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Nonprofits: Taking a productive break

By Feature, Governance

By Lynn Sygiel, editor, Charitable Advisors

The advice is often well-intentioned, and it’s something that hard-working, driven individuals may hear a lot: Stop and smell the roses, get away and clear your head, or take a sabbatical to rest and rejuvenate.

When one person in a company takes a break, the work can still go on. When the whole company takes a break, there’s an inherent danger that the vacation will be permanent.

Nonprofits, many of which operate on limited budgets, are no exception. Out of sight, out of mind? A temporary shutdown could be considered a gamble, but it could also be just what a struggling organization needs.

Several years ago, two area nonprofits  — the Indianapolis Opera Company and the Martin Luther King Community Center — announced they were taking a break. It raised many questions in the community over the future of the two organizations.

Both nonprofits resumed operations in about a year and from all indications, appear to have used their “downtime” wisely.

Both nonprofits had funding issues that needed to be resolved, but beyond trying to shore up their financial shortcomings, both used the time to figure out their roles and how they stood in the community. One tactic for both boards was to carve out time to listen to their constituents, to understand what services were important to them, or in the case of the Opera, what performances did their patrons prefer.

To help with the process, both organizations had funders who were willing to keep the process moving.

Kimberly Sterling was Martin Luther King’s board president when the decision to temporarily close was made in early 2014. The board’s goal was to temporarily transfer programming to other agencies, and within six months be back up and running. Early on, the board hosted a town-hall meeting, and according to Sterling, there was a great community response. Attendees shared which services were critical and which could go away.

“So as we began to work on a strategic plan for both the short term, and more importantly from a sustainability perspective for the longer term, we were able to heed the voice of the community,” Sterling said.

United Way of Central Indiana offered the center financial support to hire a consultant, Pat Gamble-Moore, to serve as a kind of interim director and keep things moving, things like paying bills and working with the board to design a plan. She worked with the board for nearly a year, and after taking a position at PNC, joined the board herself.

During its pause, the center’s building was never unoccupied. While there was no staff, tenants and agencies were using the building. And while it had to revamp and transform the organization, the board formed strategic partnerships with other groups such as the Edna Martin Christian Center and Kaleidoscope to provide youth programming.

Matt Mindrum, the Opera’s current board chairman, had just signed on to the board when the announcement to shut down was made. He noted that not only was the environment changing here, but opera companies were changing in many places and moving away from large performance spaces to more intimate ones and adding variety to their repertoire.

“So the business model was changing on a macro level at the same time that our circumstances were changing at a micro level. I think that combination really required us to press the reset button. Not only did we need to pause so we could pay our bills, and figure out how to get moved into the Basile Opera Center building and do all the things that we talked about doing for a long time, but we also needed to pause to figure out where we were going.”

After the company canceled the final opera of the 2013-2014 season, a funder provided a grant to assess the future of the Opera, hiring a consultant and market research firm. Together, Steven Stolen and Smari helped the board identify what audiences wanted and determine what various future paths could look like.

“We treated the study, not only as an opera study, although it was opera-funded through the Lilly Endowment, but we included the IRT, the ISO, Butler, the Chamber Orchestra, the Phoenix Theater, the Center for the Performing Arts in Carmel, Jazz Fest and Dance Kaleidoscope. We went out and talked to folks who weren’t just our core audience, but really the arts-inclined audience broadly speaking. And we heard a variety of things from them,” said Mindrum.

Among the findings: Sponsors’ expectations were not being met, the budget needed to be severely cut and reworked, the venues were too large, leadership had to change, and the board of directors needed an overhaul.

“Quality had been inconsistent, and that was probably the biggest takeaway, and quality if you’re a professional performing arts organization, is job one. It’s not that we didn’t have some really high-quality productions, but we had too much variability,” said Mindrum who inherited the chairmanship of the company’s first year back.

David Starkey, the Opera’s general manager and artistic director since March, says the Opera’s board did something more difficult than they realize — they didn’t let the quiet or dark period go on too long. According to Starkey, these resets have a national average of about 3 ½ years.

MLK changes

In its search for a new director, Sterling said the Martin Luther King board was looking for someone with leadership capabilities who had community center experience but not necessarily as the leader. It was also important to understand the uniqueness of how community centers work.

In June of 2015, the MLK board hired Allison Luthe. She had both a community organizing background, and a short stint at a community center. She came on board as managing director, an interim position.

With a short-term playbook in hand, Luthe worked with the board to change both programming and mission. The mission had focused primarily on providing programming, but now it was also trying to be more inclusive to the needs in the neighborhood.

“It was pretty clear to me that we weren’t connected to the neighborhood,” Luthe said.

She cites an example. On Labor Day, a couple of months after she arrived, there was a group of parents across the street from the MLK center on West 40th Street who were protesting chain-link fence going up around the adjacent Butler-Tarkington Park because of park improvement. Luthe met some of the protesters  — youth football coaches — who feared they would lose practice fields because of the park’s development.

Luthe found out the coaches didn’t know Martin Luther King was a community center to help serve some of the very kids they were coaching. No one had ever introduced themselves before, the protesters said.

“There was a disconnect,” Luthe said. I just spent a lot of time getting to know them, we had the town hall meeting at the school and they came to that. We ended up seeing each other in a couple of other places.  One of them, their brother was murdered, so we helped them plan the peace rally that they had. So really, we just spent time getting to know them and now they all bring their kids here, the football team works out of here.”

Luthe would become the center’s executive director and worked with the board to develop a long-term strategy.

