Cleveland East IMA 2015.10

OCT 2015
INSTITUTE OF MANAGEMENT ACCOUNTANTS
CONGRATULATIONS
IMA CLEVELAND EAST
CHAPTER!
www.cleveast.imanet.org
INSIDE THIS ISSUE
2014-2015
Awards
Upcoming Meeting
2
President’s Message
3
Chapter Board
4
Technical Meetings
5
CMA Certification
6
National
10
Student News
12
CPE
13
Strategic Tech notes
14
1st Place
Chapter Competition
Outstanding level of
service
Board members Sandra Brenner and Carlos Chavez
accept the chapter’s 1st place award in the Warner
Division from IMA Chair
Board meeting - TUEsday, OCTOBER 13, 2015
Details on website
Controllers’ Workshop
Friday, Nov 20 - 8 CPE
Student Night
October 20 - Students free
Technical Meetings:
IMPROVE YOUR COMMUNICATION
AND TIME MANAGEMENT SKILLS
Join us for a fun packed evening at Whirly Ball
and have the opportunity to network with
accounting
professionals from the Cleveland East Chapter
Dec 11, 2015
Breakfast meeting with Bill Jelen, Mr. Excel - 4 CPE
Fairlawn - details on website
March 15, 2016
Speaker: Ben Mulling, CMA, CPA, CITP
2015 - 2016 Chair - IMA Global Board of Directors
Save the date - 42st Annual M e o n s k e Professional Development
C o n f e r e n c e at Kent State University Friday, April 29, 2016 and
Pre-Conference Seminar Thursday, April 28, 2016
Connect with Us
Follow Us
Join Our Group
Contact Us
Page 2
PRESIDENT’S MESSAGE
Page 3
SPONSORS
We would like to thank the following organizations for
their support in
sponsoring the IMA Cleveland East Chapter.
If you would like to have your business appear on this page,
please contact
Sandra Brenner at (216)839-7288 or Email:
[email protected].
Pumpkin spice is everywhere! Can you believe it is October
already? Here is to year end planning, budgets, and forecasts!
We had a fantastic September technical meeting with Secure
State going over cyber security. Thank you to all the members
that came out. Secure State provided great insight into how to
think like a hacker and how having this mindset can assist in
making sure your company’s information is secure.
Our October technical meeting is our annual student night. We
will be having a presentation on time management and
communication skills from a Dale Carnegie presenter. After the
presentation everyone is welcome to take part in whirly ball. We
expect to have students from the Cleveland and Akron Chapters
joins us for a fun filled evening. Please come and interact with
future members of the accounting profession.
Make sure you save the date for the Controllers Workshop
November 20th. The details will be available shortly. I want to
send out a big thank you to Sandy Brenner and Robin Schade
for their hard work in putting together a great program.
Happy Halloween everyone!
Deadline for submitting information for next
newsletter is the Monday following the
technical meeting. Send your submissions
to Carol Kuczer at: [email protected]
Page 4
IMA CLEVELAND EAST CHAPTER
2 0 1 5 -2 0 1 6
BOARD OF DIRECTORS
Office
President
Secretary
Treasurer
VP Administration
VP Professional Education
Name
Email
Telephone
Brian Fehribach
[email protected]
(216) 228-8900 x272
[email protected]
(216) 475-8787
Enrico Varricchio
Robin Schade
[email protected]
(216) 228-8900 x262
Brandon Coates
[email protected]
(419) 494-9445
Ernie Brass
[email protected]
(440) 846-1952
[email protected]
(216) 475-8787
VP Membership
Enrico Varricchio
VP Communication
Carol Kuczer
Director - Social Media
Carlos Chavez
Director Student Scholarships
Director Academic Relations
[email protected]
[email protected]
(216) 755-5746
(330) 723-0559
open
Forrest Reed
[email protected]
(216) 870-6739
Director CMA
Sandra Brenner
[email protected]
(216) 839-7288
Director Publicity
Ashley Hinkle
[email protected]
Chair of the Audit
Vince Pona
[email protected]
(440) 347-1139
Need extra help with special projects?
