Today For Tomorrow: The power of endowment

Rande Richardson

“The best time to plant a tree was 20 years ago. The second best time is now.” — Chinese Proverb 

More than ever, nonprofit organizations providing valuable services that enrich and enhance our lives are finding the wisdom and necessity of diversifying their revenue. Just as in the private sector, survival is enhanced when there are reliable streams of operating funds. Just as there are short-term, near-term and long-term needs, there should be a resource approach built with each in mind. 

    Currently, over 150 nonprofit organizations, churches and schools serving Jefferson, Lewis and St. Lawrence counties have committed to ensuring their long-term viability by partnering with the Community Foundation. Through these partnerships, they have consciously established and built dedicated resources for the purpose of creating a financial bedrock for the sustainability of their work and mission and best stewardship of gifts entrusted to them. While organizational endowments are not a one-size-fits-all proposition, I can point to many charitable organizations, large and small, whose strength has been enhanced by a permanent fund with the accountable discipline only an endowment brings. 

    This approach continues to be of interest to donors who seek to extend their annual giving beyond their lifetimes. Individuals often prefer to make major gifts, including legacy bequests, to provide support for specific charities that will remain in place in perpetuity or to those charities for specific purposes. Recognizing the importance of annual support, the typical Community Foundation donor creates or adds to a permanent endowment for multiple charities at various percentages. Contributing to an endowment provides an enduring gift that can support programs, projects, buildings and initiatives that the donor may have helped previously provide for. 

    This is a primary reason why the Community Foundation now routinely couples grants with an incentive to help build protection for the initial capital expense. To that end, we are currently doubling gifts to build endowments for over 30 local organizations. Just as in life, it is wise to consider the ability to maintain, improve and properly care for things we have made investments in. Even for smaller charitable organizations, an endowment demonstrates to the community and donors a long-term thinking and a commitment to building capacity for the future. In many ways, earnings from endowments help complement and maximize the annual giving that is so critical to fulfillment of mission. This may draw further support from those who wish to provide for an institution that has stability, longevity, permanence and strength. 

    While some may point out that an endowment is of minimal help until it reaches a certain level, taking the first step to proactively focus on the long-term may help a nonprofit’s most loyal supporters see a clear pathway to do the same. The endowment goal should be aligned with realistic levels of giving for this institution even though organizations often underestimate the ability of one donor to be a game changer for future strength. By demonstrating to donors a responsible, stewarded mechanism to perpetuate their support, the case becomes more compelling. Community Foundation endowments help build even more confidence knowing that there is an additional layer of oversight and accountability through leadership changes over time. Being able to stipulate alternate uses for endowment funds in the event an entity ceases to exist is also incredibly powerful from a donor advocacy perspective. This aligns closely with the sanctity of donor intent knowing that what an organization does is likely the ultimate motivation for the gift over the organization itself. The delivery of that program or service may someday be offered in an alternate form. 

    Whether you are a board member, donor or employee, if you believe that the work your organization does is important enough to support today, finding ways to support that mission long-term should be equally critical. As with a savings or retirement program, there is no substitute for starting early. Endowment gifts help ensure that legacies are best remembered for generations to come, in service of the things about which you care most. Ultimately, this protects the investments you’ve made in those causes during your lifetime and has the potential to provide many times the impact of a gift made in one lump sum. When the generosity of the past is combined with the actions of today’s donors, a powerful effect is created, making both acts of kindness more powerful and far reaching. Together, this helps increase the chance that organizations that are here for good can remain here for good. 

Rande Richardson is executive director of the Northern New York Community Foundation. Contact him at rande@nnycf.org. 

Women STEM Out: Clarkson University expanding programming in science, technology, engineering and math

Photo provided by Clarkson University

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Capitalizing On Recreational Fun

CHRISTOPHER LENNEY/NNY MAGAZINES
The St. Lawrence Centre’s new Sports Complex is seamlessly attached to the mall, and provides a year-round safe and fun environment for a wide array of activities.

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Adjusting Business Plan for Seasonal Changes

Jennifer McCluskey

Many businesses, especially here in Canton and Potsdam which have large college student populations, struggle with slower summer months.  Others in more touristy areas, such as near Higley or out in Clayton or Alex Bay, have the opposite seasonal changes.  A survey from Wells Fargo reported that 45 percent of business owners say they reliably have several times of the year that are faster and slower than others.  But no matter when your business’s slow season is there are many strategies for dealing with slower seasonal sales. 

    One strategy is to close up shop during the slow months. You’ll keep having to pay rent, but utilities, employees, and other costs will be gone or minimal.  This is the strategy that is often employed in some predominantly tourist areas.  However, if your product can serve locals as well, possibly staying open when everyone else is closed might lead to some small profits, or possibly large ones if there is an ice fishing derby or some other event. The Wells Fargo survey mentioned previously also reported that 62 percent of small business owners said they reduce their capital expenditures during slow seasons, and 43 percent said they reduce hours for their employees.

