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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 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.”

Feb 15

7 key considerations for analyzing the impact of COVID-19 on nonprofit financial reporting

By Sponsor Insight

by Sarah Gregory, CPA, CFE, director, Alerding CPA Group

With COVID-19 having an unprecedented impact on the operations of nonprofit organizations, it’s critical, as a nonprofit leader, financial/accounting professional, auditor or board member, to consider the impact it may have on your year-end financial reporting for 2020.

As your team closes out its financial records for 2020, make sure you take into account the following key accounting and auditing considerations prior to your financial reporting engagement:

  1. Determine options for remote auditing. While access to records may be limited, auditors will still need to gain access to certain records. Ensure that your financial team takes the necessary steps to accommodate remote auditing. Prepare for this type of engagement by reviewing various remote options beforehand.
  2. Assess existing internal controls and segregation of duties over financial reporting. It’s likely they may have been impacted during the year due to staff absences or reductions.
  3. Analyze your organization’s risk for fraud. Your vulnerability to fraud risk may be heightened as a result of the current environment for added incentive or pressure to perpetrate fraud, opportunity to commit fraud, and rationalization to justify a fraudulent action. Examples of risks could include:
  • Fictious revenue – creating incentives and opportunities to record revenue that is fictious. An example could be an individual who inflates their sales since their compensation is directly tied to meeting sales targets.
  • Improper timing of revenue and expenses – improperly recording revenue and/or expenses in a period in which the revenue was not earned or delaying the expense to a later period in which the services were not performed.
  • Federal relief program applications – increased pressure to apply for Paycheck Protection Program funds, including forgiveness due to economic downturn.

4. Prepare for variances in auditing inventory. With COVID-19 disrupting operations, inventory observations may need to be postponed, conducted remotely or performed under different circumstances than prior years.

5. Account for additional disclosures. Be prepared to account for significant financial impacts related to COVID-19. They may require you to include additional disclosures within your financial statements and potential evaluation of going concern issues related to the organizations ability to continue indefinitely and being profitable.

6. Account for delayed ASU. Accounting Standard Update (ASU) 2020-05, Revenue from Contacts with Customers (Topic 606) and Leases (Topic 842): Effective Date for Certain Entities, allowed organizations to delay the effective date these ASU’s for one year. If your organization did not early adopt as of your most recent fiscal year end, you will be required to adopt these ASU 2014-09, Revenue from Contracts with Customers (Topic 606) in the current year. ASU 2016-02, Leases (Topic 842) will be effective for fiscal years beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022.

7. Identify delayed payments and waived fees. If your organization received relief from creditors and lessors in the form of delayed payments, waived fees, or adjusted amortization schedules, you will need to ensure you are correctly accounting for these modifications or extinguishment of liabilities.

The impact of COVID-19 will continue to be felt for years to come. As you close out your financial records and prepare for your financial reporting services, make sure you include these considerations as part of your process.

Oct 05

COVID-19 forces more than 40 percent of Central Indiana nonprofits to reconsider facility needs, and some to implement new delivery models, according to CA survey

By Feature

by Shari Finnell, editor, Not-for-Profit News

After more than seven months of operating under restrictions caused by COVID-19, most nonprofit organizations have made adjustments in programming and/or office operations,  with some permanently changing their service models with the aid of technology, according to an informal survey by Charitable Advisors.

For some, the new normal has revealed inadequacies in employees’ ability to deliver services from home. However, others noted some positive outcomes.

“Now we understand we can work successfully from home,” one survey respondent said. “The silver lining is that we all gained better technological skills. Plus, we adapted by recruiting, training, and working with volunteers all through virtual means — remarkable.” With that significant shift, the survey respondent said that the team plans to reduce its lease footprint in the future.

Another survey respondent questioned the need for a facility if social distancing continued to be a requirement for the foreseeable future. “Our current space is not set up for social distancing,” the respondent said. “Do we need a physical location at all?”

However, a significant number indicated that they will continue to need their facilities to deliver services.

Of 59 nonprofit representatives who responded to the survey, which was conducted in August 2020 …

  • more than 30% said that everyone was working from home;
  • nearly 38% said programs are being delivered virtually;
  • slightly more than 12% said programs have been suspended;
  • more than 44% continue to deliver in-person services;
  • more than 40% reported that they are now reconsidering their facility needs;
  • and more than 50% say they do not anticipate any change in facilities post-COVID.

Numerous organizations also reported that their team has become more innovative about facility usage in an effort to maintain social distancing as outlined under COVID-19 guidelines from the Centers for Disease Control and Prevention.

