NFP Advisor Volume 23

Nonprofit professionals, check out our latest newsletter,
NFP Advisor Vol. 23!

Articles include:

  • Gifts in Kind – New Rules
  • News Flash! Exempt Organizations May Actually Have to Pay Income Tax
  • Audit Committee Bootcamp Wrap Up

Where Stories, Donations, and Quarantine Life Meet

Be a COVID Vaccine Messenger | Tips to Share with Your Staff + Clients

COVID Vaccine Messenger

More and more New Yorkers are becoming eligible to get the COVID-19 vaccine. We know that many communities and individuals throughout the State have expressed hesitancy around immunization.

As you, your staff, and clients begin to get vaccinated, we hope you will encourage them to participate in sharing their vaccine story on social media to assure others that the vaccine is safe and important.

We’ve put together this document that you can print out and give to staff and clients when they get vaccinated to help them become COVID vaccine messengers! And if your staff and clients are already sharing their stories, please send those social media posts to diamondj@humanservicescouncil.org so we can help amplify them.

Here’s how to participate:

1. Take a short video of yourself after your vaccine. Make sure to include some or all of the following information:

  • Who you are! (Are you a human services worker, a faith leader, a community member?)
  • Were you afraid before getting the vaccine? (It’s okay to say you were!)
  • Did you have any side effects? What were they?
  • Why did you get the vaccine? (To protect your family? To get back to normal life?)

NOTE: **If you don’t want to make a video, you can take a photo of yourself getting the vaccine or after the vaccine and write your information into a Facebook or Twitter post!**

2. Share your video on social media!

  • Make sure to tag HSC (Twitter: @HSC_NY, Facebook: Human Services Council of New York, Instagram: @HSCNY) so we can help promote your content to other providers and community members.
  • Use the hashtags #myCOVIDvaccine and #NYCVaccineForAll to be a part of the conversation and to help others find your videos.

3. Spread the word by sharing this document and asking your family, friends, and colleagues to do the same when they get vaccinated! Thank you for helping to keep New Yorkers safe!

NY State DOL Changes Unemployment Regulations

NY State DOL Changes Unemployment Regulations

Employers received some good news on January 14, 2021, with an extra big bonus for certain nonprofit organizations that are self-insured for unemployment insurance. As part of the CARES Act, the federal government agreed to cover 50% of the unemployment responsibility for self-insured nonprofits. Now, based upon an order by Roberta Reardon, Commissioner of the New York State Department of Labor (DOL), New York State will pick up the tab for unemployment claims retroactive to March 9, 2020. All unemployment claims from March 9, 2020 through an undetermined date in the future will be charged against the NY State general account. What this means is that businesses will not see an uptick in their NY State unemployment rates due to turnover during the pandemic, and nonprofits that are self-insured will be made whole by the NY State general account.

From a cash flow perspective, effective immediately, self-insured nonprofits should stop making payments to NY State for unemployment claims. How NY State is going to reimburse agencies that have been paying the claims is uncertain at this point.

Nonprofits also need to consider the impact of this regulatory change on deficit funded contracts, cost reports, and PPP forgiveness, as it is no longer a cost that they have incurred. Organizations should establish a receivable for the projected amounts paid to the State that will be refunded.

For a full copy of the Commissioner’s Order, click here.

Tania Quigley, CPA

TANIA QUIGLEY, CPA | Partner

Tania Quigley has been a member of Cerini & Associates’ audit and consulting practice area for ten years where she focuses on serving the firms nonprofit and employee benefit plan clientele. Tania has experience in performing financial statement audits and reviews, tax return preparation, cost report preparation and filing, retirement plan audits, and other consulting. Tania brings her expertise, diversified background, and helpful approach to all of her engagements.

