Week 10

President Obama is set to reduce itemized deductions to the wealthy. Itemized deductions would include areas such medical expenses, gambling losses, and mortgage interest expenses incurred on a second home, and charitable contributions as explained in the short video above. I agree that itemized deductions might be an easy way to target the wealthy but it would reduce charitable contributions. I feel like the small tax incentive makes all the difference for some people and taking it away could change attitudes surrounding giving. If certain charitable donations were taxed then there would be less distinguishing 501(c)3 organizations from 501(c)4 organizations.  It would tax those making $250,000 or more. However, I feel like most people amass their wealth, then they choose to donate later in life; it may not hurt charitable contributions as much as we think. It really renews the debate on whether the non-profits or the government should provide services as they often provide a duel function. Addressing the tax system as a whole, President Obama was quoted saying, “For too long we have tolerated a tax system that’s a complex, inefficient, and loophole-riddled mess". He addressed issues such as the deficit making the simple point that we are spending more money than we are taking in. We can continue to finance our debt by selling government securities but this puts programs such as social security in jeopardy. The current system just places a greater burden on the next generation and we must have more people paying into the system each generation. It is creating a bubble that will eventually burst as current policy is not sustainable. The question is really who to tax and how to do it. Many look at the estate tax as it is unfair as it creates inter-generational injustice and contributes towards creating a class system. However, there are a number of issues with this tax, are you going to take away someones family farm or property that has been with the family for years? It seems that a number of loopholes would surround any type of estate tax and no law would ever pass congress that would greatly increase this area of tax.

CBO -- Options for reducing the deficit

 El-Erian, author of when markets collide, brings up the point of the United States is having staggering levels of growth while the emerging markets are growing rapidly. The United States has a misalignment of jobs to skills which could prove harmful in the future. It seems somewhat unclear the role that educated people in the United States will play, perhaps more will choose to go abroad for work. It seems that most jobs that are high paying are science related. The article made the point that there was not a huge reduction in charitable contributions during the economic downturn. It was stated how the role of social services can end up preventing problems that are costly to society. Drug addiction, criminal behavior,  and illiteracy among others.

When Markets Collide - El-Erian

The conservative right and religious critics often ruin good things. I feel like it was justified for these art foundations to withdraw contributions from the Smithsonian. Art often takes on a greater role than aesthetics. It is art that tackles a number of social issues, enhances culture, and touches on just about every aspect of the world we live in. If something appears crude then one can simply advert their eyes. Using our own Jordan Snitzer Musuem of Art, there have in the past been displays considered to have adult material, simply they displayed this separately. It seems that removing an exhibit all together just places boundaries on what is deemed acceptable. We need to break away from traditional norms and take on more progressive attitudes in spheres such as art. Non-profits are really able to influence this through their contributions which have a great amount of influence as  there is a continued need for money. Taking into consideration the goals of these foundations was likely a lesson learned by the Smithsonian.

http://www.tnr.com/blog/jonathan-chait/83259/hideseek-and-the-problem-funding-controversial-art

I really enjoyed reading the article about the Mulago Foundation regarding the effectiveness of non-profits. This organization does not simply dish out money but rather asks for data that will prove the money is well spent. Money is often squandered with non-profits but the Mulago foundation only gives to those that show that they have made an impact thus maximizing results. There is accountability with these organizations that doesn't always exist. Our guest speaker spoke about his organization regarding basketball in South Africa where much of the money they received was rather a photo-op; he said that they preferred lasting relationships where they can work with funders to create lasting results. They received a basketball court at one point but there were was no funding afterward to help maintain the facility. He did however say that it was at times difficult showing impact as gathering data is not always possible but it was still overwhelmingly important to foster some kind of relationship with these organizations.

http://www.mulagofoundation.org/

Week 9 -- International Non-Profits

http://www.kiva.org/
   

Mercy Corps seems to complete a lot of work around the world. Rather than just throwing financial aid at these countries it follows a plan that is more sustainable. It responds to disaster by helping communities rebuild themselves, it provides jobs, and is economic stimulus rather than welfare. I thought it was interesting that this organization operates in Portland. Micro-finance is becoming a big deal and many of these organizations are choosing the Northwest to locate. I thought it was interesting the broad array of activity that this group is involved in, health and sanitation issues, climate change, and conflict and war among others. While browsing through the website I noticed you could purchase a gift such as feed a child or outfit a class room. It is amazing how much farther money can go in other countries. When I read the Greg Mortenson book, they could build a school in a rural location, and for less than $50,000 dollars. The administrative costs for something like that in the United States would far exceed that amount in a similar project I am sure .Here is a link to an article describing micro-finance in Oregon, my Sister works for Oregon Micro-enterprise Network (OMEN), just one micro-lending bank among others catering towards our state.

Oregon Microenterprise Network

I was really happy to see the William Easterly article which offers the basic critique of foreign aid. We are always dishing out money but it doesn't always help. In a past political science class we read a number of works by modernization and development theory. Simply, these third world countries do not follow the same path to development as the west. They may not have the legal institutions and infrastructure in their country to accommodate development. Further, corruption could exist; these development organizations may not have the social impact they were hoping as money leaks out everywhere.  Modernization theory states that there are certain stages to development and that this occurs in gradually. Dependency theory is rather the reason many states fail; it is social, economic, and political factors that must evolve simultaneously. If one of these factors is off then it harnesses instability. I would like to note additionally on the work of Samuel Huntington, who is the author clash of civilizations; he contributes cultural factors as a reason for failed states. I personally believe that development is complicated and that you can not simply follow a universal model. Each case is unique and it is the role of small groups such as NGO's who make the difference. Below is  a link to Samuel Huntington's latest book, Political Order in Changing Societies, he addresses a number of the latest topics surrounding development.

