The state of the not-for-profit industry in 2014

FIRST ANNUAL REPORT 2014

Contents

1 Introduction

2 In focus: Social services organizations How social services organizations can boost funding your mission

3 Resourcefulness, creativity can help further your mission

6 In focus: Religious organizations 7 ways religious organizations can improve the bottom line

7 New complexities mean boards must innovate

9 Building a culture of ethics is more important than ever

12 In focus: Private foundations Flat tax may level playing field for private foundations

13 Executive compensation: Governance in a new era

16 In focus: Cultural institutions Museums and other cultural institutions exhibit new strategies

17 How enterprise risk management can help not-for-profits thrive

20 In focus: Trade associations Business, tax considerations drive dues, nondues revenue

21 5 steps for a high-performing internal audit function

24 In focus: Jewish/Israeli organizations 3 steps to good governance overseas

26 About Grant Thornton’s services for not-for-profit organizations

FIND THE REPORT ONLINERead and share The state of the not-for-profit industry in 2014 at grantthornton.com/StateofNFP2014

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The articles stem from knowledge gained through our professionals’ experience with their clients. Rather than theoretical pieces, they are the result of practical, hands-on experience gained by more than 350 Grant Thornton LLP professionals serving over 900 not-for-profit clients. These insights are intended to be used by you, board members, executives, management and other leaders in the not-for-profit industry.

We are committed to helping “organizations that do good” achieve their mission. We understand that protecting your reputation and operating sustainably are essential to your organization’s ability to achieve its mission and further its cause. Our not-for-profit experience is deep, and we offer it to assist you with the challenges addressed in this report.

Speaking on behalf of the partners and professionals of Grant Thornton’s Not-for-Profit practice, it is my great honor to present the first annual State of the not-for-profit industry report. I hope you find it to be of value, and I welcome your feedback.

Sincerely,

Mark OsterNational Managing Partner Not-for-Profit and Higher Education Practices

mark.oster@us.gt.com

The not-for-profit industry is in flux for all sorts of reasons — changes in the economy, technology, demographics and regulation, to name a few. The not-for-profit organizations that grow and thrive will do so because they have adapted and planned for a future that looks very different from their past. This publication is meant to help our not-for-profit readers consider the issues that will influence their forward-thinking activities. This is our first-ever State of the not-for-profit industry report. Our intent is to go beyond the thought leadership we provide via articles, webcasts and training that address issues relevant to management and trustees. Instead, in this publication we focus on issues that are specifically trending for this sector. As leaders in the not-for-profit sector, it is our responsibility to provide these valuable insights to the marketplace we serve.

Within these pages you will find articles that apply to the not-for-profit industry in general, as well as specific features for six of the key sectors that comprise our industry practice — social services organizations, trade associations, religious organizations, cultural institutions, private foundations, and Jewish and Israeli organizations (we cover our seventh sector, higher education, in a separate publication, The state of higher education in 2014 — see grantthornton.com/HigherEd2014). Topics include board governance, risk management, ethics, and compensation and benefits. Issues and challenges are described, and, as importantly, solutions and alternative approaches are offered.

Introduction

The state of the not-for-profit industry in 2014

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The state of the not-for-profit industry in 2014

• Become more efficient by streamlining your operations. Look closely at your breakdown of functional expenses — specifically spending on programming versus administrative tasks and fundraising. If your percentages don’t align with comparable not-for-profits, you need to understand the cause and implement internal improvements to enhance efficiency. See if the personnel structure is right for an organization of your size, and make sure management understands and effectively manages the organization’s finances. Investigate opportunities to redesign processes; check to make sure you have the right internal controls so that funds aren’t misappropriated or billings missed, and determine whether administrative tasks are being duplicated (and thus costing you more money and time) or need streamlining.

• Partner with another organization. If two not-for-profits move into one facility, they can both reduce administrative costs (i.e., office space, support staff, shared services). Alternatively, consider consolidating back-office operations. Joint grant applications can also be a good way to merge efforts. Many funding agencies welcome this approach, which may yield greater financial outcomes. Partnering with a for-profit can be equally beneficial. For example, if you have a for-profit tenant running a visitors’ gift shop, your organization benefits from royalty or rental income, while the shop benefits from the draw of your constituents. Just remember, trust and timing are critical for a winning collaboration.

Amy Henselin, Audit Partner, Not-for-Profit and Higher Education Practices, Social Services Sector Leader

Revenue sources for social services organizations are drying up. The sector has been hit especially hard by declining federal support and by wary donors, foundations and corporations that continue to reduce or delay their charitable contributions.

With demand for services from a growing population needing basic support like shelter, food and health care increasing, the result — diminished funding — is nothing short of a crisis.

So how can a social services organization continue to help its community?

Although there is no silver bullet that can solve the financial plight, social services not-for-profits can promote change from within that in turn will give them an edge in the fight for funding. Here are some strategies that can help:

• Meet higher donor expectations by delivering the best outcomes possible. With the understanding that your organization is being held to ever greater standards of performance and that you are competing for donors, it is essential that your organization instill a culture of continuously raising the bar toward mission achievement. This culture must translate into actions that ensure the best results possible.

• Clearly communicate your success. Show that you are a good steward of the funds you receive, and promote transparency regarding how money is being spent. For example, issue an annual report to your contributors to explain how funds were used and what impact your organization has had on the community.

In focus: Social services organizationsHow social services organizations can boost funding

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Invest in key strategic marketsWith growing emphasis on the efficient use of resources, not-for-profit organizations are seeking to expand their impact and grow revenue by deploying resources toward “highest and best use” areas. Some are venturing into new territories to increase engagement with constituents, prospective donors and local communities. Beyond simply replicating existing operational models in new geographies, these not-for-profits are performing sophisticated market analyses to determine which territories maintain the potential to deliver long-term strategic value.

One organization expanding beyond its traditional footprint is Minneapolis-based Be The Match, a not-for-profit that operates the world’s largest and most diverse marrow registry. The organization recently entered three new cities, anticipating greater access and proximity to potential donors in those locations, and utilizing walk-run events to build awareness and raise funds. Furthermore, since the core mission relies on volunteers — those who join the registry and are willing to donate either bone marrow or peripheral blood stem cells — recruitment of registry participants is a key objective. In addition to increasing the number of people on the registry, Be The Match is keenly focused on broadening the level of ethnic diversity of registered individuals to better serve underrepresented populations. Expansion enables the organization to get closer to populations demographically aligned with these recruitment objectives.

