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Sep 27

Innovative ways to tackle today’s top work challenges

By Sponsor Insight

by Ian McManis, marketing manager, Barnes Dennig

With today’s not-for-profit professionals juggling more priorities than ever, time is at a premium. That’s why Barnes Dennig has hosted a series of concise workshops designed to answer key questions to challenges not-for-profits are facing across a broad range of topics. The following include recaps of the sessions as well as links to access the full recordings:

Cybersecurity: How NFPs protect themselves and their donors

Everyone is at risk to falling prey to ransomware, whether it’s their home office computer or a major oil pipeline company. But the more prepared you are for an attack, the more likely you are to avoid it. In this session, Robert Ramsay, Barnes Dennig director and cybersecurity specialist, shares how to best protect yourself and your organization. Highlights include:

  • Ways to protect against ransomware attacks
  • PCI DSS standards: How to make sure your organization is compliant when soliciting donations online
  • How to keep donor secure and private
  • What you need to know about the California Consumer Privacy Act (CCPA) and how to be compliant

Download the presentation and watch the full recording here.

The new lease standard: Why NFPs need to start planning now

Maybe you’re ready to implement the new lease accounting standard today. Maybe it’s still at the bottom of your never-ending to-do list. No matter where you fall on the spectrum, Brad Sack, Barnes Dennig senior manager and NFP assurance specialist, covers the basics, using real-life examples and experiences from his clients to provide insights. Here is an overview of the session:

  • What do the updates to the lease accounting standard mean for my organization? When do they go into effect?
  • What changes should I need to make today to make sure I’m in compliance?
  • How can I build and manage a process to keep my team and me on track?

Download the presentation and watch the full recording here.

NFP Tax & Accounting Lightning Rounds – 990s, ERC, QBO for NFPs

Join NFP Tax team leader Paula Hume, CPA; COVID-19 team leader Cheryl Ganim, CPA; and QuickBooks specialist Kathleen Haney, MBA as they break down some of the most common accounting and tax issues NFPs face. The 15-minute segments include:

  • It’s just a 990: How hard could it be? Turns out there’s a bit of strategy involved.
  • Wait, did you say we could be eligible for the Employee Retention Credit in 2021 even if we weren’t for 2020? Take the ERC Quick Test and come prepared to discuss how to determine eligibility and calculate the amount.
  • A lot of NFPs use QuickBooks Online (QBO): How can I use it to help my organization grow smart?

Download the presentation and watch the full recording here.

Virtual Auditing 101: How NFPs avoid common issues

Every organization needs audits run for them, but not all have had a virtual audit. Our world is moving more towards virtual every day. While virtual work has a wide list of benefits, there are some downsides as well. Join Senior Manager Kara Wysinski, CPA, and Senior Associate Tricia Hart, CPA in going over the pros and cons of virtual auditing. Here are a few of the highlights:

  • Changes to audit approach
  • New audit risks
  • Changes in internal controls
  • Best practices for a remote audit

Download the presentation and watch the full recording here.

Additional resources and upcoming events

Our nonprofit team works hard to bring the best and most relevant resources to our communities. Barnes Dennig is hosting Measurement Resources Company and SureImpact, Inc. founder and CEO Sheri Chaney Jones as she leads two full workshops in one virtual event:

  • Data-driven strategic planning for fundraising success
  • How to turn data into dollars: Demonstrate your social impact

Learn more and register here.

Every other year, we collect responses from regional non-profits on compensation, benefits, retirement plans, governance and other metrics and release the findings in a free virtual event.

Each attendee will receive a copy of the 2021 Not-for-Profit Compensation & Benefits Benchmarking Study, which will help them compare their organization to others in the region. A well-thought-out compensation and benefits package helps not-for-profits better fulfill their mission.

Learn more and register here.

Sep 20

From manager to mentor: Taking leadership to the next level

By Sponsor Insight

by Allie Petty-Stone, firm administrator, Alerding

If you think about how many job titles there are in the world, your head could spin. Yet, out of all of them, many employees aspire to achieve the title of “manager.” That simple designation comes with a sense of accomplishment and purpose, and checks off a big milestone in your career. It indicates that your bosses recognize your qualifications and skills to lead people and/or processes for company endeavors.

So, you finally get that promotion to manager. How exciting! You’ve finally achieved that rung on the ladder — all of the hard work, dedication, and perseverance has finally paid off. However, it means so much more. Being a member of management not only means that you have a higher responsibility for the delivery of services and guidance of people within your organization, it also means you have the opportunity to make an impact beyond the work — mentoring other people.

Managing on its own is challenging as your new title means you’re taking on new tasks with your peers and subordinates looking on. The pressure can be great. How do you manage employees who were previously your peers? You are now a part of a group of decision-makers that can impact the organization and could ultimately be deemed responsible for the success or failure of your team. Responsibilities are greater as you are now guiding the ship, and your mates need to know how you will lead them. Will this new title change how you work and will this impact them? Will you evoke change? Will you be available?

It breaks down to a manager’s capacity to be more than just another authority figure. The position presents an opportunity to go beyond an authoritative presence by serving as a mentor. Great mentors are confident in their own abilities. They are not intimidated by the skills of others, are resourceful in meeting needs, offering employees opportunities to grow, and allowing room for error. It may be difficult and time-consuming at first, but the end goal should be a team that has evolved stronger as a result of your efforts. Being accountable and resolving issues together helps build critical thinkers which, down the road, also can result in more innovative and effective solutions. Overall, everyone learns in some capacity and a happy mentor finds fulfillment by witnessing those successes.

Making a long-lasting impact

I often reflect on those supervisors I had in my early career and how it impacted my work ethic and interactions with others. Although I had some dreadful managers, I was fortunate to have some impactful ones who also became my mentors. I called them my “mother hens” and still speak of them to this day. They were patient and taught me all they knew, passing on invaluable skillsets . Those interactions shaped me into a better employee and gave me a sense of passion for my work. I would not have the patience I have today if it weren’t for their kindness. I’m so grateful for them and, due to their generous nature, I have committed myself to seeking ways to pay it forward.

Keep in mind that people are always watching and listening. Your ethics and integrity are revealed in your interactions and how you manage can be memorable.

