the financial health of chicago`s human service agencies

N E WS LET TE R — FA LL 2 0 0 9
T H E M E : F I N A N C I A L H E A LT H
V O L U M E 11, N U M B E R 1
THE FINANCIAL HEALTH OF CHICAGO’S
HUMAN SERVICE AGENCIES
By Al Kamienski and Tim O’Brien
Dear Alumni and Friends,
INTRODUCTION
METHODS
We are delighted to present in this issue
some of the research findings from a
recently completed study on the health
of human service organizations. The
timing of the release of these results
is perfect, as we are just now starting
to recover from the worst recession
since the Great Depression. Human
service organizations in Chicago were
hit very hard financially, due to the
uncertainty of state funding and the
increase in demand for services. The research showed that those organizations
that consistently put aside unrestricted
funds each year—profits—are the
healthiest financially.
Many “business” people who have made the
transition from the for-profit to nonprofit
sector experience culture shock. This unique
sector provides challenges, including the reality that many employees, from leadership to
the program side, often give minimal attention to the “business” side of the organization.
Moving from structured environments where
success is defined by clear standards (e.g. stock
prices), it is startling that no standard tools
exist to help nonprofits evaluate sustainable
financial health.
The study examined a total of 300 small
(revenues <$500,001), medium ($500,001–
$5,000,000) and large (>$5,000,000) organizations in the Chicago area. Data sources
included Form 990s for the years 2001–2005,
combined with survey data collected in 2009.
Regression models, graphical, and qualitative
methods were used as analytical tools.
This research project was funded by a
grant from the Chicago Community
Trust and the Houlsby Foundation.
This is our first sponsored research
project in the School of Business and
Nonprofit Management. Notice that
the research combines an academic approach with practical implications. We
aim to study the appropriate practical
questions on the minds of managers
and leaders.
We look forward to building our capacity for cutting-edge research into the
future and sharing research results
with the business and nonprofit management community.
The regression analysis, which focused on the
variables within financial operations that corTo promote exploration of such a set of stan- related with positive CHURNA©, indicated
dards for nonprofits, The Chicago Community that size matters in the focus of operations:
Trust and The Houlsby Foundation funded a
study of Chicago’s human service agencies. For smaller nonprofits, cash management is a
The study was supported by The Axelson sufficient focus. Medium nonprofits need also
Center for Nonprofit Management at North add debt management. Large nonprofits must
Park University. Jimmie Alford, founder of expand activities that advance programming
The Alford Group, was a key member of the productivity by leveraging economies of scale.
research advisory board.
Reviewing all three dimensions of our definiThe study hypothesized that financial health tion of financial health, the survey indicated:
was comprised of three dimensions: financial operations, governance structure, and 1.Operations: Most organizations do shortfinancial literacy. Related to operations, our
and long-range planning, but fewer use data
research led us to a make a critical assumption:
to track progress toward goals. Two-thirds
all organizations desire to achieve profitability.
of organizations reported managing with
While the magnitude of profitability varies, it
financial ratios. Most organizations had
was assumed that profitable operations were
between 0-3 months worth of cash reserves.
essential to organizational health. We defined
Only 30% of the organizations surveyed
that profit measure as CHURNA©, a positive
budget for positive CHURNA.©
change in unrestricted net assets.
Continue on Page 2
Sincerely,
Key Ratios
Wesley E. Lindahl
Dean, School of Business and
Nonprofit Management
Continued on page 2
RESULTS & IMPLICATIONS
Small
Medium
Large
Working Capital
Working Capital
Debt Ratio
Working Capital
Debt Ratio
Cash Reserves
Program Expense Ratio
Low
Significant
Amount of Debt Modest
1
SBNM FACULTY & STAFF
STAFF
Continued from Page 1
Crendalyn McMath
2.Governance: Most organizations use collaborative planning methods and the board is
actively engaged in planning process.
Meta Anderson
Associate Professor of Marketing
[email protected]
Tim O’Brien
Chiku Jallah
Assistant Professor of Nonprofit Finance
[email protected]
3.Financial Literacy: Survey participants reported high levels of expertise within their boards
and on their executive and operational teams.