Before the pause, United Way provided more than 60 percent of the funding for the MLK center. Today it’s at 23 percent and the center has a mix of funding from a variety of sources. Luthe secured a small grant from Meridian Street United Methodist Church to restart some youth activities, and the church has continued as a partner.

When Luthe began as managing director, there were 1.5 employees. Today, there are nine full-time, five part-time permanent employees and 10 temporary employees in the summer. The budget went from $300,000 to $1.2 million, with federal and state contracts.

One main question that the center had to answer: When does it make sense for the center to have its own programming and when should it collaborate?

And while programs and staff have returned, the center now offers its after-school K-5 programming at the neighborhood’s public school, School 43. The program is funded by a 21st Century Community Learning Center grant, which is highly competitive. Grades 6 and 7 meet at the center, but the center is submitting a proposal to expand the grant to add those grades to the school as well.

There is still a long list of partnerships, which won’t go away even with funding, said Luthe, since the partners excel at offering these programs.

The board realized that a signature fundraising event was needed to maintain community relationships. MLK’s grew out of conversations with community members during Luthe’s first summer. With four murders in the neighborhood in the summer of 2015, she had calls from former neighbors who were concerned and wanted to help.

Her response to each of them was simple.

“We’re in a renewal phase and doing better. What if we had a breakfast event and you come and talk a little bit about the history, so that we could stay in touch with our history?“

The Founders’ breakfast fundraiser was born and now happens the Friday before Martin Luther King’s birthday and is hosted by Meridian Street United Methodist Church.

Financially, there is a short leash. There are check limits and the finance committee meets monthly. Everything that is proposed has to have a funding source. The board is proactive, and asks tough questions.

Recently the center hired a wellness coach. The center already had employment coaching and a WorkOne mobile unit. For people who want a better way of life, no matter how much is in their bank account, the center wants to help them grow personally or professionally.

MLK spent the last year doing focus groups with the Public Policy Institute, which is getting ready to produce a report about gentrification, racism, neighborhood safety, and perception of where you live.

Visitors to the center tell Luthe the building has a sense of life, and she’s hoping to add an MLK Guild to help make it more of a welcoming community-owned place.

Sterling said one of the board’s goals was to see people using the facility.

“I think that’s always important when people who are coming for services feeling like it’s a place that they would want to be in. But I think most important are the services that are being provided are based on the needs that are assessed,” said the former board chair.

Opera changes

One of the changes that the Opera made was to its programming venue. It moved from Clowes Hall that had a capacity of 2,100 to the Schrott Center for the Arts, which seats 450. The Opera has also offered programming at Booth Tarkington Civic Theatre in Carmel, which is similar in size to Schrott.

In addition, the office’s move to the Basile Center at 40th and Pennsylvania streets, Starkey said, was a game changer and is helping it to become a center for community arts and culture with its additional tenants.

“It changed the Opera from being a producer to a community leader. And when you look at IMA, and IRT and the Symphony, those three nonprofits, they all have place.

“And now we’re in a place where we are daily giving to our community, and that changed the mindset,” said Starkey. “An arts organization that takes that more collaborative approach is a core of the 21st century model. I have found tremendous dedication to this neighborhood, this building, to this revitalization, how they shift and move has been really encouraging.”

But that’s not all that has changed.

“So, venue, programming, collaboration, and then maybe the final thing would be the type of artists that we seek to cast and to develop here. We’ve embraced the idea that we want to be a training ground for the next generation of world-class singers. We’ve got the best opera school in the country an hour down the road (Jordan School of Music at Indiana University), and we’ve got lots of other great programs nearby.  We’re a rich community when it comes to vocal arts,” said Mindrum.

“We believe we need to be the champion of the vocal arts, the champion of opera. And opera is automatically the top of the food chain. Our responsibility is to be the best professional company that does opera and theatrical representations of that,” said Starkey.

That now includes building a strong middle and offering shows that have ensembles.

“When you do a South Pacific, it’s an ensemble show, when you do Man of LaManchia, it’s an ensemble show,” said Starkey.

The Opera’s board has taken steps to try to ensure a pause doesn’t happen again, including shrinking the board. Mindrum said the board was somewhat unwieldy. The board, he said, now provides more detailed and regular oversight in a variety of places, especially financial. The budget changed, too. It was at $1.9 million and is now a little over $900,000.

“So we shrunk the board, but we’re now in a position where we’re ready to expand it again a bit. We went from a maximum of 45 in our bylaws to a maximum of 35 in our new bylaws. We’re at 23 or 24 right now. We definitely had to sort of narrow before we could broaden again,” he said.

Starkey said it’s a change of philosophy.

“It’s not about how big and bulky can you be. It’s about the nimbleness that you have in your leadership. So size shall represent philosophy and philosophy should represent size. The board has to have a more intimate relationship and understanding of its involvement, and it cannot be just oversight and check the boxes,” said Starkey who moved back to Indiana from Asheville, N.C. in March.

While Mindrum and Starkey believe the temporary suspension was necessary, Mindrum reminds that a pause is never going to be perfect on the other side.

“You feel like you’ve stopped, you’ve done the right things. You’ve taken stock of where you are, you’ve asked the marketplace where you should be going and you put the strategy together. You hired a new director, and you’ve gotten the board reconstituted. Everything is in where you think is the right spot, and then you press “go” and not as much audience comes back as you thought was going to come back. You run into funders who said, ‘I want to see a couple of years of history before I’m going to come back and provide funding.’”

The Opera didn’t have a surplus the first year back and Kevin Patterson, the general director serving both executive and artistic roles, was the “right guy” to get them back on stage. Now with Starkey, Mindrum believes the Opera has the guy who was going to get us to operate within our means.

