Are You and Your Volunteers Adequately Insured?

 

As a nonprofit organization, you most likely depend upon volunteers to help you thrive, whether they are volunteering on an ongoing basis or pitching in for special events.  According to the Bureau of Labor Statistics, 64.5 million people volunteered in the United States through or for an organization at least once between September 2011 and September 2012. Numbers of volunteers seem to be increasing slightly, possibly the result of the Volunteer Protection Act, which limits lawsuits for volunteers. While the increase in volunteers is great news for non-profits, volunteer participation is not without risk. You need to consider ways to protect your organization from exposure due to volunteer actions.

 What is the Volunteer Protection Act (VPA)?

The Volunteer Protection Act (VPA) was signed into law in 1997 to encourage people to participate in social service organizations on a voluntary basis. The VPA states that "No volunteer of a nonprofit organization or governmental entity shall be liable for harm caused by an act or omission of the volunteer acting on behalf of the organization or entity."

Under the VPA, volunteers are protected as long as they adhere to a set of conditions, such as the following:

· They have proper licenses or certificates for the job they are      performing

· Any harm caused is not as a result of operating a motor vehicle

· Any harm caused is not “caused by willful or criminal misconduct,     gross negligence, reckless misconduct or a conscious, flagrant      indifference to the rights or safety of the individual harmed.”

· Volunteer actions are not found to be crimes of violence, hate, sexual  in nature; are not committed while under the influence of alcohol; or  are not violations of civil rights, labor, or tax provisions.

States may impose additional conditions on volunteers under this Act.

What is missing from the Volunteer Protection Act?

The Volunteer Protection Act is a worthy piece of legislation. However, while the VPA protects volunteers against litigation arising from their social service, it does not protect the nonprofit organization itself from litigation. The organization may still be liable for the negligent actions of the volunteer. Furthermore, compensated individuals, including employees and any compensated officers, are not immune from litigation.

How can you protect your nonprofit from liability?

General Liability Insurance

General liability insurance protects your organization from lawsuits involving bodily injury and property damage. The policy automatically covers the "business" named on the policy as well as employees. You should consider adding volunteers as insured.  

Directors and Officers (D&O) Liability Insurance

D&O Liability Insurance serves to protect an individual and entity against significant exposures which may not be covered under volunteer protection laws.  Until a court determines whether the volunteer protection law applies to a volunteer, D&O insurance can serve to indemnify the association and volunteer against legal defense costs.

Volunteer Accident Insurance

Volunteer accident policies provide a certain limit of coverage, usually for medical expenses. They respond when a volunteer is injured in an accident while engaged in activities for the benefit of the organization.

Rollins wants your organization, and your valued volunteers, to be protected as you perform your important services to your community. Contact your Rollins representative for more information on how we can help you.

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When the Show Can't Go On: How Showstoppers® Event Cancellation Insurance Protects Your Business

 A recent outbreak of Norovirus at one of Westchester County's largest and most elegant hotels for events and business meetings caused hundreds of illnesses and led to event cancellations for several days.

Workers were forced to stay home, sections of the hotel had to be industrially cleaned, and major revenue-generating events were cancelled. The hotel clearly suffered revenue losses and unforeseen cleanup costs. 

This is the type of situation where Showstoppers® insurance would minimize the financial impact significantly. Showstoppers® offers protection for loss of revenue due to cancellation, abandonment, curtailment, or re-scheduling of your events, with several options. Showstoppers® also pays for losses due to reduced attendance at a continued event—full cancellation of an event may not be required. In the hotel's case, an extra "communicable disease" endorsement, at a modest cost, would have covered the cancelled events. 

Coverage is available for large and small events. The 2012 New York City Marathon, which generates approximately $23 million, was cancelled due to Superstorm Sandy. Marathon organizers, the New York Road Runners Club, have been working to recoup losses based on their event insurance. 

Standard features of Showstoppers® Event Cancellation insurance include:

Adverse Weather

Non-Appearance of a Principal Speaker

Labor Disputes

Earthquake Coverage

Vendor Commitments

Adverse Weather for Golf Outings

Transmission Interruption

Venue Damage

Requisition or Confiscation of the Venue

Remedial Action and Extra Expenses

Penalties for Failure to Vacate

National Mourning

Future Marketing Expenses

Enhanced coverages and features are available for events $125,000 or less, physical loss of personal property, terrorism, and more. Specific terms and conditions vary, depending on the policy and enhanced coverages selected. Rollins Insurance can help you choose the best Event Cancellation Policy for your needs. As peak event season is upon us, you should speak with your Rollins representative to determine the appropriate event cancellation options for your event.  