Resourcefulness, creativity can help further your mission

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Joseph Mulligan, Business Advisory Services Manager, Not-for-Profit and Higher Education PracticesAdam Day, Business Advisory Services Senior Consultant, Not-for-Profit and Higher Education Practices

If there’s one lesson that not-for-profit organizations have learned in recent years, it’s that resources are finite and must be allocated prudently. In its 2014 annual survey, the Nonprofit Finance Fund examined the financial state of more than 5,000 not-for-profit organizations. The survey found that the vast majority (80%) of not-for-profits are experiencing increased need, but a record 56% of organizations were unable to meet that demand in 20131.

In this uncertain operating climate, organizations are concerned not only with generating additional revenue, but also with how to deploy limited resources to further the mission and ensure long-term sustainability. They are also deciding how to satisfy increased constituent expectations for program growth and service delivery. Not-for-profits must quickly adapt to find new and creative ways to respond.

1 McCambridge, Ruth. “Nonprofit Finance Fund Survey Points to Tough Road Ahead,” Nonprofit Quarterly, April 7, 2014. See www.nonprofitquarterly.org/policysocial-context/23976-nonprofit-finance-fund-survey-shows-troublesome-landscape.html for more details.

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Creatively collaborate with for-profit partnersA twist on the traditional relationship between donors and not-for-profit organizations is the increasing popularity of providing support in nonmonetary ways. For-profit corporations and their leaders are increasingly aware of their social responsibility and are seeking to align philanthropic pursuits with their core business, to give back beyond funding, and to establish employee community service programs. While not-for-profits stand to greatly benefit from this heightened enthusiasm, it’s up to not-for-profit leaders to help identify how these partnerships should be designed and to cultivate relationships with strong win-win potential. In the end, such outcomes could far outweigh those that could otherwise be generated by an unrestricted cash gift.

An example is Boeing’s collaboration with Iraqi Airways and Another Joy Foundation, a Las Vegas-based not-for-profit whose mission is to deliver joy, hope and humanitarian aid to children and families in need. When Boeing delivers a new plane to Baghdad-based Iraqi Airways, it transports a shipment of toys from the not-for-profit to orphaned children in Iraq2. With virtually no cost to the for-profit partner, corporate social responsibility is achieved and the foundation’s cash resources are preserved for other priorities.

The power of creativity is also evident in Accion U.S. Network’s collaboration with The Boston Beer Company. Accion, a not-for-profit small business lending and micro-lending network, has partnered with the owner of the Samuel Adams brand as part of its Brewing the American Dream program3. In addition to providing funding, The Boston Beer Company asks its employees to provide coaching and industry advice to entrepreneurial food, beverage and brewing industries within Accion’s network. This expertise not only provides entrepreneurs a better chance of succeeding, but also enables The Boston Beer Company to enhance employee commitment and engagement while demonstrating strong corporate citizenship.

2 PR Newswire. “Boeing, Iraqi Airways Partner with Non-Profit Organization to Bring Smiles to Children in Iraq,” MarketWatch Inc., March 25, 2014. See www.marketwatch.com/story/boeing-iraqi-airways-partner-with-non-profit-organization-to-bring-smiles-to-children-in-iraq-2014-03-25?reflink=MW_news_stmp for more details.

3 See btad.samueladams.com/OurPartners.aspx for more details.

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Quantify and clarify productivity, outcomes and social impact Knowing exactly how donated funds are utilized is the cause for increasing demands by institutional and individual donors for greater transparency and accountability. To demonstrate the true value of their programs and services, many not-for-profits are going beyond the traditional direct measures of impact, which have included simply quantifying the number of individuals served or providing an example of what donation dollars can buy. Instead, they are highlighting outcomes that may not be immediately obvious, making a proactive effort to describe their societal contributions to ensure that donors understand how the organization operates and are motivated to continue giving.

For example, in its periodic report, Catholic Impact4, the Archdiocese of Washington describes its key contributions in the areas of education, social services and health care, such as how many children it educates in its schools and how many low-income patients are treated at its health care facilities. It also quantifies how these services generate direct financial savings to taxpayers and local communities. The report sheds light on programmatic details that may not align with donors’ and society’s preconceived notions, such as the fact that an estimated 85% of the individuals receiving social services provided by the Archdiocese of Washington’s Catholic Charities are not Catholic. Through this effort to explain outcomes and, where necessary, to dispel misconceptions, the archdiocese is not only communicating a clear value proposition and demonstrating accountability, but also helping to manage public perception and broaden support.

Plan proactively for continued mission success Today’s not-for-profit leaders must employ strategic and creative approaches in response to financial realities and growing demands for services. In most cases, it is no longer enough to build on past success. Rather, leaders need to examine and be prepared to alter their operating models even if they are currently working well. While change can be daunting for an industry that is already resource-constrained, it can also bring exciting new opportunities to expand impact and maximize value creation. As mission-driven organizations become more willing to change outmoded industry practices, they will be better equipped to increase the scope and scale of their services.

4 See site.adw.org/pdfs/Catholic-Impact-2012.pdf for more details.

4. Revenue models. Explore ways to increase revenues while being respectful of your constituents’ own hardships. Potential solutions include enhancing congregational assessments, adjusting membership dues models and pursuing capital campaigns. Dedication to faith and mission requires a commensurate focus on revenues to make certain that key programs and services can continue for the long term.

5. Internal controls reviews and fraud prevention. Reduce fraud risk and the potential for malfeasance by proactively examining internal controls. This is one of the best ways to protect your institution’s reputation. Recent scandals and the media attention they’ve attracted show the potential for damage to a good name, as well as the financial backlash in lost donations and funding that can result.

6. Revenue inflows and cash outflows. Map revenue inflows to organizational expenditures by area to consider whether unprofitable programs should continue to be maintained or require alternation. In addition, make the match to guarantee that constituents’ dollars support offerings they value.

7. Financial modeling and projections. Develop multiyear financial projections to provide for a longer planning horizon. This allows you to examine underlying cost structures and trends, consider potential “what-if” scenarios, and make any necessary adjustments to improve your organization’s financial performance in future years.

Rich Dean, Audit Partner, Not-for-Profit and Higher Education Practices, Religious Sector LeaderMatt Unterman, Business Advisory Services Senior Manager, Not-for-Profit and Higher Education Practices, Religious Sector Chair

While religious organizations will always be primarily focused on their missions and constituents, lately they have needed to put unprecedented focus on their financials. From houses of worship to religiously affiliated social services associations to fraternal organizations, all have been hit by the economy and current fiscal realities.

