Mark Koscinski NFP

Lessons From the New IRS Mileage Rates

Each year the IRS updates its allowable mileage rates.  It recently announced the following rates for 2023:

65.5 cents per mile for business use;

22 cents per mile for medical purposes; and

14 cents per mile for charitable purposes.

The latter two rates are unchanged from 2022. The new business mileage rate has increased by three cents per mile from the previous year.  The IRS claims the business rate is based on the fixed and variable costs of operating a vehicle and the medical reimbursement rate is based only on variable costs. Finally, the charitable contribution rates are determined by statute.  How do the new rates impact NFP managers? 

Right off the bat, it means costs will rise.  If your employees are using their vehicles for work purposes and you reimburse them at the IRS mileage rate you will need to pay them three cents per mile more than you did last year. However, that is not the real impact of these rates. The true impact may be far more subtle.  

Let’s dig beneath the surface of these numbers.  If we accept the IRS computations at face value, 22 cents per mile is the variable cost ( fuel, maintenance, etc.) of operating a vehicle. An additional 43.5 cents per mile then is the fixed cost of vehicle operation.  In short, the fixed costs or overhead application rate is about twice that of the variable cost. The largest component of the fixed cost is the depreciation of the car, which one source claims to be about 40% of the entire cost of operating the vehicle. 

This is just one example of a trend in the American economy. The percentage of fixed to total costs of providing products and services is rising. This is no less true in the NFP sector than in other industries.  There are many reasons for this, including the expanded use and cost of technology to conserve on personnel costs by improving productivity. NFP managers need to keep this principle in mind when they are applying for grants and costing out services.  Yes, we are not in the business of making a profit, but we do need cash flow to keep the doors open, provide a living wage for our employees, and fulfill the organization’s vision and mission.  Not taking into consideration fixed costs is a losing proposition in the long run and will lead to the eventual demise of the organization. Some of you may respond by saying many funders will not provide for overhead. My answer to that is to take a look at activity based costing, a topic previously discussed in this blog…

The second takeaway is the impact on volunteers and donors.  The charitable mileage rate is about two-thirds of the variable cost of operating a vehicle. So, the volunteer who can itemize on their tax returns (admittedly, few and far between these days because of the higher standard deduction on the federal income tax return) actually “lose” money driving to your facility to volunteer.  The deductible amount of charitable driving doesn’t even cover the variable cost of operating the car. Using this math, it might be better for  the volunteer to simply write a check that is completely deductible than to drive down to your facility and volunteer.   Obviously, this is not a perfect substitute for actual volunteering, but this problem is something NFP managers need to be aware of.  Some strategies for helping defray costs would be to allow volunteers to do as much as possible remotely so they can “bunch” their physical travel time to minimize expenses and to consider paying small stipends for actual time spent on premises. This will increase costs but the stipend says yes, we know it costs money for you to come here but we want to show our appreciation. 

It is troubling that Congress and the states are  so stingy with the charitable mileage rates.  In two scant years (2025) the Trump era tax changes will lapse and the higher standard deduction will disappear.  If this is the case, more and more people will begin itemizing again. Consider contacting your federal and state legislators to push for higher deductible mileage rates. The NFP  sector does a great job helping out those in need. It is also vital to the health of the economy but very few people talk about this. It is time we did. Let our legislators know how much the charitable contribution deduction and the charitable mileage deductions mean to our volunteers and donors.  Perhaps this will increase the volunteer participation in NFP organizations. 

Cost of operating a vehicle: https://companymileage.com/howmileageratedetermined/

Mark Koscinski NFP

Hail And Farewell!

The holidays are always a joyful season for me, given I have five  grandchildren. They are a true blessing in life.  This year though, the holiday season will be a little bittersweet. The end of this year will also see a wonderful and well known professor retire from Moravian University (“Moravian” or “the University”).  Dr. James West is an economist who also writes some very good poetry and I daresay, is a dear colleague of mine on the faculty of the School of Business and Economics. He has been a mainstay of the faculty at Moravian since 1989 and will be leaving the classroom at the end of this semester for a sabbatical semester and then onto retirement.