Lee Sundholm
IMPLICATIONS
Wesley Lindahl
Professor of Economics
[email protected]
Chris Nicholson
AXELSON CENTER
FOR NONPROFIT
MANAGEMENT
Office Assistant
[email protected]
Operations Coordinator
[email protected]
Dean and Nils Axelson Professor
of Nonprofit Management
[email protected]
Director of Graduate Admission
[email protected]
Christa Beall Diefenbach
Melissa Patterson
Assistant Director
[email protected]
Ken Schaefle
Director and Professor
of Nonprofit Management
[email protected]
Operations Assistant
[email protected]
Individual and Organizational
Recruitment
[email protected]
FULL-TIME FACULTY
John Bonie
Associate Professor of Operations and
Finance
[email protected]
Gianfranco Farruggia
Associate Professor of Nonprofit
Management
[email protected]
Ann Hicks
Associate Professor of Accounting
[email protected]
Robert Hirsch
Professor of Management
[email protected]
Alvin Kamienski
Associate Professor of Finance and
Economics
[email protected]
Catherine Marsh
Associate Professor of Management
[email protected]
Our research suggests that in order to achieve
financial health, nonprofits need to concentrate
on budgeting for CHURNA,© expanding collaborative governance structures, and proliferating financial literacy. A useful tool in tracking
progress across all facets can be accomplished via
the use of a dashboard—a customizable, holistic
data-driven, graphical indicator of targeted key
performance measures, progress to date, and next
steps in moving towards financial sustainability.
Pier Rogers
Tracey Starkovich
SBNM INTERNSHIPS
Program Manager
[email protected]
Fall 2009
NEWSLETTER
CONTRIBUTORS
Coffee Ambassadors, Chicago
Alvin Kamienski
Kyle Baril
Alissa Czasonis
Chicago Council on Global Affairs, Chicago
Associate Professor of Finance and
Economics
North Park University
Steven Hosch
Timothy O’Brien
Citibank Global Markets, Chicago
Associate Professor of Nonprofit Finance
North Park University
Kurt Peterson
Coffee Ambassadors, Chicago
Bishara Kuttab
Elizabeth McClintock
Jumpstart, Chicago
Editor and Director of Outreach
Programs
North Park University
Natnael Mehari
Lee Sundholm
St. Louis Graphics, Schaumburg, Ill.
Professor of Economics
North Park University
Wesley Lindahl
Dean and Nils Axelson Professor of
Nonprofit Management
North Park University
Covenant Trust Company, Skokie, Ill.
Angela Michel
Juan Tello
NORBIC Community Development Corporation,
Chicago
Candy Wong
Family Focus, Chicago
2
SBNM NEWS/EVENTS
Visit South Africa With the
SBNM!
friends had the opportunity for fellow- a variety of courses including accounting,
ship, networking, and learning at the business law, and international business.
first SBNM alumni event of the 2009–10 Michael was also passionate about integratacademic year. Our guest speaker was ing faith and business in all of his classes,
Cape Town, South Africa, is the destina- Karen Murphy, controller of the Chicago and routinely led a weekly Bible study on
tion for the 2010 SBNM International Bears Football Club. Karen’s presentation campus. We wish Michael the best in his
Experience. Join SBNM faculty, staff, provided a fascinating glimpse into the future endeavors.
alumni, and current students over spring business of professional football, including
break for an unforgettable 14-day trip to player contracts, union agreements, ticket/
Africa’s leading economy—March 1–14, concession revenues, and the Bears inter2010. The trip includes meetings with action with the National Football League.
educational, corporate and nonprofit or- Karen played a vital role in the renovaganizations, as well as cultural activities. tion of the new Soldier Field, including
You may take the trip for credit (SBNM the structuring of project financing,
5570), or simply for pleasure, and spouses monitoring of construction budgets, and
are welcome to join. Additional high- examining contract compliance. Karen
lights include:
is responsible for financial reporting, tax
compliance, risk management, budget
• Accommodations at the boutique
development, and treasury management
Protea Fire and Ice Hotel, ranked
for the entire organization.
