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Jul 12

Faced with hiring and retention woes, an Indiana children’s home raises the stakes with a $100,000 salary for house parents

By Feature

The facility doubled the salary of its 2010 rates, and surpassed all similar salaries in the industry

by Shari Finnell, writer/editor Not for Profit News

When Richard Lapinski took over as executive director/CEO of the Indiana United Methodist Children’s Home (IUMCH), it quickly became apparent that he wouldn’t be there to win over friends. The Lebanon-based facility was facing serious challenges, including a significant cut in referrals from the Indiana Department of Child Services (DCS) — the primary source of its youth resident placements. Difficult decisions had to be made.

IUMCH only had about 27 youth residents, down from an average of 75 to 80 — more than a 60 percent reduction, Lapinski recalled. However, the facility still had more than 110 employees on its payroll — functioning with an infrastructure that had become outdated with the loss of residents. “And that number was rapidly decreasing for a number of reasons,” Lapinski said.

With awareness increasing about best practices for caring for troubled youth, many of whom had been abused or neglected in their previous homes, IUMCH wasn’t measuring up as a preferred placement facility. “Our organization didn’t really have the structure or appropriate behavioral models in place to care for the kids properly,” Lapinski said.

Since placements were being drastically cut and, consequently, revenue from the state, the facility had resorted to using $4.2 million from its endowment to cover operational costs, Lapinski noted. “They (IUMCH) have a very healthy endowment but that was not going to last long if we stayed on that track,” he said.

Lapinski, with the board’s approval, set in motion a series of recommendations that included investing in the construction of new facilities, training of employees under a new model of care, eliminating 55 positions and, eventually, boosting the salary of its house parents to a combined $100,000 — up from the $50,000 they were paid when he first arrived in 2010.

While the internal changes sent ripples throughout the organization, the decision to boost the salary of house parents made many other organizations take notice nationally. “It was sticker shock, in a positive way. You can get a lot of people’s attention,” Lapinski said of the significant salary hike, which was designed to address IUMCH’s challenges with attracting experienced house parents and retaining them. At the same time, it sent an unmistakable message about the critical role house parents had in delivering quality, caring services to youth on behalf of IUMCH.

The strategy worked. Highly qualified house parents, many working at larger, well-known institutions throughout the country, suddenly took interest in relocating to Lebanon, Ind., for the opportunity to work at IUMCH. “We, at one point, didn’t actively recruit,” Lapinski said of the surge in interest.

Initiating difficult discussions

Before arriving at the IUMCH in 2010, Lapinski had first-hand experience with understanding the unique challenges facing nonprofits dedicated to the care of youth facing numerous risk factors, such as abuse, neglect and abandonment. He had previously served as executive director of the Presbyterian Home for Children in Amarillo, Texas.

He and his wife, Stephanie, also served as family teachers for five years at Father Flanagan’s Boys Town in Omaha, Neb. In those roles, the couple lived in a family home with up to eight youth, providing 24/7 care.

It was that previous experience that convinced Lapinski that IUMCH had to overhaul its approach to caring for its youth residents, especially after he observed the day-to-day practices at the children’s home.

During his first meeting with IUMCH’s executive committee, which also was attended by board members, Lapinski was blunt. “I told them if I was a youth, I would hate to live here.,” he recalled. “It was more like a detention facility than a residential group home for youth. When I told them that, they looked at me and said, ‘We were always told that this was the best place in Indiana if you had to be placed out of the home.’”

At their next meeting, Lapinski showed them footage taken from cameras throughout the housing facility. Among them were instances of restraints of youth residents. “We would restrain you on a daily basis, so I showed them five restraints. I didn’t pick the worst five, I just ran it in a loop,” he recalled. “After I scraped their jaws off the table, then we were able to gather their thoughts.”

Lapinski also reminded them of the DCS’s decision to drastically reduce placements with their facility — another convincing sign that major changes were needed.

“We had gone for nine months without a referral from DCS,” he said. “Keep in mind, not even with their worst kid, one that they had a hard time finding a placement anywhere, we didn’t get that referral. So we needed to make some changes. And it was difficult because we had staff members who had been here for 20 and 30 years. They were ingrained in how they did things and didn’t want to make any changes.”

The team called an emergency meeting to discuss switching to a teaching family model, an evidence-based trauma informed care model approved by the American Psychological Association. “I really didn’t need to convince anybody … the writing was on the wall that we needed to make those changes,” Lapinski said. “DCS had stopped placing youth with us. They were picking the organizations that they were going to continue to utilize and we were not one of them.”

Moving toward an unprecedented pay scale

The IUMCH team arranged a visit to the Virginia Home for Boys and Girls, a facility that was similar to the Lebanon group home — and had fully transitioned to the teaching family model that was first implemented by Father Flanagan’s Boys’ Home. Currently, the Teaching Family Association has agencies throughout the United States and worldwide, including Australia, New Zealand and Canada that are using the model. Lapinski serves as the board president.

As a result of those initial meetings and tours, IUMCH committed to the construction of six new teaching family homes as a new state-of-the-art on-grounds school, which opened in 2015. They also agreed to eliminate 55 positions as they transitioned to the new model of care.
They soon realized the transformation of their care model could not end there. IUMCH was facing recruiting, hiring and retention challenges with family house parents — an experience that is common in the industry because of the intense demands of the position.

Under IUMCH’s job description, family house parents are a married couple who would commit to living within a group home. While they have their own private apartment, they are committed to caring for six to eight youth five to six days a week. “It’s such a unique position to try to hire for,” Lapinski said. “You need to find a couple that works together who are also trained in the family teaching model and really have a passion for the mission of caring for youth. At minimum, they’re working with the youth 80 hours a week.”

