• ‘What is your overhead?’ is probably the wrong first question for any donor to ask. They should instead be focused on: What is your impact?
• If donors are conflating overhead with money that supports staff salaries, then we have some more myth-busting to do. 

​
​Staff salaries are not inherently “overhead” in the way that many donors think when they ask this question. Staff who engage in programmatic work (e.g. the forklift driver at the Foodbank Warehouse) are expenses that are necessarily wrapped up in delivering that program. When donors say, ‘I only want to fund the macaroni boxes’, they are hamstringing a nonprofit’s ability to fully carry out the program which requires buying the food, storing the food, shipping the food, and distributing the food in an organized way to a family in need. 

People are at the heart of what makes that program go and people cost money. We like to say: “People are the programs.”

Nonprofits have an answer to this question. They are the ones doing the work and showing us the best of what Idaho can be: providing a hand up, providing a hot meal, welcoming the stranger, engaging in dialogue, seeking to unite and not divide. 

Nonprofits are the ones getting it done and showing us what our values are grounded in, giving us an answer to the question: Who do we want to be?

​3 - MLK: I had the chance to attend a national convening in Memphis with the National Conference of Nonprofits this month. It was my first time visiting the site of MLK’s assassination. It was surreal to stand in front of the balcony where he was killed and I felt inspired that nonprofits are a part of carrying on his legacy with the work we do to create civic dialogue, mutual understanding, and love for our neighbor. 

4 - Nonprofits preserving history: As I walked around the MLK site in Memphis, it surprised me to learn that the site was almost demolished and lost to history. But thanks to a group of nonprofits, the site was saved in 1982 from foreclosure and became America’s first civil rights museum. Nonprofits get it done!

Why this matters: The Medicaid Expansion Reform Bill will impact healthcare access around Idaho, impacting healthcare for nonprofit organizations and the populations they serve.

House Bill 345, signed by Governor Little, introduces sweeping changes to Idaho’s Medicaid program, including a shift to third-party managed care organizations (MCOs) for program administration. The bill mandates that work requirements be added for Medicaid expansion participants as well as the introduction of premiums and co-pays.
This bill marks a significant shift in how Medicaid is managed in Idaho, with potential impacts on accessibility and coverage for vulnerable populations that nonprofits in Idaho serve.

Child Care Deregulation Bill (House Bill 243a)

Now on its way to the Governor’s desk, this bill loosens state-set minimum child-to-staff ratios. Many childcare advocates remain concerned about potential risks to children’s safety, as Idaho already has some of the loosest child-to-staff ratios in the nation. 

Homeless & Homeless Shelter Regulation Bill (Senate Bill 1166)

According to the Idaho nonprofit Interfaith Sanctuary, Senate Bill 1166, will not be heard again. The bill aims to impose significant restrictions on homeless shelters in cities with populations over 100,000 and new shelters would be prohibited from operating within 300 feet of residential properties. ​

While existing shelters can continue to operate, they would be unable to expand if updates violate the new distance rule. This bill could severely limit the options for nonprofits trying to address the growing homelessness crisis.

Idaho State Budget Legislation Updates

S1108, S1160, S1165: Includes a number of line items of nonprofit funding interest.

S1109: Includes crime victims funding that flows to domestic violence shelters.

S1110, S1178: Includes funding that flows to nonprofits providing senior citizen services; Includes commission on the arts funding that flows to nonprofit arts organizations, including the STEM Action Center which provides grants to nonprofit education groups, workforce development council funding which support programs that strengthen the nonprofit workforce, and additional ARPA funding for area agencies on aging programs run by nonprofits.

Looking for another one? Let us know if there are budget items you are following that we can help track for you.

​Because of insurance and safety concerns, this bill could jeopardize well-loved community events if the option to limit firearms is taken away.​

• Updated Chart on Executive Orders: A detailed chart highlighting key Executive Orders impacting nonprofits.
• FAQ on Executive Actions: Updated answers to frequently asked questions regarding federal actions and their effects on nonprofits.
• Nonprofit Checklist: A guide on what to do if your federal grant or contract is canceled.
• New Webform: A webform for nonprofits to report the effects of executive actions on their work

They are also hosting an informational webinar to explain the current legal landscape and to highlight how philanthropic leaders are acting with urgency in supporting nonprofits during this difficult period. They will end with actionable steps nonprofits and all who support the charitable sector can take. Register for the March 17 webinar.

After wide backlash against the Medicaid ‘Trigger Repeal’ bill, a new version (H328) removes the most dangerous trigger language of the bill. However, the new version still deeply impacts Medicaid Expansion coverage for Idahoans. Congressional leadership gets their way. Nonprofit Executive Director Jeremy Maxand talks about the importance of Medicaid for Idaho communities in his article at the Idaho Capital Sun. Share your views on how this bill could affect healthcare access in Idaho here. 