NONPROFIT SPOTLIGHT: The Liincs Organization

Business meeting with large screen

When The Liincs Organization (liincs.org) originally formed in 2013 its mission was to create a forum for young professionals to organize in order to maximize their economic, social and governmental impact in the region. It has since morphed into an association to help Long Islanders looking to launch a career or become leaders within their respective communities. Its new mission is to cultivate a platform for Long Islanders looking to better their community and careers through connections, professional development, civic engagement, and social impact.“Establishing roots in a community while launching a career can be challenging, especially so on Long Island,” Liincs founder and executive director Michael Watt said. “Thanks to advances in technology and broadband, smart, hard-working people can live wherever they want and they want to live in regions that rank high in matters pertaining to quality-of-life. In that regard Long Island brings a great deal to the table.”
“Liincs” is short for “Long Island Incorporateds,” Watt explained. “Anyone born after 1980 ‘owns’ their careers much more so than previous generations. As a result, Liincs members bring an entrepreneurial mindset to their personal- and career-related challenges. It’s all about solving problems efficiently and effectively. The resources are already there. It’s Liincs job to connect the people to those resources.”
Among other accomplishments, TLO spearheaded the creation of the Millennial Leadership Coalition (liincs.org/mlc), which is comprised of the leaders of the two-dozen-plus young professional-oriented groups and chapters currently functioning in Nassau and Suffolk counties.
Together, the TLO and MLC organizations are planning an event entitled “Elected Millennials and You.” It was originally scheduled for 2020 but has been moved to Fall 2021 because of the pandemic. It will be a panel discussion featuring elected officials who qualify as millennials, moderated by a millennial in front of an audience of millennials. This is the first time such an event has been planned on Long Island. Perhaps the most enticing – and encouraging – aspect of both the event and the groups planning it is the diversity of the young Long Islanders involved. This occurred organically and accurately reflects Long Island’s changing demographics.
LiiNCS is a Long Island-based 501c3 nonprofit association committed to improving local communities through personal and professional development. The Liincs Organization shares a commitment to cultivating an environment that encourages action in leadership, social awareness, and civic engagement in areas affecting the future of our community.

What You Do Everyday Matters!

Helping Nonprofit Organizations Rediscover Their Purpose So They Can Secure Their Futures.

  • WRITTEN BY: Cory Rosenberg Chief CRee8tive Officer CRee8/Fivestar Advertising

According to the National Center for Charitable Statistics (NCCS), more than 1.5 million nonprofit organizations are registered in the U.S. This number includes public charities, private foundations, and other types of nonprofit organizations, including chambers of commerce, fraternal organizations and civic leagues.

The reality is that all of these well-intentioned Nonprofit Organizations (NPOs) are out there relying on all the same government funds and/or third-party donors such as foundations, corporate sponsors, wealthy individuals and the general public to support them.   Each year brings with it new challenges for Executive Directors, Finance Committees, and ultimately the Board of Directors, as they negotiate through the economic ebbs and flows of our country. Like many industries, the pandemic has brought with it a whole new set of challenges and has even brought some historically stable organizations to their knees.

So what is a NPO to do to ensure it actually has a future?

The fact is, most of the answers lie within the organization’s original mission statement. What did the founder of the organization want to accomplish by creating the organization?  What problem did he or she intend to solve? Is that problem still a problem, or does the organization need to pivot to address new issues?

At CRee8/Fivestar we have helped numerous NPOs reconnect their internal operations, and corporate cultures, to the intentions of their founders. We help remind everyone involved why they do what they do, and why their contributions are so critical. We help employees feel a sense of purpose as they embrace the responsibility of carrying the torch and protecting the legacy of their founder’s original mission.

“We all know that money doesn’t grow on trees, but we also know that cultivating great relationships is paramount for NPOs.”

By doing this, processes are reworked, products and services are improved. Everyone in the organization becomes synchronized and clear on the mission and message they need to convey each day. This unified brand voice helps the marketing team tell more concise stories. This helps attract more business and improves engagement with the donating public. Clearer stories also improve conversion ratios (e.g. turning a “follower” into a “donor”) – the key to success in today’s noisy digital world.

NPOs frequently struggle with marketing because they often rely on interns, volunteers, freelancers and less- experienced staff to develop and orchestrate their marketing plans. As a result, the marketing plans themselves lack the necessary depth to ensure that budgets are robust enough and the right strategies and tactics are being properly implemented to ensure effectiveness. The words “we can’t afford to do that” are frequently heard in the conference rooms of many NPOs, and it is this “scarcity mentality” that ultimately impedes growth.  You see marketing done effectively is not an expense, but a revenue generator. The reality is that finding a media efficiency ratio (Media Spend vs ROI) that works for your organization takes some time (and money). However, if your marketing team has been at it for a while, has accumulated a lot of data, has effectively tested different creative executions and strategies, and is still spending more money than it makes, then there’s a problem, a real problem. Most likely, that problem is that your organization’s corporate culture is weak, your employees still don’t know why the founder felt a need to start the organization in the first place and your marketing team doesn’t have a clear and focused story to tell.