Here is an example of how leadership impacted my daughter, who was employed as a barista for a global coffee chain. She worked with a supervisor named Katie. She loved Katie for her spirit, tenacity and unwavering desire to do a great job. Katie led her shift teams with enthusiasm and was a high performer while expecting the same from her team. Here is the real clincher: When Katie was promoted to manager, she asked that she be placed in the worst performing store. You see, it is one thing to move to a successful store, thereby initially inheriting someone’s else’s accomplishments and endeavoring to continue it. However, taking on a known failure with a desire to transform it is quite another. That’s what sets managers and leaders apart. And people notice and carry that forward.

My daughter noticed and admired Katie for this pursuit. Katie left her mark. She made an impression. It transformed what my daughter thought about leadership, too. Now, I do not know if Katie had success in that new role, but I do know that she achieved a level of respect and admiration from my daughter and others upon hearing this story.

She impacted people she wasn’t even aware of. And THAT is the impact of great leadership qualities … you wind up impacting more than just those you know directly.

Sep 20

Participant Wellness in the Era of COVID-19 and the Effect on Nonprofits

By Sponsor Insight

by Kevin Kidwell, vice president, tax-exempt sales, OneAmerica

One unavoidable fact is how the pandemic divided people into two groups. The first group are financially stable and held onto their jobs during the pandemic. They have avoided spending money and were able to increase their savings effort. In fact, the U.S. personal savings rate hit a record high of 33% in April 2020, according to the U.S. Bureau of Economic Analysis.1

The second group didn’t fare as well. According to an Employee Benefit Research Institute survey, roughly one in 10 participants have taken a loan, hardship distribution or early withdrawal from their workplace retirement plan during 2020.2 Unfortunately, many more individuals didn’t have the benefit of this safety net, with a quarter of adults without a retirement plan according to a Federal Reserve report.3

This has had a great impact on our communities and the nonprofits that have served them. Need has increased, while the ability to provide services has changed or dramatically reduced.

While this sounds like bad news, we are optimistic because historical perspective of the 2008 recession shows the cyclical nature of our economy and how nonprofits recover.4

Short-Term Consequences

The economic effects of the pandemic forced nonprofits to cut more than 50,000 jobs in December 2020, according to a report from Johns Hopkins University, and it could take 18 months for nonprofits’ employment numbers to return to pre-pandemic levels, per ABC News.5

However, several of our clients have made great strides to ensure their nonprofit employees will continue to keep their jobs at least until the end of the year.

This economic impact of the COVID-19 outbreak will make it harder for some employees to achieve their short-term financial goals putting their long-term financial goals at risk.

Among those employees who say their financial situation has gotten worse during the pandemic, 44% believe it will take them three years or more to get back to where they were a year ago — including about one in 10 who don’t think their finances will ever recover.6

This year, 32% of nonprofit employees expect their employers to reduce program offerings and have hiring freezes, 23% expect pay cuts, 20%, layoffs and 17%, furloughs according to Eagle Hill Consulting, who polled over 500 nonprofit employees across the United States.7

Holistic Financial Wellness

Although we’re confident in the economic healing of nonprofits, many organizations will continue to experience impacts of the pandemic for some time.

There are steps nonprofits can take to support their own employees through continuing change, both now and as they stabilize in the future. Financial wellness will be increasingly important, and as the need for financial recovery will be great for some time, employers need to recognize their role in helping their employees achieve this.

For any organization, this starts by offering and reinforcing employees the basics:

  • Retirement plans
  • Competitive health insurance
  • Paid time off
  • Flexible spending or health savings accounts
  • Financial wellness education

These programs are important for overall employee productivity, health care costs and talent retention. In the 2021 Employee Financial Wellness Survey, PwC reported that of those whose financial stress increased as a result of the pandemic, 45% felt their financial situation had been a distraction at work. Taking this one step further, nearly three-quarters of employees experiencing financial stress also experience physical symptoms, which affects a businesses’ bottom line. People with financial stress tend to avoid getting health care, which could lead to worse health outcomes and higher health care costs later.8

Invest in Financial Education

In addition, by providing access to financial wellness education employers can also help their employees focus on specific goals, such as setting up an emergency fund, paying back retirement loans, reducing debt, and creating a realistic budget. This goes a long way in helping employees start to become more stable and regain confidence in their ability to get back on and stay on track.

By boosting employee financial confidence and offering support, you can have a positive impact on health care costs, retention, and productivity — ultimately making your organization stronger and healthier, too.

In Kevin Kidwell’s role as vice president of national tax-exempt sales, he works to provide ideas, knowledge, information – both technical and practical – in an effort to facilitate improved plan and participant outcomes. Kidwell has held various positions within the Retirement Services division since 1988. Beginning in 2000, his exclusive focus has been on health care and tax-exempt organizations.

  1. Pew Research Survey: Economic Fallout from Covid-19 Continues to hit Lower Income Americans the Hardest
  2. Federal Reserve System Report: Report on the Well-Being of U.S. Households in 2019, Featuring Supplemental Data from April 2020
  3. Pew Research Survey: A Year Into the Pandemic, Long-Term Financial Impact Weighs Heavily on Many Americans
  4. Nonprofit Quarterly: Deconstructing the (Not-So-Great) Nonprofit Recession
  5. ABC News: Study: Nonprofits lost 50,000 jobs last month from virus
  6. Pew Research Survey: A Year Into the Pandemic, Long-Term Financial Impact Weighs Heavily on Many Americans
  7. The Business Journals: Despite increases in charitable donations, half of nonprofit employees expect cuts in 2021
  8. PwC’s 10th annual Employee Financial Wellness Survey, PwC US, 2021

About OneAmerica®
A national provider of insurance and financial services for more than 140 years, the companies of OneAmerica help customers build and protect their financial futures. OneAmerica offers a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and recordkeeping services, individual life insurance, annuities, asset-based long-term care solutions and employee benefit plan products.

Products are issued and underwritten by the companies of OneAmerica and distributed through a nationwide network of employees, agents, brokers and other sources that are committed to providing value to our customers. To learn more about our products, services and the companies of OneAmerica, visit
OneAmerica.com/companies.