One of Dr. West’s articles is named Attaining Prosperity: A 9 “P” Economic Model.  Jim has successfully used this model to teach budding new economics majors at Moravian. He postulates  Prosperity is the result of four microeconomic P’s (Production, Property, Prices and Profits) and four macroeconomic P’s (Public Sector, Private Sector, Philosophy, and Philanthropy). Combined, these eight factors result in the final P: Prosperity.  

As this is a blog about Not For Profit (“NFP”) management, I want to focus on the philanthropic factor. This is often omitted in a discussion of economic prosperity. Jim makes it an explicit part of a sound economy. Philanthropy is derived from the Greek work philanthropos, which means humanely or kindly, terms many do not connect to a capitalist society.  Jim states the philanthropic sector of the economy “…depends on the voluntary support of individuals, largely in the private sector, to support a myriad of humanitarian activities, in education, health, the arts, and many more quality of life components essential to the society’s definition of prosperity”.  

This is certainly a valuable insight.  One recent report states NFP organizations contribute on average 5.7% of the U.S. GDP in recent years.  It also claimed the NFP sector contributed $1.4 trillion dollars to the economy in the second quarter of 2022 alone (1).  This number is certainly dwarfed by both the public and private sectors, but nevertheless stands as a significant contribution to American economic life. Of course, the quality of life issues generated by the NFP sector are not so easy to quantify.  Who can deny a symphony orchestra playing a piece by Beethoven doesn’t improve our quality of life? The orchestra is largely supported by donations and subscriptions. That is the economic part of the equation.  The utility (to use an economic term) generated by listening to the music largely goes unmeasured. In short, beyond the quantitative measures (the impact on GDP) there are the qualitative aspects as well, enhancing human enjoyment and existence. 

He further points out, “ A society that promotes honesty and trustworthiness will support stable institutions in the private, public, and philanthropic sectors”.  These values will provide a solid economic structure for society. I would like to expound on this insight. They are in fact critical to economic growth, but we always have to be concerned with the moral dimensions of the underlying Philosophy as well.  For instance, my profession (accounting) has always emphasized the importance of “giving back” to the community.  This can be done by donating your time, talent, or treasure. We need to always keep that in our mind when we talk about what makes a strong economy, and to even more forcefully argue for greater participation by all in the NFP sector.  The “9 P” argument provides another reason why everyone’s  participation is necessary: it is part of a strong economy. NFP directors, managers, and employees can all be proud of their cumulative efforts and their contribution  to our economy.  

So, in closing, let me wish all of you a wonderful holiday season, a happy New year, and a well deserved retirement to my friend! May you have a healthy, and dare I say, prosperous New Year!

  1. https://independentsector.org/resource/health-of-the-u-s-nonprofit-sector/#:~:text=Value%20of%20Sector,the%20sector%20in%20recent%20years.
Dr. James West working with a student at Moravian University
Mark Koscinski decision analysis, NFP

SBF, FTX and NFPs

FTX, SBF, and NFPs

Unless you are living in a bubble, you know all about the crash and bankruptcy of FTX, Sam Bankman-Fried (known as SBF), and “effective altruism”.  What can NFP managers learn from this sad episode? Without going into all of the intricacies of this case, here are some takeaways for managers of any organization:

