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Aug 27

Student loan forgiveness: With work it could happen

By Feature

By Lynn Sygiel, editor, Charitable Advisors

The topic comes up frequently. Just about every election cycle, candidates talk about the spiraling cost of higher education.

According to 2017-18 figures provided by the nonprofit organization College Board, the average total cost to attend a four-year state college or university is $25,290. The price tag for a private institution is a staggering $50,900.

So what’s a student to do? For many, the answer is borrow and worry about the consequences later.

According to the Federal Reserve, outstanding student loan debt across the United States has grown to $1.5 trillion. That affects about 1 in 4 adults under the age of 30. Those with a bachelor’s degree owe a median of $25,000, according to the Pew Research Center.

Matt Heston is part of this group. He graduated from IU’s School of Public and Environment Affairs (SPEA) in 2015 with a master’s in public affairs (MPA) and a concentration in nonprofit management. He landed a job at the University of Cincinnati Foundation, a nonprofit, but was saddled with student debt from both undergraduate and graduate school.

Heston wasn’t necessarily looking for a lifeline, but it was during grad school that he heard of an innovative, but not-so-well-known federal program that might offer some relief, at least for nonprofit workers such as Heston.

The helping hand was the Public Service Loan Forgiveness (PSLF) program, which originated in 2007 when Congress passed the College Cost Reduction and Access Act. The program is for nonprofit and government employees. The idea is seemingly simple: Work for 10 years in one of those two sectors, make 120 payments based on your income, and then have the rest of your loans forgiven.

In theory, the concept seems sound. In practice, not so much, as Heston and others have found. The PSLF program has a host of confusing and somewhat complicated requirements that are difficult to navigate.

“When I took this job, I recognized that I was working for a nonprofit, and the loan payments that I were making could qualify towards PSLF, but I had not yet signed up for it,” said Heston. After two and a half years of work, and at the urging of his colleagues who were on that track, he applied for the program.

That’s where simplicity ended for Heston.

He found out that working full time for a nonprofit wasn’t the only condition he had to meet. His loan had to be the “right” kind of loan (a direct loan from the government), and he had to be making the “right” kind of payment (a monthly amount based on a percentage of your income).

After graduation and prior to submitting an employer certification form, he had made regular loan payments. But his hopes were dashed when he was rejected because those two-and-a-half year payments were not income-based. Additionally in 2016, he married. His wife, an optometrist, also had student loans. In order to qualify for PSLF, though, not only did he have to change his type of repayments, but his income would be combined with hers, escalating his payments because they would be based on the entire household income.

“To qualify for PSLF, I had to jack up my payments by like another $600 a month. It was just not possible for us to utilize that service. We determined that it’s probably best to slog it through all the way to the end. In the long haul, my savings would have been $3,000 or $4,000,” Heston said.

Laura Mazur also got her degree from SPEA the same year and heard about PSLF from her professors. She had $45,000 in student loans.

While she had been making regular payments that she believed could be applied toward forgiveness, it was at the urging of her brother-in-law that she checked to see if she actually qualified. When a borrower submits an employer certification form, not only do they learn if the job qualifies, but if the loan type and repayment plan is correct.

“I’ve always worked in government, and I know the government qualifies, but what I didn’t realize is that only certain repayment plans qualify. So that’s where I ended up losing a bunch of time. I had made over two years or 23 payments and didn’t end up qualifying because I was on the wrong payment plan,” said Mazur who now lives in Denver. “That was very upsetting.”

Something, too, that she didn’t realize is that you don’t actually apply for forgiveness until you are ready, in other words, all 120 payments are made. In February, she started anew and will now reach her 120 payments in 2028. At that time, according to Mazur, a very small amount will be forgiven.

Of the seven young professionals interviewed for this story, all but one never talked with a loan company staff member that was collecting the payments, but rather did all the research and communication online. The Department of Education contracted several companies, including FedLoan Servicing, but in 2012, assigned all PSLF accounts to FedLoan.

For Mazur, a co-worker who had submitted an employer certification form, helped guide her the second time around, showing her where to find the repayment information. Her monthly payment would increase by $100, and while she mulled participation, she asked her employer to submit the form. Personally, she thinks submitting the form should be a requirement.

“While it’s a lot of paperwork to fill out annually, people will be a lot less annoyed than if they make it through 120 payments and at the end of it, find out that none of those payments qualify,” she suggested.

Another SPEA graduate, Noor Shaikh, also lives in Denver. She has made 24 payments toward her $80,000 debt. If she continues at her current repayment level, she will be forgiven half of it.

“It’s kind of scary especially now that you keep hearing about problems and a little terrifying knowing that I relied on an electronic form to decide the next 10 years of my life,” she said. She would tell all students with loans to talk with their college’s or university’s financial aid office. “They have to have training about this stuff, but I just don’t remember seeking them out when I was in school.”

Extended payment plans. Wrong kind of payments. Employer certification. The requirements are on the Department of Education Federal Student Aid website, but the bottom line appears to be not just “buyer beware,” but “buyer, make sure you do your homework.”

With that in mind, meet Michael Lux, a 2012 graduate of George Washington University Law School, and the self-dubbed Student Loan Sherpa. Since 2013 Lux has blogged and answers questions recent graduates, colleges and others pose about student loan problems. He focuses his efforts on student loan strategy and advocacy.

Lux said when he graduated, his future seemed bleak. He had six straight years of student loans and limited job prospects, which prompted his move to Indiana. His first job was for the Indiana attorney general’s office, and then he worked for the Marion County prosecutor’s office. Both jobs qualified him for PSLF.

Along the way, however, he spent time researching the code of federal regulations to find the answers to student loan questions and saw value in sharing what he was learning.

“At a certain point, it just struck me, ‘This should be information that people easily have access to. You shouldn’t need a law degree to pay off your student loans.’

“It’s a stressful subject for people, and it can be confusing. I try to help people navigate these issues themselves. I’m a firm believer that you don’t need to hire a student loan expert to analyze your particular student loan situation,” said Lux.

From his time at the prosecutor’s office, he has 40 of the 120 payments necessary for PSLF. If he goes back to government work, he’ll pick up where he left off. There is no gap limit. He currently makes a monthly payment, which does not count toward forgiveness.

He agrees with Mazur’s brother-in-law that the best way to track progress is to submit an employer certification form.

“I suggest people do that on a yearly basis and whenever they change employers, so that those records stay up to date. And what that does is say, ‘I’m working for an eligible employer,’ but it also triggers a review of your student loans. It will make sure that your loans are eligible and create a paper trail.

“After one year, you’ve got a record that says, ‘I’ve made 12 payments toward eligibility.’ And the next year you do it, you’ve got your 24. Year after that, and the really important reason is to do it, is if you’re on the wrong repayment plan, or your loans aren’t eligible, those are the things that can be fixed. But the sooner you identify the issue, the sooner you can fix that and start the tally toward 120. That’s why it’s really important.”

While there are other forgiveness programs, he reminds those considering the PSLF of the three main qualifiers: eligible employer, eligible loans and eligible repayment plans.

He believes that in the past few years, the Department of Education has gotten much better at providing information to empower individuals to make the right choices and having a coherent strategy from day one will save you a lot of money.

None of the interviewees for this article personally knew anyone who has hit the 120 mark. That may be because according to the Department of Education, borrowers who met requirements would first see remaining outstanding balances forgiven beginning last October. Despite an estimated 42 million federal student loan borrowers, only 139 have fulfilled the eligibility criteria needed to have their loans forgiven at any time over the next two years.

