State budget impact
Illinois’ proposed budget hurts nonprofits

Governor Rod Blagojevich released in February his proposed $43.56 billion budget for fiscal year 2006, which begins July 1. How do nonprofit organizations, which provide much needed services with state funding, fare in the budget? “It’s a dire situation,” said Sue Augustus, Illinois state director of Corporation for Supportive Housing.

While few programs face deep cuts or elimination of their funds, all nonprofit service providers will feel the effect of the estimated $1.1 billion budget deficit. After several years of deficits and decreases in state funding, nonprofits continue to struggle to maintain programs while more people are asking for those services.

“Every service program is feeling the squeeze,” said Phyllis Russell, executive director of Work, Welfare and Families. “Programs in most areas are experiencing either selective, limited cuts, or are not receiving cost increases.”

The budget news isn’t all negative. Early childhood education remains a priority and the eligibility level for FamilyCare, a health insurance program for low-income families, is increased. The proposed budget also keeps Medicaid eligibility and provider rates steady.

While the Governor recommended level funding for some services, such as prenatal care programs, cost increases will make it difficult for nonprofits to provide the same level of service. State agencies such as the Illinois Arts Council and the Environmental Protection Agency could see their budgets cut by millions of dollars. Cuts to prevention programs, such as Teen Reach’s after-school activities for at-risk youth, were also proposed.

The outlook for federal funding of nonprofit services is equally bleak. “The federal government has been cutting back its funding and looking to the state, but the state doesn’t have the resources (to make up the difference),” Augustus said.

The Illinois General Assembly plans to negotiate and vote on the budget this month. To have a voice in the budget debate, nonprofits can educate their state legislators about how a particular budget line will affect their organization, the people they serve and the greater community. Nonprofits can bolster their case by providing key facts about the budget’s impact and enlisting the support of board members and volunteers.

Another way to educate lawmakers is to have the people benefiting from services tell their stories to legislators. “We teach people in supportive housing how to advocate,” Augustus said. “When they meet with lawmakers about how the budget cuts will affect them, they have a better impact than I often can.”

The work doesn’t end once the legislature votes on the proposed budget. In August and September, state agencies begin to look at their budgets for the following year, said John Bouman, deputy director for advocacy at the Sargent Shriver National Center on Poverty Law. That is when nonprofits should work with the agencies to make sure their budget items are included.

However, Russell cautioned against relying too heavily on influencing the year-to-year budget debate. “When all of the providers are saying ‘We’re not getting what we need,’ it just pits one organization against another,” she said. Nonprofits should educate donors, volunteers and other constituents about the realities of the state budget crisis, so they can hold legislators accountable for finding new revenue streams to support vital public services.

“The way we fund public services today, there will always be a deficit,” said Ralph Martire, executive director of the Center for Tax and Budget Accountability. By not taxing the sale of services and overtaxing low- and middle-income families, Illinois keeps its budget in the red, Martire added. He advocates modernizing the tax structure in Illinois to ensure revenue growth. “A modest shift in the tax burden will raise enough money to pay for and sustain public services over time.”

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31st Annual Luncheon

Preserving the Public Trust
The Donors Forum of Chicago’s 31st Annual Luncheon will be held Thursday, June 23, at the Hilton Chicago. The luncheon, featuring Independent Sector president and CEO Diana Aviv, will explore how philanthropic and nonprofit leaders in Illinois and nationally are working to maintain the public trust.

Open to current Members, Associate Members and Forum Partners only. If you are not currently a Member or Forum Partner, join today to receive an invitation!