by TripAdvisor.com as one of
the top hotels in Cape Town
• A tour and volunteer experience
Economics Panel Alumni Event
in a Cape Town township
• A full-day African safari— your
Join us on Saturday, February 6, 2010,
Michael Avramovich
opportunity to see Africa’s Big Five
at Via Veneto Ristorante on North Lin• A dinner and briefing hosted
coln Avenue in Chicago for our annual SBNM Breakfast Series
by the South African ConsulEconomics Panel. The event includes
ate prior to departure
dinner and brief presentations from four The School of Business and Nonprofit
SBNM professors on the state of the Management sponsored its inaugural
The price is $2,995 per person, which is economy, including predictions for the Breakfast Series event on October 13 at the
an outstanding value given the destina- DOW and Philanthropic Giving Index in University Club of Chicago. North Park
tion and itinerary. For more information, the year to come. For more information trustee and former senior vice president
including an application, visit the SBNM or to RSVP, please contact Meta Ander- of the Chicago Tribune Owen Youngman
graduate website or contact Chris Nich- son at [email protected] or joined respected journalists Charles Madiolson at (773) 244-5518 or cnicholson@ (773) 244-6270.
gan and John P. McCormick to discuss the
northpark.edu. Space is limited.
future of the newspaper industry.
SBNM Alumni Event Featured
the Controller of the
Chicago Bears
On Friday, August 21, 2009, SBNM
alumni, graduate students, faculty, and
Professor Avramovich
Announces Retirement
Professor Michael Avramovich announced
his retirement from SBNM effective
August 2009. Michael was a tenured professor at North Park University and taught
The Breakfast Series is designed to bring
together the University’s faculty, staff, and
students to network and hear from industry leaders. The next event will focus on
the Chicago real-estate market and will be
held April 14 at the same location.
3
THE SBNM’S STUDY VISIT TO SWEDEN
By Lee Sundholm
We left Chicago on Friday, August 7, and
arrived in Stockholm just before noon the
next day. The city’s history dates back to the
mid-13th century. With a current population of more than one million in the urban
area, it is Sweden’s largest city.
The weather was warm (in the mid-80s), and
our trekking took us to Gamla Stan (the
old city) for the changing of the guard at
the Royal Palace. The Cathedral of Stockholm—consecrated in the early 14th century, and the site of all royal weddings and
coronations—was next, followed by a short
walk to the Nobel Museum. A pleasant
boat trip brought us to the Vasa Museum
to see the great Swedish warship salvaged
virtually intact from its 17th-century resting place in the waters of the Baltic.
At the beginning of the week, we attended
the Royal Institute of Technology for a special seminar with Professor Claes Gustaffson on business ethics from a Scandinavian
perspective. After lunch, we traveled to
Ericsson for a presentation by marketing director Ove Anebygd on strategic marketing.
The next day a high speed X2000 train took
us south to the Jönköping International
Business School (JIBS). We were graciously
hosted by international office director
Chantal Cote. Dean Niclas Adler and professor Goran Henriks discussed the school’s
leading fields of entrepreneurship and
healthcare management, followed by presentations on municipal and developmental
entrepreneurship. Our learning experience
Then we were off on a scenic ride west to
Gothenburg, a seaport and the second largest city in Sweden. We visited Volvo, which
has a long history of innovation, engineering, and safety as strategic advantages.
As we headed back to Chicago, everyone
agreed that it was an educational, informative, and fun time spent in a lovely country. Roger and Elaine Detweiler said they
then took us to Coompanion, a distinctive
nonprofit entrepreneurship company.
“thoroughly enjoyed the trip—the mix of
educational and cultural opportunities,
the wonderful and friendly people, and a
Next we visited Husqvarna, a 300-year-old
firsthand look at the entrepreneurial and
international producer of machinery and
economic development programs.” Dean
equipment, and the Swedish Emigrant Santopoalo enjoyed “studying Sweden’s
Museum in Växjö with Carl Werner Pet- approach to education and business structersson, who has close ties to North Park
tures, the absence of tension and sense of
and Chicago.
tolerance in the society, and the opportunity to learn and to compare cultures.”