Sep 13

Nonprofit builds relationships — one by one — to achieve vision of transforming Eastside neighborhood

By Feature

A day experiencing Shepherd Community Center’s Shalom Project

by Shari Finnell, editor/writer, Not-for-profit News

On a Thursday morning, in mid-August, Shane Hardwick, a paramedic, slides into the passenger seat of a police car parked outside of the Shepherd Community Center, a nonprofit organization in the heart of Indianapolis’ Near Eastside — one of the city’s most troubled and blighted neighborhoods.

His work partner, Adam Perkins, a police officer with the Indianapolis Metropolitan Police Department, sits in the driver’s seat as they tune into a weekly 9 a.m. virtual meeting on the vehicle’s computer monitor.

During the next 45 minutes, they join other team members of Shepherd Community Center as they discuss the challenges facing about 20 to 25 individuals and their families in the area surrounding them — primarily within the 46201 zip code.

They talk of the individuals with familiarity, giving updates on how they’re currently coping and what they need to gain more stability in their day-to-day lives. An elderly couple, fearful of venturing out during the COVID-19 pandemic, hadn’t left their home in a six-month period. A survivor of a domestic violence stabbing is having trouble managing a confusing mix of medication. Another woman wants to improve her job prospects but needs internet access for a medical coding class. A man estranged from his family hasn’t taken his high blood pressure medicine for months, putting him at risk for serious health complications.

Each person mentioned — Jesse, Amy, Bob, Ericka, Maria, Angela, Derek and others — are considered part of the key to transforming the 46201 neighborhood under Shepherd’s Shalom project. By focusing on individuals, couples and their families, the initiative, which was started nearly eight years ago in partnership with the city of Indianapolis, the team is able to take steps toward rebuilding a community that faces one of the city’s highest rates of poverty, crime, unemployment and food insecurity,

The center, which has been serving the community for nearly six decades, launched the Shalom Project as an outreach initiative in 2015, sending a community police officer, Perkins, out on neighborhood patrol to get to know residents on a personal basis. When they realized that many residents were facing health-related challenges, paramedic Hardwick joined the team to meet those needs.

Five days a week, the pair go out into the neighborhoods to give residents the gift of time — time to build trust and make a connection, time to understand the underlying challenges that eventually lead to a crisis … in some cases calling 911 “as primary care,” as Hardwick puts it, and, consequently, time to rebuild a community one neighbor at a time.

Building on a vision to become experts at relationships

According to Andrew Green, assistant executive director of the Shepherd Community Center, the shift to outreach has been significant in truly meeting the needs of residents in the community — especially in the midst of the COVID-19 pandemic.

The Shalom model, which focuses on going out to meet the needs of local residents, instead of expecting them to come to 4107 E Washington St, where the center is located, has taught the Shepherd team the importance of building relationships and connections as they move toward the goal of making the 46210 area a stronger, healthier and safer community. 

“It fits a theme for us for the last few years — we’re focusing on the humanity piece,” Green said. “Relationships are what make the difference. And we want to be considered experts on building relationships.”

Shepherd continues to build on its legacy of providing quality services and programs, including after-school programs, a clinic, a food pantry, job training, counseling and legal aid. Yet, as IMPD leaders shared in a conversation with Shepherd, “Great things are happening on site, but your neighborhood is crumbling,” Green said.

At one point, it offered a clinic on Saturdays to address acute medical issues but quickly realized that residents were arriving for primary care. “It was staffed with volunteer doctors, pharmacists and nurses,” Green recalled. “However, it was becoming primary care because of underlying chronic conditions.”

Under the Shalom model, the Shepherd team now connects with individuals one on one and ensures that they see the right medical professionals. Another key is maintaining those relationships long-term — following up to make sure that people are continuing in a positive direction, Green said. 

“The whole theme of building relationships is driven home day after day. The pandemic moved us toward that model even quicker,” he added. “We are now making calls to people twice a week.”

Making critical connections

After their morning meeting, Perkins and Hardwick start the work of making face-to-face connections in the 46201 community, where they are welcomed into the living rooms, porches and yards of the nearby residents. They also respond to 911 calls, joining other EMS respondents and police officers in addressing emergency situations that range from several suspected overdoses, a dog bite, an arrest on a suspicion of a stolen car, and also, on this particular day, a search for a cow on the loose.

On their first stop, Perkins and Hardwick drive a couple of miles to a rooming house where Derek, a middle-aged man, is waiting outside in anticipation of their arrival. He smiles as Perkins and Hardwick exchange warm greetings with him, commenting on the weather and how each other are doing. Derek, still smiling, replies that he’s doing great. Hardwick pulls out a blood pressure cuff to determine how Derek really is doing.

“That’s not looking good,” Hardwick announces as he shares the reading with Derek. Just as the Shepherd team had suspected, Derek’s blood pressure was dangerously high after going without his prescribed medication for about five months.

These are the types of situations that lead to unnecessary 911 calls, Hardwick later explains. Without intervention, Derek’s medical condition could reach a crisis stage — leading him to make a 911 call.

The reading reveals what the Shepherd team had suspected: After going without his medication for about five months, Derek’s blood pressure is high. Without intervention, Derek could reach a crisis stage — requiring a 911 call

“In many cases, people end up using 911 as primary care,” Hardwick says.

Hardwick orders an Uber driver to give Derek a ride to the Shepherd Community Center, where social workers and staff members work on his behalf to ensure he receives his medication. After a series of calls, including long waits on hold, they are finally able to address the source of Derek’s challenges and barriers. As it turns out, under the restrictions of his medical plan, Derek could only see one physician for medical care, who apparently had moved to California months ago, and could only get his medication filled at one pharmacy — located miles from his current address.

After spending hours resolving his challenges, Shepherd was able to ensure that Derek was assigned a new doctor and was able to get his medication filled at a more convenient location.

During that same day, Adams and Hardwick visit the family of an elderly man who was paralyzed from the neck down as a result of a fall on ice. The man wants the dignity of dying at the home of his sister, in the company of his children and other relatives.

The daughter is distraught, telling Adams and Hardwick that she feels he has given up on his battle to live. She doesn’t understand why he refuses to go to the hospital to get further medical care.

The Shepherd team gathers with about eight relatives on the expansive porch for a while, discussing various options. As he leaves, Hardwick gives the daughter his business card, encouraging her to call him if they need any assistance.

