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                    <text>MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

MNF Summit - February 28. 1992
"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan's Government and Business Community"
Audience Members
Ms. Susan Bolhouse
Vice President
Waverly Board of Education

Mr. William Dansby
Executive Vice President
Michigan Optometric Association

Mr. Paul Booden
Director
Michigan Health Occupations

Mr. Arthur Dudley
President
Greater Lansing Urban League

Judge Thomas E. Brennan
President
Thomas M. Cooley Law School

Mr. David O. Egner
Executive Assistant to the Chairman
W.K. Kellogg Foundation

Dr. Christopher M. Clark
Professor of Education
Michigan State University

Mr. David Fukuzawa
Program Director
The Skillman Foundation

Ms. Donna M. Clarke
Administrative Assistant
Michigan Nonprofit Forum

Ms. Barbara K. Goldman
Office of Ombudsman
Department of Commerce

Dr. Kenneth E. Corey
Dean, College of Science
Michigan State University

Mr. James Helmrich
Public Relations Director
Michigan Bell Telephone Company

�Ms. Dorothy A. Johnson
President
Council of Michigan Foundations

Ms. Judith A. Rapanos
Chairman
MI Council for Arts &amp; Cultural Affairs

Mr. Justin P. King
Executive Director
MI Association of School Boards

Dr. Rene Rosenbaum
Research Associate
Julian Samora Research Institute

Mr. Glenn F. Kossick
Executive Director
Metro Health Foundation

Dr. Glenn R. Stevens
Executive Director
Presidents Council,
State Universities of Michigan

Mr. Forrest Lewis
CPA
Plante &amp; Moran
Mr. Robert S. Lewis
Consultant
Lewis Associates

Mrs. Maryann Tillson
Administrative Secretary
Michigan Nonprofit Forum
Rev. Leonard M. Young
Michigan Region President
RLDS Church

Ms. Frances Parker
President
League of Women Voters of Michigan
Ms. Sharon Parks
Senior Research Associate
Michigan League for Human Services
Mr. W. Calvin Patterson
Executive Director
McGregor Fund
Ms. Linda Patterson
Administrative Director
Council of Michigan Foundations
Ms. Helen C. Philpott
Chairman
Community Foundation of Greater Flint
Ms. Sharon Radtke
Executive Director
Voluntary Action Center of
Greater Lansing

ref:03/09/92, su mma ud i, 1 »t\ rog ra ms\su nunit\ 400

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                    <text>MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327

MNF Summit - February 28. 1992
"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan's Government and Business Community"
Audience Members
Ms. Susan Bolhouse
Vice President
Waverly Board of Education

Mr. William Dansby
Executive Vice President
Michigan Optometric Association

Mr. Paul Booden
Director
Michigan Health Occupations

Mr. Arthur Dudley
President
Greater Lansing Urban League

Judge Thomas E. Brennan
President
Thomas M. Cooley Law School

Mr. David 0. Egner
Executive Assistant to the Chainnan
W.K. Kellogg Foundation

Dr. Christopher M. Clark
Professor of Education
Michigan State University

Mr. David Fukuzawa
Program Director
The Skillman Foundation

Ms. Donna M. Clarke
Administrative Assistant
Michigan Nonprofit Forum

Ms. Barbara K. Goldman
Office of Ombudsman
Department of Commerce

Dr. Kenneth E. Corey
Dean, College of Science
Michigan State University

Mr. James Helmrich
Public Relations Director
Michigan Bell Telephone Company

�Ms. Dorothy A. Johnson
President
Council of Michigan Foundations

Ms. Judith A. Rapanos
Chairman
MI Council for Arts &amp; Cultural Affairs

Mr. Justin P. King
Executive Director
MI Association of School Boards

Dr. Rene Rosenbaum
Research Associate
Julian Samora Research Institute

Mr. Glenn F. Kossick
Executive Director
Metro Health Foundation

Dr. Glenn R. Stevens
Executive Director
~denuCouncil,

State U Diversities of Michigan
Mr. Forrest Lewis
CPA
Plante &amp; Moran

Mrs. Maryann Tillson
Administrative Secretary
Michigan Nonprofit Forum

Mr. Robert S. Lewis
Consultant
Lewis Associates

Rev. Leonard M. Young
Michigan Region President
RLDS Church

Ms. Frances Parker
President
League of Women Voters of Michigan
Ms. Sharon Parks
Senior Research Associate
Michigan League for Human Services
Mr. W. Calvin Patterson
Executive Director
McGregor Fund
Ms. Linda Patterson
Administrative Director
Council of Michigan Foundations
Ms. Helen C. Philpott
Chairman
Community Foundation of Greater Flint
Ms. Sharon Radtke
Executive Director
Voluntary Action Center of
Greater Lansing

ref:03109/92,..m!Nndi .lll\propama\lummit\6400

2

�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, :MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327

MNF Summit- Febmary 28. 1992
"Partnerships for Peopk and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan's Government and Business Community"
Audience Members
Ms. Susan Bolhouse
Vice President
Waverly Board of Education

Mr. William Dansby
Executive Vice President
Michigan Optometric Association

Mr. Paul Booden
Director
Michigan Health Occupations

Mr. Arthur Dudley
President
Greater Lansing Urban League

Judge Thomas E. Brennan
President
Thomas M. Cooley Law School

Mr. David 0. Egner
Executive Assistant to the Chainnan
W .K. Kellogg Foundation

Dr. Christopher M. Clark
Professor of Education
Michigan State University

Mr. David Fukuzawa
Program Director
The Skillman Foundation

Ms. Donna M. Clarke
Administrative Assistant
Michigan Nonprofit Forum

Ms. Barbara K. Goldman
Office of Ombudsman
Department of Commerce

Dr. Kenneth E. Corey
Dean, College of Science
Michigan State University

Mr. James Helmrich
Public Relations Director
Michigan Bell Telephone Company

�Ms. Dorothy A. Johnson
President
Council of Michigan Foundations

Ms. Judith A. Rapanos
Chairman
MI Council for Arts &amp; Cultural Affairs

Mr. Justin P. King
Executive Director
MI Association of School Boards

Dr. Rene Rosenbaum
Research Associate
Julian Samora Research Institute

Mr. Glenn F. Kossick
Executive Director
Metro Health Foundation

Dr. Glenn R. Stevens
Executive Director
Presidents Council,
State Universities of Michigan

Mr. Forrest Lewis
CPA
Plante &amp; Moran

Mrs. Maryann Tillson
Administrative Secretary
Michigan Nonprofit Forum

Mr. Robert S. Lewis
Consultant
Lewis Associates

Rev. Leonard M. Young
Michigan Region President
RLDS Church

Ms. Frances Parker
President
League of Women Voters of Michigan
Ms. Sharon Parks
Senior Research Associate
Michigan League for Human Services
Mr. W. Calvin Patterson
Executive Director
McGregor Fund

Ms. Linda Patterson
Administrative Director
Council of Michigan Foundations
Ms. Helen C. Philpott
Chairman
Community Foundation of Greater Flint
Ms. Sharon Radtke
Executive Director
Voluntary Action Center of
Greater Lansing

nf:03109/92,annmaudi.lll\propama\lummit\6400

2

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MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

January 24, 1992

MEMORANDUM
TO: Planning Group for the First MNF Summit (February 28, 1992)
FROM: Maryellen Lewis
SUBJECT: Update

I hope your holidays were relaxing and your new year full of promise!
We have made much progress on the Summit since our December 19 meeting.
Despite the holiday season, we received many additional nominations for the panel from
MNF Board members and others. It became clear that we had many more candidates in our
top priority list than we could accommodate in 15 chairs!
Ed Blews, Russ Mawby and I began issuing invitations from -the expanded list,
keeping in mind the issues of balance and representation you all emphasized. It promises to
be a strong, dynamic panel!
We still need your additional recommendations in a few areas. I attach a
questionnaire asking for your best advice, and hope you will fax it back as soon as possible.

encl: Questionnaire
ref:pp20120,prog\summit,6400\mjt

�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

Recommendations for Panelists
for the
February 28 l\1NF Summit
PLEASE INCLUDE ADDRESSES AND PHONE NUMBERS
1. These people should be considered TOP PRIORITY CANDIDATES for this discussion
of the changing role of Michigan's nonprofit sector in relation to government and business.
They are articulate but also balanced, and would contribute greatly to an enlightening
dialogue.

a. NONPROFIT LEADERS:

b. GOVERNMENT LEADERS:

c. BUSINESS LEADERS :

2. These are top-notch minority leaders [including names listed above] I nominate:

3. These are top-notch women leaders [including names listed above] I nominate:

4. These are outstate leaders in business and the nonprofit sector who should also be
considered [including names listed above] :

ref:nom20120,prog\summit,6400\mjt

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                    <text>MICHIGAN NONPROFIT FORUM

MNF SUMMIT

February 28, 1992

"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan's Government and Business Community

�MICHIGAN NONPROFIT FORUM
SUMMIT
February 28, 1992

Lewis:

I hate to say that we're already running a little late, so its
not a great way to start but its just an exciting morning. I
want to welcome you to this first Summit of the Michigan
Nonprofit Forum.
I'm Maryellen Lewis.
I'm the Executive
Director of the Michigan Nonprofit Forum which is sponsoring
this event. You'll be hearing much more about it when it's on
the tape. Right now, we're not so I can be a little more
relaxed.
We have a very, very distinguished panel here this morning,
representing
leadership from all three parts of our
communities — government, business and the non-profit sector.
We also have a very, very distinguished audience, so I know
jthat its going to be very lively. You will be hearing more
about that when our moderator begins.
I want you to be
encouraged to speak up, to make your comments, particularly
the audience at the invited sections, to be sure that you
don't feel intimidated by these cameras around here or the
fact that there are television lights focused down on you.
You will be getting an overview of this morning's program from
our moderator, but I wanted to take a few minutes to give you
a little orientation, just as a set-up, because I know it may
be unfamiliar to some of you. In case you hadn't noticed,
you're being filmed and taped, but I don't want you to be
nervous about that. There have been a lot of arrangements
made to make this as accommodating as possible.
The tables are triple clothed so that there won't be a noise
problem. You have no need to worry about the mikes. You
don't have to touch them. In fact, it would be much better if
you didn't. And you don't need to lean in to them. Just
speak normally. They're set up to accommodate to you. It
would be best if you did pay a little attention to your papers
and not have the papers brush up against the microphones.
That can cause some problems.
Also, please keep in mind that the discussion is not just
among the people who are here today, although that's your
immediate audience. But because this is being taped, we will
be editing the tape and it will be used through our network
statewide for educating and informing the public around the
state about these very issues. They will be used at ... the
edited tape will be used as a stimulus for round table
discussions in various parts of the state.
I should also
point out that word "editing" means that you don't have to
worry too much if you make some kind of a snafu and you want
it cut out, it will go right on the cutting room floor.

�The cameras. . .The microphones are automatic. That is, when
you begin to speak, the microphones automatically pick you up.
That means that if you're talking to your neighbors, it will
pick you up. So please pay a little bit of attention to that.
However, the cameras are not automatic and because of that, we
will need to pay a little bit of attention to accommodating to
our camera crews. So our moderator will recognize you. If
you wouldn't mind paying some attention to this moment of
having him recognize you so that the camera can then turn to
you. Now that may get a little more difficult if things get
a little hot, but, for the most part, we'll try to do that.
And with this audience that we have here, I'd like to make two
points for you so that you're fully aware of this. This mike
is not 1 ive now, I be 1 ieve, but wil 1 be when we have the
points where the audience will be invited to speak. When you
speak, would you please wait to be recognized by the moderator
_so that, again, the cameras can focus on you. You might want
to, during the discussion, take some notes (There is notepaper
in your folders. ) so that you can direct your comments to
specific people or points that were raised. And remember it
will be edited so your comments can then be put adjacent to
those comments in the final tape. Also, when you do speak,
please say your name, your organization and your title so that
those who are not here in this room and who won't know you
will have some understanding of where you are coming from.
And now I think that we're ready to begin. I see the cameras
are all focused and ready. Our moderator this morning is
someone that most of you already know very well. He is the
President of the Association of Independent Colleges and
Universities of Michigan, and he is also the Chair of the
Public Policy Committee of the Michigan Nonprofit Forum. I'm
very pleased to introduce to you Dr. Edward Blews.
Blews:

Thank you, Maryellen. These are my pre-camera remarks. I'm
your Phil Donohue for the day. I will be much kinder, though,
than he generally is to his audiences. I would like to offer
a, word of commendation to Maryellen Lewis and our MNF
Executive Director and her staff for all of the work that they
have put into this wonderful project. And I'd like to thank
each of you leaders who graciously consented to participate.
This is an exciting but maiden voyage and trial run of a grand
experiment, so please bear with us and be adaptable as we go.
Before the cameras roll, I would like to share just a few
comments and ground rules about the logistics. First, about
the format.
From now until about 9:40 we' 11 have the
introduction of the Summit, Dr. Robert Payton's comments,
we' 11 set the stage for dialogue, and then we' 11 have the
introduction of the panelists, and it's my job to try to keep
us on track with that process. Then from about 9:40 to noon,

�with a mid-morning break I assure you, we will go through
three stages of dialogue. Stage 1 involves identification,
definition and values of the nonprofit sector. Stage 2 will
speak to the relationship between government, business, the
nonprofit sector and the changing dynamics, issues and
tensions that are at play in those relationships. Stage 3
will involve insights for the future of the relationship or
the question, "Where do we go from here?" That gives all of
you, then a sense of where we hope to be going today.
A few other preparatory comments for the panelists in addition
to what Maryellen has shared, and as panelists you'll want to
be prepared for a couple of steps that will come very quickly
after Dr. Payton's remarks. First, we ask you to please be
prepared to briefly introduce yourselves around the table. So
rather than having the moderator drone on as you sit there and
stiffly smile and the camera pans the room, each of you will
_tell the audience, both the video tape audience and the real
"people in the audience here, who you are. We ask you to be
very brief in that and share this information about yourself:
your name, your title, the name of your organization, and one
sentence about what you represent or the constituency or
interest that you represent. If you wish, you're welcome to
write out a note about that before that point in the program.
A fore-warning. To begin Stage 1, we will play a little word
association game. I'm not going to tell you what the word is
yet or you won't be very spontaneous about it. But we ask
you. . .There will be two of these, and we ask you to write that
word on what should be a fairly stiff piece of card-type paper
in front of you. And you'll want to locate that and be sure
that you have that. The one word you'll write on the one side
and then write the other on the other, and you' ve got a
marking pen at your table so you can write it nice and legibly
and boldly and largely so that as we go around and do this
word association, we'll ask you to hold up the card and be
sure to point it toward a camera so that as you say the word,
the camera can also visually pick up the association that you
have made.
Thirdly, in our discussion we want to focus on principles,
dynamics and relationships. Please feel free to cite cases or
issues in illustration of principles or relationships; but
let's avoid debating interminably specific issues or specific
-political issues.
We want to focus on principles and on
relationships here.
Though 3 hours seems like a lot of time, with the caliber of
the hearts and minds on this panel, I assure you that it will
fly and it already is flying. We have a full agenda, so
please be frank and forceful in your comments, but also try to
be succinct. On the other hand, I will need plenty of help in

�trying to moderate this panel, particularly in avoiding dead
space on the air. So please be ready to jump in — freely
jump in. But I do ask you to give some sort of a signal when
you're ready to speak out so that I can attempt to recognize
you and that also gives us the pause that brings the camera
around to you. If you use acronyms, please help to interpret
them. Realize that we're talking to an audience that does not
necessarily know what ICUM is which happens to be the acronym
for our association. I doubt that any of you knew what that
acronym meant until I just mentioned it.
And then an invitation to the audience.
As Maryellen has
mentioned, there will be 2 points in the program where you
will be invited to come to the microphone here and join in the
discussion. The first will occur at the end of Stage 1 of the
discussion when we talk about identification of the nonprofit
sector, and then the second will come at the end of Stage 3 as
we try to bring a sense of closure and a sense of conclusion
to the deliberations of the day.
I trust that I have anticipated any questions that you may
have and, having said that then, we will not proceed with all
due warning to the cameras to the formal part of the program
here today.
Hello. It is my privilege to welcome you to this special and
first summit/ sponsored by the Michigan Nonprofit Forum. On
behalf of the forum's Chair, Dr. Russell Mawby, our Executive
Director, Maryellen Lewis, and the Board of Directors of the
Forum, many of whom are gathered in this room, we invite you
to brace yourself for a lively and energetic dialogue about
some issues and relationships very important in our society
today. My name is Edward Blews, and in my professional life,
I serve as the President of the of the Association of
Independent Colleges and Universities of Michigan.
But I
stand before you today, as a member of the Board of Directors
of the Michigan Nonprofit Forum. Established in 1988, the
Michigan Nonprofit Forum is a dynamic new coalition of
statewide organizations and leaders representing the wonderful
diversity of nonprofit entities. The Michigan Nonprofit Forum
describes itself as, and I quote, "...a statewide alliance to
promote the awareness and effectiveness of Michigan's
nonprofit sector and to advance the cause of volunteerism and
philanthropy in the state^jj In its relatively short life but
rapid maturation, the Forum has evolved into an enterprise
charged with achieving a new awareness and increased capacity
of Michigan's nonprofit sector, and with interfacing funders,
nonprofits and the public to help promote volunteerism and
philanthropy in this state of our's.
The Forum views volunteerism, philanthropy and the nonprofit
sector not as proprietary issues but as public goods which

�broadly affect the state's economy, polity and quality of
life, and which, therefore, merit careful attention.
Consequently, the Forum seeks to promote dialogue, cooperation
and collaboration across the many, many nonprofit fields such
as health, human services, arts and humanities, community
development, education and religion.! In fact, this particular
organization called the Forum may~T5e the first time that the
many different types of nonprofit organizations and causes
have gathered in the same room at the same time to talk about
the same things. VT5ut we are here today because the Forum also
seeks to promote that same kind of dialogue and cooperation
across the sectors — that is the government sector or the
public sector, the nonprofit sector and, of course, the
business sector or the for-profit sector Jj
The Board of Directors of the Forum has adopted 6 guiding
principles designed to reflect the mission of the Michigan
^Nonprofit Forum. One of those principles states, "The service
of the nonprofit sector to the public depends on an
interactive partnership between service providers or nonprofit
entities, funders, policymakers and the public. The Michigan
nonprofit community should promote constructive dialogue among
all these parties."
You will probably hear the word "mission" used rather
frequently, or so we hope, during the discussions of the day.
This Summit which brings us together really goes to the very
heart of the Michigan Nonprofit Forum's raissionj. Those of you
who talk and those of you who listen and look in on today's
proceedings are really participating in a rather historic
revent.
This is a unique undertaking, an exciting experiment.
fit is the first in a series of forums bringing together our
society's leaders to think on compelling issues affecting our
society and the nonprofit sector. The purpose, though, is not
to provide the answers but rather to pose and clarify and
stimulate the questions, and from them to spark an on-going
dialogue. The title of this particular summit islwhat I would
call a meaningful mouthful. It is, ("Partnerships for People
and Progress: The Nonprofit Sector's Evolving Relationship
with Michigan's Government and Business Community."
Now very shortly we will be introducing our very distinguished
pane1 of government, business and nonprofit leaders. But
first, to set the stage for our dialogue, we will hear some
-remarks by a very distinguished national leader and recognized
expert on philanthropy. Before I introduce him, let me simply
mention for the information of the audience that he has
prepared and circulated to the panelists today a paper
discussing the theme of this particular summit and he will
share some comments about that theme in just a moment. His
name is Dr. Robert L. Payton. He comes to us as the Director
of the Center on Philanthropy at Indiana University. From

�1977 to 1987, he served as the President of the EXXON
Education Foundation. His very impressive leadership career
has included 2 college presidencies and a United States
Ambassadorship. The recipient of honors to numerous to cite,
he is an author on philanthropy who puts his words into action
as leader and volunteer for countless good causes. Please
join me in welcoming Dr. Payton to address us on the topic at
hand. Dr. Payton.
Payton:

Good morning. I am very pleased to be here with you. 1 I was
pleased to be invited to prepare the paper that has been
circulated to you. It occurred to me when someone commented
before the meeting that they had read the paper that I hope it
is provocative enough to serve its purpose, but not so
provocative that it puts its author in jeopardy. I hope to
stimulate conversation that comes from you because you
represent, the community that is the matter of concern on this
_occasion.\ come from outside. I don't presume to know the
particuTar circumstances of this community, so it becomes very
important for you to articulate what you think is most
relevant about that paper, if anything. So I want you to draw
from it rather than attempting to impose further my sort of
author's guide to what it says. Let me, however, talk about
it for a moment, or talk about the subject for a moment, in a
somewhat different way.
Over the last several years, along with everyone else, I have
been profoundly impressed by the events in Central and Eastern
Europe. I'm old enough to be able to say that my generation
as a generation never believed that it was possible that such
events would take place without vast bloodshed and
destruction.
So it is that this most extraordinary event
provide us with, I think, an extraordinarily important
opportunity.]
Given the conditions that would cause this meeting to be of
compelling interest to the people in Michigan, what would an
analogous meeting be like in Russia today? Who would come and
what values and understandings would they bring?
We're
advised they're invited to provide advice increasingly to
countries in that part oj^ the world that will help them
develop a third sector. Vwhat we are watching is a situation
where societies are moving from a condition of being one
sector societies, with strong encouragement from the West to
-become two sector societies in the beginnings of suggestions
that they should become three sector societies.
It is my
strong conviction that unless they become three sector
societies, they will not become democracies. It is my very
strong conviction that understanding that the United States is
a three sector society is essential to understanding it as a
democratic society.

�This is not a subject at the margin of our interests. This is
a subject at the center of our lives, whichever sector we are
parts of, because as citizens we have had the great good
fortune to^become members — to be members of a three sector
society* \The first sector can be thought of — the government
that is — as having an essential defining term, and the term
that I have to use that says that without it you can't talk
about government is the word "power"; the legitimate use of
force in behalf of the community. If you take the notion of
that away from your notion of government, it seems to me your
notion of government collapses.
There is a defining term of the second sector that will be
something like the word "wealth" or the word "property"; the
right to acquire and use and to dispose of wealth and property
according to your own individual private interests. If you
were to take that out of the marketplace, the second sector,
_it would collapse.
So my habit as a professor is to say to my students, "Then, of
course, you're ready to tell me what the defining term is for
the third sector." And, along with most professors, there has
been a heavy, ominous silence. I will break the silence and
tell you that my notion is that the word has to have something
to do with morality, and I mean morality only in the sense
that intervening in the lives of other people for their
benefit with no public mandate is a moral action. And if you
took that out of the third sector, you wouldn't have a third
sector.
~~r—'
p—
Part of the point of my paper is that we need to keep those 3
values distinct while we encourage interaction among the 3
sectors.
Final note. I've tried to summarize responses to a request
for assistance from someone for whom one has no formal
responsibility. An individual or an organization comes to you
asking for your assistance and it is someone for whom you have
no formal responsibility.
That would fall into the zone of
what we usually call charity or philanthropy. What questions
might come to mind, and I think often do whether they are
articulated — verbalized — or not, when that question, that
request for assistance is posed, the first one is the notion
of self-help. If someone asks me for assistance, that person
has no formal claim on me to respond affirmatively. It is
reasonable for me to ask what that person or organization is
doing to help himself or herself or themselves.
Fundamentally, the central notion of the place of self-help in
this larger, complex system we're talking about. . . I do this,
by the way, usually with a cube. A cube is, in my case, a
simple cardboard box with these words around the side. Its

�the kind of thing that Rubik would have designed as a cube if
he'd only had tenth grade geometry like I did. But the first
face on it, in other words, says "self-help." The second face
says "mutual aid. " What are you and your family and your
friends and your neighbors and your associates and your
colleagues and those other people who do have some formal or
informal claim on you, what are you doing in that way, working
together with others, to deal with the problem?
The third face of this has the word "government assistance."
Its a recognition that there are many things that we cannot do
as individuals or groups according to our self-interest or our
mutual benefit. There are some things that are so important
or so difficult or so complicated that we have to assume that
we will not rely on those things, but we will require all of
us to participate in some way, that is to say, the simplest,
most familiar way. We will decide to tax one another to do
Certain kinds of things.
If each one of those 3 questions is answered — self-help,
mutual aid, government assistance — in some plausible way,
satisfactorily for you, you then face the philanthropic
question. Are you prepared to offer assistance to help those
people for whom you have no personal, formal responsibility?
Now a cube has 6 faces, so there is a top and a bottom and I'm
not trying to suggest superiority and inferiority here. But
since we're talking about philanthropy, the top of the box
says that there is a dimension that cuts through all these
things all the time and that's the word "altruism" — concern
about others.
If that weren' t a factor in the human
condition, we wouldn't be here. We wouldn't be talking about
this subject. It's always present to some extent. The most
rigid, rigorous libertarian is altruistic to some extent, like
it or not. But then all the rest of us who are, obviously,
high-minded and altruistic are also egoistic, self-interested
— to some extent. And altruism and egoism are not only on
the top and the bottom of the box, they are on each side of
this discussion. That the people who come to you have a selfinterest just as you have an altruistic one. But you should
remember they have altruistic concerns and that you have selfinterested ones.
I think some of these brief notes are intended to suggest that
this first sector of government, these notions of self-help
and mutual aid in the marketplace and elsewhere, and
philanthropy — self-interest — concern about others —
interact in our lives in absolutely extraordinary and
wonderful ways that makes our society, in my judgement, the
most privileged that I know of^J And I hope that sense is not
something that one is that proud about in the sense that its
a claim of virtue on one's part because we are not here

8

�because of our own initiatives but because of others who have
gone before us have made it possible and desirable for us to
be here.
That principle of the philanthropic tradition that we are part
of is what, I think, really distinguishes American democracy.
It is the best thing, I think, that we have that we can share
with the rest of the world.
It is the best tradition, I
think, to help us face the kinds of difficulties you're
talking about in your community and we're talking about in
mine today. Each one of us is not just part of a sector.
Each one of us is a part of that traditional And so I wish you
well in your discussions and will close at that point — short
of my normal 50 minute lecture.
Thank you.
Blews:

JPhank you, Dr. Payton. I'm certain you were very popular with
your students with that kind of lecture.
To carry on the dialogue from here, we have gathered around
this table a panel of leaders from government, from the
business world and from the nonprofit world. And at this
point I 'm going to toss out a little teaser because it may
that there is a fourth sector. These 3 sectors that I have
mentioned, and sector is a term that we will hear frequently
today, are certainly a significant, significant part of the
infrastructure of our society. The government or the public
sector, the business world or the for-profit sector, and the
nonprofit sector or what is sometimes called the charitable
world. And I will mention the teaser, that there may be a
fourth sector that somebody may strike upon as we continue our
dialogue here.
There are 2 things in particular that strike me about this
particular panel. The first is that they are a very, very
distinguished group of government, business and nonprofit
leaders. The second thing that strikes me about this panel is
its diversity. Now I am also acutely aware that a panel of
leaders like this cannot be kept down and cannot be kept
silent for very long. And so we are going to now ask each
member of the panel to briefly introduce himself or herself
and the perspective from which they speak to us today,
beginning with Mr. Yamanishi on my left.

Yamanishi;

Thank you. My name is Herb Yamanishi. I'm the Executive
Director of the Michigan Community Action Agency Association.
Community Action Agencies are part of the old War on Poverty
Program. We cover all 83 counties of the State of Michigan
and are one of the largest social service/human service
delivery systems in the State of Michigan serving over a
million and a half people. And curiously enough, out of the

�War on Poverty, I think to some degree some credit can be
taken that the growth in the nonprofit world today.
Sederburg:

I'm Bill Sederburg, Vice President of Public Sector
Consultants here in Lansing, Michigan.
Public Sector
Consultants is an independent, for-profit research firm
specializing in State public policy and public opinion
research. And you asked what sector we represent. With the
name of Public Sector Consultants, we're for-profit. I'm not
sure exactly what sector I'm supposed to be representing, so
I think I'll represent the for-profit sector today and shed my
12 years previous experience of being in the State
Legislature. I'll let the other folks on the panel that are
currently in the Legislature try to defend that institution.

Mawby:

I'm Russ Mawby, Chairman
_W. K. Kellogg Foundation
grant-making foundation.
as the Chairman of the
Nonprofit Forum.

Upjohn:

I'm Elizabeth Upjohn.
I'm Vice Chair of the Kalamazoo
Foundation.
I am 1992 Campaign Chairman of the Greater
Kalamazoo United Way Campaign, so you can see I'm a bit of a
masochist. I am new kid on the block as far as the Michigan
Nonprofit Forum is concerned, and delighted to be here. I've
been a volunteer in Kalamazoo County for more than 42 years.

Kostielney:

I'm Sister Monica Kostielney, the Executive Director of the
Michigan Catholic Conference, which is the public policy arm
for the Roman Catholic Church in Michigan, which addresses the
issues ranging from aging to taxation and everything in
between. Also, currently I have the privilege of Chairing the
Partnership for Michigan Health which is another exciting
coalition that is discussing in a very high-road fashion the
dominant issue of health on the State agenda today. Thank
you.

Cunningham:

I'm Father William Cunningham, Director of Focus Hope which is
a Metropolitan Detroit Human and Civil Rights organization,
and our objective over the past 23 years has been to stimulate
people and help people to become productive as a major part of
their right in human dignity. And the other side of the coin,
to enhance that by asking them to be contributing.
Our
organization has 40,000 volunteers.
In addition to being
nonprofit, we are also very competitive and for-profit.

Roehrig:

Oh.
I 'm Larry Roehrig.
I'm Secretary/Treasurer of the
American Federation of State, County and Municipal Employees,
Council 25. I'm here on behalf of the entire membership of
the Michigan AFL-CIO. That stands for the American Federation

10

and Chief Executive Officer of the
which is an independent, private
I also have the privilege of serving
Board of Trustees of the Michigan

�of Labor and the Congress of Industrial Organizations. And I,
too, wear two hats. I am also the Secretary/Treasurer of the
United Way of Michigan.
Clark:

I'm Jane Deanne Clark, Senior Director for Health Policy
Analysis at Michigan Healthcare Institute which is the notfor-profit research arm of Michigan Hospital Association.
Michigan Hospital Association represents all close-to-200
hospitals in the State of Michigan. They are, in the vast
majority, nonprofit and in addition to that, I also am
Executive Director of a unique organization which combines
business, state government and the hospitals in the data
collection effort, and that organization is called Michigan
Health Data Corporation.

Kosteva:

Hello.
I'm Jim Kosteva, a fourth term Legislator from
southeastern Michigan. My legislative focus has focused on
jthe E's — education, environment and economic development.

Bianco:

I'm Joe Bianco from The Founders Society of the Detroit
Institute of Arts which is the private sector support
organization of the DIA. My entire background, as some of the
people in this room know, has been in engineering and finance
and economics, and yet I found myself running a major
corporate giving program some years ago, now in the nonprofit
sector asking for money and trying to assist in the management
of a nonprofit. So I've had a chance to look at it from both
sides.

Hoffecker;

I'm Fred Hof fecker.
I'm an Assistant Attorney General. I
work with Frank Kelly. For the past decade or so I've been
fortunate enough to have as part of my duties of supervising
the Charitable Trust section of the office and working with
both sides of the nonprofit sectors, both the grant givers and
the grant seekers, and I'm very pleased to be here today.

Benavides

Hello. My name is Tony Benavides and I'm a Councilman for the
City of Lansing. I'm also Executive Director for Cristo Ray
Community Center, a human service agency which is a private,
nonprofit organization located here in Lansing.

Cantrell:

Hello. I'm Aaron Cantrell. I guess I'm here in 2 capacities.
I'm Executive Director of the Voluntary Accident Center in
Kalamazoo and Volunteer Centers are basically there to recruit
volunteers who are trained through our administered volunteer
program, and to promote the whole concept of volunteerism.
I'm also a Vice President of the Volunteer Centers of Michigan
which is made up of all the Volunteer Centers here in Michigan
and our purpose is to develop new centers and to promote
volunteerism throughout the State.

11

�Miller:

I'm Judy Miller.
In my present life I am now Michigan
Business Ombudsman in the Department of Commerce, a
gubernatorial appointee given the responsibility of solving
problems that businesses have with State government and
providing some solutions in regard to that. Also, on special
assignment in the areas of Arts and Child Care.

Epolito;

Hello. My names is James Epolito. I'm the Chief Executive
Officer of Blue Care Network/Health Central, a Lansing-based
70,000 member Health Maintenance Organization.

Work:

Good morning.
I'm Lois Work.
I'm Vice President of New
Detroit Incorporated which is the nation's first urban
coalition. We began in 1967 to try and insure that the needs
of the poor and the disadvantaged in Detroit and the Detroit
Metropolitan Area are met.
We do this basically through
advocacy on a policy level and through serving as both a
catalyst and an implementer of program projects.

Wilson:

Hello. I'm Mark Wilson of Michigan State University where, in
addition to teaching Political Economy, I direct a nonprofit
Michigan project which is a research and information
dissemination initiative to inform the nonprofit community in
Michigan more about its experiences and the scale of
operations.

Vaughn

Hello. I'm Senator Jackie Vaughn III, Associate President of
the Michigan Senate. I'm a student both of the public and the
private sector.

Cox:

Good morning.
My name is E.L. Cox.
I'm currently the
President and Chief Executive Officer of the Accident Fund of
Michigan.
In my former life, I was the Chairman of the
Amerisure Insurance Companies representing the business sector
of this and the target of many of you for contributions over
the years.

Gallagher;

I'm Jan Gallagher. I'm a partner in the Washington, D.C. law
firm of Harmon, Curran, Gallagher &amp; Spielberg. I practice
extensively in the area of exempt organization law. I edit
independent sector's quarterly publication, STATE TAX TRENDS
FOR NONPROFITS. And I'm currently engaged as a consultant for
independent sector in the development of their white paper on
the role of nonprofit organizations.

Bandstra:

I'm Representative Rick Bandstra, a Legislator in the Michigan
House from west Michigan.
I 'm in government now.
In a
previous life I was a lawyer in the private sector and I
continue to be involved in a lot of nonprofit board activities
back in Grand Rapids.

12

�Ivory:

Good morning. My name is Bob Ivory. I'm the President and
Chief Professional Officer of the United Way of Michigan.
United Way of Michigan is an association of some 110 United
Ways throughout the State, raising about $139 million in this
past year. Additionally, we also fund a series of, a network
of 20 statewide agencies offering services throughout the
State.

Anderson:

Hi. I'm N. Charles Anderson, President of the Detroit Urban
League, a United Way Agency in southeastern Michigan. I also
have the distinct pleasure of being the Chair of the Michigan
Council of Urban League Executives.
There are 113 Urban
Leagues across the country that are part of the National Urban
League and we all are United Way agencies, and our basic
mission is to enable African Americans and other minorities to
reach their fullest human potentials.

Blews:

Thank you to each of you. Through those introductions we can
certainly see the interrelationship in our own professional
and personal lives between the 3 sectors that we have
described. |~In his prepared paper, Dr. Payton described this
Summit as an exercise in exploratory discourse. We enter the
discussion with questions, and will explore possibilities.
Continuing to quote from Dr. Payton, the Summit itself has no
authority to affect change. In fact, the Summit has only the
moral authority we may bring to it, individually and
collectively.
If we are successful, others will carry the
discussion forward towards action and implementation. We will
be pursuing this discussion in 3 stages. We might think of it
as the booster stages on a rocket or on a space ship. Each
stage of the discussion, we hope, will thrust us forward to
the next level and the next stage of the dialogue. Those 3
stages,
briefly
stated, are first
—
identity or
identification; secondly — the evolving partnerships; and
thirdly — insights and principles to guide us into the
future.
Stage 1, then, really poses an identity crisis. That is, what
is the identification of the nonprofit sector? What is this
entity — this thing that we call nonprofit?
What is its
role in a pluralistic and democratic society?
What do we
expect of it? What values energize it? What distinguishes it
from government and from business?
Let's start off our discussion with a little
association or a little word of game associ. . .a
word association.
In fact, I'm gonna. ..we're
that and I'm going to start over again. That's
all of you, I know. I can make mistakes.

13

game word of
little game of
going to cut
reassuring to

�Let's begin with a little game of word association. It may be
revealing. Each of our panelists has a large card in front of
them and a marker pen. I'm going to ask them now to write on
that card the very first and honestly the very first word or
adjective that comes into your mind when we say the word
"nonprofit sector." And if this were a television game show,
the clock would be ticking and the music would be proceeding.
Okay. The time is up. And so this time, beginning on this
side of the room, we'll simply go around the panel and
identify what those words are with the panelist holding up the
card so that our audience, our visual audience, can see as
well as hear what that association is. Mr. Anderson.
Anderson:

Well the first thing I think of is Social Services.

Ivory:

Hyphenated concept — Volunteer-Driven.

Bandstra:

~A long word that barely fits —

Altruism.

Gallagher:

Public Good.

Cox:

I used Public Purpose.

Vaughn:

I used For All.

Wilson:

I used Invisible, because we look at what nonprofits do but we
don't think of how they're organized.

Work:

And I used Conscience.
Community Conscience.

Epolito:

Social Good.

Miller:

And I'll add the word the word Community to Conscience.

Cantrell:

Community Welfare.

Benavides:

Free.

Payton:

Here's an academic. Serial Reciprocity. Which is a word...a
term you'll remember but it really means simply, pass it on.
The idea of repaying the good works that have been done for
you by the good works you do for others in turn.

Hoffecker:

I thought it was a comment on the Kellogg Foundation.
bottom line from the nonprofit is Good.

Bianco:

We're all working together for the good of the Community.

Kosteva:

I thought of a different bottom line —

I thought I needed one word.

14

Fund Raising.

I meant

The

�Clark:

I'll add a little specificity.
perhaps. Hospital.

Roehrig:

Spoken as a Treasurer —

Cunningham:

Spoken as a theologian — Voluntary. Because it springs from
the highest instincts and highest ideals of human nature.

Kostielney:

I wanted to put Hard Work but I put Service instead.

Upjohn:

Spoken from experience —

Mawby:

Voluntary.

Sederburg:

And Charity.

Yamanishi:

You've got two votes for Charity.

Blews:

'Charity wins by a plurality.
That's marvelous.
An
illustration, again, of the diversity of the sector. But
let's play the game one more time.
What word now, what
value...What value pops into your mind when we say the word
nonprofit sector? What underlying value do you first think
of? And the pens are busily scribbling again. What value do
we think of associated first with the nonprofit sector? And
this time we'll begin with Councilman Benavides and go that
way.

Donations.

Volunteer.

Benavides:

Commitment.

Cantrell:

Caring.

Miller:

Love.

Epolito:

Credibility.

Work:

Service.

Wilson:

Altruism.

Vaughn:

Good for All.

Cox:

Altruism.

Gallagher:

Another vote for Altruism.

Bandstra:

Yet another vote for Altruism.

Ivory:

Community Good.

Anderson:

Positive Results.

15

I'm too involved with my job,

�Yamanishi:

Another vote for Altruism over here.

Sederburg:

We differ this time.

Mawby:

Caring.

Upjohn:

This is the Russ &amp; Betty Show.

Kostielney:

Understood in its entomological sense —

Cunningham:

That was good.
Courage.

Roehrig:

From the heart — Loving.

Clark:

Community Good.

Kosteva:

JSternal Hope.

Bianco:

Caring.

Hoffecker:

Freedom — to make choices, where to put your time or your
money in your altruistic way to do good.

Payton:

And my word is Democracy which tries to capture these notions
of Community and Caring.

Blews:

Mr. Epolito, you used the word Credibility. As a person from
the business perspective, how do you think of the nonprofit
sector? How would you define or describe, in a paragraph,
what the nonprofit sector is?

Epolito:

Well, I think of, when I think of what nonprofit means, it
means, to me anyway, to not benefit to any one individual's
good; that the dollars that are collected, the services that
are provided are not for any individual, personal need but for
the good of all. And so I said the word "credibility" because
I find that many nonprofit organizations, and having worked
for some, have had a very difficult time in achieving and
maintaining credibility. But all the way through, that seems
to be a mission.

Blews:

Representative Bandstra. As a legislator, what do you think
of? What is your definition of the nonprofit sector?

Bandstra:

I guess I'd like to follow up on something Jim said about that
and I think that what's happening here with the credibility
problem is what happens so often times in all kinds of
institutions in our society, that good apples are infected
with the aura that surrounds some bad apples. And I've often
wondered whether we, as State Legislators or nationally, ought
to come up with some better system of required disclosure of

Human Respect.

Caring.
Compassion.

And understood in its entomological sense —

16

�how nonprofit organizations work to provide assurance to
everyone that through some standardized reporting system, the
institutions that they are supporting are reputable and worthy
of their support, to deal with the kind of public perception
problem that sometimes does infect the nonprofit side,
unfortunately and unwarrantedly often.
Blews

How do you in the nonprofit sector react to that particular
idea? Father Cunningham?

Cunningham;

To me, credibility is...is less...far less important than
integrity.
I don't think people ought to be trusted or
believed. I think they ought to have track records to be able
to demonstrate that they' re worthy of the support of
government and partnership with industry.

Blews:

Lets refer...return to the notion, though, of legislative
^involvement in terms of helping to assure accountability of
the nonprofit sector. Mr. Bianco, from the perspective of the
Detroit Institute of the Arts, how does that resonate with
you?

Bianco:

I think the role of government really ought to be a role of
clearly defining that they do want to help the nonprofit
sector. I think our national administration, both the Reagan
Administration and the Bush Administration, has failed rather
substantially, in my opinion, in defining the importance of
the nonprofit sector — the third sector — and giving impetus
to it. I also believe that in our own state, there has been
a failure of leadership, both from the current administration
as well as the previous administration, in clearly defining
and supporting the role of the third sector.
Having said
that, I think the accountability question that Representative
Bandstra brings. . .raises is a very good one. Some 14 years
ago, I was one of the people working with the Detroit Chamber
of Commerce that suggested that in our laws in the state we
require a certified public accounting firm audit of all of our
local units of government as well as our regional authorities.
I think the same thing really ought to be true of the
nbnprofits, for example, who receive any kind of State funds.
I think that ought to be a simple requirement. The Auditor
General comes around now, but a certified audit each year is
useful to management and its useful to regulators. So I think
that kind of enabling accountability that doesn't get
everybody involved in the micro management of the nonprofit,
I think setting that framework would be a very healthy
contribution, in my opinion, that the Legislature could make
to the credibility of our nonprof its.

Blews:

You've used the term "definition" in your comments. Sister
Monica, as the Executive Director of the Michigan Catholic
17

�Conference you're part of the nonprofit sector,
define the nonprofit sector?

How do you

Kostielneyj

Well, I think my understanding of the nonprofit sector comes
from the very nature of the human person, and that is if you
begin with the premise that each person is good and has desire
to do good and then moves out from that premise and coalesces
with other people to good for society or for the common good,
you have a legitimate group of citizenry who have a right to
be as recognized as the other sectors in society. I do not
see the nonprofit sector as kind of picking up what other
people can't do or won't do. I see that as a bad approach to
nonprofits; but rather that there is a basic good that drives
one to accomplish good and that is a basis then for forming
the nonprofit sector, inn the whole spectrum or range of
issues or values that touch human lives, from basic human
needs to the transcendent values that we all seek — going
right from basic human needs to the arts. And so there is a
'legitimate place, then, for the nonprofit sector to be present
and very active in the range of human activities.

Blews:

We've said a great deal about values with regard to the
nonprofit sector. But when we ask the question of definition,
we rea 1 ly haven' t very c learly de f ined what the nonprofit
sector is.
And we're fortunate to have with us today a
national expert in that regard. And, of course, a national
expert always has far more credibility than one of us. The
old prophet without honor. Miss Jan Gallagher, as you have
heard, is Council with a law firm and is a recognized expert
on this whole issue of the definition and the protection of
the nonprofit sector.
And she, as you have heard, is
conducting a study of the independent sector or the nonprofit
sector in the process of preparing a white paper on that very
subject. Miss Gallagher, structurally, what is it that makes
nonprofits nonprofits?

Gallagher;

I think that probably the single, most important structural
differentiation is the one that we've already discussed this
morning, and that is the concept that nonprofits, as a matter
of law, are barred from operating for the private benefit of
anyone.
That's a concept that often doesn't get, in my
judgment, the attention it deserves.
It certainly is the
single
characteristic
that
distinguishes
nonprofit
organizations most clearly from business enterprises. The
-concept of no private benefit involves an attention to salary
levels that are reasonable, to operating in a way that doesn't
advance the private interest of any individual or any selfselected group of individuals.
It also, for most of the
organizations today we're calling nonprofit, involves a
commitment of their assets irrevocably to a public purpose.
Again, that's something that sometimes gets lost in
discussions of the differences between a business and a

18

�nonprofit organization.
A self-imposed characteristic, not
one that's actually required by law, at least not very
frequently, is that the types of nonprofits, again that we're
discussing this morning, typically are governed by volunteer
Boards of Directors.
And, again, that's an aspect of
nonprofit structure that, I think, has not gotten the public
attention that it deserves recently. The concept of a group
of volunteers coming together in a community to form an
organization in response to a community need, and then lending
their time to provide policy guidance to that organization, is
an important characteristic of nonprofit organizations.
Finally,
I think
its a characteristic
of nonprofit
organizations that they do exist to provide some form of
public good or public benefit.
Blews:

In your study, you've been looking at the broad range of
entities that fall within that term nonprofit sector. Can you
,give us a sense of what that range encompasses?

Cunningham*

Well, for purposes of the independent sector paper, the
organizations that make up independent sectors' membership and
the steering committee of the group that's looking at this
issue have divided themselves into the following categories:
we have arts organizations; we have civic and human rights
organizations;
education;
environment;
health; public
advocacy; religion; and social welfare. And that, I think, is
a fair description of the diversity that makes up the
independent sector.

Blews:

As we played the word association game, it was fascinating to
see the number of different values that were identified with
regard to the nonprofit sector. And I understand that in the
study that you are conducting, that is, in fact, one of the
things that you are compiling is, in a sense, a compendium of
those values that are found within the nonprofit sector.
Could you give us a checklist of those values?
Well, the approach the steering committee took in its
discussions was to try to evolve a set of values, social and
cultural values, that the nonprofit sector embodies and
nurtures. And I'd like to stress that this paper, thank you,
that this paper is very much in the process of development;
that the values that I'm about to describe are not finished,
and that I'm very appreciative of the opportunity to be here
-this morning, and I hope that this discussion is going to
inform my further work in this area.
The first value that we've described is called...we're calling
"Giving, Service and Community."
And this value states
something that we just heard all around this table this
morning — the basic moral obligation of people to care for
and serve others. It...As we're using the term, its defined
19

�as the value that creates a fundamental sense of community.
Without giving, without service, we don't have community.
The second value is "Pluralism." And, in a sense, that's
almost antithetical because at the same time that we're
building community, we're also affirming the value of
diversity, the ability within the community to speak out for
other points of view.
And that, I think, is one of the
critical things that nonprofits must do. Nonprofits also,
within the concept of pluralism, encourage individuals,
encourage groups to come together to act on their own values
and their own beliefs. They provide a structure for people to
do that.
"Civic Participation" is a third value. Again, its a way for
individuals to come together to act for positive social change
within our democratic structure, and in this way, and I think
_that Dr. Payton mentioned this in his paper and again this
morning, we're. . .we are sustaining and renewing the democratic
process.
Without viable voluntary organizations, the
democratic process would wither.
The next value is the "Development of Human Potential." Most
nonprofits exist in one way or another to a greater or lesser
extent to help people to grow — to be as good as they can be.
In this value we have the commitment to excellence in
education, to excellence in scholarship, to research, to
artistic expression. We have a lot of other things in this
value as well.
The development of strong families, sound
health, healthy environment, an overall positive moral
character for people, altruism.
"Compassionate Response to Human Need" is the next value.
That's a very important one for the social services sector.
Voluntary organizations are the ones who exist to mobilize
community resources to care for the poor, the sick and the
disabled, the elderly, others with special needs here in the
United States and around the world.
Finally, we have the value of "Faith." Its impossible to talk
about the independent sector and ignore the importance of the
religious community within it. And through the voluntary
sector, we have churches and religious organizations which
provide a means for people to practically express their faith.
Religious organizations...(tape stopped)
. . .at least three others.
One is the important role that
nonprofits play as the protector of the legacies of past
cultures, and I think that that is a critical role for the
arts community. A second is that nonprofits play an important
role in this country in providing perspective on the future.
Since they're not bound by a profit motive, nonprofits are
20

�able to guard the present, look to the future, hopefully to
plan as we make transitions into the 21st century.
And,
finally, and I think that this is very important for nonprofit
organizations to be themselves, to be architects and
practitioners of ethical behavior. And this is a value...I
think the other values are ways in which nonprofits provide a
structure for people to act. This particular value is one in
which nonprofits themselves must set the example as a way,
again going back to what Dr. Payton was saying a few minutes
ago, as a way of teaching people trust.
Blews:

Thank you.