We all know that money doesn’t grow on trees, but we also know that cultivating great relationships is paramount for NPOs. While building great donor relationships can take time, they can certainly be fertilized with clear and focused storytelling. If your marketing messaging can remind people why your organization exists, and why it matters, everyday, then you’ll succeed.  Consistency of messaging, a constant flow of success stories that demonstrate your organization’s

uniqueness, value, and authenticity will attract people and ensure your NPOs long-term success.

Again, what you do every day matters.  Tell the world why!

If your NPO needs help reconnecting to its mission and/or telling its story, reach out to Cory Rosenberg or Noel Raab at 631-420-1112 or by email at  Info@FivestarAdvertising.com.

2021 Non-Profit Employee Benefit Trends

Multy-ethnic group of businesspeople with masks helping each other

The Covid-19 Pandemic has changed the way we live our lives and certainly the Non- Profit community is no different. Many Non-Profits have had to adapt to a new way of communicating with their employees, as they have had to convert at least some of their workforce to remote schedules.  This has also had an impact on how employee benefits are being communicated, and the benefits Non-Profits are providing to their employees. Over the past year we have had many conversations with our clients and partners. Here is some of what we are seeing and the trends we expect to continue.

Increased Focus on Employee Education

Employee education is a vital component to any employee benefit strategy. Benefits have become increasingly more complex and more of an important part of employment.   We are seeing a continually growing sentiment by Non-Profits who feel it is their responsibility to ensure employees have a good understanding of the benefits they offer including initiatives that assist in their well-being.  In the past most employee open enrollment communications consisted of group meetings, literature, Q & A, and a very reactive approach to employee education assistance.  Although effective to a degree, the information provided was typically general in nature and therefore did not take each specific employee’s needs into consideration.  As a result, we have found that some employees may have made elections without ensuring suitability.  In addition, many employees waived important benefits such as Life Insurance and Short-Term Disability often because they did not understand how they worked.   One study done by the Employee Benefits Research Institute showed that 80% of all employees surveyed would be at least somewhat likely to take advantage of an advisor service that recommends benefits based on their own household situation. More employers are working with broker partners that offer 1 on 1 employee consultations as part of their service model.  This method creates a more customized approach to communicating employee benefit plans.  Employees that receive personal advice typically select plans most suitable to their own needs.  This approach helps reduce costs and risk for employers and employees.  One example of this is evident in the employee participation of HSA qualified high deductible plans. Most employers offer at least one of these plans in their benefit menus.  However, on average we find that only 10-15% of employees elect an HSA plan.  We feel this is largely due to a lack in understanding of how they work.  Our experience has provided evidence that this percentage increases when employees meet with one of our Education Specialists.

CASE STUDY: During a recent Open Enrollment we provided a team of experienced Benefit Education Specialists for our client which has 1600 employees. The Employer saw the value in providing 1 on 1 education and made this the sole method of collecting benefit elections and waivers.  As a result, 97% of employees met with an Education

Specialist and approximately 40% of those employees selected an HSA plan, almost 4 times the average enrollment.  This offers further proof that educated employees make prudent benefit elections which improves satisfaction.  This is a trend we expect to continue and grow more towards the preferred method of benefit communication.

Growing Emphasis On Employee Well Being

According to a USI Survey 56.6% of Non-Profits incentivize or intend to incentivize employees to participate in Wellness Initiatives.   One thing we may have learned from the Covid-19 Pandemic is that there is an education gap contributing to co-morbidities in our country.  Seven in ten employees surveyed felt they needed their employer’s help to make sure they are healthy and financially secure.  Sixty Two percent said it is their employer’s responsibility to do so.   In the past many employers viewed wellness programs as a way to possibly reduce health insurance costs. They looked for immediate return on investment which can be very difficult to measure.  Now more than ever employers look toward wellness programs to help employees live healthier lifestyles.  Wellness programs have evolved from Flu Shots and Health Risk Assessments.

