Property Taxes and Nonprofits

February 18th, 2011 by Bob Guinto

Nonprofits shrink their support and burden the rest of us

 Pic from www.thomastoons.com

Non-profits have a nice perk that exempts them from paying most of their property taxes without regards to the amount of square footage in their possession. Boston College officials are using this exemption to their advantage.

In an article from Boston.com, the Boston Redevelopment Authority “approved BC’s plans to convert a high-rise apartment building about a third of a mile from the Jesuit University’s main Chestnut Hill campus into a dormitory for 560 students.” Not only that, but BC is also planning on building a new baseball park and even more dormitory space in the coming years. The amount of property Boston College owns compared to other non-profit organizations in the area is quite drastic. Shouldn’t there be some kind of property tax on non-profits who have an exceedingly large amount of property like universities or the prestigious hospitals in the city?

Non-profit organizations that own more property compared to other non-profits in the same community should pay some kind of extra property tax. One solution is that the town forms regulations for non-profits. The regulations could consider the square footage that can be owned before the NP is forced to pay taxes.

Consider this: Boston earns most of its income from property taxes. But the non-profits in the area, including major universities and hospitals own 53 percent of the land in the city. According to Wikipedia, Boston has 89.6 square miles in land. This means that 53 percent of the land owned by these non-profits is tax exempt. Forcing hospitals and universities to pay more property taxes has the potential to help develop safe community centers for inner city youth, or affordable housing for low income families.

That is one option, but the universities themselves could make themselves available to these inner city youth by offering more tutoring centers, athletic clubs, English as a second language, the list can go on and on in the value these schools and hospitals can provide to the city.

Harvard University is in a league of its own when it comes to its expansion plans in Alston. Harvard officials are planning on constructing two new facilities each about 500,000 square feet in size. All of this land will be eligible for some kind of tax exemption.

In many communitites across the country nonprofits are placing an unfair burden of the property tax onto individuals under the guise of their nonprofit mission.  Boston is just one city where it has become an extreme portion of the tax base and a better solution is required. 

Congress and the IRS should create a solution that stops nonprofits from shrinking from their responsibility.  Reward those that have taken the initiative under  pilot tax programs and mandate those that refuse to participate with a user or head tax.  Already there is law preventing nonporofits from skipping out on the gasoline tax. 

Salaries Based on the Reality of Most Citizens

February 16th, 2011 by Bob Guinto

Nonprofits paying high price salaries

 pic by www.thomastoons.com

According to the US census bureau, 45% of all households in the US earn about $50,000 dollars for the year. The president of the United States makes $400,000 dollars a year. If a company were to say that their CEO will only make a salary equal to $400,000, the chances are that the candidate pool will expand substantially. Rather than hiring someone who may be the best qualified person for the job, but also demands a salary triple the size of $400,000.

For a non-profit organization to be willing to pay someone anymore than $400,000 dollars is simply ruining their chances of accomplishing their goals. For one, you hired someone who clearly isn’t as interested as the rest of the employees in accomplishing your organizations goals as opposed to raking in as much cash as possible. Too much money for one person means less income to achieve your organization’s mission.

It’s clear that the president of the United States has the hardest, most time consuming job in America. He is on call twenty four hours a day for four years until election time comes around where he’ll work even harder to get the same position for another four years. If he can live with a $400,000 dollar salary, any candidate for a president position either for non profits or for profits should be quite comfortable with such a lucrative salary.

Clearly many if not all of the fortune 500 companies did not get the memo about how reasonable a $400,000 dollar salary for their CEO’s is. According to the associated press, Goldman Sachs Group Inc.’s CEO, Lloyd Blankfein earned $42.9 million. Consider that only 2% of the households in the US earned $250,000 dollars or more in 2007. Is it really necessary for anybody in any kind of position to ask for more than $400,000 dollars a year for putting in hardly the same amount of work and strain the President puts on himself? I think not.

Boards of Nonprofit’s practicing the approval of these unreasonable salaries need to stop fooling their donors and focus on their mission and stop paying large salaries.   Any organization that wants to pay these high unreasonable salaries should become a for profit company.

Another alternative is the Board votes to lay off the high price individual and keep the workers actually delivering the mission of the organization. 

Gorden Helps Little Kids Cross The Street

February 15th, 2011 by Chris

Streets 

I know it is hard for little kids to cross the street because some little kids don’t look both ways because some people go really fast and the drivers do not look at the crosswalk. So here are some advice, if there is a car coming and they don’t see you then you should put your hand up. If it that will not work then shout at them. Gorden and his dad crossed the street when a car rushed past them and his dad shouted.

From Dad:

Being aware of our surroundings saves lives.  Driving brings with it the responsibility to concentrate on the task and not trying to do something else.  Nonprofits and businesses need to promote a no cell phone use while driving, especially on town and city streets.  A few recent studies have shown that using the cell phone is liking being under the influence of alcohol. 

