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Le Moyne College introduces Linda LeMura as its 14th president
SYRACUSE — The Le Moyne College board of trustees on Thursday elected Linda LeMura as the school’s 14th president, and on Friday the college introduced
WISE Symposium offers advice, networking, ‘inspiration’
SYRACUSE — The CEO of a boutique-style jewelry company, and the woman known as “SmallBizLady,” are the keynote speakers for the 12th annual WISE Symposium on April 8 at the Oncenter in Syracuse. WISE is short for Women Igniting the Spirit of Entrepreneurship. The WISE Symposium is a one-day conference that brings together women in
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SYRACUSE — The CEO of a boutique-style jewelry company, and the woman known as “SmallBizLady,” are the keynote speakers for the 12th annual WISE Symposium on April 8 at the Oncenter in Syracuse.
WISE is short for Women Igniting the Spirit of Entrepreneurship.
The WISE Symposium is a one-day conference that brings together women in business ranging from entrepreneurs to those working at the corporate level, says Lindsay Wickham, events and communications manager for the WISE Symposium.
“It’s basically professional development and a day of motivation and inspiration,” Wickham says.
The event is scheduled between 9 a.m. and 5:30 p.m. and includes speakers, activities, and opportunities for networking.
Amy Cosper, editor-in-chief of Entrepreneur magazine, will provide a “State of Women in Business” update to begin the event.
“She’s an expert in all things small business,” Wickham says.
The agenda then continues with Melinda Emerson, branded as SmallBizLady and CEO of Drexel Hill, Pa.–based Quintessence Multimedia, who will deliver the morning keynote address.
Quintessence Multimedia is a social-media strategy and content-development firm. Emerson develops audio, video, and written content to help her “Fortune 500 clients engage small-business customers,” according to the website for the Melinda Emerson Foundation.
Emerson’s presentation, “How to Reinvent Your Business and Become a Social Media Ninja” will seek to inspire attendees to achieve their potential by “dreaming big” and using tools, resources, and social media to reach their goals, according to a WISE Symposium news release.
“Her focus is going to be on reinventing your business and how to … use social media to create a larger network,” Wickham says.
Emerson is currently the “most highly followed woman entrepreneur” on Twitter, according to Wickham. Emerson currently has 255,000 followers on Twitter under her handle @SmallBizLady,
Emerson is also author of “Become Your Own Boss in 12 months.”
Later in the day, Jessica Herrin, CEO of Burlingame, Calif.–based Stella & Dot LLC, will deliver the WISE Symposium’s afternoon keynote address, “Achieving Success and Balance through a Career You Love.”
In her remarks, Herrin will describe her entrepreneurial journey designing a career that fit with her family priorities.
“She’s going to focus more on balance and how to keep yourself balanced between work and your life outside of work and why it’s important to do something that you love,” explains Wickham.
Herrin, Emerson, and Cosper are among 60 speakers who will participate in the WISE Symposium. Many are sharing their expertise in three breakout sessions focusing on a variety of business topics, according to the event brochure.
The topics include social entrepreneurship, negotiation skills, forming partnerships, health and wellness, time management, according to Wickham.
The speakers also include Alicia Marie, CEO of Texas–based People Biz Inc., a coaching and training company.
During her stay in Syracuse, Marie will conduct a two-day, leadership-training seminar entitled “Coaching Skills for Managers,” which is set for April 9 and 10 at the Syracuse Tech Garden.
“It’s all focused on communication and how effective communication really can help build your business,” Wickham says.
The seminar is worth 12 continuing-education credits. Professionals in industries, such as law and accounting, are required to earn a certain number of education credits annually, she adds. Paperwork will be available on site for the participants to submit to earn the credit.
Besides the seminar, participants can also earn the credits by taking part in the digital-media lounge where experts in social and digital media can provide one-on-one help; the WISE Women’s Business Center Connections Café, offering trained business counselors and experts in startup topics; and the WISE roundtable lunch sessions, with topics such as WISE Latinas and WISE Veterans, according to the event brochure.
