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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.

Nominations for MNF Governing Board
(from the MNF Membership/Nominating Committee, 9/21/92)

I. Nominations for Organizational Members of the Board:
1. Michigan Hospital Association (Spencer Johnson, President, Lansing) — an association
representing the nearly 200 acute care hospitals and health care systems and a variety of other
health-related organizations operating in Michigan. The mission is to act as the principal
advocate on behalf of its members, and, by doing so, to help them serve the health care needs of
their communities with an emphasis on accessibility, quality, and cost.
2. Michigan Association of Rehabilitation Facilities (David Smith, Executive Director, Lansing)
~ an association representing 70 facilities throughout Michigan. Founded in 1974, their mission
is to assist rehabilitation service providers in their efforts to provide quality services to persons
with disabilities. The organization works with its members to promote networking, advocacy,
information and research sharing, and technical assistance.
3. Food Bank Council of Michigan (Karen Uhlich, Executive Director, Lansing) — a network of
14 food bank warehouses which in turn serve over 1400 community-based, nonprofit agencies
across Michigan. The mission of the Food Bank Council is the elimination of hunger in the
State of Michigan. Towards this goal, the Food Bank Council leverages resources for food
banks; advocates for federal, state and local food programs; cooperates with other organizations
to advocate for anti-poverty programs; and facilitates cooperation and coordination within the
emergency food system.

�n. Nominations for Network Members of the Board:

1. American Cancer Society/Ml Section (ShaseffHinnett, Executffrej^gector, Lansing) — a
network representing 81 local units in Michigan. This state division of the nationwide voluntary
health organization is dedicated to eliminating cancer as a major health problem by preventing
cancer, saving lives from cancer, and diminishing suffering from cancer through research,
education, and service. One of the oldest and largest voluntary health agencies in the United
States, the Society maintains its priorities and goals through activities developed by the
departments of Research, Professional Education, Public Education, and Service and
Rehabilitation.

2. Volunteer Centers of Michigan (Sharon Radtke, current President, Lansing) ~ an alliance of
the 13 established volunteer centers in Michigan and 26 new or emerging VACs resulting from
their efforts in collaboration with the Michigan Campaign for Volunteerism. Their mission is to
strengthen existing volunteer centers; provide leadership in developing new volunteer centers;
and promote and strengthen volunteerism statewide.

3. Michigan Humanities Council (Ronald Means, Executive Director, East Lansing) — a
nonprofit organization founded in 1974 to foster intellectual and cultural life in Michigan
through its role as a link between the academic world and the general public. Consisting of 23
members, the Council encourages the exploration and conservation of cultural traditions;
encourages and supports the participation of institutions and organizations in sponsorship of
public humanities activities; and engages Michiganians of all ages in the challenges to mind and
spirit presented by the humanities.

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              <name>Source</name>
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              <description>A language of the resource</description>
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      <description>A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text.</description>
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            <description>An unambiguous reference to the resource within a given context</description>
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            <description>A name given to the resource</description>
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                <text>Michigan Nonprofit Forum 1992-10-12 board book governing board nominations</text>
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            <name>Creator</name>
            <description>An entity primarily responsible for making the resource</description>
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            <description>An account of the resource</description>
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                <text>Michigan Nonprofit Forum 1992-10-12 board book governing board nominations. Records are compiled in the Our State of Generosity collection by the Johnson Center, along with the files of the Michigan Nonprofit Association (MNA), the Michigan Community Service Commission (MSCS) and the Dorothy A. Johnson Center for Philanthropy.</text>
              </elementText>
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          </element>
          <element elementId="49">
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            <description>The topic of the resource</description>
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                <text>Dorothy A. Johnson Center for Philanthropy</text>
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              </elementText>
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          <element elementId="42">
            <name>Format</name>
            <description>The file format, physical medium, or dimensions of the resource</description>
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                <text>application/pdf</text>
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            <description>The nature or genre of the resource</description>
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            <description>An entity responsible for making the resource available</description>
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            <description>Information about rights held in and over the resource</description>
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              <elementText elementTextId="723535">
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            <description>A related resource from which the described resource is derived</description>
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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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            <name>Date</name>
            <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>HAY11199l
INTl~NAL

REVENUE SERVICE

DEPARTMENT OF THE TREASURY

DISTRICT DIRECTOR
P. 0. BOX 2~08
CINCINNATlt OH . 4e201
Oat~:

MAR 1 0112

E•ployer Identification Nu•bt:-r~

38-2959692
Contact Person:

DALE PEPPER

MICHIGAN NONPROFIT FORUM
300 N WASHINGTON SQ 405
LANSING, Ml

Contact Telephone Nu•ber:

(513) 684-2501

48933
Accounting Peri~d Ending:
June 30
Foundation Status Classification:

509 &lt;a&gt; (2)
Advance Ruling Peri~d Begins:
Nove11ber 15 1990
Advance Ruling Peri~d Ends:
June 30 1995
Add~ndum Applies:
~~.,

Dear App I i cant:
Based on inforMation you suppi ied, and assu~ing your oper~~tons wi i I be as
stated in your application f,,r recognition of exemption, we hJve d ~ ter~ined you
are exempt fro• federal income tax under section 501&lt;a&gt; of the Internal Revenue
Code as an organiz~tion described in section 501(c) &lt;3&gt;.
Because you are a neHiy created organizati•:•n' He are not noH 111aking .1
final determination of your foundation status under section 50?(a) of the Code.
Hol·te'1"-'r1 He have deter111 i n~d th.lt you can reasonab I y expect to be a pub I i c I y
supported organization described in section 509(d) &lt;2&gt;.
Acccordin•JIY' durinq &lt;1n .·ldvance ruling period y~;•u Hill be t rP.a l; ed as .1
publicly supported organi &lt;~a"ti•=-n' ·'•nd ll•)t as a private f•)undati r:•n .
This advanc e:
r uling period begins and ~ nds 0n the dates shoHn dbove.
~ithin 90 days aft ~ r the end of your advante rui ing peri0d, y ou must
send us th£o i nfonwt ion n~edf~d teo determine Hh£-ther y•=-u h ilVe met thl! n?q u i l'ement ::. .:, f the &lt;sppl icable suppor:t tr·st during tht.o advance r·ul in~1 period.
If y( ot1
estahl i sh that you have bPen a pub I icly supportod o rganization. we wi I I clas s i f y y o: ••t as a Sl"'ction 509(a) ( 1) c•r !:'i09&lt;.:l) (2) o:•rgani 7 ilti.:•n a s I•Jnq as yo: •u c ontinu e
to me 10.ot t h£o requirc~ ment r; o: •f ·~ ht=.- applicable supp o:1rt test. If yo u d o:• not nll~·et
the ;•ubi i r. ~· upport r-equir c·ments d urin~ t he ad•Janct.· ntl in~ peri od, !·!~ l·li II
clas s ify :1•:•u ilS a pri•Ja t e f·:•unt1ation fo:·r· futu1·e pc~t·iods.
Als o , if l-I t: cla s si i· y
Y•J U ,·1s a p rivate f o: •untia t: i eo H• l·l f! !·li II ti'"eat you &lt;: s v priv;,tt.o f c•unda ti o:.•n ·f ,• om

Gr·· an t.:or·· s anri •: on-tr i o utor·· s may n~ i y •:on out· d et ermination i; ha i; "O U a r· e 11 0 t; :j
unti 1 '/ 0 .:ays .i ftet·· ·l; tle ~nd •:O f y our allvanc ~: r-nl ! riLJ p:::rt .:•d .
If y•:ou SC!lld u·:; ttl~? requir t:•d 1nfor-n1ati o n Hithin i; h ,? 90 day~, gr··.:~ n ·t; co~ · s ··lnd
cont ri hu b:. r ·:; may comi:in11e to r c!ly c•n tht:· Hlvanc t~! d :~t l'!rmin .-l til)n unti \ He m.,x e
a final d •: t t'! t·minatic•n c• i' y(o~tr f•:oundati• :m status .

Pl'" i'/ . l t~ ·f •)UildJtit:•n

�-2-

MICHlGAN NONPROFIT FORUM

If we pub I ish a notice in the Internal Revenue Bulletin stating that we
wi II no long~r tr~at you as a publicly supported organization, grantors and
contributors may nat rely on this determination after the date we pub I ish the
notice.
In addition, if you lose your status as a pub I icly supported organization, and a grantor or contributor was responsible for, or was aware of, the
act or failure to act, that resulted in your loss of such status' that person
may not rely on this determination from the date of ~he act or failure to act.
Also, if a grantor or contributor learned that we had given notice that you
would be removed from classification as a pub I icly supported organization, then
that person 111ay not rely on this determillation iiS of the date he o:.r she
acquired su~h knowledge.

If you chang€' Y•)tir S•:OHro: .:os (of s uppcot-t, y•:our· flUr-[H:.ses ·, t:h c1ract:-! l'' or n1eth•:ori
af operation, please let us know s o we c~n consider t he effect of ~ h~ change on
your t-&gt;:emrt status and toundatio:on status.
If yo;.u amt'!nd yo:our o:q-gani:ati(onal
document or bylaws s please send us a copy of the amended document (•r bylaws.
Also, let 'JS know c1ll changes in your name cor addres&lt;;.
As of .January 1t 1984• Y''u . are liable for so)cial securities t,1&gt;:es under
the F~deral Insurance Contributions Act on amounts of $100 or more you pay to
each of your 0 mploy€'es during a calendar year.
You are not I iable for the tax
i mposed under the Feder~ I Uneftploy~ent Tax Act &lt;FUTA&gt;.
Organizations that are not private foundcltions Are not subject to the private foundati0n excis~ taxes under Chapter 42 of the Internal Revenue Code.
Ho)l-le•;er, you &lt;1i~e n.:.•t autoul&lt;rticcJIIy ex,'?mpt from o:•ther federal !':.·&gt;:cis.-:· tcJKes.
If
you i1ave .:~ny questio:•ns db•:out excise, ~~mplo:oyment, •:or •:other fed;::.ral :; a&gt;:t~S' pler1st:.l ~·t llS kniHI.
Oono;~s may deduct i OIHributio:•ns to you as pro:wrded in &lt;o.ecti(•n .L7 0 . of the
Intel ·nal r:;:evenue Co :o de ..
BeyUt'! StS1 legaciP-57 deviso:? S7 transfers, •:Or gifts ·:·; o Y•:Oil
•: :r f o: or your l!!'.e ar:: de-ductible foi,. Federal estate ~nd gift tax purposes if the~'
rn•=?et the -·lppl i r:abl •! pn:ovi &lt;; ions of sect;ions ::055, &lt;:~10(1, and 2522 o.:of thf~ Code.
D·:onor~ s mdy deduct •:ontributi•:ons l;o you onl y tc• the e&gt;:tent thal; t heit·
::: ::-; nt:,.lbut!c,r:s dr-f· q ifts ·; !·!:th no:• consid:::J"ation ..- ~c:l?i·J~d.
T!cl:et pn!~chase~. .'!nd
simi ! =r· p &lt;lyments , ., con . j u.r:r.t!on !·dth fundr&lt;l isinq ,:~vents may not neo· c:ssa•·· i !y
qua I i fy :1·5 deductitJ I •! c • :on i:l~iiJut;io.:ons, d~peno.l inq •:o n t:he c i r··cumsi; .:lno:t- ·; .
r.:ev.·:~nu e
Rul 1n g 6'/- - 2'16 ·~ P'lbli ·:; iled ; .~ 1:umu1 ..1tiv•:. B1llletin 1 '),~7 ·- 27 •:on pa~.l·~ ·1.0 'h ·~ive -.;
gurd c·! in:?.!". n;·c j,?.rtlir:g :·HH·.- n ·:: axp.-.yt:.- ;,.s may do:?duct (Jayments 1:. o r adlfli!'.S I ·:•n to:o , u r
') i; ht::·l · f.Jartio_:iD-3tiO:•Il in , f i!JiOl ·aiSillQ activit.lt! ~~ !.0 1· r: hari t; v.
'l O:•t :- ···qu!r- :.:•0 r;.:o fi lo::• F•:o rm -~··) 0·, ~~ l:'!t•.lrn oi' ijr-9&lt;1niz .Jt i• :•n :.=):;.'! nlpt rn-·m
i: Y' •t! r- g;·-o:, ~: s :·-ec~ip'!:! :. i.·acli ~-'~&lt;'H- &lt;: r-1'" ·:: o nnal ! ~; $25 ·; 000 ·:·,·· l•::-s.s ..
Tf
'; (• U ;· ::-~.e:-ivt- a i· •:.i,.r.l '790 !•iHI:a t•o:? ! ;, the hidr! ·; r,; inlpi ~' .Jt tach the ! abe ! pi"O'II &lt; ., : d ~
c hec!&lt; i; he b•:o&gt;: i n '!: he i1 eadi n•_1 to indic .JGo=! that \-' • :O tt!~ .~onnual gr~o -; ·5 , . ~ , ·.:: i! lt :::. .1re
no rm .; i I y !i · 2 ~·:; ,•.)00 ·:·1 · I = ~ s,;, -1 ilol · ; i qn r; hoo:· r···.·tnrn .

' •:O U

. ) j' :'.'

!n c •:::!:l~ Ta&gt;:,

�-:3-

MICHIGAN NONPROFIT FORUM
the f!fth month after the end of your annual dccounting period. We c harge a
penalty of $10 a day when a ~eturn is f i led late, unless ther e is reasonable
cause for the delay. However' the maximu~ penalty He charge c ~nnot exceed
$5,000 or 5 percent of your gross receipts for the year' whichever is less. We
may ~ lso charge this penalty if a return is not complete. so, pledse b~ ~ ure
your retu~n is complete befo~e you file it.
You are not required to file federal income tax returns unles n you are
to the tax on unrelated business income under section 511 0f the Code.
If y0 u ar~ subject to this t~x, you must file an inco~e tax r e turn on Form
990-T, Exenpt Organization Business Income Tax Return. In this le tter He are
not determining Hhether any o:•f your present or pro:•posed activities aro::.- unrE-late d t r ade or business as defined in section 513 of the Code .
subj~ct

You l!eed .-m empl oy,=- r identif'ication nuntbl?r evl?n if you h.1ve n•:. r~ 111ployees.
a11 employer· identification number l·las not e nten:.•d con your .·lJ.l pl i• :atieon, He
~~ i I I ass i qn a numb t"t r to y•:ou c1nd .Hiv i se you cot i I;.
PI ease use t hat number c•n
alI r ~turns you file and in dl I c0rrespondence Hith the Internal Rovenue
Serv i ce.
!f

If He s aid in the heading of this le~ter that an addendum appi
addendum enclosed is ~n integral part of this letter.

i e~ ,

the

Because i;his Jette•·· .-: .:o uld hE..tp us r c~soiw~ clny qu~stio :o ns -1bCtut '.e •Jilr exempt
status and foundation status, you should k~ep it in your perma nent r @cord s .
If y0u have any questions, please contact the person
tele p hone nu11ber a;e s hol-ln i 11 the heading o:Jf this IE·tter.

Hho ~e

nam e

JZ9Mit1,._...W~u~. ~,.
1\ 0:•b et·t;
!)

Enc i •. •sure ~ s ) :
Form ;:r?:::-c

I•

.Jo:o llil so:on

i s tt· i ct D i r ,::cto:•F

~ nd

�Form

872•C

(RI'I. 12-89)

~crftheT~ntemaiR_.,.SeMce

OMB No. 1545-0056

Consent Fixing Period of Limitation Upon
Assessment of Tax Under Section 4940 of the
Internal Revenue Code
(See instructions on reverse side.)

Under section 650l(cX4) of the Internal Revenue Code, and as part of a request filed with Form 1023 that the
organization named below be treated as a publicly supported organization under section 170(bXlXAXvi) or section
509(aX2) during an advance ruling period,

Michigan Nonprofit Forum
··· · ······ · · · ··· · ·cEUeiiePJ·;,;;;.·;,;;,;p,m;;;,;,-.;SiW,;,;,·,~·;,;p;,-,;;•;~&gt;···················

300 N. Washington Square, Suite 405, Lansing MI 48933 }

•• ••• •• •••••••••••••••••••(NUirftii,: siTNt: ;;ty·;;;,;.;;,:• : iiiiii'P CQd;j •••••••• •• •· -- • •• •• • •• • • ••

andthe

District Director of
Internal Revenue. or
Assistant Commissioner
(Employee Plans and
Exempt Organizations)

Consent and agree that the period for assessing tax (imposed under section 4940 of the Code) for any of the 5 tax years
in the advance ruling period will extend 8 years, 4 months, and 15 days beyond the end of the first tax year.
However. if a notice of deficiency in tax for any of these years is sent to the organization before the period expires , the
time for making an assessment will be further extended by the number of days the assessment is prohibited, plus 60
days.

Ending date of first tax year .. J.une ..3Q.,...l9..9.l.. .............. .
(Month,

~y.

•nd ye.r)

Name of orgamzation (as shown in organizing document)

Michigan Nonprofit Forum

Date

April 16, 1991

Officer or trustee having authority to sign
Si nature ..,.

Edward 0. Bl ews,

For IRS use only
District Director or Assistant Commissioner (Employee Plans and Exempt Organizations)

Robert T. Johnson

Date

3-:- 7 ;)._
Group Manager

For P-""rwork Reduction Ad Notice, see pa1e 1 of the Form 1023 Instructions.

�RESOURCES AVAILABLE FROM THE MICHIGAN NONPROFIT FORUM
Michigan Nonprofit Resoun:t~ Directory, in collaboration with Accounting Aid Society
(forthcoming)

Amount
of order

MNF Issues Paoers 1$5.00 for members. $8.00 for nonmembers!

#1

"Collaboration for a SIYred Future,· James A. Joseph, Council on Foundations.

#2

Report from Policy Summit I, "Partnership for People and Progress: the Nonprofit
Sector's Evolving Rel11tionship with Mi Government and Business Community".

- - #3

#4

- - #5

"Living Our Mission: MHting Our Publics' NIHids, •
Children's Defense Fund.

Marian Wright Edelman, President,

"The CIYnging F11ct1 of Michigan's Nonprofit S.Ctor: Lessons from New Research, ..
Mark I. Wilson, Director, Nonprofit Michigan Project (forthcoming).
"Toward a Michigan White Paper on the Nonprofit Sector,·
Consultant, Independent Sector.

