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Info You Can Use: It Is Possible To Be Too Thankful To Volunteers

May 11, 2015

by:

Joe Patti

As your performance season ends, like me you may be looking to thank all the volunteers whose hard work made your projects possible over the past year. You might feel a little guilty about all the effort they put forth on your behalf and want to spend a little more money than you planned in showing your appreciation.

However, according to a post by the For Purpose Law Group, there is such a thing as being too appreciative and you can create more problems for your volunteers than you intended.

For example, technically giving a volunteer a $25 gift card is taxable and you as the organization are supposed to withhold taxes.

Stipends or cash gifts of any amount (even allowable “nominal” stipends to bona fide volunteers) are generally taxable income. The volunteer recipient must report the amounts on his or her tax return and pay applicable taxes AND the organization must withhold taxes and make FICA payments – just as it does for employees.

Yeah, I did not know that either.

The other wrinkle is if you pay volunteer a stipend. A volunteer can’t be paid a stipend in return for their services, but you can use it to help offset expenses they might incur. This is something community theater groups often do with their cast and crew. Even in this case, there are some strict guidelines which apply.

Pay particular attention to the last paragraph.

“Although a volunteer can receive no compensation, a volunteer can be paid expenses, reasonable benefits or a nominal fee (or any combination) to perform … services.”

“…(A) fee is not nominal if it is a substitute for compensation or tied to productivity.” And “… determining whether the expenses, benefits or fees would preclude an individual from qualifying as a volunteer under the FLSA requires examining the total amount of payments in the context of the economic realities of a particular situation.”

The agency “presumes that fees paid to volunteers are nominal as long as the fee does not exceed twenty percent of what an employer would otherwise pay to hire a full-time employee for the same services.”

But – and this is a big “but” – if the “volunteer” receives anything of value exceeding $500 a year, that person must be treated as paid staff or as an independent contractor and relinquishes important liability protection under the federal Volunteer Protection Act (as well as becoming potentially liable, in the case of independent contractor classification, for a whole slew of self-employment taxes).

I point out that last paragraph because it is easy to hit that $500 threshold. Paying someone $100 for six weeks of rehearsal and a performance as gesture of acknowledgment and to help defray gas doesn’t come close to really paying them what they are worth. But it is so very easy for a really dedicated person to hit $500 over the course of a year. (And remember, there is supposed to be a reporting of income and withholding on each of those $100 payments.)

It appears that the prohibition against tying the stipend to productivity means you can’t provide a larger stipend to crew heads than to the crew or give everyone who did 250 volunteer hours a $25 gift certificate and everyone who did fewer hours a $15 gift certificate.

“A test to help evaluate whether a payment to a volunteer is a compensation substitute is “whether the amount of the fee varies as the particular individual spends more or less time engaged in the volunteer activities.”

In their suggestions at the end of the post, authors May Harris and Linda Rosenthal, say the best solution may be a bouquet of flowers rather than a gift card. I think other modest gestures like appreciation meals probably qualify as well, assuming you aren’t serving caviar.

Info You Can Use, Legal Topics, Volunteers

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Earning The Right To Sell

May 6, 2015

by:

Joe Patti

We often hear that our social media posts shouldn’t be heavy on self promotion, but rather seek to engage people with information that might be useful or interesting to them. But I think it is hard to conceptualize what that really looks like. What should you be offering? What is a good ratio?

Since every business is different, it is impossible to provide a solid answer. What type of informational posts you make should be a reflection of your organizational personality. The ratio of information to self-promotion that people will tolerate is also characteristic to each organization.

However, in a video posted on Entrepreneur, Guy Kawasaki provides 4 rules about the content of your posts.

“good stuff” comes in four forms:

Information. What happened?
Analysis. What does it mean?
Assistance. How can I do that?
Entertainment. Posts that amuse and surprise.

The video has examples, but you can probably think of dozens more from recognizing award nominations to sharing how-to tips for art projects.

What was most interesting was his philosophy about self-promotional posts. He used the example of NPR which provides news, information, analysis and entertainment for about 49-50 weeks out of the year and then does fund drives for the other 2-3 weeks out of the year.

By providing content people find valuable for most of the year, in Kawasaki’s estimation, NPR earns the right to sell itself for two or three weeks out of the year.

Now, the one flaw I see in his logic is that NPR’s core product and mission 50 weeks out of the year is news and information. Every so often they ask you to pay for it. Following these guidelines, a museum would be providing news and information which is off-mission, in addition to their own core product. This practice can obscure the museum’s identity a little whereas NPR’s is always on display every moment and only gets slightly diminished during fund drives.

But the general idea that you have to earn the right to ask for money is sound. The earned right to ask extends beyond just offering diverse content on social media. The transaction of time and money happens in a small moment, but the right to ask for that exchange is earned across every other moment through customer service, the delivery of a quality product, the social enjoyment and dozens of other factors, including social media and other online content.