Our next stop was the Glass District Vilma Matos and Debra McWherter found
(Glasriket) in the forests of Småland, where
the experience to be “a priceless educational
fences keep the moose and elk off the
tool—to revel in the magnificent history,
highways. Here world famous companies
culture, and traditions” of Sweden.
Orrefors and Kosta Boda manufacture
exquisite glassware.
4
CONGRATULATIONS TO SBNM SPRING 2009 GRADUATES
SBNM UNDERGRADUATES
Kevin Andrew Adams, Bachelor of Science in
Business and Economics, cum laude
Daniel Andrew Alvarado, Bachelor
of Arts in Advertising
Jake Carl Anderson, Bachelor of Science in
Business and Economics, magna cum laude
Sarah Michelle Anderson, Bachelor of Science
in Business and Economics, cum laude
Philip J. Carlson, Bachelor of Arts in
Business and Economics
Riley Eugene Carlson, Bachelor of Science
in Business and Economics
Maria Rose Cathcart, Bachelor of Science in
Business and Economics
Joseph Mark Chybowski, Bachelor of Science
in Business and Economics, cum laude
Riley Jenkins Clark, Bachelor of Science in
Business and Economics, summa cum laude
Diana G. Cueva, Bachelor of Science in
Business and Economics, cum laude
Coleen Ann DeSmidt, Bachelor of Science
in Business and Economics
Sarah Elizabeth Dornfeld, Bachelor of Science
in Business and Economics, cum laude
David Douglas Dotson, Bachelor of Arts
in Business and Economics
Lindsay Louise Dudich, Bachelor of Science in
Business and Economics, summa cum laude
Thor Sanones Edvardsen, Bachelor of
Science in Business and Economics
Peter-Johann Eriksson, Bachelor of Arts in
Business and Economics
Marta A. Escobar, Bachelor of Arts in Business
and Economics, magna cum laude
Elisabeth Anderson Fondell, Bachelor of Science in
Business and Economics, magna cum laude
Nicole Ann Fondell, Bachelor of Arts in Business
and Economics, magna cum laude
Emily Christina Germann, Bachelor of Arts in
Business and Economics
Anish Gheewala, Bachelor of Science in
Business and Economics
Laura Anne Hebden, Bachelor
of Arts in Advertising
Eliza Ionescu, Bachelor of Arts in Advertising
Saleha Jabeen, Bachelor of Arts in Business
and Economics, magna cum laude
Timothy William Jay, Bachelor of Science in
Business and Economics
Nick R. Johansson, Bachelor of Science in Business
and Economics, summa cum laude
Frederick Malcolm Johnson, Bachelor of
Science in Business and Economics
Steven Michael Karceski, Bachelor of Science in
Business and Economics, magna cum laude
Bum Ki Kim, Bachelor of Science in
Business and Economics
Injae Kim, Bachelor of Arts in Business and
Economics
Katarzyna Kruczek, Bachelor of Science in
Business and Economics, magna cum laude
Kirils Kuznecovs, Bachelor of Science in
Business and Economics, cum laude
Stephen David Lacorazza, Bachelor of
Science in Business and Economics
Brett Edward Lampe, Bachelor of Science in
Business and Economics
John Matthew Lauer, Bachelor of Science in
Business and Economics
Jessica Lynn Leichty, Bachelor of Science in
Business and Economics
Hoda Mostafa, Bachelor of Arts in
Business and Economics
Jacob Ryan Mueller, Bachelor of Science in
Business and Economics
Thomas James Neckopulos, Bachelor
of Arts in Advertising
Blagovest Hristov Nenov, Bachelor of Science
in Business and Economics, cum laude
Patricia A. Newsom, Bachelor of Arts in
Business and Economics
Yushaa A. Omar, Bachelor of Arts in
Business and Economics
Renu D. Patel, Bachelor of Science in
Business and Economics
O’Neal A. Patrick, Bachelor of Science in Business
and Economics, magna cum laude
Kenneth R. Peoples, Bachelor of Arts in
Business and Economics
Karen Rosieanne Roberts, Bachelor of
Science in Business and Economics
Petr Michael Sigov, Bachelor of Science in
Business and Economics
Matthew Justin Solie, Bachelor of Science in