In advance of the symposium, the nonprofit SyracuseFirst is sponsoring an event entitled “Be WISE Buy LOCAL Spring Fling,” which includes sampling, entertainment, and networking on April 7 from 5 p.m. to 7 p.m. at the Oncenter.
The Falcone Center for Entrepreneurship at Syracuse University’s Martin J. Whitman School of Management works with the WISE Women’s Business Center to organize the annual WISE Symposium.
Contact Reinhardt at ereinhardt@cnybj.com
PeopleSystems partners with Sandler Training to develop training division
SYRACUSE — PeopleSystems, a Syracuse–based firm that specializes in providing business services to clients nationwide, has partnered with the local franchise of Sandler Training to develop a training division. PeopleSystems, which operates at 241 W. Fayette St. in Syracuse, helps its clients with human-resources compliance, unemployment-cost control, and training. Sandler Training is the local affiliate
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SYRACUSE — PeopleSystems, a Syracuse–based firm that specializes in providing business services to clients nationwide, has partnered with the local franchise of Sandler Training to develop a training division.
PeopleSystems, which operates at 241 W. Fayette St. in Syracuse, helps its clients with human-resources compliance, unemployment-cost control, and training.
Sandler Training is the local affiliate of the Owings Mills, Md.–based Sandler Sales Institute, which follows the methodologies and techniques of David Sandler, who founded the organization in 1983.
Sandler Training, which has a local history dating back to 1987, was most recently known as Dermody, Burke & Brown [DB&B] / Peak Performance Management / Sandler Training.
Franchise owner Richard (Rick) Olszewski and Sandy Stefano, the local franchise’s director of operations, on Nov. 1 of last year moved into new office space at PeopleSystems.
Olszewski is commonly known to colleagues and associates as “Rick O.”
Olszewski and Stefano had previously operated the franchise at the office of Syracuse accounting firm DB&B, located at 443 N. Franklin St. in Syracuse’s Franklin Square area.
PeopleSystems was familiar with the work of Sandler Training from a previous working relationship between the two organizations, says John (Jack) Rade, president and CEO of PeopleSystems, speaking by phone from his office in Jacksonville, Fla.
“We hired Rick and Sandler many years ago … and were very impressed with what they accomplished for our people both in sales and customer service while servicing our clients,” Rade says.
Rade wanted to eventually have a training arm for his company and has wanted that “for a long time,” Olszewski says.
“He had thought that with the products … and services that we provide, we could enhance the … the short-term relationships they have throughout the states as well as have longer-term business relationships with our product line,” Olszewski added.
With “thousands” of clients in all 50 states, PeopleSystems wanted to expand its training services, Rade says.
The training had focused on topics such as sexual harassment, discrimination, unemployment insurance, and workers’-compensation issues, Rade says.
“What we wanted to do was to expand that training and create a separate division, which is in effect what we did by bringing Sandler on board,” he adds.
Olszewski says the discussions to integrate Sandler Training into PeopleSystems’ current operations began last June.
“There is a financial arrangement that was made in order to do that … if it didn’t work … Rick is always free to leave and he still owns his franchise … We see this as a PeopleSystems training service and Sandler is a part of it,” Rade explains.
Neither side disclosed the terms of their financial agreement. The two entities signed their deal “in October” to begin their relationship as of Nov. 1, Olszewski says.
Jack McDermott, an attorney with McDermott & Britt, P.C. provided legal consultation for PeopleSystems in the transaction, according to Christopher Fletcher, the firm’s executive vice president and COO.
At the time of the discussions with PeopleSystems, Olszewski was majority owner of the local Sandler franchise with DB&B as a minority-equity partner, he says.
Olszewski eventually acquired the DB&B stake in the franchise to become sole owner of Sandler Training. Sandler still views its relationship with DB&B as a “strategic alliance,” Olszewski says.