Bianco:

I don't want to get us off the schedule you're on, so I'd like
to just make one response to Jan's comments .f You know I think
when we talk about what' s the difference between the third
sector or the nonprofits and the other two sectors within the
United States, that's one perspective^^ Another perspective
that I think we need to examine at some point in these kinds
of discussions, which I frankly hope will be on-going for
quite a time because I think there's a great challenge to the
third sector going on in this country today, and I hope we
come together again^... But I think one of the other things we
have to compare^^In the United States, as we well know, there
is about 31 per cent o f our Gros s National Product that is
consumed by taxes in the Gross National Product. The European
example, as I'm sure many of you have studied these things
probably more carefully than I have, have seen that about 41
per cent of the European Gross National Product is consumed in
taxes^X^h® European model is certainly, from a value point of
view, has many of the same Christian and Judeo-Christian
values and motivations that are here in our society. I think
those kinds of values are operative and strong influences on
both sides of the Atlantic in that sense. But in the European
models, clearly they have made a different decision. /The
third sector is certainly not as important there as it is in
the United States, and they've made a decision to provide the
basic kinds of caring services that Sister Monica referred to.
They've made a decision to provide for arts, for culture, for
education, for all of those things; but they've chosen to
provide it largely through federal government taxation and
federal government programming. So in that sense, clearly we
have a remarkably different model in the United States. And
then I think we get into the question of, "Who delivers the
service the best? What are the results?"
It seems to me
Charles had a results sign over there.
Who delivers the
results better?
And I think that alone is a tremendous ,
challenge to all of us in the nonprofit sector to think abgut.
So I guess the point I'd make is that (1) we are clearly
different from the European model, to say nothing, Professor
Payton, about the Eastern Bloc model; and (2) within our own
country, the merger between the third sector and governmental

What's the reaction to those values?

21

Mr. Bianco?

�influences, I think, is something that again is going to make
this distinction a little bit more blurred as we go forward.
Blews:
Yamanishi;

Mr. Yamanishi.
It seems to me that what Jan has put down here and what we're
defining is not. . .nonprofit sector is not quite as pure and as
moral as we would like it to be. I don't think it is. The
underlying assumption is, and historically, we had charities
and the concept of charity was what was used. As a matter of
fact, if you look at the history of nonprofits, the term
charities used to be used in a lot of the names of
organizations.
The United Way had charities in its name
previous to the time it changed to The United Fund. I think
nonprofit sector can't be defined quite so pristine and
purely. Its a dynamic. Its a force that's pushed between the
private sector and the public sector, and you have
^institutions, organizations within the nonprofit sector that
are leaning one way or the other constantly. Its a dynamic
that. . .and you'll find organizations that are mimicking, maybe
almost substantially, the private sector in the way in which
they operate and the way in which they deal with benefits,
personal benefits, they way in which they address problems,
etc. And then you'll find other organizations that are much
more allied with government and operate in a much more
experience with community action agencies. And a lot of them
that, even though they're private, nonprofit agencies, had
solely government funding and had government people on their
Boards as directors and so then they became much more of a
political entity in the lo.cal community.
So you have a
dynamic and that's, I think that's what we created was a
dynamic that helps us to define the forces between the public
sector and the private sector. That's where we...I think we
should begin to look at the definition of what a nonprofit is.

Blews:

Do we need a greater clarification, a greater understanding of
the values, or are the values that important?

Yamanishi;

I_ think it encompasses all these values that everybody has
addressed in some way or another. What it is...What we try
to... I think what we' re trying to do, what the independent
sector is trying to do, is help to define more appropriately,
"Where is the middle ground that the general public is going
to accept in terms of this dynamic?"

Blews:

Dr. Sederburg, for a number of years you represented that
general public in the State Senate of the State of Michigan.
Dr. Payton, in his paper, refers to a rather interesting term
— "teliopathy" — the loss of mission or the disease of
purpose which really goes to a values question also. What's
your reaction to that?
22

�Sederburg;

Gee, Edf I'm just delighted to be asked that question. What
about a nice softball question like, "What do you think good
is? or something like that? Teliopathy, of all things* Well,
as I understand Dr. Payton's comments on teliopathy, its
talking about lack of focus and loss of mission in
organizations — kind of a drift without a sense of mission.
And I'll try and tie that in with what Herb said and then also
with what Joe said. I think government is losing its sense of
mission as to what the public really wants government to do.
I really feel sorry for all these candidates running around
running for President because the public is giving them
totally mixed messages. Do they want National Health Care?
Do they not want National Health Care?
Do they want Jobs
programs? Do they not want Jobs programs?
And its such a
mixed bag that government itself has lost its sense of mission
and its causing all sorts of dislocations in the political
system.
The mission is also central to this debate, in my opinion,
because I 'm going to be perhaps thrown out the room here with
this, but I think the nonprofit sector is defined by what the
others are not. You're the residue of everything else, and
its driven by market functions. For-profit, when we look at
it, the public sector, we look at what are the markets out
there, those market niches, that we can go out there and do
some work and, hopefully, make enough to feed the kids.
Government looks at constituencies as a marketplace and so
there's a constituency that develops; government will be there
with that service. And so its driven... Those two sectors are
driven by market functions. The nonprofit . . .nonprofit sector
is driven not by markets but by good will and philanthropy and
the desires of the individuals organizing it. Its a different
direction, a different flow. And so the point that Dr. Payton
made about mission, I think, is central to the whole debate,
and that is the definition of mission. Government is adrift.
The private businesses are also having mission difficulties
because of the changing economy and the world, global economic
forces, etc. And so that's a tough debate going on. And the
mission of nonprofit homes...I don't know why I keep saying
nonprofit homes...but nonprofit organizations is very, very
tricky because everybody looks to you guys to catch everything
that's left in between. And that's a very difficult type of
situation. So how about that for an answer, Ed. Was that all
right?

Blews:

That sounds interesting to me.
I'd like to know what Ms.
Work's reaction is to that speaking for New Detroit. Is your
mission defined by what others don't do and, therefore, you
do? You mentioned when we talked about values, you talked
about service as the value that the nonprofit sector
represents.

23

�Work:

New Detroit tries to go along with what its original mission
was.
And I'd like to take into account here many of the
comments I've heard. When Jan said that the nonprofits are
the architects and practitioners, perhaps, of moral doings, I
was taken back to had you asked me, I was going to say perhaps
nonprofits are both the stimulator and the implementor of good
deeds. Now New Detroit's mission is, of course, to try and
ensure that the poor and the disadvantaged have a voice in
what occurs to them and that they. . .their human needs are well
taken care of. But what Herb said earlier, I think, really
applies here, too. Nonprofits depend often on where they get
their money from.
New Detroit gets a lot of business
/corporate funding, but we have also had many, many grants
that were government funded. And, I think, depending upon
where your funding comes from, often you have to lean a little
more toward the values and the practices of the sector that
gives you the funding. Our mission, I would say, is to be a
stimulator and a practitioner o f good deeds . However, the
business sector, who gives us a lot of funding and I think
this is a good thing, is making sure that we become more
businesslike and more effective in what we do. The government
sector, when we have their costs of funding, wants us to be,
obviously, a little more political depending upon where the
funding is coming from, and also has a very different kind of
bureaucratic view of how you spend your funds. So I would say
that I think the nonprofit sector, indeed, has its own
mission, but it is often one cannot separate the 3 and how one
gets its funding and who funds you.

Blews:

All right. Senator Vaughn, we've talked about values and
we've talked about the mission of the nonprofit sector. As a
Senator, how important do you consider those values and that
mission to be?

Vaughn:

I consider them to be extremely, but I'm more confused now
than ever. I have a constituency here and back home and so
I'm constantly pulled in all directions. If you noted when
you asked me the original question, I said nonprofit is good
for all. Its the first thing that came in my mind. And then
I had a little notation, though. Things held in common. It
doesn't benefit the left or the right. I should rise above my
own ethnicity or political persuasion and do what is right.
And I find that in listening here to all of you, I want to be
reelected and I consider that as one of my missions — and we
talked about mission — and yet I want to be liked and I want
to be loved and I want to do what is right, so I 'm torn
between the forces, but I never lose sight of the fact of why
I'm here. I'm here to help for all, for a people and to rise
above my own ethnicity and my own political persuasion and try
to say, "What would benefit society much better?" So the
mission is clear, I think, but I am not clear in my own
narrowness.
24

�Slews:

Senator, you raise a very important and a new point, and that
is that in order for a Legislator to serve that public good or
that good for all that you described, that Legislator also
must be reelected from time to time. This, after all, is a
democratic system.
Representative Kosteva, with your
constituency, is there a value placed on the nonprofit sector
on the kinds of missions that we've described such that you
can, as a Legislator, be a proponent of the nonprofit sector
and still be reelected?

Kosteva;

Clearly, because many of the purposes that the nonprofit
sector and the governmental sector strive to achieve are so
similar.
The benefit of all, the public improvement, the
ability to advance human potential, to respect the diversity
of our nature and of our culture and institutions, I think
that's very easily done. The beauty of the nonprofit sector,
in my eyes, is that it allows the individual choice to be
made. The individual choice on the part of individuals to be
able to pursue the nonprofit contributions and roles and
volunteerism that they individually choose to participate in.
It allows them to advocate for those particular causes, and
with that advocacy and that participation and that choice
comes a commitment to those causes. And so I think its one of
the fullest expressions of the participatory democracy that
Jefferson brought to this country. So clearly, to the degree
that the government sometimes deals with the collective good,
the nonprofit sector, I think, their well-defined mission at
the present time, on a more individual basis, I believe is
more well-defined than the governmental sector and the
business sector as it comes to social concerns.
I think
they're very, very compatible with constituent concerns as an
elected official.

Blews:

Dr. Mawby, you're on the funding side as the President and
Chief Executive Officer, Chairman and Chief Executive Officer,
of the Kellogg Foundation. Are the values that you have heard
and the missions that you have heard worthy of your support?
Are they the kinds of values and the kinds of missions that do
warrant the support from a foundation such as yours?

Mawby:

Well, we, as a grant-making foundation, of course, work very
closely and share, in general, the values of the nonprofit
sector. Under laws established by legislative groups at the
state and federal level, the nonprofit sector is defined and
we, as grant makers, have the opportunity of giving funds to
nonprofit institutions and organizations and to all of the
units of government. So its very often a collaboration and
you have to say that, as you look at society over the past 10,
20, 30 and 40 decades, the role of the various sectors
continue to be dynamic and evolutionary. We passed federal
legislation with funding which provides for positions labeled
volunteer which are paid. And that, you know, results in some
25

�confusion. So its an evolutionary process. Simplistically,
it seems to me, the nonprofit sector represents all of those
institutions, organizations, and programs which include
private initiative for the public good. And certainly the
kinds of values that have been described on the cards and in
the discussion are certainly consistent with the kind of a
mission that we see as the particular role of grant makers in
the whole collage.
Slews:

Very good. How. . .How well does business and how well does the
government sector understand the nonprofit sector, let's say
on a scale of 1 to 5 with 1 being low level of understanding
and 5 being a high level of understanding, Mrs. Miller, as a
former State Legislator yourself, how would you rate the
understanding of the government sector and how a leader in
government, in the executive branch, how well does government
understand the nonprofit sector?

Miller:

"I'm not certain it understands it very well at all. I would
put that on a rather low side in terms of maybe a 2. Just
looking at it from my current position, and even having been
a community leader and volunteer in my own community, I find
that government has a very difficult time being sensitive to
human needs and to human value, and I think that's one of the
frustrations that I feel in dealing with the governmental
system now as on the administrative side as opposed to the
legislative side, because we can become too isolated there
from what the needs of the community are and then to better
provide the leadership that I believe is needed from the
government sector.
Because as people have said around in
several different ways as we have talked this morning, that
government and business provide the direction, divide the
impetus, the influence as to how a nonprofit may go. And if
we don't have the leadership and the understanding of the
purpose of the nonprofit, we're not able to provide the
leadership that's needed.
And, I guess, that's what I'm
hoping in terms of my role as the relatively new kid on the
block in terms of the administration of government, that we
can bring more sensitivity to that.

Blews:

Mr. Cox, from a business perspective, same scale, how well
does business understand the nonprofit sector?

Cox:

I think the business community understands the nonprofit
sector very well.
Each business organization certainly
recognizes their own corporate responsibility to the nonprofit
sector. And that's limited by their own personal resources,
obviously, and as you go through a time much like we're in
today, the amount of resources available for distribution
becomes limited. And, you know, they have the same compassion
and the same social concerns that all of us have. But its a
matter of meeting the payroll or donating to nonprofit
26

�organizations. And their obligation, obviously, is to meet
the payroll as best they can. But, no, they understand very
well.
There's a concern about how much of the tax dollar
should be devoted to that as well. And you can't do both.
You can't continue to raise taxes and then continue to expect
the corporate..-the business community to find the means to
solve all of the problems.
Bianco:

Ed, can I take a contrary view to that?

Slews:

Sure.

Bianco:

My good friend, E.L., who has always been a good contributor
to the museum, it may be over after this comment. . .From my
perspective and the years I spent in business, and certainly
E.L. and had many, many years of exchanges together, I would
say that business in the '90's is going to continue its
challenge of down-sizing, right-sizing, whatever the term is
going to be. As that continues, I see the corporate sector
having less and less of the executive time and staff time
available for volunteerism.
I think the pressures of the
marketplace on our corporate structure are so severe at this
point, and will continue to get more challenging in a global
competitive environment. And that' s one of the reasons I
raised the point I did before with Jan about the difference
between the European system and our's, because I think we may
have a separate discussion about that one sometime. But I
think the corporate sector is going to be able to do less. I
agree with you, E.L.
Like all the rest of us, corporate
executives are sensitive human beings, in many cases not all.
Like all the rest of society, and will take some personal
interest and follow through in the nonprofit sector. But I
also think we're going to see such a great pressure on profits
— we're already seeing it — and I think that will continue
through the '90's to the point where, I don't know what the
current numbers are, Russ, but it seems to me the last
conference board report I read, corporate contributions were
5 or 6 per cent, something like that, of the total.

Mawby:

That's correct.

Bianco:

And then foundations were another 5 or 6 per cent. So even at
this point, if the corporations make up 5 or 6 per cent of the
total giving pot, and that averages out at 1.6 per cent or
-some number like that of pre-tax profits, if I remember that
number correctly also, that's a fairly small contribution out
of the profits of the corporations. And if they're going to
be under competitive pressure for new plant investment, for
new equipment investment, they're going to have to make a
simple choice. Do I give the money away, or do I reinvest in
a new plant or a piece of equipment or something like that?
And my point is that in the competitive, non-oligopolistic,

It's a battle.

27

�non-monopoly market that the United States now finds itself
competing in, the decisions, I think, are more and more going
to tend toward, "Our basic job is to provide employment. Our
job is to provide products and services for this country, and
more of our money has got to go in that direction." So I
think there's caring there. I think there are some wonderful
people to be reached.
But I think the challenge to the
nonprofits is going to be tremendous to make their case in a
very competitive, very sensible way, because I think the
corporate pot is going to be smaller both in terms of people
as well as money.
Kostielney:

Ed.

Blews:

Part of making that case is to understand what impact the
nonprofit sector has within a state such as Michigan. And we
have with us a scholar, Dr. Mark Wilson, who is the Director
_of the nonprofit Michigan Project at MSU and who has been
"conducting the first study of the nonprofit sector within our
state. Dr. Wilson, to bring this to a sense of closure in
this identification panel, what can you tell us about the
impact and what do you know so far about the size of the
nonprofit sector in the State of Michigan?

Wilson:

I think the reason I said that it was invisible was the
reaction of being a researcher trying to find information on
nonprofits. Its very hard to even find out where it is and
how big it is. So the impact of nonprofits is very, verydifficult to gauge because we don't have a clear idea of what
they do or how much they do or even where they operate. We
can. . .To give you an example, we find about 3,000 nonprofit
organizations in the state that employ someone, and they
employ about a quarter of a million workers, a little more
than 5 per cent of the workforce. And that's almost easy to
find out about. It was, compared to the rest of the nonprofit
sector, that was easy. But it made you think about what else
is the nonprofit sector doing? Well there are another 20 or
30,000 nonprofits in the state that have perhaps been
registered or perhaps taken on charges or have organized
themselves formally, and so that's another level of nonprofit
action. And then we did a case study of Calhoun County and
found there were 5 to 10 nonprofits that didn't even register,
that didn't even recognize themselves in a formal way. The
nonprofit sector tends to be invisible. We can't see it. We
can see the organizations that employ someone. We can find
the organizations that have a very formal, or legal,
background but what about all the community groups that do
contribute something, that do offer something to the quality
of life, that are forgotten. The small social groups, the
small environmental groups. Music groups. Care groups. They
exist — are invisible. They slip through the cracks. So I
can say quite confidently that we have a quarter million
28

�employees in Michigan in 1990, that nonprofit organizations
are generating far more employment growth than perhaps you
would expect, they're about 5 per cent of the sector, but
they're about 10 or 15 per cent of all the new jobs in
Michigan. But beyond that, that's just really the visible,
formal nonprofit sector. The invisible nonprofit sector is
equally important, but we just can't get a clear idea of what
it is and where it is.
Blews:

Mr. Anderson, from your perspective with the Detroit Urban
League, what's your reaction to all of this?

Anderson;

Well I think its unfortunate sometimes that we do appear to be
invisible, because I think the nonprofits, Father Cunningham,
we've been making wine out of water for a long time. We know
how to take 100 pennies and turn it into 101 pennies. I think
government... we' re the organizations that take, get the
jnaximum results out of the minimum dollars. Our budgets are
scrutinized by foundations and government entities and things
are cut away because they think its too expensive. And so we
are making extreme contributions in our communities with
minimum resources. I think nonprofits are a much better place
sometimes for programs and activities to take place than they
are in government entities. Sometimes you see, yes, I think
sometimes there are too many nonprofits.
And I think
sometimes its too easy to become a nonprofit. But at the same
time, those nonprofits that are around like the Urban League
or New Detroit or what-have-you or Focus Hope, we are making
tremendous contributions in our communities. We are turning
things around and in business, if the other two sectors look
at us a little more closely, I think we all could benefit in
our communities much better than what we do.

Blews:

And that really leads us into Stage 2 of our discussion which
is talking about the relationship of the 3 sectors.
But
before we jump to that, we would like to invite anybody from
the audience, if you would like to dive into the dialogue,
this is an opportunity for you to do so.
And please identify yourself and your organization.

Young:

Good morning. I'm Leonard Young. I represent the Michigan
Ecumenical Forum on the Nonprofit Forum Board.
I have a
rather specific question that I want to ask about identity.
Jfow we've been talking all morning and there seems to be some
general agreement around the table about what identifies a
nonprofit.
But in my experience and in many of our
experiences in nonprofit organizations, that consensus seems
to break down when you come to the practical level,
particularly in the relationship between government entities
and agencies and nonprofits, and what actually defines a
nonprofit. Let me give you several examples of what I mean.

29

�There's one set of criteria for the IRS to determine whether
an organization is nonprofit. There is an entirely different
set of criteria that the U.S. Postal Service uses to determine
if an organization is nonprofit and can use bulk mailing
privileges. In the State of Michigan there is an entirely
different set to determine whether you are exempt from sales
tax or property tax in different areas. And yet again in the
Attorney General's office there is an entirely separate set of
criteria used to determine whether you have to apply for a
charitable solicitation license or not.
For a lot of
organizations, especially small, locally based ones like Mr.
Wilson was talking about a minute ago, considerable hardship
is wreaked on those organizations in trying to sort out how
all of the different entities of government and agencies look
at and define nonprofit organizations. I would be interested
in the Attorney General's office commenting a little on that
from their point of view and any of the others who see how we
jnight be able to get some kind of a consistent micro
definition of what nonprofit organizations are, and as we
began when Representative Bandstra talked about being
accountable, a single way of doing that so that people know
how they may respond to inquiries and to be appropriately
judged and scrutinized as Mr. Anderson was saying. We need
some single set of criteria for determining those.
Blews:

Mr. Hoffecker, you're the Assistant Attorney General with the
Charitable Trust Department in the Attorney General's office.
Your reaction.

Hoffecker;

Well, its a good question and one I, frankly, welcome. We
view the nonprofit sector as a method by which the tremendous
social energy that we have in this country can be channelled
and moved into doing the virtuous, good things that we've all
mentioned this morning. Government, in my view, and strictly
my view, should be as unintrusive as possible. I think we
have a duty to guard the public against fraud, because there
is charitable fraud — it does exist.
So you need some
standard and some mechanism to deal with fraud. Beyond that,
in my view, there shouldn't be any exemptions. The fact that
some organization is religious in nature, and we have this
concept of separation of church and state, that should not by
itself exempt the organization from letting the government
know that it is out there in a nonprofit charitable function,
how much money its taking in and how much its spending.
X3overnment shouldn't say you have to take in, if you take in
this much, you have to spend that much on your charitable
purpose. That's going to be a decision for the public. If
the public has access to information about the nonprofit
sector, what they're doing with their income, making 101
pennies out of 100 pennies, people, I think, can make
reasonable decisions on where to spend their money or, as
money gets tight, more importantly, spend their time by
30

�volunteering with an organization, and make the whole process
a lot better. The current statutory scheme, I think, started
out as a governmental way to kind of nurture nonprofits.
Okay, we'll make them tax exempt. We'll give them a break on
certain kinds of property.
To encourage people to make
donations to certain kinds of charities, they get a tax
deduction against their income taxes for making a donation.
Well government should nurture good works that way. On the
regulatory side, and that's where I come as a regulator, we
need to protect the public from fraud and provide a mechanism
for information for the public so that they can make decisions
on what to do with their time and money without regard to
whether the organization is a church, a school, a United Way
entity, or any other kind of nonprofit organization.
Blews:

Do we need a more consistent legal definition across the
various units of government of what a nonprofit is?

Hof fecken

Well, I guess inconsistency is a hallmark of government, but
yeah, I think we need some basic tenets that every body can
look to and I know at our level, with the Charitable
Solicitation Act, we look to the 501C3 status of the Internal
Revenue Service. So we try to be consistent with them. We're
trying to make our organization operate on the 990 form with
the IRS.
That makes it easier for organizations.
One
document. If we're all looking at the same document, it makes
it easier for the organization, it makes it easier for the
public, and we' re all looking at the same numbers.
Arrangement of the numbers on a form can change peoples'
perceptions about organizations.
In terms of the Postal
Service, I'm not sure what their regulations are, but I'm
sure, being a 501C3 is a big part of it. If we focus on that
as the one constant, then I think we can deal with the other
things.

Blews:

At this point, then, we will take a break. We will reconvene,
we will try to reconvene by 10:45, so please be quick and
brief.
(Break)

31

�(Resumed Summit; - 10:56 a.m.)
Blews;

...public here. I'd like to say a word to our panel and then
I'll say a word as the program itself begins again. And thank
you very much. You've done a very good job in the first stage
here of helping us to set the foundation and to deal with some
issues of identity. Our goal now, at the second and third
stages, is really to allow the discussion to become much more
free-wheeling. And please forgive me, with the lights and
all, sometimes I don't catch the signals that come from you.
So feel free to wave your card or scream and yell and we'll
try to get a chance to recognize everyone. But do feel free
to just jump in freely in the discussion as we go. And my
role, rather than to pull you by the reins will be, when
necessary, to perhaps rein things in just a...just a touch.
Yes, that's correct. And during the discussion, if you feel
jreal compelled to go to the mike, even if its not a point
where we've invited that, you may and we'll try to get to you
as quickly as we can, and then we will also provide an
opportunity at the end for audience participation at that
point.
Yes, Maryellen.

Lewis;

And I believe we may go on past

Blews

Yes. In fact, we may go closer to 12:30. Lunch is behind me.
We'll announce that again in the room next door.
We'll
announce that again at the appropriate time. At this point
then we'll return to the cameras.

slightly?

In the first stage of our session today, we've had really a
marvelous discussion about the identity of the nonprofit
sector and perhaps some lack of identity or some confusion
about identity. Who are we? What are we? What does that
matter in terms of the relationship between the 3 sectors -government, business and the nonprofit sector — that are
represented around this table before us?
At this point we're going to become a bit less structured in
our dialogue. We have here a panel of persons who are very
distinguished leaders and, certainly, feel very freely, as
they should, to speak their minds, and we're going to give
them the opportunity to do that in this next session, and then
in the third session.
Stage 2 of our discussion, though, deals with relationships.
The government/business/nonprofit partnership, the question of
whether there is such a partnership, whether there should be
such a partnership. How is it changing, particularly in these
difficult fiscal times and these difficult economic days?
32

�What are the issues, the tensions and the ramifications?
Having talked about the identity...the identity of the
nonprofit sector, we now want to examine that in the context
of these very, very important relationships.
One of the people at our table here who certainly deals day in
and day out with that kind of relationship is Mr. Robert
Ivory/ the President of the United Way of Michigan. Mr.
Ivory, of course, is representing and serving through his
organization, serving community organizations. The nonprofit
sector, in its attempt to secure support and funding in
dealing in that process very closely with the business
community or the for-profit sector. Mr. Ivory/ how would you
assess the current relationship between the business community
and the nonprofit sector? Is it a good relationship? Is it
a bad relationship?
Ivory:

jEs this in the context of last night's NIGHTLINE? If you had
a chance to see that last night, you certainly saw some pros
and cons about the historical relationship between United Way
and the business community.
That has been a strong
relationship over the years. United Ways have had, in some
ways, a very well kept gift and benefit in terms of
philanthropy. In a sense, when you talk about both workplace
solicitation and payroll deduction, when you put those 2
things together, that yields, usually, people talk about that
being a 9 to 10 times yield over asking someone for an
individual gift at any given moment in time. So the notion of
having access to the workplace and to employees for
solicitation and coupling that with payroll deduction has been
a very strong element of the United Way system. It also is
incumbent upon United Way, in order to encourage that
relationship and to maintain that, is to take a look at the
trust that United Ways bring to the business community and to
the community at large. In terms of the package of services
that it brings to the workplace, and that has...therein is a
major controversy today within the United Way system, even
outside of &lt; the most recent news events about the national
president, there has been a major controversy within the
United Way system in the last 2 or 3 years around the whole
notion of choice and opening up the number of agencies that
are brought into the United Way system, into the workplace.
And that companies, and particularly again in the public
sector, have asked that the number of agencies, the number of
charities represented, for instance, in an organization like
United Way, in fact, not be limited to a few select
organizations but, in fact, be opened to a much broader base
of charitable organizations.
The phenomenon is in this
country as someone alluded to earlier that, in fact, we've had
just an explosion of nonprofits in this country since the
'60's. And there are more and more agencies who are looking
to the workplace, for instance, as the method of increasing
33

�their funding. And so the pressure on United Ways today is,
"What type of package do you take to the workplace to have
continued credibility with the business community that you're
offering a product that, in fact, is not limited to a few
select agencies but, in fact, brings in a package of services
that meet the broadest ray of community good.
Its
interesting, in my view, one of the characteristics that
we. . .that make us somewhat invisible that we need to, in fact,
market is one of the hallmark characteristics of the nonprofit
sector is, in fact, the volunteer force. And I've always been
impressed to hear George Romney talk about that volunteer
commitment and the ownership, whether we talk about it as the
participatory principle of people becoming involved in our
community issues remains a major issue for United Ways to
continue working with the business community for that type of
leadership and commitment to some of the community issues.
So, in short, one of the things that's happening to us within
the United Way system is to continue to look at that
relationship that we have with the business community in terms
of presenting a package of services, a benefit that, in fact,
benefits a much broader community base than a few select
organizations.
Slews:

Mr. Cantrell, you...you represent volunteer agencies. Mr.
Ivory has talked about the important role of volunteer ism.
How does that relationship between the 3 sectors affect the
volunteer activity in this society?

Cantrell

It affects it in a very positive way. One of the things I
would like to address before answering your question is the
whole point of where human services, private sector, came from
— this whole idea of human services. It started with people
before we had any programs, any professionals, we had
volunteers who saw a problem and went out and tried to do
something to cure or aid in that particular situation. One of
the things I see that that whole pioneer spirit is somewhat
dying.
And its dying under the auspices of existing
organizations, often times, in that the volunteer sees a
problem and tries to bring their problem forward. There seems
to be now territories among agencies and if its working with
children, then you're touching upon some child serving
agencies.
If its dealing with the homeless, some existing
organizations see it. Whether or not they are behind that
particular attempt to start an organization or to carry some
-special type of service through has a profound impact on
whether or not that program will ever get off the ground. And
I see that dying in some of the communities I'm working with.
As people bring forth programs, they are actually being
smothered under the weight of existing programs who are going
to be. . .see them as contenders for dollars. And I just wanted
to bring that forth and so that's something we really need to
deal with.
34

�I think in terms of the overall relationship from a corporate
standpoint, we hear often times corporations talking about
being a good corporate neighbor.
But often times when
confronted with, "What exactly do you mean by that and what
exactly. . .what type of activities will you involve yourself in
to...to prove that?" Often times, you'll get a...not the type
of answer you may be looking for. In terms of government, not
to be a complainer or anything but they tend to kill
creativity. One of the things that I see that is hurting
nonprofits right now is the fact that creativity is being
smothered under the weight of paperwork, under the weight of
restrictions and that type of thinq.l And I get a lot of
people in from Western Michigan University who are graduating
from the field of Social Work and they come in and they really
want to change the world. And its really nice to see that.
"I'm graduating next year. I'm gonna go out and I'm gonna
have an impact on this." To talk with those people a year
later or 2 years later and see that they've been...I'm
"thinking what's the right word I want here...what -i~
want.. .that they've been basically.. .all their creativity, all
their energy has been somewhat^ subdued and now put away. ••£•
think that's a big problem. (l think that we really need to
open up human services to the standpoint that when people come
in, if they have creative ideas, there is a forum for them to
bring those ideas forward. In cases where the true sense of
volunteer ism, which is going out and people helping people and
being able to identify a need and carrying that through rather
than going out and having to join an existing agency. One
other point. We talk about formal volunteerism and that's
working with agencies that exist. There's a large contingency
of informal volunteerism that goes on and that really needs
to be gauged more. And I know that's the invisible thing that
you were talking about, Mark. But we really need to find out
what is going on therej I know that churches are involved.
I know that in my community, just in my Block Clubs, all of
the things that they're doing to deal with crime and a lot of
other things that are going on. Its not being gauged and not
being seen as that overall system. I think a big part of the
activities are happening there. But to grow from a Block Club
to a new founded organization with funding is something that
doesn't occur very easily because of existing agencies. X We
need to figure out a way within this partnership to not only
create a network whereby these things...these issues can come
to a head and people can speak to them, but also an
-opportunity for those organizations to somehow have a survival
clause in there somewhere, that they may be pushed forward to
the point of developing and starting new agencies. And at
this time in our history, especially here in.Michigan, we need
that type of pioneer spirit more than ever! And I don't see
this being...

35

�Blews:

Reactions to that. Jan?

Gallagher;

I'd like to talk for a minute about some national and state
trends that, I think, are going to affect the development of
government/business/nonprofit partnerships over the next 10
years. Its not, I think, going to be news to anybody in this
room, but I think it might be helpful to remind us all. The
President's budget proposal, factored out over the next 5
years, is projecting declines in federal spending for
for
education
and
training,
for
social
services
transportation, for community and regional development. The
only thing that's projected to grow in the President's budget
is medical care, federal spending for medical care. The most
recent, valid data on what's happening at the state level
comes from a mid-December survey by the National Conference of
State Legislatures. At that point, 30 states were receiving
less revenue than they needed to balance their budget. More
Jthan half the states were reporting expenditures for
entitlement programs or education or both at a higher rate
than budgeted.
There were very few state reserves left
because most of the states had spent them in 1991. There is
an increased demand for social services, and a lot of states
are cutting aid to local government as one way of balancing
their budgets. Its a terrible picture. But it also is going
to force substantial changes in how we deliver services, and
its going to force changes in the partnerships. There's not
going to be federal money.
There's not going to be state
money. It looks like there's not going to be local money in
the short run. Someone is going to have to pick up the slack,
and only nonprofit organizations are left. And that's going
to, I think, force nonprofits to do exactly the things that
Mr. Cantrell, I think, if I got the name from this.. .that's
right. . .was just talking about and that is find new approaches
to deliveries of services, to decategorize existing programs,
to look at innovative, creative, community-based solutions to
problems.

Blews:

Councilman Benavides, from a local government standpoint,
what's your reaction? Are you seeing the same trend occurring
there? And how do you see the partnership shaping up?

Benavides

Well, first of all I think that we have a tremendous job in
trying to educate government as to what our actually nonprofit
organizations are.
I see the...there is various types of
nonprofit.
In terms of services, those that provide the
traditional services that are commonly known to everyone, and
then there is the others that are non-traditional where we
take the people as we are. The problems, I think, that we
have sometimes when we try to get grants and things of that
kind, the first word that comes up is "duplication." You're
duplicating with so-and-so.
You're duplicating with this
other person. And what. . .what they need to know, they need to
36

�get educated as to exactly what it is that that agency does
and why. And so that. . .it seems to me like this type of forum
has a tremendous job, along with us, to try to educate that
particular sector. I just wanted to say a little bit about
the United Way politics in terms of opening it up to everyone,
I've been an agency director for 22 years in Lansing and I
have seen many people come and go. And I know that at one
time we had like maybe no more than 10 or 15 agencies. Today
we got like 100. That's fine. The more, the merrier. I
think competition is good. I used to be a grocery clerk and
they used to tell me that the best thing to do is to have
someone across the street that would give you competition.
But, you know, one of the things that the designations, I
don't know that he mentioned it, the agency designation where
you designate who do you want that particular donation to go
to. I have been quite concerned about that. I got my numbers
from the local United Way and they were increased a little bit
^rom the last time. But I think, you know, that deep in the
living rooms or bedrooms or wherever these people are making
those decisions, there seem to be a tendency, if they don't
know anything about your agency, they don't know anything
about what you do, or they...they seem to designate that and
I can see a lot of these designations going to a block type of
agencies in this community. And I think that if, in fact,
we're gonna look at all of those as agency designations should
be one. Let me say that government, I think, that its always
has a tendency, and being an elected official for 10 years in
the City of Lansing, I 'm an advocate of human services. I
work for one and I truly believe that this is where we gotta
go. But I think, you know, we have the tendency to leave the
human services, to leave our drugs and crime and health
services to the United Way, to the foundations, to "let George
do it" type of attitude. I have always advocated that we need
to be responsible, that the city government, county
government, and state government needs to be responsible and
we need to set aside, just like we set aside for everything
else, we need to set aside dollars that are gonna go to
nonprofit organizations that are providing the services to
this community.
I have to believe that if we can educate 'em
and we can get 'em jobs and we can get 'em the help they need,
the whole economic and social quality of life in our community
will change.
Blews:

Dr. Mawby.

Mawby:

Well, I find it useful from time to time to remind myself of
sort of a fundamental interrelationship or interdependence of
these three sectors. That, in fact, the governmental and the
nonprofit sectors are fully dependent for their resources upon
the vitality, the success if you please, of the other sector - business. And its only as business is successful that
government can generate its resources. Its only as business
37

�is successful that employees then have the where-with-all —
85 per cent or so of giving is by individuals. Its not by
corporations and its not by foundations, its by individuals.
And so the vitality, the success of all of society depends
upon that generating force. I was...And so public policy then
in effect decides how those resources are going to be
mobilized to serve the public good. We tax to do certain
things. And in those decisions, we can provide incentives or
disincentives for voluntary giving. And so as an individual
then, part of my contribution to society at large is through
the taxes I pay and part of it through the charity, the giving
sector. I was intrigued earlier when we had our flash cards,
how often the word "community" came up. And I've been in my
public remarks been talking about the 1990's as the decade of
the community, because it seems to me for several decades
we've been shifting responsibility to higher and higher
levels, to Lansing and then to Washington, saying that the
_federal government or the state government ought to do these
things.
I think society in this period now is becoming
somewhat disenchanted. We've poured massive resources into
governmental efforts and I think there's been some degree of
frustration and dissatisfaction with the consequences. And
increasingly I hear Washington saying about, "That's the
state's responsibility," and Lansing saying, "That's really,
you
know,
the
county,
the
city,
the
community's
responsibility."
Now there's going to be a very awkward
transition here in public policy of reallocating the resources
to do the job. But if that's the direction that American
society is really moving, then I subscribe fully to that
because I think at the community level we're able to respond
most effectively to community needs.
Then we've got an
awkward period of transition where responsibility is being
shifted, the resources have not yet been reallocated, but I
think it represents, again, that interrelationship of these 3
components of the larger picture.
Blews;

Mr. Hoffecker.

Hoffecker:

I. think that's an excellent point. The nonprofit sector can
do something that government and business can't do and that's,
in my opinion, react quickly to changing social needs. One of
my frustrations in government with one of the other hats that
I wear in the office is that we're always reacting to
something after the problem and the harm has occurred in
...that's in my efforts in the Consumer Protection area. Very
seldom are we fortunate enough to get people with enough
knowledge so they avoid the problem. The problem happens.
They come to government. Nonprofits are...can have the chance
to be proactive. Look ahead. Sense what's going on and then
try to deal with it.
Government and business can try to
facilitate that by allowing access to the workplace and
payroll deduction to fund programs, to guard against fraud in

38

�going out and soliciting money and making information
available to potential donors. But, really, the...especially
in the current era, it strikes me that the most dynamic of the
3 dynamic forces we're talking about is the nonprofit area.
Aaron's work, the emphasis on getting people involved because
money. , .there's less money so you need. . .you can.. .you can
solve some of the money shortages with people power.. .the
social energy that I mentioned earlier, that our nation with
its cultural and racial and ethnic diversity, we just have all
this stuff going for us if we can somehow channel it into
doing public good that so many of us held up when we went
around with our word game.
Blews:

Mrs. Upjohn, you're both a business person, a business leader,
and a community leader. What do you think about this?

Upjohn:

Well, I support what you say very strongly because I think
that the nonprofit sector is the only game in town that can
take risks. We need new kinds of solutions for some of these
problems. We need more collaborative efforts where agencies
come together. Each of them may be doing what they do best,
and working together to bring social energy to the problems
that beset us. And for government its too ponderous and for
the business community it is really not their function. But
that's where our power and our ability to set the agenda
comes, I feel.

Blews:

We then do go to the question of who pays. And earlier in the
discussion there was a reference made to the fact that the
primary — the first responsibility of the business community
is to its employees and to their benefits and compensation.
And then, of course, there's the issue of shareholders in
large corporations. Mr. Roehrig, you represent a part of the
labor community. From your perspective, how should business
balance its obligation to its employees and does it have an
obligation to the broader community through the nonprofit
sector in the use of its resources?

Roehrig;

You've probably stuck upon the essence of a discussion I
assume we're going to have later on, it was mentioned earlier,
donor option and that entire...that...that phraseology that
seems to apply and have every nonprofit that goes into the
workplace and attempts to "solicit funding". That is one of
the major difficulties now on whether or not its appropriate
for everyone to be treated the same in their efforts. Is
there a special partnership for certain individuals, whether
they be groups of agencies or attractive agencies, that seem
to have the public concern at the present time such as funding
for AIDS, etc., to be specific? Do the employers, therefore,
have a responsibility to allow everyone the same opportunity
to solicit those funds? Or is there a mechanism internally
where the donors, the individuals, the labor force that I

39

�represent, is there another way that they should be involved,
they being the employees, to determine which agencies are
going to "stand outside the plant gate with a tin cup1*? And
that takes us, if I could take us into that, that's the
essence of business and labor and nonprofit having a coalition
many years ago to limit the number of solicitations. That was
the reason for putting together federations that would come in
and make one presentation at one time of the year. That's our
concern now as labor leaders in that we know our members and
our employees that we represent are good, community-based,
hard working individuals; but their budgets are stressed just
like every corporation and every business. Their difficulty
with buying bread and supplies and paying tuition and paying
for things for their children and their families is just as
difficult as corporate Michigan or corporate America to
balance its budget.
So when they're given the option to
contribute, if they' re beset upon by too many requests for
Donations, the tendency is to turn the set off and not listen
any more at all and don't contribute period.
And that's
...that's the complaint we're getting in our...as labor
individuals, that there is an increase in the number of
solicitations — both through direct contact and in the
workplace. And that creates a whole new set of problems for
us in our partnership with business and industry here in
Michigan.
Blews:

Reactions to that from the nonprofit sector.

Anderson:

I want to make a quick response, because I think it probably
raises one question that all of us ought to think about.
Knowing our options when you talk about that in the United
Way, for example, isn't really just a donor convenience.
Because if you feel strongly enough about the Detroit Urban
League or the Urban League, and we've had discussions
nationally, you could write a check directly to me and it will
be tax deductible and I don't need a third party to field that
money to me. So if you're talking about donor options, you
may really be talking about donor conveniences and I think
he's right, that you really just open up a Pandora's box and
have people inundated, because a lot of us get mail all the
time directly from people soliciting funds and then I see the
United Way, for example, and others who put out money as
people who really have taken some time to study what the
issues are and try to prioritize funding those needs in a
community, and not just letting it run all over the place. So
I would think that somehow or another, if you have all of a
sudden 300 entities seeking money in this corporation, you
really are talking about donor conveniences as opposed to
donor options.

Blews:

Mrs. Miller.

40

Mr. Anderson?

�Miller:

I'd like to build on some things that everybody has said here
because I think when we're talking about donor options or
donor conveniences, we're talking. . .we're really talking about
a problem that I think we have across the board in terms of
looking at what Mrs. Upjohn said about collaboration, what Jan
said about creativity, what Mr. Mawby said about community, I
think we've got to look at cooperation, we've got to look at
communication, we've got to look at coordination, and they
can't be just nice little concepts that we sit here and talk
about on the table. I mean, we've got to go out and actively
pursue those relations and develop that communication so that
there isn't the inundation with donations, that there isn't
the duplication of services that someone mentioned.. .mentioned
here. I think that we've got to move...move forward because
in a time of limited resources, whether its limited resources
from the public sector or limited resources from the private
sector, we're talking about money.
But there's also
_information, there are also people. And I think we have to
begin to work together and I take this... I give you an example
in the public sector in what I do in the Ombudsman's Office.
I came in at the beginning of last year, and I won't give you
the whole long story. But in essence, what happened in our
office, we had to reprioritize, we had to refocus, we had to
down-size, and as a result of what we have done, we found a
new direction, a new purpose and a better service. And I
think this is what this time of limited resources is all about
in terms of both government, in terms of the nonprofits and in
terms of the business community. And alone we can't do it,
but together we have to come and do it and get it done. And
I think we're being forced to do it, because its the only way
we have to go now. The money's not there.

Blews:

Mr. Epolito.

Epolito:

Yeah, just very briefly, I think we've talked about a
partnership that does not exist. I think we're taking steps.
This is a fragmented conversation. However, this is the first
steps in trying to bring that together. I think that the one
thing that a partnership can do, and certainly the United Way
has proven this, is to set some priorities. On my desk in my
office sits about, I don't know, $15,000 or $20,000 worth of
requests for funding. We set up a Corporate Giving Committee
and as to where we're going to allocate our resources. At the
same time, our employees are inundated with requests and I
have everything from a $500 tuxedo affair evening for the
Humane Society to save dogs and cats, and I'm not criticizing
that because its a major priority for some people, but we have
people starving. We have homeless in the streets. We, as a
corporation, we, as individuals, have got to set some
priorities as to what's important to us in this society. So
I think this whole issue of what can the partnership do, if a
partnership is created, I think the partnership could give

41

�some leadership to setting some priorities and really get to
some of the bottom line issues and give some of the focus that
we're lacking.
Blews:

Good. And that's certainly is a function of this Forum today
as you note yourself. Mr. Yamanishi.

Yamanishi;

A comment was made about down-sizing. From the nonprofits'
perspective, there have never been adequate resources,
probably never will be, for all of the needs that we see.
There is...the problem that we...the way in which to address
problems, at least from my perspective, is not necessarily to
look at where the resources are but what kind of freedoms do
we have to address those resources, to address the problems
that are out there, and I don't see that. . .because of this
dynamic where we've at one time been closely associated with
government funds, and so then you get regulated to such a
jiegree, or if you start to, well, lobbying being one of those
issues where you start to advocate for a certain...for certain
perspectives, kind of choices that society ought to be making,
we get.. .there was a lot.. .there is a period in which that was
heavily prohibited from nonprofits from trying to advocate.
It seems to me that in order for nonprofits to be the dynamic
that I think that we have created a third sector in this
country, we have to be given some opportunity.
If there
aren't going to be enough resources, we ought to be given the
opportunity at least to think freely and to...and to feel
...and to define the problems and the issues out there. But,
unfortunately, what's happening is that we are being driven
and we are not driving. We are being told by the business
sector or by the government sector how we should form. I
mean, if you narrowed the opportunities for addressing raising
money, then you are narrowing the kind of opportunities
possibly that nonprofits can have to address issues as well.
So to me there needs to be the relationship between government
and business as one in which we need to provide more
opportunity and more freedom if its not going to be possible
to provide the resources to go with. We have to be given an
opportunity to express ourselves and we haven't been able to
do that.

Blews:

Dr. Clark, you bring a health
discussion.

Clark:

And I want to build on what was just said, because certainly
for the health care industry, and hospitals in particular, in
Michigan and the United States, this involvement between a
not-for-profit hospital and the governmental agencies that
both regulate and increasingly reimburse has been an uneasy
situation with tensions on both sides; and it certainly is not
getting any better.
If you put a little historical
perspective on it, the relationship was between hospitals and

42

care

perspective

to the

�government, with business a distance away. That is changing
as well so that the triumvirate, as we are talking about it
here, is not becoming increasingly interrelated. And from the
hospitals' perspective, we function as nonprofit. At the same
time the government regulation is so extreme that the very
flexibility that we've all been talking about in meeting the
needs of the local community is increasingly removed from the
hospitals to be able to do that. At the same time, with the
shrinking reimbursement, both from the public sector and from
business, you have an increased constraint on what the
abilities are for any individual institution to meet those
needs — even at the best of times. I'd like to be able to
take the suggest ion that was made by Judy Mi 1 ler that this
Forum, and by Aaron, that this was exactly the time at which
we should be most inventive.
But I don't think I have a
tremendous amount of sense that that is going to occur in
health care as health care has come to be in the United States
jtoday.
If you consider, in Michigan, that besides being
nonprofit with all the things that that means, that in
addition to that there is over $400 million of care in charity
care that's given every year — over $1 million a day — and
that doesn't even count what's not being reimbursed by the
mandated federal and state programs. You are talking about a
situation where the squeeze is coming from both sides, and the
ability to respond to that in inventive and new ways is
shrinking as well because of governmental constraints and
regulations.
Blews:

Ms. Work.

Work:

I'd just like to say that it appears as though the nonprofits
have been given the mandate to take care of crucial problems
that are growing and that are not getting smaller, and that it
is truly a mandate without money. Now I understand, and we
have been hearing at New Detroit, that we must coordinate, we
must have collaborative efforts.
I agree with that and I
think the nonprofits have to coordinate and collaborate to the
best of their ability.
Then we hear no duplication of
services. Perhaps there should be some duplication in order
to cover all the problems, and I don't mean duplication that
is a bad thing, but how much do we come together and
collaborate and coordinate to the extent that we not
fulfilling our mandate and handling all of those problems out
there? Some duplication might be a good thing in order to
handle all of problems. It is a very tough mandate and I
agree with Herb, once again, we must be able to advocate,
perhaps, in order to get some more money, in order to handle
these problems that are growing, rather than going away. And
I know here we're talking about what exists now, but perhaps
we have to work also to try and change what exists, at least
as funding from the public sector, in order to handle
everything appropriately.
Right now we're pitting human
43

�services and human needs against the arts. We're going to be
pitting more things against each other, I think, unless we
take a really good look at policy issues.
Blews:

Mr. Bianco.

Bianco:

The subject is coordination between the 3 sectors.
where we are?

Blews:

The subject is wherever we take it.

Bianco:

Before I mentioned that I did not think that during the Reagan
years or now even during the Bush years the federal government
is doing what it can to encourage activity in the, nonprofit
sector. When we heard the rhetoric in the early '80's that
the private sector must do more, individuals must do more, we
were reminded by Russ that the giving is largely by
^individuals. But yet during the Reagan Administration and the
tax reform as all of us in this room know, the whole itemized
deduction was taken away essentially for about 75 per cent of
tax filers. As far as I know, about 25 per cent of the people
itemize, somebody might back me up on that number. And so we
took the federal incentive to give. We took the policy that
said, "Its good to give. This is what we want to encourage
you to do it." Government is not going to stick its fingers
in the management of it, but we want to have the third sector
involved in this. So during the Reagan years, that was taken
away. To me, that was a complete inconsistency in the policy
of you want to encourage private sector support, and then on
the other hand you chop off their hand in terms of their
financial where-with-all. So I never did understand that even
though I'm a Republican and I voted twice for Reagan, I still
don't understand it. And I voted for Bush, too. And I'm
frustrated. Anyhow, you'd think I'd learn. And I voted for
some other Republicans in this state, too. Now, at the state
level, again I think we're doing the same thing. When we look
at our state tax policy, its a complete hodge podge as all of
us know, in terms of any kind of deductions for charitable
gifts. We say that if you give $400 as an individual or as a
couple, you can deduct $200. But its only $200 if you give to
public broadcasting or education or an art organization
attached to a municipality that has support of the arts,
whatever that is. It is a crazy pattern. We say its all
right for a corporation to take a $5,000 deduction for public
-broadcasting contributions
or $5,000 to a community
foundation. But if you give to a hospital or if you give to
an art museum and you're a corporation, you can't take that
$5,000 deduction. So to our legislative associates who are
here today, there was a lot of rhetoric last year in the
Legislature, but nobody every took a hold of this crazy-quilt
pattern. That's point number 1. Point number 2 on this is,
if there's going to be cooperation and if there is going to be
44

Is that

�less governmental support in the '90's, then we need some more
help from the state government. Why shouldn't that deduction
be raised to $500 or $1,000?
Something that is truly
meaningful or begins to be meaningful. And then even having
done that, that's still not going to solve all the problems
that Jane just talked about in the health care. We know that.
But it could help a broad range of organizations. So those
are some of the kinds of things that both from a moral
persuasion point of view as well as a tax point of view, both
our state government and federal government could retrace
their steps and send the message out to this country that the
third sector is important to our democracy and to solving the
issues. And no substantive action is happening at the federal
level or the state level. There's a lot of rhetoric. There's
a lot of discussion.
But nobody's got a single piece of
legislation to correct those two problems, and I don't
understand that.
Blews:

Representative Bandstra.

