Archive for February, 2008

Eligibility for College Cost Reduction and Access Act of 2007




The College Cost Reduction and Access Act of 2007 established a new public service loan forgiveness program. This program discharges any remaining debt after 10 years of full-time employment in public service. The borrower must have made 120 payments as part of the Direct Loan program in order to obtain this benefit. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments. (Borrowers may consolidate into Direct Lending in order to qualify for this loan forgiveness program starting July 1, 2008.)

This contrasts with the loan forgiveness of the remaining balance after 25 years of repayment under the income-contingent and income-based repayment plans for borrowers who are not employed full time in public service jobs.

Eligibility

The public service loan forgiveness program has several restrictions:

* Term: The forgiveness occurs after 120 monthly payments made on or after October 1, 2007 on an eligible Federal Direct Loan. Periods of deferment and forbearance are not counted toward the 120 payments. Payments made before October 1, 2007 do not count. Likewise, only payments on a Federal Direct Loan are counted.

* What is forgiven?The remaining interest and principal are forgiven.

* Employment: The borrower must be employed full-time in a public service job for each of the 120 monthly payments. Public service jobs include, among other positions, government, military service, public safety and law enforcement (police and fire), public health, public education, public early childhood education, public child care, social work in a public child or family service agency, public services for individuals with disabilities or the elderly, public interest legal services (including prosecutors, public defenders and legal advocacy in low-income communities), public librarians, school librarians and other school-based services, and employees of tax exempt 501(c)(3) organizations. Full-time faculty at tribal colleges and universities, as well as faculty teaching in high-need areas, also qualify.

* Eligible Loans: Eligible loans include Federal Direct Stafford Loans (Subsidized and Unsubsidized), Federal Direct PLUS Loans, and Federal Direct Consolidation Loans. Borrowers in the Direct Loan program do not need to consolidate in order to qualify for loan forgiveness. Borrowers in the FFEL program will need to consolidate into Direct Loans.

(Beginning on July 1, 2008, FFEL borrowers may obtain a Federal Direct Consolidation Loan in order to qualify for public service loan forgiveness even if they had previously consolidated in the FFEL program.)

Although Perkins Loans are not eligible for public service loan forgiveness, if they are included in a Federal Direct Consolidation Loan the entire consolidation loan, including the Perkins Loans, is eligible for public service loan forgiveness. One may use income-based repayment and income-contingent repayment on such a consolidation loan.

Perkins loan borrowers will need to consider the tradeoffs of including the Perkins loans in a federal direct consolidation loan. When Perkins loans are consolidated, they lose several favorable benefits, such as subsidized interest, a 9 month grace period, and a generous loan forgiveness program.

Grad PLUS loans are eligible for forgiveness. However, the language in section 455(d)(1)(D) of the Higher Education Act of 1965 precludes the use of income-contingent repayment for PLUS loans. This is fixed by section 493C(b)(3), which amends the exclusion to apply to just Parent PLUS loans. But that amendment is effective July 1, 2009. So until July 1, 2009, income-contingent repayment cannot be used for Grad PLUS loans. On or after July 1, 2009, one can use income-contingent repayment for Grad PLUS loans. (Income-based repayment also becomes available for all direct loans except Parent PLUS and Perkins Loans on July 1, 2009.) However, as with Parent PLUS loans, Grad PLUS loans can become eligible for income-contingent repayment provided that they are included in a Federal Direct Consolidation Loan and the borrower did not enter repayment before July 1, 2006. Consolidation loans that include a Grad PLUS loan are also eligible for income-based repayment starting July 1, 2009.

Note that borrowers who took advantage of the early repayment status loophole to consolidate their loans during the in-school period technically entered repayment before July 1, 2006.

* Eligible Repayment Plans: Borrowers may use income-based repayment, income contingent repayment, standard repayment or a combination of these repayment plans. Payments made under other repayment plays (e.g., extended repayment and graduated repayment) do not count. To maximize the amount of forgiveness, borrowers should use income-based repayment. When income-based repayment is not available (e.g., prior to July 1, 2009), they should use income-contingent repayment.

If a borrower were to use only standard repayment for repaying their loans there would be no balance remaining after 10 years and so no debt to cancel. Standard repayment is only provided as an option to address situations when a borrower is unable to continue under income-based repayment because they no longer have a partial financial hardship and the payments under income-contingent repayment exceed standard repayment. In such a situation the borrower would use standard repayment for the remaining payments and obtain some loan forgiveness at the end of the ten years of payments.

Bottom Line Advice

Although the details may seem complicated, the advice for taking advantage of this program is more straightforward.

