April 3, 2001

We thought you might like to know about the following bill. It is unclear whether it has a chance of passage this year, but it could be a very good thing for Minnesota’s nonprofits, including arts nonprofits. The text below comes from the Minnesota Council of Nonprofits:

Between April 2nd and 11th the House Commerce, Jobs & Economic Development Committee will hear H.F. 1086 (Reps. Gunther, Paymar, Stang, Rukavina), the NONPROFIT DEVELOPMENT FUND.

BRIEF BACKGROUND

NEED: Minnesota’s nonprofit organizations play an essential role in the state’s economy and in the quality of life that we enjoy in our communities. Expectations for nonprofit programs and services are high and they have proven their value. Now nonprofits need technical assistance to strengthen their management practices.

CURRENT RESOURCES: Funding for nonprofit capacity building and management assistance comes almost exclusively from philanthropic organizations. It is unevenly distributed throughout the state, and it is insufficient to meet the needs of community-based organizations. Grants and contracts from state and county government generally do not provide funds for organizational development. At a time when nonprofits are expected to meet an increasing range of needs and to deliver programs and services efficiently, management assistance is a necessary and wise investment.

THE NONPROFIT DEVELOPMENT FUND: The Fund will provide $2 million for small grants, $5,000 to $35,000, to nonprofit organizations for management assistance. It will be administered by six regional foundations in Greater Minnesota and two community foundations in the Twin Cities. The grants will be awarded on a competitive basis and recipients will need to report outcomes to the granting foundation.

Please contact House committee members (especially the Committee Chair) and encourage them to support this bill, which would provide small grants to nonprofits for improving governance, financial management, and technology. The Representatives on this committee are:

Committee Chair: Gregory Davids, Preston 549 SOB, 651-296-9278
Vice Chair: Doug Stang, Cold Spring 597 SOB, 651-296-4373

Tom Rukavina,Virginia 375 SOB, 651-296-0170
Thomas Bakk, Cook 345 SOB, 651-296-2190
Fran Bradley, Rochester 559 SOB, 651-296-9249
Karen Clark, Mpls 307 SOB, 651-296-0294
Matt Entenza, St. Paul 261 SOB, 651-296-8799
Ron Erhardt, Edina 591 SOB, 651-296-4363
Chris Gerlach,Apple Valley 531 SOB, 651-296-5506
Bob Gunther, Fairmont 379 SOB, 651-296-3420
Bill Haas, Champlin 569 SOB, 651-296-5513
Tom Hackbarth, Cedar 577 SOB, 651-296-2439
Jeff Johnson, Plymouth 487 SOB, 651-296-5511
Dan Larson, Bloomington 221 SOB, 651-296-7158
Rob Leighton, Austin 289 SOB, 651-296-4193
Arlon Linder, Corcoran 417 SOB, 651-296-7806
Tim Mahoney, St. Paul 377 SOB, 651-296-4277
Paul Marquart, Dilworth 311 SOB, 651-296-6829
Dan McElroy, Burnsville 437 SOB, 651-296-4212
Joe Mullery, Minneapolis 387 SOB, 651-296-4262
Joe Opatz, St. Cloud 277 SOB, 651-296-6612
Michael Paymar, St. Paul 209 SOB, 651-296-4199
Connie Ruth, Owatonna 415 SOB, 651-296-5368
Tony Sertich, Chisholm 233 SOB, 651-296-0172
Barb Sykora, Excelsior 403 SOB, 651-296-4315
Dale Walz, Brainerd 527 SOB, 651-296-4333
Andrew Westerberg, Blaine 523 SOB, 651-296-4226

Address Your Letter:
Representative…(Name)
Office #) State Office Bldg
St. Paul, MN 55155

March 13, 2001

Two Events Important to the Arts in Minnesota on March 15

2:00 p.m.: “Chamber” Music…and more! Minnesota Artists to Perform at the Capitol

Arts Performances will be held in the House Chamber at the State Capitol in St. Paul on Thursday, March 15, at 2:00, before the start of House floor session. A reception will follow in the House retiring room. The show will include a variety of disciplines, including theatre, dance, classical, folk and opera music. We hope to give legislators a taste of the varied arts available in our state. You are invited to come watch the performances.