Bandstra;

Yeah, I think you're right, that we do have a hodge podge
approach at the state level. I'm sure you're aware that we do
have a limited tax credit in place for community foundations
and part of the bill that reinvigorated that tax credit
specified that we want to do a study of the way other states
structure their tax incentives for charitable giving, so we
recognize the problem here in Lansing. I'm not saying that
we're definitely going to solve it in a fashion that will
please everybody in the room, but its certainly something we
ought to look at at the state level, so I would agree with
you.

Kosteva:

I go back to Joe's point that you raised much, much earlier
and that is answering the question of who delivers the results
the best.
If we would choose, if government makes the
conscious decision to, let's say, broaden the deductibility of
certain contributions, clearly that tax expenditure will cost
the state government, and we will be making the conscious
decision that Jan has talked about in terms of the extended
pressure that state government is facing. Lois mentioned
about the fact that we're pitting social services versus the
arts at the present time.
So if we make the conscious
decision to expand the deductions and the expenditures that
that can go for that will reduce the state dollars that will,
therefore, go to social services so we, therefore, will be
making the conscious decision that government has decided that
somebody else, the nonprofit sector, will deliver these
results better than the centralized state or federal
government will.
So I'm not certain if our society. . .our
collective society of whom Rick and I and others are
reflective of that as their representatives...have made that
decision. I think that...I think that they're pushing us in
45

�that decision. They're pushing us toward the direction that
they don't think state government is...is delivering the
results very good for some of the reasons that Russ Mawby
talked about, what they're telling us with their tax message
that they don't want to see state government spending more
money or have more money available to spend for that and so
maybe they're pushing us in that direction. Its just a matter
of the evolutionary process for the leaders to tax to catch up
with their electors.
Blews:

Senator Sederburg, as a former legislator, what counsel would
you offer to this...this gauntlet that has been laid down for
the current Legislature?

Sederburg:

Well, I think we're in the midst of a rewriting of the social
contract in the state of Michigan. Michigan has a history and
a tradition similar to Wisconsin and Minnesota of a public
that wanted
public services
valued, a good public
infrastructure, liked high quality educational institutions,
liked to fund the arts, etc. But I think we may be in the
midst of a change of attitude and we may be moving more to an
Indiana - Ohio type of environment in which the public says
we're going to rely on the individual to make decisions and to
succeed individually and we're not going to look to government
to provide services, and I think that the public may be moving
away from the leadership of the state. And the people around
the panel and all of us probably on the bottom line feel that
the government really has a role to play in providing
leadership and providing some high level governmental services
that we can be proud of. Joe' s point in Europe, you go to
Europe and people are proud of the infrastructure of the
public buildings and the public transportation systems and the
public image is there.
I ran into a friend of mine from
Minneapolis the other day and we were talking about high taxes
in Minnesota, and he said, "Yeah, we have high taxes in
Minnesota but we' re proud of the park system and the road
system and the infrastructure that we have."
I'm afraid
that's changing in Michigan and the message that Jim Kosteva
and Rick Bandstra and others are getting from their public is
that they're facing economic pressures and we don't care about
public services as we're having such a difficult time making
it in our own family situation. And that's very frustrating
and I chuckle and mention a big pitch for tax credits, you
know, a lot of people believe these are tax expenditures.
That it is really just another way of the state giving direct
aid to the institutions, and its just going to drive the state
budget further into debt and accelerate this social rewriting
of the social contract. So I'm afraid that its going to be a
tough time ahead until the public really resolves in their own
minds the level of public services that they really want out
of the state government. I think the federal level has done
a tremendous disservice to us in Michigan in that the public
46

�has gotten used to having their cake and eating it, too, and
just it on the credit card for the national debt. And so in
the same paper you can read about Congress passing a tax
reduction bill and at the same time talking about passing
mandatory health care insurance for everybody and it'll just
drive the national deficit further and higher and higher.
Well, we don't have that liberty at the state level, but the
public thinks we do. So the public is going to write to Jim
Kosteva and say, "Gee, we want money for the arts and we want
a tax cut next week, too, while you're at it." And they'll be
totally inconsistent to them because that's exactly what their
Congressmen are telling them that they're going to deliver in
the next election. They're going to give them national health
care insurance and they're going to cut their taxes. So why
can't we at the state level give money for the arts and cut
our taxes? Sounds reasonable to me and I'm going to write a
letter to the legislators.
Blews:

We'll provide the legislators' addresses to you.

Sederburg:

Very good.

Blews:

Shifting to a national perspective, Ms. Gallagher.

Gallagher:

Well, first let me assure you that Michigan is not alone in
having a confused approach to incentives, for charitable
giving.
I commend to all of you Virginia's sales tax
exemption system which is one of the most complicated I have
ever seen. But I'm disturbed by what I'm seeing around the
country as I monitor tax challenges to nonprofits. And what
I'm seeing goes back to what we were discussing in the first
part of the session which is a fundamental lack of identity
within the nonprofit sector.

Blews:

And now we're talking about tax challenges not tax incentives,
an important bridge in the conversation here.

Gallagher:

Well, let me bridge it a little better then.
I mean a
property tax exemption is an incentive. It's not an incentive
to charitable giving but its an incentive to the charitable
organization to carry out its purposes; similarly a sales tax
exemption I would put generally within that framework.

Blews:

Good.

Gallagher:

Two weeks ago, I'm told, the tax assessor's office for
Lincoln, Nebraska, was out with tape measures measuring the
square footage of every day care center in every church
basement in Lincoln.
The tax assessor was quoted in the
newspaper as saying, "Child care is not charitable unless its
free.
Further, child care is not a religious purpose."
Therefore, he apparently proposes to require all churches in

I've waited for a long time to do that.

47

�Lincoln to pay a proportional share of the property tax on
that portion of the building that's devoted to child care.
The Lincoln newspaper, I'm further told, wrote an editorial
commending this fellow for his innovative and creative
approach to solving Lincoln's revenue problems.
I don't
understand this, except to say that people apparently don't —
aren't seeing the value in child care, the importance of child
care, the need for quality child care to preserve family
structures. We haven't talked yet about your fourth sector,
which I see as the family. The Alabama Legislature — House
of Delegates — I'm told, 2 weeks ago repealed... voted to
repeal all its charitable sales tax exemptions as part of a
restructuring, taking away what they viewed as unfair tax
benefits.
I believe that's going to be corrected in the
Alabama Senate, but I'm seeing the need for state revenue
driving, and for local revenue, driving some decisions that I
think are terribly unfortunate for the future of nonprofit
jDrganizations.
I'm seeing organizations forced to spend
substantial amounts of money to defend existing tax
exemptions, and I'm concerned about it. I'm also seeing on
the government/business/private partnership area a fundamental
exclusion of service delivery agencies from some of the
dialogue that's going on. I'm told there was a conference at
Wing Spread maybe a month or 6 weeks ago, I'm not sure, at
which government, including the Governor's Council of State
Policy Advisors
and business
leaders
and foundation
executives, sat down and talked about how to restructure
delivery systems. I'm told that deliverers of social services
were notable absent from that discussion. Another group that
I work with is trying an experiment in Virginia to renegotiate
the delivery system and when they went to talk to their state
funders, they were told basically, "Go away. You do what we
tell you. We don't want to hear what you think." I'm not
sure how to correct these identity problems. But I think that
if we don't address them pretty quickly, we're going to have
some serious problems over the next 10 years.
Blews:

Do we see those same kinds of identity problems producing
similar challenges in Michigan? Father Cunningham?

Cunningham:

Oh sure, but the not-for-profit organizations, the complete
spectrum of even to the point of antithesis...and I remember
when Focus Hope started, one of the things that bothered me
tremendously was people calling us an agency.
Because by
definition, an agency is something that does what other people
tell them to do. They act out of a contract to do something.
You see us, by nature, develop guidelines for those that get
their money and, therefore, they are U.C.S. agencies. That
relationship, while very
important maybe to certain
objectives, is the death knell of the not-for-profit, highly
voluntary, and what I should think of as the...those of you
who like Lake St. Clair and Jefferson Avenue, .all know about

48

�the fish fly. He comes in there and gets under your car tires
and we crunch up several million billion of them every year.
I always used to think, "That's a good idea for not-for-profit
organizations. They guide themselves as fish flies. They
come get something done then get out of business." And then
good people like Dr. Mawby come along and say, "Hey, wait a
minute. We'd like to help you, but how long are you going to
be around? We're looking for some consistency." Right, Russ?
And we're looking...
Mawby:
Cunningham:

Positively.
So you need some institutional stuff. And there's a struggle
within an organization, both to be institutional and to be
free. And let me tell you, that's a stiff one. That's where
that small group of not-for-profits that are not agencies.
And for that group now comes the responsibility to take this
_business community over here and this government community on
the other side, who obviously have failed to do something or
there wouldn't be a purpose for the not-for-profit, and then
you go and say, "Its their fault, business, and its their
fault, government, that they don't know how important we are
to their destiny."
Well that's a crock.
Its the
responsibility of the not-for-profit organization to make
partnerships with government and with business and to draw
them along and to make some very important assumptions. The
business community has an ethic. Now they're crooks. There
are also crooks in the not-for-profit.
But they have an
ethic, and that ethic ought to be honored and respected, but
its an ethic, a kind of fence around their business practices
out of which they hope to become really rich and take care of
themselves. And that's acknowledged. There's nothing wrong
with that. And government, Eugene McCarthy made a good case
and its government's business is to maintain the morays, not
to establish morality, not to grab ideals. And after Thomas
Jefferson and all that stuff God laid to rest, the purpose of
government was to maintain the institution. The purpose of
the not-for-profit organization is to reach for the stars. To
reach for the moral possible in our time and then to integrate
that with the morays lifting them up inch by inch and with the
business community making them a little better, too, for the
common good.
Now comes this not-for-profit organization,
wimping and whining, "By God, this is hard work. " Well of
course it is. That's what you chose to set that at the helm.
And you stand up to yourself and if you're the captain of the
ship, you shouldn' t receive any pay.
"Why shouldn' t you
receive any pay as the captain?"
(This will make me very
popular.) "Why should not the captain of the ship receive any
pay?" Because he is inviting in all these volunteers. Come
follow me. And if he gets 75 grand a year, how can he ask all
these volunteers to come in and do for nothing what he' s
managing for a pretty handsome salary. We got a lot of stuff
49

�here we've got to look at. And, finally, on a very positive
side, because I think we're in for some real great surprises
and while, Jane, you make some good projections there, I'll
bet you didn't even project what was going to happen in Europe
a year and a half ago either see. So that's nice. General
Motors has 5-year plans. Now, let's talk about projections.
You know we have an aging population in this country that's
pretty healthy, pretty healthy. And instead of those poor
folks sitting down there in their condo around the swimming
pool discussing in Florida, or Boca Raton to be specific, the
latest and the most effective laxatives. Why, and I got this
out of Dr. Frieden's paper, a nice, nice point, about
educating our people on giving. When are we going to tell
folks you've got to give back? When are we going to start
telling them, you've had a nice life — time to give back?
And to give back as a fine government representative. You
don't have to go out from GM and now become a consultant and
_make $500,000 a year. You've got enough to take care of you
for a while. Come on, give back. I had a guy come in the
other day and his wife finally said, convinced him last year,
time to give back. I have a major doer. He's in at 7:30
every morning, setting the discipline for the entire
organization because he's a good guy and wants to give back,
and he figures at 65 he's got 10 years to give back. We have
a tremendously developing population in this country of people
who've been around the block a few times who are our greatest
treasure. Come and give back! And we're sitting around here
discussing laws and a lot of other stuff. Frankly, I think
we've got to get busy as nonprofits and forgive our government
people and our business people because that's why we're here.
I have no criticism of government. I've told Joe for years he
was voting in the wrong party. He never pays any attention.
He comes here complaining today. My God. I've no government
criticism and I have no criticism of business. Good Lord,
they're on their backs. But I certainly think we've got, if
there's a partnership, it has to be their respect for the
nonprofits and getting out there and standing at the helm in
the storm.
Blews:

You strike upon an issue that Dr. Payton points out in his
paper that the voluntary tradition in this nation is, in fact,
a tradition and, therefore, it must be passed on. That it is
not...

Cunningham:

-...You bet!...

Blews:

...simply enough to assume that it will exist, that it
involves, as he says, the challenge to preserve and to
practice and to understand, to study, to be faithful, to
guard, and most importantly, to teach. And let's throw that
issue open there. Are we teaching new generations that
50

�tradition, that value of volunteerism and nonprofit service?
Mrs. Upjohn.
Upjohn:

May I speak to that a little bit?

Blews:

Please.

Upjohn:

You know, I...as I told you initially, I come from the
volunteer community from station wagon driving, brownie
baking, car pooling, bandage rolling, well baby clinic, you
name it. And my kids were with me while I was doing that.
They knew that I spent the time that while I wasn't with them
and while they were safely in school, working in the
community. Today, in so many families where its necessary for
both parents to work, they may do volunteer service. They may
have all kinds of board commitments and they may be involved,
but their children don't know it. Their children have no idea
_that they really are making a contribution or that, as they
grow up, they need to give back. I think we have to have more
youth United Ways.
We have to have more involvement for
children and young people that go beyond selling Girl Scout
cookies but where children really understand what it means to
have the joy of giving. I couldn't support Dr. Payton's paper
more. I think that's a tremendously important aspect.

Blews:

We're really into the third stage of our discussion now. And
this panel did not need to be lead there. We're talking about
what do we do now for the future? Where do we go from here?
How do we build on if its worthy of being built on, this
tradition of the nonprofit sector, how do we create a
partnership that may or may not be a very good partnership at
this point or a very effective or as lively a partnership as
it should be? How do we go from here to address these issues?
What...What principles, what policies, what thoughts should
guide us as we do that. And Dr. Sederburg, I can tell you're
anxious to j ump in.

Sederburg;

I am because I just came from a state of the school speech
last night at our local school and the pitch of the
superintendent was the
white paper and the ending value
was a value on family and of community involvement. And I
just throw out as a beginning point of all this, I think that
we need to get a further discussion of values, both in the
school system and in government and in business as well. I
think we, perhaps, have gone through a period of time when
values haven't been talked about very clearly and have been
sort of shied away from. And I think that's a strength of the
nonprofit sector and is going to be critical from the schools
to everything to have a clarity of values. So and on our
local school districts, they set it up so the kids have to put
in community service time in middle school and in high school,

51

�and I think that's a neat, neat thing to do. And it goes back
to the value system.
Slews:
Cantrell:

Mr. Cantrell.
Just like what Betty had said here about taking the kids
around and letting them see first hand the value and teach
that value. One of the big concerns right now in volunteerism
is, who is passing on those particular values to the kids now
that the parents are not there to do them?
Are day care
centers, in fact, passing those on? Are the school systems,
in fact, passing it on? One of the big problems I see today,
one of the hopes I see for the future, is the fact that the
schools are getting on board and they are starting to make
community service a part of the school experience, but not the
educational experience. And that's...that's the problem that
is out there right now. I know, in our community, kids are
jgoing out and they're doing things and they're not able to
come back and process what has happened.
In their little
mind, they're out there doing something and they are things
happening that they don't quite understand and if you don't
process that, it doesn't become a value. Experience in itself
is not a value. The value has to be passed on. I call upon
the school system to start to teach that value, but also to
take part in that educational process, that as an individual,
and adult individual or a child in this community, not only do
you take from it, you give back to it. And what is the value
of giving that back to? The whole idea of social insurance
that started volunteerism in this country, the whole bond
raising type of mentality is saying that, "There but by the
grace of God go I." And, "I'm one paycheck away from being
homeless." And the social insurance approach to that is to
say, "I will go out and help those people because one day,
when its my turn to receive help, someone will be there for
me." And until we start to instill that value... Right now
we're turning kids off. Okay? These kids are going out and
getting these experiences and not being processed. And not
only that but the agencies, sometimes, are having them do
things that a 12-year-old can't do much let's have them
vacuum. I'm sorry but there's not a lot of value that can be
gotten out of that unless you explain to that kid what the
overall agency purpose is and how vacuuming may be helping
them meet that goal in some way. But that experience has to
be related to the kids, and right now we're having them to do
-community service and they're not learning from it and a lot
of them are being turned off and I don't want it to be like
the first speech I ever did when I got into this field was to
a bunch of vets, and I said to them, "Volunteerism."
Uhhhhhhhhh. Every time I said "Volunteerism".
Urrrrrrrr.
And after it was over, I went up to the guy and I said, "God,
you know, what did I do wrong?" He said, "These are all World
War II vets. They learned the concept of volunteerism as, "I
52

�need 3 volunteers — you, you and you — and they didn't come
back." Okay? So I learned right away that in certain circles
you use other words than volunteerism. Are we doing the same
thing with our kids now? Is the question. Are we saying to
them when they hear the word volunteerism out of adults
because of their experience in 9th grade or Kindergarten, are
they going to say, "Oh, no. Mr. Cantrell, don't come here
with that." And that's what we need to take a look at. We
need to process it. We need to start to institutionalize it.
We need to pass on that value that now both working parents
cannot pass on. And we need to start it in Kindergarten and
take it all the way through the educational experience.
Blews:

Our audience...

Cantrell:

Please...

Blews:

_. ..is anxious to jump in with us.

Bolhouse:

Yes, please. Thank you. Susan Bolhouse. I'm on the Board of
Education of Waverly Community Schools and also the Board of
Directors of the Michigan Association of School Boards which
is represented in your governing body. Urn, I was a little bit
sorry to see that education, K-12, was not represented on this
panel. And I was very pleased that Miss Gallagher repeatedly
mentioned children and education.
This point, up until 5
minutes ago I was getting quite frustrated because this
element of children and education seemed to have been
overlooked. I believe that all of your agencies, all of your
organizations do represent children, that you do have them,
you do work with them. Their good is at hand and in your
hearts. But you send them to us, the schools, school boards
and associations, to take care of. Jim Epolito is inherent in
at the moment.
But he said priorities.
In
continuing this discussion, I would like you to remember that
children need to be a priority, that when it comes to setting
money aside, robbing Peter to pay Paul, when you do take money
away from one agency, somehow please try to keep in mind that
the children, you've heard it before but it has never been
truer than today with budget cuts, children are our future.
And, yes, schools do need to teach volunteerism at home as
part of the curriculum whether its a graduation requirement or
not. As a School Board member, I feel that I pretty much
cover all 3 sectors as Dr. Payton pointed out.
But as a
-fourth sector, yes, indeed, its family, but as a fourth
sector, you can also take people such as myself who do work
through an elective process — I'm elected, I'm government.
Business, in essence, running a school district is business.
And then, as a volunteer, because $20 a month for 30 hours a
week of work doesn't really cut it. I mean, baby sitters, no
thank you. But please I'm here to urge you, in finalizing
this discussion, please do not take your eyes off the
53

�children.
If you can't continue in building your Nonprofit
Forum to include children in getting involvement and interest
in business partnerships, please do. And as a representative
of the Michigan Association of School Boards, I know that we
have many, many school board members out there that we
represent who would love to walk hand in hand with you on the
local level and on the state level to bring these children, to
educate them, to give them the jobs that they need and that
you want to give them. Let us help you. Thank you.

Blews

Thank you. And be assured the Summit here is a representation
of various leadership and, of course, one deals with the
reality of scheduling, be assured that the Forum in its
representation does have very, very thorough representation of
the K-12 educational community, the community college level of
education and the higher education level, both public and
private. And your point is certainly well taken and we would
want to offer the assurance that the children are not being
forgotten and are recognized as one of the priorities when we
deal with the nonprofit sector. Dr. Mawby?

Mawby:

I think, as we think of the future, Father Bill spoke
eloquently to the potential of the seniors in society giving
back.
I think that's something we need to recognize and
capitalize on and some exciting things are happening of that
sort. The other end of the age spectrum is what we're talking
about here and I think that's equally important. Part of its
putting it into the academic world, for example, usually talks
about 2 sectors.
They talk about the for-profit business
sector and they talk about the public, tax supported sector,
and the rest is invisible. So to consciously put in to the
sequence from pre-K-12 all the way through in Social Studies,
in History, in Economics, and all aspects of life, this sector
would be useful.
But I think one of the most exciting
opportunities, you know one of the realities of the
contemporary society is that we have prolonged adolescence for
most young people into their mid-20's. They have far more
capacity and more motivation to be contributing, we as I guess
do-gooders, say well, they're the beneficiaries of so many
things.
We give them so few opportunities to assume
responsibility and to exercise responsibility. And one of the
great ways. . . I 'm not sure I'd like compulsory volunteerism.. .

•3979

Mawby;

...That's an oxymoron...
. . .really, but required for graduation, I'm not sure about
that one. But I am sure that young people, and it goes before
the teenage years, are anxious to contribute, not always to be
the beneficiaries; and that requires real creativity. One of
the greatest challenges is to the school system itself,
because usually they don't let the students participate and
contribute. They're the recipients and the beneficiaries. So
54

�it requires creativity and the life in the community. Schools
are an important part of that. But more hours are spent out
of school than in school in the life of every kid, so that
requires churches and all of the nonprofits, the community at
large, to be more creative in involving young people.
Blews;

And we haven't said a great deal about the churches today.
Sister Monica, would you like to help us with that very
important part of the nonprofit sector?

Kostielney:

Well, I think there are a few things that have been mentioned
that are fairly profound if we recognize the whole order of
what is going on in society. I think the dramatic economic
changes that are occurring, I think the shift in paradigms for
how we reach consensus and I think the lack of a moral
consensus in society is. . .those are all factors that bare upon
the relationship and, indeed, the 3 entities. I' think from the
-church's perspective, what I believe is lacking in society
that I think churches can really provide a locus for and that
is reflection before action.
I think there are so many
changes that are occurring that we need to understand and
think through and question and push us a little bit on the
edge. And what's needed for that is a profound reflection on
the realities that are baring on our lives and I think that
leads us, then, to question in new ways what is happening in
these 3 sectors. I think what drives.. .what drives each of
the...each of the sectors, for example, in government and the
other sectors are kind of dominated by their own resources —
by what can we do? I mean, government asked the question,
"What can we do with our. . .with these resources?" I think
business asks the same thing in terms of, "How do we move
forward?"
I mean, they're driven by technology, they're
driven by scientific advancement, they're driven by their own
mission. I think the question that the nonprofit and the
churches can ask is, and they're the only ones that have the
freedom to ask that is, "What ought we be doing?" Because
virtually we've come to a point in society, we can do anything
we want. I mean, my goodness, we can put a microbe on a gene
of a sheep to produce milk for $7,000 a gallon or I mean its
an absolutely, preposterous, what we can do in business and
industry. But what ought we be doing? That's the question
that's before the nonprofits. And what ought we be doing has
to be answered only in a reflective mode. Because I think
what that will do is take us out of this reductionist approach
t.hat we have and we're all mired in, is that the only way you
could have more is if I can have less. Now that. . .that...
that doesn't always make sense. There are some values that if
I give you a little more, I have a little more, too. I mean
it is only in very certain, specific areas, and I think people
in the arts, for example, really realize that; but I think
that we're so limited and sometimes constrained by the
parameters of only to give an answer, you know, be swift, sure
55

�and wrong, and not even have asked the right question, because
we are constrained by, we have this much money, what are we
going to do with it? Its not the right question. And that's
where I think the nonprofit sector is really in response to a
whole different world view. What ought we be doing, and why
ought we be doing it? And if we turn to those areas of the
fourth sector, the family, I think if we look at the
environment where business has made significant profits from
us, I mean, and who owns it and how do we share that, we come
to some different understandings and we come to different
models for collaboration.
So I would hope that the church
would continue to be the space, the place, for reflection that
would help frame and fashion the debate and help move us to
new answers and new awareness.
Blews:

We really are at the point of starting now to move toward the
Board conclusion and I know that there are at least a couple
_of people who have very compelling remarks that they're
anxious to get onto the record. I think there was somebody
from the audience who'd like to comment.

Rosenbaum;

Yes. My name is Ren£ Rosenbaum. I'm a Research Associate
with the Julian Samora Research Institute at Michigan State
University. And I have a question that I hope will touch on
the relationship between cooperation between government,
business and the nonprofit sector, and also I think will touch
on the issue of public policy. The question is this: I've
seen the role of nonprofit organizations as promoters of
volunteerism and democracy.
In direct contradiction, we've
seen the role of nonprofit organizations, for the most part,
as helping maintain national...a national safety net. It
seems to me that seeing nonprofit organizations as promoters
of volunteerism and coopera...and democracy implies less
government and less business assistance and funding, while
seeing nonprofit organizations as maintaining a national
safety net requires more government and more business funding.
If people from the panel could respond to that please.

Blews:

Quite a question.

Cantre11:

I don't know if this is the response. Former Governor George
Romney has said in many instances that he has every confidence
in the American people because there are more people than
problems, and all we have to do is empower the people to deal
with the problems. I think that when you take a look at human
service agencies, you are looking at both of those aspects and
we can't...we can't escape those. In one sense, and we are
all aware in human services of the ebb and flow of monies,
okay, and what happens and you see this typical process time
and time again.
When there's a lot of money there, the
professionals rush in.
We fill ourselves and all of our
offices with professionals and then the money rushes out and

Mr. Cantrell?

56

�we run out and get volunteers from schools like people like
yourself, as student interns, and they fill those same
offices. One of the things that happens, though, is...the
people, the volunteer managers, will go about filling those
offices. The administrators will run out and start screaming
and hollering about the money that is not there any more. I
think one of the things we're going to always need that.
We're going to always need government and business monies and
support to maintain that safety net, but at the same time
we're maintaining a second safety net and that is that whole
pioneer spirit.
I know when I was in...in....in...grade
school I said things like, "That good old American know-how,
Yankee ingenuity."
I never knew what it meant, but I was
American and wow, I got this somehow and it gave me confidence
to go out and do things because, wow, somehow because I
happened to be born here, I have something special. Okay? I
don't see that specialness there any more. Okay? In terms of
jthe volunteers.
In terms of administrators, I see them
looking only in one direction, that is towards funding, and so
goes the funding, so goes our operations and our agencies.
And what we need to have is we need to have a marriage of
those two and both of have to be seen as equally.. .equal
partners in that whole relationship. Volunteers, except for
the Board of Directors who are treated quite well with dinners
and everything else, but your direct service volunteers are
treated like third-class citizens often times. You need both
of those. So in terms of that we'll never escape that, I
think that its necessary, but we're maintaining 2 things here.
We're maintaining that safety net for people who need it,
we're also maintaining a volunteer spirit that if we every
lose it in this country, everything will tumble right along
with it. And we're not putting any emphasis on that volunteer
spirit at all to the standpoint that we need to. I go up to
Western and I talk to professors up there and I tell them, "It
is impossible for any one to graduate from your university and
not serve on a board or be a volunteer. It is impossible for
anyone to be an educator or a social worker or a hospital
administrator and not incorporate volunteers. And yet you
dpn't teach the concept to them." When go out, they know how
to manage people that are paid, but they have not idea how to
manage that second element, and look at the agencies. Right
now, for every paid person in an agency, there are at least
50, minimally 50, unpaid people. And yet we only take a look
at how to manage those...that small percentage, instead of how
to vastly empower and manage that other part. And I don't
know if that touches on your question, but I needed to say
that.
Blews:

Mr. Yamanishi.

Yamanishi:

Nonprofit organizations began with the concept of charity.
Father Cunningham subscribes to the idea of giving without any
57

�compensation or expectation of compensation of any kind,
giving of oneself or giving of money and never expecting
anything to come back. We've evolved in this process now to
where we are today. I don't know that we want to go back to
that concept as nonprofit organizations because the problems
are much too large and huge.
But I think we 're at a
crossroads where we need to just as nonprofits need to
reconsider, "What is the proper role for nonprofits?*' And
when we define that, we define what kind of organizations are
nonprofits as well. You know, whether a public education
system is considered a nonprofit, charitable organization or
not, whether they get the same kind of tax incentives,
whatever, as. . .as other nonprofit human service organizations.
These are the kinds of issues we're going to be tussling with
at this point. And I think that's where we are now. We're
going to have to reconsider our role...proper role...in
society and we shouldn't be driven by desires of politicians
pr by business. We need to take the initiative and start to
define our role for ourselves so that we can help improve the
quality of life in America.
Blews:

Mr. Bianco.

Bianco:

First of all, responding to the question from the audience, it
seems to me that the safety net provided by the nonprofit
sector has its limits. It seems to me that when you begin to
talk about whatever the number is these days, 35 million
without any health care insurance, and you begin to talk about
bridges collapsing and roads falling apart, its very hard for
me to really see that no matter how creative we get or how
many volunteers we get, its very hard for me to see issues
like that being fully, fully addressed simply within the third
sector without substantial financial resources. And I'm sure
there are others around the room that can think of other
issues like that where the safety net issue, in my opinion,
cannot, in the short term — short term in this case being
defined as the next 5 to 10 years as I see the short term —
be provided by the...by the...by the third sector. So the
issue then becomes, is it governmental resources or is it no
resources? Is the problem simply going to be tolerated as it
is tolerated, as you well know, in many other countries of
this world, and some who do have economic resources. And I
think that would be totally contradictory to the spirit we've
talked about here today that's embodied, we hope, in the
American conscience, of caring a whole lot about their
neighbor and not wanting to see suffering and so forth.
So...so clearly we've got those kind of issues that I don't
think are going to be fully handled by the third sector. Now,
27 years ago, when my wife and I got married, we came back to
Michigan and we went to a church retreat the first month we
were back. And it turned out that the individual giving the
retreat is now sitting down the table there. And our lives
58

�were never the same after we got through with Father Bill
Cunningham's weekend retreat. And he's still on my case as
you can see. But I'm not going to let him go. I think one of
the challenges that the nonprofit also has is a credibility
challenge, and its not just what Father Bill says about all of
us working for free which may work for him — God takes care
of him, you know — Kroger sort of takes care of us and God
helps out sometimes. But I think one of the challenges that
all of us have is the credibility of our third sector or
nonprofit organizations.
I' 11 never forget when I was
considering leaving Dayton/Hudson Corporation and I talked to
several people and I said, "Gee, should I really do this?
Does this make sense to you?"
Several people, basically
business and professional people, said, "Oh, God, Joe. Don't
go out to that Detroit Institute of Arts. Don't go to work in
a nonprofit organization.
You're going to lose all your
management skills. You're going to get caught in the most
_God-awful politics and nonproductive activity that you've ever
seen in your life. Just stay away. Don't do it." I would
assert that if you talked to most business executives, and
although Peter Drucker's certainly helping us all out a great
deal these days in his nice artic les, but I suspect if you
talked to most business executives, they would assume that
people who work in nonprofit organizations may have great
spiritual qualities, may have great caring qualities, but I
suspect at least their mind set would be that most of us are
not very good managers. So I think the credibility issue for
us is how do we forcefully demonstrate financial integrity,
management strength, as third sector people, to get the
respect
of people
like
Representative
Bandstra and
Representative Kosteva and other people who, even in the
governmental sector, will have that question and that
accountability.
So I think we've got a lot of work to do
there to demonstrate our management competence and our
financial capabilities and I don't mean fund raising, I mean
accountability. Never losing sight, of course, of what Father
Cunningham and Sister Monica and others have said, that we, in
the process of doing that have a balance in our organizations
so we never lose sight of the caring mission and the soaring
to the stars, as Father Bill said. But as we soar to the
stars, we should have our audit in our pocket and we should
have a good, tight organization.
Blews:

With that, Dr. Payton, you helped to start this whole
discussion. Can you help us to come to a conclusion?

Payton:

Well, I'm a. . .any of you ever heard of Meyer's break
personality type indicators, I'm an ENPP and I don't like to
come to closure on these things. I don't believe in closure
on open-ended, problematic questions of the kind we're talking
about.
In fact, I think its a real mistake to think that
there's an answer to the question. . .questions we've been

59

�trying to talk over. I said in the paper, and listening to
all of you this morning, I'm persuaded that to restate what I
said in the paper, mission is the key. But my understanding
of that has been expanded and, I think, enlightened by some of
the things that I've heard here.
As you recall, my opening remarks I mentioned what somebody
called the "U.S.S.Were" — Russia — the society facing
problems that, I think, make our's appear to be...make our
concerns appear to be self-indulgent.
Very, very grave
problems. Bill Sederburg captured, in a sense, what...what I
think they face and that I think we face when we start with
the notion of mission and we think about mission in the larger
sense.
When he used the phrase, rewriting the social
contract, that kind of language is being used more widely all
the time these days.
_I tried to think about, as I heard that, the efforts to
rewrite the social contract.
It has taken place in my
lifetime. Two of them are symbolized in the most familiar way
by political figures, the first being Franklin Roosevelt and
the second being Ronald Reagan. Alternative views, if you
will, of the social contract.
But there have been other
periods, and one that particularly relates to what we're
talking about here is the nonprofit sector. A hundred years
ago, give or take a few decades, modern American philanthropy
emerged in its present, general, third sector shape. There
were things like charity organization societies founded,
beginning to be founded, shortly after the Civil War. That
same period where we first saw the emergency of great
philanthropists of the kind of George Peabody and later
Carnegie and Rockefeller. It was at the period when Jane
Adams founded Hull House, which is the best known symbol of
the whole neighborhood settlement movement. It was the same
period when the genius created the first model of...models of
the United Way, one a Jewish federation in Boston and another
the effort which failed at the time in Denver. A period when
Rockefeller and Carnegie, faced with the really terrible
frustration of trying to use their wealth responsibly, found
that they didn't have the instruments to do that. And Mr.
Rockefeller set some of his associates to work at the task
that lead to the creation of the model, an American invention,
the model of the philanthropic, general purpose philanthropic
grand-making foundation of which the Kellogg Foundation is one
of the largest and best known.
By the way, I have to... I have to do this for John D.
Rockefeller, who is known as such an austere person. His
advisors came back and they told him about creating this
foundation that would exist in perpetuity and Mr. Rockefeller
is supposed to have said, "Perpetuity is a very long time."

60

�If we look at the period, say from 1870 to 1930 the latter
period showing the emergence of the community foundation and
a variety of other things, we look at a period when people
like us were extraordinarily innovative, creative, risktaking, bold, imaginative, all those good wonderful things
that we admire when we see it. And the challenge to us, it
seems to me, if we are talking about rewriting the social
contract, rethinking this, and if mission is the key, it means
we really should think through what this fundamental mission
is.
And we can't just think about the third sector. We have to do
it in the context of all 3. If we're an American democracy
anything remotely like the one that we've all known and loved,
then we will continue to be a 3 sector society. So we've got
to call business to task in examining its place in this 3
sector society as well as government, as well as the sector
that we've been trying to focus on here today. We have an
opportunity, I think, in this process/ to be as creative and
important and honorable to our mission, passing on this
tradition that we've inherited —
an opportunity of
exceptional importance.
The next 20 years, I am told, will see the largest transfer of
wealth from one generation to another, not only in the history
of this country but probably in the history of the world.
Estimated numbers don't sound authentic in the mouth of a
humanist like myself, estimates ranging from $3 to $7 trillion
dollars. So although we've got lots of economic problems,
don't you believe that we are not a wealthy society, that
there isn't money to do things. That's not our problem. But
it is a very serious question of what those resources will be
used for and I think that's part of what will come out of our
participation in this rewriting of the social contract.
Blews:

In that spirit, not of closure but and not of an ending but of
really of a beginning, I'd like to suggest that the panel take
a vote here, and since there are several Legislators here,
this seems an appropriate thing to do, how many of you would
be in favor of continuing this kind of summit and this kind of
dialogue into the future? All in favor say "Aye.M

All:

"Aye "

Blews:

Opposed?
I think that speaks rather emphatically to our
commitment today to really a new beginning and a new
partnership.
We do, on behalf of the Michigan Nonprofit
Forum, want to express a very, very special thank you to each
of the panelists, each of you leaders from business, from
government, from the nonprofit sector, for the very, very
thoughtful contributions that you have made to the dialogue
here. We talked about partnerships, and it simply should be

61

�noted here that a commitment to partnership is reflected in
the presence by each of these individuals here today. They
could have been many other places. There were many other
demands on their calendars. They made a personal commitment.
In a sense, they and their organizations made a fiscal
commitment by committing the resource, the value of their
time, to be here with us. And so we do want to thank each of
you for your commitment to this beginning partnership. We
hope that those of you who have listened in and looked in have
found this to be a stimulating discussion, have found it to be
a thoughtful discussion, and we hope that in your
organizations and in your activities around this state and
throughout our society, that this will also lead you to new
challenges and to new opportunities for partnership.
Thank you.
Lewis:

Maryellen?

_Now I have the camera. So I'd like to also thank all of you.
I think that it was an extraordinary conversation
hearing from the Michigan Nonprofit Forum, you have certainly
laid down and agenda for us. I'd like to invite you all who
are able to stay to join us for lunch in the adjoining room.
Also, in your packets, there is a pink sheet. We would really
appreciate your comments, because this is the beginning of a
continuing conversation. So if you could add your thoughts,
your suggestions to these sheets and simply leave them on your
chair, or if you'd like to send them in at another time.
Thank you.
(End of Summit —

62

12:34 p.m.)

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                    <text>MICillGAN NONPROFIT FORUM

MNF SUMMIT

February 28, 1992

"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan's Government and Business Community

'

�MICHIGAN NONPROFIT FORUM
SUMMIT

February 28, 1992
Lewis:

·

~

I hate to say that we're already running a little lat
its
not a great way to start but its just an exciting
ning. I
want to welcome you to this first Summit of
e Michigan
Nonprofit Forum.
I'm Maryellen Lewis.
I 'rn
e Executive
Director of the Michigan Nonprofit Forum whic is sponsoring
this event. You' 11 be hearing much more abo
it when it's on
the tape.
Right now, we're not so I can e a little more
relaxed.
We have a very, very distinguished
here this morning.
representing leadership from
ree parts of our
communities -- government, business an the non-profit sector.
We also have a very, very distingui ed audience, so I know
~hat its going to be very lively.
ou will be hearing more
about that when our moderator be ins.
I want you to be
encouraged to speak up, to make
ur comments, particularly
the audience at the invited sec ions, to be sure that you
don't feel intimidated by thes cameras around here or the
fact that there are television ights focused down on you.
You will be getting an overvi
of this morning's program from
our moderator, but I wanted o take a few minutea to give you
a little orientation, just s a set-up, because I know it may
be unfamiliar to some of ou.
In case you ha~'t noticed,
you're being filmed and aped, but I don't want you to be
nervous about that.
Th e have been a lot of arrangements
made to make this as ac ommodating as possible.
The tables are triple lathed so that there won't be a noise
problem.
You have
need to worry about the mikes. · You
don't have to touch
em. In fact, it would be much better if
you didn't.
Andy
don't need to lean in to them. · Just
speak normally.
T ey're set up to accommodate to you.
It
would be best if y
did pay a little attention to your papers
apd not have th papers brush up against the microphones.
That can cause
me problems.
Also, please ~ep in mind that the discussion is not just
among the p
le who are here today, although that's your
immediate au ·ence. But because this is being taped, we will
be editing pe tape and it will be used through our network
statewide
r educating and informing the public around the
state abo
these very issues. They will be used at ... the
edited t
e will be used as a stimulus for round table
discussi
in various parts of the state.
I should also
point ou that word "editing" means that you don't have to
worry t
much if you make some kind of a snafu and you want
it cut .ut, . it will go right on the cutting room floor.
/

tI

1

�~

The cameras ... The microphones are automa
That is, when
you begin to speak, the microphones autom ically pick you up.
That means that if you're talking to y r ne· hbors, it will
pick you up. So please pay a little b. of
tention to that.
However, the cameras are not automati and
cause of that, we
will need to pay a little bit of att tion o accommodating to
our camera crews.
So our moderat r wil recognize you.
If
you wouldn't mind paying some a tenti
to this moment of
having him recognize you so that the c era can then turn to
you. Now that may get a little more
fficult if things get
a little hot, but, for the mos part, we'll try to do that.
And with this audience that we have
re, I'd like to make two
points for you so that you'r ' full~ aware of this. This mike
is not live now, I believe but ill be when we have the
points where the audience w·11 be invited to speak. When you
speak, would you please wai to b recognized by the moderator
_so that, again, the camera can ocus on you. You might want
to, during the discussion, take orne notes (There is notepaper
in your folders.) so tha yo can direct your comments to
specific people or point tha were raised. And remember it
will be edited so your
mm ts can then be put adjacent to
those comments in the f nal tape. Also, when you do speak,
please say your name, yo r
ganization and your title so that
those who are not here in this room and who won't know you
will have some underst nd · g of where you are coming from.
And now I think that w '
ready to begin. I see the cameras
are all focused and e dy.
Our moderator this morning is
someone that most of .Y
already know very well.
He is the
President of the Ass ciation of Independent Colleges and
Universities of Mic I . gan, and he is also the Chair of the
Public Policy Commi~ e of the Michigan Nonprofit Forum. I'm
very pleased to int oduce to you Dr. Edward Blews.
Blews:

Thank you, Maryel n. These are my pre-camera remarks. I'm
your Phil Donohue or the day. I will be much kinder, though,
than he general! / is to his audiences. I would like to offer
&amp;.. word of co
endation to Maryellen Lewis and our MNF
Executive Dire or and her staff for all of the work that they
have put into his wonderful project. And I'd like to thank
ea:h ?f you l a~ers who graciously consented to participate.
Th1s :s an e it1ng but maiden voyage and trial r~n of a grand
experLment, o please bear with us and be adaptable ~s we go.
Before th

'Cameras roll, I would like to share just a few
nd ground rules about the logistic~. First about
.
.t.
From now until about 9:40 we'll h~~e the
1.ntroduc 1.on of the Summit, Dr. Robert Payton's comments
~e' 11 s t . the stage for dialogue, and then we '11 have th~
1.ntrod t1on ?f the panelists, and it's my job to try to keep
us on rack w1th that process. Then from about 9:40 to noon,
2

�with a mid-morning break I assure you, we will go through
three stages of dialogue.
Stage 1 in lves dentification,
definition and values of the nonprofi sect
Stage 2 will
speak to the relationship between g vernm t, business, the
nonprofit sector and the changi g d
issues and
tensions that are at play in tho
re
ionships.
Stage 3
will involve insights for the fu ure
the relationship or
the question, "Where do we go fr m he e?" That gives all of
you, then a sense of where we h pe
be going today.
A few other preparatory commen
f
the panelists in addition
to what Maryellen has shared, ; an as panelists you'll want to
be prepared for a couple of s e
that will come very quickly
after Dr. Payton's remarks. F rst, we ask you to please be
prepared to briefly introduc
ourselves around the. table. So
rather than having the mode a or drone on as you sit there and
stiffly smile and the came
pans the room, each of you will
tell the audience, both t
video tape audience and the real
- people in the audience h
, who you are. We ask you to be
very brief in that and s
e this information about yourself:
your name, your title,
name of your organization, and one
sentence about what y
represent or the constituency or
interest that you repr ent. If you wish, you're welcome to
write out a note about that before that point in the program.
A fore-warning.
gin Stage 1, we will play a little word
association game.
m not going to tell you what the word is
yet or you won't b very spontaneous about it.
But we ask
you ... There will b two of these, and we ask you to write that
word on what shou
be a fairly stiff piece of card-type paper
in front of you. · And you'll want to locate that and be sure
that you have th
The one word you' 11 write on the one side
and then write t:he other on the other, and you've got a
marking pen at
ur table so you can write it nice and legibly
and boldly an
argely so that as we go around and do this
word associa
, we'll ask you to hold up the card and be
sure to poin
toward a camera so that as you say the word,
the camera c ' n also visually pick up the association that you
have made.

t/.

Thirdly,
1 ur discussion we want to focus on principles,
dynamics ~ relationships. Please feel free to cite cases or
issues i
llustration of principles or relationships; but
let's av i debating interminably specific issues or specific
.politic
issues.
We want to focus on principles and on
relatio ihips here.
Though J hours seems like a lot of time, with the caliber of
the h ~ts and minds on this panel, I assure you that it will
fly
it already is flying.
We have a full agenda, so
plea
be frank and forceful in your comments, but also try to
be
ccinct. On the other hand, I will need plenty of help in

3

�I
J
trying to moderate this panel, particularl
n avoiding dead
space on the air.
So please be read~
jump in -- freely
jump in. But I do ask you to give s~
sort of a signal when
you're ready to speak out so that .
an attempt to recognize
you and that also gives us the/'~ se that brings the camera
around to you. If you use ac;o
s, please help to interpret
them. Realize that we're ta
ng to an audience that does not
necessarily know what IC
which happens to be the acronym
for our association. I
bt that any of you knew what that
acronym meant until I
mentioned it.
to the audience.
As Maryellen has
And then an inv it
mentioned, there
11 be 2 points in the program where you
will be invited
come to the microphone here and join in the
discussion. T
first will occur at the end of Stage 1 of the
discussion wh
we talk about identification of the nonprofit
sector, and
en the second will come at the end of Stage 3 as
we try to
ing a sense of closure and a sense of conclusion
-to the d
berations of the day.
I trus that I have anticipated any questions that you may
have
d, having said that then, we will not proceed with all
due arning to the cameras to the formal part of the program
he
today.
Hello. It is my privilege to welcome you to this special and
first summit sponsored by the Michigan Nonprofit Forum. On
behalf of the forum's Chair, Dr. Russell Mawby, our Executive
Director, Maryellen Lewis, and the Board of Directors of the
Forum, many of whom are gathered in this room, we invite yQu
to brace yourself for a lively and energetic dialogue about
some issues and relationships very important in our society
today. My name is Edward Blews, and in my professional life,
I serve as the President of the of the Association of
Independent Colleges and Universities of Michigan.
But I
stand before you today, as a member of the Board of Directors
of the Michigan Nonprofit Forum.
Established in 1988, the
Michigan Nonprofit Forum is a dynamic new coalition of
statewide organizations and leaders representing the wonderful
diversity of nonprofit entities. The Michigan Nonprofit Forum
describes itself as, and I quote, " ... a statewide alliance to
promote the awareness and effectiveness of Michigan's
nonprofit sector and to advance the cause of volunteerism and
philanthropy in the state." In its relatively short life but
rapid maturation, the Forum has evolved into an enterprise
charged with achieving a new awareness and increased capacity
of Michigan's nonprofit sector, and with interfacing funders,
nonprofits and the public to help promote volunteerism and
philanthropy in this state of our's.

/

�I
/

'!'he Board of Directors of the Forum has adopted 6 guiding
principles designed to reflect the mission of the Michigan
Nonprofit Forum. One of those principles states, "The service
-of the nonprofit sector to the public depends on an
interactive partnership between service providers or nonprofit
entities, funders, policy makers and the public. The Michigan
nonprofit community should promote constructive dialogue among
all these parties."
You will probably hear the word "mission" used rather
frequently, or so we hope, during the discussions of the day.
This Summit which brings us together really goes to the very
heart of the Michigan Nonprofit Forum's mission. Those of you
who talk and those of you who listen and look in on today's
proceedings are really participating in a rather historic
event. This is a unique undertaking, an exciting experiment.
It is the first in a series of forums bringing together our
society's leaders to think on compelling issues aff~cting our
society and the nonprofit sector. The purpose, though, is not
to provide the answers but rather to pose and clarify and
stimulate the
est·
rom th~m to sga~ - ~q 9n- o
dialogue
this par
ou
all - It

s
Now very shortly we will be introducing our very distinguished
panel of government, business and nonprofit leaders.
But
first, to set the stage for our dialogue, we will hear some
.remarks by a very distinguished national leader and recognized
expert on philanthropy. Before I introduce him, let me simply
mention for the information of the audience that he has
prepared and circulated to the panelists today a paper
discussing
the theme of this particular summit and he will
(
share some comments about that theme in just a moment. His
name is Dr. Robert L. Payton. He comes to us as the Director
of the Center on Philanthropy at Indiana University.
From
5

�I

1977 to 1987, he served as the President of the EXXON
Education Foundation. His very impressive leadership career
has included 2 college presidencies and a United States
Ambassadorship. The recipient of honors to numerous to cite,
he is an author on philanthropy who puts his words into action
as leader and volunteer for countless good causes.
Please
J01n me in welcoming Dr. Payton to address us on the topic at
hand. Dr. Payton.