Sandler still uses the DB&B office at 443 N. Franklin St. as a training center, according to an email message Stefano sent out last October.
About the organizations
The local franchise of Sandler Training started as Peak Performance Management, a company that Peter Morrissey started in 1987 and later became Sandler Training. Morrissey retired last year.
Olszewski first worked with Peak Performance in 1998 as a client and later joined as an associate and trainer of the Sandler Training program.
Dermody Burke & Brown became familiar with Sandler’s services, purchased a stake in the local franchise, and became a minority owner with Olszewski.
Sandler hopes to add three account executives and two trainers over the next two years as the firm grows, Olszewski says.
He declined to disclose any revenue information for the local Sandler franchise.
PeopleSystems is a registered trademark of National Employers Council, Inc., which began in 1975 as an unemployment-tax control service, according to its website.
The firm has operated in its current location since December 1986. Jack Rade and his business partner, Donald Frank, share equal ownership in the company, Rade says.
The firm employs 71 full-time employees. It has a backup operations center in Brighton, Colo. and offices in Massachusetts, Tennessee, Florida, California, and Oregon.
Rade declined to disclose specific revenue information but indicated PeopleSystems generated 5 percent growth in 2013 compared to the previous year. He’s also projecting an additional 5 percent revenue growth in 2014.
The firm’s clients include Syracuse University, the PGA Tour, and Avon Products, Rade says.
Contact Reinhardt at ereinhardt@cnybj.com
Polaris Library Systems acquired by a California firm
SALINA — Polaris Library Systems, a Salina–based provider of automation software for public libraries, is under new ownership. Emeryville, Calif.–based Innovative Interfaces, Inc., a firm that also specializes in library technology, on April 1 announced it acquired Polaris on March 31. Neither side released terms of the acquisition in the Innovative Interfaces news release. The
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SALINA — Polaris Library Systems, a Salina–based provider of automation software for public libraries, is under new ownership.
Emeryville, Calif.–based Innovative Interfaces, Inc., a firm that also specializes in library technology, on April 1 announced it acquired Polaris on March 31.
Neither side released terms of the acquisition in the Innovative Interfaces news release. The Central New York Business Journalrequested phone interviews with top officials from both Polaris and Innovative Interfaces, but did not hear back by press time.
The transaction represents the combination of two companies with “complementary strengths” that will allow us to “better serve” the technology needs of public libraries, Kim Massana, CEO of Innovative Interfaces, said in the release.
“We have appreciated and respected Polaris’s focus on service and support, especially to public libraries, and we look forward to combining two great service organizations and learning from each other,” Massana added.
Innovative Interfaces currently supports an installed base of more than 1,000 public-library systems, the company said. It employs about 450 staff in office locations around the globe. In addition to the Emeryville, Calif. headquarters and the Salina, N.Y. location, Innovative also operates international offices in Dublin, Ireland; Barcelona, Spain; and Noida, India, the company said.
Innovative Interfaces will retain Polaris’s current office to serve as one of Innovative’s centers of operations, along with the headquarters, Dublin, and Noida, India locations.
Polaris Library Systems on Jan. 2 announced it added 20 employees in 2013 to support a “significant” increase in customers. The firm, which is located at 103 Commerce Blvd. in Salina, now employs about 100 people, according to its website.
The firm added the new staff members in all departments, including customer support, product management, marketing, quality assurance, research and development, and administration, Polaris said in its Jan. 2 news release.
In 2013, 44 libraries selected the Polaris Integrated Library System, representing over 130 new locations adopting Polaris library software throughout the U.S. and Paris, France, the company added.
Bill Schickling, former president and CEO of Polaris Library Systems, will remain with Innovative Interfaces as vice president of public-library products. The remainder of the Polaris executive team will join the Innovative management group in “various roles,” the company said.
Polaris’ senior-leadership team, including Schickling, had been the company’s owners
“I am particularly proud of what we’ve accomplished here at Polaris over the past 11 years,” Schickling said in the news release. “We’re joining forces with Innovative because we think the combined company will provide Polaris customers with a long term partner for innovation and growth.”
