President's message:

Nonprofits’ relationship with
government continues to evolve

HANO and PHOCUSED have updated their survey documenting the economy’s devastating impact on service delivery in the nonprofit sector, particularly at nonprofits with state government contracts. Be sure to read the article outlining the findings.

In another area that's changing, the revenue threshold for organizations that may file the Form 990-EZ has changed significantly in recent years. Many organizations that have been filing the 990-EZ may now have to use the full Form 990. Check out which form is required.

Nonprofits that need to know more about the Form 990 -- including compliance implications and the higher costs to have a long-form 990 prepared -- can attend a HANO workshop on April 29 that will address these issues. Save the date and stay tuned for more information.

After our Legislature convened, several bills jumped out that will need review and monitoring. The House Finance Committee hasn't yet scheduled a hearing for HB 799, which would suspend General Excise Tax exemptions in some categories from July 2011 through June 2015. Meanwhile, SB 850 and SB 853, referred to the Ways and Means Committee, would make fundraising revenue, now subject to GET, tax-exempt. We’ll monitor these and other bills affecting nonprofits and keep you posted – please be ready to respond if necessary.

On a positive note, Connecticut governor-elect, Dan Malloy plans to appoint a nonprofit advocate to his cabinet. We hope more governors, including our own, will see the merits of this and follow suit.

Please, enjoy this month’s newsletter.

Lisa Maruyama
President & CEO