As of that third quarter of 2017, the latest available data, there are 739,719 borrowers who have submitted one or more approved PSLF employer certification forms. However, fewer than 1,000, according to the Department of Education, will be eligible in 2018 because in the early years of the program there was limited availability of income-based repayment plans.

Five states have filed lawsuits against Navient for not properly informing borrowers. The most recent, California, was filed in June.

Lux said that borrowers are assigned a company from the government, but one of his suggestions to improve the servicing is to have borrowers select their service.

“It would create a real incentive for these servicers to actually provide a quality service. Right now their only incentive is to meet the minimum terms as required by the contract with the government and that’s it,” he said.

Michael Lux suggests several resources: https://studentloansherpa.com/favorite-student-loan-sites/

Aug 20

The right conversations benefits donors and fundraisers

By Sponsor Insight

By Abby Rolland, Content Coordinator, and Andrea Pactor, Interim Director – Women’s Philanthropy Institute, The Lilly Family School of Philanthropy  

You’re a new professional in the nonprofit field. You’re just starting in your career, and you want to learn more.

You’re a seasoned fundraiser, but you continually find ways to sharpen your knowledge about new trends in the field.

As an alumna of the IU Lilly Family School of Philanthropy at IUPUI and a professional fundraiser for three years, Kyla McEntire, was looking for a way to connect with potential donors and educate a broader audience about charitable giving. In her role as the fund manager at The Oaks Academy, an independent school that provides a classical education to a diverse student population, McEntire engages with donors, alumni, and corporate sponsors, supports events and leads stewardship for the development team.

She developed these skills during her time at the Lilly Family School of Philanthropy, when she served as a graduate assistant with the Eli Lilly and Company Foundation and learned about the role of philanthropy from the grantmaker’s perspective.

“Through my experience there, I developed a passion for opening up lines of communication between nonprofits and companies that support them.”

Her commitment to communication, education, and collaboration was recently illustrated with her work to create a conversation space for both nonprofit professionals and everyday givers wanting to engage and learn from individuals working in the field.

“My colleague Sara Fichtner, and I were inspired by a Women’s Philanthropy Institute event last fall, which featured women speakers, and attracted both women and men. We wanted to establish an event series where women would lead the conversations, but encourage both women and men to attend,” McEntire said.

Buoyed by this fall event, McEntire and her colleagues designed a series for the spring and summer that would focus on what philanthropy is and what it can look like.

“I’ve been working to develop opportunities for our female donor base at The Oaks, and an event series seemed like a strong starting point.”

“We used the examples of volunteering with the Junior League or participating in a giving circle, then expanded to show statistics on women in philanthropy nation-wide,” she said. The event included research from the Women’s Philanthropy Institute to provide a broad overview of the power of women in philanthropy today.

“Our second and most recent event “Give Like the Pros Do” was a deeper dive into individual giving for the everyday giver. We know those who are middle class and/or don’t have financial planners or wealth advisors might not have access to the tips and techniques utilized by high-net worth donors. We wanted to remove that barrier.

“The Oaks was built on meaningful gifts of all sizes – you can give intentionally and use tax strategy to leverage your impact, even if you aren’t writing large checks.

“We also marketed the event towards women because as was highlighted by our speakers at the previous events women aren’t always at the table making philanthropic decisions. Hopefully, we’re empowering women to make informed and intentional philanthropic decisions and advocate for giving to the causes they care about.

“Both of the events received positive feedback from those who attended and we’re looking forward to the final event of the three-part series, which will focus on family philanthropy, as well as how donors from The Oaks prioritize their own philanthropy and how they make philanthropic decisions with limited time and resources. We hope to continue the event series with a different theme in 2019,” McEntire explained.

**Note: The third event takes place on Oct. 25 at The Oaks Academy, Middle School at 4:30 p.m. and is open to the public. Register here to attend.

For McEntire these events mattered for both nonprofit professionals and the community as a whole because they stress the importance of creating and sustaining positive relationships, and showed how fundraisers can encourage current and potential donors to continue learning.

She also encourages individuals to look beyond the event itself. “Events aren’t always the answer or a good idea. To evaluate the success of the event, you have to look at the relationship capital it creates with potential donors, rather than the short-term financial cost.

McEntire also takes to heart the idea that fundraising professionals should not diminish their role as relationship builders

After offering this series, here are some suggestions that McEntire offers fundraisers and other nonprofit professionals when designing these types of events:

  • Hosting events adds value to the lives of those attending, and acts as a “safe” entry point to the organization.

“If you love what you hear, and want to get plugged in with us, great! If not, we’re operating on the idea of “philanthropy first,” so we hope you leave with important takeaways no matter what.”

  • Bigger events aren’t always better events.

“These conversation events have been intimate and they allow me and my team to connect on a deeper level with those who attend and also give us better opportunities for follow-up.”

  • Fundraisers can avoid falling into the trap of assumptions.

“We assume that everyone thinks about giving as much as we do, and that’s not the case. As professionals, we should always be interested in learning more about where our donors are coming from, and events help foster that understanding.”

  • Before and after the event, encourage donors to bring up their philanthropic priorities in meetings with financial advisors.

“If their advisor explains that they (the client) have a certain amount to give and asks what organization they want to support, events can keep that organization at the forefront of their mind.”

“As Dr. Tim Seiler at the school says, this profession is one that we should be proud of. When we raise support for The Oaks, it’s an invitation to potential or current donors to invest in something transformative and they know we take their investment seriously,” McEntire said.

Abby Rolland is content coordinator for the Indiana University Lilly Family School of Philanthropy at IUPUI and a current student in the master’s degree program.  

Andrea Pactor, M.A. ’03, is interim director of the Women’s Philanthropy Institute at the Lilly Family School of Philanthropy.

 

 

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To start an event series, McEntire encourages fundraisers to go through these steps.

  • Create a strong proposal for the series, with a thoughtful implementation strategy.
  • Advocate for internal buy-in.
  • Utilize current relationships to recruit expert speakers.
  • Use the event to grow and strengthen relationships through those who: attend, volunteer to speak, and host the event.
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Aug 13

Losing our edge: What could the for-profit’s sectors purpose benefit mean for the nonprofit workforce?

By Sponsor Insight

By Bryan Orander, president, Charitable Advisors  

If you have been part of the nonprofit sector for more than a few years, you have been in conversations about the natural advantage that nonprofits have in attracting purpose-driven staff and volunteers.

In fact, nonprofit board and staff leaders often view this “purpose benefit” as a trade-off to higher compensation.

The blurring of the boundaries between nonprofits and businesses around service delivery has been happening for years with businesses entering niches to deliver government funded services and nonprofits starting businesses or social enterprises to create new funding streams.

A more recent trend is the increased focus that businesses have taken to make the world a better place.

While a cynic can note that some of these declarations and initiatives seem more like engagement and recruiting strategies targeting younger employees, there are also businesses that are taking their roles in contributing to the community seriously, even building their business models around “giving back.”

And what effect might that have on nonprofits? What does it mean if purpose-driven employees can feel they are making a difference by working for a business? Does a business have more to offer in compensation, current technology and career advancement?

As we wrap up the Central Indiana Salary Survey and post to our website on Sept, 5, attracting and retaining quality staff are high on every leaders’ agenda. In a strong economy, where most employees have more options, it is critical that every nonprofit is intentional about connecting employees to its mission, ensuring they feel a sense of accomplishment, and that managers and supervisors are equipped and empowered to create a great workplace.

