By John C McGee, Principal at McGee Consulting
More FTC activity occurred in Oregon (Oregon FTC and NFP fraud). There seems to be more concern over fraudulent activity by non-profits. Discussions at all levels become interesting once-declining tax revenues are added in to the situation.
The House will be holding an oversight committee meeting on the IRS, which may help define the type of legislation or activity for this Congress. In addition, Guidestar is holding a free webinar on grant-making compliance (additional information can be found in the ‘announcement’ file below)
The Austin, Texas area has been identified with the highest per capita concentration of non-profit organizations in the country. Interesting article (TX Austin NFP glut) on what solutions might be out there for this ‘over-population’.
Just a side note on funding sources as it relates to all of the above:
Reports from all sources indicate that resources available to the non-profit sector are shrinking. Federal, state and local tax revenues are down meaning less government monies for programs run by non-profits, moreover it means greater pressure on the governmental entities to find new streams of income. The NFP universe will be scrutinized for any reasons to reduce, defer or eliminate considerations they currently enjoy in the tax code. Concurrent with these pressures are the escalating demands on the NFP sector to provide services to the newly unemployed, disenfranchised or temporarily disadvantaged citizens; while being expected to meet new standards/expectations of governance, accountability and transparency with potentially fewer resources.
Agencies that are in an effort to survive and prosper in these times need to be ever vigilant of the changing requirements placed on them – either directly by donors (government, foundations or individuals) or indirectly by being in a class of recipients who are covered by regulatory decisions. This is not the time to let one’s guard down on best practices, internal controls or compliance and governance issues.