Want to give a helping hand to an accounting student?
Interns are available to help your company. Both the University of Akron and Hiram College have accounting students that are
ready, willing and eager to gain real life experience.
For more information, please contact Robin Schade at 216.227.3011 or via email at [email protected].
IMA GLOBAL CORE VALUES
Respect for the Individual
Highest Standards of Integrity and Trust
We treat each other with respect and dignity, valuing individual and
cultural differences. We communicate frequently and with candor,
engaging in healthy debate and listening to each other, regardless of
position or level. We work hard to create an environment that
respects individuals in an atmosphere of open communication,
growth, and learning.
We understand and abide by the IMA Statement of Ethical Professional
Practice in our everyday actions. Our personal conduct ensures that the
IMA name is always worthy of trust - our members around the globe
deserve nothing less. We treat each other fairly, keep our promises,
make decisions objectively, take responsibility for our actions, and admit
our mistakes. We maintain confidentiality as appropriate.
Passion for Serving Members
Innovation and Continuous Improvement
We enable individuals to use their capabilities to the fullest to deliver
exemplary products and services to members. That enablement
extends to being passionate advocates in advancing our global
profession. We care for all members and each other - building
enduring relationships and driving continuous improvement. We
appropriately recognize our volunteer leaders, who are so giving of
their time and expertise.
We believe innovation and a spirit of continuous improvement are
engines that keep us relevant, vital, and growing. Our culture embraces
creativity and seeks different perspectives. We behave like owners of a
“business,” managing risks and identifying new opportunities in serving
members and advancing the profession.
Teaming to Achieve
We encourage and reward both individual and team achievements,
proactively working across organizational boundaries to always
“remember the member.” Our spirit of team achievement extends to
advancing our professional and to being responsible and caring partners
within our various communities.
Page 5
IMA CLEVELAND EAST CHAPTER
Te c h n i c a l M e e t i n g s
2015-2016
Date
Time
Event
Tuesday, August 25, 2015
6:00 PM
Accounting for a baseball team - Captains game 7PM at Classic Park, Eastlake
September 15, 2015
6:00 PM
Internet Security
October 2 0 , 2015
6:00 PM
Student Night
Friday, November 20, 2015
January 19, 2016
8:00 AM - 5PM Controllers’ Workshop
6:00 PM
Economic Update
February 1 6 , 2016
6:00 p.m.
Tax Update
March 15, 2016
6:00 p.m.
Ben Mulling, Chairman 2015 - 2016 IMA global board of directors
April 1 9 , 2016
6:00 p.m.
Ethics (2 hrs)
May 17, 2016
6:00 p.m.
Financial accounting update
2016 Seminars
Thursday, April 28, 2016
8AM - 5PM
Annual Meonske Conference PreConference Workshop
Friday, April 29, 2016
8AM - 5PM
Annual Meonske Conference
Cleveland East Chapter Anniversaries
Years Members
29
29
26
35
20
20
17
8
4
Vincent Pona
Sandra Brenner
Leonard Gold
Alan Fuller
Patrick Mullin
John Boutton
Frederick Ange
Aleksandra Zimmerman
Lisa Biber
T
N
E
D
TU
S
W
E
N
S
R
E
B
ME M
Thomas Wright
Michael Sheridan
Jessica Krulic
Abigael Dean
Dana Lyon
Michael Grafton
Marie Kyer
Page 6
The preview event for the 2016 edition of Gleim CMA Review begins today! Save 20% when you pre-order the new edition of
Gleim CMA, the exam prep most trusted by ICMA Medal Winners. The new Gleim Premium CMA Review System will feature
over 40-hours of comprehensive videos from university instructors. The new series not only provides in-depth instruction on
multiple-choice questions, but also detailed lectures on the core concepts as well as essay guidance.