4:00 - 7:00 p.m. Charitable Giving Tax Relief Act (S.F. 146)
Hearing in Senate Income & Sales Tax Budget Division, Room 15 State Capitol

Currently, people who do not itemize on their federal income tax forms are allowed to deduct 50% of total charitable contributions over $500 on their Minnesota income tax form. This bill would increase the deduction to 100% of total charitable contributions over $500, which would encourage charitable giving to nonprofit organizations. Please come to these hearings to show the House and Senate your support for this bill. Also, please call or write the members of this committee and ask them to support this bill:

CHAIR: Don Betzold,Fridley, G-9 State Capitol, 651-296-2556
Bob Kierlin, Winona, 127 State Office Building, 651-296-5649
Michelle Fischbach,Paynesville,G-15 State Capitol, 651-296-2084
Chuck Fowler, Fairmont, G-9 State Capitol, 651-296-5713
Tony Kinkel, Park Rapids, G-9 State Capitol, 651-296-4913
Bob Lessard, Int’l Falls, G-51 State Capitol, 651-296-4136
Warren Limmer, Maple Grve,121 State Office Bdg,651-296-2159
John Marty, Roseville, 325 State Capitol, 651-296-5645
Steve Murphy, Red Wing, 306 State Capitol, 651-296-4264
Myron Orfield, Minneapolis, 227 State Capitol, 651-296-4191
Mady Reiter, Shoreview, 132D State Office Building, 651-296-1253
Grace Schwab, Albert Lea, 151 State Office Building, 651-296-9248
David Tomassoni, Chisholm, 111 State Capitol, 651-296-8017

NOTE ALSO: Friday, March 16: 10:15 a.m. - 12:00 p.m.: Hearing in the House Tax Committee
Also on the Charitable Giving Tax Relief Act (H.F. 15), 200 State Office Building

Please call or write members of the House Tax Committee and ask them to support this bill:

CHAIR: Ron Abrams, Minnetonka, 585 State Office Building, 296-9934
Roxann Daggett, Frazee, 439 State Office Building, 296-4293
Irv Anderson, International Falls, 343 State Office Building, 296-4936
Connie Bernardy, Fridley, 329 State Office Building, 296-5510
Andy Dawkins, St. Paul, 215 State Office Building, 296-5158
Jerry Dempsey, Hastings, 575 State Office Building, 296-8635
Dan Dorman, Albert Lea, 579 State Office Building, 296-8216
Ron Erhardt, Edina, 591 State Office Building, 296-4363
Mark Gleason, Richfield, 313 State Office Building, 296-5375
Elaine Harder, Jackson, 583 State Office Building, 296-5373
Carl Jacobson, Vadnais Heights, 429 State Office Building, 296-7153
Jim Knoblach, St. Cloud, 451 State Office Building, 296-6316
Philip Krinkie, Shoreview, 365 State Office Building, 296-2907
William Kuisle, Rochester, 565 State Office Building, 296-4378
Rob Leighton, Austin, 289 State Office Building, 296-4193
Ann Lenczewski, Bloomington, 337 State Office Building, 296-4218
Dan McElroy, Burnsville, 437 State Office Building, 296-4212
Bob Milbert, South St. Paul, 243 State Office Building, 296-4192
Joe Mullery, Minneapolis, 387 State Office Building, 296-4262
Erik Paulsen, Eden Prairie, 545 State Office Building, 296-7449
Michelle Rifenberg, La Crescent, 423 State Office Building, 296-1069
Tom Rukavina, Virginia, 375 State Office Building, 296-0170
Neva Walker, Minneapolis, 213 State Office Building, 296-7152
Tim Wilkin, Eagan, 413 State Office Building, 296-3533
Ted Winter, Fulda, 247 State Office Building, 296-5505

All phone numbers are (651). All addresses are in St. Paul, MN 55155.

March 8, 2001

“Chamber” Music and more!

Arts Performances will be held in the House Chamber at the State Capitol in St. Paul on Thursday, March 15, at 2:00, before the start of House floor session. A reception will follow in the House retiring room. The show will include a variety of disciplines, including theatre, dance, classical, folk and opera music. We hope to give legislators a taste of the varied arts available in our state. You are invited to come watch the performances.

Most Nonprofit Tax Proposals Withdrawn from Governor’s Bill!