​The Animal Adoption Bill (H0263) is a positive step toward improving the welfare of animals in Idaho, making it easier for families to adopt and care for pets. This bill would streamline the adoption process and increase support for animal shelters by making the adoption process tax exempt for new pet owners. It moved out of committee yesterday and will go to the house floor for a vote. Learn more about the bill here.

​Childcare Licensing Regulation Bill (H243)

A new bill, HB 243, has advanced to the House floor, which would eliminate city regulation of daycare centers and allow providers to set their own childcare ratios. Currently, some cities enforce stricter requirements, like caregiver-to-child ratios, to ensure safety. The bill aims at reducing local regulations and allowing more flexibility for daycare operators, however, opponents argue this deregulation jeopardizes child safety, shifting the responsibility to the State without adequate resources. Read the full bill here.

Voice your opinion on HB 243 using the action tool provided by Idaho Voices for Children here.

State Budget Updates

State budget bills are currently moving through the chambers of the Idaho Legislature. These decisions will directly impact funding for essential services, including those that support nonprofits and their programs, including the Child Care Funding Bill (S1108). This bill focuses on funding for child care services in Idaho, allocating additional resources to support the state’s growing demand for affordable child care and addressing the ongoing crisis faced by families and providers. Read more here.

Stay engaged on these issues and more as Legislation progresses on our Legislative Bill Tracker.

​5 -  How about the arts? Is there a viable, profitable business plan that would compel private businesses to build and operate an art museum that brings world class exhibits? Normally, there is not. Similarly, while government has a vested interest in making the quality of life in their community as vibrant as possible, it is usually not in a local government’s best interests (b/c of revenue sources, other priorities) to own and operate a museum themselves. As in the case above, nonprofits step in to fill this role.

​​​6 – In both of these examples, government has a vested interest in ensuring that these two services are a part of their community: Keeping people housed keeps a community functioning at a high level and allows people to work and contribute back to their community and tax base. Ensuring a vibrant arts and museum culture in their community creates a sense of place that draws in and keeps residents and maintains a healthy tax base to, in turn, provide for other essential services (sewer, water, roads, etc). 
​
7 - The arts also have a profound economic impact on our local economies, drawing in hundreds of thousands of visitors that rent hotel rooms, go out for dinner, and contribute to other sectors of the economy. A 2021 study by the National Endowment for the Arts states that there is a $2.2 billion value add to Idaho’s economy because of the arts. 

This means less money for restaurateurs and hoteliers, and less money in the city coffers from the parking meter to patch the potholes in front of your child’s school. It’s all connected.
​
10 – Even if only half of government grants evaporate over the next few years, philanthropy on its own cannot make up the difference. Philanthropy should, indeed, do everything it can to fill as much of the gap as possible! But the result of a potential large-scale loss of government investment that nonprofits are facing is that our communities—and neighbors in those communities—will be worse off. 

11 – Hope and action. The good news is that we are not powerless. There is power in community, power in networks, power in advocacy. Nonprofits in Idaho are the fourth largest private sector employer (see: INC’s State of the Sector report).

If you are reading this, you are likely a part of the largest statewide network of nonprofits in Idaho via the Idaho Nonprofit Center. With over 800 members, let’s imagine that each of you have 1,000 or more followers/donors/subscribers in your organization’s orbit. That’s 800,000 community-minded Idahoans who care about their communities and can raise their voice to ask: What does our community need in order to thrive? Are we holding our decision makers accountable to the vision we have for our community?

12 – Results. Already we see the impact of networks. INC is a proud member (and, full disclosure, I serve on the board) of the National Council of Nonprofits (NCN). Last week, we saw the power of collective action as NCN was successful in getting a preliminary injunction on the federal funding freeze which will (for the time being) keep funding flowing into our Idaho communities for all the things that make our communities great places to live. 

This could look like:

• consolidating into centralized facilities—further impacting the lack of access to care experienced in rural areas of Idaho
• cost increases to consumers—disproportionately affecting low-middle income Idahoans
• decrease in available grants and program support for other nonprofits

​The federal funding freeze announcement and the conversations that followed caused panic. Below are the very real impacts the recent EOs have had in Idaho.

The Idaho Statesman: “Operators of Head Start programs for preschoolers wondered briefly if they would have to close their doors. Idaho’s largest school district said services for special education and low-income students might be affected. A state university placed a pause on spending for federally supported research.”

​The CDA Press: “The decision to lay off employees comes in the wake of a sudden and temporary freeze on federal grant funds that Baker said left Heritage Health unable to access money for several days. Federal grant funds make up about 10% of the nonprofit’s budget, Baker said, and the lack of them had an immediate effect.”

Last week, President Trump passed dozens of Executive Orders (EOs) during his first week in office, covering a broad range of issues, as well as rescinding several EOs from the previous administration. These EOs impact nonprofits directly or indirectly in areas including diversity, equity, and inclusion programs; government grants and contracts; civic engagement; immigration; and certain nonprofit subsectors. Some of these EOs won’t take effect immediately and many are expected to be challenged in court.

