Yesterday, in The Daily Wrag (Washington Regional Association of Grantmakers), President Tamara Copeland explored “What sequestration means for philanthropy:”

I want to focus on the hidden issues. Much of the impact connected to sequestration will be far less overt. The social worker in me says that as already stressed individuals deal with this reality, mental health-related incidents will also increase. There may be increased incidences of domestic violence, more emergency room visits and falling school performance as home environments become tense. Consider this article about the recession’s impact on our region’s mental health, written when our local economy was actually faring better than the rest of the country.

“The Recession’s ‘Silent Mental Health Epidemic,’ the October 2011 Business Insider article to which Copeland points, discusses a Rutgers University study of “the long-term unemployed,” which found that “32 percent were experiencing a good deal of stress” and “at least 11 percent reported seeking professional help for depression.” Moreover, many more did not have the insurance benefits or financial resources to seek such help, despite potentially needing it.

As Copeland suggests, while our region’s funders should of course ensure that basic needs are met, “it is critical that we keep in mind the less obvious needs [as] a failure to support those, particularly mental health care, can lead to dire consequences.” She also points out that, as much or more so than sequestration, tax reforms could have a critical and perhaps longer-term effect on the national and local nonprofit community.

What are your thoughts? What might be the more “hidden” effects of sequestration?

White House estimate spells out tough road for Washington region economy (Washington Post): “… the upcoming automatic spending cuts the Obama administration detailed Sunday would strike a tough blow, with nearly 150,000 civilian Defense Department employees facing furloughs and an estimated average loss of $7,500 in pay [...] funding for elementary and secondary education across the region would be slashed by $29 million.” Economist Anirban Basu (Sage Policy Group) points out that sequestration will have a deeper effect on this region than the nation as a whole, as DC, Maryland, and Virginia are “among the most reliant communities in the nation on federal spending.”

Nonprofit Branding 2013: What Has Changed? (Nonprofit Quarterly): “First, we needed to see information technology not as a peripheral function within our organization but central to our mission pursuits. Second, we needed to see our identity less as an extension of our mission statement, but more as a link between the public perception of the impact we create and our higher calling to strengthen communities.” Carlo Cuesta, founder of the Saint Paul-based firm Creation in Common, goes to point out that “We have access to the tools and resources needed to build meaningful relationships with our stakeholders, what we lack are the capabilities to do it in a way that advances authenticity and mobilizes the public will.” Do you agree?

Gray aims high with sustainability plan; can agencies deliver? (Greater Greater Washington): “Last week, the Gray administration unveiled its sustainability plan, which sets some very ambitious, yet very important objectives for 2032, like attracting 250,000 new residents and making 75% of trips happen by walking, biking, and transit.” GGW argues that “to achieve these goals, agencies will have to push forward not just on their existing laudable initiatives, but go beyond.” For example: “it would be better to focus more new housing near Metro stations, streetcars, and high-frequency bus corridors. To do that, though, some administration will have to modify the Comprehensive Plan and zoning to create denser areas somewhere.”

DC, advocates at odds over homeless families; 900 people still in shelter (Washington Post): “This winter, the District’s shelter for homeless families at DC General Hospital is crammed full — 372 adults and nearly 600 children [...] City officials say that hard times and the lack of affordable housing in poor neighborhoods are to blame for the continuing crisis of family homelessnes.” Last year, the number of homeless families in the District jumped by 18 percent and advocates argue that DC “is not doing nearly enough to help the neediest residents find permanent housing at a time of budget surplus.” Learn more about CFP’s homelessness and housing nonprofits right here.

Class-Divided Cities: Washington, DC Edition (The Atlantic): “More than any other metro we’ve covered, greater Washington, DC is a creative class region [...] These are high-skilled, highly-educated, and high-paying positions where workers average $90,442 in wages and salaries, fourth highest in the nation [...] Still, the class divide in the region is pronounced. The creative class is concentrated in the center of the metro, as the map shows.” A map charting the geography of class in the region shows a concentration of the creative class to the west and service to the east, yet almost no clusters of working class residents, implying that “Greater Washington is a fully post-industrial region.” Explore the interactive maps right here.

Tech’s new entrepreneurial approach to philanthropy (USA Today): “The intersection of technology and philanthropy is creating “philanthrocapitalism,” borrowing ideas from venture capitalism to fund non-profits.” For example, “NFS [Not For Sale], a model of [eBay founder Pierre] Omidyars’ brand of philanthropy, is based loosely on a venture-capital firm’s approach. And it is quickly becoming a powerful agent for social change, as eBay was for commerce.” Says Suzanne DiBianca, the co-founder and president of the Salesforce.com Foundation, “Companies are beginning to understand their power in leveraging their assets to non-profits [...] It’s not just throwing a check over a wall.”