Payton:

Good morning. I am very pleased to be here with you. I was
pleased to be invited to prepare the paper that has been
circulated to you. It occurred to me when someone commented
before the meeting that they had read the paper that I hope it
is provocative enough to serve its purpose, but not so
provocative that it puts its author in jeopardy.
I hope to
stimulate conversation that comes from you because you
~ £.Q_~!ty_ t:._hc?~ is the matter of fQPC~~n _QI! tht§ _

/

Over the last several years, along with everyone else, I have
been profoundly impressed by the events in Central and Eastern
Europe. I'm old enough to be able to say that my generation
as a generation never believed that it was possible that such
events
would
take
place without
vast
bloodshed and
destruction.
So it is that this most extraordinary event
provide us with, I think, an extraordinarily important
opportunity.
Given the conditions that would cause this meeting to be of
compelling interest to the people in Michigan, what would an
analogous meeting bE like in Russia today? Who would come and
w_hat values and understandings would they bring?
We're
advised they're invited to provide advice increasingly to
countries in that part of the world that will help them
develop a third sector. What we are watching is a situation
where societies are moving from a condition of being one
sector societies, with strong encouragement from the West to
-become two sector societies in the beginnings of suggestions
that they should become three s e ctor societies.
It is my
strong conviction that unless they become three sector
societies, they will not become democracies.
It is my very
strong conviction that understanding that the United States is
a three sector society is essential to understanding it as a
democratic society.

6

�This is not a subject at the margin of our interests. This is
a subject at the center of our lives, whichever sector we are
parts of, because as citizens we have had the great good
fortune to become members -- to be members of a three sector
society. The first sector can be thought of -- the government
that is -- as having an essential defining term, and the term
that I have to use that says that without it you can't talk
about government is the word "power"; the legitimate use of
force in behalf of the community. If you take the notion of
that away from your notion of government, it seems to me your
notion of government collapses.
There is a defining term of the second sector that will be
something like the word "wealth" or the word "property"; the
right to acquire and use and to dispose of wealth and property
according to your own individual private interests. If you
were to take that out of the marketplace, the second sector,
~t would collapse.
So my habit as a professor is to say to my students, "Then, of
course, you're ready to tell me what the defining term is for
the third sector. " And, along with most professors, there has
been a heavy, ominous silence. I will break the silence and
tell you that my notion is that the word has to have something
to do with morality, and I mean morality only in the sense
that intervening in the lives of other people for their
benefit with no public mandate is a moral action. And if you
took that out of the third sector, you wouldn't have a third
sector.

Final
for a · stance
responsi ·lity.
asking fo
n9 formal
what we usua
might come t
articulated
request for
of self-he
has no fo
reasonab
doing to
ally, the central
er, complex system
ay, usually with a cu
cardboard box with the
7

the place of self-help in
alking about. . . I do this,
A cube is, in my case, a
ords around the side. Its

�the kind of thing that Rubik w ld have designed as a cube if
he'd nly had tenth grade geo try like I did. But the first
face o it, in other words, s ys "self-help." The second face
says
utual aid.
What
e you and your family and your
friend
and your neighbo s and your associates and your
collea es and those othe people who do have some f
al or
informa claim on you, wh
re you doing in that waY, working
togethe with others, to de
with the problem?
II

The thir
Its a rec
as indivi
mutual be
or so diff
we will no
us to part
most famil
certain ki
If each on
mutual aid,
satis factor
question.
people for

11

ord "goverrunent a sistance."
any things that e cannot do
s accordin to our self-in erest or our
re some t ·ngs that ar so important
omplicated t at we have o a~sume that
ose things, b
we will require all of
some way, that
to sa , the simplest,
e will decide t
tax a e another to do
se 3 questions is
red -- self-help,
ent assistance
ome plausible way,
or you, you then fa
the philanthropic
u prepared to offer as ist nee to help those
you have no personal,
responsibility?

Now a cube h s
bottom and I'm
not trying t
uggest superiority a d inferio "ty here. But
since we're
lking about philant opy, the t p of the box
says that t
e is a dimension t at cuts thro gh all these
things all t
time and that's th word ~~altruis
concern
about othe
If that were t a factor in the human
condition,
uldn't be here. We wouldn't be ta king about
this subje t.
t's always pre ent to some extent
The most
:igid, ri~ ro s libertarian is !truistic to some e ent, like
~t or no
then all the est of us who are,
viously,
high-min d a d altruistic are also egoistic, self-i terested
-- to s e ex e t. And altruism and egoism are not only on
the top and t e bottom of the box, they are on each side of
t!lis d · cussio . That the people who come to you have a selfinter t just s you have an altruistic one. But you should
reme er they h~ve altruistic concerns and that you have selfinter sted ones\.
II

--

ink some of these brief notes are intended to suggest that
this first sector of government, these notions of self-help
and mutual aid in the marketplace and elsewhere, and
philanthropy -- self-interest -- concern about others -interact in our lives in absolutely extraordinary and
wonderful ways that makes our society, in my judgement, the
most privileged that I know of. And I hope that sense is not
something that one is that proud about in the sense that its
a claim of virtue on one's part because we are not here

8

�because of our own initiatives but because of others who have
gone before us have made it possible and desirable for us to
be here.
That principle of the philanthropic tradition that we are part
of is what, I think, really distinguishes American democracy.
It is the best thing, I think, that we have that we can share
with the rest of the world.
It is the best tradition, I
think, to help us face the kinds of difficulties you're
talking about in your community and we're talking about in
mine today.
Each one of us is not just part of a sector.
Each one of us is a part of that tradition, And so I wish you
well in your discussions and will close at that point -- short
of my normal 50 minute lecture.
Thank you.
Slews:

Thank you, Dr. Payton. I'm certain you were very popular with
your students with that kind of lecture.
To carry on the dialogue from here, we have gathered around
this table a panel of leaders from government, from the
business ~orld and from the nonprofit world.
And at this
point I'm going to toss out a little teaser because it may
that there is a fourth sector.
These 3 sectors that I have
mentioned, and sector is a term that we will hear frequently
today, are certainly a significant, significant part of the
infrastructure of our society. The government or the public
sector, the business world or the for-profit sector, and the
nonprofit sector or what is sometimes called the charitable
world.
And I will mention the teaser, that there may be a
fourth sector that somebody may strike upon as we continue our
dialogue here.
There are 2 things in particular that strike me about this
particular panel.
The first is that they are a very, very
distinguished group of government, business and nonprofit
leaders. The second thing that strikes me about this panel is
its diversity.
Now I am also acutely aware that a panel of
leaders like this cannot be kept down and cannot be kept
silent for very long.
And so we are going to now ask each
member of the panel to briefly introduce himself or herself
and the perspective from which they speak to us today,
beginning with Mr. Yamanishi on my left.

Yamanishi:

Thank you.
My name is Herb Yamanishi.
I'm the Executive
Director of the Michigan Community Action Agency Association.
Community Action Agencies are part of the old War on Poverty
Program.
We cover all 83 counties of the State of Michigan
and are one of the largest social service/human se:;vice
delivery systems in the State of Michigan serving pver a
million and a half people. - ~d cni'isi a•A 7 l' enanr;t? j7Blv+nt=the
9

�.....

Sederburg:

Mawby:

I'm Bill Sederburg,
Vice President of Public Sector
Consultants here in Lansing, Michigan.
Public Sector
Consultants is an independent, for-profit research firm
specializing_ in ~tate P'!!Uic .policy _ ,Qnd .public ...opin~
·
1
!~91.1;h . _J Afi" YQli ~e~eed rWhaF sec t:er Wet; ~Bp:1!888ft'8 I
l~i:tia tiae
.l_:!!:!!.of R"£1 !? ~·••• ifisw!W:tants 1 _!•re'"2L[£r:£FQ!L.li: \ I'm no
sure exactlry what sector I'm supposed to be representing, so
I think I'll represent the for-profit sector today and shed my
12 years previous experience of Qeing in the State
Legislature. I'll let the other folks on the panel that are
currently in the Legislature try to defend that in~titution • .
I'm Russ Mawby, Chairman
W. K. Kellogg Foundation
-grant-making foundation.
as the Chairman of the
Nonprofit Forum.

and Chief Executive Officer of the
which is an independent, private
I also have the privilege of serving
Board of Trustees of the Michigan

Up john:

I 'rn Elizabeth Up john.
I'm Vice Chair of the Kalamazoo
Foundation.
I am 1992 Campaign Chairman of the Greater
Kalamazoo United Way Campaign, so you can see I'm a bit of a
masochist.
I am new kid on the block as far as the Michigan
Nonprofit Forum is concerned, and delighted to be here. I've
been a volunteer in Kalamazoo County for more than 42 years.

Kostielney:

I'm Sister Monica Kostielney, the Executive Director of the
Michigan Catholic Conference, which is the public policy arm
for the Roman Catholic Church in Michigan, which addresses the
issues ranging f~c_:&gt;m, ~g~ng __ to taxation and everyt!ling- in _
betwe~n, 'l
._
he
· ·
p -tnershi
fo

~-

coal~t~on -

do ·
yo .

Cunningham:

---- ·

--- ~---

- --

I 1m

Father William Cunningham, Director of Focus Hope which is
a Metropolitan Detroit Human and Civil Rights organization,
and our objective over the past 23 years has been to stimulate
people and help people to become p~_y.ctive as a major part.£!
their ri ht in . humS\n. di,gn.i,~y ! /
-·
· ~~
t

Roehrig:

J

~

a

I

I 'm Larry Roehrig.
I 'm Secretary /Treasurer of the
American Federation of State, County and Municipal Employees,
Council 25.
I'm here on behalf of the entire membership of
the Michigan AFL-CIO ·0[a£Stapds fsa elli:! MuG£ leaR -EgderartQo/l

10

�Clark:

I'm Jane Deanne Clark, Senior Director for Health Policy
Analysis at Michigan Healthcare Institute which is the notfor-profit research arm of Michig~n Hospital Association.
Michigan Hospital Association represents all close-to-200
hospitals in the State of Michigan.
They are, in the vast
majority, nonprofit and in addition to that, I also am
Executive Director of a unique organization which combines
business, state government and the hospitals in the data
collection effort, and that organization· is called Michigan
Health Data Corporation.

Kosteva:

H~llo.

I'm Jim Kosteva, a fourth term Legislator from
southeastern Michigan.
My legislative focus has focused on
~he E's -- education, environment and economic development.

Bianco:

I'm Joe Bianco from The Founders Society of the Detroit
Institute of Arts which is the private sector support
organization of the DIA. My entire background, as some of the
people in this room know, has been in engineering and finance
and economics, and yet I found myself running a major
corporate giving program some years ago, now in the nonprofit
sector asking for money and trying to assist in the management
of a nonprofit. So I've had a chance to look at it from both
sides.

Hoffecker:

I'm Fred Hoffecker.
I'm an Assistant Attorney General.
I
work with Frank Kelly.
For the past decade or so I've been
fortunate enough to have as part of my duties of supervising
the Charitable Trust section of the office and working with
both sides of the nonprofit sectors, both the grant givers and
the grant seekers, and I'm very pleased to be here today.

Benavides:

Hello. My name is Tony Benavides and I'm a Councilman for the
City of Lansing. I'm also Executive Director for Cristo Ray
C~mmunity Center, a human service agency which is a private,
nonprofit organization located here in Lansing.

Cantrell:

Hello. I'm Aaron Cantrell. I guess I'm here in 2 capacities.
I'm Executive Director of the Voluntary Accident Center in
Kalamazoo and Volunteer Centers are basically there to recruit
volunteers who are trained through our administered volunteer
program, and to promote the whole concept of volunteerism.
I'm also a Vice President of the Volunteer Centers of Michigan
which is made up of all the Volunteer Centers here in Michigan
and our purpose is to develop new centers and to promote
volunteerism throughout the State.

11

�l ler:

I'm Judy Miller.
In my present life I am now Michigan
Business Ombudsman ~n the Department of Commerce, a
gubernatorial appointee given the responsibility of solving
problems that businesses have with State government and
providing some solutions in regard to that. Also, on special
assignment in the areas of Arts and Child Care.

Epolito:

Hello.
My names is James Epolito.
I'm the Chief Executive
Officer of Blue Care Network/Health Central, a Lansing-based
70,000 member Health Maintenance Organization.

Work:

Good morning.
I'm Lois Work.
I'm Vic~ President of New
Detroit Incorporated which is the nation's first urban
coalition. We began in 1967 to try and insure that the needs
of the poor and the disadvantaged in Detroit and the Detroit
Metropolitan Area are met.
We do this basically through
advocacy on a policy level and through serving as both a
~atalyst and an implementer of program projects.

Wilson:

Hello. I'm Mark Wilson of Michigan State University where, in
addition to teaching Political Economy, I direct a nonprofit
Michigan project which is a research and information
dissemination initiative to inform the nonprofit community in
Michigan more about its experiences and the scale of
operations.

Vaughn:

Hello. I'm Senator Jackie Vaughn III, Associate President of
the Michigan Senate. I'm a student both of the public and the
private sector.

Coxa

Good morning.
My name is E. L. Cox.
I'm currently the
President and Chief Executive Officer of the Accident Fund of
Michigan.
In my former life, I was the Chairman of the
Amerisure Insurance Companies representing the business sector
of this and the target of many of you for contributions over
the years.

Gallagher:

I'm Jan Gallagher. I'm a partner in the Washington, D.C. law
firm of Harmon, Curran, Gallagher &amp; Spielberg.
I practice
extensively in the area of exempt organization law.
I edit
independent sector's quarterly publication, STATE TAX TRENDS
FOR NONPROFITS. And I 'm currently engaged as a consultant for
independent sector in the development of their white paper on
the role of nonprofit organizations.

Bandstra:

I'm Representative Rick Bandstra, a Legislator in the Michigan
House from west Michigan.
I'm in government now.
In a
previous life I was a lawyer in the private sector and I
continue to be involved in a lot of nonprofit board activities
back in Grand Rapids.

12

�Good morning. My name is Bob Ivory.
I'm the President and
Chief Professional Officer of the United Way of Michigan.
United Way of Michigan is an association of some 110 United
Ways throughout the State
about $139 million in this
past year
~ 10

~ta~~~~~~~~

\
Anderson:

Hi.

Blews:

Jhank you to each of you. Through those introductions we can
certainly see the interrelationship in our own professional
and personal lives between the 3 sectors that we have
described.
In his prepared paper, Dr. Payton described this
Summit as an exercise in exploratory discourse. We enter the
discussion with questions, and will explore possibilities.

I'm N. Charles Anderson, President of the

Continuing to quote from Dr. Payton, the Summit itself has no
authority to affect change. In fact, the Summit has only the
moral authority we may bring to it, individually and
collectively.
If we are successful, others will carry the
discussion forward towards action and implementation. We will
be pursuing this discussion in 3 stages. We might think of it
as the booster stages on a rocket or on a space ship. Each
stage of the discussion, we hope, will thrust us forward to
the next level and the next stage of the dialogue.
Those 3
stages,
briefly
stated,
are
first
identity
or
identification; secondly -- the evolving partnerships; and
thirdly
insights and principles to guide us into the
future.
S!:age 1, then, really poses an identity crisis. That is, what
is the identification of the nonprofit sector? What is this
entity -- this thing that we call nonprofit?
What is its
role in a pluralistic and democratic society?
What do we
expect of it? What values energize it? What distinguishes it
from government and from business?

13

~
I

�I
Let's begin with a little game of word association. It may be
revealing. Each of our panelists has a large card in front of
them and a marker pen. I'm going to ask them now to write on
that card the very first and honestly the very first word or
adjective that com.~s into _, y..QQ;r; mind when_ we s~ t!;!e_. word

":~.

'

r

fit secto

"

. :::~e=:&amp;~ 9t!*;r!s~~';;~!me~~

Anderson:

Well the first thing I think of is Social Services·.

Wilson:

I used Invisible, because we look at what nonprofits do but we
don't think of how they're organized.

Work:

And I used Conscience.

I thought I needed one word.

I meant

Community Conscience.

Bianco:

We're all working together for the good of the Community.

Kosteva:

I thought of a different bottom line -- Fund Raising.
14

�Roehrig:

Spoken as a Treasurer -- Donations.

Cunningham:

Spoken as a theologian -- Voluntary. Because it springs from
the highest instincts and highest ideals of human · nature·.

K9stielney:

I wanted to put Hard Work but I put Service instead.

Upjohn:

Spoken from experience -- Volunteer.

Yamanishi:

You've got two votes for Charity.

Blews:

-Charity wins by a plurality.
That's marvelous.
An
illustration, again, of the diversity of the sector.
But
let's play the game one more time.
What word now, what
value ... What value pops into your mind when we say the word
nonprofit sector? What underlying value do you first think
of? And the pens are busily scribbling again\. What value do
we think of associated first with the nonprofit sector? And
: : s time we'
~~[~~i:_h_ C~~ncilman Benavidef8c1 ie"- that

1:

Benavides:

Commitment.

Cantrell:

Caring.

Miller:

Love.

Epolito:

Credibility.

work:

Service.

Wilson:

Altruism.

Vaughn:

Good for All.

Cox:

Altruism.

Gallagher:

Another vote for Altruism.

Bandstra:

Yet another vote for Altruism.

Ivory:

Community Good.

Anderson:

Positive Results.
15

j

1

�ssion.

-

--·--

Kosteva:

Eternal Hope.

Hoffecker:

Freedom -- to make choices, where to put your time or your
money in your altruistic way to do good.

Payton:

And my word is Democracy which tries to capture these notions
of Community and Caring.

Slews:

Mr. Epolito, you used the word Credibility. As a person from
the business perspective, how do you think of the nonprofit
sector?
How would you define or describe, in a paragraph,
what the nonprofit sector is?

Epolito:

Blews:

Representative Bandstra. As a legislator, what do you think
of? What is your definition of the nonprofit sector?

Bandstra:

I guess I'd like to follow up on something Jim said about that
and I think that what's happening here with the credibility
problem is what happens so often times in all kinds of
institutions in our society, that good apples are infected
with the aura that surrounds some bad apples. And I've often
wondered whether we, as State Legislators or nationally, ought
to come up with some better system of required disclosure of

16

--- -

�·,

how nonprofit organizations work to provide assurance to
everyone that through some standardized reporting system, the
institutions that they are supporting are reputable and worthy
of their support, to deal with the kind of public perception
problem that sometimes does infect the nonprofit side,
unfortunat~ly and unwarrantedly often.
Blews:

How do you in the nonprofit sector react to that particular
idea? Father Cunningham?

Cunningham:

To me, credibility is ... is less ... far less important than
integrity.
I don't think people ought to be trusted or
believed. I think they ought to have track re~ords to be abl~
to demonstrate that they're worthy of the support of
government and partnership with industry.
·

Blews:

Lets refer ... return to the notion, though, of legislative
involvement in terms of helping to assure accountability of
-the nonprofit sector. Mr. Bianco, from the perspective of the
Detroit Institute of the Arts, how does that resonate with
you?

Bianco:

setting that framework would be a very healthy
contribution, in my opinion, that the Legislature could make
to the credibility of our nonprofits.
Blews:

You've used the term "definition" in your comments.
Sister
Monica, as the Executive Director of the Michigan Catholic

17
I
,;

�Conference you're part of the nonprofit sector.
define the nonprofit sector?
Kostielney:

How do you

Well, I think my understanding of the nonprofit sector comee
from the very nature of the human person, and that is if you
begin with the premise that each person is good and has desire
to do good and then moves out from that premise and coalesces
with other people to good for society or for the common good,
you have a legitimate group of citizenry who have a right to
be as recognized as the other sectors in society.
I do not
see the nonprofit sector as kind of picking up what other
people can't do or won't do. I see that as a bad approach to
nonprofits; but rather that there is a basic good that drives
one to accomplish good and that is a basis then for forming
the nonprofit sector, inn the whole spectrum or range of
issues or values that touch human lives, from basic human
needs to the transcendent values that we all seek -- going
ri ht f
sic huma
s to the art.s. f" And ' 0
~
e . tim
pla-c
en, fo
eliOnpro
ec
-:t - be pres nt
d v
· e in
~ _ .+t j es.

•Erie,

Blews:

We've said a great deal about values with regard to the
nonprofit sector. But when we ask the question of definition,
we really haven't very clearly defined what the nonprofit
sector is.
And we're fortunate
ve with us toda
a
national
ert
th
~-e~~ou5s~~ona
· .·

.

.

a-n-e~~he

9!~~~~~~~~~;;:~~~~
er,
you
a
w Miss
firm and is aagrecognized
expert
the definition and the protection of
the nonprofit sector.
And she, as you have heard, is
conducting a study of the independent sector or the nonprofit
sector in the process of preparing a white paper on that very
subject. Miss Gallagher, structurally, what is it that makes
nonprofits nonprofits?
Gallagher:

I think that probably the single, most important structural
differentiation is the one that we've already discussed this
~orning, and that is the concept that nonprofits, as a matter
of law, are barred from operating for the private benefit of
anyone.
That's a concept that often doesn't get, in my
judgment, the attention it deserves.
It certainly is the
single
characteristic
that
distinguishes
nonprofit
organizations most clearly from business enterprises.
The
-concept of no private benefit involves an attention to salary
levels that are reasonable, to operating in a way that doesn't
advance the private interest of any individual or any selfselected group of individuals.
It also, for most of the
organizations today we're calling nonprofit, involves a
commitment of their assets irrevocably to a public purpose.
Again,
that's
something that sometimes
gets
lost in
discussions of the differences between a business and a
18

�nonprofit organization.
A self-imposed characteristic, not
one that 1 s actually required by law, at least not very
frequently, is that the types of nonprofits, again that we're
discussing this morning, typically are governed by volunteer
Boards of Directors.
And, again, that's an aspect of
nonprofit structure that, I think, has not gotten the public
attention that it deserves recently. The concept of a group
of volunteers coming together in a community to form an
organization in response to a community need, and then lending
their time to provide policy guidance to that organization, is
an important characteristic of nonprofit organizations.
Finally,
I
think
its
a
characteristic
of
nonprofit
organizations that they do exist to provide some form of
public good or public benefit.
:, slews:

In your study, · you've been looking at the broad range of
entities that fall within that term nonprofit sector. Can you
_give us a sense of what that range encompasses?
Well, for purposes of the independent sector paper, the
organizations that make up independent sectors 1 membership and
the steering committee of the group that's looking at this
issue have divided themselves into the following categories:
we have arts organizations; we have civic and human rights
organizations;
education;
environment;
health;
public
advocacy; religion; and social welfare. And that, I think, is
a fair description of the diversity that makes up the
independent sector.

Blews:

As we played the word association game, it was fascinating to

see the number of different values that were identified with
regard to the nonprofit sector. And I understand that in the
study that you are conducting, that is, in fact, one of the
things that you are compiling is, in a sense, a compendium of
those values that are found within the nonprofit sector.
Could you give us a checklist of those values?
Well, the approach the steering committee took in its
qiscussions was to try to evolve a set of values, social and
cultural values, that the nonprofit sector embodies and
nurtures. And I'd like to stress that this paper, thank you,
that this paper is very much in the process of development;
that the values that I'm about to describe are not finished,
and that I'm very appreciative of the opportunity to be here
-this morning, and I hope that this discussion is going to
inform my further work in this area.
The first value that we've described is called ... we're calling
"Giving, Service and Community."
And this value states
something that we just heard all around this table this
morning -- the basic moral obligation of people to care for
and serve others. It ... As we're using the term, its defined

19

�.,
as the value that creates a fundamental sense of community.
Without giving, without service, we don't have community.

I

\

The second value is "Pluralism. "
And, in a sense, that's
almost antithetical because at the same time that we're
building community, we're also affirming the value of
diversity, the ability within the community to speak out for
other points of view.
And that, I think, is one of the
critical things that nonprofits must do.
Nonprofits also,
within the concept of pluralism, encourage individuals,
encourage groups to come together to act on their own values
and their own beliefs. They provide a structure for people to
do that.

I

I

"Civic Participation" is a third value. Again, its a way for
individuals to come together to act for positive social change
within our democratic structure, and in this way, and I think
~hat Dr. Payton mentioned this in his paper and again this
morning, we're ... we are sustaining and renewing the democratic
process.
Without viable voluntary organizations, the
democratic process would wither.
The next value is the "Development of Human Potential." Most
nonprofits exist in one way or another to a greater or lesser
extent to help people to grow -- to be as good as they can be.
In this value we have the commitment to excellence in
education, to excellence in scholarship, to research, to
artistic expression. We have a lot of other things in this
value as well.
The development of strong families, sound
health, healthy environment, an overall positive moral
character for people, altruism.

/
:

/- . . ._
\)

~

~~

'

\

))
\

"Compassionate Response to Human Need" is the next value.
That's a very important one for the social services sector.
Voluntary organizations are the ones who exist to mobilize
community resources to care for the poor, the sick and the
disabled, the elderly, others with special needs here in the
United States and around the world.
Finally, we have the value of "Faith." Its impossible to talk
about the independent sector and ignore the importance of the
religious community within it.
And through the voluntary
sector, we have churches and religious organizations which
provide a means for people to practically express their faith.
Religious organizations ... (tape stopped)

/ \)
') I
1

,·' 1

\.·

.

"

\

... at least three others.
One is the important role that
nonprofits play as the protector of the legacies of past
cultures, and I think that that is a critical role for the
arts community. A second is that nonprofits play an important
role in this country in providing perspective on the future.
~ince they're not bound by a profit motive, nonprofits are

)

20

I

�able to guard the present, look to the future, hopefully to
plan as we make transitions into the 21st century.
And,
finally, and I think that this is very important for nonprofit
organizations to be themselves,
to be architects and
practitioners of ethical behavior. And this is a value ... I
think the other values are ways in which nonprofits provide a
structure for people to act. This particular value is one in
which nonprofits themselves must set the example as a way,
again going back to what Dr. Payton was saying a few minutes
ago, as a way of teaching people trust.
Blews:
Bianco:

Thank you.

What's the reaction to those values?

Mr. Bianco?

r ' d - ' t wan
t
e Qn
nse
__
\ . j~
' when we talk about what's
difference between the third
sector or the nonprofits and the other two sectors within the
ynited States, that's one perspective.
Auoteer perspectiy~
that I think ':! need to eyawilllO iit lii'i!EO pajnt jp these kjnds
ol, djSCJ1§5ione 1 ooh:ia•A I iiHRkly hope 'nljll he on-going f..Qr
&lt;N.ite a 1ibne because I tn1nk there s a gxeat challenge to the
tltttd sec LUL yotny
we
. bit in thiS . country today I and I hope
.
9

(\

hQve tg compara• In the United States, as we well know, there
is about 31 per cent of our Gross National Product that is
consumed by taxes in the Gross National Product. The European
example, as I'm sure many of you have studied these things
probably more carefully than I have, have seen that about 41
per cent of the European Gross National Product is consumed in
taxes . The European model is certainly, from a value point of
view, has many of the same Christian and Judea-Christian
values and motivations that are here in our society. I think
those kinds of values are operative and strong influences on
both sides of the Atlantic in that sense. But in the European
models, clearly they have made a different decision.
The
third sector is certainly not as important there as it is in
the United States, and they've made a decision to provide the
basic kinds of caring services that Sister Monica referred to.
T~ey've made a decision to provide for arts, for culture, for
education, for all of those things; but they've chosen to
provide it largely through federal government taxation and
federal government programming. So in that sense, clearly we
have a remarkably different model in the United States. And
then I think we get into the question of, "Who delivers the
service the best?
What are the results?"
It seems to me
Charles had a results sign over there.
Who delivers the
results better?
And I think that alone is a tremendous
challenge to all of us in the nonprofit sector to think about/
iW--'~~,.s
the
int
make is that ( 1) we re cle ly
if
en
om h Eu pe
mo
to
not ng Pro s or
o
bo t
he
1
mo el· and
wit ·n ur
ntry, the
he th
sector and go ernmental

21

�Blews:
Yamanishi:

Mr. Ya.manishi.
It seems to me that what Jan has put down here and what we're
defining is not ... nonprofit sector is not quite as pure and as
moral as we would like it to be.
I don't think it is. The
underlying assumption is, and historically, we had charities
and the concept of charity was what was used. As a matter of
fact, if you look at the history of nonprofits, the term
charities used to be used in a ~ot of the names of
organizations.
The United Way had charities in its name
previous to the time it changed to The United Fund. I think
nonprofit sector can't be defined quite so pristine and
purely. Its a dynamic. Its a force that's pushed between the
private sector and the public sector,
and you have
institutions, organizations within the nonprofit sector that
-are leaning one way or the other constantly.
Its a dynamic
that ... and you' 11 find organizations that are mimicking, maybe
almost substantially, the private sector in the way in which
they operate and the way in which they deal with benefits,
personal benefits, they way in which they address problems,
etc. And then you'll find other organizations that are much
more allied with government and operate in a much more
experience with community action agencies. And a lot of them
that, even though they're private, nonprofit agencies, had
solely government funding and had government people on their
Boards as directors and so then they became much more of a
political entity in the lo.cal community.
So you have a
dynamic and that's, I think that's what we created was a
dynamic that helps us to define the fo~ces between the public
sector and the private sector. That's where we ... ! think we
should begin to look at the definition of what a nonprofit is.

Slews:
Yamanishi:

Slews:

Dr. Sederburg, for a number of years you represented that
general public in the State Senate of the State of Michigan.
Dr. Payton, in his paper, refers to a rather interesting term
"teliopathy" -- the loss of mission or the disease of
purpose which really goes to a values question also. What's
your reaction to that?
22

�Sederburg:

t

\f\

Blews:

'

Gee, Ed, I'm just delighted to be asked that question. What
about a nice softball question like, "What do you think good
is? or something like that? Teliopathy, of all things. Well,
as I understand Dr. Payton's comments on teliopathy, its
talking about lack of focus and loss of mission in
organizations -- kind of a drift without a sense of mission.
And I'll try and tie that in with what Herb said and then also
with what Joe said. I think government is losing its sense of
mission as to what the public really wants government to do.
I really feel sorry for all these candidates running around
running for President because the public is giving them
totally mixed messages.
Do they want National Health Care?
Do they not want National Health Care? · Do they want Jobs
programs? Do they not want Jobs programs?
And ~ts such a
mixed bag that government itself has lost its sense of mission
and its causing all sorts of dislocations in the political
system.
-The mission is also central to this debate, in my op~n~on,
because I'm going to be perhaps thrown out the room here with
this, but I think the nonprofit sector is defined by what the
others are not.
You're the residue of everything else, and
its driven by market functions. For-profit, when we look at
it, the public sector, we look at what are the markets out
there, those market niches, that we can go out there 4nd do
some work and, hopefully, make enough to feed the kids.
1 Government looks at constituencies as a marketplace and so
there's a constituency that develops; government will be there
with that service. And so its driven ... Those two sectors are
driven by market functions. The nonprofit ... nonprofit sector
is driven not by markets but by good will and philanthropy and
the desires of the individuals organizing it. Its a different
direction, a different flow. And so the point that Dr. Payton
made about mission, I think, is central to the whole debate,
~nd that is the definition of mission.
Government is adrift.
The private businesses are also having mission difficulties
because of the changing economy and the world, global economic
forces, etc. And so that's a tough debate going on. And the
mjssion of nonprofit homes ... ! don't know why I keep saying
nonprofit homes ... but nonprofit organizations is very, very
tricky because everybody looks to you guys to catch everything
that's left in between. And that's a very difficult type of
situation. So how about that for an answer, Ed. Was that all
right?
That sounds interesting to me.
I'd like to know what Ms.
Work's reaction is to that speaking for New Detroit. Is your
mission defined by what others don't do and, therefore, you
do?
You mentioned when we talked about values, you talked
about service as the value that the nonprofit sector
represents.
23

---

�Work a

~~~~r:~~~~l~~~

4

en Jan said that - the nonprofits
'ctitioners, perhaps, of moral doings, I
was taken back to had you asked me, I was going to say perhaps
nonprofits are both the stimulator and the implementor of good
deeds.
Now New Detroit's mission is, of course, to try and
ensure that the poor and the disadvantaged have a voice in
what occurs to them and that they ... their human needs are well
taken care of.
But what Herb said earlier, I think, really
applies here, too. Nonprofits depend often on where they get
their money from.
New Detroit gets a lot of business
/corporate funding, but we have also had many, many grants
that were government funded.
And, I think, depending upon
where your funding comes from, often you have to lean a little
more toward the values and the practices of the sector that
gives you the funding. Our mission, I would say, is to be a
stimulator and a practitioner of good deeds.
However, the
business sector, who gives us a lot of funding and I think
this is a good thing, is making sure that we become more
businesslike and more effective in what we do. The government
sector, when we have their costs of funding, wants us to be,
obviously, a little more political depending upon where the
funding is coming from, and also has a very different kind of
bureaucratic view of how you spend your funds. So I would say
that I think the nonprofit sector, indeed, has its own
mission, but it is often one cannot separate the 3 and how one
gets its funding and who funds you.

Blews:

All right.
Senator Vaughn, we've talked about values and
we've talked about the mission of the nonprofit sector. As a
Senator, how important do you consider those values and that
mission to be?

Vaughn:

I consider them to be extremely, but I'm more confused now
than ever.
I have a constituency here and back home and so
I'm constantly pulled in all directions. If you noted when
you asked me the original question, I said nonprofit is good
f9r all. Its the first thing that came in my mind. And then
I had a little notation, though. Things held in common. It
doesn't benefit the left or the right. I should rise above my
own ethnicity or political persuasion and do what is right.
And I find that in listening here to all of you, I want to be
reelected and I consider that as one of ~y missions -- and w~
talked about mission -- and yet I want to be liked and I want
to be loved and I want to do what is right, so I'm torn
between the forces, but I never lose sight of the fact of why
I'm here. I'm here to help for all, for a people and to rise
above my own ethnicity and my own political persuasion and try
t.9 s~y, :·wJtat: Hould benefit society mu~!l bet:_ter?_•:_j So~e
I
ss n 1s
lea~ _
thi ,
ut . _no
leap ·
-m~o es .
.
~ ...::_
·_

/l
\

\.

~)
I

?

I I

- ___......--#~

---

-

-

- -

-

24

- -

,

�Senator, you raise a very important and a new point, and that
is that in order for a Legislator to serve that public good or
that good for all that you described, that Legislator also
must be reelected from time to time.
This, after all, is a
democratic system.
Representative Kosteva, with your
constituency, is there a value placed on the nonprofit sector
on the kinds of missions that we've described such that you
can, as a Legislator, be a proponent of the nonprofit sector
and still be reelected?
Kosteva:

Clearly, because many of the purposes that the nonprofit
sector and the governmental sector strive to achieve are so
similar.
The benefit of all, the public improvement, the
ability to advance human potential, to respect the diversity
of our nature and of our culture and institutions, I think
that's very easily done. The beauty of the nonprofit sector,
in my eyes, is that it allows the individual choice to be
~ade.
The individual choice on the part of individuals to be
able to pursue the nonprofit contributions and roles and
volunteerism that they individually choose to participate in.
It allows them to advocate for those particular causes, and
with that advocacy and that participation and that choice
comes a commitment to those causes. And so I think its one of
the fullest expressions of the participatory democracy that
Jefferson brought to this country. So clearly, to the degree
that the government sometimes deals with the collective good,
the nonprofit sector, I think, their well-defined mission at
the present time, on a more individual basis, I believe is
more well-defined than the governmental sector and the
business sector as it comes to social concerns.
I think
they're very, very compatible with constituent concerns as an
elected official.

Blews:

Dr. Mawby, you're on the funding side as the President and
Chief Executive Officer, Chairman and Chief Executive Officer,
of the Kellogg Foundation. Are the values that you have heard
and the missions that you have heard worthy of your support?
Are they the kinds of values and the kinds of missions that do
w~rrant the support from a foundation such as yours?

Mawby:

Well, we, as a grant-making foundation, of course, work very
closely and share, in general, the values of the nonprofit
sector. Under laws established by legislative groups at the
state and federal level, the nonprofit sector is defined and
we, as grant makers, have the opportunity of giving funds to
nonprofit institutions and organizations and to all of the
units of government.
So its very often a collaboration and
you have to say that, as you look at society over the past 10,
20, 30 and 40 decades, the role of the various sectors
continue to be dynamic and evolutionary.
We passed federal
legislation with funding which provides for positions labeled
volunteer which are paid. And that, you know, results in some

25

�confusion. So its an evolutionary process. Simplistically,
it seems to me, the nonprofit sector represents all of those
'institutions, organizations, and programs which include
private initiative for the public good.
And certainly the
kinds of values that have been described on the cards and in
the discussion are certainly consistent with the kind of a
mission that we see as the particular role of grant makers in
the whole collage.
Blews:

· Miller:

Very good. How ... How well does business and how well does the
government sector understand the nonprofit sector, let's say
on a scale of 1 to 5 with 1 being low level of understanding
and 5 being a high level of understanding, Mrs. Miller, as a
former State Legislator yourself, how would you rate the
understanding of the government sector and how a ·leader in
government, in the executive branch, how well does government
understand the nonprofit sector?

I'm

not certain it understands it very well at all. I would
put that on a rather low side in terms of maybe a 2.
Just
looking at it from my current position, and even having been
a community leader and volunteer in my own community, I find
that government has a very difficult time being sensitive to
human needs and to human value, and I think that's one of the
frustrations that I feel in dealing with the governmental
system now as on the administrative side as opposed to the
legislative side, because we can become too isolated there
from what the needs of the community are and then to better
provide the leadership that I believe is needed from the
government sector.
Because as people have said around in
several different ways as we have talked this morning, that
government and business provide the direction, divide the
impetus, the influence as to how a nonprofit may go. And if
we don't have the leadership and the understanding of the
purpose of the nonprofit, we're not able to provide the
leadership that's needed.
And, I guess, that's what I'm
hoping in terms of my role as the relatively new kid on the
block in terms of the administration of government, that we
c~n bring more sensitivity to that.

Blews:

Mr. Cox, from a business perspective, same scale, how well
does business understand the nonprofit sector?

Cox:

I think the business community understands the nonprofit
sector very well.
Each business organization certainly
recognizes their own corporate responsibility to the nonprofit
sector. And that's limited by their own personal resources,
obviously, and as you go through a time much like we're in
today, the amount of resources available for distribution
becomes limited. And, you know, they have the same compassion
and the same social concerns that all of us have. But its a
matter of meeting the payroll or donating to nonprofit

26

.I

�organizations.
And their obligation, obviously, is to meet
the payroll as best they can. But, no, they understand very
well.
There's a concern about how much of the tax dollar
should be devoted to that as well.
And you can't do both.
You can't continue to raise taxes and then continue to expect
the corporate ... the business community to find the means to
solve all of the problems.
Bianco:

Ed, can I take a contrary view to that?

Blews:

Sure.

Bianco:

My good friend, E.L., who has always been a good contributor
to the museum, it may be over after this comment ..• From my
perspective and the years I spent in business, and certainly
E.L. and had many, many years of exchanges together, I would
say that business in the '90's is going to continue its
_ chal~enge of down-sizing, right-sizing, whatever the term is
going to be. As that continues, I see the corporate sector
having less and less of the executive time and staff time
available for volunteer ism.
I think the pressures of the
marketplace on our corporate structure are so severe at this
point, and will continue to et
·
· a lobal
...c.om~t.!tive enviroruq~nt.
An tnat' s Oiie- of -the - reas
~
·
f
w·
n abo
&amp;- d ·
f J b we~n
Euro a §YS our's be
se·
1.
~~ a
ha se
· ·
...-Buf I
e corporate sector is going to be able
ess. I
agree with you, E.L.
Like all the rest of us, corporate
executives are sensitive human beings, in many cases not all.
Like all the rest of society, and will take some personal
interest and follow through in the nonprofit sector.
But I
also think we're going to see such a great pressure on profits
-- we're already seeing it -- and I think that will continue
through the '90's to the point where, I don't know what the
current numbers are, Russ, but it seems to me the last
conference board report I read, corporate contributions were
5 or 6 per cent, something like that, of the total.

·a.

Mawby:

That's correct.

Bianco:

And then foundations were another 5 or 6 per cent. So even at
this point, if the corporations make up 5 or 6 per cent of the
total giving pot, and that averages out at 1.6 per cent or
-some number like that of pre-tax profits, if I remember that
~umber correctly also, that's a fairly small contribution out
of the profits of the corporations. And if they're going to
be under competitive pressure for new plant investment, for
new equipment investment, they're going to have to make a
simple choice. Do I give the money away, or do I reinvest in
a new plant or a piece of equipment or something like that?
And my point is that in the competitive, non-oligopoli~tic,
27

�non-monopoly market that the United States now finds itself
competing in, the decisions, I think, are more and more going
to tend toward, "Our basic job is to provide employment. Our
job is to provide products and services tor this country, and
more of our money has got to go in that direction." So I
think there's caring there. I think there are some wonderful
people to be reached.
But I think the challenge to the
nonprofits is going to be tremendous to make their case in a
very competitive, very sensible way, because I think the
corporate pot is going to be smaller both in terms of peopl~
as well as money.

Blews:

Part of making that case is to understand what impact the
nonprofit sector has within a state such as Michigan. And we
have with us a scholar, Dr. Mark Wilson, who is the Director
of the nonprofit Michigan Project at MSU and who has been
conducting the first study of the nonprofit sector within our
state.
Dr. Wilson, to bring this to a sense of closure in
this identification panel, what can you tell us about the
impact and what do you know so far about the size of the
nonprofit sector in the State of Michigan?

Wilson:

I think the reason I said that it was invisible was the
reaction of being a researcher trying to find information on
nonprofits.
Its very hard to even find out where it is and
how big it is.
So the impact of nonprofits is very, very
difficult to gauge because we don't have a clear idea of what
they do or how much they do or even where they operate. We
can ... To give you an example, we find about 3,000 nonprofit
organizations in the state that employ someone, and they
employ about a quarter of a million workers, a little more
than 5 per cent of the workforce. And that's almost easy to
find out about. It was, compared to the rest of the nonprofit
sector, that was easy. But it made you think about what else
is the nonprofit sector doing? Well there are another 20 or
30,000 nonprofits in the state that have perhaps been
r~gistered or perhaps taken on charges or have organized
themselves formally, and so that's another level of nonprofit
action. And then we did a case study of Calhoun County and
found there were 5 to 10 nonprofits that didn't even register,
that didn't even recognize themselves in a formal way. -L~~
't see
1 . p&lt;;&gt;npr9fit sec.tor ..tend~ !-q be invisible. We
so
ne.
e
1
ha e a v~ · fo
1, or
t9e ~
unit group
etfer omethin
The small so ial
groups . C re roups .
p through t
cracks.
28

�employees in Michigan in 1990, that nonprofit organi~ation$ - - -are generating far more employment growth than perhaps you
would expect, they're about 5 per cent of the sector, but
they're about 10 or 15 per cent of all the new jobs in
Michigan.
But beyond that, that's just really the visible,
formal nonprofit sector.
The invisible nonprofit sector i~
equally important, but we ju~t can't get a clear idea of what
it is and where it is.
Blews;

Mr. Anderson, from your perspective with the Detroit Urban
League, what's your reaction to all of this?

Anderson:

--

J

- -Blews:

-·

I

-

-

-- ...
....
And that really leads us
o our discussion which
is talking about the relat~ the 3 sectors.
But
before we jump to that, we would like to invite anybody from
the audience, if you would like to dive into the dialogue,
this is an opportunity for you to do so.

int~

And please identify yourself and your organization.
Young:

.

Good morning.
I'm Leonard Young.
I represent the Michigan
Ecumenical Forum on the Nonprofit Forum Board.
I have a
rather specific question that I want to ask about identity.
Now we've been talking all morning and there seems to be some
general agreement around the table about what identifies a
nonprofit.
But in my experience and in many of our
experiences in nonprofit organizations, that consensus seems
to break down when you come to the practical level,
particularly in the relationship between government entities
and agencies and nonprofits, and what actually defines a
nonprofit. Let me give you several examples of what I mean.

29

f

�There's one set of criteria for the IRS to determine whether
an organization is nonprofit. There is an entirely different
set of criteria that the u.s. Postal Service uses to determine
if an organization is nonprofit and can use bulk mailing
privileges.
In the State of Michigan there is an entirely
different set to determine whether you are exempt from sales
tax or property tax in different areas. And yet again in the
Attorney General's office there is an entirely separate set of
criteria used to determine whether you have to apply for a
charitable solicitation license or not.
For a lot of
organizations, especially small, locally based ones like Mr,
Wilson was talking about a minute ago, considerable hardship
is wreaked on those organizations in trying to sort out how
all of the different entities of government and agencies look
at and define nonprofit organizations. I would be ·interested
in the Attorney General's office commenting a little on that
from their point of view and any of the others who see how we
might be able to get some kind of a consistent micro
- definition of what nonprofit organizations ar~, and as we
began when Representative Bandstra talked about being
accountable, a single way of doing that so that people know
how they may respond to inquiries and to be appropriately
judged and scrutinized as Mr. Anderson was saying. We need
some single set of criteria for determining thos~.
Blews;

Mr. Hoffecker, you're the Assistant Attorney General with the
Charitable Trust Department in the Attorney General's office,
Your reaction.

Hoffecker:

Well, its a good question and one I, frankly, welcome.
We
view the nonprofit sector as a method by which the tremendou~
social energy that we have in this country can be channelled
and moved into doing the virtuous, good things that we've all
mentioned this morning. Government, in my view, and strictly
my view,
should be as unintrusive as possible.
I think we
have a duty to guard the public against fraud, because there
is charitable fraud -- it does exist,
So you need some
standard and some mechanism to deal with fraud. Beyond that,
i~ my view, there shouldn't be any exemptions.
The fact that
some organization is religious in nature, and we have this
concept of separation of church and s ·t ate, that should not by
itself exempt the organization from letting the government
know that it is out there in a nonprofit charitable function,
how much money its taking in and how much its spending.
~vernment shouldn't say you have to take in, if you take in
this much, you have to spend that much on your charitable
purpose. That's going to be a decision for the public. If
the public has access to information about the nonprofit
sector, what they're doing with their income, making 101
pennies out of 100 pennies, people, I think, can make
reasonable decisions on where to spend their money or, as
money gets tight, more importantly, spend their time by

30

�volunteering with an organization, and make the whole process
a lot better. The current statutory scheme, I think, started
out as a governmental way to kind of nurture nonprofi ts.
Okay, we ll make them tax exempt. We'll give them a break on
certain kinds of property.
To encourage people to make
donations to certain kinds of charities, they get a tax
deduction against their income taxes for making a donation.
Well government should nurture good works that way. On the
regulatory side, and that's where I come as a regulator, we
need to protect the public from fraud and provide a mechanism
for information for the public so that they can make decisions
on what to do with their time and money without regard to
whether the organization is a church, a school, a United Way
en~.i sr~ or _!!!!.,~:!!;;,.!~..2£..!!.9.~ffwOf.~~.. ~;"';:2~~i.~.a~i?~.: . . , .
'*
1

·-

r:;

Blews:

we need a morp co sistent legal definition across the
_ ~ious units ~gover ent of what a nonprofit i5?

t
Hoffecker:

1~,

).'n consiste y is a h llmark o governm nt, but
we need som basic enets tha every ody can
1 k to an 7 I know at
ur 1 el, with l:he C aritable
So ' c'tatio Act, we look to the 01C3 status
th Internal
Rev n ~ Se ice. So we try t be onsistent wit t
We're
tryi g ,to ' ake our organizati
perate on the
form with
the
RS . .
That makes it ea · er for organizat ons.
One
docum ~
If we're all looking t the same docume
it makes
it eas
for the organizatio , it makes it ea ie for the
public, apd we're all lo in
at the s e
umbers.
Arran9
nt, of the numbers
n a form can ch nge
oples
perc~p · io s \ about organiza ons.
In terms
f the ostal
Servi e,
'm\ not sure wha their
gulation are, bu
sure, bein a '?OlC3 is a b' part of · t. If e focus on
as t
'tant, then
think we an de
with the o

I

I gues

Y ahhi thin

r

1

1

tn!

Blews:

.··

At •t
his pp(• nt, hen, we ill take a brea
We will reconvene,
we wii ~ ,/ try to reconvene by 10:45, so please be quick and
brief.

/

(Break)

31

•

�ews:

(Resumed Summit- 10:56 a.m.)
... public here. I'd like to say a word to our ~anel and then
I' 11 say a word as the pr ram itself begins a9ain . And thank
yo very much. You've don a very good job ~n the first stage
here f helping us to set t e foundation aqd to deal w~some
issues
identity.
Our
al now, at p he second and third
stages, is eally to allow
e discuss~on to bec~much more
free-wheelin
And please argive ~e, with ~fie lights and
all, sometimes
don ' t catch the s~gnals t~ come from you.
So feel free to
ve your ca d qr' scre~.J'Cind yell and we'll
try to get a chance o recogn ~eeveryPne. But do feel f ree
to just jump in free
in th' disc~ssion as we go.
And my
role, rather than to p 1
o
b ·· the reins will be, when
necessary, to perhaps rein; ' hi
just a • . . just· a touch.
/

the discussion, ~ yo
Yes,
a s correc .
r d ,t! ~ i
_real compelled to go .to~ e mi
even if its not a point
we'll try to get to you
where we've invited ~ h~~, you rna
as quickly as we
n, and the
w will also provide an
opportunity at t;h end for audi nee
rticipation at that
point.
~

c

Yes,

Maryel~

.

/ 1

wi.s:

And I b · ~J-eve we may go on past

ews:

Yes. ~ n fact, we may go closer to 2:30. Lunch is
We' Jy· announce that again in th
room next door.
:We' 11
~unce that again at the appropr ate time.
At this point

/

......_._~;~w,..~.._,IL"l*-~~ee~t:li*a t;,g t.he-&amp;alllQo5e&amp;,

- - -,-

- . -

-·

- -- - .·- , __;

In the first stage of our session today, we've had really a
marvelous discussion about the identity of the nonprofit
sector and perhaps some lack of identity or some confusion
about identity.
Who are we? What are we? What does that
matter in terms of the relationship between the 3 sectors -government, business and the nonprofit sector -- that are
r~presented around this table before us?
At this point we're going to become a bit less structured in
our dialogue. We have here a panel of persons who are very
distinguished leaders and, certainly, feel very freely, as
they should, to speak their minds, and we're going to give
them the opportunity to do that in this next session, and then
in the third session.
Stage 2 of our discussion, though, deals with relationships.
The government/business/nonprofit partnership, the question of
whether there is such a partnership, whether there should be
such a partnership. How is it changing, particularly in these
difficult fiscal times and these difficult economic days?
32

�What are the issues, the tensions and the ramifications?
Having talked about the identity ... the identity of the
nonprofit sector, we now want to examine that in the context
of these very, very important relationships.
One of the people at our table here who certainly deals day in
and day out with that kind of relationship is Mr. Robert
Ivory, the President of the Unit~d Way of Michigan.
Mr.
Ivory, of course, is representing and serving through his
organization, serving community organizations. The nonprofit
sector, in its attempt to secure support and funding in
dealing in that process very closely with the business
community or the for-profit sector. Mr. Ivory, how would you
assess the current relationship between the business community
and the nonprofit sector? Is it a good relationship? Is it
a bad relationship?
.~ ---

Ivory:

-Is this in the
( -a ch
e to
ad OS_Pb
t.
usi
ationshi o
nited
ways, a very
g1ft and benefit in terms of
philanthropy. In a sense, when you talk about both workplace
solicitation and payroll deduction, when you put those 2
things together, that yields, usually, people talk about that
being a 9 to 10 times yield over asking someone for an
individual gift at any given moment in time. So the notion of
having access to the workplace and to employees for
solicitation and coupling that with payroll deduction has been
a very strong element of the United Way system.
It also is
incumbent upon United Way, in order to encourage that
relationship and to maintain that, is to take a lo9k at the
trust that United Ways bring to the business community and to
the community at large. In terms of the package of services
that it brings to the workplace, and that has ... therein is a
major controversy today within the United Way system, even
outside of the most recent news events about the national
pf"esident, there has been a major controversy within the
United Way system in the last 2 or 3 years around the whole
notion of choice and opening up the number of agencies that
are brought into the United Way system, into the workplace.
And that companies, and particularly again in the public
sector, have asked that the number of agencies, the number of
~harities represented, for instance, in an organization like
United Way, in fact, not be limited to a few select
organizations but, in fact, be opened to a much broader base
of charitable organizations.
The phenomenon i s in this
country as someone alluded to earlier that, in fact, we've had
just an explosion of nonprofits in this country since the
'60's. And there are more and more agencies who are looking
to the workplace, for instance, as the method of increasing
33

�their funding. And so the pressure on United Ways today is,
"What type of package do you take to the workplace to have
continued credibility with the business community that you're
offering a product that, in fact, is not limited to a f~w
select agencies but, in fact, brings in a package of s~rvices
that meet the broadest ray of co~unity good.
Its
interesting, in my view, one of the characteristics that
we ... that make us somewhat invisible that we need to, in fact,
market is one of the hallmark characteristics of the nonprofit
sector is, in fact, the volunteer force. And I've always been
impressed to hear George Romney talk about that volunte~r
commitment and the ownership, whether we talk about it as the
participatory principle of people beco~ing involved in our
community issues remains a major issue for United Ways to
continue working with the business community for that type of
leadership and commitment to some of the community issues,
So, in short, one of the things that's happening to us within
the United Way system is to continue to look at that
-relationship that we have with the business community in terma
of presenting a package of services, a benefit that, in fact,
benefits a much broader community base than a few select
organizations.
Blews:

Mr. Cantrell, you ... you represent volunteer agencies.
Mr.
Ivory has talked about the important role of volunteerism.
How does that relationship between the 3 sectors affect the
volunteer activity in this society?

Cantrell:

It affects it in a very positive way. One of the things I
would like to address before answering your question is the
whole point of where human services, private sector, came from
-- this whole idea of human services. It started with people
before we had any programs, any professionals, we had
volunteers who saw a problem and went out and tried to do
something to cure or aid in that particular situation. One of
the things I see that that whole pioneer spirit is somewhat
dying.
And its dying under the auspices of existing
organizations, often times, in that the volunteer sees a
p_roblem and tries to bring their problem forward. There seems
to be now territories among agencies and if its working with
children, then you're touching upon some child serving
agencies.
If its dealing with the homeless, some existing
organizations see it. Whether or not they are behind that
particular attempt to start an organization or to carry some
-special type of service through has a profound impact on
whether or not that program will ever get off the ground. And
I see that dying in some of the communities I'm working with.
As people bring forth programs, they are actually being
smothered under the weight of existing programs who are goin
to be ... see them as contenders for dollars. -· ··-··--

'r·

et in

34

· we- ~'ll

�I think in terms of the overall relationship from a corporate
standpoint, we hear often times corporations talking about
being a good corporate neighbor.
But often times when
confronted with, "What exactly do you mean by that and what
exactly ... what type of activities will you involve yourself in
to ... to prove that?" Often times, you' 11 get a .•. not the type
of answer you may be looking for. In terms of government, not
to be a complainer or anything but they tend to kill
creativity.
One of the things that I see that is hurtinq
nonprofits right now is the fact that creativity is being
smothered under the weight of paperwork, under the weight of
restrictio
d that type of thing~ . A,pd I get a lot Slf
-~Q&amp;P ¥ichis•a WRi6L~iey ~RQ a~~~duating

35

�\ Reactions to that.

Jan?

J

Gallagher:

/ I'd like to talk for a minute about some national and state
trends that, I think, are going to affect the development of
/ government/business/nonprofit partnerships over the next 10
i years. Its not, I think, going to be news to anybody in this
room, but I think it might be helpful to remind us all, The
President's budget proposal, factored out over the next 5
years, is projecting declines in federal spending for
education
and
training,
for
social
services,
for
transportation, for community and regional development. The
only thing that's projected to grow in t~e. President's budget
is medical care, federal spending for medical care. The most
recent, valid data on what's happening at the state level
comes from a mid-December survey by the National Con-f erence of
State Legislatures. At that point, 30 states were receiving
less revenue than they needed to balance their budget. More
~han
half the states were reporting expenditure~ for
entitlement programs or education or both at a higher rate
than budgeted.
There were very few state reserves left
because most of the states had spent them in 1991. There is
an increased demand for social services, and a lot of states
are cutting aid to local government as one way of balancing
their budgets. Its a terrible picture. But it also is going
to force substantial changes in how we deliver services, and
its going to force changes in the partnerships. There's not
going to be federal money.
There's not going to be state
money. It looks like there's not going to be local money in
the short run. Someone is going to have to pick up the slack,
and only nonprofit organizations are left. And that's going
to, I think, force nonprofits to do exactly the things that
Mr . Cantrell, I think, if I got the name from this ... that's
right ... was just talking about and that is find new approaches
to deliveries of services, to decategorize existing programs,
to look at innovative, creative, community-based solutions to
problems.

Slews:

Councilman Benavides, from a local government standpoint,
wl)at' s your reaction? Are you seeing the same trend occurring
there? And how do you see the partnership shaping up?

Benavides:

Well, first of all I think that we have a tremendous job in
trying to educate government as to what our actually nonprofit
organizations are.
I see the ... there is various types of
nonprofit.
In terms of services, those that provide the
traditional services that are commonly known to everyone, and
then there is the others that are non-traditional where we
take the people as we are.
The problems, I think, that we
have sometimes when we try to get grants and things of that
kind, the first word that comes up is "duplication." You're
duplicating with so-and-so.
You're duplicating with this
other person. And what ... what they need to know, they need to
36

�I

d

I

\3
I

•I

~

1',

.•' "

I
I

J

/\

get educated as to exactly what it is that that agency does
and why. And so that ... it seems to me like this type of forum
has a tremendous job, along with us, to try to educate that
~n~~lar~~tor •.J I just wanted to say a little bit about
' the United Way politics in terms of opening it up to everyone,
I've been an agency director for 22 years in Lansing and I
have seen many people come and go. And I know that at one
time we had like maybe no more than 10 or 15 agencies. Today
we got like 100.
That's fine.
The more, the merri~r.
I
think competition is good. I used to be a grqcery clerk and
they used to tell me that the best thing to do is to have
someone across the street that would give you competition.
But, you know, one of the things that the designations, I
don't know that he mentioned it, the agency designation where
you designate who do you want that particular donation to go
to. I have been quite concerned about that. I got my numbers
from the local United Way and they were increased a little bit
from the last time. But I think, you know, that deep in the
living rooms or bedrooms or wherever these people are making
those decisions, there seem to be a tendency, if they don't
know anything about your agency, they don't know anything
about what you do, or they ... they seem to designate that and
I can see a lot of these designations going to a block type ot
agencies in this community. And I think that if, in fact,
we're gonna look at all of those as agency designations should
be one. Let me say that government, I think, that its always
has a tendency, and being an elected official for 10 years in
the City of Lansing, I'm an advocate of human services. I
work for one and I truly believe that this is where we gotta
go. But I think, you know, we have the tendency to leave the
human services, to leave our drugs and crime and health
services to the United Way, to the foundations, to "let George
do it" type of attitude. I have always advocated that we need
to be responsible, that the city government, county
government, and state government needs to be responsible and
we need to set aside, just like we set aside for everything
else, we need to set aside dollars that are gonna go to
nonprofit organizations that are providing the services to
t~is community.
I have to believe that if we can educate ·~
and we can get 'em jobs and we can get 'em the help they need,
the whole economic and social quality of life in our community
will change.

Blews;

Dr. Mawby.

Mawby;

Well, I find it useful from time to time to remind myself of
sort of a fundamental interrelationship or interdependence of
these three sectors. That, in fact, the governmental and the
nonprofit sectors are fully dependent for their resources upon
the vitality, the success if you please, of the other sector And its only as business is successful that
- business.
government can generate its resources. Its only as business

37

�I

I

/

is successful that employees then have the where-with-all -85 per cent or so of giving is by individuals. Its not by
corporations and its not by foundations, its by individuals.
And so the vitality, the success of all of society depends
upon that generating force. I was ... And @O public policy then
in effect decides how those resources are going to be
mobilized to serve the public good.
We tax to do certain
things. And in those decisions, we can provide incentives or
disincentives for voluntary giving. And so as an individual
then, part of my contribution to society at large is through
the taxe~ I; a and ar _qf ..it I-h;;'Qu h th~ ~ha;it;y, _t ~yl:ng
was ntr1gue e
1er ~
~
a
he· wcf ~ co
it;; " c
!JP~ ema ks een
~~~~o~u~t~t~h~e~~~~~~~~~~~~~~
h
mmu
,_~ cause 1
seems o m tor
1ng responsibility to higher and higher
to Lansing and then to Washington, saying th~t the
government or the state government ought to do these
things.
I think society in this period now is becoming
somewhat disenchanted. We've poured massive resources into
governmental efforts and I think there'~,; been some degree of
frustration and dissatisfaction with the consequences. And
increasingly I hear Washington saying about, "That's the
state's responsibility," and Lansing sAying, ''That's really 1
you
know,
the
county,
the
city,
the
comm~nity's
responsibility. "
Now there's going to be a very awkward
transition here in public policy of reallocating the r~sourc~s
to do the job.
But if that's the direction th~t American
society is really moving, then I subscribe flllly to that
because I think at the community level we're able to respond
most effectively to community needs.
Then we've got on
awkward period of transition wher~ responsibility is being
shifted, the resources have not yet been reallocated, but l
think it repreoents, again, that interrelationship of these ~
components of the larger picture.
Blewsa
ijoffecker:

