Skip to main content
Category

Sponsor Insight

Nov 18

Collecting Donations for Your Nonprofit Organization

By Sponsor Insight

By Dave Voris, Vice President and Regional Manager, Horizon Bank

Are you running a nonprofit organization? If so, you know that sustainable donations are a critical part of living up to and meeting the IRS’s public charity test and fulfilling your mission.

Whether your organization is directly serving others, working on valuable research, or meeting recreational needs in your local community, your donors need easy and safe ways to contribute.

Leverage your website

Chances are, you’re already using a website to communicate with your target audience, which includes donors. But to maximize the advantages of your site, be sure to allow for donation submissions as well.

According to Mobile Cause, there must be a compelling reason for site visitors to use a pay portal. If a donor is inspired by your organization’s message and wants to give, most likely they’ll want to give NOW. As a nonprofit you should strive to minimize the number of steps required to send a donation. The more steps required, the easier it is to lose the donor’s attention. Mobile-friendly donor buttons make it easy and possible for your supporters to take action quickly and from any geographic location.

Here’s how to make it work best for you:

  • Look for a payment portal service that can be integrated into your site. Sites like Double the Donation can provide you tips about what to look for. Such services typically take a small fee from each donation, as payment for their services. This makes credit card processing, overall, a little more expensive than handling other payments — but the ability to make this type of donation is in high demand. Locally, Horizon Bank offers payment processing systems that can work for you. Just contact us for details on how we can help your nonprofit organization with this need.
  • Implement your payment portal to allow for either a one-time donation, or recurring monthly donations. This makes it easy for both you and your donors.

Next, you need to communicate the service to your audience:

  • Make it easy to find your payment portal. One simple way to increase online giving is to make sure your visitors have no trouble finding your DONATE or GIVE button when donors visit your website.
  • Then, send out periodic reminders through several channels — an e-newsletter, social media and other communications — to drive new or repeat donors straight to your website to make contributions to your cause.

Recurring donations will, of course, be very beneficial to help you handle general operating costs like rent, salaries, event costs, and more. Those donations are spread throughout the year and are contributions you can factor into your annual plan.

For many organizations, online fundraising works to spread your mission and make sure donors and potential donors understand what your nonprofit does and why they should donate to your cause.

Dave Voris is a vice president in the Indianapolis market for Horizon Bank, N.A. As a senior treasury management officer, he works closely with middle market, nonprofits, and small business companies in a broad span of industries. His 25 years of business experience have included treasury management, merchant services, and international banking including sales management, client service and implementation management, product management and electronic payment operations.

Need more ideas? Reach out to an advisor at Horizon Bank. And check out this additional idea for bridging financial gaps. We’re always happy to help, with some Sensible Advice! contact us today.

Nov 11

How giving makes you greater

By Sponsor Insight

By Sandy McCarthy, Retirement Services President, OneAmerica

I still remember the first time I read the OneAmerica® annual report. As a 30-plus year veteran of the retirement industry, I’ve seen my share of them. But this one was different, and, in the midst of discussions and interviews during the summer of 2018, its annual report was a major factor in my decision to join the company as president of the retirement services division.

Detailed in those pages were, of course, the financials. But more than that, I saw a company that cared – for its associates, its valued partners, its customers and its community. I believe that it’s this genuine, selfless dedication to caring for others and contributing to the greater good that makes OneAmerica special.

Giving back as a company

OneAmerica takes seriously its role as a corporate citizen. From our involvement with the 500 Festival Mini-Marathon, the Broad Ripple Art Fair and the Indiana Repertory Theatre, to investing in our community through grant programs and charitable giving, we aim to better the local communities where our employees and customers live and work. In 2018 alone, we:

  • Supported more than 80 organizations, by contributing $2.2 million and 5,000 volunteer hours
  • Gave more than $800,000 in support for organizations that provide people in need with emergency help, including hunger relief, emergency shelter and counseling services
  • Provided $50,000 in regional grants to nonprofits across the United States from OneAmerica and our sales and field teams across the country.

Giving back doesn’t end with monetary involvement or sponsorships. Our associates also pledge their time and skills as a team. During our annual Week of Caring, a weeklong “pay it forward” event started in 2014 by our Chairman, President and CEO Scott Davison, our associates devote time to volunteering for various causes. This September, approximately 1,100 associates took part, providing a collective 3,200 hours of compassion and companionship as they volunteered with nearly 30 nonprofit organizations throughout the country.

Individual associate contributions

No matter the corporate culture, an organization cannot truly give back without the support of its associates. At OneAmerica, I believe we have some of the best. Their passion and dedication to their local communities, through the United Way, the Red Cross, Dress for Success, Junior Achievement and more, is inspiring and makes me proud to work with such a selfless group.

I recently heard about one of our marketing associates, who spends Tuesday mornings helping Gleaners Food Bank deliver items to a neighborhood food pantry at 42nd Street and Boulevard. In addition to this physical labor, he is also devoting his time to help the food pantry start and maintain its first Facebook page.

Just as it is for so many of our associates, community involvement is personal for me as well. I sit on the board of the local chapter of the American Red Cross, and before coming to Indianapolis I served on the board of trustees for the Children’s Center for Communication/Beverly School for the Deaf (Massachusetts) and as a mentor for the Entrepreneurship for All program.

Serving the tax-exempt market

The OneAmerica commitment to caring also extends into the way we do business. One of our major focuses is the tax-exempt market. Not only do we understand the unique challenges for these plans, we are proud to serve these organizations which are so important for our communities.

At OneAmerica, tax-exempt business is in our DNA. Our work in this sector began in the mid 1960s, and many of our longest tenured clients are nonprofit organizations. Our seasoned team is experienced in serving tax-code neutral plans and delivering personalized solutions that allow these mission-oriented, client-focused organizations to help their participants on their paths to retirement.