In Maryland, forecast calls for more hires (Gazette): “About 22 percent of companies in Maryland plan to hire more employees in the first quarter this year, up from 17 percent in 2012′s first quarter, according to a recent survey by employment services company Manpower Group.” Nationwide, that number is five percentage points lower and the best prospects, reportedly, are in professional and business services. One reason? Many “employers that have been piling up profitable quarters say factors such as the fiscal cliff and a lack of qualified employees put a damper on their hiring plans last year.”

Chancellor Kaya Henderson names 15 DC schools on closure list (Washington Post): “More than one in 10 DC public schools will close as part of a plan Chancellor Kaya Henderson put forth Thursday, a retrenchment amid budget pressures, low enrollment and growing competition from public charter schools [...] Closing half-empty schools will allow her to use resources more efficiently, she said, redirecting dollars from administration and maintenance to teaching and learning.” Community feedback persuaded the Chancellor to keep open five schools originally slated for closure. You can read the detailed Consolidation and Reorganization Plan on the DCPS website.

Graduation Rate Hits Record High For High School Students: Government Report (Huffington Post): “More US high school students than ever are graduating on time, according to new information released by the research arm of the US Education Department. The percentage of students who graduated from high school within four years of starting ninth grade in the 2006-2007 school year hit a record high.” In that year, 4 million students began high school and, four years later, just over 78% have graduated — a 2% increase overall. But while more students are completing high school, “fewer than half of those in the class of 2012 were “college ready” as determined by the College Board last fall.”

3 Key Elements of Capitalist Philanthropy (Forbes): “Capitalist philanthropy begins with a profitable organization and then moves quickly to incorporate social impact [...] The term is not brand new, but is being discussed more often as the millennial generation has developed a strong desire for meaningful work.” Forbes offers three keys to incorporating “capitalist philanthropy” into an organization: “Determine your cause,” “cast the vision,” and “maintain momentum.” What are your suggestions for launching social impact projects? Thoughts on the terminology?

How Small Nonprofits Can Improve Their Fiscal Health (Chronicle of Philanthropy): “Three-quarters of American nonprofits have annual budgets under $1 million, and most are even smaller. What these organizations lack in size, however, they make up for in impact.” Many such nonprofits also “struggle with financial challenges that are unique to their size and structure [...] resources generally go directly into program delivery, [for example,] so they can’t invest in infrastructure”. The Chronicle offers five suggestions for small nonprofits to address and improve financial health, plus five ways that grantmakers can help.

UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising (CompassPoint Nonprofit Services): “A joint project of CompassPoint and the Evelyn and Walter Haas, Jr. Fund, the report found high levels of turnover and lengthy vacancies in development director positions throughout the sector [...] Beyond creating a development director position and hiring someone who is qualified for the job, organizations and their leaders need to build the capacity, the systems, and the culture to support fundraising success.” Does the report reflect your experience? What do you think might “break the cycle?”

Last week, the City Paper “mapped out” the income of Washington DC’s “neighborhood incomes by census tract.” Earlier on, the Washington Post mapped the “percentage of homes in each ZIP code that have negative equity:”

Over the past year, DC-area housing prices experienced “solid gains” (4.4%); however, progress was not even across the metropolitan area. In particular, “many of the homeowners with mortgages higher than their home’s value were clustered in the eastern parts of the District and in Prince George’s County,” where prices have been slower to rise since the housing bust.

Says Dean Baker of the Center for Economic and Policy Research, “I have no doubt that we have turned the corner [...] What we can expect is to see modest price appreciation, something in the neighborhood of 4 percent for the next several years.”

Yesterday on Greater Greater Washington, David Alpert also points out that, as the map above reveals, “the economic recovery is not hitting all areas or all people equally. We need more jobs east of the river and in Prince George’s County.”

Share your thoughts on the housing market’s recovery — and its markedly uneven pace. What would provide the greatest catalyst for growth in the areas that need it?

DC area unemployment rate is unchanged at 5.3 percent (Washington Post: Local): “The Washington area jobless rate hovered at 5.3% in November, according to a Labor Department report released Tuesday [January 7] that revealed little change in the local employment picture [...] the Washington economy has been steadily adding jobs, but not at a fast enough clip for the recovery to shift into higher gear.” Education and health services posted the largest job gains, with the latter alone adding 11,300 between November 2011 and 2012. Local leisure and hospitality continued to add jobs as well, while manufacturing and construction both subtracted. Overall, the area remains well below the national rate of 7.8%.

