State of EarthShare California · [email protected] [email protected] Ph: ... He holds a...

State of EarthShare California

History of the Founding of the Environmental Federation of California (DBA EarthShare

California)

Helen Glenny and Earl Blauner, as co-founders, joined with other founding member groups in

the belief that an environmental option should be offered in both the state and federal workplace

giving campaigns. Unfortunately, Helen became ill and died shortly after the federation was

formed in 1982. Kal Stein became the first executive director of the Environmental Federation

of California and later moved to the east coast to launch EarthShare National.

In 2001 the Environmental Federation of California affiliated with the EarthShare National

network and took on the DBA of EarthShare California. The network is composed of thirteen

(13) state affiliates and chapters across the country and partners with over 600 of the most

respected environmental groups at the local, regional, national and international level.

Mission Statement & Overview

The purpose of Environmental Federation of California (dba) EarthShare California is to

broaden the financial support of its diverse affiliated environmental and conservation member

groups, primarily via workplace fundraising.

State of EarthShare California Report 2

The mission is to protect, support and improve California's natural heritage of clean air, safe

water, diverse wildlife, and healthy communities and families by raising funds for leading environmental organizations.

EarthShare California is an umbrella organization of prominent environmental groups brought

together to raise funds in California. The organization’s main office is located at 870 Market

Street, Suite 703 San Francisco, California. The organization conducts fundraising throughout

the state of California. ESCA staff is strategically positioned in Northern and Southern

California.

Fiscal Viability

Overall the state of the federation is financially sound. There are enough funds on hand to

cover the organization’s financial obligations.

Compensation of Governing Body

ESCA is a non-profit organization registered under federal tax code 501(c) (3) and the State of

California; a volunteer Board of Directors is comprised of representatives from its member

groups and individuals from the community at large governs EarthShare California.

It is certified that EarthShare California’s board is directed by an active and responsible

governing body whose members have no material conflict of interest and the majority of whom

serve without compensation in directing the federation.

Executive Committee Board Officers March 2016 – March 24, 2017

Scott McIntyre, President Ted Schofield, 2nd Vice President

Pat Smith, Acting Secretary Toni Counts Rose, Treasurer

Ray Sullivan, 1st Vice President

Board Committee Chairs March 2016 –March 24, 2017

Paige Rogowski, Affiliate Relations Committee Scott McIntyre, Audit

Michelle Kremer, Personnel Toni Counts Rose, Finance

Board of Directors Meeting Schedule FYJuly 1, 2015 –June 30, 2016

Date

Time Location

November 13, 2015 2-4pm Conference call

February 12, 2016 2-4pm Conference call

March 11, 2016 8:30am–3pm HansonBridgett, LLP

425 Market Street, San Francisco,

California

June 24, 2016 2-4pm Conference call


EarthShare California Board of Directors

Mr. Craig Bansmer Mr. Alan Ehrgott At Large Member Director Affiliate Member Director Volunteer, Desert Tortoise Preserve Committee American River Conservancy Affiliate Relations Committee Member Executive Director 1844 N. Woodside Street PO Box 562 Orange, CA 92865 Coloma, CA 95613 [email protected] [email protected]

Ph: 714.924.6804 Ph: 530.295.2190 Term begin February 13, 2016 Term begin March 20, 2015 Term expires March 24, 2017 Term expires March 24, 2017

Ms. Nona Dennis Mr. John Dean At Large Member Director At Large Director Volunteer, Marin Conservation League Retired Fundraising Executive Secretary & Past President Chair, Gala Event Planning Committee 1623 A Fifth Ave 3850 W59th Place San Rafael, CA 94901 Los Angeles, CA 90043 [email protected] [email protected] Ph: 415.485.6257 Ph: 323.291.6660 Term begin March 21, 2014 Term begin February 13, 2016 Term expires March 11, 2016 Term expires March 24, 2017

Ms. Michelle Kremer Ms. Paige Rogowski Affiliate Member Director Affiliate Member Director

