Meeting Summaries
PSAE notes
Friday, October 3, 2008
FIRST SESSION
Jon Delano, Money and Politics Editor, KDKA Television and Professor at Heinz School, CMU
Delano discussed the vice presidential debate from the previous evening, noting that in first reactions polls, 46% of uncommitted voters felt Joe Biden was more credible, 21% thought Sarah Palin was more credible, and it was a draw for 33%. CNN indicated that 51% of those polled believed that Biden had “won”.
According to Delano, the number one issue in Pennsylvania is the economy. Issues coming in far below are energy, healthcare, jobs, and taxes.
Pennsylvania will be a key swing state for Democrats, and notable demographics across the state are Philadelphia and western Pennsylvania. Southeastern PA matters to Democrats—a lot of voters have the power to give a huge margin to the Democratic candidate so they can sustain losses elsewhere. The suburbs of Philadelphia are “notoriously schizophrenic” says Delano. They are traditionally Republican, more moderate than their metropolitan neighbors. Western PA is 2:1 Democratic. “As Beaver Valley goes, so goes Pennsylvania” says Delano. Southwestern PA is very much the true battleground because it determines Pennsylvania, which can determine the presidential outcome. Delano stated that he believed that Pennsylvania is a “must win” state for Obama, while not as critical of a state for Republicans.
Delano also discussed the Senate race in 2010 and Senator Arlen Specter’s assumptive run for re-election.
If you would like to receive John’s emails and his more candid beliefs about the way things are going, please email jdelano@kdka.com
SECOND SESSION
Bob Allen, VP of Western PA Sales, Dale Carnegie Training
Allen’s presentation focused on the challenges we’re facing in leadership and how change affects us as leaders and member companies. The paradox is that change is inevitable, but yet people are resistant to it.
Really, Allen suggests, they are resistant to feeling that the change is forced upon them and they had no part in it. He offers several keys to facilitating change within your organization. First and foremost, he advises using inclusion to gain buy-in by including employees or members in the decision making so that they know they had a say in the proposed changes. Have them be part of the solution. The action here is “management engagement” (the degree to which we’re engaged is the degree to which our members will be engaged). Disengagement is a HUGE issue in our member companies (ie those who are paying dues but not engaged). 40% of our members describe themselves this way, according to a Carnegie study.
Second, utilize technology to make it easier to manage employees remotely and to do business globally. To be competitive, Allen said, you must do things faster, better, and cheaper. Dale Carnegie once said, “if we’re not doing something every day that makes us uncomfortable, then we’re not growing.”
Third, he highlighted the importance of managing processes and leading people. An integral part of this is succession planning. Allen described how to conduct an “innerview”—sitting with young, promising employees, and really getting to know their goals, ambitions, and a little bit about them personally, so that they know they are valued and will develop loyalty for the company. Try to get them to see how they are part of the bigger picture. Innerviewing = productivity and retention.
Finally, Allen provided a helpful acronym for remembering how to properly accept a professional award:
T hank you
C redit (give credit where it’s due)
U se it (describe how you will use gift)
T hank you
LUNCH SESSION
Bob Allen
Allen provided tips to facilitate easy and smooth communication during networking situations. He suggested when introducing yourself to someone new, remember the three “P”s: Pause, Part (provide your first name), and Punch (provide your last name with an extra “oomph”). Second, he advised shaking the other person’s hand as if you’re college buddies to promote comfort. Third, use visual imagery to help you remember a convenient and smooth order to engage people in conversation. He asked everyone to utilize the following series of items and associate them with specific conversation topics: a Nameplate (ask them their name), a House (ask them where they live), a Baby on the roof of that house (ask them about their family), a Glove in the hand of the baby (ask them about what they do), a Plane is held in the glove (ask them about travel they’ve done), Tennis Racquets are the propellers of the plane (ask them about sports interests they have), and a Light Bulb is on the front of the plane (ask them about ideas they have for the company/ association or particular project under discussion.
Association Legal Update
During the presentation, the attorneys from Reed Smith covered the following legal topics:
- Pension Protection Act of 2006
- Employment Law Update
- Form 990 Update
- Sarbanes-Oxley
- Senate Investigations/Senator Grassley
Pension Protection Act of 2006
Under this topic, one of the primary items discussed were payments to controlling exempt organizations. There are several requirements for these types of payments, including certain payments being subject to UBIT and that these payments must be reported to the IRS as part of the Form 990.
Form 990 Update
Under this topic, it was noted that even organizations not required to file a form 990, are now required to provide certain information to the IRS or face possible revocation of tax exempt status. In addition, there are changes to requirements related to supporting organizations of a 501(c)3. These organizations are often affiliates of trade associations and it is important to know the type of supporting organization. The presentation included several examples of different types of supporting organizations.
Employment Law Update
During the employment law update, it was noted that the new concern for associations is that is much easier for employees to sue for retaliation rather than discrimination. The presenter reviewed the case BNSF v. White.
In addition, the presenter reviewed “whistleblowers” and the increase in whistle blowing since Sarbanes Oxley was passed.
Other topics reviewed included: wage and hour claims; systemic discrimination; the Family and Medical Leave Act; and card check campaign by unions.
The presenter also reviewed the impact on employers of “electronic discovery.”
More on Form 990
Several new changes to the Form 990 were reviewed including foreign grants, officers and directors, and other sections. The Form 990 is undergoing a comprehensive redesign by the IRS and draft will be available for comment in 2007.
Sarbanes-Oxley
At this time, most provisions of the Sarbanes-Oxley Act do not apply to nonprofits. However, nonprofits may voluntarily adopt some of the SOX provisions as “best practices.” There are some corporate governance principles that nonprofits may want to consider including rotating audit partners and audit firms periodically. In addition, “perks” are continually being questioned in nonprofit organizations.
Senate Investigations/Senator Grassley
Senator Grassley has continued to hold hearings on charities and charitable entities. Some recurring themes are poor governance of some of these organizations and their failure to abide by best practices. The presenters gave several detailed examples of Senator Grassley’s investigations and hearings.
