Nonprofit 411: How One Nonprofit Revolutionized Its Employee Healthcare

Callihan-headshot

By Nonstop Wellness

Patrick Callihan, executive director of Tech Impact, has made significant changes to his employees’ health insurance in an effort to reduce costs and improve benefits. Taking cues from the self-funding world, Tech Impact now uses a partially self-funded insurance approach that has stabilized premium costs and eliminated out-of-pocket expenses for his staff of 55.  Nonstop Wellness caught up with him to learn more.

Q: Why did Tech Impact begin moving away from the traditional insurance model?

A: For many years, my previous broker would come to me with double-digit increases and I would ask “what can we do creatively to avoid taking this hit?” So I began self-insuring pieces of our healthcare plan. It reduced the premium increase, but it also meant that as an organization we were taking on more risk. Because of our size I didn’t think we were in a position to self-fund entirely, so that model was not an option for us.

Q: What drew you specifically to the Nonstop Wellness model of partial self-insurance?

A: Moving to Nonstop Wellness meant our healthcare premiums remained stable, we could slow down healthcare inflation year over year, and we could provide better benefits to our employees with a $0 out-of-pocket insurance program. It’s a win-win for both Tech Impact and our staff, in that we experienced organizational cost-savings and our employees no longer pay copays, deductibles or coinsurance costs.

Beyond that, I was just really blown away by Nonstop’s financial model and how Nonstop Wellness is engineered. Nonstop has created a predictable algorithm that compares cost and actual usage of the plan. It’s an awesome business model that allows nonprofits to access the upside of self-insurance with none of the downside.

Q: How has moving to a partial self-insured approach supported Tech Impact’s business model?

A: We are growing quickly, so this has been a great recruitment tool. When I describe our healthcare plan to prospective employees, I often get a jaw drop. We pay 90 percent of premiums, so that, coupled with $0 out-of-pocket costs, means that employee wages stay stable each month. That is a huge win. For many people, this can be the difference between staying in the black or going into debt. There are no “gotchas” with Nonstop Wellness like there can be with other plans. It speaks to quality of life, something that is important to both me and my associates.

Q: What advice would you give to other nonprofits that are seeking an alternative to traditional health insurance?

A: My first reaction to Nonstop Wellness was that the model was too good to be true. But when you dig into the research and vetting process, the financials and logistics are quite sound. In addition, I really feel that Nonstop is our advocate when it comes to employee healthcare. It gives me a lot of confidence and comfort. Healthcare is a big line item for us, so having someone in our corner makes a difference. I’d encourage all nonprofit leadership to dedicate the time and resources needed to explore alternatives to the traditional fully insured model. There is nothing to lose and everything to gain.

Tech Impact’s mission is to empower communities and nonprofits to use technology to better serve our world by providing telecom, cloud migrations, data services, and managed IT services to nonprofits/NGO’s on a national and international scale. Tech Impact also offers workforce development programs for underrepresented communities in Philadelphia, PA, Wilmington, DE, and Las Vegas, NV. To learn more please visit www.techimpact.org.

MNN Commits to Eliminate Gender Wage Gap by Signing 100% Talent Compact

FOR IMMEDIATE RELEASE

 

The Massachusetts Nonprofit Network (MNN) has recently signed on to The Boston 100% Talent Compact, a first-in-the-nation, business community-driven effort to level the playing field for working women. By signing the 100% Talent Compact, we have joined forces with the Boston Women’s Workforce Council, a public-private partnership between the City of Boston and Boston University, and more than 215 other Boston-area employers to close the gender wage gap.

According to the Boston Women’s Workforce Council’s 2016 report, women who work in Greater Boston earn significantly less than their male colleagues, while women are the majority of both Boston’s residents and workforce. We recognize that this pay discrepancy poses consequences on the company’s talent pool and that women are one of Boston’s assets: when women thrive, companies and communities thrive.

The Council’s mission is to work with the businesses in the Greater Boston area in a private-public endeavor to eliminate the gender wage gap, remove the visible and invisible barriers to women’s advancement, and ensure that 100% of the talent pool is used to make Boston the best area in the country for working women. As a signer of the 100% Talent, MNN will work with the Council to take concrete, measurable steps to eliminate the wage gap within their own company and to report their progress anonymously every two years.