Janne G. Gallagher,

Aud io Tapes ($9.00 for members. $12 .00 for nonmembers)
" Collaboration for a Shared Future,· James A. Joseph, President, Council on Foundations.
"D#IITJographics: Tools to PrefNire for Michigan's Future Today, • Harold (Bud) Hodgkinson,
Director, Center for Demographic Policy, Institute for Educational Leadership .
"Planning That Works: Long Range Strategic Planning for Nonprofits, ·Florence L. Green ,
President, Nonprofit Management Association and Bd Member, California Assn of Nonprofits .
·Collaboration: Process and Pitfalls, • Florence L. Green, President, Nonprofit Management
Association and Board Member, California Association of Nonprofits.
Aud io taoes from the Aoril 24. 1992 Grantmakers/Grantseekers Seminar
($9 each for members/$35 for five; $12 each for nonmembers/$50 for five)
Opening Session: "Living Our Mission: MHting Our Publics' NIHids" --Marian Wright Edelman ,
President, Children ' s Defense Fund
•Collaboration and Appropriate Mergers·-- Florence Green, President, California Association of
Nonprofits and Board Member, Nonprofit Management Association
·shaking the Money Tree: What Motivates the Large Giftr --Jerold Panas, CEO, Panas ,
Young &amp; Partners, Inc.
·Innovative Income Generation· -- Florence L. Green, President, California Association of
Nonprofits and Board Member, Nonprofit Management Association
•&amp;~coming

a Player: Advocating Your Cause and Getting Results• -- Alliance for Justice,

NAME/TITLE:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
ORGANIZATION :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

TOTAL AMOUNT DUE

ADDRESS:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
CITY/STATE/ZIP:_ _ _ _ _ _ _ _ _ _ _ _ _ PHONE: _ _ _ _ _ __
Mail to: Michigan Nonprofit Forum, 34 Kellogg Center, East Lansing Ml 48824
• • • Payment in Advance Required on All Orders • • •

$

�MICIDGAN NONPROFIT FORUM
MEMBERSHIP APPLICATION
"An alliance to promote philanthropy, voluntarism,
and a strong, effective nonprofit sector in the state. "

The Michigan Nonprofit Forum is a statewide alliance which serves as a
clearinghouse for addressing issues of importance to the nonprofit sector.
•It convenes groups of leaden to plan and act together.
•It works with policymaken, the public, and news media to promote a better
udentanding of bow the nonprofit sector works and why it is so important.
•It issues periodic "public policy alerts" and position papen.
•It convenes the annual Grantmaken/Grantseeken Seminar.
•It holds biannual nonprofit public policy summits.
•It promotes voluntarism throughout the state.
•It stimulates and disseminates research on the nonprofit sector.
•It publishes a timely newsletter focusing on nonprofit sector issues.

Join now and receive a free copy of The State ofNonprofit Michigan 1991 and a
free lifetime subscription to Co1t111Ulnity Jobs, a national listing of nonprofit jobs.
For more information call: 5171353-5038.
_ _-:Pieue aaroll8eimy orpaizatioll u aa aMOdate IM:IIIber of die Micbipa Noaprof'rt Fonun.
(SSO .acmbenbip iadada dilcoutlaad reduced a.fermce fea u well u the newsletter and Updates.)

_ _ _.I willa to .apport thil iiDportaat work witll•y aMrtribatioll of s._ _ _ _.•
•lloaorary Doaon
S500 or .aore.
-sut•iaiaa Doaon
SlSO - 499.
eSpouorina Doaon
stoo - 249.
_ _ _My orpaizatioa iJ a network of people/agenda, aad we want to become active ia MNF'a work.
Pleue coatad me with iDformatioa about bow we can joiD u NE1WORK ASSOCIATES!

Name-----------------------------------Title/Position-------------------------__:_-----Organbation------------------------------------Address-----------------------------------------City _ _ _ _ _ _ _ _ _ _ State _ _ _ Zip-----------------------Tdephone---------FAX-------------------EDclosed is a cbl::ck in tbc amount of S _ _ __
Please make cbcc:ks payable to: Micbipa Noapruf'rt Fonua and mail to:

MNF
34 Kdlogg Center
Bast Lansin~ MI · 48224-1022

,.......

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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.

Make-Up of the Sector — National Data
(Source: The Independent Sector's 1992 Nonprofit Almanac)

Percentage of Total Volunteers

Wealth
Health
Education
Human Services
Arts &amp; Culture
Religion related

41.4% of total
30.4
4.0
3.9
2.3

Number of Organizations
Human Services
Education
Health
Arts &amp; Culture
Religion related

14% of total
13
11
9.8
4.7

Employment
Health
Education
Religion related
Human Services
Arts &amp; Culture

ref:%sector.lst,cm\mbr,0000

44.5% of total
23.2
12.3
12.7
1.2

Religion Related
Education
Human Services
Health
Arts &amp; Culture

28.6%
16.3
14
11.9
7.3

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

SUMMARY OF MEMBERSHIP CAMPAIGN
(10/7/92)

TOTALS:

As of Oct. 7:
Honorary Donors
Sustaining Donors
Sponsoring Donors
Other Donors
Network Associates
Associate Members
Subscriber

13
3
4
7
18
108
11

Since July 1:
3
0
0
5
16
9
2

�GOVERNING BOARD ORGANIZATIONAL MEMBERS/DONORS:

Association of Independent Colleges &amp; Universities of Michigan
Congress of National Black Churches/Michigan Affiliate
Council of Michigan Foundations
Council of Michigan Urban Leagues
Jewish Community Council
Michigan Association of School Administrators
Michigan Association of School Boards
Michigan Catholic Conference
Michigan Community Action Agency Association
Michigan Community College Association
Michigan Council for Arts &amp; Cultural Affairs
Michigan Ecumenical Forum
Michigan Health Council
Michigan League for Human Services
President's Council, State Universities of Michigan
United Way of Michigan

�HONORARY DONORS ($500 and over):
Charles Stewart Mott Foundation
Dow Chemical Company Foundation
Independent Sector
Michigan Campus Compact
National Council of Nonprofit Associations
National Society of Fundraising Executives — Michigan Chapters
Rollin M. Gerstacker Foundation
St. John Hospital &amp; Medical Center
W.K. Kellogg Foundation
*Dorothy A. Johnson
*Russell G. Mawby
*George W. Romney
*Elizabeth Upjohn

SUSTAINING DONORS ($250-499):
Detroit Edison
Bob &amp; Maryellen Lewis
*John S. Lore

SPONSORING DONORS ($100-249):
Capuchin Community Center
Michigan Association of Broadcasters
"•Helen C. Philpott
William Stoffer

OTHER DONORS (Under $100):
*Gale Colwell
*Gerard Keidel
•"Justin King
*Lillian Mason
Michigan State Chamber Foundation
*Glenn Stevens
*Kathleen Straus

"Trustee of the Michigan Nonprofit Forum

�NETWORK ASSOCIATES
Accounting Aid Society
American Cancer Society
Association for Child Development
Birmingham Area Senior Coordinating Council
Concerned Citizens for the Arts
Great Lakes College Association
Jewish Federation of Metro Detroit
Local Initiatives Support Corp.
Michigan Association of Non-Public Schools
Michigan Association/Professional Black Nurses
Michigan Economic Education Council
Michigan Hospital Association
Michigan Humanities Council
Michigan Primary Care Association
Michigan Residential Care Association
Michigan School Volunteers Program
Michigan United Conservation Clubs
National Center for the Advancement of Blacks
in the Health Professions
Volunteer Centers of Michigan

Jeanne Vogt
William Barram
Nancy C. Kostka
Carol Marsh
Marilyn Wheaton
Carol J. Guardo
Robert P. Aronson
Tom Edmiston
Billie Wimmer
Dorothy Brown
Robert Schiller
Spencer Johnson
Ronald D. Means
Sarah E. Lang
Robert L. Stein
Richard Njus
Thomas Washington
Delia McGraw-Goodwin
Sharon Radtke

ASSOCIATE MEMBERS:
Acton Institute
ALS of Michigan, Inc.
American Heart Association of Michigan
American Youth Foundation
Angela Hospice Home Care
Ann Arbor Area Community Foundation
Aquinas College
Arts Council Greater Grand Rapids
Association for Child Development/Detroit
Association for Retarded Citizens/Michigan
Baker College/Flint
Baker College System/Flint
Benzie County Community Chest
Berrien County Association of Churches
Big Brothers/Big Sisters of Flint
Black Educational Excellence Program
Blue Cross/Blue Shield of Michigan
Blue Water Clinic
Business Volunteer for the Arts
Catholic Social Services of Wayne Co.
Coalition on Temporary Shelter
Communications Consultant
Community Case Management Service
4

Kris Mauren
Pamela Weygard
Gereld Doelle
Mark Pawlowski
Sr. M. Giovanni
Terry Foster
Karen Loth
Jacqueline R. Udell
Mark Habel
Marjorie J .Mitchell
Eileen Hayes
Kenneth Rice
Alice M. Fewins
Rev. James Atterberry
Gary Haggart
Mary Copeland
Donna Nestovich
James Gilan
Wallis Klein
Genevieve Rakocy
Suzanne Heath
Paula Jarvis
Ida Brock

�Community Health Awareness Group
Denise Porter-Jones
Community Mental Health of Lenawee
Roger Meyers
Consumers Power, Commuity Programs
Mary Jo Kripowicz
Coopers &amp; Lybrand
Jay G. Rudolph
Council on Aging/Washtenaw County
Nancy Orel
Created for Caring
Judy Gauthier
Cromaine Library
Sandra Scherba
Delta Broadcasting
Paul Strum
Detroit Institute for Children
Janet Lusk
Direction Center
Barb Greene
DOVIA-Flint (Volunteer Administrators Ntwk) Peter Hutchinson
Family Outreach Center
Veneese Chandler
Federation of Girls Homes
Enda Ramsey
Flint Fast Track
Sr. Joanne Fedewa
FOCUS, Inc.
Sasha Roberts
Food Bank Council of MI
Karin Uhlich
Foster, Magill &amp; Rumsey P.C.
Ralph S. Rumsey
Ford Motor Company (Retired)
Frank T. Judge, Jr.
Founders Society DIA
Joseph P. Bianco
Gateway, Inc.
Ronald G. Matthews
Good Neighbors Mission
Carolyn Butler
Grand Valley State University
Eleanor French
Ronald Lantz
Guardian Inc.
Elizabeth Sperry Shehigian
Guidance Clinic
Heat and Warmth Fund
Kathleen Walgren
Hope Network
Philip D. Tietz
Ingham Intermediate School District
Kathy Dewsbury-White
John C. Heerspink, Inc.
John Heerspink
Jack Kooyman
Jordan College
Junior Achievement of SE Michigan
Thomas Dewar
Junior League of Grand Rapids
Susan Jones
Kent County CES
Sandy Smith
Kent Regional 4C
Laureen Kennedy
Lynn Mengyan
Maple Valley School Board
Eileen Weiser
McKinley Foundation
Metro Affairs Corporation
B. David Sanders
Michigan Foster Adoptive Parents Asn.
Carol Visser
Metro Health Foundation
Glenn F. Kossick
Michigan Asn. of Local Public Health
Mark Bertler
Michigan Conference United Church of Christ Carol Cunningham
Michigan League for Nursing
Nancy Caputo
Michigan Nonprofit Management Institute
Phil Reed
Linda Nierman
Michigan State Cooperative Extension
Michigan Protection and Advocacy Service, Inc. Elizabeth Bauer
Midland County Council on Aging
Sally York
Mitten Bay Girl Scout Council
Jeanee M. Nelson
Kathryn Davis
Mt. Clemens General Hosp. Foundation
Newaygo County Community Service
Bev Cassidy
Robert Leneway
NICHE
5

�North American Indian Association
Northwest Senior Resources
Oakland University
Operation L.I.F.E. Foundation
Orchards Children's Services
Oscoda Area Schools
Paws with a Cause
Pinckney Schools - PALS Program
Plante &amp; Moran
Printing Industries of MI Education Fdn.
Public Image
Recuperation Center
Reformed Bible College
Rotary Charities of Traverse City
Senior Services
Services for Older Citizens
Society of St. Vincent de Paul
Sparta Community Education
Spring Arbor College
Spring Hill Camps
St. Vincent &amp; S. Fisher Center
Today's Living Concepts
Tuscola County Cooperative Extension
United Methodist Retirement Community
United Way of Kent County
VFW National Home
Visiting Nurse Association of SE MI
Voluntary Action Center of Saginaw Co.
Wayne-Metro Community Service Agency
Washtenaw Community College
West Midland Family Center
West MI Dental Foundation
Westwood United Methodist Church
Wheatland Music Organization
YMC A of Metro Detroit
YWC A of Kalamazoo

Myrle McCall
Robert C. Schlueter
Barbara Moretsky
Gerald Levin
Christine Sargent
Michael Sapp, Sr.
Patty Taylor
Forrest Lewis
William Baird
Gary Dembs
Sandie Withrow
Ronald L. Zoet
Robert Collier
Mary Louise Avery
Ann Kramer
James R. Carron
Marialyce Zeerip
Richard Lofgren
Vivian Blakemore
Betty Speyer
Val Sovinski
Dennis Stein
Robert A. Alder
Donald Custis
Wayne Komejan
Cynthia Tanner
Eve E. Gohlke
Luther Flanagan
William H. Holmes
Greg Dorrien
Lawrence Manning
Ken Karlzen
Lola Tyle
Kenneth Isherwood
Jennifer Shoub

�SUBSCRIBERS:
Alzeimers Association
Andrews University
Listening Ear
Cadillac Chamber of Commerce
Consultant
Crisis Pregnancy Center/Kalamazoo
First Step
NCADD of MI
Institutional Advancement Consultant
Consultant
Girl Scouts/North Oakland Co. Council

rcf:mbrorg.lst,fnddev/assocmbr,0100

Dian Wilkins
Fred Anucha
Douglas Alberts
Ron Andrews
Patricia Duch
John McCastle
Judith Ellis
Bill Fairgrieve
Deborah Johnson
Ixmise Motoligin
Celeste Rabaut

�</text>
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                    <text>MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, 1\fiCIDGAN 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 Membership Committee Meeting
April 20, 1992 -- 9:00 to 12:00
Kellogg Center, Vista Room, East Lansing, MI

Trustees Present:

Staff Present:

Robert E. Ivory
Justin P. King
Anne W. Rosewame

Donna M. Clarke
Maryellen J. Lewis

1.

Welcome and Call to Order: At the request of Committee Chairman Len Young,
who was unable to be present, M. Lewis called the meeting to order at 9:20a.m.

2.

Update on the Membership Campaign: M. Lewis reported on MNF's current
Membership Campaign. Response has been significant. In less than one month,
MNF has received the following response:
Membership Level:
Honorary
Sustaining
Sponsoring
Net. Assoc
Associate
Subscriber
INCOME

2
2
3
0
62 ($31 00)
8

5060.00

M. Lewis noted the budget target for Associates/Network Members ($3000) has been
exceeded. In most cases the new members are organizations MNF has not worked
with in the past. This demonstrated the effectiveness of the brochure in
communicating MNF's mission and message to those who are unfamiliar with it.

�Strategy for Recruiting Network Associates and Other Members: M. Lewis shared
with the committee a draft listing of potential Network Associates. The committee
reviewed the preliminary list noting minor address and personnel changes. After
discussion, the committee agreed the list should be reviewed by the entire board for
corrections, updates and additions.
The committee agreed on the following recommendations to the Trustees:
A) Once staff has compiled the fmallist, each trustee will be asked to
designate twelve organizations to contact personally, based on prior
knowledge of the organization or familiarity with the organization's
field/mission. Any undesignated organizations will be assigned to specific
trustees or contacted by staff.
B) Staff will supply each trustee with boilerplate language for use in initial
contact letters as well as background information on MNF. Trustees will
follow-up letters with personal telephone calls. It is important for future
membership campaigns for trustees to note the specific reasons organizations
give for either participating or not participating in MNF. This information
will be used to adapt future campaign efforts. Trustees should also point out
to those who are not ready to participate at this time, that they will continue to
receive information on MNF and that the trustee will follow-up again next
year!
4.

Discussion of Committee's Nominating Role: M. Lewis reported that nominations
for new Organizational Members and new Network Members can be brought to the
Board at its 10112/92 Annual Meeting. The committee agreed to include these
matters on the agenda of the next meeting.

5.

Schedule of 1992-93 Meeting Dates: After discussion, committee members agreed
staff should circulate potential dates for membership meetings in July, early
September and mid-January. Members will indicate those dates they are available,
and staff will schedule based on majority consensus.

6.

Adjournment: The meeting adjourned at 10:45 a.m.

�</text>
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                    <text>MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022

Phone: 517/353-5038 Fax: 517/336-1327
At* alliance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan,
MEMORANDUM

Date: October?, 1992
To: Maryellen J. Lewis
From: Donna M. Clarke
Subject: Network Associate Recruitment
New Network Associates reported to date include:
Network Associate

Recruited by

American Cancer Society
Association for Child Development
Birmingham Area Seniors Coordinating Council
Concerned Citizens for the Arts
Great Lakes Colleges Association
Jewish Federation of Metro Detroit
Local Initiatives Support Corporation
Michigan Association of Non-Public Schools
Michigan Association of Professional Black Nurses
Michigan Economic Education Council
Michigan Hospital Association
Michigan Humanities Council
Michigan Primary Care Association
Michigan Residential Care Association
Michigan School Volunteer Program
Michigan United Conservation Clubs
Nat'l Ctr for the Advancement of Blacks
in the Health Professions

refmj!20916.dmc,cm/mbr,0000

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

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

September 17, 1992
Memo to Trustees:
When we founded the Forum, we all hoped that it would gain momentum and become
bigger than ourselves: a bigger voice, a bigger movement for change and betterment. Your
small and valiant staff at MNF was planned to be only the tip of the iceberg of a growing
alliance for caring, effective communities in Michigan.

