Archive of "Did you know..." Items:
Here are a few things we thought you'd like to know
Ever wish you could get credit for all that you do? Well, sufficient personal appreciation may never come your way, but getting credit and banking from an institution that understands your nonprofit organization, its staff, stakeholders, and volunteers is closer than you may think!
With a new twist on the “move your money” groundswell, NIAC and ANI are working with other nonprofit leaders to meet nonprofits’ credit needs much like we have done with insurance. We are forming American Nonprofits Federal Credit Union!
Our first step was to form American Nonprofits, a national membership organization of nonprofits, finance directors, executive directors, funders, researchers, and others wanting to engage issues around nonprofit finance and strategy. Blue Avocado’s Jan Masaoka and I are Nonprofits Insurance Group’s, Pamela Davis, two of the founders. We are in the very early stages of developing our products and invite you to tell us how we can best serve you. Check it out at www.americannonprofits.org
The National Credit Union Administration has given preliminary approval for our request to form a credit union under the associational bond of American Nonprofits, whose membership includes 501(c)(3) nonprofits, their employees, volunteers and stakeholders. We will be sending out a survey about banking and credit needs to member organizations and individuals in September.
Members of ANI or NIAC have a one year complimentary membership in American Nonprofits. While we expect the credit union formation process to take a year or more, you can stay updated by signing up here for the mailing list, or by checking our updates when you visit www.americannonprofits.org. Check out the site, free webinars, and, of course, the latest issue of Blue Avocado, which is now the “official” magazine of American Nonprofits.
Find out more at www.americannonprofits.org
Everything you wanted to know about nonprofits (and weren't afraid to ask!)
Need a good new fundraising idea? Wonder whether others are really having any success with social media? Ask it on www.allaboutnonprofits.org. In response to requests from our members for an information sharing tool for nonprofits, ANI and NIAC are proud to announce the launch of www.allaboutnonprofits.org. It is a forum for finding and floating good ideas regarding all things nonprofit. Don’t see your topic? Request it. We will be available as moderators and hosts for the site, but this is YOUR forum. It is our hope that this new tool will stimulate valuable information sharing among nonprofits. If you have the answer to a question, chime in and share your knowledge! No login is required to post and read comments. Through the sharing of information and expertise, we can help make the nonprofit sector stronger for all of us.
Blue Avocado is an online magazine published twice a month for those whose values have connected them with the nonprofit sector.
With ANI you don't just get great insurance tailored just for nonprofits by a nonprofit insurer; you also get many free and highly subsidized management resources. And now, through cooperation with CompassPoint Nonprofit Services and the irreverent and "in the know" Editor-in-Chief Jan Masaoka, we bring you yet another fabulous resource: www.BlueAvocado.org, an online magazine published twice a month for those whose values have connected them with the nonprofit sector. But unlike many of our special ANI products and services (which are only available to members), Blue Avocado, is meant to be shared broadly. So, pass this along to your friends who love this nonprofit sector as you do, and invite them to subscribe for free by sending a blank email to firstname.lastname@example.org.
NIAC is rated A VIII (Excellent) by A.M. Best Company. According to A.M. Best, “The rating recognizes the group’s excellent capitalization and operating performance, strong management, and effective niche market strategy. It also considers the companies' strategic roles and the benefits they derive as part of the Nonprofits Insurance Alliance Group"
Good news for NIAC members! NIAC is a member-governed 501(c)(3) charitable risk pool created and operated exclusively for the benefit of other 501(c)(3) tax-exempt nonprofits in California. Now more than 7,500 members strong, NIAC holds an A VIII rating from AM Best and has reached a sufficient size and financial strength to be able to share its financial success with its members.
NIAC is an example of the power of nonprofits working together. In addition to offering stable and affordable liability coverage, specialized claims service, and a variety of resources to help members avoid accidents, we are delighted to be able to establish this Dividend Plan to reward member loyalty and commitment to loss control.
NIAC’s financial results vary depending on the claims experience of its members. When NIAC’s financial results are better than expected, we believe that it is in the best interests of our members to share this success with them. To do so on an equitable basis, NIAC has developed a Dividend Plan to allocate such benefits when they are declared. A summary of the plan is provided below:
In any year that a Company-wide Dividend is declared by the NIAC board of directors, members that qualify will receive a Member Dividend check within 30 days of their subsequent policy renewal with NIAC. The amount of that check will vary depending on the premium size paid by a member, their claims experience, and the length of time they have been insured by NIAC. Members begin accruing Loyalty Credits immediately. Loss Ratio Credits begin accruing after six years of continuous membership with NIAC. Each member’s check will be a pro-rata portion of the Company-wide Dividend declared by the board of directors. A qualifying member is eligible for a dividend beginning the January 1 following three full policy years of continuous NIAC membership.
