Posts Tagged non-profit

A Lump of Coal for Charities?–‘Fiscal cliff’ talks threatened Federal charitable tax deduction

The stubbornly sluggish economic recovery has created a perfect storm of bad economic news for the state’s charitable nonprofit sector. During times of economic distress funds dip as individuals and foundations see their fortunes decline. At the same time, the demand for services escalates as unemployment and related social ills soar. State and county governments, also caught in a vice between escalating demand and the inability to increase taxes on financially stressed taxpayers, cut funding to social service and charitable organizations.

And the problem could be about to get worse, much worse. One of the items on the table in the so-called “fiscal cliff” negotiations in Washington, D.C. is the scaling back or elimination of the Federal tax deduction for charitable contributions. While it is true many Americans give out of an innate sense of charity, with the income tax deduction being a secondary consideration, the deductibility of contributions does have an impact on whether or not a charitable contribution is made and how many dollars are given.

The Lincoln Institute of Public Opinion Research in conjunction with the Pennsylvania Association of Nonprofit Organizations (PANO) recently conducted the annual Pennsylvania Charitable Organizations Survey.  Seventy-five percent of the respondents said the loss of the Federal tax deduction for charitable contributions would have a negative effect on their organization – 40% said the effect would be “significant.”   Conversely, just 10% felt the loss of the deduction would have no effect, and 2% predicted a positive effect.

Business Climate

Despite the challenging environment in which they are operating, there was an increase in the number of charitable organizations that report their ability to fulfill their core mission has improved over the past year. Seventeen percent say they have a greater ability to carry out their core mission compared to the 11% who felt that way in 2011. In the current poll, 55% reported their ability to fulfill their core mission has remained about the same as last year, while 26% felt they have less ability to fulfill their core mission. That is down from the 31% who last year reported less ability.

Generally speaking, the nonprofit organizations participating in the Lincoln Institute/PANO poll felt business conditions in Pennsylvania have remained about the same over the past year. That, however, is not good news as the business climate for charities has been challenging in recent years. Despite that, 21% of the respondents said business conditions in the commonwealth have improved over the past year; that is up from just 8% who reported improving business conditions a year ago. Also, 24% said they felt the state’s business climate has gotten worse over the past twelve months; that is down from the 40% reporting a worsening business climate last year.

A further ray of optimism was reflected in responses to the question: Looking ahead one year, do you expect business conditions to be better, about the same or worse than they are today? Thirty-four percent said they expect business conditions in the state to improve over the coming year – that is up from the 27% who forecast an improving economic climate last year. Nineteen percent expect the state’s business climate to get worse, down from the 26% who last year predicted declining business conditions.   Forty-seven percent said they expect the state’s business climate to remain about the same over the coming year. Again, “about the same” means continuation of a business climate that is not favorable.

The Lincoln/PANO poll also found employment levels at Pennsylvania Nonprofits have declined over the past year. Fifty-six percent of the nonprofits participating in the survey said employment levels at their entity were about the same as a year ago. But, 26% said they employ fewer people than a year ago, while 18% reported more people on payroll.   Looking ahead, 21% forecast rising employment levels, while 13% expect employment at their nonprofit to drop.

Impact of a Sluggish Economy

The lingering economic downturn has had a negative impact on 82% of the nonprofits participating in the 2012 Pennsylvania Charitable Organizations Survey. Of that number, 25% said the negative impact on them has been “significant.” Twelve percent said the economic downturn has had no impact on them, while 6% said the bad economy has positively affected them.

Economic conditions have caused 26% of the nonprofits surveyed to cut services, while 24% say they have increased services as a result of the poor economy. Exactly half said their level of service has remained about the same over the past year. Thirty-eight percent of the nonprofits say they have cancelled or postponed expansion plans to deal with economic conditions. Thirty-two percent have had to lay-off staff; 29% have reduced employee hours; 27% have had to borrow operating money; 27% have cut or eliminated benefits; and 10% have cut salaries.

Looking ahead over the coming year, 48% participating in the Lincoln Institute/PANO poll said funding for their organization remained about the same in 2012 as it was in 2011. Twenty-six percent of the entities experienced a funding decline this year, while 21% saw an increase in revenue. Forty-two percent of the respondents report state funding has decreased over the past year, 18% said funding they receive from the state has remained about the same, while state funding has increased at just 3% of the nonprofits. Thirty-seven percent said they don’t receive or utilize state funding.

