arts alert: Minnesota State Arts Board Makes $7M in Legacy Grants
MCA
Minnesota Citizens for the Arts
2233 University Ave. W. #355
St. Paul, MN 55155
651-251-0868 fax 651-917-3561
staff at mncitizensforthearts.org
www.mncitizensforthearts.org
Arts Action Cen
May 7 , 2010
1. Minnesota State Arts Board Makes $7M in Legacy Grants
2. MN Supreme Court Unallotment Decision Creates Budget Uncertainty
3. Top 10 Reasons to Choose to Make Art
4. Look Out! Many Orgs Could Lose Nonprofit Status
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1. Minnesota State Arts Board Makes $7M in Legacy Grants
This week the Minnesota State Arts Board made decisions about nearly $7M in grants from the Arts and Culture Heritage Fund. We knew there would be a huge demand for the arts via grants from the Legacy amendment, but this is amazing. They received so many applications that only 40% of requests could get a grant. Staff and Board commented that they had received many more good applications than could be funded. Clearly, this is an argument that a larger percentage of the new amendment-created Arts and Culture Heritage Fund should be going to the Minnesota State Arts Board and Regional Arts Council (RAC) system. You may recall that we had a big fight on our hands last year to make sure that the new funding from the amendment actually went to the arts via the MSAB and RACs. The State Arts Board will be posting the new grants on their website in a week or so. www.arts.state.mn.us
For information about Legacy grants from the RACs, check their websites. The Regional Arts Councils too are seeing an unprecedented demand for funding. Some estimates are that overall, 3000-4000 grants will be made in the arts statewide between the MSAB and 11 RACs. Wow.
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2. Supreme Court Unallotment Decision Creates Budget Uncertainty
“The Executive Branch exceeded its authority under the statute by… reducing allotments before the budget making process was completed.” - MN Supreme Court
This week the news that the MN Supreme Court had ruled Gov. Pawlenty’s 2009 “unallotments” illegal threw a big wrench into the legislative works. With just a week and a half before session was to end, the decision has potentially created a new $3.7 billion dollar hole in the state budget that must be fixed before the legislature and governor can end the legislative session.
What does this mean for the arts?
At first glance, the decision itself does not directly concern the arts, as the arts were not included by the Governor in his unallotment move. However, with such a giant hole created in the state budget, it is uncertain how the Governor and Legislature will balance the budget. The economic development budget that includes the arts was dealt with (we received a 3% cut) several months ago, and so the remaining issues on the table had been health and human services, education, and aid to local governments. The legislature now must decide wether the Governor’s original cuts will be kept, or if they will want to propose changes in how the budget will be balanced. Sit tight for now, as there are no direct threats to us. We will let you know if that changes.
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3. Top 10 Reasons to Choose to Make Art
The Minneapolis College of Art and Design recently held an inauguration ceremony to welcome its new President, Jay Coogan. I was present at a speech he made to high school students at the Perpich Center this week, and asked if I could share the following with you. Here are his “Top 10 Reasons to Choose to Make Art:” Thanks, Jay!
#10 You will learn how to see, really see.
#9 You will open vistas for yourself into worlds, ideas and experiences you might never have been exposed to.
#8 You will have a means to express inner thoughts and feelings that words cannot do justice to.
#7 You will encourage greater understanding or expose misunderstandings where they exist.
#6 You will transcend race, creed, gender, and other boundaries limited by the spoken word or society’s limitations.
#5 You will help individuals, including yourself, gain a better understanding about their place in society and help society to evolve.
#4 You will ask people to consider that there is an amazing world out there and present them a vision of what that world might be.
#3 You will jolt people who are going through their lives asleep by saying: Wake up. Look at this. This is art, it is about your life.
#2 You will connect to all of humanity throughout the ages through this powerful means of presenting truths about humankind.
#1 You will have personal satisfaction and feel good about your contribution to your own time and place.
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4. Look Out! Many Orgs Could Lose Nonprofit Status
Approximately 4,400 small nonprofits in Minnesota will lose their 501(c)(3) tax exempt status and be ineligible to receive tax deductible contributions unless they go online and file form 990-N. A 2006 law requires that small organizations with financial activity under $25,000 that operate on the calendar year file by May 15, 2010 (or since that is a Saturday this year, May 17) or have their tax exemption revoked. Previously, such organizations were not required to submit an annual return with the IRS. As of May 1, more than 7,500 nonprofit organizations had not filed the required form, 4,474 of which are 501(c)(3) nonprofits.
Organizations can see if they need to comply by visiting the Urban Institute’s searchable database of organizations that are required to file but have not as of May 1, 2010. Filing is simple: the chief person from the organization can return the form online through an approved IRS 990N e-file provider at http://epostcard.form990.org/ If the organization has been terminated the IRS should be notified through this form, in part so that a more accurate portrait of how many nonprofits currently operate in the state can emerge.
The cost will be significant for those that fail to meet the deadline. If the exemption is revoked, organizations will need to reapply and pay the standard fee of up to $750. Assuming at least half of the 4,474 organizations that have not filed are still operating and had to reapply, it could cost $3.3 million collectively merely to have their tax exempt status reinstated—not to mention the time and trouble of applications and attorney’s fees.
“The Minnesota Council of Nonprofits is contacting as many organizations as possible on this list,” said Jon Pratt, the organization’s executive director, “And we also recommend that people involved in small nonprofits double check the list from the link at MCN’s website. It would be an expensive distraction for small volunteer groups to have to come up with $750 to reinstate the tax status they thought they already had.”
Expected to be most heavily hit by the deadline are all-volunteer organizations that have address changes in recent years but did not update their information with the IRS. Small organizations like Parent Teacher Associations or recreational clubs often have an operating address at the home of the board chair or treasurer, and unless the address was updated with the IRS after a change of leadership the IRS notification letter of the deadline may have never reached the necessary individuals.
Small nonprofit organizations should take time now to make sure they are in compliance with the new requirements. Those who participate in or know of small nonprofits with receipts under $25,000 in their community are encouraged to notify the organization’s chief individual of the coming deadline so that they can avoid a costly error. For more info, check out the MN Council of Nonprofit’s website at: http://www.mncn.org/index.htm.
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ABOUT: MCA is a nonpartisan statewide arts advocacy organization whose mission is to ensure opportunity for all people to have access to and involvement in the arts. MCA organizes the arts community and lobbies the Minnesota State Legislature and Congress on issues pertaining to the nonprofit arts. If you are interested in learning more about how to advocate for the arts, or how to activate people in your arts organization or community to lobby for the arts, please call us at 651-251-0868 or e-mail staff at mncitizensforthearts.org. State arts funding supports access to the arts for all Minnesotans. The state-funded Minnesota State Arts Board and eleven Regional Arts Councils provide grants and services in every Minnesota county for artists, arts organizations, arts projects and school artist residencies. For more information on regional or state grants, go to www.arts.state.mn.us.