Currently, the average salary nationally for a teacher family couple is a combined $58,000.

“When I first started implementing the model (at IUMCH), we were paying $50,000 a couple — or $25,000 per person. It really isn’t that much money, but when you consider that housing, food and utilities is provided, it’s really like $72,000 to $75,000,” Lapinski said.

Although IUMCH was recruiting nationally — including in Alaska, Ohio, California, Nevada, Florida and Texas, they found it increasingly difficult to find house parents or family teachers, especially during periods in which the economy was stable. They increased the salary offer to $58,000 but still had challenges locating the right couples for vacant positions.

Lapinski said it was critical to find couples that were committed to the care of the youth. “If you really don’t have the passion and the commitment, you won’t last four to six months in this role. Not only is that bad for the organization, it’s absolutely terrible for our kids who already have reactive attachment disorder,” he said.

Faced with the prospect of closing one of its group homes due to the lack of staff, Lapinski said he analyzed how they could effectively recruit the best couples to fill the roles. The answer? Raising the salary for family teachers to $100,000 — at least more than $20,000 than any other organization paid for the position.

“Needless to say, we didn’t have a problem hiring family teachers and being able to drill down to find the most qualified couples that we could recruit,” Lapinski said. “It really put our organization in a wonderful place by providing stability. Our turnover is considerably lower now. The average turnover for a family teaching couple nationwide is 18 months. We’ve had couples here for four years.”

The investment in the salary increase was well placed, Lapinski said. “They’re worth every penny,” he said. “Our family teachers are truly the backbone of our organization.” The organization also increased the pay scale for assistant family teachers, who typically are recruited locally.

Lapinski noted that it wasn’t difficult to get buy-in from IUMCH’s board for the salary increase. “It was a lot easier than I thought it would be,” he said. “When we were faced with closing a home down because we couldn’t staff it, and that caught our board’s attention.”

Overall, the changes have been instrumental in helping IUMCH effectively carry out its mission. “We’re able to provide better services to the children we serve and achieve cost savings by reducing turnover and the rehiring and retraining of staff,” Lapinski said.

The organization also won the trust of the DCS, which now makes about 500 referrals a year to IUMCH, Lapinski said.

While the drastic changes were challenging at times, Lapinski said he never lost faith in the process. “You could call me the hatchet man,” he said. “However, I never lost a minute of sleep because I knew the end result was going to be much better for the kids.”

Jul 12

3 essential practices to create an inclusive board culture

By Sponsor Insight

Ask the challenging questions needed to achieve alignment with diversity goals

by Erin Hedges, president, Hedges

Despite good intentions, there is still much diversity, equity, and inclusion (DEI) work to be done in the nonprofit boardroom. A June 2021 report from BoardSource indicates that while boards may be getting slightly more diverse, they are far from representing the communities they serve, and recruitment practices too often lack alignment with diversity goals.

At Hedges, we are challenging ourselves to question traditional board governance practices and identify new ways for organizations to create a more diverse, equitable, and inclusive board culture. Resulting from our learnings, we share three practices for nonprofit leaders to consider:

  1. DEI work should be grounded in an organization’s “why.” Too often, the purpose of recruiting diverse board members is to “check a box” provided by funders on a grant application. This narrow approach misses the opportunity for important board-driven conversations that can identify how diversity in representation, lived experiences, and perspectives can unlock greater potential for the organization. By taking time to uncover the reasons “why” an organization needs more diversity in the boardroom, boards can identify the specific purpose for board-led DEI efforts and create a collective responsibility to move these efforts forward.

To get started, BoardSource offers specific questions boards can ask themselves to explore an organization’s purpose for having a more diverse boardroom including:

  • Is our organization’s reputation being negatively (or positively) impacted by our board’s composition vis-à-vis diversity?
  • If someone were to make assumptions about our organizational values based on our board composition, what would they be likely to think?
  • How well are we cultivating a deeper understanding of the community or communities that we serve and bringing their perspectives, needs, feedback, and priorities into our strategic boardroom discussions?
  • Are we ever at risk of making decisions without fully understanding how these decisions may affect those we serve?
  • If we were to make a deeper commitment to diversity, inclusion, and equity, what would that mean for our mission, our work, and the people we serve?

Once the board can formulate responses to these types of questions, it will gain clarity as to “why” board diversity matters and what the organization has to gain. The board will have identified its purpose in developing a plan to recruit and successfully support more diverse members that can bring valuable, new contributions to discussions, deliberations, and decision-making for the organization.

  1. Bylaws can be a powerful DEI tool. Moving DEI intentions into action is key to successfully creating an inclusive boardroom. In addition to developing a plan to use as a playbook, board members can consider incorporating DEI provisions into the organization’s bylaws. Not only will these provisions guide and direct board members, but also provide accountability measures that will increase successful outcomes of these efforts.

Including DEI provisions in bylaws demonstrates that DEI is a core organizational value. NEO Law Group offers specific recommendations of how organizations can accomplish this. One of our favorites is stating the diversity goal from your plan (i.e., greater diversity in representation, lived experience, and perspectives) in your bylaws. A favorite focused on equity is including an equitable compensation provision that all employees should be paid a fair and reasonable wage. A favorite focused on inclusion is adding a Conduct of Meetings provision to allow directors other than the president to chair meetings. A full list of their recommendations can be found here.