* Borrowers who will be employed in public service jobs and who have loans under the FFEL program should obtain a Federal Direct Consolidation Loan as soon as possible. (Before July 1, 2008, they will need to consolidate into direct loans by stating that they were unable to obtain acceptable income-sensitive repayment terms. On or after July 1, 2008, they will be able to consolidate into direct loans to obtain public service loan forgiveness.)

* Parent PLUS borrowers who entered repayment on or after July 1, 2006 will need to consolidate their PLUS loans even if they are already in the Direct Loan program.

* Borrowers should start off with income-contingent repayment, if they can. They should switch to income-based repayment as soon as it becomes available on July 1, 2009, if they can. (Consolidation loans that include Parent PLUS loans are not eligible for income-based repayment.)

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Nonprofit Pay Edges Up




Salaries and compensation at U.S. nonprofits are beginning to mirror the for-profit sector, with higher salaries and decreasing benefits, a new study says.

An annual study conducted by consulting firm Total Compensation Solutions shows a nearly 4 percent average salary increase between 2006 and 2007.

Examining compensation packages for 75 positions at nearly 450 U.S. nonprofits, the 2007/2008 Not-for-Profit Compensation Survey says salary adjustments are approaching for-profit standards.

The trend toward merit-pay systems, which link compensation to individual performance and best practices, may be a response to intensifying governmental regulation of tax-exempt organizations, the study says.

“Nonprofits need to pay higher salaries in order to effectively compete for executive and staff positions in a highly competitive market place,” Paul Gavejian, managing director of Total Compensation, says in a statement. “They also have to link pay to performance or they risk losing good people to the for-profit sector.”

The study also takes a detailed look at executive-level pay across a number of mission-critical and support departments.

The study analyzed a wide variety of nonprofits, with annual operating budgets ranging from less than $5 million to more than $50 million.

Average executive salaries across various executive positions ranged from $99,000 for top grant administrators to $211,000 for legal executives.

At the same time, many groups have recently instituted formal bonus plans for senior executives, usually linking them to strategic performance objectives such as operating budget variances and the effectiveness of development efforts, the survey says.

Such bonus systems often work to retain leadership tempted by big for-profit pay packages, says Gavejian.

The nonprofit sector is known for offering generous benefits to compensate for lower salaries, yet the survey results suggest this traditional counterbalance may be on the decline.

“We observe that there is some moderation of this generosity due in part to significant cost increases in health benefits,” Gavejian says. “If this trend continues, nonprofits may lose a competitive advantage that they’ve enjoyed over the for profit sector.”

Total Compensation Solutions is a research and consulting firm specializing in in employee compensation with offices in Armonk, N.Y., and Los Angeles.

Source: Philanthropy Journal

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Health Trust Launches Three Initiatives to Create a Healthier Silicon Valley




The Health Trust in Campbell, California, has announced a $30 million commitment for three new initiatives designed to help Silicon Valley make improvements in its citizens’ health and access to health care by 2010.

The first initiative, healthy living, will fund efforts to fight obesity while advocating for policies that support physical activity and healthy lifestyles. The healthy aging initiative is designed to focus on physical activity opportunities for seniors, improved hospital-to-home transitions, and training and support for caregivers. The third initiative, healthy communities, will work to ensure that fair and equitable healthcare services are available for all the region’s residents.

“Silicon Valley is dynamic and successful, but we are not immune to health challenges,” said Health Trust CEO Frederick J. Ferrer. “We are experiencing the national epidemic of obesity that increases the risks of many deadly chronic diseases. We are facing a population explosion of seniors in our county, and our health and social service system is ill-prepared. And we struggle to overcome the barriers to health that exist for far too many people in our community. There is much work to be done.”

“The Health Trust Announces $30 Million Investment Towards Making Silicon Valley Healthiest Region in America.” Health Trust 1/24/08.

Source: FoundationCenter.org

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Recession Proof Your Job




John Challenger of Challenger, Gray & Christmas, an outsourcing firm in Chicago, recently published advice on how to recession-proof you job:

Solidify the relationship with your boss
If the relationship with your supervisor is need of repair, now is the time to do it. Take steps to ensure that whatever characteristics or factors inspired your boss to hire you are still recognized. Schedule a lunch. Meet with him or her regularly to make sure you are on the same page. If your relationship has suffered, figure out what changed. If you cannot figure it out on your own, ask your boss directly in a non-confrontational, “I-only-want-to-please-you” way. Be prepared for the fact that you will be the one who must change, even if it’s your boss that caused the relationship to suffer.

Be an expert and a generalist at the same time.
Knowing more than anyone else on a specific issue or topic will help make you the “go-to” person for anyone in the company who has a question on that subject. However, you also want to be well-versed in many areas of your company so that managers see you as being able to contribute in a variety of ways.