    Another strategy is to set money aside during the high sales months.  This is hard for many business owners.  Forty-one percent of business owners surveyed said seasonal differences make it more difficult to manage cash flow.  Planning can be difficult when you don’t know what’s right around the bend, or if you’re just barely making it during the better parts of the year.  If this is the case for your business, you may want to use your slow season to take a hard look at your financials and see if there are ways you can trim costs during the rest of the year so that you can be better prepared for next year’s downturns, or create a financial budget if you’re just winging it.  Make sure you are realistic with your cash flow projections for the future by having a good idea of past trends and sales in both slow and peak times. Update your forecasts regularly to make sure you are on top of any changes in trends.  Your SBDC advisor can help create and analyze projected budgets. 

    You may be able to delay some expenses until different times of year.  Talk to some of your vendors, for example your insurance company, to see if you could pay at a different time of year.  Even if they say no, I’m sure they won’t mind if you pay your bill ahead of time in the spring so that you’re all set when it’s due in the summer.  Another idea to improve cash flow during slow months is to collect a deposit from customers, for example half down and half on delivery.  This works especially well when there is a substantial gap between booking your service and service delivery. 

    Also, develop a positive relationship with your bank.  There are possibilities of obtaining a seasonal line of credit to get equipment and other items you need to get ready for your high season and then pay it off when the sales start coming in.  This could work well for something like a lawn care business which will need new equipment in the spring but won’t have money to pay for it until the summer. During slower times of the year, one in five business owners (21 percent) reported increasing their use of business lines of credit or business credit cards to bridge cash flow gaps. During busier times, two-thirds (64 percent) said they pay down debt or reduce their use of credit.   

    If you would like assistance planning for seasonal changes in your business cash flow, you can get in touch with your local Small Business Development Center office.  You can contact the SUNY Canton SBDC at (315) 386-7312, SUNY Canton SBDC at Clinton Community College at (518) 324-7232, or the Watertown SBDC at JCC (315) 782-9262 for free business counseling.  The Wells Fargo survey referenced can be viewed at https://wellsfargoworks.com/small-business-optimism-reaches-highest-point-in-a-decade.

               

Is Your Business Planning (ahead) For A Successful Transition?

Michael Besaw

Across the north country region, family business owners are debating their future, and determining how the business they’ve worked diligently to create, will transition after they retire – is it letting a younger family member take the reins, or having a business valuation to prepare for an open market sell, or maybe moving to an employee-owned model; these are the complicated decisions that business owners in the north country are trying to navigate.

The ‘Need for a Transition Strategy’ estimates that more than 10,000 businesses in the Adirondack north country are owned and operated by Baby Boomers, who are planning to retire in the next few years in what has been referred to as the “silver tsunami”. Closure of these businesses means loss of services and tremendous loss of employment. Unfortunately, only 15 percent of businesses nationally have an exit strategy planned. This is where the inspiration came from for the Adirondack North Country Association’s “Center For Businesses In Transition” (CBIT) — a collection of public, private and nonprofit partners working together to provide the training, resources, and connection to existing services to support a business in creating their transition strategy, as well as matchmaking services, in an effort to match the newer generation of aspiring entrepreneurs with a business already established in the north country.

How Community Liaisons for the CBIT are helping
Transition planning isn’t often mentioned when passing a business down to the next generation, whether it’s family members or exploring less traditional transition options such as employee ownership models. In the north country region, there are community liaisons in Ticonderoga County, Franklin County, Hamilton County, Lewis County, and St. Lawrence County who are making the effort to connect with transitioning businesses to help them understand the process and how to plan for it. These individuals have been chosen for their understanding of area business and involvement in their communities are part of their county Chamber of Commerce, Economic Development Agency, or the Small Business Development Center (SBDC); ensuring the sharing of resources, information and objectives.

Workshops Planned for Transitioning Businesses and Entrepreneurs
A top priority of the CBIT is helping businesses connect the dots to the resources available for transitioning. To accomplish this goal, the CBIT is holding monthly workshops across the north country from April to August. Each workshop covers an element of transitioning planning or the process of purchasing a business, including “Business Transitions Overview: Where do you start?”, “Preparing to Sell Your Business”, “Transitioning to Worker Ownership”, “Intergenerational Family Transitions, Creative Solutions & Alternative Structures”, and “Entrepreneurs: Taking over an existing business”. Registration and the date/time for the workshops are available online at www.adirondack.org/CBITWorkshop Series, or on the St. Lawrence County Chamber’s website www.SLCchamber.org.

