State of EarthShare California

Transcription

1 State of EarthShare California History of the Founding of the Environmental Federation of California (DBA EarthShare California) Helen Glenny and Earl Blauner, as co-founders, joined with other founding member groups in the belief that an environmental option should be offered in both the state and federal workplace giving campaigns. Unfortunately, Helen became ill and died shortly after the federation was formed in Kal Stein became the first executive director of the Environmental Federation of California and later moved to the east coast to launch EarthShare National. In 2001 the Environmental Federation of California affiliated with the EarthShare National network and took on the DBA of EarthShare California. The network is composed of thirteen (13) state affiliates and chapters across the country and partners with over 600 of the most respected environmental groups at the local, regional, national and international level. Mission Statement & Overview The purpose of Environmental Federation of California (dba) EarthShare California is to broaden the financial support of its diverse affiliated environmental and conservation member groups, primarily via workplace fundraising.

2 The mission is to protect, support and improve California's natural heritage of clean air, safe water, diverse wildlife, and healthy communities and families by raising funds for leading environmental organizations. EarthShare California is an umbrella organization of prominent environmental groups brought together to raise funds in California. The organization s main office is located at 870 Market Street, Suite 703 San Francisco, California. The organization conducts fundraising throughout the state of California. ESCA staff is strategically positioned in Northern and Southern California. Fiscal Viability Overall the state of the federation is financially sound. There are enough funds on hand to cover the organization s financial obligations. Compensation of Governing Body ESCA is a non-profit organization registered under federal tax code 501(c) (3) and the State of California; a volunteer Board of Directors is comprised of representatives from its member groups and individuals from the community at large governs EarthShare California. It is certified that EarthShare California s board is directed by an active and responsible governing body whose members have no material conflict of interest and the majority of whom serve without compensation in directing the federation. Executive Committee Board Officers March 2016 March 24, 2017 Scott McIntyre, President Ted Schofield, 2 nd Vice President Pat Smith, Acting Secretary Toni Counts Rose, Treasurer Ray Sullivan, 1 st Vice President Board Committee Chairs March 2016 March 24, 2017 Paige Rogowski, Affiliate Relations Committee Scott McIntyre, Audit Michelle Kremer, Personnel Toni Counts Rose, Finance Board of Directors Meeting Schedule FYJuly 1, 2015 June 30, 2016 Date Time Location November 13, pm Conference call February 12, pm Conference call March 11, :30am 3pm HansonBridgett, LLP 425 Market Street, San Francisco, California June 24, pm Conference call State of EarthShare California Report 2

3 EarthShare California Board of Directors Mr. Craig Bansmer Mr. Alan Ehrgott At Large Member Director Affiliate Member Director Volunteer, Desert Tortoise Preserve Committee American River Conservancy Affiliate Relations Committee Member Executive Director 1844 N. Woodside Street PO Box 562 Orange, CA Coloma, CA Ph: Ph: Term begin February 13, 2016 Term begin March 20, 2015 Term expires March 24, 2017 Term expires March 24, 2017 Ms. Nona Dennis Mr. John Dean At Large Member Director At Large Director Volunteer, Marin Conservation League Retired Fundraising Executive Secretary & Past President Chair, Gala Event Planning Committee 1623 A Fifth Ave 3850 W59th Place San Rafael, CA Los Angeles, CA Nbdennis@sbcglobal.net jadean51@msn.com Ph: Ph: Term begin March 21, 2014 Term begin February 13, 2016 Term expires March 11, 2016 Term expires March 24, 2017 Ms. Michelle Kremer Ms. Paige Rogowski Affiliate Member Director Affiliate Member Director Surfrider Foundation Anza Borrego Foundation Chief Operating Officer Executive Director PO Box Palm Canyon Drive, Ste. 111 San Clemente, CA Borrego Springs, CA mkremer@surfrider.org paige@theabf.com Ph: Ph: x1001 Term begin March 21, 2014 Term begin March 21, 2014 Term expires March 23, 2018 Term expires March 23, 2018 Mr. Scott McIntyre Ms. Toni Counts Rose At Large Director At Large Director Planned Solutions Southern California Edison 9250 Silverwood Court Erik Ct Unit 444 Granite Bay, CA Canyon Country, CA Scott@plannedsolutions.com toni.rose@sce.com Scottmcintyre@surewest.net tonirose12@sbglobal.net Ph: C: Term begin March 21, 2014 Term begin March 20, 2015 Term expires March 23, 2018 Term expires March 24, 2017 State of EarthShare California Report 3