 

Photo Credit: John K via Photopin cc

 

 

Five Ways to Use Marketing to Grow Your Non-Profit

 

As a non-profit, you are likely to have a small or even non-existent marketing budget. After all, your goal is to gain new donors and members, not to get “paying customers.”

However, if you think like a marketer, you may find more effective ways to convey your image, increase awareness for your cause, inspire confidence in your organization, and build relationships.

 

Here are five strategies all non-profits can use, even with tight resources and low budgets.

1.    Build your brand. Your brand tells the world who you are, what you stand for, what your personality is, and how you are different from your competition. All your communications, including your logo, your brochures, emails, social media interactions, and phone conversations, should reinforce your brand. Consistency is key. Your print materials do not need to be fancy—if they are too slick, people may wonder about how you are spending their dollars.  

2. Create your “elevator pitch.” Your elevator pitch is a 30-second explanation of what you do and how you are unique. Everyone, including your officers, volunteers and members, should be able to deliver your elevator pitch.

3. Publicize your stories. Send interesting stories about your activities and good works, about special members, or about events to local newspapers and television stations. These help get the word out about your organization without using advertising dollars.

4. Use social media.  Social media tools are generally “free” (except for the time it takes to feed them), and they are designed to allow people without a technical background to create a presence. To build and maintain your network of supporters and members, you should consider building a Facebook page, a Linkedin page, and a blog. See what your competition is doing. There are many creative ways to promote your cause.

5. Establish your content calendar. With all these ways to share your organization’s message, and most likely, with a distributed network of volunteers supporting you, you need to make sure that you are not bombarding the world with your message one week and then falling silent for the next six weeks. Create a content calendar to manage and balance your communications. A content calendar is a schedule of what is being distributed, where, when, and by whom. Consistency builds both trust and anticipation in your audience.

These are all helpful ideas, but how and where do you find resources to implement them? In addition to your volunteer members, consider recruiting college students or high school students, who may be interested to work as interns for school or volunteer credit.

Rollins wants to see you succeed and grow, and we are here to provide support for the health of your organization as well as your members.

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New York State Pay Cap for NonProfit Executives: Are You Affected?

If you are a nonprofit, you should be aware that Governor Cuomo signed into effect new compensation limits for executives of New York State-funded nonprofit organizations. There are two pieces to the legislation:

· $199,000 Annual Compensation Cap for “covered  executives” at “covered providers”.

· At least 75% of state-authorized payments for

compensation costs must be used to provide direct care or services. This percent increases by 5% annually until it reaches 85% in 2015.

Is your business affected?

You are affected if your nonprofit receives more than $500,000 and 30% of its funding through New York State. A “covered executive” includes anyone who is a director, trustee, managing partner, or officer of a covered provider, as well as any employee with compensation of $199,000 or more. In addition, executives of related organizations that provide administrative/ program services are considered “covered executives.” There are exceptions—see below. Make sure you speak to your accountant to find out how this affects your business.

How is “compensation” calculated?

The cap applies to total compensation, including salary, bonuses, direct and indirect benefits.  There are two exclusions:

· The value of any benefits provided to all the organization’s employees.

· Compensation paid to the executive for program services outside of his or her managerial or policy-making duties.

Are there exceptions?

Executives at organizations that receive significant funds from the federal government and private donors may not be affected by this order. This includes hospital executives, who can be compensated above the $199,000 cap with private funds.

Also, covered providers can request exceptions to the $199,000 cap as long as they demonstrate that the executive’s pay is 75% or less of compensation for comparable providers’ compensation. In this case, the exception needs to be approved by the Board or governing body, with two independent members on board. Waivers allowing higher payments are limited to one reporting period and require approval from the New York State funding source.

What does this mean your non-profit organization?