For example, a survey respondent reported, employees at their nonprofit work as part of a staggered shift pattern to maintain social distancing in facility environments that do not allow for those regulations to be met at full capacity. “Everyone is working from home but they may come in on designated days to limit the number of people in the office,” the respondent said. Another said that their nonprofit is now open only two days a week instead of five days a week.

Also, a significant number of respondents said they are safely providing in-person services by implementing adaptations and restrictions. Some of the nonprofits that provide essential services, including medical care, haven’t stopped delivering services. However, they are operating under different guidelines.. “We are currently pre-screening patients by phone and scheduling appointments, instead of our walk-in hours,” a respondent said. “We may continue a hybrid version of this protocol in future months.”

Another respondent said their team adapted for social distancing but have no plans to change their use of their facilities in the future. “Our work really requires human interaction. Virtual is a poor substitute.”

Several respondents said the pandemic also initiated their thinking about creating a remote workforce. “We plan to shrink our office footprint, but that was planned for 2021 anyway; not directly because of the pandemic,” a survey respondent said. “In response to the pandemic, we would shrink now if we could without a lease penalty.”

Sep 08

Local Nonprofits and Businesses Reap the Benefits of Committed Partnerships

By Feature

by Shari Finnell, editor, Not-for-Profit News

Even in the best of times, nonprofits can find it challenging to boost visibility, gain more donors and raise funds. Success often demands a complex mix of strategies, including annual fundraisers, email campaigns, and social media marketing, executed over an extended period of time.

Partnerships with businesses are proving to be a critical component in filling those gaps, according to several local nonprofits. These partnerships appear to be evolving in recent years, as businesses explore more ways to support nonprofits beyond matching gifts, sponsorships and annual fundraising campaigns.

Williams Comfort Air, a business that specializes in HVAC and plumbing, not only contributes to nonprofits with matching gift campaigns; it invests in marketing campaigns on their behalf. As part of its partnership with Outreach, Inc., which serves homeless youth, Williams Comfort Air hired professional production crews to develop radio spots and video productions and promoted the nonprofit’s story to larger audiences. 

First Person Advisors, a benefits and compensation advisory firm, recently established a foundation in partnership with Central Indiana Community Foundation (CICF) and Selflessly. The foundation will be funded through one percent of the company’s annual revenues, as well as matching of individual employee’s gifts of up to $1,000 a year each.

In keeping with a volunteerism tradition started in 2014, OneAmerica, this week, launched its Week of Caring at a time when volunteerism is significantly down due to the COVID-19 pandemic. While the volunteer efforts may look different due to social distancing requirements, OneAmerica associates are finding creative ways to donate their time, including hosting storytelling sessions for underprivileged youth and assisting with letter writing campaigns. 

The virtual format of Week of Caring also allowed associates to reach an unprecedented number of nonprofits.

“This is as hands-on as it can safely be, with associates creatively using the resources we have and maximizing technology, talent and teamwork,” said Jennifer Pittman, vice president, enterprise communications and community affairs at OneAmerica. “Nonprofit organizations need our help now more than ever, and while giving back may look different in 2020, we remain committed to our community volunteerism.” 

Business partnerships that extend beyond annual donations can have a significant impact, according to several local nonprofits.

“A lot of times businesses underestimate their influence,” said Jason Chenowith, CEO of Outreach, one of the nonprofits William Comfort Air has supported annually. “Helping us get in front of people who don’t know us is equally important as the donations we receive. As a nonprofit, you always need to get your name in front of new people. It’s an endless cycle as you try to get people exposed to what you do.”

The campaigns sponsored by Williams Comfort Air continue to open doors — long after they were first launched, Chenowith said. 

“There are times when I will introduce myself to people and they already know the name of Outreach. You can’t quantify the value and benefit of that,” he said. “We are very, very grateful for major donors but that’s not what keeps us alive. It’s an army of people who give $25 or $50 on a regular basis. When a business leverages its social power, it can make a big difference. It allows us to build relationships among individuals.”

Heather Parker, director of development communication for The Julian Center, another nonprofit supported by Williams Comfort Air, said a committed business sponsorship is critical for numerous reasons. 

“When employers are willing to reach out to their employees on their own behalf it exposes us to donors we normally wouldn’t have,” Parker said. “Secondly, nonprofits are able to tap into sizable amounts of money that are unrestricted. It gives the agency more flexibility to cover things they might not have otherwise. That’s a great benefit.”

Matt Tyner, director of marketing for Williams Comfort Air, said that the company seeks to get a better understanding of a charity because they want to share how donations are making an impact. 