Learn more about hiring and retention in nonprofits.

Bryan Orander is founder and president of Charitable Advisors. After 18 years of for-profit leadership in the Fortune 50 business world and a disability-related nonprofit, Bryan joined a large regional accounting and consulting firm. In 2000, he founded Charitable Advisors with the vision of going beyond traditional consulting to become a connector, advocate and problem solver for the nonprofit sector.

Aug 06

Mays Family Institute advances deep convictions

By Feature, Fundraising

By Lynn Sygiel, editor, Charitable Advisors

In December of 2014, Bill Mays’ obituary lauded his entrepreneurial savvy and financial skills. Not only had the Indianapolis businessman run successful companies, but he had supported over 100 others by sharing his time, talent and treasures. These weren’t his only accomplishments – he and his wife, Rose, were generous philanthropists who donated to community organizations and educational entities.

So it’s not surprising that when his family and friends sought to honor his legacy and his family’s continued commitment to community and philanthropy, they would seed a project designed to endure.

The name was christened by Indiana University President Michael McRobbie in 2015, and after conversations with Lilly Family School of Philanthropy staff, morphed into the Mays Family Institute of Diverse Philanthropy. And while Lilly Family School’s Dean Amir Pasic didn’t know Mays, together with Mays’ family and Mays’ friend, Lacy Johnson, Pasic shaped the concept and came up with a plan.

“His family and close friend decided that one of the most important pieces of his legacy was his philanthropy, and it should be commemorated and remembered. As they talked to us about memorializing something in his name, it became clear how important diversity and inclusion are in the world of philanthropy,” said Pasic.

 

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A Diversity Speakers’ Series will bring nationally prominent speakers to Indianapolis to examine diversity in philanthropy and nonprofit organizations during the 2018-19 academic year. The events are open to the public. Additional speakers information for the spring will be added.

The Mays Institute Speakers Series schedule.

  • Oct. 4, 5:30 p.m., IMA at Newfields, Helene Gayle, CEO, Chicago Community Trust
  • Oct. 30, 5:30 p.m., Indiana Historical Society, Jim Moore, CEO, University of Illinois Foundation
  • Nov. 6, 7 p.m. Spirit and Place Festival, at Shelton Auditorium, Christian Theological Seminary, Race Matters: Faith & Philanthropy in Black Communities. Starsky Wilson, Dr. Brad Braxton and Aimée Laramore
  • Jan. 15, 2019, 5:30 p.m., Central Library, Susan Taylor Batten, CEO, Association of Black Foundation Executives
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Initially, the Mays family and Johnson endowed scholarships for a graduate and undergraduate student. The first Bill Mays Fellowship for a graduate student will be awarded next year and the Lacy Johnson Family Scholarship for an undergraduate will be given out in 2020. Recruiters have already started attending diverse conferences to spread the word, hoping to attract students from underrepresented populations.

Pasic said there are foundations and other association initiatives to boost philanthropy, but saw that the school could have a unique role.

“It quickly became obvious that there was a need and a demand for research and the academic voice to play a role in complementing that effort. There is also the importance of understanding what’s going on more deeply,” said Pasic.

According to Ann Boyd-Stewart, the Lilly School’s assistant dean of development and alumni relations, the team has worked since 2015 to secure operating funds from businesses, leaders in the community and foundations.

After $250,000 was raised for operating expenses, some funds were used to sponsor a diversity summit in 2017. The goal was to listen and learn from scholars and practitioners on what role the Lilly Family School of Philanthropy could play in advancing diversity efforts throughout the philanthropic sector.

The Institute was officially launched last month. Una Osili was named the dean’s fellow and will conduct research studies on various aspects of diversity and philanthropy. The Mays family made it clear that this is an institute focused on historically underrepresented communities and individuals. It will attempt to glean information about donors from these areas – information that is already understood about traditional donors groups.

For Rose Mays, Bill’s widow, the research that the Institute will focus on is exciting because from her perspective as an academic, research findings cannot only shape practice, but have the potential to help those in the field see the power of giving in underrepresented communities. Not only can it help be more sensitive to those characteristics, but help guide practice as well.

“Much of our family’s giving has focused on advocacy, especially advocacy for marginalized groups. The institute’s focus on diversity, equity and inclusion in the philanthropic sector aligns with those values and allows students, faculty and the community to experience an array of insights and perspectives on these issues,” Mays said.

Mays recognizes the value of philanthropic service and with her family, has fostered many educational opportunities. As a retired professor and administrator at IU School of Nursing, she understands how things work in higher education and the value of an institute.

“The Mays Institute Speakers Series and Dr. Osili’s appointment will increase awareness and understanding of robust philanthropy that is an integral part of all diverse communities,” said Mays. “Not only is there value, but there is power. I have seen the Women’s Institute at the School of Philanthropy and how that really helped shine a spotlight on women’s giving.”

The Mays Family Institute joins the Lake Institute on Faith and Giving and Women’s Philanthropy Institute as a Lilly School of Philanthropy program. All three have office space and dedicated employees, and while the Mays Family Institute is the newest, it is expected to grow.

Based on external information gained at the 2017 summit, Pasic said that research is one area where the Lilly School can lead.

“We are a unique voice by the fact that that we don’t represent a particular constituency — we don’t represent foundations, we don’t represent the fundraising profession, we don’t represent the wealthy or the volunteering groups. We are truly independent, so we are a great place to convene and allow people of different perspectives to come and be heard,” said Pasic.

Included in this first-year effort is the Diversity Speakers’ Series that will bring nationally prominent speakers to Indianapolis to examine diversity in philanthropy and nonprofit organizations during the 2018-19 academic year. The events will be open to the public with the first taking place in October.

This academic year, according to Pasic, diversity and inclusion are the major themes with efforts underway to have faculty incorporate more systematically diversity and inclusion into their courses and the school’s curriculum.

“We have one course on race and justice in philanthropy but we also want to make it go across the whole curriculum more broadly. So it’s become one of our priorities to look at for this year and for the future of the school,” said Pasic. “The family’s interest was a wonderful coincidence.”

Boyd-Stewart said a social justice course is a good example. The school offered a graduate and undergraduate course that studied the topic, but faculty suggested there shouldn’t be just one course, but rather the topic should be infused across the curriculum.

“When teaching about writing an RFP, shouldn’t the type of community have an effect on what is written? What if it is responding to a Latino community? It’s made us really step back and think about how we become more welcoming, not just our school, but in our curriculum,” she said.

The initial operating funds have also been used to send students to different conferences, like the Association of Black Foundation Executives.

Moving forward, the focus is to grow the Council of Advisors, the institute’s governing body. Right now, according to Boyd-Stewart, there are nine members with Lacy Johnson chairing the council. The council’s focus is to raise operating support for lectures, student projects and training programs. They also have a five-year goal to create a $5 million endowment to provide funds for a strong support system, which includes hiring an executive director.

For Mays, becoming self-sustaining is important, but learning more about underrepresented populations is critical.

“My hope is that we’ll know more about their giving and be better positioned to meet their needs and hear what their concerns are in pursuing their philanthropic interests,” she said.

“We really want to engage the community, which is very diverse. It may be a challenge, but I think it’s a working challenge,” said Boyd-Stewart. “The conversations that I am having with people about the Mays Institute are very emotional. After all, the definition of philanthropy is love of mankind.”