Speak to your accountant for guidance on complying with this regulation. According to Rob Cordero, CPA, Senior Manager at O’Connor Davies, LLP; “A proactive and systematic approach should be adopted by all nonprofit entities receiving New York State funds and/or State-authorized payments. A thorough review of executive compensation including a comparative pay study is essential for all entities with executives earning compensation and benefits which exceeds $199,000.”

At Rollins, we strive to keep you apprised of the latest changes that could affect your nonprofit organization and the people you help through your important work.

photo credit: JMR_Photography via photopin cc

5 Business Questions You Need to Ask Yourself Each Year

It may be hard to think like a start-up, but taking a close look at the options available to new business today may help you find ways to save money as you grow.

Begin by taking a close look at where your money goes each month.  

For most businesses, the two major expense categories tend to be labor and occupancy costs.  It makes sense to start here, but other areas to consider looking at include the cost of tangibles and consumables, like the physical supplies needed to run your business, as well as the non-tangibles, like promotional expenses and insurance.

So, if you were building your business today, how would you answer the following questions?

How and where would you staff your business?

Technology has opened the doors to a global labor pool and that means there are many more options today on how and where your work is performed.  While many businesses have sourced their work in foreign countries, you don't have to go to China or India to save money on quality labor.  

Lower cost of living markets within the U.S. may have freelancers, small businesses and even full-time remote employee options to consider.  Many back-office services, from accounting and bill-paying, to sales can be farmed out.  The benefits of working with businesses that focus on one or more services, is the attention to detail they can provide.  Their reputation depends on the quality of their service, so you may find it works out well for you.  Ask for references and check them out.  (There are even services you can use for that.  The Internet is a great resource for finding them.)

How much space do you need?

This is not an easy question to answer.  Physical space comes in all varieties, from storage areas to professional offices fully furnished with special equipment.  Depending on the type of business you have, and whether or not your clients come to you, your needs will differ.  Also, if you have worked out arrangements with other businesses to handle some of your back-office needs, you may be able to save on rent for those types of services.  

An ideal situation would be to pay for only what you need, when you need it.  Real estate manegement companies have come up with some creative ways to solve those flexible needs.  Many large office buildings now have hourly and daily rentals of everything from conference rooms to executive office suites, and with the ability to connect to virtually anyone at any time, you might consider having some oof your employees work from remote offices or from home.

What equipment, software and supplies do you need? 

This is an area that has undergone major changes in the last two decades.  Cloud computing and Internet access have changed everything when it comes to what and when you buy, and that goes for everything from computers to ink.  It is possible to rent the software you need a month at a time, and it is always up-to-date with the latest revision.  You can even get training online for those who need it, and those documents, presentations, marketing material and books can be printed at the local office supply store in as little as an hour.  

For those absolute must-have supplies, buying in bulk is an option, but that can lead to storage problems, so it pays to consider all the options before making your purchase.

How can I take advantage of technology in promoting my business? 

While traditional advertising is far from dead, there are many new ways to create a buzz and build a brand, and they all don't rely on Social Media or Search Engine Optimization.  

Existing businesses have an advantage over new businesses; they have existing customers.  Building and maintaining strong relationships with existing customers helps to get repeat business and new customers.  The success of business rating sites (like Angie's List) is a good example of the power and popularity of referrals.  Encouraging customers to share their experiences with your business means you need to do a consistently good job at what you do.  

Yes, getting them to "Like" your Facebook page helps, but getting them to say something on camera is even better.  Hold an event at your location, or online, and get that feedback.  Then share it with others.

How do I manage it all?

This is the hardest part.  With constant and continuous connectivity, we can all easily find ourselves "working" twenty-four-hours-a-day.  That's not healthy, and it is impossible.  So, it is important to take a look at everything you are doing at least once a year.  If you find you are spending too much time on something and it isn't yielding the results you need, either stop doing it altogether, or farm it out to someone who can manage it for you.  

Every business has access to nearly every possible resource, thanks to the Internet and advances in technology.  There is no excuse anymore.  Find the right advisors and experts in every field and talk with them.  Pick the best and do business with them.  In the end, you may find there are no llimits to how much you can do and how your business can grow.

For more information on managing your business needs and costs, click here.

Performance vs. Privacy: Big Brother at Work?

What makes us productive at work?

At the peak of the Industrial Age, when the workplace was predominantly the factory floor, Frederick Winslow Taylor published a breakthrough work that gave birth to a whole new industry, Management Consulting.  

