The Greater Pittsburgh Nonprofit Partnership hosted its 2011 Semi-Annual Membership Meeting on June 22, 2011. Ron Kramer from Schneider Downs presented on the potential changes to charitable deductions. Members Laura Maines, Bernadette Turner, and Dave Coplan provided a PA budget update, an update on our three committees' work, and an introduction to our 2012 dues changes, respectively. Thanks to all, including our Chair, Colleen Fedor and President, Diana Bucco for leading the meeting.

1. Greater Pittsburgh Nonprofit Partnership
Semi-Annual Member Meeting
Wednesday,
Wednesday June 22 2011
22,
8:00AM – 10:00 AM

2. Today’s Agenda
Breakfast + Networking
Welcome
W l Colleen F d Th Mentoring
C ll Fedor, The M t i
Partnership, chair GPNP Advisory Team
Implications of the changing charitable giving Ron Kramer, Schneider Downs
incentives in the federal tax code
PA Budget Update Laura Maines, Wesley Spectrum
Committee Reports Bernadette Turner, Addison Behavioral
Care
2012 Dues Change Dave Coplan, Human Services Center
Corporation
C ti
Closing Diana Bucco, The Forbes Funds
Workshops – 10:15 to 11:15 Advocacy 101, Joe Geiger, PANO
Technology, Joe Polk, Penn State

3. Ron Kramer Schneider Downs
Kramer,
Implications of the changing
charitable giving i
h it bl i i incentives i th
ti in the
federal tax code

4. The Charitable Contribution
Deductions
D d ti
 Section 170(a) of the Internal Revenue Code (“IRC”) provides a tax deduction
for any charitable contribution ( defined in IRC Section 170(e)) to or for the
y (as ( ))
use of certain nonprofit organizations
 Under the general rule of IRC Section 170(b)(1)(A), an individual’s tax
deduction for charitable contributions to public charities and private operating
foundations is limited to 50% of their contribution base (generally adjusted
gross income “AGI”) for the year
 A 30% limitation applies to contributions to semi-public charities and private
foundations and to contributions of capital gain property to public charities
 Contributions of appreciated property to semi-public charities and private
foundations are deductible only up to 20% of the donor’s contribution base
(AGI)
 The charitable contribution deduction for a C corporation is limited to 10
percent of its taxable income for the year
 Both individuals and corporations may carry over to the five succeeding taxable
years any amount of charitable contributions that exceed the deduction
limitations

5. PA BUDGET:
WHERE ARE WE NOW?
• In late May, HB1485, the budget proposal of the PA House of Representatives, passed by a
vote of 109-92 virtually along party lines. Although the House budget follows the Governor’s
proposed budget by keeping funding at $27.3 billion, it shifts funds through various cuts and
$27 3 billion
restorations. The House bill does not include the use of the $544 million in unexpected,
additional revenue.
• The Senate has begun work on the budget bill, and Senators generally would like to pass a
budget bill by this week. However, Governor Corbett has indicated that any budget coming in
even slightly above his proposed $27.3 would be vetoed.
• While the House budget adhered to the Governor’s $27.3, the Senate has indicated a
willingness t move slightly on th t number. S ifi ll on our J
illi to li htl that b Specifically, June 13 2011 Harrisburg
13, H i b
visits, it was clear that both the Senate and the House are open to using the $544 additional
revenue. However, all indicated trepidation that the Governor would support such a use of the
additional revenue.
• The Senate’s budget has yet to be made public and the word is that once it is made public, it
should be considered final.
• Although Representatives and Senators continue to indicate that the budget will be
completed on time this year, increasing discussion of the additionall revenue, as well as
l t d ti thi i i di i f th dditi ll
debate regarding potential plans to include a fee on natural gas drillers may delay the budget
into July.

6. Key Advocacy Areas
Early Childhood Community & Economic
Arts & Culture Welfare
Education Development
• Restore quality child • Restore the 70% cuts • Restore funds to Main • Restoring funding to
care subsidies, cuts to to arts funding to Street and Elm Street Medicare/Medicaid,
Pre-K classrooms leverage another $8 programs that have family support centers,
funded through million to serve over proven to be effective afterschool assistance
accountability block 840,000
840 000 children and in creating tax base in homeless shelters
grant, state funding for youth and transform and other programs
TEACH scholarships, neighborhoods under DPW that are
Keystone STARS critical to our
award community well being
Invest in Our Future! Cutting many of these cost cutting measures will cause
explosive increases in the future. Average cost per child through Family Support
Centers is $1,610 compared to the average cost p y to house a state
p g per year
prisoner of $22,650.
Why Cut What Works? Now is Not the Time!

7. Current Efforts and Next Steps
 District and Harrisburg Visits with Legislators
 What are the consequences and the impacts of the reduction in
funding to vital services?
 Spend now for future cost savings – destroying existing infrastructure
p g y g g
will obliterate necessary services now as well as in the future.
 June 13, 2011 Hill visits
 Action Alerts, Web site updates, text messaging, mobile platform
Alerts updates messaging
 WHY CUT WHAT WORKS?
 PA Budget Watch Se es
udget atc Series
 May 18 rally in Market Square, Downtown
 Press Conference June 9, 2011 at Family Resources

8. Membership Committee
316 Members
43 New Members
2011 Membership
93% Retention Rate!

9. Membership Committee

10. Membership Committee

11. Communications + Public Policy

12. Communications + Public Policy

13. Communications + Public Policy

14. Communications + Public Policy

15. 2012 Dues Changes
 Strategic Plan calls for more active public policy and advocacy
agenda t make a significant impact iin th region.
d to k i ifi t i t the i
 To accomplish this, we need to have additional income to
support skilled staff.
 Past 6 years, member dues have accounted for < 50% of total
budget; additional expenses have been covered by The Forbes
Funds ( (2011 member dues = $31,200).
$ )
 Just as our members are moving towards financial self-
sufficiency,
sufficiency we must move in that direction as well
well.
 Three-pronged approach to income generation: Member Dues,
Sponsorships + Foundation Grants.

16. 2012 Dues Structure
Current Increase in Fee
Operating Budget Dues 2012 Dues proposed for 2012
0-$999k $100 $100 0%
$1M-$4M $100 $200 100%
$4M-$10M $100 $300 200%
>$10M $100 $500 400%
Associate Members $100 $500 400%

17. Additional Considerations
 Associate Members – potentially two levels of membership
based on annual income.
 S h l hi Support – members and sponsors will h
Scholarship S t b d ill have
the opportunity to contribute to scholarship fund.
 Your input + comments are welcome and encouraged.
Please connect with staff.
ease co ect t sta

18. Stay Tuned!
 Continuous updates on the PA State Budget.
 Member orientation session on July 6th from 8:30AM to
9:30AM h t d b A h Sh
9 30AM hosted by Aryeh Sherman at JF&CS – new and
t d
existing members are encouraged to attend.
 Please complete your meeting evaluation and leave it at
t e eg st at o desk.
the registration des
Workshop Details
W k h D t il

19. Workshops 10:15 to 11:15
 Advocacy 101, Joe Geiger, Executive Director, PANO in
ALC 2 which is located up one level and you can take the
stairs or the elevator.
 Technology, Joe Polk, Senior Technical Specialist with the
Pennsylvania Technical Assistance Program (PennTAP)
Penn State University, in the Falk Library which is just across
the main hallway.