• TURNING THE TIDE:

Turning the Tide
Public Counsel’s Response to the Economic Crisis
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Information and Resources for Nonprofit Organizations
Information Sheets Helpful Resources
Bankruptcy Employment
Employment Financial Management
Lease Modifications Free Legal Assistance
Loan Modifications Opportunities from ARRA
Other Resources
 Public Counsel Information Sheets
Public Counsel Information Sheets were prepared by expert attorneys addressing timely legal issues that
nonprofit organizations may be facing during these difficult economic times. Topics include the following:
LAST
TOPIC DESCRIPTION
UPDATED
In this information sheet, the topic of bankruptcy is explored through a series of
questions addressing many common concerns of nonprofit organizations from
both the perspective of debtor and creditor. The answers offer a starting point
Bankruptcy for a nonprofit to evaluate whether the remedy of bankruptcy can help it achieve August 2009
a more sustainable economic future through a reorganization, or whether the
time has come to “close with honor.” Also considered are the ramifications for a
nonprofit when its landlord or a key supplier files for bankruptcy protection.
In this information sheet, applicable California employment laws are explored
through a series of questions addressing many common concerns of nonprofit
Employment organizations. The answers offer a starting point for a nonprofit to evaluate August 2009
alternatives designed to reduce expenses, including reductions in salaries, work
hours or benefits, as well as layoffs.
In this information sheet, the topic of lease modifications is explored through a
series of questions that address many of the common experiences and concerns
Lease of organizations leasing commercial real estate in these economically
August 2009
Modifications challenging times. The answers offer a starting point for a nonprofit to evaluate
whether it can achieve a more sustainable economic future through rent
abatement, rent deferral, sub-letting, or other lease concessions.
In this information sheet, the topic of loan modification options are explored
through a series of questions addressing many common concerns of nonprofit
organizations that are struggling to manage outstanding debt. The answers offer
Loan
a starting point for a nonprofit to evaluate when it may be appropriate to modify a August 2009
Modifications
loan, what some other alternatives may be, and how a loan modification might
help the nonprofit organization to keep its doors open during this economic
crisis.
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 Helpful Resources
Below are additional resources that may be helpful for nonprofit organizations in our challenging economic
environment. Resources are listed in alphabetical order.
EMPLOYMENT
Blue Avocado, www.blueavocado.org/content/nonprofit-layoffs-and-furloughs-do-them-right
Through a blog question and answer format, a human resources expert provides advice on how nonprofits
can ensure that lay-offs, furloughs, and temporary shutdowns are carried out in a legal manner. The
human resources expert emphasizes that the lay-offs being considered must not put the organization at risk
and gives useful information to nonprofits that are thinking about implementing furloughs.
HR Specialist, www.thehrspecialist.com/eletters.aspx
This free weekly email newsletter provides HR news, trends and practical information with a sampling from
the dozens of new articles added to the paid subscription-based web site each week.
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FINANCIAL MANAGEMENT
Fieldstone Alliance, www.fieldstonealliance.org/client/tools.cfm#tools
Fieldstone Alliance provides both printed resources for sale as well as a capacity-building consulting
service for nonprofit organizations. It provides a lot of excellent material for free on its website and through
an email newsletter, “Nonprofit Tools You Can Use.” Two particularly useful newsletter issues for
nonprofits dealing with financial challenges can be found under these topic headings: “Tough Times
Strategies: Moving Beyond the Bake Sale” and “Adapting to Change: 22 Structural Strategies for
Nonprofits.”
Nonprofit Finance Fund, www.nonprofitfinancefund.org/details.php?autoID=177
Nonprofit Finance Fund is a national leader in financing nonprofits, strengthening their financial health and
improving their capacity to serve their communities. Nonprofit Finance Fund aims to create a strong, well-
capitalized and durable nonprofit sector that connects money to mission. The Fund provides questions,
answers, and additional resources related to navigating the financial crisis.
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FREE LEGAL ASSISTANCE
Public Counsel, www.publiccounsel.org
In this period of economic downturn, nonprofit organizations are facing increasing financial challenges.
However, trying to address these challenges without legal advice could put your nonprofit at greater risk.
Public Counsel’s Community Development Project (CDP) provides free legal assistance with a variety of
transactional issues to community-based organizations that serve low-income and underserved
communities in Los Angeles County. For further information, please call us at (213) 385-2977, extension
200, or visit our website.
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OPPORTUNITIES ARISING FROM THE
AMERICAN RECOVERY AND REINVESTMENT ACT ( “RECOVERY ACT”)
FOR ALL NONPROFIT ORGANIZATIONS
Council of Nonprofits, www.councilofnonprofits.org/files/Special%20Report%207--
%20White%20House%20briefing%20-%20April%2014.pdf
On April 9, the White House held a special “briefing for outside organizations about the American Recovery
and Reinvestment Act (ARRA)” to provide an opportunity “to learn about how the ARRA funds are being
distributed in the various departments and how you as organizations can participate.” The National Council
of Nonprofits attended the briefing and published this special report containing explanations and links to
many ARRA resources.
FOR NONPROFIT HOUSING DEVELOPERS
The following are links to resources related to the significant tax credit funding included in the federal
stimulus bill:
California Tax Credit Allocation Committee, www.treasurer.ca.gov/ctcac (see the section titled “The
Latest” for new information on federal stimulus funds)
National Housing Trust’s Current Report, www.nhtinc.org/LIHTC/NHT_ARRA_HFA_Responses.pdf
(updated every Friday)
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OTHER RESOURCES
Chronicle of Philanthropy, http://philanthropy.com/financial_crisis
Chronicle of Philanthropy is a news source for charity leaders, fund raisers, grant makers, and others
involved in the philanthropic enterprise. Chronicle of Philanthropy has published a special report on “How
Charities Cope With a Troubled Economy.”
CompassPoint Nonprofit Services, www.compasspoint.org/assets/445_mwordfinal2005.pdf
“The M Word: A Board Member’s Guide to Mergers” is an excellent booklet examining how, why, and why
not to merge nonprofit organizations, including alternatives to mergers.
National Council of Nonprofits, www.councilofnonprofits.org
The National Council of Nonprofits is a network of state and regional nonprofits. The National Council
assists small and midsize nonprofits to manage and lead more effectively, work together and share
solutions, discuss important policy issues affecting the sector, and increase the impact that nonprofits have
in their communities. Recently, in light of the economic crisis and its impact on nonprofits, the National
Council of Nonprofits launched the Nonprofit Economic Vitality Center. This center puts together key
information from across the country on how the economic downturn is affecting nonprofits.
Nonprofit Risk Management Center, http://nonprofitrisk.org/library/articles/strategy09002003.shtml
The Nonprofit Risk Management Center provides assistance and resources for community-serving
nonprofit organizations. The center’s offers a wide range of services to help nonprofits cope with
uncertainty. The center provides information on sustaining nonprofits during economic downturns.
Valley Nonprofit Resources, www.valleynonprofitresources.org/vnr-staying-alive-guide.asp
For nonprofits in the San Fernando Valley, Valley Nonprofit Resources “Staying Alive” Initiative provides
workshops, information resources and technical assistance for Valley nonprofits about how to survive and
thrive in the current hard economic times.
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