[image_credit]REUTERS/Bing Guan[/image_credit][image_caption]With nonprofits employing 14% of Minnesota’s workforce and providing critical services like homeless shelters, food shelves, mental health supports and more, it is clear our region benefits from their great work.[/image_caption]
Businesses have been grateful for bipartisan support from the U.S. Congress and Minnesota state government for programs such as COVID-19 Economic Injury Disaster Loans (EIDL), the Paycheck Protection Program (PPP) and the Minnesota Main Street Grant program, and industry specific programs like Save Our Stages and the Restaurant Revitalization Fund. These have been vital to keeping businesses open, and the Minneapolis Regional Chamber strongly advocated for their value and need.
For many small businesses in our region, those funds provided them with the breathing room necessary to keep their doors open and keep their employees working during difficult circumstances over the past two years.
While many industries and sectors had access to one or more programs with dollars specific to meet their needs, the nonprofit sector has had no designated relief dollars for recovery. At the same time, the data from the Minnesota Council of Nonprofits show that 44% of nonprofits are still seeing an increase in demand for services, and 47% of nonprofits said they could only operate for 12 months or less before exhibiting financial distress. This is not sustainable.
Over the past two years many nonprofits faced exploding demand, a decimated volunteer force, and had to made quick (and often expensive) operational and safety changes during the pandemic. It’s time to recognize the extraordinarily vital role these partners have played above and beyond the state funds nonprofits receive to provide current services.
To continue delivering the support our communities need and to accelerate a more equitable recovery, Minnesota must invest in our nonprofits. That’s why the Minnesota Council of Nonprofits, with key partners, has proposed the creation of a Nonprofit Relief Fund, leveraging $200 million in federal relief dollars for nonprofits statewide.
[image_caption]Jonathan Weinhagen[/image_caption]
Nonprofits serve as economic multipliers by providing services, like after-school programs, elder care, and job training, which allow others to find employment and work outside the home. Nonprofits also stimulate economic activity – museums, cultural centers and similar nonprofits attract visitors who spend money at other nearby business.
With nonprofits employing 14% of Minnesota’s workforce and providing critical services like homeless shelters, food shelves, mental health supports and more, it is clear our region benefits from their great work. Utilizing a portion of the federal funds that have come to Minnesota to support our nonprofit partners is a smart investment that will benefit us all. On behalf of our region’s business community, I encourage the legislature to step up to support our critical nonprofits.
Jonathan Weinhagen is president & CEO of the Minneapolis Regional Chamber, the largest local chamber in Minnesota, and can be found on Twitter at @jweinhagen and @MplsChamber.
Every tax dollar that goes to a nonprofit should be accounted for. All you have to do is look at Feeding our Future to see why. The merger of tax dollars and private businesses leads to trouble in the accounting department.
Joe, Every tax dollar that goes to a nonprofit IS accounted for… quite extensively. Programs administered by state agencies (and county, AND city) whereby they give grants or contract community-based nonprofits to deliver services- all are monitored, audited, and rigorous reporting is required on the use of the funds, and performance measures. There are also rigorous processes to catch and report fraud. Which is why Feeding our Futures fraud was caught in the first place. There’s a lot of deep partnership between government and private business and nonprofits to execute on the goals of the state of MN to strengthen our quality of living, our physical infrastructure, as well as our people infrastructure as a state- it’s a web of interdepedency and it is a complex business relationship.
You can look DETAILED financial reporting on any nonprofit in the state- it is one of the most regulated, transparent, and accountable sectors of our economy. That is NOT the case for businesses who get aid from the state, grants, or contracts.
We need the trust of our community in order to do our work. When there’s a big headline about fraud of any kind- it certainly colors the lens with which we view ALL nonprofits. And fraud is just not that common… and when there is fraud… It’s caught.
Nothing against non-profits, but then there is this:
https://www.kare11.com/article/news/investigations/kare-11-investigates-allegations-of-fraud-in-meals-program-for-kids/89-7e3d8ab8-8fa3-4c56-aaa2-a87fcd4933db
Dennis,
This case of fraud certainly impacting the impression many have of the work of nonprofits. We’re all disappointed and disgusted. In reading about this fraud, it’s clear the intermediary organization didn’t have the infrastructure put in place to maintain good controls on the funds they were distributing. It’s important for anyone contracting with state or federal partners to have the financial infrastructure, processes, and systems to ensure proper use of the funds.
And in this case, when the state identified an issue, they acted swiftly. The regulatory process here worked (albeit was delayed by the courts) and the fraud was stopped.
In addition to the reporting requirements on the use of government funds that I shared in the comment above, the charitable nonprofit sector is the most transparent segment of the U.S. economy because of our public disclosures of revenues, expenses, salaries, and more – through the annual IRS Form 990 that is publicly available online. There will always be isolated cases of corruption in the nonprofit sector, but these are far fewer than abuses alleged in the for-profit sector and in government.
Trust is essential for the ability of charitable nonprofits to operate and advance their missions and it’s important to enforce the law because every case of corruption harms trust in the entire nonprofit sector. Those of us who work in nonprofits want the IRS and state charity officials to keep the bad actors out of the social sector, and they need sufficient resources to do that.
As someone who works in nonprofit human services- our organizations have been on the front line of the pandemic from DAY ONE. No one closed, our workers are exhausted and dealing with the trauma of working through difficult circumstances and the moral injury that comes with seeing SO MUCH NEED in the community and not having enough to meet the need.
Our organizations have spent down reserves, had to stretch ourselves incredibly thin to retain our employees during this time. An employment training program, a day care, or an after school program opens, then closes again because of COVID infections and the money stops flowing into the organization.
Nonprofits are a key part of the foundation of community well-being and while many of recovered from the impacts of this pandemic and economic strife- many of our community’s most vulnerable will be dealing with the lasting impacts for years to come- the loss of life in their families, the loss of income, or the loss of educational gains for their kids.
Community-based nonprofits are here for all Minnesotans at all stages of your life, and during the pandemic- we stepped up in a BIG way.
Investing relief dollars in these organizations is imperative- it’s a fragile infrastructure and it’s stability is seriously threatened right now. Nonprofits have NOT received operating relief dollars up to this point- and the legislature needs to act!