“We want to see them come to life,” he said. “A lot of companies are hesitant to promote their community giving, thinking it may come across as not being humble. It should be considered an opportunity to engage their donor bases. As a result of hearing those stories, some donors decide to become annual givers.”

After listening to the charities they serve, Williams Comfort Air also launched summer giving campaigns to offset revenue shortfalls during a slow fundraising period for many organizations. “There’s a lot of giving at the end of the year and at the beginning of the year,” Tyner said. “That’s why we put a significant amount of our giving into the summer months. We want to be a bit of a bridge during the periods where there’s less giving.”

When the pandemic hit, the financial support from Williams Comfort Air helped nonprofits continue to serve their communities at a critical time, he said.

Taking more creative approaches to business-nonprofit partnerships not only benefit nonprofit agencies, said Mark Minner, president and chief strategy officer for First Person Advisors. Developing avenues for employees to support nonprofits can impact morale and foster a sense of fulfillment as part of their employment with a company.. 

“From our experience, that’s just how people are wired. Giving back is really important in their lives and they expect their employer to have that same type of commitment.” Minner said. “As an employer, we have a unique opportunity and role to facilitate opportunities to make their dollars go further faster … to make more of an impact,”

First Person Advisors had already committed to developing a foundation before the global pandemic reached Indianapolis. Working in partnership with CICF and Selflessly, the advisory firm decided to accelerate the launch of the foundation as needs in the community grow.

Minner said other businesses interested in developing a deeper commitment to nonprofits can start with matching programs, if they don’t already have one in place. Establishing a foundation can take significantly more effort, but the impact is so much greater than the time to set it up, he said.

“It really has a significant return in terms of the level of connectivity people feel to the organization,” Minner said. “We can help employees make a difference. It’s great to hear stories from our employees about how appreciative they are to be able to help people.”

Aug 24

State of Indiana’s Nonprofits: Survey Reveals How Organizations Are Coping in 2020

By Feature

by Shari Finnell, editor, Charitable Advisors

Nearly six months have passed since the first case of COVID-19 was reported in Indiana. Since that time, the majority of the state’s nonprofits have faced significant challenges in maintaining services to support their missions, according to Indiana Nonprofits and COVID-19: Impact on Services, Finances and Staffing, a new report released by the Indiana United Ways and the Indiana Nonprofit Sector Project.

Of the 512 nonprofit organizations responding to a survey, 71 percent reported major revenue shortfalls since March 1 due to the pandemic; 60  percent reported suspending or ending programs; 67 percent cancelled a fundraising event; and 23 percent had laid off or furloughed staff. While the percentage of nonprofits reporting staff layoffs and furloughs was relatively low compared to other metrics, 43 percent reported greater demands on existing staff because of an absence of volunteers.

Report co-author Kirsten Grønbjerg, director of the Indiana Nonprofit Sector Project, Distinguished Professor at O’Neill School of Public and Environmental Affairs at Indiana University Bloomington, said the results were surprising because of the extent of the impact across a significant number of nonprofits. “I don’t think we have ever seen this kind of widespread impact before,” Grønbjerg said. “It’s drastic and intense.”

With previous economic downturns, Grønbjerg said, a portion of nonprofit organizations may  have been impacted because of declining revenue. However, the COVID-19 pandemic has left few nonprofits spared, except those that provide essential services.

“Our findings point to an increased need for services that the pandemic itself created. I think the safety net nonprofits play for the community took a beating. How well they’re going to recover is the big question,” she said. “The CARES Act has been an important component in allowing them to continue to operate.” About half of the nonprofit organizations surveyed received loans under the Payroll Protection Plan under the CARES Act.

Kathryn Habecker, co-author of the report and impact and advocacy manager at Indiana United Ways, said that a significant number of Hoosiers were struggling even before the pandemic hit. New data on Indiana ALICE (Asset Limited, Income Constrained, Employed) families show that “more than one-third of Indiana households faced significant economic hardship well before the pandemic hit. Many already were just a paycheck, car repair, or medical bill away from disaster,” she said. “Unfortunately, many more have joined their ranks over the last three months.”

While the report detailed the extensive impact COVID-19 has had on nonprofits, it also revealed how organizations are implementing creative strategies as a way to continue to support the growing needs of residents impacted by the pandemic, Grønbjerg said.

Statewide, collaborations have been developed among nonprofits, United Way, foundations, local and state government officials, schools, chambers of commerce, hospitals, universities and major employers to determine how to best meet of the community, said Grønbjerg, citing a COVID-19 coalition that meets twice a week in Bloomington.