Political Order in Changing Societies -- Huntington

Millennium Development Goals (MDG's) are a great example to a multilateral approach towards tackling the worlds problems. 15 years seems like a great benchmark as it is short and results are easily measurable.

The website stated the results that would occur if these goals are achieved, "world poverty will be cut by half, tens of millions of lives will be saved, and billions more people will have the opportunity to benefit from the global economy". Development is interesting to me as it will be a different world if everywhere is equally developed.

However, some feel the tensions of global competition, would third world growth create a lower standard of living for those in already developed countries? There is the theory of convergence, we will lose our standard of living, and they or rather developing countries will experience an increase in standard of living; we would then meet somewhere in the middle. Another issue is world resources, we really can't have everyone consuming as much as we do currently; I truly do enjoy driving for example but if everyone in China and India wanted a car and consumed gasoline we would be out in a matter of years. While it is important to focus on sustainability, many of the third world countries are overpopulated; they have a number of problems that western countries do not. The answers to all of this is technological improvement  and changes in consumer habits but currently I don't think our planet could support this many developed countries consuming as much as we are currently.

Week 8 Arts and Culture

  
Foremost, the majority of advocacy organizations are organized as 501(c)4 organizations; this tax code labels them as a non-profit but does not allow donations to be tax deductible. These organizations are involved in lobbying as they represent an interest and making them political in nature. The majority of these groups advocate on social and civil rights issues. They may advocate on gay and lesbian rights, on behalf of senior citizens, or on issues such as abortion. Both 501(c)3 and 501(c)4 organizations are prohibited from advocating for or against candidates, they must keep their campaigns focused on issues. 501(C)3 organizations are not allowed to make advocacy the main purpose of their organization and are subject to the expenditure test.  Many organizations such as Planned Parenthood have both 501(c)3 and 501(c)4 organizations. If you were to donate, you can check a both whether the money should go towards social services or for the right to choose; this determining which tax status the money goes towards.

501(C)4 Organizations

     The article "The Power of Non-Profits" noted that our constitution reserves the "freedom of association" (assembly) and "right to petition" (lobbying). It has been rooted in the historical traditions of the United States to challenge and influence government. Farmers used the grange hall to take collective action against railroad rates and taxes for example.  Further, abolitionist groups worked to free the slaves, this a contributing to the emancipation proclamation. While the article gives a number of positive examples, it is important that advocacy exists on both sides of issues, and a number of issues can exist. Organizing a group such as into a teachers union could create an unfair advantage for that group and make it difficult to regulate this group. Next, a group could use misinformation to make an issue more complex. Using the equal rights amendment during the 60's as one example, this was not passed, it rather became a partisan issue due to interest groups misleading voters. While the idea was to promote gender equality, conservatives made it seem that it have drastic effects, forcing women into combat positions in Vietnam and making them eligible for the draft. It made it seem that a loss of rights would occur such as maternity leave. The religious right became stirred up with contentious issues of Roe v Wade at the time and blocked the issue as a whole. It shows how groups can organize on both sides. I personally agree that advocacy should not be tax deductible, and that while speech is free, the government should not subsidize it. Bob brought up an interesting point when we were studying religious non-profits, he stated that while they do advocate on lifestyle choices, they could lose non-profit status if this speech became political in nature.

The_National_Grange_of_the_Order_of_Patrons_of_Husbandry

 "Nonprofit Association of Oregon supports Attorney General’s efforts to publicize questionable charities" and "Senate Bill 40" seem like they could possibly be unconstitutional to me. It completely undermines equal access and limits free speech. Our constitution protects all groups equally and while we may not agree with certain types of advocacy we still need to allow it. Never have we limited minority opinions. It seems that we already have rule making such as tax codes to differentiate these groups, but we can't simply say some groups are wrong and simply bar them from participating within the larger body of non-profits. SB40 aimed to limit ineffective non-profits from using the majority of their funds to fund raise. I feel like groups like these already would have trouble receiving grants among other contributions and removing the tax deductible status would be the final blow. It is unclear to me what the purpose of these non-profits are if they solely collect funds. It may work to regulate these entities but the attorney general would need to make the criteria very clear on what type of fund raising activities qualify and where to draw the line. Perhaps rather than regulating these non-profits legislature such as public disclosure could take place  Labeling for example such as making donors aware of the effectiveness of a non-profit could be an alternative before they donate could be applied to all non-profits and perhaps this could occur by another non-profit rather than having government involvement.

http://www.nonprofitoregon.org/node/509

One point I wanted to note on was the role of 527 groups and Political Action Committees (PAC). While non-profits cannot legally advocate for a candidate, these 527 groups serve that function, and now with unlimited donations thanks to the recent Citizens United case.  Campaign donations are free speech and while 501(c)4 organizations cannot advocate for a candidate these same organizations may organize PAC's and 527 organizations to meet that niche. This article makes the distinction between the two groups.

