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

Index to
Tab 10 — Public Policy &amp; Program Committees

1. Public Policy Committee "Principles of Jurisdiction" (adopted at the 10/91 Annual
Meeting)
2. Outline of a White Paper Process (adopted at the 10/91 Annual Meeting)
3. Letter &amp; Response Form sent in order to locate Network Organizations willing to
join in the White Paper Process (10/92)
4. Revised DRAFT Michigan White Paper on the Nonprofit Sector — Janne Gallagher
(10/7/92)
5. BACKGROUND: Revised statement on the nonprofit sector by the National
Council of Nonprofit Associations (9/92)
6. BACKGROUND: Independent Sector's White Paper draft -- by Janne Gallagher
(8/92)

ref:[filename],[path],[bdgtcode]

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                    <text>PRINCIPLES OF JURISDICTION S CONSENSUS*
MICHIGAN NONPROFIT FORUM PUBLIC POLICY COMMITTEE

Given the wonderful diversity of the nonprofit sector, which is one of its
greatest strengths, and the importance of broad consensus and a strong
spirit of mutuality when addressing matters of public policy and public
interest, the following principles, as articulated at the Fall 1990 initial
meeting of the Board of Directors, are intended to bring focus to the work
of the Michigan Nonprofit Forum's Public Policy Committee:
I.

MATTERS OF COMMON CONCERN: The Michigan Nonprofit Forum
Public Policy Committee shall address those topics of
general concern to the entire nonprofit sector, which cut
across and are not limited to specific subdivisions or
facets of the nonprofit sector.

II.

POSITIONS OF MUTUAL INTEREST: The Public Policy Committee
.shall develop and recommend to the Board of Directors
formal positions and program initiatives (in cooperation
with the Program Committee) which dearly reflect the
mutual interests and common concern of all segments of the
nonprofit sector represented within the Michigan Nonprofit
Forum, and shall not recommend formal positions when such
broad consensus and mutuality of interest cannot be achieved.
A.

INFORMATION SHARING: The Public Policy Committee
shall serve as a clearinghouse for identification and
exchange of information on policy issues of concern to
the nonprofit sector and activities and initiatives of
the various Members of the Michigan Nonprofit Forum
which are of interest to other Forum Members.

B. PROGRAM INITIATIVES: The Public Policy Committee may
recommend to the Michigan Nonprofit Forum Board of
Directors professional development program initiatives
to serve Forum Members in the area of public policy.
III. UNANIMITY/CONSENSUS; The By-Laws of the Michigan
Nonprofit Forum (Article III, Section 7) stipulate that a
unanimous vote is required for adoption of public policy
positions by the Board of Directors; therefore, the Public
Policy Committee as a practical matter shall operate on a
principle of unanimous consensus for submitting
recommendations to the Board of Directors.
IV. PROCEDURAL ROLE: The role of the Public Policy Committee
is to serve as a working committee for discussing and
internally analyzing matters of public policy and
submitting recommendations to the Board of Directors; the
Public Policy Committee in itself does not have the
authority to adopt or announce positions or declarations.
* Adopted by Michigan Nonprofit Forum
Public Policy Committee on April 4, 1991.
EOB:bg:37.55

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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.
GOVERNING BOARD
Association oflnd*p*nd*nt
Collegia and Universities
ofMichigan
Congress of National Blade
Churches /Michigan Affiliate
Council ofMichigan
Foundations

September 29, 1992
MEMORANDUM
TO: MNF Committee Members
FROM: Maryellen J. Lewis

Council ofMichigan Urban
Leagues
Jewish Community Council

SUBJECT: My Resignation from the Forum

Michigan Association of School
A dimnistrators
Michigan Association of School
Boards
Michigan Catholic Conference
Michigan Community Action
Agency A ssociation
Michigan Community Colltgt
Association

By now you may know that I have resigned from the Michigan
Nonprofit Forum, effective October 31 1992. I enclose my letter of
resignation and my final report to the MNF trustees, for your information.
I greatly value the work we have done together, and I am confident
that you and the Forum will continue to make a difference in this state.
With best wishes for your success,

\fichigan Council for Arts and
Cultural Affairs
Michigan Ecumenical Forum
Michigan Health Council

Sincerely,

Michigan Ltagut for Human
Services
Presidents Council, State
Universities (^Michigan
United Way ofMichigan

Maryellen J. Lewis
Executive Director

AT-LARGE TRUSTEES
Richard H. Austin,Michigan
Department of State
John S. Lore, National Society
ofFu nd R airing Executives
Russell G.Mawby.
W.K. Kellogg Foundation

encl:

MJL's letter of Resignation
Report to the Executive Committee

George W. Ramnty, National
Volunteer Center
EhtabethS. Upfohn.
Kalamazoo Foundation

EXECUTIVE

DIRECTOR

Maryellen J. Lewis

ref:cms20929.mem,adm\prsl&gt;0000

�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.
GOVERNING BOARD
Association oflndtptndmnt
Colltgts and Unrv»nnti»s
ofMichigan
Congnst of National Block
Churcnts /Michigan Affiliat*

September 22, 1992
Michigan Nonprofit Forum
Board of Trustees

Council ofMichigan
Foundations

Dear Trustee;

Council of Michigan Urban
Ltaguts

I hope you read my report which I sent to you last week. I wrote it
with a special purpose in mind.

Jewish Community Council
Michigan Association of School
Administrators
Michigan Association of School
Boards

I wanted you and the other MNF Trustees to know how exciting and
important is the organization you have created over the last two years.
There is tremendous opportunity ahead, along with a great deal of work.

Michigan Catholic Confartnc*
Michigan Community Action
Agency Association
Michigan Community CoUtgt
Association
Michigan Councilfor Arts and
Cultural Affairs
Michigan Ecumenical Forum
Michigan Htalth Council
Michigan Ltagutfor Human
Sirvicss

I want you to feel confident in this young organization when you
learn that I have resigned, effective October 31. This is a difficult decision
for me, but I believe it will ultimately be good for the organization. I
enclose a copy of my letter of resignation, which I sent to Russ Mawby
today.
The matter will be on the agenda for the October 12 meeting. I look
forward to seeing you then.
Sincerely,

Pnadmnta Council, State
of Michigan
Unittd Way of Michigan
AT-LARGE TRUSTEES

Maryellen J. Lewis
Executive Director

Richard If. Austin. Michigan
Dtpartmtnt of Stats
John S. Lorm, National Socitty
of Fund Raising Executives
RusstU G.Mtzwby,
W.K. KtUogg Foundation
Giorgi if. Romnty, National
Volunteer Ctnttr
Eiaabtlh S. Upjohn.
Kalamazoo Foundation

EXECUTIVE DIRECTOR
MaiytiltnJ. Ltwis

encl:

MIL Letter of Resignation

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                    <text>National Council of Nonprofit Associations

How Government and Nonprofits
Can Strengthen and Enrich American Communities
Recommendations to the
1992 Presidential Candidates

September 13, 1992

1828 L Street, NW, Suite 505, Washington, D.C 20036 (202) 785-3208 Fax (202) 466-5722

�The goal of the National Council of Nonprofit Associations (NCNA) is to improve the effectiveness of local
nonprofit organizations by strengthening their state associations. Because they meet the needs of
thousands of front-line nonprofrts for management assistance, cost-cutting programs, advocacy, and
professional and organizational development, NCNA's members have a unique view of the challenges
facing the nonprofit sector.
NCNA's membership includes 22 statewide and regional association members, representing over 15,000
nonprofrts across the country. Directed by a small professional staff and governed by a Board of Directors
who are themselves executive directors of state associations, NCNA is financed by membership dues,
fees, and grants from the W. K. Kellogg Foundation, The Ford Foundation, the Rockefeller Brothers
Fund, and the Charles Stewart Mott Foundation.
Because of the important public role of nonprofrts as independent centers of initiative, criticism, and public
service, NCNA fully supports the rights and immunities accorded to nonprofrts and recognizes the
inherent responsibilities which are attached to them: 1) To benefit the public; 2) To be accountable to
the public for effective and efficient delivery of services; 3) To protect the sector's independent role in
the democratic process; and 4) To promote social and economic justice.
Presidential Recommendations Task Force
Bob Kardon, California Association of Nonprofrts, Chair
Deborah Buford, Nonprofit Resources. Inc. (Arkansas)
Gerald Kaufman, LaSalle University Nonprofit Management Development Center (Pennsylvania)
Peter Swords, Nonprofit Coordinating Committee of New York
Donald Tebbe, Council of Illinois Nonprofit Organizations
Alison Johnson, Connecticut Nonprofit Human Services Cabinet
Staff support provided by:
Renee Vowels, California Association of Nonprofrts
Cecelia Connerton, Council of Illinois Nonprofit Organizations
Board of Directors
Gordon Allen, Granite State Association of Nonprofrts (New Hampshire)
Ben Amos, Delaware Association of Nonprofit Agencies
Deborah Buford, Nonprofit Resources, Inc. (Arkansas)
Ron Cretaro, Connecticut Association of Residential Facilities
John Getst, private consultant
Betsy Johnson, Washington Council of Agencies, Co-Chair
Bob Kardon, California Association ofNonprofits
Gerald Kaufman, LaSalle University Nonprofit Management Development Center (Pennsylvania), Co-Chair
Bevertey L McDonald, Michigan League for Human Services
Jon Pratt, Minnesota Council of Nonprofrts
Peter Swords, Nonprofit Coordinating Committee of New York
Donald Tebbe, Council of Illinois Nonprofit Organizations, Secretary
Dan Wallach, Colorado Association of Nonprofit Organizations, Treasurer
Barbara Green, Executive Director
National Council of Nonprofit Associations
1828 L Street, N.W., Suite 505 • Washington, DC 20036
(202) 785-3208 • (202) 466-5722 Fax
For additional information or comments about this paper, please call
Donald Tebbe at (217) 753-2466 or Robert Kardon at (408) 458-2466.
Printed on recycled paper.

�Introduction

Nonprofits—Private Investment In the Public Good

[Nonprofit organizations are private, nongovernmental corporations that are exempt from federal
income tax on the basis that their work serves the public interest As such, any surpluses (profits)
are deployed for the organization's exempt purposes rather than being distributed to private
individuals (such as when a for-profit corporation pays dividends to stockholders). For the
purposes of this paper, nonprofit means a tax-exempt organization that is recognized under
501(c)(3) and 501(c)(4) of the Internal Revenue Code.]
The one million nonprofits in this country employ more civilians than do state and federal
government combined, receive volunteer services from half of this country's adults, create a venue
for direct involvement in solving civic problems, and touch the entire nation through their
programs and advocacy efforts.
The nonprofit sector enriches and strengthens American communities. While volunteers provide
enormous support and leadership for this sector, the sector depends upon private contributions and
government funding to make its work possible. While government action can influence
volunteerism, its actions have a far more profound impact on charitable giving. Moreover,
government's ability to fund social and other programs is unparalleled.
The public and its government at all levels increasingly rely on nonprofits to offer essential social
services and other programs more effectively and efficiently than government bureaucracy can. At
the same time, government policy and regulation make it increasingly difficult for nonprofits to
meet the challenge. The nonprofit sector is home to our society's social and cultural entrepreneurs.
Yet much of the sector's capacity for innovation has been dampened as a consequence of
government policy.
We believe that this era of severely constrained government resources and the gravity of our social
problems demand greater collaboration, more effective government contracting, and a deeper
understanding of the consequences of government's actions affecting the nonprofit sector.

National Council of Nonprofit Associations

�Recommendations

Appoint a Commission on the Impact of Government Funding on
Community Fabric
We propose the appointment of a commission to study the impact of federal programs on the social
fabric of our communities. We propose the commission's charge include the following:
•

Consolidation of fragmented federal categorical programs.

•

Proposal of social policy planning mechanisms that apply systems-level planning to social
problems.

•

Holistic community-based solutions that would serve the whole client

•

Government grant and contract mechanisms that support the community social fabric.

Commission appointments should consist of practitioners from community-based nonprofits,
social policy advisors from academia, leaders from private philanthropy, and clients of social
programs.
Related Recommendations
•

Require that any new rule-making process pertaining to grants include an analysis of the
impact on the grant recipient

•

Remove barriers that discourage the use of grant funds to acquire real estate, thus forcing
nonprofits into the rental market, which is usually more expensive.

•

Promote government procurement relationships with nonprofits that are equitable and that
preserve the organizational integrity of the nonprofit For example, the Officejof
Management and Budget's Circulars A-122 and A-133 are extremely discriminatory against
nonprofits.

•

Set an example for all levels of government by including community-based nonprofit
representatives on boards, commissions, and panels at the federal level.

Host White House Conferences on Nonprofit Initiative
•

Use the White House Conferences to focus attention on achieving solutions to a few key
social issues and forge a stronger partnership between nonprofits and government Use
them as opportunities to recognize the value of philanthropy, charity, and volunteering, and
to foster a better understanding of this vast part of our social fabric that is the nonprofit
sector. Topics addressed at the Conferences might include:
••

Reexamination of tax policy with respect to nonprofits.

••

Communities' role in deciding what services are provided under government
contract

National Council of Nonprofit Associations

�Recommendations

•

••

Accountability—helping government better regulate nonprofits, while filing fewer
forms.

••

Reexamination of government funding mechanisms, such as block grants.

••

How to recognize the unique role of the nonprofit sector and how to resist the
temptation to ask nonprofits to overextend their capacity in an attempt to provide
basic services that only government, through its taxing powers, is capable of
providing.

••

How government can recognize that the strength of our society is due in large part
to the tripartite nature of our nation's institutional infrastructure: business,
government, and nonprofits.

Encourage the states to hold state-level conferences to precede the White House
Conferences to promote similar recognition within the states and to identify issues that
should be brought to the White House Conferences.

Create Incentives for Private Investment for the Public Good

•

Explore the development of incentives that will stabilize and increase the declining
percentage of private income being invested in charitable and philanthropic efforts. (See
Figure 1.)

•

Restore deductibility for charitable contributions made by non-itemizing taxpayers. Each
$1.00 in deductions generates at least $1.23 in charitable gifts.

•
•

Eliminate the 3 percent floor on deductions for high-income taxpayers.
Permanently exempt all gifts of appreciated property from the alternative minimum tax (if
Congress does not do so before its final recess in 1992).

Protect the Independent, Democratic Voice of the Nonprofit Sector

•

Maintain nonprofit access to reduced mail rates for advocacy mailings that inform citizens
about issues.

•

Encourage open public dialogue by less restrictive IRS regulatory treatment of lobbying by
nonprofits, and develop a proactive education program to dispel notions of a prohibition
against lobbying.

•

Preserve nonprofit bulk mail rates. This action would also help maintain the current level
of $35 billion in charitable contributions received through direct mail solicitation.

National Council of Nonprofit Associations

3

�Rationale

Nonprofits Enrich and Strengthen Our Democracy

Nonprofits are essential for the health of our democracy. Emerging democracies around the world
are looking to the nonprofit sector in the U.S. because they see that such an independent,
nongovernmental infrastructure is critical to fostering democracy.
Despite cynicism about many institutions in this country, the public is increasingly turning to
nonprofit organizations for safe haven, service, information, and leadership. Recent Gallup polls
reveal that nonprofits are generally viewed as credible, helpful, accessible service providers. A
1991 Nonprofit Times survey found that a majority of respondents perceive nonprofits as being
more efficient than government in utilizing funds.
Above all, the public still believes community involvement offers an opportunity to make a
difference. According to a 1991 report prepared for the Kettering Foundation, Citizens and
Politics: A View from Main Street: "The so-called 'apathy argument' falls fully on its face when
one discovers that there are pockets of public life in which citizens are acting to improve their
communities. Indeed, from this research, we find Americans hold a keen desire to act in the public
arena."
Whether it's working with low-income children, environmental groups, community improvement
organizations, or many other nonprofit efforts, citizens are involved in public life. NCNA agrees
with social commentators who say this involvement has replaced the jaded world of politics in their
lives: Citizens learn and talk about policy issues; they have a sense of control; they see a personal
stake in their actions; they are involved in helping their community. Yet these same people do not
consider their actions political in nature.
"As citizens talked about their community involvement, they merely described in positive terms the
characteristics they had assigned negatively to politics: that it is possible to be heard and valued in
public debate; that it is possible to help bring about change; that it is possible to feel a sense of
efficacy in managing, and improving, public affairs." (Citizens and Politics: A View from Main
Street.)
In his nineteenth-century commentaries on America, Alexis de Tocqueville spoke of the American
phenomenon of people forming associations to solve community problems. The nonprofit sector
retains that vitality today.
We believe that by virtue of the esteem in which nonprofits are held, their involvement in all parts
of our communities, and their experience with major social issues, the nonprofit sector can provide
a forum for a renewal of faith in the democratic process.
Nonprofits Enrich and Strengthen Our Communities

Nonprofits are essential for the social and cultural health of every American community. The
contributions of the nonprofit sector are diverse, significant, and indispensable. As an important

National Council of Nonprofit Associations

�Rationale
and dynamic part of our social fabric, nonprofits provide a mechanism for responsible citizens to
create constructive solutions to their communities' problems.
The nonprofit sector includes among others:
•

Human service organizations that battle the causes and consequences of poverty, disease,
illiteracy, and myriad other social ills;

•

Cultural organizations that inspire and educate;

•

Museums that connect us with the past and with other cultures;

•

Historic preservation groups that remind us of the foundations of our society;

•

Arts groups that connect us with grace, beauty, and ideas that challenge and enable our society;

•

Educational institutions that prepare succeeding generations to face the future and provide
research discoveries to create new technology;

•

Neighborhood-based development organizations that stabilize neighborhoods and improve
housing;

•

Advocacy groups that challenge us to strive for a society that is better than what we have come
to expect; and

•

Private foundations that provide the funds that encourage and fuel creative nonprofit initiative.

Yale economist Gabriel Rudney has calculated that together American nonprofits in 1980 had
expenditures exceeding the budgets of all but seven national governments in the world. Studies by
Independent Sector, a national umbrella group for nonprofits and foundations, have described the
impact of the nonprofit sector on the social, economic, and political life of the United States. The
one million nonprofits in this country touch the lives of most Americans—as beneficiaries,
patrons, employees, volunteers, and contributors.
•

Nonprofits represented 7.1 percent of the Gross National Product in 1990.

•

Nonprofit organizations employed 8.7 million workers in 1990, about 6.3 percent of the
national workforce.

•

In 1989,98.4 million Americans aged 18 or older volunteered with nonprofit organizations, a
figure which represents over half the U.S. adult population.

•

The dollar value of that volunteer time, 20.5 billion hours in 1989, was estimated at $ 170
billion.

•

In 1991, individuals, corporations, and foundations contributed $124.77 billion to nonprofits.

How Government Affects

Nonprofits

There is an increasing tension between the nonprofit sector and government in today's world. The
two sectors have changed from having a collaborative relationship to often having an antagonistic
National Council of Nonprofit Associations

5

�Rationale
one. "Somehow, government has forgotten that it itself is largely responsible for the growth of the
nonprofit sector, due to its increasing reliance on the sector for provision of services. And
somehow, both government and society generally have lost sight of the interconnectedness
between the two sectors. Most importantly, they have overlooked the vital role that nonprofit
organizations play in meeting community needs." (The Nonprofit Policy Agenda:
Recommendations for State and Local Action, The Union Institute, May 1992.)
Starting in the early 1980s, government encountered fiscal strain and began to backpedal from its
role of community supporter, leaving the nonprofit sector with the role, but not the funds.
Government funding has not kept pace with the growing demand for services; instead, government
has further burdened the sector with new regulations.
Ironically, as government points to the nonprofit sector as the savior of America's basic values and
quality of life, its actions have actually undermined the ability of the sector to strengthen and enrich
our communities.
Government Tax Policy Influences Private Investment In the Public Good
Federal income tax policy influences charitable giving. Since the institution of the federal income
tax, tax policy has included incentives to encourage charitable giving.
The Tax Reform Act of 1986 greatly reduced these incentives for all taxpayers in all income
groups. The flattening of the tax structure and the lowering of tax rates increased the cost of all
charitable gifts. Moreover, potential gifts of appreciated property were threatened by alternative
minimum tax, and deducibility was eliminated for gifts by non-itemizers. According to Internal
Revenue Service data, contributions reported on individual income tax returns dropped from 2.17
percent of adjusted gross income in 1986 to 1.67 percent in 1990. Similarly, contributions
reported on corporate income tax returns dropped from 1.92 percent of net income in 1986 to 1.18
percent in 1988. (See Figure 1.)
The Internal Revenue Service also reports that the number of taxpayers reporting incomes of more
than a million dollars increased from 4,300 in 1980 to 59,945 in 1989, while average annual
giving for this group decreased from $207,089 to $83,929 during the same period. (See Figure
2.)
In addition, a further impediment to charitable giving was imposed in 1990 by the 3 percent floor
on deductions. It is more efficient for government to leverage contributions of private income for
public purposes through tax incentives than it is to raise those funds directly through taxes since
each $1.00 in tax incentives leverages $1.23 in chartitable contributions.

National Council of Nonprofit Associations

6

�Rationale

I

Impact of Tax Reform Act of 1986 on Contributions I
'•" ' , ;.::/: - • ; . . . ^:;:x:;:;V:i^:S:;:::^

1988: Down 23% for Individuals
and 39% for Corporations over 19G

I
2.00% jh"-

.^AT^Xr"

I
•
&gt;^ir
llj' j ^
I.;.-. S3
'"' "rt C /"\/ "

j:

•

Individual*

r,:'-:-:-'-

!;.

n

Corporate**

i
i

V-^" ^*;
ODNTRIBtrnONS REPORTE^ON TAX Hb I UHNS
11; •Imfvidual: As a percent of Adjusted Gross Income
: ; ™::::.;' :' : •'Corporate: As a percent of Net Income (Source: IRS)

1985

1986

1988

1987

£y':^::::x-:*y:::-&gt;^

National Council of Nonprofit Associations

1989

1990

Rgure 1

�Rationale

Number of Wealthy Grow - Contributions Decline
225,000
1,400% inciMM in millionaires
60% decrease in average annual giving

•Number of Wealthy*
• Average Annual
Giving
mHfion to

1980

**IRS (Soun»: IRS

1985

1989

;Figure 2

Nonprofits and Federal Social Programs
The riots in Los Angeles, the homelessness that we see every day in the streets of our major cities,
the lines at our soup kitchens, and the alarming school dropout rates should tell us that something
is not working with our current social policies.
Tremendous numbers of people are being served by our social welfare programs, yet there is a
popular perception that we are simply throwing money at problems. To an extent, this is true.
Categorical funding, with its rifle-shot approach to problems and its excessive focus on rules and
regulations, does not give the taxpayer a dollar's worth of solution for a dollar's worth of
investment
Over the years, categorical programs have been proposed, implemented, and funded without any
real coordination or direction toward some overall outcomes or the larger context of the lives of the
people these programs are designed to serve. As programs mature, they have become encrusted
with rules, regulations, and audit requirements that blunt the thrust of the original programs.
The impulses behind these programs have been honorable and the intentions have been the best,
but after twenty years of sizable government involvement in social programs, the country has been
left with a patchwork of programs that view individual participants as clients, programs that are not
focused on outcomes, and programs that are designed to fit the structure and systems of
government rather than the needs of the people they were designed to serve.