Hours later, the daughter does call. The father has agreed to be taken to the hospital to rule out any medical complications that could be resolved. Adams and Hardwick return to the home to assist emergency responders who take him to the hospital for a medical check.

The next day, the family calls the team once again to let them know that their loved one had returned home and had passed amongst his family as he had wished. They invite Adams and Hardwick back to the home as they gather.

The connection represents yet another long-term relationship built through the Shepherd Shalom project.

By focusing on individuals, couples and their families throughout the neighborhood, the Shalom initiative not accomplishes critical needs — it meets the needs of many individuals and families who need someone to care, lightens the load of the emergency responders and rebuilds the 46201 community — one neighbor at a time.

Sep 13

IT budget shift: Supporting hybrid work and increased security

By Sponsor Insight

by Cody Lents, partner and change manager at COVI, Inc.

Has COVID-19 upended the way your organization approaches IT? You’re not alone. Global IT spending related to remote work is forecasted to hit $332.9 billion in 2021, as organizations reallocate spending to better support and secure a new/expanded remote-work environment.

In today’s world, IT budgets are shifting, and new strategies can help you stay ahead of the game. You can focus your budget on mission-critical IT efforts as the digital world makes remote environments more of a priority.

Reallocating the IT portfolio
In the past, companies have spent more money on hardware and server storage. But now, a transition towards cloud services is leading the way in budgets. Employees who work remotely often need to be outfitted with laptops and mobile devices rather than desktops and other hardware. Now, employees can work anywhere and still have access to everything they need.

BYOD (Bring Your Own Device) policy
If employees bring their own personal devices, like cell phones, tablets or computers, to work, how can you keep company data secure? Defining a ‘Security & Use Policy’ should be first. This helps balance employee freedom, app functionality, and ensures your organization is not at risk.

The ‘Security & Use Policy’ should include:

  • Acceptable use. Define what applications and data employees are permitted to access on their personal devices and the expected process to do so. When should I access company files? How should I access them?
  • Minimum security. Passwords should always be required. Are company security applications required to be installed? Can the company’s IT team remotely access the employee’s personal devices? Remotely run scripts in the background? Who is responsible for system updates?
  • A plan for broken, lost or stolen devices. Companies should reserve the rights for altering devices or wiping them clean in the case that they are lost or stolen. But who is responsible for day-to-day support if the device malfunctions? The company? The employee? And at the end of the day, who pays the bill for support?
  • Ownership plan. The policy should say who owns the device, the data, and the digital environment (think Windows or MacOS) and support responsibilities. Typically, the most difficult question is how to segment personal data from company data and confirm we aren’t invading our employee’s privacy by backing up their personal data to the company’s backup infrastructure.
  • Usability plan. The policy should outline required hardware and software specifications and expected turnaround times for device failure or other disruptive IT problems.

Another item to consider is ‘Mobile Device Management,’ which includes the option to secure and integrate devices across the network — allowing your organization the option to manage those devices in one place.

Lastly, ask your insurance agent how this workplace evolution impacts your cyber insurance policy. And, if you don’t have one, it’s time to bite the bullet and get insured.

Recommendations
To remain proactive and in control, we recommend immediately moving to cloud solutions, and integrating multi-factor authentication (MFA), SaaS backups, and Advanced Threat Protection (ATP). Allocate budget towards investing in cybersecurity. Cyber criminals are sophisticated, and new technology allows for new ways to block criminal activity.

Lastly, make sure your back-up and recovery system are redundant, so that data won’t be lost. As the world of IT advances, be sure you are up on the latest best practices.

Questions?
If you need assistance implementing a hybrid-work approach for your organization, you can reach out to COVI at cody@gocovi.com to see if an assessment makes sense. COVI is an Information Technology (IT) agency specializing in productivity, security, support and strategy services, located in Indianapolis, Indiana.

Sep 13

Board of governance or board of management?

By Sponsor Insight

by Jan Breiner Frazier, owner, Planning Plus, LLC

A not-for-profit board of directors can play one of two roles — that of a board of governance or a board of management. Both are valuable and can be highly effective. What type of board does your organization need?

Much of this depends on the current reality of your organization in this volatile time. But, more often than not, it depends on the strength, skills and expertise of the CEO/executive director. When we have been asked to assist with CEO/ED searches, one of the initial questions we ask is “What is the relationship you want to have between the board and the CEO?” Of course, the general response is that of collaboration, open and honest communication, transparency, etc.

When we think about board governance, we generally refer to the “10 Basic Responsibilities of Non-Profit Boards,” the seminal piece by BoardSource. For the majority of our clients, the board of directors is one of governance, ensuring the adoption of a mission statement, overseeing the financial health of the organization, promoting the organization, etc., and — most importantly — hiring the CEO and giving that individual the responsibility for all personnel decisions. In an established organization, a board generally serves in a governance role, using board member skills to fill in gaps with varied experiences and expertise to help advise and guide staff.

A very strong CEO — one who is independent, focused and driven — may often desire a board that is more than willing to stick to governance and stay out of operations. Enough information is shared so that board members understand the general finances, challenges, and priorities — but the less involved the better.

A board of management is generally more hands on, becoming intricately involved in making and often implementing operational decisions and contributing a great deal of time to the organization. We generally find this type of board with new non-profits, start-ups, in-crisis situations, and in organizations going through significant leadership transitions. Over time, with the right people in place, the board of management can slowly evolve into a board of governance.

Unfortunately, we have seen CEOs who abdicate their responsibilities to the board due to the fear of making decisions, a reluctance to engage in controversial discussions at the board level, or an inadequate level of skills necessary to ensure the organization’s success, leading to boards of governance slowly evolving into boards of management whether they intended to or not. And it’s hard to retreat from that position.

The one constant, however, whether a board of governance or board of management, is the requirement to assist with resource development for the organization (yes, fundraising).

The recommendations we offer below are nothing new and may seem simplistic, but implications to the board are far reaching:

  1. Be very scrupulous in hiring the CEO of the organization in terms of the relationship desired between CEO and the board. Be clear on the expectations of the new hire; carefully identify the needed experience, skills, and behaviors; be diligent in reference checking, including reaching out to board members of the previous organization; and ensure the entire board is on the same page as to the leadership needs of the organization and the level of autonomy it will give its new leader.
  2. Be equally scrupulous in selecting a board chair. Too many organizations have a pre-determined hierarchy, i.e., the vice president automatically becomes president and other officers line up for future succession. The board chair must be someone who meets a similar set of standards you would require in the CEO: strategic in thinking, visionary, strong and effective communicator, ability to manage change and conflict, etc.

