The role of government in the operation of nonprofits was the key topic of a Jan. 31 panel, “To Give or Not to Give,” which featured seven leading authorities in the nonprofit sector.
More than 100 were in attendance at the panel, which was hosted by Westfair Communications Inc. and took place at L”™Escale in Greenwich. Westfair is the parent company of the Business Journal.
Several of the panelists criticized state and federal lawmakers for actions they said would make it more difficult for nonprofit organizations to operate and to fundraise in already difficult economic conditions.
Among those criticisms were discussions at the federal government level to limit tax deductions for charitable donations and proposals by New York Gov. Andrew Cuomo in his executive budget to restrict state funding for nonprofits.
“I think the government really needs to spend some time looking inward,” said Naomi Adler, president and CEO of the United Way of Westchester and Putnam. “It”™s not enough to say there is a public sector and a private sector and a not-for-profit sector, and the public sector should just take care of the people. That”™s too simple. Many nonprofits do it better, more efficiently and less expensively.”
Adler and her fellow panelists questioned a recent proposal contained within Cuomo”™s executive budget plan that would require 85 percent of every public dollar allocated to nonprofits to be spent on direct services rather than overhead, as well as limiting executive compensation to $199,000 at nonprofits supported by state funding.
“Good leadership is good leadership is good leadership, and barring those unfortunate examples that set standards that could destroy systems … you can”™t have good services without good leadership,” said Sandra Mallah, former superintendent of the Greenburg Eleven Union Free School District at Children”™s Village in Dobbs Ferry, N.Y. “If you want good leadership you”™re going to have to pay for it because it”™s a competitive market.”
However, the trend will likely be toward increased government regulation over nonprofit funding, said Ryan Odinak, executive director of the Cultural Alliance of Fairfield County.
“In Connecticut right now in arts and culture we”™re facing a complete shake-up of the way that we”™re going to be receiving grants, and it all has to do with impact and proving impact in the community and really aligning with the state goal, which is job building and having an impact on economic development,” she said.
Sam Cingari, CFO of the 10 Cingari family owned ShopRite supermarkets in Connecticut and member of the board of directors of the Stamford YMCA, said simply that without government grants, the YMCA “wouldn”™t be able to survive.”
A reduction in the federal tax deduction for charitable contributions would be just as detrimental as cuts to state funding, the panelists urged.
Odinak said any attempt to limit the deduction would “have a tremendous impact in that nonprofits are very dependent on individual gifts ”“ particularly from high net-worth individuals.”
Several panelists also reasoned that closing the deduction would oblige lawmakers to raise taxes to account for the services nonprofits would likely be forced to cut back on.
“It”™s so strange to me that those who are in government saying ”˜Lets just get rid of this so we can raise more taxes”™ don”™t see that if you get rid of an incentive to give, you”™re going to have to pay more,” Adler said.
With concerns over the future of several government funding programs and corporations cutting back on their respective charitable gifts, several panelists said their organizations were looking into new ways to leverage private dollars and other “in-kind” contributions, or services provided directly from a corporation to a nonprofit.
Frank Matheis, director of corporate communications for Curtis Instruments in Mount Kisco, N.Y., said his company”™s approach was to maximize contributions to area nonprofits ”“ financial or otherwise.
“We have a responsibility to contribute to (the community”™s) well-being,” Matheis said. “What we”™re looking at constantly is to see how we can contribute in a positive way ”“ and that isn”™t always financial.”
Adler said that the United Way works with several companies to help provide nonprofits with services that they might not be best equipped to handle themselves.
“We work very often with gifts in-kind. It”™s our bread and butter. It”™s volunteer time and it”™s also other things,” Adler said. “What”™s also important is the services (corporate partners) can provide. IBM is a great example; they know social networking, they know project management, they can do seminars.”
The panelists included:
Naomi Adler, president and CEO of United Way of Westchester and Putnam in White Plains, N.Y.; David Cingari, owner of David”™s Soundview Catering in Stamford, Conn.; Sam Cingari, CFO of the 10 Cingari family-owned ShopRite supermarkets in Connecticut; Lynda Costa, director of franchise management and business strategy at PepsiCo in Purchase, N.Y.; Janet Langsam, CEO of ArtsWestchester in White Plains, N.Y.; Sandra Mallah, former superintendent of the Greenburg Eleven Union Free School District at Children”™s Village in Dobbs Ferry, N.Y; Frank Matheis, director of corporate communications for Curtis Instruments in Mount Kisco, N.Y.; and Ryan Odinak, executive director of the Cultural Alliance of Fairfield County; and was moderated by Joseph Del Sindaco, president of Joseph M. Del Sindaco and Associates L.L.C. in Bedford, N.Y.