Legal Definition 527 Organizations

     Non-profit nation makes the point that "Art" is not a money maker while "entertainment" generally does generate revenue.  Government support for the arts is important as it has created a number of museums and art gallery's. The national endowment for the arts reports 1.5 billion spent annually by government on the arts. The United States spends far less than other industrialized countries on the arts but still faces criticism from conservatives. It is important to note the growth of the arts over the last 50 years as more wealthy individuals have chosen to donate. It is interesting to see where the funding comes from, many foundations such as the Carnegie Foundation bean giving in the later part of the 20th century. Further, corporations such as At&t have began donating. I feel like small donations are important as well such as funding local efforts such as theater and concert halls.

NPR -- Stimulus Package Includes Millions For The Arts

The Bloomburg article "Art Groups Pumped $166.2 Billion Into U.S. in 2005" makes the point that funding for the arts may actually stimulate the economy. It makes up an entire sector alone and provides 5.7 million jobs. It leads wealthy individuals to spend rather than horde their money. It has a great effect on local economies as many travel to see the arts. The article stated that "the typical arts patron spends $27.79 per event, in addition to the price of admission, the study found. That figure is higher -- $40.19 -- among attendees who travel to an event from a different county". Using the small mountain town of Colorado for example, it could draw in tourists from the City of Denver, and this could stimulate local business such as restaurants and hotels. This small town of 10,000 is able to host small events such as the Salida Aspen Concert series which helps positively impact the city center and leading to higher growth rates.  Having a presence in arts helps the city justify beautification efforts such as keeping a waterfront and city park clean. Without the arts a small town like this would cease to exist in its current form, as it is the city is highly desirable, and those who live their take pride in their city.

Week 8 Arts and Culture

Education

     The article Subprime Opportunity made a strong argument against for-profit colleges. The for-profit universities seem to “sell” their education plan rather than “inform” prospective students.  The article stated that debt upon graduation is $31,190 for for-profit colleges, compared with $7,960 at public, and $17,040 at private non-profit institutions. The loans required to finance this debt exceed the maximum amount allowed by government subsidized loans and forces students to take out private loans. There are a number of alternative options available that offer similar programs to the for-profit institutions, such as community college, and with apprenticeships. Prospective students often have big dreams and do not realize that their degrees from these for-profits will not pay off.

     The article titled "Fed Up at the University of Phoenix" stated that congress was attempting to renew the higher education act to provide greater regulation and oversight. It went further to criticize how the federal grants just gave corporate investors higher profits as students racked up debt. The article "Will the For-Profit Education Bubble Burst in 2011" brought up the issue of federal dollars were going to for-profits as a result of government programs like the G.I. Bill. It also brought up the point that degrees from institutions such as Kaplan and University of Phoenix are generally looked down upon. It gave the example of the paralegal who was fired after they found out her degree was from Kaplan. For profit colleges often do not have their credits transfer which sends up yet another red flag.

    Private non-profit colleges and Universities receive 10 percent of their revenue directly from government appropriations, grants, and contracts. In contrast private elementary and secondary schools receive little to no funding. I feel like private elementary and secondary schools can be better but that is not always the case. It seems that private schools can adapt their curriculum and teaching styles while public schools follow a strictly set curriculum. A private school can assign grades with smiley faces and rainbows and ban the teaching of evolution while a public school must have standardized testing and letter grades. I feel like the most expensive schools generally are much better, the ones which the elite choose to send their children, fostering an ideal academic environment that would simply not be possible at a public school due to cost. I don't think it is fair for our elite universities to favor students from private schools that not everyone can afford. Standardized testing helps, but only to an extent; it seems like in the end those with money always come out ahead. Further, grade inflation exists at private institutions; this is for both high schools and colleges. Here at the University of Oregon it seems that while the quality of education is generally poor it might actually make sense to have this policy. Here is a graph showing the trend of grade inflation.

    In class today, we were asked about a solution to make higher education affordable. I thought about how to reduce costs when choosing a University. I chose in-state and a public university rather than a private or out of state school. I additionally took a number of  courses from a community college and then tested out of of classes. I avoided many of the University of Oregon's "money making lower division lectures" by jumping directly into "upper division courses" this increased the marginal value of my education. My DSC 240 professor joked about how the students at Lane Community College could take the same courses from him, they paid half the cost, and they had computers and a 30 person class size compared to our 450 person lecture hall. 

    Introductory courses inflate grade point averages which is unfair to those who choose to save money and take them from a community college. Grades from transfer courses do not count towards grade point and are not likely to meet the University of Oregon's general education requirement.  The point that I am trying to make is that there is little flexibility when it comes to higher education and cost saving policies for students are not favored as it would usually mean a loss conflict with  for the University.