The new edition of Gleim Premium CMA Review also includes
• Exclusive access to our accounting team of experts
• A true Access Until You Pass™ guarantee
• The brand new Mega Test Bank, the largest offering available of multiple-choice questions and essays
• Free shipping within the United States
Gleim is dedicated to helping you pass your exams. Did you know that we have an entire team dedicated to providing you with
exam guidance through your entire study process? Contact our team today to learn why Gleim is the most widely-used CMA
exam prep available.
The Gleim CMA Review Team
Gleim Publications, Inc.
4201 NW 95th Blvd
Gainesville, FL 32606
800.874.5346
FAX - 352.375.6940
*Discount expires 10/15/15. Discount is not valid on previous purchases; discount cannot be combined with other offers; 20%
offer is only valid on complete CMA Review Systems, while a 10% discount will be extended to part purchases. Free shipping
limited to the contiguous United States.
Page 7
T H I N G S
T O
C O N S I D E R
A B O U T
C M A
C E R T I F I C A T I O N
THE GOLD
STANDARD
S a l a r y
Cleveland East Chapter
Gleim IMA Chapter
Partnership
Cleveland East Chapter members receive a significant
discount off all Gleim CMA and CPE study materials
including the new ethics course. Your Cleveland East
IMA Chapter has partnered with Gleim to ensure your
success on the CMA exam! Working together, we will
provide you the necessary study tools to prepare for
this difficult exam. Gleim has been preparing
candidates for success with their extensive self-study
course for over 30 years! The Gleim Review System
enables you to identify your weak areas so you know
where to focus your efforts and GUARANTEES that
you will pass each exam part the first time. Our goal
is that you achieve success while minimizing your
frustration, cost, and time. As a member of the
chapter, you are eligible for significant discounts on
any of Gleim’s CMA materials, as well as Gleim CPE.
Findings of IMA’s 20th Annual Salary Survey indicate that professionals holding IMA’s CMA
certification have greater earning power - 24% higher in salary and 31% higher in total
compensation - than their non-certified colleagues. These findings appear in the June 2009
issue of IMA’s Strategic Finance magazine.
C o m p e t i t i v e
A d v a n t a g e
Businesses around the world rely on CMAs for accounting, finance and information
management and most importantly, for the strategic planning and business solutions provided
by these qualified professionals. Companies such as 3M, Boeing, DaimlerChrysler, DuPont,
Hewlett-Packard, IBM, Johnson & Johnson, Milliken and Procter & Gamble recognize that
employing CMAs helps to improve company performance in aggressive global business arena.
P e r s o n a l
S a t i s f a c t i o n
Prove your ability to become a strategic
business partner, while you also enhance your
self-confidence,
your
sense
of
accomplishment, and your resume.
P r o f e s s i o n a l
R e c o g n i t i o n
To learn more about the program, or to print order
forms, visit the Cleveland East Chapter website.
Gleim is excited to partner with Tri-C Corporate
College•to offer a live review for the Certified Public
Accountant exam. This review will be held at the Corporate College East campus with weekly sessions specifically designed to help you pass the exam quickly and
effectively.
This offering is unique in terms of its affordability and
the one-on-one attention you will receive. These review
courses provide candidates with the tools, information,
and knowledge necessary to pass the CPA exam the
first time.
If you are a candidate who wants to pass the CPA exam
quickly and appreciates the added value of a live instructor, call Sheryl Hunt today at (216) 987-0233 or
email [email protected] to register. You can also
check out their CPA web page•for more information.
Class size is limited, so register NOW to reserve your
seat.
Review Schedule Based on Gleim
Publications Corporate College:
§ For the CMA Exam the review
for each part of the exam is
about six weeks.
§ The class meets initially for a
1-hour orientation.
§ 5 more meetings, one a week,
for 3 hours each.
§ Students will take the exam
part covered by the review
within 2 weeks of the last live
class.
§ The review for each successive
exam part begins 1 to 2 weeks
after the review for the previous
parts ends.