To ensure these DEI commitments are reflected in an organization’s approved bylaws, review each section of the current bylaws and determine how they need to be revised to reinforce DEI commitments. Building these commitments into bylaws will provide accountability to organizational leadership in moving to more diverse, equitable, and inclusive board governance.

  1. Board member value should be viewed beyond what they can give or get. Historically, nonprofit organizations have relied on their board for fundraising and, in fact, we have recommended this practice many times over. But when boards set minimums for board member financial contributions and give/get policies, barriers based on a person’s “treasure” are created. At Hedges, we are challenging organizations to let go of the old giving and getting minimums and, instead, encourage individual giving amounts that are “personally meaningful” to each board member.

Organizations with giving minimums or give/get policies for board members should ask themselves what barriers to board diversity and inclusivity are these policies creating? What perspectives, lived experiences, or talents might we be missing on our board because of these policies?

That’s not to say that board members shouldn’t still be involved in fundraising. When training organizations to fundraise, we ask board members to identify a part of the fundraising process that aligns with their preferences and comfort level. Whether it is identifying potential donors, cultivating donor relationships, directly soliciting gifts, or providing donor stewardship, we have found that all board members are able to play a role in fundraising efforts. In this way, an organization acknowledges that a board member’s time and talent are as equally valuable as their treasure.

Creating change takes intentionality and patience, but the need for greater diversity, equity, and inclusion in our boardrooms is urgent. By taking time to figure out the “why,” building DEI commitments into bylaws, and valuing individuals for all that they bring to board membership, boards can lead the way to greater impact within their organization and community.

Erin Hedges is the founder and president of Hedges, an Indianapolis consulting firm that advances social change by strengthening Central Indiana’s philanthropic sector. Hedges is launching Lead with Purpose, a new training series to equip individuals for effective nonprofit board service. More information about Lead with Purpose can be found here.

Jul 06

For nonprofits, moving forward requires looking back

By Sponsor Insight

Research reveals top concerns among nonprofits as they work on recovering from pandemic

by Leslie Wells, assistant director of communications, Paul H. O’Neill School of Public and Environmental Affairs at IUPUI

New research on COVID-19’s impact on the nonprofit sector finds that organization leaders who want to find a way forward must first look back at how they have weathered the pandemic thus far. While the past 15 months have been a challenge for every sector, associate professor/researcher Marlene Walk is optimistic about the future of nonprofits.

“It’s very interesting how nonprofits rose to the challenge while still serving those in need,” says Walk, who teaches at the Paul H. O’Neill School of Public and Environmental at IUPUI. “For many smaller nonprofits, this was a survival situation for both their clients and them as well.”

After analyzing data and examining trends, Walk has three pieces of advice for nonprofits as they navigate the return to work and the future of their organizations:

  • Ask employees for their opinions, including about remote work and whether it can/should continue.
  • Determine which organizational practices can be improved upon.
  • Evaluate which new technologies adopted during the pandemic should be institutionalized.

Walk and O’Neill student Abby Klippel recently worked with Mandi Stewart, an associate professor at North Carolina State University, and Kerry Kuenzi, assistant professor at the University of Wisconsin-Green Bay, to analyze 77 COVID-19 impact reports collected through the National Council of Nonprofits. These reports detail how nonprofits have operated since March 2020. The data analysis covers more than 23,000 nonprofit organizations across 43 states.

The team released its updated report on May 5, 2021, focusing on three areas of impact: financial indicators, human resources and employees, and the most common COVID-19 concerns.

Survey results: Common COVID-19 concerns

Organizations in 13 states answered questions about their most pressing issues. Among them, finances were the most common COVID-19-related worry for organizations in nine of those states.

Nonprofits in eight other states ranked “struggling with how to safely offer services during a global pandemic” as their top concern.

Lastly, nonprofits in six states were primarily worried about their own organization’s human resource considerations, including their employees’ job status, salaries, and overall well-being.

The human toll

That third area is Walk’s primary research focus — the employee side of the equation.

Previous studies from Johns Hopkins University showed the nonprofit sector lost about 13% of its workforce from March 2020 to February 2021.

“That mirrors what we see in our research,” Walk says. “It will take years for that workforce to recover that number of lost workers.”

She says while large organizations will likely be fine, how smaller organizations handled the pandemic will have a big impact on their future.

“We’re really interested in the employee perspective,” Walk explains. “How do they perceive their organization’s changes? If a nonprofit laid off 20% of its workforce, how does that impact those who are still there?”

Their research found that many nonprofit workers saw their hours reduced, their pay cut, and, in some cases, their jobs put on hold or eliminated. Much like in other sectors, many also saw a shift to predominately remote work.

“These organizations need to look at what worked well from an employee perspective, not just a financial perspective,” Walk says. “Our fear is that employees may feel this pandemic was such a critical incident, and that their employer didn’t handle it well, that they will choose to leave.”

Another report Walk is working on, due out later this year, seems to also show the other side of the spectrum.

“Our initial research is showing that some employees have doubled down on their commitment to the nonprofit sector,” she says. “It really depends on how they were personally affected by COVID and how they think their organization handled it. Was their psychological contract, those unwritten expectations of their organization, violated? That has a big impact.”

Financial stressors

When it came to the financial impact of COVID-19, Walk admits the team wasn’t surprised by the findings. Many organizations reported individual donations and membership fees were down. In fact, 90% of responding organizations in Nevada saw individual donations plummet and 68% of nonprofits in Texas saw a decline in earned income.

Grant revenues were down as well. Nearly 35% of respondents in Texas reported a delay in grant processing, which can affect cash flow. About 16% of those in Connecticut saw a reduction in state grant funds.