Whether your organization has a board of governance or board of management depends on the needs of the organization as it continues to evolve. Just be sure you know which one you want.

Sep 07

Donor engagement and retention techniques: Invest time now to solidify donor relationships

By Sponsor Insight

By Andy Canada, senior consultant, director of data analytics, Johnson, Grossnickle and Associate

While we need to work to engage all of our donors, many nonprofits have experienced the benefit of an influx of new donors in response to the pandemic’s challenges. What can you do to engage and retain these new donors as well as deepen your relationships with your existing donor pool?

Donor Engagement

While we are operating in unusual times, you do not want to throw out your tried-and-true ways of engaging and stewarding your donors. But, you might consider adding the following strategies as well.

Personal connections: Think creatively about how to create personal connections with donors, such as engaging with donors via FaceTime to capture a specific meaningful moment at your organization. Engage board members, leadership team members, volunteers, and other donors in thank you calls. Hearing from someone new will expand donors’ connections and engagement with your organization.

Technology techniques: Using technology to your advantage has hopefully become easier than ever over the past year. There are multiple platforms that can be very effective with donors who are now more familiar with different means of communicating. Tell your story from the perspective of those you serve — send short video messages telling the story of how lives have been changed by gifts from generous donors. You might also share short “day in the life” videos from the heart of your organization — such as the teacher, direct care staff, curator, cook — to give a glimpse into real-world impact.

Peer engagement: Encourage peer-to-peer fundraising or use third-party events to deepen engagement and spread your reach. Personal referrals will never go out of style. Identify donors who can advocate on your behalf to reach out and engage new donors. This will create an additional touchpoint and provide a way to ask for additional support from a peer or for a specific program.

Donor Retention

Research from the Fundraising Effectiveness Project indicates first time donors only donate again about 20 percent of the time. However, if a donor makes a second donation, the chance of them continuing to contribute is 60 percent. Invest in new donors now, because retaining a donor for multiple years will more than make up for the initial investment.

Welcome them: Work quickly to welcome and engage new donors as soon as they make their first donation. Create a welcome plan for new donors, that goes beyond a welcome packet. Within 48 hours of their gift, send sending a thank-you card or a handwritten note from a leadership staff or volunteer. Then, continue to reach out with special touches throughout the year — maybe a personal email with a picture or short personal video clip.

Create a connection: Create high levels of buy-in from your donors by building their sense of investment in the organization. Follow up to promote opportunities for them to get involved in a non-monetary way, such as volunteering. Volunteers are among the most motivated donors. Develop ways to engage volunteers remotely during the pandemic, if possible, but also just make sure you stay in touch with your volunteers now so that when it is safe to return to in-person volunteer activities, your donors are still engaged and committed.

One way to stay in touch is by offering them opportunities to give feedback. Ask for their advice via an electronic survey, email exchange, or phone call.

Allow donors to openly share what motivates them to give and use that information to identify potential gaps in your program. One caution though, be prepared if you ask for feedback, to act on it and implement changes as needed.

Plan for their next gift: Create a “second gift” strategy for new donors before the one-year anniversary of the first gift. Many organizations mistakenly wait until the first-year anniversary of a gift before reaching out and asking for another gift. While acknowledging the anniversary of a gift is a great strategy, don’t let that be the first-time new donors hear from you again.

To help retain donors, it is also important to make giving easy. First and foremost, you need to make sure your online donation page is mobile responsive and user-friendly. Then, make sure you offer donors a recurring gift option and tell them how a consistent gift can benefit those you serve. You can also promote low dollar amount gifts ($5 to $15) to re-engage first-time donors and encourage them to give regularly.

Matching gifts are not just for major gift programs or capital campaigns, they can also be very effective in retaining new donors. Secure a challenge gift from one of your long-time supporters to encourage new donors to give a renewal gift or enter a monthly giving society.

Finally, think through how you can identify those new donors who may have the potential to make a major gift if cultivated and engaged properly. Make sure you conduct electronic screening on new donors you may have gained over the past year. Determine if any should be assigned to a major gift officer for more personal engagement.

If you put in the work early on to retain new donors and stay engaged with your existing donors, they will stick with you when it counts.

Andy Canada is senior consultant and director of data analytics at Johnson, Grossnickle and Associates, a strategic consulting firm located in Indiana that focuses on higher education.

Aug 30

From the front lines: Nonprofit employees share highs and lows of working during a pandemic, social unrest

By Feature

NFPN survey reveals employees’ perceptions about how they’re coping during a crisis — and why some are thinking about leaving their jobs

by Shari Finnell, editor/writer, Not-for-profit News

Second in a series of articles based on a “How Are You Doing?” survey conducted by Charitable Advisors

As reported in a previous Charitable Advisors’ Not-for-profit News (NFPN) article, a survey revealed that nearly 54 percent of Central Indiana nonprofit employees are thinking about leaving their jobs within the next 12 months. Of the 461 employees who responded to the survey, 40 percent said that timeline would apply to a 90-day timeframe.

With high employee turnover impacting everything from productivity to overall employee morale, numerous survey respondents gave further insights on why they left their job, why they’re thinking about leaving their job and, in some cases, why their employers are getting it right and, consequently, why they’ve decided to stay.

One survey respondent, who asked to remain anonymous, said that the pressures of shut-down orders, downsizing, lack of direction from leadership, an increased workload, and, later, a demand to return to the office amid rising COVID-19 cases led her to resign from her previous position.

The employee, who agreed to a telephone interview, said that she always has been drawn to the nonprofit sector because it’s rewarding to support the Indianapolis community she grew up in. “I have been working with nonprofits for 10 years,” said the employee, who furthered her education by graduating from the Lilly School of Philanthropy in 2018. “I worked briefly in for-profit, in sales, and I really didn’t feel like it was fulfilling for me as an individual.

However, she recently faced the challenging decision of leaving a nonprofit job before securing another. “Going through the pandemic was a time of great uncertainty. It was difficult,” she recalled. “Our organization didn’t have good leadership. While everyone was reacting in the moment, employees’ fears and concerns were not addressed until it was past time to address them. People’s concerns seemed to be dismissed. There’s something to be said for leading with empathy and acknowledging the unknowns, while at the same time accomplishing your goals and getting things done.’

