Hartford Business Journal

34 HARTFORDBUSINESS.COM | July 4, 2022 Editor's Take Travelers Championship shows Hartford region has 'major league' potential T he Travelers Championship this year raised $2.5 million for charity, providing an important lifeline for local nonprofits. Just as significant is the impact the PGA Tour event has on promoting the Greater Hartford region. Throughout the four-day televised tournament — aired on the Golf Channel and CBS — viewers were treated to numerous shots of Hartford's skyline and other regional assets including the Wadsworth Atheneum. On Sunday — as the tournament at TPC River Highlands in Cromwell was winding down, and fans nationally were tuning in for another exciting finish with Xander Schauffele reclaiming his lead on the 18th hole —CBS broadcasters began waxing poetic about the event and Travelers Cos.' influence on it. They praised Travelers Executive Vice President and Chief Administrative Officer Andy Bessette and Tournament Director Nathan Grube, for the quality of the event, its integration of company employees and fans, and the top-notch field it attracts on an annual basis. They went on to call it one of the best, if not the best, tournaments on the PGA Tour schedule. That's high praise that the Hartford region isn't used to getting on the national stage. It also continues the tournament's remarkable turnaround from earlier this century when the loss of two title sponsors over the course of a few years — Cannon and Buick — put it in jeopardy. Travelers took over in 2007 and has brought it to new heights Expert's Corner Not-for-profits need a profit: Consider multiple revenue streams to ensure longevity By Amber Tucker S ome not-for-profit leaders feel an obligation to apply every possible dollar to the mission. While the impulse is noble, the organization's impact in the long term will be greater if it remains on stable financial footing. Not-for-profits need a reserve fund for lean years when operating costs go up, or funding doesn't come in as expected. The designation "not-for- profit" doesn't mean you spend every dollar you take in. Often, the best way to build up a cash reserve is to open or expand revenue channels you've been neglecting. Here are some to consider: State funding and not-for-profit grants Part of this spend-every-dollar mentality probably comes from the fact that not-for-profits funded primarily by the state do have to return unused funds. That's all the more reason for them to seek additional funding elsewhere. Work with the community foundation in your region to identify grants your organization is eligible to receive. Check with United Way to see if your mission falls under their purview for funding. And if your not-for-profit does not currently receive any grant funding from the state or otherwise, it's definitely something to look into. If you receive more than $300,000 in state funding (or $750,000 in federal), your not-for-profit is subject to a state single audit. This doesn't mean you should cap your fundraising efforts below that amount — but it's something to keep in mind. Individual contributions Regardless of your other funding sources, every not-for-profit can benefit from individual contributions that come from hosting events or online fundraisers. It's also important to work with members of the community you're serving to ensure they keep your organization in mind when it's time for planned giving or estate planning. In some cases, the amount a not- for-profit is able to raise through small donations or an annual gala will be a very small portion of the overall budget. But it can help build that all-important financial cushion. Plus, you're leaving money on the table if you don't give individuals who believe in your mission the chance to support you financially. Consider hiring a business development role to promote your organization and drive fundraising and long-term giving even if at first the position will only pay for itself and a little more. These things take time to build up, and you have to start somewhere. For any contributions you receive, clarify whether the gift is conditional or restricted. This has an impact on the way it will be recorded within the organization's financial statements. Federal programs Make sure you're taking advantage of the Employee Retention Tax Credit if your organization is eligible. There are two ways to be eligible: if the organization was part of a mandated shut down, or if it experienced a decline in revenues. The credit is reported through amendments of payroll 941 filings and applies to 2020 and the first three quarters of 2021. It can amount to a substantial amount of cash returned. The American Rescue Plan Act (ARPA) provided funds to municipalities that they can use to engage not-for- profits for purposes related to the COVID-19 pandemic, such as testing, contact tracing and vaccination, as well as mental health services, crisis intervention, substance use, and supporting public health workers. Even some capital projects are eligible for these funds. Business revenue As you're fundraising, it can help to think like a for-profit business. Many not-for-profits, especially museums and performing arts venues, generate a significant portion of their revenue through ticket sales, membership and merchandising. There is an opportunity to be innovative. If you're running a job training program, for example, could you create a business that both fulfills your mission and generates additional revenue? Is there room to advertise your training programs to corporations that also need to train their staff? Be aware that any revenue that falls outside the defined mission of your organization could be subject to corporate income tax. For example, educational items in a museum gift shop are tax-exempt, but toys and trinkets may not be tax-exempt. That doesn't mean you shouldn't pursue all forms of revenue, it's just something to keep in mind as you evaluate possible new income streams and set prices. Amber Tucker is a partner at Connecticut accounting and advisory firm Fiondella, Milone & LaSaracina LLP (FML CPAs) with offices in Glastonbury, Enfield, New Haven, Stafford Springs and Stamford. Amber Tucker Greg Bordonaro and recognition. The Travelers Championship shows Greater Hartford can be a "major league" region. It's no secret that Connecticut residents can often have a negative outlook on the state. Taxes are high, our population has remained stagnant and we struggle to attract new, high- paying jobs. And in many ways — particularly after the loss of the Hartford Whalers NHL franchise in 1997 — we've come to accept Hartford as a "minor league city." And not just in a sports sense. That thinking, at times, has become steeped in the overall culture — a sense that Hartford can't become greater than what it is today. The Travelers Championship shows that's certainly not the case. And in most instances it's the business community that has the power and resources to lift the region up, just as Travelers Cos. has done with the golf tournament. As we continue to emerge from the pandemic, the city of Hartford has a long road to recovery. It's been hit hard by the changing ways people work — many Hartford employers are downsizing their office footprints as they establish a more permanent hybrid work environment, leaving fewer people in the city on a daily basis. For Hartford to regain its pre- pandemic momentum, the business community needs to rally around the city and lead the way. Travelers has shown us a roadmap for how to think bigger. Now, the city of Hartford needs its own turnaround story. PHOTO | JEFF YARDIS

• Cover