Right about now I’m sure you have some questions rattling around up there. They probably fall into one of the following basic categories.

- 1. “Who is ALF and why is he running for president?”

- 2. “Do nonprofits actually taste like cats?”

- 3. “Really, Michael. Why on earth would you dredge up an artifact like ALF and discuss it here on your nonprofit blog”

- 4. “I was more of a Perfect Strangers type of guy/gal, can you somehow relate the nonprofit sector to that show?”

- 5. “I’ll cut to the chase, is it hard being an unappreciated genius?”

Now, here comes the fun part. I will make an attempt to provide an evaluation of you based on the proximity of your thoughts to these five questions. Why? Because I find it mildly humorous… and it provides me with a quasi-interesting lead in to the topic of today’s post.

If you answered:

1- I’m sorry, but there are inherently at least two things wrong with this statement. First, if you don’t know who ALF is, that means you either were born post-ALF and therefore this and all future inquiries bear little meaning to the scribe of learnings artfully presented before you, or your life coincided with the glory of Gordon Shumway and, yet, your subconscious chose to ignore his greatness. Second, do you really need to question his quest for presidency?

2- Similar to the number above, but it shows me your thinking outside of the box. I like that.

3- Ah. You know of the ALF, but fail to see the application herein the world of the nonprofit sector. Congratulations. You are tragically hip. Now, go back to re-watching your boxed set of Six Feet Under.

4- Will you marry me?

5- My work here is done. The teacher has become student.

Ugh, get to the point already.

So, as you may have guessed it, if there was one thing that has shaped my life, for better or worse, more so than bikes, it is 80’s pop culture. It’s what I grew up with. Whether it was Magnum P.I., Murder She Wrote, or Reaganomics, I am what I am because of it.

As life has charted this path for me, so has it the journey of the nonprofit sector. I won’t get into the detailed history of organized philanthropy over the last century or so, but I would like to examine what has happened over the last several decades. Why focus on this temporal chunk of nonprofitness? Well, what has taken place recently in the sector has had a dramatic impact on the growth and future roles of nonprofits. America rode into the eighties on the coattails of many federally enacted policies and programs. The progressive nature of the 60’s and 70’s only served to incubate any number of services dedicated to the social welfare of our country. However, there seemed to be a fair amount of backlash to this liberal mindset during the 80’s. Politicians levied the goal of “getting America back on track” against many of these services that relied on federal support. The 80’s were a time in which conservatism ushered a shift within the nonprofit sector. Reagan had successfully decentralized government spending. To a point that support, which had previously fostered social welfare programs, had all but dried up. In a way this allowed altruism to do what it does best and help those now in need. Interestingly, this void left by unfunded or terminated federal programs spurred the growth of the nonprofit sector to become what it is today.

The irony, of course, is that post Reagan/Bush, we saw a massive influx of funding for both federal programs and support through federal grants to nonprofits. This accelerated the process of nonprofits filling a need in an absence of government intervention, the government eventually funding those said nonprofits, and the subsequent adoption of the nonprofits’ programs as a formal gov’t institution. It is the very model of efficiency. The government is allowed to distance itself from perhaps more radical or presently socially unacceptable programs, until the time is right to fund those programs or adopt them as their own. An example might be the needle exchange program. Junkies hooked on smack would be much less likely to contract diseases from shared needle use if the clean needles were readily available. Adopting a policy like this may have been political suicide, especially during the “war on drugs”, but organizations implemented the program, shared the results (a 2cent needle vs. a lifetime of healthcare costs) and eventually gained backing from gov’t. agencies.

What does this mean for the future of the nonprofit sector? What happens when the needs are met for social services, healthcare, and education? These questions and more to be answered, assuredly, at length, perhaps without 80’s pop references, next week. For now that’s all from The Rusty Spoke.

-michael

My most sincere apologies for the delay. I’m certain word has spread like a wildfire and many have been eagerly awaiting my weekly deluge of nonprofit goodness. We’ll you’re in luck. Put on you’re rain slicks ‘cause this is gonna be a torrent. You’re probably asking yourself “What on earth could possibly impede the conscious stream of intellect that flows so gracefully before my eyes?” One word- taxes. Lame excuse, I know. But, there is a silver lining to the bureaucratic cloud that looms over the week of April 15th. I was, for lack of better word, inspired.

As frequently happens ‘round Duncan Manor, I was conversing with a friend about the nonprofit sector and queried, “By chance, is there any thing you find perplexing about nonprofits?” Her response, “So, nonprofits- they can’t make any money?” With enthusiasm and subtle arrogance I relay that this is a fairly common misconception. Of course they can! Otherwise we probably wouldn’t ’ve witnessed support for such fervent growth in recent years. The next line of thought asks how one really defines the nonprofit sector and what motivates persons otherwise capable of working for the “for profit” world to jump ship and go, erhm… profitless?

Most readings I’ve come across suggest that for many it is more straightforward to define what a nonprofit isn’t rather than what it is, or perhaps it is easier to contrast the differences between gov’t, private, and nonprofit sectors. Well, I’ll save the philosophical thinkings for another time. For now I’d like to focus on a few things:

-Skrilla and how nonprofits make it.

-How this eventually ties into me and my taxes

-If at all possible, I’ll work in an example relating to bikes

Cash Rules Everything Around Me.