The spirit of caring for others and giving back is essential to the OneAmerica culture and is brought to life each day through our associates – both at work and in their personal lives. I’m grateful and proud to work for a company that reflects my values and strives to improve the lives of our customers, participants and neighbors – and for the chance to see that caring spirit, described in the annual report, alive and flourishing at OneAmerica each day.  

OneAmerica is the marketing name for the companies of OneAmerica. Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice.

As president of the retirement services division, Sandy McCarthy leads the OneAmerica® team offering defined contribution and defined benefits services with a strong focus on customized retirement plans through highly personalized administration and recordkeeping services. She brings more than 30 years of industry experience, including executive leadership roles at Mercer, ING (now Voya), CitiStreet and most recently, her own consulting firm SDM Strategic Solutions.

McCarthy graduated with honors from Tufts University, earning both her undergraduate in sociology/education and Master of Arts degree in education, then completing an MBA from the Fuqua School of Business at Duke University. She served on the board of directors of the American Benefits Council, Spark Institute, Boys and Girls Club of Middlesex County Massachusetts and the Children’s Center for Communication Beverly School for the Deaf. She was also a founding member of the Superannuation Industry Leadership Group in Australia. She currently serves on the board of the Greater Indianapolis chapter of the American Red Cross and the Employee Benefits Research Institute, based in Washington, D.C., and is a mentor for the Entrepreneurship for All (EforAll) program. 

Oct 28

Role of technology in advancing nonprofits and careers

By Sponsor Insight

The Women’s Philanthropy Institute is diving into the topic of technology at its sixth national symposium from March 31-April 1, 2020 in Chicago. Learn more.

By Abby Rolland, communications project manager, Lilly Family School of Philanthropy

Technology plays an important role in the nonprofit sector. Archives in libraries are being digitized and readily accessible for online use. Social media allows individuals to witness the human face of disasters unfolding in real time. Online giving, text-to-give, and crowdfunding options help donors in any situation feel that they are giving immediately.

Technology can also help nonprofits raise both awareness and funds.  

Indiana University Lilly Family School of Philanthropy at IUPUI alumna Smita Vadakekalam has worked for technology strategy consulting firm Heller Consulting for over a decade since she graduated in 2001. She has a wealth of knowledge about technology, change management, and how the nonprofit sector has adapted to increasingly rapid growth in technology use.

For Vadakekalam knowing and understanding how to use technology is critical.

“We’re in a digital age where every role, whatever industry you work in, touches technology. By planning for it and using it strategically, technology has great potential. It can be fully utilized and enhanced to further an organization’s goals to make a powerful, important impact. In most cases, technology is the underlying infrastructure which nonprofits rely on to run their organizations,” Vadakekalam explains.

Rapid technology changes have also impacted nonprofits’ decision-making processes. Vadakekalam says that decisions made about technology changes used to occur in siloes, with individual departments using their own budgets and thinking of technology in a very narrow sense. Now, many individuals call her and her firm for C-suite level projects.

“Individuals want to make strategic decisions about their nonprofit, and they want to achieve growth at the organization,” Vadakekalam says. “They recognize that technology plays a large role in meeting their strategic plan.”

In other words, she says, they’re looking at it from a holistic perspective, and understand the important investment they’re implementing.

However, Vadakekalam cautions that nonprofits need to carefully prepare a strategic plan for whatever technology system they decide to use before they invest in it.

“There are so many choices one has when it comes to technological tools. You have to be strategic about the tool you’re choosing and why. You can waste time and money looking at these “shiny new objects” that don’t do what you think they do, so it’s vital to conduct a thorough planning process: be knowledgeable about your strategy and what product best fits that.

“That’s often where our company assists. We help curate the choices, and assist organizations in articulating their short-term and long-term goals. Then, we help find the best system that fits.”

To learn more though about technology and how it fits into an organization’s mission and goals, Vadakekalam encourages nonprofit practitioners to participate in opportunities, such as internships or classes, that focus on learning more about technology.

“Be curious, be open to learning, and be a problem solver. You can learn a lot about the sector and technology systems through free resources, trainings, and tutorials at your job.

“Also, elevate your soft skills. Be a good communicator, understand how people consume and process information, and figure out how you’re going to help teach them how to use these pieces of technology.

“You may need to make the case to some people in your organization as to why these tools are important to have. Be able to match that reasoning with the larger vision of the organization, and communicate that effectively.”

Vadakekalam emphasizes that technology has become a part of our everyday lives, and nonprofits must adapt and include it in their future plans.

“Nonprofits that strategically plan and implement technology in a holistic way can utilize it to further their mission and support the greater good. Understanding how to effectively utilize technology as a tool is a huge benefit for any nonprofit,” she explains.

How can you build a career in tech in the nonprofit sector? Vadakekalam shares some of her tips. 

Having hands-on experience is vital.

Knowing how to run your organization’s Customer Relationship Manager (CRM) system is important. If you work for a smaller organization, you can gain experience by being the administrator of the system. Then, continue to think creatively about ways that you can enhance the tool to further the goals of your department or organization.

Play a role on the decision-making committee for a technology transformation project.

Technology is rapidly changing, so there’s typically some kind of transformation project at your organization related to it. Being a part of this committee and helping select and implement the system will help you become more familiar with technology and the good it can do for your nonprofit.

It’s incredibly important to have a high-level of understanding about the processes within your organization and know the strategic tools you have at your disposal.

Look into free training and resources available either inside or outside the organization.

Technology systems have user groups that share how the system is used at different organizations.

Websites like Coursera, EDX, and Udemy offer free resources, and other organizations also offer complimentary materials, while NTEN and Tech Soup offer networking groups that work with technology in the nonprofit sector.