Jul 23

Why a strong HR department improves your nonprofit

By Sponsor Insight

By Mike Harrington, president, The Synergy Companies

A business changes as it grows. What once was a one- or two-person shop hires more talent as new roles are created to meet daily demands. Capital rises, office space expands, and business goals are set higher and higher. Throughout it all, there is one area that can make all the difference and yet is often relegated to a lower priority. A strong HR department improves your business and has become a focus for successful organizations across America.

Alleviates unproductive multitasking

Consider an organization that doesn’t have a true HR department. There are still HR-related activities that must be completed by somebody. After all, who processes the payroll? When an employee has a problem, whom do they report it to? Who is conducting onboarding, processing hiring paperwork, or running trainings?

Despite being unrelated to an organization’s core business, HR responsibilities add up quickly for even the smallest of companies.

When a specific department doesn’t exist to carry out this function, a member of the management team often shoulders the responsibility. Unfortunately, that typically means spending the time he or she doesn’t have and turns the focus away from business strategy to “deal” with HR duties that he or she may not have much knowledge about.

While some may get by with multitasking in this fashion because, as a smaller organization, doesn’t feel as though there are HR activities daily, it results in a compromise of HR’s ability to add to and improve the nonprofit.

Dedicated, expert HR professionals create a strong HR department because their focus is solely on human resources. While some days like payday may see a flurry of HR activity, other “slower” HR days are the times this department can focus on improving the workforce, environment and culture. Abstaining from implementing a true HR department prohibits a company from reaching its full potential.

Minimizes risk and liability

Each passing day seems to produce a new law or regulation that organizations like yours must comply with. Even the smallest nonprofits have to address complex legislation, making sure they remain in compliance with applicable rules. A strong HR department is an organization’s leader in these efforts. There are payroll, tax law, employment law, benefits administration, disability, hiring, firing and training considerations among a number of others that must be appropriately taken care of. While some of it may feel like bureaucratic paperwork, that doesn’t change the fact that one false move can cause significant issues.

Consider just one piece of this in the topic of harassment and discrimination, a hot-button issue surrounding today’s workplace. When an organization has robust training for all employees in these areas, their liabilities are greatly reduced. The workforce understands exactly what constitutes a violation and how to respond if they witness one. Management knows precisely what to do if they are presented with a claim. Instances of harassment and discrimination can drop sharply. Even if they do occur, when an organization follows all the right steps in addressing and reporting them, they clear themselves of a great deal of liability.

When nearly 20 percent of U.S. adults have been sexually harassed at work, taking the right measures is key. The legal implications are similar for several other areas and, to be addressed appropriately, require a strong HR department.

Improves Employee Engagement and Retention

HR is the internal face of your organization. When the department operates at subpar levels, or if someone without HR expertise is trying to run these activities on the side, it deteriorates the employee experience and negatively affects culture. If employees encounter HR disorganization and confusion, or if they have to wait weeks for answers to common HR questions, it will lower their engagement.

At a time when 87 percent of organizations cite culture and engagement as a top challenge, it’s clear that employees depend on a strong HR resource. When they have a question or concern, they need to know who to go to and expect rapid resolution. Above all, they must be able to trust their HR person. If the onboarding experience is streamlined, paperwork is void of mistakes, and company trainings are professional and helpful, that trust is built. When HR thrives, your employees thrive as well, and that can make all the difference in keeping them happy.

Why a strong HR department improves your business

While the need for a strong HR department is clear, there’s no sugarcoating the fact it can be a difficult and costly overhaul process. For small nonprofits in particular, the cost of hiring HR employees may be prohibitive. Those in this position often find that a PEO like Synergy is an effective and affordable answer. In fact, businesses that partner with a PEO grow 7-9 percent faster and are 50 percent less likely to go out of business. At the end of the day, whether through a PEO or on your own, your HR department will determine just how far your business will succeed.

Mike Harrington is the president of The Synergy Companies. Joining the organization in 1995, Harrington has held several leadership roles within the company working to ensure its effective delivery of human resource and PEO services. Prior to joining Synergy, he spent five years with Safeguard Business Systems in direct sales and sales training and support. Harrington holds a BS degree in marketing from Eastern Illinois University.

When you’re looking for HR expertise that can provide a boost to your company, look no further. Synergy is here for you.

 

Jul 16

Never a more paramount time to connect young professionals in Indianapolis

By Feature, Leadership

By Caitie Deranek Stewart, board member, YNPNIndy and YNPN National

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Conference special

For Not-for-profit News’ readers, YNPNIndy and YNPN National invite you to join us at the conference. Register with the code (CApromo18) to receive a $35 registration discount.

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The nonprofit sector in Indy faces some pretty monumental challenges: homelessness is on the rise, the opioid epidemic is hitting our community hard and the school violence seen in other places is now happening in our own backyard.

As professionals passionate about creating safe, healthy communities for our clients, our neighbors and ourselves, it’s easy to be disheartened or to want to keep our heads down.

At the Young Nonprofit Professionals Network (YNPN) — we know you are working tirelessly every day to create a more just and equitable world, putting in long hours and then volunteering in your free time. You’re driven and ambitious. You aren’t just talking about making a better tomorrow — you’re working every day to shape the world we all live in.

But do you feel like you need a shot in the arm? Something to inspire and motivate you to keep going?

Two years ago, I was lucky enough to attend YNPN’s 2016 National Conference and experience the potential benefits of the conference.

Amassing the top nonprofit talent from across the country in one room allowed me to see that this was going to be a different experience from any other conference I had ever attended. This was my shot in the arm. Looking around the room, I felt excitement circulating through the air. People from across the country were ENGAGED—sharing tips, tricks, and experiences on our space. Community was created in a flash.

More importantly, a kinetic energy — the kind needed to change the nonprofit sector — was being transferred before my eyes. Even while discussing difficult subjects like inequality and how to make careers in the nonprofit sector fulfilling and sustainable, attendees were building connections. Between learning concrete skills they could apply right away, young people with a passion to change the world were being inspired to lead.

And now you have the opportunity to get a similar energizing experience. This summer, YNPNIndy is leading efforts to bring this incredible experience to Indianapolis. Our theme this year is Change in Action: Equity and Advocacy for Self, Sector, and Society.

There has never been a more paramount time for young nonprofit professionals to be equipped to take action on behalf of themselves and others in the workplace and help to make ALL SPACES fair and diverse. In Indianapolis and across the country, examples of the impact of inequality are rampant. Building awareness and skills to make this change possible is essential to making the world a better place, and this conference can make that possible.

For that reason, it’s important that you attend, to get exposure to new ideas and tools that will help you be your own best advocate, as well as continue advocating for marginalized communities and (most important) impact the systems you influence with REAL CHANGE.

Here’s a glimpse of the inspiration we have planned and you won’t have to travel (For the full schedule go to: http://conference.ynpn.org/schedule). You’ll hear from incredible speakers nationally and from across Central Indiana including:

  • Kimberly Peeler-Allen, our keynote speaker, who has been working at the intersection of race, gender and politics for almost 20 years. Peeler-Allen is the co-founder of Higher Heights, a national organization building the political power and leadership of Black women from the voting booth to elected office.
  • Yolanda Caldera-Durant, director of programs at Fund the People, will lead a workshop about how to invest in the nonprofit sector’s most valuable resource: its people. Caldera-Durant runs a campaign to increase awareness about the deficit of investment in nonprofit professionals who represent 11 percent of the U.S. workforce. She brings years of experience in grantmaking from the Connecticut Health Foundation, Annie E. Casey Foundation and Fairfield County Community Foundation.
  • Matthew Feltrop, executive director of The Patachou Foundation, fighting to end childhood hunger, food insecurity and low food access in Indianapolis. According to Feltrop, it is unacceptable that that Indianapolis—often called the breadbasket of America—is still facing a debilitating hunger problem.
  • Michael Twyman, professor at the Indiana University Lilly Family School of Philanthropy, will lead a workshop exploring the origins of race, racial ideologies, and the politics of racial classifications in the context of American history.