Whether your organization is still climbing out of the recent recession or has returned to more solid footing, the following activities can help you achieve the financial performance needed to stay viable and to sustain your mission:

1. Compensation and benefits. Although traditionally “off the table,” it is time to take a hard look at this area and examine everything from clergy retirement benefits to lay employee health care contributions.

2. IT enhancements. Invest in system upgrades to improve management reporting, and automate processes to increase efficiency and effectiveness. If your organization has postponed investments in its system for a number of years, enhancements are overdue.

3. Process efficiency. Review internal administrative functions for potential improvements in efficiency, effectiveness and controls. If processes have not been examined or changed for many years, or if they have organically evolved, you will likely find they can be improved and executed more efficiently.

In focus: Religious organizations7 ways religious organizations can improve the bottom line

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For the sake of an organization’s long-term ability to achieve its mission, board members must meet expectations of competency and transparency to ensure a strong organizational reputation built on sound governance and the ability to execute.

Board involvement begins with information and connectednessTo effectively provide oversight and thought leadership to executives and senior administrators, board members must be both well-informed and willing to engage in constructive criticism, to ask “the tough questions.”

Board members need to be assertive in learning about the technological and service delivery changes reshaping the not-for-profit industry. They must have access to needed information and not fall prey to the intermittent nature of board work. Board engagement isn’t effective when carried out in quarterly increments of presentations and board reports. It occurs when there is a connectedness to the organization through ongoing communication and work. This means the board’s work and reporting has to overcome the conventional tendency toward committee silos of knowledge and action; real communication must be established among the entire board and between the board and the management team.

One tool that high-performing boards use to achieve these goals is a board portal that provides important real-time organizational documents, industry reports, news articles and committee work products, along with a forum for questions and comments.

Mary Foster, Managing Director, Not-for-Profit and Higher Education Practices

Some things don’t change: Not-for-profits have missions to fulfill, and their boards are responsible for overseeing mission fulfillment. Some things do change: Board governance must be focused more than ever on strategic direction, ethics and outcomes. The recent recession — which wreaked as much havoc on the not-for-profit sector as on the rest of the U.S. economy — as well as federal sequestration and reduced state budgets have created great challenges. With financial and competitive pressures heightened, greater transparency is required.

In addition to outside challenges, a succession of not-for-profit scandals and fraud has captured public and regulatory attention. Organizational actions — ranging from raising funds, setting compensation, communicating mission goals and measuring outcomes to structuring third-party arrangements and reporting results— are under scrutiny. Trust has been seriously eroded.

New complexities mean boards must innovate

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Identify issues and risks, and keep them in checkIt’s not always easy to recognize when an issue has the potential to become a significant matter. One purpose of increased knowledge and communication is building the board’s ability to identify risks as they arise and to work with leadership to respond. Keeping risks, as well as strategies and priorities, in perspective leads to a focused, responsive and collaborative governance process. Reputation and effective execution depend on it. For further guidance, see www.grantthornton.com/nfp-reputation for the article, “Safeguarding your nonprofit’s reputation and ethical culture.”

Change might include governance structure As boards evaluate and respond to governance questions, they might determine that it is time to look at the organization’s governance structure and to realign board committees and responsibilities so they are focused on the core mission and risks. Concentrating solely on operations is not useful in today’s environment.

In its oversight role, the board must make sure that policies and practices are in place to ensure that day-to-day activities do not compromise the organization’s reputation or its ability to achieve its mission. Ensuring an ethical environment that discourages inappropriate behavior and seeks accountability of management to perform at a high level of excellence is one of the most important things a board can do to contribute to long-term organizational success.

GOVERNING EFFECTIVELY: 6 ESSENTIAL QUESTIONS TO ASK LEADERSHIP 1. Risk identification and management program — If your organization has not yet embarked on a formal enterprise risk

management process, what is management doing to monitor the high-level strategic, operational, financial, technological, personnel and compliance risks that can impede the organization’s success, and erode marketplace trust and reputation?

2. Ethics — Has your organization defined and implemented ethics policies so that a culture of appropriate behavior is embedded in administrative, governance and programmatic policies and practices?

3. Conflicts of interest — Is there sufficient organization- and boardwide awareness of emerging best practices in the areas of identifying, vetting and managing conflicts of interest?

4. Long-term market position and vision — Has management articulated the threats and opportunities confronting the organization over the next three to five years relative to market standing, market niche and financial resources?

5. Internal operating effectiveness — Has management identified internal strengths that can be leveraged and weaknesses that should be remediated to enhance operational effectiveness?

6. Integrated financial plan and dashboard — Has your organization developed a strategic multiyear financial plan that integrates key financial trends and results with strategic initiatives? Such a dashboard report should provide an organization-based view of operations, endowment, capital investment, mission success, and other key financial and nonfinancial drivers.

The critical work of board committees should be structured around financial and human resource stewardship, program achievement and outcomes, ethics and board development, and strategic directions and options. While focusing on fundraising, investments, audit and compliance is important, the more comprehensively that a board views its role and committee work is structured, the more synergy will increase and issues will be identified.

Committee-led discussions at board meetings should similarly take on strategic questions and issues, and not be bogged down with standard “reporting out” of committee work.

The result will be a greater contribution by the board to the goals, achievements and outcomes of the not-for-profit.

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Integrity depends on attitude and policyEach year the Ethics Resource Center conducts a survey regarding ethical behavior within organizations. The latest survey confirms the importance of culture, tone at the top and governance as critical factors5.

Governance makes a substantial impact, either negatively or positively. Poor governance compromises organizational ethics, while effective governance increases the likelihood of ethical behavior. An appropriate tone at the top, along with a well-implemented ethics program, is essential to a strong ethical culture.

Ethical behavior will prevail if the organization’s leadership, especially the board and senior management, consistently communicate the importance of ethical conduct and exhibit those behaviors every day.

Larry Ladd, Director, Not-for-Profit and Higher Education Practices

“It takes 20 years to build a reputation and five minutes to destroy it.” This quote, attributed to Warren Buffett, is a stark reminder of the fragility of a reputation and the vigilance required to protect it. For not-for-profit organizations, reputation is the asset that matters most. It represents the outcome of all the work done on behalf of the organization’s mission. But a reputation can be severely affected by just one incident. Consider the damage done to the American Academy of Arts & Sciences over its president’s misrepresentation of her degree and her excessive compensation5.

