After 92 years of service to her family, her community and her state, the world said goodbye to a truly exceptional woman. My friend, mentor and the founder of my nonprofit organization, the one and only Pat Potts, passed away last month. In partnership with her husband, Ray, Pat was known as a changemaker. Her charitable résumé is extensive, from her work with Oklahoma City Public Schools, to founding the Potts Family Foundation, to founding the Oklahoma Center for Nonprofits and much more. What an inspiring legacy. So often, “change” is seen as something to be avoided. That’s why we have change management, “change champions” and other mechanisms in the business world to help organizations navigate moving from one concept, process or system to another. And, of course, we need these tools to help make important transitions. But Pat was undaunted by change. She saw problems and wanted to find the most efficient, equitable and sustainable ways to solve them, and that usually meant affecting significant change, shaking things up and, very often, starting something entirely new. There is a lot of uncertainty right now for nonprofits due to a number of policies affecting charitable funding, operations and more. However, too often these times of uncertainty can lead to a feeling of recoiling, doing what we know works and – above all – not rocking the boat. However, I am challenging my organization and all Oklahoma nonprofits to ask themselves an important question: What would Pat do? Pat would – and did – fight the good fight, even in times of adversity. She championed excellence even when budgets were tight. She never forgot that the ultimate goal was to make Oklahoma the best possible place to live, work and grow. We would all do well to be more like Pat – and, as I always say, we are stronger together! Marnie Taylor is president & CEO of the Oklahoma Center for Nonprofits.

As time marches on and each generation goes through its fair share of economic and cultural changes, it is a theme that each generation must also adapt to new circumstances. For those of us in the workforce through many of these trends – including the oil bust, Great Recession, COVID and much more – we know that rolling with the punches all part of doing business, no matter in what industry we practice. However, it is difficult to argue that any sector has been called on more often to do more with less – especially when times are hard – than the nonprofit sector. Nonprofits serve citizens from all walks of life, but needs increase among our most vulnerable populations during tough times. We’ve seen examples recently coming out of COVID as well as during a post-pandemic period of record-setting economic inflation in food, housing and other costs. With all this in mind, this would seem like the right time to increase resources and support for the nonprofit sector, which is dedicated to doing work for the public good. Instead, we’re seeing a number of policies conflating to create a funding crisis for charitable organizations. I have been in nonprofit leadership for decades, and 2025 is shaping up to be a watershed year. I do not believe that the sector will look the same in my lifetime – or even in my children’s lifetimes. The latest changes come in the form of the federal tax bill passed in early July. One bright spot in this legislation is the non-itemizer charitable deduction championed by Oklahoma’s own U.S. Senator James Lankford. Lankford is a go-to nonprofit expert in U.S. Congress and offers boots-on-the-ground insight into our sector from his own firsthand experience as an Oklahoma nonprofit leader. This provision creates a permanent universal charitable deduction for the 90 percent of taxpayers who do not currently itemize their deductions, valued up to $1,000 for individuals and $2,000 for married couples. This means the phrase “writing off” a tax donation is back in full force for the first time since 2017, bringing benefit both to donors and nonprofits alike. We appreciate Sen. Lankford for his ongoing advocacy for the sector. Unfortunately, there are several other provisions passed in the tax bill that are harmful to nonprofits now and in the future. These include a cap on individual itemizers, which decreases the value of a charitable deduction for high-income earners; a floor on individual itemizers, which limits individuals’ claims to the extent that contributions exceed one-half percent of the taxpayer’s contribution base; and a floor on corporation giving, which places stringent limitations on charitable deductions for businesses. Of course, each of these provisions comes with its own complexities, but there is a common theme: disincentivizing donations to nonprofits at a time when they are needed most. In concert with other policies, some impacts – such as cuts to staff and programming – are immediate, while others may take a generation or even two to come to light. Many resulting effects will impact the most basic needs of Oklahomans, including food, clothing, shelter, health and education. So, I hope you will join with me in having a discussion at your home and your workplace about how you can help support our fellow Oklahomans through donations, volunteerism or any way that may support the missions of Oklahoma nonprofits during these uncertain times. Contact organizations important to you to see how you can help them meet this moment. When nonprofits thrive, Oklahomans thrive. As I always say – we are better together!

