. State Planning Region Population (1996) # of Nonprofits Nonprofits per 1M pop. Northwestern Mountain - 12 89,942 202 2.25 Central West 10 76,326 101 1.32 South West - 9 71,646 93 1.30 South Central - 8 43,520 56 1.29 Metro Denver 3 2,133,385 2,168 1.02 Southeast Central - 14 21,049 19 0.90 Pikes Peak Region 4 503,243 452 0.90 Northeastern Colorado -- 1 63,757 56 0.88 North West - 11 163,304 141 0.86 Pueblo 7 131,217 102 0.78 North Central - 2 373,914 286 0.76 South Central Mountains - 13 65,640 47 0.72 Southeastern - 6 50,405 36 0.71 East Central - 5 31,328 8 0.26 Not classified by county 4 Total 3,818,676 3,771 0.99 Charitable nonprofits are defined as organizations that have been recognized by the Internal Revenue Service under section 501(c)(3) of the Internal Revenue code. Although many churches and religious organizations do register with the IRS and file annual information returns with the IRS, they are not required to do SO. There are many other types of nonprofits recognized under other 501(c) sections of the Internal Revenue Code, including business leagues, fraternal organizations, veterans' associations, social and recreational clubs, labor organizations, and various cooperative organizations and trusts. These types of nonprofits are not included in this study. What do Colorado nonprofits do? Colorado nonprofits provide services in a wide variety of areas. Colorado has a greater percentage of nonprofits that operate in the arts, the environment, recreation, religion, and scientific research than the national levels. Our state is slightly below national levels in the percentage of nonprofits who work in the areas of housing, hospitals and general health, and human services. Colorado Nonprofits by Type Religion related, spiritual development Other/unknown 6% 12% Arts, culture, humanities Science and social 11% science research 2% Educational institutions Philanthropy and other 15% public benefit 1% Community improvement 3% Civil rights, social action, Environment and advocacy 1% animal related 4% International, foreign affairs 1% Health 12% Human services other 5% Human services- Youth development Housing, shelter 4% multipurpose 14% 2% Recreation, sports, leisure 7% Service Areas or Type Colorado National # of NPs % of Total # of NPs % of Total Arts, culture, humanities 406 10.8% 19,507 9.8% Educational institutions 541 14.3% 28,225 14.2% Environment and animal related 156 4.1% 5,792 2.9% Health - mental health, disease-related, other 212 5.6% 11,934 6.0% Hospitals & general health 244 6.5% 16,307 8.2% Housing, shelter 151 4.0% 9,745 4.9% Recreation, sports, leisure, athletics 271 7.2% 11,639 5.8% Youth development 86 2.3% 5,269 2.6% Human services-multipurpose 499 13.2% 28,962 14.5% Human services - other 203 5.4% 10,866 5.5% International, foreign affairs 28 0.7% 1,817 0.9% Civil rights, social action, advocacy 26 0.7% 1,461 0.7% Community improvement 122 3.2% 7,834 3.9% Philanthropy and other public benefit 54 1.4% 2,286 1.1% Science and social science research 68 1.8% 2,028 1.0% Religion related, spiritual development 236 6.3% 8,839 4.4% Supporting public charities 331 8.8% 21,162 10.6% Other/unknown 137 3.6% 5,622 2.8% TOTAL 3,771 100.0% 199,295 100.0% 2 How much money do Colorado nonprofits raise or earn? The total revenues of Colorado nonprofits were $8.9 billion (ca 1996). Hospitals and general health care facilities account for one-third of the total revenues, followed by multipurpose human service organizations (e.g., American Red Cross, Salvation Army, YMCA, etc.) which account for 27% of the total revenues. Hospitals and general health care organizations derive most of their revenues from fees and contracts for service, with less than 3% of their funding coming from public support and contributions. As a group, nonprofits (other than hospitals and general health care facilities) derive nearly 38% of their total revenues from public support and contributions. Some types of nonprofits - arts organizations, civil rights and advocacy groups, and scientific research institutions - are more heavily dependent