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Helping Nonprofits Help Arkansas

June 2013

Accountability


Arkansas Coalition for Excellence: Helping Nonprofits Help Arkansas We are proud to work with you to achieve ACE’s mission and vision together: Mission: Strengthen Arkansas Nonprofits Vision: A strong, vibrant, united and effective nonprofit sector that is well positioned to meet the diverse needs of all Arkansans. Our Core Values: Best Practices |Inclusive | Unity in Diversity | Connecting & Equipping | Statewide Vision | Regional Approach

IN THIS EDITION 3

Greetings from ACE

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Upcoming Trainings and Events

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Member Corner

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Advocacy Updates

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Are Annual Reports History?

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Resources & Other Links

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Contact Us

Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org

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GREETINGS FROM ACE ACE Members and Friends, This month we are highlighting accountability in nonprofit management. It’s a timely topic as most of us work within a July-June fiscal year which means it is time to engage in one of the most obvious and necessary forms of accountability – the annual fiscal audit. While for profit public corporate entities are accountable to their shareholders, the standard of accountability a nonprofit must hold is a very different thing. We are accountable to the public trust. We have an obligation to prove the dollars we spend are, in fact, being spent effectively on the common good for which they were intended. If viewed as an opportunity to make your case to the public that your organization is an exemplary model in fulfilling the requirements of your 501(c)(3) status, your audit report can become a valuable tool in making your case for future support. (See National Council of Nonprofit’s Audit Guide for Charitable Nonprofits). There are other forms of accountability for 501(c)(3) organizations. One is the responsibility to be accountable to the Internal Revenue Service by filing our 990 returns, when required, if we are to maintain our federal tax exempt status. The others are to register and file timely reports with the Arkansas Secretary of State and Attorney General’s offices. In a review of our membership, it appears there are many nonprofits that are not completing these reports. We urge nonprofit leadership to ensure their organization is following these requirements. (See page 8 of this newsletter). Beyond financial accountability, nonprofit leaders are also accountable to lead their organizations according to best practices, the law and community needs and standards. For to be truly accountable to the common good, we must operate within these parameters. The nonprofit CEO must have as his or her FIRST priority, the needs of the organization. Creating a culture that seeks and integrates accountability within organizations will go a long way to helping your organization easily meet its responsibilities and requirements. (See Arkansas Diamond Standards™ and Legal Guide for Nonprofit and Volunteer Organizations). Finally, as a nonprofit CEO, I am also accountable to those we serve. In our case, that is you, our member nonprofits. We strive to know the law and how it impacts the nonprofit sector. We also work to ensure we are offering the services and support you need (so be patient when there’s ANOTHER survey!) Finally, through the Arkansas Diamond Standards™, we are accountable to operate within the recognized standards in our field and community of service.

Sincerely, Stephanie F. Meincke, MSW President & CEO

Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org

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UPCOMING TRAININGS, EVENTS & PROGRAMS Building the Board of Your Dreams Host by the New Jersey Council of Nonprofits Tuesday, July 9 1:00 pm to 2:30 p.n. Webinar– Accessible online and by phone Cost: $35 for ACE Members $55 for nonmembers Register here. What Small Nonprofits Need to Know about Health Insurance under the Affordable Care Act Host by the National Council of Nonprofits Tuesday, July 30 2:30 pm to 3:30 p.n. Webinar– Accessible online and by phone Cost: Free ACE Member only Event– Not a Member? Join Today! Register here. A Celebration of Excellence ACE 10th Anniversary Dinner honoring Jim Harris, ACE Founder and Creator of the Arkansas Diamond Standards™ Keynote Speaker, Keith Jackson, P.A.R.K. Tuesday, September 17th 6:00 p.m. Cocktail Reception | 7:00 p.m. Dinner & Program William J. Clinton Presidential Center , Little Rock Cost: $100 for Individual $1,5,00 for Table Register here. Click here to view a video from Moving Forward ACE Annual Meeting & 10th Anniversary Celebration Featured Speaker: Robert Egger, President, L.A. Kitchen, Founder CForward Wednesday, September 18 10:00 a.m. to 3:00 p.m. Clinton Presidential Center Cost: ACE Members $55 All Day Nonmembers $75 All Day Lunch Only $35 Click here to view the full schedule and register.