Governor Ventura has withdrawn from his budget all proposals that would have jeopardized the tax-exempt status of nonprofits. Thanks to all nonprofits who arranged meetings with legislators, called, and wrote letters! YOUR HARD WORK MADE A DIFFERENCE!

The property tax proposal is definitely gone. However, we should note that we are still studying new language proposed by the Finance Dept. concerning the non-profit ticket tax exemption intended to stop abuses of the exemption. The new language states: “To provide the requirements for an event to be sponsored by a nonprofit organization, the organization must actively participate in planning and conducting the event, it must assume the risk of loss as a result of the event and the organization must receive the entire net proceeds from the event.”

We are studying the language to make sure it would not negatively affect the non-profit arts community. We will provide further information as we obtain it.

March 2, 2001

State Arts Appropriation

The good news is that Gov. Ventura recommended stable funding for the arts, and that a hearing on the arts appropriation in Sen. Cohen’s Senate committee on Feb. 7 went very well. The bad news is that our chairman in the House, Rep. Krinkie, has recommended cutting the arts by 42%. At a hearing in Rep. Krinkie’s committee this week, constituents of committee members and others gave strong testimony in support of the arts appropriation. However, to date the bill still contains a cut. We continue to work with friends on the committee in the hopes we can change the situation. Here’s how you can help:

These legislators are members of the House and Senate committees that will decide the arts appropriation. If you live in the district of one of these legislators, please write or call them as soon as possible. Tell them: “Please support arts funding!” (If you have friends who live in these districts, please forward this alert to them.)

House of Representatives:
Rep. Bruce Anderson, District 19B: Elk River, Buffalo, Dennison, Dayton, Albertville
Contact: 411 State Office Building, St. Paul, 55155

Rep. Rob Eastlund, District 18A:
Isanti County, Lewis Lake, Brunswick, Grasston, West Rock, Day, Dalbo, Elm Park, Stanchfield, Pine Brook, Cambridge, West Point, Spencer Brook, Oxlip, Bradford, Crown, Isanti, Bodum, Blomford, Weber, Stacy
Contact: 449 State Office Building, St. Paul, 55155

Rep. Mike Jaros, District 7B: Duluth
Contact: 291 State Office Building, St. Paul, 55155

Rep. Harry Mares, District 55A: White Bear Lake
Contact: 401 State Office Building, St. Paul, 55155

Rep. Tony Kielkucki, District 20B: Lester Prairie, South Haven, West Albion, Highland, Cokato, Smith Lake, Wa-verly, Norwood/Young America, Oster, Winsted, Watertown, Sherman, Silver Lake, Plato, Hamburg
Contact: 367 State Office Building, St. Paul, 55155

Senate:
Rep. David Kleis, District 16: St. Cloud, Sauk Rapids
Contact: 143 State Office Building, St. Paul, 55155

Rep. Sam Solon, District 7: Duluth
Contact: 303 Capitol Building, St. Paul, 55155

Rep. David Knutson, District 36: Burnsville, Apple Valley
Contact: 133 State Office Building, St. Paul, 55155

Tax Proposals

The bill introduced by the Governor to re-arrange the tax structure would have a variety of negative effects on non-profits. The two pieces we object most strongly to are:

Allowing local governments to impose a new property tax on non-profits called a “fee in lieu of property tax.” If a non-profit owns a building, they’d suddenly be forced to pay a huge property tax bill.
Expanding the sales tax to include ticket sales by non-profits.
Ticket sales by non-profits have long been tax exempt. The proposal would require non-profits to start collecting, tracking, reporting and submitting sales taxes. Non-profits will either have to take resources from their programs or raise more money to pay these taxes. Do you think contributors want non-profits to funnel donations to new taxes? Or do they want non-profits to use donations to serve the public? There is a reason that “tax exempt” organizations are tax exempt. Taxing non-profits is un-Minnesotan!

Go to http://www.mtn.org/mca/alertpgs/111000.html for more details on these and other proposals and opposition arguments.

Minnesota Nonprofit Development Fund

SF 816 (Higgens, Cohen, Knutson, Dave Johnson, Solon). This bill would provide grants to nonprofit organizations for, among other things, board training, strategic planning, technology upgrades, organizational development, and legal compliance review. No hearings are scheduled to date. The House bill will be introduced by Rep. Gunther.