Oklahomans have been through some tough times to say the least. Around this time each year when the Oklahoma City Memorial Marathon surges through our streets, we are reminded of the harrowing day that struck our city 30 years ago, during which time I was proud to respond with the American Red Cross. This time five years ago, we were all grappling with the onset of a novel virus that we didn’t know yet would lead to a pandemic that changed the world forever. I was proud at that time not only to lead the Oklahoma Center for Nonprofits but also chair the board of the National Council for Nonprofits. So many Oklahomans have similar stories and more of rising to meet some of these historic challenges, but I share mine with you to underscore the seriousness of the current situation: During my more than 30 years of nonprofit leadership, I have never seen anything like the funding crisis currently impacting nonprofits. Due to a combination of Executive Orders at the federal level and Department of Government Efficiency efforts at both the federal and state levels, nonprofits are experiencing unprecedented budget cuts in the form of cancelled grants and contracts, delayed payments and other disruptions to planned funding. Oklahoma nonprofits across the state are reporting millions in related cuts to their budgets, and any more cuts are expected. Many of the policies that set these cancellations in motion are being challenged in the court system, but even delays can have catastrophic impacts on nonprofits and the critical services they provide to Oklahomans. Nonprofits across the state are mobilizing quickly to analyze staffing, service offerings, contracts they have with their own vendors, real estate leases and much more to identify how they can pay their own bills and stay in business. Some experiencing major cuts are looking at how to consolidate or even shutter, and these concerns are guaranteed to become considerably bleaker as time marches on. As a reminder, nonprofits are granted our special tax status because we have proven to the government that we are established for the public good, very often delivering a service to the population that the government may otherwise provide if not for the presence of that nonprofit. Federal, state and municipal governments will support the cost of that work through government grants and contracts. As a national average, government grants and contracts make up about one-third of nonprofit funding, according to the National Council of Nonprofits. Make no mistake that the abrupt cessation of these dollars will lead to an increase in hunger, homelessness, poverty and countless other negative impacts in an already need-intense state, in addition to the economic impacts on the vendors, landowners, employees and others who depend on revenue or paychecks from nonprofits to stay afloat. After all, the nonprofit sector is the third largest non-government employer in Oklahoma. So, what can Oklahomans do in the face of all this? As always, we encourage you to raise your voices. Call your elected officials. Do as much as you can to give a bit extra to your favorite cause. However, very importantly, more than ever, now is also a wonderful time to support your local economy by donating your time and talents. Through all these changes, nonprofits are experiencing increased needs for professional services such as legal, human resources and accounting services, among others. A trusted counselor serving on the board or otherwise in a volunteer capacity is not only invaluable in terms of operations but can help offset costs. Even if you do not have one of these skillsets, consider reaching out to your favorite nonprofit to see how you can volunteer. The national value of volunteer time is an impressive $34.79 per hour, according to the Independent Sector, so your time can make a difference not only for a nonprofit’s bottom line during these challenging times but also for the individuals that nonprofit provides much-needed services for every day. Yesterday, today and tomorrow – we are all in this together!

Coming off an election year, it has been hard to miss news stories lamenting low voter turnout and disenchantment with the political process. Americans – including Oklahomans – report numerous explanations deterring a visit to the ballot box, from busy schedules to a feeling every vote doesn’t make a difference, to other obstacles. Late last year, multiple news outlets reported Oklahoma experienced among the lowest voter turnout numbers in the nation. Decreasing voter turnout is a weighty matter in itself that must be addressed, as voting for elected officials, of course, is a cornerstone of the democratic process. However, voter turnout can also serve as a key measure in engagement in public policy as a whole, and there are so many other important ways in addition to voting that we can – and should – make our voices heard. In Oklahoma, legislative session is well underway at the State Capitol. The process where a bill becomes a law can seem daunting, but in reality, it all works best when more of us bring our unique perspectives and let our elected officials know what’s important to the Oklahomans, they dedicate their time and talents to serve. At the Oklahoma Center for Nonprofits, we just organized our annual Nonprofit Advocacy Day at the Capitol, during which time more than 100 nonprofit professionals from across the state joined with us to help inform and educate legislators not only on issues important to the nonprofit sector but also particular causes, from food security, to child advocacy, to women’s health, to post-incarceration rehabilitation, to animal welfare and much more. Participants ranged from individuals who had never before visited the State Capitol to seasoned advocates (and everything in between). These nonprofit leaders shared their passion and – very importantly – their expertise with the legislators who work on the issues important to them. After all, just like the rest of us, legislators may be extremely knowledgeable in their own fields of agriculture, banking, education, and so on – but no one person can be an expert on everything. So, legislators depend on authorities in their fields for education so they can make the best possible decisions while voting on bills at the Capitol. This is where we all come in! Just like each of us can make a difference at the ballot box, we can make a difference by sharing our opinions and expertise with our elected officials. But we must be present to win. If you feel a certain way about a given issue – or, even better, a specific piece of legislation – pick up the phone, send an email or schedule a meeting with your state legislators. If there is a particular cause or issue that is important to you, and you’d like to learn how you can make your voice heard by lawmakers, it’s also a great idea to reach out to an Oklahoma nonprofit working in that space. These nonprofits are likely following the topic and can provide information as well as ways to get involved and make your voice heard.

