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Doing Good Better, a partnership of the Council of New Jersey Grantmakers and the New Jersey Center for Nonprofits, is a community of funders and nonprofits taking action against the power imbalances and racial inequities in philanthropy, nonprofits, and government.
Culture Workers often face inconsistent income and undervaluation of their work. Traditional budgeting models leave many without (or lack adequate support of) fair compensation using the belief that mission-motivation and passion for the work replaces the need for competitive salaries. The Solidarity Economy is an innovative and inclusive economic framework that prioritizes social justice, environmental sustainability, and community well-being. Join us for a compelling conversation about funding practices that use a solidarity-based approach and find out what New Jersey funders are learning about local compensation trends from the ArtsPay NJ report. Together we will explore ways to advocate and take action around worker pay equity and beyond.
Panelists:
John McEwen, Executive Director – New Jersey Theatre Alliance
Erica Nagel, Deputy Director – New Jersey Theatre Alliance
Eddie Torres, President & CEO – Grantmakers in the Arts
Moderator:
Diane Felcyn, Program Officer – New Jersey State Council on the Arts
Webinar Video
Resources
Solidarity Not Charity: Arts & Culture Grantmaking in the Solidarity Economy - Grantmakers in the Arts
Solidarity Economy Resources - Grantmakers in the Arts
Grants to Worker Cooperatives & Small Businesses — The Reader - Grantmakers in the Arts
Grantmakers’ Changes in Practice 2023 — The Reader - Grantmakers in the Arts
Support for Individual Artists’ Committee - Grantmakers in the Arts
ArtsPay NJ - New Jersey Theatre Alliance
ArtsPay NJ - Information, Reports, and Dashboard
ArtsPay NJ - Interactive Dashboard
ArtsPay NJ - Full Report
ArtsPay NJ - Summary Report
Webinars
Upcoming: Wednesday, October 23
Move the Money: Nuts & Bolts: Making Grants to Cooperatively Owned Small Businesses
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Move the Money: Grantmakers in the Arts & Art.Coop Solidarity Economy Discussion Series
Move the Money Series: Guaranteed Income
Move the Money: The Richness of Southern Soils: Supporting Black Farming and Food
Government-Nonprofit Contracting Reform
The Office of Management and Budget (OMB) Uniform Guidance is the biggest change in government grant guidelines in over 30 years. The rules require that federal grants and contracts—including those that pass through state and local governments—include a “reasonable amount” for indirect costs. A “reasonable amount”, according to the guidance, is at least 10 percent of direct costs and, in some cases, nonprofits can negotiate a higher amount.
With the nonprofit sector earning nearly 33 percent of its revenue from government grants and contracts, this new requirement is a game changer. Nina Stack wrote a piece discussing these changes for the Geraldine R. Dodge Foundation blog:
Excerpt from A Social Sector Game Changer:
“Nonprofits that are hired by the government to perform a service and paid through federal dollars are to use at least 10 percent of the direct costs of their grant or contract to pay indirect costs. BOOM! Just as John Madden would say. A mandate for funding that can be used for core operations. Never before has there been such a clear directive and recognition from the federal government.”
To see this change however, industry-wide advocacy is essential to ensure that all nonprofits are aware of this monumental shift and that governments follow the new requirement. Without advocacy, it is very possible that, despite the requirement to add an additional 10 percent or more to pay for indirect costs, legislative bodies at the federal, state and city levels may further reduce project budgets to keep them flat. And this could mean that in order to maintain the same level of services, nonprofits will seek additional resources from the philanthropic sector to make up the difference. Therefore it is imperative that philanthropy remains active in the conversation between nonprofits and government to continue to maintain a balance in the critical services provided by all.
What this means for nonprofits:
- Government contracts are now required to reimburse nonprofits for reasonable indirect costs (administrative, “overhead”) as part of their service-delivery agreement.
- The OMB Uniform Guidance is only a promise of better treatment—nonprofits should know the rules and protect themselves.
What this means for foundations:
- Advocacy is needed! To ensure government partners do not underfund nonprofits due to the new rules, foundations need to help spread awareness and enforce the regulations.
In New Jersey, the New Jersey Center for Nonprofits has been teeing up advocacy, information sessions, and other assistance to help non-profits take advantage of the new rules. For questions and information about the new guidelines, please visit the resources below.
Resources
Federal Register: OMB Uniform Guidance