For Not-for-profit News’ readers, YNPNIndy and YNPN National invites you to join us at the conference and register with the code (CApromo18) to receive a $35 registration discount. It’s time to take unified action to make our world better. Attending #ynpn18 is the first step.

Sign up today at conference.ynpn.org! Also, follow us on all social media @YNPNIndy for updates leading up to the conference.

Editor’s note: this guest article was written by Caitie Deranek Stewart. She is the associate director of development at the IU School of Medicine. Prior to joining the IU School of Medicine in the fall of 2014, Deranek Stewart was the donor relations specialist at the IU Lilly Family School of Philanthropy. She is an active volunteer with a number of initiatives and joined the board of the YNPNindy chapter and the YNPN National Board in 2015.

Jul 03

Charitable Class: What is it and how can you ensure you are serving one?

By Uncategorized

By Zachary S. Kester, Executive Director and Robert Miller, Program Officer, Charitable Allies

Still unclear and fretting over whether your charity serves a charitable class?  

Do not worry, you are not alone in this concern.

It is a common issue among nonprofit organizations and identifying a charitable class is paramount for those seeking to qualify as a 501(c)(3) organization. Some organizations may worry that its targeted population is simply too small. Others may not fully understand the IRS’s ostensibly rigid requirements.

Yet, sometimes ensuring that a charitable class is being served can morph into a difficult and burdensome exercise. However, by knowing the following key concepts of nonprofit law regarding serving a charitable class and adopting a few ways to ensure compliance, a tax-exempt nonprofit organization can avoid most, if not all risk, associated with this area of nonprofit operation.

Definition of charitable class 

Generally, a charitable class is the group of people or other defined group, such as the homeless or indigent population, endangered animals, or wildlife habitats, that can properly receive assistance or programming from charitable organizations.

In this context, properly means that the class being served by the organization needs goods, services, or funds provided in a way that fits within a charitable purpose as laid out in the Internal Revenue Code § 501(c)(3), i.e. “for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition … or for the prevention of cruelty to children or animals.”

According to the IRS, a charitable class must be sufficiently large or indefinite so that aiding them benefits the whole community. Members of a charitable class can range from a person deemed indigent and in need of public housing to a prisoner or parolee needing rehabilitation services to a person suffering from a recent disaster and is need of temporary food, water, and shelter to endangered animals. Additionally, other potential charitable classes include, veterans, elderly individuals, physically or mentally handicapped, talented and/or gifted individuals, families of people killed in the line of duty, the poor, the distressed, and even other charitable organizations. In the end, you must ensure that you are serving a “charitable class” or you will not be given tax-exempt status under 501(c)(3).

Further, a charitable class may include a group of members not inherently considered a charitable class. Take for instance a for-profit business. For-profit businesses rarely constitute a charitable class. However, given the fact that a business may suffer just as much as an individual during a natural disaster, the IRS has typically allowed businesses to be included as members of a charitable class. This means that during a declared disaster or even in the wake of a terrorist act, the IRS may approve tax exemption for nonprofit organizations organized and operated to combat community deterioration, deeming the benefit to the business as incidental.

In order for a charitable class to be sufficiently large, tax-exempt organizations need to serve a large enough class to prove to the IRS that the entire community is benefiting from their activities, either directly or indirectly.

Similarly, tax-exempt organizations organized under 501(c)(3) are not permitted to serve only one individual or even a small, defined group of individuals. For example, an organization organized as the Jane Doe College Fund or the Children of John Doe’s College Fund operated to provide scholarships to Jane Doe and the children of John Doe, respectively, would not be given tax-exempt status as a defined charitable classes of such small sizes are not sufficiently large.

However, as mentioned above, being sufficiently large is not the only way to create a charitable class that meets the IRS’s requirements. To that end, the IRS does not require a charitable organization or nonprofit to determine every possible individual to lump into these groups. In fact, as mentioned above, the IRS specifically allows indefinite groups of individuals, where the number of individuals who may benefit from the charity or nonprofit has yet to be realized. This exception is understandable for a number of reasons, including the fact that the IRS has seemed to recognize that a new charity may only serve a small number of individuals before it is able to secure the necessary support to expand its services.

For example, the widows or widowers of firefighters killed in a given geographic area while discharging his or her duties would constitute a charitable class, even if the number of potential beneficiaries is undetermined. In fact, in some cases, the class might only include one person and the charitable class will be deemed sufficient so long as the potential class is indefinite. This can be accomplished in this specific scenario simply by organizing your nonprofit so as to support all widows or widowers of firefighters killed in the line of duty in a specific area. Therefore, even if there is only one widow or widower at the time the organization is organized, the class can still get larger and encompass more people.

To simplify, an organization created and operated solely for the benefit of one person would generally not qualify for tax-exemption as a charitable organization or nonprofit organization. Conversely, an organization organized and operated to benefit a large group or an indefinite group would qualify. 

Ensuring your organization’s compliance 

As difficult as it may seem it some instances, the IRS does require nonprofit organization’s to retain proof that it is serving members of a charitable class. In order to ensure that you are complaint with the rules surrounding charitable classes, the following practices have been identified as being able to provide such proof.

First, using in-take sheets to register the recipients and record their demographics is a good start. These demographics should include the basic information about age, sex, etc. along with any specific information your organization would need to prove that it is serving those within the charitable class it was organized to serve. For example, if your organization is supposed to be serving the poor, then part of the in-take sheet should include a request for documents that contain information about the recipient’s income, like a check stub, tax forms, etc.

Other information that should be received from the recipients of your organization’s services include identification documents, such as a driver’s license, state ID, Social Security card, birth certificate, passport, etc. Many grantors or donors require collection of this documentation too. Also, be sure to keep the information collected highly secure to avoid any privacy violations.

Lastly, these in-take sheets should include a sworn affidavit or affirmation attesting to the veracity of material information provided. In some cases, much of this information cannot be provided by the intended recipients due to their inability to access them, because the documents have been lost, or any number of other plausible reasons. Therefore, as insurance, your organization should also include a document that the individual can sign that states they do not have the necessary documentation and affirm that they meet the necessary requirements to receive the services being offered.

In the end, your organization needs to be aware that the IRS does require organizations to retain sufficient evidence that they are serving a charitable class. A simple assertion that a charitable class is being served is insufficient. Thankfully, there are a number of ways to prove this and the above examples are just some of the ways that have been identified to provide the IRS with the necessary information. 

Conclusion

A charitable class must be sufficiently large or indefinite so that aiding them provides a benefit for the community as a whole. Additionally, a charitable class must be made up of individuals, organizations, animals, etc. that are eligible to receive assistance from nonprofit organizations due to their connection with one of the permissible charitable purposes. This may seem like a relatively easy step in creating a non-profit, but failing to ensure that your organization serves a charitable class can cause your organization to lose its tax-exempt status or be denied tax-exempt status in the first place.

Even once you receive your tax-exempt status, you cannot relax and forget about the concept of the charitable class. You must ensure that you can prove to the IRS that the recipients of your organization’s services would qualify to be members of a charitable class.

