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HomeMy WebLinkAbout11. Approve 3-year pilot program to pay administration fees re annual employee workplace giving program Page 1 of 4 Item 11. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: SEPTEMBER 5, 2019 SUBJECT: APPROVE THREE-YEAR PILOT PROGRAM IN WHICH CENTRAL SAN PAYS THE ADMINISTRATION FEES ASSOCIATED WITH THE ANNUAL EMPLOYEE WORKPLACE GIVING PROGRAM SUBMITTED BY: INITIATING DEPARTMENT: EMILY BARNETT, COMMUNICATIONS AND ADMINISTRATION-COMM SVCS AND INTERGOVERNMENTAL RELATIONS INTERGOV REL MANAGER TEJ I O'MALLEY, HUMAN RESOURCES MANAGER REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ANN SASAKI, DEPUTY GENERAL MANAGER Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE Central San is always evaluating best practices to optimize the programs and services it offers to customers and employees. There is a potential opportunity to help increase charitable giving dollars donated by employees, which in recent years has remained relatively stagnant. This change could offer a win-win-win opportunity for customers, community non-profit organizations, and employees while helping further elevate Central San as a prominent community partner. BACKGROUND Central San employees generously donate money out of their paychecks to support non-profits, many of which support the communities we serve. The District has always been supportive of this effort, as it has September 5, 2019 Regular Board Meeting Agenda Packet- Page 141 of 201 Page 2 of 4 recognized the benefit of helping employees live Central San's values of fostering excellent community relationships, valuing customers, and living the principles of being kind and friendly. Employees have vocalized that the number one deterrent to donating, or donating additional dollars, is that a percentage of their donation is used for administration fees for the program. The administration fees paid to the umbrella organization, Community Health Charities, average 12.5% of the donated amounts. On average, for every dollar that an employee contributes, only 87 cents goes to the charity of their choice. The amount paid in administrative fees to the vendor is in line with the costs of other vendors, roughly 3- 15% (12.5% average) depending on the receiving charity. Linkages to Central San When this item was first discussed with the Committee, staff was asked to provide additional information on how this proposal provides a linkage to Central San's goals. It is within Central San's mission, vision, and goals to provide greater public benefit through employee involvement through volunteerism and giving to charitable organizations that benefit the communities and customers we serve. Many of the non-profits that receive charitable donations from employees provide direct benefits to Central San customers. Covering administration fees also has strong linkages to Central San's FY 2018-20 Strategic Plan, Goal Four— Recruit, Develop, and Retain a Highly Trained and Safe Workforce as Central San would utilize this as a recruitment and retention tool to maintain employees that value a strong purpose from their work life.Additionally, there is a clear linkage with Goal One — Provide Exceptional Customer Service and Maintain an Excellent Reputation in the Community.Annually, Central San invites selected local non- profits to make presentations to employees to share their work locally and encourage giving to their worthy causes. The presentations are followed up by an open house venue where these non-profits engage in discussions with employees. Local non-profits are not only customers but key influencers in the community.As the District has seen with the success of the Central San Academy, high engagement with customers and the ability to share Central San's story in a myriad of ways, is key to a long-term understanding about Central San's work, and builds trust with the communities it serves. Supporting local non-profits is also supported by Central San's values. The opportunity to increase funding to local non-profits only adds to showcasing these values to the communities we serve. The most applicable Central San value linkages include: • People —Value customers and employees • Community— Foster excellent community relationships • Community— Be open, transparent, and accessible • Community— Build partnerships • Principles — Be fair, kind, and friendly OtherAgencies Considering Covering Fees At the June 4, 2019 Administration Committee meeting, the committee requested information on what other agencies may be doing in this respect. The Port of Oakland recently transitioned to having the organization pay for administration fees. The Port's Social Responsibility Director found, similar to feedback from Central San employees, that administration fees were the main deterrent to employee giving. When implemented, the program saw an increase in overall dollars raised and an increase in employee participation. They will be continuing the program based on positive results. At the 2019 Best Practices Seminar for Giving Campaigns, a training session for local agencies, several agencies indicated that they were working through the process to assess and cover administration fees. The following agencies/municipalities stated that they were considering or implementing this effort: East Bay Municipal Utilities District, City of Richmond, and the City and County of San Francisco. Further September 5, 2019 Regular Board Meeting Agenda Packet- Page 142 of 201 Page 3 of 4 discussion from the charitable administrator Community Health Charities, used by all these agencies, including Central San, has stated that covering administration fees is the new trend by organizations. They anticipate more agencies across the state and country to make the transition in the upcoming year. ALTERNATIVES/CONSIDERATIONS Central San could elect to maintain the program in its current form, however, it is anticipated that doing so would continue the trend of stagnant donations for the program. FINANCIAL IMPACTS One way of increasing employee donations would be for the District to cover the cost of the administration fees. Should Central San elect to cover the administrative fees associated with the program to increase charitable giving, the following table projects the associated costs. Based on the 2018 employee workplace giving program, the total amount of donations made by employees was $23,194. For example, if Central San had covered the 2018 Giving Campaign administrative fees, the total cost to the District would have been approximately$3,005. 2017 Actual 2018 Actual 2019 Projected *assuming 10%increase n giving from 0 : Total Giving A $22,945 $23,194 $25,513 Average 12% 13% 13% Administrative Projected • • 1 • Central San COMMITTEE RECOMMENDATION The Administration Committee reviewed the proposal at the June 4, 2019 meeting and requested that staff gather additional information for discussion on how this proposal provides a linkage to Central San's goals and what other agencies are doing in this respect. The Committee reviewed the additional information at the August 20, 2019 meeting and recommended approval. RECOMMENDED BOARD ACTION Approve three-year pilot program in which Central San pays the administration fees associated with the annual employee workplace giving program. Strategic Plan re-In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Build external customer relationships and awareness, Strategy 3- Maintain a strong reputation in the community GOAL FOUR: Develop and retain a highly trained and innovative workforce September 5, 2019 Regular Board Meeting Agenda Packet- Page 143 of 201 Page 4 of 4 Strategy 1 - Ensure adequate staffing and training to meet current and future operational levels September 5, 2019 Regular Board Meeting Agenda Packet- Page 144 of 201