Minnesota Charitable Giving Relief Act Increase

HF 15 (Pawlenty, Abrams, Daggett, McElroy, Kielkucki, Abeler, Erickson, Wilkin, Dorman, Rifnberg, Milbert) SF 149 (Rest, Hottinger, Belanger, Higgens, Day). Currently, those who don’t itemize on their tax forms are allowed to deduct 50% of charitable contributions over $500. This bill would increase the deduction to 100% of charitable contributions over $500. No hearings are scheduled yet, but we expect movement on this bill because of its influential authors. Stay tuned.

February 9, 2001

Governor Ventura recommended stable funding for the arts this year. We want to make sure he knows we ap-preciate his recommendation. Could you take five minutes to send him a quick thank you note?

“Thank you for supporting stable arts funding this session. It has meant so much to our state. I hope you’ll continue to support the arts in the future.”

If you only have five minutes, just send him a thank you note saying the above. If you have a little more time to write, say something about how important the arts, and/or your organization in particular, are to your town.

Address your letter to:

Governor Jesse Ventura
130 State Capitol Building
St. Paul, MN 55155

Thank you!

ARTS ADVOCACY DAY A RESOUNDING SUCCESS

On Wednesday, February 7, despite the terrible weather, over 330 arts advocates came from around the state to St. Paul to visit with their legislators and talk about support for the arts. The good news is that the majority of legislators expressed support for the arts and opposition to taxing non-profits. The bad news is that we recently learned the chairman of the House committee is proposing to cut the arts by over 40%. If you came and participated, THANK YOU.

If you couldn’t attend, please take a moment to call or write your legislators and ask them to support the arts. If you need addresses, just give us a call.

As Rep. Ann Rest said last year, “Ten letters can influence a legislator.”
Make yourself one of the ten!

ARTS ADVOCATE T-SHIRTS AVAILABLE

Be one of the “in” crowd in a cool red or white “Arts Advocate” T-Shirt. Just $20 for a red with long sleeves or $15 for white with short sleeves (plus $3 each for shipping and handling). Order one today!

February 5, 2001

Rep. Phil Krinkie, chair of the State Government Finance Committee in the House, has introduced a bill which includes a 42% cut in the arts appropriation from approximately $13 million per year to approximately $7.6 million per year for the next two years. This represents a cut of 42% in arts funding.

Such a huge cut in the arts appropriation is uncalled for in this time of plenty. The state is experiencing yet another huge surplus. There is absolutely no justification for this proposal.

What can you do?

Call or write your legislators immediately asking them to oppose any cuts in arts funding. Arts Advocacy Day will be held on Wednesday, February 7, 2001. If you have signed up, make sure you join us at the Capitol! If you have not yet signed up, please give us a call and let us know if you are coming. Appointments with legislators are arranged ahead of time so we need to know who will be there.

Arts Advocacy DayÕs Schedule will be:

Minnesota History Center

7:45 a.m.: Registration Begins
8:00 a.m.: Seminar for First Time Advocates Begins
8:30 a.m.: Seminar for everyone begins & meet your team

9:30-10:00 a.m.: Teams move to the Capitol

State Capitol

10:00 a.m.: Great Hall in State Capitol becomes home base, appointments with legislators held
10:00 a.m. to noon: Hearing on Gov. VenturaÕs Tax Proposals, 200 State Office Building
1:00 p.m.: Most legislative appointments completed by this time
2:00-3:00 p.m.: Social Hour at OÕGaraÕs in St. Paul
4:00 p.m.: Arts Hearing, 107 State Capitol

January 29, 2001

Nonprofits to Hold Meeting in Twin Cities
Senate Committee to Hold Public Hearings Around the State
BACKGROUND: Governor Ventura’s tax proposal includes provisions that pose a serious threat to the tax-exempt status of nonprofits. These proposals will take away resources needed for programs and services.

A. New sales tax:
The Governor’s proposal says sales by nonprofits would be subject to the sales tax with the following exception: the first $25,000 of taxable sales in a calendar year by 501(c)(3), civic, fraternal, senior citizens and veterans organizations, and K-12 school student groups would be exempt from the sales tax. This is a new tax on sales and includes ticket sales to cultural events and fundraisers.

