Fiscal Cliff: What YOU Can Do About It
New Year’s Eve is almost here, and 2013 just may ring in with some real fiscal fireworks. Without a deal between President Obama and Congress, $500 billion in tax increases and $200 billion in across-the-board spending cuts will be imposed. In the midst of all that, some federal officials are advocating capping deductions, including deductions for charitable donations, rather than raising marginal tax rates for top-earning Americans. Besides fastening your seatbelt for a very bumpy ride, is there anything you can do? The answer: YES!!!!
Here are a few actions YOU can take:
I. FIGURE OUT YOUR STORY & GET READY TO TELL IT… According to Peter Orzag, a former director of the Office of Management and Budget during President Obama’s first term, “The charitable sector has the most to lose from a limitation on itemized deductions.” [Source: Orzag, P. Vague Plans to Limit Tax Breaks Will Soon Die, Bloomberg, November 27, 2012] How much does your organization rely on philanthropy? Will your organization be negatively affected if deductibility of charitable giving is reduced or eliminated? Some studies indicate that charitable donations may decline by 25%-36% if deductions for charitable giving were eliminated. What would losing a quarter or more of donations mean for your organization and its mission-driven services?
II. CONTACT YOUR FEDERAL OFFICIALS. Contact Your Congressional Delegation…Contact your U.S. Representative and U.S. Senators. It is easy to do, and there are so many ways to do so. In addition to having website-based online contact forms, email addresses, and telephone numbers readily accessible for making contact, your federal elected officials also can be reached through their Twitter accounts (note: Sen. Kohl is the only member of the delegation who does not appear to use his account):
– @RepGwenMoore
– @RpSensenbrenner
– @RepPaulRyan
– @SenRonJohnson
– @HerbKohl
But don’t stop there. There are a number of other elected officials with whom you can share to express your perspective. Contact President Obama…Let the President hear from your organization. As long as you are using Twitter, he can be reached at @BarackObama or @whitehouse. Contact Speaker Boehner…Speaker Boehner is the primary negotiator on the fiscal cliff for the House of Representatives, and can be reached at @SpeakerBoehner. Contact Mayor Barrett…Ask the Mayor to advocate on behalf of Milwaukee’s nonprofit sector.
III. MAKE WAVES…Inform your board members, volunteers, and other supporters of your organization’s story and the potential impact that limiting or eliminating deductibility of charitable giving may have. Encourage them to share the story with their friends and colleagues, contact federal officials, and write letters to the editor.
What happens with federal fiscal policy now will affect the nation for years—decades—to come. This is our time to step up, speak out, educate, and lead on philanthropy. Let’s roll!
William Martin, Jericho Resources, Inc.
Board Director, AFP-Southeastern Wisconsin Chapter
Fiscal Cliff Notes for Philanthropy Professionals
The fiscal cliff (sometimes referred to as the fiscal slope, fiscal curb, fiscal speed bump, etc.) is fast approaching. With so many others having exercised their right to create a personal moniker for the upcoming national financial event, I have decided to call it the fiscal tsunami, given that the event will come in waves that could pack quite a wallop. Whatever your preference in names and metaphors, the stakes are serious for our country, and will impact philanthropy. Decisions made (or not made) in the remaining days of 2012 and early 2013 will impact the United States for years to come.
What is the fiscal cliff (or tsunami)?
Pundits continue to use the term, but little time has been taken to define the term. There are essentially three major waves of fiscal policies that will affect the nation deeply if President Obama and Congress do not come to an agreement by the end of this year, or very early in 2013.
Recently, there has been a great deal of emphasis on the Bush tax cuts expiring, but that is certainly not the only issue to be addressed. Here’s a quick list:
- From Bush Back to Clinton…If no agreement is reached, there are a series of Bush tax cuts that will expire. The marginal rate or tax bracket for every American will return to the rates in place during the Clinton Administration. Tax rates and exemptions regarding capital gains and dividends, estates, and gifts would increase and decrease, respectively. Additionally, the Bush-era tax credits would be reduced significantly. For instance, the child tax credit would decline by 50%, the dependent-care tax credit by 20%, and the earned income tax credit would be adversely impacted as well.
- Obama-era Tax Cuts & Credits End, Too…President Obama and Congress enacted a payroll tax holiday, which reduced employees’ payroll rate from 6.2% to 4.2%; that would expire. So would the American Opportunity tax credit, which helps families pay for college, extended unemployment assistance for long-term unemployed, and other enhancements of the earned income and child tax credits. Equally importantly, fixes addressing the alternative minimum tax and “marriage penalty” would sunset.
- Spending Cuts, Budget Caps & Sequestration…President Obama and Congress agreed to a deal last year that would reduce federal spending by $1.2 trillion over the next 10 years. As part of that deal, there will be across-the-board cuts in nearly every area of federal discretionary spending. Additionally, the legislation set annual budget caps limiting the amount the federal government can spend in a given year.
