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Winter 2011 Newsletter
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Dear Colleagues,
There has been a palpable turn over the past couple of months, with many in the sector shifting from crisis management to the more exciting, but no less challenging, role of envisioning their futures. We have seen over the years that crafting a compelling vision can be used as an excuse for not tackling "the big issues" that everyone knows are there, but are intimidating or just frustrating to put on the table. Some believe that a powerful vision will mean those challenges or disconnects will melt away, and to some extent that may be true. But we have seen clients gain truly transformative understanding and focus when they are able to delve into these tensions in a safe and constructive way. True learning comes when we listen to our intuition that something just isn't right, we face our fears or anxieties, we reflect on the discord and our mistakes, and we incorporate our new understanding into future decisions and actions. Whether you are re-thinking your board, considering a merger or collaboration, wondering whether that empty job is truly the one the organization needs to fill, crafting your strategic intent for the next few years, or considering your own professional development, before you forge full-steam ahead don't shy away from what you intuitively know needs attention. Instead of avoiding what bothers you most, dig right into it. Through our coaching and advisory services we have helped hundreds of clients "wrestle with the alligator" and come out of it with enhanced clarity, confidence, and mission impact. If you feel you are ready to commit to doing what it takes to do things better and do more of it, we look forward to working with you.
IN THIS ISSUE we are pleased to highlight two of the dozens of companies in our highly unique, collaborative network -- SGC Financial and New Resource Bank. Kirsten Weiss from SGC talks about a financial tool that we think every organization should consider, but is absolutely critical for those with founders or long-term leaders. And Bill Peterson has some tips for how your nonprofit can help the planet, save on utility bills, and invest more in your mission-related activities.
We thank our colleagues at Hood & Strong LLP for continuing to help us get the word out about the importance of succession planning and leadership sustainability in the sector by inviting Olive Grove to present to their clients in February. Olive Grove will also be presenting at the Bay Area Nonprofit Consultants group hosted by Haas, Jr. Fund in March. Look for an exciting announcement later this month about our new alliance with a national, leading evaluation firm.
We are honored that Dana Pepp and Bill Say have recently joined our network (meet them below). We welcome back Maria Rue from maternity leave in her new role as Finance Director, and congratulate Kristin Bronowicki in her expanded roles of Project Director and Director of Marketing & Communications. Thanks also to consultants Sarah Moore, Timothy Swords, and Dave Viotti for their recent help with various Olive Grove initiatives.
A special thank you to my own coach, Jeff Slayter, who never lets me get too comfortable.
Olive Grove has also engaged in a new executive search for Habitat for Humanity Greater San Francisco. Please view the position and link to the job opportunity below.
Finally, we are truly excited to be a supporter of the California Alliance for Arts Education. See below for how you can support their amazing work.
Olive Grove continues to grow and we thank each of our clients, consultants, collaborators, employees, and others who work toward our vision of "A vibrant and just society."
With warmest thoughts on a rainy winter day,
Emily
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 The "Key" to Succession Planning
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The fourth installment in our year-long series on leadership sustainability. For additional articles on this topic, see our News section on our website.
Is there life after the death of a key employee?
by Kirsten Weiss
|  As Development Director, Susan brought in over 90% of her foundation's income. Her proactive approach and wide network of contacts had made her the financial lynchpin of the foundation. The board was thrilled to have someone like her on their team, and joked that the foundation couldn't survive without her. But the jokes were tinged with unease. Susan was dedicated to the foundation and had no plans to leave, but what would the foundation do if something unexpectedly happened to her? The scenario above is a hypothetical example. But it represents a real problem in both the private and nonprofit sectors: what to do if that indispensable employee dies? The death of any employee can be psychologically devastating to an organization. The death of a key employee, however, can be financially devastating as well, threatening the organization's ability to continue its mission. Key person, or "key employee," life insurance is a common answer to this problem in the private sector, providing companies with income in the event of the death of a key employee. But while perhaps lesser known in the nonprofit sector, key person life insurance can also be a fundamental part of a nonprofit's succession plan. With key person life insurance, the institution typically owns the policy, pays the premiums, and is the beneficiary (there are even policies available to insure key donors). Organizations can purchase key person life insurance as a permanent life insurance policy, which then can be transferred to the departing employee as a retirement benefit or to a different key employee. Term life insurance can be a less expensive option, bought to cover the key person until he or she retires. The procedure for buying key person life insurance is fairly straightforward. The nonprofit's board of directors passes a resolution, affirming the purpose of the life insurance policy. The key employee must agree to the purchase of insurance on his or her life, and then undergo the standard medical interview and exams to determine the cost of the insurance.
