University of Penn Not Happy with PILOTs Resolution
Seeking to resolve the city’s school funding crisis, the Philadelphia City Council has approved a non-binding resolution that allows its mayor to request payments in lieu of taxes (PILOTs) from larger nonprofit organizations. Approved by a 15-1 vote, the resolution seeks payments from mega-nonprofits such as universities and major healthcare institutions. Although the resolution was introduced by a University of Pennsylvania (“Penn”) alumnus, the Daily Pennsylvanian reports that the campaign for PILOTs had singled out the school. Additionally, a Philadelphia-based economic justice coalition that supports PILOTs specifically targets Penn on its website. For more on the PILOTs resolution , visit the Nonprofit. Read More.
FASB Discusses Financial Statements of Not-for-Profit Entities Project
At its meeting on Wednesday, February 25th, the Financial Accounting Standards Board (“FASB”) discussed numerous matters associated with its proposed Accounting Standards Update (ASU) for the financial statements of nonprofits. Decisions made at the meeting included: The tentative definitions for operations in activities and cash flows statements will stay in place, but the FASB will seek additional feedback from the upcoming Exposure Draft regarding whether and how it could possibly further line up the definitions. Unrelated business income taxes or excise taxes made against investment return will not be required to be disclosed. Also, the standard setter eliminated the disclosure. Read More.
Gates Foundation Planning “Strategy Reboot”
Moving on to the next phase of its college completion agenda, the Bill & Melinda Gates Foundation will now shift attention to four major areas of higher education. Outlined in a document dubbed as a “strategy reboot”, the Foundation plans to focus its efforts on data and information, finance and financial aid, college readiness, and innovation and scale. For instance, as mentioned in the document, the Foundation hopes to establish a national data infrastructure that provides consistency in reporting top performance metrics that encompasses every student at all institutions. The new data reporting framework is expected to be released later. Read More.
Obama Administration Announces Student Bill of Rights
Announced on Tuesday, the Obama administration is preparing an overhaul of the customer service experience for those with student loans through the federal government. Referred by White House officials as the “Student Aid Bill of Rights”, the plan orders the Department of Education (“the Education Department”) to establish an online feedback system for students and borrowers to track the status of filed complaints. Additionally, the Education Department must create a single website that gives borrowers access to their account and payment information. In response to the announcement, James Kvaal of the White House’s Domestic Policy Council stated that the plan. Read More.
What Causes Donor Defection?
After researching U.S. and U.K. nonprofits over a three-year period, Roger Craver shares his findings in the new eBook, Retention Fundraising: The New Art and Science of Keeping Your Donors for Life. Discovering why donors stop supporting organizations, he references a Bloomerang infographic that outlines the top eight reasons donors end their support: Donating was no longer affordable; Other organizations were more deserving of support; Poor service or communication; Death of donors; Some organizations never thanked donors for donating; Some donors have no memory of supporting an organization; No information available on how donations were used; and Some thought the. Read More.
Letter Discussing Perkins Loan Program’s Future
With the Perkins Loan program set to expire on September 30, 2015, the U.S. Department of Education has released a “Dear Colleague Letter” notifying higher institutions of its potential demise if Congress does not act soon. In the event Congress decides not extend to the program, the letter offers schools guidance on how they could continue issuing loans to certain students. For instance, if a new borrower’s first loan disbursement for 2015-16 is made before September 30th, any remaining payouts would be permissible on or after October 1, 2015. Additional information regarding the letter is available on the National Association of College and University Business. Read More.