•Exempt Summer 2014_June July 06 Exempt 9/8/14 9:40 AM Page 1 ETHE FINANCIALX MAGAZINEEMPT FOR NONPROFIT EXECUTIVES www.exemptmagazine.com Summer 2014 ROLLER COASTER MARKETS What Keeps CFOs Up At Night? ALSO INSIDE • TECHNOLOGY • PLANNED GIVING LIBERTY, MO LIBERTY, PERMIT NO. 194 NO. PERMIT PAID • RISK MANAGEMENT U.S. POSTAGE U.S. NCS Fulfillment, P.O. Box 0567, Selmer, TN 38375 TN Selmer, 0567, Box P.O. Fulfillment, NCS PRSRT STD PRSRT Mail change of address to: Exempt to: address of change Mail • FINANCE $11.75 US / $12.75 CANADA $12.75 / US $11.75 • GAMES •Exempt Summer 2014_June July 06 Exempt 9/8/14 9:40 AM Page 2 PRUDENTIAL RETIREMENT® HELPING YOUR PARTICIPANTS PREPARE FOR DAY ONE OF RETIREMENT. THAT’S A CHALLENGE WE CAN MEET. Plan sponsors at not-for-profi ts are faced with unique challenges. Chief among them: offering a competitive retirement plan at a reasonable cost — so your organization can attract and retain top talent. At Prudential, we’re a leader in helping institutions make the transition from a DB to a DC world. Working with your plan advisor or consultant, we can design a retirement plan that makes sense for your organization — and your employees. We can help your employees prepare for retirement security on their Day One and all the days to come. To learn more about our innovative retirement solutions, visit prudential.com/TotalRetirementSolutions or call Brian McCleave at 860-534-2170. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company, Hartford, CT, or its affi liates. PRIAC is a Prudential Financial company. © 2013 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide. 0244128-00002-00 FOR PLAN SPONSOR USE ONLY •Exempt Summer 2014_June July 06 Exempt 9/8/14 9:40 AM Page 3 EXEMPT in this issue THE FINANCIAL MAGAZINE FOR NONPROFIT EXECUTIVES EDITOR-IN-CHIEF Paul Clolery [email protected] SENIOR EDITOR Mark Hrywna [email protected] STAFF WRITERS Patrick Sullivan [email protected] 12 17 20 Zach Halper [email protected] 8 COVER STORY Roller Coaster Markets PRESIDENT John D. McIlquham 12 TECHNOLOGY The Big Install ADVERTISING SALES DIRECTOR 17 PLANNED GIVING Scott Vail [email protected] Jumpstarting Your Program 18 FINANCE BUSINESS DEVELOPMENT DIRECTOR Cash In, Cash Out Peter Manfre [email protected] 20 RISK MANAGEMENT Insuring Against Unemployment CLASSIFIED MANAGER 27 AUCTIONS Mary Ford [email protected] Stoking The Bidding PRODUCTION MANAGER DEPARTMENTS Jeff Nisbet [email protected] 4 From The Editor 28 6 10 Questions For The CFO Exempt is published four times annually by The NonProfit Times. A one-year subscription is $39 US, $59 US Canada and $89 US for international. 23 Risk Management Guide The NonProfit Times (ISSN 0896-5048) is a publication of NPT Publishing Group, Inc., 201 Littleton Road, Morris Plains, N.J. 07950. 27 Executive Positions Unsolicited manuscripts are welcome, but The NonProfit Times does not assume responsibility 28 Time Out for their return. None will be returned without a self-addressed, stamped envelope. No material in this publication may be photocopied or reproduced in any 29 Resource Marketplace form whatsoever without permission of the Publisher. Views expressed by independent columnists or correspondents are theirs and do not necessarily 31 Exempt Calendar represent the views of NPT Publishing Group, Inc. © 2014 NPT Publishing Group, Inc. ............................................................................................................................................ Summer 2014 | EXEMPT | 3 •Exempt Summer 2014_June July 06 Exempt 9/8/14 9:40 AM Page 4 FROM THE EDITOR PAUL CLOLERY, EDITOR-IN-CHIEF ............................. Expected Financial Dips And Dives ........... It’s usual to not see a roller coaster’s track a blink before you are hurtling toward the ground at an unspeakable speed. It’s not that the speed can’t be calculated. It’s that the G-forces don’t allow you to speak or scream. You literally run out of track as you ascend to the top of the Gravity Max roller coaster in Taiwan’s Discovery World theme park. The ride ever so slowly begins to bend, holding riders in midair until the track corrects with more rails (which you don’t immediately see) a few yards away. Some people find this fun. Some people will spend the night before wide awake in anticipation – and fear. The same can be said of sleep deprived investment managers at nonprofits. Sure the economy is recovering. The U.S. equities markets have regained the losses from the great recession but that’s not where the real growth can be found. Many investment managers are looking toward private equity and international opportunities for double-digit growth that