But one of the hardest hit areas were arts-related nonprofits.

“It’s important to keep in mind that nonprofits are really diverse,” Walk says. “How an organization was impacted really depends on what types of nonprofits we’re looking at. The arts sector was hit very hard because they often have outward-facing events as a main source of revenue. Having concerts virtually is just not the same.”

In fact, 90% of West Virginia’s responding nonprofits reported cancelling events due to pandemic precautions, while the same was true of 25% of nonprofits in Alabama and Georgia. Reports like these indicate that the arts sector is the slowest sector to recover, with studies projecting it will take at least 18 months for it to bounce back.

Walk stresses that it’s important to focus on more than earned income, though. She uses social services as an example of organizations that were hit from both sides.

“Social service organizations had to adjust to drops in volunteers, increases in demand and expenses to provide for clients, and shifts in procedures due to distancing and cleaning requirements,” she explains.

Respondents in Missouri indicated an average expense increase of $302,417 per nonprofit during the study period, while Pennsylvania respondents indicated a total estimated $95.3 million in additional operating costs.

Looking ahead

Between the numbers, Walk sees signs of hope and further proof that the nonprofit sector is resilient and capable of adapting to change.

She points to the increase in collaboration, resource sharing and partnership development during the pandemic that helped nonprofits survive and serve their clients. Some smaller nonprofits even added health care to their employment packages, which would be a positive trend — if it sticks around.

“There will be collateral damage, unfortunately, but I tend to be more positive than negative,” Walk admits. “I think the sector as a whole will recover and continue its mission to serve.”

To read the full article and access the data tables, visit States of COVID-19: Synthesis of State-level Nonprofit Reports on the Impact of the COVID-19 Pandemic.

Jun 28

Hundreds of Hoosiers participate in free wellness program designed to combat stress, trauma, PTSD and burnout

By Feature

Eskenazi Health and Center for Mind Body Medicine training provides attendees with tools for healing in the midst of pandemic

by Shari Finnell, editor/writer, Not for Profit News

As experts seek to gain a better understanding of the long-term impact of COVID-19 on mental health, about 1,500 Hoosiers have recently enrolled in evidence-based training to proactively equip themselves with self-care tools, including meditation, guided imagery and biofeedback under Eskenazi Health’s Hoosier Heartland Healing Collaborative.

The free statewide initiative, which is sponsored by Eskenazi Health, in partnership with the Center for Mind Body Medicine, comes at a time when people are increasingly acknowledging the need for managing stress and trauma, said Megan Hider, Mind-Body Program supervisor at Eskenazi Health.

“I do think the conversation has really changed, in a good way, about how we think about stress, and our emotional health, spiritual health and how we physically function,” Hider said. “Wellness and mindfulness have become more mainstream throughout society. We’ve all been dealing with trauma and secondary trauma. We need to chip away at the stigma of trauma, whether it’s everyday trauma or a natural disaster, or whatever we experience.”

As part of the program, which was partially funded by the Herbert Simon Family Foundation, individuals participate in small groups of 8 to 10 people led by a facilitator who has gone through a two-part training program. The participants are asked to commit to a series of 2-hour weekly sessions during an 8-week period. As part of the training, participants learn numerous self-care skills that have been scientifically proven to lower levels of stress, improve mood, enhance resiliency and optimism, and help prevent chronic health conditions.

Hider said that the free training, which is open to any Indiana resident, can better equip first responders and other employees who are in a position of helping others. By learning the self-care techniques themselves, they can manage the stressors in their own lives so that they can better focus on helping others in challenging situations. “With everything we’ve been going through in the past year, it came at a perfect time,” she said.

The benefits of the training were quickly evident, said Christy Gauss, MSW, LSW, owner of SCP Consultants and a former school mental health facilitator for the Indiana School Mental Health Initiative. Gauss, who underwent intensive training to become a licensed group facilitator under the Mind Body program, said it was a powerful experience.

“I didn’t know what to expect when I went into it,” Gauss recalled. “You learn the science and skills of self-care in an environment where you have peer-to-peer support. It’s all about you and what it means in your own life before you start learning how to teach everyone else.”

Gauss said that type of firsthand learning is essential for those who support others, including first-responders, teachers and nonprofit employees. The potential for burnout can be significant for these groups, she added.

“You have to learn how stress is impacting you first,” she said. “You need to put on your own oxygen first, which we can be very bad at.”

Hider said the training can be very empowering for the attendees, who are able to devote an uninterrupted span of time to focus on themselves during each session. “It gives you space to become self-aware of your feelings, emotions and body sensations,” she said. “You’re able to learn about the physiology of the body and what happens when you’re stressed and when you’re calm.

“You are given the ability to heal yourself in a unique way that doesn’t happen in other spaces,” Hider added. “If we want to show up to places of service and places of community, we must be advocates for ourselves.”

For more information about the Eskenazi Health Hoosier Heartland Healing Collaborative or to sign up for a session, visit the program’s site here.

Jun 21

3 hot topics in treasury management right now

By Sponsor Insight

by John Haggarty, vice president; Gail Bradley, vice president; and Dave Voris, region manager, treasury management, Horizons Bank

As part of our interactions with nonprofit clients, we consistently hear about topics related to interest rates, credit card acceptance, scams and fraud. Here are a few tips to help you address challenges in these areas.

Interest rates
Many nonprofit organizations, especially in the wake of the pandemic, struggle to have enough funds to fulfill their mission — notwithstanding that the current interest rate environment has drastically reduced the earnings that can become available from their reservoirs of cash.