If you can’t find what you’re looking for within those free resources, consider checking out other resources.

The Fund Raising School offers the course “Digital Fundraising” to help you learn how to connect to your donors online. Consulting firms also provide free resources, including blogs, guides, and webinars on its website that include knowledge and experience built from over 20 years of working in the nonprofit and technology space.

Abby Rolland serves as the communications project manager at the Lilly Family School of Philanthropy, and is also working towards a master’s degree in philanthropic studies. She holds a bachelor’s degree in history from Gettysburg College.

Oct 20

Reviewing your organization’s board governance model

By Sponsor Insight

By Annmarie Novotney, senior audit manager, Blue & Co.

A strong board of directors will oversee implementation of strategic objectives for the organization, but also has ultimate responsibility and liability. Building a strong board is challenging, yet crucial to setting the right tone for success of your organization.

Have you assessed your organization’s overall governance model recently? Generally, it’s best practice to review governance policies regularly but at least every three to five years. For newer organizations, this time period may be shorter as circumstances and strategic positioning may change more frequently.

As you review your organization’s governance model, consider the following:

Board size: The IRS generally requires a minimum of three board members but does not have requirements on term limits. Many organizations have at least five members, with an average throughout our client base of 15. As you consider what board size is right for you, also consider if term limits are appropriate. If your review determines changes to board structure need to be made, be sure to amend your organization’s bylaws (for maximum board members and term limits).

Type of board: You may also consider whether your board is a working board or a governing board. Working boards have members that are heavily involved in the implementation of the mission, and often perform duties that paid staff would perform. Governing boards have a big-picture focus and work to delegate tasks to staff in an effort to govern the strategic mission, not implement it directly.

Skillsets needed: A diverse and skilled board of directors can serve its organization more effectively. In all areas, ensure that you are focused on nonprofit (NFP) expertise. Attorneys and accounting professionals are especially important in this regard as nonprofits are unique in many ways. Some examples of areas include:

  • Financial – This expert would be able to provide guidance on the creation of a budget, financial statements, and accounting policies and procedures, and insurance considerations.
  • Legal – As there are many requirements for a nonprofit organization, a legal expert can ensure the board stays up to date on all compliance requirements and provides guidance on any legal matters that may arise.
  • Marketing – Ensuring your organization is well-known throughout the community can provide significant growth opportunities for recognition and future funding. An expert in marketing can help accomplish this.
  • Technology – A technology expert can ensure the organization is doing its best to protect its assets and information from cybersecurity threats. Cybersecurity threats continue to plague NFP organizations of all sizes, so having an expert here could keep the organization up-to-date on security options and policy ideas.
  • Fundraising – An expert in fundraising is a must for any NFP board. This person should not only have connections in the community, but also know how and be willing to ask for donations in an effective manner.
  • Program/Industry– Having a board member familiar with your programs, or with industry knowledge that could assist in growing or expanding current programs, can be an asset to review plans for future programming within your organization. He or she can review and identify red flags in planning, as well as provide realistic expectations on how quickly a program can be started or expanded.

Board committees: Board committees are also an important part of a Board of Directors. The size and responsibilities of committees vary greatly between organizations based on their needs. For some committees, it may be best to have a committee chair, responsible for communicating decisions to the board and ensuring the committee remains focused on its goal. The following are suggested committees, but should be tailored to your current needs and long-term goals:

  • Executive – This group acts on behalf of the entire board as the steering committee and prioritizes agendas. They also manage urgent matters between meetings.
  • Finance – These individuals take on an expanded role of the financial expert mentioned above. Preparing or assisting with the budgeting process, reviewing internal financial statements, and presenting these items to the Board would be included in the responsibilities of the finance committee. This committee can also provide insight on whether goals are achievable based on the financial performance of the organization.
  • Audit – If an audit becomes necessary for the organization, having an audit committee can ensure it is clear who is responsible for staying current on financial requirements, chooses the audit firm, ensures there is no conflict of interest and has a clear understanding of the audit results.
  • Fundraising/program – This committee is focused on driving and monitoring the organization’s fundraising performance and can also track the effectiveness of specific programs to determine if any changes need to be made.
  • Governance/nominating – This group determines the requirements and qualifications of board members, nominates them, and ensures they receive proper training. This committee also drives board expectations and performs regular self-assessments of the board.

Annmarie Novotney is an audit senior manager in Blue & Co.’s Carmel, Indiana office. She’s been with the firm for over nine years and works exclusively with nonprofits, specializing in assurance and consulting services.

If you are considering a review of your governance policies, or if you have questions or need guidance on how to incorporate these suggestions, please contact Annmarie Novotney (anovotney@blueandco.com) or your local Blue & Co. advisor.

Oct 14

Federal tax law raises concerns for nonprofits

By Sponsor Insight

By Ryan Olson, senior accountant and CPA, VonLehman

Passage of the federal income tax law in late December 2017 brought into reality a variety of concerns that nonprofits raised as the bill worked its way through Congress. In addition to the increased standard deduction that’s expected to depress charitable giving, the final Tax Cuts and Jobs Act (TCJA) includes several other provisions that prompted objections from charities.

Calculating UBTI

The corporate tax rate under the TCJA is a flat 21%. This change will benefit some nonprofits paying unrelated business income tax, because the tax is imposed at the corporate rate.  Those nonprofits with unrelated business-taxable income of $50,000 or less have an increased tax rate. It has increased from 15% to 21%.  Those nonprofits with unrelated business-taxable income of $50,000 or more have a decreased tax rate from anywhere from 25-35% to 21%.

Under the TCJA, nonprofits must calculate their unrelated business taxable income (UBTI) separately for each unrelated business. As a result, they can’t use a loss from one unrelated business to offset income from another unrelated business for the same tax year. But they can use one year’s losses on an unrelated business to reduce their taxes for that business in a different year (subject to certain restrictions).