Sector Issues

Sixty-three percent of the poll’s respondents rated public trust in the nonprofit sector as “medium.”   Twenty-one percent rated public trust as “high,” while 11% said public trust levels were low. Looking back over the past couple of years, 45% said public trust was about the same, 28% said trust in such institutions is lower; 22% said trust levels are higher.

Given that many nonprofits receive some part of their funding from government, a number of entities engage in lobbying activities.   Just 6% of the respondents are registered under provisions of the Pennsylvania Lobbying Disclosure Act. But, 28% say they lobbied state government over the past year. Nineteen percent report having lobbied at the federal or county level, and 15% lobbied at the local level during the past twelve months. Looking ahead 29% say they expect to lobby government at some level on a public policy issue over the coming year, 51% do not expect to lobby.

Eighty percent of those participating in the Lincoln/PANO poll said they currently provide health insurance for their employees. Of that number, 48% report that the major portion of premiums is paid by the employer with some employee co-pay. Thirty-two percent reported the entire health care premium is covered by the employer.

The property tax exemption for nonprofits continues to face challenges by county and municipal governments. However, just 8% of those participating in the 2012 Pennsylvania Charitable Organizations Survey say they have had their property tax status challenged over the past two years. But, 20% are concerned that county or municipal government may challenge their status in coming years.


The 2012 Pennsylvania Charitable Organizations Survey was conducted by the Lincoln Institute of Public Opinion Research, Inc. in conjunction with the Pennsylvania Association of Nonprofit Organizations (PANO). The poll was conducted electronically between December 3, 2012 and December 17, 2012. A total of 289 nonprofit organizations participated in the survey.   Complete numeric results are available on-line here.

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Dear Friends of Lincoln Institute

Dear Friend of the Lincoln Institute:

“The price of liberty is eternal vigilance.”

That observation by Thomas Jefferson over 200 years ago is as true today as it was in colonial America.

Here in Pennsylvania, where the birth of a new nation was proclaimed from the steps of Independence Hall in Philadelphia, it is especially important that we stay true to our historic roots and maintain vigilance over the affairs of our national, state and local governments

Today, I am writing to ask for your help in our efforts to protect our liberties and preserve our personal freedoms.

As a reader of the Lincoln Institute’s web sites, recipient of our polling updates and opinion columns, and listener to our radio programs, you know that we champion free enterprise, individual liberty and common-sense conservative values.

We are unique among organizations in that we take our message to both a national and a statewide audience. Our nationally-syndicated American Radio Journal reaches listeners in 40 states through our network of over 150 radio stations. Here in Penn’s Woods, Lincoln Radio Journal airs on over 80 radio stations. We publish our own material on the internet at Plus, we accumulate the work of over 30 conservative organizations and writers on

Additionally, as we have since our founding nearly 20 years ago, we “take the pulse of Pennsylvania” through our polling, survey research and Public Opinion Court focus group projects. We recently completed our Spring 2012 Keystone Business Climate Survey of employers and business owners, and will be releasing results of additional polling projects over the summer months.

With the most liberal administration in history now controlling the federal government, and spending interests pressuring the governor and legislature in Harrisburg, there has never been a more critical time for our voice to be heard.

But, we are running into a problem and I need your help.

We are a nonprofit educational foundation, which means we don’t have clients. We rely solely on voluntary contributions from individuals, corporations and foundations to finance our programs. The cost of polling, producing and distributing our radio programs and maintaining our web sites are all paid for by these voluntary contributions.

I’ve done everything I can to cut expenses. But the plain facts are costs are going up.

That is why I need your help.

We have been fortunate that despite the recession our traditional donors have continued to support our work. But because of these difficult economic times some have had to reduce their contributions, and others have not able to give us more money so that we can cover the rising costs of continuing all of our projects.

So, I’m asking you today to send the most generous tax-deductible contribution you can.

I know you agree with me that our great nation can only survive and prosper so long as we heed Thomas Jefferson’s call to “eternal vigilance.” Both nationally and here in Pennsylvania, the work of the Lincoln Institute through public opinion polling, our radio programs, web sites and educational projects is providing that vigilance.