Overall, the concept of a charitable class is an often forgotten or overlooked aspect of operating a tax-exempt non-profit organization. However, if your organization follows the guidance and tips provided above, then your organization should be able to avoid risking its tax-exempt status due to something that is relatively easy to prevent by ensuring compliance with the requirements of serving a charitable class.

 

Attorney Zac Kester provides generalist and strategic nonprofit legal and consulting services. He holds a Master of Laws, a post-law school advanced degree, in which he studied the unique needs of tax-exempt nonprofit organizations. His legal and consulting career has focused on nonprofit organizations.

With highly experienced legal and training personnel, Charitable Allies provides all manner of legal and educational services for boards, officers, management and staff of myriad charities throughout the sector. From basic one-time questions about a single matter to training for boards and officers to complex reorganization or merger of activities, Charitable Allies is your go-to cost-effective provider of legal services to nonprofit organizations.

Contact Zac Kester, executive director, at 317-333-6065 or zkester@charitableallies.org with any questions.

 

 

Jul 02

Voices from the field: lessons on collaboration

By Governance

By Lynn Sygiel, editor, Charitable Advisors

Partnership, collaboration and merger are terms often bandied around in the nonprofit world. And while the concept of collaboration isn’t new, it has become a hot topic as a way to reduce duplication, increase coordination and contribute to collective impact.

According to a 2014 Bridgespan survey of nonprofits and funders, the overwhelming majority of nonprofit and foundation CEO respondents had taken part in one or more forms of collaboration. The survey found that 91 percent of CEOs have engaged in one of four common forms — associations, joint programs, shared support functions and mergers.

While nonprofits reported the most activity in the less integrated forms, 55 percent of foundations wanted to see more mergers, and 76 percent of nonprofits wanted to see more shared support functions.

In early May, Charitable Advisors partnered with Charitable Allies to host a forum. Six local nonprofit leaders took part and shared experiences and the lessons learned for an audience of nonprofit professionals.

The panelists were: Stephen McCaffrey, president and CEO at Mental Health America of Indiana; David Westenberger, CEO of Indiana Youth Services Association; Jim Morris, president and CEO at Greater Indy Habitat for Humanity; Kendra Belden, operations director, Lutherwood Residential; Janice Hicks-Slaughter, director of partnerships and outreach at the School of Education and Exercise Science, Marian University; and Kim Donaghue, senior consultant, Newgrange Consulting.

As the director of agency services at United Way of Central Center Indiana for over 12 years before her retirement in December, one of Donaghue’s primary functions was building capacity, and in this role she facilitated six or seven mergers. There was one merger she deemed perfect.

“It was an excellent agency that did wonderful work, they were smart in looking far ahead. They weren’t in financial trouble at the time, but they knew that they weren’t sustainable. Instead of waiting until they were in trouble, they decided to be proactive and began looking around at what their options were,” Donaghue said.

Most difficult, according to Donaghue, was identifying potential partners.

“Truthfully they had already identified three possible partners. They really only looked at options that were culturally and mission-appropriate,” she said.

With United Way’s financial help, the agency hired a consultant to help exam its options, and later help pay for merger legal fees.

She thinks the reason this one was successful was because the two nonprofits had complementary programs, and the agency looking to merge had programs that the other didn’t have. In addition, the partnering agency was not only able to hire the entire staff, but hired the former executive director as its development director.

“It was the most perfect marriage, I’ve ever seen,” Donoghue said. “They also absorbed some board members.”

Critical, too, were the separate meetings the consultant convened with the nonprofit’s executives and board members, giving both the chance to talk candidly and think objectively.

“It’s hard work and you need people to think big picture and from their professional selves perspective more than the personal.”

Donaghue believes most funders are receptive to support an agency exploring combinations, but are not as receptive to organizations that are failing and looking for any lifeline.

“From a funder’s perspective, we like to see an agency being proactive about its situation and really look at itself and see what they have to offer another organization,” she said. “If an agency is in dire financial straits, let’s face it, it’s going to be real tough to find a merger partner. There are not going to be a lot of agencies out there that are going to want to absorb someone in financial trouble.”

Not all consolidations are successful. Morris, who became the president of the Greater Indy Habitat for Humanity in 2011, shared an anecdote to illustrate when a conversation can take an unexpected turn.

Over the course of a year, two area Indiana Habitat affiliates discussed merging, and had all but signed the agreement. In the 11th hour, Morris received a call offering a deviation from the original plan. Rather than merging, it wanted to hand over the retail operation to Indianapolis, and keep its executive director at the helm of the local Habitat affiliate. For Morris and his board, this would have been a money-losing proposition.

“It was kind of frustrating. I really struggled with when there is an opportunity to meet a greater demand, and we have an opportunity to be more effective and efficient, but I understand that the humanness of who we are,” said Morris. In the end, the affiliate exec didn’t want to lose her position.

Ultimately, the panelists agreed, relationships are the foundation of successful collaborations.

Belden said a partnership between Community Health Network and Lutherwood Child and Family Services in 2013 led to establishing a relationship with an organization with a specific expertise.

Lutherwood, a locked secure treatment facility for youth who are placed there through the courts, through DCS and probation, has therapists and doctors on staff. The center’s staff witnessed new challenges for some of the residents: They were survivors of human trafficking. To the extent they could help, the Department of Child Services was involved, but didn’t have the expertise to offer programs for these girls.

The facility’s CEO had worked with Megan Jessup, the COO of Ascent 121, a program that provides long-term trauma recovery for teen survivors of trafficking. What if Ascent 121 could provide the much-needed programming and lend its expertise to the situation? The Impact Program, which provides residential care for teen survivors ages 12-18, was designed and Lutherwood entered into a contractual partnership with the Carmel-based organization to deliver this service.

“It goes back to relationships that we already had. Communication was a whole lot easier because we knew her, she knew us,” said Belden.

That relationship allowed open communication and to reach a consensus about programming which has continued. There are weekly partner meetings with both staffs. As an example, Belden shared how Ascent 121’s close working relationship with the FBI affects the center’s work. When there is a pending FBI raid, Ascent 121 communicates with Lutherwood’s staff and the facility’s staff can be ready to house additional residents.

Hicks-Slaughter is not new to mergers.

In 2002, she experienced her first with the merger of Big Brothers and Big Sisters. At the time only about five Big Brothers and Big Sisters chapters nationwide were still separate, and she was the executive director of Big Sisters. After 18 months of meetings, the organizations were blended, and she became COO of the newly formed local chapter.

Her second merger was the Hook’s Discovery and Learning Center with Marian University. The science-based program was a good fit for Marian, and its programming was integrated in the school’s outreach work with schools. And to round out Hicks-Slaughter’s trifecta, she had a role in the Ruth Lilly Health Education Center merger with Marian University in 2014.

At the time, the Ruth Lilly Center noticed trends in declining school field trips, and anticipating a reduction in revenues, the CEO of the center began meeting with different entities to identify possible collaborations. Marian University was one of those places.

“It started out as a meeting to just kind of talk, and after so over so many meetings, many lunches, many conversations, it was decided that there was such a mission cohesiveness, it should come together. Key was that the trustees of Marian and the board members of Ruth Lilly Health Education Center came together in agreement because the case for this was strong.

“We were also incredibly fortunate to be able to make that case to a major funder who provided a merger grant. It was a three-year grant that helped us the staff move out of that facility and transfer all of its programming to an outreach format that emanates out of Marian. I’m now responsible for outreach, and partnership development at Marian but I’m also the director of the Ruth Lilly Health Education Center, and we continue to grow and get stronger,” said Hicks-Slaughter.

