Special Alert: Is your nonprofit about to lose its tax-exempt status?

CHECK THE LIST and File Online Today

On May 15^th, 3863 of nonprofits in Arkansas could lose their tax-exempt status. Will your nonprofit be one of them? ...Continue Here

...We hope not. The Urban Institute’s National Center for Charitable Statistics has developed a simple tool to find out if you need to file. Here’s how in 3 easy steps:

(1) Go to the NCCS website...

(2) Select the name of your state and then enter your nonprofit’s name. If there is an alert “FILE NOW” by your nonprofit’s name, then...

(3) File a 990 by May 15 or your nonprofit’s tax-exempt status will be automatically revoked.

Call the Arkansas Coalition for Excellence (ACE) at (501) 375-1223 or email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it This e-mail address is being protected from spam bots, you need JavaScript enabled to view it if you need help.

Please help the ACE SPREAD THE WORD to nonprofits across Arkansas!

Citizens United Legislation to Be Unveiled

Legislation Update

With only six weeks remaining until Memorial Day recess, legislators have perhaps their last and best chance to reach bi-partisan agreement on major bills before the election season is fully upon them. The following provides a synopsis of key bills we are following:

• Financial Regulatory Reform and Consumer Protection: The Senate is expected to take up a bill to overhaul regulation of the financial services sector, but all 41 Republican Senators signed a letter expressing opposition to the measure as currently written. This stalemate could change, however, due to a lawsuit filed by the Securities and Exchange Commission against Goldman Sachs alleging fraud in transactions at the root of the market collapse. The consumer protection components of the bill are of interest to many nonprofits.

• Federal Budget for FY 2011: The Senate and House Budget Committees are finalizing their budget resolutions in preparation for floor action scheduled for the coming weeks. The odds are that Congress will not be successful in adopting a formal budget, which is frequently the case in election years. The debate is still worth following because leaders use the document to establish priorities, and rank-and-file members frequently seek to force votes on controversial issues, such as advocacy rights and the estate tax.

• American Workers, State and Business Relief Act of 2010: This bill, which includes extension of the IRA Rollover and provides pension funding relief and $28 billion in additional funds to help the states balance their budgets, passed the Senate in March and must be reconciled with a House-passed bill. There is bi-partisan support for each of the initiatives, but legislators must come up with around $30 billion in additional revenues to pay for the bill.

• Estate Tax: The tax expired at the end of 2009, but will return to higher 2001 levels next year. The President has proposed restoring the tax at 2009 levels - exemptions of $3.5 million/individual and a tax rate of 45%; Senators Lincoln (D-AR) and Kyl (R-AZ) are calling for weakening the estate tax by raising the exemption to $5 million/individual and lowering the tax rate to 35%. A weaker estate tax would generate nearly $100 billion less to the U.S. Treasury and provide less of an incentive for charitable giving.

*Special Thanks to the National Council of Nonprofits for providing this information. 

House Passes Historic health care reform

On Sunday night, the House voted 219-212 to approve the Senate-passed Patient Protection and Affordable Care Act and will send it to President Obama for his signature, which could occur late today or early tomorrow. The legislation, among other reforms, extends access to coverage for the uninsured and prevents the denial of insurance for pre-existing conditions. The law guarantees most nonprofits access to newly created health insurance exchanges (on an equal basis with businesses) and includes the small employer credit that would provide assistance to small nonprofit employers to extend health insurance benefits to their employees. The House also passed a bill making changes to some of the funding and benefits provisions of the Patient Protection and Affordable Care Act. The package of revisions, or "fixes" was passed under a process known as "budget reconciliation" calling for expedited consideration in the Senate, prohibiting filibusters, and allowing passage by a simple majority of those voting. Senate Majority Leader Harry Reid (D-NV) has assured House Speaker Nancy Pelosi (D-CA) that he has enough votes to clear the bill. Senate consideration is expected to begin today.

Special Thanks to the National Council of Nonprofits for helping us keep you up-to-date on this issue.

Nonprofits Eligible for payroll tax forgiveness for hiring unemployed workers

(March 18, 2010) Earlier today President Obama signed into law the Hiring Incentives to Restore Employment Act (HIRE Act) that, among other things, includes temporary tax incentives to encourage employers to hire new workers. The new law allows nonprofits and other employers to keep the 6.2 percent payroll taxes on certain new hires. The incentive is only available for a short time and it applies to only certain newly hired workers. Go here for more information. 

Nonprofits Included in White House Jobs Plan

On January 29, 2010, nonprofits received good news when the White House began outlining the details of a $33 billion job-creation proposal designed to spur hiring by small employers, specifically including nonprofits. This development marks important recognition by federal policymakers that nonprofits play a vital role not only as service providers, but also as employers important to the economic stability of local communities.