The work was called, The Principles of Scientific Management, and it focused on, among other things, tracking employee time in the performance of a particular task.  

Productivity was measured in tasks completed per unit of time. That meant the faster one could perform a task, the faster the plant could run the assembly line, and the greater the company profits.  

With the advent of the "Knowlegde worker," Taylor's time management techniques fell to the wayside, since productivity was no longer a factor of tasks completed.  The most productive people, it seems, saved time and money by solving problems, learning from past experiences, and developing new approaches to the problem.  

Suddenly, the time spent at the water cooler was no longer automatically considered wasted, since it could be used to build new relationships, network with team members from other departments, or simply taking time to think.

How does a manager know if these informal and undocumented interactions contribute to the bottom line, or detract from it?

The answer may be in your hands, overhead and hanging around your neck right now, thanks to facial recognition software, video cameras and the technology of GPS (Global Positioning Satellites).

According to a recent article in Business Insider, companies are testing ways to monitor and track workplace behavior, not to spy on any one individual, but to gain an understanding of what interactions work and which don't.  

If it sounds like Big Brother is watching, it is, but the jury may still be out on whether this is an invasion of personal privacy, or a way for employees to finally get the recognition for building and maintaining effective relationships in the workplace.

The new management consultants are tech savvy firms which focus on this type of analysis. They provide the equipment to capture video from security cameras, pick up conversations in the halls, conference rooms, and other areas in the workplace, and with embedded chips in ID cards, they track movement within the building.  

So far, businesses using this approach have only implemented this for participants who sign a form agreeing to be tracked for the purpose of the studies.  With enough participants, a picture of the company's culture can be developed, which could change the way management awards performance.  This could be a good thing for employees, and that is why some agree to be monitored.  

Individual conversations and personal activity is not provided to the employer by the management consulting form, so there is some confidentiality involved, but the bigger issues and concerns for the future remain unresolved.  How far is too far, and how much privacy should one expect as an employee of a company?

In other words, could companies implement such an approach wthout telling its employees?  

That question requires some careful thought, given the potential liabilities that may be involved.  This is an area worth watching, and it will most likely generate much discussion on both sides of the value proposition surrounding workplace productivity.  We will be watching and reporting what we learn.  

For more information on workplace privacy, click here.

Reputation Risk: Do You Know What People Know About You?

"A man's reputation is not in his own keeping, but lies at the mercy of the profligacy of others." - William Hazlitt, from his essay, "Characteristics" published in 1823.

What the noted essayist and social commentator wrote 190 years ago holds true today, not just for people, but for businesses, organizations and institutions at all levels as well.  What we have control over is what we do and how well we do it.  What we have no control over is what people say about us.

News Travels Fast, Bad News Travels Faster

In Hazlitt's day, news and word-of-mouth traveled much slower than today.  If someone started a rumor about someone, alluding to some impropriety or aberrant behavior, they could easily become the "talk of the town."  They would have had more of a fighting chance back then to address the rumor before thousands or millions of people heard about it.  Not so today with Youtube, Twitter, and dozens of social network sites.  

What is said about us, our products, our services, our employees, or even our place of business could have devestating effects on the bottom line.  And it doesn't even have to be something based in fact to get airplay.  So, it makes a great deal of sense to become aware of the chatter before it becomes a buzz.  A good place to start is to know what people, companies and others know or can find out about us today.

1. What do people and firms know about us?

There are several ways to find out what the world knows about us, ranging from conducting Internet searches and research ourselves, to hiring experts who will do it for us.  

I like the idea of bringing in the experts, as long as the benefits outweigh the cost.  While the real cost of a bad reputation can be quite high, spending money when everything seems OK is hard to do. 

2. Where do we find experts?

The good news is there are many.  For this article, we decided to try one that offers a free basic service for individuals that is focused on information privacy.  The more information we provide to this service, the more helpful the system is in giving us a picture of where our information is being maintained.  

We were amazed to discover an unknown email address attributed to us, tied to a personal phone number and outdated street address.  For a small annual fee, we can have this incorrect information deleted, and that's exactly what we did.  It also gives us the ability to hide personal data, something many professionals in the medical and legal professions find absolutely imperative, not to mention law enforcement.