4 Mr. Ted Schofield Mr. Ray Sullivan At Large Member Director At Large Member Director Volunteer, San Gorgonio Wilderness Assoc. Volunteer, Bay Area Ridge Trail Council 7325 Greenbrier Pl 149 Terrace Drive Highland, CA San Francisco, CA Ph: Ph: 415, Term begin March 21, 2014 Term begin March 20, 2014 Term expires March 23, 2018 Term expires March 23, 2018 Ms. Karin Lin Mr. Kevin Connelly Affiliate Member Director Affiliate Member Director The Nature Conservancy, California Earth Island Institute 201 Mission Street, 4 th Floor 2150 Allston Way, Ste. 460 San Francisco, CA Berkeley, CA klin@tnc.org kevin@earthisland.org Ph: Ph: Term begin July 1, 2015 Term begin March 11, 2016 Term expires March 11, 2016 Term expires March 23, 2018 Ms. Vicki Nichols At-Large Member Director Volunteer, Marin Conservation League 117 Caledonia Street, #C Sausalito, CA Subvw1@gmail.com Ph: Term begin March 11, 2016 Term expires March 23, 2018 Certifying in Compliance With All Statutes EarthShare California certifies that it is in compliance with all statutes, Executive Orders and regulations restricting or prohibiting US persons from engaging in transactions and dealings with countries, entities and individuals subject to economic sanctions administered by the US Dept. of the Treasury s office of Foreign Assets Control (OFAC). Activities and Supporting Services EarthShare California member groups address the full spectrum of environmental issues ranging from local, regional, national and broader global environmental concerns. EarthShare California provides a vital link between its fundraising campaigns and the environmental community, bringing the environmental message of its member groups to over one million employees in diverse workplaces throughout California. State of EarthShare California Report 4

5 Since its inception in 1982, it is estimated that ESCA has raised more than $30 million for the environment. Through the programs of its member groups, ESCA directly supports both the public and corporate interest of creating and sustaining healthy communities, by fostering and enabling the movement towards a cleaner environment. A few examples of our members recent accomplishments, listed below, demonstrate the federation s ability to successfully sustain the implementation of program and service objectives in the areas of health, promotion of green communities and education, address global warming, protect wildlife and preserve habitat and open spaces. Earth Island Institute s New Leaders Initiative, since 2000, has honored six dynamic, young activist leaders ages with the annual Brower Youth Award the top prize for bold, young environmental leaders in North America. On October 20, 2015, at the16 th annual BYA honors went to: Ryan Camero for using creative storytelling to chronicle a fragile delta and the communities that surround it Jess Grady-Benson for fostering the fossil fuel divestment movement on college campuses Dyanna Jaye for mobilizing a civically-engaged environmental youth coalition Celeste Tinajero for making impactful and lasting changes through greening a high school campus JP Viñals for energizing a campaign for urban green spaces through youth organizing Kate Weiner for creating an alternative space for environmental engagement through a student-run arts collective. State of EarthShare California Report 5

6 Organic Farming Research Foundation funded 326 research grants to organic researchers and farmers totaling more than $3,000,000. The organization s mission is to bring more farmers and acreage into organic production. San Diego Coastkeeper removed over 10,000 bottle caps from San Diego beaches. These "conveniences" harm our underwater friends who mistake them for food. Grab a reusable water bottle and break that nasty convenience addiction once and for all. State of EarthShare California Report 6

7 Desert Tortoise Preserve Committee protects the endangered desert tortoise and its ecosystem by preserving habitat in California s Mojave and Sonoran deserts and by fostering research and education. Save the Bay Volunteers planted 3,200 native seedlings at the Oro Loma Horizontal Levee Project. Save The Bay will plant 70,000 seedlings at this site over the coming months. Slide Ranch emphasizes hands-on experience and exploration of their working farm and surrounding countryside. Campers are encouraged to touch, taste, smell, hear, observe, and ask questions. Campers milk goats, collect eggs from chickens and ducks, card and spin wool, create nature-based crafts, learn to compost, plant seeds, harvest and cook from our organic garden, and explore the tide pools and trails of our beautiful coastal wild lands. State of EarthShare California Report 7