“He did a great job with Man of La Mancha. We took what had been tracking toward another deficit year and turned it around and broke even in this last fiscal year, and now we’re on track for a solid surplus this year.

My two primary goals as chair were to continue to put on quality productions and operate within our means. That’s really it. And I think that will get us to a place where we’ll continue to build confidence and use this new programming model to develop new audiences, continue to build the education program that is been so strong and really fits nicely with our approach to develop talent, use this building in a better way.”

 

Advice from those who have been there

By Feature, Governance

By Lynn Sygiel, editor, Charitable Advisors

For many people, experience is the best teacher. And while not all nonprofits have taken a pause, two local organizations have recently been through the rigorous process and can offer their perspectives.

Kimberly Sterling, the former board president of the Martin Luther King Center, and Allison Luthe, the center’s current executive director, shared advice applicable to a human services agency.

The Indianapolis Opera’s Matt Mindrum, the current board chair and David Starkey, the general manager, looked at the pause from an arts perspective.

Here are some of their suggestions:

Have a clear plan and consistent messages

Sterling said it’s not enough to just ensure that clients will be served. The board should have a purpose behind the pause. Why is it happening? Is it purely financial or are there services that are being duplicated by others?

Before the pause, a nonprofit needs a media plan, and everyone from staff to leadership has to be clear in their descriptions of the reasons for the break. Electing a spokesperson is important to make sure messages are consistent. Having one person delivering the message also frees up others to attend to other steps to turn around the organization.

Know your board

Sterling said it is critical when planning a pause to understand who on the board is willing to work. During a pause, there will be an additional time commitment, and an oversight board will not work.

“Everyone needs to be all in, and if you’re not, it’s OK, we just needed to know who’s staying and who’s not. It needs to be a board that clearly understands its role and works well together. Board development was absolutely critical, especially in the short term, particularly when we didn’t have staff.”

In MLK’s case, the board chair decided to step down because of other commitments, and Sterling took the helm.

The board also knew it needed a strong treasurer and someone to work with the auditors. MLK’s was a volunteer who stepped up after reading about the center’s situation in the newspaper, and volunteered his services to help. Although his term is up, Jeff Gearries continues to serve on the board.

When Sterling rotated off the board at the end of her term, she wanted to make sure there was a strategic plan. The board’s responsibility was not only to fight fire an immediate need, but also plan for the next three to five years.

Sterling said the board’s work was guided by a quote from Dr. Martin Luther King: I am what I am because of who we all are.

“As you think about what a community center is, it’s about the community, it’s not about the staff members, and it’s a reflection of the community or at least it should be.”

Recognize that healing needs to take place

In both cases, there was a lot of personal attachment to the organization as it was.

Starkey, who became the Opera’s general director in March, recognizes that the healing is still happening.

When you have an accident and you injure your body, you have to be very dedicated that you heal, and you must be very optimistic. I came to a city and to an organization that was deeply troubled. I knew many of the people and many of the circumstances, knowing the past leadership of this company, admiring it from a distance. The healing is still happening. And I think we have the greatest healing tool, and that’s music, specifically singing. Time does heal. If you come back pretty quickly, then some of that didn’t have time yet.”

Know your community

Luthe’s first month on the MLK job saw the Double 8 food store on Illinois Street close. Her first reaction was to move into action and provide support. While the center didn’t have a lot of money at the time, they did have two shuttles available, and people in the neighborhood that needed food.

Their plan was to drive folks to the nearest grocery store. They produced fliers, and got everybody excited.

But nobody showed up to ride the shuttles.

“That’s when I said, ‘We’re going to have to get in touch with people and find out what they do need.’ If you’re going to be a community center, you’ve got to be grounded in the neighborhood. Make sure that in your renewal that you’re really connected to whom you should be connected to.”

Define your organization

Luthe said people had to understand that, “collectively this is going to be a new thing.”

“If you have a million dollar house next door (in Tarkington Tower), and then you’ve got an abandoned block of boarded-up houses, what’s your mission and who are you really here to serve? So I think people needed to figure that out. Are we a social justice organization that is a cultural center, are we a social service provider or are we a gathering place?”

Leverage infrastructure grant programs

By Sponsor Insight

By Teddie Linder, business manager, Netlink, Inc

The largest companies in the world are invested in good corporate citizenship.  As a nonprofit leader staying up to date on these opportunities could enhance the resources you have available.

One area in particular has options you may want to investigate: technology infrastructure. This phrase simply means the common area where your files, database and company information is stored.

Large (or even medium) organizations have a LOT of information that many people have to work with and access regularly.  They need to be in a shared area like a server.  On-premise servers (the big box in the back closet) now cost at a minimum $10,000 and sometimes grow to $18,000 – $22,000 by the time everything is said and done.  Finding the funds for this capital expense every 5 to 7 years can be difficult.

These days, many organizations and companies are going to “the cloud.”  Clouds are simply large datacenters run by companies like Google, Amazon and Microsoft.

The advantage of utilizing these services means being able to afford the storage and convenience of a server, but paying a monthly fee (operational expense) rather than outputting funds for a large hardware purchase (capital expense).

Then there’s this: the two largest companies in this arena – Amazon and Microsoft – have strong nonprofit programs and are heavily invested in good corporate citizenship.   Their programs include grant credits that offset the costs of paying the monthly service fees.

These grants are not difficult to obtain.  Depending upon the usage, a grant could cover several months of fees or most of the year.