The CMA designation represents a broad
business competency and mastery of the
management-level skills required to add value,
drive business performance, and build quality
financial practices within organizations. The
program objectively tests and validate
expertise in areas essential to analyzing,
managing and evaluating business solutions
that contribute to the success of an
organization. The CMA credential indicates a
commitment to excellence based on a strong,
ethical foundation and dedication to lifelong
learning.
Start On Your Road
to CMA Certification Now!
Page 8
•••Gleim is pleased to announce many new
exciting updates to the Gleim CMA Review
course. The CMA Gleim Online course has
been expanded with more multiple-choice
questions, essays, and updates to the digital
book. For the first time ever, Gleim has
included supplemental videos in the online
course, which feature Dr. Passard Dean, CMA.
Save 15% on the newly updated Gleim CMA Review System.
Over 150 new multiple-choice questions are now available in Gleim CMA Review, which includes the largest
test bank in the industry. There are now over 3,100 ICMA-released and expertly authored questions in Gleim
Test Prep. CMA candidates will also notice new functionality within Test Prep. While working in Gleim Study
Sessions within Test Prep, candidates can now open and reference the digital book while answering questions.
This functionality is particularly useful if candidates are frequently missing questions or need more clarification
on certain topics.
The Gleim CMA Review System also now features 20% more essays. CMA candidates can practice answering
exam-emulating essays in the Gleim Online Course and in the Gleim Essay Wizard.
Supplemental videos, featuring Dr. Passard Dean, CMA and Professor of Accounting at St. Leo University, will
be available in the Gleim Online course starting in early April . These videos feature detailed walk-throughs of
the multiple-choice questions that candidates find to be the most difficult. Click here to see a sample of the type
of videos that will be added to the Gleim Online course.
Updates have been made to the Gleim CMA Review digital book to include improvements based on candidate
feedback as well as more elaboration on key topics. The Gleim materials are written by professional educators,
Dr. Gleim and Dr. Flesher, who have over six decades of combined teaching experience. Dr. Gleim was recently
recognized by the Fisher School of Accounting at the University of Florida, a top ten accounting school, for his
“renowned accounting [materials] that to this day are the field's authoritative learning resource.”
Click here•to learn more about Gleim CMA Review's newly updated materials and save 15% now, or you can
try the course for free here.
We look forward to helping you pass the CMA Exam.
Team Gleim
800.874.5346
[email protected]
Gleim Publications, Inc.
4201 NW 95th Blvd
Gainesville, FL 32606
Page 9
Be sure to read this month’s news from accountemps:
“What’s in Store for 2016? Next Year’s Hiring and Salary Trends Revealed ”
www.cleveast.imanet.org/partners/accountempsOct2015.pdf
Download your Salary Guide now!
You can also visit our Salary Center to order a free printed copy, review hiring trends or
calculate local compensation ranges.
Advancing the Profession
IMA is dedicated to rebalancing the accountancy
profession by educating society regarding the
business building role of management
accountants and finance professionals working
inside organizations.
Certified Management Accountant (CMA®) The Gold Standard
Join a leading group of professionals who
have advanced beyond the practical
accounting skill set by earning IMA’s
prestigious global certification, the Certified
Management Accountant (CMA®).
Evolve into a strategic business partner
committed to a standard of excellence grounded
on a strong ethical foundation and a lifelong
commitment to learning.
Position yourself for career advancement and
greater earning power. Gain a significant
competitive advantage while demonstrating
accounting, finance, information management
and strategic planning skills necessary to
drive business performance in the changing
global economy.
VISION STATEMENT
The world’s leading association for management accounting
and finance professionals.
MISSION STATEMENT
To provide a dynamic forum for management accounting and
finance professionals to develop and advance their careers
through certification, research and practice development,
education, networking, and the advocacy of the highest
ethical and professional practices.
Page 10
I M A N AT I O N A L
PUBLICATIONS
Strategic Finance
IMA’s flagship publication is an awardwinning monthly magazine that provides the
latest information about practices and trends
in finance, accounting, and information
management.