The employee said that she experienced bouts of high anxiety during the pandemic, especially when the outbreak was first reported in Indiana in March 2020. “Uncertainty is a difficult spot for me,” she said. “I was concerned about my own health conditions, and I raised concerns with HR. When I did get answers, the response was, “Hold tight.” She also faced similar challenges in connecting with her direct supervisor. “They were very dismissive of our concerns,” she said.

When employees were asked to come into the office — before the city’s “stay-at-home” order was lifted. “I flatly rejected,” she said. To her, that request reflected “tone deafness” to employees’ fears and concerns.

Searching for job satisfaction

After quitting her job, the employee said she devoted time to self-care and volunteering for other organizations. “My first step was to reflect and to give myself breathing room to deal with the trauma and the incredible unknowns that were happening,” she said.

For her next job, she decided to be more selective about choosing her next employer. “I was looking for culture first and foremost, and compassionate leadership,” she said. “I also was looking at organizations that addressed some of the inequities that were being highlighted. Fair compensation also was on the list. Given my level of education and expertise, I was so burned out (with my last job) that it wasn’t worth it to continue with that compensation. I was looking for something more established.”

As part of the culture, the employee said, a flexible work schedule was essential. “Having gone through collective trauma, we now better understand that burnout is an issue that we should take seriously,” she added. “I don’t think a lot of organizations put time and resources to truly combat it. They don’t put time, effort and research to ensure it results in real action.”

In many cases, she said, you must show up for work — no matter what. If people call in sick, we don’t take them seriously. We now have a better understanding of how deeply connected we are. We need to make health a priority — both mentally and physically. We learned we can trust our coworkers, more and we can still accomplish things even if they’re not sitting there next to us. Understanding work-life balance is a huge issue.”

Getting it right

Although a significant number of employees indicated that they were poised to go after another job, others were positive about their jobs and employers. Of those surveyed, 36 percent said they “gained new respect for our leadership and our mission over the past year.”

Ashley Ross, development coordinator at Visually Impaired Preschool Services (VIPS), said she committed to the nonprofit sector because of the rewarding work. Her organization always has been supportive of understanding employees’ need for work-life balance, Ross said. “Before the pandemic began, my organization was already pretty understanding of remote work/flexible schedules. I worked in the office every day, but if I ever needed to be at home because of an appointment, there wasn’t push back; in fact, we are encouraged to make our work-life fit around our personal life,” she said.

While the flexible work schedule was a “nice-to-have” option for Ross, she now considers it a priority for any employment. “Since the pandemic started, I have now been working entirely from home for about a year and a half.,” she said. “I truly love working from home. Before the pandemic, I would only work remotely if I needed to be home for a specific reason. I would not have told my boss, ‘Hey, I don’t feel like getting out of my pajamas, so I will be working from home today.’ But now, knowing how much I can get done from the comforts of my home, I don’t feel the guilt I felt before by saying, ‘I would prefer to work from home today.’”

Ross said she also recognizes the benefits of collaborating with co-workers in the office. “My organization is in a very unique position because we are now finishing up our capital campaign to build a whole new facility for the families we serve and to also have a larger office space,” Ross said. “I am excited to get moved into our new space, have my own office, and engage with my co-workers again. However, I still intend to work at least a couple of days a week from home once we do move, and the organization is very understanding of that. The pandemic has shown employers that if you have trust in your employees, they can do their job well no matter their location. Having that freedom to choose where I work has been a huge reason why I plan on sticking around at my organization long term.”

Mark Koopman, executive director at Hoosier Burn Camp, Inc., shared the benefits of working for a smaller organization during a pandemic. “When you’re working for a smaller nonprofit, you can be more nimble because most folks are already wearing multiple hats. There wasn’t a paralysis,” Koopman said in a telephone interview. “We were able to come together and, say, ‘Let’s figure this out. How can we still serve our population in a way they deserve and need to be served?’ but, at the same time, realizing that business as usual needs to change.”

Because of the trust that already had been established within the organization, Koopman said that there was an ability to collaborate and move quickly as a team to come up with new ideas to reach constituents. “That’s part of our secret sauce,” he said. “Going through a challenge like that together, there’s an appreciation for the struggle. We were working in sync as a team. When you get through it, it’s not just an individual level of satisfaction. It was a collective satisfaction. There’s a sense of belonging. We felt like we got sucker punched as we made alterations to our programming, but we got smarter and better at it. In hindsight, we did a lot of things pretty well.”

Koopman also said that it was important to expect others’ opinions and stances during that time, whether based on religion, politics or COVID. “It’s important to meet people where they need to be met and respect where they’re at, whether it’s based on religion, politics or COVID,” he said.

Coping with burnout while focused on the mission

Patricia Cortellini, director of agency relations for Second Helpings, said the critical mission of the nonprofit organization was significantly heightened in the wake of the pandemic throughout 2020. Second Helpings distributed 1.8 million meals — up 75 percent from the 1.1 million distributed in the previous year.

“Our work became more important personally to each one of us,” Cortellini said. “Food is such a basic need. We all believed in the mission but the pandemic brought it home. We hear from a lot of people who were saying things like, ‘We didn’t get COVID because of your meals,’ ‘I’m home with COVID, so I can’t get out,’ or ‘We couldn’t leave the building because we’re immunocompromised.’”

Throughout 2020, the team at Second Helpings navigated numerous challenges, including implementing a hybrid work schedule and changing the model of how they delivered food. “Everything changed,” Cortellini said. “This year is harder than last year when our model included having the national guard here to get us in a rhythm.”

While the mission makes it all worthwhile, the day-to-day challenges can take a toll on employees on the frontlines, especially with the Delta variant resulting in another surge in COVID rates throughout Central Indiana, Cortellini said.

“People are getting burned out,” she said. “We don’t see the light at the end of the tunnel. It isn’t over yet.”

Some of that stress has been alleviated with hybrid work schedules, with employees alternating working from home and in the office. “Being able to work from home two days can give you a break from the day-to-day stress. and focus on projects without all the interruptions. We found staff can be very effective at home.”