Amazon web-services grant

Amazon Web Services offers nonprofits a $2000 annual grant that can be used toward AWS services.  Depending upon your organization’s needs, this grant could cover several months of payments.  One of Netlink’s clients was able to offset an entire quarter.  This grant requires you to be a member of Tech Soup and to pay a $175 administrative fee.

Microsoft Azure grant

Microsoft offers nonprofit organizations $5,000 in grant credits toward usage fees.  This grant is requested directly from Microsoft and covers all usage fees.  A small- to medium-organization may have a monthly fee of $300 to $400.  Even at the top end of that range, that pays the usage for the year.

Cloud management is also important!

Which one is best and should you go after the larger grant?  That really depends on your organization’s needs, and it’s important to get expert guidance in this area.  Infrastructure in tech is just as important as it is in your building.  You rely on your technology infrastructure to keep your organization’s digital assets safe.

Your technical experts should be part of your team to make decisions that keep your technology up to date.  Look for programs for NFP’s in technology, and let your team know about them to save funds and have a strong technology base.


Teddie Linder is the Operations Manager for Netlink, Inc.  She has over 20 years experience helping businesses use technology to accomplish their strategic goals.

 

 

A helping hand for fundraisers

By Sponsor Insight

By Pamela Clark, Lilly Family School of Philanthropy

Since 2008, Nathan Hand has raised money for causes he believes in. Working for nonprofits like Christel House, School on Wheels, and the Mind Trust, he has gained a wide range of both field and management experience.  The Indiana University Lilly Family School of Philanthropy alumnus shared his thoughts about philanthropy, his fundraising career and provided advice for relatively new fundraisers.

Hand joined The Oaks Academy about four and a half years ago and was recently named its chief advancement officer. He says that a few key points stand out about its development program – including that the school and everyone involved with it are “aligned around a set of thoughtfully developed core values” that provide direction for all aspects of its work.

“Our board and leadership are supportive of relationship-based fundraising and understand that we’re in the business of building relationships over time and inviting people to join an incredible mission,” Hand says. “The mission itself is multi-faceted, drawing interest from those interested in (or motivated by) poverty alleviation, community development, racial reconciliation and faith.

“I was always taught to hire people smarter than me, so I’m part of a brilliant team who are experts in their roles, work their tails off, support each other and believe fully in the mission.”

Helping people has been a central tenet for Hand since childhood. “My parents were active in the church and community and expected the same of us kids,” he says. “They modeled a service-oriented lifestyle and always put others first. Many of my early experiences in philanthropy were facilitated by the scouting program, service clubs and activities. They gave me an early understanding of privilege, civic responsibility and the power and beauty of giving.”

Hand attended DePauw University thanks in part to a scholarship that included 20 hours of service each week throughout his four years in Greencastle. He participated in several nonprofit internships and says, “I found myself fascinated by the sector and how various groups came together to address a common concern.  Philanthropy and nonprofit leadership became a focal point. I felt at home in the space and loved jumping out of bed every morning to try and move the needle for a cause.”

For him focusing on fundraising seemed a natural choice. He quickly recognized the centrality of funding to any mission and was not shy about inviting people who could help to join him in achieving funding goals.

“I loved meeting new people, understanding their interests and making meaningful matches between people and causes. During those early internships, several nonprofit CEOs shared that in their career path into leadership, they didn’t realize that much of a nonprofit CEO’s role is fundraising and that they didn’t feel comfortable doing it and/or didn’t know how,” Hand says. “I figured I would study and try to excel at something that would be needed in the marketplace. Frankly, it’s less about ‘development’ or ‘fundraising’ and more about mobilizing and engaging a group of people to accomplish something important.”

Hand’s pursuit of such accomplishments led him to study at the Indiana University Lilly Family School of Philanthropy at IUPUI, where he earned a master’s degree in philanthropic studies.

“People are at their best when they’re giving of themselves and that’s enjoyable to be around every day,” Hand notes. “One challenge is that not everyone has a positive image of or experience with fundraising. Too many fundraisers over ask, rush into it, exert pressure and don’t honor people. Philanthropy in its purest form is absolutely beautiful. It should be enjoyed and appropriately facilitated.  Some supporters have been burned by bad experiences and assume they can’t engage with a cause without fear of being treated poorly.”

Hand shared five things that could be helpful to fundraisers who are early in their careers — those with two to five years of experience.

  1. Realize that relatively speaking, this is a new and still unknown profession. Many boards and CEOs are looking for ‘quick fix’ fundraising with overnight results, not long-term sustainable philanthropic community building. It’s likely you’ll need to do a lot of coaching and educating internally. You can’t plant today and harvest tomorrow. Find a place/nonprofit that understands that and hasn’t over-committed themselves. That only adds undue (and unrealistic) pressure to fundraising staff and worse, their community of supporters.
  2. Being an early-career fundraiser is hard. Most of the larger donor relationships are held by the CEO and lead fundraising staff.  Make the most of your role, learn the various parts of fundraising work, and meet with everyone you can. Practice building solid relationships and your comfort level with talking to complete strangers about important things.
  3. Stay on top of trends. People and institutional funders are looking for outcomes, sustainability, scale, etc. More and more people are seeing their philanthropy to be an ‘investment’ and expect returns.  It’s much less about ‘charity’ than years ago. Be ready to champion that thinking internally in your organization.
  4. Thank people. Personally.
  5. Only work for causes and people you believe in.  That’s what will get you through the long days and remind you how important the work is. Seek out great bosses and mentors who share those values.