Week 6 -- Environment

Foremost, the article about the McKenzie Watershed Council shows how a number of stakeholders can come together, and how they can tackle issues in a socially optimal way. It shows how cooperative decision making can help the community reach results that everyone can agree on, it lessens tension, and provides a forum for discussion. The McKenzie river is important as it provides potable water for the city of Eugene, it also provides hydroelectricity, and it serves as the habitat for fish and wildlife.  Some interesting facts noted in the article include the highway having the designation "Wild and Scenic" by the federal government.  There are a total of six dams on the river having a negative impact on fish. Most notable about the article, it stated a number of accomplishments such as habitat restoration, this combining voluntary funds from both private organizations such as EWEB and public organizations such as ODFW. Expanding further on the subject of environmental decision making, here is a link to a scholarly article which breaks down the process, and how it is important to involve the various interests.

http://www.gdrc.org/decision/nr98ab01.pdf

The Raymond article touches on how the environmental non-profit sector receives very little in both donations and grants when compared with non-profits as a whole. It does show how environmental regulations have greatly reduced pollution. The Kyoto Protocol did a great job of this as it brought together governments to provide universal restrictions on pollution. The article noted on carbon credit trading, this has been deemed the best way to regulate, and this as it regulates the market as a whole rather than just individual firms. Economists argue that this provides socially optimal solutions as it allows for the free market to play into the regulations. Firm A for example could have higher marginal costs and benefits in mitigation (75:25) and firm B could have lower marginal costs and higher marginal benefits in mitigation (25:75). The two firms can trade credits to find the socially optimal solution as one firm needs less credits and the other more. It places an actual price on polluting and allows for the government to reduce this over time. However, there are a few small issues such as grandfathering, as the initial credits are allocated for free but new firms would have to purchase them. The first link outlines the importance of the Kyoto Protocol, this as it actually commits governments to mitigating pollution; it shows an example of how supranational organization and multilateralism have emerged in the 21st century. Secondly, I looked up an article on carbon trading, it outlines the economic argument for why economists have advocated for this approach.

http://unfccc.int/kyoto_protocol/items/2830.php
http://www.eci.ox.ac.uk/~dliverma/articles/Hepburn%20carbon%20trading%20ARER.pdf

One last area surrounding the environment involves environmental justice.  I prefer the term environmental justice since it does not directly specify race as a factor of discrimination. Rather, it refers to all groups located in areas high in pollution, and it places more blame on the free-market. Policies that locate industrial areas near low income communities are not racist; it just seems that primarily minorities reside in these places and that other areas of equality should be addressed. We already have welfare, non-profits, and affirmative action (reverse discrimination); it seems that these are working to correct the problem of inequality.  Recently, the federal government has began to regulate these firms through federal agencies and programs.  For example, the EPA was established in 1970. George H.W. Bush established the office of environmental equality in 1992. Clinton then issued executive order 12898 which directed federal agencies to develop strategies to help them identify and address disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority and low-income populations.  The video mentioned how the primarily black community failed to make a case of discrimination under the Civil Rights Act of 1964. It seems that if they could make this case it would fall under strict scrutiny in the court system. However, the courts found that these people were just poor and this only fell under a rational basis for review. It seems that it is wrong for these communities to suffer from pollution. The polluting companies should face greater regulation and should face penalties for their pollution.

I feel like the government is overprotective of business and that our laws are designed to protect these entities. It seems that non-profits help to address problems of equality allowing for the poor to have a greater chance to succeed. Additionally, legal groups could assist in fighting the problems surrounding the environment. A number of public interest attorneys came to my public law class to speak and one thing that they all shared in common was the fact that they were up against large well-funded firms and did not have the same amount of resources available. I feel like the role of regulation falls on the government and that continued help from groups such as non-profits will help steer policy in the right direction. The video below outlines the basic problem of environmental injustice, it shows a text book example of how a primarily black neighborhood has experienced a number of problems including adverse health risks; it makes the moral argument that it is simply wrong for the poor to suffer while others profit at their expense.

Week 5 Blog -- Healthcare

It seems more fitting for non-profits to handle health care than the private-sector as they make their decisions for the well-being of the people rather than for profit.   Non-profit health care includes hospitals, nursing homes, blood and organ banks, disease charities such as the american cancer society, and even health insurers such as blue cross (O'Neill 99). According to non-profit nation, America's thirty thousand non-profit health organizations had $385 billion dollars in revenue (O'Neill 91). While the non-profit sector does alleviate some problems, the current structure favors the private sector; they have vast amounts of money that they are able to use to influence legislature for example. The picture above seems to show the number of components surrounding health care which has led to the mess we have today.

The article "Value of Nonprofit Health Care" laid the basic arguments for why non-profits are more suitable for handling health-care. It stated some alarming facts, such as two-thirds of Americans did not know whether their health insurance was public or private, and of that group 80-90% did not care. Unlike for-profit hospitals, non-profits use the earnings to reinvest in the organization such as by improving quality, service, and efficiency.The remaining profits are used for community benefits to help reach out to groups who could not otherwise afford services and serve in areas where little profit exists. Non-profits typically provide the services at a lower cost and are less likely to mislead consumers. More research and innovation comes from non-profit groups. Rather than researching drugs such as Viagra they would be more inclined to research cancer treatments providing a greater benefit to society. Further, they would focus on a cure, rather than long term drug use that would only alleviate symptoms (allowing them to sell more drugs). Overall, it has been proven that greater satisfaction comes from non-profits, and that they provide higher quality care. The stigma surrounding non-profits is largely false as they operate much similarly to the for-profit entities but with better intentions.