In the coming months, Grønbjerg said, these types of collaborations will become more essential since nonprofits play such a critical role in the community, especially during a time when eviction and utility shutoff moratoriums have started to expire.  

“We view these developments as silver linings on otherwise very dark clouds. If nurtured and sustained over time, these collaborative efforts may provide the basis for stronger communities with better safety nets going forward,” Grønbjerg said.

Aug 17

NFPN Perspectives: 20 Years of Supporting Central Indiana’s Nonprofit Community

By Feature, Uncategorized

By Shari Finnell, writer/editor Charitable Advisors

When Bryan Orander launched Not-for-Profit News in 2001, the internet had not yet reached its saturation point; only 52 percent of American adults reported using it at the time, according to the Pew Research Center. And Orander considered the e-newsletter as nothing more than a project to keep him busy while starting his consulting business, perhaps a tool that would help a few people find jobs, he recently said.

As NFPN celebrates its 20th anniversary year as an online weekly publication with more than 14,000 subscribers, Orander reflected on how the nonprofit sector of Central Indiana has navigated various changes during that period, including internet saturation, the economic recession of 2008, technology advances, evolving giving patterns, and, currently, the impact of a global pandemic and unprecedented racial equity protests.

Orander, founder and President of Charitable Advisors, a consulting firm, said no other period in the past 20 years fully matches the challenges faced by nonprofits today, but there were similarities during the economic downturn of 2008.

“From our vantage point — from 2008 to 2010, we saw job ads drop off, donations being directed to basic needs and away from the arts and the environment,” he said. “We’re now seeing a lot of the same things. Right now, at least, COVID-19 relief funds are being directed to human services and basic needs. That makes sense.”

Studies reveal that many nonprofits weathered the 2008 recession fairly well, Orander said, which gives him reason to hope that many of them will survive the current turbulent period. Here are some of Orander’s perspectives on the trends that continue to shape the nonprofit sector in Central Indiana.

Increasing dominance of the larger nonprofit: Orander said some of the same patterns that have dominated the B2B sector, including the decline of small businesses, seem to be playing out in the nonprofit sector.

“Looking at the bigger picture over the past 20 years, it appears that the nonprofit sector has evolved with more clearly defined, substantial nonprofits. It’s almost a case of the-haves and the have-nots,” he said. “The organizations that are able to hire the best people, invest in advanced technology and implement the best techniques are getting better and better at raising money and attracting donors. Meanwhile, a lot of other nonprofits are being left behind. And that gap is getting bigger.”

Changing profile of donors: Citing a 2019 report published by the Indiana University Lilly Family School of Philanthropy at IUPUI, Orander noted that the number of people donating has decreased from two-thirds of U.S. households in 2000 to slightly over half in 2016. “While overall charitable donations continue to slowly increase, the number of people donating is decreasing. We have a donating class and the rest,” he said. “People with less means are giving less, while people of means are taking over a bigger share of the giving.”

While overall giving hasn’t declined, Orander said, nonprofits need to be more strategic about how to target wealthier donors. “You have to be sophisticated at soliciting donations, and that seems to leave smaller nonprofits in a tough position because most have not developed major donors.”

Models of charitable giving are evolving: During the past 20 years, Orander also has noticed changes in the giving model — with some donors moving from a focus on organizations that align with their values to a model that generally focuses on a donor’s loyalty to a cause. “There are continuing studies on this, but it appears that charity and cause in terms of giving are viewed differently among different generations,” Orander said.

For example, he said, younger people are more likely to be loyal to a cause, such as environmental concerns, while older people tend to support nonprofit organizations that align with their passions and beliefs. Since younger generations may be more passionate about a specific cause, they may decide to give through an engaging online campaign or work for a for-profit employer that is dedicated to their cause.

Crowdfunding also has changed the charitable giving model, Orander said. “There are so many ways that people can give online; there’s now a fuzziness between charity and giving. A lot of people don’t discern the difference between giving to a food bank or to a worthy person through an on-line crowdfunding platform.”

Businesses competing with nonprofits for new hires: As a professional recruiter, Orander also has some perspectives about how hiring trends are impacting nonprofits’ ability to compete for talent.

“A positive trend is that the younger generation wants to be involved in a worthy cause. They want to make a difference, so they would traditionally be more likely attracted to nonprofits,” Orander said. “However, for-profit businesses have realized that their prospective employees want to be part of a making a difference, so they often affiliate themselves with a cause.”