This is one of many recent embarrassing disclosures among not-for-profit organizations — CEOs discovered to have committed forgery, managers charged with embezzlement or other financial misconduct, colleges reporting distorted information about SAT/ACT/LSAT student scores or employment records of graduates, and whistleblowers fired.

Building a culture of ethics is more important than ever

5 Wallack, Todd. “Academy faults former leader on credentials, salary,” The Boston Globe, March 31, 2014. www.bostonglobe.com/metro/2014/03/31/american-academy-arts-sciences-releases-critical-report-former-president/GtIvJkEf95aVfk7nU96pdN/story.html for more information.

6 Ethics Resource Center. National Business Ethics Survey of the U.S. Workplace, Feb. 4, 2014. See www.ethics.org/resource/national-business-ethics-survey%C2%AE-us-workplace for more information.

“IT TAKES 20 YEARS TO BUILD

A REPUTATION AND 5 MINUTES TO

DESTROY IT.”— Warren Buffett

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Leadership. The president or executive director, board members and senior management all need to lead by example, consistently adhering to the highest standards. When issues arise, take responsibility for making difficult decisions. Be transparent about organizational performance, keep promises and make decisions openly. And it’s always wise to avoid any behavior that wouldn’t look good under the media spotlight.

Consistency. Exceptions such as special treatment, management overrides and side agreements have a corrosive effect on an organization’s culture. Apply policies and practices uniformly.

Accountability. Everyone must be held accountable for his or her conduct. Take swift and fair action when misconduct occurs, and accept appropriate organizational responsibility. Similarly, visibly reward performance that demonstrates high ethical standards.

6 key elements make up an ethical culture

Formal policies and procedures. Explicitly document ethics policies. Establish an ethical code of conduct; and conflict-of-interest, whistleblower and transparency/disclosure policies. Implement a separate set — an ethical conduct code and a conflict-of-interest policy — specifically geared toward senior management and key employees, and another set for board members.

Monitoring. Monitor compliance with procedures that include effective internal controls, periodic signing or electronic acknowledgment of policies, and prompt action when issues arise. Measure employee beliefs and attitudes about the ethical culture; anonymous surveys with results publicized and acted upon can do this effectively.

Communication. The mantra for any board member or senior executive should be “communicate, communicate, communicate.” Consistently include references to ethical standards and conduct in internal meetings, speeches, blogs and all other communications. Use issues as teachable moments, and honor those who report misconduct.

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HR. Are hiring, evaluations and firing based on performance, or are other factors involved? If there are considerations beyond performance, make them explicit and consistent with the organization’s mission so they don’t imply favoritism or inequality.

Globalization. What is appropriate behavior in countries whose cultural values differ from yours? Build understanding into policies.

Corporate social responsibility. How far should programs such as environmental sustainability go when costs mount up? Carefully weigh social fairness against organizational capacity.

Acting on an issue. When an ethical violation is uncovered, what happens next? Make sure policies address the chain of command and whistleblowing.

The reward is a strong reputation and a mission accomplishedSustaining an ethical culture requires work from everyone, but especially from senior leadership. Model and reinforce the best possible behavior to help everyone navigate any uncertainty and continue to support your organization’s mission. In addition to leaving no room for misconduct, promote doing right in everyday work life.

Gray areas prompt deep questioningSome ethical issues are clear-cut — perpetrating fraud, lying, falsifying records, invading privacy, and displaying overt racism and exhibiting other hate behaviors are obvious. But it is in the gray areas, where judgment is needed or values conflict, that board members and managers are most challenged.

Loyalty versus values. Do employees feel they can speak up without being viewed as a troublemaker when some values, moral or religious, are upheld while others are disrespected? Sometimes speaking up creates the appearance of disloyalty but serves the organization well in the long run.

Reality versus perception. What should be done when what is ethical to one person is unethical to another? When it comes to protecting your organization’s reputation, even the appearance of impropriety must be avoided.

Budgeting and financial reporting. Are forecasts too optimistic or too pessimistic? Do plans not show all the assumptions? Is bad news camouflaged in financial language? Coloring information is as wrong as outright misstating the facts.

Marketing. Do your marketing or fundraising materials accurately portray the organization, or does enthusiastic language misstate or misrepresent current circumstances? Truth in all areas is essential.

• Complicates tax planning. Calculating the distributions necessary for the lower tax rate is an uncertain proposition. The calculation is contingent on the foundation’s 12-month average asset balance, which can’t be calculated until the end of the year. It is also contingent on the foundation’s investment income, which often cannot be calculated until well into the next tax year, depending on the nature of the foundation’s investments, e.g., hedge funds. Private foundations end up having to divert a portion of their charitable dollars to attorneys or accountants who can help them meet the requirements for the 1% tax rate.

There are signs of positive changeA few years ago, the Obama administration proposed eliminating the two-tier excise tax system and replacing it with a single 1.35% excise tax rate on net investment income. While this solution would not achieve tax equity with other tax-exempt entities, it would provide private foundations with much-needed tax planning simplification and a lower tax exposure ceiling. In February 2014, representative David Camp, R-Mich., chair of the House Ways and Means Committee, proposed a flat rate of 1%.

If the IRS revises and redesigns the Form 990-PF, Return of Private Foundation, to bring the foundation sector’s governance and oversight responsibilities in line with the rest of the not-for-profit sector — as exemplified in the new Form 990 — it could provide the opportunity for the elimination of the two-tier tax system and the implementation of a much simpler flat tax rate.

Daniel Romano, National Partner-in-Charge, Tax Services, Not-for-Profit and Higher Education Practices

Private foundations are categorized as tax-exempt organizations, but they are not exempt from all taxes.

A private foundation is exempt from income tax on revenues related to its tax-exempt mission under Section 501(c)(3) of the Internal Revenue Code (IRC). However, it must pay an annual excise tax on its net investment income. Under the two-tier excise tax system implemented by Section 4940 of the IRC, a private foundation must pay an annual excise tax of 1% or 2% on its net investment income. The exact tax rate is based in large part on the foundation’s average payout rate over the previous five years.