In addition, the law includes certain fringe benefits in UBTI. Nonprofits now must include certain expenses in UBTI incurred to provide employees with qualified transportation fringe benefits (for example, transit passes), a parking facility used in connection with qualified parking fringe benefits and any on-site athletic facility.

And under the TCJA, reimbursements to employees for moving expenses or any activity considered to be entertainment can’t be excluded from that employee’s taxable compensation.

Excise tax on excess compensation

The TCJA creates a 21% excise tax on nonprofit executives’ compensation (including most benefits and any payments from related organizations) in excess of $1 million considered paid to a covered employee plus certain large payments made to that employee when he or she leaves the organization (known as “excess parachute payments”). “Covered employees” refers to current or former employees who are among the five highest paid employees for the taxable year or who were covered employees in 2017 or later. Once considered a covered employee, an individual is always a covered employee.

A payment generally is considered an excess parachute payment if:

  • It’s contingent on the employee’s departure, and
  • The total present value of all such payments to the employee equals or exceeds three times his or her average annual compensation for the preceding five years.
  • The excise tax applies to the amount of the parachute payment, less the average annual compensation.

Reduced charitable-giving incentives

The near doubling of the standard deduction was expected to reduce the number of taxpayers who itemize their deductions and, therefore, the number who can deduct their charitable contributions. In fact, Charitable giving by U.S. individuals fell 1.1% to $292 billion in 2018, according to Giving USA.

The TCJA includes further disincentives to giving. The law could hurt major contributions because it increases the estate tax exemption to $10 million, annually indexed for inflation, through 2025. Some wealthy individuals make major gifts to reduce their taxable estates, and the larger exemption means they won’t need to shrink their estates as much to avoid the tax. The TCJA also repeals the deduction for donations made in exchange for the right to buy tickets to college athletic events.

While the TCJA raises the limit on cash donation deductions from 50% of adjusted gross income (AGI) to 60%, that change isn’t predicted to have much of an impact. Cash donations of even 50% of AGI are already uncommon.

Certain tax-exempt bond interest repealed

Tax-exempt bonds usually pay lower interest rates than other bonds. The tax-exempt nature of the interest makes such bonds attractive to investors despite the lower rates.

A bond that is issued to pay principal, interest or the redemption price on an earlier bond issue is called an “advance repayment bond.” The TCJA repeals the tax-exempt treatment for interest paid on advance repayment bonds that are issued to repay bonds with more than 90 days remaining before the redemption date.

For example, if you issue tax-exempt bonds at 5% interest but subsequently learn you can refinance the bonds at 4% interest, the interest payments on the 4% advance repayment bonds won’t be tax-exempt for investors. You’ll probably need to pay more interest to cover the investors’ increased tax liability.

Next steps

Although the final guidance and procedures have yet to be issued by the IRS, the TCJA may have some negative repercussions for your organization going forward. Consult with your CPA now to determine the best steps to minimize any potential damage to your bottom line — and your ability to accomplish your mission.

What didn’t make it into the Act

Some of the provisions that caused concern among nonprofits didn’t make it into the final tax act. They include:

  • Johnson Amendment repeal. The House of Representatives’ version of the TCJA would have repealed a prohibition against nonprofits engaging in political campaign activity. Many nonprofit leaders had mobilized in opposition to this repeal.
  • Private activity bond tax-exempt treatment termination. The House bill would have eliminated the tax-exempt treatment of interest on the private activity bonds some organizations use to finance capital projects.
  • Expanded donor-advised fund reporting. Under the House bill, sponsors of donor-advised funds (DAFs) would have been required to report additional information on their Forms 990, including the average amount of grants made from DAFs during the taxable year.

Excise tax rate on private foundation net investment income. The TCJA left out a House provision establishing a streamlined rate of 1.4%, sticking instead with the two current rates of 1% and 2%.

Ryan Olson is a senior accountant working out of VonLehman CPA & Advisory Firm’s Indianapolis office. Olson specializes in tax and works with a wealth of nonprofits.

Sep 03

4 reasons why your board is disengaged and how to fix it

By Sponsor Insight

By Kara Harrison, consultant, Hedges

We’ve all experienced it, and we know exactly what it feels like. Having a disengaged board is disheartening and can be a strain on already limited resources. It takes precious time away from the reason why the organization exists.

Disengagement is hard to define, and it’s even harder to fix. It takes time and intentionality. Before we dig in to why your board may not be engaged, let’s first paint a picture of what a disengaged board might look like:

  • Board meetings are an update session where the board is being talked at and passively listening to reports.
  • Executive directors feel like they are managing up to the board.
  • Board meetings feel like a scene out of “Groundhog Day”, the same challenges being shared by staff and the same questions being asked by the board.  
  • The same two or three board members are doing everything, and they are exhausted. It’s likely you are ignoring term limits just to keep these board members, because you can’t imagine what would happen without them.
  • Board members only see each other in the board room. There are no social events for board and staff to get to know each other personally and build respect and connection.

Ignite your board

At Hedges, we hear about these and other challenging board scenarios from board and staff leadership on a weekly basis. Through our experience working with nonprofit boards, we have identified four specific reasons board members may not be engaged and clear actions you can take to ignite your board to provide what your organization needs.

  1. Your board does not know what they should be doing. They don’t understand their roles and responsibilities as either a board of directors or as independent board members. BoardSource (Ingram, 2015) published a comprehensive list of 10 basic responsibilities nonprofit boards should follow:
    • Determine the mission and purposes, and advocate for them.
    • Select the chief executive.
    • Support and evaluate the chief executive.
    • Ensure effective planning.
    • Monitor and strengthen programs and services.
    • Ensure adequate financial resources.
    • Protect assets and provide financial oversight.
    • Build and sustain a competent board.
    • Ensure legal and ethical integrity.
    • Enhance the organization’s public standing.

