Paul Trader, executive director for the Institute for Non-Profits, talks with Michael Constantine of Compensation Resources, based in Bergen County, N.J., about the impact the new MTA tax will have on Rockland”™s nonprofit community.
When Paul Trader asked how many nonprofits were in the room when he addressed the Rockland Business Association May 21, two-thirds of the audience stood up.
Trader, executive director for the Institute for Non-Profits, an arm of the Cornell Cooperative Extension in Stony Point, rattled off some impressive numbers to lunch guests at the Palisades Dolce Conference Center: Rockland has more than 1,600 nonprofits operating within its borders; Trader estimates more than $1.4 billion in economic impact was created as a result. The numbers were compiled from 208 nonprofits that participated in a study that began in 2006. The data do not cover houses of worship, public and private schools and libraries, hospitals and organizations with no budget or paid staff.
Of the billion-dollar-plus economic impact nonprofits have on New York”™s smallest county, $628 million was in direct expenditures and $410 million more created by the “ripple effect.”  Of the total, of more than $779 million estimated revenues of all nonprofit businesses, $452 million was money brought into the county by the organizations, of which $428 million was spent within Rockland to provide services for residents.Â
Volunteers contributed more than $19.5 million in unpaid hours. Because of the range of programs and the services provided, Cornell”™s study determined nearly 57,000 visitors came to Rockland annually ”“ whether to donate blood for the Red Cross of the Lower Hudson Valley or to enjoy a play at the nonprofit Riverspace in Nyack.
Rockland Community College in Suffern helped the nonprofit institute develop the database, which provided Trader with some impressive numbers.Â
How these nonprofits are going to contend with the new Metropolitan Transit Authority”™s mobility tax is a vexing concern. In addition to the recession affecting gifts, donations and grant money counted on to keep providing services, more for-profit businesses are reining in their charitable giving and with more unemployment and job instability, numbers of donors are dwindling. The mobility tax ”“ 34 cents per $100 of earned income ”“ said Trader, is going to decimate Rockland”™s nonprofit community and the services they provide.
Anna Vero, executive administrative director for Rockland”™s Epilepsy Society, said she appreciated that the RBA recognizes “nonprofits as a business and that they are run as such. This new mobility tax has forced us to revise our budget and it is going to impact us. Right now, we employ 47 full- and part-time people. We”™re trying to figure out how we are going to deal with this and keep providing needed services.”Â
When the Epilepsy Society”™s executive director retires this month, her duties will be split among Vero and other higher-echelon employees of the nonprofit group. “We will continue to provide the best services, but we are trimming our budget wherever we can and still give the same level of service to our clients. Like everyone else, we are learning to do more with less people; unfortunately, funding streams are drying up.”
Vero”™s not alone. Most of her peers in the nonprofit community, whether it is Rockland”™s Family Shelter or Meals on Wheels, are facing the same dilemma, asked to provide services to a growing number of unemployed, stressed and uninsured clients and watching donations dwindle; at the same time, they must come up with additional funds to pay the tax, 34 cents for every $100 dollars of payroll. “Add it up,” said Vero. “That”™s a lot of money for something most of the people in Rockland do not benefit at all from.”
Al Samuels, RBA president, told the more than 160 people at the monthly luncheon, “Rockland and Orange counties are the worst hit by this tax. We barely receive service from this entity, yet we are being taxed at the same rate as those who live in the five boroughs. Why isn”™t anyone taking a look at how they are running the MTA? Now, government has finally found a way to tax non-profits. Albany says this bill will sunset in two years. I don”™t believe it. These are troubled times for everyone. No one is exempt, and I have not seen a tax yet that has gone away.”
Samuels, who said Rockland has the highest percentage of resident seniors in the state, will be hit the hardest. He questioned the constitutional validity of the mobility tax, which is supposed to reimburse school districts. “Either way, we are all going to pay through increased taxes and fees,” said Samuels.
Trader echoed Samuels”™ sentiments, saying while nonprofits often make a profit, that money does not end up in their pockets. “How are nonprofits going to be able to keep up the level of service if they are paying a tax on salaries? Rockland is already paying taxes to the MTA. The county is gong to pay a tax on top of a tax, and there is not a segment of business, profit or not-for-profit, that won”™t be adversely affected.”
Rockland Community College will hold its 2009 nonprofit conference on June 4, beginning with registration at 8 a.m. Keynote speaker Allison Fine will focus on activism efforts during a time of financial constraints. She”™ll be joined by Cliff Wood, president of RCC, as well as County Executive Scott Vanderhoef, Hon. Harriet Cornell, chairwoman of Rockland”™s Legislature, and Trader. The event is free.
For more information, call 429-7085, ext. 111.
