Issue link: https://nebusinessmedia.uberflip.com/i/581896
W W W. M A I N E B I Z . B I Z 7 G I V I N G G U I D E 2 0 1 5 – 2 0 1 6 T he fi rst session of the 127th Legislature was unpredictable, to say the least. Despite many unexpected distractions, our State Representatives and Senators worked tirelessly to craft bipartisan legislation to improve our economy and balance our budget. One of the fi rst examples of that bipartisan- ship was the agreement that nonprofi ts in Maine have signifi cant economic impact, enhance our quality of life and provide vital services. at agreement, thanks to years of education from the nonprofi t community and legislators' intrinsic understanding of the sector, led to the swift end of a proposal to strip nonprofi ts of their property tax exempt status and add them to munici- pal property tax rolls. What was it that made it simple for our legislators to come to this understanding? It is fi rst important to understand that nonprofi t tax status is not a free ride. It was created for orga- nizations that are dedicated to public interest in order to assist them in doing good works. It is a sector com- prised of highly valued organizations such as veterans groups, domestic vio- lence prevention programs, churches, museums, economic development organizations and many others. ese organizations must primarily promote the common good and are held to a higher standard of compliance. Republicans and Democrats alike also realized that nonprofi ts have a substantial economic impact. According to data from e National Center for Charitable Statistics and the Maine Department of Labor, the Maine non- profi t sector: employs more than 84,000 of its citizens; pays more than $3.6 bil- lion in wages that support families and businesses throughout Maine, and; con- tributes over $10 billion to the economy. In addition to the economic issues, the legislature understood that non- profi ts build community and cultivate a civil society. ese unquantifi able ben- efi ts have a signifi cant impact in every county in the state, from Cumberland to Piscataquis. ey serve as the foun- dation of Maine's creative economy, which attracts businesses and increases tourism. ey enhance the public good and bring people together to solve problems. Nonprofi ts play a critical role in ensuring prosperous communities with a strong social fabric. Nonprofi ts confront problems that need to be solved and make our state a better place to live, work and raise a family. As a matter of public policy, choosing to tax nonprofi ts would have been a choice to diminish their positive eff ects on their communities. e legislature was also in agree- ment that nonprofi ts relieve govern- ment's burden. Food pantries, day care centers, homeless shelters and other nonprofi ts provide services that gov- ernment might otherwise be required to off er. If the legislature had moved forward with the original proposal, the eff ects would have rippled across the state. Expenses would be shifted onto municipal budgets and result in higher property taxes for individual property taxpayers. rough tax- exemptions, governments support the work of nonprofi ts and receive a direct benefi t as a result. In short, taxing one public serving entity to fund another public serving entity would provide no net gain for the community. e move would harm the ability of many nonprofi ts to serve their communi- ties, would force the government to take on more obligations for providing necessary services and in turn would increase costs to taxpayers. By listening to nonprofi ts and wit- nessing their contributions, the 127th Legislature recognized that doing away with these critical supports for non- profi ts in the name of tax reform would have multiple negative impacts. Many organizations would not be operat- ing today without this important tax status and work hard every day to earn this benefi t. Taxing them would divert funds from the delivery of vital services and would have an alarming impact on our communities and our state as a whole. Maine's nonprofi ts are adap- tive, innovative and effi cient partners in prosperity. In the 127th Legislature, lawmakers from both sides of the aisle understood this and made smart deci- sions. Now more than ever, it is critical that all Maine people fully comprehend that the tax status earned by nonprofi ts is not just good social policy, it is good economic policy. MarY Er in CaSal e is the advocacy and public relations manager for the Maine Association o f N o n p r o f i t s i n Po r t l a n d . M ainers have a strong sense of community. We serve on boards, donate our time and money to organi- zations we care about and are quick to help our neighbors. In fact, one in every seven Mainers is employed by a non- profi t. ese organizations are making a signifi cant social and economic impact across our state every day. But there is one more critical piece of the social impact puzzle that all volunteers, staff - ers and board members should keep at the top of their mind – Advocacy. Advocacy is a broad term covering a range of activities that seeks to bring about systemic social change. It could involve testifying at the State House in Augusta, hosting a voter registration drive or inviting your local state rep- resentative to an event. Unfortunately, too many board members and non- profi ts have stood on the sidelines, due in large part to fears that they could violate legal restrictions. It is crucial to dispel this myth and educate the public that 501(c)3 Public Charities, including Community Foundations, have every right to advocate on behalf of policies they believe in. In a sector where there is often too much to do and not ever enough time to do it, adding one more responsibility can seem overwhelming. But the need is too great to ignore. Our missions are too important to sit by and wait for policy changes to advance – or too often, threaten – our ability to do our work. e boards that many of us sit on and the countless organizations that make Maine such a special place to run our businesses are extremely susceptible to shifts in public funding priorities. We have to make sure that policymakers understand the impact of their deci- sions before the damage is already done. Mainers are served by a citizen legislature. Our lawmakers donate their time and energy for a job that is advertised as part-time and low- pay. Our elected offi cials are farm- ers, teachers, doctors, small business owners and more, all serving to move Maine forward in a positive direc- tion. Most importantly, they are our neighbors. Legislators are also 'term- limited', which means they are limited to four consecutive terms in offi ce. All of this means that our policymakers are extremely accessible and hungry for information and education from community leaders and constituents. When you make that eff ort and take that time to speak with them about an issue of community importance, they pay attention. Remember, you are the expert they need to hear from in order to make an informed decision. Here are few quick tips to start advocating eff ectively and legally: Introduce yourself and your organization to your local State Representative and Senator. Add Advocacy as an agenda item at every one of your meetings. Create a Policy Committee that enables your most talented advocates to create strategy for your work. Establish procedures that make policy decision-making easier. Get training! e Maine Association of Nonprofi ts off ers countless resources for education and awareness on how nonprofi ts can advocate legally and eff ectively. Board members are an incredibly infl uential and powerful group commit- ted to making Maine a better place to live, work and raise a family. It is crucial to expand that leadership outside of the boardroom and unleash the potential to create positive change through advo- cacy. We need to ensure the voice of nonprofi ts is at the table. We must care enough to stand up for our missions. Relationships and networks matter and only you have the connections needed to help policymakers align their deci- sions with community needs. LiSa Miller, MPH, serves as the senior program offi cer of the Bingham Program and as the chair of the Maine Association of Nonprofi ts Advocacy Committee. Nonprofit tax exempt status: Why it makes sense The importance of advocacy B Y M A R Y E R I N C A S A L E B Y L I S A M I L L E R C O M M E N TA RY C O M M E N TA RY Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate Nonprofits overestimate what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence what it takes to infl uence public policy —and they underestimate their power to do it. — Alliance for Strong Families and Communities