Annual ReportJULY 1, 2016-JUNE 30, 2017

2016 was a year of transition. After thoughtful work by our Board of Directors, our Search Committee officially launched the search for our new president with a firm in late August 2016. By November, they’d narrowed the selection to two candidates. To our disappointment, neither yielded the right individual the Board and staff was hoping for, so the Board took the courageous step to hit the reset button.

Trisha Lester, with the Center for 24 years – most recently as Senior Vice President – agreed to continue serving as Acting President for several more months. The Center also decided to continue the search on its own, and that process ultimately identified an excellent candidate in the person of Jeanne Tedrow. In May 2017, we announced the good news of her appoint-ment as President/CEO effective August 1, in order to give her time to transition out of her role at Passage Home.

Jeanne co-founded Passage Home – a Founding Member of the Center – in 1991 with com-munity and congregational partners. She provided it with 25 years of continuous leadership and direction, facilitating its growth from a small nonprofit, staffed primarily by volunteers and focused on transitional housing for homeless families to one that now serves thousands of individuals, filling a critical need for affordable housing, support services, and community development in Raleigh. Passage Home currently operates with a $3.8 million operating budget, $10.5 million in real estate assets, 38 staff, and hundreds of volunteers.

In the midst of these transitions, the Center’s work of supporting nonprofits continued with-out a pause. Many times a day, we helped nonprofit staff and board leaders on the front lines of their communities do their work more effectively and efficiently, saving them time and money. The Center helped nonprofits be results oriented, collaborative, adaptive, sustain-able, ethical, and in legal compliance. We also worked to educate the public on the value and impact of nonprofits.

We are grateful to the 24 foundations, 85 businesses, and 56 individuals who believed in the importance of our mission and together contributed a total of $831,678 to sustain our work to strengthen North Carolina’s nonprofits. Thank you for investing in our communities and in the health of our state’s nonprofit sector.

From Our Leaders

Barbara Jessie-BlackChair, Board of Directors, North Carolina Center for Nonprofits and Executive Director, PTA Thrift Shop, Carrboro

Trisha LesterActing PresidentNorth Carolina Center for Nonprofits

96%Members who would recommend us to other nonprofits

82Organizations we collaborated with

to provide services, training, and pro

bono assistance to our Members

1,433Member nonprofits from all 100 counties in North Carolina

74%Members who have strengthened their organizations with our help

4,129Nonprofit staff and board members who participated in our workshops, webinars, and trainings, including our 2016 Statewide Conference in Research Triangle Park

337,447Unique visitors to

NC Nonprofit Careers

3,372Substantive online resources shared from Information Central

Our money-saving programs have

saved Members

$1,017,312

414Pro bono cases for Member board and staff leaders who received confidential help from volunteer legal, human resources, accounting, marketing, coaching, and executive succession professionals

The Year In Numbers

John C. Campbell Folk School, Brasstown

Partnering NationallyIn collaboration with Nonprofit VOTE, we provided NC nonprofits with tools to incor-porate effective nonpartisan voter registra-tion, voter education, and get-out-the-vote efforts into their work.

We took the lead in NC on preserving non-profit nonpartisanship, a value that is core to the nonprofit sector’s effectiveness. After President Trump threatened to eliminate the Johnson Amendment, the federal law that protects 501(c)(3) organizations from partisan politics, the Center rallied its base of Members and got more than 400 nonprofits to sign on to the national Nonprofit Commu-nity Letter. See www.givevoice.org to keep it from being repealed.

Victories in the 2016 General AssemblyWe worked with legislators to improve two bills with major implications for non-profits – one to require all NC nonprofit corporations to file annual reports with the Secretary of State and the other to require financial audits or reviews for nonprofits receiving state or local funding.

After three years of advocacy, we were suc-cessful in getting the NC House and Senate to agree to a study of nonprofit-govern-ment contracting issues that could lead to solutions for late payments, underpayment for indirect costs, and unduly burdensome reporting requirements for nonprofits with state grants and contracts.

Advocating for All NonprofitsWe traveled the state to present our Non-profit Town Hall series, focusing on ways the post-election political climate affected nonprofits and the public policy threats and opportunities. Town Halls were held in Asheville, Charlotte, Fayetteville, Greens-boro, Jacksonville, Research Triangle Park, and Winston-Salem. More than 500 staff, board, and volunteers participated.

Nonprofits across the state were confront-ed with a barrage of regulations from the Department of Labor about the overtime rules that were to take effect Dec. 1, 2016 and that would have had major financial and human resource implications. The Center provided written and in-person guidance to our Members about these rules and helped them understand the late-breaking changes when a federal judge issued an injunction stopping their implementation days before they were scheduled to take effect.

We sent a nonprofit questionnaire to all candidates for statewide office, the NC Senate, and NC House of Representatives and received a nearly 33% response rate from candidates in contested elections. By sharing their positions on tax exemption and other key issues with nonprofits across the state, staff and board leaders learned the ways these candidates value nonprofits.