National Council of Nonprofit Associations

�Rationale

Each year we spin the wheel of misfortune and a new problem is isolated, a new client base is
created, new rules are written, new bureaucracy is created, a new set of statistics is gathered, and a
new cycle of program justification begins. These programs are a result of linear thinking and
compartmentalization for the convenience of government rather than for the sake of serving the
whole client.
The country has a well-established infrastructure of community-based organizations that have a
long history of working with government. But this community infrastructure is being hampered
by a government funding system that operates under the old paradigm of viewing problems and
clients in isolation.
This convergence of issues, we believe, calls for a major reexamination of the way that
government funds social programs. For example, Head Start works because it takes a holistic
approach to the needs of children. The child is not the Head Start client; rather the whole family
unit is the client
We need to start looking at people in need in a larger context—in the context of family, in the
context of neighborhood, and in the context of community. We believe that unless we take an
integrated view of community problems, the social fabric of our society will continue to unravel.
It is time for government to apply the best systems thinking toward solving problems and the best
information technology to simplify the bureaucracy needed to manage these programs.
Conclusion
The National Council of Nonprofit Associations believes that the gravity of our social conditions
and the state of our economy call for greater collaboration between government and the nonprofit
sector, call for a renewal of government's commitment to use tax policy to leverage private
contributions, and call for government and nonprofits to develop systemic solutions to social
problems.
NCNA stands ready to work with the presidential administration to expand and enhance the ability
of nonprofits to carry out this important work.

National Council of Nonprofit Associations

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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.

Second Annual Interim Report
to the
W.K. Kellogg Foundation
on a
Three Year Start-Up Grant T1990-1994)
SUMMARY
With the completion of its second year, the Michigan Nonprofit Forum now has some
history of full operations and a much more detailed plan for its future development. The alliance
is still unfolding, but its first two years of successes, products and challenges have clarified its
potential, strengths and limitations. This report will trace the second year's work and the plan
for the final grant year in 1993-94.
At the suggestion of MNF trustees and outside evaluator, this report follows the outline
of the Guiding Principles adopted by trustees at their October 1991 Annual Meeting. The
Guiding Principles now frame the planning process at both the board and staff levels, so they
represent useful standards for assessing our progress.
MNF Guiding Principles:
1. 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.
MNF Initiatives;
Grantmakers/Grantseekers Seminar
Campaign for Volunteerism
Give 5 Campaign
Plans for Briefings on volunteerism &amp; philanthropy
Clearinghouse role
2. The service of the nonprofit sector to the public depends on an interactive
partnership between service providers, flinders, policymakers, and the public. The
Michigan nonprofit community should promote constructive dialogue among all these
parties.

�MNF Initiatives;
Summit
White Paper and plans of MNF organizational members
Plans for using the Summit Tapes &amp; White paper for regional/local dialogues
Media and public awareness: Completed work and plans
Clearinghouse role
3. 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.
MNF Initiatives:
Scholars Network
Planning for December 1992 Research Conference
Assistance to researchers
Reporting on existing research, dissemination of information
MNF research initiative on volunteerism &amp; philanthropy in Michigan
Clearinghouse role
MNF's role in the National dialogue
4. Michigan's nonprofit sector should define and aspire to the highest standards of
ethics, efficiency, and accountability, while preserving its historic and essential
independence.
MNF Initiatives:
Network of nonprofit service providers
Resource Guide for management assistance to nonprofits
Assistance to colleges &amp; universities on training &amp; professional assistance for
nonprofit professionals
Directory &amp; displays on Michigan education programs for nonprofits
Assistance to ACCESS on a Michigan nonprofit job bank
Clearinghouse responses on individual requests
Planning for a Michigan Nonprofit Accountability Project
5. 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.
MNF Initiatives:
White Paper
Tax Incentive Study Group
Future Summits

�6. The Michigan nonprofit sector should take an active role in shaping regulations and
rulings that define clear, consistent interpretations and applications for purposes of tax
exemption.
MNF Initiatives;
MNF activities concerning national public policy issues
Workshop on advocacy at the Grantmakers/Grantseekers Seminar
Speakers at the Public Policy Committee meetings

�Synopsis of 1991-92 Activities and
92-93 Plans
At the suggestion of MNF's Program Officer at
the W.K. Kellogg Foundation, Dr. Joel Orosz,
the following report is prepared in synopsis form.
As an alliance in the process of creating itself,
all these initiatives are in process. Where tangible
products have already resulted, they are noted.
1. Promoting Voluntary Giving and Service: MNF Initiatives
a. Grantmakers/Grantseekers Seminar. The fourth annual Grantmakers/Grantseekers Seminar
was conducted on April 24 in Dearborn MI, attended by 725 nonprofit professionals. The event
is designed annually by an MNF committee made up of flinders, fundraisers and nonprofit
leaders from a wide range of fields. This year's Seminar included programs addressing every
Guiding Principle:
~ It kicked off the Michigan Year of the Volunteer with a special panel and press
conference, and offered two special sessions on fundraising.
~ It offered a panel of media representatives which was lauded by participants.
— It presented new research, and hosted the third meeting of the Scholars Network of
researchers on Michigan's nonprofit sector
— It offered hosted displays on Michigan university, college and nonprofit programs for
nonprofit professionals and presented a special session on evaluation, which was
heavily attended.
— It presented a strongly-evaluated luncheon program on national and state issues facing
the nonprofit sector, and offered a workshop on advocacy by nonprofits.
The opening address by James Joseph, President of the Council on Foundations in Washington,
has been published (appended), as were the tapes. Additional publications are now available as
well (list appended).
b. Campaign for Volunteerism. MNF hosted the planning committee for the Campaign for
Volunteerism for 18 months, and hosted its kickoff at the Grantmakers/Grantseekers Seminar.
In addition, MNF continues to provide assistance to the Campaign through its member
networks, in the following ways:
-- At the request of the Michigan Association of School Boards (MAS A), MNF drafted
a resolution in support of volunteering through the public schools. As a result of MNF
networking, MASB leadership has met with the Volunteer Centers of Michigan develop

�a strategy for linking local school districts with volunteer centers. MNF is also helping
to conduct a planning process between MASB, the VCM, the Michigan School
Volunteer Programs and other participants in the Campaign to develop collaborative
programs for volunteerism in schools.
— As a result of their participation since the beginning of the Campaign, the President's
Council of State Universities of Michigan has passed a resolution in full support of the
Campaign, and is now working with MNF to explore ways they can go beyond even
their current strong commitment, to find ways to assist the volunteer centers in their
respective communities.
~ As a result of their participation in the Campaign Committee, the Michigan Chapters
of the National Society of Fund Raising Executives has committed to match every
interested local volunteer center with a pro bono fundraising expert. This initiative is
now in the hands of the Volunteer Centers of Michigan.
~ As a result of publicity surrounding the Campaign, MNF receives several calls each
week about how a company, an organization or an individual can become involved.
These calls are brokered to specific agencies involved in the campaign that can best
assist them.
— As a direct result of their work on the Campaign and MNF's encouragement and
assistance, MNF student interns Terry Langston and Darin Day have launched a telethon
on volunteering, in collaboration with the Lansing Voluntary Action Center, Capitol
Area United Way and local media.
~ In collaboration with the Volunteer Centers of Michigan, MNF is assisting
communities which want to establish a leadership coalition to design a community-wide
commitment and recognition of volunteering.
~ In collaboration with the Volunteer Centers of Michigan, MNF is assisting existing
volunteer centers in ways they request, particularly by working through member
networks to encourage key leaders to recognize and support volunteer centers in their
work.
c. Give 5 Campaign. This initiative is being planned for 1993-94, to be kicked off at
Grantmakers/Grantseekers V on May 14, 1993. Paula Schoecraft has been invited to present at
GGV, and to assist MNF in the planning process. Ted Taylor, chair of the national Give 5
Campaign through the Independent Sector in Washington, has offered to be helpful.
d. Plans for Briefings on Volunteerism and Philanthropy. As its contribution to the Campaign,
MNF is planning for discussions among leaders on issues related to volunteerism and
philanthropy. These include, for example, the Legislative Briefing (described below under the
White Paper). Other discussions will be attached to ongoing events, for most efficient use of
staff time. For example, in cooperation with the Volunteer Centers of Michigan, a Briefing is

�being developed to discuss corporate philanthropy, in connection with a similar event planned
by the Points of Light Foundation in Detroit in October. MNF also will report on the
Campaign's broad developments in its newsletter. Issue papers (e.g., on corporate volunteer
programs, designed for the lay reader) are also in the works for 1992-93.

e. Clearinghouse Role: Calls for information on volunteering are increasing as the Campaign
gains momentum. In addition to referrals, MNF is now collecting and, in a few cases, writing
Fact Sheets for efficient distribution of information. In a few cases (such as corporate volunteer
councils and community leadership coalitions), special texts are being developed for MNF and
its partners by a consultant to the Points of Light Foundation, thanks to a grant from the
Kellogg Foundation supporting their work on this Campaign.

2. Promoting the Partnership between the Nonprofit Sector, Government and Business:
MNF Initiatives
a. First Summit: In February, 1992, MNF conducted its first Summit, bringing together a panel
of leaders from government, business and the nonprofit sector to discuss the rapidly changing
nature of their partnership, and the challenges and opportunities we face. The Summit was
video-taped (editing now in process), and the discussion paper and tape excerpts will be
published shortly (awaiting the introduction and preface by MNF trustees). A draft of the paper
is appended. A special board subcommittee is developing the strategy for disseminating the
edited tape for discussion by community and subsector groups across the state. For example,
the Michigan Council for Arts and Cultural Affairs is planning with MNF to include these
themes in several arts meetings in 1992-93.
b. White Paper: A discussion draft for the Michigan White Paper on the Nonprofit Sector has
been developed, and the first discussion is being planned for mid-September, with follow-ups
planned for October, December and January. The MNF Public Policy and Program Committees
are now developing a strategy for disseminating the draft for discussion by subsector leaders;
for example, the United Way of Michigan has requested the draft for discussion and input from
local United Way executives. Following these internal reviews, a revised paper will be the focus
of "hearings" (yet to be specified by the Committees — on the agenda for the September
meeting). Once a final White Paper is adopted, it will be a tool for MNF educational
roundtables and programs through MNF member organizations.
c. Media and Public Awareness. As a follow-up to the strong program at the
Grantmakers/Grantseekers Seminar, Collette Murray from Henry Ford Health System (and a
two-year member of the GGS Program Committee) is working with MNF to plan a series of
informal discussions with media and nonprofit leaders, to develop an agenda for future MNF
programs. MNF also has become a resource for the press.
d. Clearinghouse Role: MNF receives several requests each month from reporters on a wide
range of nonprofit issues such as volunteerism, economic impact, salaries, and individual giving.

�Callers are given available information and are referred to knowledgeable persons who can help
further.

3. Research and Information Sharing; MNF Initiatives
a Scholars Network: MNF's Scholar's Network has grown to more than 360 researchers and
educators, mainly in Michigan institutions of higher education. The third meeting of some
members of this network was hosted at the Grantmakers/Grantseekers Seminar in May.
b. First Michigan Research Conference on the Nonprofit Sector: MNF is collaborating with
Mark Wilson with the Nonprofit Michigan Project/MSU and David Stevenson at Wayne State,
to design the first Michigan Research Conference on the nonprofit sector on December 9 &amp; 10
in Detroit. This will be an international conference (i.e., including Canada comparative
research) focused on Michigan issues. MNF will sponsor the author of the Michigan White
Paper, Janne Gallagher, who will present the concepts and process of the White Paper and tie its
issues to the research agenda and needs of practice. In addition, MNF is preparing a
compendium of Michigan research projects, with the generous assistance of the colleges and
universities of the state.
c. Assistance to Researchers: MNF has provided guidance and referrals to many researchers.
Increasingly, scholars request mailing lists for their research, as well as contacts for related
research. The compendium of ongoing research will make responses more efficient.
d. Reporting on Existing Research &amp; Dissemination of Information: The first MNF newsletter
included an article on The State of Nonprofit Michigan by Mark Wilson, funded by the Kellogg
Foundation. (A copy of the newsletter is appended.) In addition, a regular newsletter column
will be devoted to research, presented as tools for practitioners, communities and policymakers.
e. Research Initiative on Michigan's Voluntary Sector: At the request of the MSU Institute of
Public Policy and Social Research (EPPSR) and with the help of Dr. Mark Wilson, MNF
suggested a battery of questions for the IPPSR opinions survey, to collect the first state data on
giving and volunteering. (The Independent Sector's questionnaire for their massive national
survey formed the basis for the IPPSR questions.) The results will be reported in the fall.
f. Clearinghouse Role: Research results form the basis for many clearinghouse responses,
particularly on demographics of giving and volunteering. Several MNF Fact Sheets are in the
works for 1992-93, to simplify the information-sharing process.
g. MNF's Role in the National Dialogue: The purpose of MNF's information-gathering and
sharing is to promote greater public awareness and understanding. MNF is not alone in this
work, and in fact is new to the scene where much progress has been made nationally. MNF has
recently been included in national meetings on these issues, including the summit at Wingspread
last September on state policy and the nonprofit sector, and the first meeting of the National

�Accountability Project in Washington in May. Of interest also is the fact that a representative of
the Clinton Campaign called just prior to the Democratic National Convention, to invite MNF
to participate in the design of a platform on the nonprofit sector. (Because of the short notice,
no representative of MNF could attend.)

4. Nonprofit Standards and Efficiency: MNF Initiatives
a. Network of Nonprofit Service Providers: Although this was on MNF's agenda since its
earliest days, the trustees determined that it could not be sponsored/managed within MNF's
limited staff resources. So, at the request of the board, MNF sought a partner in this effort, so
that our networks would support but not staff the effort. With their approval, MNF discussed
the plan with the Michigan Nonprofit Management Institute in late fall. The first meeting of a
small group of service providers was conducted in June, and MNF has since alerted its entire
network of service providers (over 300) of this opportunity. Under discussion by the group is a
composite calendar and ways to develop collaborative projects. The next meeting is scheduled
for August 18 at the Direction Center in Grand Rapids.
b. Resource Guide: In partnership with the Accounting Aid Society, MNF has compiled an
updated resource directory of management service providers in/for the nonprofit sector. This
guide will be published in the fall.
c. Assistance to Colleges &amp; Universities. MNF continues to network with colleges and
universities, to promote increasingly diverse and accessible programs for nonprofit professional
development. Most recently, for example, the MNF executive director responded to a request
from the president of Lawrence Technological University about developing training programs
for nonprofit professionals in the use of new management technologies; and to the president of
Jackson Community College (president of the MI Association of Community Colleges and an
MNF trustee), who will convene a meeting of presidents to explore how the community college
system can serve as a delivery system for management assistance to nonprofits. While this is not
an extensive use of MNF staff time, it can have significant impact on the support structure in
Michigan for nonprofit professionals.
d. Directory &amp; Displays: As part of its information collection on research, MNF is also
compiling a related summary of current and emerging degree programs, which will be
distributed at the December research conference. All programs were invited to display at the
Grantmakers/Grantseekers Seminar, and several more requested to be included next year.
e. Assistance to ACCESS on a Michigan Job Bank: MNF mailed information statewide in
March on the Kellogg-funded job bank on the nonprofit sector, and included the information in
its first newsletter. Updates are planned for the current and future newsletters. MNF is also
assisting ACCESS in its evaluation process.

�f. Clearinghouse Responses: A large number of calls request specific management assistance,
which are referred (e.g., to the Accounting Aid Society and NSFRE). Fact Sheets are in the
works to simplify this process.
g. Plans for a Michigan Nonprofit Accountability Project. The MNF Program and Public
Policy Committees have discussed a special initiative, to use the White Paper and Summit as
vehicles for increasing attention and enlightened action on accountability issues. This is on the
agenda for the September meeting.

5. The Philosophy of Tax Exemption; MNF Initiatives
a. White Paper: The White Paper (described above) is being designed by a board task force as
the basis for informed action to renew the awareness of nonprofit professionals, communities
and policymakers about the philosophy and tradition of tax-exemption, and its implications for
current debates. The draft discussion paper is appended.
b. Tax Incentive Study Group: In response to a legislative mandate, MNF trustees Dorothy
Johnson, President of the Council of Michigan Foundations, and Robert Ivory, President of the
United Way of Michigan, are leading a study group to look at the impact of special tax
treatment of some nonprofits on charitable giving and on the state budget. This study group has
met once and has targeted November for a "think piece" for discussion purposes.
c. Future Summits: Following the successful Summit I in February, the MNF Public Policy and
Program Committees have determined that the Summit will be an annual event, preceded by
smaller discussions on smaller issues to shape the agenda, and followed by regional and
subsector dialogues to disseminate the process. The next Summit is planned for early March,
and a board task force is now developing the plan.

6. Public Policy; MNF Initiatives
a. MNF Activities Concerning National Issues: As a result of positions taken on several crosssector issues last year, MNF's Public Policy and Program Committees authorized the release of
information on advocacy to members, other nonprofit professionals, and to elected officials on
these issues:
— Proposed increases in the postal rate
— The deducibility of Appreciated Property
— The new accounting standards proposed by the Financial Accounting Standards Board
In addition, trustees and staff are tracking other key issues, such as the IRS tax exemption for
non-itemizers, the Michigan ruling taxing meals at nonprofit events (particularly fundraisers),
and local debates concerning property taxes for nonprofits.

�b. Workshop on Advocacy: Because of the increasing importance for nonprofits to have a
voice on public policies that affect them and the service of their missions, MNFs GGS Program
Committee included a workshop by the Alliance for Justice at the Grantmakers/Grantseekers
Seminar this year. The results were so well-received that the committee likely will build on this
theme in the nature.
Interim Report
on
Management and Organizational Issues

In addition to these significant program accomplishments and plans, MNF has made
important changes in its management and structure, which result in both opportunity and
challenge.
Diversified Funding: In the past year, MNF has diversified its funding base, primarily through
small grants and contributions for the Campaign for Volunteerism and the
Grantmakers/Grantseekers Seminar. (A complete list of donors is attached.) This will be a
more pressing challenge in Year 3, when a much larger portion of MNF's budget must be
attracted from non-Kellogg sources, and in anticipation of the end of the grant.
Membership Campaign. In March, MNF began its first membership drive. (A list of
organizational Associate Members is attached.) We are currently expanding that drive to recruit
Network Associate Members, a category for organizations which themselves represent
networks of nonprofits. This new challenge represents major administrative changes, and will
require much more extensive communications, which has been a weakness to date.
Expanded Staff: In addition to the new staff person added July 1, MNF has expanded to include
5 student interns, working on the Campaign for Volunteerism and the various communication
functions (such as the newsletter and expanding the database of nonprofit contacts). This poses
some space problems, but is largely a very positive development for the Forum. Interns now
come from Michigan State University, Lansing Community College, Western Michigan University
and Kalamazoo College.

10

�APPENDICES

1. MNF Issue Paper #1 by James Joseph
2. List of MNF Publications and Tapes
3. MASS Resolution in Support of the Campaign for Volunteerism
4. Summit Discussion Paper by Robert L. Payton
5. Discussion Paper for the Michigan White Paper on the Nonprofit
Sector, by Janne Gallagher
6. MNF Newsletter
7. Roster of MNF Donors and Associate Members

ref:8\5\92,annipt92.txtgmt/kel,0100

11

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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.

Board of Trustees
Statement of Principles
(Adopted November, 1990)
As members of the policy-making body of the Michigan Nonprofit Forum, we commit ourselves to be
guided in our deliberations by the Forum's mission:
to promote the awareness and effectiveness of
Michigan's nonprofit sector, and to advance the cause
of voluntarism and philanthropy in the state.
We recognize the great diversity of the sector and the wide range of stakeholders that the Forum
proposes to engage in this mission: nonprofit organizations and professionals, flinders, educators and
researchers concerned with philanthropy and voluntarism, policymakers and civic leaders, the media, the
public sector as it relates to philanthropy and voluntarism, volunteers, and other concerned citizens and
contributors.
Because of this great diversity, we commit ourselves to seeking common ground and to building
bridges that will benefit the Public Good through collaboration and capacity-building. Although some
Forum initiatives that we choose may not involve the entire sector and all its stakeholders, as a whole the
Forum agenda will be designed to achieve ever greater awareness, effectiveness and informed support of
Michigan's nonprofit sector and voluntary community.
In particular, we commit ourselves to these OPERATING PRINCIPLES:
— We will distinguish carefully in the activities of the Forum between initiatives that serve the
Forum's broad mission and those that would serve only proprietary interests which are more
appropriately addressed by our individual organizations or associations.
— We will acknowledge diversity by recognizing the variety of circumstances of Members and by
incorporating those differences into the decision-making process.
— We will seek as a Board to operate from a principle of consensus and collaborative action
through the Forum.
— We will seek and be guided by the best information on Michigan's nonprofit sector, philanthropy
and voluntarism, particularly in areas not represented on the Board.
— Since this Board does not claim to be a "representative body" (and recognizes that
"representativeness" is not a realistic goal), we will seek to achieve the greatest scope possible in
our Board membership and to secure much greater, diverse input through each of our
organizational networks.
ref:princpls.txt,cm\bdU 1/90,0100

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          </element>
          <element elementId="42">
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            <name>Type</name>
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          <element elementId="44">
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          <element elementId="45">
            <name>Publisher</name>
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            <elementTextContainer>
              <elementText elementTextId="723344">
                <text>Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49607</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="47">
            <name>Rights</name>
            <description>Information about rights held in and over the resource</description>
            <elementTextContainer>
              <elementText elementTextId="723345">
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          <element elementId="48">
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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>
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                    <text>Agenda
MNF Members of Record

Minutes of the 4/23/92 Meeting
Board Statement of Principals (11/90)
Report of the Executive Director
IRS Letter &amp; MNF List of Publications
Final Financial Statement 1991-92
Financial Statement for 1992-93 1st Quarter
Subsequent Income Received
Auditor's Report for 1991-92

Update Memo on Network Associates
Summary of Membership Campaign
Nonprofit Asn Funding Sources — National Data
•n^™^^™«^"™^^^^^^^™^^™^—™«^™^^^^^^^™^^™™—*I.^MI^^^^^^^^^^M*™B™^^^^^™

Bylaws Descriptions of Membership and Officers
Make-up of the Sector — National Data
Nominations for New Members of Governing Boari
^^^H^^Ha^HHHMmBH^^^^^^^HHaMMHK^^^^^^^^HHIMWHI^^^^^^^^^^MVIM^^^

Draft 1993 GG5 Plan
1992 GG4 Attendance Distribution
1992 Financial Statement &amp; Evaluation Report
Campaign for Volunteerism Mission Statement
List of Community Initiatives Statewide
Proposal to Mott Fdn — MNF Role in Camp Vol
Public Policy &amp; Program Committee (Index follows

Priorities Adopted by the Exec Committee 12/17/91 #.-.
Minutes of the 10/91 Annual Meeting — on Priorities

Report of the Outside Evaluator

Executive Director's Resignation Letters to
Chairman and Trustees

1991-92 Second Annual Report to the
Kellogg Foundation
1992-93 MNF Committee Lists
Planning Calendar 1992-94
Minutes of Committees since 4/23/92 Board Mtg
/STEM

�</text>
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                <elementText elementTextId="507095">
                  <text>Our State of Generosity</text>
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              </elementTextContainer>
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            <element elementId="39">
              <name>Creator</name>
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              <elementTextContainer>
                <elementText elementTextId="507096">
                  <text>Grand Valley State University. Dorothy A. Johnson Center for Philanthropy</text>
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            </element>
            <element elementId="41">
              <name>Description</name>
              <description>An account of the resource</description>
              <elementTextContainer>
                <elementText elementTextId="507097">
                  <text>Collection contains the records of four Michigan nonprofit organizations: Council of Michigan Foundations, Michigan Nonprofit Association, Michigan Community Service Commission, and the Johnson Center for Philanthropy at GVSU. The documents are compiled by the Johnson Center for Philanthropy, and records document the history of the organizations from the 1960s to the 2010s.</text>
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                  <text>1968-2014</text>
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              </elementTextContainer>
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            <element elementId="49">
              <name>Subject</name>
              <description>The topic of the resource</description>
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                </elementText>
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                </elementText>
                <elementText elementTextId="765943">
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                </elementText>
                <elementText elementTextId="765945">
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                </elementText>
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                <elementText elementTextId="765949">
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              </elementTextContainer>
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          </elementContainer>
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            <description>An unambiguous reference to the resource within a given context</description>
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          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
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            <name>Creator</name>
            <description>An entity primarily responsible for making the resource</description>
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                <text>Michigan Nonprofit Forum. Board of Trustees</text>
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          </element>
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            <name>Description</name>
            <description>An account of the resource</description>
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          <element elementId="49">
            <name>Subject</name>
            <description>The topic of the resource</description>
            <elementTextContainer>
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                <text>Dorothy A. Johnson Center for Philanthropy</text>
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                <text>Charities</text>
              </elementText>
              <elementText elementTextId="723829">
                <text>Philanthropy and Society</text>
              </elementText>
              <elementText elementTextId="723830">
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              </elementText>
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                <text>Records</text>
              </elementText>
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          </element>
          <element elementId="42">
            <name>Format</name>
            <description>The file format, physical medium, or dimensions of the resource</description>
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              <elementText elementTextId="723835">
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            <name>Type</name>
            <description>The nature or genre of the resource</description>
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          <element elementId="44">
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          </element>
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          </element>
          <element elementId="47">
            <name>Rights</name>
            <description>Information about rights held in and over the resource</description>
            <elementTextContainer>
              <elementText elementTextId="723839">
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            </elementTextContainer>
          </element>
          <element elementId="48">
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            <description>A related resource from which the described resource is derived</description>
            <elementTextContainer>
              <elementText elementTextId="723840">
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              </elementText>
            </elementTextContainer>
          </element>
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            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
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                <elementTextContainer>
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                    <text>MICIDGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICWGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
All alliallce to promoU giving, volunleering and a strong, effective nonprofU sector In Mkhigan.