The Fiscal Cliff Legislation: A Primer for Nonprofits on Its Provisions (Nonprofit Quarterly): “The short message that should be taken away from the so-called “fiscal cliff” legislation passed last night [January 1] is that it is no time to relax [...] Here is our scorecard on the fiscal cliff mini-bargain.” At the NPQ website, you can read an overview of the final legislation on charitable deductions, marginal tax rates, and other taxes (such as the payroll tax); that said, “good news for nonprofits and the communities they serve is that a variety of programs that benefit working class and lower income people have been saved — for the time being.”

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This past weekend, on the City Paper’s Housing Complex blog, Aaron Wiener questioned: “A City Divided — But More Than Most?”

I spent some time this morning playing around with a nifty tool that breaks down American neighborhood incomes by census tract. It’s a great way to see how divided a city is along income lines. So is DC more income-segregated than other major American cities? Let’s take a look. Green = rich, red = poor, yellow/white = somewhere in the middle.

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by Marie LeBlanc, Community Partnerships Coordinator

While many Americans across the county rang in New Year’s Day 2013 with pomp, circumstance, and auld lang syne, the United States Congress was (for once) hard at work — barely scraping through the passage of legislation that averted the dreaded “fiscal cliff.” However, is the danger really past? Various news outlets and media sources have been reporting on the “wins and losses”of the fiscal cliff bill, trying to help citizens make sense of it — and understand the real-world implications on their wallets this month and tax bills come April. Yesterday, the Nonprofit Quarterly’s Rick Cohen offered his take on the implications for nonprofits.

According to Cohen, changes made to charitable deductions and marginal tax rates (increasing only on households with annual incomes above $450,000) “constitutes an absolutely minimal touch on charitable contributions.” Due to various tax provisions, on everything from the expiration of the payroll tax “holiday,” to changes in capital gains and dividend income tax rates, the “fiscal cliff bill not only raises less revenues than the President’s proposal, but even less than Speaker Boehner’s Plan B.” However, many programs serving working class and lower income populations have been saved for now, including unemployment benefits and various tax credits on earned income, children, and renewable energy.

The specter of the cliff itself impacted municipal and county-level spending, even before emergency legislation was passed. According to the DC Fiscal Policy Institute, “the impact of the federal budget impasse on the District was felt 10 days before the New Year’s Eve fiscal cliff deal.” Despite signs of growth in the DC economy, instability in the federal budget prevents these signs from being fully recognized and providing the foundation needed for expanding, and even maintaining, levels of social spending. Programs for domestic violence, mental health, and educational enrichment have fallen victim to the budget gridlock.

Ultimately, Cohen offers this perspective on the budget solution, and its potential future impact:

The fiscal cliff isn’t just a matter of “saving” the maximum deductibility of charitable donations or avoiding the reinstatement of the arcane and minimal Pease amendment, but recognizing how dysfunctional the nation has become and how the communities’ nonprofits serve are the primary victims. If the focus of nonprofit advocates leaving shoe leather in the halls of the Capitol is simply on maximizing the value of the charitable deduction or, perhaps more accurately, maximizing the value of the deduction for ultra-wealthy tax itemizers, then the result, reflected in the fiscal cliff legislation and future bills to be addressed in the next couple of months, will be a truly pyrrhic victory for the communities nonprofits serve.

How to Help Families Affected by Newtown School Shooting (Newtown Patch): “In the wake of the unimaginable tragedy at Sandy Hook School Friday people from all over the world — in Connecticut, California, Canada and much farther away in Australia and India — sent an outpouring of support and want to know how they can help.” Newtown Patch has compiled a list of ways to support individual families, the community, and local resources; instate residents can call 211 “for information about how individuals or businesses can support the victims and their families.” The article also invited readers to post “I want to help” in the comment section if they wished to receive updates on what they could do. Currently, over 1350 comments have appeared. The Chronicle of Philanthropy also reports that “more than $1-million has poured into a fund to help Newtown.”

New Maryland system measures school progress (Washington Post: Education): “The Howard and Frederick county school systems scored slightly higher than Montgomery County under a new Maryland accountability system that [...] takes into account each school’s benchmarks on overall student performance, student growth, closing the achievement gap and preparing students for college and careers.” This new state data, which was released this past Monday, “comes from the School Progress Index, which is permitted under new federal rules that allow states to create their own ways to measure progress in public schools.” Maryland and Virginia, along with 34 other states and the District, have received waivers from the 2002 No Child Left Behind provisions.

‘Hugely complex’ work for philanthropy in the next decade (Washington Regional Association of Grantmakers): “The rise of a wide variety of strategies for mobilizing private resources to address common societal problems is now, and will increasingly in the future, blur the lines between what we call philanthropy and commerce,” writes Susan Raymond, Executive Vice President of Changing Our World, Inc. “That makes for exciting times. It also makes for challenges. Not the least of these challenges for the formal philanthropic sector — for foundations and corporate giving — is how to partner with these new resource strategies.” What new strategy, do you think, is having the greatest impact on philanthropy today?