We at the Idaho Nonprofit Center understand that there is a lot of confusion and frustration surrounding the direction that the Executive Government is taking and the impact it will have on many of the programs and populations that nonprofit organizations serve here in Idaho.

Here is a breakdown of these areas of impact for nonprofits and how they could be impacted:

• Diversity, Equity, and Inclusion: Federal government DEI programs and trainings, often provided by or in partnership with nonprofits, will be eliminated. In addition, President Trump has signed EOs extending “anti-DEI” efforts to the private sector. In these efforts, the Attorney General will investigate and enforce “anti-DEI” within the private sector.
  
  
• Federal Government: Nonprofits partnering with federal governmental agencies or receiving federal funding, especially through government grants and contracts, may experience longer wait times and slower processing, loss of points of contacts, or difficulty reaching them, and increased strain on relationships.
  
  Nonprofits should advocate for and talk to government partners about government grants and contracting reform and provide specific examples of how processes and reporting requirements could be streamlined. Additionally, nonprofits will no longer have direct White House connections through the Office of Faith-Based and Neighborhood Partnerships.
  
  
• Immigration: Nonprofits working with immigrant populations, providing legal assistance or training, or delivering humanitarian or other direct aid, may see the need for services increase, may lose funding, and could be targeted by law enforcement. Human services and social services could also be targeted.
  
  
• LGBTQ+: Charitable nonprofits serving LGBTQ+ communities, and providing gender-affirming care and other services may experience loss of federal funding, increase in demand for services, and have strained relationships with government partners.
  
  
• Environment: Nonprofits receiving or expecting funding from Elective Pay (sometimes known as “Direct Pay”), Inflation Reduction Act, or other Infrastructure Investment and Jobs Act programs may have the programs and funds terminated.
  
  
• Census and Community Engagement: Lays the groundwork for legislation and other actions to exclude noncitizens from future Censuses.
  ​
• Other: Nonprofits working on specific issues and from various subsectors seen as providing information contrary to the Administration may be targeted.
  
  Arts and culture nonprofits, museums, and libraries will no longer be “integrated into strategies, policies, and programs that advance the economic development, well-being, and resilience of all communities”, among other things, by the Trump Administration. Additionally, nonprofits that provide foreign assistance may also be targeted.

For a full breakdown of the executive orders and their impact toward nonprofits, find a full breakdown provided by our partners at the Council of Nonprofits here.
LINK: Chart of Executive Orders

Last night, the new administration told federal agencies via memo they must temporarily pause all financial assistance for “activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal."

This pause—set to start today, Jan. 28 at 3 pm MT—is intended to allow the administration to review agency programs and ensure alignment with the President's priorities.

The memo—and the Q&A follow up—specifies that Social Security, Medicare, SNAP and “payments to individuals” will not be affected, but appears to leave many other federal payments in jeopardy. It will most likely disrupt funding for essential services provided by Idaho nonprofits including healthcare, education, housing assistance, and environmental programs.

A coalition of organizations filed a Motion for Temporary Restraining Order to challenge the pause. Plaintiffs, represented in the legal challenge by Democracy Forward, include the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE.

We understand that even a short pause in funding could be devastating to the people and communities you serve. We will update you as we learn more and are committed to protecting Idaho organizations and the vital services you provide.

To help get a better sense of the real-world effects this has on nonprofit missions and the people you serve, please fill out the brief form from our partners at National Council of Nonprofits

As the 2025 Idaho Legislative session gets started, we will be sure to share key updates to keep you informed. The last two weeks were quiet as committees began to meet but things will ramp up soon. Here’s what to watch out for:

• Medicaid Expansion: Potential efforts to repeal or limit expansion could impact nonprofits serving Idaho communities and the healthcare outcomes of many people.
• ​State Budget: The Joint Finance and Appropriations Committee (JFAC) is reviewing State budgets and additional funding requests, including those affecting nonprofit grants and contracts.

Read more about what to expect this 2025 Legislative Session.

This year, the Idaho Nonprofit Center is focused on strengthening nonprofits to better serve our communities, including:

1. Promoting & Protecting State and Federal Funding for Nonprofits
2. Protecting Nonprofit Tax Exemptions
3. ​Promoting Tax Incentives for Charitable Giving
4. ​Promoting Transparency, Accountability, and Trust
5. Promoting Accessible & Affordable High-Quality Child Care
6. Promoting Workforce Development, Building our Capacity

Learn more about how we’re advocating for a stronger nonprofit sector in our full 2025 Policy Agenda.

• In Cabin, we follow a similar journey about a dream to build a place of one’s own, without the skill or know-how. In both of these books, I found the theme of ‘pushing beyond one’s limits’ resonating with me and it was a reminder that most of the time, most of us are just ‘making it up as we go’ and that failure is something to be embraced if we are pushing our limits.