Business and Economics
Eric Jon Staswick, Bachelor of Arts in
Business and Economics
Melissa Ann Strozyk, Bachelor of Science in
Business and Economics
Sarah Kambili Thontwa, Bachelor of
Science in Business and Economics
Torsten A. Wildermuth, Bachelor of Arts in
Business and Economics
SBNM GRADUATES
Dana S. D. Allan, Master of Business
Administration, with distinction
Thomas William Jude Altman, Master of
Business Administration, with distinction
Claudia Liliana Alvarez Suarez, Master
of Business Administration
Jessica Anzaldua, Master of Nonprofit Administration
Judy Min Jeong Baek, Master of Nonprofit
Administration, with distinction
Giovanna Paola Barbosa, Master of Management
Nisha Bastola, Master of Business Administration
Jennifer Lynn Boza, Master of Management
in Nonprofit Administration
Angela Brooks, Master of Business Administration
Harold D. Burkhart Jr., Master of Business
Administration, with distinction
Dallas B. Burright, Master of Business Administration
Paola Andrea Carreras, Master of Management
Lee Allen Carter, Master of Nonprofit
Administration, with distinction
Mai Lon Chiu, Master of Business Administration
Vasvija Colpa, Master of Business Administration
Deisi Coronado, Master of Business Administration
Deborah J. Crofoot, Master of Business
Administration, with distinction
Bradley Charles Feldman, Master of Business
Administration, with distinction
Jennifer L. Fetero, Master of Business
Administration, with distinction
Ogunwale Tolulope Folaju, Master
of Business Administration
Brendan Patrick Foster, Master of Nonprofit
Administration, with distinction
Susanne Francis-Thornton, Master of Business
Administration, with distinction
Caleb L. Gardner, Master of Business
Administration, with distinction
Ivaylo Angelov Garkov, Master of Business
Administration, with distinction
Bobbi Jo Geiger, Master of Nonprofit
Administration, with distinction
Leonardo Demetrius Gilbert, Master
of Nonprofit Administration
Alberto Rafer Gonzales, Master of Business
Administration, with distinction
Agnieszka Anna Gucwa-Lukoszczyk,
Master of Business Administration
Toqeer Gul, Master of Business Administration
Akif Hasan, Master of Business Administration
Joshua Vance Havens, Master of
Business Administration
Michael Hegel, Master of Business
Administration, with distinction
Jeffrey Joseph Isola, Master of Business Administration
Reneé Elizabeth Jackson, Master of
Business Administration
Kara Lynn Jakaitis, Master of Business Administration
Anna Jarosz, Master of Business
Administration, with distinction
Hyun Joung Jeon, Master of Business Administration
Sheri Hendrickson Johnson, Master of
Management, with distinction
Sarah Eisner Kirch, Master of Nonprofit
Administration, with distinction
Jodi M. Kurtze, Master of Nonprofit
Administration, with distinction
Shahid Mehmood, Master of Business
Administration, with distinction
James Robert Meyer, Master of Business Administration
Kalliopi Maria Mihailidis , Master
of Nonprofit Administration
Sau Myaw, Master of Business Administration
Minh Huu Nguyen, Master of Business
Administration, with distinction
Andrew Sutton O’Donnell, Master of Business
Administration, with distinction
Tanya M. Pashkuleva, Master of Business Administration
Shanil Mathew Peters, Master of Business
Administration, with distinction
Rene Ruedas, Master of Business Administration
Daniel R. Stegbauer, Master of Business
Administration, with distinction
Richard L. Thompson Jr., Master of
Management, with distinction
Neil Gregory Weber, Master of Business
Administration, with distinction
Emily Marie Zimmerman, Master
of Business Administration
5
AXELSON CENTER CALENDAR OF EVENTS
Fall Workshops
CREATIVE PLANNING FOR
GROWTH ON A TIGHT BUDGET
November 19, 2009 from
9 a.m. to 12 p.m.