However, she said, the clear advantages of meeting in person can’t be underestimated. “When we are able to meet face to face, so much more information gets relayed. You can read people’s expressions. It’s also hard to jump into a conversation during a Zoom meeting. I believe the hybrid model of working will stay with us.”

Developing a strategic retention/recruitment plan

Deirdre Byrd, director of HR consulting for VonLehman CPA & Advisory Firm, said nonprofit employers can gain a significant number of insights about what it takes to attract and retain employees as a result of the pandemic.

“COVID highlighted for employees and employers that much of the work that takes place can be done remotely,” Byrd said. A flexible schedule also allows for more work-life balance, she noted. “Instead of starting the day with a commute to the office, an employee could start earlier and take a break during lunch time to help kids with assignments,” Byrd said. “It’s not surprising that, on the side of it, we’re not going back to the way things were.”

As part of Byrd’s work, she’s hearing from many prospective employees who are prioritizing remote work, hybrid work or flexible schedules when vetting employers.

Nonprofit employers will need to move forward by being realistic about what they can and cannot offer current employees and new hires, Byrd said. “Value doesn’t necessarily have to come in the form of straight compensation,” she said. “It can be non-monetary, such as development … the opportunity to grow with the organization. It may not mean vertical growth; it may be lateral growth, with opportunities to further build skills.”

Byrd said leadership teams need to outline five key areas to have an impact on retention and recruitment, including making sure that each employee has the right skills for the position to increase alignment; identifying what sets you apart as an organization; connecting goals and expectations to the organization’s mission and performance; offering employee development plans and providing attractive compensation, including non-monetary benefits such as hybrid work/remote work, flexible work schedules, childcare or elder care and similar benefits to assist with employees’ personal lives.

Developing clear ways to address burn out also is critical, Byrd said. Throughout the organization, there should be efforts to ensure relationships are constructive, with schedules including one-to-one employee meetings and regular team meetings.

“It’s important to talk to employees, not only about work but get to know them as people,” she said. “Create an environment of trust, which is foundational to a safe environment where employees are supporting one another and can be their authentic selves. They should feel safe to experiment and try something new.”

Aug 30

Donor engagement and retention techniques: Invest time now to solidify donor relationships

By Sponsor Insight

by Andy Canada, senior consultant, director of data analytics, Johnson, Grossnickle and Associate

While we need to work to engage all of our donors, many nonprofits have experienced the benefit of an influx of new donors in response to the pandemic’s challenges. What can you do to engage and retain these new donors as well as deepen your relationships with your existing donor pool?

Donor Engagement

While we are operating in unusual times, you do not want to throw out your tried-and-true ways of engaging and stewarding your donors. But, you might consider adding the following strategies as well.

Personal connections: Think creatively about how to create personal connections with donors, such as engaging with donors via FaceTime to capture a specific meaningful moment at your organization. Engage board members, leadership team members, volunteers, and other donors in thank you calls. Hearing from someone new will expand donors’ connections and engagement with your organization.

Technology techniques: Using technology to your advantage has hopefully become easier than ever over the past year. There are multiple platforms that can be very effective with donors who are now more familiar with different means of communicating. Tell your story from the perspective of those you serve — send short video messages telling the story of how lives have been changed by gifts from generous donors. You might also share short “day in the life” videos from the heart of your organization — such as the teacher, direct care staff, curator, cook — to give a glimpse into real-world impact.

Peer engagement: Encourage peer-to-peer fundraising or use third-party events to deepen engagement and spread your reach. Personal referrals will never go out of style. Identify donors who can advocate on your behalf to reach out and engage new donors. This will create an additional touchpoint and provide a way to ask for additional support from a peer or for a specific program.

Donor Retention

Research from the Fundraising Effectiveness Project indicates first time donors only donate again about 20 percent of the time. However, if a donor makes a second donation, the chance of them continuing to contribute is 60 percent. Invest in new donors now, because retaining a donor for multiple years will more than make up for the initial investment.

Welcome them: Work quickly to welcome and engage new donors as soon as they make their first donation. Create a welcome plan for new donors, that goes beyond a welcome packet. Within 48 hours of their gift, send sending a thank-you card or a handwritten note from a leadership staff or volunteer. Then, continue to reach out with special touches throughout the year — maybe a personal email with a picture or short personal video clip.

Create a connection: Create high levels of buy-in from your donors by building their sense of investment in the organization. Follow up to promote opportunities for them to get involved in a non-monetary way, such as volunteering. Volunteers are among the most motivated donors. Develop ways to engage volunteers remotely during the pandemic, if possible, but also just make sure you stay in touch with your volunteers now so that when it is safe to return to in-person volunteer activities, your donors are still engaged and committed.

One way to stay in touch is by offering them opportunities to give feedback. Ask for their advice via an electronic survey, email exchange, or phone call. Allow donors to openly share what motivates them to give and use that information to identify potential gaps in your program. One caution though, be prepared if you ask for feedback, to act on it and implement changes as needed.

Plan for their next gift: Create a “second gift” strategy for new donors before the one-year anniversary of the first gift. Many organizations mistakenly wait until the first-year anniversary of a gift before reaching out and asking for another gift. While acknowledging the anniversary of a gift is a great strategy, don’t let that be the first-time new donors hear from you again.

To help retain donors, it is also important to make giving easy. First and foremost, you need to make sure your online donation page is mobile responsive and user-friendly. Then, make sure you offer donors a recurring gift option and tell them how a consistent gift can benefit those you serve. You can also promote low dollar amount gifts ($5 to $15) to re-engage first-time donors and encourage them to give regularly.

Matching gifts are not just for major gift programs or capital campaigns, they can also be very effective in retaining new donors. Secure a challenge gift from one of your long-time supporters to encourage new donors to give a renewal gift or enter a monthly giving society.

Finally, think through how you can identify those new donors who may have the potential to make a major gift if cultivated and engaged properly. Make sure you conduct electronic screening on new donors you may have gained over the past year. Determine if any should be assigned to a major gift officer for more personal engagement.

If you put in the work early on to retain new donors and stay engaged with your existing donors, they will stick with you when it counts.

Andy Canada is senior consultant and director of data analytics at Johnson, Grossnickle and Associates, a strategic consulting firm located in Indiana that focuses on higher education.