The list above is essentially what we are talking about when discussing the fiscal cliff, tsunami, or white water rapids….Left alone, the combination of these changes in fiscal policies would result in up to $500 billion in tax increases and $200 billion in spending cuts around the beginning of 2013.
Why should you care?
It is estimated that about 70% of all charitable giving nationally is contributed by individuals. Without a deal, every American taxpayer will pay more in taxes, leaving less to donate to charitable organizations like yours. While we are all in awe of the relatively rare multi-million-dollar gift from a given wealthy individual, the middle class tends to give more than the nation’s rich proportionately. So, abrupt increases in the tax burden for middle-class taxpayers could have real-world implications for nonprofits.
Combined campaigns—and the nonprofits they benefit—could feel the impact early on as the middle class is squeezed by tax credits phasing out at the same time payroll tax rates are increasing by approximately 50%. Many combined campaigns are based largely on regular payroll deductions. In these uncertain and potentially more highly taxed times, the capacity of middle-class donors to give a portion of every payroll check at, or higher than 2011 levels, may be sorely tested.
In the next installment, we will take a look at some of the fiscal cliff fixes being considered and what they may mean for philanthropy.
William Martin, Jericho Resources, Inc.
Board Director, AFP-Southeastern Wisconsin Chapter
2013 Board Nominees Announced
On November 13, the chapter announced its slate of nominees for the 2013 board of directors. The slate will be voted on at the chapter’s annual meeting taking place on December 13, 2012 at the Italian Community Center.
| Amalia Schoone, CFRE | President |
| Julie Whelan Capell | Past President |
| Nancy Seidl Nelson, CFRE | Secretary |
| Jim Moore | Treasurer |
| Donna Triplett, CFRE | VP Education |
| Lisa Attonito | VP Finance |
| Tamara Pacada | VP Membership & Diversity |
| Lynnea Katz-Petted | VP External & Internal Relations |
| Barbara Armstrong, CFRE | Director |
| Jay Blankenship, CFRE | Director |
| Jennifer Charpentier | Director |
| Laura Emir | Director |
| Michelle Fobair | Director |
| Dawn Groshek | Director |
| Melissa Herguth | Director |
| William Martin | Director |
| Pamela Mattox, CFRE | Director |
| Barbara McKillop | Director |
| Carol McLain, CFRE | Director |
| Cassie Mordini | Director |
| Ann Marie Moss | Director |
| Nancy Nadolny | Director |
| Linda Schieble | Director |
| Michelle Schuerman | Director |
| Jim VanHoven | Director |
| Marlene Vidal | Director |
| Shannon Watry, CFRE | Director |
| Lisa Weisman | Director |
| Deb Wolniak | Director |
National Philanthropy Day – What’s not to love?
Becky Hall, 2012 Philanthropic Youth of Today
The name tags are all printed . . . the script is written . . . the videos are finished . . . in less than 24 hours our chapter will be celebrating National Philanthropy Day together with about 650 of our closest friends. In these final hours before the event, I can’t help but smile in anticipation.
Because I really do love National Philanthropy Day. What could be better than a day spent recognizing local individuals who have dedicated themselves to bettering Southeastern Wisconsin through their philanthropic efforts? I love hearing our awardees talk about who inspired them to become philanthropists. I learn from their examples of selflessness. I am awed by their humility.
Whether you are coming to tomorrow’s celebration or not, I urge you to check out the profiles of our honorees on our website or our Facebook Page. Like Becky Hall (pictured), who has raised more than $50,000 for the National Multiple Schlerosis Society through her participation in Wisconsin’s Best Dam Bike Ride. Regardless of age, gender, race, ethnicity, sexual orientation or—dare I say it?—political affiliation, you will find someone in this group of awardees who speaks to your own sense of community and reminds you that one person can make a difference.
What’s your take on National Philanthropy Day? Who inspired you to give back? Tell us about it here, or find me at tomorrow’s event. I’d love to hear your stories.
“Ten Steps to a Dynamic Development Committee”
AFP Member Roselyn Smolej-Hill graciously shared her thoughts on our last AFP Education Session.
On July 19, 2012, AFP hosted a breakfast meeting for its members with Erich Tillach, Vice President of Donor Relations, Boys and Girls Clubs of Greater Milwaukee, giving a presentation on “Ten Steps to a Dynamic Development Committee”. What could have been a very boring subject, woke the audience up not only with realistic steps to creating a development team that gets the job done and isn’t afraid to make the ask, but made the audience laugh with his self-deprecating humor. This had to be one of my favorite presentations in the many years I have been an AFP member.