Can you help us meet the need by sending me $200.00, $100.00, $ 50.00, or whatever you can afford to help us maintain and expand our efforts on the critical issues which affect our lives, our futures – and most importantly, the Pennsylvania we leave for our children and grandchildren?

This is such a critical year. It would be a terrible shame if we couldn’t energize the debate on such important issues as reducing taxes and spending, fostering a business climate that creates jobs, checking the power of the labor unions and giving Pennsylvania families the right to choose their own schools just because we lack the funding to do the job.
Can I count on you?

If you have been looking for a way to make a real difference and get involved, please CLICK HERE to send the most generous tax-deductible contribution you can afford.



Chairman & CEO

P.S.    Remember, we cannot continue these projects without your contribution. CLICK HERE to make your donation to the Lincoln Institute. (If you can’t afford a large contribution at one time, you can become a recurring monthly donor.)

P.S.    If you do not wish to contribute over the Internet, contributions by check can be made payable to the Lincoln Institute of Public Opinion Research and mailed to:

Lincoln Institute

5405 Jonestown Road, Suite # 110

Harrisburg, PA 17112

P.S.    The Lincoln Institute is a 501c(3) non-profit educational foundation, so any donation you make is fully tax deductible as a charitable contribution. Can I please hear from you today?

The Lincoln Institute is classified by the IRS as a 501c3 educational foundation.

The Lincoln Institute does not support candidates for public office or proposed legislation at any level. The Lincoln Institute is registered with the Pennsylvania Bureau of Charitable Organizations.

Registration does not imply endorsement.

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Tough Times: Nonprofits struggle to deliver as recession lingers

The lingering national recession continues to have a profound negative effect on Pennsylvania nonprofit organizations, causing some to doubt their ability to fulfill their mission amid a growing sense of pessimism about the future. That is the overall picture to emerge from the Lincoln Institute’s 2011 Pennsylvania Charitable Organizations Survey.

Conducted in collaboration with the Pennsylvania Association of Nonprofit Organizations (PANO) the annual poll of nonprofit leaders from across the commonwealth found 89% have been negatively impacted by the recession. This has caused a third of the respondents to report they are less able to fulfill their mission than in past years. But, nonprofits are accustomed to doing more with less; as a result over half say their ability to fulfill their mission remains about the same, while 11% reported a greater ability to fulfill their core mission. “For now nonprofits are able to continue providing essential services,” said Joe Geiger, Executive Director of PANO. “But, they are doing this without the capacity to sustain their operations. Many challenges lie ahead.”

As with their for-profit counterparts, 2011 has been difficult economically for nonprofits. Forty percent said that business conditions in Pennsylvania have gotten worse over the past year; only 12% said the state’s economy has improved while 53% said conditions had remained about the same. Remaining the same, however, is not good in that last year by a four-to-one margin, charities reported business conditions had gotten worse.

Looking ahead, charities are less optimistic that business conditions will improve than they were at this time last year. Twenty-six percent said they expect business conditions to get worse in the coming 12 months, up from the 17% that predicted deteriorating conditions a year ago. Twenty-seven percent said they expect the economy to improve, down from the 38% who last year said they foresaw improving conditions.

One casualty of the ongoing recession is employment. Taken as a sector, nonprofits are a major employer in Pennsylvania. But, 30% said they have cut employment levels over the past year, while 17% have added to their payrolls. Employment remained stable at 53% of the agencies. Nonprofits are less optimistic of changing that course than they were last year. Nineteen percent said they expect employment levels at their business to increase over the coming year, down from 24% who forecast adding employees last year. Those predicting a drop in employment rise from 12% last year to 16% in the current survey.

Despite, or perhaps because, of the down economy 28% report they have increased services over the past year. Funding may be down, but at many organizations demand is up as families and individuals cope with chronic unemployment. Twenty-three percent say they have been forced to cut services, and 49% said their service levels have remained about the same.

To survive during the recession, 36% report they have been forced to discontinue providing some services (some while opting to increase others), while a third say they have cancelled or postponed expansion plans. Twenty-nine percent of the nonprofits have had to lay-off staff, 31% have reduced employee hours, 26% have cut or eliminated benefits and 12% have cut salaries. Twenty-two percent say they have been forced to borrow money to cover operational costs.