The net investment excise tax was initially levied as a revenue generator to fund IRS activities in the not-for-profit sector, although it is unclear whether all such revenues are going to sector activities. Unlike their Section 501(c)(3) public charity counterparts, most private foundations do not actively engage in charitable endeavors. One of the costs exacted for that right to tax exemption is the excise tax.

While this rate may be the envy of corporate taxpayers, the two-tier excise tax system has had unintended deleterious effects on those in need and a charitable sector that relies on private foundation funding.

Negative effects of the two-tier excise tax: • Discourages liberal giving. Since the specific excise tax rate

— 1% or 2% — is contingent upon the foundation’s average payout rate over a five-year period, more giving means more taxes. When pleas for charitable funds are the most desperate — such as in the years following Hurricane Katrina — a private foundation may think twice about extending beyond its budgeted giving. Extended giving could increase its five-year average payout, exceeding the 1% tax threshold. The additional excise tax could decrease the amount available for charitable purposes.

In focus: Private foundationsFlat tax may level playing field for private foundations

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Ken Cameron, Compensation and Benefits Consulting Director, Not-for-Profit and Higher Education Practices

Attracting, retaining and engaging the executive talent necessary to achieve an organization’s mission is fundamental. Over the past several years, we have seen countless stories of for-profit and not-for-profit executive compensation packages deemed inappropriate by a host of constituencies. Recently, attention has intensified on how key employees are paid. As a not-for-profit organization facing ever greater scrutiny, it’s likely you can relate to these issues:

• The requirement for compensation transparency at an all-time high

• Evolving regulatory guidance on how to disclose granular elements of compensation

• Increasing numbers of executives required to have their compensation disclosed in public documents

• New requirements regarding the executive compensation decision-making process

• Shunning of perquisites and benefits that do not have an explicit business purpose

• Public comments by stakeholders, watchdog groups and regulators on seemingly excessive executive compensation

• Local law enforcement efforts directed at reining in excessive executive compensation through litigation or criminal sanctions

Executive compensation: Governance in a new era

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Because these issues directly affect not-for-profits, boards and executive leadership should have a laser-like focus on ensuring that their governance of executive compensation programs is reflective of best practices. Governance should not be limited to the CEO but instead should extend to the compensation of the entire C-suite, key employees and disqualified persons.

In a 2012 Grant Thornton LLP survey of our not-for-profit clients, 50% of boards reported reviewing compensation of only CEOs or executive directors, while just 36% reviewed the compensation of the entire C-suite.

These best practices can give your not-for-profit organization an edge in meeting expectations — and avoiding undue publicity:

• Independent formal compensation committee — Create a group responsible for overseeing appropriate and supportable executive compensation and benefits programs that are in your organization’s best interests and are aligned with its mission and strategy. Ensure a robust conflict-of-interest policy for all committee members.

• Form 990 disclosures — Make sure board members review Schedule J and keep supplemental disclosures about the compensation decision-making process accurate, clear and succinct.

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• Pay for measurable performance — Develop integrated pay-for-performance features through different elements of the compensation program. For example, ensure that the measurable goals and objectives driving salary increases are aligned with the organization’s strategic objectives and mission. Integrate them with performance-based variable pay programs (your short- and/or long-term incentive plans), and make sure that metrics designed across various executive roles support consistent behaviors.

Good governance is critical to implementing and maintaining an effective executive compensation program, and it will help you navigate this continuously changing landscape. The success of your compensation program depends on having the right structure, knowledge, process and communication.

• Business purpose rule — In addition to how much, compensation committees need to consider the link between total compensation and the business or mission purpose.

• Rebuttable presumption of reasonableness — The amount and design of total compensation opportunities provided to a broad constituency of leadership individuals need to be assessed by appropriate decision-makers, and compared with comparable market data. A formalized process for recording the final decisions also should be developed. Board members should be up-to-date on market practices and compensation levels; this information is available through not-for-profit compensation and benefit surveys. (See www.grantthornton.com/comp-benefitssvy2013 for Grant Thornton’s 2013 Not-for-Profit Compensation Survey; in fall 2014, see the 2014 survey.)

• Stakeholder optics — As compensation decisions are made, there should be a review of the implications of projected Form 990 disclosure of compensation elements. The board and compensation committee should factor this into their decision-making process and prepare responses in anticipation of stakeholder or media inquiries.

tickets are increasing in popularity among choosy patrons. Institutions are also beginning to deploy sophisticated analytical software to adjust ticket pricing based on current demand and past purchasing trends, similar to flexible airline or train seat pricing.

4. Pursue new revenue sources. Reconsider your funding models with an eye to competing alternatives for patrons’ attention, declines in donor numbers, downturns in collectibility of pledges, drops in unrestricted donations and diminished investment returns. Be active in initiating and following up on funding from government and foundation grants, major donors and alternative revenue sources. Include new retail offerings, special events, public-private partnerships, space rental and educational activities. Attract previously untapped patrons through branding activities, and innovative and stimulating presentations. For example, the Museum of Science and Industry in Chicago has a website that includes an Online Science section inviting visitors to interact with exclusive content. Site visitors will find games, apps, try-it-at-home experiments, videos and podcasts. With activities entitled Build a Roller Coaster, Chew or Die and Construct a Worm Farm, the website conveys an enticing picture of the museum’s mission and the prospect of an enjoyable time at the museum (see www.msichicago.org/online-science for details).

5. Rethink financial approaches. Economic uncertainty is forcing re-examination of financial strategies. Scrutinize your endowment management and spending policies, cost containment, debt restructuring, unrelated business income tax, pension plan modifications, insurance coverage, and internal controls over cash transactions and fraud prevention.

6. Face international concerns. When exhibitions and performances cross borders, a variety of issues arise. These include individual income tax matters, value-added tax rules and cultural disparities. Besides these challenges, museums have seen increased repatriation claims focusing on identity, property and heritage. As you take on global activities, be sure to consider the attendant business consequences.

Tom Brean, Audit Partner, Not-for-Profit and Higher Education Practices and Museum/Cultural Sector Leader Dennis Morrone, National Partner-in-Charge, Audit Services, Not-for-Profit and Higher Education Practices

For the leaders of cultural institutions, a sector that provides all manner of creative experiences for the public, there is an excitement about what the signals of the past and present say about the future. In business planning, the same applies — “what has been” and “what is” go into gauging “what will be possible.”