He began with evaluating your current program, looking at your past to plan for the future, setting specific goals, building the right team, assigning roles and responsibilities, explaining your expectations, how to qualify prospects, getting your prospects engaged, making the ask and finally, the follow up. For each step, Erich had strong, insightful ideas as how to make things work. I thought this was a wonderful presentation for anyone in development, whether you were new to the career or a seasoned professional. I think we could all use some new ideas or reinforcements of what we are already doing. I was very happy I made the effort to attend a breakfast meeting. Not only was the presentation excellent, but the food was wonderful as well!
If you’d like more information, check out the members only section of www.afpmilwaukee.org website for Erich’s handouts.
Under 40 Group Gathering on August 7th!
The next quarterly AFP Under 40 gathering has been scheduled for Tuesday August 7th at 12noon. Space is limited and first priority will be given to AFP members, so RSVP ASAP to Tamara at Tamara@RenewtheValley.org.
The educational portion of the gathering will be led by Doris Heiser. She will share her experiences and vast amount of knowledge, as well as lead us in acting out three typical scenarios all fundraisers should practice:
- A first-time meeting with a prospect
- A donor that has given a couple of times that you are trying to upgrade and engage
- Asking for an ultimate gift from a long-time donor
Here are the details:
What: AFP Under 40 Networking/Educational Gathering
When: Tuesday, August 7th at 12noon
Where: Jewish Home & Care Center, 1414 North Prospect Ave, Milwaukee
Cost: Free – bring your own lunch or food is available
Topic: Communicating with prospects and donors.
Presenter: Doris Heiser, Retired – Greater Milwaukee Foundation
**Please come prepared to participate and learn by doing!
AFP Foundation “Every Member Campaign” is launched
This is the annual fundraising campaign for the AFP Foundation that supports its members through a variety of programs and initiatives. If you have given to this campaign in the past – THANK YOU. Your gift has helped support our local members through scholarships to conferences and other programs.
Your generous gift helps support the future growth and development of our profession. The dollars raised go to support education and training of professional fundraisers worldwide and help increase the public’s awareness of philanthropy and understanding of fundraising – and that helps all of us – right?
Our goal this year is to raise $3,850, which is 3% more than last year. If we make our goal, 25% of our total will be returned to the chapter to help support deserving local members through scholarships to international and regional conferences. These members would not be able to attend these conferences without this support.
This year 100% of your AFP Board Members have made a gift to the campaign. Will you join us? I hope you will consider an increase over your gift of last year.
You can make your gift or pledge online by going to www.afpnet.org and click on the “make a gift” icon in the upper right-hand corner of the home page. It will provide an option to make a gift online or to download and print a pledge so that you can make payments over time.
Thank you for your support for our profession.
Board of Directors Intro- Nancy Seidl
Nancy Seidl Nelson, CFRE
Development Officer for the Waukesha Memorial Hospital Foundation (ProHealth Care)
My current job focus is working with individuals interested in supporting ProHealth Care (major gifts) and overseeing our Planned Giving initiatives.
What do you like most about your job?
Working with a variety of people who are passionate about our mission and their role in supporting it – this includes fellow employees, physicians, community volunteers (Board Members) and especially donors who support us in creating a healthier community. When you can work in true partnership with people who want to make a difference, it’s an awesome day!
What prompted you to pursue development/fundraising as a career?
My initial career focus was public relations/marketing and my first “real job” in that area was with a small community hospital as a Communications Specialist. I then moved to another healthcare system – still in a communications roles but working directly within the Foundation. I began writing grant proposals, then direct mail, then someone asked me to staff a volunteer team, etc. When I moved to Annual Giving Director, there was no doubt I was firmly on the fundraising side and then needed to hire the next Communications staff member. I benefited from excellent team members and mentors – many of whom are still good friends today.
My professional goals have changed throughout my career and quite simply, my focus today is to enjoy what I’m doing and feel that I am making a positive impact every day. I strongly feel that you stay the course with that focus, the “prizes” – whatever you want them to be – title, career advancement, etc. will naturally follow.
What would you impart to a new development/fundraising professional?
Metrics/Targets/Technology are all important and great tools to help in your job, but do not underestimate the power of the personal touch that you bring to your job. Listening well and saying thank you cannot happen enough. Always present yourself professionally and make yourself known as the person who will always get the job done.
This is a very short version of a presentation (and long paper) on Social Media that I present. If you have any questions or want more information please feel free to contact me.
The Need:
Social Media is a growing platform. Since the development of the Internet, the World Wide Web has been a rapidly changing place. Nonprofits have needed to change their fund development techniques since the advent of Internet. With rapidly changing technology nonprofits need to be educated and aware of the different Internet platforms and how they can help build the nonprofit’s brand. Social Media does not necessarily bring about donations to nonprofits, but it allows constituents of agencies to feel connected to the cause and build the relationship.