While I feel like non-profits are a better solution than the private sector the best option would be  a government run system. The U.S. system is ineffective as a third-party payer system. The first and second parties are the medical providers and the patients. The third party is the insurance provider who pays the costs such as private insurance (employee or individually purchased) or public insurance (medicaid, medicare, SCHIP, and Vetrans (TRICARE, CHAMPVA). Only 13% of U.S. medical expenses are paid out of pocket (Leete). The insurance company would then collect money either as a deductible, co-payment (fixed amount), or coinsurance (percentage amount). It is interesting to think that the U.S. is the only democratic capitalist industrialized country without national health insurance and with largely privately funded health care (Leete). The U.S. could adopt a single payer system such as in Canada or a nationalized system like the U.K. A nationalized system seems possible as only 1/6 people are without health care in our country meaning that they are covered one way or another. It is more likely than not that the remaining could afford care or are eligible for Medicaid (for the low income) or medicare (for elderly and disabled). The link below explains how government programs and insurance work in-depth if you are interested in learning more.

http://www.census.gov/hhes/www/hlthins/methodology/definitions/cps.html

Further, the bureaucracy and administrative costs surrounding health-care are another problem; everyone needs health care and in the end people do whatever it takes to get it. Many choose to take certain jobs that they are overqualified for just to recieve coverage for their family. It is a complex game the insurance company plays approving some claims and denying others, limiting how many visits someone can have, and telling someone which treatments they are covered under. It creates a paperwork headache dealing with referrals and having to go through your primary care physician every time you need to see a specialist. Preventative care could actually save money and we already pay for emergency services. Opponents argue that providing universal health care would be too costly. This is largely false, currently the U.S. is spending a greater amount of its GDP than the countries within the E.U. having universal health care. It really makes me question where all the money has gone. The graph below helps compare the United States spending compared to that in the U.K. It shows a continuing divergence from the European countries and a steep rise in costs during recent years.

The health care system in the United States is an absolute failure.  Government run health care could cut out the insurance company which makes a business out of denying claims. Personally, I feel like the government would be much more trusted in providing insurance; there would be less money lost to lobbying and political campaigns, investor profits, and executive bonuses. There would be a lot less denying of claims on technicalities. Health care is one area where the free-market should stay out. It is just such a complex sector that many become confused. Lets look at adoption services for example. If someone were making money by selling children it could lead to problems such as baby snatching. Simply, profits are getting in the way of someones well-being. It seems like an area such as this would need heavy regulation to make it work but the better solution would be to allow the public and non-profit sectors to take on this role. Where is the regulation surrounding health care? The complex structure surrounding the various components of this sector creates a mess, government health care is the solution, simply purifying this sector that amounts for 13% of our GDP. The below pie chart shows where the money goes, but it doesn't account for investor profits, and the money spent in areas such as lobbying, and exectutive bonuses.

The two questions that are asked in regard to health care reform. First, is the quality of care better? And what will it cost? Well, looking at other countries and how they provide care, Europeans love their health care, and they have a much greater amount of coverage than we do. The second question, in addressing costs, we already spend much more than they do and without the same results. We could copy their model of health care and introduce cost saving measures. We could have different tiers to our health care system, everyone receiving basic health care (such as medicade), and those contributing more could have a greater amount of coverage.  We could stop costly treatments such as excessively spending money on prematurely born babies or keeping someone on life support. Simply, allocating this amount somewhere else could provide a greater amount of social well-being. It is crazy to think that 65% of someones lifetime health care expenses are spent during the last 30 days of their lives. Perhaps we should simply judge when and when not to treat someone since it draws from an insurance pool meant for everyone (death panels?). If someone wanted to spend their own money that is one thing but in the case of life support maybe pulling the plug would be the better option.

Here is a link to the the Affordable Health Care for America Act. As well, here is a video by the Henry J. Kaiser Foundation, this which explains many of the important aspects of this Act.
http://docs.house.gov/rules/health/111_ahcaa.pdf

Works Cited:

Leete, Laura. "Health Care Finance and Reform." Policy and Planning Analysis. University of Oregon. Eugene, OR. 01, 02, 2011. Lecture.

Social Services -- Blog # 4

Deemed as morally fit, social services are widely accepted and admired; they provide a safety net for those in need. It is interesting the wide array of social services that exist such as day care, emergency and relief services, community food services, and homeless shelters (O'Neill 73). It is important to note that while these organizations are private, currently sixty percent of the revenue comes either directly or indirectly from the government under grants, performance contracts, and fee for service agreements (O'Neill 77). The alternative to this would be the "European Model" where the government provides all the services (O'Neill 82). I feel like the duel approach is best, it encourages both public and private funding, and this leading to a greater amount of social services overall.

