Impact Foundry Member Highlight

September is Hunger Action month, which focuses on spreading the word and taking action on the hunger crisis. We celebrate our food bank members who are doing just that:

Thank you for all that you do for our community!

Impact Foundry Faculty Q&A with Scott Galbreath

Meet our faculty member, Scott Galbreath of Murphy Austin Attorneys.

Scott has more than 30 years of experience representing employers in ERISA, employee benefits, and executive compensation matters. He also practices in the areas of tax, estate planning, business and nonprofit law.
Q: Why are retirement plans important to a nonprofit’s sustainability?

A: First, nonprofits compete with for-profit businesses for a talented workforce. Whether it is the Executive Director, a CFO, Marketing Director, Human Resources, or rank and file employees. All benefits such as retirement plans, health insurance, and paid time off are important parts of the total compensation package provided to employees. Any organization that wants to have a stable and sustainable workforce needs to provide a retirement plan because employees are looking for it.

Here in California, we now have the CalSavers program which is statutory law and requires that any employer, even a nonprofit, that has 100 or more employees but doesn’t offer them a retirement plan must enroll such employees and automatically withhold 5% of their wages and pay it to CalSavers to be put into Roth-IRAs for the employees. Such employers must comply by September 30 or face penalties. Now, I know that, currently, this only affects the largest nonprofits that would have that many employees, but next year the threshold number of employees drops to more than 50 employees, and in 2022 it drops down to more than 5 employees. That would affect a number of small and mid-size nonprofits. The thing is that while the CalSavers plan helps employees save for retirement such savings is limited by the amount that can be contributed to an IRA (currently $6,000, $7,000 if over age 50). Additionally, employees can always opt out. However, there are other types of plans that nonprofits can adopt that can provide much better benefits than CalSavers and can be designed to meet the employer’s goals such as rewarding loyalty or rewarding employees who take the responsibility for saving for their retirement. 

There are also unique circumstances for nonprofit, tax-exempt organizations when it comes to retirement plans. There are issues of excess compensation, excess benefit, and private inurement that must be considered. Additionally, there are unique plans depending on the type of exempt organization. For example, organizations exempt under Internal Revenue Code section 501(c)(3) can adopt 403(b) plans. Other exempt organizations such as a 501(c)(6) trade or professional associations cannot. 

Finally, whether an organization only has one full-time Executive Director and part-time employees or volunteers or the organization has several full-time employees, a retirement plan can be designed to only cover executives of the organization. This plan could be the only plan offered or can be in addition to a plan covering rank and file employees as well. I know of organizations that were started by the founder who became the Chief Executive Officer and the only full time employee for 10 or 20 years without having any retirement plan for any employees. So the founder-CEO has no retirement savings unless he or she has contributed to an IRA from salary. In my opinion, such an organization is not sustainable and unlikely to survive the retirement of the founder. 

I will be discussing CalSavers, alternative private plans for nonprofits and their unique issues, plans for executives, and federal legislation in response to the COVID-19 Pandemic permitting employees to have access to retirement plan assets to help relieve economic hardship in my workshop Sustaining A Stable Workforce With Retirement Plans on September 29 at 9:30am. 

Take Our Survey!

Which workshop topics do you feel would be beneficial to your organization during this time? We want to hear your feedback! This quick survey will only take 2 minutes to complete.

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The Youth & Family Collective is excited to partner with the City of Sacramento and citiesRISE to continue #SacYouthWorks, a work-based learning program for youth and young adults ages 12 -24 to address the impacts of COVID-19.

The City has allocated $1.3 million through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to support youth and young adults in connecting to paid, service and work-based learning experiences this fall while contributing to the City of Sacramento’s COVID-19 relief efforts.

Applications are due Saturday, September 19 at 12:00pm noon.

Learn more
Improv Resilience: How to Deal with Change
Thu, September 17 | 10:00am-11:30am
Risk and Crisis Planning for Organizational Resilience
Tue, September 22 | 9:30am-11:30am
How to Host a Virtual Auction
Wed, September 23 | 9:30am-11:00am
Sustaining a Stable Workforce With Retirement Plans
Tue, September 29 | 9:30am-11:30am
More upcoming workshops
Programs Manager
NAMI Sacramento

Prosperity Project Manager
Opening Doors

Housing Coordinator
Stanford Sierra Youth & Families

Outreach and Communications Coordinator
California Fire Safe Council

Physical Education Teacher
Sacramento Loaves & Fishes

Employment Specialist
Crossroads Diversified Services

Community Forester
Sacramento Tree Foundation

Deputy Director
Community Against Sexual Harm (CASH)

View More
Registered Nurse Education Programs Capitation and Special Programs Applications
Attracting and admitting underrepresented minorities and those from underserved communities, training students in underserved areas, and placing graduates in underserved areas.
COVID-19 Collective Funds for
Trans Communities

To get financial resources to trans-led organizations and transgender, gender nonconforming, and non-binary communities who are organizing in response to the
COVID-19 crisis.

Placer Community Foundation COVID-19 Response Fund
Will offer flexible resources to organizations in our area working with communities who are disproportionately impacted by coronavirus and the economic consequences of this outbreak.

View Opportunities

Why Successful Companies Promote Employees’ Wellness

Chicago Evening Post | August 13, 2020

Many successful companies have a lot in common, such as high-quality products and services, excellent leadership and management, consistently high revenues, loyal customers, and a strong brand image. These Fortune 500 companies and topnotch businesses also invest in the wellness of their employees.

Is it not enough to pay high salaries, offer career growth, and provide incentives for excellent performance on the job? All these are important but, as these companies have found out, helping employees become more physically fit led to breakthroughs in individual and team performance. This leveling up in work productivity, in turn, produced good revenues that improved the company’s bottom line.

Learn More
Learn how to incorporate self care into your workday routine at our workshop, Self Care for Nonprofit Professionals on October 6. Presented by Celeste Sekigahama, The Yoga Seed Collective

Welcome, new members!

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Thanks to our recently renewed members!

Stanford Sierra Youth Families
California State Railroad Museum Foundation
Sacramento Chinese Service Center
Alchemist Community Development Corporation

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Members have access to the following features on the website. Join today and connect with organizations and passionate leaders who rely on Impact Foundry as their source for nonprofit resources.   
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