our presenter Robert Egger

Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org

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New and Renewing Members

MEMBERSHIP 2012-13 MEMBERS OF THE MONTH McGehee Desha Alumni Community Center Alex Foundation Mission Outreach of Northeast Arkansas December

Sallis Ranch Large Animal Rescue

Independent Living Services

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El Dorado Connections February

Economics Arkansas

Safe Haven

Single Parent Scholarship Fund of Pulaski County

BENEFIT OF THE MONTH Discounted Background Checks Coeus Global will allow your nonprofit to effectively conduct background screening of paid staff and volunteers, track your applicants’ background checks, and make the best decisions about who to hire.

Carter Law Group, P.C., Little Rock - NEW | Cre8ive Arts Network, Greenwood - NEW |Independent Living Services, Conway |Hearts & Hooves, Sherwood | Children’s Advocacy Centers of Arkansas, Cabot |Searcy County Rural Help Center, St. Joe |Arkansas Public Administration Consortium, Little Rock | Counting on Each Other, Maumelle |Economics Arkansas, Little Rock |The Haven of Northeast Arkansas, Blytheville |Big Brothers Big Sisters of Central Arkansas, North Little Rock |Open Avenues, Rogers | Central Arkansas Library System, Little Rock | St. Bernard’s Developmental Foundation, Jonesboro | Arkansas Student Loan Authority, Little Rock | CASA of the Phillips County, Helena-West Helena| University of Central Arkansas Foundation, Conway| Northwest Arkansas Center for Equality, Fayetteville | Food Bank of Northeast Arkansas, Jonesboro | Mississippi County Union Mission, Blytheville | CASA of the 14th Judicial District, Harrison |Arkansas State CASA Association, Little Rock | U.S. Green Building Council, Arkansas Chapter, Little Rock NEW | Charles Burrell, Conway | Arkansas Festivals and Events Association, Little Rock | Argenta Community Theater, North Little Rock

Want to join our coalition of over 300 members dedicated to strengthening the nonprofit sector ? Contact Rebecca at 501.375.1223 or email rzimmermann @acenonprofit.org

Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org

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Arkansas Single Parent Scholarship Fund, Springdale | New Hearts Ministries of Arkansas, Lonoke - NEW |Lonoke County Council on Aging, Lonoke |CASA of the Tri-Peaks, Booneville |Hot Springs Jazz Society, Hot Springs | Habitat for Humanity of Saline County, Benton | CASA of Lonoke County, Lonoke |CASA of Crawford County, Van Buren Quapaw Quarter Association, Little Rock |Project Compassion, Fort Smith | Krysalis Consulting, Fayetteville | Arkansas Women in Agriculture, Texarkana | Friends of the North Fork and White Rivers, Mountain Home NEW |Childcare Aware of Northwest Arkansas, Springdale NEW |Susan Weinstein, Little Rock - NEW |Developmental Disabilities Provider Association, Little Rock | United Way of Garland County, Hot Springs |Treatment Homes, Little Rock |Tutoring Resources of Arkansas, Rogers |CASA of the Ouachita Region, Mena | New Hearts Ministries of Arkansas, Lonoke NEW | Lonoke County Council on Aging, Lonoke| CASA of the Tri-Peaks, Booneville |Hot Springs Jazz Society, Hot Springs |Habitat for Humanity of Saline County, Benton | CASA of Lonoke County, Lonoke | CASA of Crawford County, Van Buren | Quapaw Quarter Association, Little Rock |Project Compassion, Fort Smith | Krysalis Consulting, Fayetteville| Arkansas Women in Agriculture, Texarkana | Friends of the North Fork and White Rivers, Mountain Home NEW | Childcare Aware of Northwest Arkansas, Springdale NEW | Susan Weinstein, Little Rock - NEW |Developmental Disabilities Provider Association, Little Rock United Way of |Garland County, Hot Springs | Treatment Homes, Little Rock | Tutoring Resources of Arkansas, Rogers | CASA of the Ouachita Region, Mena

