Hi, Everyone
It's another update from AMIBA. Most urgently, please pay close attention to the item about Unchained, our upcoming national campaign that hits fever pitch in November--and respond soon!Hurricane Relief
I am so very heartened to see the outpouring of support of all kinds by communities and organizations to embrace victims of Hurricane Katrina. As I’ve been considering possible ways AMIBA might be able to respond to the need for help, I’ve come to realize that our best response may, indeed, come from you, our local IBAs. We will make no demands of you, however I’ve seen some wonderful gestures being made that I think are worth passing along as food for thought, and I encourage you to assess whether your IBA can respond with goods, services, or funds. From one community to another.
The Albuquerque IBA is matching contributions of its members up to $500, which in turn will be matched by one of their organizational sponsors, PNM (energy company) and given to the Red Cross for Katrina relief.
The Austin IBA is helping spread the word through the IBA about a local job fair for Katrina refugees.
Our friends at the Council of Independent Restaurants of America (CIRA) are encouraging their member restaurants to consider whether they can help accommodate/employ displaced restaurateurs and employees from New Orleans—I read that about 20% of the New Orleans labor force is in the restaurant business. CIRA is teaming with the Red Cross and Southwest Airlines and currently is negotiating with some hotel chains to accommodate and employ the displaced in communities with jobs. It’s a great gesture within the industry, but it also may serve as an important means to preserve a unique culinary culture at risk for otherwise fading into history.
Unchained is Quickly Approaching!
Our Alliance-wide-and-beyond Unchained campaign is looming—this year’s date is November 19, and the time is now to begin your planning. This is one of our two national campaigns--we time it to get folks thinking about where they choose to spend their holiday dollars. We’ve already sent the national magazine press releases and have put out the word to our trade association and organizational allies. This year we’ve integrated an online database into AMIBA’s website that should help us to better manage and monitor campaign participants (we learned from a great dilemma of this past Independents Week--participating communities that did not let us know they were participating!). As Unchained mainly is a media and public education event, participating is relatively easy for any IBA -- regardless of how long you’ve been in existence -- and it’s a great way to pique interest in your organization—both with citizens at large and potential members. We provide templates and how-to's for everyone. This one is a must for all IBAs.
If you are unfamiliar with Unchained, I encourage you to read through the general information on the web page referenced below, and the participant information will help you greatly. As always, we’re happy to answer questions.
New Alliances
A big welcome the following new AMIBA affiliates--we should have more to announce shortly!
Flagstaff IBA (Flagstaff, AZ)
Harrison County IBA (Harrison County, IN)
Vest Pocket Business Alliance (Salt Lake City)
Independent America News
Hanson Hosein and Heather Hughes, who traveled the two-laners of America to film a documentary about the state of locally-owned independent businesses around the country, are readying the film in time to submit to the Sundance Film Festival. They have other festivals on their radar screen and also should be gaining some airtime on Nightline this fall. In a recent post to their website, IndependentAmerica.net, H & H rank the top independent American communities from their trip. Topping the top? None other than IBA town, Austin, Texas. Also making their list was new IBA town, Flagstaff, Arizona.
Gleaned from news stories--further evidence of why we exist…and why the IBA voice is needed!
“Strong local support for the Wal-Mart Supercenter has come from Goldie Wells, a community leader active with Concerned Citizens of Northeast Greensboro (NC). At the June meeting she pleaded with city council members to help secure the Wal-Mart deal to bring more economic life to the area.
Earlier this month, she filed as a candidate for the open District 2 seat after Councilwoman Claudette Burroughs-White announced she would not run for reelection.
“I’m just pleased about the prospect of Wal-Mart coming to Greensboro,” she later said. “We really need the development.” When asked to comment on the store’s potential effect on small, independent businesses, she
responded: “I really don’t want to get into that.””
And…
“Chains are not all bad news for downtown. Economics Dept. Head in the Terry College of Business (University of Georgia) William Lastrapes believes competition is beneficial to consumers.
Chain stores view downtown as a viable place to do business, allowing more choices for consumers, he said.
Their presence fills building vacancies, keeps property values up and provides diversity in the bar-filled district, Lastrapes said.
“In general, chains are a good thing for downtown Athens,” Lastrapes said. “Although it may ultimately mean local businesses go under... it will urge local businesses to do an even better job.”
N.B. ~ If you see such reporting locally, do respond—don’t let opportunities to get your IBA voice heard slip by! You can help us to amass a great resource for all IBAs—send us a copy of your letters to the editor or opinion pieces along with an explanation of to what your letter responds. We plan to collect them and provide living examples that all IBAs can reference. We are happy to help you craft your response, too! In addition, we want your press releases. We'll create a referential compendium to cover a variety of topical areas. Thanks!