Advocating

Youth Empowered Solutions, Raleigh

MISSION To enrich North Carolina’s communities and economy through a strong nonprofit sector and nonprofit voice

“The Center makes us aware of important issues and how they impact us so we’re compelled to add our voice.”

Kyna GrubbRowan Helping Ministries, Salisbury

African American Dance Ensemble, Durham

Countdown to the InevitableHIGHLIGHTS

Nearly 60% of CEOs plan to leave their positions in four years.

67% of nonprofits do not have an emergency back-up plan in the event of a short-term absence of the CEO.

71% of nonprofits do not have a writ-ten, board-approved succession plan for the CEO position.

CALL TO ACTION

• Boards of directors must embrace their governance responsibilites around succession planning and execute them in partnership with the chief staff executive as a component of sound risk management and effective planning.

• Operating nonprofits need institution-al and individual funders to stick with them during periods of executive tran-sition if they’re to continue delivering on their missions.

• NC nonprofits must reach out to a more diverse pool of individuals – specifically around race, ethnicity, and age – to give them opportunities for executive leadership positions in order to grow and strengthen the nonprofit sector and make it sustainable in the long term.

EducatingWe published and disseminated Countdown to the Inevitable: North Carolina Nonprofit CEOs in Transition, a first-ever report about nonprofit CEOs’ plans for their executive transitions, career paths, jobs, and their boards’ role in planning for succession. Overall, our findings pointed to a sector that is woefully under-prepared for the wave of executive transitions that will occur in the next several years.

We brought together 627 board and staff leaders for the 2016 Conference for NC’s Nonprofits, Nonprofits at a Crossroads, a professional development opportunity chock full of national speakers, NC talent, peer learning, and networking opportu-nities. Ninety-one percent of participants rated it “excellent” or “good.” At it, we debuted the inaugural statewide FailFest, where nonprofits came together to learn from each other’s personal and organiza-tional failures.

Our 2017 Public Policy Forum in Raleigh put key public policy issues front and center for nonprofit staff and board practi-tioners. NC Nonprofits Day gave them the opportunity to lobby legislators on their specific subsector issues, as well as issues of sectorwide importance like the charita-ble deduction and sales tax exemption.

“The conference’s Deep-Dive workshop on sustainable impact was excellent. I walked away with a solid plan that I could use. It was just the right balance of learning and applying.”

Lavonn McLean, APPARO, Charlotte

Make-A-Wish Foundation of Eastern North Carolina, Morrisville

FY17 Revenue*

FY17 Expenses*

22%

25%11%

14%

4%

22%

2%Member & Educational Services

Conference & Training

Administrative

Resource Development

Sector Research

Outreach, PublicEducation & Advocacy

Money-Saving Programs

Nonprofit Membership Dues

Corporations& Businesses

Foundations

Individuals

38%

18%

21%3%

*As a percentage of total operating budget

20%Other Earned Income

Special Olympics North Carolina, Morrisville

IBM CorporationRodgers Builders, Inc.Smith Anderson, LLPStancil & Company, CPAsTW Garner Food Co.Trade Street Capital Partners, LLCUnited Guaranty CorporationWilliams Overman Pierce & Company, LLPWyrick Robbins Yates & Ponton LLP

Business PartnersBernard Robinson & Company, LLPCorliss & Solomon, PLLCCrouch & AssociatesGreen Skies TechnologyHamilton Point Investment AdvisorsInmar, Inc.Lending Hand Logistics, LLCManning, Fulton & Skinner, PAMichelle Tracz, CPA, CFE, PLLCMig Murphy Sistrom CPA Partners for Impact, LLCSkillful Means Training and Consulting Sockwell PartnersWilliams Mullen Womble Carlyle Sandridge & Rice LLP

Business FriendsAllen & Pinnix P.A.Armstrong McGuire & AssociatesBatchelor & Associates LLCbeGrantwise Brooks Pierce Law FirmDevelopment by Design, LLCEverett Gaskins Hancock LLP Greater Gifts ConsultingJ Decker Consulting, LLCL&E Meridianmoss+ross LLCNichols, Choi & Lee, PLLCNPH Consulting OnFire Nonprofit Consulting OpenSource Leadership Strategies Palmetto Grants ConsultingPartners for Impact, LLCPMA Consulting, LLCRives & Associates, LLPRLS Focused SolutionsSchell Bray PLLCSentinel Risk AdvisorsSummers Consulting Services Third Space Studio, Inc.York Properties, Inc.

In-KindDesignHammerElinvarLenovoRTI International

Foundation SustainersFoundation LeadersZ. Smith Reynolds FoundationNorth Carolina GlaxoSmithKline Foundation

We thank these Sustainers and Donors who understand the importance of an effective nonprofit sector in NC, and we recognize their contributions made be-tween July 1, 2016 and June 30, 2017.