Socially responsible companies have become so mainstream, that “the lines are kind of blurry between working at a nonprofit with a cause or a for-profit that has a cause,” Orander said. “Employees may determine that, either way, it’s possible for you to make a positive difference. But with some employers, you can make more money and still make a difference.”

Impact of starting a new nonprofit: While it’s not impossible, it is much more difficult to start a nonprofit with real impact than it was 20 years — even without the challenges presented by the COVID-19 pandemic, Orander said. “It may not be difficult to create one, but it’s harder and harder to rally the people and the resources to do anything with it,” he said. Many new nonprofits are created in response to a personal or family tragedy or loss and not because the community doesn’t already offer those services, Orander has observed.

The Future: As Orander looks forward to continuing NFPN’s role in the Central Indiana nonprofit sector, he foresees developing more opportunities to connect people, organizations and resources, with a focus on informing and inspiring through the news and stories it delivers.

“When we first surpassed 10,000 subscribers, I knew we were really helping to connect and inform people in the local nonprofit community. We had become the go-to place for jobs and news,” Orander said. “It felt like we were making a difference. I feel the same way now. It’s been an interesting and humbling experience.”

Aug 10

COVID-19 leads to unprecedented response in support of Indiana’s most vulnerable

By Feature

by Shari Finnell, Editor, Charitable Advisors

Nonprofit organizations on the frontlines of supporting immigrants, refugees and other foreign-born residents have been regularly encountering challenges to ensure critical, sometimes life-saving, information is adequately relayed during the COVID-19 pandemic.

In addition to language barriers, these individuals are more likely to be employed in jobs that put them at higher risk for infection, are denied unemployment benefits, lack health insurance, and have fears about accessing medical care and resources — all factors that jeopardize their ability to navigate the pandemic, according to several local nonprofit organizations.

“Those of us who are fluent in English are struggling everyday to understand COVID-19,” said Dana Harrison, interim executive director of the Immigrant Welcome Center. “‘What did the governor say? What is going on with schools?’ It’s changing daily.” For foreign-born newcomers, those COVID-19 directives — from stay-at-home orders to how to protect themselves from the virus — can be extremely difficult to understand, Harrison said.

Rethinking the ceiling for grantmaking in a time of crisis

During the past 18 years, board members of The Clowes Fund have been invested in understanding the challenges facing immigrants and refugees as they shifted their focus to supporting those populations and workforce development initiatives.

When the pandemic hit the U.S., a subcommittee of Fund board members and staff immediately gathered to determine how it could best meet needs in the community. Realizing they didn’t have the resources of larger foundations, The Fund was intent on making a significant impact through a more concentrated effort.

“We used to be one of the largest foundations in Indianapolis,” said Elizabeth A. Casselman, executive director of The Clowes Fund, Inc. “That’s no longer the case. We work hard to find our lane. We were looking to find the gaps and then identifying the organizations that were working to fill those gaps.” The result was a plan to distribute unsolicited funds to current grantees, allow for more flexibility with an unrestricted grant format, and focus on program areas with the highest needs, including immigrant services and workforce development.

Just a few weeks later, the Fund awarded 21 small emergency grants totaling $220,000 to numerous organizations, including Gleaners Food Bank of Indiana, the Undocumented Hoosiers Fund of the Indiana Undocumented Youth Alliance, administered by Broadway United Methodist Church, and other organizations that serve populations who may not be eligible for other types of relief funding.

The unexpected grants came as a welcome surprise for many of the organizations that received them — giving them the support to continue their mission in the midst of an uncertain and turbulent period.

However, the extent of the damage caused by the pandemic weighed heavily on the board members, who started questioning if they had done enough, Casselman said. “There was a strong sentiment among Clowes family members and non-family members that it does no good to sit on these assets when there’s such a great need. We were worried we would look back and say we took too safe of a position.”

They were already familiar with the math that guided decisions throughout the foundation’s 68-year history — across four generations of the Clowes family. “With a foundation, the only legal requirement is that we must distribute at least 5 percent each year,” said Casselman, referring to the value of net investment assets. “Yet, all too often it begins to be interpreted as the ceiling rather than the floor.”

From a strictly financial standpoint, a conservative approach — the 5 percent floor/ceiling — also would have been the most responsible decision for ensuring that the foundation exists into perpetuity, continuing to support the intent of the founders’ mission, Casselman said.

“If you have several years of 6 to 7 percent, you can pretty quickly erode your funds,” Casselman added. “We realized those policies served us well in the long run. But these are exceptional times. And exceptional times demand an exception response.”