Arkansas Coalition for Excellence (ACE) wants nonprofits in Arkansas to be aware of the White House plan because it could influence personnel decisions for many nonprofits. So we asked the National Council of Nonprofits, to which members of ACE belong through your membership in us, to summarize the main components of the President’s proposal as presented during a White House conference call. The National Council reports that during the call Administration officials revealed: 

• Nonprofits of any size would get a $5,000 tax credit for every new employee they hire in 2010, retroactive to the beginning of the year
• Nonprofits of any size that increase the hours or wages of employees making less than $106,800 can be reimbursed for the additional Social Security taxes incurred
• The maximum benefit for any one nonprofit would be capped at $500,000
• The Administration estimates that 1 million small employers (including nonprofits) will take advantage of these incentives

For more information, the official White House fact sheet can be Found Here . [Note: Even though the fact sheet repeatedly refers to “businesses,” “small businesses,” and for-profit “firms,” it also states (in the third bullet) that “Non-profits will be eligible for the credit.” Plus, during the White House’s conference call, Administration officials reinforced that nonprofits will be eligible for the relief.]

The President’s plan is not the only one under consideration in Washington. The details easily could change as Congress crafts legislation in the weeks ahead. Therefore, recognize that at this time these are only proposals, not law.

ACE and the National Council of Nonprofits will continue to advocate for public policies that support a healthy and vibrant nonprofit sector.

Census 2010: Important Information for your Nonprofit

Why is the Census so important to the nonprofit community?

Lower income and more mobile populations, precisely those served by many nonprofits, are frequently undercounted by the census, leading to underfunding of critical services and infrastructure and under-representation in government. Nonprofits can play an important role in making sure their communities are fully and accurately counted by educating them on the importance of the census and how to partipate.

Educate yourself on the 2010 Census with the Nonprofits Count Census Fact Sheets

For more on the importance of the census and how you can help This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or read more here:

 Census 2010 Information 

2008 Economic Impact Report- "The Benefit of Doing Good: The Structure, Contribution, and Impact of Arkansas Nonprofits on the State's Economy".  

The nonprofit sector is an increasingly important contributor to the socioeconomic health and vitality of our community. Follow the links below to read  the 2008 report on the economic impact of nonprofit organizations in the state of Arkansas.

 The Benefit of Doing Good: Executive Summary 

 The Benefit of Doing Good: Full Report 

 Nonprofit Economic Impact Report FAQs 

 One Page Summary of Economic Impact Report 

Grif Stockley's Race Relations in the Natural State has been added to the basal list of recommended textbooks for use in the public schools. This book was published by the Butler Center for Arkansas Studies and made possible through a grant from the Winthrop Rockefeller Foundation.

public policy resources for Nonprofits

Nonprofit Action provides tools and information for nonprofit advocacy.  The site features articles and research on a range of topics, including capacity building, nonprofit advocacy, and the laws and regulations regarding lobbying and voter education. There are interactive tools, including forums and links to a wide variety of policy resources for nonprofits, and “how to” sections for organizing and mobilizing, increasing voter participation, and working with the media for advocacy.  They even include brush-up civics lessons on the structure and processes of government.

OMB Watch is a nonprofit government watchdog organization whose mission is to promote open government, accountability and citizen participation.  OMB Watch keeps you abreast of legislation via their daily updates and blogs on federal budget issues, information access for defending the public’s right to know, nonprofit advocacy, and regulatory policy.

The Center for Lobbying in the Public Interest works to educate nonprofits about the importance of lobbying in achieving their missions.  The website includes a Training and Resource Center with short tutorials on lobbying strategy and laws.  Check out their downloadable resources, Make a Difference for Your Cause:  Strategies for Nonprofit Engagement in Legislative Advocacy and their Nonprofit Lobbying Guide.

The Advocacy Center and the Institute for Sustainable Communities provides resources for coalition development and campaigning. Their mission is to make social justice leadership strategic, effective and sustainable.  It provides vital information on building a team, developing a campaign, designing effective outreach, and tools for addressing issues within a coalition.

The Center on Budget and Policy Priorities is a nonpartisan policy organization working at the federal and state levels on fiscal policy and public programs that affect low and moderate income families and individuals.  The CBPP conducts research and analysis to inform public debates over proposed budget and tax policies.

The Alliance for Justice through its’ Nonprofit Advocacy Project and Foundation Advocacy Initiative, works to preserve, protect and expand the advocacy rights of the nonprofit and philanthropic sectors.  The Alliance for Justice provides advocacy assistance in the form of downloadable resources, sample documents and technical assistance.

Arkansas Policy Foundation provides policy research and analyzes the impact of education and tax related public policy on Arkansas and makes recommendations.