Surfrider Foundation Anza Borrego Foundation

Chief Operating Officer Executive Director

PO Box 6010 587 Palm Canyon Drive, Ste. 111

San Clemente, CA 92674-6060 Borrego Springs, CA 92004 [email protected] [email protected]

Ph: 949.492.8270 Ph: 760.767.0446 x1001

Term begin March 21, 2014 Term begin March 21, 2014

Term expires March 23, 2018 Term expires March 23, 2018

Mr. Scott McIntyre Ms. Toni Counts Rose At Large Director At Large Director Planned Solutions Southern California Edison 9250 Silverwood Court 18111 Erik Ct Unit 444 Granite Bay, CA 95746 Canyon Country, CA 91387 [email protected] [email protected] [email protected] [email protected] Ph: 916.580.9750 C: 805.338.0395 Term begin March 21, 2014 Term begin March 20, 2015 Term expires March 23, 2018 Term expires March 24, 2017

mailto:[email protected]


Mr. Ted Schofield Mr. Ray Sullivan

At Large Member Director At Large Member Director

Volunteer, San Gorgonio Wilderness Assoc. Volunteer, Bay Area Ridge Trail Council

7325 Greenbrier Pl 149 Terrace Drive

Highland, CA 92346 San Francisco, CA 94127-1529

[email protected] [email protected]

Ph: 909.649.1668 Ph: 415,681.4256

Term begin March 21, 2014 Term begin March 20, 2014


Ms. Karin Lin Mr. Kevin Connelly

Affiliate Member Director Affiliate Member Director

The Nature Conservancy, California Earth Island Institute

201 Mission Street, 4th Floor 2150 Allston Way, Ste. 460

San Francisco, CA Berkeley, CA 94704-1375

[email protected] [email protected]

Ph: 415.281.0431 Ph: 510.859.9155

Term begin July 1, 2015 Term begin March 11, 2016


Ms. Vicki Nichols At-Large Member Director Volunteer, Marin Conservation League 117 Caledonia Street, #C Sausalito, CA 94965 [email protected] Ph: 415.272.9755 Term begin March 11, 2016 Term expires March 23, 2018

Certifying in Compliance With All Statutes

EarthShare California certifies that it is in compliance with all statutes, Executive Orders and

regulations restricting or prohibiting US persons from engaging in transactions and dealings

with countries, entities and individuals subject to economic sanctions administered by the US

Dept. of the Treasury’s office of Foreign Assets Control (OFAC).

Activities and Supporting Services

EarthShare California member groups address the full spectrum of environmental issues

ranging from local, regional, national and broader global environmental concerns. EarthShare

California provides a vital link between its fundraising campaigns and the environmental

community, bringing the environmental message of its member groups to over one million

employees in diverse workplaces throughout California.


Since its inception in 1982, it is estimated that ESCA has raised more than $30 million for the

environment. Through the programs of its member groups, ESCA directly supports both the

public and corporate interest of creating and sustaining healthy communities, by fostering and

enabling the movement towards a cleaner environment.

A few examples of our members’ recent accomplishments, listed below, demonstrate the

federation’s ability to successfully sustain the implementation of program and service objectives

in the areas of health, promotion of “green” communities and education, address global

warming, protect wildlife and preserve habitat and open spaces.

Earth Island Institute’s New Leaders Initiative, since 2000, has honored six dynamic, young

activist leaders ages 13- 22 with the annual Brower Youth Award – the top prize for bold, young

environmental leaders in North America. On October 20, 2015, at the16th annual BYA honors

went to:

• Ryan Camero for using creative storytelling to chronicle a fragile delta and the

communities that surround it

• Jess Grady-Benson for fostering the fossil fuel divestment movement on college

campuses

• Dyanna Jaye for mobilizing a civically-engaged environmental youth coalition

• Celeste Tinajero for making impactful and lasting changes through greening a high

school campus

• JP Viñals for energizing a campaign for urban green spaces through youth organizing

• Kate Weiner for creating an alternative space for environmental engagement through a

student-run arts collective.