Advocacy, Arts in an Age of Technology, Marketing/PR

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Arts and Survival

May 5, 2015

by:

Joe Patti

This article on CNN about the role music is playing in the aftermath of the earthquake in Nepal caught my eye. There were similar stories and videos after the 2010 Haitian earthquake of people creating a bond of community through singing and music.

The singing isn’t getting anyone fed, clothed or sheltered, neglecting the very bottom tiers of Maslow’s hierarchy of need. But it does help with the next step up by providing a sense of love and belonging.

Though no one wants to see disasters like this happen, the fact that people’s basic instinct is to turn to music and dance to create community illustrates that the arts are not a frivolous luxury. They are an essential part of our identity.

Being able to participate with a group provides you membership in a culture. It doesn’t even necessarily have to be your birth culture. Insisting people speak English and be able to sing the “Star Spangled Banner” using the correct signifiers may seem overbearingly chauvinistic, but it also identifies what songs provide you entree to a community.

The other thing it illustrates is that not only does everyone have the ability to participate and practice an artistic discipline, it is important that they be able to do so. To a degree it is a basic survival tool mentally, spiritually and perhaps even physically if the sense of community it generates gains you food and shelter.

In a less dire circumstance, we had Garrison Keillor do his solo show about a month ago. He had the audience singing at the beginning and end of his performance. While I have read some criticism of his singing voice, it was sufficient to get everyone started. As the show was drawing to an end, I wondered if someone would be able to do the same thing in 20-30 years. With the ability to choose between disparate channels of information, there may be fewer common cultural touchstones in the next few decades.

Potentially it may be good for international relations if people thousands of miles apart can find 10 points of common ground. It may be less beneficial to local relations if neighbors can only find 10 points of common ground.

Art(ist) Education, General Musings, Government Relations, State of the Arts, Terms and Ideas

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How Long Before Elementary Schools Need To Turn A Profit?

May 4, 2015

by:

Joe Patti

Non-Profit Quarterly recently posted a story by Beth Gazley examining how private donations are increasingly being used to subsidize public services as government funding is cut.

One finding arts organizations should perhaps be sensitive to relates to school funding. According to the article, support of schools often exacerbates existing inequities in school funding where wealthier areas tend to provide more private funding to schools that are well supported by public funding.

My own research, with my colleague Ashlyn Aiko Nelson, suggests that DonorsChoose.org is something of an anomaly. Most of the philanthropy directed at public schools is local, meaning that wealthy school districts enjoy a philanthropic advantage and few people are paying attention to fairness and balance. And, indeed, we found clear evidence that across the nation private philanthropy for public schools exacerbates rather than eliminates budgetary inequities across school districts. Specifically, although most school funding still comes from taxpayers, we found that wealthy school districts are able to provide more dollars per pupil overall through this philanthropic “bonus.”8 Simply put, DonorsChoose.org’s successful efforts at raising $80 million in 2014 do not come close to balancing the inequitable impact of the other $880 million raised in 2010 by local PTOs, school foundations, and booster clubs.

Arts organizations are already well aware that arts entities serving wealthier communities tend to receive larger donations than those serving poorer communities. If they are really dedicated to bringing the arts to under served schools, they may have to make an effort to reach further beyond their immediate geographic vicinity.

Speaking from experience, I can attest that this can be difficult because schools that perform poorly are often under more pressure than normal to focus on testing and worry about anything that might distract from that goal.

I could find some pleasure in schools outsourcing arts education to non-profits, but unfortunately that doesn’t generally happen.

The other issue is the question about whether arts organizations are giving a community what they need or what the arts organization thinks they need.

Questions about whether you may be exhibiting this bias plagues every introspective arts organization. This can especially be the case when an organization serving a wealthy clientele reaches out to a far less affluent demographic.

An observation made in the NPQ article that “the narrow focus on school fundraising saps community energy and possibly distracts parents from other forms of political engagement—such as advocating for more public spending overall on public schools in order to end the reliance on fundraising altogether,” resonated with me.

First, because arts organizations have long faced the challenge of shrinking public funding and it is disturbing to me that a core public service like education may end up similarly regarded as something that a private community support should be responsible for.

Second, because that can result in an increasingly insular view by individuals about how education should be funded, shifting it from being beneficial to the commons to have an educated population to being a benefit only to those who can afford it. You can’t entirely blame people if, after putting a lot of effort into raising money for their own school to close a funding gap, they feel that other PTOs ought to do the same for their schools.

People often say arts organizations need to be self supporting and only present shows that can make the profit. I fear that the same sentiments may end up being applied to education.

Art(ist) Education

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