I am very pleased to report and document that the vision is still clearly in sight after two
years, and that the activities and conversations of the Michigan Nonprofit Forum have reached
far beyond 34 Kellogg Center. As hoped, the goals we set last fall and winter 1991 have taken
on a life of their own, becoming part of the ongoing work of many organizations across the
state. And as envisioned in the original proposal of the Founding Members, we have identified
and continue to nurture nonprofit networks and leadership summits in communities across the
state to become more conscious and deliberate about the purposes and future of the nonprofit
sector.
Format of this Report: Some of you know me well, so you know my appreciation of
metaphor and non-linear analysis. I framed this report with the metaphor used by our outside
evaluator, Christopher Clark, that MNF's strategy and impact can be seen as "widening circles,"
as a pebble dropped into a deep pool. "Widening circles" are not always easy to time, or to
track, or to evaluate. But enough evidence is apparent for us all to take heart that :MNF's work
already shows some measure of success.
So I begin with (1) MNF's inner circle: the member organizations of the governing
board. Next come (2) the organizations joined actively in our committees. As expected, they
have carried our small torches and seem ready to take on the larger ones in the making (such as
the White Paper and its related policy and accountability issues).
But MNF's mission is large, and we cannot be satisfied with only these captive
audiences. MNF has identified nearly 3 50 networks of nonprofits in Michigan. Now that we
know how to reach them, can we tell whether we are heard, or whether our messages are
worthy of their attention? And what about the larger Michigan community? MNF is not a trade
association, serving the interests of its members. It is a 50l(c)(3) nonprofit serving a public
mission. As I wrote in our founding proposal to theW.K. Kellogg Foundation:

�MNF will, for the first time, create a statewide mechanism for dialog, planning and
cooperative action among all stakeholders in the nonprofit sector. .. . The activities of
the Forum will address voluntarism, philanthropy and the nonprofit sector not as
proprietary functions but as public goods, which broadly affect the state's economy,
polity and quality of life, and which therefore merit careful analysis and planning, human
resource and organizational development, and dependable investment.
So this report will also look at (3) ways MNF has successfully reached outside its family and
friends, and ( 4) ways MNF has prepared products to serve a less personal audience with just as
encouraging an impact.
(1)

Organizational Memben of
MNF's Governing Board

After the first year which was dominated by the maturing involvement of the founding
members, all trustees and their organizations have explored and expanded their relationships with
MNF as an organization and an alliance. Many spin-off activities have resulted - most often as a
result of Governor Romney's leadership in the Campaign for Volunteerism, but including manyother areas as well.
The emphasis on volunteering is understandable, since the most common motivating force
told to me by the Founding Trustees when we created the Forum was the power of voluntary
action and the importance of cultivating altruism for the future of our state and nation. As you
read about and celebrate your colleagues' accomplishments, though, I urge you to consider how
we have also laid groundwork for the broader challenges that are now upon us. In our original
proposal, we promised to identifY and assist "local and regional structures" as a strategy for
bridging our state-level alliance to real community life in Michigan. I believe we have
accomplished this commitment and have built it into MNF's core structure.
Michigan Association of School Boards: In support of their participation in MNF's
Volunteerism Committee and the Campaign for Volunteerism, MASB adopted a resolution
(drafted at their request by MNF stafl) strongly encouraging student community service programs
in the schools. As a result ofMNF's networking efforts, MASB committed to work with the
Volunteer Centers of Michigan to link school districts more effectively with existing volunteer
centers, and to support schooVcommunity collaboration in cities now creating volunteer centers.
MASB also intervened and secured the participation of school board members in the Grand
Rapids Leadership Summit on Volunteerism on August 25. We are now working with all 13
existing volunteer centers and 26 additional communities to launch local Leadership Summits on
Volunteerism, and MASB has clearly demonstrated that it is a strong and effective partner in this
initiative.
Michigan Association of School Administrators: MASA also has demonstrated a strong
and active commitment to MNF's goal of promoting volunteering. In response to Grand Rapids'
call for help in getting representation by school leadership in their August Leadership Summit,
MASA worked through professional networks and secured the attendance of superintendents

2

�from eight contiguous school districts. In fact, contrary to discouraging expectations, precollege
education had the largest contingent of local leaders of any sector!
Michigan Community Action Agency Association: MCAAA's promotion ofMNFs goals
has taken a while to surface, but it came in a flood! For the last year and more, Herb Yamanishi
has shared information with his members on the Campaign for Volunteerism and this unique
opportunity for Community Action Agencies to serve their communities in a leadership role. All
of a sudden, his efforts and MNFs follow-up information have resulted in this dramatic response: ·
the CAAs in Caro, Escanaba, Hillsdale, Lawrence, Pontiac, Port Huron, and Sault Ste. Marie are
taking the lead to form volunteer centers and work with MNF to launch a Leadership Summit on
Voluntarism. In addition, I learned that several others, as in Jackson and Traverse City, are
actively involved in the local coalition for the same purposes.
·Michigan Community College Association: Not more than a week into his new office as
Association Chairman, Clyde LeTarte - President of Jackson Community College .- met with me
and defined a challenge for his colleagues: How can the community colleges take an active part in
the Campaign for Volunteerism and in MNF's larger work to serve the nonprofit sector? Using
Alpena Community College as a model (which houses and substantially supports the Alpena
Volunteer Center), he has called a meeting of the presidents to design next steps.
And in recognition of the nonprofit sector's massive needs for management training and
assistance, Connie Julius (MCCA's Director of Communications and strong MNF partner) is
assisting an alliance of nonprofit service providers in the design of telecommunication linkages for
low-cost training that will reach every comer of the state. MNF first initiated this alliance nearly
two years ago-- consistent with its original proposal to the Kellogg Foundation- and will assist
Connie and the Kellogg Community College with an inaugural meeting in November.
Presidents Council. State Universities ofMichigan. In April, the Presidents Council
adopted a resolution supporting the purposes of the Campaign for Volunteerism, and state
universities across Michigan are participating in local Leadership Summits on Volunteerism. In
addition, Glenn Stevens has committed to helping state universities link more directly with local
volunteer centers, possibly on the corporate volunteer program model.
State universities are also strong partners in MNF's Scholars Network. The Director of
Research at Western Michigan University, for example, responded to a request from President
Diether Haenicke by urging every faculty member to be aware ofMNF's research network and
our efforts to compile a research directory for Michigan. As a result, we continue to receive
detailed descriptions of current research by WMU faculty on the nonprofit sector. We anticipate
that similar responses from other colleges and universities will result in an extensive directory for
distribution at the December 10-11 Research Conference on the Nonprofit Sector that MNF is cosponsoring with Wayne State University and the Nonprofit Michigan Project at MSU.
State universities are also among the leaders in the emerging education programs for
nonprofit professionals and young people. MNF has had a hand in a few of these new programs - such as the MSU Masters Degree in Public Administration/Nonprofit Management and the

3

�Grand Valley S~te degree in nonprofit communications. Mostly, though, these programs are
emerging as a result of the growing student demand and practitioner market in the nonprofit
sector. MNF continues to track these programs, and we will expand our
Grantmakers\Grantseekers displays (which included several degree programs) to include a
planned 1993 directory ofMichigan programs.
Association of Independent Colleges and Universities of Michigan: The independent
colleges nationally were already documented leaders in student volunteerism before MNF's birth.
They also had a disproportionately high number of courses incorporating themes of philanthropy
and voluntarism, because of their heavy liberal arts emphasis. Perhaps for this reason, AICUM
member colleges have been especially responsive to MNFs mission. During the last two years, I
was invited to help administrators and faculty teams to explore new degree programs at several
colleges: Calvin College, Walsh College, the Lawrence Tech School ofManagement, and of
course the Thomas M. Cooley Law School's law clinic for nonprofits. AICUM member
presidents have been involved in many MNF programs, and -- thanks to Ed Blews -- Lawrence
Tech contributed much of the professional work for the Summit taping and editing (nearly
completed). They will also broadcast the tape in full during the fall.
Council of Michigan Foundations: In addition to Dottie Johnson's effective leadership in
the fall membership campaign, CMF has also made regular contributions to MNFs work to serve
the nonprofit sector in Michigan. Cutting-edge research has been put in our hands, and a regular
Funders Update column is in the works for the newsletter. Community foundations are kept
informed about the Campaign for Volunteerism and their key roles, and they have already been
alerted to the forthcoming Give Five Campaign (1993-94} which will need their aCtive
participation. Dottie also participated in the shaping of the national White Paper by the
Independent Sector (8/92}, which is now in the hands of the MNF White Paper Committee.
Through CMF, the work and progress of this alliance reach the funding community in short order.
United Way ofMichigan: Local United Ways are key leaders in the Campaign for
Volunteerism, thanks to Bob Ivory and his vice president, Gene Keilitz at the United Way of
Michigan. Currently, the United Ways are taking the lead in starting volunteer center$ and
working with MNF to launch local Leadership Summits in Alma, Big Rapids, Howell, Jackson,
Mt. Pleasant. The United Way in Holland already successfully launched its volunteer center and
Leadership Summit with Governor Romney in May, 1992.
The United Way ofMichigan has also become actively involved in planning the
Grantmakers/Grantseekers Seminar this year, seeing it as a critical resource for UWs in this state.
Their active concern about nonprofit accountability will be key in the development of the
accountability initiative by the MNF Public Policy Committee this fall (with possible funding from
the C.S. Mott Foundation).
Michigan League for Human Services: With the development of the League's nonprofit
insurance program, they have become an even more important resource for Michigan's nonprofit
sector. Although MNF can take no credit for this important development, we sure can get the
word out, as we do every day. The increasing number of callers are only the leading edge. With

4

�the spread in o~ forthcoming newsletter (a double issue, also showcasing both the Campaign for
Volunteerism and the White Paper), nonprofits in every cranny of the state will know about the
League's valuable services and products.
Michigan Ecumenical Forum: In addition to MEFs advocacy of the Campaign for
Volunteerism through its Leadership Forum and other vehicles, Steven Johns-Boehme has taken a
special interest in the dilemma of the nonprofit postal rate. How do you take such a deathly
boring subject and spotlight its life and death importance to small, often voiceless nonprofits?
Steven was aggressive during the nationally-successful advocacy campaign to preserve the
nonprofit subsidy (he was assisted by the Independent Sector and a few other partners), but he
and we must be prepared to make an eloquent, moving and ultimately convincing case next year.
(2) Related Activities of
Other Participating Organizations
In addition to "MNF's "family," we have enjoyed the company of many "friends" who have
served as partners and collaborators on MNF committees, programs and early navigations. They
participate, I hear, not because they want to help a fellow nonprofit corporation or me or you but
because they see benefit in what MNF represents, for themselves, their colleagues and
communities. That doesn't mean that we have necessarily fulfiiled those expectations, but we
have grown together with them as we sort out expectations and choose those that are truly
worthy, unique and possible.
Campaign for Volunteerism: Under Governor Romneys leadership and with unanimous
board approval, it was the Michigan Nonprofit Forum which identified and convened the members
of the Campaign for Volunteerism Committee in late 1990. This was no small task, and they were
no easy lot. Many had come to view each other as direct competitors for limited support dollars - in fact, a few saw MNF as one more competitor. It took eighteen months of hard work to move
the committee forward to action.
But when it happened, it came all at once. This spring, commitments and resolutions and
conference themes and publications began to appear everywhere, promoting the Campaign and its
unanimously adopted mission and goals. Over the last two years, communities were invisibly
working on strategies to accomplish Governor Romneys challenge - sometimes as a direct result
ofMNF's publicity or member advocacy, often with MNF's early help. In a few cases, I am told
that the Grantmakers/Grantseekers Seminar first lit the spark, as in Cadillac, Cheboygan and
L'Anse. In at least three cases - Cadillac, Zeeland and Three Rivers - the publicity by the State
Chamber of Commerce helped local Chambers step forward as the lead organizations. In many
others, it was the leadership of our partner Barb Bradford at the Michigan Department of Social
Services to her local branches - at least in Adrian, Cheboygan, Houghton/Hancock, and
Roscommon. And now we have 26 communities actively pursuing strategies to hard-link
volunteering to some of their most stubborn and debilitating challenges.

5

�During MNFs early months, I traveled far and wide in the state to talk and listen, and I
often found that the Campaign themes touched a responsive chord. Now, the Campaign has
generated new interest and important resources for implementing local visions.
In the past few months and with MNF's help and the help of other collaborators, the
Volunteer Centers ofMichigan secured the first direct funding of this Campaign. With those
grants to VCM to provide technical assistance on volunteer center start-up and to operate an
(800) number on volunteering, they were also able 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).

Now, MNF has entered a new phase of the Campaign, funded in part by Michigan Bell
and, if approved, by the C. S. Mott Foundation. MNF' s role has reverted to those things we do
best: 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 3~35 communities around the state. Already,
Governor Romney has met with leaders in Alpena, Holland, Grand Rapids and Mt. Pleasant.
(A full roster of participating communities appears under Tab 7.)
In addition, MNF has served as an information clearinghouse, circulating cutting-edge
information on volunteerism to the more than 10,500 key community leaders and nonprofit
professionals on our mailing list. The upcoming issue of MNF's newsletter will showcase the
Campaign in a special insert. In this way, we can spotlight our local and statewide partners in
far-reaching ways that would otherwise not be available to them.

The Grantmakers/Grantseekers Seminar #5 (GG5) Prouam Committee: This is more
than a conference planning committee. It is, in microcosm, much of what MNF mission
asserts: that we are all partners in serving a larger mission, the public good. Each year during
eight planning months, the committee brings together grantmakers, development professionals,
and CEOs representing a wide range of nonprofit fields.
The GGS planning process is also beginning to take on the coloring of the Forum's ongoing mission, rather than a free-standing one-day event. Valuable themes drawn from past
Seminars have been identified - such as the role of the media, and evaluation - and are being
addressed this year as continuous MNF issues, drawing from and contributing to MNF's other
work. For example, Colette Murray from Henry Ford Hospital chairs the media session again
this year, and is working with MNF staff to conduct a series of conversations with media
leaders over the next eight months, leading up to the May Seminar and continuing beyond it.
The public policy session will draw on the work of the public policy committee and the White
Paper. The Campaign for Volunteerism's wrap-up of the Year of the Volunteer and the kickoff of the Give Five Year at GG5 is also being largely planned by all the collaborating
organizations.

6

�NSFBE- Michiean Chcmters: This is·a special partnership I want to spotlight for you.
The Michigan NSFRE Chapters have been staunch and loyal partners in the GG Seminar since
the beginning - not only with their time but with their generous financial contributions each
year. They have also begun an important new tradition in Michigan, starting this fall with the
largest celebration of National Philanthropy Day in this state on November 19, 1992, when the
first George W. Romney Award for Volunteerism will be conferred on Joseph L. Hudson, Jr.
MNF assisted with the planning of that event in a small way, and we will publicize it as much
as possible.
The Michigan Chapters have also proposed to expand the event next year to become
Michigan Philanthropy Day, when all the chapters would join together across the state. And
they proposed tentatively to me that MNF may be the proper host for this event.
Whether or not MNF becomes the host or continues as a supporting partner, I wanted
to share with you this important development for Michigan's nonprofit sector. And it is
evidence, I believe, of a maturing partnership between key players on the Michigan scene.
(3) Reaching Outside the Circle of
Family and Friends

The local Leadership Summits on Volunteerism begin to open up .MNFs work much more
than in the past. Our larger contacts were limited by staff time and have been restricted to
mailings and my travel as a speaker or resource person - a good way to begin giving MNF
visibility, but the wear-and-tear on your executive eventually begins to show! Now MNF is
giving systematic assistance to community leadership groups that should mature over time into
continuous communication on nonprofit issues.
White Paper: As you will see under Tab 6 and hear in committee reports, the White.Paper
process is well underway and promises to be .MNFs most significant undertaking so far. Janne
Gallagher of the Independent Sector drafted a discussion paper for us, at the same time that she
completed the draft of the first national White Paper for the Independent Sector in Washington
DC. Only a few days later, I was fortunate to be able to participate in the shaping of another draft
White Paper by our national association, the National Council ofNonprofit Associations (also
under Tab 6- although this draft has been substantially changed. The revised copy is still being
reviewed by NCNA's counsel, after which it will be faxed to me and from me to you.)
Summits: The tapes of the first Summit are near completion- in fact, a "draft'! of the
short video may be available for viewing after the September 23 meeting!
The next steps for the Summit tapes will dovetail into both the White paper process and
the local Leadership Summits on Volunteerism in these ways: We must link into existing
structures ifwe want to have a wide reach. You each can arrange dialogues within your
memberships, but beyond that we must find gathering-places that would be conducive to the
conversations we hope to initiate. So a strategy is being developed by your committees that will

7

�apply to the White Paper, the Summit Tapes, and all future endeavors to disseminate discussion,
reflection and ultimately shape informed action.
The next Summit falls out of the White Paper process and tape dissemination. There are
two reasons for this strategy that come immediately to my mind. One is conceptual: The White
Paper addresses the themes of Summit #1, putting them in a larger context- and Summit #2 will
follow from the conversations generated by the White paper and the videos. The other reasons is
practical: Your staff is tiny, though energetic, and you each already have a full plate of your own:
For anything at all to be accomplished, we must carefully interweave our goals, or else be satisfied
with more mundane outcomes.
Other Outreach: There are some other ways that MNF has become linked with the larger
community of nonprofits. Through the Scholars Network, we are becoming familiar to scholars
and educators in every institution of higher learning in the state. Through the Nonprofit Resource
Directory update we have nearly completed (to update and expand the Accounting Aid SocietYs
1989 directory), we have become known and used as a resource by service providers in nonprofit
associations, education institutions, and private firms serving every kind of management need.
This guide, by the way, seems to be among the most attractive benefits noticed by potential
members.
Speaking of membership: This large and unfamiliar body is another new audience for us.
As MNF develops the skills and routines to maintain a membership - a new challenge to your
resilient staff- I know that we all will recognize new opportunities and amazing co-travelers.

(4) Other MNF Products and Activities
More, you say? I will be brief Appended to this report is MNF's substantial list of
publications and tapes. We also produce a composite calendar of nonprofit training and events of
sector-wide significance. Lastly, on December 10 and 11, we will co-sponsor the first Michigan
Research Conference on the Nonprofit Sector in Detroit.

•••••••••••••••••
This has been a full two years, and I for one feel we have accomplished a good deal.
Much lies ahead, but I have come to respect the ability of this alliance to grapple with challenges.
This third year is mapped out, and the fourth remains for you to imagine. I hope this report helps
you to begin.

Best regards,

Maryellen I . Lewis

Executive Director
rcf:mj1Ipt.exe,9/17/92,0100

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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.