Organic Farming Research Foundation funded 326 research grants to organic researchers

and farmers totaling more than $3,000,000. The organization’s mission is to bring more farmers

and acreage into organic production.

San Diego Coastkeeper removed over 10,000 bottle caps from San Diego beaches. These "conveniences" harm our underwater friends who mistake them for food. Grab a reusable water bottle and break that nasty convenience addiction once and for all.


Desert Tortoise Preserve Committee protects the endangered desert tortoise and its

ecosystem by preserving habitat in California’s Mojave and Sonoran deserts and by fostering

research and education.

Save the Bay Volunteers planted 3,200 native seedlings at the Oro Loma Horizontal Levee

Project. Save The Bay will plant 70,000 seedlings at this site over the coming months.

Slide Ranch emphasizes hands-on experience and exploration of their working farm and

surrounding countryside. Campers are encouraged to touch, taste, smell, hear, observe, and

ask questions. Campers milk goats, collect eggs from chickens and ducks, card and spin wool,

create nature-based crafts, learn to compost, plant seeds, harvest and cook from our organic

garden, and explore the tide pools and trails of our beautiful coastal wild lands.


Urban Corps of San Diego – Organization’s accomplishments were: 61 youth graduates with

a H.S. diploma and green job skills, 2,382 trees planted in San Diego County, 1,946,749 square

feet of graffiti removed, 1,097,459 pounds of recyclables collected, 5,805,000 square feet of

habitat restoration completed, 5,000 linear feet of park trails built and 31,560 hours of volunteer

service contributed to San Diego

Management and Administration

The management team is composed of Patricia Smith, Executive Director, and Isidro Sterling,

Interim CFO/IT Manager. Ms. Smith has over 20 years in management, sales, and operations

working in both the private and nonprofit sectors as a savings and loan bank retail manager,

account executive, and executive director. Ms. Smith holds an MBA from University of Phoenix,

a BA in History from California State University, Northridge, and a Certificate in Nonprofit

Fundraising from California State University, Long Beach.

Mr. Isidro Sterling has extensive experience in managing an organization’s full accounting

cycle, including compliance with reporting requirements of the Financial Accounting Standards

Board FAS 116 “Accounting for Contributions Received and Contributions Made” and FAS 117

"Financial Statements of Not-for-Profit Organizations". He holds a BS in Finance/Accounting,

certificates as CPA, electronic document management, client server technology, SQL Database

Programming, TCP/IP, C++, PERL and is fluent in Spanish and English.

EarthShare California Management & Chief Administrative Staff

Ms. Patricia Smith Mr. Isidro Sterling

Executive Director Chief Financial Officer/IT Manager

Mr. David Coyle Ms. Tanya Heravian

Associate Director Manager, Operations & Engagement

Ms. Tania Katbi

Development Director/Regional Manager

Southern California Region


Membership Requirements

Affiliated member groups must meet membership requirements as stated in the Bylaws of

EarthShare California and are vetted annually in February of every year.

Fiscal and financial operational requirements are a demonstrated history of fiscal accountability

and responsibility, an audit of fiscal operations to be completed by an independent certified

public accountant in accordance with Generally Accepted Auditing Standards (GAAS) and

have administrative and fundraising expenses (overhead) not more than 25% of revenues.

Member organizations (39 as of June 30, 2015) are required to perform a minimum of 30

service hours per year. These can be earned by doing workplace presentations, participating

on board committees, new business development, serving as Affiliate Member Director and

helping with administrative tasks or projects as needed by ESCA. Service hours keep overhead

low and, particularly through campaign presentations, encourage donors to give more.

