Examining_Govenment_Regu;_Ations

Examining Government Regulations Sandra Christensen HSM/210 04/11/2012 Adam Will Examining Government Regulations Two very important human service agencies in Spokane, Washington, are Spokane Neighborhood Action Program (SNAP) and The Salvation Army. After researching the government regulations and standards, both organizations fall under similar guidelines that affect the populations they serve, which are the homeless, low income, and working poor. Both agencies are 501(c) (3) and are non profit organizations. To be tax-exempt under section 501(c ) (3) of the Internal Revenue Code, the organizations have to be organized and operated for exempt purposes only and no earnings can go to any private shareholder or individual. “Organizations described in section 501(c) (3) are commonly known as charitable organizations. Organizations described in section 501(c) (3), not including testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170. The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c) (3) organization's net earnings may be used to the benefit of any private shareholder or individual. If the organization engages in any benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction. Section 501(c) (3) organizations are restricted in how much political and legislative (lobbying) activities they may conduct.” (IRS charities and Non-Profits Exemption Requirements Section 501(c)(3) Organizations, 2012). Nonprofit organizations must comply with Federal and State regulations and reporting requirements. Many of these regulations are complex and change frequently, so it is important to understand all the requirements applicable to the organization and to stay current with the changes. Both agencies (SNAP and The Salvation Army) rely on federal and state funding and must follow federal and state guidelines. Washington State has no state income tax; therefore, non profit organizations are liable for business and occupation taxes. Once you have become a nonprofit corporation, you may begin applying for tax exemptions. Additionally, both organizations rely on United Way monies. United Way, every year, runs a campaign within the local community to acquire cash donations for allocations to the above two, and other organizations. The money raised must follow donation guidelines, therefore these agencies (SNAP and The Salvation Army) can only spend the money they receive from United Way on the people they serve, and not on salaries, utilities, their own personal gain, or other expenses the agencies might have. Even though the federal government provides some helpful “aid to low-income families that are really struggling to stay warm in the winter through the Low Income Energy Assistance Program (LIHEAP)”, (Need help paying Bills Project Share, 2010), this federal program only reaches about one in five eligible families. One of SNAP’s many programs is called Project Share, which is an energy bill program. Project Share is a local fuel fund that that was created from donations from customers and utility companies. The program was established to provide emergency energy bill assistance to those people and individuals that would not otherwise be eligible for assistance. It also helps those people who have exhausted all other available energy assistance sources, including government assistance. Payment from Project Share is limited to the minimum amount needed to address an emergency for electric or gas bills, and the total dollar value of aid provided can not exceed $300 for any assistance. This program can only be used once a year per family. This is one resource that people can get for assistance. SNAP also receives money from the Economic Development for Financial Access and must comply with the state of Washington grant guidelines. SNAP receives grant money and must follow the strict guidelines according to the grant specifications. SNAP must also comply with federal guidelines regarding grant distribution money. The Salvation Army is an evangelical part of the Universal Christian church. Their mission is to preach the gospel of Jesus Christ while meeting human needs. The Salvation Army is a nonprofit, tax-exempt charitable organization also operating under Section 501(c)(3) of the Internal Revenue Code. Donations are tax-deductible with the intent of offering assistance for transitional housing. The Salvation Army must provide “transitional housing in a structure designed for the targeted population of homeless families with children whose incomes are at or below 50 percent of the area median income. In addition, operating subsidies can not exceed 50 percent of the project's core operating budget for the year, and rents shall not exceed 30 percent of the income of the targeted population” (The Salvation Army, 2009). Some obstacles that prevent SNAP and The Salvation Army from meeting the needs of the homeless, low income, and working poor is that there is no money available and no one has money to donate. The Federal government does not have money, and the state of Washington has a $500 million dollar budget gap as of April 5, 2012, which will affect these agencies. Lawmakers are trying to close that $500 million budget gap, but have not agreed on how to do it. As of April 11, 2012, the mayor of Spokane held a press conference stating that the city of Spokane’s budget will be $10 million dollars short next year. This will affect many of the people that are the population I discuss in this paper and that live in the city, for there will be no money to help them.  Future trends and changes to consider to the social policy that may be necessary to resolve the issues for the target population to have their needs met would be education. I think that educating the public, as well as the homeless, low income, and working poor is a way to begin resolving some of society’s current issues. Employers are requiring more education in order to get or keep a job. I know that here in Spokane, Washington, people are loosing their jobs and are being forced out of their homes. Obtaining an education would better everyone’s life skills while raising the level of self worth which would help them keep their jobs and stay in their homes. References CITIZEN MEDIA LAW PROJECT. (2007). Forming a Nonprofit Corporation in Washington. Retrieved from: http://www.citmedialaw.org/legal-guide/forming-nonprofit-corporation-washington IRS. (2012). Charities and Non-Profits Exemption Requirements Section 501(c)(3) Organizations. Retrieved from: http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html KREM NEWS. (2012). Retrieved from: http://www.krem.com/news/northwest-news/House-members-to-return-to-Olympia-next-week-145533355.html Need Help Paying Bills. (2009). Free Home Heating Oil Program Oil Heat. Retrieved from: http://www.needhelppayingbills.com/html/free_home_heating_oil_and_fuel.html Need help paying Bills. (2009). Project Share. Retrieved from: http://www.needhelppayingbills.com/html/spokane_county_assistance_prog.html Spokane County Washington. (2012). Retrieved from: http://www.spokanecounty.org/communitysvcs/hcd/content.aspx'c=2220 The Salvation Army. (2009). Retrieved from: https://donate.salvationarmyusa.org/sslpage.aspx'pid=206 The Spokesman-Review. (April 11, 2012). Condon vows not to raise taxes despite forecast. Retrieved from: http://www.spokesman.com/search/'q=budget+for+spokane e Washington State Legislature. (January 12, 2010). Retrieved from: http://apps.leg.wa.gov/WAC/default.aspx'cite=365-120&full=tru Washington State University. (2003). 501(c) (3) Legal Requirements. Retrieved From: http://ext.wsu.edu/admin/nonprofit.html