Tw«eYear Plannin&amp; Calendar
&lt;Reyised 9/24/92)

AUGUST

OCT

1 -- 9:00 to 12:00
14 - 9:30 to 2:00
21 -- 12:00 to 2:00
. 22 -- 9:00 to 11:00
22 -- 12:30 to 2:30

Finance Committee
(Bob Ivory's Office)
Executive Committee
(KC: Red Cedar B)
CampVol Leadership Summit\Detroit (Renaissance Club)
Tax Credit Task Force
(Library of MI)
Membership Committee

17 -- 9:00 to 10:00
18 -- 1:00 to 3:00
19-23
25 -- 12:00 to 2:00
26- 10:00 to 1:00
27 -- 9:30 to 12:00

GG5 Co-Chairs Conference Call
MSOnet planning meeting
(Direction Center, GR)
NCNA visit to CO (.MJL &amp; DMC)
CampVol LP..adership Summit/GrRpds (Press Club, GR)
GG5 Program Committee
(Hyatt, Dearborn)
CampVol ExecCm mtg
(VAC/Lansing)

9-13
15 -18 -- 10:00 to 2:00
21 - 11:30 to 1:30
22 -- 3:00 to 5:00
23 - 9:30 to 12:00
24 -- 9:30 to 12:00
28 -- 9:00 to 10:00
29--

NCNA Annual Meeting
(Little Rock, Ark.)
CampVol Leadership Summit/Mt. Pleasant
White Paper/Summit Workgroup
(KC -- Room 103)
Membership/Nominating Committee
(State Room - Alcove)
Preliminary meeting w/ auditor
(MNF)
Executive Committee
(W.K. Kellogg Foundation)
CampVol Executive Committee
(Lansing VAC)
GG5 Co-Chairs Conference Call
CampVol Leadership Summit/Midland

5 -- 8:00 to 9:30 Wkg Group, CampVol
(KC: State Room)
6 -- 9:00 to 11 :00 Tax Incentive Committee
(MI Library &amp; Hist Ctr)
6 -- 10:00 to 1:00 GG5 Program Committee
(MI Library &amp; Hist Ctr)
(Bob Ivory's Office)
7 - 9:00 to 12:00 Finance Committee
8 -CampVol Leadership Summit/Big Rapids
9 --9:00 to 1:00
Prog/Pub Policy Committee
(KC: Centennial ABC)
12 -- 9:00 to 4:00
Annual Meeting of the Trustees
(Holiday Inn South)
20 -CampVol Leadership Summit/Niles
23-27
NCNA visit to MN (M1L &amp; DMC)
23 -CampVol followup Leadership Summit/Mt. Pleasant
-- Audit Committee
- White Paper discussions/briefings

�NOV

10-MSOnet's first public mtg
(Kellogg ComtyClg)
16 -- 3:30 to 5:30
Tax Incentive Study Task Force
(MI Library &amp; Hist Ctr)
19 -- 9:30 to 12:00 CampVol Executive Committee
(Lansing VAC)
30 - 9:00 to 10:00 GG5 Co-Chairs Conference Call
--White Paper/Summit Workgroup
--Continue Local Volunteerism Summits &amp; MNF's White Paper briefmgs
-- Pre-planning for Give 5 Campaign

DEC

8- 10:00 to 1:00
GG5 Program Committee
(KC Red Cedar B)
9 -Janne Gallagher visits to consult on the White Paper/Summit
10 &amp; 11 -First MI Research Conf. on NP Sector, Detroit
14 --9:00 to 1:00
Prog!Pub Policy Committees
(KC: Big Ten C)
17 - 9:30 to 12:00 CampVol Executive Commiteee mtg
(Lansing VAC)
--Year of the Volunteer/Give 5 Campaign Committee
--Continue Local Volunteerism Summits &amp; MNF's White Paper briefmgs

NCNA visit to CA
9-13 -Finance Committee
14 or 15
18 -- 9:00 to 1:00
Executive Committee
(KC: Centennial B&amp;C)
28 - 9:30 to 12:00 CampVol Executive Committee mtg (Lansing VAC)
--Legislative Briefing on Summit I and White Paper
--Continue Local Volunteerism Summits &amp; MNF's White Paper briefmgs
FEB

9 -- 10:00 to 1:00
GG5 Planning Committee
(KC: Red Cedar B)
23 to 312 -possible Summit II dates
25 - 9:30 to 12:00 CampVol Executive Committee mtg (Lansing VAC)
- Membership Committee (for spring campaign related to GGV and Summit)
-Year of the Volunteer/Give 5 Campaign Committee
--Continue Local Volunteerism Summits &amp; MNF's White Paper briefings

MAR

possible Summit II dates
1 or 2 -4-8 -NCNA visit to DC
23- 10:00 to 1:00 GG5 Planning Committee
(Hyatt Regency, Dearborn)
25 -- 9:30 to 12:00 CampVol Executive Committee mtg (Lansing VAC)
- Hearings on White Paper
--Continue Local Volunteerism Summits &amp; MNF's White paper briefings
(B. Ivory's Ofc)
15 or 16-Finance Committee
(KC: Centennial B&amp;C)
29 -- 9:00 to 1:00
Executive Committee
- Program &amp; Public Policy Committees
-Year of the Volunteer/Give 5 Campaign Committee

13 -- 9:00 to 4:00
14 - 8:00 to 5:00

Annual Meeting of the Trustees

(Hyatt, Dearborn)
Grantmakers/Grantseekers Seminar V (Hyatt, Dearborn)

2

�-White Paper/Summit Workgroup (implementation plan &amp; plan Summit ill)
13- 9:00 to 1:00
Executive Committee
Finance Committee
15 or 16 - Give 5 Campaign Committee

(KC: Centennial B&amp;C)

--Debriefing, Grantmakers/Grantseekers V Co-Chairs
-- Membership Committee (for fall campaign)
-- Audit Committee
-- Begin Series of Briefings leading to Summit ill in Feb/March
-- Membership/Nominating Committee
-- Public Policy &amp; Program Committees
-- Grantmak:ers/Grantseekers VI Program Committee
Finance Committee
14 Of 15 -28 --9:00 to 1:00
Executive Committee
-- Give 5 Campaign Committee

(B. Ivory's Ofc)
(KC: Centennial B&amp;C)

11 -- 9:00 to 4:00
Annual Meeting of the Trustees
(Location T.B.A.)
-- Grantmak:ers/Grantseekers VI Program Committee
-- Public Policy &amp; Pro~ Committees
-- Give 5 Campaign Committee
-- Finance Committee
- Executive Committee
-- Grantmak:ers/Grantseekers Program Committee
-- Membership Committee (for spring campaign related to GGVI and Summit)
-- Give 5 Campaign Committee
--Summit ill
- Grantmak:ers/Grantseekers Program Committee
-Finance Committee
- Executive Committee
4 -- 9:00 to 5:00
5 -- 8:00 to 5:00

Board of Trustees Meeting in Dearborn
Grantmak:ers/Grantseekers Seminar VI, Dearborn

rcf:da.te9293 .lst,cm\exec,OOOO

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 affiance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.
GOVERNING BOARD
Association oflndependent
Colltgts and Universities
ofMictdgan

October 5, 1992

[ADDRESSED TO NONPROFIT "NETWORK ORGANIZATIONS]

Congress of National Blade
Churchu /Michigan Affiliate

Dear «sab&gt;:

Council ofMichigan
Foundations

This is such an important document that I wanted you to have a copy
as soon as possible.

Council of Michigan Urban
Leagues
Jewish Community Council
Michigan Association of School
A dmimstrators
Michigan Association of School
Boards

I just received this final version (misdated September 13, when first
drafted) of an important national statement about our joint work in the
nonprofit sector. It comes at a significant time of renewal in this sector, and
stands as only the second national statement of its kind. (The first was
issued in draft form in August by the Independent Sector in Washington.)

Michigan Catholic Conference
Michigan Community Action
Agtncy 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 TRUSTEES
Richard H. Austin. Michigan
Department of State
John S. Lore, National Society
of Fund Raising Executives
Russell G.Mawby.
W.K. Kellogg Foundation
George W. Romney. National
Volunteer Center
Elizabeth S. Upjohn.
Kalamazoo Foundation

The Michigan Nonprofit Forum participated in shaping this document
and is in the process of generating the nation's first state-level "white paper"
on the nonprofit sector. And we need your input. The MNF White Paper
was launched in February when we brought together leaders from business,
government and the nonprofit sector to consider the changing relations of
these sectors in serving the public good. The MNF White Paper — intended
as a tool for discussion, education and advocacy — is now in draft form and
soon will be circulated for review in a wide range of forums.
Should your organization be included in this process?
Do you have a forum where the MI White Paper could be discussed?
I hope to hear from you about this important opportunity. For your
convenience, I enclose a Response Form and ask that you fax or mail it to us
by October 23.
Sincerely,

Maryellen J. Lewis
Executive Director
encl: National Council of Nonprofit Asns White Paper
Response form

EXECUTIVE DIRECTOR
Maryellen J. Lewi*

ref:wht21003.mrg,prg\white,6400

�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.

RESPONSE FORM
First Michigan White Paper on the Nonprofit Sector
Name
Organization:
Address:

Title:

Zip:
Phone:

FAX:

Yes, my organization should be involved in shaping this important Michigan statement.
We want to explore conducting a discussion of the draft MI White Paper within
one of our programs in the next four months.
When received, we will circulate the draft MI White Paper for written comments
from our constituencies.
Other

No, we choose not to be actively involved at this time, but keep us informed.
Please remove us from your mailing list.

PLEASE COMPLETE AND RETURN THIS FORM
TO THE ABOVE ADDRESS BEFORE
FRIDAY, OCTOBER 23,1992.

THANK YOU.

ref:10/3/92,whm003.frm,ro\wht,6400

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          </element>
          <element elementId="41">
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              </elementText>
            </elementTextContainer>
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          <element elementId="49">
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                    <text>DRAFT
(August 14, 1992)

RATIONALE FOR THE NONPROFIT SECTOR:
WHITE PAPER

To be published by the Independent Sector,
prepared by Janne Gallagher

�DRAEf- Auaust 14. 1292

THE ROLE OF THB INDBPENDBNT SECTOR
The independent sector-nearly one million nonprofit charitable, education~. rellalous, and
social welfare oqanizations-collectively ·creates, nurtures, and auatains values that are the
framework of American life. It promotes altruism in an economic system that rewards attention
to the bottom line. It supports and encourages pluralism in a world that drives toward
conformity. It introduces community to a society that prizes individualism. It provokes,
challenges, and questions. It also teaches, mediates, and heals.
All independent sector oreanizations operate as nonprofits. subject to a fundamental leaal ban
on private benefit. Controlled by volunteer boards, their assets irrevocably dedicated to public
purposes, the organizations of the independent sector belone. in a very real sense, to the public
at larae.
The independent sector is a vital force in the Am~rlcan economy. Representing nearly 7% of
national income in 1990, the independent sector r.mployed more than nine million people. It is
also a powerful force to mobilize voluntary contributions for the public &amp;ood. Private
contributions to independent sector or&amp;anizations were nearly $123 bitlion in 1990 and nearly
one hundred million volunteers contributed their services. That y~ the independent sector
spent $389 billion in the course of providing a wide array oi services.
While these data offer some sense of the sector's size, they do not provide a true measure of its
importance in American life. This must be understood, instead, in terms of the important social
and cultural values that the sector embodies and sustains. As leaders from other countries
increasingly recognize, much of what is best in the American character is nurtured by, and finds
expression through, the voluntary sector.

Altruism: The independent sector affirms that all human beings have a basic moral obli&amp;ation
to look beyond themselves, to undertake activities that contribute to the betterment of others-other people, other species, future generations. Regard for the cares and concerns of others
is both a necessary counterpoint to the self-re&amp;ard which is the basis of capitalism and a foundation for the dialogue and compromise necessary to democracy. Neither democracy nor
capitalism would survive for long in the absence of altruism.
The value of altruism is at the core of the independent sector. It is both the most important
unifying principle in an otherwise diverse group of or&amp;anizations and the root of all other values
encompassed by the independent sector. Values based in altruism-compassion, humility,
respect for others, concern for the future well-bein&amp; of the community, and justice for
all-thread throuah the work of the independent sector.
Voluntary organizations teach the value of altruism by challenging their supporters to cooperate
generously and unselfishly toward a common &amp;ood. They offer a structure throu&amp;h which
individuals can panicipate directly in activities that benefit others.

�Paqa 2

Pluralism: Pluralism. a central value of American life, Is also a unifying principle for tho
independent sector. America is a land of divenity-in populations, in religious beliefs, and in
political philosophies. Much of America's creativity has been born in this diversity. Pluralism
affirms that the strength of the nation depends on respecting the differences among its inhabitants
and encouraging debate amona competing poin~s of view.
The independent sector is critical to maintalnina and encourqin&amp; pluralism. Each of the
nonprofit organizations that make up the independent sector came into bein&amp; because individuals
sharing a common perspective came together to act on their own ideas and values about the
public &amp;ood.
Some of these organizations work in areas that ~ovemment is forbidden to enter, as in the cnse
of religion. Others flourish in areas central to the expression of ideas, where government
intrusion carries the risk of suppression of dissent. The independent sector is also home to
organizations which meet a wide variety of human n~s-from those that do not command
majority consensus to those where people seek pluralism .among providers.r '
Community: The ties of community are critical to the functionin&amp; of economic, political, and
social Jife. While teaching and supporting the -value of pluralism, the independent sector also
makes possible the creation and maintenance of communities.
Community can refer to a geographical unit-a neighborhood, a city, a state, a nation. It also
can mean a group of individuals sharing a common interest or goal. Communities bind
themselves together through the mediation of voluntary institutions which bring members of
communities together in trust and openness, in responsibility and love. ·
Education provides the tools of scholarship, discipline, and creativity that enable individuals to
participate effectively in community life. Arts, culture, and the humanities contribute to a
community's sense of self-identification-through preservation and presentation of the cultural
expression of community life-and, by challenging old assumptions, foster new ways of
perceiving the community. Human service, health, and religious organizations teach compassion
for the needs of others, provide structures through which members of a community can learn
about and work together to alleviate community problems, and offer a commitment to meeting
future community challenges. Environmental, human rights, and public policy organizations
teach fundamental skills of democratic participation, consensus building, and leadership.

• •

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The independent sector is the linchpin of American society. Business and iOvernment acting
alone could not sustain either the three fundamental values of altruism, pluralism, · and
community or the underlying values of trust, compassion, justice, and moral behavior.
Government, business, indeed all Americans, have a fundamental interest in preserving and
strengthening the independent sector. Freedom from taxation and the right to receive taxdeductible charitable contributions are two important ways in which society manifests its support
for the integrity, independence, and continued existence of the independent sector.

�Dmff. - July 9, 1992.

Mote than 42,000 organiutions exiSt to promote knowledge about aad e3tprcssion of the visual
and performing arts; the humanities,. including literatur~, h!Jt?IY, and philo~y; and.scientirlC
creativity. Jly supportina, encoura&amp;Ing, prcseNins, dasp1a)'U1J, and interpreting the wotks of
human ~resslon, w. cultund. and hurnaniti~ otpnir;ations provide a structure through which
the valuea of creativity and culture arc communkatcd to society. 'Iba ability of these nonprofit
organizations to muster private charitable contributions, foundallon support, and assistance from
volunteers, frees culture and the humanities from Cl)rtlpletc dependence either on· the goveru·
ment, with its demands of political cOrrectness, or on the market. with its requirements that
creAtive output be commercially via\lle.
Commuuit)'s Throughout civilization, arti5tic and humanistiC expression lw provided a focus
for communities and a means of self-identification. Col\terts, performances and exhibit&amp; all
offer an oppattunlty for people of disparate backcround and inttrests to Join together in sharing
a corn men inteJCSl or in marking a ceremonial ocx:asiol\ in the lifo of a community.
Arts, culture, and the humanities are a vital mechanism for communicaUon amona pooples.
Through partlcipatin1 in anothet culture, we can tJeein to grup the valuc.1 of that culture.

.

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The community is created, reflected, Md interpreted throuzh exploration ot culture and the
humanities, a process that trequcntly is joyous but one that Q8D be unoomrottable as well. Tbe
eteator's vision of a society may differ signiftamtly (tom the way in which the society prefers
ta view itself. But by ukine questions, cbaUenaing..usumptions, providing an altemativt view,
an, culture and the humanities contribute to the community' a xlf-lcnowledg~.
PluraUsm1 Through the voices of diversity, aru, culture and tbe bumani~ challe~tge a &amp;ociety
to look at itaelf trom many different points of view, to questiOn its values and shape its future.
Presentation of dlver&amp;ent points of view Ia key to all of the other valu~ embodied by culture,
inch•ding it! role in challenging and creating c:ornmunity, ptomoUng excellence, and encouraginc

freedom

or expression.

Where existing 1roups fail to provide a voice to nM-Ciominant fonns of ~pression, the ability

of interested people to form new assoclations lllows the ereatlon of alternative cultural or:anizations, devoted to performin&amp; and ~tift&amp; works from culture&amp; other than the Weatmt
ttadition, expe.rimentma witn new idea.s abOut culture. utd developing a new, more divcrae,
American creative expremon. Alternative theaterS, danQe companies, and not\~ofit exlu'bition
spaces ar\d galleries abound~ provJdin&amp; tbe public with a wido range of ehoice and challenging
the assumption&amp; ot ~ating

in.ttuti~s.

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�a

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Paec2
Presenattonz Art ... painting, muatc, dance, IOftC- is endemic to all~~ as ialltaratute,
poetry, and Other creative expression, au"' u soicntifie discovery. :nuouah prewvation ot ~e
works of past cultures, cultural organizatioJtS open an ImpOrtant WJndow to our undcrstand&amp;ng
of th~ past, enablh~ us to know mo~ of a JOCiety than j~t 1tJ social or political accom·

pliahmenta.

" rcpresentlna the world'• cultural and natural common
Mu11cums collect and proc.:ct objects
herim&amp;e: lhcy also pr~e, reatOt6, and display them for the gencn1 public and provide a focus
for scholarly research. Olchestras recreate the musi&lt;:al worb or the pMt, sometimes using
inatnunems of the period. Video technolocy rtO~i pUmits preaervatkm of gr~t worka of dance
and evert of \he recbntqu~ used by ~ ~ of dance.
Creati,itys Art, llten.ture, and science all stimulato ~ provido an ouUet for humanlt1's
· ereatlvo impulses. Creative endeavor stimulate&amp; new inquiries and new ruponsoa, helps aoelety
to rcimagtne itself, and contribute~ orlginalldeas that touch all areas of life. Cultural organiza·
tions offer a structvre which suppom tha exercise of creative &amp;enius and thtough which that
ereatlvity can teach a broad publi~ audience.
Excellence: Freed from the need to d~· wholly on ticket aales for re-venue, nonprofit
cultural or&amp;at\izalions contribute substantJally to the dcvdopmenL of h\m\a.n potential by
promoting excellence in cnatlve explaiion and by providing waya to brine that exprealon to
the genenl p\lblic. Participation in art, whetba aa maker or audicnoe, educates people about
the great cultural achievement&amp; of different civUiutions, enrlcta the1r lives, and provides access
to geniu11. By fosterlnJ tho nlue or striving toward ~cdlc:nco, cultural organiWions teach 811
important lesson that c:arries over to other aspects olllfa.
DiSclpllne; The creation of a work demand&amp; Intense discipline on the part of the creator.
Studying an inslrumertt, wrldn' a play, lcuni"' the akiUs of a dance !orm, practicing u art ar
a eraft, engender a di'cipline in youug people thal ~fits them throughout their ~ueation and
thdr lives. Cultural orsantzationa aupport educalion in a variety of ways that ra.nge f'rom youth
orchestras and clan~ company schools to teaching ln dcmen~ar1 and secondary &amp;ehools.
Altrubm: Support for the artS, culture, and the humanitic&amp; in our society depends on substantial
charitable gi1l.s from individuals. corporations, and foundations, and on the commitment to
service Of hundreds of thousands of volunteers. Tho sc:nerosity of donors and volunteer&amp;
rcinfgrccs the values of giving and service and is itself a substantial &amp;)ft to the community,

�.•

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Education. itself a central value of American lite, b key to the deVelopment of olhez values that
make mmmunity life and eulture possible. I&gt;emocmcy works best with art educated citizenry,
one that is eapab~ of critical thinld1lg and public discourso. The innovation and opportunity that
galvanize our economic lifo ~ 11\creuin&amp;ly sophisticated levels or intellCQtual skills.
Community life, culture, arts, lttenture, all depend on an educated populace. From the earliest
colonial da)'$, Americana bave established schools, coUetes, and universities to ensure that this
country's young people have the opportunity for a.\ education. CYUuw, sooial, and community
nonprofit of&amp;aniz.ations also offer rich cduational proerama and opportuniti~ for formal and
Informal learning at every stage of Jlfe.
SclloJarshlp: The core value of all edlicationat· mstit\ltimts is scholarship: teaching and
· Jcami01. Throu&amp;b their teachin&amp; function, educational institutions belp students at all Ieveli
develop the abUit1 to think crit1cally; to uDCicnta.nd · in~tionshipa and consequences; to
comprehend differing ptrspectives on the world; to focus on the pasl and future, not just the
present. These sldtls ue the basic tools atudeots need to participate in the democratic process
and in community life.
·

Working at institutions of hi&amp;hcr edycadon, scl\olars and researchers advance the bounds of
human lcnowlcdte, develop new technologiea, and creace climates of innovation and crcatlvity.
~tl\ government and business depend heavily on ~ carried on at colleges and universities
and on ~ss to an educated labor force with the strong teehnlcal and intellectual sldlls needed
to compete in today's &amp;lobal economy.
Excellenc:e: 'I1le pursuit of l'bolarship demanda that students Jearn a commitme~tt to diseipline
and to excellence. It stimulates creativity. It provides students with a cultural and in\ellectual
haitagc that encouraaca &amp;hem to seek outside themselves ror meanins and purpose in tholr lives.
Educational institutions offer a forum in which students can grow and learn and in which faculty
members can pursue teaching, scholarship, rCICai'Ch, artlstle expression, and service.
Plural~m: The basic plotallsm of American Ufe is reflected in the wide divertity Jn American
educatiol'al iiUtitutlons. Public insdtuti~nt attlrm th~ value of equal edueatlonal opportunity for
all. Over the yean, families and studenu sealciftl diYCility in curtieuta, in teaching methods,
and in values, have created and supported private institutions that respond to their necda and
Interest~, As a re.!ult of their ,fforts, students and faculty are free to select from an array of
publle and private Institutions gfferlnc a wido Klec\ion of eurrieula and differing philosophies
of learning.

