Useful Links

Welcome to Useful Links, NCNCF’s direct line to things you need to know but don’t have time to research. Each Tuesday we will post two or three links to specific articles, data, or tools. For your convenience, links will be archived in categories such as Boards of Directors, fundraising, and technology.

Gender in the Nonprofit Sector

Many of us know that women have a huge presence in nonprofit organizations. They are seen in large quantities as staff and volunteers but do women hold leadership positions in nonprofit organizations?

According to an annual study from the White House Project, 73 percent of the workers in the nonprofit sector are women but men hold the majority of top leadership positions and receive higher salaries.

Let’s look at why women are drawn to the nonprofit sector. Nonprofits help people—your community, your peers or your family. Most people get a sense of intrinsic utility from this kind of profession. Nonprofit organizations are not as intimidating as their for-profit counterparts.

There is a more pleasant work environment and people may enjoy going to work more. The nonprofit sector also allows for greater flexibility of work hours and more part-time availability. It appeals to women’s feelings and emotions while allowing them more time to fit into their schedules.

So why wouldn’t nonprofits appeal to men as well? Most men do not even glance at the nonprofit sector because they do not think it is for them. There is a preconceived notion that a career in the nonprofit sector is not profitable. Many are the main breadwinners in their households and seek a high paying job in order to provide for their family.

But they are misguided in this assumption. In fact, CEOs of large nonprofit organizations can make a substantial amount of money. Men want to hold a position of power and dominance and think they can only do this by being a part of a large for-profit corporation.

Women want to work in the nonprofit sector and are successful in doing so. They are willing to put in the hard work and make sacrifices to support a cause. Why are these women, who have the passion and drive to work for nonprofits, not receiving the same pay as their male counterparts?

They may have the same skills and qualifications as males but female CEOs only earn about 66 percent of male salaries. This is only the case for 45 percent of chief executive within the sector, according to the report. Women are more likely to become CEOs of smaller nonprofits than larger ones.

The nonprofit sector needs to change and diversify itself. More women need to be represented in the top leadership positions of nonprofit organizations and more men need to get involved. Women need to be recognized for their talents and hard work in order to obtain these top leadership positions.

The world is changing and women continue to play an active role in nonprofit organizations. For men to enter the nonprofit sector they need to have passion and commitment for it. They need to be willing to make sacrifices, including possibly a slight decrease in pay. The nonprofit sector also needs to reduce the salary gap.

Women need to become better negotiators, take credit for their success and demand a better salary. The nonprofit sector continues to grow and with the combined efforts of men and women, it can be stronger than ever.

Should Nonprofits Care about Obamacare? What the PPACA Means For Your Nonprofit

Most residents of the United States have heard of the Patient Protection and Affordable Care Act (PPACA), popularly known as ‘Obamacare.’ This legislation mandates that all U.S. citizens be covered by health insurance, including the 46 million Americans who currently lack coverage. To the delight of some and the dismay of others, the Supreme Court upheld this act as constitutional on Thursday, June 28. With all the recent talk about the PPACA, it is important to know: What does this mean for nonprofits?

1. Health Insurance for Employees

The PPACA will mandate whether or not businesses must provide health insurance relative to their number of employees. Depending on the size of your organization, your nonprofit business will be required to provide:

No. of Employees Requirements for Health Insurance
<25 Business not required to provide health insurance. BUT If business offers health insurance and employees earn less than $50,000 on average, a business gets tax credit to defray 25% of the cost of the insurance for nonprofits (35% for for-profits). In 2014, this will rise to 35% for nonprofits and 50% for for-profits.
<50 Business not required to provide health insurance to employees. All individuals who don’t receive insurance from their employer or Medicare/Medicaid must buy their own.
50-199 Provide employees with health insurance OR Pay a $2,000 fine per employee uninsured by the business(Past federal law only required businesses with 200 or more employees to provide coverage)
200 + Business federally required to provide health insurance to all employees.


2. The Supreme Court’s Ruling and Your Tax-Exempt Status

The Supreme Court’s recent decision to uphold the health care law was lauded by foundations and charities that hope the law will help the nation’s vulnerable citizens. However, an article in the Chronicle of Philanthropy by columnist Leslie Lenkowski, a professor of public affairs and philanthropic studies at Indiana University, suggests that the Court’s reasoning for justifying the law should cause some nonprofits to be wary.

The Obama administration attempted to argue that the PPACA can rightfully require individuals to buy health insurance on the basis of the constitutional authority to regulate commerce. Chief Justice Roberts, however, ruled that the requirement to buy health insurance is justified under Congress’s right to impose taxes.

This ruling asserts the government’s rightful authority to regulate taxes, not just for health insurance, but for many areas – including for nonprofits. Most nonprofits rely heavily on their tax-exempt status or tax breaks to incentivize donors to contribute.

In the past, lawmakers have placed very few restrictions on charities and nonprofits and what causes they support. Recently, though, some lawmakers have argued that tax deductibility should be exclusively available for contributions that directly benefit the poor and minorities. Although these ideas have not yet gained much momentum, Lenkowski suggests that budget deficits might push more people to consider the idea. And the recent Court ruling will make it much harder for nonprofits to appeal any new limits lawmakers place on their tax exemptions or tax breaks.

What constitutes a “direct” benefit to the poor and minorities? Many organizations provide aid and assistance in diverse ways, which may not be seen as directly benefitting the poor, but undoubtedly benefit society. What might this mean for them?

There is no doubt that this law is controversial, not to mention complicated. (Even CNN and Fox News embarrassingly reported misinformation about the Court ruling.) Hopefully this quick glimpse has provided insight into one aspect of the law: what the PPACA means for nonprofits.