Seek assignments on core projects.
Find a way to be part of long-term projects that are core to the company and more likely to survive a downturn. Job security will be strongest for those who demonstrate expertise, particularly on projects where there are few experts. The company will consider you essential to an area of the business that is mission-critical. In other words, the company cannot afford to lose you.

Meet your boss’s bosses and peers.
Go out of your way to meet those at or above your supervisor’s level in the company. Attend all company events and introduce yourself to upper-level managers and executives. Let them know what projects you are working on and share your contributions. If layoffs occur and your boss is among the victims, there is no one to carry your torch unless you have built relationships with surviving managers and executives.

Carry the company flag.
If job cuts become necessary, employers are more likely to keep workers who are “true believers” in the company’s mission. Sporting a company-logo tattoo is not enough. You must demonstrate that you share all of the company’s concerns and goals. In addition to attending all corporate morale and team-building functions, you should be part of the committees that plan them. Be an advocate internally and externally. The company will recognize and reward those who are true “company men and women.”

Source: Time Magazine

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Seven Things Employees Wont Most




Certain priorities remain constant in terms of what employees say makes them happy. Here are seven intangibles workers want most, according to experts:

1. Appreciation
Praise heads the list for many workers in the search for happiness.
“If the office is gorgeous, the pay is good, and the work is interesting, of course that helps,” says Michal Ann Strahilevitz, a marketing professor at Golden Gate University in San Francisco. “However, there is one huge factor that does not cost an employer money: praise. So many supervisors go out of their way to let employees know what they have done wrong, but don’t bother to congratulate and praise them for success. Praise does not cost anything to give, but its benefits on employee morale are priceless.”
2. Respect
This attitude costs nothing and yet yields big dividends.
“The most important factor in keeping employees happy is treating them with fairness and respect,” says Pamela Skillings, a career coach in Jackson Heights, N.Y. “People want to be paid what they’re worth, treated like adults, and rewarded for their good work.”

Those rewards can be simple and spontaneous. “A sincere thank you or short note often means a great deal when it is recognizing an accomplishment or specific effort,” says Ms. Sarikas. She finds that job dissatisfaction escalates when employees are not treated with respect or feel that their work is not appreciated.

Andrea Kay, a career consultant in Cincinnati, finds that respecting employees’ ideas and time, as well as their ability to make decisions and be creative, makes them want to stay. “My clients who are miserable are in companies with policies that focus solely on profits at the expense of people,” she says.

3. Trust

Going hand in hand with respect is trust. “You have to trust the people you work for, and enjoy the people you work with,” says Julie Clarkson, assistant professor of business at Wartburg College in Waverly, Iowa.

In a nationwide survey of 500 employees about what matters most in their relationship with a manager, 90 percent of workers rank honesty, fairness, and trust as their top three needs, says Terry Bacon, author of “What People Want.”

4. Individual growth

What people also want is an opportunity to grow and learn on the job. “No matter how we make a living, each of us is nurtured by our own professional and personal growth,” says Michael Neece, cofounder of Pongo.com, which provides résumé-writing services. “Employees want to understand how their efforts contribute to the business and want to feel that they are making a difference to their team, their department, and the company.”

That is particularly true for Gener­ation Y.

“Eighteen- to 30-year-olds are characterized by the desire to receive training, take on new challenges, expand their capabilities, and as a result, advance to new, more highly compensated roles,” says Jenny Floren, founder of Experience Inc., in Boston, a provider of career services for college alumni. The focus for them is less about compensation and more about advancement, improved capabilities, and recognition of achievement marked by a new position. “Offering Gen-Y employees a raise while keeping all other factors the same will not have the same impact as giving them new challenges,” Ms. Floren says. “In many cases a raise alone could backfire and cause the Gen-Y employee to seek job satisfaction elsewhere.”

For every generation, fair compensation remains important, of course. Clarkson calls pay a fairness issue that can make workers feel satisfied if it is fair and dissatisfied if it does not seem fair. But she finds that pay alone does not tend to make employees feel happy.

“The presence of money is a condition of work, and its absence is a demotivator,” says Alan Weiss, an executive coach in East Greenwich, R.I. “But if you give more money to an unhappy employee, you merely have a wealthier, unhappy employee.”

5. A good boss

Bosses also play key roles in determining a worker’s happiness factor. More than half of employees responding to an annual job-satisfaction survey by Yahoo! HotJobs admit that they don’t leave companies, they leave bosses.

“Having a fair, sympathetic manager who makes employees feel valued is a crucial element to an employee’s job satisfaction,” says Tom Musbach, managing editor of Yahoo! HotJobs.

By contrast, if bosses aren’t honest with workers, don’t listen to them, and don’t care about them, employees either leave or become disengaged in their work, says Terri Levine, president of Comprehensive Coaching U in North Wales, Pa.