Health insurance remains a major cost driver for nonprofit businesses. Seventy-seven percent say they continue to provide health insurance to their employees, 3% have discontinued the benefit. Fifteen percent said they do not offer health care benefits to their employees and have no plans to do so in the future. Another 4% do not currently provide health insurance, but expect to begin doing so. Among those who do provide health insurance, 49% say the cost of coverage is split between employer and employee. At 22% of the organizations the employer covers the full cost of health insurance coverage.

In addition to economic difficulties, the nonprofit sector has struggled in recent years with a number of high profile scandals that have eroded public trust in charities. Respondents to the Lincoln Institute/PANO 2011 Pennsylvania Nonprofit Organizations Survey say the credibility climate has not improved. Forty-five percent said the level of public trust in charities has remained about the same over the past year, but 28% said it has gotten worse while only 21% said trust levels have improved. Asked to rate the current level of public trust in the work of charities, 61% rated it as medium, 16% as high and 16% as low. “Given the many contributions nonprofits make to our communities it is a shame the actions of a few have caused public perceptions to remain so low,” said Geiger.

Government Impact

The recession has negatively impacted individual and corporate contributions, adding to the woes of nonprofits has been declining funding from government. Forty-four percent of those participating in the Lincoln Institute/PANO poll said their level of funding from state government has decreased over the past year. State funding stayed about the same at 17% of the organizations and increased at 1%. Another 37% said they do not receive state funding.

When it comes to providing social services, counties get credit for being the most efficient. Thirty-eight percent said county government was the most efficient level of government in providing social services, 15% cited their local or municipal government; 15% gave state government credit for efficiency, only 5% said the federal government was the most efficient at providing social services.

A major issue impacting community benefit organizations throughout the state is lobbying. A new state law enacted several years ago requires nonprofits to register if they lobby for funding or improved public policy. Thirty-nine percent of those participating in the 2011 Pennsylvania Charitable Organizations Survey said they do not think nonprofits should be required to register under the Lobbyist Disclosure Act. Twenty-nine percent thought registering was a reasonable requirement. Thirty-two percent said they didn’t know or offered no opinion.

A substantial majority, 83%, said they are not registered to lobby, only 7% have registered as lobbyists with the commonwealth. Moreover, almost half said they do not understand what is required under the lobbyist disclosure laws. Despite this, 32% report having lobbied state government on a public policy issue during the past year, 17% have lobbied a local official (county, school district or municipality) and 14% have lobbied the federal government. Thirty-one percent said they plan to lobby over the coming year. “These numbers reflect a very low percentage of nonprofits engaging with government,” PANO’s Geiger explained. “Our sector must do a better job in working with elected officials.”

Financial Matters

A third of the nonprofit organizations surveyed by the Lincoln Institute/PANO said they have seen income to their entity decrease moderately since the beginning of the year, an additional 10% report having experienced a significant loss in income. Another third said income this year has remained about the same. At 20% of the nonprofits income is up moderately, 2% have seen a significant increase in income.

Among those reporting a decrease in funding, the biggest drop came in state funding as 28% report a moderate drop in dollars received from the commonwealth with an additional 21% reporting a significant drop in state funding. The next biggest decrease in income was from grant making foundation funding with 34% reporting a drop in grant dollars. Likewise, a third of the nonprofits say giving was down from individual donors. Those nonprofits reporting an increase in giving cited their biggest increase came from individuals (19%) followed by moderate increases from program fees (13%) and from foundations (8%).

A nugget of good news emerged in that 14% of the nonprofits report they plan to expand their operations in 2012, while just 2% forecast closing their doors.

Operational Issues

More nonprofit organizations are turning to social media as part of their communications plan. Ninety-four percent report they have established a Facebook page, 42% utilize Twitter; 35% communicated via Linked In; 32% are on YouTube, and 18% blog. Social media are not yet a major source of income for nonprofits. Sixty-nine percent say they have not tried to raise money via social media. Of those who have, 3% report having raised over $10,000, another 7% say they have raised over $1,000 and 13% have raised between $100 and $1,000.00.