4 – Book I’m most excited to finish in early 2025: Meditations for Mortals: Four Weeks to Embrace Your Limitations and Make Time for What Counts. In this book, Oliver Burkeman makes the case to flip the script on some of modern life’s more annoying features like the constant deluge of email and administrative tasks.

His advice? “[You have to] fully face the reality that you will not, in fact, get it all done…[and] actively avoid quick fixes and the clear-the-decks perspectives.” He says we also have to be able to tolerate that discomfort—and to relax into the discomfort. How to do that? His solution is one that I think is essential to every nonprofit leader: “develop a taste for problems…[because problems] are what life is fundamentally about.”

7 – (Second to) Last but not least: As part of our merger with the Idaho Community Foundation, we were able to launch a unique Youth in Philanthropy Program in partnership with Serve Idaho. The program will provide the opportunity for 6 rural high schools in Idaho to make real-life grants to nonprofits in their community.

​INC will be deploying a curriculum to help educate the participating students on the nonprofit sector, evaluating community needs, and best practices in grantmaking and philanthropy. Cheers to the next generation of Idaho philanthropists!
​
8 – (Finally) last but not least: If you missed our Nonprofit Advocacy 101 webinar last week, you can find the recording here. In this 60 minute session, I cover: Why advocacy should be a part of your organization’s strategy to advance your mission and provide a menu of advocacy options that your organization can consider utilizing.

The overall theme of his remarks was around Keeping Promises and touched on a wide variety of topics. Opportunities for alignment with the nonprofit sector:

• Childcare access: $15M in federal funding over three years (critical for workforce retention, including the nonprofit workforce).
• Workforce housing: $15M to boost affordable housing supply
• Healthcare in rural areas: Incentives to address physician shortages.
• Foster care reform: $9.6M for prevention and transformation of foster care systems, a key priority for new Department of Health and Welfare leader Alex Adams
• Idaho LAUNCH program: Ongoing investment in workforce development, career pathways, and higher education pathways.

​We urgently need more information in two key areas to help protect nonprofits from potential negative budget impacts:

1. Nonprofit revenue sources: Specifically, funding received through State of Idaho grants and contracts for the services or programs you deliver to the community.
2. Facility leasing with municipalities: This includes any leases nonprofits have with cities or other local government entities for their facilities.

​
Thank you for completing the survey and helping us advocate for you!

2 – Recently our 2024 cohort of Essentials of Development participating organizations wrapped up their capstone work in the program by presenting their case statements. During the final class, we asked them to reflect on what they learned and gained from the experience:

• “I learned we are much more capable of raising the funds we need than I thought we were.” – Idaho Wishgranters
• “I learned we are more prepared to raise the next level of funding support than I thought we were going into the program.” – City of Good
• “I learned we are ready to step up our game using a more ‘donor-centric approach’ and we have taken great strides to building a culture of philanthropy across the entire organization.” -Wassmuth Center
• “We have vastly improved on defining what our story is and how we’ll tell it effectively in our fundraising efforts.” – Sagebrush Steppe Land Trust

Congrats to the 2024 participants in this cohort and we look forward to the 2025 cohort, to be announced soon! 

3 – The Idaho legislative session is coming up and one area of growth in our sector at-large is the development of advocacy skills for nonprofits. It’s important to remember that charitable nonprofits (i.e., 501(c)(3) orgs) can lobby up to a certain amount of expenditures under IRS guidelines. However, most advocacy is not lobbying. If lobbying is not feasible (due to board policies, etc), there is still plenty of ways to advocate.

• Learn more at our upcoming Advocacy 101 training on Jan 8, 2025. Link to register is here.

​4 – Sector research is advocacy as well. We have some regular research reports we put out here at INC like our State of the Sector report and we’re excited to pair that with some upcoming reports at the Idaho Community Foundation such as the Transfer of Wealth study in 2025.

10 – I wanted to provide a shoutout to the INC nonprofit members who recently helped us on our legislative visits.

• United Way of SE Idaho addressed access to affordable childcare when we met with Senator Guthrie (SE Idaho)
• NeighborWorks Boise shared about current and future affordable housing project when we sat down with Senator Bernt (Meridian)
• Metro Meals on Wheels helped us illustrate the importance of budget appropriations that nonprofits receive through state and federal dollars to deliver essential community services when we talked with Rep. Petzke (Meridian) 

​
Idaho really does run on nonprofits.

...There is no merger without trust and in particular this trust must, in my opinion, start with the two executives bringing the organizations together. From the beginning, Steve Burns (ICF’s CEO) and I had a high level of trust and a tremendous working relationship.  
​
2 – North star behind the merger: strengthen nonprofits and strengthen philanthropy. For me personally, I also wanted to ​do something that was through the dual lens of

1. What is the thing that will be best for nonprofits long term?
2. What will be best for my current staff on day one, but also future staff in those roles in year five after the merger?