The firm Gaylord Bros. developed Polaris, an integrated library system, in 1997. Polaris became a stand-alone company in 2003 when Gaylord Bros. sold the library furniture and supplies portion of the company to a competing firm, Madison, Wisc.–based Demco, Inc., according to the Polaris website.
In early 2010, Polaris employees arranged a management-led buyout of the company. The firm’s senior-leadership team, including Schickling, had been serving as the company’s owners, according to its site.
Polaris Library Systems generates annual revenue of about $18 million, according to the 2013 Business Journal 500 publication.
Contact Reinhardt at ereinhardt@cnybj.com
Tom Cavallo’s Restaurant to formally open new division, Corked, on April 11
NEW HARTFORD —Corked, a new division of Tom Cavallo’s Restaurant, will hold a ribbon-cutting ceremony to celebrate its grand opening on April 11 at 5 p.m. Greater Utica Chamber of Commerce Executive Director Pamela G. Matt, the chamber’s ambassadors group, and other local dignitaries will attend the celebration at the restaurant at 40 Genesee St.
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NEW HARTFORD —Corked, a new division of Tom Cavallo’s Restaurant, will hold a ribbon-cutting ceremony to celebrate its grand opening on April 11 at 5 p.m.
Greater Utica Chamber of Commerce Executive Director Pamela G. Matt, the chamber’s ambassadors group, and other local dignitaries will attend the celebration at the restaurant at 40 Genesee St. in New Hartford, according to a news release.
Noelle Cavallo-Nattress, owner of Cavallo’s, says she is looking forward to be bringing more of a “local flare” to the restaurant with this new wine-bar division. “Our vision with opening Corked is to offer a more upscale social experience with a local twist,” she said in the release. “We will offer local food and beverage options extending from our hometown to across New York State.”
Corked will feature a whole new look with exposed brick walls and a new bar top. It replaces the Hava Cigar Bar, according to the release.
“We want the feel of Corked to be homespun, while showcasing an industrial look,” Cavallo-Nattress said in the release. “It is our goal to make our guests feel warm and welcome, while offering them a high-end affordable product.”
Other features of Corked will include a repurposed beam ceiling and all new seating.
Tom Cavallo’s Restaurant (www.cavallos.com) is open seven days a week from 11 a.m. to 2 a.m. It also provides catering and banquet services, according to its website. The eatery was started in 1949.
The menu includes pizza, chicken wings, steak, seafood, pork chops, lasagna, chicken and vodka riggies, and Utica greens.
Contact The Business Journal at news@cnybj.com
NYPA updates strategic plan, calls for modernizing New York state’s power system
The New York Power Authority (NYPA), the statewide public-power utility, on March 26 announced an updated strategic plan, which includes the state’s power infrastructure. The plan, entitled Strategic Vision 2014-2019, focuses on providing “more value” to NYPA’s customers and building on its role as a “responsible” steward of its assets, including the state’s hydropower resources,
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The New York Power Authority (NYPA), the statewide public-power utility, on March 26 announced an updated strategic plan, which includes the state’s power infrastructure.
The plan, entitled Strategic Vision 2014-2019, focuses on providing “more value” to NYPA’s customers and building on its role as a “responsible” steward of its assets, including the state’s hydropower resources, NYPA said in a news release.
The energy industry is in the early stages of “transformative” change that will alter the way our customers generate, deliver, and use electric power, John Koelmel, chairman of the NYPA board of trustees, said in the news release.
“The Power Authority has issued its updated strategic plan to reflect how it must also change, adapt, and lead moving forward,” Koelmel said.
Onondaga County Executive Joanie Mahoney serves as the vice chair of the NYPA board of trustees.
In its plan, NYPA discusses efforts to work with its customers to understand their energy and business requirements, further reduce their energy costs, strengthen system resiliency, and meet environmental and sustainability goals, the authority said.