Today wellness programs may include flexible work schedules, dress down days, or education on stress reduction. Many employers are initiating team building exercises such as group Yoga and Guided Meditation.   Insurance carriers have also made a concerted effort to improve on their included wellness benefits. Many plans now include Telehealth, Gym reimbursements, EAP programs and reward-based initiatives. For larger employers, insurance carriers may even provide wellness dollars to fund some of their own programs. In the past we have found that these benefits would go unnoticed by employers and employees therefore underutilized.  Now more employers are requiring that these services be included in their plan designs and communicated to employees.  Financial wellness also plays an important role in this trend.   Financial difficulties can be a major source of stress in the workplace and can lead to less productive employees.  Employers are now providing services such complementary financial assessments, education on debt reduction, and assistance for first time home buyers.    We expect these types of wellness initiatives to grow in popularity and viewed as an important part of Employment.

Rise in Employee Assistance Program Inquiries

The past year has tried the patience of just about everyone.  Non-Profit are expressing their concerns about stress which may be afflicting their employees.  The number of inquiries we have received this year regarding EAP programs has escalated dramatically.    A growing number of employers are asking us to place emphasis on the availability of EAP during meetings with their employee’s.  EAP’s offer resources to support employees on a myriad of issues including Anxiety, Depression, Fear, Isolation, Stress, and Elder Care.   Employers may purchase these services directly, but sometimes times can find them included with their Health Insurance, Life Insurance, or Disability programs.   EAP’s offer a valuable outlet for employees however most of the time they are utilized when the employee is already experiencing challenges. Many employers are now investing in programs that are more proactive in nature.   Education programs on mental well- being and stress reduction are gaining popularity in the workplace.

This proactive approach assists employees with how to recognize the warning signs of stress and how stress can lead to chronic conditions.  Sessions can be delivered as Lunch and Learns, Zoom conferences, or video’s that employees can view on their own time.   This is not replacing the need for Employee Assistance Programs.   However, we are finding that employers are implementing a combination of the two to create a healthier long-term outcome for employees.

Technology

As our society continues to evolve technologically more employees than ever before select their benefits online through an employer provided portal or on their mobile device.  The Covid-19 crisis accelerated this pace as more employers are using technology to offer benefits.   The trend in remote working should continue to grow in the non-profit sector and employees will be electing benefits from their homes in many cases.  Employers will find a greater need for benefits administration systems that provide online and mobile access.        Good benefits administration technology is the key to efficient management of enrollment, billing, and internal carrier data requirements.

Solutions can vary considerably in price, capabilities, and useful application across various employer workforce scenarios. Contemporary features include plan decision support tools with Artificial Intelligence, recorded presentations, educational videos, mobile phone apps and a connection to claims support services. Paying for these services can be possible with technology credits from certain insurance carriers.

Designed to abide by state rebating laws, technology credits provide support for implementation fees and the ongoing costs of a benefits administration systems. These are often only available at benefits renewal, especially when changing carriers and can range from $.20 PEPM to $2.50 PEPM.  Non-Profits should discuss technology opportunities and integration features with their Broker Partners, and Payroll Companies to find the best solutions.

Telehealth

Telemedicine has been an increasingly offered and utilized benefit in recent years. The need was greatly accelerated at the beginning of the Pandemic when physicians were unable to see patients. Many people turned to Telehealth when they were sick being unsure of what to do. As a result, more people utilized some form of telehealth than ever before and received a crash course on how they work.   We believe that Telehealth will continue to grow as a vital component in the healthcare delivery system. The Pandemic has changed the patterns of people and those once resistant to technology are now shopping, working, and even exercising remotely.  Many patients have realized they can address routine matters with doctors telephonically just as well as in person. Several insurance carriers have added Telehealth to their health plans and incentivize employees to use them without any cost associated.   Some even offer mobile aps that facilitate web conferences with MD’s. During appointments physicians are able to make a diagnosis, and even prescribe medicine if necessary.  Employers will also continue view Telehealth is a great tool to drive down plan costs by steering employees away from costly Emergency Room visits.   We expect to see this trend grow in mental health services as well.  Often, mental health providers can be difficult to coordinate with insurance and many providers do not accept insurance which can make care very costly.  As the societal emphasis on well-being continues to grow expect to see more and more insurance carriers and employers offering mental health services via Telehealth, allowing for greater access to employees. One thing for certain is that Telehealth is here to stay.

Sources:

1.     2020 Employee Benefit Research Institute Wellness Survey

2.   USI 2020 Non-Profit Benchmark Report