MNF Priorities
Drafted bv the Trustees (10/91) and
Refined bv the Executive Committee (12/91)
After adoption of the Guiding Principles in October 1991,
MNF's governing board identified the following six priorities to guide
program initiatives during 1992.
1. Annual Grantmakers/Grantseekers Seminar: MNF will conduct an annual Grantmakers/
Grantseekers Seminar.
i. Trustees will make a priority for personal participation or senior organizational
representation (staff and/or trustees) in planning and implementation of the
Grantmakers/Grantseekers Seminar, as well as for registering and attending the event.
ii. The Executive Committee will appoint a Task Group (including the Chair of the
Grantmakers/Grantseekers Program Committee) to propose an overall GOALS
STATEMENT to guide the planning of future GG Seminars.
iii. Trustees will actively promote the GG Seminar as a pivotal event in the life of
Michigan's nonprofit community, and will actively solicit input from their networks
to guide its future design.
2. Proactive Stances on Public Policy Issues: MNF will track public policy issues that have
sector-wide implications in Michigan and keep trustees and other leaders informed; where
appropriate after due process by the board, MNF will take proactive stances on those issues.
i. The Public Policy Committee will continue to consider current public policy issues
and make recommendations to the board for action.
ii. Trustees will recognize themselves as the antennae for the Forum and will bring
to the attention of staff or the committee any issues of concern generally.
iii. Upon adoption of a position on a public policy issue by the board, trustees will,
when appropriate, encourage their organizations to take a consistent position, and will
actively and substantially communicate those positions to their leadership networks,
their members, and to public policy makers.

�3. Public Policy Summits, with papers: MNF will conduct one or two Summits per year,
bringing together key leaders and other knowledgeable persons in a roundtable to discuss
seminal issues facing Michigan's nonprofit sector; each Summit will be guided by a
publishable paper, circulated in advance, and will be taped for distribution and broadcast,
aiming to widen the circles of discussion and understanding about those issues.
i. Trustees will make a priority for personal participation in the Summits, if invited,
and will participate actively in determining topics and securing insightful, engaging
participants, particularly to insure that the series is cohesiveness and has cumulative
impact.
ii. Trustees will actively seek and promote avenues for dissemination of the tapes
into local/regional discussions, and will encourage continued attention to the issues
raised in the tapes.
4. White Paper: MNF will produce a White Paper in 1992, describing a fundamental
rationale for the existence of the nonprofit sector, reflecting its history and accomplishments
and its evolving partnership with government and the for-profit sector; the paper will clarify
the sector's central role in Michigan's communities, its economy and quality of life, and the
framework justifying its historic independence and special tax status.
i. Trustees will, as appropriate, seek input from their constituencies for the design
and content of the MNF White Paper on the nonprofit sector.
ii. Trustees will provide careful scrutiny and thoughtful response to the Draft White
Paper, when available, and will circulate it as appropriate among their constituencies
for input.
iii. Trustees will disseminate and advocate the final White Paper among their
leadership networks and members.
iv. Trustees will actively communicate the substance of the White Paper to
community and sector leaders and to public policy makers.
5. Two-Year Campaign Strategy on Giving and Volunteering
A. Campaign for Voluntarism (1991): MNF will continue to provide leadership and
staff support to the Campaign for Voluntarism, until such time as it operates
independently throughout the state.
i. Trustees will make a priority for personal participation or senior
organizational representation (staff and/or trustees) in the work of the
Campaign for Voluntarism.

�ii. Trustees will seek ways that their organizations and constituencies
can use the Campaign to further their own work in voluntarism.
Trustees will seek to integrate the Campaign into their own
organizations' work and to promote the Campaign through their
members and leadership networks.
iii. Trustees will actively promote the Campaign to community leaders
and policy makers, with the aim of promoting a lasting climate of
commitment to volunteering among Michigan's leadership,
communities and institutions.
B. "Give 5" Campaign (1993):
i. Trustees will make a priority for personal participation or senior
organizational representation (staff and/or trustees) in the work of the
"Give 5" Campaign, as is begins later this year for an April 1993
kickoff.
ii. Trustees will, where appropriate, help to identify communities
already considering such a campaign (such as Lansing) and others
willing to explore it, so they may be included in the statewide
Campaign.
iii Trustees will seek ways to integrate the Campaign into their own
organizations' work and to promote the Campaign through their
members and leadership networks.
iv. Trustees will actively promote the Campaign to community leaders
and policy makers, with the aim of promoting a lasting climate of
commitment to giving and volunteering among Michigan's leadership,
communities and institutions.
6. Collect and Disseminate Research Insights:
i. MNF will encourage the development of a scholar's network in 1992.
ii. In order to link research as closely as possible to practice, Trustees will solicit
practice-based research questions from their constituencies, for communication by
staff to the Scholars Network.
iii. As MNF's eyes and ears, Trustees will communicate to staff information about
new and planned studies that have sector-wide implications, so that the information
can be shared widely.
ref:12/17/92,prioi92.txy,cm\pp,6400

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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 alliance to promote giYing, Yolunteering and a strong, effectiYe nonprofit sector in Michigan.

[Not Yet Adopted]

Minutes
of the
MNF Nominating Committee Conference Call Meeting
September 30, 1992 -- 4:00 to 4:30
Kellogg Center, East Lansing, MI

Trustees Present:

Staff Present:

Dorothy A. Johnson
Justin P. King
JohnS. Lore
Anne W. Rosewarne

David 0. Egner
Carrie A. Weaver

1.

Welcome &amp; Introductions: The conference call was initiated by D. Egner at 4:05p.m.
Those present introduced themselves.

2.

Confirmation of the Slate of Officers: D. Johnson reviewed the nominating procedure
and the current slate of officers, noting that this committee's recommendations will be
submitted at the Annual Meeting on October 12. After discussion, the committee
agreed that in the future the nominating process should include a formal request for
nominations to be circulated to the full Board prior to the nominating committee's
selection meeting.
In recognition of the need for continuity and stability during MNF' s leadership
transition the committee discussed maintaining the current slate of officers. D. Johnson
noted that in conversation with Ed Blews, MNF secretary and public policy committee
chair, he mentioned that he would like to spend more time on public policy issues and
step down from the secretary position. In light of this information, the committee
nominated Herb Yamanish to replace Ed Blews as secretary. Therefore, the
nominations for officers are:
Russell G. Maw by
Helen C. Philpott
Robert E. Ivory
Herb Yamanishi

Chair
Vice-Chair
Treasurer
Secretary

�The committee also recommended that the by-laws be modified to allow for a
president-elect. This recommendation will be presented to the Board at the Annual
Meeting.
3.

Adjournment: The meeting was adjourned at 4:25p.m.

ref: nom10930 .min ,cm/mbrshp,OOOO

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                    <text>Michigan Nonprofit Forum
Evaluation

Report

July 1992

Prepared by:
Christopher M. Clark

1

�Michigan Nonprofit Forum
Evaluation Report

Christopher M. Clark
Introduction
I am here today to tell you a story. It is a story of people and ideas, hopes and concerns,
and about your vision of a stronger nonprofit sector for Michigan. In a sense, I have become a
biographer of the Michigan Nonprofit Forum, or a portrait artist, trying to capture a faithful
likeness. I hope that you recognize the Forum in this story. I mean the word "recognize" in two
senses: first, that you agree that my representation appears fair and faithful to your own images
of the Forum; and second, that this evaluation report moves you to think differently about, to re
cognize the Forum, in the service of a collective and evolving vision of what the Forum will
become. In other words, this is your story, with a beginning and a middle, to which you get to
add and enact the continuing chapters.
Evaluation Approach
This is a somewhat unconventional approach to evaluation. Classic program and project
evaluation designs evolved from behavioral science approaches to research on schooling and
industrial psychologists' ways of describing and analyzing factory production systems. In both
traditions, the heart of the evaluation process is definition and measurement of input variables
and output variables. The underlying metaphor is that of an efficiently operating, well designed
machine. When output was judged to be at favorable levels of quantity and quality, with
acceptable and sustainable levels of input, the evaluation was favorable. But when the system
was found to be burning too much oil or producing graduates who could not read, the evaluation
could lead to suggestions for redesign or even scrapping the system.
For several reasons, this classic approach did not seem to be a good match for evaluation
of the Forum. The Michigan Nonprofit Forum does not fit comfortably into the factory metaphor.
The Forum is not a production system, any more than a family is, or a good conversation among
friends. Now, I suppose that an economist could force the family into a factory model, producing
wage earners, tax payers, and consumers. But when I imagine a particularly family, say, my
family, evaluated in this way, the model misses the mark. The essence of a family or a
conversation or of the Forum is badly distorted or lost entirely by reducing it to a list of inputs
ana outputs.
Coming to an understanding of the Forum presented me with special challenges. The
Forum is busy inventing itself as it goes. It is a dynamic set of ideas, people, activities and
relationships. Its history is brief, and there were no prior examples of evaluation for me to
follow. Much of the Forum's mission is rather abstract and invisible. Its members are strong,
intelligent, busy, diverse, and all accustomed to being in charge. And the Fourm is hardly
anyone's full time preoccupation. These qualities make evaluation challenging and they make
evaluation interesting.
So what I have done is to assemble a portrait of the first years of the Michigan Nonprofit

2

�Forum, using your words and images to describe and take the vital signs of the organization.
These words come from my synthesis of fifteen interviews of past and present Trustees and
committee members and of the returns from a mail survey sent to forty members and interested
and knowledgable parties. Basically, I asked five questions in the interviews and
survey-questions about the historical past, the present, and about the possible futures of the
Forum. In listening to you, and in assembling this mosaic, I have learned much more than the
answers to these five questions. Thank you again for your frankness, patience, and generosity
with your time. I hope that what I give back to you here provides both satisfaction and food for
thought and deliberation as the Forum moves into its critical third year.
Results
Before I report the details of your answers to the five big evaluation questions let me
briefly sketch my overall impression of the state of the Forum. The Forum is a good idea whose
time has come. As one of the founding members said, "If the Forum closed down today, it would
have to be reinvented tomorrow." For many long time laborers and leaders in the nonprofit
sector, the cross-sector connections, conversations and projects are a breath of fresh air and
offer the promise of solidarity at a time when we need all the mutual support we can provide one
another. Many of you are impressed with how much the Forum has accomplished in its first two
years. I also heard some concern that these first years may be a hard act to follow, because our
small and dedicated staff and a few key committee chairs have been working at a pace that may be
unreasonable to sustain. For this reason and others, many of you see the Forum at a crucial
juncture. The time of getting organized and the excitement of doing something novel should now
yeild to a period of sharper focus on doing a few things well, on expanding Forum membership
and assistance to more local levels, and on securing continuing financial support from multiple
sources. The membership seems genuinely proud to be connected with the Forum and also
concerned about the challenges to achieving a balance that can be sustained for the long term.
Question 1. Have we actually created a Michigan Nonprofit Forum? To what extent does it live
up to our original hopes and vision?
The first part of this question is easy tG answer "yes." The Michigan Nonprofit ·Forum
does indeed exist. The Forum has a staff, an office, a letterhead, a budget, a newsletter, and a
telephone. The Forum has members and Trustees and committees who meet and deliberate and act
and decide and, by and large, are pleased that the Forum exists, and proud that Michigan is the
first state to create such an organization. The Forum has sponsored important activities like the
Summit that would not otherwise have happened, and has become a key partner in other
activities valuable to the nonprofit sector such as the Grantmakers-Grantseekers Seminars and
th~ Campaign for Volunteerism.
To what extent does the Forum live up to the hopes and visions of four or five years ago,
when it was a new idea emerging from conversations among a handful of visionaries? The
answer is mixed. Most whom I interviewed are amazed at how much the Forum has accomplished
in the last two years. Often people cited the Summit as a first class event, where people who
would not usually find themselves in the same company came together to listen, to teach, to
learn about the importance, scale, and diversity of the nonprofit sector in Michigan.
Introductions made at the Summit and at other Forum-sponsored events have grown into
personal and institutional connections of mutual benefit. And research on the identity and
dynamics of the nonprofit sector in Michigan and nationally has begun and is now being

3

�disseminated. All of these examples of communication, education, networking, research, and
pursuit of common interests were certainly important in the founders· hopes for the Forum.
But there are also ways that the Forum, as it has come to be, differs from the original
vision. Things often take longer than we imagine they should, and the Forum has taken longer to
reach today·s state of organization than originally pictured. There is a delicate balancing act
involved in operating an exciting and ambitious volunteer organization with a very small staff.
Forum members have come up with many more good ideas than can be acted on immediatly. It is
a good thing that the Forum functions as an incubator of ideas. But it can also be frustrating ·
when we have more good ideas than we can complete. For example, it was easy to agree that the
Forum should produce a White Paper on the nonprofit sector in Michigan. It has been much more
difficult and time consuming to figure out how to focus it, who should draft it, how detailed it
should be, who the intended audiences are, and when and how it will actually appear. The case is
similar with the videotapes recorded during the Summit. Moving from hours of recordings to
one or more condensed, targeted video productions is more expensive, complex and time
consuming than anyone expected . .
Over and over again, in different ways, interviewees said that now is the time for the
Forum to focus on doing a few things very well. One described the Forum as being at the
adolescent stage of life. We have tried a wide variety of experiences. Now it is time to assess our
short history and be clear with ourselves about which three or four initiatives we have the
time, energy, and capacity to do best. No one ventured to spell out exactly what these three or
four key activities should be. But some of the nominated features of candidate core activities are
that they be pursued in a first class manner by a combination of staff and member time and
resources; that they have specific and measurable outcomes within a year or two; and that at
least some of these core activities be of direct and obvious benefit to local grass roots parts of
the nonprofit sector (e.g., local school boards, county United Way directors, community
volunteer centers).

Question 2. In what ways are the key activities of the MNF consistent with our Guiding
Principles?
1.
2.
3.
4.

Encouraging voluntary giving and service
Promoting constructive dialogue
Research and self-examination
Establishing high standards of ethics, efficiency and
accountability
5. Promoting positive public policies and incentives for the
nonprofit sector, including tax exemption

A general summary of responses to this question is quite positive: the activities and
Forum initiatives of the past two years are seen as consistent with the five Guiding Principles
adopted by the Trustees. Several respondents expressed delight in the fact that they could think
of Forum activities that reflected each of these principles, a pleasantly surprising record given
our short history. One trustee noted that, in hindsight, it was wise to frame and adopt these
Guiding Principles after the Forum had a year or so to sort itself out. A broad and inspiring
vision and mission statement was useful in rallying initial support for the Forum as an idea.
After a year of trying to operationalize the vision it was timely to set forth a more specific set

4

�of principles that speak to what we found to be common ground. The Guiding Principles set
boundaries on Forum activities, present and future. They remind us of our priorities and, by
omission, of what we have decided not to do. More than one respondent suggested that the Guiding
Principles could be used as a framework for reports to the Executive Committee about Forum
initiatives and accomplishments. This format, in turn, could be used by Trustees and others to
inform their own boards of directors and members about the good work and benefits of Forum
membership.
Voluntary Giving and Service
Looking at the five Guiding Principles one at a time, the concensus is that the Forum has
accomplished the most in relation to the first two: encouraging voluntary giving and service, and
promoting constructive dialogue. Our credits for promoting voluntary giving and service come
mostly from Forum affiliation with and support of Governor Romney's Campaign for
Volunteerism and the Give 5 Program. Together, Forum involvement in these activities has
taken an extimated 25% of staff time and energy, to give you a sense of the scale of our
commitment here. Maryellen Lewis was also instrumental in helping make a connection between
the Michigan Association of School Boards' resolution encouraging a service option for high
school students and the expertise of the Michigan Volunteer Centers to assist local school
authorities. This is a good example of how the Forum can work as a linking agent, making
alliances for the mutual benefit of organizations that otherwise would not have realized an
opportunity.
Constructive Dialogue
Promoting constructive dialogue within the nonprofit sector is for many the signature
activity of the Forum. The word "networking" was mentioned often as a primary benefit of
Forum membership. Forum participants report having met and learned from others whom they
likely would not have encountered in their typical patterns of educators talking to educators,
church. people meeting with other church people, and so forth. Once initial contacts have been
made through Forum events and committees, members have felt free to call one another in
pursuit of common interests and projects. In this sense, the Forum has worked well in moving
interesting people out from behind their habits of mind and routines to discover one another and
to form new professional friendships and connections. Because there was no other available way
to do this and because many members felt somewhat isolated in their work, this was singled out
as a highly successful part of the Forum's program.
But it is worth noting that a few participants also took a critical view of constructive
dialogue. Opening new lines of communication has been a good thing, but some of the conversants
are perceived as shaping the conversation more than others and in ways that guard their own
organization's interests. I hasten to add that these friendly critics are not imputing selfish
motives to particular Forum members. Rather, they are trying to explain the structural
features of the Forum that may place constraints on its agenda. Finding common ground is both
hard and delicate work.
Research and Self-Examination
The Summit received high marks for many reasons: the wide range of Michigan sectors
and interests represented, the honesty and openness of the participants, the sophistication of the

5

�technical arrangements, and the polish of Ed Blews as master of ceremonies. The Summit also
brought us into contact with research on the nonprofit sector in Michigan and nationally, and
continued our professional education about the scope, heterogeneity, and challenges of the
nonprofit sector. Respondents were enthusiastic about the beginnings of newly specific
definitions of the "third sector" and the marshalling of evidence by Mark Wilson,
Robert L. Payton and others useful in convincing government, business, and the public of the
vital importance of supporting the nonprofit sector. At the same time, the research reported at
the Summit was seen as but a promising beginning. The developing Scholars Network and the
planned Nonprofit Research Conference in December are encouraging examples of how the
Forum will continue to promote inquiry about the nonprofit sector in Michigan.
Promoting High Standards
There is no doubt about the Forum's commitment to promoting high standards of ethics,
efficiency and accountability in the Michigan nonprofit sector. There is also no doubt that these
matters will take on increasing importance and sensitivity in the coming months and years. The
more successful we are in public education about the size and importance of the nonprofit sector
the more subject we become to public and political scrutiny and regulation. If we do not
articulately regulate ourselves, others will be glad to do it for us.
To date, the Forum has flagged the standards issue as important and proposed that the
next Summit take accountability as its theme. The proposed White Paper and a draft Code of
Ethics for the nonprofit sector hold promise as contributions to high standards. But it is too soon
to tell how strong the Forum's con~ributions in this domain will be.
Positive

Public

Policies

The Forum Program Committee and Public Policy Committee are the sources of most of
our work to date on promoting positive public policies and incentives for the nonprofit sector,
including tax exemption. These have been strong committees and a major agenda item has been
the tax credit issue. In late June the Forum sent an alert to members urging them to contact the
Michigan Congressional Delegation in connection with pending federal legislation on gifts of
appreciated property. Resisting postal rate increases and potentially onerous new accounting
standards drafted by the Financial Accounting Standards Board are also important priorities
addressed by these combined committees. The Forum has also received a small grant to find out
what other states are doing with regard to nonprofit sector advocacy. The general view among
members surveyed is that the Forum has made some promising first steps in promoting positive
public policies, but that it is too soon to tell how influential the Forum can be in this domain.
-