I looked into what types of grants are available and how to apply for them. It turns out that there is a search engine that assists you in finding out what kinds of grants are available. The Service Coordinators in Multifamily Housing Program for example had $31,000,000 in available federal grant money. The website also had tools on registering your agency as well as grant writing tools.  This website really put it into perspective how much grant money is out there and how easy it is to get as long as you meet the requirements. Non-profit nation stated that 12.4 billion dollars was allocated in government grants to social service organizations in 1997 alone (O'Neill 78).


 http://www.grants.gov/search/category.do


Given government support of social service organizations, it is important to note the issues involved as public dollars from taxes are supporting private organizations.  In the supreme court case, Boy Scouts v. Dale, it upheld the exclusion of homosexuals from the organization. This demonstrates just one example how the government is supporting discrimination by giving tax payer money to these organizations. In this case, it was ruled that allowing homosexuals into the organization would violate its founding principles; it just seems unclear where to draw the line. It was decided under the first amendment freedom of speech which seems to run in conflict with the 14th amendment of equal protection. Let it be noted, that the government controls the grants, and controversial organizations would likely receive less funds. The City of San Francisco excluded the salvation army from social service contracts, this since it did not extend benefits to "unmarried partners", such as the gays and lesbians (O'Neill 85). A case brief outlines the opinions of the court below for Boy Scouts v. Dale.

http://www.oyez.org/cases/1990-1999/1999/1999_99_699

It seems that the government and private organizations each have a role in providing welfare. For example, the  food stamps program in Oregon, and food for lane county both are oriented towards feeding those in need. What I  like about food for lane county, those who need help are able to access it quickly; there is no formal application process that approves and denies participants. In contrast, the food stamp program through the state of Oregon has a number of requirements for someone to become eligible, and there are further requirements dictating how much someone recieves. There was a calculator on their website listed here that calculates how much someone receives https://apps.state.or.us/fsestimate/. The food stamp program functions as supplementary income, it seems that while most people do actually need the help, there are a number of those who simply qualify and therefore abuse the system. Below I listed links to the food stamps program and food for lane county to compare the two programs which seem to have similar goals.

http://foodforlanecounty.org/
http://www.oregon.gov/DHS/assistance/foodstamps/foodstamps.shtml

I thought it was interesting how federal policy regarding social service organizations has changed over time. Prior to the 1930's and 1940's, it was a different time with far less problems than today; the common help came from family at that time. The new deal began the role of the government in providing the social services in light of the great depression. The government role transitioned to private organizations during the Reagan era of the 1980's. However, it seems that federal programs were cut, and the same allocation of funds did not go towards supporting the private sector. It seems that this trend continued until recently with Obama using the government to create large scale programs. The 1.3 trillion dollar stimulus package greatly increased the role of government programs as well as social service organizations. I think it is interesting how we are trying to stimulate the economy but cut the national debt at the same time.

Outlined in non-profit nation, the private sector often complains about non-profits, in that they crowd out business. For example, the YMCA could hurt a local fitness club, and in a town where there may not be enough room for both to exist. Personally, I feel like non-profits are focused on efficency, and they provide a good or service at a cheaper rate than private industy. If this is harmful to the priate sector, it does not occur on a  large scale, and it seems like those receiving help would not get it otherwise. Looking into the efficiency of non-profits I researched ELAW using the Guidestar search engine. I thought it was interesting that the executive director, Harvard alumni, gave up large six figure salaries to work with ELAW. It just goes to show how cause oriented organizations are able to attract skilled workers who give up higher wages elsewhere to do some good in the world.

Week 3 -- Religous Organizations, Philanthropy, and Tax Exemption

This past week, during class and from the book Nonprofit nation, we learned the basics surrounding religious organizations.  Foremost, religious organizations are the largest part of the non-profit sector; there are 375,000 registered organizations in the United States (O'Neill 53). Religion influences many lives, forty percent of the American populace attend religious services weekly, and religious organizations are considered the most trusted institution in the United States (O'Neill 62).  Survey results show that American's trust religious organizations more than the government, unions, and the media (O'Neill 62). While the statistics do not surprise me, I feel that since religious organizations shape the society which we live in, greater regulation should exist as it has taken on non-traditional roles such as hospitals, education, and social services. A hospital could refuse to give a patient emergency contraception, a school could expel a homosexual student, and a social service organization such as a homeless shelter could impose mandatory religious services. As religious organizations crowd out other institutions, and given the non-profit status, would the government exceed its powers if it were to regulate?

Religious Organizations are entrenched in the traditions and culture which have influenced and shaped today's society both negatively and positively. For example, the temperance movement of the 19th and 20th century's, extensive attention to urban poor during the progressive era, and today taking stances on faith based issues (O'Neill 62-63). It seems that religious belief plays a role in voting today, making it difficult to make policy on controversial issues such as abortion, homosexuality, and stem cell research.  Religious organizations do advocate a particular ideology and this has influenced decision making in the political arena, it is questionable the tax exempt status in its current form, and the lack of regulation such as with financial information. The question becomes even more difficult when religious and political messages become blurred together. 

In class, the distinction was made between advocating on issues versus a candidate which would qualify as campaign intervention. A religious organization can advocate on the right to life but only crosses the line when it takes a direct political stance. An absolute must read for this class is a tax guide for churches and religious organizations available from the IRS. http://www.irs.gov/pub/irs-pdf/p1828.pdf It states a distinction between issue "advocacy" and "campaign intervention" (IRS 9). It pointed out that referencing a candidate by name, stating approval and disapproval for actions, and referencing voting would make the speech political in nature (IRS 9). There are a number of loop holes surrounding advocacy, for example, a religious organization could post a link on their website. Further, GOTV efforts are allowed by 501(c)3 organizations, this making bias an issue. Importantly, it is noted that 501(c)3 organizations are not all together barred from political activity, but if they choose to engage in campaign intervention they may do so at the penalty of a 10% excise tax. Further, political activity such as lobbying cannot serve as the a 501(c)3 organizations primary function for more than four years, it would subject it's entire income during that period to tax. Furthermore, a major aspect surrounding religion that concerns me is the lack of financial accountability surrounding religious organizations; they are not required to file reports with the IRS and other governmental agencies. 