Why is Social Media important?
- Relationships
- Cultivation
- Advocacy/Volunteers
- Foundations
- Millennial Generation
Learn about the different Social Media platforms and figure out what would work best for your agency.
How to effectively utilize Social Media:
- Strategy
- Establish Presence
- Expand Reach
- Nurture Relationships
- Properly Maintain Presence
Best Practices:
(this list is a short list of best practices an agency should follow for their Social Media strategy)
- Start small, don’t jump into all platforms at once
- Be easy to find
- Map out an engagement timeline: what’s pertinent when?
- Create a contact strategy: who does what when?
- Be prepared: get connected to others in the network and build those relationships
- Contribute to other sites
- Have a process for obtaining information and delivery of information
- Empower the fans to champion the cause. Make them want to share the information.
- Keep everything consistent: same font, message, theme, color scheme, etc.
- Don’t forget to thank the followers
- Be authentic and sincere
Once the agency is ready to begin a strategy, the agency must decide what best practices will best work for the agency. The agency must then integrate all platforms.
Robyn Boettner, MSW
rmboettner@gmail.com
Intro: Presidet-Elect
This month the Board of Directors intro is Amalia F. Schoone, CFRE, President-Elect of AFP Southeastern WI Chapter
Amalia is Principal Consultant, In Progress Consulting, LLC specializing in Board governance, fundraising, as well as communications, planning and program evaluation projects.
What prompted you to delve into the development/fundraising field?
I caught the desire for community improvement from my mother. As a child, she took me along on her volunteer jobs, including reading at the library and staffing the junior league store. That showed me we can all have the power to change the world.
What do you like most about your job?
I love my work so much! First of all, I meet lots of interesting and inspiring people who want to improve our community. Also, I encounter a range of needs and solutions in our community, and therefore better understand the breadth of requests our volunteers, donors and prospects hear on a daily basis. This helps me to help my clients cut through the “noise” to make a concise and compelling message. Also, I have the flexibility with my time to volunteer for causes close to my heart, including: Professional Dimensions, a networking organization where I serve on the Board; my daughters’ school, Hawley Environmental School, where I serve on the Governance Council; and CORE/El Centro, a natural healing center that improves access to therapies for all, regardless of income, where I’m volunteering on a fundraising project; and of course, AFP! My own volunteer experiences help shape and inform how I work with my clients’ volunteers.
Why does the development/fundraising field interest you?
Fundraising requires many of my favorite skills, including communicating, organizing and problem solving. We have many opportunities to meet fascinating people who we might not otherwise get to know. Also, we have many opportunities to advance our knowledge and skills. The foundational skills I learned as a professional and member of AFP helped me to earn my CFRE accreditation as well as earn admission to the Nonprofit Management Fund’s Board Consultants Institute II, which I completed in December 2009.
What are your hobbies?
I wish I had more time to pursue hobbies! Last weekend, I ran my second half marathon. Two years ago, I began running. Training this spring, I realized that running is a metaphor for life. First, I needed a goal. It took a friend’s invitation to set that goal (sounds like how we engage our donors, doesn’t it, through their peer networks?). Additionally, I needed to find the right pace in order to endure for a 13 mile run (which took me 2 hours, 4 minutes). I attempt to live by these same practices – with purpose and a steady stride, constantly moving forward.
If you could teach one thing to a new development/fundraising professional what would that be?
I started my career at the Milwaukee Public Museum as an assistant to the membership and special projects directors, then was promoted to special projects director. I had fabulous mentors there who introduced me to AFP. Then I went on to work at Children’s Hospital Foundation, followed by Planned Parenthood of Wisconsin, and then I launched my own practice. By starting in an administrative capacity, I learned that clean, accurate data provides the most effective foundation upon which a fund development program can flourish. At these relatively large and established organizations, there were seasoned professionals who I could turn to for guidance. I also had the good fortune to see how all the elements of a fund development effort work together.
Today, through my consulting practice, many of the professionals I meet are beginning their careers in smaller, emerging organizations. These organizations often lack systems and technology, and these new professionals wonder where to turn for advice and guidance. I encourage all of my clients to join AFP; it’s the premier source for best practices and continuing education. Of greater significance, the camaraderie of our fellow members provides unparalleled support.
What are your goals for AFP in the future?
These are my goals for AFP over the next two years:
- Continue advancing the strategic plan, to provide quality services to our membership throughout Southeastern WI and engage a broad diversity of members in our work
- Diversify the chapter’s income generating efforts in order to do this; and
- Raise the recognition of AFP’s professionalism and expertise among and beyond the community of fundraisers.
I hope you will join in these efforts
afpsewi
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dawngroshek
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jennifercharpentier
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tamarapacada
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