Question 3. How has the MNF increased a sense of community within the Michigan nonprofit
sector?
Many of the issues raised earlier under the heading of "constructive dialogue" were
echoed in connection with the Forum's role in promoting a sense of community within the
nonprofit sector. Members are pleased to have met and connected with individuals, organizations
and causes farther afield than they otherwise would have. Board and committee members who
are relatively new to Michigan or to their organizational roles expressed special gratitude to the
Forum for bringing them up to speed quickly about the Michigan nonprofit scene. And long time
veterans in the nonprofit sector are pleased that, at long last, we are building an infrastructure

6

�for much needed communication, cooperation and coordination. As one veteran said, "Before the
Forum our response to legislative developments was fragmentary and often too late to be
eff~ctive. Now we are able to be more coordinated and proactive." Members of Forum
committees expressed delight with the professionalism and energy of fellow committee members
and staff. The design of the Forum, with a very small staff, makes it necessary that the Board
and committee members do the lion's share of the work, and this has indeed been happening. A
sense of community comes from working hard together on common tasks, as Sister Monica
reminded me.
The Forum office is coming into its own as a source of information about nonprofits. The
staff has been responding to 12-15 telephone calls each month in its Nonprofit Information
Clearinghouse role, on questions as diverse as how to set up a new nonprofit, personnel policies
for nonprofits, training available, state sales tax regulations for church rummage sales,
fundraising opportunities, and where to get help recruiting volunteers for the Michigan State
Fair. In addition to providing helpful information and referrals, the staff adds inquirers to the
Forum mailing list and data base, broadening the stat~wide nonprofit network.
The expressed concern about the Forum's first years in promoting a sense of community
have to do with the scope and constituency of the community. Some feel strongly that the next
stage of nonprofit sector community building should involve much more attention to including
local and county level agencies and actors. The danger, they warn, is that the Forum may be
perceived as an exclusive club for state level nonprofit executives that has little to offer locally.
At the same time, others urge that we should not allow the Forum to get much bigger because it
is challenging enought to sustain a sense of partnership and connection among the present
membership. The issue boils down to finding a balanced way to provide intellectual, moral, and
practical support for the whole nonprofit sector in Michigan, while avoiding inefficient
duplication of services or exhaustion of our staff and working committee members. This
presents a classic dilemma, in which two desirable goals compete, and brings us back to the
issue of focus. When the Forum Executive Committee charts a course for the next year or two,
the question of the size, shape, and membership of the community we hope to affect ought to be
debated quite explicitly, for many other decisions are shaped and constrained by this
fundamental one.
Question 4. To what degree have the activities of the MNF increased awareness and support of
the nonprofit sector in Michigan?
Increased awareness and support for the nonprofit sector in Michigan are attributed
primarily to the Summit and to Forum involvement in the Campaign for Volunteerism.
Participating legislators and business people reported being quite impressed with what they had
learned about the nonprofit sector at the Summit. In connection with the Campaign for
Volunteerism, Maryellen Lewis has travelled and met with representatives and boards of many
organizations outside the nonprofit sector, including the State Chamber of Commerce, Rotary
Clubs, the Detroit Executive Service Corps, and the Ford Motor Company. Satisfying as these
contributions to broader appreciation of the nonprofit sector are, they seem like a modest
beginning with greater potential. For the first time, Michigan has a voice that speaks
articulately for the nonprofit sector as a whole. The Forum is still learning how to use this
voice to widen the circle of awareness and support for the nonprofit sector. The press seems
generally not interested in featuring the nonprofit sector as news. This is an impediment to
more direct public education about the sector that we have identified and begun to address

7

�through a strong series of sessions at the Grantmakers/Grantseekers Seminars and through a
planned series of conversations with media leaders in anticipation of Grantmakers/Grantseekers

v.

Question 5. To what extent is the Forum sustainable in its present form or in a revised
configuration?
When I asked the final question about how or whether the Forum can be sustained, 1
learned that leaders in the nonprofit sector can be at the same time optimistic and have
furrowed brows. Virtually everyone said that the Forum can be sustained. No one said that it
would be easy. And there was clear concensus that the coming year is a make or break time for
lining up a basket of core financial support. As mentioned earlier, you are of two minds about
expanding Forum membership to the 400 level that seems possible in Michigan. But even the
most enthusiastic promoters of expansion do not think that the Forum can become a duessupported organization. One way or another, the core support for the Forum staff, office and so
forth is seen as coming from one or a small number of foundation grants. Expanding the
membership rolls is seen as important in persuading prospective funders of the wide scope of
support that the Forum can provide in Michigan. A variation on the model of seeking multiple
sources for core support is to pursue sponsors of particular Forum activities, like future
Summits, the Forum publication and dissemination program, and Internships. We have had
success in securing multi-source support for the Grantmakers/Grantseekers Seminars and are
pursuing corporate support as well.
Several respondents revisited the themes of focus and practical service to local actors in
the nonprofit sector when we discussed sustainability. To persuade ourselves, future members,
and prospective financial backers of the long term worth of the Forum they urged concentration
on two or three manifestly practical and locally beneficial projects. Examples of Forum
activities already in the works that speak to this priority include a Resource Guide to technical
and managements support and training for nonprofit managers being assembled for fall
publication. The Calendar of Training Activities published in the first Newsletter received
considerable favorable attention from local nonprofits. And we are also compiling a diredtory of
current and emerging higher education programs for nonprofit managers and contributing to a
national effort to assemble a battery of easy to use evaluation instruments for nonprofits.
Another issue that arose in discussions of sustainability was regionalism. Lansing has
been the geographic center of Forum activity, although we have active members as far west as
Grand Haven and east to Flint and Detroit. Face to face dialogue is at the heart of Forum activity,
yet_it demands a great deal of busy people to spend much of a day on the road to attend a two-hour
meeting. And this pattern makes it difficult for members and affiliates away from Lansing to fee l
the fullest sense of ownership and participation. Out of these discussions came ideas and
encouragement for sponsoring regional conversations throughout the state. The present Forum
could serve as a catalyst and a model for locally organized and sustained networks of mutual
support, perhaps growing from community meetings for developing strategies to encourage
volunteerism and regional meetings to view and respond to issues raised in the videos of the
first Summit.

8

�Conclusions
In conclusion, you have convinced me that the Michigan Nonprofit Forum is real, is a
good idea in principle, and is an idea whose time has come. To date, you have told me, the
promise of the Forum is still greater than its accomplishments. At the same time, our
accomplishments are impressive, constructive, and consistent with our Guiding Principles. The
highest form of compliment I heard was from Len Young. As he prepared to move to Kansas City,
he told me that he intended to help create a Missouri Nonprofit Forum modelled after our own.
Even the intitals will be the same.
The Forum, fundamentally, is about relationships: Internal relationships among people
representing very different kinds of nonprofit organizations in Michigan, and External
relationships between the nonprofit sector and government, business, and the public. The word
"forum" implies common ground-a democratic place where common interests can be explored
and pursued; where each has a voice; a cooperative rather than a competitive space in which
encouragement, information exchange, and collaborative connections are the order of the day.
Forum founders and members believe that the work of their individual organizations is vital to a
free and compassionate society. And they also feel a broader sense of responsibility to nurture
the nonprofit sector as a whole; to make incidental connections stronger and to extend the
network farther; to help the members feel part of a like-minded, highly principled community;
to learn from the hard won experiences of others; and on occasion to speak and act with one
strong voice on matters of common interest. In short, the aspirations for the Forum have to do
with identity, mutual support, and common ground.
In evaluating this first phase of the MNF we can ask whether the nonprofit sector in
Michigan has a stronger, clearer identity today than two years ago. I think it has. We can be
proud of instances of mutual support among members attributable to the Forum. And we can ask
whether the Forum, through its varied activities, has helped to define common ground where
mutual interests meet. This has begun to happen and, by your testimony, ought to be pursued
even more urgently.
The Executive Committee and the Board of Trustees have a set of vital decisions to
confront: about membership, focus, financial support, and boundaries. The Forum is growing
out of adolescence, and each of you has different ideas about what kind of adult it shall become. I
hope my story helps to frame your conversation in a constructive light. I am eager to read your
next chapter.

9

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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 Board of Trustees Meeting
April 23. 1992 -11:00 to 5:30
(Hyatt Regency Dearborn — Stutz-Bearcat Room)
Trustees Present:
N. Charles Anderson
Edward O. Slews, Jr.
Gale Colwell
David Gad-Harf
Robert E. Ivory
Steven L. Johns-Boehme
Dorothy A. Johnson
Monica Kostielney
John S. Lore
Lillian G. Mason
Russell G. Mawby
Beverley L. McDonald
Beverly A. McDonald

W. Calvin Patterson
Helen C. Philpott
George W. Romney
Anne W. Rosewame
Frances L. Ryan
Glenn R. Stevens
Kathleen N. Straus
Melvin L. Vulgamore
Elizabeth S. Upjohn
Melvin L. Vulgamore
Herbert Yamanishi
Leonard M. Young

Guests Present:
Thomas E. Brennan
David O. Egner
Daniel McGinnis
Mary Ann Pierce
Staff Present:
Donna M. Clarke
Maryellen T. Lewis
Maryann Tillson

1.

Welcome and Call to Order: With the Chairman and Secretary present, the meeting
was called to order at 11:05 a.m. Those present introduced themselves.

2.

Review of the Minutes: The minutes of the October 28, 1991 meeting were approved
as printed and distributed.

3.

Report of the Chairman: R. Mawby reviewed MNF's Executive Summary and
Guiding Principles, commending the committee chairs for their leadership in bringing
MNF successfully through an important stage in its development. MNF has adopted
clear directions and priorities for implementing its mission and has launched a number
of significant initiatives. After discussion, the committee agreed the Executive
Summary should be an evolutionary document which reflects MNF's refined mission.

�Staff will use the products of MNF's activities, such as the White Paper, to insure that
the Executive Summary captures the spirit and philosophy of the organization, while
tangibly promoting MNF's work.
4.

Report of the Executive Director: M. Lewis reported that the work of the board
committees has begun to yield concrete, visible products. In February MNF held its
first Summit which has opened up several avenues of dialogue among the sectors
involved. MNF will disseminate tapes of the Summit this summer as part of MNF's
resource collection, which also includes audio tapes from the Grantmakers/Grantseekers
Seminars and issues papers from several of MNF's program initiatives.
M. Lewis also reported on the distribution of MNF's first newsletter to over 10,000
individuals throughout the state. The response has been overwhelmingly positive to
both the content and the form of the quarterly publication. The next edition will be
released this summer.
MNF also kicked off its first membership campaign this spring as part of the
registration for GGIV. Response has been very strong and will be the focus of today's
membership committee report.
MNF convened a meeting of the Scholar's Network in January and they will be
meeting again tomorrow following GGIV. The purpose of the Scholar's Network is to
encourage research on Michigan's nonprofit sector, so that we have more dependable
information to guide policy and practice. On December 10, 1992 MNF will cosponsor a research conference on the nonprofit sector with the Nonprofit Michigan
Project/MSU (Mark Wilson) and Wayne State University (David Stevenson). The
keynote speaker will be Dr. Virginia Hodgkinson.
MNF has played a key role as servant-leader for the Michigan Volunteer Coalition
whose efforts will be highlighted tomorrow at GGIV with the kick-off of Michigan's
Year of the Volunteer. G. Romney will provide further details on the event during his
report.
MNF continues to work with ACCESS of Boston to establish their Michigan
nonprofit jobbank. MNF is working to update the Nonprofit Resource Directory,
published by the Accounting Aid Society in 1988.
As approved by the Executive Committee in December, MNF is working with the
Michigan Nonprofit Management Institute (Phil Reed) to launch a Nonprofit
Providers Network in order to facilitate the provision of low-cost, quality
management assistance to all nonprofit* across the state.
MNF continues to fulfill its role as a clearinghouse. It receives approximately 12-15
inquiries per week, ranging from general statistical questions regarding the nonprofit
sector to very specific questions on how to start-up a nonprofit.

�M. Lewis also noted several administrative accomplishments. Michigan State
University has generously provided an additional room, bringing MNF's total room
count to three. With a staff of three plus interns and often seven bodies working at
one time, the added elbow room has been a great relief!
MNF has received verbal notice from the IRS that our 501(c)(3) status was formally
approved on March 13, 1992. A letter is forthcoming.
5.

Report of the Audit Committee: G. Stevens reported MNF's audit for the period
from inception (November 15, 1990) through June 30, 1991 was extremely positive.
According to Stanaback &amp; Company, P.C. MNF's financial statements present in all
material respects the financial position of MNF in conformity with generally accepted
accounting principles. After discussion, the committee unanimously approved the
acceptance of the audit report.

6.

Finance: R. Ivory reviewed the third quarter financial statements, noting MNF is still
running behind in some expense categories because most GGIV costs appear in the
fourth quarter. Also MNF is still in the start-up phase in a few areas. Year Three
should more accurately project MNF's actual yearly costs. After discussion, the
committee unanimously approved the finance report and the following
recommendations:
I. Recommendations on MNF Fringe Benefits Package:
#1: MNF's fringe benefits package should be completed to the level
of 20% of salary as soon as possible, before the end of FY1991-92.
Since fringe benefits have not been fully in place for much of FY199192, any balance of the 20% for each employee this year should be
placed in a Tax-Exempt Annuity for each.
#2: MNF's fringe benefits package should include both REQUIRFJ5
and OPTIONAL benefits, selected on an annual basis (at the beginning
of each fiscal year) by each employee and totaling 20% of salary for
each.
REQUIRFJ) BFJ^ITS should not only include the legallyrequired medical/dental, workers compensation,
unemployment, PICA and Medicare, but also short-term
disability (probably covered in-house, based on the United Way
of Michigan model), coordinated with MNF's sick leave policy
and optional long-term disability insurance.
OPTIONAL BENFJFITS (bringing the personal total up to 20%
of salary) should include Dependents' Medical/Dental, Life
Insurance, Long-Term Disability, Tuition Assistance, and a
Tax-Fjcempt Annuity.

�II. Recommendations Concerning Salary Review
#1: Salary review should coincide with the fiscal year, to
accommodate financial planning.
m. Recommendations for Computer Purchase
#1: MNF should purchase a 486/33 desktop computer and related
peripherals (including a tape backup, fax/modem and hook-up to the
MNF "local area network"), to accommodate MNF's accounting,
desktop publishing, database management and data analysis. For this
purpose, $4000 of unexpended revenues should be transferred from the
Personnel line to the Equipment line. (Actual purchase will be
reviewed with the Finance Committee Chairman, as with any major
MNF purchase.)
IV. Recommendations concerning Fundraising for FY1991-92
#1: The MNF Board should adopt a formal policy urging every
Trustee to make a personal financial commitment to MNF's work.
#2: Upon adoption of this policy of 100% participation, the Board
should request that Chairman Mawby write to each Trustee, inviting
and encouraging them to make a personal financial commitment to
MNF's work.
#3: The board and chairman should also urge each Trustee to assume
the additional responsibility of enlisting new MNF Associate Members
and Network Members.

LUNCH: During lunch, trustees heard a presentation on the new Cooley Clinic, Inc., an
emerging project of the Thomas M. Cooley Law School to provide low-cost legal
services to Michigan nonprofits. Dr. Thomas Brennan, President of the Thomas M.
Cooley Law School made the presentation, which was enthusiastically received by
MNF trustees who asked to be kept informed about ways MNF or its member
organizations could be of assistance.

7.

Report of the Membership Committee: L. Young reported on MNF's current
Membership Campaign. Response has been significant. After less than a month,
MNF has received the following response:

�Membership Level:
Honorary
Sustaining
Sponsoring
Associate
Subscriber

2
2
3
62
8

L. Young also reviewed the membership committee 's strategy for targeting Network
Associates. Staff will circulate a listing of potential Network Associates, to be
reviewed by the each trustee for corrections, updates and additions.
Once staff has compiled the final list, each trustee will be asked to designate twelve
organizations to contact personally, based on prior knowledge of the organization or
familiarity with the organization's field/mission. Any undesignated organizations will
be assigned to specific trustees or contacted by staff.
Staff will supply each trustee with boilerplate language for use in initial contact letters
as well as background information on MNF. Trustees will follow-up their letters
with personal telephone calls. It is important for future membership campaigns for
trustees to note specific reasons organizations give for either participating or not
participating in MNF. This information will be used to adapt future campaign
strategies. A. Rosewarne suggested that trustees point out to those who decline that
they will continue to receive information on MNF and that the trustee will follow-up
again next year!
After discussion, trustees expressed their support for this plan of action. Staff will
take steps to circulate the lists before the end of June so that the campaign can be
launched before the end of summer.
L. Young also reported that nominations for new Organizational Members and new
Network Members can be brought to the Board at its 10/12/92 Annual Meeting. The
membership committee will begin to review potential nominations over the summer
and trustees are encouraged to submit organizations for consideration committee.
8.

Report of the Program and Public Policy Committees: H. Philpott summarized the
summit, noting Robert Payton's excellent introductory remarks and background paper
which set the tone for the entire event. She also recognized the importance of Janne
Gallagher's insights on the nonprofit sector. On behalf of the entire committee she
commended Edward O. Blews, Jr. on his exemplary skills as a moderator and thanked
the entire panel, audience, and staff of MNF for their participation and contributions.
After reviewing the Summit discussion, H. Philpott detailed the issues selected by the
joint public policy and program committees as possible future program themes.
Committee Members agreed especially on the need to clarify the definition of a
nonprofit organization and the unique responsibilities of the nonprofit sector in contrast

�to the appropriate and reasonable functions of government and business. Future MNF
dialogues could also examine questions regarding "who will pay?". Efforts could be
made to target issues of accountability and credibility among the nonprofit sector,
possibly leading to a code of ethics for nonprofits (as is occurring at the national level).
Summit follow-up will include distribution of the videotapes, conversations with
legislators (one planned for the fall), and regional/local roundtables. One short tape
(10-20 minutes) will be designed to serve as a tool groups can use for discussion
purposes. The second tape (1-2 hours, divided into three topical sections) will be
designed to serve as an in-depth resource, especially for educational groups. The tapes
will be accompanied by a discussion guide and written summit excerpts, prefaced by
remarks by Robert Payton, Russell Mawby, and moderator Edward Blews.
E. Blews discussed the Summit Implications for MNF's agenda and thanked
H. Philpott for the opportunity to work with her, and the entire program committee on
the summit. He then reported that a small grant to MNF has been approved by the
National Council of Nonprofit Associations, to support the development of an effective
public policy network for MNF to inform and mobilize the sector on short notice.
(Funds are restricted to cover travel to learn from peer organizations in other states,
and to bring resource persons to Michigan.) He also reported that the White Paper
work group will also meet over the summer, aiming for a fall draft.
E. Blews also updated the committee on several national issues as follows. After
holding public hearings during July of 1991, the Financial Accounting Standards Board
voted to postpone review of the proposed statement of financial accounting standards
for contributions received by charitable organizations. FASB will resume deliberations
later this spring, with a new exposure draft expected in September of 1992. A
comment period will follow, allowing organizations to issue written comments on the
revisions. MNF will continue to monitor this issue and will distribute the revised
standards when they become available.
Members also recently received a Public Policy Alert shortly regarding legislation
which would permanently remove gifts of appreciated property from the alternative
minimum tax (AMT). Congress is expected to act on this important issue in the
immediate future, therefore expeditious action on behalf of MNF and its members is
imperative.
E. Blews then turned to subcommittee chairs R. Ivory and D. Johnson, who reported
on a task force appointed to study the issue of tax incentives. Dorothy Johnson of CMF
and Robert Ivory of UWM serve as co-chairs and are working closely with the state on
this issue, (handout appended)
10.