The Santa Fe Alliance currently is on the frontline of a Wal-Mart battle. I recently contacted David Kaseman to get a status report [they got a reprieve, as “the council split and the mayor delayed approval until a better traffic study can be presented.” The Alliance is working hard to get another vote. I also asked David how AMIBA could best help their effort, and his request was to pass this along to all IBAs:
"Something that we missed when we first started being the local alliance was looking at the prevailing ordinances and not going to work immediately and changing them. As a result we really never stood a chance [in the Wal-Mart battle] because our ordinance allows 150,000 sq ft. so this is only about land use and not economic impact. We can try to get it stopped because of traffic or the looks of the building but nothing else. Could you look at alerting groups and making this a priority in your over-all package? I think this would make a bigger difference than almost anything else."
Exactly the kind of critical feedback we need. We pass this along wholeheartedly and, along with Stacy Mitchell of the New Rules Project, are diving into pulling together a primer/guide to what to look for in current policy. We’re also integrating more direction into our start-up handbook to get new IBAs focused on all three prongs of the IBA strategy from the beginning.
More feedbackIn August I undertook a project to interview some members of city government in communities where we’ve had an IBA operating for several years, the idea being to gain their perspective on the effectiveness of the IBA for the community overall and how they perceive the relationship between the City and the IBA. I hope to complete this project in September and pass along a report to all IBAs. I’m pleased to report the feedback I’m receiving from these members of local government thus far exceeds my expectation, and it certainly will remove any fear you or your independent business members may have about “getting political.” Here's a teaser from one interviewee, a senior economic development staffer--when I asked for advice to community-based business owners who are uneasy about ruffling anyone's feathers, here was the reply:
You pay taxes—get in their (the City’s) face.
We'll put the information into a format you can use, with direct quotes and information that should be of great help in making your case for engaging with local government long term and pursuing funds from both foundations and the City—useful for every IBA.
Eminent Domain Update: Congress to Consider Eminent Domain LegislationThe recent U.S. Supreme Court decision in Kelo v. City of New London reaffirming longstanding eminent domain standards continues to provoke strong debate and new legislation in Congress. Multiple bills, appropriations amendments, non-binding resolutions, and even a constitutional amendment have all been introduced in the weeks since the June 23, 2005, decision.As Congress rushed to complete work on numerous items before the month-long August recess, Rep. Henry Bonilla (R-TX) introduced the most sweeping proposal yet, the Strengthening the Ownership of Private Property Act (H.R. 3405). The bill would bar all federal economic development assistance to any state or locality that uses the power of eminent domain to obtain property for private commercial development. House Agriculture Committee Chairman Bob Goodlatte (R-VA), a cosponsor of the measure, indicated that his committee would be the first to hold hearings on the issue following the recess and predicted the Congress “would move quickly.”
Other bills have been introduced designed to prohibit federal funding for economic development projects that use eminent domain, but according to Rep. Bonilla, the new legislation would go further by cutting off all federal economic development funds if eminent domain is used for private commercial development regardless of whether the funds specifically support the project. H.R. 3405 has 41 cosponsors. Given the broad nature of the legislation, it has been referred to several committees, including Transportation and Infrastructure, Resources, and Financial Services.
While hearings begin in the House, the Senate is poised to take up an eminent domain amendment when the Transportation-Treasury-HUD spending bill (H.R. 3058) is voted on after the recess. The House version of the spending bill contained language offered by Rep. Scott Garrett (R-NJ) to “prohibit funds from being spent on enforcement” of the Kelo decision. The Garrett amendment was approved 231 to 189 just days after the decision.During consideration of the TTHUD bill by the Senate Appropriations Committee, Sen. Christopher Bond (R-MO) proposed similar language to prohibit federal spending for economic development projects using eminent domain. The Bond amendment would have specifically exempted projects involving transportation or blight. At the urging of Sen. Dianne Feinstein (D-CA), Sen. Bond withdrew his amendment in the committee but indicated his intention to offer it on the floor when the full Senate takes up the bill in September.
These initiatives join other measures introduced in the immediate aftermath of the Kelo decision. In the Senate, Texas Republican and member of the Judiciary Committee Sen. John Cornyn took the lead by introducing the Protection of Homes, Small Businesses, and Private Property Act (S. 1313). The bill would limit federal use of eminent domain to “public use” which the bill defines as “not to be construed to include economic development.” The bill also applies to all “exercises of eminent domain power by State and local government through the use of federal funds.” Companion legislation, H.R. 3087, was introduced in the House by Rep. Phil Gingrey (R-GA). Congressman Gingrey has also introduced H.R. 3268 which would exempt eminent domain compensation from federal income tax.The House Judiciary Committee is also a likely venue for future congressional action on eminent domain. House Judiciary Committee Chairman James Sensenbrenner (R-WI) and Ranking Minority Member John Conyers (D-MI) introduced the Private Property Rights Protection Act (H.R. 3135). Like the Cornyn bill, the legislation seeks to stop eminent domain from being used for economic development. Under the Sensenbrenner bill eminent domain would be prohibited for “any activity, including increasing tax revenue, other than making private property available for use by the general public.” No hearing has yet been scheduled on the legislation.