Sometimes the answers to these questions required some ‘give and get’. For example, change can be difficult and painful for some staff at first; however, that pain is not necessarily long-term and ultimately will satisfy both lenses mentioned above.

3 – Know your non-negotiables – hold tight to those but be willing to flex on the things that can be compromised on. Some of these non-negotiables should certainly be tied to #2 above – your north star/why you are doing this. 

4 – There is no ‘one right way’ to do a merger but here’s how we did it: 

5 – The process started about 18 months ago when Steve and I sat down for our monthly coffee/lunch at Roosevelt market in Boise. We broached the topic of what it would look like for us to sharpen our prior long-standing partnership and considered a spectrum of options from just stronger collaboration all the way to what it might look like to fully merge. 

7 – We then established a joint committee with board members and senior level staffers from each side. This group met monthly (sometimes more) to iron out details for governance, staff structure, and finance. In addition, the full boards discussed independently to provide ongoing feedback. The work of the joint committee became the foundation of the merger agreement many months later. 

8 – One-on-one conversations were also had along the way. I personal connected with board members to check in, seek feedback, and discover any pain points or holdups that they may had. This was a key part of the process and at each meeting I asked two questions that shaped the planning process:

1. What were they most excited about with the potential merger?
2. What about the merger gave them pause or were they worried about?

9 –  We then collected feedback from our largest funders and supporter. This included corporate partners, foundations, and a handful of nonprofit leaders around the state. The merger was still very much confidential at this point, but we felt it was vital to ‘test’ our assumptions in the real world and see if there was feedback we hadn’t considered. Thankfully, there was immense optimism and a clear ‘green light’ to proceed.  

10 – The joint committee made a ‘recommendation’ vote to formally bring the merger question to both organizations' boards and the vetting work was officially closed.

11 –  The Letter of Intent (LOI) was an extremely detailed merger agreement that clarified the joint purpose, outlined the proposed governance structure, and included future bylaw changes. The INC’s core non-negotiables were also listed in the LOI:

• continuation of all INC programs, services, membership program and advocacy work 
• retention of all INC staff
• opportunity for all INC board members to join the full merged board
• establishing a permanent board committee to continue strategically advising nonprofit capacity work and
• securing board seats to be filled with nonprofit staff

​​12 – After both boards voted and passed the LOI, we had a due diligence period to handle the final legal hurdles. During this time, the INC took the lead on having legal counsel draft an officially binding legal document called the ‘Plan of Merger’ and to file this with the Idaho Attorney General’s Office per the Idaho Charitable Assets Protection Act.

• Essentially, the AG’s office has legal authority to protect charitable assets and ensure that any plan to merge or dissolve a charitable nonprofit complies with that act.

Once we received affirmative notice from the AG’s office, we were clear to move toward a ‘closing date.’ 

14 – Special thanks are in order: 

• I want to especially thank INC’s board chair Tim Adams, whose wisdom and thought leadership helped guide our INC board through this process.
• Shoutout to our INC staff! They have been courageous and patient throughout this entire process. Change isn’t easy and with change comes uncertainty which is a tough place for staff to live from on a day-to-day basis. I made a commitment to our staff to provide a weekly update at our all-staff meeting on the latest news and to reenforce that we would come to an outcome that met the north star (see #2 above) we were aiming at. Some weeks there was no real news, while other weeks there was lots to update on.
  
• Another key to all this was Evin Bask on our team. For those that know Evin, she’s a superstar and was instrumental in providing feedback, support, and guidance at multiple levels of the organization and with counterparts at ICF. 
  
• Lastly, a special thanks to Steve Burns at ICF who was a great and gracious thought partner throughout this process. What started out as a sketch-of-a-plan on the back of a napkin at Roosevelt Market will have impact on the future of Idaho’s philanthropic and nonprofit communities for decades to come.
  

  
15 - The most common questions I have been asked post-announcement are below with answers

1. Where will your offices be? As for our offices, long-term we will find a joint location, but that will take some time. We will continue to office out of both respective locations until we find a suitable joint office so for the foreseeable future you can still find us at our current office in Boise. Likewise, you can still reach us at our same emails so feel free to reach out any time at kbailey@idahononprofits.org or at info@idahononprofits.org for general nonprofit ‘helpline’ questions. 
   
2. Are you (Kevin) leaving? I will still be leading the work of the Idaho Nonprofit Center in this next chapter. I’m thrilled to continue the work that I am lucky to have started over three years ago when I took over as CEO of INC. I will also have a ICF functions in my portfolio that I’m excited to grow into and integrate with INC’s work.  

