The Corliss Institute - Charitable nonprofits: A little take, a lot of give

Last week, on the second floor of 420 E. German St., Billy Gifford worked in a small group preparing boxes of tissues to
be packaged. Gifford is one of about 600 people that benefit daily from Herkimer ARC programs, not to mention the 400
people employed with the nonprofit. "They provide me safety and they give me work to do," said the 21-year-old West
Winfield resident. "They teach me new stuff every day, and I learn a lot."
There's no dispute that nonprofit organizations help the community through programs, grants and job creation as
employers. But when it comes to tax-exempt properties, charitable nonprofits often become the scapegoat. The ARC
owns 35 tax-exempt buildings in Herkimer County, ranging from housing facilities to manufacturing operations. The East
German Street building is partially exempt because it houses other businesses. "We're providing work opportunities for
people in an integrated setting for people with and without disabilities," ARC President and CEO Kevin Crosley. And
without the tax exemption, the organization would be "in a very serious financial crisis, Crosley said. "The importance of
the tax status is such that it keeps our business alive and allows us to provide services," Crosley said. "Not-for-profit is a
tax status, it's not a business strategy."
Charitable nonprofits raise property values, increase the quality of life and generally take up 5 to 10 percent of a tax
base, a relatively small amount, said David Thompson, National Council of Nonprofits vice president of public policy.
They also often are contracted to provide services the government cannot. "Our strong view is that cities do better
because of nonprofits, not despite nonprofits," Thompson said. "In many ways we reduce the burden on the
government." And as financial times get difficult, the need for charitable nonprofits rises, and they become vital in
helping the community make ends meet.
The Community Foundation of Herkimer and Oneida Counties employs 10 people and in 2013 the nonprofit distributed
494 grants totaling nearly $4 million to the community in the areas such as economic development, enhancing
education and improving quality of life.