We’ve heard nothing to indicate that short-term investment rates will be increasing in the near future. Several issues are keeping interest rates down. First and foremost, interest rates were drastically reduced in March of 2020 in an attempt to support the U.S. economy, during a period we know now as the beginning of the pandemic. And, in the latest jobs creation report from March, employment numbers are improving but not at a rate for the Federal Reserve to begin raising rates despite concerns about some inflation.

There also is an extreme amount of cash built up within the banking system, brought about by corporations that have conserved cash as a strategy to work through the uncertainties caused by the pandemic. This cash build-up also is caused by less than normal spending among consumers who have been housebound during the past 15 months.

A combination of the above, along with recently introduced assistance from the federal government, the overall banking system is so flush with deposits that higher interest rates do not need to be paid to attract additional deposits. Since we expect this condition to last for at least 12 to 18 months, we recommend that nonprofit organizations not lock funds into long-term certificates of deposit simply to achieve some additionally higher rates. They should also consider asking about the option of tiered money market rates instead of traditional certificates of deposit. Learn more about these options here.

Credit card acceptance
To help with donation cash flow, nonprofit organizations should allow donors to submit funds directly with online payment portals. An online payment portal is a convenient solution that increases revenue, generates material operating efficiencies, expedites transactions, improves customer service and convenience, and powerfully enhances any enterprise payments platform.

How does it work? A unique web address is provided and linked to a secure landing page. This portal can support both consumer and business-to-business payments.

These donations can be established as one-time donations or as an ongoing monthly or quarterly donation. That functionality can assist with various donations becoming an annuity instead of a one-time event. Learn more about the features of an online payment portal here.

Protecting against fraud
Another major concern among nonprofit organizations is the risk of fraud. There are several ways to help your business or nonprofit stay safe from scams and fraud.

For example, Horizon’s Positive Pay enables clients to easily detect counterfeit and fraudulent and unauthorized items on a daily basis through online banking. The checks are compared to the issued check file that is uploaded to the secure portal. Any mismatched items will be flagged for the user to review for payment. Protection against check fraud as well as unauthorized ACH transactions can avoid much expense and interruptions to an organization’s operations.

Our Reverse Positive Pay also allows users to review all incoming and paid checks for potential fraud scenarios, making an organization’s checking transaction management process less prone to faulty checks and their attached business losses.

Another precaution we take at Horizon is Detect Safe Browsing. This software provides real-time security so clients don’t become victims of online fraud.

To learn more about how you can defend your nonprofit organization against fraud, visit our site.

John Haggarty, vice president, Gail Bradley, vice president, and Dave Voris, region manager, treasury management, represent many years of experience in understanding the unique needs of nonprofit organizations. They focus on wrapping specially designed depository products, treasury management, and funds management together to help each nonprofit organization manage their cash flows in the most economical way.

Jun 21

Developing a successful hybrid-work model

By Sponsor Insight

By Cody Lents, Partner and Change Manager at COVI, Inc.

Empower employees with choice
As vaccinations trend up and restrictions trend down, a significant number of workers are set to return to the office in coming months. Your extroverted employees are undoubtedly excited. However, their introverted counterparts may not share the same enthusiasm. So, how can you maximize morale and culture to enable the best performance out of both groups?: A thoughtfully-designed hybrid Work-from-Home (WFH) model that prioritizes both the needs of your organization’s employees and processes.

Lay the groundwork for success
The first critical step in transitioning into a hybrid WFH model is developing and communicating processes that level the playing field for both in-house and remote workers. Set clear expectations about your organization’s internal communications, cyber insurance, bring-your-own-device (BYOD) policy, etc., to ensure that remote workers don’t feel left behind compared to their in-person colleagues.

While remote work can be an opportunity to cut “traditional” office costs, leverage it as an opportunity to invest in your workforce. Consider using what your organization saves on overhead to provide your employees with a stipend to make working remotely more comfortable. This allows employees to outfit themselves at home with equipment like an ergonomic chair, an extra monitor, noise-canceling headphones, etc.

At the office, consider re-developing your organization’s layout to better accommodate a hybrid approach: dedicated “open-space” plans for those in and out of the office, private offices for focused work, and spaces specifically designed to encourage collaboration/socialization both face-to-face and virtually.

Invest in your infrastructure
The next critical step in transitioning your organization to a hybrid approach is ensuring your infrastructure is capable of handling the needs of employees working in different spaces. Now may be the time to upgrade your organization’s software to the enterprise level so that you can take advantage of security, communication and collaboration features.

Migrating your organization’s servers to the cloud is another way to streamline efficiency for your remote workforce. This makes it easier for your employees to collaborate and share files via a centralized location in which they can upload/save their work to.

Don’t compromise on security
With employees using a mixture of personal and company devices, it’s imperative that your organization communicates a clear security policy to ensure the safety of your data. The following three steps are a great start to a more secure digital infrastructure:

  • Determining what endpoint protection your remote workers need will aid in virus prevention. Windows Defender is a great antivirus software included in Windows 10, however, it does not meet the compliancy and security minimums of today’s security landscape.
  • Implementing two-factor authentication [2FA] is a secure way to ensure that only admins and users are allowed into accounts that would otherwise be vulnerable to cyber attacks.
  • Utilizing a virtual environment that allows devices to connect to a secure server or service, as opposed to a user’s internet connection, allows your organization to keep information encrypted, private, and safe.

Questions?
Now is the perfect time for a comprehensive technology assessment to prepare for the new-normal in our evolved workspaces. If you want to discuss what an assessment entails or if you need assistance implementing a hybrid-work approach for your organization, reach out to COVI at cody@gocovi.com for help. COVI is an Information Technology (IT) agency specializing in productivity, security, support and strategy services, located in Indianapolis, Indiana.