3. What else can we do to protect our information?

The service we used provides the ability to update several marketers and other sources of addresses, phone numbers and other personal data, and it monitors that information to make sure what is deleted stays deleted.

We also updated the National Do Not Call Registry, which is a listing of phone numbers that telemarketers are blocked from calling, and something called the OptOutPreScreen.com, which is a centralized service to process requests to "Opt-In" or “Opt-Out” of offers of credit or insurance.  Both of these are sites you can visit without paying for a service.  

Another thing that we did is set up Google alerts, which are periodic emails sent to us to let us know when Google finds new webpages, articles or blogs containing certain key words we identify as important to us.  We set up several and receive daily emails highlighting any occurances.  The key words can be anything, including the names of people and businesses.

4. How do these services help me avoid negative content about me or my business?

The truth is they really don't.  What they do is generate positive content to help offset the negative, and hopefully reduce the prpobability that the negative content will be the first thing people find when they search for information about  you.  That content is created in a variety of ways, and we will get into that in a future post.  In other words, generating positive feedback and comments are a good way to help you keep your good name in the spotlight.  

5. So, what should I be doing to keep the information about me positive?

At Rollins, we believe there is no substitute for excellent service.  Keeping your clients informed of any changes that could affect them, providing them with services and products that help them to be successful, and exceeding expectations at every opportunity are positive steps you can take right now.  And it doesn't hurt to ask for feedback.  We do.  

6. Where can I find more information on Reputation Risk?

You can always talk to us, but you can also visit our resource page, Risky Business, where we have compiled valuable information on a variety of business and personal risks.  At Rollins, everything we do is focused on helping our clients protect themselves and their loved ones.  

Understanding Workplace Bullying

What comes to mind when you hear about bullying?

Most of us think of children. We may even have faint recollections of our own experiences on the school playground. But bullying has evolved.

A 2003 report from The National Association of School Psychologists ranked bullying as the most common form of violence in our society, and surprisingly, it is not limited to schools, nor does it only affect children. It is now a workplace pheonomenon as well.

The Workplace Bullying Institute defines this abuse as “repeated, health-harming mistreatment of one or more persons (the targets) by one or more perpetrators that takes one or more of the following forms:

• Verbal abuse
• Offensive conduct/behaviors (including nonverbal) which are threatening, humiliating, or intimidating
• Work interference—sabotage—which prevents work from getting done.”

Often managers and supervisors simply don’t have the training to recognize the problem, seeing it as a personal conflict between people or not even noticing it all. Some employers even encourage bullies by rewarding these so-called good soldiers who push others wrongly to get things done.

How then do you recognize bullying in the workplace?

Because of its psychological rather than physical attacks on an individual, bullying is not easy to spot. It takes on various forms designed to exert control over the target. For example “icing out” creates an environment that renders the individual invisible. This isolation could be compounded by an assembly line or factory setting where the target has very little personal work space, causing the stress of the job to make it difficult to interact with others. The result is the equivalent of a form of torture.

What happens is that instead of turning to outward violence, a target will turn the violence inward and become despondent, depressed and even suicidal. Unfortunately, the grey area of workplace bullying doesn’t make it illegal since most harassment and mistreatment are non-criminal and, moreover, difficult to prove.

What can we do in our own workplaces to prevent bullying?

Acknowledge the problem. We need to recognize bullying as a potential threat, even if it is not evident in the workplace today.

Provide information on bullying. Educational material, workshops and seminars on the topic are available. Demonstrating an awareness of the problem will let any bullies know that they will not be tolerated, and targets will be heard and treated with respect.

Observe employee behavior. Noticing how they treat each other as well as whom they avoid will provide clues that something may be going on.

Finally, listen to employees who do speak out. One of the common complaints from individuals who were targeted by bullies is that no one listens to their grievances.

Bullying in any form is disruptive, harmful and intolerable.  Employers and managers at all levels need to arm themselves with information about this dangerous and silent threat, before they have a problem.

For more about bullying in the workplace and in schools, click here.

A Guide to Hiring Subcontractors

Hiring a subcontractor or freelancer can be a very attractive alternative to adding full-time or part-time staff, especially if your need is for project work.   It is a daunting task to filter through all the ratings you might find online, most of which are subjective and often incorrect in the first place. And there are so many subcontractors and freelancers out there that you may not know much more even after researching their websites and performing searches.