Additionally, board members are required to follow three legal duties also described by BoardSource; duty of care, duty of loyalty, and duty of obedience. Lastly, there should be several set expectations that are determined by the needs of the organization, such as:

  • Actively participating in board meetings and on committees, according to participation and attendance policies;
  • Understanding the organization’s mission and programming through program immersion opportunities like volunteering or shadowing;
  • Attending and actively promoting all organizational events; and
  • Contributing to the organization’s fund-development efforts through personal giving and fundraising.

While staff leadership might have a clear understanding of these roles, board members don’t automatically come to the board room knowing these things – roles need to be taught early and reiterated often. Board roles, responsibilities and expectations should be shared and echoed in the following ways, much like when an employee starts a new job:

  • In the board member application: Ensure potential board members know the full expectations and requirements, before joining the board.
  • In the board member job description: This tool not only sets expectations, but it can also be used as an accountability tool for board members
  • At board orientation: Just like an orientation for a new job, board orientation should include discussion about roles and responsibilities and include comprehensive training about the organization.
  • Through occasional board assessments: Organizations should consider conducting a board assessment every 2 to 3 years to measure current understandings and practices against set goals and best practices. Assessing the board can occur through electronic surveys or one-on-one interviews and may be conducted by a third party.

2. Board members don’t know why they are on the board.

We’re talking about two different whys here:

  • The why that fuels passion: This refers to the reason why each board member chooses your organization to invest his or her time. What is it about your organization’s mission, programs, and impact that inspires him or her to volunteer time and talents?
  • The why that fuels productivity: This refers to why the organization wants a specific individual to join the board. What specific skills or experiences of the individual will the organization be hoping to tap into that will best support and enhance the organization?

Determining these whys will help ensure your board is made up of the right people who are willing and excited to commit to your organization. Understanding why 1) someone wants to join the board and 2) why you want that person on the board requires intentionality and can be identified in different ways:

  • Utilize a board matrix: Use this tool to capture a snapshot of current board skills, demographics, experiences, etc. that are determined as a priority for the organization. Doing this will allow you to determine what gaps exist on the board and should inform how you are recruiting board members.
  • Interview potential board members: Spend time getting to know potential board members by conducting a meet-and-greet with the executive director and board chair. Ask the potential board member why he or she is interested in joining the board and share exactly why the organization needs him or her.
  • Ask intentional questions in the board application: Asking questions like: “Why do you want to serve on this board?” and “What interests you most about our mission?” is an important step to determine if the relationship will be best for the organization.
  • Schedule check-ins with each board member:  Have one-on-one meetings with board members annually to ensure all board members have a positive experience and feel utilized and valued. This conversation can be led by the executive director, a board member or a third party.
  • Keep board members connected to the mission: Every single board meeting should include a mission moment that reminds board members why they are investing in the organization. At a minimum, mission moments should include sharing program impact data or stories, hearing from program staff, or even better, hearing from someone immediately affected by the organization’s work.

3. Your board members don’t feel like they have what they need to be a successful board member. We often assume that because board members are successful professionals, they will automatically be successful board members. What we need to remember is that board members need to be taught how to be good board members by explaining the roles and responsibilities and giving them the resources they need to be successful. The resources board members need parallel the types of resources employees need to do their jobs:

Education: Board members can benefit from being educated on specific topics that would support their role as a board member. As an example, every board member should fundraise for the organization, but not every board member knows how to fundraise. For fundraising education, take the time to teach board members how to talk about the organization within their network, identify potential donors and steward current donors.

Tools: Do members of the board have what they need to get their jobs done? Do they have talking points, like impact data and stories? Do they have brochures, hand-outs, or the executive director’s business card? Do they have easy access to policies and procedures that they are required to follow? Ask your board what resources they need during the annual check-ins or board assessments.

Support: It’s important to set-up a strong support network for board members that will foster strong inter-connection and accountability. Some organizations have implemented a “board-buddy” system, pairing up new board members with seasoned members for information sharing and connection.

4. Your board is bored. Board membership is a serious responsibility, but it should be a fun experience. If board members are not having fun in their volunteer position, why should they continue to enthusiastically invest? If your board seems a little down, consider these three strategies to boost the board.

Encourage socializing: Board members should get together outside of the boardroom at least once a year. We’re talking about a strict “no business” policy at these gatherings. Board members need opportunities to get to know each other on a personal level to build respect and comradery that will hopefully result in robust discussions in the boardroom. Don’t assume relationships will automatically build at the organization’s annual fundraising event. Be intentional in planning social gatherings and consider opportunities that will also include your board’s family members. 

Shower them with gratitude: We get so caught up in the roles and responsibilities of board membership, we can forget to take a step back and remember board membership is a volunteer position, and might be one of the biggest investments anyone is making to your organization. Those volunteer hours are critical and should be appreciated like any donor. Treat your board members like major donors and show them they are appreciated by sending handwritten thank you notes, celebrating their successes and publicly praising their hard work.

Experience the impact: Keep the board motivated by giving them plenty of opportunities to see the impact of their work directly. Opportunities look different for each organization, but could include; having special volunteer times for board members, shadowing program staff and connecting with clients. Build as many personal connections between the organization’s impact and the board as possible to boost the board’s motivation and inspiration.

An engaged board is the foundation of the organization, giving strength and supporting the overall health of the organization. When the board is effective, the programs can efficiently change the lives of those they serve. When the board is supportive, the organization has a better chance of being financially healthy. When the board partners with the executive director, the organization’s staff and volunteers feel valued and fully supported. When the board is active, more people know about the organization’s impact. Every nonprofit deserves an engaged board that will propel the organization’s mission forward. 