Mr, Hoffecker.

L think that's an excellent point . . The nonprofit sector can
do something that government and business can't do and that's,
in my opinion, react quickly to changing social needs. One of
my frustrations in government with one of the other hats that
I wear in the office is that we're always reacting to
something after the problem and the harm has occurred in
.- .•• that's in my efforts in the Consumer Protection a~ea, Very
seldom are we fortunate enough to get people with enough
knowledge so they avoid the problem.
The problem happens.
They come to government. Nonprofits are ... can have the chance
to be proactive. Look ahead. Sense what's going on and th~n
try to deal with it.
Government and business can try to
facilitate that by allowing access to the workplace and
payroll deduction to fund programs, to guard against fraud in
38

�and

making

information

u

'.

~

Blewsa

Mru • Up john, you re both o. business pereon, a buu in~s s leader 1
and a community leader. What do you think apout this?

Upjohn:

Well, I support what you say very strongly becauee l think
_that the nonprofit sector is the only game in town that can
take risks. We need new kinds of solutions for some of these
problems. We need more collaborative efforts where agencie~
come together. Each of them may be doing what they do bes~,
and working together to bring social energy to the problQms
that beset us. And for government its too ponderous and for
the business community it is really not their function. aut
that s where our power and our ability to set the agenda
comes, I feel,

1

1

Blews:

We then do go to the question of who pays. And earlier in the
discussion there was a reference made to the fact that the
primary -- the first responsibility of the business commun!ty
is to its employees and to their benefits and compensation.
And then, of course, there's the issue of shareholders il\
large corporations. Mr. Roehrig, you represent a part of the
labor community. From your perspective, how should businees
balance its obligation to its employees and does it have an
obligation to the broa4er community through the nonprofit
sector in the use of its resources?

Roehrig:

39

�Blews:

Reactions to that from the nonprofit sector.

Anderson:

want to make a quick response, because I think it p~obably
one question that all of us ought to think about.
Knowing our options when you talk about that in the United
Way, for example, isn't really just a donor convenience.
Because if you feel strongly enough about the Detroit Urban
League or the Urban League, and we've had discussions
nationally, you could write A check directly to me and it will
be tax deductible and I don't need a third party to field th4~
money to me. So if you're talking about donor options, yQu
may really be talking about donor conveniences and I think
h~'s right, that you really just open up a Pandora's box and
have people inundated, because a lot Qt us get matl all the
time directly from people soliciting funds and then I see the
United Way, for example, and others who put out money as
people who really have taken some tilue to study what the
issues are and try to prioritize funding those needs in a
community, and not just letting it run all over the place. So
I would think that somehow or another, if you have all of ~
sudden 300 entities seeking money in this corporation, yo~
really are talking about donor convenience" a~ opposed to
donor options.
I

rai~es

Mr~ .

Miller.
40

Mr.

And~r~on?

�/

J

I'd like to build on some things that everybody na~ said he~e
because I think when we're talking about donor options or
donor conveniences, we're talking ... we're really talking about
a problem that I think we have across the board in terms of
looking at what Mrs. Up john eaid about collaboration, what Jan
said about creativity, what Mr. Mawpy soid about community, I
think we've got to look at coopera.tion, we've got to look at
communication, we've got to look at coordination, and they
can't be just nice little concepts that we sit here and talk
about on the table. I mean, we've got to go out and actively
pursue those relations and develop tha~ . communication eo that
there isn't the inundation with donations, that there isn't
the duplication of services that someone··mentioned •.. mentioned
here. I think that we've got to move.,.move forward because
in a time of limited resources, whether its limited resources
from the public sector or limited resources from the private
sector, we're talking about money.
But there's also
_information, there are also people. And I think we have to
begin to work together and I take this .•. ! give you an example
in the public sector in what I do in the Ombudsman's Office.
I came in at the beginning of last yea~, and I won't give you
the whole long story. But in essence, what happened in our
office, we had to reprioritize, we had to refocus, we had to
down-size, and as a result of what we have done, we found a
new direction, a new purpose and a better service. . And I
think this is what this time of limited resources is all about
in terms of both government, in terms of the nonprofits and in
terms of the business community. And alone we can't do it,
but together we have to come and do it and get it done. And
I think we're being forced to do it, because its the only way
we have to go now. The money's not there.
Slews:
Epolito:

Mr. Epolito.
Yeah, just very briefly, I think we've talked about a
Qg!;ne;_ship- that- ~0:~ nQ.t~~~t. _.If~~~~~~~=;=~~
{ l!~Ai~t&amp;' a:;tra.gment
A?ue·aaei:n~;o. ; ; : ..£J_§~ ~ ~
tsfef§ !A::iiEtlaieth-hr'fnist1iil' . \it~I think that the one
~fiing that a partnership can do, and certainly the United Way
has proven this, is to set some priorities. On my desk in my
office sits about, I don't know, $15,000 or $20,000 worth of
requests for funding. We set up a Corporate Giving Committee
and as to where we're going to allocate our resources, At the
same time, our employees are inundated with requests and I
-have everything from a $500 tuxedo affair evening for the
Humane Society to save dogs and cats, and I'm not criticizing
that because its a major priority for some people, but we have
people starving. We have homeles~ in the streets. We, as a
corporation, we, as individuals, have got to set some
priorities as to what's important to us in this society. So
I think this whole issue ot what can the partnership do, if, ~
partnership is created, ~think the .partnership could give
41

~

1•
.~

·i

�some leadership to setting some priorities and really get to
some of the bottom line issues and give some of the focus that
we're lacking.

Yamanishi:

Blews:

Dr. Clark,
discussion.

Clark:

And I want to build on what was just said, because certainly
for the health care industry, and hospitals in particular, in ·
Michigan and the United States, this involvement between a
not-for-profit hospital and the governmental agencies that
both regulate and increasingly reimburse has been an uneasy
situation with tensions on both sides; and it certainly is not
getting any better.
If you put a little historical
perspective on it, the relationship was between hospitals and

you

bring

a

health

ca+e

perspective

42

--·

~==-=-

to

the

�government, with business a distance away. That is changing
as well so that the triumvirate, as we are talking about !t
here, is not becoming increasingly interrelated. And from the
hospitals' perspective, we function as nonprofit. At the same
time the government regulation is so extreme that the very
flexibility that we've all been talking about in meeting the
needs of the local community is increaeingly removed from the
hospitals to be able to do that. At the same time, with the
shrinking reimbursement, both from the public sector and from ' '
business, you have an increased constraint on what the
abilities are for any individual institution to meet those I.
needs -- even at the best of times. ~'d like to be able to
take the suggestion that was made by Judy Miller that this
Forum, and by Aaron, that this was exactly the tim~ at which
we should be most inventive.
But I don't think I have a
tremendous amount of sense that that is going to occur in 1
health care as health care has come to be in the United States
...today.
If you consider, in Michigan, that besides being
nonprofit with all the things that that means, that in
addition to that there is over $400 million of care in charity
care that's given every year -- over $1 million a day -- and
that doesn't even count what's not being reimbursed by the
mandated federal and state programs. You are talking about a
situation where the squeeze is coming from both sides, and the
ability to respond to that in inventive and new ways is l
shrinking as well because of governmental constraints and ·
regulations.
JHewe:

Ms. Work.

Work:

I'd just like to say that it appears as though the nonprofits .
have been given the mandate to take c~re of crucial problems
that are growing and that are not getting smaller, and that it
is truly a mandate without money. Now I understand, and we •
have been hearing at New Detroit, that we must poordinate, we
must have collaborative efforts.
I agree with that and I
think the nonprofits have to coordinate and collaporate to the
best of their ability.
Then we hear no duplication of
services. Perhaps there should be some duplication in order
to cover all the problems, and I don't mean duplication that
is a bad thing, but how much do we come together and
collaborate and coordinate to the extent that we not
fulfilling our mandate and handling all of those problems out
there? Some duplication might be a good thing in order to
·handle all of. p;p;&gt;blems.
It is a v
toygh.._ ma_!!~ate an

43

�,-

-

'- I
services and human needs against the arts. We're going to be
pitting more things against each other, I think, unless we
take a really good look at policy issues.
Slews:

Mr. Bianco.

Bianco:

Before I mentioned that I did not think that during the Reagan
years or now even during the Bush years the federal government
is doing what it can to encourage activity in the. nonprofit
sector. When we heard the rhetoric in the early '80's that
the private sector must do more, individuals must do more, we
were reminded by Russ that the giving is largely by
_individuals. But yet during the Reagan Administration and the
ta~ reform as all of us in this room know, the whole itemized
deduction was taken away essentially for about 75 per cent of
tax filers. As far as I know, about 25 per cent of the people
itemize, somebody might back me up on that number. And so we
took the federal incentive to give. We took the policy that
said, "Its
'1--~t~~~~...::=~t'""~~~~~~~~~~'¥-:~~~~~~
ou t

.

~

Point ITUrnher~ on
1s 1s,
and if there ~s going to pe

44
\

�'90's, then we need some more
Why shouldn't that deduction
that is truly

Blews:
Bandstra:

-Representative Bandstra.
Yeah, I think you're right, that we do have a hodge podge
approach at the state level. I'm sure you're aware that we do
have a limited tax credit in place for community foundations
and p~rt of the bill that reinvigorated that tax credit
specified that we want to do a study of the way other states
structure their tax incentives for cha
ize the problem here in Lansin .-1-~~~~~~~~~~~

~~e-~~~~~~~r1Ar~~e=~~~nna~fa~~~:th-in

Kosteva:

I go back to Joe's point that you raised much, much earlier
and that is answering the question of who delivers the results
the best.
If we would choose, if government makes the
conscious decision to, let's say, broaden the deductibility of
certain contributions, clearly that tax expenditure will cost
the state government, and we will be making the conscious
d~cision that Jan has talked about in terms of the e~ended
pressure that state government is facing.
Lois mentioned
about the fact that we're pitting social services versus the
arts at the present time.
So if we make the conscious
decision to expand the deductions and the expenditures that
that can go for that will reduce the state dollars th~t will,
therefore, go to social services so we, therefore, will be
making the conscious decision that government has decided that
somebody else, the nonprofit sector, will deliver these
results better than the centralized state or federal
government will.
So I'm not certain if our society ... our
collective society of whom Rick and I and others are
reflective of that as their representatives .•• have made that
decision. I think that ... ! think that they're pushing us in

45

�Blews;

Senator Sederburg, as a former legislator, what counsel would
you offer to this ... this gauntlet that has been laid down for
the current Legislature?
·

Sederburg:

Well, I think we're in the midst of a rewriting of the social
contract in the state of Michigan. Michigan has a history and
a tradition similar to Wisconsin and Minnesota of a public
_that wanted public
services valued,
a
good public
infrastructure, liked high quality educational institutions,
liked to fund the arts, etc. But I think we may be in the
midst of a change of attitude and we may be moving more to an
Indiana - Ohio type of environment in which the public says
we're going to rely on the individual to make decisions and to
succeed individually and we're not going to look to government
to provide services, and I think that the public may be moving
away from the leadership of the state. And the people around
the panel and all of us probably on the bottom line feel that
the government really has a role to play in providing
leadership and providing some high level governmental services
that we can be proud of. Joe's point in Europe, you go to
Europe and people are proud of the infrastructure of the
public buildings and the public transportation systems and the
public image is there.
I ran into a friend of mine from
Minneapolis the other day and we were talking about high taxes
in Minnesota, and he said, "Yeah, we have high taxes in
Minnesota but we're proud of the park system and the road
system and the infrastructure that we have. "
I'm afraid
that's changing in Michigan and the message that Jim Kosteva
a~d Rick Bandstra and others are getting from their public is
that they're facing economic pressures and we don't care about
public services as we're having such a difficult time making
it in our own family situation. And that's very frustrating
and I chuckle and mention a big pitch for tax credits, yqu
know, a lot of people believe these are tax expenditures.
~hat it is really just another way of the state giving direct
aid to the institutions, and its just going to drive the state
budget further into debt and accelerate this social rewriting
of the social contract. So I'm afraid that its going to be a
tough time ahead until the public really resolves in their own
minds the level of public services tnat they really want 9ut
of the state government. J think the federal level has done
a tremendous disservice to us in Michj..gan in that the publJ..o
46

�has gotten used to having their cake and eating it, too, and ·
just it on the credit card for the national debt. And so in
the same paper you can read about Congress passing a tax
reduction bill and at the same time talking about passing
mandatory health care insurance for everybody and it'll just
drive the ~ational deficit further and higher and . bighe~.
Well, we don't have that liberty at the state level, -but the
public thinks we do. So the public ia going to write to J~
Kosteva and say, "Gee, we w~nt money . for ·the arts an&lt;1 we want
a tax cut next week, too, while you're at it." And they'll~
totally inconsistent to them because that's exactly what their
Congressmen are telling them that they f.re .going to deliver in
the next election. They'r~ going to give them national health
care insurance and they're going to cut their tax~s. So why
can't we at the state level give money for the arts and c~t
our taxes? Sounds reasonable to me and I'm going to write a
letter to the legislators.
Blews:

We'll provide the legislators' addresses to you.

Sederburg:

Very good.

Blews:

Shifting to a national perspective, Ms. Gallagher.

Gallagher:

Well, first let me assure you that Michigan is not alone in
having a confused approach to incentives. for charitable
g~v~ng.
I commend to all of you Virginia's sales tax
exemption system which is one of the most complicated I have
ever seen. But I'm disturbed by what I'm seeing around the
country as I monitor tax challenges to nonprofits. And what
I'm seeing goes back to what we were discussing in the first
part of the session which is a fundamental lack of identity
within the nonprofit sector.

Blews:

And now we're talking about tax challenges not tax incentives,
an importan~ prid9e in the conversation here.
~ ...:::;: •:::fl •

Gallagher:

~ ~~ell1

I've waited for a long time to do that.

-

.,

-

-

-

..

. - -. _

----

I

9 1Je

~sr=ma-hri
i* ~ •••~~~~~~;-1£Hiti?
I mean a
tax exemption- is an incentive. It's not 'an incentive
to charitable giving but its an incentive to the charitable
organization to carry out its purposes; similarly a sales tax
exemption I would put generally within that framework.

p~operty

Blews:

Good.

Gallagher:

Two weeks ago, I'm told, the tax assessor's office tor
Lincoln, Nebraska, was out with tape measures measuring the
square footage of every day care center in every church
basement in Lincoln.
The tax assessor was quoted in the
newspaper as saying, "Child care is not charit~le unless its
free.
Further, child care is not a religious purpose, "
Therefore, he apparently proposes to ~equire all churches in

47

T

�Lincoln to pay a proportional share of the property tax on
that portion of the building that's oevoted to child care.
The Lincoln newspaper, I'm further tQld, wrote an editori4~
commending this fellow for his innovative ~nd creative
approach to solving Lincoln's reven\le problems.
I don't
understand this, except to ~ay that peQple apparently don't,, ..
aren't seeing the value in child care, the importance of chilq
care, the need for quality child care to preserve f~ly
structures. We haven't t~lked yet about your fourth sector,
which I see as the family. The Alabama Legislature -- House
of Delegates -- I'm told, 2 weeks ago repealed •. ,voted to
repeal all its charitable sales tax exemptions a$ part of a
restructuring, taking away what they viewed as unfair ta~
benefits.
I believe that's going to be correct_e d in the
Alabama Senate, but I'm seeing the need for state revenlle
driving, and for local revenue, driving some decisions that I
think are terribly unfortunate for the future of nonprofit
_organizations.
I'm seeing organizations forced to spend
substantial amounts of money to defend existing tax
exemptions, and I'm concerned about it. I'm also seeing on
the government/business/private partnership area a fund~ental
exclusion of service delivery agencies from some of the
dialogue that's going on. I'm told there was a conference at
Wing Spread maybe a month or 6 weeks ago, I'm pot sure, a~
which government, including the Governor's Council of State
Policy Advisors
and business leaders and foundation
executives, sat down and talked about how to restructure
delivery systems. I'm told that deliverers of social services
were notable absent from that discussion. Another group that
I work with is trying an experiment in Virginia to renegotiate
the delivery system and when they went to talk to their state
funders, they were told basically, "Go away. You do what we,
tell you. We don't want to hear what you think." I'm not
sure how to correct these identity problems. But I think that
if we don't address them pretty quickly, we're going to have
some serious problems over the next 10 years.
Blews:
Cunningham:

Do we see those same kinds of identity problems producing
s~ilar challenges in Michigan?
Father Cunningham?
Oh sure, but the not-for-profit organizations, the complete
spectrum of even to the point of antithesis •.• and I remember
when Focus Hope started, one of the things that bothered me
tremendously was people calling us an agency.
Because by
definition, an agency is something that does what other people
_tell-!hero to do. They act out of a contract to do ~om~thing.
( ...~;aieQ \Ui 1 1, aa•urs&gt;; ~deyelpp· gifweri:ft"e·s te':r=*t1fM~ Clll!t~€1
\_ 'S.atP r WQ~!'[._!!Ei; eaeJP&amp;ia•a ·- ~y a~e ~ i@ • 8 i S!.... '.!!!) That
relationship,
whi"le- -very important maybe-- to certain
objectives, is the death knell of the not-for-profit, highly
voluntary, and what I should think of as the •.. those of you
who like Lake St. Clair and Jefferson Avenue •.• all know about

48

�- I
the fish fly. He comes in '\:here and get~ under your car tires
and we crunch up several million billton of them eve~ yea+,
I always used to think, "That's a good ,idea for not-foJ;-profJrt
organizations.
They guide themselves as fi~h flies,
They
come get something done thep get out of business," And t}\en
good people like Dr. Mawby come along and say, "Hey, wait a
mipute. We'd like to help you, but how long ~re you going to
be around? we're lookin&lt;J for some · consJr~tency." Rignt, Ru~~?
And we're looking •..
Mawby;
Cunningham:

Positively.

'•

So you need some institutional stuff . .And there's a struggle
within an organization, both to be institutiopql and to be
free.
And let me tell you, that's a stiff one, That's wheJ;e
that small group of not-for-profits that are not agenciee.
And for that group now comes the responsibility t~ take this
Jb.usiness community over here and this government community on
the other side, who obviously have failed to do something or
there wouldn't be a purpose for the not-for-profit, and then
you go and say, "Its their fault, business, and its their
fault, government, that they don't know how important we are
to their destiny. "
Well that's a crock.
Its the
responsibility of the not-for-profit organization to mak~
partnerships with government and with business and to draw
them along and to make some very impQrtant assumptions. The
business community has an ethic. Now they're crooks. There
are also crooks in the not-for-profit.
But they have an
ethic, and that ethic ought to be honored and respected, but
its an ethic, a kind of fence around their business practice~
out of which they hope to become really rich apd take care of
themselves. And that's acknowledged, There's nothing wrong
with that. And government, Eugene McCarthy made a good case
and its government's business is to maintain the morays, not
to establish morality, not to grab ideals. And after Thomas
Jefferson and all that stuff God laid to rest, the purpose of
government was to maintain the institution. The purpose of
the not-for-profit organization is to reach for the stars , To ·
~each for the moral possible in our time and then to integra~e
that with the morays lifting them up inch by inch and with the
business community making them a little better, too, for the
common good.
Now comes this not-for-profit organization,
wi.mping and whining, "By God, this is hard work. " Well of
course it is. That's what you chose to set that at the helm.
-And you stand up to yourself and if you're the captain of the
ship, you shouldn't receive any pay.
"Why shouldn ' t you
receive any pay as the captain? "
(This will make me very
popular.) "Why should not the captain of the ship receive any
pay?" Because he is inviting in all these volunteers. Come
follow me. And if he gets 7 5 grand a year, how can he ask all
these volunteers to come in and do for nothing what he's
managing for a pretty handsome salary. We got a lot of stuff
49

�I

here we've got to look at. And, finally, on a very positive
side, because I think we're in for some real great surprises
and while, Jane, you make some good projections there, I'll
bet you didn't even project what was going to happen in Europe
a year and a half ago either see.
So that's nice. General
Motors has 5-year plans. Now, let's talk about projections,
You know we have an aging population in this country that's
pretty healthy, pretty healthy.
And instead of those poor
folks sitting down there in their condo around the sw~in9
pool discussing in Florida, or Boca Raton tg ~ap~ific, the
latest and the m~st effe~tive laxatives..:.J'w~y 1 aft&amp;. I !•~ th~

·-

·-

- -

..

-

-..

-

-

folks you've got to give back? When are we 9oing to start
telling them, you've had a nice life ~~ time to give back?
And to give back as a fine government ~epresentative.
Yo~
don't have to go out from GM and now become a con$ultant anQ
_make $500,000 a year. You've got enough to take care of you
for a while.
Come on, give back.
I had a guy come in the
other day and his wife finally said, convinced him last year,
time to give back.
I have a major doer.
He's in at 7:30
every morning,
setting the discipline for the entire
organization because he's a good guy and wants to give back,
and he figures at 65 he's got 10 years to give back. We have
a tremendously developing population in this country of people
who've been around the block a !ew . time~ho- are au~=atest
_!:r~!is ure . c~~I!5! g ~~ back L J2att;, we ' •&amp;a &amp; \i~.., !ull!!fil&amp;!&amp;a j
) ~_@s!,t!!f=a.a•e ~··sa-! . , &lt;?t a;...-athe~ a'~. Frankly, I thinx
'"weve got to get busy asnol'lproffts and forgive our government

•t

re
that's _whr
· :55£·!iZ_~;~~!E~n~
an~u~~·!-ar b~aus,e

we_'~er!S

cr~tic~sm

and I have no criticism of business.
Good Lora,
they're on their backs. But I certainly think we've got, if
there's a partnership, it has to be their respect for the
nonprofits and getting out there and standing at the helm in
the storm.

Blews:

You strike upon an issue that Or. Payton points out in his
paper that the voluntary tradition in this nation is, in fact,
a tradition and, therefore, it must be passed on. That it is
not ...

Cunningham&amp;

-... You bet! ...

Blews:

... simply enough to assume that it will exist, that it
involves, as he says, the challenge to preserve and to
practice and to understand, to study, to be faithful, to
guard, and most importantly, to teach. And let's throw that
issue open there. Are we teaching new generations that

50

�tradition, that value of volunteerism and nonprofit service?
Mrs. Upjohn.

Upjohn:

Blews:

You know, I ..• as I told you initially, I come from the
volunteer community from station wagon driving, brownie
baking, car pooling, bandage rolling, well baby clinic, yo~
name it.
And my kids were with me while I was doing that.
They knew that I spent the time that wh~le I wasn't with them
and while they were safely in school, working in the
community. Today, in so many families where its nec_essary for
both parents to work, they may do volunteer service. They may
have all kinds of board commitments and they may be involved,
but their children don't know it. Their children have no idea
~hat they really are making a contribution or that, as they
grow up, they need to give back. I think we have to have more
youth United Ways.
We have to have more involvement for
children and young people that go beyond selling Girl Scout
cookies but where chi~Qren ~eal!y ~nd~stand w~a~ !t~~ans to
\ have !he jo¥. of givi~~ -~ liJ&amp;Yla~·-~-!lu~por_t: ~:· P~o:_~~

-

pil:=r:J

-

f our discussion now. And
this panel did not nee
,ea there. We're talking about
~.at_ado we do now for the~~ureL Where do we go from here?
How o we build on ~f -its worthy of being built on, this
tradition of the nonprofit sector, how do we create a
partnership that may or may not be a very good partnership At
this point
V§h¥ ~ffective or as lively a partnership as
it ~hqylsL.be ·t.J ~w . C1'6 ('e go fiom h~·?- fia · !~~ee thes'!.~!'?'!'!!i!JI:\ ·
\ ~t
·IA\M~~ ~-e ~!~i;;s::el!r W+r~~ . •!a~~·· ~·~J
l dY;de ~§~~~t.:\ And Dr. Sederburg, I can tell- you're
anx~ous to
ump in.

o:,-A

Sederburg:

I am because I just came from a state of the school speech
night at oyr local sahoo~~ the pitch of the
{\ , superintendent waa. the ...... white P'!per and the ending value
was a value on family and··-of community involvement. And I
1 ) just throw out as a beginning point of all this, I think that
we need to get a further discussion of values, both in the
school system and in government and in business as well.
I
think we, perhaps, have gone through a period of time when
values haven't been talked about very clearly and have been
sort of shied away from. And I think that's a strength of the
nonprofit sector and is going to be critical from the schools
to everything to have a clarity of values.
So and on our
local school districts, they set it up so the kids have to put
in community service time in middle school and in high school,
l~st

51

�I
and I think that's a neat, neat thing to do.
to the value system.

And it goes back

Mr. Cantrell.
Cantrell:

Just like what Betty had said here about taking the kids
around and letting them see first hand the value and teach
that value. One of the big concerns ·r ight now in volunteerism
is, who is passing on those particular values to the kids now
that the parents are not there to do them?
Are day care
centers, in fact, passing those on? Are the school systems,
in fact, passing it on? One of the big problems I see today,
one of the hopes I see for the future, is the fact that the
schools are getting on board and they are starting to make
community service a part of the school experience, but not the
educational experience. And that's ... that's the problem that
is out there right now. I know, in our community, kids are
_going out and they're doing things and they're not able to
come back and process what has happened.
In their little
mind, they're out there doing something and they are things
happening that they don't quite understand and if you don't
process that, it doesn't become a value. Experience in itself
is not a value. The value has to be passed on. I call upon
the school system to start to teach that value, but also to
take part in that educational process, that as an individual,
and adult individual or a child in this community, not only do
you take from it, you give back to it. And what is the value
of giving that back to? The whole idea of social insurance
that started volunteer ism in this country, the whole bond
raising type of mentality is saying that, "There but by the
grace of God go I." And, "I'm one paycheck away from being
homeless." And the social insurance approach to that is to
say, "I will go out and help those people because one day 1
when its my turn to receive help, someone will be there for
me. " And until we start to instill that value .•. Right now
we're turning kids off. Okay? These kids are going out and
getting these experiences and not being processed. And not
only that but the agencies 1 sometimes, are having them do
t]lings that a 12-year-old can't do much let's have them
vacuum. I'm sorry but there's not a lot of value that can be
gotten out of that unless you explain to that kid what the
overall agency purpose is and how vacuuming may be helping
them meet that goal in some way. But that experience has to
be related to the kids, and right now we're having them to do
~ommunity service and they're not learning from it and a lot
of them are being turned off and I don't want it to be like
the first speech I ever did when I got into this field was to
a bunch of vets, and I said to them, "Volunteer ism."
Uhhhhhhhhh.
Every time I said "Volunteerism".
Urrrrrrrr.
And after it was over, I went up to the guy and I said, "God,
you know, what did I do wrong?" He said, "These are all World
War II vets. They learned the concept of volunteerism as, "I

52

�I

I
need 3 volunteers -- you, you and you -- and they didn't come
back." Okay? So I learned right away that in certain circles
you use other words than volunteerism. Are we doing the same
thing with our kids now? Is the question. Are we saying to
them when they hear the word volunteerism out of adults
because of their experience in 9th grade or Kindergarten, are
they going to say, "Oh, no.
Mr. Cantrell, don't come here
with that." And that's what we need to take a look at. We
need to process it. We need to start to institutionalize it,
We need to pass on that value that now both working parents
cannot pass on. And we need to start it in Kindergarten and
take it all the way through the educational experience.

Blews:

Our audience ...

Ce1ntrell:

Please ...

Slews:

... is anxious to jump in with us.

Bolhouse:

I
I

Yes, please. Thank you. Susan Bolhouse. I'm on the Board of
Education of Waverly Community Schools and also the aoard of
Directors of the ~ichigan Association of $ChQol ~Qgr s w
is represented in ou
·
.
,
wa
~ t e bit
sorry
a e ucati~o-fZ", wa~rep;elen ed 011.
·s
p
1.
d I w&amp;l very _r,l:'ea d~haMis G~Yagher
'ted
m,
io
ch A.d~ n ai}P' edu ati .
Tll
point, up until '"looil_...,
ut
ag
I
as '9ettin
~te
frustrated because this
~~•nt
chi
and education seemed to have been
o r
ed.
e ~eve t a al~r-y~uf !ij n 1.es, a
o
organ1.zat~o s do represent children, that you do have them,
you do work with them.
Their good is at hand and in your
hearts. But you send them to us, the schools, school boards
and associations, to take care of. Jim Epolito is inherent in
~
at the moment,
But he said priorities.
In
continuing this discussion, I would like you to remember thot
/ . children need to be a priority, that when it comes to sett1ng
money aside, robbing Peter to pay Paul, when you do tQke money
away from one agency, somehow please try to ~eep in ~nd that
tpe children, you've heard it before but it has never been
truer than today with budget cuts, children are our futu~e.
And, yes, ~chools do need to teach volunteerism at home as
part of the curriculum whether its a graduation requirement or
not.
As a School Board member, I feel that I pretty much
cover all 3 eectors as Or. Payton pointed out.
But as a
-fourth sector, yes, indeed, its family, but as ~ fourtn
sector, you can also take people such as myself who do work
through an elective process -- I'm elected, I'm government,
Business, in essence, running a school district is busines~.
And then, as a volunteer, because $20 a month for 30 hours a
week of work doesn't really cut it. I mean, baby sitters, no
thank you.
But please I'~ here to urge you, in finali~ing
this discussion, please do not take your eyes off the

G
J

53

\

~
I

�I

I
children.
If you can't continue in building your Nonprofit
Forum to include children in getting involvement and interest
in business partnerships, please do. And as a representative
of the Michigan Association of School Boards, I know that we
have many, many school board members out there that we
represent who would love to walk hand in hand with you on the
local level and on the state level to bring these children, to
educate them, to give them the jobs that they need and that
you want to give them. Let us help you. Thank you.

Blews:

d be assured the Summit here is a representatio
o
var..L
leadership and~f course,. . one deal~wit th
reality of
edulin~ , ...... b
sured that t
Fo
n its
/ repr senta on oe~ave ery
ery thoro
rep
· ~tation of
the -12 ducat nal c
uni , he c
nit
lege ~1 of
edu at· n ap.d the
· gher e ucat~ n lev , bot "'PUI&gt;llc and
pri ~·~d o
oint is ertainly
1 taken and we would
want t
offer the assurance that
e children are not being
for
ten and are recognized as ~e of tbe prio · ·
with the nonprofit sector. or:- Mawby?- - - -·

_ ___ _
_.

Mawby:

-

--

- - -·

-

I think, as we think of the future, Father Bill spoke
• eloquently to the potential of the seniors in society giving
1 back.
I think that's something we need to recognize and
capitalize on and some exciting things are happening of that
sort. The other end of the age spectrum is what we're talking
1 about here and I think that's equally important. Part of its
1 putting it into the academic world, for example, usually talks
about 2 sectors.
They talk about the for-profit business
sector and they talk about the public, tax supported sector,
and the rest is invisible.
So to consciously put in to the
sequence from pre-K-12 all the way through in Social Studies,
in History, in Economics, and all aspects of life, thi§ sector
would be useful.
But I think one of the most e~citing
opportunities, you know one of the realities of the
contemporary society is that we have prolonged adolescence for
most young people into their mid-20's.
They have far more
capacity and more motivation to be contributing, we as I guess
do-gooders, say well, they're the beneficiaries of so many
things.
We give them so few opportunities to assume
responsibility and to exercise responsibility. And one of the
great ways ... I'm not sure I'd like compulsory volunteerism ..•
I

I

????:

... That's an oxymoron .•.

Mawby:

... really, but required for graduation, I'm not sure about
that one. But I am sure that young people, and it goes before
the teenage years, are anxious to contribute, not always to be
the beneficiaries; and that requires real creativity. One of
the greatest challenges is to the ~chool system itself,
because usually they don't let the students participate and
contribute. They're the recipients and the beneficiaries. So

54

�/

it requires creativity and the life in the community. Schools
are an important part of that. But more hours are spent out
of school than in school in the life of every kid, so that
requires churches and all of the nonprofits, the community at
large, to be more creative in involving young people.
And we haven't said a great deal about the churches today.
Sister Monica, would you like to help us with that very
important part of the nonprofit sector?
Kostielney:

Well, I think there re q-~ew things that have been mentioned
tha are fairl p f u9d f we recogni e the whole order of
wha is goi
on n ?cie y. I thi
th dramatic economic
cha es tha are c u ring I think t!J.e shi t ·
~digmp for
how we re ch c nsJri'~us
nd I think the
ack of\ a moral
cons nsus n so , 'i et;v"li . . . hose are 1a11 fac rs that B e upon
hur 's ers ~1i ve;, wha I belli eve is la king · ~oc iety
that
thi
ches an eally fprovide
lo us f r a d that
is r~flec io
efore l cti n. / I thin the
re s
many
chang s th
ire occu' rin tl}at we ne d to
dersta d and
think' thro 9fand ques ion a~d push u a lit e bit n the
edge. And
at's neede for hat is a rofou
eflect on on
the r alit s that are pari ~ on our ives nd
thi
that
· leads us, hen, to ques · o i~ new w s wh
is appen
these 3 s ctors. I th ri~ ha\ driv s .•. w at dries e
the •. e
of the secto s) for~xam e, i governm nt
other
~ ors are kind
f ~n
by th ir own re our
by~
an we do?
I
an, go ernment asked the
e tion,
"What c
we do with o •.• with these
I think
asks the same hing in ~erm
I
they're driveh___ y technology, they're
'
driven bX their own
1

tT

55
'

'

�I
I

Blews:

••

W~~

the point of starting now to move toward the
conclus ·
and I know that there are at least a couple
_of-pe1)ple who have very compelling remarks that they're
anxious to get onto the record. I think there was somebody
from the audience who'd like to comment.
~oard

Rosenbaum:

Yes.
My name is Rene Rosenbaum.
I'm a Research Associate
with the Julian Samora Research Institute at Michigan State
University. And I have a question that I hope will touch on
the relationship between cooperation between government,
business and the nonprofit sector, and also I think will touch
on the issue of public policy. The question is this: I've
seen the role of nonprofit organizations as promoters of
volunteerism and democracy.
In direct contradiction, we've
seen the role of nonprofit organizations, for the most part,
as helping maintain national ... a national safety net.
It
seems to me that seeing nonprofit organizations as promoters
of volunteer ism and coopera ... and democracy implies less
government and less business assistance and funding, while
seeing nonprofit organizations as maintaining a national
safety net requires more government and more business funding.
If people from the panel could respond to that please.

Blews:

Quite a question.

Cantrell:

I don't know if this is the response. Former Governor George
Romney has said in many instances that he has every confidence
in the American people because there are more people than
problems, and all we have to do is empower the people to deal
with the problems. I think that when you take a look at human
service agencies, you are looking at both of those aspects and
we can't ... we can't escape those.
In one sense, and we are
all aware in human services of the ebb and flow of monies,
okay, and what happens and you see this typical process time
and time again.
When there's a lot of money there, the
professionals rush in.
We fill ourselves and all of our
offices with professionals and then the money ru~hes out and

Mr. Cantrell?

56

~

I

�we run out and get volunteers from schools like people like
yourself, as student interns, and they fill those s~e
offices.
One of the things that happens, though, i&amp; •.. the
people, the volunteer managers, will go about filling those
offices. The administrators will run out and start screaming
and hollering about the money that is not there any more. 1
think one of the things we're going to always need that,
We're going to always need ~overnment and business monies and
support to maintain that safety net, but at the same time
we're maintaining a second safety net and that is that whole
pioneer spirit.
I know when I was in ... in •... in •• , grade
school I said things like, "That good old American know-how,
Yankee ingenuity."
I never knew what it meant, but I was
American and wow, I got this somehow and it gave me ~onfidence
to go out and do things because, wow, somehow because I
happened to be born here, I have something special. Okay? I
don't see that specialness there any more. Okay? In terms of
_the volunteers.
In terms of administrators, I see them
looking only in one direction, that is towards funding, and so
goes the funding, so goes our operations and our agencies.
And what we need to have is we need to have a marriage of
those two and both of have to be seen as equally ••• equal
partners in that whole relationship. Volunteers, except for
the Board of Directors who are treated quite well with dinners
and everything else, but your direct service ~~u~t~~~~~~
treated like tbird-cl
· ·
times.
.
n 'ferms of that we'l neve
cape t at, I
think that its necessary, but we're mai t ining 2 thin
here.
We're maintaining that safet~et fo people\ who eed it,
we e also ~· ntai~·
ng a volu e~r spi · t th 1lt if we every
los it in t is cou ry, eve
hing will umb e ~ ght along
with it. An we're no puttip any emphasiS'\P th,·t volunteer
spir~
at a
to the s an~6ynt that we need . o. , I go up to
Weste
and I talk to pr~~eors up there and ·~· :1e11 them, "It
is impo i~e for any ~e .fo graduate from yo r n~iversity and
not serv on a board or be
volunteer. It s · 'im~ossible fo
anyone tq~e an ~U'cator I ~ a social wor~ey or \ hospita
administiato~ ang not i~porporate volunte,1s.
An~ yet yo
don't t~ach t~~/concept fO them.t : When go RUt, they~ow ho
to manage peop~ that a~e paid, ~ ~ut they h~~e not ide how
manage7that /seco~ele~ent, and :soak at ~~e a~encies. Rig t
now 'dar every pa
pf.rson in an ' encyl theJ:"e are at lea t
50, m nimally 50, u
id people.
dYE}' we only take a lo k
at h
to manage tho ... that small per~ntage, instead of
o vastly empower and manage that other pa~ ~m~-rdo---·
know i
·- __
li-~e~~~tb~""''l~e~e~e:&lt;.::
Blews:

Mr. Yamanishi.