Please refer any questions about this plan to Pamela Davis, (831) 621-6018 or email@example.com.
Operating under Section 5005.1 of the California Corporations Code, NIAC is a nonprofit public benefit corporation, exempt from federal tax under section 501(c)(3). NIAC began operations in 1989. NIAC is rated, A VIII (Excellent) by A.M. Best Company.
NIAC is a member-governed nonprofit public benefit corporation. NIAC is part of a group of affiliated companies including the Alliance of Nonprofits for Insurance, Risk Retention Group (ANI) serving nonprofits outside California, the National Alliance of Nonprofits for Insurance, a captive reinsurer, and Alliance Member Services, a management company. All of these related organizations are 501(c)(3) tax-exempt charities with independent, but related, boards of directors which share financial information, and which retain governance authority for their individual organizations in the Nonprofits Insurance Alliance Group.
NIAC serves a broad array of 501(c)(3) nonprofit organizations such as boys and girls programs, animal rescue operations, group homes, senior organizations, theater groups, food banks, community groups and others. Today, nonprofits are facing cutbacks in government funding, grants and contributions while the need for their services increases. We are proud to be associated with the organizations that make up this important sector and do our best to support their efforts by providing them with appropriate insurance coverages and risk management tools to protect their organizations and their clients. Click here for more information about NIAC's member composition.
NIAC was founded in 1989 as a liability insurance pool, owned and operated by its nonprofit members. NIAC was originally capitalized with $1,300,000 from the following foundations:
Wallace Alexander Gerbode Foundation
San Francisco Foundation
Walter S. Johnson Foundation
David & Lucile Packard Foundation
Marin Community Foundation
NIAC is governed by a board of directors elected annually by its member nonprofits.The NIAC Board of Directors is composed of eleven (11) board members, including five (5) member-related directors, four (4) professional directors, and the NIAC president, who is a permanently designated director.
Nonprofit Members are Represented on the Board
From its beginnings, NIAC has been an organization driven by grassroots nonprofits. Its member-insureds are all 501(c)(3) nonprofits, and most of their work is community-based. The board has a healthy mix of representatives of nonprofit member-insureds and independent professionals. While NIAC is managed by a group of seasoned executives, the board of directors plays an active role in governance and oversight, actively debating issues of policy to ensure the best possible decision-making for NIAC on behalf of the members.
Nonprofit Members Elect the Board
The board of directors of NIAC is elected by the membership, with each member having one vote. Approximately one-third of the board stands for election each year. NIAC has two types of directors. A “member-related” director is a director who holds a position as an officer, director or employee with management responsibilities of a member of an NIAC member. A “professional” director is a director who has substantial management or professional experience in one or more of the following areas: (i) law; (ii) accounting; (iii) banking; (iv) business; or (v) insurance. At all times at least fifty-one percent (51%) of the directors must be “member-related” and at least three (3) must be “professional” directors. By practice five (5) directors have been “member-related” and four (4) have been “professional.” Typically the slate for “member-related” directors is competitive, with more nominees than open director seats. The slate for “professional” directors is typically not competitive as it represents specific skill sets the board has determined are needed for the board at that time.
Nonprofit Members Nominate Board Candidates
Nominations are solicited from the entire NIAC membership in the fall via an electronic, faxed or mailed nomination form. All nominees are interviewed by one or more members of the Board Development Committee. The Committee meets to review the candidates and recommend a slate to the full board of directors at its December meeting. Nominees need not have insurance experience. However, they must, in the opinion of the Board Development Committee, have sufficiently broad experience to bring value to the NIAC board. Every effort is made to produce a diverse slate, however, the Board Development Committee has limited control of this since nominations come directly from the NIAC membership. Once approved for the slate by the Committee, nominees are required to supply information to enable NIAC to conduct a background search that includes credit and criminal history, and confirms any higher education reported by the candidate. The background search information is provided electronically to the Board Development Committee chairperson by the background search service. Only issues that would potentially disqualify a candidate are then shared with the full Committee for consideration.
At its December board meeting, the slate of candidates who have qualified through the Committee and background check process, is discussed and approved as recommended or amended, and submitted to the membership for a vote. The ballot is sent to each member electronically, or by fax or mail, in early January. The election period closes in early February. Those who receive the largest number of votes in the open categories (i.e. “member-related” or “professional”) become directors immediately upon the close of the election. Terms are for three years.
In case a vacancy is created between elections, the board of directors may appoint a director to fill the unexpired term.