She said it was not an inexpensive venture to incorporate staff and ensure a stable presence. In addition, the grant allowed them to incorporate the “wow” factor into the outreach programming, incorporating virtual reality.

In Indiana, according to the secretary of state’s office, from 2007 through early 2015, 441 nonprofits filed for mergers. The previous year, there were 71 on the list, including the Ruth Lilly Health Education Center (RLHEC) with Marian University. Long-time nonprofits like the 25-year-old Ruth Lilly Health Education Center and Hook’s Discovery Center have been reinvented by joining with Marian to continue delivering services to schools through outreach programs.

Both Donaghue and Hicks-Slaughter reminded that it’s important to not let your donors be surprised. Communicate early and often so they know that the organization is being responsible.

Hicks-Slaughter said once the merger was finalized, they invited donors to a reception so they could see and hear from people who were in the new roles.

“They could hear about the future, not just that we merged, but this is why we merged and where we see ourselves heading. And that’s what they want to hear because they’re not all happy about it. Make sure that you communicate with them and continue,” she said.

The 2014 Bridgespan survey also found that CEOs said the more integrated forms — shared support functions and mergers – were more successful, claiming that joint programs failed 20 percent of the time. Often they felt pressure from funders to engage in some type of joint programing, but when the funding ended, so did the collaboration.

While shared support functions and mergers take more to implement in both effort and money, the outcome provided structure to achieve impact.

McCaffrey’s and Westenberger’s organizations are examples of support function partnerships.

McCaffrey oversees 12 subsidiary nonprofits as part of Mental Health America of Indiana. At the time McCaffrey arrived at the organization in 1991, there were several organizations that had spun off and were frail and fledgling.

“We made a strategic decision to say, ‘Why don’t we ask our spin-offs, if they’d like to come back?’”

The plan allowed subsidiaries to keep their boards and make decisions on programs and policies. As part of a larger group, they could benefit from the statewide group’s business expertise, but had to adhere to its accounting procedures, HR procedures, and be supervised by the parent organization’s staff.

“Sort of independent but sort of integrated,” said McCaffrey. “Eventually it became our strategic way of growing and being more secure financially ourselves. I think it’s been a good thing, and it allows us to expand our reach as an organization, with 12 or so many boards and a volunteer and staff reach that’s huge. It has provided lots of options for grants or funder applications,” he said.

Westenberger has had similar experiences, first with nine nonprofits that became one organization, Fountain for Youth in Columbus, and since 2012 as Indiana Youth Services Association (IYSA). His organization has responsibility for more than 30 client organizations that outsource their accounting and HR functions to IYSA. Besides member services, the organization operates its own programs and is now credentialing Indiana youth workers and building awareness of programs.

“Before these small nonprofits had a part-time bookkeeper who may have only had minimal training. Now, they had an outsourced CFO who is Ivy Leagued educated.

“It wasn’t even the value of the service and when you add the value of the service and what you can do with that money in the community, you’re at $1 million all of a sudden. Out of your $18 million, you’re spending collectively; you just added a $1 million in your social return. That’s the driver; not can I save $100 bucks a month on my outsourced accounting,” he said.

Donaghue reminded the group that it’s relationships in the community that afford you opportunities for partnerships. Begin with relationships in the community, then look to state associations and groups and even consultants who might work with a similar organizations and offer valuable connections.

“Again, I just think it’s relationships and keeping your head up for whatever opportunities are out there,” she said.

Jun 25

Art Fair: an opportunity for community connection

By Sponsor Insight

By Jen Pittman, Assistant Vice President for Community Affairs, OneAmerica

When OneAmerica® went all-in as a title sponsor of the Broad Ripple Art Fair (BRAF) in 2016, our goal was to paint a brighter picture of support for the arts in Central Indiana.

Each spring since 1971, BRAF brings our community together on the grounds of the Indianapolis Art Center to highlight the creative current flowing through Indy. It’s an enriching community gathering, Indianapolis Art Center’s largest fundraiser, and a unique, vibrant opportunity to support artisans. BRAF also reminds us that we have much to celebrate, because arts and culture are thriving here.

So what’s the connection between arts and financial services? First, art and the artists who create it matter to us because they make our hometown more vibrant. We simply can’t imagine an Indianapolis devoid of creativity or artistic perspectives. In celebration of those talents, our home office is filled with the works of Hoosier artists that enhance our workspace and elevate our spirits. Participating in BRAF is another opportunity for us to connect with and support our creative community.

BRAF also helps illustrate why our work in financial services is so important. “403b” is an essential phrase at OneAmerica, because it refers to a special type of retirement plan for nonprofit organizations – like the Indianapolis Art Center. The mechanics of preparing for retirement may seem complicated, but our philosophy is simple. Everyone deserves to retire with financial peace of mind, especially those who have dedicated their careers to serving others and making our community a beautiful place to be.

Since 1964, we’ve been helping nonprofits in our hometown and across the country with their tax-exempt retirement plans. And in 2016, OneAmerica launched a Tax Exempt Center of Excellence (COE) website [https://www.oneamerica.com/campaigns/Tax-Exempt-COE/Tax-Exempt-Center-of-Excellence] to serve as a central hub for financial professionals to access everything from market insights to information about tax-exempt products and services. It’s another way we serve those who serve others, by sharing our expertise of the unique challenges and opportunities in the tax exempt marketplace and providing other financial professionals supportive tools and resources.

Our work comes full circle with BRAF. Connecting with art, investing in community vibrancy and providing excellent business services for nonprofits are all things that strengthen us as individuals and as a community. For an organization whose roots in Indy go back more than 140 years and plans to continue to grow here, community strength is paramount. The OneAmerica Broad Ripple Art Fair helps paint a picture of a strong, vibrant hometown for decades to come.

OneAmerica is the marketing name for the companies of OneAmerica. Products issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company. Administrative and recordkeeping services provided by McCready and Keene, Inc. or OneAmerica Retirement Services LLC, companies of OneAmerica which are not broker/dealers or investment advisors. Neither AUL, OneAmerica Retirement Services, McCready and Keene nor their representatives provide tax, legal fiduciary or investment advice.

Jen Pittman is a leader with passion for building a stronger Indianapolis community.  Her professional pursuits and personal endeavors represent a unique blend of corporate, government and nonprofit impact.

In 2016, she joined OneAmerica – an historic Indianapolis company with a legacy of strong community engagement – and now serves as Assistant Vice President, Community Affairs.  In this role, she is helping OneAmerica maximize the impact of corporate philanthropy for our community and for the company’s 2,000 associates.  Her partnership model brings together the company’s multi-million dollar annual community investment with the time and talents of employees through volunteering and leadership development.

Prior to OneAmerica, Jen held a variety of roles with the City of Indianapolis. Serving her final year there as Deputy Chief of Staff for Mayor Greg Ballard, she had an impressive service record during her time in local government.  She led the City’s message of “Indy Welcomes All” in response to proposed legislation threating the local tourism industry and played a leadership role in the transition team between outgoing and incoming administrations.  She previously served the City as its Marketing Director and Deputy Director of Indy Parks, with a focus on elevating the City’s international profile and instituting the “My City, My Park” program, which encourages partnering with private companies to improve services and provide critical programming at the City’s 200+ local parks.

