The Forbes Funds were joined by special guest Ted Bilich, Founder and CEO of Risk Alternatives. This company provides training, assistance, and advice on how nonprofits can manage risk. The mission is to build stronger communities by helping to construct sustainable nonprofits. A recording of this call can be accessed at this link.
Risk Analysis 101 for nonprofits
Ted Bilich opened up his talk with the “standards for excellence” developed by the Pennsylvania Association of Nonprofit Organizations (PANO) that nonprofits should adhere to. Among the different standards, PANO recommended that organizations should “make every effort manage risk and to periodically assess the need for insurance coverage in light of the organization’s activities and financial capabilities.” Why should they?
Ted listed various plausible scenarios that could potentially affect nonprofits. These scenarios range can lack resources for needy service populations to the enormous impact of Covid-19 on the entire nonprofit sector. So if one wants to ready for the nonprofit sector’s challenges, he recommended that an organization have a risk management plan. He defines it as follows:
In this definition, Ted wanted to emphasize several key points. He brought viewers’ attention that this is about a team, not an individual. This is about a process, not a singular event. It is a regular occurrence, not an occasional one. This is a gradual process, not an immediate one that evaluates positive risks (i.e., lend themselves to opportunities) and negative risks or threats. In that light, he lighted the current biggest risks facing the nonprofit sector.
The first was the uncertainty about going back to work because of Covid-19 and unsettled working conditions. These include meeting beneficiaries in the field, coming into the office, or following a hybrid work model.
The second is employee development and retention. He mentioned a startingly statistic where about 35% of salaried workers hope and expect to be in a new position in the next 3-6 months. He described this situation as a seismic shift. Hence, organizations need to think carefully before committing to working full-time in the office model. Otherwise, their employees may opt to leave.
Based on these calculations, Ted Bilich highly recommended that nonprofits sign-up for The Forbes Funds Resilience and Collaboration Cohort. This is a special program that helps nonprofits think about and practice risk management. For more information on how to sign up, please follow this link. For those interested in connecting with Ted, his contact information can be found below:
- Email: email@example.com
- Website: riskalts.com
- Phone: 703.652.5659
The talk was followed by a brief Q and A, which brought up several noteworthy points. Ted noted that about 38% or 4 out of 10 nonprofits in the United States have a formal risk management process. However, 60% more or less do not have any set plan and only respond to risk when it manifests into a crisis.
Ted recommended that organizations interested in embarking on the first step of risk management should do a risk inventory analysis. This involves speaking with different nonprofit team members individually to identify and assess any threats and opportunities.
Concerning board members, Ted mentioned that his organization is experimenting with its risk management training. They now plan on bringing in one board member in the initial training process so that this individual would act as an advocate for risk management on the board by the end.
GPNP Public Policy Updates with Colleen Young
The Pennsylvania Legislature has passed the state budget for 2021, and for more information, please follow this link.
Education Budget Update
The proposed state budget increases public education funding by $416 million. The breakdown includes:
- $300 million for basic education funding
- $200 million for the fair funding formula
- $100 million for historically underfunded school districts
- $50 million for special education
- $35 million for special education, which includes $25 million for Pre-K counts and $5 million to expand Head Start
- $11 million for preschool early preschool intervention
- $5 million for community colleges
- $40 million for Educational Improvement Tax Credit program
- $350 million one time boost using federal relief funds for schools
- $50 million for the Pennsylvania State System of Higher Education for improved college access
Human Services Update
$282 million in federal relief have been allocated to help nursing homes, assisted living, and personal care homes to cover pandemic costs.
Increased funding for services for those with ID.
Increased home and community-based services for seniors.
No increase in mental health funding.
Housing Budget Update
$450 million American Rescue Plan (ARP) for rental assistance.
$350 million American Rescue Plan (ARP) for home owner mortgage assistance.
$36 million allocated to help pay water bills.
The CDC has granted a one-month extension to the federal moratorium on evictions to 31 July. However, there will be no further extension.
MISC Budget Update
$728.9 million in ARP funding to stabilize the child care industry.
$30 million for violence intervention and prevention programs.
$279 million in new transportation funding.
P-EBT Funding Update
$224 million in federally funded food assistance available 223,000 students living in snap-eligible households in counties where at least one school is virtual or hybrid.
$1 billion in benefits available for families of nearly 1 million school-aged children. For more information, please follow this link.
A bipartisan group of legislatures proposed to take back some of the American Rescue Plan funds for Pennsylvania and use it towards the infrastructure bill. The National Council of Nonprofits has strongly disagreed with this move.
For more information, please follow this link.
The Pennsylvania mask mandate has ended with mask wearing now optional.
Over 6 million Pennsylvanians have received one dose, while a little over 5 million have received two doses. And the Covid vaccination rate breaks down by face:
- All races: 61%
- White: 52.6%
- African-American: 36.4%
- Asian American and Pacific Islander: 23.9%
- Native American: 12.6%
Black Equity Coalition
Alissa Monette reminded viewers that they could access the BEC Panel Discussion on Covid-19 vaccination here. The event features Pennsylvania’s Acting Physician General, Dr. Johnson. She reminded viewers that the BEC is active on various social media platforms, including Facebook, Instagram, Youtube, and Twitter.
If viewers need to get a vaccine, they can go to the PittCoVax Vaccination Center. Please follow this link for more details on Covid-19 vaccination.
Maria Paula Quintero announced that ACCEL Fundamentals and Advanced ACCEL applications are open with a 12 July deadline. Nonprofits interested in boosting their marketing & communication skills and creating better fundraising plans should take these courses. For more information about signing up, please follow this link.
Resilience and Innovation Cohort
Olivia Benson announced that the Resilience and Collaboration Cohort hosted by the Forbes Funds and Risk Alternatives would begin on 15 September 2021. This program assists nonprofits in building resilience within their respective organizations. Moreover, it helps them to achieve work alignment across the sector. For more information, please follow this link.
Innovation Lab and Equity Hackathon
Kellie Ware announced that Innovation Lab is still looking for potential participants to brainstorm innovative solutions to existing challenges and advance equity in the Southwestern Pennsylvania region. For more information on how to sign up, please follow this link.