Educational institutions are an important locus tor debate over ideas. While the institutions
thcmaclv~

remain politically neutral, rcscaroh

~ed Ol\ in

colleges and universities contn'butes

importantly to public debate, providin&amp; bM;kground, facts. analyses and now ideas about public

�}

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iss~. Bdu"tional institutions sponsor pubUc forum! and debates, &amp;ivin&amp;atudents. faculty. and
members of the publlc an opportunity to bear opposln&amp; points of view on important public

iuuC$. Univeraity presses p\lbJis'b significant works of scholarship lhat commercial publishers
would reject.
'

Commublty: Schools, eoUe&amp;es. and univenides are communities of scholars and studeats.
cpportunities to tranaform themselves from mdlviduals into participatin&amp; members of the larger

Th~y offer studMtl their first experience of tunctionin&amp; in a community and provide them

conlmunity.

Education helps students to grow in thtir ability to understand and accept dift"erin&amp; points ot
· view. an in"easingly important akil1 as the population of the United State~ increases in diversity.
Museums adcl opponunities tor people of all ages, lntete$t&amp;, and bacqrounds to explore dlvmc
lcarnin&amp; cnvironmenta. By providing a voice fo~ ~iveqent points of view anc1 for diff'creot
cultural perspectives, they open the iJSue of cultural diversity ro the whole community.
Bducated indMduals contribute ideas, knowledge, and leadership to the oommunity.

Educational institution• are an endurlns pracnce in their wmmunitiea, linldn~ p&amp;St and futllre.
They are an important focus of ggi1\J1lunlty life; brlngln&amp; together studenta, their families. alumni
ar:'d businesses through shared lnterat in the welfare and future of tho school. By expo&amp;ir\g
students to the accumulated knowledge or the past, dley provide leadcnhlp and wisdom for tho
future.

Ethical Behavior: Education equips students to examine and apply ethieal principles to use in
guiding their lives. · Religiously-affiliated schools teacb the value of rellcious faith in discovering

the meantn, and purpose ot llfc, and u a foundaUoll for the values of justioe, compassion, and

scrvico. More broadly, e4ueadon, rdiglout or secular, encoUiagcs mxicnu to develop AtandardJ
for principle4 behavior and to ~opt valuea that demonstrate reprd for others.

Altruism: Educationll institutions challenge people to stve time and money tor the public good.
AmeriQ&amp;ns gave an estimattd S12.4 bllUon tD education In 1990 and also &amp;ave geuerously of
their time. Soliciting ehuitable contributions and volunteer involvement from alumni and others
r~nforea the value of giving and the social obllcatlon to help make education available to
ollie~.
.
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QRft - May 14.

1992

Prom the mtddle of the nineteenth century onward, enviroclmtntal aroup• have labored to
preserve and protect the environment. They have done 10 primarily throu&amp;b their effott.s to
influence locaJ, national, and international government policy. but environmental organizations
also wry on mearch, educate the pubUc, organize servlce activleie.s, and ln some cases acQUlro
land to be pre$e~Ved for 1)\'blic JM'POIU· Jn so doing, environmental organizations have
nurtured and supported ~ues which art critical to the well..befng of the world.
Pteservallon: 'Ibe purpose of th~ environmelltal movement ls the protection of the CIU'th and
all forma of life which inhabit lt. Pieservation Wc.es many forms: safeguarding endangered
species of plant• and animals; maintalnins a variety orhabi~ata; protectina both old srowth foro$\
and ttoplcal talnforest; preservin1 and restoring weUands; guarding human heallh from toxic
substances and pollutants; maintainina and Increasing wilderne.u areas; controlling the growth
of the human population; preseNing dlvene human cultures~ advocating stewardship of the
global commons; and protecting the eattb 'J atmOSftlrre. Achlcvin&amp; tho &amp;oal of pmerving and
~toting the earth '1 biosphere involves envitonmental oraanit.aUons as advocates and teachers
ot tbc value ol prescrviJl&amp; and protecting Cha environment.

or

Altruism: Unselfishness is 11 the h~:art
the environmental movement. Environmental
organirations stand u a counterweipt to the forte~ of etAOnomic selt-lotercst which too
frequently threaten the environment The envlroruncntal movement calls on individual•, eorpo..
rations, and governments to wei8h how their decisions affect other life, lO appreciate and
praclioe l~materlallstic way• ot living, and to consider 1he ntcds of the futuro as well aa those
of the prelent.

Environmental orpnlr..ationa abo promote the' value of altnrism by uldng lndlviduaJa to ctvc
thelr time to activities Chat promote and protccl the environment. ThousMd&amp; of volunteers work
on project~ from testifyh11 at city council beaJin&amp;s on J.OI\ing proposats to conJtructinr. and maintaining trails in state and national parks. Vohtntary contributions, another expression af
altruism, form much of the financial support of the environmerttal movement.

Couununlty: John Muir wroto. •we all dwell in a house or one room. • Environmental
organizations wort throughout the world to trach tho principle that the eanh Is a community •
with each Jife supportina another and ell life givln&amp; nurture to 1he whole. Aa it becomes
increasinst)' clear that 10lvin&amp; many cnvironmcnt&amp;d problems will require the elose cooper~tlon
of the aoveramants of all nations, environmental orprliuLions are playing an inatrumental role

in faclJltatin&amp; intemalionaJ meetings to diSCUII cnYii'OfJmantal accords.

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;,

Environmental ortanlzations ptOmo&amp;e the 8rowdt or a aense or tomm\11\ity in nw.ny other ways
as weJI. TM1 de\telop constituencies around environmental choice&amp; made at 1h~ national, state,
and local 1~ on issues sudl as transponation and d~\opment They offer a place for
indivJduats in~ in environmental isaue~ to come together to work to make thclr

communldos:a better place.
Democrat)':. Bnvironmeaw organizations contn'bute to the vitality or democr.cy through their
efforts as adv~tes in various &amp;ovemment, public, and buslnen forums and by seMna 11 a
dependable ~ economlcally dislntetestcd aource of information about actions affecting 1M
environment. 'Ibroupout both the developed and tho developing world, environmental group•
are a democtatizln&amp; intl~ as they otTer a nledlanbm throqh which citizens tnnuence their
countries• policies on a range of vital ilsues from rnan&amp;Qement or natural re1ources to populalion
control.
Ethkal BehetYior: Bnvfronmcntal orpniationa advoeatA: ethical standards for the treatme~~t of
111e car1h an~ Jts inhabitants which ate baled on respect for diversity in evCI)' realm. '11»y offer
a moral ~ Jroundcd in plaoing the needs ot the community of life above immediate personal
gratification. They remind us that we mu• consider the future, aa wel\ as the \')I'CSa't. They
instruct us fn compassion and humitlty. They teach both the importanee of individual choioe
based on tbete principles and lndividuahesponsi~iUt)' tor participating in collective action to
incorponll.e ~ standards In policy decisions.

or

Regard for :the Fut~arc: Environmental orpniza\ions play a si&amp;nifieant role in direotlnJ the
attention of :SOCiety to the future con~equences of today's cboloes. In a wodd whero ohoica
made by botft buainm and goven'lmenl frequently Jte dictaLed by sueb short-term considerations
as the desite to be reelected to otftcc or to tepOl1 a sub1t1ntial profit at the cod or a partieutar
year. envirOnmental organhations speak for futuro years and futute gMer8.tlons.

B:nvironmcn~ c&gt;tganl!aUons Jook to the future over a ranee of issues from the coosequence~ to
th~ earth of iubstantlal population increases to thr. damage rc.suJting from destruction or the
tropical raio forests. Environmental organlzaUons are promotina public debate over the
consequen~ of the incre.sing globalizalion of the economy re.suiUng from the growth of
multination~ COJpQ"'&amp;ions, the future of tho nation-st.ata as a sianificant poUticaJ rorce, and the
prospedl f~r increasing the level of democratic participation in the choicta made by both

bus1ncu anq government.

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Pmfl •• July 1, 1992

~ llOLB 01' JIBALm 0aGANIZA110NB XN TI1B VOUJNTAR.Y SEcrOR

The nearly ~9.000 not for profit health organizations that fonn part o£ the volunlat)' sector range
from grou~ which are aotivc ln the pm•entiM er treatment ot diseases, birth ddeets, and
genetic disOrders, to hospitals and other provideR of health care. Toaether these institutions
embody and nurture important community vatuea includinS t!le development of human potential.
compa&amp;lloniand alttui5nt

·

Developing Human Potential: Sound health is key to a fvlfi1ling, productive life. Through
~eh. oCJuoation, and treatment, nonprofit health organizations assist individuals in
maintaininJ their health and in minimizing as much u poeaibJe the adverse consequences of
disease ancf di•bility.
I

By providing information about the causes, symptoms. and treatment of disease, as well u tbe
irnpor1anae :or earl)' det~lion, hQ!th education enables people to make changes in thclr lives to
reduce tbeit risk of lllness, to seek prompt med!eal attention at the earliest ·~or disease, and
to obtain 0\e m01t effective remcdie.. fo1 th.elr problomt.

I

Many hcal&amp;tl organizations as$ist individuals wlth ehrooic di~ and disabilities to lead fuller,
moze prOductive, Uvea. They provide an outlet for individuals with problems lhat frequently
create a sense of powerlessness. 'lbey encourage constructive social behavior. 'Jbey strcngthCQ
lndiViduals;and famines by providing them with information and practical support.

~ons

~sin

Health
also develop human po!clldti th1011&amp;h lboir role as
the field of
medical ~~~r~h1 carrying on or aupportinJ raeareh focused on the prevention and treatment
of diseases and disabilities. They educate and train h~th profeaonals as well.
1

CompaaiJo: Nonprofit health cafe oraaniz.ations continue a eenturica old tradition of brinSiftg
healing a~ comfOrt 10 \ho5e who suffer -- the lick and dyin&amp;, victims of a&lt;:Qdcnt and erlme,
i~ndividuals: with disabilities, an.d the poor and disadvantaged. Nonprofit hospitals maintain a
commit~t to meeti.n&amp; the rteeds of individuals who cannot afford the cost of mod leal care and
to providi~g essential, but sometime&amp; unprofitable. services such as twenty-four hour a day
emergency rtoo:ns and DCORltal intensive cate untu. Nonpro11t homes and seozvice&amp; for the aging
are. oommi~ted to rtaponding to lbe needs of the frail elderly in their communities, fpcluding the
assurance ~at they will not be evicted trom the facility because they bcQome unable to pay the

regular

j''·

AU.ndsm: 1us&amp; as dieease is no respecter or social divisions, so organlzatiorts that work· to
prevent di.'ease and mitig,att itt effects draw together people from an partS or the community lD
clve fred~ of their time and financial retOurce5 in addressing iasues of common concern.
Volunteers' co door to door to aollcit funds for health education and research. Volunteer boltdl

. :.

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•

aovem the ~on of nonptOftt hospitals and other bealth care instltutiooso Volunteers pnwlde
a wide
ot pract.lcal help fro.n t.ransportatlcm to hospital visits.

rancl

Pluralism: 'I1lc diY~rsity of health or&amp;&amp;nlP.atiooa renecu and ~ces pturalism In American
life. The a illty to create volurltary health groups ~ahlcs fntetcsted membcta or tJIQ public to
act OR heal ·Jdated l.ssuea that ,ovemment is unwiDiJ\1 or unable to address. Almost all of the
initial respo so to the AlPS epidemic, and much of the continuing respon~ hu come from
voluntary h th orpnizationa~ many of them newly formed. 'Ibis cxtmplifies a longstanding
tradition in which individuals have tanned orsanlutiona to promt* research and education
concc.minJ iaKa Me! clllabilliieso
Commun : 'Health ~ institutions IUCh u bospilals and nursing homes are created out or
oommunlty ccd and play an baponant role In binding their communiuca together. Thete
Institutions ffer a commitment of continuity to tbe conununlty: that care wiD be available when
and as it is eeded and that plannln~ will take into aooount lhe &lt;XHnmunity' a future needs as well
u those of presen\. Voluntary hospitals and health c:are lnstltutJons have evidenced a atrong
commitmen to their communities in bad times. u well u in good, remaining open in inneto.cll)'
nei&amp;}lborh
and rural communities lOfl&amp; since abandoned by profit·motlvatcd organlzatlona.

Health or fzations also scrve their communiti~ by playlne a leadership role in ide~tirying
community roblems related to llea11h, by buildln&amp; ooalltlona to meet community needs, and by
acting N
for increued public and private fundina to teaolvc community problems.

rocatea

Clvk Parti~patlon: Many health oraanlJatlons act as ad\IOCite$ on a rante of social issues
afl'ecdng
and health~. These incluck access to health eare. the need f'or adequate

h:e:h

::l::::::=,=~::~:t:.::l=~na, u~1

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rellglou~·afftllated nuninJ homes, houain&amp; pro,rama. and reUrem~t centers, provid~ the
comforts of rel!glon and shAred reliJious val"" to indivJduals facing disease, old age, and death,
as well as
din&amp; a forum through which indivlduah Q!J1 practice their faith by serving olhets.
Nonsec
health ~e institutions also care for the spJritual ncech of their patients, taking
steps to
uro chat the comforts of faith arc available to those seeking them through their
ooordina
or pastoral service~.

as

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Draft ... lui)' 2.

1992

TBB Oa..B OF H\.NAN lliGB11 ORGANIZAUONS IN '111B \'OUJNTQY SICmR

People have formed nonprofit assodations to promoto human rlahts from the betinnla' of tho
American
bllc. Barly in the niDetccnth century adVOCltes for the abolition of slavery
eatabllshed
tiona to wry forward their CIWJe, Women aa!cd orpni.z.ations to flcht for
the riaht to te. Today, a host of organizations !CCk to end diacrimlnatlon qainlt African·
Americans, spanic.-Americana, saya, women, Individuals with disabilities, ethnic minorities,
and olhs'a ho havo not been a~rdcd equaljty and ~ in Amerk:a.
rights orpnizatioas are a meJor force for lhe renewal or the Amezbn political
ying a moral vision of a scclety where all arc treated cqually, they continue to
work to
sform America into a ~try which embodies the values of equality, julticc,
compassion, and rcapcct for the &lt;Sfanlt1 of aD.

These hum
system.

~st

Pluralisdl: j Humaa riJhts orcanlzatlons W&amp;R created and
today u a«'mutiona of the
critical role ~Jaycd by pluralism Jn out society. 1n a nadoq made up or lndlvlduals from llWl)'
cultures and; backgrounds, bulllll\ rlibtl or&amp;anizationa are a voice for the principles of respect
far diveraitft and rccoanltlon of tbe ri3hts of o\hen. Tbey Mind for the cmviction that a society
where peop e are denied equality opportunity baaed M their race, their sex, their ethnic
heritage, th ·, reliaion, tbelr Jeli.Ual preference, or whether they have physical or mental
dlsabiUtics, ·a a IOCict.y that deniea pluratiam.

or

Aa we cod c twentieth cenlu.ry. tho world remains a place whclc dteso differences amonc ·
people tQO fteo leads to ~ and war. The stark deaiotation or JOVOrAI Ealtcm
European tiona into baUlo-tom ctbni~ enclavcalt only ~ most recent example o( this axiom.
While the nlted States is not immune to OOaJ and cthnk strife, the value of pluralism iJ key
to efforts tolcrcate ud recreate" country where diff~ peoples can unite to form one nation.

Human rig t.1 organization• provide a f~ for .preasl.na and teaching the value of
pluraliJm,
ay Jive to 1he w01ld a vJslon of America as a viaorous and open society whete
the ideas

d Yllu~ or different cuJtur~ QJld bae~unds are honored and where individuals
the strength of their diff'en:nces to aolvina the problema faced by a pluralistic

Chie Partl patloa: Human rigbts organlzal.iona exist to provide advocacy and leadership for
the rights o dlsadvan~a~cd people, to inject thote «mcems into the public debate, and to biing
about positi social ebange. Human ri&amp;hts organiationa champion a society In which everyone
has access education, jobs, bealth care, and other public and private leTVices. To accompll&amp;b
these aoals· 11uman ri&amp;hts organizations educate their members In 1he art of pardclpating
etTectively n the proce1ses of r.owrnmtot and private-leCtOr decision making. '11\ey undertake
research d provide tnformadon about issues bearinc on cliJcrimiDalion and inequality of
treatment
the publlo. to b\llmoas leaden, and 1o petiUileDt. They chatlca&amp;e exlstln;

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thlnkin&amp;
improve the q\Wity of c1ebate about th&amp;:ae baa. Li~ation by human rlghtl
oraanization bu bca1 mc&amp;\tiallo the escablishment of bedrock principle$ of justice and fairness
that beuofit •

Giving, Se Ice, and C01n111uDlty: Human ricbts orpu:t.a1l01\$ eRato a commu.nity for their
membeR.
ey btin&amp; together tndlviduals who, IC( apart from society, may feel themselves
powerlu.s, ~d \each them the sU'ellgtb thll oome:a with ~mmunity. leaching out beyond their
membershlpf they engage in dialogue with memben of the wider community. breaking down
battiera of atred, suspicion, and rear. They are supported largely by charitable contributions
and carry fi rward a tradition of aemce dedicated to acldevin&amp; equality and justice.

De•elop
of JIWball Poteuttal: . By ,promoW, Justlce and equality, human ri&amp;hts
orpnizati s strive to male an envll'OIUnent in wbidt all people w develop to the Jimits of
their potcm al, unhampered by a1ete0~ and prejudke. Human rJabts o.rganb.aticna have
sucoccdcd • breakin&amp; down aome burien to achievement; ltom a &amp;irl pJayiJ\8 second bue on
a Uttle
ue team to the empow=m~t of African-Americans through eutorcemeat of the
Votin1 Ri ts Act, the succcsse~ arc real. The ltnl&amp;&amp;le, howtvor, ia constant to p~tcct old
pins whlJe tinulng to progress. Human richts or&amp;anlution.s perseve~ ln placing themsc1vos
at the heart of thia atruglo.

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l)qft- JulY 9. J?jl

Americans avo been forming cbaritablo uiOQiatioas amoe the ·belinraina of the Republic.
However,
orialn of the modem human acrvlce oqanir.a.tlcn sterna fr&amp;)m th~ period foUowina
the end of
Civil War which saw the ~rcation of a ransc of secular and rell&amp;ious1y-affiliatect
organu.ticm to provide an mayo( acrvic:es to help lmpayeriahed and immitranL populations
and to impr ve the quality of life in American communities. Tbe work of some 7? ,(XX) human
service org
tiona nurt.u~m a wide rango of values, with particular emphasis on the
import.anc6 f assisting individuala to develop to ~ tullea potential and of providing a
compassion~ response to human need.
Denlopb&amp; UIIWI Poteailal: Human ~enice Ot&amp;Miratioelt educato, mediate, •upport, aDd
he«l, and in so doina they encourage the Mteat dcvdopment of human potentjal, ndueatioa ia
c:cnttal to th mission of mMy human 3CMoc orpnizatioos. u they strive to help individuals
understand emselves and others, to pow ts hunwibeinas. and bo become productive wotbn.
effcc:tive
ts, and responsible clduns. Man)' human servico orpnizaUons combine the
delivery of
ices with a fOCUJ on helpina individuals develop the abillty to be leaders u part
of their
commitment to empowerinc communities that oftM bve lacked a voice.
Youth OlJ~Ilti'ons teach a taflBe of slciUs, from am sportllhroU&amp;h community leadership and

intwnati
undczstand.in&amp;, while MCOUaqillJ tho deVelopment of a leftSe of ldl--e$tcem and
positive val . Othet oraanaations provide Job trainina and wist&amp;nce to lnd1vlduals with
~ial n
and to the unemployed. Pamily aetvice agencies CIOUilx:l and mpport troubled
individuals
famillea, educating them in wa)'l to cope wlth their difficulties. Child care
centers cdu te prc-idloolcn and offer positive youth devdopment ~· for schoo1~a&amp;o
cbildren.

From a Olrl Scout leadtt teaching a Pi how to conduct a science experiment, to a tounlelor
working wi a troubled family, human service o~anizations support and aostaiA the efforts oC
others to fu ly realize thcJr pote2ltial. Human service orpnizadons affirm the importance in
human dcve opment of alton&amp; ramiHct, viable communities, and positive moral cbaracter.
CompamG • From the earliest days of American society, humM need has been a drivina force
n ot human service orpniutiona. 'I1lc orpnir.ationa, their mluions, and thdr
methods
greatly, but the dosiro to ~ent aild ameliorate pBin. sufl'erinc. pOv~, and
dlstre.ss, an to btJp young people, the elderly, and Olhus with apcc1aJ needs. links bu~
service org izations.

behind the

Human ~~zaliont diSiribute food lliiCI m011e7, run retupe mPtUiemcnt propam.,
supply em
disaster relief service~, offer sbeltered worbhopa to Individuals wfiOie

�•

lo

dlabilideJ
coo scv~ to permit employment in tho teculu marketplace, care rot abused and
abandoned hlldren, give shelter U) the homeless, opezate ueatmeut c:entcn for subst&amp;n~
abusm pro lde hi&amp;h-quallt)', aafe, child ~ proarama for dU1drea of workin&amp; families, run
r'*dentlal
group homes for adultt with phydcal and mental disabilities and tor tho aging,
and offer co naelin&amp; and usiatai\U to lndJvtduals who bllYe been tho target or vioJcaee. Summer
camps for
people teadt &amp;hem the value of a healthy environment, inclu4ing respect for
animal and
t Uf'o.
·~.and COilUDuulty: HullWl service ottaNzations are a vital structure through
wfljch in&lt;U duals can cha.onel their desire to help othcu. Be.\itb &amp;ivinc an catimated $12.5
billion to h man 8CNice organir.atklns in 1989, mlllions of volunteers donated. their tlme to
provide the aovernlna stnJcture of human seMcc orpn!zatJons, to help rai$e the cbari&amp;ablo
con\rlbuti
that arc vital to COiltlnuing setYices, and to wilt In the delivery of a wide range
. or communi ~erVIces. Theae volunlar)' effor1l relieve 1upayen of some of the burden they
would o
so face and supplement the abill~ of aovernment to otTer services 1o the
communit~. 'J'hrouch thdr contributions of time and money to hurnan service orpnlzationJ,
community identa become infcmned about community problems, and, more impottantly, gain
a commitm 1 to help resolve them.
. ..

