Transcript State of the Rio Grande Valley Nonprofit Sector

State of the Rio Grande
Valley Nonprofit Sector
August 9, 2016
Presented by:
Lucila Lagace, Lagaceconsulting.com
And
Texas Association of Nonprofit Organizations (TANO)
Agenda – Nonprofits in South Texas
 Who Are We?
 What is Changing?
 How to Connect &
Advocate your Mission in
2017
Passionate Nonprofit
Leader
Who are We?
29 types of organizations that are taxexempt under Section 501(c) Internal
Revenue Code
 two primary categories of 501(c)(3)
organizations: private foundations and
charitable nonprofits

Where are we
in our sector
development?
We are Creating a
“Culture of Collaboration”
Sector Unity Though Collective Impact
 Public Awareness and Advocacy of the
“Uber -Duber Flywheel”
 Long Term Relationships with Private
Funders & Investors
 Leadership & Governance that is
Engaged and Educated on Nonprofit
Management & Social Innovation

Challenges and Opportunities
Public misconception of “Non Profit”
 Need for Local Professional Development
& Education
 Seizing instead of skipping Opportunities
for Collaboration and Strategic
Partnerships
 Need for Management Support
Organizations (MSO)

How do we Compare
National Numbers

1,507,231 tax-exempt organizations in the U.S.
(Source: NCCS Business Master File 2/2015)

According to the Bureau of Labor Statistics, the nonprofit sector employs
11.4 million people - that's 10.2 percent of the American workforce

If the global nonprofit sector were a country, it would have the sixteenth
largest economy in the world, according to GDP data compiled by the
World Bank.

In the United States, the nonprofit sector contributed $878 billion to
the economy in 2012, or about 5.4 percent of our nation’s GDP.
Texas Nonprofit Sector
106, 770 in 2016
Economics
The 403,196 nonprofit employees in Texas earned
nearly $16.8 billion wages in 2008, which translates
into roughly $1.6 billion in state and local tax
revenues
 This represents 3.8 percent of the total Texas
workforce (or 1 out of every 26 workers) and 4.6
percent of the state’s private workforce (or 1 out of
every 22 private workers).
 Nearly five times as many workers as the state’s oil
and gas extraction industry;
 Twenty percent more people than the entire Texas
state government

Texas Nonprofit Employment Update 2010: A Joint Product of the John Hopkins Center
for Civil Society Studies and OneStar Foundation – Texas Center for Social Impact
RGV Nonprofit Sector
1978 501c3s including support NPOs
(NCCS)
1390
Operating Public Charities
(2016 IRS Master List)
170 Staffed, Sustainable Funding,
Engaged & Collaborating at Some
Level
(Lagace Consulting 2009-2016 Analysis)
Rio Grande Valley Nonprofit
Sector (NCCS 2016)
Hidalgo County
Cameron County
1,000
869
Starr County
68
Willacy County
41
What is Changing?
• Funding – Impact Investing
• Funding – Internet Technology,
Crowd Funding & Pokemon Go
• Funding – Social Justice
• Awareness & Outreach – Social
Media
Connecting and Advocating for our
Missions
Advocacy Helps Us All Stand for
our Missions
Expect more regulatory legislation affecting
nonprofit sector
We must Mobilize sector, harnessing relationships
and impacting policy making
We must Track Texas legislative activity affecting
nonprofit sector


Arguably, the most important public policies
we have in the United States have come from
nonprofit organizations lobbying for their
causes…. These achievements may be largely
attributed to the strong leadership
of executive directors and board members
who knew that direct service alone would not
change the flawed or missing public policies
that contributed to the problems their
organizations were trying to alleviate.
--David F. Arons, in Nonprofit Governance
and Management

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



Federal Law Protects Nonprofit Advocacy
Nonprofit advocacy and lobbying are perfectly legal.
But don’t feel like you have to believe us – read for
yourself how the U.S. Constitution, Congress, and the
IRS have protected the rights of nonprofits to engage
in advocacy and legislative lobbying.
The Free & Easy 501(h) Election
Sometimes called the best, easiest, and cheapest
insurance in America, this little known form can
simplify life for most 501(c)(3) charitable nonprofits
advancing their missions through advocacy.
Benefits of Filing the 501(h) Election
For most charitable nonprofits, electing the
expenditure test by filing Form 5768 will provide
many benefits, including that it’s easier and safer.
Nonprofits & Elections

Nonprofits, Voting and Elections Online Guide
Nonprofits have a special role to play in
increasing voter turnout. Learn about the range
of permissible nonpartisan activities in the guide,
Nonprofits, Voting & Elections.