​
For other questions about the merger, be sure to see our FAQ page or check out Steve’s recent newsletter recapping some of the recent merger highlights! Cheers to the next chapter of strengthening nonprofits and a strong culture of philanthropy in Idaho. ​

​Now that the election is in the rearview mirror, we wanted to provide a few resources that help our sector plan for the future—both locally and nationally. During times of change, so much feels out of our control; it can be helpful to shift our focus back to what is directly in front of us and is within our control:

1. Focus on our missions to influence change while remaining nonpartisan.
2. Use advocacy and civic engagement to complete programs and achieve goals.
3. Focus on the wellbeing of staff. Show gratitude for their tireless work.
4. When we work together, nonprofits can be a collective force for community support.

1 – The key to solving our state’s biggest challenges will require collective action:

No single entity, whether a nonprofit, government agency, or for profit business, can alone solve a challenging issue like homelessness. However, when nonprofits, government, the business sector, and other stakeholders align around common strategies, goals, and funding mechanisms, real progress can be made. The future will require more of what we might call ‘collective impact.’ And there are already some great local examples to look to

• The United Way of Treasure Valley is leading the Idaho Community Schools Coalition around the state, bringing the community school strategy to dozens of communities across the state to help children and families access the resources they need to succeed.
• The Idaho Community Foundation, in partnership with the City of Boise have set up the Supportive Housing Investment Fund to help keep individuals and families out of homelessness in the Treasure Valley.

2 – Building new ways to lead in the nonprofit sector will be required:

One trend we are likely to see is an increase in the need for mergers or for tightly bound strategic partnerships like a fiscal agency or shared services structure. In many cases, organizations with similar missions can achieve far more together than they ever could alone. By combining resources, expertise, and networks, these organizations can amplify their impact and create new opportunities to meet the full demand for services and create new opportunities for growth, innovation, and the scale to meet the full demand on their services.
 
3 – The health and sustainability of the nonprofit sector 20 years from now will depend largely on building a bridge to engage today’s youth in philanthropy and our missions.
 
4 – We must continue to work hard to build a greater culture of philanthropy in Idaho:
 
With so many new folks moving to Idaho, we must find ways to connect and engage them in providing time, talent, and treasure to our sector. What nonprofits need more than anything else in order to meet the full demand on their services is access to more philanthropic giving from a variety of sources.

Some other tidbits from the field:

9 – Our State of the Nonprofit Sector report will be fully coming out later this month. This report includes the economic impact of nonprofits in Idaho as well as the top capacity needs of nonprofits.

10 – The top capacity needs for nonprofits in Idaho (data is collected directly from nonprofit leaders in Idaho) are 1) More financial resources to meet the full demand for services; and 2) Training and development of their staff.

11 – The report also shows that nonprofits are the fourth largest employment industry in Idaho, employing over 79,000 Idahoans. Additionally, Idaho’s nonprofits make up over 6% of Idaho’s economy. To put that in perspective, if all of Idaho’s nonprofits were to go out of business overnight, our state would be plunged into a recession/depression on par with some of the largest recessions in history.  
​​
12 – As the election nears, nonprofits play a key role in promoting participation in democracy. Charitable nonprofits (501(c)(3)s) must remain nonpartisan (i.e., cannot endorse candidates). However, nonprofits can help their stakeholders register to vote, participate in candidate forums, and educate the public on important policy issues related to their mission (e.g. the importance of affordable housing). To this end, we are excited to release the 2024 Nonprofit Voter Engagement Guide.

2 – “Obsess over quality” - Admittedly, I was a bit skeptical about this one. We preach on our team that ‘good is usually good enough.’ When projects get backlogged, it’s usually because our perfectionist tendencies creep in and gum things up. But Newport doesn’t have in mind here a bias toward perfectionism. Instead, what he is talking about is similar to point #1 above: Doing fewer things but at a higher level of quality (i.e., giving a project our undivided attention for a three hour block) will create greater returns in our work and perhaps even allow us to be more productive in the long run (because we are reducing task switching and are less distracted).

3 – “Forgive yourself” - I am probably my greatest critic. I can feel like a day was a failure if I didn’t get through everything I wanted. Newport says, “the key to meaningful work is in the decision to keep returning to the efforts you find important. Not in getting everything right every time.” Amen.

4 – While in Sandpoint on vacation last month, we walked into the Cedar Street Bridge Public Market. Inside, the marketplace unfolds over an enclosed bridge that juts out over Sand Creek and is full of market stalls and vendors selling clothes, chocolates, toys, and more. On the far side of the bridge is a nonprofit called Creations. The nonprofit has a maker and STEM space for young kids with DIY or self-guided projects.

​Our kids played and did projects for almost an hour during this unexpected side trip, giving us tired parents a much needed break to sit. This pit stop reminded me that nonprofits truly do fill every niche and need in our communities – especially in the tourist economy! Just think of the thousands of kids every year who get a little dose of unexpected STEM play while their travel-weary parents put their feet up.  

6 – I have been fascinated with the Independent Sector’s research on public trust in nonprofits. In fact, two years ago, we modeled their research and did a poll on Idaho specifically in our 2022 State of the Sector report. The Idaho data mirrored largely what was in the national data; nonprofits are among the most trusted institutions in our country.