Jun 14

Public Support Test: 33.3% Is the Magic Number and Here’s Why

By Sponsor Insight

by Jamie Koglin, senior tax accountant, Alerding CPA Group

Whether your public charity is in the early years of formation or has operated for decades, there is one particular mathematical calculation that should always remain at the forefront of your decision making — the public support test. It is a small but mighty calculation that is vital to maintaining status as a public charity. On the Form 990, Schedule A is used to provide detail about sources of support, types of support and, ultimately, to calculate the public support percentage.

According to the IRS, there are two methods in which a non-profit may qualify as a publicly supported charity:

  1. Under IRC Section 509(a)(1): The organization is primarily supported by contributions from governmental units, publicly supported organizations, and/or the general public.
  2. Under IRC Section 509(a)(2): The organization receives no more than one-third of its support from gross investment income and more than one-third of its support from contributions, membership fees, and gross receipts from activities related to its exempt function.

An organization’s reason for public charity status determines which of the tests apply to calculate the public support percentage. For sake of simplicity, this article focuses on the testing under IRC Section 509(a)(1).

The 509(a)(1) Public Support Test

Organizations claiming public charity status under this section must receive at least 33.3% of its support from the public, or from governmental units over a 5-year period — the current year plus the prior four years. At a high level, public support/total support = public support %. Sounds simple right? Wrong. There are several factors used to determine this calculation, therefore, we will break it down further.

The numerator

The public support portion, or the numerator, consists of four important line items. The first three lines include gifts, grants, contributions, membership fees, tax revenues levied and the value of services or facilities furnished by a governmental unit to the organization at no charge. Unusual grants are not to be included. All of these sources of revenue are considered “good money” and help the public support test. The fourth line item is the portion of support classified as excess contributions. Excess contributions are considered “bad money” in that they hurt the public support calculation.

Excess contributions are amounts from a single donor, during a 5-year period, that exceed 2% of the total support of the organization over that same 5-year period. The amounts in excess of 2% are subtracted from the public support total. Thus, large amounts from a single donor, are considered “bad money” and have a negative impact on the support test.

Unusual grants, which are excluded from the calculation entirely, are generally substantial and material contributions from disinterested persons. They are also unusual and unexpected in amount, and large enough to jeopardize the public support calculation. There are many factors that help determine whether a grant is considered unusual, the most common is whether the organization would typically meet the public support test without this grant occurring. The ability to classify a large contribution “unusual” would ultimately be favorable for the public support calculation.

The denominator

The denominator of the calculation includes total contributions and grants, gross income from investments, income from unrelated business activities, other income, and gross receipts from related activities. If the numerator/denominator is greater than 33.3%, the organization passes the public support test. It is also important to note that in the first five years, the organization receives a grace period. The percentage is not calculated until year 6, therefore new organizations have some flexibility in their operations during the first few years.

Most organizations will pass the test consistently without issue. For those receiving a low percentage of support from the public, “tipping” becomes a concern. “Tipping” occurs when a substantial grant or contribution causes the percentage of public support to drop below 33.3%. If this occurs two years in a row, the organization will revert to private foundation status. “Tipping” into private foundation status not only has a negative impact on the organization but also on its donors. Private foundations are subject to more restrictions on its functions and their donors are subject to a lower deductibility of donations. In addition to that, the process to reclaim its public charity status will require a consecutive 60-month period of meeting the public charity test.

There are ways to prevent “tipping,” including seeking diverse sources of funding, ensuring that activities are classified correctly on Schedule A, and paying close attention to amounts that should be classified as unusual. Also, working with donors to ensure that contributions are received in appropriate installments or amounts is important as the impact it can have on the public support test can be unfavorable.

The public support test is critical. It is important to help these organizations understand this test and the impact it can have on maintaining their public status. These organizations are doing a great deal for our communities, and our country as a whole. We want them to do well and maintain their publicly supported status so that they can continue to carry on their mission and support the societies in which we live.

Oftentimes, the organization may not realize the impact on the public support calculation until the end of the year, which could result in an organization unexpectedly losing their public charity status or taxes being imposed. Because of this, it is important to monitor this calculation throughout the year to avoid any disruption when time to file the 990. The stakes are high, so it is important to keep good records and pay close attention. Need help? The trusted advisors at Alerding CPA Group can help navigate through the calculation.

As a senior tax accountant for Alerding CPA Group, Jamie Koglin prepares tax returns for individuals, corporations, partnerships, trusts, non-profits, property tax assessments and various states. Her responsibilities include managing client contact, research and recommendations, preparing extensions, strategic tax planning and quarterly payment consulting and interpreting tax laws and updates.

Jun 14

Pandemic reveals the challenges in eliminating inequities among Hoosier students

By Feature

Local nonprofit leaders predict a complex journey in addressing underlying issues

by Shari Finnell, editor/writer, Not for Profit News

Like many other nonprofit organizations, the team at Christel House Indianapolis had to quickly assess how to carry out its mission in spite of COVID-19 restrictions in early 2020 — an endeavor that revealed many of the challenges facing the students they serve.

“When the pandemic hit last March, our board members and our entire team came together and realized that the pandemic was not just going to last for a couple of weeks,” said Dr. Sarah Weimer, executive director of Christel House Indianapolis.

It was a critical undertaking as they considered the potential for educational setbacks among Christel House students living in some of the most under-resourced communities in Indianapolis. The closing of school buildings for 2,300 K-12 students and 750 adult learners would require addressing any challenges in their home environments.