Report on the Campaign for Voluntarism: G. Romney reported the Year of the
Volunteer will kickoff at GGIV. During the year from April 24, 1992 to April,
1993, a broad alliance of organizations and individuals — under the leadership of
former First Lady Janet Blanchard, First Lady Michelle Engler, Frank Popoff (CEO

�of Dow Chemical), and former Governor George Romney — will undertake a
Campaign for Voluntarism with the following mission:
TO PROMOTE VOLUNTARISM ACROSS THE STATE OF MICHIGAN AND
TO CREATE A CLIMATE OF COMMITMENT TO VOLUNTEERING
WHICH PERMEATES MICHIGAN'S LEADERSHIP, ITS INSTITUTIONS
AND ITS COMMUNITIES.
Goal 11 HELP TO INCREASE/IMPROVE THE STRUCTURES
WHICH SUPPORT VOLUNTEERING IN MICHIGAN'S
INSTITUTIONS AND COMMUNITIES, especially Volunteer Centers but
also including: School volunteer programs, College student volunteer
bureaus, Workplace volunteer councils and incentives, Retired senior
volunteer programs, and many others.
Goal #2 HELP TO INCREASE VOLUNTEERING, ESPECIALLY IN
THE 35% OF CITIZENS WHO EXPRESS WILLINGNESS TO
VOLUNTEER BUT DO NOT.
During this Year of the Volunteer, several statewide efforts will seek to augment
existing local activities:
— Governor George Romney, Janet Blanchard, Michelle Engler and other
high-visibility leaders in the Campaign will visit targeted communities
throughout the state, to meet with local leadership in government, business
and the nonprofit sector, to urge comprehensive, collaborative planning for
effectively tapping and using volunteer energies to solve local problems.
- These visits will be followed by technical assistance from expert networks
throughout the state, such as the Volunteer Centers of Michigan, the Michigan
Corporate Volunteer Council, Michigan Association of Volunteer
Administrators, Michigan School Volunteer Program, Michigan Campus
Compact, Michigan Community Service Commission, and others. Assistance
will be focused on establishing or strengthening the infrastructure that supports
volunteering (such as local Volunteer Centers, school volunteer programs, and
retired senior volunteer programs).
~ Simultaneously, a statewide media campaign will showcase volunteer efforts
and publicize a new (800) number where a person can call, in order to be
referred to local volunteer coordinators who can place them in a satisfying
service experience. The (800) number will be operated through the Volunteer
Centers of Michigan, which will work with Campaign collaborating
organizations such as the Michigan Nonprofit Forum to coordinate the
statewide media campaign.

�10.

Report on Grantmakers/Grantseekers Seminar IV: J. Lore acknowledged the selection
of George Romney as Honorary Chair of GGIV. Although registrations are lagging
behind, due primarily to the economy and the Easter holiday, the program is as strong
as ever. Marian Wright Edelman, President, Children's Defense Fund, serves as the
keynote speaker. Breakouts will cover a wide variety of issues including the Year of
the Volunteer, evaluation and accountability, income generation, advocacy, media and
demographics.
J. Lore also reviewed the agenda for the Speaker's Dinner this evening and
announced the selection of Helen Philpott and Diana Sieger as Co-Chairs for
Grantmakers/Grantseekers V.

11.

Adjournment: The meeting adjourned at 5:20 p.m.

Respectfully submitted by:

Edward O. Slews, Jr., Secretary

ref:7/2/92,bdt20423.min,cm/bdt,0000

�Date:

April 9, 1992

Memo to:

From:

Re:

Michigan Nonprofit Forum
Executive Committee

Robert E. Ivory
Dorothy A. Johnson
Co-chairs, Michigan Nonprofit Forum, Task Force on
Tax Incentives, Sub-Committee of MNF Puplic Policy Committee
Michigan Tax Incentive Task Force

Background
The Michigan Nonprofit Forum (MNF) has established a Task Force to look at
tax incentives for nonprofits. The Task Force will prepare a study on tax
incentives which may be useful to the Michigan Department of Treasury, who
is required to submit to the legislature such a study by June 30, 1993.
The required study is part of Public Acts 170 and 171 of 1991, the final
products of Senate Bills 299 and 300, which renewed tax credits for
community foundations, and established tax credits for homeless shelters
and food banks. During the hearing on both bills, the United Way of
Michigan and the Council of Michigan Foundations proposed that a study on
tax incentives for all nonprofits would be advantageous. The legislation
does not call for the Department of Treasury to do the study, only to
submit a study.
During conversations with State Treasurer, Doug Roberts and Deputy
Treasurer, Gary Wolfram, it was discovered that the Department of Treasury
believes that this study should be conducted by an organization other than
the Department of Treasury. Obviously, the study would be submitted to the
Department for their review, editing and submittal to the legislature. Of
course, this would assume that the Department agreed with the results of
the study and the resulting policy recommendations.
In a meeting with Russell G. Mawby, Chairman, Michigan Nonprofit Forum,
February 14, 1992, and later consultations with MNF Executive Committee
Members, it was determined that it would be appropriate for MNF to sponsor
the study. After discussion with Edward 0. Blews, MNF Public Policy
Committee Chairman, Robert E. Ivory and Dorothy A. Johnson were appointed
as Co-chairs. Committee membership is yet to be determined, but ideally
will include representatives of the arts, education, health and human
services and grantmaking arenas. Suggestions will be discussed with the
Executive Committee at the April 15, 1992 meeting.

�Work/Study
During the February meeting, it was agreed that the following work plan
should be considered for the 1992 calendar:
1. Meetings with the Michigan Nonprofit Forum (MNF) committee to
discuss scope of study, participants and data collection process.
2. Meeting with Michigan Department of Treasury to discuss above.
3. Finalize scope of study, data collection and participants.
4. Collection of data, review of data and analysis of data.
5. MNF committee meets to discuss public policy maker education
program.
6. Identify key legislators and executive departments' personnel to
educate on importance of tax incentives for community charities and
to keep "posted" on preliminary data collection analysis.
7. MNF committee meets to design media strategy for 1992.
8. Implement media strategy to keep key opinion leaders in media
briefed on the necessity for tax incentives and the progress of
data collection and analysis.
It is important the MNF Board Members feel ownership of the above
process. Forum Members will have input into the planning of all of the
above elements and will have constant participation.
It is proposed that MNF engage Public Affairs Associates (PAA),
represented by David Haynes, to administer the above program. PAA would
provide the MNF TAsk Force with drafts to review for each of the
steps/elements approved by the Task Force.
1992 is the year for data collection, and 1993 would be the year for final
analysis of that data collection and preparation of an analytical study
and recommendations to be submitted to the Department of Treasury.
Cost/Support
Year one of the study will cost $60,000. It is anticipated that each
organization will contribute the time and out-of-pocket expenses for
committee participation. The cost for year two cannot be estimated until
the findings of the research are determined.
The United Way of Michigan has volunteered to serve as fiscal agent for
the project. The W.K. Kellogg Foundation, United Way of Michigan and
Council of Michigan Foundations have indicated they will provide financial
support.

�Ideally modest financial support will be received from other educational,
arts, health and human service agencies. Everyone recognizes this time of
budget restraint, as well as the other needs of the MNF.
Next Steps
Executive Committee approval of retaining Public Affairs Associates

-

Add Task Force Members

-

Solicit financial support

-

Presentation to MNF Board Meeting April 23, 1992
Commence study

DAJ/pab:830H

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

[NOT YET ADOPTED]
of the
Finance Committee Meeting
Wednesday. July 1. 1992 - 9:00 to 11:00
(at the United Way of Michigan, 300 N. Washington Square, Suite 405, Lansing)

Present:

R. Ivory, Chair
S. Johns-Boehme
M. Lewis
D. Clarke

1.

Welcome and Call to Order. Chairman R. Ivory called the meeting to order at 9: 10.

2.

Review of the 1991-92 Annual Financial Statement: The committee reviewed and
unanimously approved the 1991-92 annual financial statement. InMNFs second year
of operation, programs became more fully operational, especially in the second two
quarters. MNF is now fully staffed, although the secretarial and two intern positions
were open during several fall and winter months. The shortfall in
Grantmakers/Grantseekers Seminar (GGS) registration — down from 1260 in 1991 to
750 in 1992 ~ skewed both revenues and expenses, in ways that are explained below.
On balance, the year clarified MNFs actual operating costs, using the last two quarters
as the mark (adjusting for the GGS anomaly). The year also demonstrated that several
non-grant income sources can reasonably be depended on as partial support for MNFs
work: contributions, memberships and program fees (although the latter is not a source
of excess revenues, but promises to make some programs largely self-supporting).
These insights serve as the basis for the PROPOSED 1992-93 Budget.
Revenues. Revenues were down $19,450, largely because of the GGS shortfall and
reduced interest rates. Planning for the shortfall was extremely difficult, since nearly
$109.000 (40%^ of total revenues came in during the last quarter, including $32,695 of
GGS fees and $24,200 in contributions and memberships (some of which we were
required to defer to 1992-93).
Simultaneously, GGS costs were reduced by in-kind contributions by MNFs
collaborating organizations: Henry Ford Health System picked up the costs of Jerry
Panas1 presentations; the W.K. Kellogg Foundation covered costs of Marian Wright
Edelman and the Evaluation panel, as well as the design and printing of the postcard and

�brochure; Dow Chemical picked up some of the costs of the Year of the Volunteer
session; and the Mott Foundation picked up all costs of the Alliance for Justice
workshop.
Expenses. Expenses in the last quarter were somewhat unpredictable, due to the
projected GGS shortfall and efforts to (1) reduce GGS costs by securing in-kind
assistance, while also attempting to (2) increase attendance by augmenting marketing and
PR, incurring unplanned GGS costs of Office Operations.
Overspending in Office Operations occurred in copying, postage and supplies, related
entirely to GGS.
Underspending: In addition to GGS savings due to in-kind contributions (described
above), the Hyatt Regency halved room rates for staff and, due to irregularities in service,
eliminated the $3500 conference fee. Because of the registration shortfall, meal costs
were also down $10,000. No luncheon program was originally planned, resulting in a
budget savings of $2500 (speakers fee &amp; expenses and sound system/AV).
In addition, savings were realized from projected expenses in these areas: Directors &amp;
Officers Liability Insurance ($2500 below the ballpark estimate using member
organizations as comparison); $3313 in Evaluation Services (restricted under the Kellogg
grant, therefore included in the budget for 1992-93); and $22,057 in salaries and benefits.
The latter savings was due to several factors: the secretarial and two intern positions were
unfilled during some fall and winter months; some fringe benefits remained inactive for
part of the year; and no salaries were increased during FY91-92.
To achieve a stable cash flow after the Kellogg Grant ends in Year 4 (1993-94) - after
which MNF will not have the luxury of starting its fiscal year with most revenues in hand
— the Finance Committee reaffirmed its recommendation of the standard nonprofit goal
of a three month operating reserve. Toward this goal, $14,000 were allocated to the
reserve in 1990-91, and this year's proposed allocation brings the reserve up to
approximately 7 weeks of operation.
3.

Proposed Revisions of the 1992-93 Revenues and Expenditures: M. Lewis reviewed
the revisions to the 1992-93 revenues and expenditures based on the actual 1991-92
revenues and expenditures. Under income, contributions and dues were increased
based on the success of MNF's membership campaign to date. Under expenditures,
contract services were revised upward because MNF will be bringing in several
outside program speakers. Office Operations was revised to more accurately reflect
actual operations costs. Finally, meeting costs were revised to reflect actual costs
now that MNF's programs are more fully operational. After discussion, the
committee unanimously approved the revision to the 1992-93 revenues and
expenditures.

4.

1993-94 Revenue Sources and Strategics: The committee discussed revenue sources
and strategies for 1993-94 in light of the public support test requirements and the
committee's desire to secure hard funding for MNF's fixed costs. Currently MNF

�receives 71 % of its income from grant sources. After discussion the committee
agreed it is feasible for MNF to aim for 65 % grant income in 1993-94 and 60% in
1994-95 and thereafter. The difference in income will be covered through general
contributions and membership dues.
5.

Revised MNF Personnel Guide: M. Lewis reviewed the personnel guide revisions.
Short-term disability compensation was revised so as to be available to full-time
employees after completing their probationary period. Staff will add language to the
personnel guide which will clarify that the probationary period for all staff is ninety
days. A description of student intern responsibilities was added to the personnel
guide indicating that student interns may on occasion work for more than 30
hours/wk, but shall not be considered full-time employees, thus they do not qualify
for benefits (other than those legally required).
After discussion the committee agreed a performance review policy should be
included in the personnel guide. Additionally, staff will review the sections of the
guide which relate to employment at will and discharge for cause to see if they are in
conflict. Staff will also consult with an employment specialist to determine if exempt
employees qualify for compensatory time. Finally, staff will develop a grievance
procedure to be added to the personnel guide.

6.

Adjournment: The meeting adjourned at 10:30 a.m.

ref:7/6/92,fin20701.min,cm/fin,0000

�MICHIGAN NONPROFIT FORUM
34 KELLOGG CENTER
EAST LANSING, MICHIGAN 48824-1022
Phone: 517/353-5038 Fax: 517/336-1327
Ait affiance to promote giving, volunteering and a strong, effective nonprofit sector in Michigan.
[NOT YET ADOPTED]

MINUTES
of the
Meeting of the MNF Public Policy and Program Committees
June 26, 1992 - 9:00 to 1:00
Kellogg Center, Centennial ABC, East Lansing, Michigan
MEMBERS PRESENT:
Edward Blews, Co-chair
Helen C. Philpott, Co-chair
N. Charles Anderson
Steven L. Johns-Boehme
Constance P. Julius
Justin P. King
Linda Patterson
Frances L. Ryan
Lawrence Wells

STAFF PRESENT:
Donna Clarke
Maryellen J. Lewis
GUEST:
Christopher Clark

1.

Call to Order: With the Co-chairs present, the meeting was called to order at
9:15 a.m., due to unavoidable delays of several members Those present introduced
themselves.

2.

Review of the Minutes: The minutes of the April 6, 1992 meeting were approved
unanimously as printed and circulated.

3.

Policy Updates: M. Lewis asked D. Clarke to update the committee on the Financial
Accounting Standards Board's (FASB) review of the proposed statement of financial
accounting standards for contributions received by charitable organizations. D. Clarke
reported that after holding public hearings during July of 1991, the Financial
Accounting Standards Board voted to postpone further review until spring of 1992.
FASB plans to issue an Exposure Draft on financial statement display in the third
quarter of 1992. A comment period will follow allowing organizations to issue written
comments on the revisions. FASB decided not to issue a final Statement on accounting
for contributions before exposing for comment the tentative conclusions reached on
financial statement display.
After discussion, the committee approved a motion to re-affirm and re-emphasize
MNF's position on the FASB proposals and at the appropriate time to contact FASB .

�The committee also recommended that the Executive Committee take a position urging
the major auditing firms in Michigan to contact FASB and to have MNF's member
organizations contact their own auditors in relation to this issue. MNF will continue to
monitor this issue and will distribute the revised standards when they become available.
E. Blews informed the committee that the House Ways and Means Committee recently
reported out H.R. 11 which would extend the exemption of appreciated property from
the alternative minimum tax (AMT) through December 31, 1993. The legislation
would also expand the exemption to include stocks, bonds, real estate and artwork.
The full House is expected to take action on H.R. 11 on July 1, 1992.
In light of the short window of opportunity for action, the committee unanimously
approved a motion to re-affirm MNF's prior support of extending this tax exclusion
and urging that the exclusion be made permanent. In addition, the committee urged the
Executive Director to fax a letter thanking Michigan's Representatives on the House
Ways and Means Committee for their support of H.R. 11, and to urge the remaining
members of Michigan's Congressional delegation to support the legislation as well.
MNF will also contact and encourage MNF trustees to take action on behalf of this
legislation, either personally or on behalf of their organizations.
M. Lewis asked D. Clarke to update the committee on the current nonprofit postal rate
appropriation. D. Clarke reported that the House Appropriations Committee recently
approved an appropriation that would provide only $200 million of the necessary $482
millions required for the "Revenue Foregone Appropriation" that provides for reduced
postal rate for nonprofit mailers. The full House is expected to approve the
appropriation at the $200 million level. If the Senate also maintains this level of
funding, nonprofits will see an across-the-board increase of nearly 35%.
After discussion, the committee unanimously agreed to re-affirm MNF's prior support
of full funding for the "Revenue Foregone Appropriation." Further, the committee
recommended that the Executive Director alert the Michigan Senators of this position at
the appropriate time and to urge them to contact their colleagues on the Senate
Appropriations &amp; Government Affairs Committees in support of full funding.
This information will also be included as part of a legislative update in MNF's
upcoming newsletter. MNF will continue to monitor this situation and will activate
members to contact House members at the appropriate time should the matter be
referred to a conference committee.
4.

Summit I Update: M. Lewis reported on the follow-up to MNF's first Summit. The
Summit Issue Paper will be available soon. The Summit discussion has been
transcribed and R. Mawby and E. Blews are working on finalizing the introduction and
the concluding remarks.
M. Lewis is working with Lawrence Technological University on the editing of the
videotapes. They are expecting a fall release with the length depending heavily on

�budget Dissemination will begin once the tape is finished. M. Lewis will be talking
individually with trustees to identify networks for distribution.
At that time, arrangements will also be made for the luncheon for legislators at or near
the state capitol. The committee agreed that with the upcoming election it may be
more productive to hold the luncheon after the election.
5.

