Week 10

Budget Plan Brings Big Changes to Tax Incentives for Donors –

            While this article was a little dry, it was informative. I don’t think that decreasing the amount that those in the top tax bracket can write off from charitable donations will have an enormous affect on charitable giving from that population of society. I agree with the article when it says that there are just too many loopholes in the tax system and it’s about time to cut back on the itemized deductions of the richest percent of our population. One part of the article I am still a little confused on is the estate tax. I don’t think that people should be able to pass on their estate without paying taxes on it, but what I am not clear on is how much it would be taxed, at what percentage, and if all estates will be taxed, even if they are only worth 50,000 dollars. Obama wants to get taxes back to what they were a few years ago, and since charitable donations haven’t seen a sharp decline since 2009 when the tax percent was higher and estates were taxed after a certain amount, I don’t think that we should worry about this decreasing donations from the richest population.

Donors and Nonprofits Face a Defining Moment in Responding to Crisis –

            One quote that really stood out to me in this article was that “even a rapid increase in charitable giving could not possibly make up for the cuts in government spending that will probably be made over the next decade”. As the government goes more and more into debt, the first things they tend to cut are safety net programs. This often leaves non-profits to pick up the slack, but I like that the article points out that with such high deficits, non-profits are really struggling picking up ALL the slack. I think that the U.K. has an incredible idea of issuing “social impact bonds”. In hard financial times, non-profits can’t rely just on the giving of donors and the funds from grants, and since the government can’t give as much assistance, looking to make non-profits “profitable” for investors may be the best option. I also liked that the author pointed out that while the financial crisis is ending, donors and non-profits should not stop searching for financial options, but should work to create something that will be viable for years to come. I really enjoyed this article.

A Newly Powerful Grant-Making Force: Artist-Endowed Foundations –

            I think that artist-endowed foundations are great and I am happy that the number of them out there is increasing. While philanthropists give to make organizations, for many different reasons, no one understands the struggles and hurdles of the art world better then an artist him/herself. These foundations also seem to have a great amount of control over the art that they own, which seems to make their assets more fluid and available to the public. The fact that these foundation hold art close to their hearts, and have close ties to the artist themselves, makes them a great asset to the charity world, especially in a time when art programs are taking large financial hits.

How to do Good and Prove It: Integrate Social Impact in Your Nonprofit’s DNA –

            I found that this article made a great deal of sense. Why would you want to give to a non-profit that was not sure if what they were doing was making an impact? I do think that the author might have been too harsh when he wrote that the inputs and activities that the organization had or were doing didn’t matter. I think that while the final impact is extremely important, if a non-profit has an extended plan, then there is no way to measure the final impact for sure, but it is possible to guess a measurement by what the inputs are and what is happening currently. I do like his idea of the short and sweet mission statement. You see so many mission statements now days that are increasingly vague and make you feel more confused about what the organization does, so to have a mission statement that says right there EXACTLY what they are there for would be nice for sure. I think that the author has a lot of great ideas about running non-profits. It reminds me of the “keep it simple stupid” saying, if you can’t measure what you are doing and if someone can’t figure out what you are there for, what’s the point in even running?