For more information or to join the 100% Talent Compact, check out: www.bostonwomensworkforcecouncil.com.

Nonprofit 411: How to Find Money in the Cloud

By Ryan Ecclestone, Director of IT Consulting, Insource Services, Inc.Ryan Ecclestone

Nonprofit organizations are faced with the challenge of managing their costs and spending and implementing technology to leverage their resources and support achievement of their mission. As every dollar counts, many nonprofits utilize Cloud solutions because they are often the most cost-effective and sustainable technology solution.

Two of the most popular cloud vendors, Microsoft Azure Cloud (Azure) and Amazon Web Services Cloud (AWS), offer secure Cloud services that provide computing power, backups and disaster recovery services, database storage, content delivery, and other functionality without requiring organizations to invest in physical infrastructure. Both offer thousands of dollars in discounts to nonprofits.

What Nonprofit Discounts Are Available?

Azure

As part of their $1 Billion “Public Cloud for the Public Good” commitment, Microsoft offers a program specifically geared towards qualified nonprofit organizations.

Azure Credit Program for Nonprofits:

  • Offers $5,000 in credits annually which can be applied towards the complete portfolio of Azure services.
    • The primary approach to receiving discounts on Azure is through your Microsoft Enterprise Agreement (EA). Any EA customer can add Azure to their EA with an upfront financial commitment to Azure. That commitment is consumed throughout the year by using any combination of cloud services.

Here’s how an Insource client took advantage of the discounts offered for Azure:

Client Y was already using Cloud products for their email and file sharing needs, but still had an onsite server for user and computer management. Using the Azure credit, Insource built a cloud server to manage these roles, thereby reducing our client’s need for premise equipment and complicated backup procedures.

AWS

In 2016, AWS partnered with TechSoup Global to provide AWS credits to nonprofits. Through the AWS Credit Program, nonprofits can select packaged AWS Cloud services.

AWS Credit Program for Nonprofits:

  • Makes a grant of $2,000 annually in credits to eligible 501(c)(3) organizations
    • Sign-up through TechSoup ($175 admin fee each year)
    • Apply these service credits toward usage fees for AWS on-demand Cloud services and certain AWS support fees.

In addition to the AWS Credits Program for Nonprofits, AWS offers the AWS Free Tier for all new customers for 12 months following the organization’s sign-up date. The AWS Free Tier is a separate offer from the AWS Credits Program and allows new customers to use certain AWS services for free up to certain usage limits. The AWS Free Tier is available for one AWS account only per organization.

Let’s look at an instance of leveraging the AWS discount:

Client X was experiencing frustration with its current web host due to increasing costs, outages and lack of support. Using the AWS credit, Insource consultants set up a Cloud server for hosting Client X’s web application. The benefits of this change included: significant cost savings, more control over the website environment, and a reduction in reported issues.

How to Make These Discounts Work for You?

Cloud solutions are an attractive option for nonprofits – they offer flexibility, savings on infrastructure costs, and improved methods for collaboration. Comparing pricing among the major Cloud vendors, like AWS and Azure, is a complex process and the array of offerings and discounts can be overwhelming. Insource IT experts can guide you through understanding and choosing the right Cloud-based system(s) to meet your needs, while ensuring that all applicable discounts are utilized, whichever platform you select.

 

 

Nonprofit 411: Is Your Nonprofit Ready for the Unexpected?

By Barbara Andrews, CPA, Senior Audit Manager, KPM & Associatesbarbara-andrews2

The executive director of a nonprofit organization recently informed me that the agency’s landlord is selling the building that houses their operating facility. The lease ends in a year and there is now an organized scramble to find a new location. This recent chain of events has moved the organization into a ‘reactive’ mode which is disruptive to their regular operations. There are many types of unforeseen events that can happen to an organization, however there are steps organizations can take to prepare for the unexpected.

Does your organization have a healthy operating reserve?
An operating reserve allows for flexibility and strengthens an organization’s ability to adapt to changes.  The Nonprofit Operative Reserves Toolkit developed by the Nonprofit Operating Reserves Initiative Workgroup (NORI) is a valuable resource available to organizations.  NORI recommends that organizations establish a minimum operating reserve ratio policy.  The ratio can be calculated in terms of a percentage (operating reserves divided by the annual expense budget) or number of months (operating reserves divided by the average monthly expense budget).  The minimum operating reserve ratio at the lowest point of the year should be 25%, or 3 months, of the annual expense budget.