Hand says newer fundraisers can benefit from professional development and training, but it’s important to look for reputable, research or experience-based programs, whether seeking in-person or online courses. One such example is The Fund Raising School, which he says also is   accessible, has a strong faculty and is a great way to understand the concepts in several areas of fundraising quickly.

Hand, who teaches at The Fund Raising School, also suggests getting involved in as many parts of the nonprofit’s fundraising operation as possible.

“Take any tasks that no one else wants to do. Do them perfectly and ask for more,” he says.

“When it comes to personal fundraising, it’s very hard to ‘go along’ on a donor visit due to the dynamic between the people and the fact that a personal ask is being made. Instead, afterward ask your boss to walk you through how the visit went, what was said, the donor’s reactions and so on. Learn from that and apply what you learn to your own visits as you build your career.”


Pamela Clark is Director of Student Services and Admissions for the Indiana University Lilly Family School of Philanthropy at IUPUI. She has served in university admissions and advising roles for more than 20 years and enjoys working with students and supporting them in achieving their academic goals. 

Partnering to measure poverty

By Feature

By Lynn Sygiel, editor, Charitable Advisors

Poverty in America. It’s a problem that has been analyzed and dissected by many sources. It’s been the subject of books, TV documentaries and combatted by a host of social services agencies.

But do we really understand the ins and outs of poverty?

A complete answer likely remains elusive, but a local university and a national nonprofit have been working together to get a better grip on the changing needs of America’s poor.

The resulting product is the annual Human Needs Index (HNI), a multidimensional report that stems from a partnership between IUPUI’s Lilly School of Philanthropy and Salvation Army USA. The index is a more comprehensive in-depth look at our nation’s poor, according to Una Osili, the Lilly School’s assistant dean for research and international programs.

Traditionally, poverty has been measured in a narrow vein: income level based on government figures. The HNI goes beyond that and uses data the Salvation Army has been collecting on its own since 2004 based on the services it provides.

The first HNI was released in 2015, but the project was seeded four years prior, when the Virginia-based Salvation Army invited the Lilly School to a conversation at its headquarters. While reading the latest U.S. poverty statistics in USA Today in 2011, one of the agency’s board members recognized that the Salvation Army had more up-to-date data on poverty than what he was reading, and together with the entire board, suggested a potential partnership with the Lilly School.

The meeting led to the partnership where both entities benefit: the Lilly School is able to disseminate information helpful to the nonprofit sector, and the Salvation Army gets validation that its data and work are valuable tools to better serve the public.

While often associated with urban work, the Salvation Army’s safety net programs have a presence in every ZIP code, including mobile outreach in rural areas. For years, the organization had amassed data from more than 7,000 sites. Four statisticians oversee the collection of its data, one for each territory. Most of Indiana is part of the Central Territory, which covers 11 states and has 2,342 operations centers; the exceptions are the seven counties that comprise Indiana’s northern border.

The HNI tracks need in seven areas: meals, groceries, housing costs, clothing, furniture, medical bills and energy bills.  The need is also compiled seasonally. A score is assigned to the nation as a whole in addition to scores for different regions. Scores were assigned retroactively back to 2004. Upward and downward movements in the scores often reflect economic conditions such as a recession or even natural disasters.

When first approached by the Salvation Army, Osili said the School of Philanthropy was intrigued but it was too early to tell whether the data was relevant.

First the university conducted a validation process, doing a rigorous analysis comparison of Salvation Army data with other local, state and national figures on poverty. In addition, multiple calls with the territorial statisticians helped the Lilly team understand the story behind the data. Working alongside the Salvation Army,  the Lilly team better understood its collection process and had the opportunity to raise lots of questions.

“I’ll give you one example. We noticed that energy orders that the Salvation Army was providing spiked in March, April and May. That was a bit of a surprise to us, because you would have expected that people would have needed assistance in the winter, not needing energy in the spring when temperatures tend to be more moderate,” said Osili.

What they learned, through conversations with the Salvation Army’s team, was that many cities and municipalities have ordinances that prevent winter heat shutoffs for low income or elderly residents. Even with unpaid balances, the heat stays on. But come March when temperatures were more moderate, the needs inflate, resulting in higher assistance requests from the Salvation Army.

“We wouldn’t have found that out on our own. Salvation Army had the data, and so that’s why the collaboration and the partnership made a lot of sense. Clearly, they were the content experts. It was basically taking all that information and then distilling into what we thought were the basic aspects of human needs,” Osili said.

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Sharing the knowledge

Filling an information void about local safety net programs, the Human Needs Index can be more just a cool data visualization tool or source of information inquiry into the measurement of need.

It can model how communities and philanthropy might collect, share, and use data to improve outcomes for clients, organizations, and community residents.

To that end, the Lilly Family School of Philanthropy has begun to share the lessons of HNI through workshops and webinars.

And while encouraging, Osili cautions that an organization needs to have a process to validate the data, and compare to other figures in order to establish a benchmark.

Another challenge for some nonprofits is that some are just present in rural areas but not in urban.

“The other big lesson that nonprofits can take away is kind of the power of collaboration. We’re used to thinking about universities doing one thing, and national and local nonprofits doing another,” said Osili.

She said this is an example of how you can actually bring together different sectors together. Nonprofits don’t always have the expertise in-house.

“So it’s thinking about all of our resources whether it’s our own data as an asset or community around us as far as the power of collaboration.”

“I think it would be great to also do something locally, so that our local nonprofits here can better understand,” said Osili.