If your institution employs anyone whose sudden, unexpected loss would significantly affect income or your ability to deliver programs, then you might want to consider key person insurance. For more information, e-mail: kirsten.weiss@sgc-financial.com. Kirsten Weiss is a financial advisor with SGC Financial, an independently owned and operated financial planning company based in San Mateo.CA Insurance License #0G53502. Registered Representative, Investment Advisor Representative, Securian Financial Services Inc. Securities Dealer member FINRA/SIPC; A Registered Investment Advisor, SGC, Inc. is Independently Owned and Operated. Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. Tracking Number #251013 and DOFU 11-2010. "At SGC Financial we provide objective customized solutions to assist individuals, professionals and business owners in reaching their financial goals." To find out more about their services please visit: http://www.sgc-financial.com
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| Insights from the Olive Grove Network |
Solar Energy Systems for Nonprofits: Shining the Light on Leasing
by Bill Peterson 
Although we are still a long ways away from a world in which all of our energy needs are provided to us by clean, renewable, and free solar energy (and by the way I'm still waiting for that personal jetpack they debuted at the 1967 SuperBowl), the fact of the matter is that we have made significant progress towards this goal over the past few years.
In the U.S. alone, 530 MW of new solar installations were completed through the 3rd quarter 2010, 22% more than the 435 MW installed in all of 2009[1].
The increase in solar energy production is the result of a combination of factors including improvements in technology, decreases in panel costs, and a myriad of incentives that have reduced the price of building solar systems. The bottom line is that individual home owners and owners of small commercial buildings can now take advantage of these factors to purchase customized solar systems and derive a net savings on their energy costs.
That is, except for nonprofit companies. Unfortunately, because many of the incentives are tax related, they are available only to for-profit entities.
Which is why nonprofit organizations should consider the benefits of a solar energy lease.
In a lease structure, the bank or leasing company owns the solar equipment. The nonprofit organization signs a lease to utilize the equipment, thus replacing most (or all) of its monthly bill for electricity with a lease payment. Under the right circumstances, the lease can be designed such that the lease payment is less than the utility bill, saving the nonprofit money on a monthly basis from day one. At the end of the lease, there is usually a buy-out provision allowing the nonprofit to purchase the system at fair market value, perhaps 20% to 30% of original cost. This provides a low-cost mechanism for the nonprofit to eventually own the system and continue to reap the benefits of (almost) free electricity.
The key to making this work is that the bank or leasing company can take advantage of all the incentives provided. In particular, this generally involves a federal tax grant that reimburses the owner of a solar system for 30% of the cost. By passing on this savings to the lessee in the form of a smaller lease amount, and ultimately a lower buy-out cost, both the bank and the nonprofit can benefit.
While a true lease structure as described above is a complex transaction in which you should consult your tax advisor, it can be well worth the benefit, both from an economic and an environmental standpoint. While it may not get you any closer to that jetpack, it will provide years of clean, renewable energy.
[1] US Solar Market Insight, SEIA and GTM Research, 3rd Quarter
Bill Peterson is Chief Credit Officer at New Resource Bank. New Resource is the premiere bank for people who are leading the way to a more sustainable world. We match an entrepreneurial spirit with a dedication to achieving environmental and social as well as financial returns. Our mission is
to advance sustainability with everything we do-the loans we make, the way we operate, and our commitment to putting deposits to work for good. To find out more about our services please visit: https://www.newresourcebank.com.
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Olive Grove's Newest Team Members
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This month, we would like you to meet the newest members of the Olive Grove Consulting team: Dana Pepp and Bill Say. We are incredibly lucky to be working with these consultants who all bring exceptional talent and unique strengths to our team and to the nonprofit sector. To read the biographies of each team member please click on their name below.
Dana Pepp Bill Say
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Olive Grove Consulting, LLC has dozens of expert consultants and multiple collaborative firms, giving us unique access to an extensive and varied range of skills and approaches. To learn more about our team members, visit our website. |
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| Olive Grove Search | Habitat for Humanity Greater San Francisco Director of Development
Olive Grove is conducting a search for a Director of Development at the Habitat for Humanity Greater San Francisco. Please view the job opportunity and description here. Interested applicants should send cover letter and resume to: HabitatGSF@olivegroveconsulting.com.
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Support California Alliance for Arts Education
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Olive Grove Consulting, LLC
www.olivegroveconsulting.com
650-591-4155 540 Ralston Ave, Suite 2C
Belmont, CA 94002
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