In addition to service hour requirements member organizations are required to:

• Submit annual materials

• Attend the Annual General Meeting

• Vote in the annual elections

• Submit current 990 and audited financial statements

• Assist with new business development

The financial penalty for non-fulfillment of service hours is $150 per hour billed to each group in

deficit. Groups not performing their annual service point requirements will be put on probation,

pending review by the Affiliate Relations Committee, membership may be terminated.

EarthShare California Membership Dues & Service Charge Policies

Joining Fees are $5,000 plus 10% of respective calculated member distributions during the first

three years of membership. During the fiscal year of July 1, 2014 through June 30, 2015 there

were no new members accepted.

Federation Expense and Designation Policy

The administrative, campaign, and program expenses of EarthShare California are shared

proportional to each member’s respective share of net campaign revenue, except as

restricted by limitations imposed by a limited number of campaigns.

Management/administrative, program and fundraising rate: 32%

EarthShare National affiliation fee: 4%

Pledge revenue shrinkage percentage: 6%

Administrative and fundraising rate for the CFC (combined federal campaign): 11.14%

Non-affiliated agencies fee/no affiliation fee charged: 10.0%

Undesignated split: 60%/EarthShare California, 40%/EarthShare National

The audited financial statements, of EarthShare California, cite that the federation is honoring

designations made to each member organization by distributing a proportionate share of

receipts based on donor designations to each member.


Functional Allocation of Expenses

EarthShare California reports its expenses on a financial basis as follows:

• Program services include specific campaign actives and educational

efforts on the part of ESCA, as well as activities dealing with and

providing information and referral for affiliated member groups.

Additionally, program services also include expenses related to the

management of existing campaigns.

• Fundraising represents the costs related to attracting new campaigns,

raising funds for internal operations. Fundraising activities include

soliciting gifts, special events, writing grants, direct mail solicitations,

cause marketing, online fundraising, marketing and communication with

current and at-large donors, and corporate engagement.

• General and administrative relates to all overhead activities, including managements and general aspects that are not related to fundraising or program activities.

Sale/Lease of Contributor Information

EarthShare California certifies that the organization does not sell or lease the names

or information provided by donors.

Distribution of Funds

Donor contribution revenue is recognized as pledges are made based on donor pledge forms or

employer summarized information. For campaigns where there is no such information, pledges

are estimated based on prior year actual collections and allocations. Contributions are allocated

to affiliated organizations to the extent the donor designates a preference.

Each member organization is distributed a proportionate share of receipts based on donor

designations to each member. Pledges are treated as unconditional promises to give and are

expected to be collected within one year.

Member Organizations receive income designated to their agency and share equally in the

undesignated income (any donations to EarthShare California) less ESCA’s admin fees/dues

as approved by the Board of Directors.

Affiliated organizations also receive contributions directly from donors or third-party processors

that are attributable to EarthShare California’s annual workplace campaigns. Affiliated member

groups are required to send these contributions to ESCA so that these amounts may be

recognized in the gross campaign results and distributed appropriately.

Penalty Fees are assessed to Member Organizations that do not complete the 30-hour service

requirement at a rate of $150 per hour not fulfilled. (FY July 2013- June 30, 2014)


Historical Overview of Revenue from Workplace Campaigns

EarthShare California’s revenue declined due to the economic downturn, impact upon public

sector campaigns, government shut down, changing environment of workplace giving,

shrinkage and the use of for profit vendors in the processing of pledges and direct payment of

designations. Therefore, the need to increase the administrative fee, from 25% to 32%, charged

to cover the organization’s operating expenses.

According to an economic forecast released, by the Los Angeles County Economic

Development Corporation, California employers are projected to keep hiring over the next two

years but at a slower pace than in 2015. It is expected that the state will add 650,000 in 2016

and 2017 and lowering the unemployment rate to about 5.9% by 2017.