Fervent activity continues in communities around the country to halt the use of eminent domain for private use, and most proposals I’ve seen stipulate that no public money should be used for projects intended for non-public purposes.
Debunking Myths about Non-profits
Myth: "Nonprofits can't make a profit." The IRS
guidelines clearly state that profits can't be distributed
to nonprofit board members (as corporate profits are to
shareholders), but they don't say that nonprofits can't
have profits.
Fact: Surpluses ("profits") are needed
by nonprofits to even out their cash flows, to provide
reserves for emergencies, and to allow them to pay for
equipment, research, staff development, building
renovations, and other necessary investments.
Myth: "Nonprofits can't charge for their services."
Fact: Many nonprofits exist mostly on fees charged, such
as nonprofit preschools that charge tuition, or community
choirs that sell tickets to their concerts.
Myth: "Nonprofits can't lobby."
Fact: Nonprofits may not engage in any electoral activity--
they can't support or oppose candidates. However, they may support or oppose ballot
measures (such as for public school bonds or against new
immigration laws). In addition, nonprofits may encourage
legislators to support or oppose various pieces of
legislation-as long as such lobbying activities are an
"insubstantial" part of their activities. (more good info
at www.clpi.org, Charity Lobbying in the Public Interest).
And the IRS provides great information on what kind of “lobbying”
activity is allowed a 501c6 organization—directly from the horse’s
mouth: www.irs.gov/pub/irs-tege/eotopicl03.pdf
Myth: "A nonprofit budget has to be balanced."
Fact: In some years a nonprofit will want to budget for
surpluses, such as to create a cash reserve, or to save up
for new equipment. In other years the same nonprofit
might budget a deficit, for example, to do one-time
programs with windfall money, or to invest in a new
fundraising director, or a publicity strategy. Over time,
the financial goal of a for-profit is to maximize profits;
the financial goal of a nonprofit is to sustain sufficient
working capital for program continuance and strategic
choices.
Myth: "Nonprofits aren't important economically."
Fact: Surprisingly, nonprofits generate 6% of the US GDP (gross
domestic product), and employ 1 in every 14 American
workers. Nonprofits mobilize the efforts of an army: 83.9
million adults volunteering 15.5 BILLION hours each year
towards community and public benefit - the equivalent of
7.7 million full time staff. (Just to give a comparative
number, the total active military personnel in all
services (Army, Navy, Marines, Air Force) total 1.4
million.)
Program Focus: Group advertising
This is one of the benefits IBAs provide for their business members to help gain them more visibility in the community. Seasonal/event opportunities abound that lend themselves well to IBA group promotions. With the big boxes in cut-throat competition for dominance, the opportunity is ripe for group ads presenting the local options—part of your IBA’s public education components. Approach your members who sell items falling within a given thematic area to pool dollars for a group ad that identifies them as a source. Another option is for your IBA to run a more generic ad mentioning those business members. The bonus to those members is that your IBA does the ad coordination. A further option is recording a public service announcement using the event as a peg. While public and community radio stations generally don’t allow business promotion, you can craft your message to be broader and more general in nature (we’re always happy to help you with your messaging), and they may be willing to help you with your message, too.
The group ad concept lends itself well to many events throughout the year. Keep in mind seasons for:
- Weddings/graduation/events (formal wear shops, florists, bakeries, stationery/printers, restaurants, reception venues, musicians, caterers, liquor stores, jewelers, gift stores…)
- Spring yard/garden…also fall (nursery/garden centers, landscapers, hardware stores, rental centers, farmers market, patio furniture shops, places to find pottery and patio lighting, barbecue grills…)
- Spring cleaning (closet organizers, cleaning services, cleaning supply stores, second-hand stores, community organizations taking used items, newspapers to advertising yard sales…)
- Summer vacationing/patio parties (sporting goods, travel agents, swimwear, toy stores, grocers/delis, caterers, liquor stores, barbecue grills/supplies, meat markets, farmers market…)
- Back to School (office supply, craft stores, outdoor stores, tutors, toy stores with educational items, clothing stores…)
- Holiday gatherings (grocers, liquor stores, deli, caterers, party store/home décor, florists, bakeries…)
- Holiday shopping (options abound here!)
- New Year’s resolution (gym, sporting goods, health/wellness, yoga centers, food co-op, CSA, diet centers, doctors...)
Any of these options present an opportunity to advertise your IBA’s Community Benefit Card/citizen membership discounts!
Send AMIBA Your News!
One of the best and easiest ways to generate excitement and energy among your IBA peers across the Alliance is to let them know what you are doing locally! Please include us in your local IBA updates to your members (if you haven't already done so), or send along an update via email periodically. We'll be sure everyone gets to hear about and gain inspiration from your good work!
Jennifer Rockne, Director
American Independent Business Alliance
222 South Black Ave.
Bozeman, MT 59715
406-582-1255
info@AMIBA.net
www.AMIBA.net