According to Nonprofit Nation, 85-90% of revenue comes from donations, and this amounting to $85 million dollars in 2000 alone (Hodgkinson and Weitzman, 1993). The remaining 10-15% comes from grants, endowment income, net profit from auxiliary services, and with facilities rental (Hodgkinson and Weitzman, 1993). The book notes a trend towards secularism.  It will be interesting to see the role religious organizations play in the future, perhaps a greater allocation of resources will go to social functions, such as health, social services, and international aide. Given the amount of assets held by churches, and the tax exempt status, it seems that religious organizations will have a lasting influence on society.

Reflecting on the additional reading, it was noted that when reducing the estate tax, it hurts charitable donations. If the tax rates were higher then many would choose to donate to tax exempt charities to see that their money went farther. Given that many of those in Congress come from privileged backgrounds, and that they are an extremely wealthy group, it seems unlikely that lawmakers will look favorably at raising tax rates on the estate tax. Next, given the recession, it seems habits have changed surrounding charitable donations. Donations are directly linked to the performance of the stock market, and when there is less money, many simply can't afford to donate. Lastly, it should be noted that is unlikely that cutting tax exempt status would contribute to significantly lessening the national debt, this as charities and government often serve duel purposes.

Great Smokey Mountains National Park

The Great Smokey Mountain National Park is part of the Blue Ridge Mountains, a division of the larger Appalachian chain; it is located on the border between Tennessee and North Carolina at 35°41′0″N 83°32′0″W. It encompasses 814 square miles making it one of the largest protected areas east of the Mississippi river. The mountain building process began over a billion years ago making these mountains some of the oldest on earth. To many, the geological features may not be noticeable. A naturalist from the park once exclaimed "what geology ... we don't actually have any in this park!". What he meant was that the geological features were not obvious in the great smokey mountains national park. The mountains are a product of uplift and prolonged erosion. Moist air from the gulf of Mexico helped create dense forests and a smokey haze cover many of the geological features.  Below is a map pinpointing the location of the smokey mountains between North Carolina and Tennessee. 

Foremost, after forming a basement complex, the major geological forming event was the deposition of the Ocoee supergroup. The Ocoee Supergroup contains a number of fossils including tribolites, bryozoans, ostracodes, pelmatozoans, algae, and agglutinated forrminifers; it indicates a Silurian or younger age. The low-grade metamorphic rock of the walden creek group has helped date the park.  This data contradicts older ideas that the Walden Creek Group dated to the Neoproterozoic age. This shows an example of how the fossil record is used in a relative dating method to determine the age of rock. 


Tribolite fossils as shown in the picture below one of the most common fossils found in the park The tribolites made their first appearance during the early cambrian era. They finally died out in the permian 250 mya. There were 17,000 species of trilobites during the paleozoic time. The numerous fossils available have helped date the great smokey mountains.

The next major process which occurred was the crustal rifting and deposition of  Paleozoic rock causing sentiments to collect and creating thousands of feet of oceanic sedimentary rock. Sentiments collected in an oceanic trench are shown in the picture below. 
 

The majority of the rocks in the Great Smokey Mountains were formed by accumulations of clay, silt, sand, gravel, and minor amounts of calcium carbonate in flat-lying layers occurring over millions of years. The younger rocks of sedimentary origin formed during the Paleozoic Era, 450 to about 545 million years ago. The oldest sedimentary rocks were formed during the Proterozoic Era some 800-545 million years ago. Vast amounts of unconsolidated clay, silt, sand, and pebbles were washed down into lowland basins from adjacent highlands during that time. 


Rocks of the old highlands were over one billion years old, and were similar to the ancient granite and gneiss found in the southeastern parts of the park. These early sites of ocean bottom deposition were formed along the ancient margin of the North American continent as an older and larger supercontinent broke apart.
Igneous rocks are present but only a limited amount can be found in the park. The two main igneous rocks found are granites and gneiss. Granites usually have a medium to coarse-grained texture. Gneiss rocks are usually medium to coarse-foliated and largely recrystallized. They often have large quantities of minerals including mica and chlorides. 

 

 

Later, due to tectonic plate activity, the super continent of Pangea was formed. This the start to uplift during the Paleozoic era. The great smokies became the crest of a major mountain belt stretching across Pangaea.

The Alleghenian orgeny is a mountain forming event occuring 300-350 mya during the Carboniferous period. When the continents of Africa and North America collided it exerted massive stress making whattoday we call the Eastern Seaboard. There was a transfer of igneous and sedimentary rock into metamorphic due to the collision. These concurrences caused thrust faults and some strike-slip faults as well as folding. It is possible that at the peak of mountain building, the Appalachians could have been much higher, perhaps even high than present day Himalaya. The stresses caused faults called thrust faults and strike-slip faults are shown below. A thrust fault is a type of fault, or break in the Earth's crust across which there has been relative movement, in which rocks of lower stratigraphic position are pushed up and over higher strata. They are often recognized because they place older rocks above younger.