Management Accounting Quarterly
MAQ is a quarterly, refereed online journal
that contains in-depth articles by and for
academics and practitioners of accounting
and financial management.
IMA’s mission is to provide a forum for
research, practice development, education,
knowledge sharing, and the advocacy of the
highest ethical and best business practices in
management accounting and finance.
We do this by:
§
§
IMA Educational Case Journal
The IECJ® is a quarterly, online journal
whose mission is to publish teaching cases in
management accounting and related fields.
§
PROGRAMS
§
Educator Resources
IMA provides special tools and resources for
the professionals who are developing the
industry’s future leaders. Academic members
have access to IMA’s ethics curriculum, case
studies, webinars, research grants, mentor
program, and many other teaching resources.
Leadership Academy
The IMA Leadership Academy is designed to
assess your leadership status, enhance your
skills and recognize your leadership
achievements.
IMA Webinars
IMA’s Inside Talk Webinar Series is a highly
popular monthly webinar series that explores
relevant topics from your professional and
delivers timely information to broaden your
knowledge and improve your performance.
NETWORKING
LinkUp IMA
The online professional network created
exclusively for IMA members allows you to
participate in groups related to topc areas or
industries, IMA regional chapters and
councils, subject matter and CMA study
groups. You can post announcements and
events, utilize share workspaces, find jobs
and more.
Linkedin
Strengthens and extends your existing
network of trusted contacts. It is a networking
tool that helps you discover inside
connections to re-connect with colleagues
and classmates, power your career and get
answers.
§
§
Offering a rigorous, highly respected
credential - the CMA - that
recognizes and rewards expertise
Building a peer network of
professional relationships to share
industry experience, access career
opportunities, and make business
contacts to last a lifetime
Providing
extensive
education
programs to advance professional
knowledge, increase leadership
potential,
and
satisfy
CPE
requirements
Giving a voice to the profession with
insightful and timely journals and
newsletters
Promoting leading-edge research
and industry best practices
Advocating for the profession in a
challenging regulatory environment
IMA currently represents more than 60,000
accountants and financial professionals in
business. The participation of each of our
members makes the success of our mission
possible.
KEY CONTACTS
Wore Giotta,
Community Relations Associate of
East Coast Chapters
IMA
10 Paragon Drive
Montvale, NJ 07645-1718
Telephone (800)638-4427
Email: [email protected]
IMA Website: www.imanet.org
Power Your Potential
IMA is the resource for developing,
certifying, and connecting the world’s
best accountants and financial
professionals working in business.
Make a Difference in the Profession:
Join IMA’s Global Board of Directors
Don’t miss your chance to lead,
encourage, and inspire your peers and the
accounting profession by joining IMA’s
Global Board of Directors. IMA®
(Institute of Management Accountants)
is accepting applications from strategicminded members interested in
contributing to the future direction of the
organization. All applications must be
received by October 16, 2015.
Serving on IMA's Global Board of
Directors can help you take your
leadership to the next level. You can
grow your critical leadership skills,
become an active participant in setting
the profession’s agenda, and empower
the profession through external
organizations. Join us in the execution of
our vision by applying for one of these
open volunteer positions:
·
Committee Chair (also referred
to as Chair-Elect), term July 1,
2016 – June 30, 2019
·
Global Director, term July 1,
2016 – June 30, 2018
To learn about the responsibilities,
attributes, and time commitments for
these positions, visit IMA’s website.
Want to nominate someone? E-mail Pat
Stefanczyk, IMA vice president of
governance and volunteer relations, at
[email protected] or call her at
(800) 638-4427, ext. 1592, or +1 (201)
474-1592 (if outside the U.S.) by
October 9, 2015.
Build your career, your story, and your
leadership profile by applying for IMA’s
Global Board of Directors today.