White Paper Update: M. Lewis reported on the development of the White Paper.
Janne Gallagher is currently drafting the first draft of the Independent Sector's White
Paper, which she expects to complete by mid-July and will send. She will also write
an issue/reflection piece for review by the MNF White Paper sub-committee in August.
The draft of the MNF White Paper should then be available for review by these
committees at their October meeting, for recommendation to the Board at the October
12 Annual Meeting and subsequent circulation, discussion and hearings.

6.

Introduction to the National Nonprofit Accountability Project: M. Lewis reported on
preliminary national meetings of several nonprofit leaders to take a proactive stance on
challenges to accountability of the sector. She also reported on preliminary
conversations with funds and resource people to develop a Michigan Accountability
Project, linked to the White Paper process and media and evaluation themes developed
over the last two years. She will keep the committee posted on progress.

7.

1992-93 Summits: After considerable discussion, members agreed to develop a
year-long process of issues discussions leading to a single full Summit (rather than two
summits annually, as originally planned). Primary concern focused on the stature and
importance of the event, which likely would be diluted by greater frequency. The
Summit Working Group will meet over the summer to flesh out details.

8.

Electing to Come Under the 1976 Lobby Law: M. Lewis recommended that MNF
elect to come under the 1976 lobby law. The IRS limits the amount of lobbying
501(c)(3) public charities may engage in. All 501(c)(3) organizations are subject to the
vague "insubstantial part" test unless they elect to come under the section 501(h)
"expenditure test".
The expenditure test sets specific dollar limits calculated as a percentage of an
organization's total budget for the year. The generous 1976 lobby law also defines the
activities which count against these limits. Sanctions regarding violation are also much
more lenient on those who elect.
Election is a simple process under the 1976 law. Once a nonprofit1 s governing body
decides to be governed by the expenditure test, an authorized officer or trustee signs the
one-page IRS Form 5768. Election is retroactive to the beginning of the tax year in
which it is filed. The nonprofit automatically continues under the provision of the 1976
law unless it chooses to revoke that election.
J. King and L. Wells noted that MASB and MLHS have respectively elected to come
under the law and would recommend that all 501(c)(3) organizations do the same.
After discussion, the committee unanimously approved a duly seconded motion to

�recommend to the executive committee that MNF elect to come under the 1976 lobby
law.
9.

Adjournment: The meeting adjourned at 12:15 p.m.
The committee was then joined at lunch by two resource persons from the
Michigan State Bar: Fred Doherty and Brian Kaser. Discussion focused on
property tax cases and recent rulings by the Michigan Attorney General
restricting charitable nonprofits from engaging certain staff professionals (e.g.
doctors, lawyers, ministers and accountants) to provide direct services to then*
constituencies.

ref:7/5/92,ppc20626.min,cm/publ,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.
V

SUMMARY
Tax Incentive Study Task Force
Wednesday, July 22, 1992 - 10:00 to 12:00
MI Library &amp; Historical Center — Lake Superior Room
Lansing, MI
Members Present:

Staff Present:

Robert E. Ivory, Co-Chair
Dorothy A. Johnson, Co-Chair
Robert Beming
Betty Boone
Richard T. Cole
David Haynes
Maryellen J. Lewis
Matthew E. McLogan

Donna M. Clarke

1.

Welcome &amp; Introductions: R. Ivory called the meeting to order at 10:05 a.m. Those
present introduced themselves.

2.

Background: D. Johnson described the development of the MNF task force appointed
to review tax incentives for nonprofits. 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.
Toward that goal, Public Affairs Associates has been engaged by the Council of
Michigan Foundations and the United Way of Michigan to collect and analyze the
necessary data and prepare an analytical study, as the basis for recommendations to be
submitted to the Department of Treasury.
The cost of the contract with Public Affairs Associates is $30,000. The United Way of
Michigan has volunteered to serve as fiscal agent for the project. Further, the W.K.
Kellogg Foundation, United Way of Michigan and Council of Michigan Foundations
have formally indicated that they will provide financial support for the study. Ideally,
modest financial support will also be forthcoming from other educational, arts, health
and human service agencies. It is anticipated that each organization will contribute the
time and out-of-pocket expenses necessary for committee participation.

�3.

Role of the Task Force: R. Ivory noted that the role of the Task Force will be to
provide direction for the study, by soliciting broad-based input from the nonprofit
sector, and to advise on the final report and recommendations.

4.

Scope of the Study: D. Haynes discussed the urgent need for a study of this nature.
Major changes in Michigan tax structure are looming on the horizon. Both the
legislature and the executive office recognize voters' concern about the current tax
structure, and believe that 1993^94 budget discussions will focus on revamping the tax
system. Major readjustments in state revenue are anticipated, which will be reflected
in how Michigan funds programs. This year will be a time of extraordinary
opportunity for Michigan's nonprofit sector to advance a solid rationale for the historic
support given by state government toward the sector's work in the public interest.
Committee members agreed that, 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. We must also, D. Haynes pointed out, be able to distinguish the
impacts of all tax credits (which support a wide range of profit and nonprofit groups)
from those which specifically support the work of 501(c)(3) organizations. With hard
data on these difficult questions for the first time, the rationale for supportive public
policies will be clarified.
Committee members pointed out that the tax credit issue is already controversial in
Michigan. Nearly 30 human service organizations have allied in the Coalition for the
Public Trust in opposition to the principle of tax credits for contributions to a selected
few nonprofits. D. Johnson suggested that a state tax credit or exemption for
contributions to all 501(c)(3) organizations qualified for the federal income tax
exemption — currently adopted by approximately 30 states — may prove to be a more
broadly supported principle. Committee members agreed that member organizations of
the Coalition for the Public Trust (such as the Michigan League for Human Services)
should be included in this exploration of tax credit policy, as constructive partners.

5.

Next Steps: After discussion, the committee agreed that the consultants will produce a
discussion paper within the next 90 days on the results of their study, so that the
committee can consider the rationales supporting various tax credit policies.
Committee members will also begin to meet with members of the nonprofit community
to garner their input and participation in this exploration, toward a broader
understanding and consensus on final recommendations. And finally, the committee
will begin to lay groundwork for dissemination of the eventual recommendations and
rationale to key legislators, to inform the debate and clarify the consequences of tax
policy options.

6.

Adjournment: The meeting adjourned at 12:00. The next meeting is scheduled for
September 21 from 9:00 to 11:00 at the MI Library &amp; Historical Center, in the Lake
Huron room.

ref:tax20722.min,cm/ppc,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.
V

[DRAFT]
Minutes
of the
MNF Membership Committee Meeting
July 22, 1992 - 12:30 to 2:30
Kellogg Center, State Room, East Lansing, MI

Present:

Staff:

Dorothy A. Johnson
Maryellen J. Lewis
Anne W. Rosewarne
Lawrence O. Wells

Donna M. Clarke

1.

Welcome and Call to Order: D. Johnson called the meeting to order at 12:35 p.m.

2.

Review of the Minutes: The minutes of the April 20, 1992 meeting were approved as
circulated

3.

Opening Remarks by the Chair: D. Johnson discussed the background and status of
the membership campaign to date. She noted that the spring campaign was kicked off
during the registration for Grantmakers/Grantseekers IV and focused on potential
Associate Members. The response has been overwhelming. It is now time to begin
the second phase of the campaign which will target Network Associates.

4.

Update on Progress: M. Lewis reported on MNF's current Membership Campaign.
As D. Johnson reported, the response has been significant. In three months, MNF
has received the following response:
Membership Level:
Honorary
Sustaining
Sponsoring
Net. Assoc
Associate

10
-3
4
2
110

Subscriber

9

�M. Lewis noted, that while the focus of the membership campaign is shifting to
Network Associates, MNF will continue to circulate membership information to
potential Associate Members through future mailings and events.
5.

FY 1992-93 Membership Campaign: D. Johnson initiated discussion on the strategy
and assignments for targeting Network Members. After reviewing the draft
"boilerplate11 letter, the committee agreed to revise the format to comprise a one page
bullet listing of MNF1 s activities and membership benefits. A. Rosewarne agreed to
draft the initial revision by July 24th, for committee and staff review.
In June, staff circulated the potential list of Network Associates to trustees for their
review. Approximately half of the trustees have selected organizations which they will
contact during the fall campaign. After discussion, the committee agreed that the next
step in the campaign is to mail membership contact packets to these trustees by July
31st. Each packet will include the "boilerplate" letter, a membership form, MNF's
recent newsletter, MNF's membership brochure and a contact response form. Trustees
will have until September 14 to send their initial letter and make follow-up phone calls.
Committee members and staff will monitor campaign response on a weekly basis. Staff
will develop a master timetable for the campaign (attached).
Staff will also recontact those trustees who haven't chosen organizations to solicit for
membership . Any remaining organizations will be divided between MNF's Chair,
committee members and staff. D. Johnson proposed, and committee members agreed
on a strategy of an initial letter, perhaps from R. Mawby, followed by "cold calls" to
organizations not selected for a more personal contact.
The committee also reviewed MNF's current brochure, noting only minor layout and
descriptive changes. On recommendation by the Fjcecutive, the current brochure will
be used in the fall campaign, to avoid delay. Committee members will continue to
review the brochure in light of the current membership strategy for further discussion at
the September meeting.
The committee reviewed and approved current membership benefits, pending future
review based on more experience.

6.

Confirm Next Meeting: Committee members set the next meeting for September 21,
11:30 to 1:30, at the State Room in the Kellogg Center.

7.

Adjournment: The meeting adjourned at 2:00 p.m.

�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.
V

MNF MEMBERSHIP CAMPAIGN
Timetable
JULY
31

AUGUST
3 to 7
3 to 9/14

— Contact list, boilerplate language, brochure and membership statement
mailed to trustees

— Mailing to trustees who have not selected organizations to contact
— Trustees make written contacts and follow-up with phone calls

14, 21, 28 — MNF send tallies of trustee contacts to Membership Committee
17 to 9/18

— Committee members/staff follow-up with trustees to monitor and
encourage progress

1

— R. Mawby to complete letters to trustees regarding individual donations

4, 11, 18

- MNF sends tallies of trustee contacts to Membership Committee

21

- Membership Committee Meeting (11:30 - 1:30,-State Room/Kellogg Ctr):
- MNF Brochure revisions due!

- Develop clean-up strategy and next steps
- Based on experience, lay our strategy for balance of FY1992-93 and
for FY1993-94
- Review nominations to 10/12 Annual Meeting
23

~ Chair reports to the Executive Committee

OCTOBER
12

— Chair reports to the Board of Trustees

NOVEMBER:

- Membership Committee meets (TENTATIVE)

�1993
FEBRUARY:
-- Membership Committee (for spring campaign related to GGV and Summit)
MAY:
13

— Report to the Board of Trustees
v

AUGUST:
- Membership Committee meets for fall campaign
SEPTEMBER.
— Mbr/Nominating Committee meets (nominations for Board Meeting)
OCTOBER
28

- Chair reports to the Executive Committee

NOVEMBER
11
— Chair reports to the Board of Trustees
1994
FEBRUARY:
— Membership Committee meets for spring campaign related to GGVI
MAY
— Chair reports to the Board of Trustees
JULY/AUGUST
— Membership Committee meets for fall campaign
SEPTEMBER
— Mbr/Nominating Committee meets (nominations for Annual Meeting)
NOVEMBER
-- Chair reports to the Board of Trustees

ref:mbr20722.min,cm/mbrshp,0000

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

DRAFT
Minutes
of the
Grantmakers/Grantseekers Seminar V Program Committee Meeting
Wednesday, August 26, 1992 - 10:00 to 1:00
Hyatt Regency, Dearborn - Stearns Knight Room
Members Present:
N. Charles Anderson
Ethel Kage
Sandra Hussey
Charles Infante
Kenneth Isherwood
Maryellen J. Lewis
John S. Lore
Collette Murray
Barbara Owens
Helen C. Philpott
Diane Bostic Robinson

Diana R. Sieger
Mark Terman
Patricia Waxweiler
Lawrence Wells
Jacquie Wetherholt
Pamela Wong
Staff Present:
Donna M. Clarke
Carrie A. 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.

2.

Video Presentation on MNF &amp; Discussion of Purposes of GGS within the context of
MNF: M. Lewis presented an informational video on the formation and mission of the
Michigan Nonprofit Forum and reviewed several of MNF's programs which could tie
in with GGV.

3.

Review of Past GG Seminars: M. Lewis reviewed the themes from past seminars
noting that they shared several common threads: collaboration, media, tax policy and
public policy, volunteerism, and ethics and accountability.
M. Lewis also reviewed the GGIV evaluation [attached to minutes, although
unavailable at the time of the meeting]. She reported that the overall evaluation of
GGIV was excellent. The keynote speaker, Marian Wright Edelman, was a
tremendous success, getting consistently high ratings. She set the tone for the entire

�day and energized and focused participants before the breakouts. In particular, the
sessions on media and research were evaluated quite highly. While the session on
evaluation and accountability only received a moderate rating, it was "standing room
only" ~ evidence of the overwhelming interest in this area. The funding sessions
presented by Florence Green and Jerold Panas also received a very positive response.
The volunteerism session ranked well, although attendance was lower than expected,
primarily because it was in competition with the funding sessions.
v
The lunch presentations received high marks in the content area. However, many
participants commented on the inability to hear the speakers. M. Lewis discussed this
matter with representatives of the Hyatt Regency and was dismayed to learn that they
have no plans in the immediate future to revamp the sound system in the lunch room.
She noted that the program committee will need to give special attention and focus to
planning the lunch session for GGV and to budget for an adequate sound system.
M. Lewis also reported that the resource tables were a tremendous success. She
commended J. Wetherholt on her leadership and organization of this valuable resource.
The committee also discussed the possibility of charging a resource display fee for the
tables at GGV. Members noted that charging for displays is common practice for a
conference of this size and stature. The committee agreed to review the matter further
as it reviewed the budget.
M. Lewis concluded by reviewing the budget report for Grantmakers/Grantseekers IV
(attached). Attendance was 750, down from 1265 at GGin. While no single cause can
be targeted for the decrease, it appears that much of the drop off was due to recessioninduced budget restrictions and to the scheduling of the conference in relation to the
Easter and Passover holidays. This drop in registration created a corresponding drop in
income. Because of the registration shortfall, hotel meal costs were down $10,000.
Additionally, the Hyatt Regency waived the $3500 conference fee due to irregularities
in service. However, expenses were up, due in part to extra efforts to elicit
registrations and in part to MNF assuming a larger portion of the direct costs of the
conference (such as mailing). Also, in contrast to GGIQ, the MNF board budgeted
$10,000 for additional staff help, and funds for greater computer capacity to handle
such a large event.
After discussion, the committee created a sub-committee consisting of J. Wetherholt,
M. Terman, P. Waxweiler, P. Wong and M. Lewis to investigate future funding
avenues, including potential corporate sponsorship and fee for display. The subcommittee will meet or talk via conference call prior to the next meeting on October 6.
The committee also discussed continuing to hold the GGS at the Hyatt Regency in
Dearborn. Staff noted that there have been several significant problems with service in
the past. Initially, the Hyatt Regency was chosen because it was the only hotel in the
Metro Detroit area which could accommodate the number of breakouts required. The
committee reviewed the issue and agreed to include a question on the evaluation for
GGV which would ask if participants would attend GGS if it were held in Central
Michigan (Lansing) or West Michigan (Grand Rapids or Kalamazoo).

�4.

Define Theme for 1993 Grantmakers/Grantseekers V: The committee reviewed
previous GGS themes and agreed to build off of them in clarifying a theme for GGV.
Committee members also reflected on their individual perceptions of the previous
Grantmakers/Grantseekers Seminars. Several common themes emerged:
accountability, the government/business/nonprofit partnership, diversity, the
breakdown of community and community investment/solutions. After brainstorming,
the committee chose: "Focus oh the Future: Creating Caring Communities" as the
theme for GGV.
The committee also discussed the selection of the Keynote speaker. The Keynote
speaker sets the tone for the entire conference. The opening session needs a
charismatic, thought-provoking speaker who is in-tune with the independent sector
and the conference theme. The speaker should also be someone of prominence and
broad-based appeal. The committee discussed several potential speakers including
John Gardner, James Hayes, Brian O'Connell, Elizabeth Dole, Jimmy Carter, Ed
Barlow, Rush Kidder, Peter Goldmark, Peter McTier, John Jacobs and the new
President of the United Way of America. The committee will make a final selection
at the October 6 meeting.
The committee also reviewed the luncheon situation. In light of participants'
preference for networking time and the problems with the hotel sound system, the
committee decided not to have a luncheon speaker. The committee also agreed that
table hosts are not necessary during the luncheon. The committee discussed having a
short luncheon, perhaps thirty minutes, followed by an afternoon keynote speaker.
Alternatively, a second keynote speaker could conclude the day's program. The
committee will continue to discuss this issue at the October 6 meeting.

5.

General Themes &amp; Sessions for GGV: M. Lewis noted for planning that 22% of
those in attendance at GGIV were nonprofit board members and 45% were CEO's of
nonprofit organizations. There was a corresponding overlap of 14%.
The committee discussed several session topics related to the theme and developed
assignments as follows:
Topic

Sub-Committee

Futuring/Demographics
Volunteerism/Give 5
Media
Leadership
Real World Collaboration

K. Isherwood
D. Sieger
C. Murray
J. Lore
Diane Bostic Robinson
Sandra Hussey
D. Moore
E. Kage
M. Lewis
S. Feurt
L. Wells

Evaluation/Accountability

Public Policy

�Legislators

P. Waxweiler

The committee also reviewed the layout for the shorter afternoon sessions and agreed
that this format worked well following the longer morning sessions and lunch.
6.

Review of 1992-93 Planning Calendar &amp; Timetable: The committee reviewed the
1992-93 planning calendar and timetable noting the next meeting of the program
committee will be on October 6sat 10:00 to 1:00 at the Michigan Library and
Historical Canter in Lansing.

7.