on contributions and grants. Educational institutions, on the other hand, earn a higher portion of their revenues through tuition and fees and endowment income. Supporting organizations, organizations like the Metro State College of Denver Foundation and the Eagle Valley Library Foundation that exist primarily to raise funds and manage endowments for other nonprofits, derive a greater portion of their revenues from investment income. DISTRIBUTION OF REVENUES BY TYPES OF NONPROFITS # of % of Revenue % of Public Support Pub. Supp. as Nonprofits Total Total % of Revenue Arts, culture, humanities 406 10.8% 363,299,621 4.1% 223,346,962 61.5% Educational institutions 541 14.3% 609,809,113 6.8% 48,723,925 24.4% Environment and animal related 156 4.1% 99,141,515 1.1% 56,124,275 56.6% Health - mental health, disease- 212 5.6% 422,082,300 4.7% 53,356,403 36.3% related, other Hospitals/general health 244 6.5% 3,011,996,490 33.7% 87,649,304 2.9% Housing, shelter 151 4.0% 84,346,211 0.9% 30,780,714 36.5% Recreation, sports, leisure, athletics 271 7.2% 433,689,875 4.9% 146,112,191 33.7% Youth development 86 2.3% 157,611,117 1.8% 88,782,904 56.3% Human services-multipurpose 499 13.2% 2,420,694,166 27.1% 815,966,520 33.7% Human services other 203 5.4% 150,236,384 1.7% 76,289,380 50.8% International, foreign affairs 28 0.7% 14,197,208 0.2% 6,586,173 46.4% Civil rights, social action, advocacy 26 0.7% 14,281,026 0.2% 10,828,759 75.8% Community improvement 122 3.2% 43,459,494 0.5% 21,680,799 49.9% Philanthropy and other public benefit 54 1.4% 68,641,865 0.8% 29,229,583 42.6% Science and social science research 68 1.8% 193,007,997 2.2% 141,562,333 73.3% Religion related, spiritual development 236 6.3% 233,331,114 2.6% 63,915,642 27.4% Supporting public charities 331 8.8% 537,983,776 6.0% 210,492,544 39.1% Other/unknown 137 3.6% 79,800,470 0.9% 22,515,687 28.2% Total 3,771 100.0% 8,937,609,742 100% 2,333,944,098 26.1% Total without hospitals/gen. health 5,925,613,252 2,246,294,794 37.9% 3 How much money do Colorado nonprofits spend annually? Colorado nonprofits spent $8.1 billion to fulfill their charitable purposes in the last annual data (ca. 1996). Colorado nonprofits tend to be smaller and have lower expenditures than nonprofits in other parts of the country. Colorado nonprofits account for 1.9% of the total number of U.S. nonprofits, but only 1.3% of their total expenditures. Distribution of expenditures by types of nonprofits mirrors the distribution of revenues. Nonprofits in the Metro Denver region account for 57% of the total number of operating Colorado nonprofits, but only 54% of the total expenditures. Pueblo nonprofits account for only 3% of the number of nonprofits and 24% of the total expenditures, due in large part to the American Red Cross which is reported in IRS records from its Pueblo base. Expenditures of Nonprofits by Region South West 9 Northwestern Mountains 12 1% 2% North West 11 Other Regions 3% 2% North Centr al 2 3% Pikes Peak Region 4 11% Metro Denver - 3 54% Pueblo 7 25% Region # of NPs Total Revenue Expenses Assets Metro Denver - 3 2,168 4,815,362,286 4,330,282,407 6,514,051,571 Pueblo 7 102 2,044,781,550 1,972,805,016 2,436,704,056 Pikes Peak Region - 4 452 1,011,461,038 866,459,484 1,619,864,177 North Central - 2 286 336,454,651 280,722,555 660,354,552 North West 11 141 237,640,468 217,525,151 268,627,796 Northwestern Mountains - 12 202 177,974,124 144,385,517 228,488,602 South West 9 93 98,909,756 103,393,660 95,616,557 Central West - 10 101 29,696,472 21,811,985 65,801,256 Southeastern - 6 36 57,461,671 51,852,927 54,833,024 South Central - 8 56 41,540,482 38,095,342 444,652,422 Northeastern Colorado - 1 56 23,767,799 22,342,244 40,164,843 South Central Mountains - 13 47 43,911,852 38,750,116 19,677,332 Southeast Central - 14 19 15,276,032 15,018,490 16,654,279 East Central 5 8 3,043,300 2,965,133 3,861,893 Colorado Total 3,767 $8,937,281,481 $8,106,410,027 $12,469,352,360 U.S. Total 199,295 $668,679,975,574 $607,950,121,293 $1,159,648,071,995 Colorado as % of U.S. 1.89% 1.34% 1.33% 1.08% 4 How much is Colorado's Nonprofit Sector growing? Colorado is among the fastest growing states in both population and the number of nonprofits that are being created to address the changing needs of our communities. In the last seven years (1989 to 1996), Colorado has seen a 71% increase in the number of operating nonprofits in the state, while the number of operating nonprofits nationally has grown only 50%. 