The latest Independent Sector trust in nonprofits research is out and it shows that nonprofits are more trusted than every other sector, including business, media, and government. The report says, “without the public’s trust, everything we do to advance our collective missions becomes harder, if not impossible.” This is why I believe trust is the single most important currency we have in the nonprofit sector.  

7 – Speaking of trust, I recently sat down with Idaho Statesman editor Scott McIntosh to provide some insights for a story on how nonprofits can best guard against financial misdeeds. 

8 – Over the past year or so, I have been lucky enough to have a great leadership coach that I meet with monthly. Recently, she was challenging me to think about my core values and why I want to continue to do the work that I do. What immediately came to mind was the concept of ‘leaving things better than I found them.’ What I realized I was actually talking about was the value of ‘stewardship.’ The idea that something is entrusted to us as leaders and our jobs are to water, care for, pick the weeds, and help cultivate the bounty of what our organization produces. But these results are not ours to keep for ourselves. We as leaders don’t own what is produced; eventually we must pass these fruits on and this stewardship becomes a part of our legacy.  

9 – Last but not least, I’m excited for our upcoming statewide conference on August 27 and 28. Registration is still open and we look forward to the learning and networking opportunities that are so vital for our sector. Our team at INC hopes to see you there! 

Key strategy: nonprofit advocacy at its most basic level is simply educating the public about your cause. Research has shown that nonprofits engaging in effective advocacy advance their missions more effectively and are more successful at fundraising. How can you get started?

• Take the organizational self-assessment
  
• Take a look at some advocacy pathways

Lobbying is allowed: 501(c)(3) nonprofits can lobby but cannot endorse/oppose a candidate or a political party. The IRS states that to be considered lobbying, actions must include these three criteria:

1. communicate directly with a decision maker (e.g. elected official)
   
2. communicate about active or potential legislation
   
3. urge lawmaker to vote for or against a piece of legislation

If your board has a policy against lobbying, you can still take steps one and two and you would not be lobbying.

Voter engagement: nonprofits have a strong track record of helping register citizens to vote and encouraging their communities and stakeholders to get to the polls. Because nonprofits are trusted pillars within their region and amongst their clients this is a great way to increase voter turnout.

• Elected officials are more likely to respond to the needs and concerns of neighborhoods that turn out on Election Day, and they are more responsive to organizations that promote voting.

Educating communities: nonprofits are key educators for their communities on issues of high importance.

• A great example is the United Way ALICE report.
  
• Some nonprofits host candidate forums or guides for educational purposes. Any event of publication must remain strictly nonpartisan.

Supporting staff: many nonprofits offer paid time off for employees to vote.

The National Council of Nonprofits and Nonprofit Vote have put a fantastic resource together that provides guidance on the rules of nonpartisanship, how to engage and educate candidates on your mission/cause, and how to engage potential voters.

​We will have an Idaho specific guide for you in the coming months so stay tuned!  

2 – As we wrapped up our Idaho Leads opening retreat last month –with nonprofit executives from organizations all over the state– I was reflecting on the question of "what are the most important characteristics and common denominators that make up good nonprofit leadership?" I kept coming back to consistency. There is very little correlation between how charismatic a leader is and how well their organization performs. To me, how consistently a leader shows up is what matters – can your team and stakeholders trust you day-to-day to show up in the same ways, to follow a common vision, and to do what you’ve promised to do? 

3 – Recently I was on a fundraising panel with fellow nonprofit leader Lori Fascilla of Giraffe Laugh. We were asked about donor visits with higher level contributors. Lori gave great advice about what content to share during these visits by framing her response with the following three items: 

• Wins: here are the three things we are most proud of right now
• Challenges: here are the three biggest barriers we are facing right now
• Call to action: asking the donor to help you address the challenges and keep the wins coming

4 – In early July, I am heading on a week-long vacation with my family and I'am bringing along Cal Newport’s latest book, Slow Productivity: The Lost Art of Accomplishment Without Burnout. Burnout, as most nonprofit leaders know, is a huge retention problem in our sector. The basic principles of Newport’s thesis are:

• Do fewer things
• Work at a natural pace
• Obsess over quality

I am anxious to see if these principles are something the sector can achieve or if they are at odds with the pace of nonprofit work and funding/funder demands, etc.  

5 – The latest Giving USA report for 2023 was just released which is the annual benchmark for charitable giving statistics nationally. The news isn’t great. Giving by individuals dropped 2.4 percent. Our sector is going to need to figure out a way to address this issue or the financial consequences are going to be difficult to manage and will lead to organizations consolidating, closing, or cutting back services. 