As we look around, we are surrounded by newness – a new year, new presidential administration, new Congress, new state legislature and new opportunities and challenges. As they say the only thing constant is change, but, in some cases, what remains the same are the issues we must fight for to help make Oklahoma the best state it can be. Oklahoma is a state of great need. We are ranked 49th in the nation in education 46th in public health. We fall in line sixth for poverty; in fact, one in five Oklahoma children live at or below the federal poverty level, according to U.S. Census data. These problems do not occur overnight, and there is no one-size-fits-all solution to solve them. They are familiar to us and even more familiar to our neighbors who live with these issues every day. Nonprofits are central to addressing these issues. While some nonprofits can be eligible for various forms of government funding – decreasing dramatically after the end of COVID-related support – many nonprofits rely on donated and earned income sources to stay afloat and provide what can be life-saving services to Oklahomans. For many, cutting staff and budgets can have catastrophic consequences. As we start 2025, the nonprofit sector is as vital to our citizens and to our economy as ever. However, in some ways, the situation is dire. The economic effects of COVID, combined with historic inflation, unprecedented facility costs, high interest rates and other challenges are delivering a one-two punch for nonprofits, which are experiencing not only the same hit to their pocketbooks as businesses and individuals but also seeing drastic decreases in donations. Fewer Americans are making charitable donations and in smaller amounts than earlier in our lifetimes – the share of U.S. households reporting donating to nonprofit organizations has tumbled in the span of one generation, with fewer than half (about 30 percent) reporting donations in 2023 as compared to 2000. Further, in many cases, philanthropic totals in recent years are skewed by major donors offering very large gifts. This is wonderful, needed and more appreciated than the sector can say. However, relatively speaking, these gifts are often concentrated with a relatively small number of organizations, and there is much more work – and more good – to be done. Volunteerism is also down – more than a quarter of people involved in volunteering before the pandemic ceased volunteering during the pandemic, according to the Urban Institute, and numbers are not bouncing back. In 2023, almost half of nonprofit CEOs reported volunteer recruitment was a major challenge for their organization. All these things together suggest that, in addition to economic challenges and increased demands on our time and attention, engagement with the nonprofits that buoy our communities has room to bounce back. Fortunately, as someone who has spent her life volunteering for nonprofits who is also entering her 15th year leading the Oklahoma Center for Nonprofits, I happen to think the Oklahoma Standard can see us through these challenges as it has seen others through challenges in the past. But nonprofits can’t do it alone. This year, let’s all resolve to find a bit of time to volunteer and donate what we can to a cause near our hearts. And, if that’s just not possible right now, call your state senator or representative during legislative session and let them know how important your favorite nonprofits are to you and your community. Together, we can all make a difference.