8 Urban Corps of San Diego Organization s accomplishments were: 61 youth graduates with a H.S. diploma and green job skills, 2,382 trees planted in San Diego County, 1,946,749 square feet of graffiti removed, 1,097,459 pounds of recyclables collected, 5,805,000 square feet of habitat restoration completed, 5,000 linear feet of park trails built and 31,560 hours of volunteer service contributed to San Diego Management and Administration The management team is composed of Patricia Smith, Executive Director, and Isidro Sterling, Interim CFO/IT Manager. Ms. Smith has over 20 years in management, sales, and operations working in both the private and nonprofit sectors as a savings and loan bank retail manager, account executive, and executive director. Ms. Smith holds an MBA from University of Phoenix, a BA in History from California State University, Northridge, and a Certificate in Nonprofit Fundraising from California State University, Long Beach. Mr. Isidro Sterling has extensive experience in managing an organization s full accounting cycle, including compliance with reporting requirements of the Financial Accounting Standards Board FAS 116 Accounting for Contributions Received and Contributions Made and FAS 117 "Financial Statements of Not-for-Profit Organizations". He holds a BS in Finance/Accounting, certificates as CPA, electronic document management, client server technology, SQL Database Programming, TCP/IP, C++, PERL and is fluent in Spanish and English. EarthShare California Management & Chief Administrative Staff Ms. Patricia Smith Executive Director Mr. David Coyle Associate Director Mr. Isidro Sterling Chief Financial Officer/IT Manager Ms. Tanya Heravian Manager, Operations & Engagement Ms. Tania Katbi Development Director/Regional Manager Southern California Region State of EarthShare California Report 8

9 Membership Requirements Affiliated member groups must meet membership requirements as stated in the Bylaws of EarthShare California and are vetted annually in February of every year. Fiscal and financial operational requirements are a demonstrated history of fiscal accountability and responsibility, an audit of fiscal operations to be completed by an independent certified public accountant in accordance with Generally Accepted Auditing Standards (GAAS) and have administrative and fundraising expenses (overhead) not more than 25% of revenues. Member organizations (39 as of June 30, 2015) are required to perform a minimum of 30 service hours per year. These can be earned by doing workplace presentations, participating on board committees, new business development, serving as Affiliate Member Director and helping with administrative tasks or projects as needed by ESCA. Service hours keep overhead low and, particularly through campaign presentations, encourage donors to give more. In addition to service hour requirements member organizations are required to: Submit annual materials Attend the Annual General Meeting Vote in the annual elections Submit current 990 and audited financial statements Assist with new business development The financial penalty for non-fulfillment of service hours is $150 per hour billed to each group in deficit. Groups not performing their annual service point requirements will be put on probation, pending review by the Affiliate Relations Committee, membership may be terminated. EarthShare California Membership Dues & Service Charge Policies Joining Fees are $5,000 plus 10% of respective calculated member distributions during the first three years of membership. During the fiscal year of July 1, 2014 through June 30, 2015 there were no new members accepted. Federation Expense and Designation Policy The administrative, campaign, and program expenses of EarthShare California are shared proportional to each member s respective share of net campaign revenue, except as restricted by limitations imposed by a limited number of campaigns. Management/administrative, program and fundraising rate: 32% EarthShare National affiliation fee: 4% Pledge revenue shrinkage percentage: 6% Administrative and fundraising rate for the CFC (combined federal campaign): 11.14% Non-affiliated agencies fee/no affiliation fee charged: 10.0% Undesignated split: 60%/EarthShare California, 40%/EarthShare National The audited financial statements, of EarthShare California, cite that the federation is honoring designations made to each member organization by distributing a proportionate share of receipts based on donor designations to each member. State of EarthShare California Report 9

10 Functional Allocation of Expenses EarthShare California reports its expenses on a financial basis as follows: Program services include specific campaign actives and educational efforts on the part of ESCA, as well as activities dealing with and providing information and referral for affiliated member groups. Additionally, program services also include expenses related to the management of existing campaigns. Fundraising represents the costs related to attracting new campaigns, raising funds for internal operations. Fundraising activities include soliciting gifts, special events, writing grants, direct mail solicitations, cause marketing, online fundraising, marketing and communication with current and at-large donors, and corporate engagement. General and administrative relates to all overhead activities, including managements and general aspects that are not related to fundraising or program activities. Sale/Lease of Contributor Information EarthShare California certifies that the organization does not sell or lease the names or information provided by donors. Distribution of Funds Donor contribution revenue is recognized as pledges are made based on donor pledge forms or employer summarized information. For campaigns where there is no such information, pledges are estimated based on prior year actual collections and allocations. Contributions are allocated to affiliated organizations to the extent the donor designates a preference. Each member organization is distributed a proportionate share of receipts based on donor designations to each member. Pledges are treated as unconditional promises to give and are expected to be collected within one year. Member Organizations receive income designated to their agency and share equally in the undesignated income (any donations to EarthShare California) less ESCA s admin fees/dues as approved by the Board of Directors. Affiliated organizations also receive contributions directly from donors or third-party processors that are attributable to EarthShare California s annual workplace campaigns. Affiliated member groups are required to send these contributions to ESCA so that these amounts may be recognized in the gross campaign results and distributed appropriately. Penalty Fees are assessed to Member Organizations that do not complete the 30-hour service requirement at a rate of $150 per hour not fulfilled. (FY July June 30, 2014) State of EarthShare California Report 10