Nonprofits are coming to terms with new IRS form 990 requirements that have been phased in over recent years. Sixty-four percent report not having any difficulty in dealing with the new forms, but 16% are still struggling to comply.

Despite high unemployment rates, staffing remains a problem at 39% of the nonprofits. Fifty-seven percent report not having difficulty in recruiting and hiring qualified staff. Of those having difficulty attracting qualified employees, 40% cite the lower salaries offered by nonprofits; 10% blame their inability to provide benefits; and 7% said prospective employees are not adequately qualified or prepared for the positions they have to offer.

Finding qualified board members continues to be a problem for many community benefit organizations. Thirty-three percent cited the fact potential board candidates are already committed to other organizations as the main reason for their unavailability; another 31% said potential board members lacked the time to participate on their board. An additional 25% said potential board members are not willing to fundraise.


The Lincoln Institute/PANO 2011 Pennsylvania Charitable Organizations Survey was conducted on-line from November 4, 2011 to December 5, 2011. A total of 213 Pennsylvania Charitable Organizations participated in the survey. Complete numeric results are available at

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This Week on the Lincoln Radio Journal: Curt Schroder & Gaming Reform

Program Schedule for the Week of September 24, 2011 – September 30, 2011

This week on Lincoln Radio Journal:

  • Lowman Henry has a Newsmaker interview with State Representative Curt Schroder of Chester County on reforming the state’s casino gaming system
  • Joe Geiger of the Pennsylvania Association of Nonprofit Organizations has Bets McManus of Leadership Cumberland in the Nonprofit Spotlight
  • Scott Paterno has an Uncomfortable Truth commentary on the role of money and consultants in political campaigns.

This week on American Radio Journal:

  • Lowman Henry talks with Andrew Moylan of the National Taxpayers Union about how NTU found common ground with the Left on proposed federal budget cuts
  • Andy Roth of the Club for Growth has the Real Story on skirmishes in congress as the federal budget deadline looms
  • Adam Tragone of Human Events has an Off The Cuff talk with Kate O’Hare, blogger for the Los Angeles Times about the recent California state Republican Party convention
  • Col. Frank Ryan, USMC (Ret.) takes on Warren Buffet and taxes on his American Radio Journal commentary

Visit the program web sites for more information about air times. There, you can also stream live or listen to past programs!

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This Week on American Radio Journal: Presidential Candidate Rick Santorum

The Week of September 3, 2011 – September 9, 2011
This week on American Radio Journal:
  • Lowman Henry catches up with former U.S. Senator Rick Santorum in the first of a series of interviews with candidates on the Presidential campaign trail
  • Col. Frank Ryan, USMC (Ret.) has an American Radio Journal commentary on why he is optimistic about our nation’s economic future
This week on Lincoln Radio Journal:
  • David Taylor of the Pennsylvania Manufacturers Association and Matthew Brouillette of the Commonwealth Foundation talk with Otto Banks of the REACH Alliance about the upcoming legislative battle over school choice
  • Lowman Henry has a Town Hall Commentary on the fall of John Perzel

Visit the program web sites for more information about air times. There, you can also stream live or listen to past programs!

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This Week on Lincoln Radio Journal: PA Lt. Governor Jim Cawley

On Air this August 27, 2011 – September 2, 2011

This week on Lincoln Radio Journal:

  • Lowman Henry talks with Pennsylvania Lieutenant Governor Jim Cawley about the Marcellus Shale Advisory Commission report
  • Joe Geiger has Michele Daly of the Women’s Resource Center in the Nonprofit Spotlight
  • And, Scott Paterno has an Uncomfortable Truth commentary on the environmental impact of electric cars.

This week on American Radio Journal:

  • Lowman Henry talks with Joe Hicks of PJ TV’s Minority Report and The Hicks File about the impact of multi-culturalism
  • Adam Tragone of Human Events has an Off The Cuff interview with Mark Steyn author of After America
  • And, Dr. Paul Kengor from the Center for Vision & Values at Grove City College has an American Radio Journal

commentary on the cause of our nation’s fiscal woes.

Visit the program web sites for more information about air times. There, you can also stream live or listen to past programs!

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COMING SOON…..The Lincoln Institute of Public Opinion Research Blog!

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