I had the absolute privilege of attending Philanthropy Southwest’s 76th annual conference in Santa Fe, New Mexico, this past week with 550 other professionals. The conference, themed ‘Unity in Action,’ is held each year to foster collaboration in the Southwestern philanthropic sector, providing a unique platform for meaningful connections and shared purpose. This year, I was delighted to discover multiple breakout sessions dedicated to capacity building, with a strong focus on the role funders play in supporting this critical area. Without the resources for professional development and leadership growth, nonprofits cannot fully maximize the investments made by foundations. When nonprofits aren’t operating at their full capacity, the impact of those investments is diminished. According to “A Network Approach to Capacity Building,” published by the National Council of Nonprofits, “Capacity building is whatever is needed to bring a nonprofit to the next level of operational, programmatic, financial, or organizational maturity, so it may more effectively and efficiently advance its mission into the future.” Nonprofits can easily fall into the trap of focusing solely on the present, without adequately preparing for their future. That is what capacity building is really about – providing stability through professional development that equips nonprofit leaders with the skills they need to increase their organization’s impact and long-term stability. The Oklahoma Center for Nonprofits believes wholeheartedly that capacity building is vital for the success and growth of nonprofits in Oklahoma. The Center was founded for that exact purpose - our mission is “empowering nonprofits to achieve excellence in their missions.” I am encouraged to see this topic gaining momentum nationwide and sincerely hope that foundations and private donors will continue to prioritize and support this vital aspect of nonprofit funding. For more information about capacity building and its importance to the nonprofit sector, visit https://www.councilofnonprofits.org/running-nonprofit/governance-leadership/what-capacity-building.

On August 17, we celebrated National Nonprofit Day, a day dedicated to acknowledging the profound impacts nonprofits have on our communities and the outstanding work they provide year-round. While this celebration occurs just once a year, the contributions of the nonprofit sector are felt daily, underscoring their role as a cornerstone of societal support and development. In Oklahoma, nonprofits form the third-largest employment sector. They provide jobs, foster volunteerism and stimulate local economies. The employment opportunities they create are diverse, ranging from administrative roles to specialized positions in fields such as healthcare and education. I feel incredibly fortunate to be surrounded by such a talented and dedicated group of people who have chosen to use their skills to make a difference in the nonprofit sector. Each day, I witness firsthand the resilience and unwavering commitment of my peers, who tirelessly work to support and uplift our communities. Despite the challenges many nonprofit professionals face, our efforts are a vital part of the fabric that holds our society together. As we celebrate National Nonprofit Day, I am filled with pride and gratitude. To my fellow nonprofit professionals – thank you for your hard work, your heart and your dedication. You are the unsung heroes, and I encourage you, not only today, but every day, to celebrate the essential role you play in making our communities a better place.

Nonprofits across Oklahoma are crunching the numbers and adjusting their budgets to comply with a new federal salary rule. Starting July 1st, the minimum an employee must earn to be exempt from being paid overtime is increasing from $35,308 to $43,888. On January 1, 2025, the salary threshold will jump again, to $58,656. The U.S. Department of Labor estimates that 460,000 nonprofit workers will be affected by these adjustments, and it will cost employers some $44.8 million. In a sector that operates on slim margins, complying with the new rule has the potential to put strain on already overtaxed organizations. The nonprofit sector employs more than 12.5 million people, making it the nation’s third largest employer behind the service and retail industries. Generally, our industry supports boosting incomes for workers, including our own teams, but the practicalities of doing so remain difficult in a state where minimum wage is $7.25 an hour and many leaders of smaller nonprofits may not make more than $50,000 a year. The Department of Labor estimates that nonprofits are more likely than our for-profit counterparts to feel the impacts of the overtime rule. About 19% of nonprofit employees are thought to be reclassified as non-exempt, compared to around 14% of for-profit employees. Because nonprofits cannot pass these increased salary costs along to customers, some might be forced to cut services to make up the difference. These potentially mission-altering decisions come at a time when nonprofits are struggling to retain employees, pay competitive salaries and navigate inflation’s impact on their budgets. Those with government contracts and grants that pay less than it costs to deliver services are already struggling to make up the cost difference through appeals to donors and philanthropists. The new rule exacerbates these budget shortfalls. The new regulations will require nonprofits, and for-profits alike, to adjust and reassess. Organizations will need to look at their staffing practices and get a real sense of how many hours their salaried employees work and how effective they are with their time. The ruling could lead some to find new efficiencies and refresh outdated workflow processes. In the end, I know the nonprofit sector will find ways to adjust while continuing to deliver critical services throughout Oklahoma.