For cultural institutions to move forward in an economy that has gone from expansive to constricted, leadership must take into account important operational and financial challenges as they consider what has worked in the past vis-à-vis current economic realities. The following imperatives should shape the agendas of boards and management teams:

1. Find a broader audience. With an aging population and shifting demographics, it is time to reassess strategies and re-evaluate programs. This sometimes amounts to reinvention — attracting new patrons and moving beyond the grounds, museum corridors and performance venues.

2. Stay state-of-the-art. With so much online content available on YouTube, Google, Instagram and elsewhere, it is more important than ever to use cyberspace as a complement to brick-and-mortar-based offerings. Digital technologies are enabling creation of a stronger relationship with constituents, from offering online exhibits and performances to supporting online communities and social networking with audiences. Besides drawing patrons into the experience and keeping organizations in touch with the public, technology is driving how tickets are sold and donations are solicited.

3. Consider pricing changes. Admittance fees and ticket prices should be analyzed as you evaluate supply and demand, and patrons hunger for more flexibility and customization. Balancing audience generation with revenue generation can be a dilemma; package deals, flex passes and multivenue

In focus: Cultural institutionsMuseums and other cultural institutions exhibit new strategies

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The state of the not-for-profit industry in 2014

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How enterprise risk management can help not-for-profits thrive

Paul Klein, Business Advisory Services Managing Director, Not-for-Profit and Higher Education PracticesMark Oster, National Managing Partner, Not-for-Profit and Higher Education Practices, Business Advisory Services Principal

Not-for-profits’ interest in enterprise risk management (ERM) is growing, as leadership seeks to identify high-risk areas (including those once thought to be improbable); develop appropriate mitigation or response strategies to protect the organization’s interests and assets; and guide subsequent risk management activities.

The pressures on management, boards and audit committees to understand and address organizational risks have never been greater. In today’s economic climate, not-for-profit organizations must be able to protect their key assets — most importantly, their good name and reputation. Whether due to changes in leadership, direction, growth, technology, or program offerings and services, it is likely that your organization is facing increased risk. The potential reputational, legal, financial, operational and mission-related impacts associated with such exposure have increased, as have stakeholder expectations regarding good stewardship. This places even more responsibility on leadership to identify and understand potential risks, establish a risk-focused culture and prioritize mitigation strategies going forward.

External forces have also put the spotlight on ERM. Not-for-profit organizations are facing unprecedented scrutiny by donors and watchdog agencies. The demand to operate transparently and with more sophisticated board engagement is higher than ever. Even without any dramatic changes to your business model, external pressures — regulatory, competitive, legal,

economic or constituent-related — coupled with inadequate risk management practices may leave your organization vulnerable. Without carefully assessing and managing both existing and emerging risks, new initiatives may not succeed and responses to external pressures may fall short, thus exposing your organization to risks that could ultimately destroy its reputation and threaten its survival.

Establishing a strong ERM program shields your organization from threats while enabling you to capitalize on new opportunities. ERM is a process that identifies, analyzes, addresses and monitors potential risks to your organization. By understanding and prioritizing these risks, you can build and execute a top-notch strategic plan that enables your organization to seize new opportunities and mitigate existing or emerging risks.

Benefits of implementing ERMA rapidly increasing number of not-for-profit boards are committing to ERM programs. Adoption is being driven by stronger fiduciary oversight, more robust strategic planning initiatives, a new generation of managers, and concerns over radical industry shifts, including pressure to cut costs, innovate and respond to regulatory inquiries.

An effective ERM program keeps organizations focused on optimizing strategic objectives, actively engages the executive team and enhances the board’s oversight of risk management. Furthermore, industry watchers recognize the importance of ERM in the continued success and sustainability of any organization, and they are factoring its existence and effectiveness into their overall ratings.

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ERM requires a cultural change. To instill ERM into your culture, the organization first needs to establish a common definition of what risk means, and then gain consensus regarding risk tolerance and appetite. As the ERM process unfolds, spending time to truly deliberate risk is hugely important. Risk consideration needs to become a shared way of thinking, and it should be on the agenda for every strategic discussion. Defining guiding principles for the ERM program is also critical so that expectations are properly set from the start and there is a shared understanding of what needs to happen when unexpected events occur.

ERM needs to be championed from the top. Setting the tone from the top and getting senior-level endorsement are critical to organizational change. A leading not-for-profit recently transformed its risk program when a newly hired executive advocated ERM. At another not-for-profit organization, the president made a point to inform his senior leadership and board that risk management was a top organizational priority. In both cases, the organizations adopted an integrated, holistic approach to managing risk that created accountability, defined a process for identifying and mitigating risk, and emphasized realistic but firm implementation time frames. As the respective boards and an ever-wider group of executives have embraced and owned the process, the organizations have permanently changed the way they approach risk.

Perceived obstacles to ERM adoptionIf ERM is a proven tool, why have not-for-profits struggled with building successful ERM programs? There are many possibilities:

• Not-for-profits may view ERM as an occasional project, rather than a continuous process.

• Not-for-profits may see ERM as a way of identifying all possible internal risks to the organization, thus creating an unmanageable amount of information and hindering its ability to focus on the most critical threats and advantageous opportunities.

• Organizations may create a completely new process and organization around ERM — separate from strategic and business planning — or delegate ERM to internal audit or other risk management groups.

• Not-for-profits may ignore critical and threatening risks because they are perceived as unlikely or out of their control.

• Not-for-profits may not recognize the value of management’s consideration of uncontrollable risk events and the development of anticipated responses if those events were to occur.

• They may lack adequate processes or indicators to monitor and respond to emerging risk events.

4 ways ERM can transform not-for-profitsAs leading organizations that have embraced ERM have shown, this process can work throughout the not-for-profit sector. Here’s how:

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Don’t delay your ERM program adoptionAs financial, regulatory, technological, organizational and programmatic pressures weigh on not-for-profits, the inability to adequately respond to these rapidly emerging and intensifying events can knock even the most solid organization off its feet. Being prepared can make all the difference; it’s never too late to start implementing ERM. A robust program will help your organization recognize and prepare for emerging risks, and minimize the impact of unforeseen events, allowing you to seize new opportunities while protecting your organization’s mission and reputation.