It also plans to increase efforts to modernize its generation and transmission infrastructure, building on Gov. Andrew Cuomo’s Energy Highway Blueprint and his other energy initiatives.
“By making our infrastructure more flexible, resilient and connected, we will be ready to accommodate newer, evolving technologies to meet the energy challenges faced by our customers and support Gov. Cuomo’s efforts to transform and modernize the state’s electric-power system,” Gil Quiniones, president and CEO of NYPA, said in the news release.
Its by-laws require NYPA to annually review and update its strategic plan and mission statement, the authority said. Both serve to guide the development and implementation of all NYPA operations, including the annual budget and capital-expenditure plan.
The New York Power Authority uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned “in large part” through the sale of electricity, NYPA said.
Contact Reinhardt at ereinhardt@cnybj.com
Upstate consumer sentiment slides in March
The cold weather of the winter season and the heating bills that followed may have hindered upstate New York consumers’ willingness to spend in March, according to an analyst at Siena College who tracks the data. Consumer sentiment in upstate New York fell 5.3 points to 68.8 in March, according to the latest monthly survey
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The cold weather of the winter season and the heating bills that followed may have hindered upstate New York consumers’ willingness to spend in March, according to an analyst at Siena College who tracks the data.
Consumer sentiment in upstate New York fell 5.3 points to 68.8 in March, according to the latest monthly survey the Siena (College) Research Institute (SRI) released April 2.
Upstate’s overall-sentiment index of 68.8 is a combination of the current-sentiment and future-sentiment components. Upstate’s current-sentiment index of 73.1 fell 9.9 points from February, while the future-sentiment level slipped 2.5 points to 65.9, according to the SRI data.
The Upstate figure was 5.1 points below the statewide consumer-sentiment level of 73.9, which fell 2.4 points from February, SRI said.
New York’s consumer-sentiment index was 6.1 points lower than the March figure of 80 for the entire nation, which fell 1.6 points from February, as measured by the University of Michigan’s consumer-sentiment index.
The numbers in this survey left Douglas Lonnstrom, professor of statistics and finance at Siena College and SRI founding director, “surprised.”
March didn’t include a lot of bad economic news and Wall Street “did alright,” so Lonnstrom figured the sentiment numbers might rise in March.
“To me, it’s very clear the heating bills of January and February have hit home,” he contends.
The monthly survey also reflects greater concern about the prices of food and gas, two factors that Lonnstrom says can “dampen” consumer confidence. “I’m pretty sure that’s what happened here,” he says.
When compared with the previous three years, the state’s overall-confidence sentiment of 73.9 is down 0.6 points from March 2013, off 2.4 points from March 2012, and has increased 6.3 points compared to March 2011, according to the SRI data. The sentiment index measured 59.7 in March 2009.
In March, buying plans rose 4.5 points to 33.1 percent for consumer electronics; increased 3.6 points to 21.9 percent for furniture; and climbed 4.5 points to 18 percent for major home improvements. Buying plans fell 2.4 points to 11.7 percent for cars and trucks; and slipped 0.1 points to 3.8 percent for homes.
Gas and food prices
In SRI’s monthly analysis of gas and food prices, 64 percent of upstate respondents said the price of gas was having a serious impact on their monthly budgets, up from 58 percent in February.
In addition, 57 percent of statewide respondents indicated concern about the price of gas, up from 51 percent in February, according to SRI.
“That’s a tremendous jump in one month,” Lonnstrom says.
When asked about food prices, 66 percent of Upstate respondents indicated the price of groceries was having a serious effect on their finances, up from 62 percent in February.
About 68 percent of statewide respondents expressed concern about their food bills, up from 63 percent in February.
SRI conducted its survey of consumer sentiment in March by random telephone calls to 640 New York residents over the age of 18.
As consumer sentiment is expressed as an index number developed after statistical calculations to a series of questions, “margin of error” does not apply, SRI stipulates.
Buying plans, which are shown as a percentage based on answers to specific questions, have a margin of error of plus or minus 3.9 points, SRI said.