Often times I feel that much of life’s lessons ought be learned through the lyrical waxings of the Wu-Tang Clan. The concept is no different when applied to the world of nonprofits. While volunteerism is an integral part of the nonprofit sector, there are paid employees just like anywhere else. Where a nonprofit may differ from a business is the lack of profit sharing. If the year was good for a given organization and they sold more colored bracelets, stainless steel water bottles, canvas grocery bags, or whatever hip-to- slap-your-name-on product that happened to be hella rad this year, they cannot give the extra income to officers, members, or directors. It must go back into the organization. So, to again answer my friends question in a very public forum, yes, nonprofits can and do make money on a regular basis. Most nonprofits can take in revenue any number of ways. Funds can come from individual donors, grants, membership fees, and income from goods or services provided. And, yes, employees of nonprofits can be paid competitive wages- despite the stigma associated with the sector. As of note, wages are kept in check by an unpaid board of directors. Just in case anyone was getting the idea of starting a nonprofit and paying themselves eleventy-billion dollars.

Me and my taxes. I pay them and nonprofits don’t.

I always find that quite a bit of folks I talk to are really, really interested in the tax-exempt status of nonprofits. It’s as if there is some secret society of people that don’t pay taxes. There is this surreptitious element to it- like celebrity gossip or scientology. Well, let us take a peek behind Oz’s curtain.

To clarify not all nonprofits are tax exempt, just those classified as 501(c)(3)-(27).

And, that encompasses all sorts of different types of nonprofits ranging from trade associations to social clubs. The big one, however, is the 501(c)(3). This group includes private foundations and public charities such as religious, educational, scientific organizations, among others. What makes a nonprofit that is 501(c)(3) status unique, is that contributions to such an organization are tax deductible. I made no contributions worth claiming this year, so I was outta luck. Maybe next year.

Oh and the bike example. Well, I’d like to look into this a bit more, but right now I’m thinkin’

-Charitable Organization Provides Youth Outdoor Bike Program

-Land Donated to Organization is Write Off?

-Nonprofit Owned Land Exempt from Property Taxes

I’ll try to track down a good one for ya next time.

-michael

Inaugural Post!

Welcome! You may have stumbled across this blog for one of several reasons:

1. You’re a student in PPPM 280 at the U of O and, like myself, have been asked to start a blogish-like account relating your mastery of the nonprofit world as taught by the magnificent Bob Choquette and the astute Sarah Collins.
2. You googled “The Rusty Spoke” in search of the Phoenix based community bicycle collective (not affiliated).
3. You’re restoring a vintage bike and seek the use of “Introduction to the Nonprofit Sector” to de-rustify them spokes.

All poorly constructed humor aside, the purpose of this blog is to explore the adventure we’ve come to know as the nonprofit sector through the lens of a cycling advocate. I will attempt to bridge the divide between bike culture, transportation planning and the nonprofit phenomena. I’ve tried to craft a certain voice for these writings in such that I hope to walk the fine line between informative and informal, sophisticated and smarmy, genius and... well, you get the point.

Next item on the list- “Who am I?”

Tough question. I often find myself asking the same thing. Although, perhaps on a more philosophical level, of course. For the sake of brevity I’ll cover the basics:

-Planning, Public Policy and Management undergad. Check

-Nonprofit minor. Check.

-Mondo Bike Dork. Yup.

-Preference of hi-fives and hugs to handshakes. Yarp?

-Favorite ninja turtle? Michelangelo, of course!

I’ve also been involved in several projects, ranging from a GIS analysis of campus bike thefts to the development of an action plan to engage cyclists and activate bike culture within Lane County.

I plan utilizing my background, including ninja turtle references, to become a project manager for an organization that implements bike culture and active transportation infrastructure in areas otherwise devoid of such resources. Whoot.

What I do expect of you? Not a whole lot. But, it’d be nice if you would toss a comment or two my way. Please feel free to share what reactions, ideas, or resources you think would help foster an enlightening exchange of blogaliciousness.

Allow me to rewind a bit for ya. You may inquire, “Nonprofit phenomena?”, see above, “What’s this guy talking about?” Well, for those of you not in the know. The nonprofit sector has been building momentum for some time now and continues to do so, despite the current economic downturn. Presently, there are over 1.5 million non-profits registered in the States (as per 501(c) forms). Of those, nearly two-thirds are public charities or private foundations. In fact, depending on where you get your data, the nonprofit sector accounts for roughly five percent of our GDP, totaling $1.6 trillion in revenue and $3.4 trillion in assets. Paid employment from nonprofit organizations number 13 million-ish in addition to 5-ish million full-time volunteers. Do the math. Totaling nearly 20 million workers, nothing short of amazing. Not convinced yet. Between 1995 and 2005 the number of nonprofit organizations registered with the IRS increased by nearly 27 percent- 501(c)(3)’s alone grew by 50 percent!

With any luck, this vomitorium of data hasn’t scared you away. Hopefully, you’re asking the question “What does all this mean?” Or, better yet, you think you know what it means and you’d like to leave a brilliant comment for me ignore erhm… ruminate on.

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Well, for me, it represents opportunity. And, I’ll just let it sit there ‘til next week.

-michael