Glvlng,

Plural!sJn: uman servlc:e Of8anlzations make an important contribution to foatorina the value
or plurali . WhJie often working cooperadvely with aovemmenl Jn findlnc solutions to

commwlity oblenu, human service orpnir.ations also provide an alternative to sovemment
which
t1 lndlvlduall with dlfferlnJ ideal and approaches to join qether in fostering

iMovative
uliona to L'OIIlmunity problems, as well aa in offering service~ for which
sovemment ndlns may not be adequate or may not ex.iat at all. Many human service orcaniJa·
Uons also I k to promote tho values inherent Ja a natiOI\ of racially and culturally dlvene
populations, lncorporatlnc and atl'lnnlnc th~ dl~ t.ppi'C*~ of ctift'erent commut'liUea to
the prob~s of an and teaching people from one cultural bacqround to undcntand and
a:ppreciate
values oC otbcn. .
Clvlc hrt
servJce org
socjal chang
out to the
opportunlti

patiou: Aa they klentify community problems and work to solve them, human
· tions foster Ole value of civic partiCipation by aodng u advocates t'or posltlvc
Many buman senice orcantzatioos teach tho value of civic partic~n, reachina
oups they serve - rrom youns peoplo to tbe elderl)' - to provide them with ·
to participate in formulatin1 10lutitm to important social problems.

y human aervic:e organizations aro rdigiously affiliated or prornole religious belief.
of their m11~ons.
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or&amp;aniu\iona N"C flnt and foremost advocate$ for the pubtlo interest. 1bey
clable and refreahing flow ef Independent Ideas and innOYilive solutioas to our
~icty•a pr terns. They ~e eatablllhed thlnkin&amp; and Institutions with alttmativo
philosophies·and vlewpolnts. In 10 doinl, they reillforee core ~uea or dell\~ratk:'eoclety.

~llc

policy orpnlzallon• are made up or &amp;MUP' or !*Pie Who come 1oSC1ber 111
act on
own values and belief&amp; about the public aood. 'n\ey arc volunW)'. diveno.
competitive, and mtatlvely indcpeodcot hom state controls. Tb6y provide a voiCe !or dissent.
They aro a v~ide for eneowaglng government and non ..sovemmcnl structures to respond to tho
needs or lhe·
, people of color, women. and othets who ftl.ce llgnificant oddt 1ft thelr pu1111it
of the quali of lif-. Tbe)t offer a way tor lndlviduala who ahare a set of common ooncun&amp; to
brina about
ce. Publlc policy organl~ons make sure that many voJces. even unpopular
poinll of
, are beard. 10 that tbe best possible answers will emerge out of tho crucible of
democratic

Pluralism:

their!

CiYlt Part •patlon: Public poHey organizations toinf'orce the core values of democracy by
educatina tlzen• to ~Je them to participate In the dczuocratio prooess u advoeates Md
leaders, \h
y Increasing the stake each hu in Ute performance or government and society.
They teach! the pmctical s1dlls of democratic problem aolvin&amp;: how to solve ptOblems

coopcraU~ , and lD the proccas to bUild brldses that cross racial, ~Jasa. and aociallines.

Public poli
slimulatin&amp;
re~hn

public poll

croups suppl)' ~. 8!1d infOfmati.on about important pub&amp; problema,
tc and informed diJeusslon among citiz.ells. They challenge existing thinking,
solutions to problems, and supply ftlcts that otherwise would be missln&amp; in Ute
debate.

Conunuai : Publlc policy Ol'tinizations challenge exlstiftg C()mmunities, helptne mtlzens to
evaluate thCir social, educational, ml&amp;lovs, buainea. and &amp;overnmCAtal instlwdons. The.y help
to oons~ ~ communities that are mote inclulivc in theit membenhip, more totenmt of
differences,.~ more supportive or special needs. Ono of the tasks of pubtle policy orpnir.ations Is teaflnt down barriers that prevent run participation by disadvantaaed aroop~ racial and
ethnic min ritiet, women, individuals wilh disabilities, people living in poverty, the inftrm

cldcrlJ.

·

·

Public poli y orsanir..tltions are themselves communities. They are organizations established by
lndlviduaJs who oome ~ether in a community to effect chango. nay contribute the
empow
t of group action to individuals who often otherwise would be withoot power. They
Inspire ~1empoYt'Cr cltlzens to become acllvc J)lrtldpants in solving their ~mmunity's, thtlr
nation'• ~ tb~ world'• problems.
.

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Fairness aDd Trust: PubUc policy oraaniiatioas emphasize tbe need for faimeu and lot
acQOUntabill~ in policy decisions. They stand for measures such P direct citizen participation.
open access: to meetinga, free availabWty of Jnfonnation, clarity of 1aaf4 standards. and acceu
to judicial ~lew. Bacb of thele mcasum helpa to ensure that policy dcelalons are made fairly
and openly,' taking into ~nt the view! of all ~-~led parties. To the eltent that pub1Jc
polioy o~zations 1\K=ed in their goal of enturlng that diverse points ot view are ~ted
in pJWeedJ~aa that are fundamentally fair, they gontribute to the growth of trust in our sociaJ
and govemt'naltaJ
lnstitudons.
·
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July 9.

tm

'fH!1 ROLE OF lU:LlGIOVS ORGANIZA'tlONSIN THE VOUJNT.utYSECTOR
Much of the .voluntary sector had its oriain in fdi&amp;loA IlleS in institutions founded by and
affiliated with churches and other religloua orpnbations. R.ellgious organi7ationa embody
and sustain values or faith, compassion, service. and community that are vital to Ameriean

nre.

Faith: Religious faith oftera bellevers. and society· as a whole. a framework for making
sense out of lite. lt provld~ an explanation ot the .ulUmate meaning of ~brence, Including
the origins, purpoie, destiny, and UltimAte . fate ofhumankind. It extends a vl!ion of hope
for humanity and a basis for making indlv!duel Choices tbat are rooted in justice, compas&amp;lon, and setVke rather than in selt-Jntcresl. bUgious ortanizatlons teach the value and
·meaning tit faith to bolievera aDd non·beUevers alib and. by sponsoring practical
~pression• ot faith throup a broad raDgo of dlarltable enterprises, provide a mechanis:m
for individuab to act on their value~ and beliefs.

Gl"lnl, Senice, and Community. Am&amp;!:ricana Jive sene:ously

to

religious organizationa.

Nearly twO-thirds of Individual &amp;iving ls contributed to religioua institutions. Religious
organizations llso moollize substantial votunte« resources.. Nearly 30" ot the popul•\ion
reported volunteering for churches and congregations in 1989. Many mo~ contributed time
to rellgioully·motivated human service and education PI'O&amp;mllS·

Religious organizations are a major inf1uence in dcvclopln&amp; tho value of &amp;ivins and service ·
to both spiritual and seeular causes. Eighty percent of the members of Rligious organizations reponed that they made charitable contrlbutlons in 1989, and fifty-nine percent
reported volunteering, in both cases a h~ propo~on than the population as a whole.
Churches and othet religious organiza.tiom are mediating structure~, UnJdng !he individual
to the larger aocJety. They provide a $Cil5c of eom~unity and belonging in a modem culture
often marked by fra~JnentaUon and alienation. · •
-

Compassion : In addition to the eoftduc:t of worship services and othe:r liturgical lQtiVities,
rcUgious OIJII1iz:ations are engaged In a broad ran&amp;• of reliaiously~motivate.d pastoral,
healing, teachin1, preachinc, and other mlnistrlea. leligious or,anizationa throuihout the
oountry arc actively involved in f®ng the hvncry, clothing th~ naked. housing .the
· homeless, educatina the unschooled, healing the 5ick, and comforting the beteaved.

Ninety-three percent of all local religious congrecationJ have human servic:e programs.
Pour-fifths offer farnUy counseling, attd one-third provide meala or shelter to the poor. ·
Some seventy-eight percent donate for international rc1iel or missionazy activity, and

two-

thirds sponsor hospices. health programs, bo!PIWs. or provide for ~ disabled, retarded, or

j1'

L

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~·, .~

~

I

other people in crisis. ~ congre,ations made SS.S biWon in direct &amp;rants to other
groupa, and paid $10.7 billion lot edu~tion, hu~ HtYiees, ani! health programs.
Pluralkm: Freedom of religion is fundnmental to ARlerlcan lire. This freedom is reflected
ln the more than four thousand rdlglous dcnomlnat:iolls and sects in the United States •• aU
with va.tylng degrees of difFerent theoloJics, world view&amp;, and methods or ministry. Indeed,
Justice Brennan reoognlud that •government cranta cxomptiona lo reli3ious organization•
becaliSe they uniquely contribute to the plunlism of American &amp;Ociety by their rellgloua
aotivities. • J!al:z v. Tu; Commiatlon. 397 U.S. 664, 689 (1970).
Civic PartlclpRtlou: Rdi,ious ortaniulions arc not divorced from public life. Religious
groups foster the value O( ciViC participatiQn by liWocating Id.iglously-based values, &amp;Ucb U
·justice, compusion and serviee, which aro ~dal iO 1he preservation and survival of the
society and of QOIDmunity life. Religious organizationa a1ao cnC()ura&amp;• community
participation in civic life through their challenges to th~ status quo. Nearly every significant
socl~ advance ova the past two hundred years-t:rom nbolition, to the progressive
movement. to civil rl1hts-..has been begun or affeeted by religious advocacy of adherenoe to

hiaher principles ot conduct

·

Developmeot ofBuman Pollmtial: Religious organizations affirm the dignity and worth of
human beings and work Cot the development of that resource. The real value of faith is
judged, at least in part, by tho ~tent to wbleh Jives can be chansed and Improved by it.
Religious ministries incll* the operation of chlld care centers, immiaratlon pro~ms,
sertlinarles, homes for the apt. 11\Wion IOCietiel, orphanages, hospices, health-care facilities,
o1emcntary and secondary scltools, colleges, youth camps, and retreat centers.

. . .
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-.

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                    <text>RECOMMENDED PROCESS
FOR
DEVELOPMENT OF MICHIGAN NONPROFIT "WHITE PAPER"
(MICHIGAN NONPROFIT F O R U M )

Background
At its April 4 meeting, the Michigan Nonprofit Forum Public Policy
Committee agenda to form a task force to develop a succinct but forceful
"White Paper" on the Michigan Nonprofit Sector in terms of its identity,
service and recognition in Michigan tradition and law. It was agreed that
such a document should build upon and flow from rather than reinvent
efforts to develop such a program at the National level and then integrate
unique Michigan perspectives for use within this state. A task force
consisting of Edward Slews, Chair, Joyce Brown, Sister Monica Kostielney,
Maryellen Lewis, Linda Patterson and Herbert Yamanishi was formed.
The national organization, "Independent Sector" is developing such a
national statement, "The Work of the Volunteer Sector" through a steering
group organized into eight sub sector groups: arts, civil and human rights,
education, environment, health, public official, religion and social
welfare. The Michigan Nonprofit Forum's Executive Director Maryellen Lewis
and Public Policy Committee Chair Edward Blews have discussed this process
and the opportunity for Michigan inputs with Independent Sector Vice
President Robert Smucker.
In view of the Independent Sector process, it makes much sense to
coordinate the Michigan White Paper time frame with the Independent Sector
process.
RECOMMENDATION FOR MICHIGAN NONPROFIT FORUM PROCESS
THAT THE MICHIGAN NONPROFIT FORUM PUBLIC POLICY COMMITTEE,
THROUGH ITS TASK FORCE APPOINTED FOR THIS PURPOSE, ENDORSE THE
DEVELOPMENT OF THE WHITE PAPER STATEMENT IN THE MICHIGAN NONPROFIT
SECTOR THROUGH A PROCESS PARALLELING AND UTILIZING THE WORK BEING
DONE ON A SIMILAR NATIONAL STATEMENT BY THE. INDEPENDENT SECTOR.

EOB:jej:16.59

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                    <text>OCT 0 1. 19""
National Council of Nonprofit Associations

September 25, 1992

Dear Friend,
Enclosed is a White Paper developed by NCNA and delivered to President George Bush
and Governor Bill Clinton for the purpose of informing them about ways in which
government can strengthen and enrich communities in America through local, communitybased nonprofit organizations.
These recommendations were developed by the
PresidentiAl RAcf)mme'"!dPtirns Task Force of NCNA, and w~re r':wiewerf, expanded, and
enhanced by the participants at NCNA's recent Annual Meeting which included nonprofit
representatives from twenty of the largest states in the U.S.
We believe these recommendations--if implemented--will dramatically improve the climate
_for nonprofits to innovate, will strengthen the important partnership between government
and the nonprofit sector, and will greatly expand the services provided by nonprofits that
improve the quality of life in our communities.
Entitled "How Government and Non profits Can Strengthen ar1d Er .rich American
Commun ities,'' the Write Paper urges both candidates to promise a restructuring of the
current burden of federal regulations that undermines much of the no ; , r.~rutit sector's
capacity for innavation. The NCNA also urges both presidential cal1d;da1&lt;·s to pledge a
reassessment of tr1e tax code's effects on the nonprofit sector's iiteblood--financial
contributions from individuals aod corporations. Among other recorrm.enaations, NCNA
urges both r;and ida!es to hold a White House Conference on Nonprofit Initiative, . " .. .to
recognize the value of philanthropy, charity, and volunteering, and to foster a better
understanding of this vast part of our social fabric that is the nonprofit sector.
We look forward to your comments.
Sincerely,

Betsy Johnson and Gerald Kaufman
Co-Chairs

. 1828 L Street, NW, Suite 505, Washington, D.C. 20036 (202) 785-3208 Fax (202) 466-5722

�HARMON, CURRAN, GALLAGHER &amp; SPIELBERG
2001 S STREET, N.W.
SUITE 430
WASHINGTON, D.C. 20009·1125
GAIL McGRIBVY HAIMON
DlANI CURRAN
ANN! SPI!LIDG

TILIPHONB
(202) S28·S'OO

PAX

(aoz) Sat-69l8

JANNI G. G.w.ADHBI.

IIJUC I. OlJTZINSTBtN

KAntBRINI A. NIYIR
JBIIICA A. LAOD
•AJJIXANDRA II. ACOSTA
•ADNrrTID ONLY IN PINNIYLVANIA.

MICHIGAN NONPROFIT FORUM
WHITE PAPER ON VALUES AND ACCOUNTABILITY

Draft -- August 2, 1992

Janne G. Gallagher

�FROM

H~RMON,CURR~N.G~LL~GHER&amp;SPIELBERG

09.02.1992

1 5:42

HARMON, CtJllRAN, GALLAGHER A SPIELBERG

INTRODUCTION

Voluntary nonprofit or&amp;anizations are a critical component of American life. Sometimes called
the independent, or third, sector, nearly one million nonprofit charitable, educational, and
reliaious or&amp;anizations touch, affect, and influence our lives from their beginnings to their end. 1
Why these organizations exist in the United States, in such numbers and with such strength, is
an issue that hu been debated for nearly two hundred years. For nearly the same length of
time, debate has ra&amp;ed over how the voluntary sector relates to the other two sectors: business
and government. Less frequently discussed, but equally important, is the partnership between
the voluntary sector and families.
Our legal system traditionally traces the relationship between the voluntary sector and
&amp;overnment to the Elizabethan Statute of Charitable Uses, adopted in 1601, which created an
exemption to the mortmain laws to permit gifts to charitable organizations. Much of the early
law governing the voluntary sector arose in connection with the regulation of charitable bequests
and charitable trusts.
Today, however, the relationship between the voluntary sector and government is defined
principally by the application of tax law, Nonprofit organizations organized and operated to
carry out charitable, educational, religious, and certain other purposes are exempt from federal
corporate income tax. Many of these organizations also are exempt from state corporate income
taxation and from state and local property taxation. Depending on the state and the organization,
they may be exempt from paying or collecting state and local sales tax. Contributions to them,
with some limitations, are ded\lCtible from income when calculating federal, and in many cases
state, income tax liability.
The law of tax exemption recognizes two fundamental rationales for tax exemption: the
inclusive one of promoting the well-being of the community and the limiting one of relieving a
government burden. Economists, primarily addressing the rationale for federal corporate income
taxation, have advanced a market-based set of theories for the existence of voluntary
organizations, principally that they supply goods that the free market cannot supply in adequate
quantity or with adequate quality, Political scientists suggest that the reason for the existence
of the sector is one of government failure: that nonprofit organizations supply services that

1

In order not to get bog&amp;ed down in debates over nomenclature, I have chosen to use the
term voluntary sector in this paper to describe the group of nonprofit organizations which are
exempt from tho federal corporate income tax under section 501(c)(3) of the Internal
Revenue Code and eligible to receive tax-deductible charitable contributions.

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. Page 2

government either cannot supply, as in the case of reli&amp;lous worship, or does not supply in
adequate quantity or quality due to lack of political consensus.
Some thinkers, however, sug&amp;est that both the economists and the political scientists focus too
heavily on what the voluntary sector does-what services it supplies-i&amp;norlng or dismissing
what it is-what values it fosters and encourages. They argue that the voluntary sector is not
just a manifestation of government or market failure, but a distinctive and vibrant institution that
enables both aovomment and tho market to function.
The flrst section of this paper discusses three pivotal values which aro taught and practiced in
the voluntary sector. The second considers how those values are manifested in action. The
third poses some issues with respect to accountability, regulation, and control.
THB VALUBS 1

Voluntary organizations collectively create, nurture, and sustain values that are the framework
of American life. They promote altruism in an economic system that rewards attention to the
bottom line. They support and encourage pluralism in a world that drives toward conformity.
They introduce community to a society that prizes individualism. They provoke, challenee, and
question. They also teach, mediate, and heal. These values make possible both political
democracy and economic capitalism,
Altruism. The voluntary sector affirms that all human beings have a basic moral obligation to

look beyond themselves, to undertake activities that contribute to the betterment of others-other
people, other species, future generations. Regard for the cares and concerns of others is both
a necessary counterpoint to the self-regard which is the basis of capitalism and a foundation for
the dialogue and compromise necessary to democracy. Neither democracy nor capitalism would
survive for long in the absence of altruism.
The value of altruism is at the core of the voluntary sector. It is both the most important
unifylna principle in an otherwise diverse group of organizations and the basis of all other values
encompassed by the voluntary sector. Values rooted in altruism-compassion, humility, respect
for others, concern for the future well-being of the community, justice for all-thread through
the work of the voluntary sector.
Voluntary organizations teach the value of altruism by challenging their supporters to cooperate
generously and unselfishly toward a common good. They offer a structure through which
individuals can participate directly in activities that benefi.t others. One form of participation
2This

section draws heavily on papers prepared for INDEPENDENT SECTOR.

4

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HARMON, CURRAN, GALLAGHER A SPIBLBERG
Page3

is the voluntary contribution of money in support of the work of nonprofit oreantzations.
INDEPENDENT SECTOR estimates that private contributions to these oreanizations totalled
nearly $123 billion in 1990.
There is much more to altruism than just signing a check, however. Millions of people who
contribute to the financial support of nonprofit organizations also give generously of their time.
INDEPENDENT SECTOR estimates volunteers contributed services in 1990 that equalled the
labor of nearly six million full-time employees, about 40% of the sector's total employment.
Pluralism. Pluralism, a central value of American life, is also a unifying principle for the
voluntary sector. America is a land of diversity: diverse populations, diverse religious beliefs,
and diverse political philosophies. Much of America's creativity has been born in this diversity.
The value of pluralism acknowledges that the strength of the nation depends on respecting the
differences among its inhabitants and encouraging debate among competing points of view.
The voluntary sector is critical to maintaining and encouraging pluralism. Each of the nonprofit

organizations that make up the voluntary sector came into being because a group of individuals
sharing a common perspective came toiether to act on their own ideas and values about the
public good.
Some of these organizations act in areas that government is forbidden to undertake, as in the
case of religion. The voluntary sector provides is the home for religious institutions.
Others flourish in areas central to the expression of ideas, where government intrusion carries
the risk of suppression of dissent. The voluntary sector is home to institutions which are
enia&amp;ed in the propagation of diverse ideas, values, philosophies, and cultures. It is the locus
for organizations that challenge social policy and urge the need for positive social chanie.
The ','oluntary sector also is horne to orianizations which meet a wide variety of human
needs-from those that do not command majority consensus to those that benefit from choice
among providers. Individuals who see a need may form an organization to act on it, creating
an alternative to relying either on government or the market.
In all cases, the voluntary sector is pluralism at work.
Community. The ties of community are critical to the functioning of economic, political, and

social life. While teaching and supporting the value of pluralism, the voluntary sector also
makes possible the creation and maintenance of communities.
Community often refers to a geographical unit-a neiihborhood, a city, a state, a nation. The
term also includes groups of individuals sharing a common interest or goal. What matters is that

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the community lives, as John Oardner puts it, 11 in the minds of its members-in shared
assumptions, beliefs, customs, ideas that give meaning, ideas that motivate.''
Vaclav Havel describes the role of voluntary organizations in the emergency of democracy in
Czechoslovakia as one of rehabilitating values, such as trust, openness, responsibility, and love,
which are the foundation of community. Encouraging these community values is at least as
important in the United States to counterbalance the strong encouragement our society gives to
the values of individualism and competitiveness.
Communities bind themselves together through the mediation of voluntary institutions which
bring members of communities together in a variety of ways. Education provides the tools· of
scholarship, discipline, and creativity that enable individuals to participate effectively in
community life. Arts, culture, and the humanities contribute to a community's sense of selfidentification, through preservation and presentation of the cultural expression of community life,
while challenging assumptions and promoting the formation of new ways of perceiving the
community, Human service, health, and religious organizations teach compassion for the needs
of others, provide structures through which members of a community can learn about and work
together to alleviate community problems, and offer a commitment to meeting future community
challenges. Environmental, human rights, and public policy organizations teach fundamental
skills of democratic participation, consensus building, and leadership.

•

•

*

The vaJues of altruism, pluralism, and community are not the only values that the voluntary
sector encourages and supports. But they aro, I believe, the overarching ones. I have attached
a table to this paper that lists a number of other important values identified by representatives
of various voluntary organizations as critical to their purposes. This table may. help stimulate
your thinking about other values your organizations may deem important.
THB ACTIONS

Having established a framework of values as the basic: contribution voluntary organizations make
to society, the question arises of how those values are made manifest. This section of the paper
offers some preliminary thoughts on that subject.
This is a discussion that is just beginning. What follows is necessarily general. The task for
voluntary or&amp;anizations is to define the more specific actions that are appropriate to their
particular charitable purposes. Hospitals and museums, to take just one example, will differ in
how they implement the value of altruism.

::

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PageS

a SPIELBERG

There also is considerable risk that any effort at assessing actions in terms of values will quickly
deteriorate into an effort to justify whatever the organization is currently doing by fitting its
activities into the new catesories. This risk. I believe. is unavoidable. Organizations with a
strong board and staff commitment to self-examination can benefit from the exercise. Others
will not.