A strike-slip fault is where the two forces move parallel to each other as shown below.

Data by the U.S. Geological survey shows that the orogenic crust was formed after a crustal magma source. Orogeny refers to the forces and events which deformed the earth and this caused by tectonic plate movement. This created orgenic belts of deformed rocks.

The last process involved in forming the great smokey mountains was erosion which uncovered many of the older rocks. Erosion helped shape the ridges and valleys and uncovered many of the older rocks. This occurred during the mesozoic time and erosion continued throughout Cenozoic time. This shaping the mountains closely to their current form today.

 Noting on a few of the key features in the park. The most visited location in the smokies is Clingmans Dome, it consists of lightly metamorphosized rock, and much of this which is Sandstone. These sedimentary rock types are most noticeable on rocky outcrops and in large boulder piles.  Clingmans Dome is the highest mountain in the smokies, it has an elevation of 6,643 feet, and is the highest point of the 2,174 mile Appalachian trail. Below is a picture of the sandstone which is visible on the bank of east creek within the park.

Next, here is a structure map of Cades Cove in the Great Smoky Mountains National Park, another attraction in the park. Cades cove shows a thrust sheet that displays the rocks beneath the sheet. It shows a window within the Proterozoic Ocoee rocks where Paleozoic rocks of the Ordovician Knox Group are exposed.

Works Cited




Great Smokey Mountains A Visitors Guide. Great Smokey Mountains. , 2011. Web. 14 Feb 2011. <http://www.smokymountainsvisitorsguide.com/index.html>. 

Harris, Ann, Ether Tuttle, and Sherwood Tuttle . Great Smokey Mountains National Park. Geology of National Parks 6th Edition. Dubuque: Kendal and Hunt Publishing Company, 2009. 821-834.

A Guide to the Orders of Trilobites . Web. 14 Feb 2011. <http://www.trilobites.info/>

King , Phillip, and Arthur. "The Great Smoky Mountains-Their Geology and Natural History." Scientific Monthly 71.1 n. pag. Web. 14 Feb 2011.

United States Department of the Interior. Great Smokey Mountains. , 2011. Web. 14 Feb 2011. <http://www.nps.gov/grsm/index.htm>.

Introductory Post

Hello Blogging World! The purpose of this blog is to write about the various components of the nonprofit sector and reflect upon them. The non-profit sector plays a number of important roles, it bridges the gap between the public and private sector, and it has a number of areas including advocacy, social services, research funding, and religious organizations; these to name just a few examples. I hope to further my knowledge of non-profits through writing this blog and build upon the content discussed in PPPM 240. Specifically, I am interested in the legal aspects surrounding the non-profit sector, organizational structure of nonprofits, funding aspects, and the different tax classifications surrounding this sector. 

My name is Carson Quam and I am double majoring in Political Science and Public Planning, Policy, and Management (PPPM).  I am a current volunteer with Partners of the Americas, a student exchange program,  it allows for high school students from Costa Rica and Oregon to travel for a two month stay in the other country. Partners of the Americas has 120 different chapters in the United States. Within this program I help provide information on the Oregon to Costa Rica exchange, helping inform students and parents about travel, and preparing prospective students for travel. Additionally, I am part of a selection committee, and I evaluate candidates for travel through a series of interviews.

I am taking this course as it is critical to understand the non-profit sector, it is likely that my future jobs will involve working with non-profits, this as they are intertwined with a number of other aspects. According to nonprofit nation, 1.8 million registered non-profit organizations are formally recognized in the United States alone. It accounts for 2 trillion dollars worth of funds and 5-10% of the United States economy.  Understanding the history of non-profits was interesting for me, it showed how they first emerged, as wealthy individuals began foundations to give back to those who helped them build their fortunes.  I found the lecture interesting when hearing about endowments and how schools like Harvard had vast amounts of funds from wealthy alumni donating over the years. Expanding on the historical aspects, the growth of non-profits in the United States seemed to occur with the post WWII economic boom as the industrial sector was left unharmed. Next, the social activism of the 60's and 70's largely contributed to growth of the non-profit sector. Today, Bill Gates and Warren Buffet are encouraging other billionaires to donate their fortunes, and they have began a worldwide "giving pledge".  This should create lasting change and allow for large influxes of cash that individual governments would be unwilling to provide.

Concluding thoughts, discussed during the lecture, we spoke about whether it was fair or not to have tax exempt status for non-profits.  Nonprofits are given little regulation, and 2/3rds are organized under 501 (c) tax status, this lumping them together as one.  Taking religious organizations for example, perhaps their social services role could have 501 (c) tax exempt status, but when advocating for an ideology, it could be taxed similar to campaign donations.  One example, Planned Parenthood accepts donations for both health care, and for political advocacy for the right to choose. The health care is tax exempt, but the advocacy for the right to choose is not. Perhaps religious organizations among others should be subject to the same rules.

It seems that in allowing tax exempt status, it involves the government, and when practices by these organizations become discriminatory they should forfeit tax exemption and lose funding such as through grants. For example, if a religious school expels a homosexual student, they have every right to do so as a private organization. The problem arises is when the government is supporting this discrimination by allowing tax exemption and giving grants. It seems to come in conflict with issues of equal access protected under the 14th amendment if a religious organization were to receive these types of funding.