Does the Organization’s Board of Directors have the right mix of professional experience?
There is no magic formula but the more active and vibrant Boards that I have encountered consist of members with complementary skillsets.  Is the organization looking forward or is it operating with a day-to-day mindset? The organization that is looking forward will be better equipped to respond to changing environments. The latter will likely be stagnant or fall into ‘crisis mode’ when challenges arise.

Are you using your network?
Do the organization’s leaders and Board have a pulse on the industry?  Organizations that engage with leaders within their industry are more informed.  This can be accomplished through direct interaction or indirectly through such means as social media.

Is the Organization’s financial information reliable and timely?
One tool to help gauge the reliability of financial information provided to the Board is the organization’s annual operating budget to actual comparison reporting.  This simple tool evaluates if management understands both the organization’s perceived and actual operations. An unreliable budget is of no value.  The organization should also incorporate pro-forma data, such as future cash flows, in the financial reporting package provided to the Board.  This forward thinking will assist the organization and its Board in making informed decisions.

Does your Organization have a strategic plan?
The National Council of Nonprofits has made available tools and resources to be used by an organization when developing its strategic plan.  The Council states “that many nonprofits start the process by identifying the nonprofit’s strengths, weaknesses, opportunities, and threats, in what is commonly called a “SWOT” analysis.  Looking at external as well as internal factors (such as your own nonprofit’s staff capacity to accomplish its goals) is important.”

No matter the tools utilized, the organization should share the information and results with the entire organization.  When employees are aware of the organization’s goals and how they align with the mission, it empowers them to learn from setbacks and to share and celebrate the organization’s accomplishments.   The organization, as a whole, will be better equipped to respond to the unexpected.

 

 

 

How You Can Help Those Affected by Hurricane Harvey

Our hearts go out to the victims of Hurricane Harvey in Houston, Texas and all affected areas. Making landfall over the weekend, Harvey continues to wreak havoc on the lives of millions, and will likely do so for many years. We are also sending strength to all first responders currently helping with relief efforts, including volunteers and staff of nonprofit organizations.

If you’re interested in helping out, there are many ways you can, including donating resources, your time, needed goods such as nonperishable food, toiletries, etc. Visit the links below for more detailed information.

Center for Disaster Philanthropy –  Recording of webinar: “Hurricane Harvey Recovery: How Donors Can Help.”

Boston Magazine – “How to Help People Displaced by Hurricane Harvey”

NECN – “Help for Houston: Boston Helping Those Affected by Hurricane Harvey”

United Philanthropy Forum – “How to Respond to Hurricane Harvey”

Boston Business Journal – “Boston Area Businesses Reach Out to Respond to Hurricane Harvey”

As we would expect in the event of a disaster here in Massachusetts, local and national nonprofit organizations have stepped up with characteristic vigor and have on-the-ground teams responding to the immediate needs of victims. In addition to organizations like the American Red Cross, consider following the work of these and other nonprofits on the front lines:

Feel free to be in touch with any questions or additions to this list. Contact Communications Manager Fernando Martinez at fmartinez@massnonprofitnet.org.

MNN’s Statement on Charlottesville and the Response to It

MNN joins the country in feeling revulsion at the protests fueled by white supremacists and those propagating bigotry in Charlottesville, grief for the deaths of Heather Heyer, Lieutenant H. Jay Cullen, and Trooper Berke M. M. Bates, and anger at the President’s implication that both sides stand on the same moral ground.

Forces of hate and discrimination- covert and overt- are not new to many of our member organizations and to nonprofits across the country. Every day, Massachusetts nonprofits are at the vanguard of the fight for respect, opportunity and fair treatment for all.

MNN remains committed to working with these organizations as well as leaders from the public and private sectors towards a vision of Massachusetts where people of all races, ethnicities, creeds, nationalities, ages, abilities, sexual orientations, gender identities, and gender expressions have equal opportunities to live, work, play, and create.

We were invigorated by the largely peaceful protests of tens of thousands in Boston this past Saturday. We are reminded that collective action is essential to the fight for social, economic, and racial equality.

