In our recent series of blogs, attention was directed toward how Stetson manages its responsibilities on behalf of building owners, clients, and guests, in all its various development and investment practices.
Not to be excluded from the types of organizations which Stetson supports, are not-for-profit associations. Many of these charitable organizations are formed and serve a specific purpose for the benefit of a particular community, making good use of the property that was gifted to perpetuate its mission in many cases. However, because of the overriding non-commercial approach, the property where the organization operates its center of activity needs and deserves to be looked after, the same as any other commercial property, and sometimes, it isn’t.
“Many of these charitable organizations or associations don’t know the first thing about managing a building. So, they don’t, and it just falls apart,” Mr. Barry Familetto, President of Stetson Management & Development, LLC acknowledges. To further that thought, he says, “It’s so much more expensive when you don’t have it working properly.”
To be clear, a not-for-profit association earns its fees to cover its operating expenses, such as utilities and program supplies. The IRS defines different types of not-for-profits, itemizing these into different categories, such as civic leagues and homeowner’s associations; or, labor unions; or, chambers of commerce.
There are several important, and consistent, areas of expertise that Stetson provides to a not-for-profit. Though not an exhaustive list, these are as follows:
The first area where Stetson gets involved, is to work with the financial team to create a document that lays out a plan and framework to create a solid revenue stream for the organization. A necessary step in a plan encompasses a complete review of the accounting records and statement. “Without a good look at the numbers, it’s impossible to manage the building from inaccurate data,” Barry states. “The monthly statement should provide sufficient detailed information each month so that the financial team can determine which levers to focus on in order to contribute additional funds to the bottom line. The statements should tell a story of what occurred each month without the need for detailed analysis.” This first step cannot be stressed enough.
Specifically, one of the first things the finance team reviews, as it impacts the bottom line, is an evaluation of all the major equipment, such as the HVAC system and the alarm system. This is the time to determine planned capital improvements. On a smaller scale, a list of necessary and effective space improvements can include lighting, painting, carpeting, plants and landscaping, and even displays of artwork, community posters, awards and plaques, and other organization paraphernalia.
From this comprehensive look, a three-year forecast of revenue and expenses is developed, as well as creating an outline of a marketing plan with various milestones and goals.
A second area with other, important variables which impact the plan for a solid revenue stream, include developing electronic systems to lessen the need for human intervention at every step of the financial road. One such example that Stetson recommends is having a bank-based lockbox system for lessees and renters to remit payment for efficient deposit and recording.
Such a uniform collection measure minimizes time spent collecting receivables and other due funds.
A critical third area of consideration to maintaining the building’s structure and its systems, is developing a documented and scheduled maintenance plan, which acts as a guide for the on-site manager and improves the efficiency of contractors hired to maintain equipment.
Stetson has a large Rolodex of qualified contractors, vendors, and other professionals to help with most any task. This value-add has incredible appeal for not-for-profits, who might not know where to look for reputable building maintenance.
Another useful and cost-effective alternative is to solicit help available from skilled members of the organization. Often, this approach is a welcome by-product by helping members to take a personal and vested interest, getting them more involved in the stated mission of the association.
A fourth part of the plan to be collaborated on with the association, is to publish a list of member benefits for joining, to promote membership goals. This may seem like a small thing, but it serves to promote the organization’s purpose, gains publicity in whatever measure and on whichever social media platform, has a unifying effect among its members, especially when it comes time for membership drives or other civic activities, and, ultimately, fortifies the bottom line.
All of these bullet points are what Stetson carefully and systematically covers when working with a not-for-profit. It doesn’t stop there, though, as to what Stetson delves into for the not-for-profit.
A fifth area involves bringing from the outside in, Stetson’s own management competencies and development resources to be utilized on behalf of the association. First is Stetson’s presence of professional onsite asset management. This is critical for any capital funding, grants, and banking relationships. Second, Stetson brings its knowledge and expertise in dealing at the C-suite level of large and small businesses and board-led organizations. As stated at the outset, many not-for-profits are not properly informed or equipped to handle these financial aspects of successfully managing a building or driving growth. These hallmark proclivities offered by Stetson are instrumental in strengthening the organization’s bottom line.
Overall, these are just some of the universal practices that Stetson shares with all not-for-profits it works with, when developing a long-term building maintenance and organizational growth plan.