Altndnn and Private Benefit. Altruism can be neither taught nor practiced in an oreanization
which is being operated for private. rather than public, benefit. This simple proposition is the
root of the most basic and universally accepted of the legal constraints on the operations of
voluntary organizations, namely that their resources must be used to benefit the public, not just
a small groul&gt; of members, insiders or stockholders, and that their assets must be committed
irrevocably to public purposes. Surrendering the opportunity for private benefit liberates the
voluntary sector to contribute the value of altruism to society.
Altruism and Charitable Contrlbutionr. If altruism is a fundamental value of voluntary
organizations, then one of the basic ways in which it is made manifest is its stimulus to people
to contribute their time and money for the benefit of others. Relying on charitable contributions,
even for a portion of their income. is a risky proposition for voluntary organizations.
Nevertheless, it is a necessary one if voluntary organizations are to nurture the value of altruism .
Few would argue that all voluntary organizations should be entirely supported through charitable
contributions. Government financial support is an important component of many organizations'
operating budgets. Fees for services. tuition payments, admissions charges, and similar
assessments permit or&amp;anizations to recoup part of their operating costs and allow them to
reserve charitable contributions to support a range of activities for which payment is infeasible.
Still, voluntary organizations traditionally have relied on charitable contributions for part of their
financial support and in so doina have created and sustained an institutional mechanism that
encour8ieS people to unselfish behavior.

Altruism and Gift to th1 Community. If one side of altruism is stimulating charitable giving,
its reverse is the gift that voluntary organizations make to others. Enshrined in the law of many
states is a fundamental definition of charity, drawn from an old Massachusetts case, as a gift to
the community. How the gift manifests itself will vary from organization to organization
depending on its basic purposes.
For health and human services organizations, the groups with which I am most familiar, the gift
is one of services, and more particularly one of assuring that services are available to all: the
poor as well as those who can afford to pay for them; the young; the elderly; people with special
needs. Human services organizations realize this value by providing some, or all, of their
services free or substantially below their actual cost and by including individuals who might be
discriminated against by profit·motivated organizations.

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Page6

The primary gift of educational organizations, public policy orsanizations, and those that support
art, culture, and humanities, is ideas. The challenge to all of these organizations is to see that
their gift of ideas is not confined to an educated elite.
Religious organizations give faith. They offer a vision of hope for humanity and a basis for
making individual choices that are rooted in justice, compassion, and service, rather than selfinterest. The outpouring of charitable support for religious organizations is perhaps the most
striking example we have of altruism ln action.
An organization's gift to the community should relate directly to its charitable purpose. Prom
time to time, organizations may do something that ben~fits the community because it suita an
institutional need. A hospital, for example, may pay for a stop light in front of its entrance.
While the community benefits In the sense that it avoids spending tax dollars for this project,
the benefit is not one that clearly and substantially relates to the hospital's basic purpose of
providing health care.
Pluralism and R1rp1ctfor Dlven/Jy. If pluralism is a central value of the voluntary sector, then

pluralism should be manifest in the actions of individual organizations. Pluralism is expressed
most obviously in the creation of organizations that support and encourage different beliefs,
argue for different points of view, and provide services that respect the traditions and culture
of different parts of the population. The challenge of pluralism for these voluntary organizations
is to continue to be different: to confront the conventional views of society, to compel
communities to reexamine their values and the reasons for their existence.
The challenge of pluralism is greater for more traditional voluntary organizations. For them the
questions include whether the leadership is willing to listen to views that differ from theirs;
whether a service organization respects the beliefs and opinions of its clientele; whether an arts
organization reaches beyond the traditional canon to present works that are difficult or
unpopular, or which are rooted in other cultures and traditions: whether an organization exposes
its membership to people, places, and ideas which they might not otherwise encounter.
As i!l the case of altruism, all voluntary organizations should be able to explain clearly and
convincinaly the ways in which they teach and practice the value of pluralism.
Community and Trust. The task of community-building has never been more important. With
our political institutions increasingly in disarray, voluntary organizations may be the country's
last, best hope to rebuild the fundamental sense of trust and openness on which community is
built. Trust is central to community and knowledge is central to trust. Objective manifestations
of trust include such simple, but difficult to attain, measures as openness, honesty, and fair
dealing, particularly in areas where they cannot easily be monitored. A nonprofit hospital
should not create or facilitate an environment in which patients are subjected to unneeded treat-

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HARMON, CtllUlAN, GAUAGHER a SPIELBERG
Page7

ment. A nonprofit home for the aging should be particularly sensitive to the need to protect iu
dependent residents from abusive treatment.

Community and Und1rrtandlng. An important part of the contribution of voluntary
organizations to buildin&amp; community is bringing people toaether to accomplish a common goal.
The actions needed to implement this principle include a willingness to reach outside the
organization in a variety of ways to teach people about other needs. other cultures, other
communities. All voluntary organizations can take actions that foster the growth of community
knowledge and community understanding. Voluntary organizations also should act as mediators,
seeking solutions to divisive community problems.
Community and Panicipatlon. Voluntary organizations must be inclusive. They must regularly
examine and remove barriers to participation, whether these are financial, social, or rooted in
the perception that certain kinds of institutions are primarily for an elite.
Community cmd Continuity. Finally, voluntary organizations should contribute to the building
of community their commitment to preserving the past and to planning for the future. Since they
are not driven by the need to realize short-term profits, or the desire to get reelected to political
office, voluntary oraanizations are well-suited to undertake the tasks of helping communities
understand and preserve their roots, while plannin&amp; ways to assure that the community will
survive and flourish in the future. Objective manifestations of this aspect of the value of
community include a commitment to provide services when they are unprofitable, as well as
when they are; the refusal to abandon a neighborhood or a city that has fallen on economic hard
times; and efforts to rebuild failing communities.
ACCOUNT ABILITY

To whom should voluntary organizations be accountable, and how should that accountability be
measured? There is no more difficult question.
The answer lies, I believe, in a combination of accountability mechanisms that protect the
essential independence of voluntary organizations while acknowledging the need for some form
of external discipline to prevent abuses.
The balance of this paper discusses some of the issues associated with accountability.

Accountability to Self. The first, and most important, form of accountability is the duty of the
organization to regularly examine itself. Every voluntary organization should have a built-in
process to examine how its activities embody and perpetuate the basic values of voluntary
organizations. The nature of the process, and the frequency with which a self-examination is

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conducted, will differ from organization to organization depending on the organir.ation's size and
the complexity of its mission.
Mission 1tatements are an important part of accountability to selC. They lihould address the
fundamental values of altruism, pluralism, and community and identify how each of the
organization's activities supports and encourages one or more of those values. Mission
statements also should identify additional values that are fundamental to the organization's
purposes, and describe how its activities perpetuate those additional values.
Organizations should regularly examine their activities to determine whether they match
community need in light of the organization's values. Community need, not .economic return
or institutional self-interest, should be the primary basis for institutional decisions. While the
organization's financial resources, and the experience and abilities of its staff, will play an
important role in the final decision of which activities it undertakes, a willingness to take
institutional risks and to seek additional sources of support mark organizations' commitment to
altruism, pluralism, and community.
Efforts are underway among some groups of voluntary organizations to devise methods of selfassessment. The Catholic Health Association's Social Accoun~ablllty Budget is a notable
example which provides detailed euidance to hospitals seeking to plan for and report the benefits
they provide their communities, and especially services to the poor. The American Association
of Museum's new report, Excellence and Equity.· Educmlon and the Public Dimension of
Museums, contains specific recommendations for making education central to museum's mission
and for increasing diversity in museum operations and programs.
AccountabU/ly to th1 Public. Voluntary organizations owe their donors, both present and
prospective, regular explanations of what the organization is doing and how it is spending its
money. This includes accounting for how much of its budget is spent on overhead, on
fundraising, and on program.
Many believe that the discipline of regularly seeking contributions from the public is an
important form of accountability. I believe that discipline works best where fundraising is
carried on at the community level with significant involvement by volunteers. As contributors
become more distanced from the organization, it becomes much more difficult for them to know
what the organization is doing and how it is spending its money.

Accountability to Gov1rnment. The present legal system enforces nonprofit accountability
primarily through the tax system and secondarily through the statutes governing the organization
of nonprofit corporations and the authority of state attorneys general to regulate charities.
Regulation at the federal level is vested almost solely in the Internal Revenue Service's enforcement of tho tax code.

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Page 9

State tax reaulation varies from state to state, but generally follows a pattern under which the
state legislature first decides which nonprofit purposes merit property or sales tax exemption.
Thereafter, local government authorities exercise accountability through their power to grant,
deny, or challenge the entitlement of particular organizations to property tax exemption. This
exercise of accountability is reviewable by tho courts, sometimes with an intermediate review
by a state administrative agency. The state department of revenue, or equivalent, generally
administers the state's sales tax exemptions, issuing regulations and rulings which also are
judicially reviewable.
State attorneys aeneral typically investiaate charges of financial mismanagement, including
claims of false and fraudulent solicitations of charitable contributions. Regulation of charitable
solicitation has been a primary preoccupation of many of these offices in recent years.
More significant than the identity of the enforcement authorities, or even the leaat basis for their
investigations, is the question of what accountability measures are appropriate for government
investi&amp;ation. I have suaaested that the most important issue in addressina the rationale for the
existence of the voluntary sector is the values it teaches and practices. Legal accountability,
however, requires objective criteria if the law is to be enforced ln an even-handed manner.
Certain values lend themselves. at least in a aeneral sense, to objective criteria. Thus,
government periodically steps in to enforce the rules barrina private benefit. Where aaroement
exists that an organization should manifest altruism by making a gift to the community, legal
principles can be constructed to measure whether a aift is occurring. If there is a consensus that
organizations should be supported, at least ln part, by charity, that too can be measured.
Individual oases will lend themselves to disputes over issues such as the point at which
reasonable compensation for services rendered becomes impermissible private inurement and
how much charity an oraanization must provide to be considered to have made an adequate &amp;ift.
However, mechanisms exist for resolving these disputes. While there is a groat deal of room
for improvement of these mechanisms, particularly at the state level, tho point remains that these
criteria can be measured and enforced.
Other values are more difficult to translate into an accountability mechanism; some are
completely inappropriate for governmental supervision. For example, this paper identifies
pluralism as one of the three fundamental values of the voluntary sector; yet if government were
to take a role in tryin&amp; to enforce pluralistic behavior, the result would be the rapid destruction
of the value, as government substitutes its judgment for that of the organization.
A substitute for direct accountability is enforcement of surrogate requirements intended to make
the organization's proper functioning more likely. The role of the board is paramount here.
Conventional and widely-accepted principles governing the structure of boards of directors of

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Page 10

nonprofit organizations do tend to promote, although they by no means guarantee, a board that
will exercise its supervisory function in the best interests of the organization.
Board Members Must BQ Inde.pendeot, Boards made up of or dominated by an organization's
paid staff or other insiders are not in a position to independently oversee any organization,
voluntary or not. There are a few exceptions to this rule, as where paid staff is subject to a vow
of poverty or a similar binding commitment. Outside the religious community, however, these
exceptions will be almost nonexistent.
Boards also should be of a size appropriate to the organization's financial resources and mission.
Three is ~he bare legal minimum in most states, although some allow one. The National
Charities Information Bureau recommends a minimum of five. Most organizations should have
more if the board is to adequately govern the organization.
Board Membon Must be volunteers. While most organizations still adhere to it, there is debate
about this principle. Two main arguments support paying board members for their services.
The first is that some voluntary organizations with complex structures and financing have
difficulty in obtainin&amp; the services of competent, experienced directors without compensating
them. The second is that expecting directors to be volunteers may discourage participation by
the less affluent who, it is argued, are less able to make the contributions of time required.
Both these ar&amp;uments have weight. Overriding them, however, is the simple principle that
directors who are paid to perform the task generally eventually will lose the commitment to
community that characterizes volunteers. Again, the exceptions to this rule lie in the religious
community.
The principle that board members should be volunteers does not exclude payment for costs
incurred in serving. This includes travel and child care.
5gards Must Meet Rceularly and Exercise Their Supervisory Rcsooostbility. We are all familiar
with the board that never, or rarely, meets and, when it does, rubber stamps the decisions of
paid staff. Sooner or later, those organizations get in trouble.
Great~r Regulalton of Gov1rnanc1 SttUctures: An issue worth examining is the appropriate
balance between tightening current legal requirements for institutional governance, which
generally are fairly minimal, and the limiting effect that tightening the requirements would have
on the ability of individuals to form new organizations.

N1gotiated Accountabllily. Utah is experimenting with a limited form of what I am terming
negotiated accountability. This method of accountability requires hospitals and health care
organizations to meet periodically with tax officials to discuss their missions and their plans for
accomplishing them, including a detailed explanation of how they will provide charity care and

�.. ~ ."" '"' " ' '-U IOOH~'

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Page 11

the other community benefits they
working.

wm offer.

l have no information about how this process is

Conducted in &amp;ood faith on both sides, this process has some promise. However, it also carries
the serious risk that disaareements over priorities will lead to efforts to substitute the aovemment
official's judgme.nt for that of the voluntary organization's board .

*

•

•

Public discussion of these difficult issues is essential. Public discussion can lead nonprofits to
refocus their attention on their missions and to make needed chanaes in their operations. Public
discussion also is an important vehicle for educating the community about the role and values
of voluntary organizations.

p. 13

�.
Q_

Table 1 - Values Identified by Subsectors of INDEPENDENT SECfOR

Arts, CUlture
aad U...Uties

EdtJc'411iOD

EavimmDcat

llraJth

Altruism

•

•

•

•

Community

•

•

•

•

HuWRII
Righls

•
•

•

Compa«ion

u.u- Sci'-

N6:

~

PUiicy

•
•
•

•

•

•

•
•

•

Creativity

•

•

•

•

Dcmoc:ncy/Civic
ParticipaiDl

•

•

•

DiscipliDe

•

. EdlicsiFailb

I

•

.Excelleare

•

•

•

-

•

FaimessiTrost

•

Future
HIIIDiiiiD

Rdigim

Polalbal

•

-

Pluralism

•

~

•

SddaiSbip

•

•

•
•

I
I

•
•

,

•
•

•

•
•

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                    <text>CAMPAIGN FOR VOLUNTEERISM
1992-93 — Michigan's Year of the Volunteer
MISSION STATEMENT
(ADOPTED by the Campaign Committee on December 16, 1991)

PURPOSE: TO PROMOTE VOLUNTARISM ACROSS THE STATE OF MICHIGAN
AND TO CREATE A CLIMATE OF COMMITMENT TO VOLUNTEERING
WHICH PERMEATES MICHIGAN'S LEADERSHIP,
ITS INSTITUTIONS AND ITS COMMUNITIES.

GOAL1
Help to increase/improve the structures
which support volunteering in Michigan's
institution*: and rnmmunities:
especially VOLUNTEER CENTERS,
but also including:
school volunteer programs,
college student volunteer bureaus,
workplace volunteer councils and incentives,
and many others.

GOAL 2
Help to increase volunteering.
especially in the 35% of citizens
who express willingness to volunteer
but do not.

ref:12/16/91,mvcinusn.txt,pgnis\cmpvol,6300

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

[DRAFT]
Minutes
of the
Grantmakers/Grantseekers Seminar V Program Committee Meeting
Tuesday, February 9, 1993 - - 10:00 to 1:00
Kellogg Center, Lansing, Michigan
Members Present:
N . Charles Anderson
Susan Bolhouse
Charles A. Infante
Kenneth Isherwood
Ethel Kage
Gene Keilitz
Barbara Owens
Helen C. Philpott
Diana R. Sieger
Glenn Stevens
S. Mark Terman

Patricia R. Waxweiler
Sr. Jacqueline A. Wetherholt
Pamela Wong
Staff Present:
David 0 . Egner
Donna M. Clarke
Amanda Osborne
Carrie Weaver

1.

Call to Order: With the Co-chairs present the meeting was called to order at
10:15 a.m. Those present introduced themselves. H . Philpott commented that the MNF
January retreat was a success. She noted that the MNF Board strongly reaffirmed their
commitment of strong support for the grantmakers/grantseekers seminar.

2.

Review of the Minutes: The minutes ofthe October 6, 1992, meeting were approved
as circulated.

3.

Review and Update on Keynote Speakers Selection: As stated in the
January 7, 1993, memo to the Program Committee, Rosalyn Carter is unable to be the
keynote speaker due to a last minute commitment. D . Egner reported that Russ Mawby,
CEO and Chairman of the W.K. Kellogg Foundation, will be the morning keynote
speaker representing the Michigan perspective. D . Clarke indicated that
Samuel Betances, Professor of Sociology at Northeastern Illinois University, will give
the afternoon keynote address representing a national perspective. Dr. Betances also
graciously agreed to participate in the afternoon panel discussion on diversity. D. Clarke

�acknowledged Suzanne F eurt for her outstanding efforts in securing Dr. Betances as a
speaker.

4.

Review and Update on Corporate Sponsorships and Recognition Strategies:
P. Wong has secured Comerica Bank/Woodbridge Capital Management and
Blue Cross/Blue Shield ofMichigan as $2,500 sponsors. Comerica has asked that they
be the only bank sponsor. They will provide signs for the continental breakfast and
handouts at the registration area. Comerica will allow MNF to include conference
materials with the handouts. P. Wong commented that she has received a good response
to the conference from corporations and asked the committee to review a draft
sponsorship letter. The committee approved the language of the letter which P . Wong
will send out at the end ofFebruary. She would like to secure $10,000 in sponsorships
and asked the committee if they could send her any contact names that they feel would
be interested.

5.

Update on Registration Brochure: D. Clarke reported that the brochure, which is
similar to GGS registration brochures in the past, is progressing on schedule. A draft
copy has been sent to the printer and should be back around the first week ofMarch.

6.

Update on GGV Session Plans:
-review logistics: D. Clarke reviewed an outline ofMay 14 as follows:
8:00-9 :00
9:00-9:45
10:00-11:45
12:00-12:45
1:00-1:45
2:00-3:30
3:30-4:40

Registration
Morning Keynote
Concurrent Sessions
Lunch (Pre-set)
Afternoon Keynote
Concurrent Sessions
Networking Reception

-review registration cap : D. Sieger commented that she would like to continue the
discussion from the October 7, 1993, meeting on implementing a registration cap of 800
people. D. Egner expressed that limiting participation to 800 would not threaten
conference revenues. Further, he noted that conference coordination and participant
satisfaction have improved when GGS attendance was below 1,000. P. Wong suggested
that questions regarding registration size should be included on the brochure. It was
expressed by D . Clarke that although space was currently limited on the brochure,
questions could be incorporated on an evaluation form at the conference. Additionally,
the format for future brochures could be adapted to include more evaluation questions.
a. Displays: J. Wetherholt reviewed the draft exhibitor contract with the committee.
One minor title change was made and the contract was revised to include a line stating
that a nonprofit must include a tax exemption letter with their contract and check.
J. Wetherholt will begin to distribute the contracts to exhibitors at the end of the week.

2

�b. Futuring /Demographics: K. Isherwood reported that he expects Larry Ledebur of
Wayne State University to confirm as a speaker for this session. D . Egner expressed
that Robert O'Conner ofUnited Way could serve as a backup speaker.
c. Volunteerism: D . Egner indicated that the volunteer session will focus on
organizations being volunteer friendly, effectively and efficiently. The speakers for this
session include Dorothy Munson of Butterworth Hospital, Darryl White of the
Midland Voluntary Action Center and Geneva Williams ofUnited Community Services.
d. Media and the Nonprofit Sector: D. Clarke reported on behalfofC. Murray. This
session will focus on the role the media and the leadership of the nonprofit world play
together to bring a greater awareness to the public of the impact and importance of the
voluntary sector to all Americans. The speakers will be Chris Alexander of
WJRT-News, Luther Keith ofThe Detroit News, Mary Kramer of Crain's Detroit
Business and Byron MacGregor ofWLLZ-FM Radio .
e. Community Leadership Programs: P. Wong discussed this session on behalf of
J. Lore. The session will focus on the role of community leaders in educating and
sensitizing emerging and existing leaders to the issues and responsibilities of community
leadership. Speakers on this panel are Agustin Arbulu ofMacDonald &amp; Goren, P.C.,
Ann Hoag ofLeadership Detroit, Matthew Meadors of the Grand Traverse Chamber of
Commerce, Sudie Richardson ofLeadership Flint and B.J. Scott of
Leadership Grand Rapids.

f Meeting the Community Challenge: D . Clarke reported on behalf of S. Katt and
D . Bostic Robinson. A panel of grantmakers and grantseekers will discuss examples of
successful projects within communities designed to meet community needs and foster
a better quality oflife. The speakers for this panel include N . Charles Anderson of
Council of Michigan Urban Leagues, Ronald Brown of Flint Odyssey House,
Noreen Keating of Pontiac Lighthouse, Mary Jo Kripowicz of Consumers Power
Company and Jack Mawdsley of the W.K. Kellogg Foundation.
g. To Whom Are You Accountable: D . Egner expressed that this session will focus on
a practical discussion on how organizations can use evaluation to facilitate success. The
speakers include Edward Blews of Association oflndependent Colleges and Universities
of Michigan, Thomas Dewar of Junior Achievement of Southeastern Michigan,
William LaMothe of the Kellogg Company and Daniel Moore of the
W .K. Kellogg Foundation.
h. Building Coalitions oflnterest: D. Egner commented that this session will focus on
perspectives on creating positive outcomes through ethnic diversity in your community
and organization. The speakers for this session include Joyce Brown of the
Southwestern Michigan Urban League, Samuel Betances ofNortheastern Illinois

3

�University, David Gad-Harf of the Jewish Community Council and David Stevenson of
Wayne State University.
i. How to Seek Support From Elected Officials: P . Waxweiller reported that this panel
will discuss various methods of support, both financial and in-kind, which will benefit the
nonprofit sector. The speakers for this session include Senator John Cherry,
Senator Vernon Ehlers, Representative Shirley Johnson and Kathleen Straus of the
Jewish Community Council.
j. Informal Networking Reception: D . Clarke discussed the idea of having the
networking reception be in its own room this year. In the past it was hard to evaluate
how many people stayed for the reception. C. Infante suggested that this room be open
all day for people to network. The idea of having the reception in one room, open all
day, passed.
7.

Discussion of Conference Title/Attendance by Grantmakers: H . Philpott indicated
that there had been some concern about the Grantmakers/Grantseekers title because
there aren't many grantmakers that attend. D . Egner suggested that MNF might
collaborate with CMF to get more grantmakers to the conference and ensure that there
are sessions geared towards grantmakers. J. Wetherholt commented that
Grantmakers/Grantseekers should have a session just for trustees or volunteers.
S. Bolhouse suggested that every year the title should say "A Partnership for Caring
Communities." The discussion of the title will resume in the planning meetings for
Grantmakers/Grantseekers VI.

8.

Discussion ofMedia/PR Strategies: S. Bolhouse commented that we might want to
approach the media to do a series on diversity before the conference. P . Wong
suggested that C. Murray ask Luther Keith, of the media panel, to give GG5 some
publicity. D . Sieger noted that the committee should personalize their approach to the
media. C. Infante indicated that the committee should contact the public relations
committee of the Community Service Commission to get ideas. It was decided that
D . Clarke, D. Egner, H . Philpott and D . Sieger meet with the W.K. Kellogg Foundation
media staff to discuss appropriate media strategies.

9.

Request for Volunteers: D . Clarke indicated that her goal for volunteers is 18 people.
This goal would be met if every committee member volunteered one person. She would
like to have the names of these volunteers by April 1st.

10.

Review of Timeline, Logistics and Next Steps: D . Sieger said that the final planning
meeting is March 23rd. D . Clarke reminded the committee that May 13th is the
speaker's dinner and reception.