Contact Reinhardt at ereinhardt@cnybj.com
Chemung Financial board adds Tranter, Tyrell as new directors
ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG) announced it has added G. Thomas Tranter, Jr., of Horseheads, and Thomas R. Tyrrell, of Loudonville, to the board of directors of Chemung Financial and its primary subsidiary, Chemung Canal Trust Company. Tranter is president of Corning Enterprises, a unit of Corning, Inc. He joined Corning in 2000
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ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG) announced it has added G. Thomas Tranter, Jr., of Horseheads, and Thomas R. Tyrrell, of Loudonville, to the board of directors of Chemung Financial and its primary subsidiary, Chemung Canal Trust Company.
Tranter is president of Corning Enterprises, a unit of Corning, Inc. He joined Corning in 2000 after serving 10 years as Chemung County executive. Tranter previously was Chemung County deputy executive, Horseheads village manager, and executive director of the Chemung/Schuyler Chapter of the American Red Cross.
Tranter currently serves as co-chairman of the Southern Tier Regional Economic Council for New York State, is vice-chair of the New York State Business Council, and vice-chair of Corning Hospital.
Tyrrell, a native of Albany, is the Albany–area chairman of Arthur J. Gallagher & Co., an international service provider of property/casualty insurance, and risk-management programs. Tyrrell has been in the insurance industry his entire career. He joined Fuller & O’Brien in 1974 and served as president and CEO until 2008, when the company was sold to Arthur J. Gallagher & Co. Throughout his insurance career he has specialized in the construction industry, with particular emphasis on the heavy highway, bridge, and general building construction disciplines.
Tyrrell currently serves as chairman of the St. Peter’s Hospital Foundation board of directors and is a member of the board of the Eastern Contractors’ Association of New York State, the Empire Broadcasting Company, Maria College of Albany, the Albany Police and Fire Foundation, and Saint Gregory’s School for Boys. He has also served on the Advisory Board of Capital Bank, the Albany division of Chemung Canal Trust Company.
How the Little Guys Can Win In Today’s David-and-Goliath Business World
Before the Internet, small companies didn’t stand a chance against the Goliaths. That’s because no war can be won without intelligence and, before the digital era, collecting actionable data and information about one’s competitors, market, and customers cost a lot more than most small businesses — the Davids — could afford. But today, the Davids
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Before the Internet, small companies didn’t stand a chance against the Goliaths.
That’s because no war can be won without intelligence and, before the digital era, collecting actionable data and information about one’s competitors, market, and customers cost a lot more than most small businesses — the Davids — could afford.
But today, the Davids are taking down the Goliaths
Thanks to the Internet, the boutiques and startups have access to all kinds of free tools for gathering intelligence. They’re also much more agile than the big corporations; they can make a decision and act immediately. That’s essential in a marketplace where conditions change quickly.
Lessons [can be learned and applied] from Sun Tzu’s “The Art of War” — the 2,000-year-old military treatise penned by one of the greatest commanders in history — to the modern business economy. Sun Tzu held that the goal in any war is to win without ever entering into physical battle.
By gathering actionable data and acting on it immediately, by using it to predict next moves and spot opportunities, small businesses can and are taking down the big ones without a drop of blood being shed.
Here are some tips for small-business owners to acquire and use intelligence:
What enables you to make smart, timely decisions is access to precise intelligence. Your advantage, as a smaller business, is that you don’t have the corporate processes and protocols that inhibit fast action.
As Sun Tzu wrote, “It is said that if you know your enemies and know yourself, you can win 100 battles without a single loss.”
Corrine Sandler is founder and CEO of the global market-research agency, Fresh Intelligence Research Corp., as well as international professional speaker and author. She wrote the new book, “Wake Up or Die” (www.wakeupordie.us), which she calls a comprehensive guide to the use of intelligence in the contemporary business environment. This viewpoint article is drawn from a news release Sandler issued.