Nonprofit 411: Tips for Investing in Technology and Moving to a Proactive IT Strategy

By Debbie Crooke, Senior Consultant, and Carmen Mincy, Sales and Marketing Associate, Ninestone Corporationninestone_0002_software-industry-implementation-expertninestone_0009_information-technology-industry-expertise

Many nonprofit leadership teams struggle with how to balance technology investments with other organizational priorities and financial constraints. Too often, IT is not involved when initiative prioritization and funding decisions are made.  Given this environment, it’s tempting to engage in a reactive IT approach, where everything is handled on an as needed basis as budget exceptions.  However, nonprofit organizations can make the move to a proactive IT strategy by following these recommendations.

Manage Existing Technology

Define a role in your organization for someone to oversee technology. Rather than be taken by surprise at growing inefficiencies, become proactive and organized when it comes to vendor contracts and the periodic upgrades that can be made to existing technology. This approach allows for IT issues to be centralized and will assist in how to prioritize upgrades and establish effective maintenance activities.

Have a Strategy

Investing in technology is complex, and may have implications for varied aspects of your organization. When considering an investment,

  • Define the goals of the investment, including identifying whether it’s a reactive or proactive decision,
  • Prioritize the implementation of the new or updated technology along with the rest of planned initiatives, and
  • Execute a plan to communicate with and train staff and volunteers related to the new technology.

Once you have decided to invest in a technology solution, you should consider a tiered rollout to different parts of your organization and give ample time for smooth adoption. Defining tiers of needs helps to allocate a limited budget effectively and should provide for a smoother transition to the new solution.

Select the Right Software Solutions

There are many software solutions for managing volunteers, donors and day-to-day operations. Review them to determine which ones best fit your organization’s needs.  In addition, look for inefficiencies in office infrastructure and prioritize needs. This approach will help your organization move methodically towards implementing solutions that have the most impact and provide a clear way forward.

When looking at software solutions, keep in mind the possibility of nonprofits rates from vendors or third-party organizations. Techsoup, for example, offers discounts on basic office tools, such as Office 365, as well as webinars to train your staff on basic office technology such as Microsoft Word or Excel, as well opportunities to purchase laptops, hardware, and other software at nonprofit rates.

Expand Your IT Architecture

Identify ways to expand IT within the organization to better support day-to-day activities and reduce administrative burden.   For instance, moving data to the cloud has advantages for security, backup, and sharing data efficiently, but should be done with an understanding of how the cloud will be accessed by users and ensures that you only pay for what you need.  Increasing mobile connectivity provides advantages for allowing employee flexibility but needs to be planned carefully with budgets and security in mind.

Make Use of Data

Data analytics are becoming increasingly important to expand and target fundraising and/or volunteer campaigns. Select data analytic tools which will help make sense of the data you collect and asking the questions you want answered to tailor your marketing campaigns will ensure you collect appropriate data and build better datasets.

By implementing these recommendations, your nonprofit organization can develop a robust IT strategy to take advantage of existing technology, expand technology appropriately and be more prepared for future requests.

Nonprofit 411: Top 10 Crisis Response Steps

By Chris Dame, Interim Executive SolutionsCD-51

Uh oh. Something has gone wrong at your nonprofit organization.  It could be a crisis.  You need to manage the crisis, contain the damage and emerge to continue your mission’s work.  Interim Executive Solutions Partner Chris Dame brings over 25 years of managing nonprofits and handling crises, both large and small.  Here, condensed for you, is his “Top 10 Crisis Response Steps” list.

(Print out a condensed version for your office here:  http://www.interimexecutive.solutions/news-to-use/managing-a-crisis-top-ten-crisis-response-steps/)

TOP 10 CRISIS RESPONSE STEPS

  1. Face the Facts:

First, make sure YOU know the facts.  Don’t depend on hearsay.  Gather as much data as possible- times, actions, participants, outcomes – from a range of key sources.  Conduct an independent investigation.  Trust but verify!

Assess the information on the following four issues.  First, what “bad habits” (gaps in operations, in policies, in training) can you identify?  Where there initial assumptions you made that turned out not to be correct?  Were there people, staff, clients, others, that were less than honest or behaved badly?  Did decisions get made that should have been made differently?