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Natural disasters, like Hurricane Katrina, were another example. It wasn’t just the communities where the disaster occurred that needed assistance, but extended well beyond Louisiana, into Texas and Arkansas. With its boots on the ground, the Salvation Army was able to provide a detailed picture of needs, and expand the geographical need beyond the disaster.

Osili  agreed that we tend to look at poverty based on income. But that changed when Angus Deaton, the 2015 Nobel Prize-winning economist, noted that to understand poverty, it needed to also be looked at through a consumption lens.
“Basically that is, what are people having trouble with, where are families struggling, what kinds of areas are they needing assistance,” said Osili. “Because the HNI views things more through a vulnerability lens, you can actually see how households struggle to meet energy needs, get assistance in health care or access to clothing. Those are things that are general poverty and statistics aren’t really going to tell us.”

The tool can be useful both at the local, state and national levels to help determine if poverty is improving and how needs and access to services are changing.

Locally, Susan Solomon, the Salvation Army’s divisional social services director,  believes the index helps to give a broad picture of what is happening.

“There may be some things that we may miss in a given community, and then when we look at it collectively and have discussion, it raises awareness.”

Solomon said the Salvation Army, founded in 1865 in London, is a large old organization, and it is easy to continue to offer services because of tradition. With the reality of fewer dollars available, reviewing the data challenges the nonprofit to look at particular services to determine if they are still needed or perhaps duplicated by another agency. The result, hopefully, is to collectively meet more needs, she said.

“Has it had a fairly radical effect on the services we offer? I cannot say that’s happened, but it does raise our awareness of what do we do and do well and where needs are not being met as we plan and move forward,” said Solomon.

Spearheaded and funded by dollars raised by the Salvation Army USA’s board, the initial cost was designing and creating the infrastructure, and the annual upkeep is not as expensive. After each territory applies its checks and balances, the Lilly School receives quarterly data, releasing the HNI once a year.

Osili said while it would be easier to only report if the needs went up or down, the project teams decided to investigate more deeply to include what specifically was different in each wave of the data collection and to ask new questions. For this year’s index, they posed: What were the vulnerabilities that rural households were facing and how did the solution differ?

This year’s HNI has illustrated persistent pockets of poverty in rural America that might not have been apparent from traditional government measures like unemployment data, SNAP usage and the U.S. Census Bureau’s Poverty Report. Osili said things like Indiana’s low unemployment or what economists call full employment can mask poverty. For example, the state’s opioid epidemic has contributed and changed the levels of assistance and needs.

“How does that show up in the Salvation Army data? What we see is that even though other measures like unemployment are showing declining patterns, we also see that they’re starting to show up in health care needs. People are coming to Salvation Army for assistance with substance abuse and drug treatment facilities. What you can actually unpack is the particular challenges that households are facing,” she said.

Osili believes the HNI has been a bit of an inspiration for many organizations, leading many nonprofits wondering if they could do something similar. And while many nonprofits are starting to collect this type of data, not many have the comprehensive, historical and geographical reach of the Salvation Army USA, said Osili. Two — Catholic Charities and Feeding America — are starting to look at their own data footprint.

“I think there are a lot of lessons to learn. The first one is that nonprofits are often consumers of data and use data in making decisions, but they can also be part of the leadership on what data is collected and how we share that information. Data can be really powerful in helping to shape decision-making and then for policy makers, too, to better understand very complex issues facing a given community.

“The second take away is that nonprofits can be part of shaping how society understands the problem. You know just beyond the service delivery side, you can also be part of the generating new insight and knowledge,” she said.

Impact of rising benefit costs

By Sponsor Insight

By Mike Harrington, president, Synergy

A business encounters many costs, but the most volatile expenses are those surrounding employee benefits.

Last year, employers spent an average of $8,669 per employee, an increase of nearly $500 from the year before. Multiply that rising number by each staff member and the costs can significantly pile up. There are a number of ways the rising cost of benefits negatively impact your business, but there are also several methods for alleviating this major issue.

Hurts your bottom line

The initial implications of this trend are clear. The more your organization spends on employee benefits, the less profits it will make. One of the biggest culprits hurting your bottom line is the price of prescription medication. Already taking up 30 percent of an employer’s health care costs, prescriptions are set to rise 7.3 percent in 2017, with specialty meds rising 16.8 percent.

The bill employers have to foot for healthcare is rising overall, with 77 percent of organizations seeing increases, and nearly a quarter of those employers seeing an increase of 16 percent or more. These numbers provide hard evidence that profits will rapidly shrink if action is not taken.

However, any action must be approached carefully and strategically. One area where making a wrong decision can be especially devastating to a budget is in compliance. A single slip-up can cause lingering legal issues and attract hefty penalties and fines.

As healthcare reform continues to hang in the balance and confuse business leaders across the country, cutting corners to skimp on costs in this area is not a viable option. During these confusing times your business needs an expert versed in compliance, whether it’s a cost-effective outsourced partner or a higher-priced in-house talent.

Damages retention and recruiting

One increasingly-common way organizations are circumventing profit loss is by passing employee benefit costs to employees through higher deductibles, co-payments, and premiums. While this can look good on financial statements, it is resulting in decreased employee morale. Some workers may brush off increased healthcare costs, but many others will be motivated to look for a new job that offers more affordable benefits or a higher salary. After all, if costs go up once, employees will expect them to go up again.

Similarly, the rising cost of employee benefits is impacting the hiring and recruiting of businesses. Even if you’re able to attract an in-demand candidate into an interview and entice them into considering a formal job offer, it won’t take much to push them to a competitor. When you’re offering a similar salary and responsibilities as someone else, being able to tell a candidate that they will get great benefits at a low cost can be the deciding factor in securing their talent. Additionally, only 20 percent of employers continue to offer a retiree program. Candidates who see such a program in your job offer will take notice and view your organization as a career destination.