Using the latest technology, the workshops will also be live streamed at “Viewing Parties” to offer a level of convenience to both businesses and entrepreneurs who are unable to travel to workshops out of their county. Workshops will also be recorded so that interested business owners can view them at their convenience and as needed in the future.

The Real Deal
Transition planning can take up to five years, and it’s never too early to get started. North Country business owners looking to transition their operations to new owners or a new ownership model, as well as aspiring entrepreneurs looking to take over an existing business, can contact the Center at transitions@adirondack.org or 518-891-6200 for more information or to be connected with a community liaison in your county.

Let’s work together to keep businesses in the north country and continue to grow the beautiful region that we all love to live, work and play in!

Michael Besaw is a native of Massena, and the Assistant Director/CBIT Liaison of the St. Lawrence County Chamber.

DEC Plays Critical Role in Strong Local Economies

Randy Young

If asked, few people would associate the New York State Department of Environmental Conservation (DEC) with economic development. However, DEC plays a critical role in maintenance and improvement of local strong economies. Indeed, our mission statement says that we protect and enhance the environment in part to protect the “…overall economic and social well-being …” of the people of the state.

    A few examples of DEC directly supporting local economies include our programs to clean up blighted properties with the hopes of redevelopment and returning these properties to the tax rolls.

    DEC’s Brownfield Cleanup Program (BCP) was established to support private-sector cleanups of contaminated properties and reduce development pressure on greenfields.  Tax credits are provided to parties that perform cleanup activities under the BCP to offset the costs associated with site investigation and cleanup, site preparation, and property improvements. Specific examples of sites that have been redeveloped under the BCP include abandoned gas stations, former factory and mill complexes, and foundries.

    DEC also assists with the cleanup of abandoned gas stations and other petroleum spill sites through the New York State Spill Fund. Within DEC Region 6, which includes Jefferson, Lewis, St. Lawrence, Oneida and Herkimer counties, DEC spent approximately $1 million in 2017-2018 to clean up six sites within the city of Rome, and we’re poised to invest an additional $1 million this year on nine sites in St. Lawrence County. 

    Once these cleanups are complete, the municipalities will be able to market the properties for redevelopment and place them back on the tax rolls. 

    Millions of dollars in grants are also awarded to assist local communities with infrastructure improvement assistance. In Jefferson County, the village of Adams was recently awarded a Water Quality Improvement Project (WQIP) grant of $1 million for extensive improvements to its 38-year-old wastewater treatment facility. These improvements to the nearly 40-year-old wastewater treatment facility include the addition of disinfection equipment, which will substantially reduce the number of microorganisms discharged into Sandy Creek.

    “This award supports a much-needed project that the village of Adams has been planned for some time, and the grant will help the village to move it forward,” said David Rarick, DEC Region 6 regional water engineer.

    The WQIP program is a competitive, reimbursement grant program that funds projects that directly address documented water quality impairments. The village of Adams, plus 10 other municipalities and not-for-profits in Region 6 received WQIP awards totaling nearly $4.5 million.

    The town of Theresa was awarded $325,000 to build a new salt storage facility at the town’s highway department, while Thousand Islands Land Trust (TILT) was awarded $555,771 for a land acquisition project for source water protection. TILT plans to place perpetual conservation easements on six parcels of land totaling more than 310 acres of undeveloped habitat and three miles of vegetated shoreline and riparian habitat in the town of Clayton. This project will protect riparian vegetation, natural shoreline, and the surface water quality of the St. Lawrence River.

    The awards were announced mid-December 2018 and affect many statewide communities. Governor Cuomo announced more than $103 million in grants for a statewide total of 124 projects. While all WQIP projects will improve water quality, reduce the potential for harmful algal blooms and protect drinking water statewide, these funds provide an economic benefit, as well. Communities that can improve and expand wastewater collection and treatment capacity are better positioned to accommodate residential and commercial growth opportunities.

    “Access to clean water is critical to the health, safety, and economic wellbeing of our communities. With Governor Cuomo’s leadership, New York is investing millions of dollars to protect and restore invaluable water resources statewide and addressing growing threats like harmful algal blooms,” said DEC Commissioner Basil Seggos.

    In other promising economic news, 12 municipalities in Region 6 received Engineering Planning Grant (EPG) awards totaling about $600,000. This includes $30,000 for the village of Dexter Wastewater Treatment Plant Disinfection Study. The EPG program funds engineering studies that will ultimately lead to wastewater treatment improvement projects that can be funded through the WQIP or other funding opportunities.

Randy Young is the regional attorney and acting regional director. He has been with the DEC for 25 years.