Yamanishi:

Nonprofit organizations began with the concept of charity.
Father Cunningham subscribes to the idea of giving without any
57

�I

Blews:

Mr. Bianco.

Bianco:

Firet of all, responding to the question from the audi$nce, it
seems to me that the safety net provided by the nonprofit
sector has its limits. It seems to me that when you begin to
talk a.b out whatever the number is these days, 35 million
without any health care insurance, and you begin to talk about
bridges collapsing and roads falling apart, its very hard for
me to really see that no matter how creative we get or how
many volunteers we get, its very hard for m~ to see issues
like that being fully, fully addressed simply within the thi~d
sector without substantial financial resources. And I'm sure
there are others around the room that can think of other
issues like that where the safety net issue, in my opinion,
cannot, in the short term -- short term in this case being
defined as the next 5 to 10 years as I see the short term ·~
be provided by the ... by the ... by the third sector. So the
i~sue then becomes, is it governmental resources or is it no
resources? Is the problem simply going to be tolerated as it
is tolerated, as you well know, in many other countries of
this world, and some who do have economic resources. And I
think that would be totally contradictory to the spirit we've
talked about here today that's embodied, we hope, in the
American conscience, of caring a whole lot about their
neighbor and not wanting to see suffering and so forth.
So ... so clearly we've got those kind of issues that I don't
think are going to be fully handled by the third sector. Now,
27 years ago, when my wife and I got married, we came back to
Michigan and we went to a church retreat the first month we
were back. And it turned out that the individual giving the
retreat is now sitting down the table there. And our lives
58

'

I

�,-

-

I

I

I

I

I

IUews:

were never the same after we got through with Father Bill
Cunningham's weekend retreat. And he'e still on my case as
you can see. But I'm not going to let him go. I think one ot
the challenges that the nonprofit also has is a credibility
challenge, and its not just what Father Bill says about all of
us working for free which may work for him -- God takes care
of him, you know -- Kroger sort of takes care of us and GQQ
helps out sometimes. But I think one of the challenges that
all of us have is the credibility of our third sector QI;
nonprofit organizations.
I' 11 n~veJ; forget when I was
considering leaving Dayton/Hudson Corporation and I talked to
several people and I said, "Gee, sho~ld - I really do this?
Does this make sense to you?"
Several people, basically
business and professional people, said, "Oh, Qed, ~oe. Don't
go out to that Detroit Institute of Arts. Don 1 t go to work in
a nonprofit organization.
You 1 re going to lose all your
management skills.
You're going to get caught in the most
_God-awful politics and nonproductive activity that you've ever
seen in your life.
Just stay away.
Don't do it." I would
assert that if you talked to most business executives, and
although Peter Drucker's certainly helping us all out a great
deal these days in his nice articles, but I suspect if you
talked to most business executives, they would assume that
people who work in nonprofit organizations may have great
spiritual qualities, may have great caring qualities, but I
suspect at least their mind set would be that most of us are
not very good managers. So I think the credibility issue for
us is how do we forcefully demonstrate financial integrity,
management strength, as third sector people, to get the
respect
of
people
like
Representative
Bandetra
and
Representative Kosteva and other people who, even in the
governmental sector, will have that question and that
accountability.
So I think we've got a lot of work to clo ,
there to demonstrate our management competence and ou~
financial capabilities and I don't mean fund raising, I mean
accountability. Never losing sight, of course, of what Father
Cunningham and Sister Monica and others have said, that we, in
the process of doing that have a balance in our organizations
s9 we never lose sight of the caring mission and the eoaring~
to the stars, as Father Bill said.
But as we soar to the
stars, we should have our audit in our pocket and we shoul~V · -~
have a good, tight organization.
~~JYJ
With that,
discussion.

Dr. Payton, you helped t~~~s
Can you help us to come to~conclusion~

whole

Well, I'm a ... any of you ever heard ot--Meye 's break
personality type indicators, I'm an ENPP and I don't like to
come to closure on these things.
I don't believe in closure
on open-ended, problematic questions of the kind we're talking
about.
In fact, I think its a real mistake to think that
there's an answer to the question .. , questions we've been

59

\

�I
I

trying to talk over.
I said in the paper, and listening to
all of you this morning, I'm persuaded that to restate what I
said in the paper, mission is the key. But my understanding
of that has been expanded and, I think, enlightened by some of
the things that I've heard here.

As you recall, my opening remarks I mentioned what somebody
called the "U.S.S.Were" -- Russia -- the society facing
problems that, I think, make our's appear to be ... make our
concerns appear to be self-indulgent.
Very, very grave
problems. Bill Sederburg captured, in a sense, what •.• what I
think they face and that I think we face . when we start with
the notion of mission and we think about mission in the larger
sense.
When he used the phrase, rewriting the social
contract, that kind of language is being used more widely all
the time these days.
heard that,

the efforts to

same_
ls of
other
when
ibl.e
und

t

�And we can't just think about the third sector. We have to do
it in the context of all 3.
If we're an American democracy
anything remotely like the one that we've all known _and loved,
then we will continue to be a 3 sector society. So we've got
to call business to task in examining its place in this 3
sector society as well as government, as well as the sector
that we've been trying to focus on here today ~
e
o e as r a-t lve
our
on,
on th
-..
~n --bpportunity
. ...,..
-- --·

--

The next 20 years, I am told, will see the largest transfer of
wealth from one generation to another, not only in the history
of this country but probably in the history of the world.
Estimated numbers don't sound authentic in the mouth of a
humanist like myself, estimates ranging from $3 to $7 trillion
dollars.
So although we've got lots of economic problems,
don't you believe that we are not a weal thy society, that
there isn't money to do things. That's not our problem. But
it is a very serious question of what those resources will be
used for and I think that's part of what will come .out of our
participation in this rewriting of the social contract.
alews:

In that spirit, not of closure but and not of an ending but of
really of a beginning, I'd like to suggest that the panel t~ke
a vote here, and since there are several Legislators here,
~his seems an appropriate thing to do, how many of you would
be in favor of continuing this kind of summit and this kind of
dialogue into the future? All in favor say "Aye."

All:

"Aye"

Slews:

· Opposed?
I think that speaks rather emphatically to our
commitment today to really a new beginning and a new
partnership.
We do, on behalf of the Michigan Nonprofit
Forum, want to express a very, very special thank you to each
of the panelists, each of you leaders from business, from
government, from the nonprofit sector, for the very, very
thoughtful contributions that you have made to the dialogue
here. We talked about partnerships, and it simply should be

61

..
..

�r

noted here that a commitment to partnership is refl~cted in
the presence by each of these individuals here today, They
co~ld have been many other places •
There weJ;e many other
demands on their calendars. They made a personal commitment,
In a sense, they and their organiz(;ltions made a fiscol
COllUllitment by committing the resource, the value of their
t~e, to be here with us.
And so we do want to thank each of
you for your commitment to this beginning partnership. we
hope that those of you who have listened in and looked in have
found this to be a stimulating discussion, have found it to be
a thoughtful discussion, and we hope that in your
organizations and in your activitiee ~round this state and
throughout our society, that this will also lead you to n~w
challenges and to new opportunities fo~ partnership.

·- - - -

Lewis;

re
ls
pp

op

ypu
/ ha
·' Thank
(End of Summit-- 12:34 p.m.)

62

-- -- --

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                    <text>MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An ailianct to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

MNF Summit - February 28. 1992
"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan's Government and Business Community"
Convener
Ms. Maryellen J. Lewis
Executive Director
Michigan Nonprofit Forum
Moderator
Dr. Edward O. Blews, Jr.
President
Association of Independent Colleges and Universities of Michigan
Speaker
Dr. Robert L. Payton
Director
Center on Philanthropy, Indiana University
Panel Members
Mr. N. Charles Anderson
President
Detroit Urban League

Mr. Joseph P. Bianco, Jr.
Executive V.P., Founders Society
Detroit Institute of Arts

Hon. Richard Bandstra
State Representative
MI House of Representatives

Dr. Jane Deanne Clark
Senior Director
Michigan Health Care Institute
Michigan Hospital Association

Mr. Anthony Benavides
Third Ward Councilmember
City of Lansing

Mr. Edward L. Cox
President and Chief Financial Officer
Accident Fund of Michigan

�Fr. William Cunningham
Executive Director
Focus: HOPE
Mr. James Epolito
Chief Executive Officer
Blue Care Network/Health Central
Ms. Jaime G. Gallagher
Counsel
Harmon, Curran, Gallagher &amp; Spielberg
Mr. Robert E. Ivory
President
United Way of Michigan
Hon. James A. Kosteva
State Representative
MI House of Representatives
Sr. Monica Kostielney
Executive Vice President
Michigan Catholic Conference
Dr. Russell G. Mawby
Chairman and CEO
W.K. Kellogg Foundation

Mr. Lawrence Roehrig
Secretary/Treasurer
AFSCME, Council 25
AFL-CIO
Dr. William A. Sederburg
V.P. for Public Policy and Director
Public Sector Consultants
Ms. Elizabeth Upjohn
Board Member
Kalamazoo Foundation
Hon. Jackie Vaughn in
State Senator
Michigan State Senate
Dr. Mark I. Wilson
Director
Nonprofit Michigan Project, MSU
Ms. Lois Work
Vice President
New Detroit
Mr. Herbert Yamanishi
Executive Director
MI Community Action Agency Assoc.

Ms. Judith Miller
Michigan Business Ombudsman
Michigan Department of Commerce

rcf: 02/27/92, summpanl. Is t\pro grams vsummit\6400\mjt

�MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan,

MNF Summit - February 28. 1992
"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan *s Government and Business Community "

Audience Members
Mr . James Barrett
President
Michigan State Chamber of Commerce

Dr. Christopher M. Clark
Professor of Education
Michigan State University

Ms. Susan Bolhouse
Vice President
Waverly Board of Education

Ms. Donna M. Clarke
Administrative Assistant
Michigan Nonprofit Forum

Mr. Paul Booden
Director
Michigan Health Occupations

Dr. Kenneth E. Corey
Dean, College of Science
Michigan State University

Ms. Betty Boone
Interim Director
MI Council for Arts &amp; Cultural Affairs

Mr. William Dansby
Executive Vice President
Michigan Optometric Association

Judge Thomas E. Brennan
President
Thomas M. Cooley Law School

Mr. Arthur Dudley
President
Greater Lansing Urban League

Mr. Aaron Cantrell
Executive Director
Voluntary Action Cntr/Gr. Kalamazoo
V.P., Volunteer Centers of Michigan

Mr. David O. Egner
Executive Assistant to the Chairman
W.K. Kellogg Foundation

�Mr. David Fukuzawa
Program Director
The Skillman Foundation

Ms. Sharon Parks
Senior Research Associate
Michigan League for Human Services

Ms. Barbara K. Goldman
Office of Ombudsman
Department of Commerce

Mr. W. Calvin Patterson
Executive Director
McGregor Fund

Mr. James Helmrich
Public Relations Director
Michigan Bell Telephone Company

Ms. Linda Patterson
Administrative Director
Council of Michigan Foundations

Mr. Frederick H. Hoffecker
Assistant Attorney General
State of Ml/Charitable Trust Division

Ms. Helen C. Philpott
Chairman
Community Foundation of Greater Flint

Mr. Steven L. Johns-Boehme
Executive Coordinator
Michigan Ecumenical Forum

Ms. Judith A. Rapanos
Chairman
MI Council for Arts &amp; Cultural Affairs

Ms. Dorothy A. Johnson
President
Council of Michigan Foundations

Dr. Rene Rosenbaum
Research Associate
Julian Samora Research Institute

Mr. Glenn F. Kossick
Executive Director
Metro Health Foundation

Mr. Glenn R. Stevens
Executive Director
Presidents Council,
State Universities of Michigan

Dr. Judith Lanier
President
Partnership for New Education
Mr. Forrest Lewis
CPA
Plante &amp; Moran
Mr. Robert S. Lewis
Consultant
Lewis Associates
Ms. Frances Parker
President
League of Women Voters of Michigan

Mrs. Maryann Tillson
Administrative Secretary
Michigan Nonprofit Forum
Mr. Thomas Turner
Secretary/Treasurer
Michigan AFL-CIO
Rev. Leonard M. Young
Michigan Region President
RLDS Church
rcf:02/27/92, fummaudi. l«\progniu\suinmit\6400Vmjt

�MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving^ volunteering and a strong^ effective nonprofit sector in Michigan.

SUMMIT FEEDBACK
Please take a few moments at the conclusion of the summit to answer the following
questions. Your thoughts are important to us. You will help us in our assessment of this
session and provide some direction for future summits. Please leave this form on your
chair.
1.

What was most valuable to you in today's summit?

2.

Was this a useful format for addressing the issue? What changes in the format, if
any, would you suggest?

3.

What would you suggest as important nonprofit-related issues for consideration at a
future summit?

4.

Who are other Michigan leaders we should invite to future summits? Please indicate
both name and organization.

�MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An affiance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

MNF Summit - February 28. 1992
"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship 'with
Michigan's Government and Business Community "

NOTES:

��MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
Ail alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

Maryellen J. Lewis, Executive Director
EXECUTIVE SUMMARY
The Michigan Nonprofit Forum is a statewide alliance
to prqmote the awareness and effectiveness of
Michigan's nonprofit sector, and to advance the cause of
voluntarism and philanthropy in the state.
Background. In response to challenges facing the nation's nonprofit
sector, volunteer leaders and executives often statewide organizations concerned
with voluntarism and philanthropy in Michigan met on August 31, 1988 to form
the Michigan Nonprofit Forum. Initially designed to convene members for joint
discussions about shared issues, the Forum has evolved into an entity charged
with achieving a new awareness and increased capacity of Michigan s nonprofit
sector, and with interfacing funders, nonprofits and the public (working together
with existing efforts in the state) to promote voluntarism and philanthropy in
Michigan.
To achieve these goals, the Forum does not itself serve as a field-specific
trade association, competing for memberships and support with existing
associations in Michigan. Instead, the Michigan Nonprofit Forum creates, for
the first time, a statewide mechanism for dialogue, planning and cooperative
action among all stakeholders in the nonprofit sector. The Forum brings together
local and statewide leaders of nonprofit organizations, as well as public and
private funders and tax-supported institutions (such as the public schools and
universities) that also have an increasingly-recognized stake.
The activities of the Forum address voluntarism, philanthropy and the
nonprofit sector not as proprietary interests but aspubiic gopds. which broadly
affect the state's economy, polity and quality of life, and which therefore merit
careful analysis and planning, human resource development, informed public
discussion, and dependable investment.

�MNF Board of Trustees
The Forum's Board of Trustees serves as the governing body. Although it
is not intended to represent all stakeholders — an impossible task ~ it does bring
together a small number of statewide organizations and their elected member
representatives, to achieve a broad reach into many fields.
Organizational Members
Association of Independent Colleges and Universities of Michigan
Council of Michigan Foundations
Council of Michigan Urban Leagues
Jewish Community Council
Michigan Association of School Administrators
Michigan Association of School Boards
Congress of National Black Churches/Michigan Affiliate*
Michigan Catholic Conference
Michigan Community Action Agency Association
Michigan Community College Association
Michigan Council for Arts and Cultural Affairs
Michigan Ecumenical Forum
Michigan Health Council
Michigan League for Human Services
Presidents Council, State Universities of Michigan
United Way of Michigan
At Large Members
Richard H. Austin, Michigan Secretary of State
John S. Lore, National Vice Chair, National Society of Fund
Raising Executives
Russell G. Mawby, CEO and Chairman, W.K. Kellogg Foundation
George W. Romney, Chairman. The National Volunteer Center, and
Former Governor of Michigan
Elizabeth S. Upjohn, Vice Chairman, Kalamazoo Foundation

"Invited, still in formation
re f: exec s u mm. doc, adm /oth r, 0000

�MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan,

Guiding Principles of the Michigan Nonprofit Forum
Adopted by the Board of Trustees
October 28,1991

A. The future of Michigan's economic well-being and quality of life depends on the
commitment of its citizens and future citizens to the values of the nonprofit sector.
Therefore it is in the best interest of the sector and the state to actively encourage voluntary
giving and service.
B. The service of the nonprofit sector to the public depends on an interactive partnership
between service providers, funders, policy makers and the public. The Michigan nonprofit
community should promote constructive dialogue among all these parties.
C. In order to assist in re-educating the public and public leaders with concrete evidence of
the PUBLIC BENEFIT of the nonprofit sector, the Michigan nonprofit community should
encourage and undertake studies of its many unique benefits provided to the community at
large.
D. Michigan's nonprofit sector should define and aspire to the highest management
standards of ethics, efficiency, and accountability, while preserving its historic and essential
independence.
E. The Michigan nonprofit community should develop and advance the philosophy of tax
exemption, as well as positive public policies and incentives, to promote the vitality of the
sector; and then play an active role in encouraging Michigan's leadership — including elected
officials — to embrace it.
F. The Michigan nonprofit sector should take an active role in shaping statewide regulations
and rulings that define clear, consistent interpretations and applications for purposes of tax
exemption.

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                    <text>MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

MNF Summit - February 28. 1992
"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan fs Government and Business Community "
Convener
Ms. Maryellen J. Lewis
Executive Director
Michigan Nonprofit Forum
Moderator
Dr. Edward O. Blews, Jr.
President
Association of Independent Colleges and Universities of Michigan
Speaker
Dr. Robert L. Payton
Director
Center on Philanthropy, Indiana University
Panel Members
Mr. N. Charles Anderson
President
Detroit Urban League

Mr. Joseph P. Bianco, Jr.
Executive V.P., Founders Society
Detroit Institute of Arts

Hon. Richard Bandstra
State Representative
MI House of Representatives

Mr. Aaron Cantrell
Vice Chair/Voluntary Action Ctrs of MI
Executive Director
Voluntary Action Center of Kalamazoo

Mr. Anthony Benavides
Third Ward Councilmember
City of Lansing

Dr. Jane Deane Clark
Senior Director
Michigan Health Care Institute
Michigan Hospital Association

�Mr. Edward L. Cox
President and Chief Financial Officer
Accident Fund of Michigan
Fr. William Cunningham
Executive Director
Focus: HOPE
Mr. James Epolito
Chief Executive Officer
Blue Care Network/Health Central
Ms. Janne G. Gallagher
Counsel
Harmon, Curran, Gallagher &amp; Spielberg
Mr. Frederick H. Hoffecker
Assistant Attorney General
State of Ml/Charitable Trust Division
Mr. Robert E. Ivory
President
United Way of Michigan
Hon. James A. Kosteva
State Representative
MI House of Representatives

Mr. Lawrence Roehrig
Secretary/Treasurer
AFSCME, Council 25
AFL-CIO
Dr. William A. Sederburg
V.P. for Public Policy and Director
Public Sector Consultants
Ms. Elizabeth Upjohn
Board Member
Kalamazoo Foundation
Hon. Jackie Vaughn HI
State Senator
Michigan State Senate
Dr, Mark I. Wilson
Director
Nonprofit Michigan Project, MSU
Ms. Lois Work
Vice President
New Detroit
Mr. Herbert Yamanishi
Executive Director
MI Community Action Agency Assoc.

Sr. Monica Kostielney
Executive Vice President
Michigan Catholic Conference
Dr. Russell G. Mawby
Chairman and CEO
W.K. Kellogg Foundation
Ms. Judith Miller
Michigan Business Ombudsman
Michigan Department of Commerce

rcf:02/27/92, summpanl. lst\programs\ ummit\6400\mjt

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~

MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MIClllGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327

MNF Summit- February 28. 1992
"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan's Government and Business Community"
Convener
Ms. Maryellen I. Lewis
Executive Director
Michigan Nonprofit Forum
Moderator
Dr. Edward 0. Blews, Jr.
President
Association of Independent Colleges and Universities of Michigan
Speaker
Dr. Robert L. Payton
Director
Center on Philanthropy, Indiana University
Panel Members

Mr. N. Charles Anderson
President
Detroit Urban League

Mr. Joseph P. Bianco, Jr.
Executive V .P., Founders Society
Detroit Institute of Arts

Hon. Richard Bandstra
State Representative
MI House of Representatives

Mr. Aaron Cantrell
Vice Chair/Voluntary Action Ctrs of MI
Executive Director
Voluntary Action Center of Kalamazoo

Mr. Anthony Benavides
Third Ward Councilmember
City of Lansing

Dr. Jane Deane Clark
Senior Director
Michigan Health Care Institute
Michigan Hospital Association

�---- ---

-------------------------

Mr. Edward L. Cox

Mr. Lawrence Roehrig

President and Chief Financial Officer
Accident Fund of Michigan

Secretary/Treasurer
AFSCME, Council 25
AFL-CIO

Fr. William Cunningham
Executive Director
Focus: HOPE

Dr. William A. Sederburg
V.P. for Public Policy and Director
Public Sector Consultants

Mr. James Epolito
Chief Executive Officer
Blue Care Network/Health Central
Ms. Janne G. Gallagher
Counsel
Harmon, Curran, Gallagher &amp; Spielberg

Ms. Elizabeth Upjohn
Board Member
Kalamazoo Foundation
Ron. Jackie Vaughn ill
State Senator
Michigan State Senate

Mr. Frederick H. Hoffecker
Assistant Attorney General
State of MilCharitable Trust Division

Dr. Mark I. Wilson
Director
Nonprofit Michigan Project, MSU

Mr. Robert E. Ivory
President
United Way of Michigan
Ron. James A. Kosteva
State Representative
MI House of Representatives

Ms. Lois Work
Vice President
New Detroit

Mr. Herbert Y amanishi
Executive Director
MI Community Action Agency Assoc.

Sr. Monica Kostielney
Executive Vice President
Michigan Catholic Conference
Dr. Russell G. Mawby
Chairman and CEO
W .K. Kellogg Foundation
Ms. Judith Miller
Michigan Business Ombudsman
Michigan Department of Commerce

ref:f12/27192,aummpanl.lat\prograrna\all1D1Ili1\6400\mjt

�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327

MNF Summit- February 28, 1992
"Partnerships for People and Progress:
The Nonprofit Sector's Evolving Relationship with
Michigan's Government and Business Community"
Convener
Ms. Maryellen J. Lewis
Executive Director
Michigan Nonprofit Forum
Moderator
Dr. Edward 0. Blews, Jr.
President
Association of Independent Colleges and Universities of Michigan
Speaker
Dr. Robert L. Payton
Director
Center on Philanthropy, Indiana University
Panel Members

Mr. N. Charles Anderson
President
Detroit Urban League

Mr. Joseph P. Bianco, Jr.
Executive V.P., Founders Society
Detroit Institute of Arts

Hon. Richard Bandstra
State Representative
MI House of Representatives

Mr. Aaron Cantrell
Vice Chair/Voluntary Action Ctrs of MI
Executive Director
Voluntary Action Center of Kalamazoo

Mr. Anthony Benavides
Third Ward Councilmember
City of Lansing

Dr. Jane Deane Clark
Senior Director
Michigan Health Care Institute
Michigan Hospital Association

�Mr. Edward L. Cox
President and Chief Financial Officer
Accident Fund of Michigan
Fr. William Cunningham
Executive Director
Focus: HOPE

Mr. James Epolito
Chief Executive Officer
Blue Care Network/Health Central
Ms. Janne G. Gallagher
Counsel
Harmon, Curran, Gallagher &amp; Spielberg

Mr. Lawrence Roehrig
Secretaryrrreasurer

AFSCME, Council 25
AFL-CIO
Dr. William A. Sederburg
V .P. for Public Policy and Director
Public Sector Consultants
Ms. Elizabeth Upjohn
Board Member
Kalamazoo Foundation
Hon. Jackie Vaughn Ill
State Senator
Michigan State Senate

Mr. Frederick H. Hoffecker
Assistant Attorney General
State of MilCharitable Trust Division

Mr. Robert E. Ivory
President
United Way of Michigan
Hon. James A. Kosteva
State Representative
MI House of Representatives

Dr. Mark I. Wilson
Director
Nonprofit Michigan Project, MSU
Ms. Lois Work
Vice President
New Detroit

Mr. Herbert Y amanishi
Executive Director
MI Community Action Agency Assoc.

Sr. Monica Kostielney
Executive Vice President
Michigan Catholic Conference
Dr. Russell G. Mawby
Chairman and CEO
W .K. Kellogg Foundation
Ms. Judith Miller
Michigan Business Ombudsman
Michigan Department of Commerce

rcf:02/27/92,aummpanl.lat\programa\aummit\6400\mjt

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34 KELLOGG CENTER
EAST LANSING, :MICffiGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327

A&amp;enda
~

MNF Executive Committee Meetin&amp;
April 15. 1992 - 9;30-12:00
(Room 102 in the Kellogg Center, Harrison Road, East Lansing)

1. Welcome and Call to Order-- Chairman R. Mawby
2. Review of the Minutes of the December 17 Meeting
3. Report of the Chairman - R. Mawby
4. Report of the Executive Director - M. Lewis

5. Report of the Audit Committee-- G. Stevens
6. Report of the Finance Committee - R. Ivory
7. Report of the Membership Committee -- L. Young
8. Report of the Program and Public Policy Committees -- H. Philpott and E. B1ews
9. Report on Grantmakers/Grantseekers Seminar IV-- J. Lore
10. Report on the Campaign for Voluntarism-- G. Romney
11. Agenda for the April 23 Meeting of the MNF Trustees
12. Other Business
13. Adjournment

ref:4/9/92,exe2041S.agn,cm/excc,Ol00

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                    <text>MICHIGAN NONPROFIT FORUM
(A nonprofit corporation}

FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORT
PERIOD FROM INCEPTION (NOVEMBER 15, 1990)
THROUGH JUNE 30, 1991

�C 0 N T E N T S

--ooooo-PAGE
INDEPENDENT AUDITORS' REPORT

1

. . . ... . . . . . .

BALANCE SHEET . . . .

STATEMENT OF SUPPORT, REVENUE, EXPENSE AND CHANGES IN
FUND BALANCE . . . . . • . . •
. . . .
STATEMENT OF FUNCTIONAL EXPENSE

3

. . . .. . . . . . ... .

NOTES TO FINANCIAL STATEMENTS .

--ooOoo--

2

4

5 - 6

�0

Stanaback
&amp; Company, P.C.

P .O. Box 23206 • Lansing, MI 48909 • (517) 694-1422

Certified Public Accountants

INDEPENDENT AUDITORS' REPORT

To the Board of Trustees
Michigan Nonprofit Forum
East Lansing, Michigan
We have audited the accompanying balance sheet of Michigan Nonprofit
Forum (a nonprofit corporation) as of June 30, 1991 and the related
statements of support, revenue, expense and changes in fund balance and
functional expense for the period from inception (November 15, 1990)
through June 30,
1991.
These financial
statements are the
responsibility of the organization's management. our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement.
An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Michigan
Nonprofit Forum as of June 30, 1991 and the results of its operations
and changes in fund balance for the period from inception (November 15,
1990) through June 30, 1991 in conformity with generally accepted
accounting principles.

~/-~/J.;f7//(! .
CERTIFIED PUBLIC ACCOUNTANTS
January 7, 1992
Lansing, Michigan

�MICHIGAN NONPROFIT FORUM
BALANCE SHEET
JUNE 30, 1991
current
Operating
Fund

Equipment
Fund

Total

ASSETS
cash
Accounts receivable
Prepaid expenses
Office furniture/equipment,
net of accumulated
depreciation of $833

$

65,710
3,349
204

$

$

18,317
$

69,263

$

$

7,873
1,377

$

18' 317

65,710
3,349
204
18,317

$

87,580

$

7,873
1,377

LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable
Accrued vacation
Accrued payroll taxes
and withholdings
Total Liabilities

804

804

10,054

10,054

59,209

FUND BALANCE
$

69,263

See accompanying notes to financial statements.
2

18,317
$

18' 317

77,526
$

87,580

�MICHIGAN NONPROFIT FORUM
STATEMENT OF SUPPORT, REVENUE, EXPENSE AND CHANGES IN FUND BALANCE
PERIOD FROM INCEPTION (NOVEMBER 15, 1990) THROUGH JUNE 30, 1991
current
Operating
Fund
PUBLIC SUPPORT AND REVENUE
Public Support:
Grant allocations
Contributions
In-kind donation
Program fees

$

Total Public Support
Revenue:
Interest income
Publication income
Miscellaneous
Total Revenue
Total Public Support
and Revenue

70,142
11,870
2,400
37,190

Equipment
Fund

$

Total

$

70,142
11,870
2,400
37,190

121,602

121,602

3,475
729
3,592

3,475
729
3,592

7,796

7,796

129,398

129,398

EXPENSE
Program Services:
Philanthropy
Voluntarism
Education and public awareness
capacity building
Evaluation

65,592
15,976
7,202
6,198
770

425
158
175
25

66,017
16,134
7,377
6,223
770

Total Program Services

95,738

783

96,521

Support Services:
Administration

10,935

50

10,985

Total Expense

106,673

833

107,506

Excess (Deficiency) of
Public Support and
Revenue over Expense

22,725

OTHER CHANGES IN FUND BALANCES
Initial transfer of
grant assets
Equipment acquisition
FUND BALANCE AT END OF PERIOD

(833)

49,340
(12,856)

$

59,209

see accompanying notes to financial statements.
3

6,294
12,856

$

18,317

$

21,892

�MICHIGAN NONPROFIT FORUM
STATEMENT OF FUNCTIONAL EXPENSE
PERIOD FROM INCEPTION (NOVEMBER 15, 1990) THROUGH JUNE 30, 1991

Program Services
Education and
Phi lanthroel Voluntarism Public Awareness
EXPENSE
C~nsation

Benefits and taxes
Contract services
Professional services
Office supplies
Copying
Subscription and publication
Postage end shipping
Telephone and networks
Staff parking
Meetings, meals and
eccOIIIIIOdetions
Travel
Organizational dues
Participation fees
Equipment rental
Occupancy
Insurance
Miscellaneous

s

s

$

s

3,256
478

Capacity
Building Evaluation

s

4,562
593

s

665
91

168
740
215
212
465
41

24
106
166
230
66
35

4

8
815
15
122

153
680

260

3

290

84

3

456

504

72

65,592

15,976

7,202

6,198

425

158

175

25

64

447
441
83

60
2,690
1,224

Oepreci at ion

11,228
1,460
168
669

31,822
1,615

Total Expense Before Depreciation

Total Expense

11,847
1, 788
2,809
2,m
1,911
2,816
1,629
1,251
1,156
199

Support Services

66,017

$

16,134

$

7,3n

See accompanying notes to financial statements.
4

s

6,223

Total

s

4

no
$

no

$

Acininistration

s

31,558
4,410
2,809
2,m
2,271
4,331
2,078
2,140
2,128
362

5,613
873

Total

s

550
659
211
317
491
132
92

37,171
5,283
2,809
3,325
2,930
4,542
2,395
2,631
2,260
454

31,983
3,373
15
559
2,690
2,256

696
595

144
225
313

32,679
3,968
15
583
2,690
2,400
225
313

95,738

10,935

106,673

783

50

833

96,521

24

$

10,985

$

107,506

�MICHIGAN NONPROFIT FORUM
NOTES TO FINANCIAL STATEMENTS
PERIOD FROM INCEPTION (NOVEMBER 15, 1990) THROUGH JUNE 30, 1991
1.

ORGANIZATION
Michigan Nonprofit Forum ("the Forum") is a nonprofit corporation
organized to promote the awareness and effectiveness of Michigan's
nonprofit sector, and to advance the cause of voluntarism and
philanthropy in the state of Michigan.

2.

SUMMARY OF ACCOUNTING POLICIES
The following is a summary of the significant generally accepted
accounting policies followed in the preparation of the financial
statements.
Basis of Accounting
The financial statements of the Forum have been prepared on the
accrual basis.
To insure observance of limitations and
restrictions placed on the use of resources available to the Forum,
the accounts are maintained in accordance with the principles of
fund accounting. The assets, liabilities, and fund balances of the
Forum are reported in two separate funds as follows:
Current Operating Fund - includes the operating assets
and liabilities of the Forum.
Equipment Fund - includes the property and equipment and
related accumulated depreciation.
Equipment
Equipment is stated at cost. Depreciation is calculated using the
straight-line method over the estimated useful lives of the assets.
Income Taxes
The Forum has applied for exemption from income tax under Section
501(c) (3) of the u.s. Internal Revenue Code.
These financial
statements have been prepared on the premise that the Forum's
application will be accepted.
Functional Expense Allocation
Expenses identified as applying to a specific program or support
service are recorded in the appropriate service area as incurred.
Expenses not directly attributable to a program or support service
are allocated between service areas based upon percentages
formulated by management through a review of representative expense
accounts.

5

�MICHIGAN NONPROFIT FORUM
NOTES TO FINANCIAL STATEMENTS
PERIOD FROM INCEPTION (NOVEMBER 15, 1990} THROUGH JUNE 30, 1991
(CONTINUED)
3.

IN-KIND DONATIONS
During the period ended June 30, 1991, the Forum received in-kind
donations of office space and administrative services (ie:
payroll, accounting, etc.). The donation of office space and the
offsetting occupancy expense are reflected in the financial
statements. Because the dollar amount of administrative services
was not readily ascertainable it is not reflected in the financial
statements.

4.

GRANT CONTRACT
Formal responsibility for a grant contract, issued by the W.K.
Kellogg Foundation,
was transferred from another nonprofit
organization to the Forum as of January 1, 1991. The net assets
accumulated from the beginning project date (June 1, 1990) through
December 31, 1990, consisting of cash, office furniturejequipment
and deferred grant revenue, were transferred to the Forum's
possession and have been recognized in the statement of support,
revenue, expense and changes in fund balance as initial transfer of
assets.

6

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                    <text>MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, 1\flCIDGAN 48824-1022
Phone: 5171353-5038 Fax: 5171336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

Campaiw for Voluntarism

-- Logo
-- Mission Statement
-- Definition of Roles
- Roster of Campaign Committee Members
-- Article for the MI Chamber of Commerce

�CAMPAIGN FOR VOLUNTARISM LOGO

�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENfER
EAST LANSING, MICffiGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327

Michi&amp;an's Year of the Volunteer/Campaip for Voluntarism
Executive Summary
During the year from April24, 1992 to April, 1993, a broad alliance of organizations
and individuals (list attached) - under the leadership of former First Lady Janet Blanchard,
First Lady Michelle Engler, Frank Popoff (CEO of Dow Chemical), and former Governor
George Romney-- will undertake a Campaign for Voluntarism with the following mission:

TO PROMOTE VOLUNTARISM ACROSS THE STATE OF MICIDGAN AND
TO CREATE A CLIMATE OF COMMITMENT TO VOLUNTEERING
WHICH PERMEATES MICIDGAN'S LEADERSmP, ITS INSTITUTIONS
AND ITS COMMUNITIES.
Goal #1 HELP TO INCREASFJIMPROVE THE STRUCTURES
WHICH SUPPORT VOLUNTEERING IN MICIDGAN'S
INSTITUTIONS AND COMMUNITIES, especially Volunteer Centers but
also including: School volunteer programs, College student volunteer
bureaus, Workplace volunteer councils and incentives, Retired senior
volunteer programs, and many others.
Goal #2 HELP TO INCREASE VOLUNTEERING, ESPECIALLY IN
THE 35% OF CITIZENS WHO EXPRESS WILLINGNESS TO
VOLUNTEER BUT DO NOT.
During this Year of the Volunteer, several statewide efforts will seek to augment
existing local activities:
- Governor George Romney, Janet Blanchard, Michelle Engler and other highvisibility leaders in the Campaign will visit targeted communities throughout the
state, to meet with local leadership in government, business and the nonprofit sector,
to urge comprehensive, collaborative planning for effectively tapping and using
volunteer energies to solve local problems. Gov. Romney, for example, will be
accompanied by knowledgeable business leaders and experts, and will leave local
leaders with packets of the best available rationales, data and how-to materials,
compiled for this Campaign by the National Volunteer Center.
- These visits will be followed by technical assistance from expert networks
throughout the state, such as the Volunteer Centers of Michigan, the Michigan
Corporate Volunteer Council, Michigan Association of Volunteer Administrators,
Michigan School Volunteer Program, Michigan Campus Compact, Michigan

�Community Service Commission, and others. Assistance will be focused on
establishing or strengthening the infrastructure that supports volunteering (such as
local Volunteer Centers, school volunteer programs, and retired senior volunteer
programs).
-- Simultaneously, a statewide media campaign will showcase volunteer efforts and
publicize a new (800) number where a person can call, in order to be referred to local
volunteer coordinators who can place them in a satisfying service experience. The
(800) number will be operated through the Volunteer Centers of Michigan, which
will work with Campaign collaborating organizations such as the Michigan Nonprofit
Forum to coordinate the statewide media campaign.

attached: List of Campaign Committee Members

ref:3/5/92,mvcexcc.sum,prg/mvc,6300

�Campaign for Volunteerism
Michia=an Year of the Volunteer

Outline of Responsibilities

Role of the CO=CHAIRS OF THE CAMPAIGN COMMITIEE

1. To issue the challenge, including goals and a strategic framework for the
Campaign. (CATALYST)
2. To convene the Campaign Committee, including diverse, broadly-based and
inclusive representation and involvement. (LEADERSHIP DEVELOPMENT)

3. To publicly support and focus attention on the Year of the Volunteer, the
importance of volunteering for addressing serious social problems, and the need for
solid community infrastructures to support and sustain volunteering.
(VALIDATION AND MEDIA ATTENTION)
4. To voice the Campaign's accomplishments at strategic points in the Campaign.
(RECOGNITION)
Role of ORGANIZATIONS REPRESENTED ON THE CAMPAIGN COMMIITEE

1. To introduce the Campaign to their constituencies; to encourage priority attention
and involvement by their local chapters and constituents.
2. To use their networks to encourage support of Campaign goals in local
communities.
3. Where not already in place, to advocate for the Campaign goals to become longterm commitments by their organizations and networks.
4. To share concrete examples of how their constituencies can help, while
acknowledging the pivotal role of local leadership and commitment.

5. To participate in the Campaign Committee meetings and communicate
developments and opportunities to constituencies.
6. To seek and pursue opportunities for collaboration/partnership with other
Campaign Committee organizations, in order to leverage maximum involvement and
support. To enlist other network organizations to join the Campaign.
7. To serve as the information hub on the Campaign for their constituencies.

�Volunteer Centers of Michi~an
1. To provide training and technical assistance to communities without established
Volunteer Centers.
2. To develop strategies to engage their own communities' nonprofits in support of
Campaign goals.
3. To use the Campaign to further their shared goals to promote increased public
involvement as volunteers and increased public understanding of the importance of
Volunteer Centers.

5. To provide leadership and coordination for a Year of the Volunteer media
campaign.

ref:4/4/93 ,war20406.t:xt,6300

�MICHIGAN'S
CAMPAIGN FOR VOLUNTARISM
HONORARY CHAIRS

Hon. &amp; Mrs. John Swainson
Hon. &amp; Mrs. George Romney
Hon. &amp; Mrs. William Milliken
Hon. &amp; Mrs. James Blanchard
Hon. &amp; Mrs. John Engler
CAMPAIGN CHAIRS

Janet Blanchard
Fonner First Lady

Michelle Engler
First Lady

Frank Popoff
CEO, Dow Chemical

SUBCOMMITI'EE ON STATEWIDE PROMOTION:
Michelle Engler, Chair; and Frank Popoff, Co-Chair
SUBCOMMITTEE ON REGIONAULOCAL PROMOTION:
Janet Blanchard, Chair; and Frank Popoff, Co-Chair
CAMPAIGN COMMITIEE

AFUCIO
Association of Independent Colleges &amp;
Universities of MI
Cooperative Extension Service
Council of MI Foundations
Council Michigan Urban Leagues
Junior Leagues of MI
MI Association of Broadcasters
MI Association of Non-Public Schools
MI Association of School Administrators
MI Association of Schools Boards
MI Assn. of Volunteer Administrators
MI Campus Compact
MI Catholic Conference
MI Chamber of Commerce
MI Community Action Agency Association
MI Community College Association
MI Corporate Volunteer Council
MI Department of Social Services
MI Ecumenical Forum
MI Health Council

MI League for Human Services
MI Nonprofit Forum
MI Partners in Education
MI School Volunteer Programs
NAACP•
National Congress of Black Churches/
Michigan Chapter
Neighborhood Associations of MI
PTA of Michigan
Presidents Council, State Universities of
Michigan
Retired Senior Volunteer Programs of MI
Rotary Clubs of MI
United Way of MI
Volunteer Centers of MI

• Not yet confirmed

�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
All tJili4MI to promot1 givillg, volunulrillf and a sl:rollf, l/llcliJ111UJ11fJrofit s1ctor ill Michig1111.

Article for the Michiean State Chamber of Commerce
(March 5, 1992)
BUSINESS SUPPORTS VOLUNTEERING
The Michigan State Chamber of Commerce has joined with leadership from business,
government and the nonprofit sector to mount the Michigan Year of the Volunteer/Campaign
for Voluntarism, which will kick off on April24, 1992 at the Hyatt Regency in Dearborn.
Former Governor George W. Romney serves as Honorary Chair and initiated the
planning process for this statewide Campaign. He enlisted the joint leadership of Campaign
Chairman Frank Popoff, CEO of Dow Chemical, and Co-Chairs Mrs. Michelle Engler and
Mrs. Janet Blanchard. During the past year, Mrs. Blanchard and Mrs. Engler have visited
communities across the state to learn how communities are already enlisting volunteers to
solve social problems, and to plan an agenda for statewide voluntary action.
A key focus of the Campaign will be business leadership in promoting voluntarism in
every community. Governor Romney has pointed out that, "Today the State of Michigan is
more threatened by its internal human and social problems than it is by any external enemy.
Fortunately, Americans are joining with their co-workers, fellow church and club members,
and neighbors to find ways to make a difference in the lives of those in need. But thousands
more Michigan citizens must be called into service to extend the lifeline of hope and
opportunity to those being swept up in the tide of social distress. " In his view, business is in
a key position to mobilize communities throughout the state -- impelled not only by their
civic duty but for their bare survival in these difficult times!
Governor Romney, Mr. Popoff, Mrs. Engler and Mrs. Blanchard will be joined in
this Campaign by dozens of statewide orga.IDzations and networks, including the State
Chamber of Commerce, the Michigan Association of Broadcasters, Rotary International, the
Michigan Corporate Volunteer Council, the Retired Senior Volunteer Corps, Urban Leagues
of Michigan, the Executive Service Corps, and the United Way of Michigan. Together,
these organizations will collaborate with local communities to mount a publicity and
promotion campaign throughout the state, with these goals:

TO PROMOTE VOLUNTEERING ACROSS THE STATE, AND TO
CREATE A CLIMATE OF COMMITMENT TO VOLUNTEERING

�WHICH PERMEATES MICHIGAN'S LEADERSHIP, ITS
INSTITUTIONS, AND ITS COMMUNITIES.
Goal #1: HELP TO INCREASE/IMPROVE THE STRUCTURES
WHICH SUPPORT VOLUNTEERING IN MICIDGAN'S
INSTITUTIONS AND COMMUNITIES, especially Volunteer
Centers but also including: Workplace volunteer councils and
incentives, School volunteer programs, College student volunteer
bureaus, Retired senior volunteer programs, and many others.
Goal #2: HELP TO INCREASE VOLUNTEERING,
ESPECIALLY IN THE 35% OF CITIZENS WHO EXPRESS
WILLINGNESS TO VOLUNTEER BUT DO NOT.
This is a monumental task, and it can only be accomplished with the assistance and
creative action of a multitude of partners. But the Campaign's Coordinating Committee
comprises the beginnings of just such a network.
The Michigan Year of the Volunteer/Campaign for Voluntarism is unique in the
nation. In fact, Chairman Frank Popoff recently received a letter of congratulations from
President George Bush, who wrote: "By agreeing to help promote voluntarism in your
state, you have donated your time and energy to a very worthwhile cause. Volunteers
represent one of our Nation's greatest resources and one of our most effective answers to the
social problems that plague our communities -- problems that, if left unsolved, will
undermine American education and competitiveness."
As a Trustee of the Michigan Nonprofit Forum -- an alliance to promote giving,
volunteering and an effective nonprofit sector in Michigan -- Governor Romney enlisted
MNF to be the staff agency during the Campaign's startup. So if you want to enlist your
members in this Campaign, you can get details by contacting: Maryellen J. Lewis,
Executive Director, Michigan Nonprofit Forum, 34 Kellogg Center, East Lansing MI,
48224, 517/353-5038.

ref:03/11/92,mvcartcl.txt\programs\mvc\6300,mjt

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                    <text>MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An olliance to promote giving, volunteering allll a strong, effedivt 11011projiJ sector in Michig1111.

Recommendations of the Finance Committee
~

Executive Committee
(April15, 1992)

L Recommendations on :MNF Fringe Benefits Package:
#1: MNF's fringe benefits package should be completed to the level of 20% of
salary as soon as possible, before the end of FY1991-921 Since fringe benefits have
not been fully in place for much of FY1991-92, any balance of the 20% for each
employee this year should be placed in a Tax-Exempt Annuity for each.

#2: MNF's fringe benefits package should include both REQUIRED and
OPTIONAL benefits, selected on an annual basis (at the beginning of each fiscal
year) by each employee and totaling 20% of salary for each.
REQUIRED BENEFITS should not only include the legally-required
medical/dental, workers compensation, unemployment, FICA and Medicare,
but also short-term disability (probably covered in-house, based on the United
Way of Michigan model), coordinated with MNF's sick leave policy and
optional long-term disability insurance.
OPTIONAL BENEFITS (bringing the personal total up to 20% of salary)
should include Dependents' Medical/Dental, Life Insurance, Long-Term
Disability, Tuition Assistance, and a Tax-Exempt Annuity.

II. Recommendations Concerning Salary Review
#1: Salary review should coincide with the fiscal year, to accommodate financial
planning.
ill. Recommendations for Computer Purchase

#1: MNF should purchase a 486/33 desktop computer and related peripherals
(including a tape backup, fax/modem and hook-up to the MNF "local area network") ,
to accommodate MNF's accounting, desktop publishing, database management and
data analysis. For this purpose, $4000 of unexpended revenues should be transferred
from the Personnel line to the Equipment line. (Actual purchase will be reviewed
with the Finance Committee Chairman, as with any major MNF purchase.)

�RATIONALE: MNF now has two 286 computers (of a type which cannot be
upgraded to 386 or 486-- Compaq Deskpro), one 386 and a laptop (which
doubles as the Executive's desktop computer). At any one time, there are at
least 5, often 7 persons at work. Student interns' computer work is extensive,
but does not require high-powered computers, so a 286 is adequate, when
available for them to use.
However, the work of the Administrative Secretary -- database
filemerges, merge letters, network management-- and of the Administrative
Assistant-- accounting, data analysis and desktop publishing- it too timeconsuming to be left to the 286s. For example, an accounting task that is
nearly instantaneous on our single 386 may take 5-10 minutes to be processed
on the 286. Right now, these staff members juggle their work between the
386 and 286 machines, sometimes postponing critical work until after-hours
when schedules compete heavily.
We can now purchase a 486/33 computer (200 mgs, 8 mgs of RAM,
color monitor) with math coprocessor for less than the 286 cost 18 months ago
(with only 40 mgs, 1 mg of RAM, monochrome monitor). This machine
would eliminate the need to juggle machines between two key staff members
and would free up the second 286 for use by temporary clerical assistants and
student interns. Most important, it would greatly facilitate efficient use of
scarce staff time.