Mergers and Consolidations: An Opportunity for Today’s Nonprofits
During the economic downturn that began around 2008 and continued for several years, mergers and acquisitions between for-profit businesses slowed significantly. However, mergers, consolidations, and other types of affiliations began to proliferate among nonprofits during this time as several factors forced nonprofits to look for means to cut costs and do more with limited resources.
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During the economic downturn that began around 2008 and continued for several years, mergers and acquisitions between for-profit businesses slowed significantly. However, mergers, consolidations, and other types of affiliations began to proliferate among nonprofits during this time as several factors forced nonprofits to look for means to cut costs and do more with limited resources.
The recession affected nonprofits especially hard as they saw a decrease in individual giving, reduced endowments, and an increased demand for services along with other higher expenses. Generally, individual giving accounts for 75 percent to 80 percent of charitable contributions to nonprofits, with gifts from private foundations, bequests, and corporate giving accounting for the remainder of charitable contributions.
It is estimated that cash contributions to nonprofits peaked at $156 billion in 2006 but fell by 13 percent from 2007 to 2009, and that non-cash contributions peaked at $62 billion in 2007 but fell by 47 percent from 2007 to 2009. Private giving in 2010 returned to pre-recession levels, but the steep decline in giving during the recession years placed severe financial pressure on nonprofits.
Adding to the strain caused by the drop in charitable giving during the recession was the decrease in endowment value suffered by the majority of nonprofits. Not only did many organizations witness a decrease in endowment value due to the collapse in investment asset values, but the decrease in charitable contributions also forced a significant number of nonprofits to draw down reserves or endowment money just to maintain operations.
Mergers, consolidations, and other types of affiliations allow nonprofits to stretch limited resources by creating efficiencies through economies of scale and reducing overlapping services. These types of transactions typically only occur among nonprofits that perform similar services and are formed for similar charitable, educational, or religious purposes. Further, nonprofits in New York are generally formed under the New York Not-for-Profit Corporation Law and must navigate that law’s restrictions, including obtaining approval of the state Office of the Attorney General, the courts, and various New York state agencies, before a merger or consolidation can be completed. However, despite the legal restrictions that must be overcome to complete a merger, consolidation, or other type of affiliation between nonprofits, the benefits provided by these types of transactions allow cash-strapped nonprofits to continue providing important and needed services.
An additional benefit created through nonprofit mergers or consolidations is found in the decreased competition for limited resources, such as state funding. An example of this can be found where two organizations provide the same charitable services, such as assistance to persons with specific needs, but in different locations that are in close proximity. These types of entities provide services to their communities that are typically eligible for limited amounts of state funding through contracts or grants. The merger of these two nonprofits would not only allows these entities to reduce costs by consolidating staff, reducing office space, and thereby reducing administrative costs and overhead that deplete valuable resources that could be used to fulfill the organizations’ charitable purposes. On top of that, it also means that the organizations are no longer competing for limited resources like state funding or charitable contributions. In short, a merger or consolidation will allow nonprofits in most cases to both decrease costs and increase potential sources of support for their charitable purposes.
Completing a merger or consolidation will require nonprofit administrators or directors to consider how best to combine the assets and personnel of the two entities’ operations in a manner that will best promote the organizations’ charitable purposes and the services they provide. Administrators must make important determinations regarding reducing office space, how best to consolidate administrative staff, such as accounting or payroll personnel, to reduce redundancy, and where to locate the new organization’s primary office. Due to the requirements of New York’s laws governing nonprofits, a merger, consolidation, or other affiliation can be a lengthy process. But proper administrative planning will allow the newly merged or consolidated organization to generate significant savings and provide the potential for better services as the pool of staff and expertise available to the organization is expanded.
Scott R. Leuenberger is a business law attorney at Bond, Schoeneck & King, PLLC. He has experience in for-profit and not-for profit corporate formation, Internet startups, and corporate financing. Contact him at sleuenberger@bsk.com or (315) 218-8393.
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