6 – “People are the Programs.” This is a phrase we utter often in our office and on our soapboxes in front of funders and Rotary Club type audiences. We know that people are the greatest assets in our sector. Effective, community-changing programs don’t happen without qualified, fairly compensated staff. To that aim, we are proud to release the latest Nonprofit Compensation and Benefits Report which we hope will help nonprofit leaders, boards, and hiring managers find ways to recruit and retain the most qualified talent possible. 

7 – Our Statewide Nonprofit Conference is coming up at the end of August (27–28 in Boise). Registration is open and we are excited to welcome Kishshana Palmer as our opening keynote speaker and Salome Mwangi as our day two keynote. Additionally, Steve Patty, representing the MJ Murdock Charitable Trust will do a plenary session on How Nonprofit Capacity Will Shape the Future of Communities.

8 – Finally, we are excited to launch a new program later this summer called 'Ascending Leaders'  for mid-level managers and leaders at nonprofits serving Idaho. This will be a cohort learning program that is a semester long. More details and a registration link can be found here. 

​Idaho Runs on Nonprofits. Nonprofits are a key reason that our communities are places where all residents have the opportunity to thrive. Thank you for engaging in the issues that touch your mission and our sector at large and, as always, don’t hesitate to reach out to us if you have advocacy questions, issues to put on our radar, or anything else we should know as we head into the legislative offseason!

There were three bills we followed closely this year, due to the negative impact they could have on Idaho nonprofits. Initially, we opposed each one and worked with the sector to voice our opinions.

Although two of these bills were passed, the amendments that we helped craft alongside elected officials were workable compromises that limited the adverse effects on local nonprofits.

Thank you for contacting your legislators and advocating on behalf of Idaho nonprofits.

HB603 would limit State Sponsorships and Donations, in turn impacting the way nonprofits can partner with State Agencies.

• The legislation was amended, which changed the requirements for an agency from needing the governor’s approval to sponsor events to needing the director of the department's approval.
  
• Although the bill still seems unnecessary, we believe the amendments helped to take out the most damaging parts of the bill.  
  
• The bill was signed into law.

H739 would endanger the property tax exemption of property for hospitals.

• This is the second year in a row—with multiple attempts each year—of passing similar legislation, so it could make an appearance again next year and has implications for protecting tax exemptions for other types of 501(c)(3) nonprofits.
  
• It stalled this year, but the idea could be back next year.

S1374 would legislate guns on public property leased by a private entity.

• The amendments make the bill less problematic for nonprofits holding events on public property, clarifying that any event on public property with “restricted access” (whether admission is charged or not) can still limit concealed carry of guns.
  
• This means that nonprofits can still restrict guns at events if they have “restricted access” for participants of the event only (e.g. temporary fencing/perimeter around event)
  
• It has been signed into law by the Governor with the added amendments.

To see the full list of bills we tracked impacting the nonprofit sector, check out our final bill tracker of the session.

Each session trends emerge, which can help identify what the legislative priorities might be for future sessions. Here are some lessons learned, and how they might impact Idaho nonprofits.
“Going on” is still a priority. Whether trade school, an associate degree, or a university, the legislature has shown their commitment to helping Idahoans go on after high school through initiatives like Idaho Launch. Similarly, the Advanced Opportunities funding that allows high school students to pay for concurrent college courses was increased.

The implications for the nonprofit workforce are that many of today’s 18-22 year old students who will take advantage of these higher education opportunities are tomorrow’s nonprofit employees (nonprofits directly employ over 67,000 Idahoans currently—the 5th largest private employment sector)

Diversity and Inclusion are still tough topics. Diversity statements are banned from use in public universities, teachers and state employees cannot be forced to use someone’s pronouns that don’t align with their sex at birth, and DEI programs in higher ed were once again targeted.

​As part of the private sector, however, nonprofits can still decide how and what is best for their own values and mission as it relates to any workplace DEI initiatives.  

Each session trends emerge, which can help identify what the legislative priorities might be for future sessions. Here are some lessons learned, and how they might impact Idaho nonprofits.

Tips for what to do before next legislative session:  

• Identify one or two elected officials that have influence on your clients, community, and/or mission. This could be your local representative or someone that sits on a certain committee.
• Prepare your marketing materials and be disciplined about your main messaging.
• Invite your identified elected officials to tour your office or to attend your events.
• Go to events that elected officials and key community stakeholders will also attend. The more they see you, the stronger the relationships can become.
• Steward the relationship—connect your cause with something they care about.

These significant reforms correct longstanding challenges in the government grants process that have

• limited nonprofit effectiveness
  
• discouraged qualified organizations from seeking and performing under federal grants
  
• cost billions of dollars and countless hours in needlessly complex application and reporting requirements

The federal Office of Management and Budget (OMB) has released its major rewrite of the Uniform Guidance, the set of common rules governing most federal grantmaking to charitable nonprofits, state, local, and Tribal governments, and others.

Among other things, the reforms guarantee higher reimbursement rates for indirect costs, strengthen nonprofit protections, and streamline and simplify funding notices.

​+Read more