Ways to lessen the impact

Despite the gloom and doom surrounding the rising cost of benefits, there are a number of strategies that can lessen the negative effects.

  • Consumer-directed health plans such as HSAs are one option that allows employees to have more involvement. Such a plan provides tax incentives while also encouraging participants to consider the cost of healthcare services more deeply, meaning they may not go to the emergency room for minor health issues.
  • Utilizing virtual doctors and health hotlines can deliver an affordable alternative to employees going through costly office visits when they just have one or two questions. Not only does this save money, but it takes the anxiety out of a visit to the doctor and can help employees catch bigger illnesses before they fully develop.
  • Wellness programs are a popular option, and for good reason. Encouraging employee health with a trained coach/leader can promote healthy lifestyle choices that lessen the potential of preventable diseases and injuries. Rewards for certain milestones and regular checkups are typically included in such a program.
  • Audit your healthcare programs regularly. Whether due to confusion or ill intent, it’s often discovered that ineligible dependents are being covered when they should not be. Searching for costly inefficiencies such as this is necessary for those serious about accurate and legal benefit administration.

The rising cost of benefits

It can be difficult to take action and implement new strategies for combating the rising cost of benefits without experience, and especially when you have other pressing core business concerns. That’s why the greatest solution of all could be engaging with an expert PEO. The right outsourced HR partner can provide strategic direction and instantly save money by connecting your organization to a larger employee base providing better and cheaper benefits.


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, Mike spent five years with Safeguard Business Systems in direct sales and sales training and support. He holds a BS degree in marketing from Eastern Illinois University.

A terrorized British city turns to an all-American play for healing

By Programming

By  Matt Trueman, reporter, The New York Times

In the wake of the May terrorist attack at Manchester Arena, which killed 23 people, including the attacker, the space outside the nearby Royal Exchange Theater became a site of public mourning. St. Ann’s Square slowly filled with flowers and other tributes – soft toys, football jerseys, balloons — covering an area the size of a swimming pool. Every day for three weeks, the theater’s staff walked past on their way to work.

At the time, the artistic director Sarah Frankcom was facing a gap in her autumn schedule, the result of a leading actor’s clashing commitments. One play kept coming to mind: Thornton Wilder’s “Our Town.” An all-American classic, Wilder’s 1938 portrait of small-town life at the turn of the century nonetheless seemed to Ms. Frankcom to chime with the atmosphere in Manchester at that moment.

“All over town, there was a real sense that people were meeting each other in simple, everyday actions,” she recalled. The scene in St. Ann’s Square was a case in point. “We suddenly all went, ‘Oh, that’s why we have town squares, isn’t it?’ It wasn’t about looking at flowers, but about needing to be together.”

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Important considerations for establishing major gift metrics

By Sponsor Insight

By John T. Keith, J.D., consultant, Johnson, Grossnickle and Associates

Fundraising success is increasingly a vital component of an organization’s ability to fulfill its mission.  Campaigns have increased in prevalence and frequency and often are dependent upon 90 percent of the dollars being contributed by 10 percent of the donors.  (In higher education, this can reach 95 percent of the dollars from 5 percent of the donors, a threshold nearly unheard of 15 years ago.)

This leads many organizations to rely upon major gift fundraising at all times, rather than merely for special projects of need.

At the same time, it has become more common for board members to have backgrounds in businesses that foster a sales culture and therefore look for data-driven accountability from the nonprofits they support.  How can we modernize our approach to goal-setting and accountability without sacrificing what makes philanthropy so different from sales transactions?

The art of fundraising focuses on fostering support for your mission by developing relationships with donors and aligning their philanthropic goals with organizational needs. Yet, in philanthropy it is important that we focus on both the art and science of fundraising by tracking the metrics behind those relationships.

Here are a few things to consider as you explore incorporating metrics into your major gift program.

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How to recognize employees without a promotion

By Sponsor Insight

By Mike Bensi, advisor, FirstPerson

“Let’s promote him!”

This is unfortunately a very common response by leaders when they have a great performer within their company. He’s been with the company “long enough,” and now the leaders find themselves wondering what they’re going to do so he doesn’t leave the company.

What are some signs that making the person a manager might be a bad idea?

  1. He’s not good at managing. Sure he’s great at what he’s doing right now, but does that mean he’ll rock at managing other people?
  2. Your company is just too young or too small. Within flat organizations, you’ll find limited available management and leadership roles. At larger firms, you’ll find more opportunities for advancement, but it could take years for the person to get there.
  3. The person just doesn’t want to manage. Recent research is finding fewer people who have leadership aspirations.

So what can a company do to recognize the work the employee is doing, without handing out a promotion?

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Finding adequate shelter for families can be challenging

By Feature, Programming

By Lynn Sygiel, editor, Charitable Advisors

A little over a year ago, Mike Chapuran’s first day at Family Promise in the Martindale-Brightwood neighborhood didn’t go quite as planned.

Trying to get a sense of his new position, he started his first day answering the nonprofit’s phones. The first caller was a family, which he had to turn away because the shelter was full. Then came another call, and by 9:40 a.m., he had turned away five families seeking shelter.

Twelve minutes later, he suggested the caller call 211 or one of the other two family shelters – Dayspring or Holy Family.