Aug 23

NFPN Survey: What nonprofit employees really want

By Feature

HR experts predict Central Indiana nonprofits will need to be creative in combating high employee turnover

by Shari Finnell, editor/writer, Not-for-profit News

(First in a series of articles about Charitable Advisors’ NFPN “How Are You Doing?” survey)
Many nonprofit employees in Central Indiana appear to be dissatisfied, with 40 percent reporting that they’re likely to change jobs in the next 90 days, according to a Not-for-profit News survey of 461 respondents. Of those, 21 percent said there’s a 50 percent chance they would change jobs and 20 percent rated that possibility as “very likely” — at least a 70 percent chance.

That number shifts from 40 percent to nearly 54 percent when the timeline for a potential job change is expanded to “within the next 12 months.” According to the 2021 U.S. Bureau of Labor Statistics, voluntary turnover — situations in which employees choose to leave their jobs — is typically 25 percent.

When asked what mattered to them most in a job, survey respondents cited flexible schedule (68 percent), higher pay (57 percent) and remote work (47 percent) as their top three criteria.

One survey respondent said, “Don’t make me come back to the office more. I am far more productive at home. There is no need to commute 1.5 to 2 hours in a day to attend a 1-hour meeting. If virtual worked at the height of the pandemic (when you wanted it) then it can still work now (when I want it).

Another said, “The culture at my institution is completely broken. Trust between the staff and leadership at the senior and board level has fully dissolved. Within my own department I don’t feel like there are advancement opportunities for me, but more broadly, many staff feel discouraged, undervalued, and heartbroken over continued institutional shortcomings. If my employer were to provide a clear advancement plan for me and work towards more transparency between leadership and the staff, I would love to stay.”

Burnout was cited as a major problem by numerous survey respondents. One employee responded, “Get me help. I cannot do this alone and I am drowning,” while another commented that they needed “more help in the office and fewer long nights.”

The survey findings reflect recent trends throughout the state of Indiana, according to Megan Nail, vice president, Total Rewards Practice, for First Person Advisors, and state director for the HR Indiana Society for Human Resource Management.

“I hear from HR professionals and employers throughout the state of Indiana, and what they’re dealing with,” Nail said. “The pandemic has impacted mental health, wages and our ability to recruit and retain employees. I have never seen anything like this in the 20 years that I’ve been in the profession.”

Chelsea DuKate, founder and HR people consultant for Red Envelope Consulting, said employers will need to consider remote work as the new normal — not the exception in the coming years.

Unlike years ago, when employees placed a high value on the type of office accommodations their employer offered, such as an office with large windows, that is no longer the case, DuKate said.

“There’s been a total shift around the flexibility of working from home. Leaving our house to commute to work for even 10 minutes is a barrier,” she said. “A lot of people are still recovering mentally from the ups and downs of 2020, and what we’re going through even now. It’s too much effort to go into the office. They don’t want to do it, and they don’t care if their bank account takes a hit.”

When determining how to proceed with a work policy, whether it’s a hybrid model or fully remote or fully in-person, it’s important to ensure that you include employees in the decision-making process, DuKate said.

“There has to be an employee voice in whatever decisions are being made,” she stressed. “Give employees the option to take a vote before determining what’s best. As long as they feel their voice is represented, employees may still decide to leave but not leave with a chip on their shoulder.”

DuKate also said that understanding and meeting employees’ needs can be a significant step in increasing retention rates. Many nonprofits, especially smaller organizations, are unable to compete with for-profit and larger organizations on salary, she pointed out.

Besides flexible schedules, higher pay and remote work, survey respondents cited several other ways that their current employer could enhance retention rates, including the following:

  • Stop micromanaging
  • Listen to ideas to stop the high rate of turnover
  • Offer more opportunities for growth and leadership
  • Transparency and better communication
  • Non-toxic culture
  • Higher pay, advancement, connection
  • Benefits in lieu of pay, possibly a shorter work week (four days would be lovely)
  • More frequent reminders that they value me
  • Increase my pay; I’ve only had two raises in 15 years
  • More employee appreciation beyond words
  • Reduce number of weekly meetings; slow pace down a bit
  • Comprehensive benefits
  • More time off options. There has been no break since COVID started. It’s taking a toll on the physical and mental health of our team and colleagues

When employees were asked how they felt about their leadership and organization’s mission, the survey responses were nearly evenly divided in their opinions:

  • 36 percent said they “gained new respect for our leadership and our mission over the past year.”
  • 35 percent reported feeling “the same about my employer as I did before the pandemic.”
  • 29 percent said they “lost confidence or respect for my employer over the past year.”

On the question related to their relationship with their supervisors, employees also were nearly even divided in their responses:

  • 37 percent rated their relationship with their supervisor as “excellent/very good”
  • 33 percent rated it as “pretty good”
  • 30 percent responded that they “don’t feel connected to my supervisors/leaders”

The survey findings point to the need for nonprofit organizations to be more creative and intentional in attracting and retaining employees, especially if there isn’t an option for significantly increasing pay, Nail said.

“As an employer, you need to ask, ‘What type of culture are you building?’ ‘How are you connecting that to your mission?’,” Nail said. “It all starts with communication and trust, especially during COVID. The world is so busy, and there’s so much we have going on at any time. If you’re having employees work remotely, you have to be even more intentional about communication, trust and relationships.”

Nail also said organizations should recognize the advantages of being in the nonprofit sector.

“Hopefully, the positive side of all this is that it’s forcing employers of all types — for profit and nonprofit — to be really creative about understanding their employees needs and coming up with unique ways to support them,” she said. “The good news for nonprofits is that it’s not all about money. That’s certainly a part of it but there is so much more than that.

“As human beings, many of us have stepped back and reassessed what we’re looking for in life. Nonprofits can play a really important part in answering that question by providing meaningful work. Employees can really feel like they’re contributing to making our community a better place. That’s a unique value proposition nonprofit employers can leverage during this time.”

Organizations that invest time and effort in enhancing workplace culture, management and mission building and offer flexibility will be able to more effectively compete for highly qualified employees, Nail said.

“People will think twice about leaving a good culture where they feel like there’s good communication, they believe in the mission, their supervisor supports them, and it’s a job that works with their personal life,” she said. “Those things are irreplaceable.”