11.

Adjournment: The meeting was adjourned at 12:30 p.m.

ref:30209 .min,committe,ggsprog

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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
MNF Membership Committee Conference Call Meeting
February 26, 1993 -- 11:00 to 1130 a.m.
Kellogg Center, East Lansing, MI

Trustees Present:
Dorothy A. Johnson
John S. Lore
Anne W. Rosewarne
Lawrence O. Wells

Staff Present:
Donna M. Clarke
David O. Egner

1.

Welcome &amp; Introductions: The conference call meeting was called to order by
Dorothy Johnson at 11:00 a.m. Those present introduced themselves.

2.

Review Recommendations of Ad-Hoc Structure Committee (Attachment A): D.
Johnson summarized the recommendations from the ad-hoc structure committee noting
that MNF members will elect the trustees through written ballots using nominating
committee recommendations. The board of directors will set objectives and policies of
MNF based on the recommendations of MNF's standing and ad-hoc committees. After
discussion, the committee unanimously approved a motion by J. Lore and seconded by
A. Rosewarne to recommend this Board/Committee Structure to the executive
committee for approval.

3.

Review Proposed Membership Dues Schedule (Attachment B): D. Egner reviewed the
two proposed dues structures noting that Plan A was budget based; while Plan B was
network organization based. The committee agreed that not only was Plan A more
fiscally sound and easier to implement, but it was also the model most other state-wide
nonprofit associations followed. After discussion, the committee unanimously
approved a motion by J. Lore and seconded by A. rosewarne to recommend the budget
based Plan A dues structure to the executive committee for approval.

4.

Adjournment: The conference call meeting adjourned at 11:25 a.m.

ref:mbr30226.min,cm/mbr

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                    <text>MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, 1\flCIDGAN 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
September 23, 1992 -- 9:30 to 12:00
W.K. Kellogg Foundation, Battle Creek, MI

Members Present:

Guests:

N. Charles Anderson
Edward 0. Blews, Jr.
Robert E. Ivory
Dorothy A. Johnson
Maryellen J. Lewis
Russell G. Maw by
Helen C. Philpott
George G. Romney
Herbert Yamanishi

David 0. Egner

Staff Present:
Donna M. Clarke
Carrie A. Weaver

1.

Welcome and Call to Order: With the Chair present, the meeting was called to order
at 9:45p.m.

2.

Review of the Minutes: The committee reviewed and approved the minutes from the
July 14, 1992 Executive Committee meeting.

3.

Report of the Executive Director: M. Lewis reviewed MNF's current activities and
products in light of the priorities set by this committee in December of 1991.
Technical Assistance: The technical assistance providers network which MNF has been
working to implement will hold its first public meeting on November 9. The featured
speaker, Connie Julius of the Michigan Community College Association, will focus on
the potential use of teleconferencing for reaching the widest possible audience of
nonprofits with training and professional development opportunities.
M. Lewis also noted that MNF currently produces a composite calendar of nonprofit
training and events of sector-side significance and expects the MNF update of the

�Nonprofit Resource Directory (an updated and expanded version of the Accounting Aid
Society's 1989 directory) to be complete by mid-October.
Campaign for Volunteerism: Much of the administration for the Campaign for
Volunteerism has been being turned over to the Volunteer Centers of Michigan, which
now has its first grant and first staff person. Under Governor Romney's leadership and
with unanimous board approval, MNF has guided the Campaign through its
developmental efforts. There are now 26 communities actively pursuing new strategies to
hard-link volunteering to some of their most stubborn and debilitating challenges.
Recently, with MNF's help and the help of other collaborators, the Volunteer Centers of
Michigan secured the first direct funding of this Campaign. This funding has enabled
VCM to become a staffed association for the first time, setting the stage for MNF to
appropriately shift the Campaign's administrative responsibilities to their Lansing office
(with their preliminary approval).
MNF's role will now center on statewide communication, working through networks to
reach leaders in large numbers of communities, and coordinating Leadership Summits
among local business, government and nonprofit leadership to support the volunteer
infrastructure. As agreed by the Campaign Executive Committee (which includes MNF),
MNF has been initiating, coordinating and following up a series of strategic consultations
between Governor Romney and local leaders (in business, government and the service
sector) in 30-35 communities around the state.
White Paper: The White Paper process is well underway and promises to be MNF's most
significant undertaking so far. Janne Gallagher ofthe Independent Sector drafted a
discussion paper for MNF which was reviewed by the White Paper Subcommittee on
September 18. A revised draft will be available for review by the Public Policy Committee
on October 9 and the full board on October 12.
Summits: The tapes of the first Summit are near completion and a "draft" of the short
video may be available for viewing at the Annual Meeting.
Grantmakers/Grantseekers V: The GG5 Program Committee held its first meeting in
August and planning is underway. A subcommittee has also been created to review the
full cost of the conference and identify direct funding sources. A full report on the
planning efforts was given later by H. Philpott.
Membership Campaign: While the Campaign has been a large, new task for MNF, staff
have worked to make it manageable. The recruitment ofNetwork Associates is
proceeding along positively. A full report on the recruitment efforts was given later by
D . Johnson
M. Lewis concluded her report by suggesting that the committee consider adopting a
measure which would indicate support for Florida's nonprofit community. After
discussion, the committee agreed that MNF and its member agencies should contact sister
organizations in both Florida and Hawaii as an expression of solidarity. H. Yamanishi will

2

�also collect data for MNF's newsletter indicating how individuals can make contributions
to those in need.

4.

Report of the Finance Committee: R. Ivory reviewed the Financial Statements for July &amp;
August and noted several items: Founding Member contributions are below budget
because invoices are not sent out until after the Annual Meeting; interest rates are down
due to the economy; other grants are below budget because they are timed to come in
later in the year; membership dues are keeping pace, but must be carried over throughout
the year; salaries are slightly higher because July had three payroll periods versus two; and
office operations are below budget because much of this expense occurs during the last
two quarters related to GGS . After discussion, the committee approved the finance report
for July &amp; August. A complete first quarter financial report will be available for the
Annual Meeting.
The committee also reviewed the final GGIV Financial Report. M . Lewis noted that
GGIV costs were slightly higher than GGill costs due to the additional mailing expenses
incurred to combat the registration shortfall. She also noted that while there was a
shortfall between revenues and expenses, grantmakers/grantseekers has always been
subsidized by MNF's general fund . This is the first year that the subsidy has been
adequately measured due to the sophisticated tracking systems now in place.

H. Philpott pointed out that the GGV program committee believes opportunities exist for
corporate sponsorship and display fees to offset the conference expenses. The Executive
Committee agreed and authorized the GGV Program Committee to proceed with outside
funding efforts, with the caveat that sponsors and vendors should be carefully selected to
insure that the integrity and mission of the conference are upheld .

5.

Report of the Grantmakers/Grantseekers Committee: H. Philpott reported that the GGV
program committee held its first meeting on August 26. This talented group is off to an
excellent start. At this first meeting the program committee selected the theme identified
possible keynote speakers and developed several breakout sessions as follows :
1993 THEME: "Focus on the Future: Creating Caring Communities"
Possible Keynote Speakers:
John Gardner
James Hayes
Brian O'Connell
Elizabeth Dole
Jimmy Carter
Ed Barlow

Rush Kidder
Peter Goldmark
Peter McTier
John Jacobs
Elaine Chao

3

�Possible Session Themes:
Futuring/Demographicst
Volunteering/Give V
Media &amp; the Nonprofit
Sector
Leadership Issues

Real World Collaboration
Evaluation &amp; Accountability
Public Policy
Legislators' Involvement in GGV

The committee discussed the possible keynote speakers, and while all agreed that any
one of them would be excellent, Jimmy or Rosalyn Carter exemplify the 1993 theme.
The committee also focused on the low conference attendance by grantmakers.
D . Johnson encouraged the program committee to develop an aggressive approach to
grantmakers' attendance. Further, she suggested the program committee consider
renaming the conference and using Grantmakers/Grantseekers as a subtitle. This would
help to clarify to participants that the main focus of the conference is not on interaction
between actual grantmakers per se. The committee also reviewed strategies for
involving more direct contact between grantmakers and participants, possibly through
small luncheon roundtables. Staff will check on this possibility with the hotel and report
to H . Philpott prior to the second meeting of the program committee on October 6.

6.

Report of the Membership Committee: D . Johnson reported that the Network Associate
Membership Campaign is generating positive results with ten new network members to
date:
Network Associate

Recruited by

Association for Child Development
Birmingham Area Seniors Coordinating Council
Concerned Citizens for the Arts
Jewish Federation ofMetro Detroit
Local Initiatives Support Corporation
Michigan Association ofNon-Public Schools
Michigan Association ofProfessional Black Nurses
Michigan Economic Education Council
Michigan Humanities Council
Michigan Primary Care Association

M. Lewis
J. Lore
D . Johnson
D . Gad-Harf
D . Johnson
E. Blews
B. McDonald
J. King
D . Johnson
A. Rosewame

D. Johnson thanked all of the volunteers for their extra efforts and noted that the followup phone calls they were making were the key to recruitment success. The time frame for
concluding the follow-up calls is October 12, with all final contacts to be made by
November 1.
D . Johnson then reviewed the nominating committee's nominations for MNF's Governing
Board. Currently there are openings for four Organizational Members and five
Network Members. She pointed out that the committee focused on the representation
of health and human services on MNF's board, since they comprise the great majority

4

�of nonprofit organizations. Additionally, statistics from the Independent Sector's
Nonprofit Almanac indicate that nonprofit employment is higher in health; followed by
education. Accordingly, committee members placed special emphasis on these fields in
their nominations:

Organizational Members of the Board:
Organization

MNF Contact Person

*Food Bank Council of Michigan
Michigan Association of Rehabilitation Facilities
Michigan Hospital Association

H. Yamanishi (M. Lewis)
H. Yamanishi (M. Lewis)
A. Rosewarne

(*Already an Associate Member)

Network Members of the Board:
Organization

MNF Contact Person

American Cancer Society/MI Section
*Michigan Humanities Council
*Volunteer Centers of Michigan

A. Rosewarne
D. Johnson
M. Lewis

(*Already a Network Member)
The nominating committee decided not to fill all open slots on the Board now, in order to
adequately review those organizations which have yet to join. After discussion, the
executive committee approved the nominations for presentation at the Annual Meeting.

7.

Executive Session: During executive session, the officers accepted the resignation of
Maryellen J. Lewis as Executive Director of MNF. The officers commended
Maryellen on her outstanding stewardship of MNF during its critical developmental
years. The officers then appointed David 0. Egner as Acting Executive Director
effective November 1, 1992.

8.

Report of the Joint Program and Public Policy Committees: H. Yamanishi reviewed the
White Paper process to date. The White Paper subcommittee met on September 18 to
review Janne Gallagher's first White Paper draft. She is now revising the draft to include
the subcommittee's thoughts and comments. This second draft will be available for the
October 9 Public Policy meeting and the October 12 Annual Meeting. After board review,
the draft will be circulated amongst MNF's members and other nonprofit constituencies for

5

�review and input. The subcommittee expects to bring the draft back to the Board at its
May 1993 meeting for final review.
E . Blews will report on policy issues to the full Board at the Annual Meeting following the
October 9 Public Policy meeting.
9.

Report of the Tax Credit Subcommittee: R. Ivory and D. Johnson reported on the tax
credit subcommittee's work to date. R. Ivory noted that the subcommittee held its first
meeting on July 17, 1992. At that time, committee members discussed the changes in
Michigan's tax structure which are looming on the horizon. Major readjustments in state
revenue are anticipated, which will be reflected in how Michigan funds programs. In order
to sustain and advance stable and supportive public policies, nonprofits must understand
clearly the impact of tax credits: (1) on state revenues, (2) on private giving, and (3)
on overall allocation of dollars to public and private causes.
Toward that goal, the Task Force has been convened to guide a study of tax incentives
which may be useful to the Michigan Department of Treasury, which is required to
submit such a study to the legislature by June 30, 1993. The Task Force engaged Gary
Wolfram of Hillsdale College to draft a discussion paper on statistics and rationales
supporting various tax credit policies. This draft is now complete and will be reviewed
by the Task Force at its October 6 meeting for presentation to the full Public Policy
Committee at its meeting on October 9. The draft will then be available for discussion
by MNF's Board on October 12. During November and December, following Board
review, MNF's members will begin to meet with their constituencies and other
members of the nonprofit community to garner their input and participation in this
exploration, toward a broader understanding and consensus on final recommendations.
The Task Force will then reconvene to develop further strategies for stimulating public
awareness and action to begin in January.

10.

Report on the Campaign for Voluntarism: G. Romney summarized progress on this
initiative, with supporting information provided by M. Lewis. He reaffirmed the
importance of this aspect ofMNF's mission and the Forum's unique position to have a
lasting impact on the state. The committee expressed their unanimous support and their
deep appreciation for his leadership.

11.

Review ofthe Draft Agenda for the October 12 Annual Meeting: The committee
reviewed the draft agenda for the October 12 meeting, noting that it would also include a
presentation by P. Warwick and S. Radtke on the Year of the Volunteer; a presentation by
the Tax Credit Subcommittee on the draft discussion paper; and a presentation by Chris
Clark on MNF's second year evaluation. Special emphasis was focused on the proposed
discussion of priorities and MNF's future, which committee members agreed would be a
critical deliberation to prepare for the changes ahead.

6

�12.

Adjournment: The meeting adjourned at 1:00.

Respectfully submitted by:

Herbert Yamanishi, Secretary

ref:exe20923.min,cm/exec,0100

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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.

[DRAFT]
Minutes
of the
MNF Tax Incentive Study Task Force
October 6, 1992 - 9:00 to 11:00
MI Library &amp; Historical Center, Lake Huron Room, Lansing, MI

Present:
Robert Ivory
Dorothy Johnson
Edward Blews
Dave Egner
Suzanne Feurt
David Haynes

John Hopkins
Gary Wolfram
Matthew McLogan
Peter Remington
Herbert Yamanishi

Co-Chair Dorothy Johnson gave welcome and called meeting to order at 9:10 AM.
After introductions, co-chairman Robert Ivory reviewed the progress of this committee to date.
The Committee has retained the Public Affairs Associates, Inc., of Lansing. The group has an
extensive background in dealing with tax issues and the legislature, as well as experience
working with the nonprofit sector. The Council of Michigan Foundations and the United Way
of Michigan have both contributed $5,000 toward the $30,000 consulting fee of the Public
Affairs Associates, Inc. The Committee is in the process of securing funds for the remainder of
the fee. The Public Affairs Associates, Inc. is working jointly with Gary Wolfram, Economics
Professor at Hillsdale College and former Deputy Treasurer of Michigan. Wolfram has drafted
a document that details the economic and social effect of tax incentives for the entire Michigan
nonprofit sector.
Wolfram's paper was then reviewed extensively by the committee. After discussion, it was
concluded that the paper needed to be redrafted to take into account a variety of suggestions
from the committee. The group then agreed upon the following next steps of action:

�1. October 31

A revised draft of the paper will be completed and
distributed to the Task Group.

2. November 16, 3:30-5:30

Task Group Meeting at the Michigan Library &amp;
Historical Center, Lake Erie Room, to discuss the
redrafts and possible future action by MNF.

3. December 9, 9:00-12:00

MNF Public Policy Committee Meeting at Kellogg
Center to review working paper for possible actions.

4. December 15, 10:00-Lunch

Meeting at the Kellogg Foundation, Battle Creek, for
the Executive Committee and interested members of
the MNF Board to discuss the draft and
recommendations of the Task Group.

5. Release of Paper to constituents for reactions.
6. If the Executive Committee and Board deem further action appropriate, Task Force to
develop strategy for future action.
7. MNF Leadership to discuss the pro strategy by MNF or inform the MNF Members of
planned action by individual organizations.
The meeting was adjourned at 11:15 AM.

ref:tax21006.min,cm\pubpol,0100,cw

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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
February 26, 1993 - 1:00 to 3:00 p.m.
Kellogg Center - Room 103, East Lansing, Michigan
Members Present:
Edward O. Blews, Jr.
Robert E. Ivory
Dorothy A. Johnson
Russell G. Mawby
Helen C. Philpott
George G. Romney
Herbert Yamanishi

Staff Present:
Donna M. Clarke
David O. Egner

1.

Welcome and Call to Order: The meeting was called to order by Chairman Mawby
at 1:05 p.m.

2.

Update on GGV: H. Philpott reported that the GGV program committee held its
final planning meeting on February 9. She summarized the committee's work to date
and praised the committee members for their commitment and dedication to insuring
that this conference is a success. The conference will feature two keynote speakers,
Russell Mawby of the W.K. Kellogg Foundation and Samuel Betances of
Northeastern Illinois University. To insure adequate attendance and comfort at all
breakout sessions, and to enhance conference marketing strategies, registration will
be limited to 800. The committee has secured corporate sponsorships from Comerica
and Blue Cross Blue Shield at $2500 each and hopes to secure an additional $3,000 to
$5,000 from other potential sponsors.

�3.

Search Committee Update: H. Philpott reported that the committee has received
almost 300 resumes in response to the Executive Director position advertisement. The
committee retained an independent consultant, Steven O'Connor of the Michigan
Hospital Association Service Corps, to review and rank the resumes based on the
criteria developed at the January Board Retreat. H. Philpott commended
Mr. O'Connor for his comprehensive and detailed efforts during the review process.
The committee will be meeting to narrow the pool to ten candidates. After conducting
reference checks on each candidate the committee will reconvene on March 17 to select
the final candidates for interviews which will take place on March 25. Following the
interview process, the committee will make a final recommendation to the executive
committee. Upon executive committee approval, this recommendation will be submitted
to the full MNF board.

4.

Update on New Technology: D. Egner reported that MNF's development as a
membership organization facilitated the need for a complete re-evaluation of the
Forum's computer systems. Mike Thompson, a consultant to the W.K. Kellogg
Foundation, has generously conducted this reviewed on a pro bono basis and has
secured a donation to MNF of the needed new equipment and software. These system
upgrades and additions will enable the Forum to manage memberships and conferences
and to develop new services which will benefit the sector.

5.

Update on the Campaign for Volunteerism: Governor Romney reported on progress
to date on the Campaign for Volunteerism. He has visited a number of communities to
date in an effort to assemble the leadership coalition necessary to make Volunteerism a
higher priority in each community. 12-15 additional meetings are planned for late
Summer and early Fall. Governor Romney also reported on the progress of the Detroit
campaign which will kickoff the morning of April 19.

6.

Proposed By-Laws Change (Attachment A): D. Egner reported that a bylaws change
was needed to support the Board's decision at the retreat to move MNF in a more
proactive direction in regards to public policy that has potential impact on the nonprofit
sector. Approval of this proposed change at this time would not permit the executive
committee to authorize the staff to take a definitive position on behalf of MNF. It would,
however, permit the executive committee to authorize the staff to become involved, from
an information standpoint, in major public policy issues that may come before the
Michigan Legislature prior to the May 13, 1993, full board meeting. After discussion and
minor editorial changes, the committee approved a motion by D. Johnson and seconded by
H. Yamanishi to recommend the by-laws change for immediate written board approval.

7.

Proposed Personnel Policy Changes (Attachment B): D. Egner reviewed format and
language changes to MNF's personnel polices which were needed for clarity. He also
noted that in order to comply with state and federal regulations, MNF should move from
an optional, salary based benefits plan to a fixed benefits plan. After discussion, the
committee approved the necessary medical/dental insurance adjustments. The committee
agreed to postpone discussion on the remaining personnel items until after the MNF
Executive Director position was filled, to allow for appropriate input by the executive.

�8.

Proposed Board Structure as Approved by Ad-Hoc Committee
(Attachment C): D. Johnson summarized the recommendations from the ad-hoc
structure committee which were unanimously approved by the membership committee
earlier today. She noted that MNF members will elect the trustees through written
ballots using nominating committee recommendations. During discussion, committee
members noted that MNF is currently in a transitional phase as it continues to grow as
a membership organization under the direction of a new executive. Realizing this, the
committee stressed the importance of viewing the board structure proposal as a flexible
system which may need modification as MNF matures. After discussion, the
committee unanimously approved a motion to recommend this Board/Committee
Structure to the full board approval.

9.

Proposed Membership Dues Structure (Attachment D): D. Johnson reviewed the
two proposed dues structures noting that Plan A was budget based; while Plan B was
network organization based. She reported that earlier today the membership committee
unanimously approved Plan A based on the fact that it was not only more fiscally sound
and easier to implement, but it was also the model most other state-wide nonprofit
associations followed. After discussion, the committee unanimously approved a motion
to adopt the Plan A dues structure.

10.

Finances (Attachments F, H, &amp; I): The committee reviewed the finances to date and
a revised 1992-93 budget presented by Treasurer, Ivory. Both were approved
unanimously. The committee then reviewed the long range funding plan. Discussion
pursued concerning the need for this plan to remain flexible and the projects of a deficit
budget in the 1993-94 year. The committee approved the plan as presented.

11.

Adjournment: The meeting adjourned at 3:00 p.m.

Respectfully submitted by:

Herbert Yamanishi, Secretary

ref:exe30226.min,cm/exec,0100

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                    <text>MICHIGAN NONPROFIT FORUM
38 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022

Phone: 517/353-5038 Fax: 517/355-3302
An alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.

Agenda
MNF Board of Trustees
Wednesday, May 11, 1993 ~ 12:30 p.m. - 4:30 p.m.
Hyatt Regency, Houston/San Francisco Room, Dearborn, Michigan

1.) Call to Order/Welcome

Russell Mawby

2.) Approval of November 11, 1993, Minutes [Tab 1]

Russell Mawby

3.) Report of the Bylaws Committee
Paul Williams
Proposed Changes to the Articles of Incorporation [Tab 2]
Proposed Changes to the MNF Bylaws [Tab 3]
4.) Nominating Committee Report [Tab 4]
Confirmation of At-Large Trustees
Appointment of Association Trustees
Establishment of MNF Advisory Cabinet
Election of 1994-95 Officers

Dorothy Johnson

5.) Executive Director's Report [Tab 5]

David Egner

6.) Nonprofit Retirement Program Committee Report [Tab 6]

Gerard Keidel

7.) Membership Committee Report

Anne Rosewarne

8.) Finance Committee Report
Review 1993-94 Revised Budget [Tab 7]
Review 1994-95 Proposed Budget [Budget Tab]

Robert Ivory

9.) Volunteerism Report [Tab 8]

Sharon Radtke
George Romney

10.) Public Policy Committee Report
Review Michigan and Federal Legislative Issues [Tab 9]
Discussion of Tax Incentive Paper [Tab 10]

Edward Blews

12.) Grantmakers/Grantseekers VI Preview

Helen Philpott

13.) Adjournment

FIIE

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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
MNF Board of Trustees Meeting
October 12, 1992 --9:30 a.m. to 4:00 p.m.
Holiday Inn South, Lansing, MI
Trustees Present:
Edward O. Blews, Jr.
Joyce A. Brown
Gale Colwell
Robert E. Ivory
Steven L. Johns-Boehme
Dorothy A. Johnson
Gerard E. Keidel
Justin P. King
Clyde E. LeTarte
Ivan W. Love
Lillian G. Mason
Russell G. Mawby

Beverley L. McDonald
Helen C. Philpott
Judith A. Rapanos
George W. Romney
Anne W. Rosewarne
Frances L. Ryan
Glenn R. Stevens
Kathleen N. Straus
Paul R. Williams
Herbert Yamanishi

Guests Present:
David O. Egner
Constance P. Julius
Staff Present:
Donna M. Clarke
Maryellen J. Lewis
Amanda Osborne
Carrie A. Weaver

1.