Technology was identified as a priority, and the team implemented a plan to distribute devices to each of their students at their Indianapolis schools. However, that plan only addressed part of the equation. “They had the device but couldn’t access the Internet to download their assignments,” Weimer said. “We discovered that over 50 percent of our students in Indianapolis did not have access to WiFi.”

Although telecommunications companies offered discounted and free internet service for students in low-income households during the pandemic, more challenges came their way. “Providers were having deals for families to get free internet, but they had barriers,” Weimer said. “If you owed a bill, you couldn’t get free access. If you didn’t have a social security number, you couldn’t get access.” Through a partnership with the Indianapolis Mayor’s Office and a fundraising initiative, Christel House was able to purchase data packages totaling $10,000 a month to support their students. 

In looking back, Weimer said the pandemic further revealed the inequities that already existed based on demographics and neighborhoods. “The inequity question is one that we’re going to be grappling with for years to come,” Weimer said. “We don’t have a good grasp of how impoverished communities and communities of color were impacted by the pandemic. We know statistically but we don’t have an understanding of the toll, including the emotional and mental toll.

“There’s going to be a lot to unpack for the kids,” she added. “Besides academic and learning loss, the students we serve come from backgrounds where they need additional mental health services, food insecurity and childhood trauma, all of which were exacerbated by the pandemic,”

Dennis E. Bland, president of the Center for Leadership Development, an organization that equips African American youth with education, business and community leadership opportunities, including scholarships, said that the pandemic highlighted varying mindsets about the value of an education — a gap that must be addressed to ensure that equity is achieved.

Bland said there often is a perception that everyone understands the opportunities that are open to an individual who is committed to advancing their education. However, he said, that lack of understanding can be at the root of some inequities.

Students, especially those growing up in households where the importance of an education is stressed, will more likely take advantage of tutoring, counseling, summer classes, college prep and other programs that are available to them. “Students who were committed to taking advantage of those resources were the students who did the best,” he said. “It’s not necessarily the lack of resources, it’s a lack of understanding about the value of an education.”

Bland said the conversation must start there — educating students and their family about the value of an education. “It is the duty of caring people in our community to encourage students to study and to take advantage of these resources — not whether or not you feel like it. This is about whether or not you want to be successful. Success often means doing the opposite of what you feel.”

“We need to give more people an education on education,” Bland added. “We struggle as a society because we go along as if we think that people innately value education and learning.”

The challenges in understanding the impact of the pandemic on students is multi-faceted, Weimer agreed. “It’s not just about academic preparedness,” she said. We must address the social and emotional issues that have been confounded during the pandemic year. We will be focusing on those issues during the upcoming year.”

Christel House has had a history of addressing those complexities as part of the support it provides students. “We follow our students for five years after they graduate,” Weimer explained. “Poverty isn’t alleviated just because they graduated. The hurdles they have to overcome don’t magically disappear after they get a diploma.”

The organization tailors a support plan for each student, depending upon their specific needs. As they navigate college or other educational and career paths, each high school graduate stays in contact with college and career administrators who are aware of the potential barriers to their success.

“They (students) can proactively reach out if they need gas cards if they lose a job. If they have a job interview, we can help them secure interview clothes,” Weimer said. “We may have students in college who will sign up for classes and realize their books are not covered by financial aid. We’ll pay for their books.”

Navigating the complexities of college, like understanding what a Bursar’s Office is, can be difficult for first-generation high school graduates or first-generation college-goers, especially since they can’t go to their families for direction, Weimer added. “Some things are foreign for a large portion of our families,” she said.

While these challenges were already familiar to Christel House, the pandemic shed more light on some of the hurdles facing students who are in households where English is a second language. 

Many families with children learning at home are able to easily stand in and help them adjust and assist with questions related to their studies, Weimer noted. However, about 50 percent of the Christel House Indianapolis students live in households where the adults don’t speak English or who don’t engage with computers on a day-to-day basis.

“When they’re trying to help their child navigate assignments or instructions, there’s a language barrier,” Weimer said. “We need to do a better job of paying attention to low-income households, communities of color, immigrants so that we can do a better job of outreach, equitable practices and equitable access.”

Jun 07

Build resiliency into your nonprofit strategic planning

By Sponsor Insight, Uncategorized

by Angela E. White, CRFE, Johnson Grossnickle and Associates

Life is full of opportunities and challenges, and we certainly faced our share in 2020. However, not everything we’ve gone through in the last year is negative. There are some lessons learned we may want to keep — opportunities to capitalize on in the future. It is important to learn from each challenge so you can prepare, mitigate, and more easily turn the next challenge into an opportunity. That’s called resiliency. It sounds easy — but let’s be honest, it isn’t.

Resiliency is the ability to recover from a setback, adapt to new challenges, and keep going in the face of adversity. In a nonprofit, as a staff or volunteer leader, one of the best tools to foster resiliency no matter what is thrown at your organization — internally or externally— is a strategic plan, which:

  • Provides a road map to lead your organization from where you are now to where you would like to be in the future;
  • Sets priorities and focuses your organization’s resources; and
  • Establishes measurable goals and a template to evaluate progress and adapt to a changing environment.