Kara Harrison has a passion for activating conversations, decisions, and actions that result in great governance. She believes that having an engaged board can be the most important strategy to an organization’s success. Harrison has been a consultant with Hedges since 2017. As a former executive director, she approaches board services and strategic planning with both real experience and best practices.

Aug 13

Two philanthropy alumni shed light on relationship building in their arena

By Sponsor Insight

By Abby Rolland, communications project manager, Lilly Family School of Philanthropy

Foundation giving represented about 18 percent of the estimated $427 billion Americans gave to charitable organizations in 2018, according to the Giving USA 2019 report recently released by Giving USA Foundation and the Indiana University Lilly Family School of Philanthropy. That is the largest share of total giving to come from foundations since 1954, the first year for which data is available. Giving by foundations increased by 7.3 percent (4.7 percent when adjusted for inflation) last year, growing to $75.86 billion – the highest dollar amount ever given, even after adjusting for inflation.

Rachel Hutchisson, chair of Giving Institute and vice president of corporate citizenship and philanthropy for Blackbaud said, “(This) highlights the importance of institutions to the philanthropic landscape, and serves as a reminder that different types of approaches to philanthropy are vital for strengthening and expanding the field.”

So how do nonprofits establish relationships with foundations, and what tips and ideas would assist them in fundraising from a foundation?

Two IU Lilly Family School of Philanthropy at IUPUI alumni working in philanthropy shed some light on the process of establishing and maintaining relationships with foundations.

While Vice President of Programs at the Nina Mason Pulliam Charitable Trust, Jeff Small has spent the past five years working on the grantmaking side of philanthropy, he didn’t begin his career in the foundation field. After serving for two years as an AmeriCorps member at Peace Learning Center and earning his master’s degree in philanthropic studies at the then-Center on Philanthropy, Small worked in a fundraising and program development role at the Boys & Girls Club of Indianapolis.

This experience, along with his subsequent work in neighborhood outreach, research, fundraising consulting, writing and grant management prepared him for his current role, where he oversees the programming team of the Trust in Indianapolis and Phoenix. His past and current experiences have taught him about the importance of seeing both sides of institutional fundraising and grantmaking.

For Small, fundraisers need to think in terms of relationships.

“We want to invest in organizations to increase impact. Nonprofits have ideas, expertise and access, which foundations need. Foundations have to give away money, so working with partners that provide boots-on-the-ground knowledge and work is necessary.”

Small also believes that foundations can do more to be transparent to nonprofits and potential grantees.

“At the Nina Mason Pulliam Charitable Trust, we try to be as open as possible. Our website lists deadlines and other information about the grant application process, as well as clearly defining our funding priorities and past grant decisions. We’re always happy to take phone calls with fundraisers interested in the Trust’s work to see if we would be a potential good match for funding.”

Cassandra Tice views fundraising from foundations from a different perspective. The grants officer for the IU Health Foundation also began her career in AmeriCorps, as a VISTA at Indiana Youth Institute, where she learned the basics of proposal writing and grants management. Her career led her to a development position at Jameson Camp and then a grant proposal writing position at The Children’s Museum of Indianapolis, during which she began taking classes at the Lilly Family School of Philanthropy.

Recently, she began working at the IU Health Foundation, which was established in 2018 to grow and expand philanthropic support for IU Health — to amplify its already impressive impact on individual and community health. Gifts help Hoosiers gain expanded access to the latest healthcare treatments and technologies.

Tice encourages fundraisers to learn about the environment and various roles of foundations in the community.

“Sit down and meet with your peers. Even if you don’t work at the same institution, it’s helpful to learn as much as you can about the environment you’re working in, as well as personal experiences with foundations whose missions may align with yours.

“Also, think about joining professional grantwriting and other philanthropy-focused organizations. It helps build your network and learn more about the field in a certain area as well.”

Both Small and Tice emphasized that both foundations and nonprofits share a common goal: they are seeking to make a difference.

“We rely on smart, dedicated, nonprofits to use Trust money to better the world,” Small explained.

Tice added, “Never be afraid to ask questions – we’re all working to build a better community and better world.”

Small’s advice for fundraisers

  • Reorient your thinking.

“Nonprofits have something foundations need. Understand going into a conversation that it’s a dialogue of equals.”

  • On that note, think of yourself as an equal.

“When you’re engaging with foundations, consider yourself an equal. You’re offering the foundation an opportunity to engage with you and make a difference in this space.”

  • Don’t chase dollars.

“Chasing dollars can result in adapting your mission or goals to fit with the foundation’s, which may lead to mission drift or not trusting the programming that you already have.”  

  • Focus on the relationship.

“We want to enter into authentic, long-term relationships with smart, dedicated, strategic nonprofits where we can tap into their skills and scale up great ideas.”

Tice’s advice for fundraisers

  • Be as professional as possible.

“Even if foundations operate in a more relaxed environment, it’s important to maintain professionalism with them, whether you’re first establishing a relationship with them or trying to even out a real or perceived power imbalance.”  

  • Utilize your connections.

“If you have no prior relationship with a foundation, find someone on your staff or board who may have a connection in some way. A personal approach, rather than a cold call, may open the door for you more easily.”

  • Be aware of current trends or practices in the field.

“Be aware of online applications, their due dates, how the application is structured, etc. Even if you apply for a grant from the same foundation year after year, you never know when or how they may change the structure of accepting applications.”

  • Focus on the relationship.

“Communicating with foundations effectively and building those relationships is incredibly important in this field.”

Want to learn more about how to establish relationships with and fundraise from foundations? Check out The Fund Raising School’s webinar “Advice from the Funders,” featuring Small and program officer Jenna Wachtmann of the Ball Brothers Foundation.