Welcome and Call to Order: The meeting was called to order by Chairman Mawby at
9:40 a.m. Those present introduced themselves.

2.

Review of the Minutes [Tab 2]: The minutes of the April 23, 1992, meeting were
approved as printed and distributed.

3.

Executive Director's Report [Tab 3 &amp; 13]: M. Lewis reviewed and highlighted MNF's
achievements and accomplishments over the past two years. (A copy of these remarks
has been sent under separate cover.)
Chairman Mawby then presented M. Lewis with a resolution and gift commemorating
and honoring her stewardship of MNF during its founding years. (A copy of the
resolution has been sent under separate cover.)

4.

Chairman's Report: R. Mawby reported that David O. Egner of the W.K. Kellogg
Foundation has been named Acting Executive Director of MNF. Although he will not

�formally assume this position until November 1, he will immediately begin to work
with committee chairs and staff to review MNF's program goals and commitments. He
will also assist with the executive search process.
5.

Finance Committee Report [Tab 4]: R. Ivory presented MNF's Annual Financial
Statement for the period ending June 30, 1992. He reviewed the Budget Notes for
FY1991-92 and noted that during MNF's second year of operation programs became
more fully operational, the office became fully staffed, and the
Grantmakers/Grantseekers Seminar (GGS) was fully integrated into the budget. On
balance, the year clarified MNF's actual operating costs. These insights serve as the
basis for the PROPOSED 1992-93 Budget.
Additionally, R. Ivory noted that toward MNF's goal of achieving a stable cash flow
after the Kellogg Grant ends in Year 4 (1993-94), $14,000 were allocated to the
reserve in 1990-91. This year's proposed allocation brings the reserve up to $34,819,
approximately seven weeks of operation.
After review and discussion, the committee unanimously approved the 1991-92
financial statement as presented.
R. Ivory then reviewed the Financial Statements for the first quarter of FY1992-93.
Under revenues he noted that Founding Member contributions are below budget
because invoices are not sent out until after the Annual Meeting. Interest rates are
down due to the economy. Other grants are below budget because they are timed to
come in later in the year.
Under expenses R. Ivory noted that salaries are slightly higher because July had three
payroll periods versus two. Office operations are below budget because much of this
expense is related to GGS and occurs during the last two quarters. After discussion,
the committee approved the first quarter finance report for FY1992-93
While reviewing the development of the FY1993-94 budget, R. Ivory presented the
following recommendation:
AT ITS OCTOBER 7, 1992, MEETING, THE BUDGET AND FINANCE COMMITTEE
CONSIDERED THE AGENDA ITEM OF DEVELOPING THE 1993-94 FINANCIAL PLAN. THE
COMMITTEE WAS UNABLE TO FULLY ADDRESS THIS AGENDA ITEM. As PRIORITIES OF
MNF SET BY THE BOARD OF TRUSTEES DETERMINE LINE ITEM ALLOCATIONS, THE
BUDGET AND FINANCE COMMITTEE TURNS TO THE BOARD OF TRUSTEES FOR
ASSISTANCE IN ACCOMPLISHING ITS TASK.
THEREFORE, THE BUDGET AND FINANCE COMMITTEE RECOMMENDS TO THE BOARD
OF TRUSTEES THAT

THE BOARD OF TRUSTEES MEET IN DECEMBER IN A RETREAT SETTING TO
REVIEW THE GUIDING PRINCIPLES OF MNF AND DETERMINE MNF PRIORITIES
FOR 1993-94. THIS MEETING SHOULD ALSO ADDRESS:

�1) THE ROLE OF FOUNDING MEMBER ORGANIZATIONS WITHIN THE CONTEXT
OF AN EXPANDED INVOLVEMENT OF NEW MEMBERS IN MNF;

2) THE NATURE AND SOURCES OF FUTURE GRANTS FOR FUNDING MNF'S
MISSION;
3) THE PROCESS OF DETERMINING PROJECTS DEFINED BY MNF PRIORITIES;
4) STAFFING NEEDS TO ACCOMPLISH MNF'S MISSION.
WITH THE ENDING OF THE THREE YEAR KELLOGG START-UP GRANT AND THE
BEGINNING OF THE SEARCH FOR A NEW EXECUTIVE DIRECTOR, THE RETREAT IS AN
OPPORTUNITY TO MAINTAIN THE MUTUAL "ENLIGHTENED SELF INTEREST" WHICH HAS
DRAWN TOGETHER THE ORGANIZATIONAL MEMBERS, SO THAT WE MIGHT REDISCOVER
VALUE TO SUSTAIN OUR COMMITMENT.
After discussion, the trustees agreed to postpone discussion of this recommendation
until item 14 on the agenda: Discussion of Priorities and Future Plans for the Forum.
6.

Audit Committee Report [Tab 5]: G. Stevens reported that MNF has received a clean
bill of fiscal health for its 1991-92 Audit Report. David Ambrose, MNF's auditor,
has issued an unqualified letter in support of the report and noted that there are no
substantive issues to be brought to the Board's attention. After discussion, the 1991-92
Auditor's Report was unanimously approved.

7.

Membership Committee Report [Tab 6]: D. Johnson thanked those trustees who
enthusiastically volunteered to contact organizations which might be interested in
becoming Network Associate members of MNF. Their dedicated efforts have helped
to create a Campaign which has exceed everyone's expectations. To date MNF has 17
new Network Associate members and nine new Associate members.

8.

Nominating Committee Report [Tab 7]: D. Johnson reviewed the qualifications for
Organizational Members of the Board. The committee made three nominations for
organizational membership to the Board: Michigan Hospital Association, Michigan
Association of Rehabilitation Facilities, and Food Bank Council of Michigan. After
discussion, the nominations were unanimously approved.
D. Johnson then reviewed the qualifications for Network Members of the Board.
Three nominations for network membership were presented: American Cancer Society
- Michigan Section, Volunteer Centers of Michigan, and Michigan Humanities
Council. After discussion, the nominations were unanimously approved.
S. Johns-Boehme then moved that in recognition of the importance of the
environmental sector in our society, that the Michigan United Conservation Clubs be
invited to participate on the Governing Board as a Network Member. After discussion,
this nomination was approved.

9.

Election of New Officers of the Governing Board: D. Johnson reported on the
nominations for officers to MNF's Board of Trustees. She noted that Ed Blews, MNF
secretary and public policy committee chair, wanted to spend more time on public
3

�policy issues and step down from the secretary position. The committee nominated
Herb Yamanishi to replace Ed Blews as secretary. The nominating committee
recognized the need for continuity and stability during MNF's leadership transition and
felt it was important to maintain the remaining slate of officers. Therefore, the
nominations for officers were:
Russell G. Mawby
Helen C. Philpott
Robert E. Ivory
Herb Yamanishi

Chair
Vice-Chair
Treasurer
Secretary

After discussion, the nominations were unanimously approved. The trustees also
thanked E. Blews for his dedicated service as secretary during MNF's start-up years.
E. Blews noted that it was a joy to work with his fellow officers and board members
during these exciting and productive developmental years.
10.

Grantmakers/Grantseekers Program Committee Report [Tab 8]: H. Philpott reported
that the GGV program committee held its second meeting on October 6 and that the
planning for the conference is well underway. Diana Sieger of the Grand Rapids
Foundation is serving as co-chair of GGV; her past experience as co-chair of GGIV has
been invaluable.
GGV will be held at the Hyatt Regency Dearborn on May 14, 1993. The GGV theme
is "Focus on the Future: Creating Caring Communities" and the program committee
hopes to secure Rosalyn Carter as Keynote Speaker. Because the acoustics in the Great
Lakes room are inadequate, there will not be a luncheon speaker this year. Instead
there will be a quick lunch followed by a second general session which will focus on
diversity. This session will be conducted by Dr. Samuel Betances of the University of
Illinois.
H. Philpott also reviewed the final GGIV Financial Report. She noted that GGIV costs
were slightly higher than GGIII costs due to the additional mailing expenses incurred to
combat the registration shortfall. She also noted that while there was a shortfall
between revenues and expenses, Grantmakers/Grantseekers has always been subsidized
by MNF's general fund. This is the first year that the subsidy has been adequately
measured.
H. Philpott pointed out that a subcommittee of the GGV program committee is
pursuing opportunities for corporate sponsorship and display fees to offset the
conference expenses. The subcommittee hopes to attract $20,000 in corporate
sponsorships. Sponsors and vendors will be carefully selected to insure that the
integrity and mission of the conference are upheld.
H. Philpott also mentioned that the committee is looking at the possibility of holding
GGVI at a different facility. For the past three years GGS has been held at the Hyatt
Regency. However, given the limitations of the lunch room and recent problems with
service, the committee felt it was important to investigate other hotels in Michigan.

�11.

Campaign for Voluntarism Report [Tab 9]: G. Romney summarized progress on this
initiative to date. He reaffirmed the importance of this aspect of MNF's mission and
the Forum's unique position to have a lasting impact on the state. The committee
expressed their unanimous support and their deep appreciation for his leadership.

12.

Program &amp; Public Policy Committees Report [Tab 10]: E. Blews reported that this is
indeed an exciting and dramatic time for MNF. He noted that the Summit I tapes are
almost complete and will be available with a written synopsis in the near future.
E. Blews also reviewed the White Paper and its developmental process to date. The
White Paper subcommittee has met twice to review and revise Janne Gallagher's White
Paper draft, which is intended to be a comprehensive statement of values that showcase
the distinctiveness of the nonprofit sector in Michigan. The White Paper can be used to
educate nonprofits, government and business alike on what the nonprofit sector is and is
capable of being.
E. Blews then made the following motion:

THAT THE MICHIGAN NONPROFIT FORUM BOARD OF TRUSTEES RECEIVE THE
DISCUSSION DRAFT OF THE MICHIGAN NONPROFIT FORUM "WHITE PAPER ON VALUES
AND ACCOUNTABILITY," AS REVISED TO REFLECT THE DELIBERATIONS AND WORK OF THE
MNF JOINT PUBLIC POLICY/PROGRAM COMMITTEES ON OCTOBER 9,1992, FOR
PURPOSES OF CIRCULATION TO THE MICHIGAN NONPROFIT COMMUNITY FOR FEEDBACK,
DISCUSSION, FURTHER REFINEMENT AND FORMAL HEARINGS; AND

FURTHER, THAT THE MNF BOARD OF TRUSTEES APPROVE IN CONCEPT THE
PROPOSED SCHEDULE AND PROCESS FOR SOLICITING COMMUNITY FEEDBACK,
HOLDING FORUM HEARINGS AND MODIFYING AND REFINING THE WHITE PAPER WITH
THE GOAL OF FORMAL ADOPTION BY THE BOARD AT ITS MAY 1993 MEETING.
After discussion, the trustees approved the motion.
13.

Tax Incentive Study Group Report: Co-Chairs R. Ivory and D. Johnson reviewed the
progress of this committee to date. The Committee has retained Public Affairs
Associates, Inc., of Lansing. The group has an extensive background in dealing with tax
issues and the legislature, as well as experience working with the nonprofit sector. The
Council of Michigan Foundations and the United Way of Michigan have both
contributed $5,000 toward the $30,000 consulting fee of the Public Affairs Associates,
Inc. The Committee is in the process of securing funds for the remainder of the fee.
Public Affairs Associates, Inc. is working jointly with Gary Wolfram, Economics
Professor at Hillsdale College and former Deputy Treasurer of Michigan. The
committee has extensively reviewed the first draft of Dr. Wolfram's paper which details
the economic and social effect of tax incentives for the entire Michigan nonprofit sector.
The draft is being rewritten for review by the committee in mid-November.

14.

Executive Search Committee Report: Chair H. Philpott reported that MNF will
undertake a "modified national" search, relying on the candidate recommendations of
trustees and key contacts. Advertising of the position will be limited to select Michigan

�publications and the Chronicle of Philanthropy. She indicated the committee will work
on a four-month timetable, anticipating filling the position by February 1, 1993.
15.

Discussion of Priorities and Future Plans for the Forum [Tab 11]: There was
considerable discussion regarding the priorities and future direction of the Forum. The
finance committee's motion to conduct an all-day Board retreat was taken from the table
and approved. Chairman Mawby instructed the Forum staff to survey the membership
for availability of an early January meeting. He also suggested that the executive
committee meet to discuss the most appropriate process to prepare for and conduct the
retreat.

16.

Adjournment: The meeting was adjourned at 3:00 p.m.

Respectfully Submitted by:

Herbert Yamanishi, 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.

Minutes
of the
Executive Committee Meeting
April 29, 1993 -- 10:00 a.m. to 12:00 p.m.
Kellogg Center - Centennial C Room, East Lansing, Michigan
Members Present:
N. Charles Anderson
Robert E. Ivory
Dorothy A. Johnson
Russell G. Mawby
Helen C. Philpott
Herbert Yamanishi

Staff Present:
Donna M. Clarke
David O. Egner

1.

Welcome and Call to Order: The meeting was called to order by Chairman Mawby
at 10:10 a.m.

2.

Approval of Minutes: The minutes of the September 23, 1992, and February 26, 1993,
meetings were approved as circulated.

3.

Proposed Personnel Policy Changes: The committee reviewed the changes which were
made to the MNF Employment Polices and Procedures at the February 26 meeting which
included (1) changing from 12 to 10 paid holidays, (2) adding of a "successor coverage
option" to the medical/dental insurance, and (3) changing the wording to
Resignations/Termination's, Employment At-Will, and Discrimination/Harassment.
After discussion, the committee recommended the following additional changes:
1.

At the end of each fiscal year carry forward of unused vacation days will be
limited to one-half of one year's days.

2.

Unused sick days will carry forward annually. The accumulated total will
be applied to short-term disability. In the event of termination of
employment, accrued sick days are not eligible for reimbursement.

3.

After one full year of service, short-term and long-term disability coverage
and retirement will be made available to each full-time employee.

�4.

After a 90-day probationary period, term life will be available by group
plan to each full-time employee.

5.

New employees' performance will be reviewed after an initial probationary
period ~ 90 days for non-exempt staff and 180 days for exempt staff.

6.

All employee benefits will cease on the last day of employment. Options to
convert or continue health/dental coverage and retirement benefits are
available and will be explained in detail prior to the separation date.
Arrangements will also be made prior to the separation date to pay all due
wages, accrued vacation, and reimbursable expenses to the employee.

3.

Review of Membership/Meeting Report: D. Johnson reported on the recommended
plan of the Board/Committee Structure Committee (attached). The plan, as outlined,
suggested changing the Board structure from an association based, no term limit model to
a more traditional, member elected model. After considerable discussion, it was agreed
that a modified version of the plan would be presented to the full Board. A Bylaw
Committee will be appointed to make the necessary changes to accommodate the new
structure.

4.

Review of Proposed 1993-94 Budget: B. Ivory reviewed the 1992-93 Financial
Summary through March 31 noting that revenues and expenses were coming in on target.
He then reviewed the 1993-94 Recommended Budget. After discussion, the committee
approved this budget and recommended that staff develop a 5 year cash flow plan and a
policy on fund balances. Additionally, the committee recommended that the finance report
format be modified to include a cash flow analysis and estimated actuals for 1992-93.

5.

Proposed Purpose Statements: The committee approved the Proposed Purpose
Statements (attached) after making minor sequence and grammar changes. They will be
recommended for full Board approval on May 13.

6.

Proposed MNF Sponsored Retirement Program: D. Egner introduced the idea of
developing a statewide, nonprofit retirement plan sponsored by MNF. After discussion,
the Executive Committee agreed that a committee will be appointed to fully explore the
possibility of establishing such a plan.

7.

Report of the Public Policy Committee: H. Yamanishi noted that at the April 27
meeting of the Program/Public Policy Committee, members of the committee approved
the following motions concerning the tax incentive paper:
(1.) Recommended the paper as revised be circulated to the joint Program/Public
Policy Committee with a ballot giving members the opportunity to vote yes or no on
the approval of the paper (passed unanimously).
(2.) The committee endorses substantive revisions in concept and recommends (subject
to final editing) the paper to the board for approval (passed 5 to 2).

�H. Yamanishi noted that the ballots were being mailed out this week from the MNF
office and that Board members will be asked to review the tax incentive paper in
preparation for discussion on potential further action regarding this initiative at the May
13, 1993, Board Meeting.
8.

Review of Proposed Agenda for May 13 Board Meeting: After discussion, the
committee developed the agenda for the May 13 Board Meeting as follows:
12:00-1:00 p.m. Informal Lunch
1:00 p.m.
1) Call to Order/Welcome
2) Approval of October 12, 1992, Minutes
3) Report of Search Committee
4) Executive Director's Report
5) Proposed Purpose Statements
6) Proposed Organizational Structure
-Appointment of Bylaws Committee
-Special Meeting Dates
7) Finance Report
8) Proposed 1993-94 Budget
9) Recommended Personnel Policies
10) Report of Membership/Nominating Committee
-Review Current Membership &amp; Projections
-Appointment of Retirement Plan Committee
11) Report of Audit Committee
12) Report of Public Policy Committee
13) Campaign for Voluntarism Update
14) GGV Preview
15) Adjourn 4:30 p.m.

9.

Adjournment: The meeting adjourned at 11:50 a.m.

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                    <text>MICHIGAN NONPROFIT FORUM
38 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
Retirement Committee Meeting
July 26, 1993 -- 10:30 a.m. to 12:00 p.m.
Kellogg Center - Room 110, East Lansing, Michigan

Members Present:
Gerard E. Keidel
Judith A. Rapanos

Staff Present:
David O. Egner

1.

Welcome and Call to Order: The meeting was called to order by Chairman Keidel
at 10:45 a.m.

2.

Review of Objectives: Chairman Keidel first reviewed the four objectives of the
Committee (see attached). These objectives will serve as guidelines for the Committee as
they examine the possibilities of creating a MNF sponsored retirement program for
nonprofits in Michigan.
There was discussion about the need to supply alternatives to as many nonprofit
organizations as possible. With this in mind, and because a number of nonprofit entities
are not eligible for such retirement programs as 403(b)'s, the Committee concluded that
MNF should explore the possibility of providing a number of investment options.

3.

Discussion of Future Plans for Committee: Chairman Keidel has agreed to secure an
attorney specializing in the establishment of retirement programs to advise the
Committee on its options and the optimum program to meet its objectives. Three
possible meeting dates in the month of August have been set for a second committee
meeting with the attorney. Those dates are:
August 10, 10:00 a.m. to 12:00 p.m.
August 24, 10:00 a.m. to 12:00 p.m.
August 25, 10:00 a.m. to 12:00 p.m.

4.

Adjournment: The meeting adjourned at 11:30 a.m.

ref:RET30726,wnwrd\comm\inin

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

[NOT YET ADOPTED}

Minutes
of the
Structure Committee Meeting
Thursday, July 29, 1993 --2:30p.m. to 4:00p.m.
Kellogg Center- Room 107, East Lansing, Michigan
Members Present:
Anne W. Rosewarne
Steven L. Johns-Boehme
David Smith

Staff Present:
David 0 . Egner

1.

Welcome and Call to Order: The meeting was called to order at 2:35p.m.

2.

Review of Objectives: The Committee reviewed the Objectives of restructuring
the Board ofDirectors that were developed at the Board Retreat in January, 1993,
and at the Board Meeting on May 13, 1993 .

3.

Committee Recommendations: The Committee reviewed three possible
alternative structures for the Board ofDirectors. After discussion, the Committee
approved the following motion:
"The Board Structure Committee recommends that Alternative I (see attached), be
presented to the Executive Committee with the recommendation that it go before
the full Board on November 11 , 1993, for approval. The Committee recommends
that, after the restructuring policy has been approved, the procedures for
implementing this plan should be developed through the efforts of the Nominating
and a specially appointed Bylaws Committee. The implementation plan would
take effect at a Spring election ofBoard Members. To aid in the transition to the
new structure, the Board Structure Committee also makes the following three
Committee ofMNF:

�4.

1.

The extension of the current officers of the MNF Board until
June 30, 1994.

2.

That the choice of staff or board participation of the 18 Organizational
Members ofMNF be left to each individual organization.

3.

That no more than one third of the open seats on the Board be occupied by
current Organizational Member representatives."

Adjournment: The meeting was adjourned at 4:00p.m.

ref:S1R30802\wnwrd\comm\min

2

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                    <text>MICHIGAN NONPROFIT FORUM
38 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
August 3, 1993 -- 10:00 a.m. to 12:00 p.m.
Kellogg Center - East Lansing, Michigan
Members Present:
Robert E. Ivory
Dorothy A. Johnson
Russell G. Mawby
Helen C. Philpott
George Romney
Glenn R. Stevens
Herbert Yamanishi

Staff Present:
Donna M. Clarke
David O. Egner

1.

Welcome and Call to Order: The meeting was called to order by Chairman Mawby
at 10:10 a.m.

2.

Approval of Minutes: The minutes of the April 29, 1993, meeting were approved as
circulated.

3.

Finance Report: R. Ivory reviewed the 1992-93 Financial Summary noting that the
fiscal year ended very close to the revised budget approved by the Executive
Committee in March. After discussion the Summary was unanimously approved.

4.

Structure Committee Report: D. Egner reviewed the recommendations of the Board
Structure Committee. After discussion, the committee approved the recommendations
for consideration by the full Board at the November 11 meeting.

5.

Campaign for Voluntarism Report: G. Romney reported on the continued success of
Michigan's Campaign for Volunteerism. As a direct result of the Campaign the
number of Voluntary Actions Centers in Michigan has grown from 13 to 23, and the
number of developing centers continues to grow.

�G. Romney also discussed the concept of a merger between the Volunteer Centers of
Michigan and the Michigan Nonprofit Forum. The merger would provide a sustained
infrastructure for the Campaign and would enhance the ability of both organizations to
address their missions of promoting and strengthening voluntarism in Michigan. After
discussion the committee endorsed the merger in concept and nominated D. Johnson
and D. Egner to represent MNF during the negotiation proceedings. A full report of
the merger discussions will be made at the November 11 meeting.
6.

Program Report: D. Egner updated the committee on several program issues. While
MNF has only received a small number of the tax incentive paper approval ballots
back, the response has been positive. Of the 9 responses received, there were 8 in
support and 1 in opposition.
D. Egner noted that MNF is beginning work on its second Public Policy Summit which
will be held in late fall. The Summit will focus on the issues raised in The
Philadelphia Inquirer and other publications. A panel of 12 individuals from the
government, private and nonprofit sectors will be engaged at the Summit.
D. Egner also reviewed the work of the Retirement Committee to date. The committee
is composed of Gerard Keidel, MASA; Judith Rapanos, MCACA; Matt York, UWM;
and Greg Zerlott, Muskegon Community Foundation. They have been in contact with
several providers and hope to begin accepting bids in the late fall. A more detailed
report will be available at the November 11 meeting.
In closing, D. Egner indicated the Grantmakers/Grantseekers Program Committee
would be gathering soon to begin work on GGVI. The committee structure and
composition has been revised to reflect the co-sponsor ship of the conference by the
Council of Michigan Foundations and the Michigan Nonprofit Forum. The conference
objectives have also been redefined to promote a return to the original mission of the
conference; which was to bring grantmakers and grantseekers together to discuss and
examine common issues of importance and to promote constructive dialogue and
awareness between the groups.

7.

Adjournment: The meeting adjourned at 12:05 p.m.

�</text>
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