I was amazed that Gorden needed to remind me that adults are not being responsible and because of it young children have to be more responsible than adults when crossing the street. 

Gorden asked: Why do so many adults not use crosswalks?

Wow Gorden, you make a good observation. It is adults who drive over people using crosswalks and the adults many times do not use crosswalks to cross the street.  I guess Gorden that makes you and your friends more responsible. 

Chris: Teachers

February 15th, 2011 by Chris

Who do we learn from 

pic from dick o tater 

Have you guys evey liked a teacher. Since their nice and their really good at teaching. Also at times if you don’t like your teachers, it just might be because they forget your a young person, including teenagers.   You might think they give you guys homework because they want to be mean, no that’s not it. They give you lots of homework because they believe that you can do it. I know that some are mean but their trying to teach you things and can get frustrated. So if you have a teacher that you don’t like, then just understand that their trying to help you learn in their style but being firm.

Giving With Heart

February 10th, 2011 by Bob Guinto

hassle

pic from flickr

I was at a board meeting recently and the conversation was about whether to have our next meeting on Valentines Day.  It highlighted how different the meaning of one day causes many to reflect about what is important. 

I would suggest to many nonprofits that this is a perfect time to send a day of thanks to its donors with a quick update of the major accomplishments the organization has made.  It would go a long way in keeping the donor connected to the organization. 

For those of you looking to make a long term impact on your relationship with someone you care for; donate to a nonprofit.  Go to Guidestar.com and type in your zip code to see the local organizations you can support.  This will provide you with a means to have your thoughts for this person continue throughout the year by the efforts of the nonprofit donated to on their behalf.   

In Boston, NPR (National Public Radio) raises money each year thorough a partnership with Winston Flowers and this year FedEx is donating the shipping.  This is a gift that keeps giving every day all year.  Now that’s a bargain.

Do your homework!

February 9th, 2011 by Chris

Do your home work 

pic by Cardcadann

I just did homework and it was a pain in the #$%@. I had to do math, social studies, science, reading, writing, and chorus. I know how it feels for the kids and especially for the adults. My dad says to me “did you rush to go back on your itouch or did you do it thoughtfuly and neat?” i mean come on i’m an A/B student. So heres my advice to you, do good in school and do your homework because it comes in many forms. It can have a reward and get your where you want,  like a new school. 

 From Dad:

Each day its about balancing the priorities.  It is important to listen to both sides of an issue. 

Motivation

February 7th, 2011 by Chris

Back from my break 

pic from Javiz

Hello everybody I’m back . Have you ever been working hard on something that you put a lot of effort on but then you forget about it. That’s why I came back to blog… There must be a way to remember, like your parents for instance have to work.   I’m not saying parents but also kids need a way to remember. Kids get to run and have fun but parents just sit on the bench. Some kids like to pretend to be parents. They do blogging, go to work and much more. I’ve  been motivated to get back to blogging.

                 Always remember that…YOU CAN HAVE FUN!!!!!!!

All in the Interpretation

March 23rd, 2010 by Bob Guinto

education writing material

pic by robin hutton

All in the Interpretation!  When it comes to deciding how to support education it is easy to notice that school materials are in a short supply or restricted for students in the public education system.  Nonprofits can make access to school materials a problem of the past if the local school district is willing to work with the nonprofit community.  Each District school should just make sure it sets the standard for what it needs.  Otherwise, the school will get the interpretation of what others call quality and quantity. 

Judging the Nonprofit Effort in Education

March 22nd, 2010 by Bob Guinto

thinking hard on education

pic by Robin Hutton

Stop thinking so hard on how to have a philanthropy inititive in tune with your business.  There is a great example. 

Stop thinking so hard on how as a nonprofit your organization can participate in education.  There is a great example.

Check out the Simon Youth Foundation as an educational alternative solution for Districts whom do not want the Charter school choice.

It is just one way for nonprofits and businesses to learn how to change their design and focus to join the education effort. 

A Review of Education Reform

March 15th, 2010 by Bob Guinto

what should education look like

Pic by Robin Hutton

Passing laws for the purpose of educational reform will not result in an improved educational system.  It takes change by individuals in Public Education schools to bring about dramatic improvement in students that are not achieving.  Lowering standards to allow students to graduate does no one any good if the result is a student whom is ill prepared for the work force or college. 

Educating students is not suppose to be easy under the current time limits.   It is easy to sit still and have time pass without the student participating.  It is easy to blame someone else for the failure of the education system.  It is easy to talk about change but takes time and energy to produce successful outcomes. 

So stop sitting back and get involved in changing education. the tools are there but it needs your effort to implement the change in your community.