“The mom told me, ‘I’ve already called all of them, I’ve been calling them for weeks. I’m staying in an attic and it’s 80 degrees and my infant won’t stop crying. Do you know how hot it gets in an attic?’ I felt powerless, but imagine her powerlessness. I’m just in a job. She’s has a kid. My point is on the day I arrived here, I was like ‘I didn’t know this was a problem in Indianapolis.’”

Unfortunately, Chapuran’s first day was not unusual. Every day, about 10 families are turned away. Other family shelters in Central Indiana – Dayspring and Holy Family — have similar experiences.  According to Coalition for Homelessness Intervention & Prevention (CHIP), 6,000 school-aged children will experience housing instability. Dayspring, Holy Family and Family Promise will take dads, but Salvation Army and Wheeler only take mothers and children.

For over 24 years, Family Promise of Greater Indianapolis, initially called the Interfaith Hospitality Network, has been part of the network supporting homeless families. It began with a talk given at St. Elizabeth Ann Seton Catholic Church by the founder of a Hospitality Network program in New Jersey. Dr. Dean Lindsey was at the talk, researched the program and problem, and then formed a local outreach group to connect with congregations. Working as volunteers, they persuaded eight congregations to split the effort that first year, each hosting four families for a week.

Since 1994, volunteers and congregations have helped over 750 families with children. Today, two different congregations offer hospitality every week, serving a total of eight families. The network now includes 36 churches, and another 18 that support the effort of a church close to them.

Congregations provide overnight lodging and meals for up to four families. Families daily arrive daily at the church at 6 p.m. and stay until 7 the next morning. On Sundays, volunteers wash sheets, and then transport the rollaway beds to the next congregation.

“If a parent has a job and works until 6, we don’t want to be an obstacle to employment so we have the Uber and Lyft fund. We will have volunteers go pick them up for the week.  We don’t let our model get in the way of what actually matters, which is working,” said Chapuran.

Host congregations serve dinner and breakfast and plan activities for the children. Members of the congregation spend the night at the shelter, and then each morning transport families to the Family Promise Day Center. Children go to school or daycare.

The Day Center, located behind St. Rita’s Church on Indy’s Eastside, provides support for adults who either cannot work or are seeking work. They meet with a case manager to build skills such as budgeting, while applying for housing or employment. Adults can use the computer lab to prepare resumes, research jobs and apply for jobs online.

“We have success stories. We have the mom who comes back seven years later, and we don’t know she stayed in the program. She’s wearing nursing scrubs, and she donates food to us and says, ‘Seven years ago this program saved my life.’ She then talks about the volunteers and how they doted on her children and how she got a job as a CNA at $15 an hour and the program helped her get that. And that now she’s has an apartment.

“We have another mom who says after she puts her kids to bed and turns off the lights, she loves it because she has to get mad at her daughter for turning on the lights and reading a book at 9 o’clock at night,” he said.

When a family leaves, support continues. Four years ago, the program added an AfterCare home-based case manager who continues to work with families. The belief is that INH helps people find housing and AfterCare helps them keep it. The nonprofit’s name was changed when it added the program, and is now part of an affiliate network of over 200 Family Promise branches.

The case manager visits families at their houses or apartments, and currently serves 32 families.

“That’s scary because that’s a lot. So she has to prioritize those most in need. Families will do a monthly budget with her one meeting, and then next month when she’s back, revisit it. There may be a meeting in between to work on things like providing a connection for a school uniform resource. But it’s really budgeting on the first of the month, and then coming back the next month to try to help create long-term goals as motivation,” said the executive director.

And it is making a difference. Two years after leaving the IHN shelter program and working with AfterCare case manager, 82 percent of families have retained housing.

In the past year, the case manager has connected six families to the Boner Center IDA program. The family starts an account and saves a minimum of $25 a month. When they hit $3,000, it’s matched and can be used for school, entrepreneurship or buying a home, according to Chapuran.

“So we’re hoping that through that program we’ll have some homeowners here in a few years,” he said. “Housing is the key. There’s no panacea. Right? But housing affects employment, affects school, affects every thing.”

Most families, according to Family Promise, stay about 60 days to save up the first month’s rent and security deposit.  The nonprofit now has a donor to provide a family’s security deposit, which according to studies, reduces the average family stay.

“We just gave a fighting chance to the family. The family did the work. It’s not a homeless person, it’s a mom who has three kids. One of them was diagnosed on the autism spectrum, she had to do appointments, lost her job and then it snowballed from there. It could happen to anybody,” said Chapuran. “We can stabilize those parents so that the kids’ lives hopefully are stable and in school. So we’ve got to take the long view.

Family Promise of Greater Indianapolis phone tally for two months.

Permanent housing for families, particularly with multiple bedrooms, is rare to find.

“Your family of five with dad, mom and three kids is shot. They wait. We’ve had a family that’s come back here twice despite our best efforts and getting social security and some other supports, and despite a part-time job has come back here twice. The mom has significant disabilities, retaining a job is hard. She’s half blind to be honest, and a permanent support-housing unit is necessary for her and her twins. But she’s been waiting nine months now.”

Besides family permanent housing, Family Promise is working to fill a 17-week gap from December to February. At that time, one rotation serving four families at a time closes. The nonprofit continues to recruit congregations.

Chapuran is hopeful that he will find new congregations and maximize the nonprofit’s existing resources.

But most importantly, he knows that volunteers getting to learn a family’s story can realize that it’s all shared experiences.

“Read the stories, but even more important than serving a meal at Dayspring, is talking to a family at Dayspring, learning a story. Learn that’s a mom, who went through 24-hour childbirth just like you, who then was worried about getting the baby to latch. It’s all shared experiences. “