Nonprofit VOTE http://www.nonprofitvote.org/
Texas Legislature

State Recommendations
Creation of a senior Executive Branch Liaison to the
Nonprofit Sector
 The commitment of governments and nonprofit
providers to collaborate in streamlining and reforming
the existing dysfunctional contracting systems
 Collaboration between state and local governments and
nonprofit contractors and grantees


Creation of bi-partisan Nonprofit Caucuses in State
Legislatures to serve as resources for information on the
nonprofit sector through which lawmakers can work
together on legislative and regulatory issues impacting
charitable nonprofits and the people they serve in their
states and tap ideas and solutions tested in the real
world by organizations dedicated to serving their
communities.
https://www.councilofnonprofits.org/public-policy-agenda
Impact: A Little History

H.B. 492 - Task Force on Strengthening
Nonprofit Capacity (81st Legislature)

H.B. 1965 - Task Force on Improving
Relations with Nonprofits (82nd Legislature)

S.B. 993 – relating to the creation of the
Texas Nonprofit Council to assist with faith
and community-based initiatives (83rd
Legislature)
84th Legislative Nonprofit
Highlights

SB 200 PASSED: The original Senate version of
SB 200 carried the repeal of Gov. Code Section
535.055, which created the Texas Nonprofit
Council, an advisory board with crossagency
responsibilities to promote the nonprofit sector
generally. The final version of SB 200 removed
this repealer language and, thus, the council will
continue its role. Status: Effective 9-1-15
84th Legislative Nonprofit
Highlights



State agency fee collection check-offs
will generate charitable donations for
groups and causes favored by the
legislature
SB 272: As part of registering a motor vehicle and paying
fees, a revised DMV form permits a donation of additional
funds to the Special Olympics.
HB 3710: When applying for a license to carry a concealed
handgun, the state form will include space to donate
additional funds to a veteran’s assistance fund managed by
the state.
84th Legislative Nonprofit
Highlights

HB 583 PASSED: Judges can now require
a criminal defendant to make a
contribution to food bank charitable
organizations in lieu of performing
community service work hours as a
condition of probation sentencing. The bill
adds veterans charitable organizations as
eligible recipients under §42.12, Section
16(f), Code of Criminal Procedure. Status:
Effective 9-1-15
84th Legislative Nonprofit
Highlights

HB 1558 PASSED: Prevents a city from
enacting an ordinance that prevents a
religious organization from maintaining an
overnight shelter program in a church for
homeless children. Status: Effective 9-115
84th Legislative Nonprofit
Highlights

SB 31 PASSED (=HB 103, HB 105):
Volunteer firefighter or EMS organizations
will be able to hold up to ten fundraising
sales or auctions per year that are taxexempt sales events (amending Texas Tax
Code §151.310 that permits fewer such
events). Status: Effective 5-28-15
www.nonprofitlawandpolicy.com
READ IT ALL
84th Texas Legislature, 2015 Regular
Session
 SUMMARY OF ISSUES AFFECTING
NONPROFIT ORGANIZATIONS
 June 25, 2015 Final Report Compiled by
Richard W. Meyer, Attorney at Law and
TANO advisor.


What will you advocate for this legislative
session?

Who will you educate and inform?

What policies would help you achieve your
mission?
The State of the RGV
Nonprofit Sector is
STRONG
We Are Stronger
Together
We need more local research:
Be on the look out for the survey
& interviews this Fall
Does leadership style affect
organizational effectiveness
in South Texas nonprofit
organizations?
By: Desiree Mendez, PhD – C
Our Lady of the Lake University RGV
RESOURCES
www.tano.org
https://www.councilofnonprofits.org/
Texas Nonprofits By County
http://nccsweb.urban.org/PubApps/ge
oCounties.php?q=TX
http://texascbar.org/nonprofits/
http://standforyourmission.org/
www.Tano.org
Representing Texas Nationally https://www.councilofnonprofits.org
Want more? Keep in Touch.
LUCILA LAGACE, The Nonprofit Girl

512- 348-7378

Email: [email protected]

Website: www.lagaceconsulting.com


FB: /nonprofitgirl
Twitter: @txnpgirl
Instagram: TheNPGirl