1989 1996 % Growth Colorado 2,211 3,771 71% United States 133,029 199,295 50% Colorado's nonprofit sector is among the youngest in the nation, with over 50% of the operating nonprofits having been established in the last decade. Growth in the nonprofit sector in the East and Midwest has been considerably slower than in western states, in part because there are more older, established nonprofits in those regions. Most of these newer Colorado nonprofits are very small, mirroring trends in the development of small, new for-profit businesses in our state. National Colorado # of NPs % # of NPs % Before 1940 5,235 3.2% 37 1.0% 1940-1954 12,642 7.7% 164 4.3% 1955-1969 21,907 13.3% 318 8.4% 1970-1984 63,119 38.4% 1,169 31.0% 1985-1994 55,657 33.9% 1,536 40.7% 1994-1998 N.A. 433 11.5% Unknown 5,687 3.5% 114 3.0% Total 164,247 100.0% 3,771 100.0% Finding Out About Colorado Nonprofits This report was prepared by the Colorado Association of Nonprofit Organizations (CANPO) from the IRS Business Master File and the IRS Form 990 Return Transaction File databases, as adjusted by the National Center for Charitable Statistics. CANPO has begun the process of verifying and updating the data for Colorado nonprofits to provide nonprofit managers, the public, the press, and policy makers with more accurate information about the size and scope of Colorado's nonprofit sector and the contributions nonprofit organizations make to the quality of life in our state. This verification and updating process is expected to be completed in the fall of 1999 and will result in the publication of the second edition of CANPO's Directory of Colorado Nonprofits. Individuals wishing more information about specific nonprofit organizations may consult CANPO's online directory of its over 1,000 member organizations at www.canpo.org or visit the Robert Boucher Library for Colorado Nonprofits at CANPO's offices, 225 East 16th Avenue, Suite 1060, Denver, CO 80203. For questions about CANPO or further information about this report, contact CANPO at (303) 832-5710 or, outside metro Denver, (800) 333-6554 or email [email protected]. Prepared by The Colorado Association of Nonprofit Organizations March 8, 1999 5 STATE PLANNING AND MANAGEMENT REGIONS USED IN THIS REPORT The Colorado Association of Nonprofit Organizations (CANPO) is a statewide coalition of over 1,030 charitable nonprofits. CANPO provides leadership and services to strengthen the ability of charitable nonprofits to build and sustain healthy communities throughout Colorado. CANPO helps charitable and philanthropic nonprofits to manage their organizations and resources efficiently through information services, publications, educational programs, and group purchasing services. CANPO also serves as a voice for nonprofits in public policy discussions at both the state and national levels and led the successful 1996 campaign against a ballot initiative that would have removed property tax exemption for most Colorado nonprofits. 6 Clinton Presidential Records Digital Records Marker This is not a presidential record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. This marker identifies the place of a publication. Publications have not been scanned in their entirety for the purpose of digitization. To see the full publication please search online or visit the Clinton Presidential Library's Research Room. Growing Assets, Expanding opportunity IDEAS IN DEVELOPMENT Expanding Years Grow, ng 20 Assols 1979-1999 D CE:ID A O N ON F FOR R ON FOR E N, N.T E/R P R S,E ERPRISE E o M E DEVELOPMENT OPMENT 777 North Capito Street NE Suite Suite 4:10, 410, 0, W Was Washing ashington on D'C 20002 www.w cf cfed org cted.org C O OR P. O R CORPORA