ADVOCACY UPDATES Getting Serious About Tax Reform Comprehensive tax reform remains on track despite the political scandal involving the Internal Revenue Service and the looming debt limit debate, according to the chairmen of the two tax-writing committees in Congress. Senator Max Baucus (D-MT), chair of the Senate Finance Committee, stated that he thinks the IRS “revelations are frankly helping to spur and help people realize the need for reform.” He has also suggested tax reform could be linked to raising the debt ceiling as a potential compromise to prevent a government shutdown. Representative Dave Camp (R-MI), chair of the House Ways and Means Committee, has indicated that Republicans hope to include a tax overhaul and possible changes to entitlement programs in a deal to raise the debt limit, which is likely to be negotiated in September or October. To keep momentum moving forward on comprehensive reform, Baucus and Camp plan to make joint appearances across the country to promote a tax overhaul, as they also host several bipartisan, bicameral lunches for rank-and-file members. As part of the tax reform investigation, the Senate Finance Committee recently released a staff report on tax-exempt organizations and charitable giving that reviews current law and the many alternative proposals on the table. The report, the ninth in a series by Committee staff, presents reform options in four broad areas: the charitable deduction, the taxation of business activities of nonprofits, the political activities and lobbying of tax-exempt organizations, and a final catch-all category of broad tax-exempt issues. Notably, the paper sets aside the fundamental question of “whether any revenues raised by tax reform should be used to lower tax rates, reduce deficits, or some combination of the two.” Click here for more.

Reprinted with permission from Nonprofit Advocacy Matters, a publication of the National Council of Nonprofits

Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org

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ARE ANNUAL REPORTS HISTORY? You’ve probably noticed that many charitable nonprofits have given their “annual reports” a make-over. We’re not referring to the annual corporate reports filed with the Secretary of State’s Office or the annual filing submitted to the IRS via the Form 990. We’re referring to the glossy, sometimes magazine-length, annual publication produced by many foundations and public charities to showcase their work and thank donors. Driving some of this change is cost – shorter annual reports reduce printing costs and use less paper which is better for the environment. But perhaps more importantly, there is growing recognition of the need to meet readers where they are: online and with little time to read long reports. Kivi Leroux Miller advocates for a two to four page printed annual report (or shorter still - a postcard). VolunteerMatch opened eyes with its 2011 annual report, consisting solely of one long infographic! Since digital messages can dramatically showcase missions using video, animation, and audio clips, a growing number of nonprofits, such as the Salvation Army (see their 2012 Annual Report), have switched from a paper publication altogether and now publish their annual reports completely online. A second driver of change in annual reports is the need to add more value. Nonprofits are not focusing the annual report’s lens solely on past “history” – but instead are using annual reports to expose the viewer to the promise of ongoing impact. No longer a tool used primarily to illustrate financial transparency and describe a nonprofit’s accountability to donors, annual reports are moving away from their original purpose, which is not necessarily a bad thing – as long as bells and whistles don’t take over. In Canada, there is a competition to recognize the “Best Practices in Charitable Annual Reporting.” A panel of judges reads hundreds of annual reports, and their lessons learned guidance offers insights on what the judges like best, and find troubling, about annual reports. Our neighbors to the north emphasize the importance of accountability, point out suggestions for striking a balance between “too much information” and “not enough content,” and emphasize that annual reports should communicate how the nonprofit’s performance is being measured – an expectation that has not received the same emphasis here in the United States until recently. Click here to read more. Reprinted with permission from Nonprofit Knowledge Matters, a publication of the National Council of Nonprofits

Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org

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RESOURCES AND OTHER LINKS IMPORTANT FILING DEADLINES FOR NONPROFITS -15th day of the 5 month after your organization’s accounting period ends: IRS Form 990, Form 990-EZ, & 990-N Who should file? The IRS states “Any organization recognized as exempt from Federal income tax must file an annual information return (Form 990, 990-EZ or 990-N) if it has averaged more than $50,000 in gross receipts for tax years 2010 and later over the past three tax years. Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, also known as the e-Postcard, unless they choose to file a complete Form 990 or Form 990-EZ instead.” For more information click here.