Abby Rolland serves as the communications project manager at the Lilly Family School of Philanthropy, and is also working towards a master’s degree in philanthropic studies. She holds a bachelor’s degree in history from Gettysburg College.

Aug 05

Getting your retirement account compliant: A burden and a blessing

By Sponsor Insight

By Kevin Kidwell, vice president national tax-exempt sales, OneAmerica®

If your organization offers a 403 (b) retirement plan, then you may have already received — or should be receiving — a notice from your plan provider regarding a new Internal Revenue Service (IRS) document requirement.

For the first time, the IRS has pre-approved prototype plan documents for your type of retirement plans, typically sponsored by 501(c)(3) nonprofit organizations. This IRS plan restatement requirement is happening now as a long-overdue need to mesh plans with operations. The IRS’ goal is simple — to get a certified, model blueprint similar to what protects 401(k) plans and has been available to 401(k) plans for decades. It doesn’t mean if you have a 403(b) plan that your plan is changing or was poorly planned; it just means there will be guardrails.

But time is limited. Retirement plan sponsors have until March 31, 2020 to adopt plan amendments and self-correct their organization’s retirement plan provisions that violate the Internal Revenue Code (IRC) Section 403(b) written plan rules. (You might ask about how many violations there are. When we take over a plan, we typically put them on our document.  During the review process with these new clients we typically see that most (more than 50%) have some sort of compliance issue.  Based on this experience we would expect the same percentage of plans to discover issues as they work through this required restatement.)

As an employer, it’s likely gratifying for you to look out for the welfare of your employees, particularly when it comes to helping them build a retirement. Less enjoyable though may be the administration and compliance of your nonprofit’s retirement plan. As an employer, you have responsibility, however, to work to address the IRS and Department of Labor requirements. It’ll also get you ahead in case of any unexpected audits. Additionally, from a talent recruitment perspective, we think it’ll set you apart as a more desirable company to work for.

Recently I spoke about all these issues as part of a 403(b) panel held at a national industry conference. The panel’s purpose was for attendees, many of whom run or work for organizations like yours, to review and pick panelists’ brains for information and suggestions on how to best deal with the 403 (b) plan remedial amendment period due dates, individually designed plans, and what it means to you all as a plan sponsor.

As I told that group, some employers just don’t have the time to work with their hired advisor. They’re incredibly thin in terms of their human resources staff. But during this remedial amendment period, or restatement period, understanding how your plan is operating, versus how the plan was written and designed, is a required conversation.

Let me give you an example. I was talking with an executive with a large health care organization about the things they go through. She politely didn’t admit that its retirement plan had issues. However, if you don’t have issues, my guess is you haven’t really paid close enough attention to your document or plan.

Most of these plans have some issues. What you’re DOING must match up with your written plan, and in many cases over time, actual practice has strayed from the original draft.  Most plans have some sort of defect they need to clean up.

Here are some examples, borne out of OneAmerica’s experience:

  • Your plan document says you’re going to make a 5 percent employer contribution, but you’ve only been investing 4%. Seems simple, but failure to make correct contributions is a common or repeat issue. And if it has happened to an individual worker, it’s likely happened to others in the workforce.
  • Despite it being a requirement, there is often no effective notice provided to employees that they are eligible to defer part of their salary to invest in an organization-sponsored retirement plan.
  • There is a provision under 403(b) that says if an employee expects to work less than 20 hours a week, he or she can be excluded. However, the challenge is if they go over 1,000 hours annually, the HR professional needs to provide notice of eligibility to the worker. However, that required communication rarely occurs.
  • We have seen nonprofits that fail to file its 990, and it lost its 501(c)(3) status. So, it now maintains a plan that it’s ineligible for.

If you receive a restated plan document that says ‘please sign here’ and return it, that may not be sufficient. 

It takes us on average about 15 hours to work through just the conversations about ‘Here’s what’s your current plan documents say, explain how you’re operating your plan today. Explain to any changes you would like to make.’

For us steeped in these plans, if it takes15 hours, my guess is that you’re going to have at least that much, if not more time, involved in the process.

There’s a lot of behind the scenes operational and compliance detail that you may not be aware of, but you should be concerned about. That gets back to how you want to operate your plan, versus the way you are operating your plan. Additionally, everyone who ‘touches’ the plan needs to be included, from the HR representative to the payroll department. They need to read the document, talk through the plan provisions, and most importantly, know what it means and how to properly operate the plan.

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

What can we answer for you?

About the companies of OneAmerica: Tax-exempt retirement plans have been in our DNA since 1964. Of 26 tax-exempt providers profiled in the 2018 PLANSPONSOR 403(b) Buyers Guide in terms of plans served by industry, OneAmerica nationally ranked:

  • 1st in social and community service organizations
  • 4th in charitable organizations
  • 6th in religious organizations
  • 6th in hospital/healthcare

OneAmerica® is the marketing name for the companies of OneAmerica.

Products issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company. Administrative and recordkeeping services provided by McCready and Keene, Inc. or OneAmerica Retirement Services LLC, companies of OneAmerica which are not broker/dealers or investment advisors. Provided content is for overview and informational purposes only and is not intended as tax, legal, fiduciary, or investment advice. • Registered Representative of and securities offered through OneAmerica Securities, Inc., a Registered Investment Advisor, Member FINRA, SIPC.

Jun 10

Executive education helps organizations invest in employees through MPA program

By Sponsor Insight

By Leslie Wells, associate director of communication, O’Neill School at IUPUI

In late April, 14 employees of the Crane Naval Surface Warfare Center received their Executive Master of Public Affairs degrees from Indiana University Executive Education at the O’Neill School. These graduates spent more than two years working toward this goal and are the latest in a long line of Crane employees to earn their degree through this unique program. 