IV. Recommendations concerning Fundraising for F¥1991-92
#1: The MNF Board should adopt a formal policy urging every Trustee to make a
personal financial commitment to MNF's work.
#2: Upon adoption of this policy of 100% participation, the Board should request
that Chairman Mawby write to each Trustee, inviting and encouraging them to make
a personal financial commitment to MNF' s work.
#3: The board and chairman should also urge each Trustee to assume the additional
responsibility of enlisting new MNF Associate Members and Network Members.

ref:4/9/92,exe20415.fin ,cm/exe,0100

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                    <text>Michigan Nonprofit Forum
nary Income/Expense Statement
e Period Ending March 31, 1992
(As of April 9, 1992)

REVENUES
General Contributions
Founding Member Contr
Other Board Contributions
Interest &amp; Dividends
Grants &amp; Contracts
Program Fees
Membership Dues
MNF Subscr/Publ Income
Miscellaneous Income
Transfers In
Total Revenues

Actual
Current
Month

Actual
Yearto-Date

Budgetto-Date

Annual
Budget

850.00
0.00
0.00
554.28
18,095.75
2,330.00
450.00
20.00
0.00
0.00

950.00
6,450.00
1,250.00
2,522.54
156,061.75
2,770.00
500.00
175.00
0.00
0.00

7,622.28
7,499.97
1,500.03
3,750.03
156,061.75
0.00
1 ,500.03
2,250.00
0.00
12,210.75

10,163.00
10,000.00
2,000.00
5,000.00
204,969.00
50,000.00
2,000.00
3,000.00
0.00
16,281.00

22,300.03

170,679.29

192,394.84

303,413.00

7,607.59

70,744.21

86,717.94

116,624.00

2,378.82

10,995.75

20,082.78

26,777.00

3,546.63

6,446.53

22,756.28

39,675.00

9,565.41

23,264.14

33,343.22

43,286.00

170.00

531.10

1,125.00

1 ,500.00

2,316,03

5,164.68

7,148.34

44,031.00

712.44

4,763.73

8,310.87

11,081.00

180.00

1,036.25

1,125.00

1,500.00

3,218.28

5,427.38

4,615.47

9,379.00

2,049.00

4,492.93

7,169.94

9,560.00

31,744.20

132,866.70

192,394.84

303,413.00

0.00

0.00

EXPENSES
SALARIES
Total Salaries
BENEFITS
Total Benefits
CONTRACT SERVICES
Total Contract Services
OFFICE OPERATIONS
Total Office Operations
OCCUPANCY
Total Occupancy
MEETINGS
Total Meetings
STAFF TRAVEL
Total Travel
STAFF/BOARD DEVELOPMENT
Total Staff/Board Develop
FURNITURE/EQUIPMENT
Total Furniture/Equipment
MISCELLANEOUS
Total Miscellaneous

TOTAL EXPENSES
BALANCE

9,444.17

&lt;37,812.59&gt;

�Michigan Nonprofit Forum
Balance Sheet
March 31, 1992
(As of April 9, 1992)

ASSETS
Current Assets
Petty Cash
Checking Account - MNF
Investments
Total Current Assets

49.84
71,684.08
40,000.00
111,733.92

Fixed Assets
Fixed Assets
Total Fixed Assets

,149.76
19,149.76

Total Assets

130,883.68

LIABILITIES
Current Liabilities
Accounts Payable - Operating
Accrued Vacation
State Withholding
State Withholding (interns)
A / P Hospitalization
A / P Accrued Benefits
Discounts Taken
Deferred Revenue

&lt;7,438.00&gt;
&lt;1,376.88&gt;
&lt;1,007.98&gt;
&lt;14.86&gt;
&lt;231.38&gt;
&lt;530.86&gt;
&lt;27.37&gt;
&lt; 40,040.72 &gt;

Total Liabilities

50,668.05

FUND BALANCE
Fund Balance

80,215.63

�Michigan Nonprofit Forum
Income/Expense Statement
For the Period Ending March 31, 1992
(As of April 9, 1992)

Actual
Current
Month

Actual
Yearto-Date

Budgetto-Date

Annual
Budget

REVENUES
General Contributions
Founding Member Contr
Other Board Contributions
Interest &amp; Dividends
Grants &amp; Contracts
Program Foes
Membership Dues
MNF Subscr/Publ Income
Miscellaneous Income
Transfers In
Total Revenues

850.00
0.00
0.00
554.28
18,095.75
2,330.00
450.00
20.00
0.00
0.00

950.00
6,450.00
1,250.00
2,522.54
156,061.75
2,770.00
500.00
175.00
0.00
0.00

7,622.28
7,499.97
1,500.03
3,750.03
156,061.75
0.00
1 ,500.03
2,250.00
0.00
12,210.75

10,163.00
10,000.00
2,000,00
5,000.00
204,969.00
50,000.00
2,000.00
3,000.00
0.00
16,281.00

22,300.03

170,679.29

192,394.84

303,413.00

EXPENSES
SALARIES
Administrative Salaries
Student Interns
Clerical Salaries

5,615.38
453.75
1 ,538.46

56,984.57
2,714.27
1 1 ,045.37

60,176.97
10,350.00
16,190.97

80,236.00
13,800.00
22,588.00

7,607.59

70,744.21

86,717.94

116,624.00

0.00
371.38
0.00
0.00
581.98
530.86
894.60
0.00

0.00
3,227.28
0.00
0.00
5,411.93
755.69
1,600.85
0.00

0.00
4,051.53
0.00
1,959.75
5,956.47
1,333.53
1,777.50
5,004.00

2,378.82

10,995.75

20,082.78

0.00
5,402.00
0.00
2,613.00
7,942.00
1,778.00
2,370.00
6,672.00
26,777.00

3,546.63
0.00
0.00

4,285.43
0.00
2,161.10

3,243.78
14,141.25
5,371.25

14,325.00
18,855.00
6,495.00

Total Contract Services

3,546.63

6,446.53

22,756.28

39,675.00

OFFICE OPERATIONS
Office Supplies
Computer Software
Copying
Printing/Publishing
Subscriptions/Publications
Organization Dues
Postage/Shipping
Telephone &amp; FAX
Advertising/Public Relation
Equipment Maintenance

1,054.55
89.95
1,013.43
2,911.20
142.25
125.00
3,731.63
497.40
0.00
0.00

3,492.96
1,835.55
3,983.17
3,054.63
1,854.99
816.00
6,274.86
1,467.59
379.39
105.0O

4,375.53
1,092.78
5,373.72
6,897.22
2,025.00
764.28
8,556.78
3,117.97
164.97
974.97

5,834.00
1,457.00
7,165.00
8,863.00
2,395.00
1,019.00
10,709.00
4,324.00
220.00
1 ,300.00

Total Office Operations

9,565.41

23,264.14

33,343.22

43,286.00

1 70.00

531.10

1,125.00

1,500.00

1 70.00

531.10

1,125.00

1 ,500.00

725.66
973.28
617.09
0.00

1,089.56
3,458.03
617.09
0.00

863.28
2,424.78
1,855.53
2,004.75

4,151.00
31,233.00
5,974.00
2,673.00

2,316.03

5,164.68

7,148.34

44,031.00

0.00
0.00
9.00
660.24
0.00
43.20

603.24
140.52
405.84
2,459.76
287.00
189.37

483.03
388.53
648.00
4,803.03
802.53
179.28

Total Salaries
BENEFITS
Tuition Assistance
Medical Insurance
Life Insurance
Disability Insurance
PICA Taxes
Unemployment Taxes
Workers Compensation
Retirement
Total Benefits
CONTRACT SERVICES
Professional Sen/ices
Evaluation Services
Clerical Services

OCCUPANCY
Staff Parking
Total Occupancy
MEETINGS
Meeting
Meeting
Meeting
Meeting

Accommodations
Meals
- Speakers Travel
- Other

Total Meetings
STAFF TRAVEL
Travel Accomodations
Travel Meals
Travel Meals - Prog. Devi
Travel Mileage
Travel Air
Travel Other

644.00
518.00
864.00
6,404.00
1 ,070.00
239.00

�Michigan Nonprofit Forum
Income/Expense Statement
For the Period Ending March 31, 1992
(As of April 9, 13921

Participation Fees

Actual
Current
Month
0.00

Total Travel

712.44

4,763.73

8,310.87

11,081.00

0.00
0.00
0.00
0.00
0.00
180.00

0.00
0.00
41.25
0.00
0.00
995.00

0.00
0.00
0.00
0.00
0.00
1,125.00

0.00
0.00
0.00
0.00
0.00
1 ,500.00

180.00

1,036.25

1,125.00

1 ,500.00

113.33
2,270.00
834.95

728.33
2,833.77
1,865.28

493.47
2,439.00
1 ,683.00

3,883.00
3,252.00
2,244.00

3,218.28

5,427.38

4,615.47

9,379.00

2,049.00
0.00
0.00

2,049.00
2,443.93
0.00

3,112.47
4,057.47
0.00

4,150.00
5,410.00
0.00

2,049.00

4,492.93

7,169.94

9,560.00

31,744.20

132,866.70

192,394.84

303,413.00

0.00

0.00

STAFF/BOARD DEVELOPMENT
Staff/Bd Dev. Accommodation
S t a f f / B d Dev. Meals
Staff/Bd Dev. Mileage
Staff/Bd Dev. Air
Staff/Bd Dev. Parking
Staff/Bd Dev. Tuition
Total Staff/Board Develop
FURNITURE/EQUIPMENT
Furniture/Equipment Rental
Furniture/Equipment Purchas
Computer Hardware Purchase
Total Furniture/Equipment
MISCELLANEOUS
Insurance
Other Expenses
Transfers Out
Total Miscellaneous

TOTAL EXPENSES

BALANCE

9,444.17

Actual
Yearto-Date
678.00

Budgetto-Date
1 ,006.47

Annual
Budget
1 ,342.00

&lt;37,812-59&gt;

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                    <text>MNF
LOGO
HERE

Grantmakers/Grantseekers
Seminar IV — Agenda

April 24, 1992
8:00 a.m. to 4:00 p.m.
Hyatt Regency Dearborn
Dearborn, Michigan
GOVERNING BOARD,
MICHIGAN NONPROFIT FORUM:

Association of Independent Colleges and
Universities of Michigan
Congress of National Black Churches/Ml Affiliate
Council of Michigan Foundations
Council of Michigan Urban Leagues
Jewish Community Council
Michigan Association of School Administrators
Michigan Association of School Boards
Michigan Catholic Conference
Michigan Community Action Agency Association
Michigan Community College Association
Michigan Council for Arts and Cultural Affairs
Michigan Ecumenical Forum
Michigan Health Council
Michigan League for Human Services
Presidents Council, State Universities of Michigan
United Way of Michigan
At-Large Members:

Richard Austin, MI Secretary of State
John Lore, National Society of Fund Raising
Executives
Russell Mawbyr W.K. Kellogg Foundation
George Romneyr National Volunteer Center
Elizabeth Upjohn, Kalamazoo Foundation
Executive Director, Maryellen J. Lewis

�MNF
LOGO
HERE

"LIVING OUR MISSION:
MEETING OUR PUBLICS1 NEEDS"

Fourth Annual
Grantmakers/Grantseekers Seminar
April 24, 1992 - 8:00 a.m. to 4:00 p.m.
Hyatt Regency Hotel, Dearborn, Michigan

Improving communication between grantmakers/grantseekers
Broadening mutual understanding of important issues that
confront the not-for-profit sector
Meeting open to members, staff, trustees and other volunteers of
organizations in the Michigan nonprofit sector

Governor George Romney,
Honorary Chairman

�MNF
LOGO
HERE

April 24, 1992
"LIVING OUR MISSION:
MEETING OUR PUBLICS1 NEEDS""

8:00-9:00

Registration and Opening of Display Area
-Hubbard Foyer

9:00-9:45

Opening General Session: "Living Our Mission: Meeting Our Publics'
Needs"
-Hubbard Ballroom

Convener:

Dorothy A. Johnson
President, Council of Michigan Foundations

Speaker:

Marian Wright Edelman
President, Children's Defense Fund

9:45-10:00

Break

10:00-11:45 Concurrent Sessions
I.

"Collaboration and Appropriate Mergers"
-Houston/San Francisco Room
The next steps to partnerships and collaboration: when is it appropriate and
accountable?
Moderator:

James M. Richmond
Chief Operating Officer, The Frey Foundation

Speaker:

Florence L. Green
President, Florence Green &amp; Associates and President, California
Association of Nonprofits

II.

"Michigan's Year of the Volunteer"
-Springwells Room
A statewide Campaign for Voluntarism: Ideas, resources and visibility for your work
with volunteers.
Moderator:

JoelJ. Orosz
Coordinator, Philanthropy and Voluntarism, W.K. Kellogg Foundation

Speaker:

Frank Popoff
Chairman of the Campaign for Voluntarism and
President and Chief Executive Officer, Dow Chemical Company

�Panel:

George W. Romney
Former Governor of Michigan and Honorary Chair, Campaign for
Voluntarism
Janet Blanchard
Former First Lady of Michigan and Co-Chair, Campaign for
Voluntarism

Michelle Engler
First Lady of Michigan and Co-Chair, Campaign for Voluntarism

Sharon Radtke
Chair, Volunteer Centers of Michigan and Executive Director,
Voluntary Action Center of Greater Lansing
Aaron Cantrell
Vice Chair, Volunteer Centers of Michigan and Executive Director,
Voluntary Action Center of Greater Kalamazoo

"Evaluation and Accountability of NonprofiLs"

-Stutz-Bearcat Room

Real-world uses of evaluation as a practical tool for success!
Moderator:

Dan Moore
Vice President-Program, W.K. Kellogg Foundation

Panel:

Brenda Anderson
Executive Director, North Avenue Women's Center
Ken Kemerting
Director, United Way of Battle Creek

James R. Sanders
Program Director and Evaluation Specialist, W.K. Kellogg Foundation
Barbara Comai
Chairman of the Board, North Avenue Women's Center

�IV. "Meet the Grantmakers: Michigan's Community Foundations1*
-Dallas/Washington Room

Come ask questions of a panel of Michigan grantmakers! Learn about new directions
and trends.
Moderator:

Diana R. Sieger
Executive Director, Grand Rapids Foundation

Panel:

Kathy A. Agard
Program Director of Community Foundations, Council of Michigan
Foundations
Lisa Wyatt Knowlton
Vice President, Battle Creek Community Foundation

V.

"The Capitol Challenge: Survival Struggles in Washington and Tensing"
-Dearborn Room

A compelling analysis of critical public policy issues confronting the nonprofit sector in
the state and nation.
Moderator:

Suzanne L. Feurt
Program Officer, C.S. Mott Foundation

Speakers:

Joy A. Terrell
Associate Director of Government Relations, Independent Sector
Edward O. Blews, Jr.
Chairman, MNF Public Policy Committee and President, Association of
Independent Colleges and Universities of Michigan

11:45-12:00 Break
12:00-1:30

Luncheon and Networking: Each table will be hosted by a professional
grantmaker or member of the National Society of Fund-Raising Executives.
-Great Lakes Center

1:30-1:45

Break

�1:45-2:45 (repeated 3:00 to 4:00)
I.

Concurrent Sessions

"Shaking the Money Tree: What Motivates the Large Gift?"
-SpnngwelIs Room

The author of Mega Gifts explores why people givet and how nonprofit leaders and
givers connect around a shared vision,
Moderator:
Speaker:

Jerold Panas
Chief Executive Officer, Panas, Young &amp; Partners, Inc.

"Innovative Income Generation"
-Dearborn Room
Both givers andfundseekers have concerns about limited resources available to
nonprofits. This session explores new ways of generating resources, including tax
assessments, to meet the challenges of governmental cutbacks.

Moderator:

John E. Hopkins
Executive Director, Kalamazoo Foundation

Speaker:

Florence L. Green
President, Florence Green &amp; Associates and President, California
Association of Nonprofits

Concurrent Sessions (not repeated)
1:45-2:45
IQa* "Combatants or Colleagues? The Media and the Nonprofit Sector"
-Houston/San Francisco

How can nonprofits serve as effective resources for the media, so the news gets out and
gets out right? Learn from a panel of journalists.
Moderator:

Colette Murray
Vice President of Philanthropy, Henry Ford Health Systems

Panel:

Carol Lee Button
Deputy City Editor, Detroit Free Press

Mary Kramer
Editor, Grain's Detroit Business

James Bleicher
News Director, WJRT-TV, Flint

�3:00-4:00
Illb."Government Retreat, Demographics Change: Michigan's Nonprofit Sector in the
90' s "

-Houston/San Francisco Room

Who are we? Where are we going? The first demographic profile of Michigan's
nonprofit sector.
Moderator:

W. Calvin Patterson III
Executive Director, McGregor Fund

Speaker:

Mark I. Wilson
Director, Nonprofit Michigan Project and Assistant Professor,
Michigan State University

1:45-3:45

Concurrent Sessions (not repeated)

IV. "Becoming a Player: Advocating Your Cause and Getting Results"
-Stutz-Bearcat Room

Nonprofits can and must have an effective voice on public policy issues related to their
missions. Learn about this important role: Dos, Don'ts and Musts.
Moderators: Suzanne L. Feurt
Program Officer, C.S. Mott Foundation
Lawrence Wells
Assistant to the Director, Michigan League for Human Services

Speakers:

Nan Aron
Executive Director, Alliance for Justice

Michael B. Trister
Member, Alliance for Justice Advocacy Forum Advisory Board and
Partner, Trister, Singer &amp; Ross

�V.

The Van Dusen Endowment Challenge: A Funding Partnership for the Detroit
Area
-Dallas/Washington

Learn about a new initiative to trigger major increases in endowments, to achieve a
bigger, steadier stream in nonprofit incomes and capital reserves. Is it the beginning of
a trend?
Moderator:

John S. Lore
Senior Vice President, St. John Health Corporation; National Vice
Chair, National Society of Fund Raising Executives; and Trustee,
Michigan Nonprofit Forum

Speakers:

John E. Marshall
President, The Kresge Foundation
Mariam C. Noland
President, Community Foundation for Southeastern Michigan

4:00-5:00

Networking Reception

-Hubbaid Foyer

�(BACK PAGE - Centered)

Grantmakers/Grantseekers Seminar IV
Sponsored by the Michigan Nonprofit Forum

This Grantmakers/Grantseekers Seminar ~ a learning program — is sponsored by the Michigan
Nonprofit Forum and co-sponsored by:
Council of Michigan Foundations
W.K. Kellogg Foundation
Michigan Chapters of the National Society of Fund-Raising Executives
Co-chaired by:

John Lore, National Society of Fund-Raising Executives and St. John
Health Corporation
Diana Sieger, Grand Rapids Foundation

�</text>
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                    <text>MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICffiGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
All alliallce to promou pving, voiiUtteering tutd a stl'ollf, effective MllfJrofiJ sector in MichigiJII.

1992 Promm Committee
Grantmakers/Grantseekers Seminar IV
N. CHARLES ANDERSON
Pres., Cncl of MI Urban Leagues
Executive Director
Urban League of Detroit
208 Mack Avenue
Detroit, MI 48201
313/832-4600
STEVEN ECONOMY
Executive Assistant
Michigan Bell
444 Michigan Avenue, #800
Detroit, MI 48226
313-223-7282
SUZANNE FEURT
Program Officer
C.S. Mott Foundation
Mott Foundation Building
Flint, MI 48502
313/238-5651

~THC.~HERWOOD

Senior Vice President, Finance
YMCA of Metro Detroit
2020 Witherall
Detroit, MI 48226
313/962-1590

CONSTANCE P. JULIUS
Director, Telecommunications
Michigan Community College Assn.
2100 Michigan National Tower
Lansing, MI 48933
517/372-4350
ETHELKAGE
Associate for Volunteer Connect
United Way Volunteer Connection
500 Commerce Building
Grand Rapids, MI 49503
616/459-6281
GENE KEILITZ

R. KENNETH GRUBER
Executive Director
Impression 5 Science Museum
200 Museum Drive
Lansing, MI 48933
517/485-8116

Vice President
United Way of Michigan
300 N. Washington Sq., Suite 405
Lansing, MI 48933
517/371-4360

CHARLES A. INFANTE

JUSTIN P. KING

Manager, Contributions program
The Dow Chemical Company
Willard H. Dow Center
Midland, MI 48674
517/636-3620

Executive Director
MI Association of School Boards
421 W . Kalamazoo Street
Lansing, MI 48933
517/371-5700

�MARYELLEN J. LEWIS
Executive Director
Michigan Nonprofit Forum
34 Kellogg Center
East Lansing, MI 48824-1022
517/353-5038

LINDA PATTERSON
Council of Michigan Foundation
One South Harbor Avenue, Suite #3
Grand Haven, MI 49417
616/842-7080
W. CALVIN PA1*I'ERSON ill
Executive Director
McGregor Fund
3333 W. Fort Street, Suite #1380
Detroit, MI 48226
313/963-3495

JOHNS. WRE, CO-CHAIR
Senior Vice President
St. John Health Corporation
22101 Moross Road
Detroit, MI 48236
313/296-8680

DIANNE BOSTIC ROBINSON
Executive Director
Barat Human Services

DAN MOORE
Vice President of Programs
W.K. Kellogg Foundation
400 North Avenue
Battle Creek, MI 49017-3398
616/696-2344

~ueofCatholicServices

5250 John R
Detroit, MI 48202
313/833-1525
DIANA R. SIEGER, CO-CHAIR
Executive Director
Grand Rapids Foundation
209c Waters Building
Grand Rapids, MI 49503
616/454-1751

DOTTIE MORTIMORE
NSFRE Pres/Capitol Area Chapter
Assoc. VP/Director of Development
Michigan State University
4700 S. Hagadorn Road, Suite #220
East Lansing, 48823
517/355-8257

SAMUEL SNIDERMAN
Past Deputy Executive Director
Michigan Association of School Boards
4490 Commanche
Okemos, MI 48864
517/332-5464

COLEITE MURRAY
Vice President, Philanthropy
Henry Ford Health Systems
600 Fisher Building
3011 W. Grand Blvd.
Detroit, MI 48202-3012
313/876-9245

GLENN R. STEVENS
Executive Director
Presidents Council, State
Universities of Michigan
230 N. Washington Sq., #302
Lansing, MI 48933
517/482-1563

BARBARA OWENS
Director of Development
U of M Dearborn
4901 Evergreen
Dearborn, MI 48128
313/593-5393

2

�PAUL STRAWHECKER
Vice President of Development
Northwood Institute
3225 Cook Road
Midland, MI 48640
517/832-4205
S. MARK TERMAN
NSFRE Pres/W. Michigan Chapter
Western Michigan Chapter
Executive Director
Library of Michigan Foundation
P.O. Box 30159
Lansing, MI 48909
517/373-1297
PATRICIA R. W AXWEILER
NSFRE Pres/Mid-Michigan Chapter
Director of Development
Genesee Substance Abuse Services
1101 Beach Street
Flint, MI 48502
313/257-3201
LAWRENCE WELLS
Assistant to the Director
MI League for Human Services
300 N. Washington Sq., Suite 401
517/487-5436
SR. JACQUIE A. WETHERHOLT
NSFRE President/Michigan Chapter
Director of Development/Grants
St. John Health Corporation
22101 Moross Road
Detroit, MI 48226
313/343-4000

3

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                    <text>MNF Executive Committee Meeting
April 15, 1992
Kellogg Center, Room 102

CAN ATIEND

CANNOT ATrEND NO RESPONSE

Russell G. Mawby
N. Charles Anderson
Edward 0. Blews
Robert E. Ivory

X

Dorothy A. Johnson

X

JohnS. Lore

X

Beverley L. McDonald

X

Helen C. Philpott

X

George W. Romney

X

Glenn R. Stevens

X

Maryellen J. Lewis

X

�APR-02-1992

09 : 08AI'1

FROM DETRO IT URBAN LEAGUE

TO

15173361327

P . 02

1\fiCIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-lOll
Phone: 517/3!3-5038 Fax: !17/336--1321

A~ANCECONARMATIONFORM

Meetin&amp; of the
Executive Committee
of the
Michigan Nonprofit Forum

The KeUo.a2 Center, Room 102. Fast Lansini
Wednesday, Aprill5, 1992
9:30 a.m. to 12:00 p.m.

Coffee available from 9:00 a.m.

Please FAX or mail this form back before April 9, so we can make the necessary
arrangements.

V

YES, I Wll..L ATrEND THE 4/lS MEETING AT THE
KELLOGG CENTER FROM 9:30A.M. TO 12:00 P.M.

_ _ No, I will be unable to attend

rct."c20327. !rm,commiU.c\excc\0100,mjt

�SENT BY: xerox Teleco pi er 7021 ; 4-14- 92 ; 9:46AM ;

51737 2 916 5~

AST PRV LIFE EDUC: # 2

MICWGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN ~1022
Phone: 517/353-5038 Fax: !1'7/336-1327

ATIBNDANCE CONFIRMATION FORM

Meeting of the
Executive Committee
of the
Michigan Nonprofit Forum
The Kc)lQg

Center. Vista Room. I ans]na

Wedsnesday, April

1~ ,

1992

9:30 a.m. to 12:00 p.m.
Coffee available from 9:00a.m.

Please FAX or mail this form back before Am1I 9, so we can make the n~ssary

arrangements.

X

YES, I WILL ATTEND .THE 4/15 MEETING AT THE
KELLOGG CENTER FROM 9:30A.M. TO 12:00 P.M.

_ _ No, I will be unable to attend

COMMENTS:

SIGNED:

�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, tf/tctivt nonprofit sector in Mkhigan.

ATTENDANCE CONFIRMATION FORM

APR

61992

Meeting of the
Executive Committee
of the
Michigan Nonprofit Forum

The Kellogg Center. Room 102. East Lansing
Wednesday, April15, 1992
9:30a.m. to 12:00 p.m.
Coffee available from 9:00a.m.

Please FAX or mail this form back before April 9, so we can make the necessary
arrangements.

-$_ YES, I WILL ATTEND THE 4/15 MEETING AT THE
KELLOGG CENTER FROM 9:30A.M. TO 12:00 P.M.

_ _ No, I will be unable to attend

COMMENTS:
SIGNED:

ref:exe20327.frm,committe\exec\0100,mjt

�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

A~ANCECONARMATIONFORM

APR

6 1992

Meeting of the
Executive Committee
of the
Michigan Nonprofit Forum

The Kello~~ Center. Room 102.

~st Lansin~

Wednesday, Apri115, 1992
9:30a.m. to 12:00 p.m.
Coffee available from 9:00a.m.

Please FAX or mail this form back before April 9, so we can make the necessary
arrangements.

YES, I WILL ATTEND THE 4/15 MEETING AT THE
KELLOGG CENTER FROM 9:30A.M. TO 12:00 P.M.

4

will be unable to attend

ref:exe20327. frrn ,committe\exec\0100 ,mjt

�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An olliaiiCt ro promote giving, vollllllttrillg and a strong, tfftctivt IUIIIJirofit stcror in Michigan.

ATTENDANCE CONFIRMATION FORM

Meeting _of the
Executive Committee
of t.i.e
Michigan Nonprofit Forum

The Kello~~ Center. Vista Room. Lansin2
Wedsnesday, April15, 1992
9:30a.m. to 12:00 p.m.
Coffee available from 9:00a.m.

Please FAX or mail this form back before April 9, so we can make the necessary
arrangements.
/

_ /_

YES
VP-&lt;::, I WILL ATTEND THE 4/15 MEETING AT THE
KELLOGG CENTER FROM 9:30A.M. TO 12:00 P .M.

_ _

No, I will be unable to attend

ref:exe20327.frm,committe\exec\0100,mjt

�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promoU gMng, volunleering tutti a strong, effectille nonprofit sector in Michigan.

A~ANCECONARMATIONFORM

APR . 6 1992

Meeting of the
Executive Committee
of the
Michigan Nonprofit Forum

The Kello~~ Center. Room 102. East Lansin~
Wednesday, Aprill5, 1992
9:30a.m. to 12:00 p.m.
Coffee available from 9:00a.m.

Please FAX or mail this form back before April 9, so we can make the necessary
arrangements .

.&gt;{.__ YES, I WILL A~ THE 4/15 MEETING AT THE
KELLOGG CENTER FROM 9:30A.M. TO 12:00 P.M.

_ _ No, I will be unable to attend

ref:exe20327 .fnn,committe\exec\OlOO ,mjt

�04- 01-92 15 : 35

MLHS HELLO

2'12 P01

MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, :MICHIGAN 48824-1021
Phone: 517/3!3-5038 Fax: 517/336-1317

_. · .. ·::·~ANCB CONFIRMATION FO~
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-~

.

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~&amp;.m. to 12:00 p.m.

Co~ available from

. •.

"'4·'" . ..

9:00 a.m.

Please PAX or mail this fonn back before AprD 9. so we can make the necessary

arrangements.

*

YES, I WILL ATI'END THE 4/15 MEETING AT THE
KELLOGG CENTER FROM 9:30A.M. TO 12:00 P .M.

_ _ No, I will be unable to attend

CO~:

____________________________

SIGNED:._---+,~
~II:;.Iol:l&lt;L~1~
·(~
. 2L~-·~tVt~-~
- 1.Liodoi: LAz: .c. . . ;: a,.-: . .r d
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�MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An allillnct to promott giving, voluntttrillg tutd a strong, t/ftctivt Mnpro.fil stctor in Michigan.

AITENDANCE CONFIRMATION FORM

APR 11992

Meeting of the
Executive Committee
of the
Michigan Nonprofit Forum

The Kello~~ Center. Vista Room.

Lansin~

Wedsnesday, April 15, 1992
9:30a.m. to 12:00 p.m.
Coffee available from 9:00a.m.

Please FAX or mail this form back before April 9, so we can make the necessary
arrangements.

~YES, I WILL AITEND THE 4/15 MEETING AT THE
KELLOGG CENTER FROM 9:30A.M. TO 12:00 P.M.

_ _ No, I will be unable to attend

COMMENTS:

· ~,b .c

,e

SIGNED: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____

ref:exe20327.frm,committe\exec\0100,mjt

�SENT BY:Pr esi dents counci l

; 4- 3-9 2 ; 4!28PM ;

4 821 24 1 ~

AST PRV LIFE EDUCi # 1

MICWGAN NONPROFIT FORUM
...
34 KELLOGG CENTER
EAST LANSING, :MICHIGAN 48824-1022
Phone: 5171353-5038 Far. 5171336-13l7

ATrENDANCB CONFIRMATION FORM

Mcctiq of the
Executiv~

APR

6 1992

Committee

of the

Michigan Nonprofit Forum
1bc Kcltoal Center. Vista Room, Iamsin1

Wedsneaday, AprillS, 1992
9:30 a.m. to 12:00 p.m.

Coffee available from 9:00a.m.

Please FAX or mail this form back before Aprtl 2, so we can make the necessary
aiiBillemellts•

..X KBI..LOOG
YES, I wn.L ATI'BND THB 4/15 MEBTING AT THE
CBNTBR FROM 9:30A.M. TO 12:00 P.M.
_ _ No, I will be unable to attend

COMMENTS: ~

SIGNBD:

ref:aul0327.frm,oommltte\I!Qo\0100,11\Jt

'V~· ---...--,+--.---. -----

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                    <text>MEETING PLANNER
(Please fill out entire form)
WGISTICS

4/J

Date:
5 /q2Time &amp; Duration:

q 2&gt;0 -

/;)..

00

Group/Appointment: _..::.
Co::::..L..,;
t:"""'
e ;...:c..
=· c.....;'' - - - - Description/Purpose: _ _ _ _ _ _ __

I&lt; C . 12-&amp;o-YY\

Location:

L0

2

Approx. Size:

_---1...,;
10
= ---------

Contact:

~~o/92-9 £~.J,

Confirmed:

(Date &amp; name)

(Attach Directions/Map)
Other:

ANNOUNCEMENTS
Notice should be sent out immediately after location &amp; time confir:med

~Notice (always includes response form &amp; map):
~ Press Release:

~Follow-up Calls (2 weeks prior to event):
Other:

MATERIALS
Packets to participants should be mailed out no later than one week in advance of meeting
TO INCLUDE:
_ _ Agenda:
_ _ Minutes from previous meeting:
Handouts:

--

Other:

SPEAKERS
Name:
Title:

-----------

Confirmed:
Arrival:

Org:

Handouts:

A drs:

Other:

Phone:

---- - - -- -- -

�MEETING ROOM SET-UP

Set-up Time:
Style:
Head Table:
MNF Sign
MNF By-laws:
Podium/lectum:
Nametags:

~\f ¢&gt;

Pads/Pens:
Markers/Chalk:

::1-v tJ\"J I_

o \o.n

Easel/Flipchart:
Tentcards:

I

a-._

Coat rack:

Wastebasket:
Other:

CATERING/BREAK ITEMS
Set-up Time:

9·. CJ 0

Coffee/Decaff/Tea:
Muffins:
Juice/Special Item:

(A.M.)

Set-up Time:

'Red Ce.citu-'Room''A ,,
12 . CD

Soft Drinks:
Lunch:
Special:

UP S

's:

n )o.-

(P.M.)

'4+
c&gt;J+ me-nu.__

hJe,•( tJb

(veggie or kosher, etc.)

AUDIO/VISUAL EQUIPMENT
_ _ Overhead Projector

_ _ VCR Recorder/Playback Unit

_ _ 16mm Movie Projector

_ _ 35mrn Carousel Slide Projector
_ _ Microphones

- - Video Monitor
- - Sound System

Other:

-----------------

MISCELLANEOUS
Overnight Accommodations: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Other:

--------------------------------------

(H/C)

�</text>
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                    <text>MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICIDGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
All allilutet to promott giving, volunlttring tuUJ a strong, tfftclirt

MltpTOjiJ

SUMMARY OF MEMBERSHIP CAMPAIGN
(4/9/92)

TOTALS:

Membership Level:

Honorary
Sustaining
Sponsoring
Associate
Subscriber
INCOI\1E

1
1
3

40
6

$3170.00

stclor in MkhigiUl.

�Name

Or~anization

Type

Date

Helen C. Philpott(p)

Comm Fdn Gtr Flint
DOVIA
Berrien Co Asn/Churches
Kalamazoo Foundation
Founders Society PIA
MI Humanities Council
Reformed Bible College
Plante &amp; Moran
Good Neighbors Mission
First Step
Grand Valley State Univ.
Metro Health Foundation
BC/BS of Michigan
MI Asn of Broadcasters
Calhoun Co Economic Dev
Baker College System Flint
Consultant
Metro Affairs Corp
Big Bros/Big Sisters Flint
Cadillac Chmbr Commerce
St. Vincent &amp; S. Fisher Ctr
YMCA of Metro Detroit
Jr Achievement of SE MI
Detroit Inst for Children
Baker College Flint
Ann Arbor Area Co Fdn
Hope Network
MNF
N. Oak Co Girl Scout Cncl
Newaygo Co Comm Serv
W. Midland Family Ctr
MI League for Nursing
Arts Cncl Gtr Grand Rapids
Jordan College
American Youth Fdn
Wheatland Music Org.
Consultant
Midland Co Cncl on Aging
MI Asn Local Pub Hlth
The Recuperation Ctr
Heat and Warmth Fund
VFW Nat'l Home
Coalition on Temp Shelter
The Public Image
Coopers &amp; Lybrand

Sponsoring
Associate
Associate
Honorary
Associate
Associate
Associate
Associate
Associate
Subscriber
Associate
Associate
Associate
Sponsoring
Sponsoring
Associate
Subscriber
Associate
Associate
Subscriber
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Sustaining
Subscriber
Associate
Associate
Associate
Associate
Associate
Assocaite
Associate
Subscriber
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate

11126
2/26
3/16
3/16
3/20
3120
3/23
3/23
3/23
3123
3/24
3/24
3/25
3/26
3127
3/27
3/27
3/30
3/30
3/30
3/30
3/30
3/30
3/31
3/31
3/31
4/1
4/1
4/2
4/3
4/3
4/3
4/3
4/3
4/3
4/3
4/3
4/6
4/6
4/6
4/7
4/7
4/7
4/7
417

Rev. James Atterberry(p)
Elizabeth Upjohn(p)
Joseph P. Bianco(o)
Ron Means(o)
Ronald L. Zoet(o)
Forrest Lewis(o)
Carolyn Butler(o)
Judith Ellis(o)
Eleanor French(p)
Glenn F. Kossick(o)
Donna Nestovich(o)
Karole L. White(o)
William Stoffer(p)
Kenneth Rice(o)
Louise Motoligin
B. David Sanders(o)
Gary Haggart(o)
Ron Andrews(o)
Betty Speyer(o)
Kenneth Isherwood(o)
Thomas Dewar(o)
Janet Lusk(o)
Eileen Hayes(o)
Terry Foster(o)
Philip D. Tietz(o)
Maryellen J. Lewis(p)
Celeste Rabaut(o)
Bev Cassidy(o)
Greg Dorrien(o)
Nancy Caputo(o)
Jacqueline R. Udell(o)
Jack Kooyman(o)
Mark Pawlowski(o)
Lola Tyler(o)
Patricia Duch(p)
Sally York(o)
Mark Bertler(o)
Sandie Withrow
Kathleen Walgren(o)
Wayne Komejan(o)
Suzanne Health(o)
Gary Dembs(o)
Jay G. Rudolph(o)

Amount

100.00
50.00
50.00
500.00
50.00
50.00
50.00
50.00
50.00
20.00
50.00
50.00
50.00
100.00
100.00
50.00
20.00
50.00
50.00
20.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
250.00
20.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
20.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00

�Sandy Smith(o)
Eve E. Gohlke(o)
Karen Loth(o)
Roger Meyers(o)
Ronald Lantz(o)
Douglas Alberts(o)

ref:mnfmbrs.lst,fndlmbr,OlOO

Kent County CBS
VAC of Saginaw Co
Aquinas College
Comm Mntl ffith-Lenawee
Guardian Inc.
Listening Ear

Associate
Associate
Associate
Associate
Associate
Subscriber

4/8
4/8
4/8
4/8
4/9
4/9

50.00
50.00
50.00
50.00
50.00
20.00

�</text>
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              </elementTextContainer>
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            <element elementId="49">
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              <description>The topic of the resource</description>
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              <name>Identifier</name>
              <description>An unambiguous reference to the resource within a given context</description>
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                <text>Michigan Nonprofit Forum. Executive Committee</text>
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          <element elementId="49">
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                    <text>MNF Convenes First Summit

COMPLIMENTAAY COPY

Leaders from Government, Business and the Nonprofit Sector
Gather for Landmark Dialog in Lansing
In a precedent-setting even~ Michigan leaders met recently to engage in discussion which has implications for
every community in the state. On February 28, the Michigan Nonprofit Forum convened its first Policy Sunvnit,
bringing together key stakeholders to address the dramatic changes underway in the historic partnership linking the
nonprofit sector with government and business. The videotaped Summit addressed the theme: "Partnerships for
People and Progress -The Nonprofit Sectors Evolving Relationship with Michigan's Government and Business
Community."
This is a time when the nonprofit community has been rocked by cutbacks and escalating need, and when
government has turned increasingly to nonprofits to provide community services, and when business and other private
donors face constraints in giving due to a troubled economy. Tensions and strains between the sectors- govemmen~
for-profiUbusiness, and nonprofit- threaten at times to undermine the partnership which has served Michigan communities for more than a century. How do we proceed? What are principles that can guide policy and practice in these
times of dramatic change?
The Summit grappled with these hard questions. Dr. Robert Payton, Director of the Center on Phianthropy at
Indiana University (and former CEO of the Exxon Foundation) opened the discussion, which was also guided by his
theme paper circulated in advance. The discussion was then moderated by Dr. Edward Blews, President of the
Association of Independent Colleges and Universities of Michigan and MNF Board Secretary.
Future MNF Summits will continue to explore the challenges and diemmas in this evaving ~hip, and the
Summit videotapes will be used in Community Roundtables across the state. (For more infonnati00~5e contact
Donna M. Clarke at the Michigan Nonprofit Forum.) SEE pages 4-5 for SUMMIT EXCERPTS.

Issue 1
Spring
1992

Dr. Robert Payton, Drector, Center for PhianttnJpy at hlana lhvenity. opa15 the Michgan
~It Fanm's P\Jlic Poley Sunrit on Busn!ss. Govenment and the Ncqlroflt Sector

�2. ~ co-sponsored a semi1ar at Michigan State U'liversity
i1 jaruuy.1992. 'The State of Nonprofit Michigan," present-

I u dt/itllted to atrod.:e to yo. tJUs flnl HicJJi6u Ht»prolit Foro
Nenletter. It ir tbt IJope of tbt HNF JJoerd ud st.ff tbat t1Jis xnletter bta.es • udrl t«JJ to sttteboldm ill H.icbilu's IH1IIprofit sectrr
by proritldl disnssioll at ptrlillt11t .imlt$. illfonutin reports at special
d'forts a tbt $ldor. Vld rpdates at policies VHf ptr:WJU$ that are
U.pc 111 . .profit HicJJi6u.

AJtboqb IIIUY tiMS tbt tfforts ste• isrisib/e. tbt DODprofit stc/rr bas a
prolood U.p«t aa .U of ottr Jim. Is Hicbisu. IHJIIprolits «t::t/Dl for
MMiy siz percat of OtU stale ~ployat~~L Tbt •Prity ofuy
com~uityi laltll ~ bitbtr t:dtiCIItial. crdtval aspects. social st1"ria
dtlirtry. ud rirtally .U rtJitiotu IICtiritits are a pert of tbt IH1IIprofit
Sltdrr. Tbe q.ality of life tbroqb Hicbitu's com~nitits is Wl.aaxl
6Teatly by tbt .au. AMI MJSt iMJirid..J.s d OIU state i1lfllltllt% tbt
11011prolit $1/da. dirtdly or iMJirr:ctly. as ca~tribrton. 'f'Oiul«r$.
pa~ud'Fden

Tbt Hic1Ji6u Naaprolit Foro's role is ottr state 11011profit sectrr is to
proaote oon.Jxntiaa bd'fta 1H111profit oquiatit»s VHf to ect as u
illfonutx. b1b lt7 s/Uebolders ill tbt stclor.

ilg the i1itial research frrlllgs of the Nonprofit ~an
Project conducted by Dr. ~ Wison, assistant pro(essor
at M9J. t-is project's pub&amp;cation. The State of Nonpoflt
Michigan, 1991 was dissemilated to the entie Scholars
Network. (for ilforrnafun contact hin at 517/ 353-2967.
3. ~ wi cosponsor a research conference: ~ Hllllan
Dinensions of the Vok.Jntary Sector i1 MK:h~an: COOYl'llllity.
Culture and Diversity" i1 December, 1992 with Wayne State
U1'rversity. the Nonprofit Mich~an Project. and the MK:h~an
Ethnic Heritage Society. (For more ilforrnation contact David
R. Stevenson, Wayne State Uliversity. 313/577-6728.)
Dr. Mark Wison's ""
t report from the Nonprofit MK:higan Project tels us mo than we have ever known about
the sector i1 ~an As Dr. Wison poilts out, nonprofit
organizations are conmonty defr.ed by what they are not
rather than by what they are: the ·residual'' category
coverilg what is not govenment and not busiless - a
category that has remaned relatively lllCharted To remedy
this lack of so&amp;d ilforrnation, Dr. Wison used data from the
RS, the Michigan Employment Secuity Conmission and the
Department of Labor to compie a prelmi1ary snapshot of the
sector, selections of which folow:
• Michigan has over 40,000 nonprofltS, widely defr.ed, yet
fewer than 3,000 employ one or more persons. This is only a
partial pict\.le, however, snce thousands of voU.tary organizafuns with smal or even nonexistent budgets make a tremendous difference i1 the aves of those they serve.

I hope yo. fad tJUs a.pli.MDtary issflt of Tbt Fon• belpfrl a
rlMterer role yo. play i6 HicbiKu 's IHJIIpro/it stclor.

• ~ 1987, tv1ich~an's nonprofit sector employed 260,615
workers, with a payrol of amost $5 l*&gt;n al'd revenues approachilg $11 baon

Rrsse11 0. H.rby

• Nonprofit EfT1lloyment represents 5.8% of the state's wot'k
force. a sightly higher percentage than that of the nation as
a whole (5.7%). ~an has the eighth largest nonprofit
work force i1 the collltry.

Cbainlu

H.icbiKu Naapro/it Foro
&amp; Cbairau ud CBa
Tbt W.L XtlJqfx Foud.liaa

• ~ Michigan, health services comprise the largest part of
nonprofit employment (72.7%). prinariy i1 nonprofit hospitals.
==============;;;;;-- ---------'Nonprofit social servces make up only 16.57% of the total
nonprofit employment (These data do not yet shed &amp;ght on
i
the sector's capacity to absorb the servce obigaoons shiftilg
from the govenmental sector.)

RESEARCH UPDATE

Organizing to Look at Michigan's Nonprofit Sector • Growth i1 Michigan's nonprofit sector is slower than the
Part of ~s rrissDn is to i1crease pubic l.lldefstandllg and
awareness of the role and inpact of Mich~an's nonprofit sector. The
problem is, very lttJe ilforrnafun has been avaiable about the sector,
and existilg ilforrnafun has been fragmented and not easiy accessble.
That picture is changilg now. There is growilg ilterest i1
mappilg the scope and i'npact of the nonprofit sector. ~ the past
year. ~ has wot'ked with scholars and practitioners across the
state to encolr.lge research focused on Mich~an's nonprofrt sector:

national average which paralels the growth i1 the *servee
sector" as a whole. Between 1977 and 1987 the naoonaJ
nonprofit woricfOJCe i1creased by arnost 74%. whie the
sector i1 tv1ich~an ilcreased by less than 58%. The d'rfference
i1 these growth rates reflects tv1ich~an's mature stage of
urban nonprofit development where growth· is slowest
Growth has slowed where the nonprofit ilfrastructure has
been largely completed and i1 parts of the state experiencilg
slower rates of populafun and economc growth than the
nation as a whole.

• The buk of nonprofit employment is, naturaly, i1 the most
populated parts of the state. Total nonprofit employment i1
share research. to support colaborative stud'es, and to dissernilate .Y.ichigan COlllties is concentrated i1 the southern lower
research frdilgs as tools for practitioners. More than 300 scholars penilsula, with Wayne County accountilg for amost one t•
(77,810 jobs) of al nonprofrt employment i1 the state.
ilterested il the nonprofit sector have been Kientifed, and two
meetilgs have been heki A thi'd meetilg is scheduled for Apri 24 Nonprofit employment i1 the fiVe l.rilan counties of Wayne
(77,810), Oakland (28,903), Kent (20,746), Washtenaw
at 4:00 p.m at the Hyatt Regency Hotel i1 Dearbom For more
ilforrnation. contact Doma. Clarke at M-F (517/353-5038.)
(10,777) and N\acomb (10,351) accounts for 62% of the total
1. A scholars network now rnks researchers across the state to

2

�SfATE Utflill FOR
MICHIGAN'S '"YEAR
OF TI-E VOLUNTEER"
The Mdligan Nonprofit
Fon.m has joned with leatiersh~
from busness. goverrment and
the nonprofit sector to mount
the "Michigan Year of the
Vok.Jnteer/ Campaign for Vok.Jntarism", which will lOCk off on
Apri 24, 1992 at the Grantmakers/Grantseekers Semnar n
Dearbom The mission of the
Campaign wi1 be to promote
voluntarism across the state
of Michigan and to create a
clmate of convnitment to
volunteemg.
Former Governor George W.
Romney nitiated the plannng
process for this statewide
Campaign He enlsted the jont
leadersh" of Campaign Chaiman
Frank Popoff. President and ao
of Dow Chemical, and Co-chai's
Frst Lady Michele Engler and
former Frst Lady janet Blanchard.
As a Trustee of the Michigan
Nonprofit Fon.m. Governor
Romney enisted ~to be the
~taff agency dumg the CamJaign's startup.
Governor Romney has
panted out that. "Today the
State of Michigan is more
threatened by its ntemal human
and social problems than it is by
any external enemy. Fortunately.
citizens are jonng with thei" coworkers. fel&gt;w church members.
and neighbors to make a
difference n the 5ves of those n
need. But thousands more
Michigan citizens must be caled
nto servee to extend the &amp;f~
of hope and opportunity to
those beng swept up n the tide
of social diStress." n his view.
leaders n the pub&amp;c. private and
nonprofit sectors are n key
positions to mobize conmunities
throughout the state!
Governor Romney. Mr.
Popoff. Mrs. Engler and Mrs.
Blanchard wi1 be joned by a
coait:ion of statewide networks.
ilck.Jdng the Vok.lnteer Centers
of Michigan. State Clamber of
Coomerce. Councl of Michigan
Foundations. Michigan Association of Broadcasters. Rotary
ntemational, Michigan Corporate
Vok.Jnteer Councl. Retied Senior
Vok.Jnteer Corps. Uban Leagues
of Michigan. and the Ulited Way
of Michigan Together. these or-

ganizations will colaborate with
local corrmunities to mount a
campaign with these goals:
Goal #1 : HELP TO NCREAV
IN\PROVE THE STRLCTlRES
.YJHICH SLPPORT VOLLNTEERNGN

MO-UC:;AN'S I\ISlll1JrONS AND
COMMLNITES. especialy
vok.lnteer centers. but also
nclJdng: workplace vok.Jnteer
counds. school vok.Jnteer
programs. retied senior vok.Jnteer programs. and many others.

• These visits wil be folowed
by technical assistance from
expert networks, such as the
Vok.Jnteer Centers of Mdligan.
the Michigan Corporate
Vok.Jnteer Councl. Mdligan
Association of Vok.lnteer Admnistrators, Michigan School
Vok.Jnteer Program. Mdligan
Conmunity Servce Corrmission. and others. Assistance
wil be focused on estab&amp;shng
or strengthenng the nfrastructure that supports vok.Jnteemg.
• Srnultaneously. a statewide

Fom.r Governor George Romney (center) with (from left) MNF Executive Director,
U.ryetlen lewis, Fonner Rrat lady Janet Blanchard, and Rrat lady Mlcbelle Engler.