Rob Acton, J.D., Executive Director,
Cabrini Green Legal Aid; and Laura Zumdahl, Associate Executive Director, Cabrini
Green Legal Aid
The most successful nonprofit leaders—
whether board members, executives, or
staff—relentlessly pursue agency growth.
These leaders believe deeply in the work they
engage in and aspire to serve more people, in
more impactful ways. Yet, growth-oriented
vision is often impeded by the realities of
limited finances, an already-stretched staff,
a less-than-inspired board, or any number
of other undesirable constraints. This workshop will explore how small and mid-sized
nonprofit organizations can expand societal
impact, even in the face of an economic
recession or institutional limitations. The
session, which will be led by the executive
team of an agency that has achieved considerable growth in recent years, will present
principles for achieving creative growth on a
shoestring budget with a methodology that
includes research-based findings, participant dialogue, and case studies. This highly
interactive session is organized according
to a list of the “Top 12 Ideas for Achieving Low-Cost Organizational Growth in a
Challenging Economy,” compiled from inquiries and interviews with highly-respected
nonprofit leaders in Chicago.
WORKING TOGETHER TO
INCREASE NONPROFIT
EFFICIENCY
December 3, 2009 from
9 a.m. to 12 p.m.
Jean Hardy Robinson, Management Consultant, JHR Resources
Small and medium-sized nonprofits frequently cope with weak infrastructures and
limited financial resources that diminish
Symposium Keynote Speaker: Janet Lapp,
the ability to fulfill mission. This workshop “Plant Your Feet Firmly in Mid-Air.”
will explore ways that organizations can
work together with the dual goals of increas- Janet Lapp is a licensed clinical psychologist,
ing efficiency without sacrificing individual
and creator and host of the award-winning
program identity or mission niche.
CBS series “Keep Well.” She is also the
editor of the FastChange Letter and author
We will explore examples of cooperation, of three best-selling books.
coordination, and collaboration, and will
clarify distinctions between various types of Symposium Registration: Early bird price
commitments involving two or more orga- is $150. North Park University students
nizations. Shared experiences will dominate
receive a 50 percent discount. Watch for
this highly interactive workshop. The work- registration information starting in January.
shop is not about mergers or acquisitions.
The target audience is executive and operations staff members of small and mid-sized
nonprofits.
BootCamp for New
Nonprofit CEOs
Workshop Registration: Workshops are $75
each. Donors Forum Members and United
Way Partner Agencies receive a 20 percent discount. North Park University students receive
a 50 percent discount.
July 7–9, 2010
Creating Extraordinary Solutions
in Extraordinary Times
May 12, 2010 (Pre-conference Institute), May 13, 2010 (Symposium)
It is the era of change. We know it is not
enough to just “manage change,” but with
limited time and resources, it is a challenge
keeping a firm grasp on the shifting landscape of today’s nonprofit sector. Leaders
who are passionate about embracing change
are better equipped to take advantage of
resulting opportunities, and manage potential threats.
Join us at the 11th Annual Symposium for
Nonprofit Professionals and Volunteers as
we explore the new norms for the social
sector. Focusing on key management areas
such as technology, politics, and constituent
demographics, industry experts and thought
leaders will present trends, opportunities,
challenges, and many “gold nuggets” that
will decode the new landscape.
The Axelson Center BootCamp is designed
to help new nonprofit leaders determine
what should be on their radar screens as
they assume their leadership roles. Targeted
to nonprofit leaders (CEO or ED level only)
who have been in their role for three years or
less, this fast-paced experience will accelerate learning. Each session combines theory
with best practices in the field to give the
participant the tools to get up to speed fast.
Through case studies, lectures, and small
group discussions, the CEOs will explore
issues which are critical to leadership in
the nonprofit context. A team of highly
experienced leaders will lead sessions in the
focus areas of: mission, board governance,
leadership style and capabilities, strategic
management, financial management and
planning, resource development, legal, and
ethical issues.
Registration: There are only 35 spots available. Acceptance into the program is based
on eligibility and availability of space. The
fee of $495 includes course materials, resource manual, and meals.
All programs take place on North Park
University’s main Chicago campus (3225
W. Foster Ave). For more information or
to register, please visit www.northpark.
edu/axelson or call (773) 244-5799.