Page 11
IMA Chair Ben Mulling Named CFO of the Year
IMA® (Institute of Management Accountants) is proud to announce that Ben Mulling, CMA, CPA, CITP, IMA
Chair and Chief Financial Officer (CFO) of TENTE Casters Inc., was recently named the C-Suite CFO of the
Year by the Cincinnati Business Courier.
The CFO of the Year program is an extension of the Courier 250, a publication detailing the 250 biggest and best
companies in the Tri-State. This publication includes the region's 150 largest private companies, all public
companies in Cincinnati, Ohio, and 25 of the largest nonprofit organizations and the region's largest employers.
Mulling was among 20 other financial professional finalists at the eighth annual CFO of the Year Awards
reception, being recognized for outstanding performance in their roles. His advice for an aspiring executive:
“Never stop learning and enjoy working with different types of people in your company. It’s important that you
push yourself in all areas, which include technical skills like certifications and degrees and nontechnical skills like
leadership and communication skills.”
Jeff Thomson, CMA, CAE, IMA president and CEO, said, “Ben’s commitment to family, self, and business,
probably in that order, is what makes Ben who he is. He has been involved and engaged with the management
accounting and finance profession from an early age, and his success can be attributed to his technological savvy,
his comfort with change, and ability to empower others.”
Mulling is the CFO of TENTE Casters, Inc., of Hebron, Ky., a multinational manufacturer of mobility solutions to
the institutional and medical markets. He assumed this position in 2008 at age 28. Prior to this position, he was
the company’s controller.
On the volunteer side, Mulling is the Chair of IMA’s Global Directors for the 2015-2016 fiscal year. He also
serves as chair of IMA’s Governance Committee. He has had a long history of leadership with IMA, beginning
with his service on IMA’s inaugural Young Professionals Committee in 2008. Since then, he has served three
terms on IMA’s Global Board of Directors, on IMA’s Planning and Development Committee, and as chair of the
Performance Oversight and Audit Committee. In addition, he supports the profession as an adjunct instructor of
management accounting at Indiana Wesleyan University and Xavier University and helped establish an onsite
CMA® (Certified Management Accountant) review course at Xavier University.
Mulling received his undergraduate degree in accounting from Northern Kentucky University and his MBA from
Liberty University.
He resides with his wife, Anna, and children Ethan, Ella, and Evan in Hebron, Ky.
Page 11
Let IMA help you imagine new directions for your career path. Join us in the magical place called Disney to
experience inspiring speakers, create new contacts, and connect with industry leaders in a dynamic, friendly
environment. Enjoy three days of learning, networking, and fun.
Registration Rates
Early Registration Through October 23
Registration Rates October 24 - On-site
IMA Student
$140
$160
Member
$175
$195
Nonmember
$250
$270
For more information, go to:
http://www.imanet.org/programs-events/student-leadership-conference/home
Continuing
Professional Education
Page 12
New courses included in the Gleim Online CPE
- Accounting for Investments
- Accounting for Property, Plant, and Equipment
- Adjustments to Income Tax Liability: Credits, Alternative Minimum Tax, FICA (2015)
- Audit Evidence: Applications
- Calculating Tax Liability for C Corporations (2015)
- Choosing the Best Entity for a New Business
- Compilation of Financial Statements -- Clarified Standards
- Corporate: S Corporation Formation and Operation (2015)
- Corporate: Taxable Income (2015)
- Cost Accumulation Systems -- Traditional
- Estates, Trusts, and Wealth Transfer (2015)
- Ethics for Tax Practitioners
- Financial Statements: Disclosures
- Fraud and the Sarbanes-Oxley Act
- High-Income Employees: Highly Compensated Employees Hot Spots
- Hot Topics for Landlords: Residential Property Investors (2015)
- Individual: Above-the-Line Deductions and Losses (2015)
- Individual: Accounting Methods, Filing Status, and Personal Exemptions (2015)
- Individual: Business Expenses/Losses (2015)
- Individual: Exclusions from GI (2015)
- Individual: Gross Income (2015)
- Internal Control: Basic Concepts for the External Auditor
- Introduction to Financial Statement Analysis
- Leases
- Limited Liability Companies
- Payroll (2015)
- Reporting Income from Debt Cancelation
- Review of Financial Statements -- Clarified Statements
- Saving Your Clients Money and Getting Repeat Business: Tax Planning (2015)
- Schedule C Hot Spots: Sole Proprietors (2015)
- Self-Employed Payroll Hot Spots: S Corporation and LLC Compensation (2015)
- Staying Current with Tax Laws: Federal Tax Update (2015)
- Tax Procedures (2015)
- Valuing Inventory to Avoid Poor Pricing Decisions
- What You Need to Know about Tangible Property Changes: Final Tangible Property Regulations (2015)
View these new courses as well as our entire listing of over 75 courses including those which cover Accounting, Auditing, Regulatory Ethics, Management, Business Law, and Taxation at http://www.gleim.com/accounting/cpe.