What makes this path to an advanced degree so different from many others?

“The leadership of Executive Education at O’Neill is very customer focused,” says Angie Lewis, corporate operations department director at Crane. “They want to understand what’s going on within our environment. They’ve been willing to adapt certain parts of the lessons, update, and transform portions of their curriculum to stay current with our challenges and needs. That makes this program especially valuable.”

The Executive Public Management Certificate (EPMC) and EMPA programs are Crane’s largest and longest-lasting investment in employee education. Crane covers all costs of the program for employees and has done so for the past 20 years.

The application process is competitive. Selected employees must first earn their EPMC before they can apply for the EMPA program. Besides the 14 EMPA graduates, 24 Crane employees also earned their EMPC in April.

Participants who complete the 39-credit hour EMPA travel to Indianapolis 12 times during the full program’s three years for week-long courses and to Washington, D.C., for one week of class. Faculty members walk students through topics relating to economics, public policy and analysis, HR policies, and more. [WL1] [Office2] In between each week-long class, these Crane employees develop projects and presentations to prepare for the next round.

For Crane’s courses, each class is geared toward the specific needs of the company’s employees. Each cohort includes participants from various departments across Crane, a strategic decision Lewis says creates lasting relationships.

“People who work in engineering, production, and technology are in class with people who are responsible for regulatory compliance and oversight,” she says. “When you build strong cohorts of people who know how to work across boundaries, they can accomplish projects more efficiently and effectively, despite the natural tensions between their roles.”

John Kleihege, a Crane supervisory engineer who received his EMPA in April, says the courses teach students to speak a common leadership language while broadening their view of their world and their work.

“It exposes you to areas that you don’t functionally work in,” Kleihege says. “That makes you a well-rounded employee and makes it so that when you see public policy shaped, you understand the process and how to communicate about it to others.”

Communication is a key part of the program. The courses prepare students to understand and explain public policy shifts in the context of what matters most to their management teams.

“You can go to a four-year school and learn how to run a business, about bureaucracies and nonprofits, or government- and public-sector roles, but this program educates our employees about the larger system in which they work,” Lewis says.

For Crane, that larger system includes multiple U.S. Navy bases, command centers, and other units around the country. Craig Barton received his EMPA in April after leaving the Indiana-based Crane in 2017 to head to its parent command, Naval Sea Systems Command (NAVSEA) headquarters in Washington, D.C.

Barton decided to continue with his Crane cohort and cover the cost of the remaining courses himself. That decision paid off. He says the program played a direct role in landing his current position as director of contracts for the U.S. Naval Research Laboratory.

“I give almost absolute credit to the IU Executive Education MPA program for my current job,” he says. “The capstone class occurred the week before my interview. It was essentially a weeklong interview prep that helped me tie everything together. I’m very grateful to the EMPA program.”   

While the content in Crane’s EMPA course may be specific to its needs, the Executive Education team can adapt the case studies and group projects to work for other organizations, even those in other sectors. That’s because — at its core — the program focuses on teaching students to be better leaders, no matter where they work.

“The learnings transcend Crane,” Barton adds. “What you learn applies no matter where you go. It teaches you that leadership is leadership. There is no magic:  It’s simply gaining the necessary tools, learning the appropriate contexts in which to apply those tools and then executing.”

Employers interested in exploring their own Executive MPA cohort in Indianapolis or own their site can learn more about the program at the O’Neill School website, or contact Executive Education Director Sara Johnson.

Leslie Wells is the assistant director of communications at the O’Neill School of Public and Environmental Affairs at IUPUI. She joined the O’Neill School at IUPUI in 2018 after three years in nonprofit media relations and a decade in broadcast news.

Jun 03

Community investment sparks creativity

By Sponsor Insight

By Jennifer Pittman, senior director of community affairs, OneAmerica  

Springtime is a season of creative renewal. Early-season rain showers give way to colorful blooms and flowering trees. Then in mid-May in Indy, springtime pops in unexpected ways as hundreds of local artists present their work at the annual OneAmerica® Broad Ripple Art Fair (BRAF).   

The event has become a favorite annual tradition for many of the 1,400 Indianapolis-area OneAmerica® associates, who love to volunteer and soak up inspiration that lasts long after the last artist booth is packed up for the year. 

In 2018, BRAF lit a creative spark with some OneAmerica associates, who asked, “What if we didn’t have to wait a full year for this kind of artistic inspiration? Could we find a way to sprinkle a little bit of this magic throughout the other 11 months?”  

Through our strong relationship with the Indianapolis Art Center and OneAmerica leaders who enthusiastically support creative community connections, the short answer was, “YES!”  

At the time, a floor of the OneAmerica Tower downtown was undergoing significant renovations to create a vibrant, versatile OneAmerica conference center – a space for associates to brainstorm and collaborate, but also to showcase our building and culture with financial professionals and visitors from our community and beyond.  What better place to create our own mini-BRAF year-round?  

In April, the conference center became home to a rotating exhibit of two-dimensional art, curated in collaboration with the Indianapolis Art Center. Four times a year, we select a new mix of work from local artists. Artists whose work is featured receive an honorarium for each piece displayed and the opportunity to offer those pieces for sale. And our associates draw inspiration from the space, especially during cold winter months when we’re eagerly awaiting the first signs of spring…and BRAF!

By the time the 2019 edition of the OneAmerica Broad Ripple Art Fair had occurred (May 18-19) we had truly come full circle.

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

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

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

At OneAmerica, we’re firm believers that strong community partnerships require 360 degrees of connection between community organizations, the people they serve, and our associates. The new OneAmerica conference center rotating exhibit is just one more shining, creative example of this philosophy in action.   

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

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