Follow the money.  Get professional help if needed.  Pay bills as promised, as much as possible.  Rebuild financial credibility.

  1. Admit Culpability

Acknowledge your mistakes.  Apologize as appropriate. Let stakeholders know that you are aiming for a fresh start. Repeat often:  “That was then.  This is NOW.”

  1. Build a Plan.  Share it Widely

Revisit the organization’s “mission statement”.  Is it still operational?  Is it still appropriate for the organization? If the organization’s operations no longer fit the mission, or if the mission statement no longer reflects the purposes of the organization – then revise the mission statement as needed.

Identify the steps and timeline for “success”.  What stakeholders should be involved.  Determine how long it will take to create.  What changes will be required in the organization and how much will it cost. Where will the funds come from?  What measurements or conditions will let us know we are successful.

Post the plan.   Use the organization’s website, email, Facebook, Twitter and newsletters to let your community and stakeholders know about progress.  Use internal staff bulletin boards to let staff know about progress and expectations.  Prepare, send, and retain copies of official written reports to Board, funders and other key stakeholders.   Keep local press informed of progress.

Adapt to events.  Abandon unworkable elements quickly.  Explain changes, why they’re necessary, apologize as necessary for confusion.  Restate the plan and schedule.

  1. Make a Change:  Take Bold Action Early

Take positive actions.  Find at least one good, useful thing to do and DO IT ASAP.  Seek new programs, fresh ideas, new activities. Take negative actions.   Separate troublemakers.  End money losing programs, no matter how popular.

  1. Strengthen Governance

Improve structure and processes within Board of Directors.  Review and update as necessary the By Laws and Articles of Incorporation.  Convene regular and frequent BoD meetings, including BoD committees.  Pay special attention to the Finance Committee.  Recruit new Board members.  Build a written record of meetings, decisions and participants using minutes.  Post and circulate minutes.

Use technology to support Board activities.  Establish a private location for communicating with Board members and storing Board records, policies, legal documents, committee and sub-committee meetings.  Tools could include Dropbox, Slack, Doodle Poll, Skype, GoToMeeting, group email,  or other comparable technologies.  Make it easy for Board members to stay in touch.  Use conference calls for committees.  Allow call ins for Board meetings.

Reflect and communicate.  Require a unified voice.  Respect the Board Chair role.  Conduct an honest and objective Board self-assessment.  Thank Board members regularly.  It can be a thankless job.

  1. Upgrade Staff

Improve staff structures and processes.  Select and use an objective, formal performance evaluation tool for staff members, implemented quarterly.  Improve staff leadership skills among middle and senior level managers.  Find ways to identify and relieve staff anxiety.  Find ways to engage staff in the future of the organization.

  1. Rebuild Funder Relations

Improve communications with funding organizations as well as local government contacts and supporting businesses.  Present the plan and proposed schedule to these groups in person.  Make promises.  Keep promises.  Maintain contact.  Be clear that there will be a cost to service replacement and remind them they, too, have an investment.  Communicate that they have a role as “turn around” agents.  If the plan is successful, they will share that success.

  1. Check Your Legal Back

Find a good lawyer.  Cooperate with law enforcement.  Attend to human resources issues within the organization.  Anticipate and block internal staff conflicts, finger pointing, claims against fellow staff.  Stand firm against external actors attempting to cause additional problems within the organization or file claims against the organization.

  1. Talk to the Press. Communicate. Communicate.

Request a meeting with editors, bloggers, etc. that have been critical.  Have friends of the organization communicate progress through letters to the editors.  Create positive news events and broadcast via press releases.  Use a wide range of news vehicles:  radio, websites, Facebook, Twitter, Instagram, blog posts…. as appropriate.

Ask funders and related stakeholders to communicate positive news to the press.  Involve staff in community relations.  Tell your story to your clients.

  1. Use Core Values to Move to a Bright Future

Articulate Core Values.  Talk about them with staff.  What do we do best?  What is important about how we do it?  Identify what it takes to get to our highest and best performance.  Unify staff members and Board members in a common future vision.  Seek and identify new leadership to get there.  Choose a new leader, establish a succession plan, describe a new future.