  • Beware of Groupthink.  One of the venture capitalists (Anthony Scaramucci, briefly Donald Trump’s communications director) was asked why the due diligence on FTX did not catch the alleged fraud. His answer was very revealing.  First, FTX was a real business, unlike that of Bernie Madoff.  His contention was that the subsequent operation of the business was the genesis of the fraud. Fair enough.  But again, why didn’t the investigation of the business disclose any red flags?  The venture capitalist’s answer:  Groupthink.  Paraphrasing, he said everyone who looked at the enterprise, including the lawyers and the accountants conducting the due diligence, wanted to see a good business.  NFP managers, beware of groupthink.  Make sure you get diverse opinions before you make a critical decision. Tolerate opinions different from your own. Even outlandish points of view may sharpen your thinking supporting  your decision.
  • Beware of the Halo Effect. The halo effect occurs when your positive feelings about someone or something overflows into another, often unconnected area. For instance FTX used some influential figures such as Shaquille O’Neal and Tom Brady as spokespeople. Their knowledge of cryptocurrency might be questionable, but their star power brought a lot of positive publicity to FTX.  Some of them are now being sued by investors. Additionally, SBF was a big contributor to political causes.  We are all prone to the influence of the halo effect.  How should NFP managers deal with it?  Slow down to analyze before making a decision.  Be aware of your intuition. A big decision or a big investment requires a lot of thought and analysis.  Don’t shortcut it because of someone’s halo.  
  • Risk Management is essential! Risk is the obverse side of the return coin. SBF’s significant other, who managed some of the FTX funds, basically admitted there were no risk management controls in place.   This is a stunning revelation from a financial organization.  Scaramucci said the rising interest rate environment was the cause of the FTX collapse.  There are many risks any enterprise incurs (such as hazard risk, credit risk, economic downturn, etc.) but any financial organization should be keenly aware of this risk. Small NFPs don’t necessarily have to worry about such things as bond duration and asset liability management, but a good risk control management program is essential to any enterprise.  Catalog the risks your organization is facing and design an effective risk control program. 

Don’t abandon technology and cryptocurrency because of this disaster. Cryptocurrency may not be forever, but it will be around for at least a while. Your NFP might consider taking cryptocurrency as a donation. Many major companies allow customers to pay their bills with cryptocurrency already.  Make contributing easy for your donors.  Don’t make them convert their crypto-assets to cash before they donate it to you.  NFPs will often accept all kinds of assets, including real and tangible property.  Why not crypto? Continue to monitor developments in this field. Be on the lookout for opportunities for donors to send your organization cryptocurrency.   To do this you will need to have at least a rudimentary understanding of the crypto-world.

Mark Koscinski Uncategorized

For the Good of the Profession

For the Good of the Profession

This blog is usually devoted to not-for-profit organization management issues, but today I would like to deviate from that subject and talk about some developments in my beloved accounting profession.  As many of you are aware, the regulators in virtually all jurisdictions require 150 credits (five years of college education) for professional licensing as a certified public accountant (CPA). This has been the norm for almost four decades now. For instance, Florida was one of the first states to require a fifth year of college to qualify for a CPA license back in 1983. Other states fell into line until today only the U.S. Virgin Islands does not require 150 credits for licensure. 

 Interestingly enough, the extra 30 credits do not have to be taken at the graduate level or in a business related subject at all.  Students can satisfy the requirements by taking classes in any academic subject as long as the additional credits appear on a college transcript.  In recent years one of my students completed a second bachelor’s degree in music and that qualified her to become a CPA when she passed the Uniform CPA Examination.  Other students will complete their bachelor’s degree and then take additional courses at a community college. 

What was the purpose of requiring another year of college education?  Presumably the business world was becoming  and still is becoming) more and more complex and the profession recognized it over forty years ago.  As the American Institute of Certified Public Accountants (AICPA)  website (1) notes:  “A certified public accountant (CPA) in today’s environment must not only have a high level of technical competence and a sense of commitment to service, but must also have good communications and analytical skills, and the ability to work well with people. Employers are looking for individuals who have the ability to analyze and evaluate complex business problems and the interpersonal skills and maturity to make decisions in a client- and customer-service environment.”

Why were business subjects or additional accounting courses not required?  I think a close reading of the above quote puts everything into perspective.  At the time the profession seemed to believe there were several deficiencies in the training of accountants, including communication skills. Therefore, even more liberal arts courses would help an accountant become a more critical thinker and better business person. I also believe the profession wished to have well-rounded professionals who could function not only as a CPA but as an informed member of society.  As I tell my students, accounting firms can hire computers to do accurate accounting. However, the firms are looking to hire interesting people who can relate well with the clients, stakeholders, and other employees of the firm. I believe this has happened but I also think it is time to rethink the 150 hour requirement.  