Please contact Debbie Martin, CPE Administrator by 09/06/2015 to take advantage of a special offer of up to 40% off the regular price of our CPE packages.
[email protected]
Hours Mon-Fri 8am - 7pm EDT
352.375.0772 Ext. 414
Please visit our home page.
800.874.5346 Ext. 414
http://www.gleim.com/
352.375.6940 FAX
Page 13
S t r a t e g i c Te c h n o t e s
Michael Castelluccio Technology Editor
KICKSTARTER REINCORPORATES AS A PUBLIC BENEFIT CORPORATION
Kickstarter founders Charles Adler, Perry Chen, and Yancey Strickler Kickstarter, the crowdfunding site where you
can get about $9 million venture funding when you invent a new playing card game, has announced it’s shifting over
to the new capitalism. The company will now pursue the public good first and profits second.
On Sunday, September 20, the founders of Kickstarter, the online crowdfunding company, announced, “Kickstarter
Inc. is no more. We’re now Kickstarter PBC—a Public Benefit Corporation.” The public good now will replace profit
in the company’s charter as its primary reason for being, and transparency will become a scheduled reality.
A quick look at the company’s metrics over its first six and a half years reveals an impressive profile for a service that
funds new projects for anyone. The total amount pledged to Kickstarter projects is now $1,955,544,585, and those
funds came from 9,471,362 backers, about three million of whom are repeat backers. The number of successfully
funded projects is 92,736, ranging from smartwatches to movies. Most projects raised less than $10,000 but
increasing numbers reached six or even seven figures. (Stats are from www.kickstarter.com, which are updated
daily.)
HARD-CODING THE NEW CORPORATE PHILOSOPHY
In the Sunday announcement, the company founders, Perry Chen, Charles Adler, and Yancey Strickler, explained
what a Public Benefit Corporation is and why Kickstarter was altering its charter.
First they explained that changes were needed to make PBCs even possible. “Until recently, the idea of a for-profit
company pursuing social good at the expense of shareholder value had no clear protection under U.S. corporate law,
and certainly no mandate. Companies that believe there are more important goals than maximizing shareholder value
have been at odds with the expectation that for-profit companies must exist ultimately for profit above all.”
PBCs have accepted the common good and see beyond the limited benefits of shareholders and staff. “Benefit
Corporations are for-profit companies that are obligated to consider the impact of their decisions on society, not only
shareholders. Radically, positive impact on society becomes part of a Benefit Corporation’s legally defined goals.”
“While only about .01% of all American businesses have done this, we believe that can and will change in the coming
years. More and more voices are rejecting business as usual and the pursuit of profit above all.”
Kickstarter will be joining Patagonia, a high-end outdoor clothing company, and This American Life, which started
as a public radio show.
For an idea as radical as replacing profit with the common good, you might expect no small amount of turmoil on the
way to this decision to reincorporate. On the contrary, the founders say, “There was not a single dissenting vote by a
Kickstarter shareholder to re-incorporate as a Benefit Corporation.”