B. New property tax:
The Governor’s property tax proposal includes a local option for cities to require nonprofits to pay a tax, called a “local option public safety fee.” This tax would be based on the market value of the property owned by a nonprofit, the local tax rate, and the percentage of the city’s budget that is public safety. Only religious sanctuaries, schools and hospitals would be exempt.

1. LEARN MORE: The Minnesota Council of NonProfits is Holding a Nonprofit tax and Budget issues Briefing & Strategy Session, Tuesday, January 30, 2001, 9:00 to 11:30 a.m., at the International Institute, Hall of Nations 1694 Como Avenue, St. Paul — Parking and event are free! Department of Revenue staff will be there to answer questions about the tax proposals. Nonprofit advocates will provide overviews of budget proposals for arts, education, welfare reform, workforce development, health, childcare, and more. Bring your announcements and ideas to share as we identify impacts of the Governor’s proposals and shape strategies for responding.

2. ACT NOW AND SPEAK OUT: Participate in Senate Income and Sales Tax Budget Division Hearings: Invite your organization’s supporters to attend. Speak out about how the sales tax will redirect charitable contributions, divert resources from your programs and services, and erode your organization’s tax-exempt status.

Eagle Lake: February 1, 7 p.m., American Legion, 100 3rd St N. Call 507-257-3130 for more information or to register to testify
Anoka: February 6, 7 p.m., Anoka County Government Building, 3100 3rd Ave. Call 763-323-5705 for more information or to register to testify
Hibbing: February 7, 7 p.m., Memorial Building, 400 East 23rd St. Call 218-262-3486 for more information or to register to testify
Call and write to your own legislators and let them know that you oppose new taxes on nonprofits.

January 22, 2001

Last week in Bloomington, the Department of Tourism held its annual Governor’s Conference on Tourism. The theme for this year’s conference was: Mirror on Minnesota: Culture, Arts and Heritage Tourism. At the closing session on January 18, the Governor delivered a rousing speech about cultural and heritage tourism and said several nice things about the arts we’d like to share:

“I know that all of you have been working hard this past year, attracting travelers to your businesses and communities, and providing the quality vacation experience your visitors are looking for. I’ve been working hard for tourism this past year, as well. I’m proud to be called ‘Jesse, the Tourism Governor.’ I believe tourism is an investment we should be making…

“You’ve spent the last couple of days talking about how to build tourism around our state’s arts and heritage.

“We’ve got the amazing Guthrie Theater. It draws an audience from all 50 states and Canada. Twenty percent of the Guthrie audience is from outside of the Twin Cities area. The Minnesota Opera has a growing subscriber base from out-of-state markets like Iowa, Wisconsin and Canada. They recently have had ticket orders from as far away as Ohio and Oregon following a story in the Washington Post.

“And that’s just the arts. Our historic sitesÐplaces like Split Rock Lighthouse and the Lindbergh Home and Interpretive Center, regularly draw visitors from across the country, and even around the world. Even smaller, less known historic sites regularly see out-of-state visitors. So the potential is there. We just need to build on what we’ve got.

“What’s exciting about cultural tourism is that every community has something to offer.

“We’ve got terrific little arts communities like Grand Marais, with its playhouse, art galleries and art school, and North House Folk School; or New York Mills and the ‘Great American Think-Off.’

“ÉThe town of Luverne decided to make something out of the fact that well-known photographer Jim Brandenburg grew up there. They boldly asked him if he’d be willing to have a gallery of his work on their main street. Now they’ve got a gallery of terrific photography of prairie and north woods scenes, and it makes a great getaway, especially in combination with a visit to the prairie and buffalo herd of Blue Mounds State Park.

[On the North Shore] “The Coho Restaurant at Bluefin Bay diplays and sells the works of local artists, with all proceeds going directly to the artists. That’s a great example of cultural tourism.

“So, I challenge you to go home and think big, think bold, come up with new ideas and new ways of doing business, new ways of building tourism. We’ve worked hard for Minnesota tourism in the past two years, and together, we will tell the Minnesota storyÉ As your Tourism Governor, I’m looking forward to working with all of you to exploring new ways of sharing our great state with visitors from around the world.”