To be sure I don’t want the 150 hour requirement to be abolished.  That would be a step backwards in my opinion. State Boards of Accountancy are not inclined to do that either since there is reciprocity and portability among the various states. CPAs licensed in one State can temporarily work or be licensed in another State since each has similar educational  requirements.  Removing the 150 credit hour requirement would need to be done by all jurisdictions or there would be mass confusion as CPAs from one state tried to work in another.  No one wishes to see that.  

The requirement does have several serious implications though. First, the extra cost has increased the barrier  to entry.  While the AICPA disputes this, the actual results seem to tell a different story.  Minority groups are underrepresented at the professional level in accounting firms (2) and some believe the 150 hour requirement is a cause.The total number of accounting graduates seems to be dropping (4) and firms are afraid they will not be able to secure sufficient talent in the near future.  The latter concerns were expressed at a meeting of the State Board of Accountancy of NJ during its May 2022 meeting (4)  During the same meeting the State Board took direct aim at the fact the additional credits did not have to be in a business related subject,  saying this requirement “…makes little sense.”  It should be noted that even the AICPA believed most students would pick up the additional education through graduate programs such as a Master’s of Accountancy degree.   The NJ State Board also  noted there seems to be very little correlation between the extra year of college education and success as a CPA.

As a result of these concerns, the NJ Board approved a “Work for Credit” program where students can earn 30 credits by working in a co-op program with an accounting firm. Students will work for nearly a year with a sponsoring accounting firm to achieve the extra 30 credits.  Since the students will be paid, there will be significantly less financial burden on them.  Hopefully, this will also increase minority participation within the profession. I am very much inclined to agree with this approach to solving some of the problems in the accounting profession.  Afterall, who can disagree with better trained CPAs and greater opportunity and  participation in the profession? 

  1. https://us.aicpa.org/becomeacpa/licensure/requirements#states
  2. https://www.accounting.com/resources/minority-accountants/
  3. https://www.journalofaccountancy.com/newsletters/academic-update/how-faculty-can-address-declining-accounting-enrollments.html
  4. https://www.njconsumeraffairs.gov/acc/Minutes/accountancy-minutes-051922.pdf
Mark Koscinski NFP

Final Fundraising Campaigns of the Year

As the Thanksgiving Day holiday fades into the rearview mirror and Giving Tuesday (five days after Thanksgiving) looms, it is time for smaller NFP organizations to think about making final fundraising campaigns for the year. 

  1. It is definitely worthwhile to make the last minute pitch for contributions for both Giving Tuesday and for year end.  While an email blast is definitely in order (and maybe all you can do prior to Giving Tuesday) , your organization might think of a little more personal message, such as a video of your staff. People react better to seeing other people and identifying with them rather than getting a more impersonal email request. 
  2. Make sure your website has a very visible donation button as the website opens.  Do not make potential donors hunt for ways to make a contribution.  Make it easy for them.
  3. Stay away from saying “Your contribution is tax deductible!”.  Yes, it is but only if the donor itemizes their charitable contributions on Schedule A of Form 1040.  Remember, the standard deduction is $25,900 for a married couple filing jointly in 2022 and will be even higher in 2023.  Since state tax deductions (both income  and property tax) and mortgage interest deductions are capped, it is extremely difficult for couples to itemize  deductions unless they make large charitable contributions or have extraordinary medical expenses. It is even tougher in 2022 since the limited “above the line” charitable contribution deduction has been eliminated. This was an expedient that was adopted during the COVID crisis and was never intended to be permanent. Instead of focusing on the tax deductibility, NFPs should focus on the intrinsic value of contributing. Making a charitable deduction is a great good in itself. Economists even have a name for this phenomenon: other regarding preferences. People attach value to the well being of others as an end in itself.  That should be your main selling point. 
  4. Have your year end forecast ready. Knowing what the contributions will be used for will be helpful when answering questions from donors about why your organization needs the funds.
  5. Time to do winter cleaning.  This is a great time to reconcile all of your general ledger asset and liability accounts to the subsidiary ledgers.  Why is that important?  There are a couple of reasons.  First, any unrecorded donations hung up in suspense accounts or as a reconciling item in a bank reconciliation can be appropriately recorded before year end.  We will come back to the importance of this in a moment.  Second, these unreconciled transactions can often be the result of fraud or losses resulting from poor accounting controls.  You do not want to be embarrassed by announcing an unanticipated loss midway through a contribution campaign. Third, reconciling accounts now and taking care of any issues will assist in closing the books at year end as the accounts will be clean through calendar year end. 
  6. Make sure you are ready to provide charitable contribution information to your donors at year end.  While your organization may use a fiscal year for bookkeeping purposes, your donors will be filing their tax returns on a calendar year basis. Even though the odds of actually using a charitable contribution deduction have been greatly reduced, a few of your  larger donors might still be able to use their deduction.  This is why going through your general ledger before year end and reconciling the accounts is of such importance.  You want to make sure all of your donors’ contributions have been appropriately accounted for.  Large donors may be scared away from contributing  in subsequent years by the appearance of poor controls over donations. Remember, the IRS requires an organization to provide adequate contemporaneous documentation of charitable contributions for donors.  This is a complex topic when it comes to noncash contributions so you may need help on the required reporting.   Also, remember that volunteer services are not deductible. 
Mark Koscinski NFP