6
CommunityHealth received the prestigious Alford-Axelson Award for Nonprofit Managerial Excellence in the large organization category during the Axelson
Center’s 2009 Symposium. (left to right) Zoraida Sambolin, Anchor, NBC5 News Today; Rosemary Mauck, Division Manager, JPMorgan Chase Bank; Joseph
B. O’Malley, Vice President of the Board of Directors, CommunityHealth; Kimberly Jones, Business Development Officer, ShoreBank; Judith Haasis, Executive
Director, CommunityHealth; Jimmie R. Alford, Founder and Chair, The Alford Group; Pier C. Rogers, Director, The Axelson Center for Nonprofit Management.
AXELSON CENTER OFFERS VALUABLE
RESOURCES FOR NONPROFITS
Professional workshops, an annual Symposium, and the BootCamp
for New Nonprofit CEOs are just a few of the programs and resources offered by the Axelson Center for Nonprofit Management.
The “Axelson Review,” a free quarterly educational newsletter, provides nonprofit leaders and volunteers with valuable articles aimed
at increasing efficiencies and promoting best practices. Below is
an excerpt from the Fall 2009 edition. To subscribe, please email
[email protected]; include in the subject line “Axelson
Review Subscription.”
The Center also hosts and manages the Greater Chicago Nonprofit
Gateway, Chicago’s premier nonprofit online resource center and
community. This site provides resources, job openings, nonprofit
news, and trainings. The Center recently launched a new version of
the site that includes additional resources and features. To join the
Gateway community, visit http://nonprofit.northpark.edu.
To learn more about the Axelson Center, please visit
www.northpark.edu/axelson or call (773) 244-5799.
IT’S TIME TO TRIM UNEMPLOYMENT TAX
Excerpt from the Fall 2009 Axelson Review—a special cost
savings issue with tips submitted by nonprofit leaders.
As a nonprofit, your organization faces challenges on a regular basis. • Gain the cost-savings/risk management services of the nation’s top
Thanks to federal legislation, 501(c)3 organizations are allowed to
claims monitoring services, which work to save you from paying
opt out of their state tax-rated unemployment system to become a
unwarranted unemployment claims
direct reimburser for unemployment costs. The savings to nonprofits • Pay fewer unemployment taxes. Nonprofits paying into the state
taking advantage of this is significant. The Unemployment Services
unemployment tax system are paying $2.20 for every $1.00 paid
Trust (UST) (www.chooseust.org) provides nonprofits with a safe,
out in claims. UST members are paying in $1.10 for every $1.00
cost-effective alternative to paying state unemployment taxes only
paid out in claims.
available to nonprofits. As a UST member you can:
States allow nonprofits to move out of the state unemployment
• Eliminate a tax-based cost and turn it into a working asset
system once annually on January 1, provided they make notice of
• Only pay the state when there is an unemployment claim charged your decision to do so by November 30.
to your organization (this puts you in control of your money)
• Accrue interest on the money in your account
Submitted by Cheryl Jones, Account Executive,
• Refrain from paying state surcharges unless the state allocates Unemployment Services Trust
those costs to direct reimbursers
7
school of business
nonprofit management
Complete your graduate management degree
or certificate entirely online.
North Park University offers degree
and certificate programs that
accommodate your busy lifestyle.
• Choosefromfourmanagement
degreesandtwograduatebusiness
certificateprogramsavailableonline
• Completeyourprogramofstudy
entirelyonline,intheclassroom,
oracombinationofboth
• NoGMATorGRErequiredifyourcumulative
GPAis3.0orhigherona4.0gradingscale
• Academicscholarshipscovering10
to30percentoftuitioncostsare
availablebasedonyourGPA
For more information, contact Chris
Nicholson at (773) 244-5518 or
[email protected], or visit
www.northpark.edu/sbnm.
Some of the graduate management
degrees and business certificates
available online are:
Master’s Degrees
BusinessAdministration(M.B.A.)
Management(M.M.)
HigherEducation
Administration(M.H.E.A.)
NonprofitAdministration(M.N.A.)
Business Certificates
Leadership
OrganizationalDevelopment