ERM is a vital strategic planning driver. A critical flaw in many enterprise risk approaches is misunderstanding the difference between enterprisewide risk assessments and ERM programs. Enterprisewide risk assessments collect all plausible risks, and the resulting list can be huge, unfocused and difficult to analyze. The result is a one-off report to the board or senior management. On the other hand, a strong ERM program addresses the most critical organization-level risks and supports the strategic plan. A strategic plan can inform the ERM process by identifying new opportunities that may introduce new organizational risks. The ERM process can likewise inform the strategic plan by defining the organization’s risk tolerance and appetite to ensure that undue conservatism doesn’t preclude new efforts from being undertaken (i.e., opportunity risk). When used appropriately, ERM can be a proactive partner to strategic planning.

ERM is a safety net, offering protection against broad or sudden industry changes. A successful ERM program is risk-intelligent. It includes the monitoring of key internal and external risk indicators so leadership can react quickly and effectively to reduce the impact of negative events or seize new opportunities. Strong ERM programs can give not-for-profits the edge they need in a risky and increasingly competitive environment. Whether the identification of an emerging risk such as inaccuracy of nonfinancial outcome assessments, the opportunity risk of investing in new technologies, or a strategic risk associated with a shift in the business model, an ERM program enables leadership to thoughtfully consider and plan for what tomorrow may bring.

The trade association can monetize these new assets in different ways, including royalty arrangements, selling the asset to a member or external party, or using the asset in the development of a new trade or business. The net result of this activity is to bring new funding that could be used to enhance existing operations, which in turn benefits current members as well as serving as a vehicle to attract new members.

However, careful tax planning is needed to ensure that the tax-exempt status of the trade association is protected and any possible tax exposure is mitigated. One way for an organization to manage this tax and business risk is through the use of a joint venture. Briefly, joint ventures are a way an organization can conduct a business activity without bearing all the risk. Joint ventures can take a number of forms, such as a partnership of two or more parties, including the trade association; a wholly owned for-profit subsidiary of the trade association; or a contractual arrangement between the trade association and an external party.

3. Attract new members abroad.From a business perspective, the world is becoming a smaller place — opportunities are open for trade associations to establish operations in strategic foreign locations. This can result in new fields of potential members and additional dues revenue.

Sources of new revenue and member engagement abound, but so do complexities. For example, expanding abroad may subject your association to foreign taxes and business risk; any business activity in a foreign country requires careful due diligence. Consideration must be given to the type of foreign organizational structure most beneficial to your association’s tax position, as well as a determination of business and legal risks.

Frank D. Giardini, Principal, Mid-Atlantic Region Not-for-Profit Tax Leader

Increasing — or just maintaining — revenue growth is one of today’s most difficult tasks for trade associations. In many cases, memberships are flat or declining. This means a squeeze on dues income, traditionally the main revenue source for these organizations.

Accordingly, trade associations must think about finding new ways to make up for the shortfall. These new ideas can yield even more important and long-term results than filling a budget gap: They can bring new value-added propositions to current and future members, thus helping with member acquisition and retention, which are essential to long-term organizational viability.

1. Restructure advertising arrangements to include a corporate sponsorship component. The addition of corporate sponsorship to your existing marketing program can produce multiple benefits: reduced federal unrelated business income tax (UBIT) exposure, enhanced marketing through public media or trade events, and an improved recruitment tool. If planned properly, revenue generated from corporate sponsorship transactions will not be subject to federal UBIT, unlike advertising revenue. Like advertising, corporate sponsorship focuses on advancing the sponsor’s brand and uses the same media venues and, in some cases, additional ones. Finally, a versatile membership marketing approach will be well-received by current and new members.

2. Develop new uses for existing assets through joint ventures.The development of new revenue streams can take many forms. The repurposing of existing trade association assets is one of those forms. In particular, many trade associations have developed an arsenal of valuable intangible assets, including data-based libraries and technologies that may be copyrighted or patented. These retooled assets may hold value for members or external parties.

In focus: Trade associationsBusiness, tax considerations drive dues, nondues revenue

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The state of the not-for-profit industry in 2014

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Matthew Lerner, Business Advisory Services Manager, Not-for-Profit and Higher Education PracticesMark Oster, National Managing Partner, Not-for-Profit and Higher Education Practices, Business Advisory Services Principal

A strong internal audit (IA) function can provide your not-for-profit organization with an independent and objective perspective, help improve its compliance and controls, and increase the efficiency and effectiveness of operations. Here are a few recommendations to maximize the value provided by your IA function, based on our experience as outsourced and co-sourced internal auditors, as well as our knowledge of industry best practices:

5 steps for a high-performing internal audit function

KEY INTERNAL AUDIT ROLESThe objective of IA is to help the organization achieve its goals by using a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance. Here are six fundamental IA duties:

1. Identify and prioritize areas of risk throughout the organization.

2. Mitigate these risks through targeted audit plans, resulting in findings and recommendations for change.

3. Evaluate the effectiveness of internal controls from a best-practices perspective.

4. Assess compliance with laws, regulations and contracts.

5. Recommend process improvements that address the efficiency and effectiveness of operations.

6. Follow up on recommendations and report on remediation efforts.

Establish a strong tone at the top. Support from leadership is crucial to the IA department’s ability to function effectively and help your organization be at the top of its game. Strong support from the board and senior management helps communicate the importance of IA’s activities to the institution’s community. IA should regularly discuss findings, recommendations and emerging risks with senior leadership, and develop value-added, implementable recommendations that can trigger positive changes within your organization. Although the IA function needs to earn its reputation for excellence, we have seen that senior management’s open support can pave the way for an efficient and effective IA function.

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Line up skilled, flexible resources. IA knows to expect the unexpected. Special projects, “fire drills” often associated with fraud or special investigations, and shifting priorities are now the norm. Many IA functions struggle to provide value when these projects involve academic or programmatic areas, often due to a lack of experience. A skilled and diverse staff is needed to deal with the unexpected and to create and effectively execute a well-rounded audit plan. A high-performing IA department should include staff with a mix of skills and experience, including compliance and controls, programmatic areas (e.g., grants), operational improvement, and more specialized areas, such as IT systems and infrastructure. If your organization has a modest IA staff, consider co-sourcing as a viable way to supplement existing in-house skills and resources with specialized talent and experience.

Promote the IA function’s independence. IA should be independent from management and the business functions that it reviews in order to allow the department to perform its duties in an unbiased manner, free from interference or compromised relationships. Ideally, IA should report directly to the board of directors or the audit committee, although we have often seen it report administratively to the president, executive vice president, CFO or general counsel. An independent and objective IA department can more effectively monitor the organization’s compliance and controls and decrease the risk of fraud.