-Six months following the end of your organization’s fiscal year or May 15: Attorney General’s Annual Charity Registration Who should file? From the AG- “All charities that solicit donations in Arkansas must register and file annual informational returns with the Attorney General. The registration requirements also apply to paid solicitors and professional fundraisers.” For more information click here.

-August 1: Arkansas Secretary of State Annual Report for Nonprofit Corporations Who should file? All nonprofit corporations in the state of Arkansas. To view the form click here.

TRANSPARANCY AND YOUR NONPROFIT The IRS also requires that tax-exempt organizations provide the following documents to anyone who requests them on the day of the request: -Annual returns for three years after the due date, including any extensions: Form 990 990-EZ 990-PF 990-T filed after August 17, 2006 -All Form 990 schedules (except Schedule B), attachments, and supporting documents Application for exemption and all supporting documents: Form 1023 , if you filed the form on or after July 15, 1987 -Letter from the IRS ruling that your organization has tax-exempt status For more information on best practices in transparency and accountability , see the Principles and Practices for Nonprofit Excellence pages 10-11 from the Minnesota Council of Nonprofits. Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org

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LEADERSHIP TIP OF THE MONTH Four Corner Posts for Communications By: Mike Harbour, Harbour Resources Communication is key to any successful relationship. Countless books have been written on the subject of communication. Universities have degrees in communication. And yet, we often miss the mark on proper conveyance of the message. The reason is clear. We may be communicating, but our message is not connecting with our audience. John Maxwell states it well in the title of his book Everyone Communicates, Few Connect. Here are Four Corner Posts for Communicating and Connecting. 1. Be REAL. Leaders of organizations tend to have Copycat Syndrome. They observe that another leader is doing something a certain way and assume that if they do that, they will get the same results. That is not always the case. Read more...

IN THE KNOW Grantmanship Training Program Centers for Youth and Families will be hosting the Grantmanship Training Program from July 8th through the 12th. The cost for this 5-day workshop is $895 for more information click here or register here.

The Arkansas Diamond Standards™ Basic Infrastructure Checklist The Basic Infrastructure Checklist is an excellent resource to help you determine if your organization has the policies and procedures in place that will ensure accountability and transparency. And help your organization follow best practices in the areas of Mission, Money, Management, and Governance. To download a copy of this checklist, click here.

JOBS CENTER DHS Fellows for Public Services– Arkansas Department of Human Services Director of Development– Mid-America Science Museum

ACE Members can post jobs to the ACE Jobs Board for free as part of their membership. Click here to create your employer account.

Arkansas Coalition for Excellence | 200 River Market Avenue, Suite 100 | Little Rock, AR 72201 | 501.375.1223 | www.acenonprofit.org

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Thank you for reading this month’s edition of our newsletter. Questions or Comments? Contact us.

Stephanie F. Meincke, MSW President and CEO smeincke@acenonprofit.org Emily C. Ingram, Vice President eingram@acenonprofit.org Rebecca Zimmermann, Program Coordinator rzimmermann@acenonprofit.org Ivan Martinez, Membership Services, AmeriCorps*VISTA imartinez@acenonprofit.org

Helping Nonprofits Help Arkansas

Located within the Charles A. Frueauff Foundation Offices 200 River Market Avenue, Suite 100 Little Rock, AR 72201 (501) 375-1223 www.acenonprofit.org


ACE June 2013 Newsletter