Jen also has served as Vice President of Programs at Simon Youth Foundation. In that role, she supported educational programming in 22 Simon Youth Academies nationwide.  The non-traditional high schools support at-risk students, encouraging them to stay in and graduate from high school. During her tenure, she worked with the Indianapolis Public Schools’ administration to return an Indianapolis Simon Youth Academy back to a Circle Centre Mall location in the heart of downtown. More than 15,000 students nation-wide have graduated from Simon Youth Academies at more than a 90% graduation rate, surpassing many traditional public schools.

At the community level, Jen is a respected champion for financial fitness and helped create and launch Indy’s Campaign for Financial Fitness with Indy’s First Lady Winnie Ballard, where she served as an Advisory Board member for 6 years. Currently, she continues to advocate for and support this work through involvement with United Way of Central Indiana. Jen is a mentor for young professionals with Pass the Torch for Women, a member of the board of directors of the Greater Indianapolis Progress Committee and a committee volunteer with United Way of Central Indiana. At the neighborhood-level, she has been engaged in causes including the Washington Township Parent Council (recently working on referendum activities), serving as a volunteer for Wyldlife (Young Life’s group for middle school-aged children), and as a PTO volunteer at Allisonville Elementary and Eastwood Middle School. She is also an active member of Bethlehem Lutheran Church.

Jen earned her undergraduate degree from Franklin College.

She resides in Indianapolis with her husband, Al Ensley, and their two school-aged children.

Jun 11

Slow to adjust, nonprofit boards ramp up effort

By Feature, Leadership

By Lynn Sygiel, editor, Charitable Advisors

Diversity. Its definition may vary, but its merits are championed in just about all walks of life: schools, the political arena, the entertainment industry and especially the workplace, which includes the nonprofit world.

For over two decades, BoardSource, a Washington, D.C.-based organization designed to support today’s nonprofit leaders, has studied the issue in relation to how nonprofits are governed.

Late last year, BoardSource released Leading with Intent, a biennial study of nonprofit board composition, culture and performance. While there were some encouraging trends, the study laid bare some disturbing truths about board attitudes and actions regarding racial diversity and diversity in general.

The study found that the nonprofit sector has made little progress when it comes to building more racially diverse boards. The first study in 1994 found that just 14 percent of board members were people of color. The 2017 results increased that participation only slightly to 16 percent, although minorities now represent 39 percent of our country’s population. Twenty-seven percent of boards are 100 percent white.

That said, there are some encouraging local efforts to change the compositions of nonprofit boards.

Jeb Banner has been part of this movement. In 2006, he co-founded Indianapolis-based SmallBox, a creative agency working with nonprofits, and has since co-founded several nonprofits and served on multiple boards. Today he is the CEO of Boardable, a board management software company designed to help boards communicate.

While he’s often been in boardrooms where the topic doesn’t arise, he thinks there’s definitely intentional change happening.

As co-founder and past board chair of The Speak Easy, a collaborative workspace that serves entrepreneurs, Banner worked to balance the representation on the board.

“It was our intention to serve female entrepreneurs in particular because we feel like they’re under-resourced and the boys club thing has to be blown up in the tech world,” said Banner, who rolled off the board in 2016.

The Speak Easy, with two sites and three satellites founded in 2011, has continued this mindset, and later this week will announce its executive director, the third woman to lead the organization.

For Jenny Vance, who has been on The Speak Easy board for three years and is the current Speak Easy chairwoman, board diversity is critical and cited an example from television’s Tina Fey to illustrate her point.

Fey recently told the story of being the only female comedy writer on a team. She would write something that was funny, but it was more relatable to women and the men on her team didn’t get it. But because her opinion wasn’t relatable to others at the table, she wasn’t seen as contributing in a strong way.

“It’s about knowing there are people to relate to and who represent their interests. By doing that first, I think all those other things become possible,” said Vance.  

“By just having checkmarks of diversity, we’re not really meeting the reasons for having a diverse board. If we really dream big about who gives our members the best service, then once we’ve identified key roles to fill, I think it’s a matter of how we fill those roles while also ensuring diversity.”

She also knows that The Speak Easy continues to have work to do. The organization has matured, and is currently in the midst of this operational change. And while some board terms have concluded and the spots are unfilled, board members determined it wasn’t the best time to add new members, wanting the new executive director to have a voice in the process.

Impact is another reason to strive for a diverse board. A report released in February by the Lilly Family School of Philanthropy found that the simple pursuit of diversity could result in other areas of growth and progress that deliver rewards in the short and long terms.

The study “Impact of Diversity: Understanding How Nonprofit Board Diversity Affects Philanthropy, Leadership and Board Engagement” was researched by the school in partnership with Johnson, Grossnickle and Associates and BoardSource. One of the findings was that a diverse board improves the organization’s philanthropic engagement on three levels: participation, fundraising and advocacy.

Vance believes that takes work and that the community needs to invest in helping to grow new leaders to expand talent that is available.

“We need more people growing in the leadership roles. Investment in that is so important to us being able to see the future change in terms of diversity,” she said. “It’s got to be a community effort. It has to be part of our thought process in our government, in our entrepreneurial community, our tech community, our talent development.”

Two years ago, the Indianapolis Foundation, as part of its 100-year celebration, did just that. With help from organizations in the community, it identified a pool of candidates and then selected 10 young professionals as fellows whom they would invest in for three years.

Tamara Winfrey-Harris, CICF’s vice president of marketing and community, joined the staff just after the announcement and has become the fellows’ liaison.

The program was designed to add diversity to boards on the basis of age.

“There is a real barrier to entry for a lot of millennials,” said Banner. But I think that the reality is that some of these older leaders that have given so much to the community are going to have to step down, step aside in time, pretty soon to make room for women, minorities and the youth.”

The Indianapolis Foundation, besides awarding each fellow access to $10,000 annually for three years or a board term, has provided leadership training, and confidential sharing sessions. All 10 fellows continue to serve.

“In the first quarter of 2017, we brought someone in to talk about general board procedure and governance, and then the next quarter, we had our CFO talk about how do you read a financial statement and what are the things that you should look for as a board member. We tried to give them the tools that they need to be successful as board members,” said Winfrey-Harris.

Along with identifying these young professionals, the foundation tried to place them on boards of prominent organizations.

“Those boards tend not to be as diverse, there tends to be financial obligations that not always young people or people of color can meet, and those are boards where a board member has influence, and that’s important that we give those people influence,” Winfrey-Harris said.

Adrianne Slash, a Community Health Network diversity and inclusion consultant, was one of those selected. Slash is also president of The Exchange at the Indianapolis Urban League.

“I thought it was incredibly ambitious for CICF and the Indianapolis Foundation to say, ‘We are going to do this work because it’s important for the future of Indianapolis,’” said Slash.

“The opportunity to develop homegrown, dedicated Indianapolis talent and to invest in them really speaks to their investment in us and those organizations that they are connecting to the younger generation.

“They took a chance on us and I like to think that we’re doing really well and that people are seeing the worth and the value of having a fellow on their board. I do think that the level of scrutiny that the foundation used in making sure that they had mature younger voices sitting around the table did a great service.”

At onset there were board-training sessions for the 10 fellows.

“The trainings have been phenomenal. In our trainings, we’ve looked at governance, we’ve looked at finances, we even had the hard conversation about the way things are reported out in meetings, and whether it’s the best practices or not,” said Slash. “We’ve learned how to ask the questions around finances, how do we engage specifically if there are board members who are not acting with decorum and respect for everyone at the table.”

Slash said that the meet-up time has allowed honest conversation about board membership.

“So when this fellowship is over, will I just curl up and go away or will more board service come from it? I think the answer is more will come from it.”