Corporate & Business SustainersCorporate LeadersBB&T Charitable Foundation Duke Energy/Duke Energy Foundation Google GSKWells Fargo

Corporate InvestorsBank of America Charitable Foundation Mutual of AmericaNC Electric Membership CorporationParagon Bank Robinson Bradshaw SunTrust Bank/SunTrust Foundation

Business StewardsAPCO Worldwide Capital Development ServicesCapitol BroadcastingCBC/WRAL Community Fund of Triangle

Community FoundationClariant Corporation First Nonprofit GroupFlow Automotive CompaniesLangdon & Company, LLP

Business Citizens501(c)(fit!)Batchelor, Tillery & Roberts, LLP Blackman & Sloop, CPAs, PACherry Bekaert LLP Coastal Federal Credit Union DeloitteDocuSource of North CarolinaErnst & Young, LLPFirst Citizens BankFirespringGreerWalker LLPHanesbrandsHewett Consulting LLC

Sustainers & Donors

Community InvestorsMartin EakesBrandon NealHolly Welch Stubbing and Matt StubbingScott WiermanNancy YoungEmily and Sam Zimmerman

Community StewardsLoleta Wood FosterMr. & Mrs. F. Borden Hanes, Jr. Melissa Le RoySusan Shore Schwartz Richard “Stick” and Teresa WilliamsKelly Williamson

Community PartnersCurt BaneyAllan BurrowsBrian Buzby Darryl ChildersLance EdwardsPam Seamans FeldmanMarilyn Foote-Hudson Dan GerlachJohn and Mary Holmes Merrilee Jacobson Jim JohnsonMartine Kendall Robert O. Klepfer Laura LesterRob MaddreyRita MenziesKay and Dan MooreTog Newman Mary Norris Preyer OglesbyNancy Richmond RosePat and Phil SmithSherwood SmithDavid Snider and Jeff Hall Greg Walker Wilson

Community FriendsTracy CareyetteJohn DornanElizabeth Locke Liz McFarlane Jenna Meints Sandy PickettJane PiersonDoris StithJay and Leslie Walden

Sisters of Mercy of North Carolina Foundation, Inc.

Foundation InvestorsBlue Cross and Blue Shield of North Carolina

FoundationThe Duke EndowmentFoundation For The CarolinasHillsdale Fund

Foundation StewardsThe Joseph M. Bryan Foundation of Greater

GreensboroThe Warner-Craven FoundationThe Winston-Salem Foundation

Foundation PartnersThe Mary Duke Biddle Foundation The Cemala FoundationCommunity Foundation of Greater

GreensboroSJ Edwards FoundationNorth Carolina Community Foundation Triangle Community Foundation

Foundation FriendsThe Belk FoundationBlumenthal FoundationThe Community Foundation of Western

North CarolinaCumberland Community Foundation Hayden-Harman FoundationJohn S. and James L. Knight FoundationPolk County Community FoundationTannenbaum-Sternberger FoundationWeaver Foundation

Individual SustainersCommunity LeadersWalter Davenport Jennie Eblen and Rick PerkinsKatie GalbraithBarbara Jessie-BlackThomas Kenan, IIIJane Kendall and Ran Coble Trisha LesterPeter and Prudence MeehanMichael Murchison Angela PooleJane Preyer

House of Mercy, Belmont

Children’s Home Society of North Carolina, Greensboro

Barbara Jessie-Black, Chair Executive Director, PTA Thrift Shop, Inc., Carrboro

Katie Galbraith, Vice Chair President, Duke Regional Hospital, Durham

Michael Murchison, Treasurer Partner, Murchison, Taylor & Gibson PLLC, Wilmington

Trisha Lester, Secretary Acting President, North Carolina Center for Nonprofits

Darryl Childers, Community Relations Manager, Cumberland Community Foundation, Fayetteville

Jennie Eblen, Vice President Eblen Short Stop Stores Inc., Asheville

Lance Edwards, Vice President of Community Investment, United Way of Asheville and Buncombe County, Asheville

2016-17 Board of DirectorsBrandon Neal, Senior Counsel, Law Department, Wells Fargo Bank, N.A., Charlotte

Angela Poole, Senior Vice President of Finance & Human Resources, North Carolina Community Development Initiative, Inc., Raleigh

Susan Shore Schwartz, Executive Director The Cemala Foundation, Greensboro

Holly Welch Stubbing, Executive Vice President, Foundation For The Carolinas, Charlotte

Scott Wierman, President, The Winston-Salem Foundation, Winston-Salem

Nancy Young, Director of Public & Media Relations (retired), Winston-Salem State University, Winston-Salem

“This is the place where your singular voice is supported by a multitude of other voices across the state, and your opinion means something. You can affect change when you join and link yourself arm-in-arm with others through this membership.”

Kim JamesGood Samaritan Clinic, Morganton

Rutherford Housing Partnership, Rutherfordton

Carolina Tiger Rescue, Pittsboro

“The Center has opened doors for us to engage with more es-tablished thought leaders and organizations by highlighting our emerging leaders at the conference and other shared event opportunities.”

Katie Todd, Young Nonprofit Professionals Network-Triangle, Durham