As a result of that strong sentiment among the board, including family and non-family members, the Fund doubled its grantmaking commitment by spending an additional 5 percent more than its typical grantmaking through a $3.2 million draw from the corpus of its endowment in 2020. Through The Clowes Fund COVID-19 Plan, the board approved spending an additional $2 million in grantmaking for 2020 and reserved $1.2 million to supplement grantmaking in 2021.

“Failure to respond in an exceptional manner would likely cause the Fund board and staff to look back with regret,” said Edith Bowles, Clowes Fund vice president. Bowles said they believed it is possible to make an unprecedented decision without damaging the long-term fiscal health of the foundation.

Meeting needs in challenging times

As with its previous response, the Fund quickly distributed unsolicited and unrestricted grants in July — in amounts ranging from $50,000 to Exodus Refugee Immigration, Inc., to $150,000 to Local Initiatives Support Corporation (LISC) for a comprehensive set of loans for minority-owned businesses. Median grant size was $40,000, significantly higher than Clowes Fund grants awarded in previous years.

Harrison of the Immigrant Welcome Center, as well as those of other organizations supporting the immigrant, foreign-born and refugee population of Indiana, were immediately met with challenges in the midst of the pandemic. “The challenges were always there … language barriers, higher risks of infection, an inability to qualify for government resources, lack of health insurance,” Harrison said. “They intensified with the pandemic.”

Every day, the Center intervenes on behalf of immigrants, ensuring that they’re getting access to food pantries, and unemployment benefits, rental assistance and healthcare they’re entitled to but are afraid to access.

Language barriers are especially problematic in a state with inadequate language translation options.

“When the government first issued stay at home orders, some families would not open their front doors or leave their homes, endangering their lives because they were critically low on food,” Harrison said. “In their world, when the government says stay at home, they stay at home.”

Immigration status concerns also instill fear among individuals who are undocumented, Harrison said. With the public charge rule, there is also widespread concern that applying for social benefits could jeopardize any chance of being granted legal permanent resident status, Harrison pointed out. “It’s been very successful in putting absolute terror in our immigrant population,” she said.

The Clowes Fund grant, along with other grants from other foundations, came at a critical time, Harrison said.

“The size of the grant we received from the Clowes Fund gave us some critical breathing room — the freedom to keep on some temporary staff members on a more permanent basis. We did not have to operate in financial fear,” Harrison said. “We were absolutely stunned. It helped transform our year.

“If we had not received that money there would have been the prospect of very hard decisions on the horizon, including reducing positions to part time,” she added.

Cole Varga, executive director of Exodus Refugee Immigration, Inc., said the organization has been focused on meeting the needs of refugees who have been displaced from nations like Syria, Burma, and Yemen under troubling circumstances made even more challenging because of the pandemic. In addition to helping refugees get settled in apartments, schools and jobs, the organization regularly helps them understand basic living skills, such as writing a check, purchasing groceries and accessing health care and social services.

As the impact of COVID-19 intensified, the Exodus team ramped up their efforts to assist refugees in applying for unemployment, and rental and utility assistance. Those efforts were complicated because of language barriers, said Varga, noting that Exodus provided interpretation. “Different government agencies are a bit behind with equality in terms of language access,” he said.

“Unemployment in Indiana has a massive backlog, making it even more difficult to navigate if you don’t speak English,” Varga added. “Some of them didn’t even have WiFi. It would have been impossible if we had not helped them out.”

Because of the added complications of applying for benefits as a non-English speaking resident, unemployment benefits sometimes didn’t arrive for more than two months. As a result, some families were unable to buy food or pay rent and utilities during that time, Varga said.

Grants have helped refugees face difficult circumstances, especially during the period in which Congress has debated on how to move forward with unemployment benefits, Varga said. “The Clowes Fund helped remove those barriers.” he said. “When a single mom lost her job at a restaurant, we were able to stand in and help fill in the gap.”

As part of its mission, La Plaza, Inc., another Clowes Fund grant recipient, provides one-on-one counseling to Hispanic high students to improve their chances of graduating from high school and college. The team also provides support to the families of the students, ensuring that they receive healthcare, utility and rent assistance, and other resources.

The pandemic complicated the ability to deliver those services because most of the engagement had been in person, said Miriam Acevedo Davis, president and CEO of La Plaza, Inc.. Also, La Plaza was sensitive to the increased need for mental health counseling as well as helping families understand the signs of anxiety and depression.

“It was an enormously scary time,” Acevedo Davis recalled of the first several months of the pandemic. “We were serving an area that had been identified as a hotspot, based on a lot of the information we had.”