Remembering What is Important

As the fervor and fevered pitch of Election Day  recedes into the rear view mirror, we inexorably move towards Thanksgiving and the subsequent holiday season. During this time, we have a duty to  kindly remember those less fortunate than us  and those in the Not-For-Profit (NFP)  world who help the disadvantaged  as best they can.  How can we help? You know the formula: donate your time, talent and treasure. Please consider volunteering at your local charity, whether it is a church, synagogue or any other NFP  organization.  Give generously to your local food bank, particularly at Thanksgiving time. Make a donation to your favorite NFP organization to help it defray its operating costs. If the economy slips into a recession as many project, funds for NFP organizations begin to dwindle. will

Look around you to see where you can help.  The needy are often hiding in plain sight. I  work at a major university. Several years ago faculty lunches were disappearing from the kitchen refrigerator.  It took us a day or two to figure out a student who couldn’t afford to eat had to resort to taking food to survive. We simply didn’t comprehend  that students at  a major university could be in such desperate straits.  We weren’t looking around and were oblivious to the plight of our fellow man. After leaving a message about the food bank in the refrigerator the lunches were left alone.

 I can’t even begin to tell you how amazed I am at how many students visit the college  food bank.  For them, it is often a choice of skipping meals or buying a textbook.  To their credit (no pun intended), these students  choose to sacrifice their current needs for the prospect of doing well in class.  Yes, I understand about the cost of college but I do have a soft spot for those who are working to improve themselves even at the cost of going hungry.  They deserve our support

We often get so caught up in our lives that we need to step back and revisit our duty to our fellow man.  To paraphrase a  great literary character, “Mankind is our business”.  And we all know what happened to that fellow when he didn’t heed his own advice. 

Mark Koscinski NFP

Some Modest Accounting Suggestions for the NFP World

As the haze of the Spring semester has sufficiently dissipated, I’ve had a little time to ponder the content  of my Not For Profit Accounting class. Transparency is the watchword of the era, and I think NFP accounting standards are not as helpful as they would be.  As a result I have a few, mostly radical suggestions for the Financial Accounting Standards Board and the regulation of NFP accounting:

  • Allow fund accounting for NFP entities.  Yes, you heard me right, but don’t make it mandatory.  Make it an election if the organization meets certain requirements.  For instance, take a small church congregation.  At the beginning of the year the minister distributes pledge cards.  The members of the congregation complete the cards and in my experience do make the contributions as pledged.  Some don’t but this is easily handled within the framework of the modified accrual basis of accounting. Wouldn’t the use of fund accounting be more meaningful in this context than the current accounting? Additionally, the reconciliation of actual results  to the budget municipalities must do in their Annual Comprehensive Financial Report would be of great interest to many stakeholders of a NFP organization. Wouldn’t it be great to have a management discussion and analysis section of the annual report just like municipalities do? How about the statistical section municipalities are required to report? I know I would find all of this information interesting. 
  • Allow the use of the old classification of net assets. The current classification on the statement of financial position divides net assets into donor restricted net assets and net assets without donor restriction. I liked the previous disclosure that split net assets into unrestricted, temporarily restricted and permanently restricted net assets. Additionally, I like the idea of including assets restricted by board of directors or trustees  in restricted net assets, with the appropriate disclosures of course.  Finally, net assets with a purpose designated by management should be allowed on the face of the statement of financial position.  Yes, this would be a little more complicated but I believe it is much more meaningful than the current schema. The current disclosures hide the intent of management and the board somewhere deep in the footnotes.  Why not be “upfront” about intentions? Wouldn’t stakeholders be interested in that as well? 
  • Use activity based costing and management. Yes, I know this is difficult as well.  However, Gary Cokins, the guru of activity based costing has developed a rapid prototyping model for ABC that even smaller organizations can use.  Why would an NFP organization want to put itself through such a strenuous introspective exercise?  Well, there are a lot of reasons including forming a basis for enterprise performance management.  Also, think about what happens when your organization is applying for a grant.  Donors are loath to fund overhead.  Since ABC traces costs rather than allocating them, your organization would be on a much firmer footing and have a more convincing argument when applying for a grant. 

Yes, these suggestions could complicate the lives of many NFP managers and accountants, but they also would make your organization’s finances much more transparent to stakeholders.  Your organization would become more competitive finding the allusive donation dollar.

Mark Koscinski NFP

Watch Out! The IRS is Just Around the Corner

The IRS issued some interesting rulings lately, denying tax-exempt status to some organizations in several private letter rulings (PLRs). PLRs are not considered to be precedents that can be used in other cases because they are often very fact based. Nevertheless, they can provide some insight into the IRS organizational thinking and provide guidelines for future action. This outstanding article by Cory Halliburton of Freeman Law provides analyses of these PLRs.

At the same time, one has to wonder about how NFP organizations will fare in the future as the IRS plans to add 80,000 new employees. The Treasury Department has estimated the tax gap (tax revenue lost due to noncompliance) is $600 billion per year. One can see how additional IRS resources could have a meaningful impact on closing the federal budget deficit. At the same time, it is only prudent for NFP organizations to review their operations and documentation to ensure they are in fact an NFP organization for tax purposes. Larger donors receive tax deductions for charitable contributions. Losing those tax deductions by losing NFP status would be catastrophic for NFPs.

Mark Koscinski NFP

Managerial Accounting in the NFP World

In its “Trends and Outlook 2022” (I am a little behind on my reading!), the NJ Center for Nonprofits conducted a survey of approximately 225 respondents. They reported funders often do not:  

  • Like to make unrestricted grants;  
  • Understand overhead costs and capacity building to  give the NFP greater impact; 
  • Fund overhead costs and capacity building; 
  • Understand the full cost of of projects; and 
  • Allow overhead costs in grant applications. 

The reluctance of funders to support overhead costs often puts the NFP in an untenable position as these expenditures must be covered if the organization is to stay in business.  The same survey  also reported many of the NFPs tried to do this by:

  • Initiating new fundraising appeals;
  • Seeking funds from alternative sources; and
  • Introducing and/or increasing fees for service.

Their success in accomplishing these efforts can be gauged by the following:

  • 46% of the respondents reported financial uncertainty was the major challenge to viability and effectiveness,  and
  • 55% of respondents reported infrastructure/capacity building was the most important issue NFPs face in 2022. 

How should NFPs deal with this problem?  Perhaps one way is to speak the same language the financial managers of their funders use: accounting.    Specifically, NFPs can:

  • Think about using activity based costing (ABC).  This process does not allocate overhead but traces these costs, in essence converting them to direct costs. It will more effectively tie the indirect costs to each of the programs,  making funders much more willing to include them in grants. ABC also is very useful when supporting capacity planning, one of the main concerns of the respondents.  ABC has the reputation of being difficult to implement, but the number of cost drivers in an NFP organization is generally small, and the system can be built over time. 
  • Do capital expenditure analyses using the traditional tools businesses use. However, make sure to include a discussion of the total welfare gain for the expenditure. In such situations the  qualitative data can outweigh the financial assessment. 
  • Use CVP analysis.  Of course, there is no “P” (profit) in an NFP, so I like to say NFPs should do CVC analysis: Cost, Volume, and Cash. This type of analysis is particularly important when the NFP is attempting to obtain financing for increased volumes or changes to the budget. 
  • Understand the concept of joint costs and their impact on the organization. As we have seen, funders like to see their donations go to programs rather than overhead.  Perhaps proper accounting for joint costs could result in more costs being allocated to programs. 
  • Use responsibility accounting. The most common type of business unit accounting in NFP organizations is the cost center.  If there are different programs and managers, keep the accounting records in such a way that managers can be held accountable for the costs of their program. Also, the use of responsibility accounting will also provide the record-keeping to determine the actual cost of each program. 

Forty-three percent of the respondents said they had to draw against their credit line in 2021.  This is alarming, but it also demonstrates a critical point.  NFPs should try to establish a credit line with their local banks.  Not only is it a source of funding to smooth over the rough patches in the cash flow year, but local banking personnel are great sources of board members and volunteers. When approaching the bank, good managerial accounting as described above and good budgeting practices are critical. 

Where do you get the talent to do all of this? It is a lot to do.  I suggest you contact your local CPA firm.  I am sure they will be able to help you on either a volunteer basis or at a reduced price.  Remember, to secure funding, you need to speak the language of business: accounting!

Mark Koscinski Uncategorized

Spotlight On…

This week I wanted to spotlight a small NFP organization that provides a wonderful service to young mothers. There are many organizations providing essential services out of the good of the volunteers heart. My hat goes of to Zair Burris, the driving force behind Moms Offering Mom’s support. Please generously support this organization with your time, treasure, and talent! Here is the transcript of the interview:

  1. Tell my readers about you. You have an interesting background.

I’m from the Oregon coast- I have a master’s in marine biology and a PhD in oceanography. All of that training was actually really helpful for starting and running a nonprofit- from writing grant applications to developing databases to track our donations to data analysis to get an idea of the impact we have in the community (number of people we help, for how long, etc.). 

  1. How did you become involved with this organization? Why did you start this organization? How has it grown or changed? 

I started thinking about starting this nonprofit (Moms Offering Moms Support) about 6 months after I had my first baby. I read an article about “diaper need”- how in the US, 1 in 3 families can’t afford to buy enough diapers for their baby. Having a baby is so stressful and exhausting on its own, I couldn’t imagine having to worry about having enough diapers to get through the night. 

We opened 4 months before the covid pandemic hit, working out of my house, with no volunteers other than myself and occasionally my husband (he had a full-time job). We had to work out the kinks pretty quickly- we went from providing 5 babies a month with baby supplies to over 40 in a matter of months! We started with no money in the bank, so it really increased our impact when we started partnering with the Lehigh Valley Diaper Bank. They give us diapers every other month. I cried when we got our first shipment- it was such a relief to not have to worry about how I would come up with money to purchase diapers for our babies. Diapers are still the number one item requested by our families.

Surprisingly, the nonprofit runs almost exactly the same as when we started 3 years ago- we provide the same things, but just more of them and to more families. Because we get more people wanting to donate than we can handle, we are able to be pick and choose what we accept. We used to have to take everything, no matter the condition, because something was better than nothing. Now we only accept things in great condition. This saves us a lot of time cleaning and reduces the number of things that get thrown away.  

We’ve also started partnering with hospitals and social workers to get those families most in need referred to our program (young moms, homeless families, women who have escaped domestic violence, and undocumented moms). We have started a number of “Programs”, for instance our Car Seat Program provides families with car seats donated to us by the Pennsylvania Department of Transportation. Our Full Bellies Program is mainly funded by local grocery stores (especially Giant Food Stores) and provides baby food, highchairs, formula, and breast-feeding supplies to families. Our Safe Seep Program is mainly supported by local grants (Leona Gruber Trust, Caroline JS Sanders Trust, John & Margaret Post Foundation, etc.) and allows us to provide bassinets and portable cribs. 

  1. Can you tell me about the work your organization does and the wonderful program you run? As a follow up, what differentiates you from other organizations? 