Actual revenue increase or decline from existing campaigns over a 4 year campaign season:

Campaign year Revenue Increase/Decline

2011 $1,321,152 -8%

2012 $1,133,660 -14%

2013 $1,162,651 +3%

2014 $1,033,002 -11%

Strategies and Accomplishments

Strategy to increase revenue in existing campaigns by 11%

The strategy employed to increase revenue, in existing campaigns, by 11% targeted specific

campaigns that could be returned to the 2010 pledge level. Criteria for targeted campaigns

were employee base, ability to increase participation rate, well managed campaign from the top

down, and overall commitment to giving.

New Business Development

The strategy for new business development entails corporate engagement. Corporate

engagement involves networking, employee engagement projects, Green Team Roundtable,

expanding relationship with specific targeted campaigns and creating partnerships.

Corporate & Employee Engagement

Sensus conference participants were given a coin with a code to access a webpage. At that

page, they selected one nonprofit project to support. A company called Causora set up the

promotional page, tracking and distribution.

Once the project profile has been created, it will remain on the Impact Project site, and other

companies can fund it as well. Sensus anticipates roughly $10K in total support will be

distributed between four projects.

The four projects selected were:

• Northeast/Air : Replanting The Appalachian Forest, Pennsylvania: Arbor Day

Foundation


• Southeast/Wildlife : NC Native butterflies, bees and other pollinator species: North

Carolina Wildlife Federation

• Northwest/Land: Plant the seeds for a more sustainable future: Mountains to Sound

Greenway

• Southwest/Water Scarcity: Water Conservation Career Program: San Jose

Conservation Corps

Networking events attended

Connecting and meeting with potential contacts is very important in developing business

relationships and creating a constant flow of quality potential targets for new business. The goal

is attendance at 21 networking events throughout the fiscal year.

The criteria for determining what type of networking event to attend:

Whenever possible review the list of attendees

Attendance at speaker series events at colleges or universities such as Stanford, UCLA, Harvey

Mudd, etc.

Green or sustainability forums

Bank networking mixers

Corporate philanthropy events

Chamber of commerce breakfast or mixers

Green Teams Roundtable

The “Roundtable” presents an opportunity to engage and connect with corporate sustainability

directors from the private sector as well as the public sector. This is a ‘soft sell” way to engage

and build relationships. The objective is to have three Green Team meetings during the fiscal

year.

Summary of Financial Activities (as of June 30, 2014)

Certification in Accordance with GAAP

The Executive Director (Patricia Smith) as EarthShare California’s certifying official certifies that

the federation accounts for its funds on an accrual basis in accordance with Generally Accepted

Accounting Principles (GAAP) and has an audit of its fiscal operations completed by an

independent certified public accountant in accordance with GAAP.

Assets

Cash and cash equivalents $840,775

Pledges and grants receivable, net $694,462

Accounts receivable, net $1,220

Prepaid expenses and deferred charges $13,568

Property and equipment, net $3,320

Other assets $2,760

Total Assets $1,556,105

Liabilities

Accounts payable and accrued expenses $106,988


Campaign funds payable $1,081,076

Other liabilities [Affiliation fee payable] $82,159

Total Liabilities $1,270,223

Net Assets or Fund Balances

Unrestricted net assets $282,171

Temporarily restricted net assets $3,711

Total Net Assets $285,882

Total Liabilities and Net Assets $1,556,105

Revenue and Expenses (for the year ending June 30, 2014)

Public Support and Revenue:

Amounts raised in campaigns $1,172,917

(Less campaign expenses and allowance for uncollectible pledges)

Less amount designated to member charities

$582,086

Public Support Designated to EarthShare California

$532,664

Administrative charges for raising funds on behalf of others $410,930

Other revenue $37,673

Net assets released from restrictions:

Satisfaction of purpose restrictions

$1,000

Total Public Support and Revenue $992,914

Expenses

Total program services $859,841

Management and general $122,896

Fundraising $47,944

Total Expenses $1,030,681

Change in unrestricted net assets ($38,767)

Changes in temporarily restricted net assets

Grant revenue $0.00

Net Assets released from restrictions: ($1,000)

Satisfaction of purpose restrictions

Change in temporarily restricted net assets $1,000

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