La Plaza team members initially worked from home, ensuring that the families they served were adequately protected with PPE, medical services, food, childcare and other resources. Additionally, they were sorting out the complications of working with some students who were trying to study from home without WiFi or had the responsibility of caring for younger siblings.

Acevedo Davis described the Clowes Fund grant as extraordinary for several reasons. Not only was the grant unsolicited, it was issued quickly and without restrictions.

Acevedo Davis said those factors were critical. “We did not have to worry about writing a report about what we’re going to do and anticipated outcomes, or spending a lot of time tracking it,” she said. While La Plaza has processes in place for reporting and tracking, additional restrictions would have been difficult to complete at a time when employees were working from home and working hard to meet the needs of the community they served, Acevedo Davis said. 

“They (Clowes Fund) told us, ‘We want to get the money to you quickly. We know you’ll do a good job supporting the most vulnerable,’” Acevedo Davis said. “With those restrictions gone, we could move quickly so that students and their families could get the critical help they needed during a difficult time.”

Acevedo Davis said The Clowes Fund, along with other local funding sources, have provided critical support during an incredibly challenging time for nonprofits and the communities they serve.

“We are in awe of how quickly our funding community moved to provide funds to organizations,” she said.

The Clowes Fund COVID-19 Relief Grants recipients included: Broadway United Methodist Church (Undocumented Hoosier Support Fund); Exodus Refugee Immigration, Inc.; Gleaners Food Bank of Indiana, Inc.; La Plaza, Inc.; Local Initiatives Support Corporation; Mary Rigg Neighborhood Center, Inc.; Second Helpings, Inc.; Shepherd Community Center, Inc.; The Immigrant Welcome Center, Inc; and RecycleForce. Other awards were granted to organizations in New England states, including Massachusetts, Maine and New Hampshire and New York, and other regions.

Jul 13

Lilly Family School alumni share sustaining lessons from the pandemic

By Sponsor Insight

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

As states slowly resume operations and the U.S. tries to return to normalcy in the wake of a devastating health and economic crisis, nonprofits continue to serve on the frontlines.

To learn what is happening on the frontlines, Lilly Family School of Philanthropy reached out to alumni working in nine charitable subsectors. Classified by the National Taxonomy of Exempt Entities (NTEE) Code: religion, health, education, human services, public society benefit, international affairs, foundations, animals and the environment, and arts, culture and the humanities, these graduates provided insight about how their organizations responded to COVID-19 and what they are learning.

Insights

In the religion subsector, Winterbourne Harrison-Jones serves as a senior pastor at Witherspoon Presbyterian Church on the city’s westside. He explained that the old models of worship have been challenged, and the church has had to find new ways to connect, show care and form community.

Winterbourne Harrison-Jones

“We’ve had to create virtual spaces for spiritual development and social engagement. The coronavirus has challenged many congregations to think quickly and creatively to stay true to teachings of the church, while also navigating a new environment.”

Harrison-Jones shared videos of services, messages, and music on the church’s Facebook page in order to connect with church attendees.

In the education field, Richard Trollinger works as a senior philanthropy advisor to Centre College in Danville, Ky. In March, the college created a relief fund for students needing immediate assistance during the spring semester. Now, it’s shifting its focus to discuss the ongoing needs for students long-term.

Trollinger also serves as the coordinator of a group of 21 chief development officers at liberal arts colleges in the Southeast.

Richard Trollinger

“We have had Zoom meetings to discuss when and how to reboot our overall fundraising programs, especially major gifts. We want to examine all angles in major gift fundraising and learn from each other before moving forward.”

The subsector public society benefit includes organizations such as United Way. Lisa Busse serves as the engagement senior manager at United Way of Central Indiana (UWCI), which rapidly developed a response to the virus crisis by working with other funders to launch the Central Indiana COVID-19 Community Economic Relief Fund. Busse leads a team that is not only raising funds for the needs in the community during the pandemic, but for UWCI’s regular programming as well.

Lisa Busse

Those fundraisers meet with donors online, openly sharing the challenges of the global pandemic while also illustrating the need for United Way and the impact it has had for over 100 years. Combined with three prior rounds of grants made since March 24, C-CERF has granted $21.5 million to 186 organizations in Central Indiana that serve individuals and families affected directly and indirectly by the COVID-19 pandemic.

Working in human services arena at Gleaners Food Bank, Bethany Watson, director of grants and foundation relations, has seen the number of food-insecure Hoosiers rise dramatically as a result of COVID-19. In April, the nonprofit distributed more than twice the amount of food as it had in April 2019. Gleaners and other nonprofits that are focused on food insecurity have rapidly adapted their services to feed more hungry individuals.