Adjournment: The meeting adjourned at 1:10 p.m.
ref :ggs20826. min.cm/ggs, 1200

�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.

s
Final GGIV Financial Report
REVENUES
Restricted Contributions
Restricted Kellogg Fdn Grant
Program Fees
Tape Income
Transfers in from previous vear
TOTAL REVENUES

1992

1991

49,991.73

500.00
12,000.00
37,236.00
729.00
3.062.50
53.527.50

14,746.96

3,046.62
2.854.27
5,900.89

$5,272.23
10,000.00
32,695.50
241.00
1.783.00

EXPENSES
Professional Fees &amp; Services
5,321.66
Direct Clerical &amp; Intern Services
9.425.30
TOTAL SERVICES (EXCLUDING STAFF)

2,042.16
4,876.67
1,645.01
1,315.75

Office Supplies
4,503.41
Copying &amp; Printing
7,449.82
Postage &amp; Shipping
6,102.82
Telephone &amp; FAX
598.57
Advertisine/PR
106.23
TOTAL DIRECT OFFICE EXPENSES

18,760.85

9,879.59

MEETING COSTS
SPEAKERS TRAVEL &amp; EXPENSES
EQUIPMENT
COMPUTER SUPPORT

20,997.04
4,251.61
2,433.98
1,893.98

31,874.29
2,801.04
2,653.00
314.11

TOTAL COSTS (EXCLUDING STAFF)

63,084.42

53.422.92

Direct Staff Support (based on time sheets)
Miscellaneous Admin. Support (insurance, parking)

29,560.42
608.66

TOTAL ACTUAL GGTV COSTS
ref:gg4fincl.rpt,cm\ggs, 1200,8/26/92

- o.oo

93.253.50

�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
White Paper Subcommittee of the MNF Program &amp; Public Policy Committees
Friday, September 18, 1992 - 10:00 to 2:00
Kellogg Center, Room 103, East Lansing, Michigan

MEMBERS PRESENT:
Edward O. Blews
Janne Gallagher
Gene Keilitz
Maryellen J. Lewis
Linda Patterson
Karen Uhlich

Jeanne Vogt
Herbert Yamanishi
STAFF PRESENT:
Donna M. Clarke

1.

Welcome and Introductions: H. Yamanishi called the meeting to order at 10:20 a.m.
Those present introduced themselves.

2.

Update on Current Legislative Issues and Actions: M. Lewis updated the committee on
recent legislative issues. The U.S. Congress recently reduced the "revenue foregone"
appropriation for nonprofit postal rates from $485 million to $200 million for FY 1993,
but included a freeze on rates at the current level. That means that nonprofits will pay
the same rate through October 1993, but the Post Office (rather than Congress) must
make up the difference. This weakens the position of the nonprofit sector when it
comes to renegotiating the rate next year, when the rate freeze is scheduled to end.
Unless this subsidy is made permanent, nonprofits must fight this battle every year, and
the FY 1994 appropriations process will be more critical than ever. It is imperative for
nonprofits to continue their grassroots efforts to maintain and stabilize preferred postal
rates for nonprofit mailers.
The Senate is also expected to renew debate on HR 11, which would enlarge and make
permanent deductions for gifts of appreciated property. It also would make the 3 %
floor permanent on itemized deductions, including charitable deductions. MNF will
continue to follow this legislation closely.

�J. Vogt noted that state efforts may be underway to increase the fee for a Charitable
Solicitation License. MNF will monitor this situation and notify members of any
proposed changes.
3.

White Paper Development: J. Gallagher opened discussion on the development of the
White Paper. She updated the committee on her work on the Independent Sector's
White Paper. For over two years, a steering committee has been working to develop a
clear statement on the positive contribution which voluntary organizations make to
society. The Independent Sector Government Relations Committee has approved the
initial summary of the White Paper and J. Gallagher is now recasting the draft to
include recommendations made by the Independent Sector Board.
In turning to Michigan's White Paper, J. Gallagher emphasized the critical nature of
this process. Current budget deficits and opposition to raising taxes is forcing a
fundamental restructuring of relationships and roles that exist between government,
business and the nonprofit community. She reaffirmed that MNF's unique efforts to
engage citizens in thoughtful dialogue are of critical importance and a model for the
nation.
Following is a summary of committee brainstorming on (1) the pivotal values and (2)
standards of actions of the nonprofit sector, (3) the audience and (4) the process of
defining and then using the White Paper:
(1) What are the pivotal values underlying the nonprofit sector?
Altruism: Often assumed in public policy, but not always clearly understood by NP
leaders. Definition? Serving the public good? Is "unselfishness" part of it? Selfsacrifice vs. public service.
Does "Altruism" mean putting others ahead of self-interest? Must it also imply selfsacrifice?
How central are the religious values underlying the historical NP sector? "Vow of
Poverty" as extreme case of voluntary, economically-sacrificial service.
What is relationship between organizational values + individual motivations?
Institutional commitment to altruism - - Inst'l success not measured by profits.
Need of constituents/public comes before decision about risk-taking: In contrast to a
drug co., for example, which makes choices based on market.
Compare successful company which puts service first. Lets not use stereotypes to
distinguish NPs.
Is NP sector's problem that distinction w/business begun to blur? Do we need to be more
articulate about the distinction in terms of values?

�Are we distinctive? Have the boundaries blurred beyond recognition?
Community Change Identification of community needs and problems, proposing solutions.
Is this one of the sector's important gifts to the community? The opposite of maintenance
of status quo? But much has gravitated to maintenance. Need is not necessarily advocacy,
but problem identification. How do we assess the problem and serve as a catalyst for
change? Is this part of pluralism and community?
Progressiveness? (often thought of as a political term) But can be thought of as a having
the value of improvement - a positive value that there is hope. Preservation is a factor in
progrcs s sivenes s.
Optimism: Belief that we can make and improve the human condition
difference change — how does this differ from Altruism? Altruism is beyond self-interest.
Optimism if belief that we can do it.
Pluralism &amp; Community
Conscience/accountability: Acting out of sense of justice, even when doomed
Preservation In Pursuit of re-imagining ourselves.

(2) What actions should be expected of the nonprofit sector, based on those
vales? What should they look like in practice?
Nonprofits are viewed by federal officials as arrogant/self-righteous. "We don't
have to justify ourselves because we are right."
This is the traditional tactic of all lobbyists - - but NPs had nothing to bargain with.
Now our reputation as a sector has been somewhat compromised, so not so easy
to demand action.
Some perception that the business/commercial behavior of NP sector has
compromised missions. To what extent is this complexity needed to cany out our
missions.
"Private benefit" issue re: high compensation in some NPs, complex corporate
structures. How are organizations operating for private benefit of staff?
IRS question: Is complex organizational structure necessary and so are highly
compensated personnel necessary?
Are NPs operating more subtly for the benefit of faculty and staff? (Drs, faculty,
Athletic Directors).
But NP sector has no vow of poverty.

�Look at the institutional processes that determine salaries. E.g. hospitals that
acquire physician practices at high costs primarily for institution preservation vs.
same picture but motivated primarily by serving community.
Do IRS actions disrupt capitalistic processes by penalizing some high salary
organization vs others?
Does financial success (w/surplus plowed back into mission) undermine tax
status? Does it divert NPs from mission?
The "White Paper Process" might mean asking ourselves these hard
1. To keep focused on mission.
2. Public questions must be addressed.
3. Government investigations raising important questions, NP sector
largely not engaging in this process
We haven't articulated well, engaged in self-examination.
Don't want issues to be distorted by media, public officials, a few nonprofits
IRS sees NPs as arrogant, but does overlook that accountability is not to a
government agency but to the public - - represented by elected officials.
Institutional responsibility: Not to an agency.
Is it a core value that NPs should have some sort of private contributed income?
Is this part of "accountability?"
What about those 100% gov't supported? What about 100% fee supported?
Gift to Community: Must be something that furthers mission.
How do we deal with Klux Klux Klan re: diversity? Question becomes Does it
truly serve a broad spectrum?
YMCA/WCA Model - - as moved toward country club model, began to lose tax
exemptions, reversed trend now.
Community: We live in a time when much fosters divisiveness, need to counteract.
Board: NCIB guidelines rec. no more than 1 staff on Bd? Term of
Service/Planned succession.
Consensus on 3 basic values. Consensus on internal examination needed.

�(3) What should be the audience of the White Paper? To whom should it be
addressed, and to what purpose?
Who are we trying to reach? Who is included - 501 (c) (3)
"Ourselves" as audience
-media and communication people
-corporate leadership
-college programs
-chambers
Why? to clarify misconceptions. We hope it will convince others we are worthy
of support and that we should be included in public policy discussions. Also to
build support that would recognize worth of missions and reverse erosion of
capacity to serve.

(4) How should the White Paper be used? What are the processes needed now
to achieve the goal of greater understanding and principled action?
J. Gallagher to revise first draft incorporating committee comments and relevant
Michigan data.
10/9 Public Policy &amp; Program Committee Meetings
-Consider Wkg draft
-Recommend to full Board on 10/12
10/12 Board of Trustees "receive" &amp; comment
Subsequent discussions/hearings in subsector networks and communities.
- How to effectively present to unfamiliar audience? Develop Executive
Summary?
Final Draft to be presented at MNF Board meeting in May 1993.

4.

Adjournment: The meeting adjourned at 2:00 p.m.

ref:ppc20918 .min,cm/pbpl,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.

[DRAFT]
Minutes
of the
MNF Membership Committee Meeting
September 21, 1992 - 11:30 to 1:30
Kellogg Center, State Room, East Lansing, MI
Present:

Staff:

Dorothy A. Johnson
Justin P. King
Maryellen J. Lewis
Anne W. Rosewame

Donna M. Clarke

1.

Welcome and Call to Order: D. Johnson called the meeting to order at 11:45 p.m.

2.

Update on Progress: M. Lewis reviewed MNFs current Network Associate
membership efforts. Since the membership campaign began this summer, last
membership committee MNF has received the following response:

As of Sept. 16:
Honorary Donors
Sustaining Donors
Sponsoring Donors
Other Donors
Network Associates
Associate Members
Subscriber

Since July 1:

13
3
4
6
9
104
10

3
0
0
4
7
5
1

Response to date has been encouraging. In fact, two additional Network Associate
memberships were received during the meeting:
Birmingham Area Seniors Coordinating Council
Michigan Association of Professional Black Nurses

�The committee reviewed the current summary of members and requested several layout
changes. First, individual donors should be listed with name only, not with
organizations. Second, D. Johnson requested a separate summary of individual board
contributors, so they can be publicly thanked at the board meeting.
D. Clarke updated the committee on the status of the trustee contacts. All trustees who
received contact lists have sent out personalized recruitment letters and membership
materials. Most are now in the process of placing the follow-up phone calls. The
committee reviewed strategies for capturing this follow-up information. After
discussion, the committee agreed staff should develop a form which could be sent to
each trustee for this purpose. This simple check-list should be designed to gather
information on the present campaign that can also be used in future campaigns. It
should include questions on how the organization was contacted, how they responded,
if they had any concerns or comments regarding MNF's work or the recruitment
process, and whether or not there is any change in the organizations status ( did they
join, were they a network, address or personnel change, etc.). Staff will develop and
circulate this survey by October 2 and conduct follow-up as necessary. The committee
set a November 1 deadline for the trustee follow-up phone calls.
The committee also discussed strategies for contacting the remaining potential Network
Associates that weren't targeted for recruitment by individual trustees. After discussion
D. Johnson proposed, and committee members agreed, on a strategy of an initial letter
from R. Mawby, followed by phone calls from staff. The committee set a December 1
deadline for this final phase of the campaign.
3.

The Challenge of Membership Management: M. J-ewis discussed the challenge of
MNF's membership management with the committee. This is a new process for MNF,
and staff would welcome any information the committee might be able to share with
them on systems for membership management and renewal. J. King recommended
staff contact Janet Wood from his staff at MASB, and D. Johnson recommended staff
contact Judy Carl from her staff at CMF. A. Rosewarne also has contacts which may
be helpful.

4.

Nominations for October 12 Election of New Board Members: The committee
reviewed nominations for openings on MNF's Board of Trustees. Currently there are
openings for four Organizational Members and five Network Members. M. I-ewis
pointed out the frequently-noted under representation of health and human services on
MNF's board, since they comprise the great majority of nonprofit organizations.
Additionally, nonprofit employment is higher in health; followed by education.
Committee members concurred and placed special emphasis on these fields in their
nominations.

�After discussion, the committee made the following nominations
Organizational Members of the Board:
Organization

MNF-"Conto: "•'-r-'-.r.

*Food Bank Council of Michigan
BH.13feinn;:rj i M.
Michigan Association of Rehabilitation Facilities .H. Yi..._ : :..i CA.
Michigan Hospital Association
(*Already an Associate Member)
Network Members of the Board:
Organization
American Cancer Society/Ml Section
^Michigan Humanities Council
""Volunteer Centers of Michigan

I). Johnson
Jfl.ILewis

(* Already a Network Member)
The committee also pointed out that only those organizationsrao i..^nu :o ioai 3.•:.'! 7
should be approached for board nomination. AcconJingly,xontc: r-:c:: "••-•u incr^:
their efforts to recruit those organizations who haveamtyeticmfc.: MH? ;eiore
nominations are made at the Annual Meeting.
Staff will prepare a write up on each nominee to distribut&amp;atJb _c_~;^ ,_' £xeeuuvc
Committee Meeting and the Annual Meeting.
7.

Adjournment: The meeting adjourned at 1:30 p.m.

�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.

[DRAFTJ
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 O. Slews, Jr.
Robert E. Ivory
Dorothy A. Johnson
Maryellen J. Lewis
Russell G. Mawby
Helen C. Philpott
George G. Romney
Herbert Yamanishi

David O. 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 9:45 p.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. Jaime Gallagher of the 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 of Network 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

�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 GGUI 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

�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
grantmakers1 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 of Metro Detroit
Local Initiatives Support Corporation
Michigan Association of Non-Public Schools
Michigan Association of Professional 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. Rosewarne

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

�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
H. Yamanishi (M. Lewis)
Michigan Association of Rehabilitation Facilities H. Yamanishi (M. Lewis)
Michigan Hospital Association
A. Rosewarne
(*Already an Associate Member)

Network Members of the Board:
Organization

MNF Contact Person

American Cancer Society/Ml 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 O. Egner as Acting Fjcecutive 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

�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 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.

11.

Review of the 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.

12.

Adjournment: The meeting adjourned at 1:00.
ref:exe20923.min,cm/exec,0100

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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)

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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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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

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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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                    <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.

• •

•

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.

.

.

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.

..

.

�a

~· .
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,

�.•

•

•

'

'

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

�}

.•
.

.. .
Page 2

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~.
.
..

.

�•

•

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.

�I

• ••

.

;,

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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~ 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

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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

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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~.

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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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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

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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.
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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.

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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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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. · •
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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

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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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                    <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

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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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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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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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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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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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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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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

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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
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

�</text>
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              <name>Description</name>
              <description>An account of the resource</description>
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                  <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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              <name>Coverage</name>
              <description>The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant</description>
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                  <text>1968-2014</text>
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              <name>Source</name>
              <description>A related resource from which the described resource is derived</description>
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                <elementText elementTextId="507099">
                  <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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              </elementTextContainer>
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              <name>Rights</name>
              <description>Information about rights held in and over the resource</description>
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                <elementText elementTextId="507100">
                  <text>&lt;a href="http://rightsstatements.org/page/InC/1.0/?language=en"&gt;In Copyright&lt;/a&gt;</text>
                </elementText>
              </elementTextContainer>
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            <element elementId="49">
              <name>Subject</name>
              <description>The topic of the resource</description>
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                  <text>Dorothy A. Johnson Center for Philanthropy</text>
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                  <text>Council of Michigan Foundations</text>
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                <elementText elementTextId="765943">
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                  <text>Michigan Community Service Commission</text>
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                  <text>Dorothy A. Johnson Center for Philanthropy</text>
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                  <text>Fundraising</text>
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                  <text>Records</text>
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                  <text>Michigan</text>
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              <name>Publisher</name>
              <description>An entity responsible for making the resource available</description>
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                  <text>Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401</text>
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              <name>Contributor</name>
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                  <text>Council of Michigan Foundations; Michigan Nonprofit Association; Michigan Community Service Commission</text>
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              <name>Identifier</name>
              <description>An unambiguous reference to the resource within a given context</description>
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                  <text>JCPA-04</text>
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              <name>Language</name>
              <description>A language of the resource</description>
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                  <text>eng</text>
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      <description>A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text.</description>
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            <name>Identifier</name>
            <description>An unambiguous reference to the resource within a given context</description>
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                <text>JCPA-04_MNA_MNF_Board-Book_1993-05-11_Agenda</text>
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            <name>Title</name>
            <description>A name given to the resource</description>
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                <text>Michigan Nonprofit Forum 1993-05-11 board book agenda</text>
              </elementText>
            </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 elementId="41">
            <name>Description</name>
            <description>An account of the resource</description>
            <elementTextContainer>
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                <text>Michigan Nonprofit Forum 1993-05-11 board book agenda. Records are compiled in the Our State of Generosity collection by the Johnson Center, along with the files of the Michigan Nonprofit Association (MNA), the Michigan Community Service Commission (MSCS) and the Dorothy A. Johnson Center for Philanthropy.</text>
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          <element elementId="49">
            <name>Subject</name>
            <description>The topic of the resource</description>
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                <text>Dorothy A. Johnson Center for Philanthropy</text>
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                <text>Charities</text>
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                <text>Philanthropy and Society</text>
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                <text>Records</text>
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                <text>Michigan Nonprofit Association</text>
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                <text>Michigan</text>
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            <name>Format</name>
            <description>The file format, physical medium, or dimensions of the resource</description>
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              <elementText elementTextId="725640">
                <text>application/pdf</text>
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            <name>Type</name>
            <description>The nature or genre of the resource</description>
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                <text>Text</text>
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          <element elementId="44">
            <name>Language</name>
            <description>A language of the resource</description>
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                <text>eng</text>
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            <name>Publisher</name>
            <description>An entity responsible for making the resource available</description>
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              <elementText elementTextId="725643">
                <text>Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49728</text>
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            </elementTextContainer>
          </element>
          <element elementId="47">
            <name>Rights</name>
            <description>Information about rights held in and over the resource</description>
            <elementTextContainer>
              <elementText elementTextId="725644">
                <text>&lt;a href="http://rightsstatements.org/page/InC/1.0/?language=en"&gt;In Copyright&lt;/a&gt;</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="48">
            <name>Source</name>
            <description>A related resource from which the described resource is derived</description>
            <elementTextContainer>
              <elementText elementTextId="725645">
                <text>&lt;a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/515"&gt;Our State of Generosity collection, JCPA-04&lt;/a&gt;</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="825678">
                <text>1993-05-11</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
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