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Leverage IA’s expertise in strategic risk assessment. In an increasing number of not-for-profit organizations, IA is no longer just the compliance cop. Many strong IA functions have also been serving in a consultant-like capacity, making recommendations to improve operational efficiency and effectiveness. To become a high-performing function, IA’s observations and recommendations must provide actionable insights that align with your organization’s strategic priorities and provide maximum value. Increasingly, we have seen IA functions participate in the organizational enterprise risk management (ERM) program. IA’s risk assessment experience and organizational knowledge can be great resources when you set out to identify the risks to achieving your strategic goals (i.e., strategic risk). IA can also participate in the ERM process by assessing current and recommended risk mitigation practices.

Perform a quality assurance review (QAR). The Institute of Internal Auditors (IIA) recommends that self-assessments of the IA function be performed periodically (we suggest annual IA self-assessments), while third-party assessments should be performed every five years. A QAR can be a key driver in improving IA’s performance because it assesses the function’s adherence to the IIA’s International Standards for the Professional Practice of Internal Auditing and Code of Ethics. The QAR also evaluates how effective the IA function is in fulfilling its mission, and identifies ways to enhance IA’s management and work processes, as well as the value it ultimately brings to the organization.

b. Additionally, it is a tax obligation of the U.S. organization to ensure the money is used for exempt purposes. Otherwise, the tax status of the organization, as well as the potential for a deduction by the donor, could be jeopardized.

Organizations often hire an audit firm to make certain that everything is documented appropriately.

3. Maintain a strong relationshipThe success of the first two steps, and certainly that of achieving mission, relies on this one. A strong relationship won’t necessarily come about naturally — good governance practices must rule here, too.

There is a potential for tension between the organization that raises the funds and the organization that puts the funds to use. The relationship should be nurtured through structured learning about business culture in Israel, as well as educating Israeli counterparts about business culture and regulations in the United States.

Lines of communication should be established, most importantly at the highest level in the organizations’ leadership. These should include timely check-ins and, as much as possible, in-person visits. Acknowledging there is no substitute for the power of actual presence, the U.S. organization should promote frequent trips of its leaders to develop solid relationships with the leaders of the Israeli organization; the most successful relationships are those based on personal connection with strong lines of communication. While this is critical in good years, it is even more important when the stress and tension of difficult years must be weathered.

Strong relationships and managed expectationsWhen participants are as separated by geography, language and culture as U.S. organizations are from the Israeli programs they support, governance can provide structure to ensure tax status and donor intent are protected, and the mission is upheld. Mutual understanding goes a long way in achieving mutual satisfaction.

Yossi Jayinski, Partner, Not-for-Profit and Higher Education Practices, Jewish and Israeli Sector Leader

All U.S. not-for-profit organizations with operations overseas have common concerns about money spent far from home. U.S. Jewish/Israeli organizations are not immune from these concerns, and they need to be upfront with their Israeli counterparts to ensure that the donor intent and the organization’s tax-exempt status are not jeopardized.

Leaders must develop good governance practices, domestically and in Israel, to ensure that the organization delivers on its mission while staying in compliance with governmental regulations. For organizations in this position, achieving good governance requires at least three basic steps:

1. Be clear about administrative roles and who covers the costsWhile the mission is being executed overseas, there are substantial administrative costs in the United States that must be covered. Depending on the structure of donations (restricted or unrestricted), it is the organization’s responsibility to communicate with its Israeli colleagues as to what the administrative costs are and who will pay for them. This could easily be an area of confusion and contention if it is not clearly communicated upfront.

2. Ensure that donor intent is honored and guard tax-exempt statusIt is the responsibility of the U.S. organization to lay out and oversee good governance procedures that protect and document the donor intent, as well as the organization’s tax-exempt status. There are two compelling reasons for this:

a. Donors will understandably be keenly interested in being assured that their wishes are carried out. Donor satisfaction can lead to continued funding.

In focus: Jewish/Israeli organizations3 steps to good governance overseas

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The state of the not-for-profit industry in 2014

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The state of the not-for-profit industry in 2014

Here are some of ways we are serving the not-for-profit sector:

Audit Services

Dennis MorroneNational Partner-in-Charge Audit ServicesNot-for-Profit and Higher Education PracticesT 732.516.5582E dennis.morrone@us.gt.com

• Financial statement audits

• Benefit plan audits

• Agreed-upon procedures

Tax Services

Dan RomanoNational Partner-in-ChargeTax ServicesNot-for-Profit and Higher Education PracticesT 212.542.9609E daniel.romano@us.gt.com

• Form 990 and 990-T filing positions

• International operations

• Compensation and benefits consulting

• Revenue generation

• Unrelated business income

With nearly 900 not-for-profit clients, Grant Thornton LLP is dedicated to meeting the audit, tax and advisory needs of social services, religious, trade association, private foundation, Jewish and Israeli, and cultural organizations, as well as higher education institutions. We are the U.S. member firm of the only large international accounting organization to have fully dedicated professionals — from staff to partners — who work exclusively with not-for-profit and higher education clients. Our partners and managing directors average 25 years of experience, while senior managers and managers have an average of 15 years of industry experience.

About Grant Thornton’s services for not-for-profit organizations

Advisory Services

Mark OsterNational Managing Partner Not-for-Profit and Higher Education Practices

National Partner-in-ChargeBusiness Advisory ServicesNot-for-Profit and Higher Education PracticesT 212.542.9770E mark.oster@us.gt.com

• Strategic planning and governance

• Operational improvement

• IT

• Business risk (including ERM, fraud and nonfinancial data misrepresentation, and construction audits)

• Valuation

• Transaction support (including due diligence and merger integration)

• Restructuring and turnaround

• Forensic, investigation and dispute

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We have been very pleased with the Rotary International and Grant Thornton partnership during these past few years. We have had full access to the firm’s local, national and global audit, tax and advisory resources to assist us as we continue to advance our important global programs. We are most proud of our ongoing efforts to eradicate polio from the planet through our END POLIO NOW campaign. On behalf of our 1.2 million members around the world, thank you, Grant Thornton, for being a valued business partner.

— Peter J. DeBerge, deputy general secretary and former CFO of Rotary International and The Rotary Foundation

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LATEST INDUSTRY TRENDSIn addition to this publication, we are committed to keeping our constituents abreast of the latest trends in the industry through our educational forums, newsletters, articles, webcasts and nationwide speaking engagements on current not-for-profit business and governance topics.

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