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New Forum Partners

The Donors Forum welcomes our new Forum Partners:

AGAPE Network Association of Latino Men for Action Community Enhancement Foundation of South Barrington Faith Community Homes First Cumberland Presbyterian Church in America First Defense Legal Aid Harris Theater for Music and Dance

Helping Hand Rehabilitation Center Home Owner Property Tax Service Joshua and Mary Foundation Northern Illinois Center of Nonprofit Excellence at Rockford College Organization of Islamic Speakers Midwest, Inc. Partnership for Quality Child Care, NFP Turning Point BHCC

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People

Association of Fundraising Professionals
The Association of Fundraising Professionals Chicago Chapter will honor a number of individuals in the philanthropic and nonprofit sector at its May 6 Awards Luncheon. Awards include: Distinguished Philanthropists, Lois and Harrison Steans Family, Steans Family Foundation; Professional Grantor, M. Catherine Ryan, Bank of America; Outstanding Community Leader, Henry Tews, Serenity House; Outstanding Volunteer, Robert Reusché, The Chicago Community Trust; Benjamin Franklin Award, Jamie Phillippe, Museum of Science and Industry; and President’s Award, Cynthia L. Schmidt, Association House of Chicago.

West Suburban Philanthropic Network
On May 25, the West Suburban Philanthropic Network will honor a number of individuals and foundations at its third annual awards luncheon. Members and Forum Partners among the honorees are: Corporate Philanthropic Award, Nicor Gas; Foundation Philanthropic Award, McCormick Tribune Foundation; Professional Grantmaker of the Year, Bonnie Heydorn, director of grants, DuPage Community Foundation; and WSPN Award, Ken Bartels, vice president for college advancement, Elmhurst College.

Chicago Foundation for Women
Lynne Johnson joined the Chicago Foundation for Women as a program officer. Johnson, who previously worked at YWCA of Metropolitan Chicago, will review grant proposals, work on advocacy initiatives and convene grantees. The foundation also welcomed Neline Sahagun as communications assistant. Formerly Sahagun served as a media relations and communications intern at the American Bar Association.

MacArthur Foundation
Dr. Gary S. Samore joins the John D. and Catherine T. MacArthur Foundation in July as vice president of the program on global security and sustainability. John Hurley, who served as acting vice president of the program for the past two years, will become secretary of the foundation. Samore will be responsible for international grantmaking in the areas of peace and security, human rights, international justice, the environment and population. Samore has served as the director of studies and senior fellow for non-proliferation at the International Institute for Strategic Studies in London since 2001.

Ford Foundation
Marta L. Tellado joined the Ford Foundation as vice president for communications. Prior to joining the foundation, Tellado served as vice president for communications at the Partnership for Public Service in Washington, D.C.

Council on Foundations
Robin S. Tryloff was re-elected to the board of directors of the Council on Foundations in April. Tryloff serves as chair of the Donors Forum of Chicago’s board of directors.

Staff and Board Changes at Local Nonprofits
The Chicago Anti-Hunger Federation appointed Dan Gibbons as executive director, effective July 1. Gibbons replaces founder and executive director Beverly D. Decker... Friends of the Chicago River elected new officers of its board of directors: Craig Coit, president; Cy H. Griffith, Bryan Whitehead and Daniel Drew, vice presidents; and Lois Morrison, secretary... Juvenile Protective Association’s board of directors welcomes Meredith Manni Meserow as its newest member... Peter Coffey joins Lipman Hearne as senior vice president of public affairs... Children’s Memorial Foundation appointed four new members to the board of directors: James Gray, Jerome J. Claeys III, Nina Eidell and Melvin Gray... Chicago Abused Women Coalition welcomes new board members Kathleen Anderson, David Askew, Kevin Krakora and Ronald Sipiora.

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Grants & Awards

The Chicago Community Trust
Effective May 1, The Chicago Community Trust will accept letters of inquiry (LOIs) three times a year, instead of on a rolling basis. Upcoming deadlines are July 15, 2005; November 11, 2005; and March 17, 2006. These deadlines apply only to the general program LOIs in all five program areas. Management and organizational development LOIs will continue to be accepted anytime, after consultation with a program officer, and Trust initiatives and affiliates will remain on their current cycles. The Chicago Community Trust also named Robyn Gabel, executive director of the Illinois Maternal & Child Health Coalition, and Bill Siegel, vice president of Great Books Foundation, as the 2005 winners of the Fellowship for Community Leaders program. The program allows leaders from the nonprofit and public sector to take time from their day-to-day work to develop leadership skills to better serve their field. For additional information, visit www.cct.org.