With these challenges in mind it is paramount to have a Know List, questions and metrics that allow you to approach each subcontractor/freelancer in the same manner. The subjective manner of researching unreliable reviews online can preclude you from making objective choices. With your Know List, however, you can begin to establish a clear plan for your hiring—and the job itself.

KNOW LIST

• Know their strengths. How long have they been in business? What jobs have they done prior to yours? 
• Know their references. What are past customers saying about them? Track down references and heed them.
• Know their charges up front. Do you pay them by the hour, the day or the project? Is there a signed contract in place stating this information?
• Know their insurance. Even if they have general liability, it may not cover everything. Ask if they have a professional liability or Errors and Omission policy.
• Know their privacy policy. If you are sharing sensitive information about yourself, will they need access to client data as well as your systems and account information?
• Know their damage potential. What is your coverage in the event of major damage by a subcontractor or freelancer? What are the risks to you? How much damage can potentially do?
• Know the scope of your own project. Are your milestones very clear? What happens if they do not deliver the work on schedule?
• Know what comes next. Once the subcontractor has finished the job, make sure you receive clear documentation of the work completed, along with full control of the future changes or updates it may require. If the deal sounds too good, it might only be a hook to get you to pay more in the future.

Hiring a subcontractor or freelancer is not easy by any means and while it is extremely helpful to have referals from people you trust, that isn't enough to protect you should something go wrong. 

At Rollins, we strive to be a resource for you, to keep you informed of the latest changes that could affect your business, your organization and your lives.  Let us know what your needs are and stay informed with our new quarterly newsletter.

6 New Permissible Wage Deductions in New York

This is a guest post written by Dr. Greg Chartier, SPHR, GPHR. You can find more valuable information from Greg on his blog, HRInfo4u.

Wage Deduction Statute Amended

The Governor recently signed into law an amendment to New York's wage deduction statute, New York Labor Law Section 193 ("Section 193"). Effective November 6, 2012, the amendment allows employers to a range of payroll deductions that were not previously allowed. It also imposes some new deduction-related requirements.

The NYSDOL has stated, in the past, that many employee wage deductions were unlawful, even with an employee’s voluntary agreement and written authorization. These include:

1. Deductions for loans, wage overpayment's, or wage advances owed to an employer;
2. Deductions for the recoupment of tuition assistance monies owed to an employer; and
3. Deductions for purchases from employers or employer-sponsored stores, cafeterias, and like establishments.

During the past few years, the NYSDOL has narrowed its interpretation of Section 193. They have taken the very narrow position that a wage deduction is not permissible unless it is very "similar" to those expressly recognized in the statute as lawful

The amendment to Section 193 will expand the enumerated list of permissible wage deductions to include deductions for: 

1. Prepaid legal plans;
2. Purchases made at events sponsored by a charitable organization;
3. Mass transit deductions for discounted parking or discounted passes, tokens, fare cards, vouchers, or other items;
4. Fitness center, health club, and/or gym membership dues;
5. Tuition, room, board, and fees for pre-school, nursery, primary, secondary, and/or post-secondary educational institutions;
6. Day care, before-school and after-school care expenses; and

In particular, the amendment permits deductions made through employer-sponsored pre-tax contribution plan like a flexible spending account.

Importantly, the amendment will permit employers to recover wage overpayments and wage advances by payroll deductions under certain circumstances and subject to future NYSDOL rulemaking.

The amendment does impose deduction-related requirements, primarily a written authorization from employees that deductions are appropriate and that the employee agrees to the repayment schedule. Employers must keep any these written authorizations for six years after the end of. There are additional rules for employers with union-represented workers.

The amendment has a three-year "sunset" provision, and, therefore, would require additional legislation to make the corresponding changes to Section 193 permanent.

More About Greg:

I am the Principal of The Office of Gregory J Chartier, a Human Resources Consulting firm and a well-known management consultant, educator and speaker. My practice consists of two broad areas: Human Resources management and outsourcing for firms of less than 250 employees and Management Training. My business experience includes management positions with Pfizer, The Chase Manhattan Bank, The Bank of New York and Johnson and Johnson.

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