Goal #2: HELP TO ~
VOLLNTEER.NG. E9'EOAUY N
ll-!E 35% OF CTTlZENS WHO
EXPRESS VVUNGNESS TO VOLLNTIER BUT DO NOT.
Dumg this Year of the Vo~
unteer. several statewide efforts
will seek to augment local
activities:
• Governor Romney. Mrs.
Blanchard. Mrs. Engler and other
high-visbity leaders n the Campaign. wiD visit targeted conmunities. to meet with local
leadersh" n government. business and the nonprofit sector, to
urge colaborative plannng for effectively tappng vok.Jnteer
energies. Gov. Romney. for example. wil visit up to 30 corrmunities n the next six months to
tal&lt; with local leaders and supply
resolJ'Ce materials. compied for
this Campaign by the National
VoU\teer Center/Pants of Light
Folniation

.,

medra campaign wil showcase
vok.Jnteer efforts and pubk:ize
a new (800) number operated
through the Vok.Jnteer Centers
of Michigan
The Michigan Year of the
Vok.lnteer/Campaign for Vok.Jntarism is unique i1 the nation
n fact, Chaiman Frank Popoff
recently received a letter of
congratulations from President
George Bush. who wrote: "By
ag~g to ~ promote
vok.Jntarism i1 your state, you
have donated your tine and
energy to a very worthwhie
cause. Vok.Jnteers represent
one of our Nation's greatest
resources and one of our most
effective answers to the social
problems that plague our commi.J'lities - problems that. if
left unsolved. wil l.lldennile
American education and competitiveness."
For more detais. cal
Donna 0artce. M ~ft
Fonm (5, 7/353-5038).

"Voblteers represent
one of Oil /Qtions

sr-test

te5C1II'CeS

MWl one of 011 most
e/ff!Ctive

MaSWetS"

to

the socW ~oblems
tlYt flbsue

011

com-

trr~Rties-poblems

tlYt, if left rnsolved.
d uw:lemJine
Amc!rlan edlation

MWl conpetitiveness..
--Presidellt Bush

�1think the nonprofit sector is defined by what the olt'm are not
You're the residue of everything else. The nonprofit sector is driven
not by ~ets but by goodwiU and philanthropy, and the desires of
the individuals organizilg it. M~ion is central to the whole debate.

------:-:::;;;";Cl\~S~EC~I;OR~?~
1HE NoNPR~~·

~

.

Qis~tiOn IS \he \he
VM-'1~ \0 \he unenr~\ ,uuc~ 1tol1\ ~~r\rM)Nes

=bl~ \he ,ing\ea":\\er of~\ oi ·no ~a\8

f

~one The

r

in a 111a~

onable \o ~~Of an1 Se"·

a:
~:':S~' ad'l~~~ ~ ~~~fl\s a~ t1~\bi~un-

\ha\ nonprofl\S,

p~Na\~ oene~;"lEN··~\

i~\ oi ~~~\~\ic. no\~

9

Government is adrift. Private businesses are also having mission dif.
ficulties because of the changing economy and global economic
se\et\ed gtoUP uiced b~ \alii' IS The ~\ Ol a iz.a\ion "' .
forces. And the mission of nonprofit organizations is very, very tricky
\ha~s usUal\'#~ oi.Oitetd:munit't \o i~~~"~ume \o ~~
beca
....vhMu look" to you g•nn:: to catch f!Nerythirvl thafs left in
b" volun\~ •1\1\1\\hef 1n. a_.....rt a-1 \hell ":""'1 n\ charac\en,&amp; ..-n
use f!N.... , .........,
•
com1,09
is an 1111 A""' ionn oi publiC -rbetween.
response 0
\ha\ Of9an
'provide Swov
Dr. Wiliim A Sedelburg,
I'd just ~ke to say that it appears as though the
polic~ ~ida~jf~, \he~ do 8~is\ \o
ri per \defl~ing non-

___.___. . \~

-~-.------'ll

~:X';;:':;::::::Ditector.

;~munl\'1 ~lla\:0

When
W haare

t

~ a~~

'6:"~\ics~~ oi ~~~~,~~~hs\i~=~~~~~\Of

nonprofits have been gNen the mandate to
take care of crucial problems that are growing
and that are not getting smaller, and that it is
truly a mandate without money.

back!
fOf tne p~;rtt'om a naw~ \~evolve~~ and\ nope U\3,
Fr. WMiia
ft!~;c;ommin\\~. \hiS iS ~':~n ~area.
.
Executive
embOdieS a~ . ~Ofl1\ oUf ruc\hef ..
...ft!1c:.iles \he baSIC
1
diScussion 1111\\"'
. \hiS va\ue et111":_-.,., \\iS the value
. and serJ8 ou-w
~
re iOf
mu"i~.
I Qbl\g3\l00 V""Y'\a} sense oi com
'ty ~~~e·re a\so

Ms. Lois Wcri: V.t:e President, New Detroit

~c;rea\es arundam8" \ime \ha\ 1118'~\ibU~~"~~~~~\s

~· f&gt;..\ ~~Ne&lt;Si~! the ~00~~\s 4~and \helf 0'411\
alflft11i~vo\hef poin\S~~ac\ 00 \helf ()'411\ ~

s~~roup&amp; \o come \oge
a1111 Qfl
be\ieis.

'-ANidual~

'

.

• a ~~~a~ iOf ""' ~-"""'".ta\IC
nroflt ~\Of IS
'lli\hln oUf.l)l::l.;;;ss.

_. ~- o ..rticioa~ \he OOC'r,;;; soc;&amp;a\ c.t\aM8 .~-~UC 1"~- "' 1d
~0 iOf poilu~~ and~ \he l)l::l''i~S -....
~\~~iS ~~~a~' 'lje ~\iOnS. \he aemocra

ac\

• .__...__.__-A
We view the nonprofit sector as a way that the tremendous social energy in this
country can be channeled into doing virtuous, good things. If the public has access
to the information about what the nonprofit sector is doing with its income- making
101 pennies out of 100 pennies- then people can make wise decisions on where

~ VQ~un\a~

.
way Of \
, nonprofi\S axiS\ 1~" \hiS
~~~~\hef.
t . . Mos aood as the~ ca~ \o
\'\ 1M !'0'41 - \o be as t\\ence il\ e®ca~~\ oi
\o helP~ 9 '\JT181\\ \o e~ce .._,8 \he deVel'll""ii·; · 1e
ano\hef
\he com"'' · We a\SO 1""' t an ov~
value 111e nav:rus\iC ~pressiOI'Iheal\h~ envi!OOmel' '
__ _... \0
..A ._A..I\h,
res~""'mi\ieS. S0U1"' ,_. aiWiS"'·
· \ionS
~ ~\ef iOf ~·
:
~ 10f
. \
'lile com~

~\hQU\

sOCI8'Y ·

to spend their money or, as money gets tight, to spend their time by volunteering.
Mr. Fred Hoffecter, Assistant Attomey General, Slate ofMI/Chatilable Trust

'J::U%

are"'thes~tnas,_te:~~. and the
nN'I

u,., ""'

~·co --\Of and 19~"\'~

1\()1'\pi'(?l" ,..,..

1

h \he VUI

.,. •

L.!:_D~'ivl·s~IOfl~
· ~---...f~=~~~~:::::=~==~~=:r~
r-·• .
'ble \o \a\~ aboU\ \he llli\hil\ i\. Th~ai\h,
\neir
1think that deep in the living rooms where people are making
i\tl \\iS 1111!&gt;0Ss1 \' \OUS
t
these decisions about giving, there seems to be a tendency
~~nee ~!eU: ~1\S iOf
.
oi \he Ul\i\ed S\ates
that, if they don, know anything about yOU( agency, if ~Y

don, know anything about what you do - then they desiQnate
somebody else. I've been an elected official for 10 years in
the City of Lansing, and I think we have a tendency to leave
the human services, to leave our drugs and crime and health
.---------....,services to the United Way, to the foundations, to "let George
If government makes the conscious do it" type of attitude. 1have always advocated that the city
decision to broaden the deductibility government, county government, and state government need
of certain contributions, cleatty that
to be responsible and we need to set aside, just like we set
11a
that go
WI'II cos t the state government· That aside for evef)'thing else, we need to set aside ..
uut rs
will reduce the state dollars that can to this community.
go to social secvices. So we will be Mr. Anthon a- ..:.~~
.
'Y IX1Mr,.,_,
making the conscious decision that
n.:..J w-..J Councilmember
11uru rrmu
somebody else, the nonprofit sector, City ofLansing
will deiNer these services better
A

than the centralized state or federal . - . - - - - - - - - - - - - - - . ,
government. I'm not ceftain that our
I think ifs unfortunate sometimes that we appear to be irr
society has made that decision. I
visible, because I think the nonprofits have been making
think they're pushing us in that
wine out of water for a long time. We know how to take
direction.
100 pennies and tum~ into 101 pennies. We are the
Hon. Jlmes A Koslen
organizations
that get maximum results out of minimum
State Representative
dollars.
Ml House ofRepres8fllafives
ltk. N. Cllllrles Anderson, President
Detroit Urban League

sec\Of! we \

;'"'J:: ·G. Ga~e/:!:
caunsel.

\he e~~
\ime and

re\~

voluntal\
.'o.\1'1

:S volun\an\~
~~ c;ommul\i~.OUI\dll\~

e~en\ \o 111hich

00

uevil\e flcs\ Qbse&lt;V•
e~ , as de i ocq \ia\ \o ouc e~is\efl

comfi\8(CC a

ac\iOI\ are es~meo\ ~
il\ the ~~~\ are essel\\ial \o ~
rund ta1Sil'l9 uadi\iOI\ iS a \f3dl
\he volul\\al'1
\eYiaros are
''"OS8
s-A To
'" .......
" 1111 are \he u~
1 r.rP
r·su!ViVal_~=~~~\·. \o ·uodefS\c
mus\ unu&lt;&gt;•~
. n
nd po·s 1\ O ·
\each i\ a "
o;rector
Roberl payton.
;,
Or.
Ph'tanthrOPY· lnd·

center for

1

Government regulation is now so extreme that our flexibi''
meelt
local community needs is increasingly removed. I'd like
.ible h
the suggestion that this is exactly the time at which we should be m
ventive. But 1don't think that is going to happen in health care: !hE
squeeze is corning from both aides, and the ability to respond mmVJ
and new ways is shrinking as well.
.
.

Dr. .mne Dune Clart, Senior Director. MicNgan Hospital Assocll

�Voices frorn t~ Surnrnit
.,
Excerpts
from ti-e

r
rofit organization is to reach for the stars - to reach for the
1nMr time and then to integrate that with the society's habits,
:n by inch, and making the business community a little better too,
~ood. When are we going to tell folks, you've got to give back?
ng to start telling them, you've had a nice life, time to give back?
.ndously developing population in this country of people who've
olock a few times who are our
treasure. Come and

MNF
Policy
Summit

We should never lose sight of what Father
Cunningham and Sister Monica have said, never
·or. Focus: HOPE
lose sight of the caring mission and the soaring to
the stars. But as we soar to the stars, we should
have our audit in our pocket and we should have a
good, tight organization.
Mr. Joseph P. Bianco, Jr.
Executive V.P., Founders Society
Delroff /nslilute ofMs . .- - - - - ~.._ _........r,.
_ _ _ _ _.:;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;~ Businesses have the same compassion and the same social
concerns that all of us have. But sometimes its a choice of
In fact, the governmental and the nonprofit
meeting the payroll or donating to nonprofit organizations. And
sectcn are fully dependent for their resources
the obligation, obviously, is to meet the payroll. There's a conupon the vitality, the success of the other
cern about how much of the tax dollar should be dew&amp;ed to that
sector: Business. It is only as business is
as well. You can't do both. You can, continue to raise taxes
successful that government can generate its re- and then continue to expect the business commc.rlity to find the
sources. It is only as business is successful
means to solve all the problems too.
that employees can have the where-wiltHII to ». Ednrd L Cox, President and ChiefFJnaiiCi;M Officer
'ribute- 85% of giving is by individuals.
Accident Fund ofMichigan
,ic policy, in effect, decides how these
private resources are going to be mobilized to
serve the public good - by providing incentives
or disincentives for voluntary giving.
Dr. Russel G.
Chair &amp; CEO
W. K. Kellogg

Feb. 28, 1992

mingh:lm,

As labor leaders, we know 011' membets are good,
community-based, ha~Oftting individuals; but their
budgets are stressed just like eNf!Jf'f business. Their
difficulty with buying bread and supplies and paying
tuition and paying for things for their families is just as
difficult as corporate Michigan to balance its budgel
So if they're beset by too r~W~Y requests for
donations, the tendency is to llln the set off and not
listen any more and don, contrilute, period! Thafs
the complaint we're getting, that there is an increase
in the number of solicitations, both through direct
contact and through the worlplace.
lk. l.Rwrenct~ Roehrig, S«:rBBJJtyffreasurer,

t----------------.J AFSCME. Coonci/25AFL-C/O

....

The next 20 years, I am told, will see the largest transfer of wealth from one
generation to anoh!t, not only in the history of this country but probably in the
history of the wortd. Estimated numbers don't sound authentic in the mouth of a
humanist like myself, estimates ranging from $3 to $7 trillion dollars. So although
we've got lots of economic problems, don' you believe that we are not a wealthy
society, that there
money to do things. Thafs not our problem. But~ is a
very serious question of what those resources will be used for and I think thafs
part of what will come out of our participation in this rewriting of the social contract.
Dr. Robtltt ,.,_, DittctJr, Center for PhiMIIhtopy, lndiaM Univltsily

isn,

1·

e
~----.

�MARK
YOLR
CALENDAR!

Grantmakers/
Grantseekers

Seminar IV

c.-.
"Hope. ..
is not the
joy ~t

Friday, Api 24, 1992
Hyatt Regeocy 1-t&gt;tei/Dearlxxn
Once agai'l. over 1200
grantmakers and ~ers from
across Mctigan wl convene fer the
Fauth Arrual Grantmakers/
Grantseekers Serrinar. The prowam
wl cover income generation.
evakJation and acco.ntabity,
dernofvapt'ics. meda relations,
~an·s Year of the Vokrlteer.
and new poides affecmg aJ
norpofltsl
The conference bmgs together
fu-ders and l'lCJI'lli'Oflt c.-garizations
fer a day of learning together.
Speakers indJde Marian Wright
Edeman. Presidelt. Q-ichn's
Dehne Ftnd JaM Marshal
Preside! It, The Kresge Foc.rdation.
Aorence Green Preside! It, Nonprofit Management Associat.iorl
Franc Popoff. Presidelt and ao.
Dow Olerrical Corrpany; Mariam
c. Noland Pn:sidet lt. Cormuity

SMDe ~

tMws Me

going we( or the
wii1gness to ;,vest
;, enterprises tlut
Meob~
he~ded

for

-ny

svccess, but rather,
;m~y to wat
for sanethitff
~use it is good
- V~dav

1-Gvel

Fc:udation of Southeastern Mdigan;

a panel of Mctigan Grantmakers;
the Alance for jastice; and many

The most c~ vision of convnunity sti1 canes from john
W~ntt.op's notion o1 a city on a hi i'l Which we de&amp;ght i'l each
other. seek to make other'.s condition our own;o repce together,
labor and suffer together. always hav~ before our eyes our
canvntDt.y as members of the same body. lt is dis Ud of involvement with the needs of others that provides the social cement' that binds peopAe together i'l community•.
- )ames A. joseph

morel
The Grantmakers/Grant.seekers
Sermar IV Is spcnored by the
Mdigan ~fit Fmm and cosponsored by the Can:i of
Mdigan Faniations, the L.nted
Way of twctigan. and the fouteen
other state-Mde orgarizations aied
in the Mdigan Norpofit Fonm the
fOU" Mdigan Chapters of the
National Sodety of Fuld Raising
Exewtives; and the W.K. Kelogg
Fc:udation. T1is year's event is cochaired by Jotn Lore. Naticnal
Sodety of Fuld Raising ExeaJtives,
and Diana Seger. Cnnd Rapids
Fcudation.
R~tion Fee:
sso per person
S40 f c.- lvV'E rnerrbers
Registration Deadline:
Friday, April17, 1992

�Michigan
Fundraising
Campaigns

Seek
$710 Million
by Unda B. Patterson
Adriristrative Director,
Card of Nfdigan Fotl"ldiltions

Prermnary results of the
Col6ld of Michigan Fomdation's fmrth arrual 9JVey of
fundraising Cafl1&gt;Cligns n
Michigan indicate that. even
with 14% fewer ~igns in
1992 than in 1991, flning
targets are up nearly 5%
($30 m1r10n). One explanation
for fewer cafl1&gt;Cligns may be
that the sluggish economy is
corrbirlng with state cutbacks
to force service providers to
rethink strategic and longrange funding plans. aqusmg
to the changi1g envi'omlent.
Such re-a&amp;grments req\ft tine
for streanirT!g operations and
establishilg new strategic
goals. At the same tine.
higher funding goals for
ongoing ~igns acknowledge the need for ircreased

funds to co~te for
cutbacks and reductions from
past sources.
Nearly $710 m1r.on is being
sought in Michigan this year
by 74 no~fit orgarizations.
Of the early survey results.
68% of the reported campaigns were ntiated i1 prior
years.
"01..1' data does not aDow us
to know conclusively whether
the rurber of ~igns has
fallen off due to successfU
cafl1l&lt;ligns recently completed," corrments Dorothy A.
Johnson. CMf's President. "or
because plamed cafl1&gt;Cligns
have been delayed. or because of some other nfk.Jence.
But conversation withil the
sector incitcates that a lot of
retrencmg and replarmg is
gong on right now."

Education and tunan service
orgarizations. on the other
hand. show a 2/3 difference
in new versus contiruing
caf11J3igns. Of the 108
statewide carrpaigns CI.J'rendy
bei1g reported. 64 are capital
cafl1l&lt;ligns and 44 are endowment drives. Of the four
categories represented, educational nstitutions are the orly
g~ c0nducti1g as
capital as endowment campaigns; other grot4&gt;5 are
conduc:Ulg about twice as
many capital as endowment
cafl1l&lt;ligns.

many

The- sUwy is p.bished arnJilly

:~-~~~~
~~ Chaptas in
~ d-e McHgan Assodatioo
.o l ~al Deveqrnenq¥AJ-D).
and t:he-·Ccud for the Acfvancemert a.(~ for fd.ratial
(cA.crjt~·:,=::":=

, , ::: .,. ·., , • , .

The 1992 statistical SIW!'fo

Clitural and health orgarizations show the least reductions in new ~igns; but
they also have the smalest
representation i1 the 9JVey.

repcwti'll ~--~ involved wl be
late Apt·
~:iJii:
: : o: : : : :o:.~in
. ·.··
.·.···.
Fer a:CiVf ol the ~. · pease

Oxuc:t.the Caurl of Mdigan
~- at

61fi/8-42-7080.

CouNCIL oF MICHIGAN FouNDATIONS

Fourth Annual Funding Campaigns in Michigan Survey
Preliminary Results

Type of
Organization
Arts &amp; Culture
Educational
Health
Human Service

Capital
Campaigns

14
23
10
17

Number of Number of
Endowment Continuing
Campaigns Campaigns

12
36
6
20

8

25
2
9
7

New
Campaigns

10
12
6
6

':..a lot of retrenching and
replarDng is

gomg on right
now."

�NEW JOBBANK
FOR NONPROFITS
N MICHIGAN
It has always been diffiCUlt
for norp-ofit organzations to
reach a large audience for
qu;Ufted job-seekers. including
both students and experienced
professionals. To address this
problem. the W .K. Kellogg
Fou'ldation has fl.rded a
statewide and nationwide job
bark for yOtr job-operings.
"MH= meniJers
receive a

conplinent;lry
lifetine

subscription to
this tDque
publiationr

The sponsoring
orgarization - ACCESS:
Networking in the Nllic
nterest -is a national nonprofit organzation which pubtiShes both COMMUNlY PBS:
The Efll&gt;loyment Newspaper
and a College Edition of Comnuity Jobs. These papers
have become the largest circ:Uation periocfJCal in the non~frt worid, with mo~
ismgs of several tudred jobs.
expert advice. resolJ'Ce ists.
and organzationaJ profies
reachilg over 40,000 Slbscri&gt;ers.

In order to help more nonprofits attract a greater
rurber of quaGfted job seekers. ACCESS offers the job&amp;smg service FREE to J"''IO'1X''fit
organzations. In addition.
when an orgarization ~ts a
job. it receives a co"limentary subscription to COMMUI'lTY PBS! [Note: ~rs of
the Michigan No'¥0flt Fon.rn
will receive a co~tary
nfetime subscription to this
lrique pWbtion!]

ACCESS also provides
no'¥0fit sector career cotnser'"8 workshops. pd*: nterest Ia w job tiStilgs. a mnority
resume bark and no'llf'Ofit organzational sea~s fora

~o{ In 1M 1

w !C CDIIepa IIOii

Univen:itiea oC MidlipD

Mkhipa CllbDiic c.aac.ra-

Michipa &lt;:.ommaaity Adiaa A&amp;e«:Y
~

smaU fee.

To list an iltemship. entrylevel job. or an advanced professionaJ position i1 COMMUI'lTY PBS. or for more ilforrnation. contact the Michigan
Outreach Team. ACass. so
Beacon Street. Boston MA
02108, Phone: 617/720-5627.

MIO-ICAN NQNJRORT RESOLRCI DRECTORY
The Mctigan Navoflt Fonm is anendy l.¢aq the Mctigan
Norpof1t Rescuce Diectay. plbished n 1989 by the Acx:nrtmg Aid
Sodety. The drectay is~ to make it easier fer nc:ll"p''flts to fnd
pt&gt;fes!iionals v.tth the special elCpE!rtise needed by norpoflt managers. The
drectory &amp;sts service providers by category-such as law and ~-and
geowapr;c kx:ation. ~ woUd Ike ycu ilU- If you are a service provider
cr know of~ pro(essionak you woUd teCUitled to be lsted n the
drectay, please contact ~. Tetry ~on at ~. 34 Kelogg c.er.er,
East ~ tvt 48824.

Michigan Nonprofit Forum

Midlipa t.e.c-

c.. a-- Saviceo

rrc.idaiD Cauacil, .... ~ ol
MidlipD

AT· l.All0811Will!i!S

Ridln B.~
MicbipD ~.,Stile
Jala S.l.-,
N.ac-1 Socidy .t ..,._. ...... Euc:uliW8

a-110........,,
W. K. K.cJiall Pol

I

f

l!lizabdll s. UpjatD,
Keleme...,~-.b'icn

IUc Rate
us.Postage
Paid

34 Kellogg Center
East Lansing. Michigan 48824-1022
517/ 353-5038

~M

Penrit #926

Address Correction Requested

8

�GRANTMAKERS/GRANTSEEKERS SEMINAR IV
April 24, 1992
MLIVING OUR MISSION: MEETING OUR PUBLICS' NEEDSIF

8:00- 9:00
9:00- 9:45
9:45-10:00
10:00-11 :45

11 :45-12:00
12:00- 1:30
1:30- 1 :45
1 :45- 4:00

4 :00- 5:00

SCHEDULE
Registration and Opening of Display Area
Opening General Session: "Living Our Mission: Meeting Our Publics' Needs'
Break
Concurrent Sessions
I.
"Collaboration and Appropriate Mergers'
II.
"Michigan's Year of the Volunteer•
Ill.
"Evaluation and Accountability of Nonprofits'
IV.
"Meet the Grantmakers: Michigan's Community Foundations'
V.
"The Capitol Challenge: Survival Struggles in Washington and Lansing•
Break
luncheon and Networking
Break
Concurrent Sessions
I.
"Shaking the Money Tree: What Motivates the Large Gift?'
II.
"Innovative Income Generation•
lila.
"Combatants or Colleagues? The Media and the Nonprofit Sector'
lllb.
·Government Retreat, Demographics Change: Michigan's Nonprofit Sector in the 90's•
IV.
"Becoming a Player: Advocating Your Cause and Getting Results'
V.
"The Van Dusen Endowment Challenge: A Funding Partnership for the Detroit Area"
Networking Reception

RESOURCES AVAILABLE FROM THE l\fiCIDGAN NONPROFIT FORUM
Michigan Nonprofit Resource Directory , in collaboration with Accounting Aid Society (forthcoming)
.. i'

MNF Nonorofit Issues Papers 1$5.00 for members. $8.00 for nonmembers)
#1

"Collaboration for a Shared Future, •

James A. Joseph, President, Council on Foundations.

#2

Report from Policy Summit I, "Partnership for People and Progress: the Nonprofit Sector's Evolving
Relationship with Michigan's Government and Business Community".

#3

"Living Our Mission: Meeting Our Publics' Needs, •
Defense Fund (forthcoming).

#4

•The Changing Face of Michigan's Nonprofit Sector: Lessons from New Research, • Mark I. Wilson,
Director, Nonprofit Michigan Project (forthcoming).

#5

•Toward a Michigan White Paper on the Nonprofit Sector, • Janne G. Gallagher, Consultant,
Independent Sector (forthcoming).

Marian Wright Edelman, President, Children's

Audio Tapes 1$9.00 for members. $12.00 for nonmembers)
• Collaboration for a Shared Future," James A. Joseph, President, Council on Foundations.
"Demographics: Tools to Prepare for Michigan's Future Today, • Harold (Bud) Hodgkinson, Director, Center
for Demographic Policy, Institute for Educational leadership.
•Planning That Works: Long Range Strategic Planning for Nonprofits, • Aorence L. Green, President,
Nonprofit Management Association and Board Member, California Association of Nonprofits.
"Collaboration: Process and Pitfalls, • Florence L. Green, President, Nonprofit Management Association and
Board Member, California Association of Nonprofits.

�COMBINED REGISTRATION AND MEMBERSIDP FORM
FOURTH ANNUAL
GRANTMAKERS/GRANTSEEKERS
SEMINAR REGISTRATION

MICIDGAN
NONPROFIT
FORUM MEMBERSHIP

wLiving Our Mission:
Meeting Our Publics ' Needs •

"An alliance to promote philanthropy, voluntarism, and a
strong, effective nonprofit sector in the state. •

FRIDAY, APRil.. 24, 1992

MNF is a statewide alliance which serves as a clearinghouse for
addressing issues of importance to the nonprofit sector. It
convenes groups of leaders to plan and act together. It works
with policymakers, the public, and news media to promote a
better understanding of how the nonprofit sector works and
why it is so important.

8:00a.m. to 4:00 p.m. (lunch included)
Hyatt Regency Hotel
Dearborn, Michigan

This powerful seminar brings together Michigan's grantmakers
and grantseekers to discuss important issues and opportunities
affecting the nonprofit sector. Keynote address will be presented by Marian Wright Edelman, president of the Children's
Defense Fund. Sessions will focus on volunteerism,
grantseeking, nonprofits and public policy, evaluation and accountability, collaboration, community foundations, working
with the media, the demographics of nonprofits, increasing
endowments. DEADLINE FOR REGISI'RATION:APRIL 17

It issues periodic "public policy alerts" and position papers,
convenes the annual Grantmakers/Grantseekers Seminar, holds
biannual nonprofit public policy summits, promotes voluntarism throughout the state, stimulates and disseminates
research on the nonprofit sector, and publishes a timely
newsletter focusing on nonprofit sector issues.
Join now and receive a free copy or The SIQie of NonproftJ
Michigan. 1991 and a free lifetime subscription to Commun.iJy Jobs, a national listing of nonprofit jobs.

Please enroll me/my organiDtion as a member of the Michigan Nonprofit Forum in the membership category circled
below. (Membership includes discounts and reduced conference fees as well as the newsletter and Updates.)
Please register the persons whose names are entered below for the Grantmakers/Grantseekers Seminar on April24, 1992
My organization is a network of people/agencies, and we want to become active in MNF' s work. Please contact me witl.
information about how we can join NE1WORK ASSOCIATES!

as

~

Namc(s)

(~ iaili&amp;l. ' - )

Title/Poaition

.... o....-..- ,.._loonlol,

lbauy

~

._.,.

UlO

S2SI

SICIO

~

$j()

c-r.....
..,..._

,_, N___._
$«)

$j()

TOTAL AMOUNT DUE:

Organization
Address
City

State

Zip

Telephone
FAX

Enclosed is our _

MNF membership and/or _

conference fee for _ _ persons in the amount of $

Please make checks payable to: Michigan Nonprofit Fonm and mail to

MNF
34 Kellogg Center
East Lansing, MI 48224-1022

Amcullll)&amp;

�</text>
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                    <text>MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICillGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An allilur.ce to promote gi'l'ing, PolunJeering and a strong, effectire Mnprojit sector In Michigan.

MNF Priorities
Drafted by the Trustees (10/91) and
Ref"med by the Executive Committee (12/91)

1. Annual Grantmakers/Grantseekers Seminar: MNF will conduct an annual
Grantmakers/Grantseekers Seminar.

i. Trustees will make a priority for personal participation or senior organizational
representation (staff and/or trustees) in planning and implementation of the
Grantmakers/Grantseekers Seminar, as well as for registering and attending the event.
ii. The Executive Committee will appoint a Task Group (including the Chair of the
Grantmakers/Grantseekers Program Committee) to propose an overall GOALS
STATEMENT to guide the planning of future GG Seminars.

iii. Trustees will actively promote the GG Seminar as a pivotal event in the life of
Michigan's nonprofit community, and will actively solicit input from their networks
to guide its future design.

2. Proactive Stances on Public Policy Issues: MNF will track public policy issues that have
sector-wide implications in Michigan and keep trustees and other leaders informed; where
appropriate after due process by the board, MNF will take proactive stances on those issues.

i. The Public Policy Committee will continue to consider current public policy issues
and make recommendations to the board for action.
ii. Trustees will recognize themselves as the antennae for the Forum and will bring
to the attention of staff or the committee any issues of concern generally.

iii. Upon adoption of a position on a public policy position by the board, trustees
will, when appropriate, encourage their organizations to take a consistent position,
and will actively and substantially communicate those positions to their leadership
networks, their members, and to public policy makers.

1

�3. Public Policy Summits. with papers: MNF will conduct one or two Summits per year,
bringing together key leaders and other knowledgeable persons in a roundtable to discuss
seminal issues facing Michigan's nonprofit sector; each Summit will be guided by a
publishable paper, circulated in advance, and will be taped for distribution and broadcast,
aiming to widen the circles of discussion and understanding about those issues.

i. Trustees will make a priority for personal participation in the Summits, if invited,
and will participate actively in determining topics and securing insightful, engaging
participants, particularly to insure that the series is cohesiveness and has cumulative
impact.
ii. Trustees will actively seek and promote avenues for dissemination of the tapes
into local/regional discussions, and will encourage continued attention to the issues
raised in the tapes.

4. White Paper: MNF will produce a White Paper in 1992, describing a fundamental
rationale for the existence of the nonprofit sector, reflecting its history and accomplishments
and its evolving partnership with government and the for-profit sector; the paper will clarify
the sector's central role in Michigan's communities, its economy and quality of life, and the
framework justifying its historic independence and special tax status.

i. Trustees will, as appropriate, seek input from their constituencies for the design
and content of the MNF White Paper on the nonprofit sector.
ii. Trustees will provide careful scrutiny and thoughtful response to the Draft White
Paper, when available, and will circulate it as appropriate among their constituencies
for input.

iii. Trustees will disseminate and advocate the final White Paper among their
leadership networks and members.
iv. Trustees will actively communicate the substance of the White Paper to
community and sector leaders and to public policy makers.

5. Two- Year Campaign Strategy on Giving and Volunteering
A. Campai~n for Voluntarism (1991): MNF will continue to provide leadership and
staff support to the Campaign for Voluntarism, until such time as it operates
independently throughout the state.

i. Trustees will make a priority for personal participation or senior
organizational representation (staff and/or trustees) in the work of the
Campaign for Voluntarism.

2

�ii. Trustees will seek ways that their organizations and constituencies
can use the Campaign to further their own work in voluntarism.
Trustees will seek to integrate the Campaign into their own
organizations' work and to promote the Campaign through their
members and leadership networks.
iii. Trustees will actively promote the Campaign to community leaders
and policy makers, with the aim of promoting a lasting climate of
commitment to volunteering among Michigan's leadership,
communities and institutions.

B. "Give 5"

Cam,pai~n

(1993):

i. Trustees will make a priority for personal participation or senior
organizational representation (staff and/or trustees) in the work of the
"Give 5" Campaign, as is begins later this year for an Apri11993
kickoff.
ii. Trustees will, where appropriate, help to identify communities
already considering such a campaign (such as Lansing) and others
willing to explore it, so they may be included in the statewide
Campaign.
iii Trustees will seek ways to integrate the Campaign into their own
organizations' work and to promote the Campaign through their
members and leadership networks.
iv. Trustees will actively promote the Campaign to community leaders
and policy makers, with the aim of prof!loting a lasting climate of
commitment to giving and volunteering among Michigan's leadership,
communities and institutions.

6. Collect and Disseminate Research Insights:

i. MNF will encourage the development of a scholar's network in 1992.
ii. In order to link research as closely as possible to practice, Trustees will solicit
practice-based research questions from their constituencies, for communication by
staff to the Scholars Network.
iii. As MNF's eyes and ears, Trustees will communicate to staff information about
new and planned studies that have sector-wide implications, so that the information
can be shared widely.

3

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                    <text>MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

Minutes
of the
Executive Committee Meeting
December 17, 1991 - 3:00 to 5:00 p.m.
(Kellogg Center, Room 102, East Lansing, MI)

Trustees Present:
N. Charles Anderson
Edward O. Blews, Jr.
Robert E. Ivory
Beverley L. McDonald

Russell G. Mawby
Helen C. Philpott
Glenn R. Stevens

Staff Present:
Donna M. Clarke
Maryellen J. Lewis

1.

Welcome and Call to Order: With the Chair present, the meeting was called to order
at 3:15 p.m.

2.

Review of the Minutes: The committee reviewed and approved the minutes from the
October 8, 1991 Executive Committee meeting.

3.

Report of the Chairman: In the interest of time, R. Mawby yielded the floor to M.
Lewis for the report of the Executive Director.

4.

Report of the Executive Director: M. Lewis reported that MNF has received verbal
affirmation of the 501(c)(3) application. Written approval should be forthcoming
within thirty days.
M. Lewis also reported on the first organizational meeting of the Campaign for
Voluntarism held on December 16, 1991. At that meeting the coordinating
committee adopted its mission statement and developed a framework for the
campaign. Statewide efforts will include a yearlong media campaign and
information-sharing, to showcase existing volunteer efforts and strengthen the
infrastructure that supports volunteering in Michigan communities (such as volunteer
centers, corporate volunteer councils and workplace volunteering and student
volunteer programs). Major activities will center around National Volunteer Week in
the spring and National Philanthropy Day in the fall. Regional efforts will showcase

�existing and emerging volunteer programs by focusing on real people and events.
MNF will continue to promote cross-sector dialogue and to serve as the convener for
the campaign; however, action initiatives related to the campaign will be taken on by
individual organizations among the committee.
In responses to questions, M. Lewis also clarified MNF's role as the leadership
organization for the campaign. MNF has thus far served as the catalyst and convener
for the Campaign for Voluntarism, following the unanimous commitment of the MNF
Board in October 1990 - reaffirmed in October 1991 - and under the able leadership
of Committee Chairman George W. Romney. However, the purpose has always been
to facilitate a broad-based collaboration that would "take on a life of its own" and
operate independently of MNF, with MNF moving into a partnership role with the
other collaborating organizations. That process is underway.
5.

Discussion of Priorities: R. Mawby lead a discussion of the MNF Program Goals for
1991-92, based on the recommendations of three Board working groups at the
10/28/91 Annual Meeting. After a lengthy discussion, the committee agreed by
consensus to the following goals and objectives for MNF in 1991-92, in priority
order. These will be treated as operating goals pending ratification by the board at its
4/23/92 meeting.
1. Annual Grantmakers/Grantseekers Seminar: MNF will conduct an annual
Grantmakers/Grantseekers Seminar.
i. Trustees will make a priority for personal participation or senior
organizational representation (staff and/or trustees) in planning and
implementation of the Grantmakers/Grantseekers Seminar, as well as
for registering and attending the event.
ii. The Executive Committee will appoint a Task Group (including the
Chair of the Grantmakers/Grantseekers Program Committee) to
propose an overall GOALS STATEMENT to guide the planning of
future GG Seminars.
iii. Trustees will actively promote the GG Seminar as a pivotal event
in the life of Michigan's nonprofit community, and will actively solicit
input from their networks to guide its future design.

2. Proactive Stances on Public Policy Issues: MNF will track public policy
issues that have sector-wide implications in Michigan and keep trustees and
other leaders informed; where appropriate after due process by the board,
MNF will take proactive stances on those issues.

�i. The Public Policy Committee will continue to consider current
public policy issues and make recommendations to the board for
action.
ii. Trustees will recognize themselves as the antennae for the Forum
and will bring to the attention of staff or the committee any issues of
concern generally.
iii. Upon adoption of a position on a public policy position by the
board, trustees will, when appropriate, encourage their organizations to
take a consistent position, and will actively and substantially
communicate those positions to their leadership networks, their
members, and to public policy makers.

3. Public Policy Summits, with papers: MNF will conduct one or two
Summits per year, bringing together key leaders and other knowledgeable
persons in a roundtable to discuss seminal issues facing Michigan's nonprofit
sector; each Summit will be guided by a publishable paper, circulated in
advance, and will be taped for distribution and broadcast, aiming to widen the
circles of discussion and understanding about those issues.
i. Trustees will make a priority for personal participation in the
Summits, if invited, and will participate actively in determining topics
and securing insightful, engaging participants, particularly to insure
that the series is cohesiveness and has cumulative impact.
ii. Trustees will actively seek and promote avenues for dissemination
of the tapes into local/regional discussions, and will encourage
continued attention to the issues raised in the tapes.

4. White Paper: MNF will produce a White Paper in 1992, describing a
fundamental rationale for the existence of the nonprofit sector, reflecting its
history and accomplishments and its evolving partnership with government
and the for-profit sector; the paper will clarify the sector's central role in
Michigan's communities, its economy and quality of life, and the framework
justifying its historic independence and special tax status.
i. Trustees will, as appropriate, seek input from their constituencies
for the design and content of the MNF White Paper on the nonprofit
sector.

�ii. Trustees will provide careful scrutiny and thoughtful response to
the Draft White Paper, when available, and will circulate it as
appropriate among their constituencies for input.
iii. Trustees will disseminate and advocate the final White Paper
among their leadership networks and members.
iv. Trustees will actively communicate the substance of the White
Paper to community and sector leaders and to public policy makers.

5. Two-Year Campaign Strategy on Giving and Volunteering
A. Campaign for Voluntarism (1991): MNF will continue to provide
leadership and staff support to the Campaign for Voluntarism, until
such time as it operates independently throughout the state.
i. Trustees will make a priority for personal participation or
senior organizational representation (staff and/or trustees) in the
work of the Campaign for Voluntarism.
ii. Trustees will seek ways that their organizations and
constituencies can use the Campaign to further their own work
in voluntarism. Trustees will seek to integrate the Campaign
into their own organizations' work and to promote the
Campaign through their members and leadership networks.
iii. Trustees will actively promote the Campaign to community
leaders and policy makers, with the aim of promoting a lasting
climate of commitment to volunteering among Michigan's
leadership, communities and institutions.

B. "Give 5" Campaign (1993):
i. Trustees will make a priority for personal participation or
senior organizational representation (staff and/or trustees) in the
work of the "Give 5" Campaign, as is begins later this year for
an April 1993 kickoff.
ii. Trustees will, where appropriate, help to identify
communities already considering such a campaign (such as
Lansing) and others willing to explore it, so they may be
included in the statewide Campaign.

�iii Trustees will seek ways to integrate the Campaign into their
own organizations' work and to promote the Campaign through
their members and leadership networks.
iv. Trustees will actively promote the Campaign to community
leaders and policy makers, with the aim of promoting a lasting
climate of commitment to giving and volunteering among
Michigan's leadership, communities and institutions.

6. Collect and Disseminate Research Insights:
i. MNF will encourage the development of a scholar's network in
1992.
ii. In order to link research as closely as possible to practice, Trustees
will solicit practice-based research questions from their constituencies,
for communication by staff to the Scholars Network.
iii. As MNF's eyes and ears, Trustees will communicate to staff
information about new and planned studies that have sector-wide
implications, so that the information can be shared widely.

The committee also identified the need to develop a preamble to the Goals and
Objectives which would articulate the implied relationship between trustees, their own
organization's members, and MNF. Further, the committee agreed to review MNF's
mission statement to determine if further clarification is necessary in light of the
newly adopted Goals and Objectives.
Due to time constraints, the committee postponed the discussion of the Board
Administrative Goals.
6.

Review of the Membership Campaign: M. Lewis reported Kellogg will be printing
the membership brochure in early January. The campaign will begin with a
solicitation for subscribers, to be followed by solicitation of Network Associates in
the spring. This will enable MNF to use the success of GGIV and the public policy
summit as effective marketing tools.

7.

Schedule 1992 Executive Committee Meetings: The committee set dates for a spring
meeting on April 15 from 9:30 to 12:00, and for a fall meeting on September 23
from 9:30 to 12:00.

8.

Executive Session: The committee went into executive session, to prepare the
officers for the executive performance review following the meeting.

�9.

Adjournment: The meeting adjourned at 5:10 p.m.
Respectfully submitted by:

Edward O. Blews, Jr., Secretary

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                    <text>MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

[NOT YET ADOPTED]
Minutes
of the
Executive Committee Meeting
December 17, 1991 -- 3:00 to 5:00 p.m.
(Kellogg Center, Room 102, East Lansing, MI)

Trustees Present:
N. Charles Anderson
Edward O. Blews, Jr.
Robert E. Ivory
Beverley L. McDonald

Russell G. Mawby
Helen C. Philpott
Glenn R. Stevens

Staff Present:
Donna M. Clarke
Maryellen J. Lewis

1.

Welcome and Call to Order: With the Chair present, the meeting was called to order
at 3:15 p.m.

2.

Review of the Minutes: The committee reviewed and approved the minutes from the
October 8, 1991 Executive Committee meeting.

3.

Report of the Chairman: In the interest of time, R. Mawby yielded the floor to M.
Lewis for the report of the Executive Director.

4.

Report of the Executive Director: M. Lewis reported that MNF has received verbal
affirmation of the 501(c)(3) application. Written approval should be forthcoming
within thirty days.
M. Lewis also reported on the first organizational meeting of the Campaign for
Voluntarism held on December 16, 1991. At that meeting the coordinating
committee adopted its mission statement and developed a framework for the
campaign. Statewide efforts will include a yearlong media campaign and
information-sharing, to showcase existing volunteer efforts and strengthen the
infrastructure that supports volunteering in Michigan communities (such as volunteer
centers, corporate volunteer councils and workplace volunteering and student
volunteer programs). Major activities will center around National Volunteer Week in
the spring and National Philanthropy Day in the fall. Regional efforts will showcase

�existing and emerging volunteer programs by focusing on real people and events.
MNF will continue to promote cross-sector dialogue and to serve as the convener for
the campaign; however, action initiatives related to the campaign will be taken on by
individual organizations among the committee.
In responses to questions, M. Lewis also clarified MNF's role as the leadership
organization for the campaign. MNF has thus far served as the catalyst and convener
for the Campaign for Voluntarism, following the unanimous commitment of the MNF
Board in October 1990 ~ reaffirmed in October 1991 — and under the able leadership
of Committee Chairman George W. Romney. However, the purpose has always been
to facilitate a broad-based collaboration that would "take on a life of its own" and
operate independently of MNF, with MNF moving into a partnership role with the
other collaborating organizations. That process is underway.
5.

Discussion of Priorities: R. Mawby lead a discussion of the MNF Program Goals for
1991-92, based on the recommendations of three Board working groups at the
10/28/91 Annual Meeting. After a lengthy discussion, the committee agreed by
consensus to the following goals and objectives for MNF in 1991-92, in priority
order. These will be treated as operating goals pending ratification by the board at its
4/23/92 meeting.
1. Annual Grantmakers/Grantseekers Seminar: MNF will conduct an annual
Grantmakers/Grantseekers Seminar.
i. Trustees will make a priority for personal participation or senior
organizational representation (staff and/or trustees) in planning and
implementation of the Grantmakers/Grantseekers Seminar, as well as
for registering and attending the event.
ii. The Executive Committee will appoint a Task Group (including the
Chair of the Grantmakers/Grantseekers Program Committee) to
propose an overall GOALS STATEMENT to guide the planning of
future GG Seminars.
iii. Trustees will actively promote the GG Seminar as a pivotal event
in the life of Michigan's nonprofit community, and will actively solicit
input from their networks to guide its future design.

2. Proactive Stances on Public Policy Issues: MNF will track public policy
issues that have sector-wide implications in Michigan and keep trustees and
other leaders informed; where appropriate after due process by the board,
MNF will take proactive stances on those issues.

�i. The Public Policy Committee will continue to consider current
public policy issues and make recommendations to the board for
action.
ii. Trustees will recognize themselves as the antennae for the Forum
and will bring to the attention of staff or the committee any issues of
concern generally.
iii. Upon adoption of a position on a public policy position by the
board, trustees will, when appropriate, encourage their organizations to
take a consistent position, and will actively and substantially
communicate those positions to their leadership networks, their
members, and to public policy makers.

3. Public Policy Summits, with papers: MNF will conduct one or two
Summits per year, bringing together key leaders and other knowledgeable
persons in a roundtable to discuss seminal issues facing Michigan's nonprofit
sector; each Summit will be guided by a publishable paper, circulated in
advance, and will be taped for distribution and broadcast, aiming to widen the
circles of discussion and understanding about those issues.
i. Trustees will make a priority for personal participation in the
Summits, if invited, and will participate actively in determining topics
and securing insightful, engaging participants, particularly to insure
that the series is cohesiveness and has cumulative impact.
ii. Trustees will actively seek and promote avenues for dissemination
of the tapes into local/regional discussions, and will encourage
continued attention to the issues raised in the tapes.

4. White Paper: MNF will produce a White Paper in 1992, describing a
fundamental rationale for the existence of the nonprofit sector, reflecting its
history and accomplishments and its evolving partnership with government
and the for-profit sector; the paper will clarify the sector's central role in
Michigan's communities, its economy and quality of life, and the framework
justifying its historic independence and special tax status.
i. Trustees will, as appropriate, seek input from their constituencies
for the design and content of the MNF White Paper on the nonprofit
sector.

�ii. Trustees will provide careful scrutiny and thoughtful response to
the Draft White Paper, when available, and will circulate it as
appropriate among their constituencies for input.
iii. Trustees will disseminate and advocate the final White Paper
among their leadership networks and members.
iv. Trustees will actively communicate the substance of the White
Paper to community and sector leaders and to public policy makers.

5. Two-Year Campaign Strategy on Giving and Volunteering
A. Campaign for Voluntarism (1991): MNF will continue to provide
leadership and staff support to the Campaign for Voluntarism, until
such time as it operates independently throughout the state.
i. Trustees will make a priority for personal participation or
senior organizational representation (staff and/or trustees) in the
work of the Campaign for Voluntarism.
ii. Trustees will seek ways that their organizations and
constituencies can use the Campaign to further their own work
in voluntarism. Trustees will seek to integrate the Campaign
into their own organizations' work and to promote the
Campaign through their members and leadership networks.
iii. Trustees will actively promote the Campaign to community
leaders and policy makers, with the aim of promoting a lasting
climate of commitment to volunteering among Michigan's
leadership, communities and institutions.

B. "Give 5H Campaign (1993):
i. Trustees will make a priority for personal participation or
senior organizational representation (staff and/or trustees) in the
work of the "Give 5" Campaign, as is begins later this year for
an April 1993 kickoff.
ii. Trustees will, where appropriate, help to identify
communities already considering such a campaign (such as
Lansing) and others willing to explore it, so they may be
included in the statewide Campaign.

�iii Trustees will seek ways to integrate the Campaign into their
own organizations' work and to promote the Campaign through
their members and leadership networks.
iv. Trustees will actively promote the Campaign to community
leaders and policy makers, with the aim of promoting a lasting
climate of commitment to giving and volunteering among
Michigan's leadership, communities and institutions.

6. Collect and Disseminate Research Insights:
i. MNF will encourage the development of a scholar's network in
1992.
ii. In order to link research as closely as possible to practice, Trustees
will solicit practice-based research questions from their constituencies,
for communication by staff to the Scholars Network.
iii. As MNF*s eyes and ears, Trustees will communicate to staff
information about new and planned studies that have sector-wide
implications, so that the information can be shared widely.

The committee also identified the need to develop a preamble to the Goals and
Objectives which would articulate the implied relationship between trustees, their own
organization's members, and MNF. Further, the committee agreed to review MNF's
mission statement to determine if further clarification is necessary in light of the
newly adopted Goals and Objectives.
Due to time constraints, the committee postponed the discussion of the Board
Administrative Goals.
6.

Review of the Membership Campaign: M. Lewis reported Kellogg will be printing
the membership brochure in early January. The campaign will begin with a
solicitation for subscribers, to be followed by solicitation of Network Associates in
the spring. This will enable MNF to use the success of GGIV and the public policy
summit as effective marketing tools.

7.

Schedule 1992 Executive Committee Meetings: The committee set dates for a spring
meeting on April 15 from 9:30 to 12:00, and for a fall meeting on September 23
from 9:30 to 12:00.

8.

Executive Session: The committee went into executive session, to prepare the
officers for the executive performance review following the meeting.

�9.

Adjournment: The meeting adjourned at 5:10 p.m.
Respectfully submitted by:

Edward O. Blews, Jr., Secretary

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                <text>&lt;a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/515"&gt;Our State of Generosity collection, JCPA-04&lt;/a&gt;</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="825751">
                <text>1992-04-15</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
  </item>
</itemContainer>