11 Historical Overview of Revenue from Workplace Campaigns EarthShare California s revenue declined due to the economic downturn, impact upon public sector campaigns, government shut down, changing environment of workplace giving, shrinkage and the use of for profit vendors in the processing of pledges and direct payment of designations. Therefore, the need to increase the administrative fee, from 25% to 32%, charged to cover the organization s operating expenses. According to an economic forecast released, by the Los Angeles County Economic Development Corporation, California employers are projected to keep hiring over the next two years but at a slower pace than in It is expected that the state will add 650,000 in 2016 and 2017 and lowering the unemployment rate to about 5.9% by Actual revenue increase or decline from existing campaigns over a 4 year campaign season: Campaign year Revenue Increase/Decline 2011 $1,321,152-8% 2012 $1,133,660-14% 2013 $1,162,651 +3% 2014 $1,033,002-11% Strategies and Accomplishments Strategy to increase revenue in existing campaigns by 11% The strategy employed to increase revenue, in existing campaigns, by 11% targeted specific campaigns that could be returned to the 2010 pledge level. Criteria for targeted campaigns were employee base, ability to increase participation rate, well managed campaign from the top down, and overall commitment to giving. New Business Development The strategy for new business development entails corporate engagement. Corporate engagement involves networking, employee engagement projects, Green Team Roundtable, expanding relationship with specific targeted campaigns and creating partnerships. Corporate & Employee Engagement Sensus conference participants were given a coin with a code to access a webpage. At that page, they selected one nonprofit project to support. A company called Causora set up the promotional page, tracking and distribution. Once the project profile has been created, it will remain on the Impact Project site, and other companies can fund it as well. Sensus anticipates roughly $10K in total support will be distributed between four projects. The four projects selected were: Northeast/Air : Replanting The Appalachian Forest, Pennsylvania: Arbor Day Foundation State of EarthShare California Report 11

12 Southeast/Wildlife : NC Native butterflies, bees and other pollinator species: North Carolina Wildlife Federation Northwest/Land: Plant the seeds for a more sustainable future: Mountains to Sound Greenway Southwest/Water Scarcity: Water Conservation Career Program: San Jose Conservation Corps Networking events attended Connecting and meeting with potential contacts is very important in developing business relationships and creating a constant flow of quality potential targets for new business. The goal is attendance at 21 networking events throughout the fiscal year. The criteria for determining what type of networking event to attend: Whenever possible review the list of attendees Attendance at speaker series events at colleges or universities such as Stanford, UCLA, Harvey Mudd, etc. Green or sustainability forums Bank networking mixers Corporate philanthropy events Chamber of commerce breakfast or mixers Green Teams Roundtable The Roundtable presents an opportunity to engage and connect with corporate sustainability directors from the private sector as well as the public sector. This is a soft sell way to engage and build relationships. The objective is to have three Green Team meetings during the fiscal year. Summary of Financial Activities (as of June 30, 2014) Certification in Accordance with GAAP The Executive Director (Patricia Smith) as EarthShare California s certifying official certifies that the federation accounts for its funds on an accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) and has an audit of its fiscal operations completed by an independent certified public accountant in accordance with GAAP. Assets Cash and cash equivalents $840,775 Pledges and grants receivable, net $694,462 Accounts receivable, net $1,220 Prepaid expenses and deferred charges $13,568 Property and equipment, net $3,320 Other assets $2,760 Total Assets $1,556,105 Liabilities Accounts payable and accrued expenses $106,988 State of EarthShare California Report 12

13 Campaign funds payable $1,081,076 Other liabilities [Affiliation fee payable] $82,159 Total Liabilities $1,270,223 Net Assets or Fund Balances Unrestricted net assets $282,171 Temporarily restricted net assets $3,711 Total Net Assets $285,882 Total Liabilities and Net Assets $1,556,105 Revenue and Expenses (for the year ending June 30, 2014) Public Support and Revenue: Amounts raised in campaigns $1,172,917 (Less campaign expenses and allowance for uncollectible pledges) Less amount designated to member charities $582,086 Public Support Designated to EarthShare California $532,664 Administrative charges for raising funds on behalf of others $410,930 Other revenue $37,673 Net assets released from restrictions: $1,000 Satisfaction of purpose restrictions Total Public Support and Revenue $992,914 Expenses Total program services $859,841 Management and general $122,896 Fundraising $47,944 Total Expenses $1,030,681 Change in unrestricted net assets ($38,767) Changes in temporarily restricted net assets Grant revenue $0.00 Net Assets released from restrictions: ($1,000) Satisfaction of purpose restrictions Change in temporarily restricted net assets $1,000 State of EarthShare California Report 13