Bethany Watson

Watson said her degree in philanthropic studies has helped her navigate the challenges of a new environment, including writing grants and mananging relationships with funders to help Gleaners make a difference for those facing food insecurity and hunger.

At The Nature Conservancy (TNC), Erin Crowther serves as the donor relations manager. The environment- and animals-focused nonprofit has found new ways to creatively adapt to the new environment and engage with its constituents and the conservation community.

Erin Crowther

“We’ve developed ‘TNC TV’ episodes featuring different aspects of our mission, we held an online board meeting, and we celebrated the 50th Anniversary of Earth Day from all corners of the globe,” Crowther said. “We recognize the comfort our natural world can bring to those who engage with it.”

International affairs organizations based in the U.S. have implemented innovative fundraising campaigns, participated in global giving days, and developed their own emergency responses to COVID-19, according to Lilly Family School of Philanthropy visiting research associate Kinga Horvath, a Fulbright Scholar from Hungary.

“Pooled funds and collaboratives have also become an innovative vehicle to leverage donors’ resources and common interests in order to tackle global societal challenges, locally and globally,” she explained.

Kinga Horvath

Horvath and the rest of the Lilly Family School of Philanthropy research team have worked on collecting data about giving and COVID-19 from around the U.S. and the world in order to assess its national and international impact.

Some foundations, such as Ball Brothers Foundation (BBF) in Muncie, have developed a rapid grant program that is designed to pay out small grants quickly, according to BBF president and COO Jud Fisher. The program assists with immediate needs, and allows BBF to respond quickly without changing many of their systems. In addition, Fisher noted that the foundation is also continuing its general grantmaking cycle.

Michelle Turchan of Riley Children’s Foundation urged nonprofits to be nimble and to ask constituents, volunteers, and donors how they are impacted by the crisis and can best be served.

Michelle Turchan

“We’ve developed a relief fund that allows the hospital to serve the specific needs of families impacted by this health crisis,” said Turchan, regional gift officer. “We know that many of our constituents are in a particularly heightened state of stress, and we want to be sure that we are continually able to best serve them.”

Arts, culture, and humanities organizations face a tough road ahead.

“During previous disasters, sharing space and taking solace in the healing power of the arts has allowed us to grieve together and heal together,” explained Tania Castroverde Moskalenko, executive director of the Miami City Ballet.

Tania Castroverde Moskalenko

“The nature of this pandemic hasn’t allowed us to do that. The current situation has forced many of us to pivot to virtual presentations via digital platforms and social media channels,” she said. “Most of us are planning, creating, and producing content in order to stay connected to our audiences. We are determined to continue impacting lives through our work.”

Lessons

What are some of the takeaways that nonprofit practitioners can learn from peers in the philanthropic sector?

  1. Use a virtual learning/community environment to your advantage. Discover new ways to connect with stakeholders and those passionate about your mission. How can you use online platforms to connect in virtual ways that you weren’t able to or hadn’t tried before?
  2. Be creative in communicating and engaging with your donors. Host regular Zoom meetings. Invite donors on tours of your organization, implementing your community’s recommendations for social distancing. Share stories about recipients or beneficiaries of your organization. Find ways to continually engage with your donors.
  3. Identify ways to regularly meet with your board. Although the virus has altered programs and schedules, it’s important to keep in touch with your board to discuss the ever-changing situation. Keep them involved and engaged, and use their expertise and connections to continue to demonstrate your nonprofit’s case and mission.
  4. Collaborate with others. Search for opportunities to collaborate with other nonprofits, and with businesses and government entities. Much can be accomplished if individuals and organizations work together to better serve their communities.
  5. Listen and respond accordingly. If you’re a public charity, listen to your beneficiaries and the community to see where your mission matches need. Be open and nimble to adjusting plans if you find that your constituents need something different from you. If you are part of a foundation, listen to your grantees and find ways to be flexible in order to quickly respond to community needs. In addition, deliver on your previously-made awarded grants in order to help nonprofits as much as possible during this time.

Since June 2020, Abby Rolland has served as a fellow at The Patterson Foundation in Sarasota, Fla. She holds a master’s degree in philanthropic studies from the Indiana University Lilly Family School of Philanthropy and an undergraduate degree from Gettysburg College.

Through a collaboration with the Indiana University Lilly Family School of Philanthropy, The Patterson Foundation created the Fellows Program. Through this effort, the foundation aspires to create a network of future leaders aligned in its innovative approach to philanthropy.