During a recent JGA webinar, I shared six tips to help you create a resilient organization by building resiliency into your strategic planning:

  1. Prepare for the unexpected. Include learning sessions at the beginning of your strategic planning process to provide the knowledge you need to make your organization more resilient.
    a. Acknowledge internal and external threats,
    b. Consider different scenarios and plans,
    c. Stay informed about trends, and
    d. Identify lessons learned.
  2. Concentrate on the customer experience: For nonprofits to be resilient, it is important to think about who your core “customers” are and who your potential “customers” might be as you think about implementing your mission and opportunities for growth.
    a. Provide excellent customer service,
    b. Help your customers (constituents, donors, etc.) make their lives easier,
    c. And anticipate their needs.
  3. Find a niche: Finding your niche doesn’t mean staying stagnant — or just doing what you’ve always done. This is where your mission statement is key. Let it serve as your anchor in this process.
    a. Establish what is unique about your organization and bolster your special traits,
    b. Strengthen and create partnerships, and
    c. Continue to strengthen financial sustainability.
  4. Invest in good tech: Put technology in place to implement a business continuity plan to make your organization resilient and to best position yourself to implement your strategic plan.
    a. Put the right technology in place,
    b. Ensure technology helps you, and
    c. Don’t spend time doing tasks that take you away from your constituents.
  5. Cultivate a productive work culture: The values section of your strategic plan is key to strengthening your work culture and helping you build resiliency. Keep those values central to your future planning and invest in your people as they are the ones who are going to make your strategic plan a reality.
    a. Build a resilient culture through open communications and trusting relationships,
    b. Prioritize learning opportunities, and
    c. Foster team building.
  6. Give back to the community: In your strategic plan, make certain you have embedded opportunities for staff and volunteers to touch and feel your mission, so they understand their role in giving back to the community and supporting the important work you do.
    a. Provide opportunities for staff and volunteers to engage with the mission,
    b. Serve the community, and
    c. Be transparent to foster trust in your organization by stakeholders and the public.

You can learn more about weaving resiliency into your organization’s plans by listening to the complete Nonprofit Resiliency and Strategic Planning webinar recording. If you’d like to discuss undertaking a strategic planning process, creating a short-term plan tailored to your changing environment, or gathering strategic intelligence to inform decision making, we’ve put together a list of special fast-track packages to help you in 2021.

Angela E. White, CFRE, serves as Senior Consultant and CEO of Johnson, Grossnickle and Associates. She previously served as Executive Director for Institutional Advancement at the University of Indianapolis and Vice President of Institutional Advancement at Saint Mary-of-the-Woods College. Angela is a faculty member at The Fundraising School at the IU Lilly Family School of Philanthropy, presents on behalf of the Women’s Philanthropy Institute, and serves on the Committee on Directorship for CFRE International.

Jun 01

Is it time to let go? Then do it

By Sponsor Insight

by Jan Breiner Frazier, managing member, Planning Plus, LLC

Beginnings are exciting, stimulating, and often exhilarating. Endings are functional, inevitable, and sad.

No words are truer than these when thinking about retirement and succession planning. As a 30-plus year consultant, I have advised a number of CEOs, including owners and founders, to begin thinking about succession planning — not only for them but for their key leadership staff and longevity of their organization. In fact, this is a critical discussion topic that generally emanates from strategic planning. And, on more than one occasion, this advice proved valuable to the company when the key leader unexpectedly was out of the picture.

For the past few years, there has been a sea change occurring in the non-profit community as founders, and long-term CEOs and executive directors are thinking about, planning for, or have already followed through on retirement. Many of those who rose to the occasion of providing “human” services in such areas of healthcare, housing, food insecurity, mental health, domestic violence, etc. to those needing a helping hand were children of the 60’s who wanted to make the world a better place. Many of them did. But, as with all human endeavors, it becomes time to take a rest and turn it over to the next generation.

This article, however, is not about the need for succession planning. Rather, this writing is geared to those who are handing over the reins — and it is much harder than it sounds. I can attest to that.

During my consulting tenure, I have gathered a body of knowledge used to guide, lead and often direct organizations towards success. For the last few years, I have been transferring much of that knowledge to my partners so they can continue the organization into the future, or as long as they want (it helps that they love what we do). As a professional, I know that what I do, I do very well. But as a founder, I know that I need to be open to new ideas of what we do, how we do it, and for whom. At some point, I have to let go to allow my protégés the freedom to experience their own successes, challenges and, yes, sometimes failures. That is the only way to grow.

If I have done my job well, they will be fine. Just as parents must trust they have created a solid foundation for their children to succeed, so it is with business leaders. Yet the human condition is such that it is often difficult to manage such a transition.

As I look at a five-year plan, these are the steps I recommend (and am trying to follow):

  1. Provide opportunities for professional development in other areas than your primary business. Ensure the next generation is well versed not only in your industry, but in higher level thinking and strategizing opportunities. My two partners have enrolled in multiple programs to increase their skill sets (and obtain several certifications) as well as find new ways of looking at things.
  2. Avoid being the “final” say on proposals and project methodologies. Make sure others know the critical pieces but allow for their own language, tone, and approach to working with clients.
  3. Become more of a mentor than a boss. Rather than explaining how they should proceed, ask the critical questions about why they have chosen a particular path.
  4. Identify (and stick to) the role you will play over the next year, two years, etc. It is exceedingly difficult for staff when you float in and out of the business — one day hands off, the next day micro-managing.
  5. Remain open to their ideas of operations, approach, and implementation, while at the same time ensure they are up to speed on all financial and legal requirements of the organization.

To some, this article may seem like “of course” simple concepts, and you may already be going down this path. But for those of you thinking about winding down over the next few years — and those of you who are ready to take up the mantle — it would be an interesting conversation to have to determine how well you are managing an impending transition.

What does staff need from you? How can you provide guidance instead of management? And, most importantly, what legacy do you want to leave?