JCCC Foundation
The Japanese Chamber of Commerce and Industry of Chicago Foundation is accepting proposals for the 2005 Student Development and Achievement Grants. The JCCC Foundation awards approximately $100,000 each year through these education-focused grants, and organizations may receive up to $5,000. Projects need not be Japan-related. The deadline for proposals is Friday, July 8. To receive an RFP or for more information, please contact Leeanne Oue, public relations coordinator, at (312) 245-8344 or loue@jccc-chi.org. RFPs can also be downloaded at www.jccc-chi.org/foundation.

Business Ethics
Three Donors Forum Members were included in Business Ethics magazine’s annual list of the 100 Best Corporate Citizens. Tellabs, Inc., Baxter International, and Northern Trust Corp. were recognized in the spring 2005 issue.

Heartland Alliance for Human Needs & Human Rights
Designs for Dignity of Heartland Alliance is accepting requests for proposals from Chicago nonprofit organizations to help create interior spaces that reflect dignity, hope, and comfort among nonprofit staff and the people they serve. Designs for Dignity awards service grants (non-monetary) to eligible nonprofits in the fields of housing, health care, human services and human rights protections. Types of service grants may include interior design consultation, organization and spatial environment planning, or furnishings and finishes assistance. Application deadline is May 20. For more information, visit www.heartlandalliance.org/designsfordignity or e-mail jsobecki@heartlandalliance.org.

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Employment

McCormick Tribune Foundation
McCormick Tribune Foundation seeks an education program officer, who will be responsible for maintaining knowledge of early childhood education issues and evaluating grant requests. Requirements: graduate degree preferred, and two years experience in program development or management, grantmaking or grantseeking. Visit www.rrmtf.org for a complete job description. Applications are due May 13. To apply, send a letter of application and resume to McCormick Tribune Foundation, Kathleen Praznowksi, Acting Director, Education Program, 435 North Michigan Avenue, Suite 790, Chicago, Illinois 60611.

United Way of Metropolitan Chicago
United Way of Metropolitan Chicago, which works to improve lives by mobilizing people to invest in the community where their resources are needed most, has many employment opportunities for qualified candidates. Visit www.uw-mc.org and click on Jobs for current openings and application information.

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Public Policy Update

In April, both the Senate Finance Committee and the House Ways and Means Committee held hearings to examine laws governing tax-exempt organizations and possible changes to deductions for non-cash gifts.

According to Ways and Means Committee Chairman Bill Thomas, R-Calif., the House hearing was held to help legislators understanding the “fundamentals” of laws governing tax-exempt organizations as they consider new regulations. Thomas stated his intention to hold further hearings on tax-exempt issues. The next likely step will be a hearing in the Ways and Means Oversight Subcommittee along with additional hearings in the Senate Finance Committee.

The Panel on the Nonprofit Sector, convened by Independent Sector, is scheduled to submit its Final Report to the Senate Finance Committee in June. The report is expected to contain a broad range of recommendations from the nonprofit sector on oversight and governance issues.

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Upcoming Events

Grantmaking Members can log into the Members Only pages for a list of upcoming programs.

Nonprofit workshops at the Donors Forum can help your organization reach its full potential. See the complete workshop listings and register! Forum Partners receive a 20 percent discount on all workshops.

Donors Forum of Chicago seeks to create a community of shared inquiry characterized by mutual respect and trust. We ask all participants to support the learning environment by refraining from soliciting funds or business at DFC meetings.

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e-Forumnotes is the electronic version of Forumnotes, the monthly Donors Forum of Chicago newsletter. e-Forumnotes is sent to Members, Associate Members and Forum Partners of the Donors Forum.

We encourage Members, Associate Members and Forum Partners to contribute information and short news items to Forumnotes about new program initiatives, recent publications by their organization, personnel changes and other items they wish to communicate to their colleagues. Please submit news items to info@donorsforum.org. The deadline for the June issue is Monday, May 16.

If you would like to subscribe to e-Forumnotes, log into the Members and Partners Only section to find subscription information.