Page 14
S t r a t e g i c Te c h n o t e s
Michael Castelluccio Technology Editor
A genetic predisposition probably had something to do with the decision. “From Kickstarter’s inception, we’ve
focused on serving artists, creators, and audiences to help bring creative projects to life. Our new status as a Benefit
Corporation hard-codes that mission at the deepest level possible to guide us, and the future leaders of Kickstarter.”
Item 3 of the company’s charter further defines its anti-egalitarian spirit:
“3. Kickstarter supports a more creative and equitable world.
Kickstarter will annually donate 5% of its after-tax profit towards arts and music education, and to organizations
fighting to end systemic inequality as further defined in sections 4(c) and 5 (c).”
Kickstarter has its headquarters in Brooklyn, but the company is reincorporating in Delaware, which began allowing
Public Benefit Corporations in 2013.
HALL OF FAME
For a company that was once dubbed by The New York Times the NEA (National Endowment for the Arts) of the
crowdfunding world, you would think the for-profit side of the organization would be the most stressful. Actually,
the enterprise is very popular pushing its current $2 billion total pledged by 9.5 million backers.
A glance at its current homepage highlights four staff picks (these were up on Tuesday, September 22 when this was
written). There’s a solar phone charger called Little Sun Charge from Berlin, Germany, that’s 417% funded; a
podcast titled “Talking Machines” from Cambridge, Mass., that discusses machine learning research that’s 68%
funded; a sci-fi battle gaming system called Warpath from Nottingham, U.K. that’s 747% funded; and a training
group called REFOUNDRY that trains formerly incarcerated people to repurpose discarded material into home
furnishings—the group is also from Brooklyn, and is 31% funded.
In the top 10 Kickstarter projects over the first six years, the Pebble smartwatch holds first and third place overall.
The Pebble Time watch received $20,338,986, and the Pebble E-Paper Watch for iPhone and Android was funded
$10,266,845 from 68,929 backers.
The Pebble Smartwatch
Second place all-time, so far at least, is something called the Coolest Cooler. This item is a 55-quart capacity cooler
with a blender, Bluetooth water-resistant speaker, a USB port for charging electronics, a bottle-opener, built-in
plates and ceramic knife, a cutting board, a built-in LED-light, and cup holders. Sounds wacky, right? Well, Time
magazine listed it as one of the 25 best inventions of 2014, and 62,642 backers kicked in $13,285,226 to get it
going.
Six Kickstarter-backed films have been Academy Award nominees, with “Inocente” winning an Oscar in 2013.
Artworks funded by Kickstarter backers have been exhibited at the Smithsonian, the American Folk Art Museum,
MoMA, the Whitney Biennial, and the Kennedy Center.
Page 15
S t r a t e g i c Te c h n o t e s
Michael Castelluccio Technology Editor
One of the film projects, ”Veronica Mars,” was submitted as a project when the series was cancelled and the
director was unable to get funding from Warner Brothers for his feature film script. The project was offered on
March 13, 2013, and the requested $2 million was reached in less than 10 hours. On the last day of the
campaign, the project broke the record for the largest response to a Kickstarter film project–$5,545,991 and
ninth place overall in the top 10.
Number four on the top 10 list is easily the most quirky and surprising. A playing card game called Exploding
Kittensholds the current record for most backers ever (219,382), closing on February 20 of this year with
$8,782,571 in promised funding. The original goal was $10,000, and the kittens did that in eight minutes. All
backers were promised a first delivery of the $20 game when production was completed.
Although they occupy an interesting niche, the founders of Kickstarter have had some rather spectacular
successes for what began as a failed effort to fund a pair of DJs to travel to New Orleans for a Jazz Fest.
In an interview with The New York Times,Chen and Strickler expressed the hope that Kickstarter might set an
example for this different approach to entrepreneurship. “As younger companies come up and think about how
they operate and how they want to be structured maybe they won’t be so easily swept up by all the usual
choices.Maybe they’ll be thinking long term, thinking about how to look after the things they care about.”