Realtor Association Awards, Inaugurate Boards of Directors

Lance Evans

December marks the end of the elected year for both the St. Lawrence County and the Jefferson-Lewis Boards of Realtors.  Both held their annual meetings which included the election and inauguration of new officers and directors and honoring those departing the Board of Directors. It also is the time of year that various awards are given and funds are raised for various community organizations.

St. Lawrence County Board of Realtors

    The St. Lawrence County Board of Realtors marked the end of the year with a lunch at the Gran View Restaurant in Ogdensburg on Dec. 14.  The occasion included awarding the Association’s first ever Realtor of the Year and Affiliate of the Year, a very successful auction conducted by Scott Boyer with proceeds going to area Neighborhood Centers, as well as inaugurating the 2019 Board of Directors.

    The Affiliate of the Year award is given to a non-Realtor member or member company.  Affiliates include bankers, lenders, home inspectors, media companies, etc. who have an interest in the real estate industry, but are not licensed to sell or appraise real estate. The award was given to Julie Derrigo-Inschert of Fairport Mortgage. Julie, a member for almost 30 years, was praised as having a high degree of knowledge about the industry, treating real estate buyers as VIPS, and having a level of commitment, professionalism, and compassion that makes her an asset to her profession.

    St. Lawrence County’s Realtor of the Year award is given to a realtor member (broker, appraiser, associate broker, or salesperson) who has made contributions to the realtor profession and their community.  This inaugural award was given to Jennifer Stevenson, broker-owner of Blue Heron Realty in Ogdensburg.  A member since 1990, Jennifer has held many offices locally including several terms as president. She served as the Adirondack Region Vice President for the NYS Association of Realtors (NYSAR) from 2009-2010, the 2018 NYSAR Secretary-Treasurer, and will be NYSAR’s President-Elect in 2019.  Jennifer also serves on the Ogdensburg City Council and has been president of her Rotary Club, president of Ogdensburg’s Chamber of Commerce, and is active in the SPCA.

    Jennifer Stevenson, in her capacity as a NYSAR Officer, also oversaw the inauguration of the 2019 Board of Directors. The 2019 President will be Richard J. Wood.  The rest of the team will be Brittany Matott (vice president), Elizabeth Trego (treasurer), Doug Hawkins (secretary), Debbie Gilson (immediate past president), Wendy Smith (state director), and three-year directors, Gail Abplanalp, Tracy Bernard, and Joel Howie.  Also recognized during the lunch was Amanda Kingsbury who served as Treasurer in 2017 and 2018.

Jefferson-Lewis Board of Realtors

    The Jefferson-Lewis Board of Realtors held its holiday dinner and inauguration on the evening of Dec. 13 at Watertown’s Hilton Garden Inn. Music for the evening was provided by Chuck Ruggiero.  During the dinner, the departing members of the Board of Directors were recognized, the 2019 Board of Directors were installed by NYSAR Central Region VP Don Radke, an Affiliate of the Year was named, and an auction was held which benefitted several charities including the Salvation Army, Watertown Urban Mission and Hospice.

    Northern Credit Union was recognized as the 2018 Affiliate of the Year.  Some of the reasons cited were their support for programs put on by the Realtor Association and the Women’s Council of Realtors Network, as well as their employees’ professionalism, knowledge, responsiveness, and enthusiasm.

    The Jefferson-Lewis Board will be led by Alfred Netto as 2019 President.  He will be assisted by Britt Abbey (president-Elect), Katharine Dickson (vice president), Mary Adair (treasurer), Nancy Rome (recording secretary), and Desiree Roberts (corresponding secretary). Rounding out the leadership team will be three-year directors Elizabeth Miller, Cindy Moyer, and Vickie Staie as well as one-year directors Daniel Bossuot and Michael Hall and State Director Walter Christensen.  Honored for their service as they departed the Board were Lisa Lowe (corresponding secretary) and Randy Raso (three-year director).

LANCE M. EVANS is the executive officer of the Jefferson-Lewis Board of Realtors and the St. Lawrence County Board of Realtors. Contact him at levans@nnymls.com. His column appears monthly in NNY Business.

Canton Engineering Degree Debuts: Mechatronics Program

CHRISTOPHER LENNEY / NNY BUSINESS
Assistant Professor J. Miles Canino, right, discusses a sensor developed by the Mechatronics program with Mechanical Engineering major Andrew Fitch.

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Thinking, Making and Igniting Inspiration

CHRISTOPHER LENNEY / NNY MAGAZINES
Managing Director of Clarkson Ignite Erin Draper checks out notes students have written on the walls of the Studio classroom.

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Airbnb Brings Income, Commerce to the North Country

Pictured here is a screen grab from the AirBnb website, www.airbnb.com. When you visit the website, you can search for places to stay and activities across the world.

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