programs need for funding. We talk to a few terrific financial managers to see what’s keeping them up at night. We even play 10 questions with a CFO. Another area of risk is deciding if you’re competent enough to install all of that new accounting and fundraising software. Here’s a hint. The answer is probably no, whether it’s a lack of time or skill. A value added reseller of software might be the ticket to a restful night. You can decide by taking a look at the story inside. There’s also thought pieces on planned giving, unemployment trusts and merchant accounts. All of these can cause tossing and turning if they are unsettled. Enjoy this issue of Exempt. As always, I can be reached at [email protected] ............................................................................................. 4 | EXEMPT | Summer 2014 •Exempt Summer 2014_June July 06 Exempt 9/8/14 9:41 AM Page 5 The 2014 Nonprofit Organizations Salary & Benefits Report You will find a gold mine of information What can our Salary and Benefits Enrich your 2014 Nonprofit Organizations Report do for you? organization’s Salary & Benefits Report • Avoid trouble with the IRS by being able to check YES on your Form 990 competitive regarding salaries for your chief edge with executive and key employees set using comparability data for the nonprofit similar positions. sector’s most • Learn about 94 employee benefits, going way beyond dental plans and comprehensive, Published by The NonProfit Times, in summer hours. conjunction with Bluewater Nonprofit • Get data by nonprofit field, budget data-rich Solutions, the newly released 2014 size, number of employees, and Salary and Nonprofit Organizations Salary and region throughout the U.S. Benefits Report provides current salary • Attract and retain the best employees Benefits information on 236 nonprofit positions by knowing how to offer fair and Report from entry level to the executive office competitive compensation. – including detailed trend data for 2014 – and complete data on 94 Purchase your digital copy of the employee benefit offerings including 2014 Nonprofit Organizations healthcare, retirement, executive Salary and Benefits Report today! perks, vacation, and much more. www.thenonprofittimes.com/store •Exempt Summer 2014_June July 06 Exempt 9/8/14 9:41 AM Page 6 Te n Q u e s t i o n s FOR THE CFO Paul Mehlhorn, CFO and Treasurer, Make-A-Wish Foundation of America, Phoenix, Ariz. 1 a good typist. I wish I were a more projects that I am working on. When did you know you were proficient typist. Silly, huh? It’s how to make it happen faster, good with numbers? I discovered better, etc., which are challenges in late high school that I really 5 certainly, but never nightmares. enjoyed working with numbers. What keeps you up at night? Internet fraud and the impact on 9 2 our brand. When was the last time you What are you reading now? I am worked just an 8-hour day? When reading a book by Dr. Garry Brewer 6 I was on vacation in June, I only entitled Do What You Do Best. How’s staffing? Is there a plan worked eight hours on one day. It speaks to outsourcing in the to hire? We are experiencing a Seriously, I can’t remember working nonprofit sector, a topic of interest reasonable amount of turnover at an 8-hour day in the last 20 years. I right now. this time as the economy starts to think it just goes with the territory. improve. We do have plans to hire 3 additional staff in FY15 (an increase 10 What are the three most of approximately 8 percent). What’s your favorite guilty pleas- important skills for today’s CFO? ure? ASU (Arizona State University) You have to understand systems and 7 football. I played football in high how they can drive efficiencies. You Do you ever dream about work? school and I really enjoy the have to understand the metrics that Occasionally. college game. make your business successful and you must have good people skills. 8 BONUS QUESTION Are they pleasant or nightmares? Are you bullish or bearish on 4 Most of the dreams are about the sector’s finances for the next What’s the worst piece of 12 months? I am bullish on the professional advice you’ve ever economy. While it has taken much received? I was told in high school longer than it should have, the that I didn’t need to take a typing American economy is very resilient class because if I couldn’t type, the and it appears that we are finally company would always provide me starting to turn the corner. The leading indicator for me is jobs. It may be 108 outside, but we are ready for football season… ‘‘Go Devils! 6 | EXEMPT | Summer 2014 •Exempt Summer 2014_June July 06 Exempt 9/8/14 9:41 AM Page 7 NPT PUBLISHING GROUP,INC.