Nonprofit 411: Email Marketing is Always a Good Investment

By Patricia Roundtree, CEO, Dundee Internet Servicesbefore the BIG P

Is email marketing a good investment for non-profits? No need to answer, it’s a rhetorical question. Consider this case: the County Rescue Shelter has a fair amount of community supporters. People are always donating blankets and food, but the shelter also needs money to help pay for upkeep, vet bills and medicine, and other items that blankets and food can’t buy. The Shelter operates on a tight budget, and has discovered with the right email strategy in place, they get the funding they need from individual donors subscribed to their email list.

For the Shelter, email marketing has opened up the opportunity to nurture and build lasting relationships with their list subscribers. Email technology has allowed the Shelter to send out information-packed newsletters on a local level, and at times emergency emails, when a list member’s dog or cat is missing. As a benefit, list members become donors, followers and volunteers. With the right content and attitude, both support for the Shelter’s work and their email list keep growing.

What tips can they share?

  1. Look for ways to grow your list through offering content that list members want to share.
  2. Send messages, not pleas. Ask subscribers to “Take Action”, “Get Involved” or “Give a Gift.”
  3. Personalize your messages. “Dear Mary” is much better than “Dear Subscriber.”
  4. Remind your audience how they helped in the past.
  5. Educate the reader on what’s new, expected changes, new goals.
  6. Segment your list by interest, donor, volunteer or cheerleader.
  7. Compel donors to get involved and appreciate what they do by always saying thank you.
  8. Invite list members to participate in your events.
  9. React to news in your field and share with your readers as an update.
  10. User Trigger email to respond quickly to pointed emails.
  11. Give them attention-grabbing visuals: for example, an emancipated dog to fat happy pup.
  12. Recognize those who that go the extra step with a “Supporter of the Month/Year” article.
  13. Set up a profile page, so your readers can tell you their email preferences. Do they just want newsletters, local announcements or event news?
  14. Set up a discussion list with other shelters to share stories, assistance and ideas.

Nonprofit 411: Boards of Directors Can (and Should) Align Organizations with Future Realities

By Eric Curtis, President, Curtis Strategy EricPic

The business models of nonprofit organizations are changing fast, but boards of directors are far behind the curve in making governance changes to keep up with the shifting landscape.

We are seeing massive disruption in every nonprofit sector due to technology, regulations, and many other factors. Donors and foundations have been trying to encourage nonprofits to prepare for this disruption for the last 5-10 years. Unfortunately, the pace of change in all nonprofit sectors is very slow. Donors and foundations have been trying to influence change through their grant-making strategy, but that too has been slow to evolve. The trend is moving away from small ($2,500-$5,000) grants to larger, more impactful gifts. With the increasing average grant size comes a decrease in the total number of grants available, making competition for grants tougher than ever.

Funders are also looking to ensure that nonprofit organizations will remain viable in the years to come. As a result, many of them are focusing more heavily on the following four areas as part of their giving strategies:

  1. Mergers, collaborations, and shared services: Large numbers of nonprofits are fighting for the same philanthropy. These organizations must find ways to work together with other like-minded nonprofits to leverage talent, share resources, and improve cost-effectiveness.
  1. Business model changes that integrate technology: Greater capacity, better resource management, and improved service can come from technology solutions, which must be adopted at a quicker pace.
  1. Ability to measure impact and capture data: Nonprofits must be able to clearly quantify how their programs are moving the needle and fulfilling their mission. They must establish credible metrics and capture reliable data to support higher-quality decision making.
  1. Building capacity to ensure a strong and capable workforce: Funders recognize that nonprofits need to attract talent to achieve their mission. Most organizations are stretched very thin with staffing resources to tackle new initiatives.

These shifts in funding strategy are not enough to fully drive change. Nonprofit organizations must take on the challenge of becoming more dynamic in the rapidly changing marketplace. This journey begins by building a breakthrough board of directors capable of aligning their organization with future realities.

Great nonprofit organizations build great boards. Boards can either maintain the status quo or lead their organization to new levels of governance, management, and achievement. It is more important now than ever for nonprofit organizations and their boards to be dynamic and adaptable. The boards of the future will need to be more capable, savvy decision makers and stronger players in driving change and adaptation. Boards must be able to think beyond traditional governance to ensure the viability of their organization.