Right now, because of the formula shortage that started in February, we are helping a much broader segment of the population get infant formula. Normally, we provide low-income and homeless families with baby supplies once a month until their baby turns 1-year old. While we focus on infants, we also provide maternity clothing and toddler clothing (many of the babies we serve have older siblings). We provide anywhere from 45-85 infants/toddlers with supplies each month. We are a donation-based organization, so what we have available each week changes constantly, but we normally provide: diapers, formula, wipes, toys, clothes, shoes, shampoo, car seats, bassinets, etc. We are different from other organizations because we deliver the baby supplies directly to the family’s door. This was very important to me when I was developing the nonprofit- it is a lot of work to go anywhere with a newborn baby, especially if you don’t have a car and rely on public transportation (as many of our families do). We didn’t want moms having to bring their babies out during winter to get their supplies. Similarly, we make it easy to donate by doing no-contact porch pickups from donors. We started this as a covid precaution and it stuck because it makes it easy for everyone – families can leave their items out for us and we collect everything during a scheduled pickup window. We are also all volunteers, including me!

  1.  What do you think your constituents  would say is the best thing about your organization?

I think the thing that our families appreciate the most (in addition to the wide range of items we supply) is how easy it is for them to get their stuff each month. To become registered with us, they have to show proof of need just at the first delivery (most show us their WIC or snap card) and a note from their doctor if pregnant or discharge paperwork for their newborn. After that, all they have to do is fill out our online request form each month and select what they need from a list. Then we deliver it right to them, typically within 3 days of their request. 

  1. What results does your organization achieve? How has your program improved over time?

Last year, we provided over 49,000 diapers to more than 230 infants, 101 pack-n-plays, and 46 car seats. These supplies keep babies safe and help parents keep their jobs. Most daycares require parents to provide diapers for their babies. If a family runs out of diapers, the baby can’t go to daycare, and the parent has to take off work to stay home with them. This obviously makes it harder for the family to afford diapers. In addition, babies with clean diapers have fewer rashes and other health problems, which has been shown to reduce parental stress.  

Similarly, during the first year of life babies are prone to Sudden Infant Death Syndrome (SIDS). SIDS has been linked to unsafe sleeping habits, where babies are put to sleep in unsafe environments like on a couch, floor or chair, or who co-sleeping with parents. By providing a place for babies to sleep (i.e. pack-n-plays and bassinets), we are keeping them safe during their vulnerable first year!

We also try to support breast-feeding moms by supplying pumps, and nursing bras and shirts. Breast-feeding has long term health benefits for both the mom and baby, so this is important to us.

  1. What are your goals for the next three to five years? What priorities will help you achieve them? What barriers are in your way?

We would love to be able to move out of my house and into a physical storefront where families can have the option of physically picking out the items they need from the donated goods. This would also allow us to shift from picking up donations to having people bring their donations to us. This would allow us take in more donations and help more families. In order to do this we would need to secure funding to rent a space and be able to pay for utilities. Right now we don’t have any funding for that!

  1. What is the hardest decision the organization has had to make recently, and how did you evaluate the tradeoffs involved?

Recently, I had to make the tough decision to stop providing monthly deliveries to families in Bethlehem. They still get one big delivery, but I don’t have the time or volunteers to do it anymore. The need in Easton alone is more than I can handle since having my second baby (I do the nonprofit work when she naps, or early in the morning or late at night). I may have to reduce the work load again next year when I have to go back to work.  I am trying to get grant funding to be paid at least part-time for the work I do with the nonprofit, but I haven’t been successful. If I do get funding, I would be able to increase our aid in Bethlehem again.

  1. What do you, personally, spend most of your time on?

Right now I only have 1 volunteer, so I do about 99% of the work myself. Most of my time is spent delivering supplies to families. After that, it’s sorting donations, putting together deliveries, data entry, and grant writing. I don’t spend enough time updating our facebook page or website!

  1. If people want to contact you to help out, what is your website and how do they reach you? 

Our website is: www.eastonmoms.org

Or, we can be reached via email: easton.pa.moms@gmail.com

Thank you so much for taking an interest in our cause!