Career specialists note that employee happiness is serious business – an essential consideration for managers who want to keep top talent.

In a recent survey by Robert Half International, 1,000 Gen-Yers ranked “working with a manager I can respect and learn from” as the most important aspect of their work environment.

6. Compatible co-workers

Working with people they enjoy was a close second.

“You need to feel good about the people you work with and the people you work for,” Sarikas says. “You don’t have to be best friends and probably shouldn’t be, but you need to be able to respect them for their knowledge and experience as well as for their ethics. You want people who can challenge you but also listen to your ideas, people you can laugh with, people who share a vision for the work you do together.”

Similarly, employees need to find an organization where the corporate culture fits their personality and work style. For some, that includes work-life balance.

“People don’t leave their personal lives at the door when they come to work,” says Lyn Freundlich, director of human resources at Third Sector New England, a nonprofit management service in Boston. “They need as much flexibility as possible. When the connection between family and work is recognized, we get more out of employees and they’re happier.”

7. A sense of purpose

Above all, career counselors emphasize the importance of doing something you love and having a sense of purpose.

“Most people find happiness at work when they feel connected to the core purpose of the organization,” Clarkson says. “When we are able to find work that uses our capabilities and allows us to address important values in our life’s purpose, it is the best way to find happiness at work.”

Whatever an individual’s personal recipe for happiness on the job, Jeff Garten, author of the forthcoming book “Career Contentment,” urges people to take the long view.

“Career contentment is different from job satisfaction,” he says. “It is a deeper state of mind about one’s direction, fulfillment, calling, engagement. Job satisfaction comes and goes with each job, but career contentment is a lifelong quest and mind-set.”

When John Izzo, president of The Izzo Group, workplace consultants in Vancouver, Canada, asked 250 people to reflect on their long careers, he heard a recurring theme about what gave them the deepest satisfaction and contentment.

“Many told me, ‘The corner office and status, now that I look back, really had no meaning. But the feeling of making a difference did,’ ” he says.

Mr. Izzo adds, “It was what they gave back that made the greatest happiness for them.”

Source: Christian Science Monitor

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Many Nonprofits Require Donations From Board Members




Nonprofits increasingly are requiring that board members donate to the organizations they help govern, a new survey from the Chicago-based accounting firm Grant Thornton LLP finds.

The fifth annual National Board Governance Survey for Not-for-Profit Organizations (24 pages, PDF) is based on an online survey of more than six hundred nonprofit executives and board members in forty-seven states and Washington, D.C. According to the survey, 56 percent of the organizations represented required their board members to make a financial contribution. What’s more, many organizations employ a “give or get” policy that requires board members to contribute personally and/or solicit contributions from their friends and contacts in order to remain on the board.

The survey found that among organizations that require board members to make a financial contribution, 38 percent of those with budgets exceeding $500 million require gifts of more than $5,000, while 60 percent of the organizations with budgets between $100 million and $500 million required a similarly sized donation. Organizations with budgets between $50 million and $100 million were most likely to require gifts of $1,000 or less from their board members. Of the groups with budgets between $20 million and $50 million, 39 percent expected board members to donate less than $1,000, while 36 percent expected them to contribute $5,000 or more.

“Board members are increasingly expected by other constituencies and stakeholders to set the example by personally making significant contributions,” said Frank Kurre, national managing partner of Grant Thornton’s nonprofit practice. “If an organization asks donors to make a contribution, they often expect the board members of that organization to have contributed as well. If an organization can show that 100 percent of its board members have contributed, it demonstrates loyalty and commitment to the organization’s mission.”

“More Than Half of Not-For-Profit Organizations Require Financial Contributions From Board Members.” Grant Thornton LLP 1/15/08.

Source: Foundationcenter.org

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Tips When Working With Baby Boomer Volunteers




Baby boomers are 77 million strong, and represent huge potential as volunteers. Don’t get left behind. Learn about baby boomer needs and start converting your volunteer environment to one that will appeal to this huge and lively generation.

1. Respect Their Schedules Boomers are time-stretched. They are likely to still be working; they often are looking after children as well as helping out aging parents; and they love to travel and have many hobbies.

Give them flexible opportunities that include short-term timelines with clear start and finish dates. Consider family volunteer opportunities so that volunteers do not have to choose between volunteering and being with their families. Older boomers will enjoy volunteering alongside their grandchildren.

2. Treat Them as Colleagues Don’t be alarmed when your boomer volunteers resist authority, talk back, or question how things are being done. The ultimate anti-authoritarians, baby boomers do not like to be told what to do. Ask them; don’t tell them. Make every step of the volunteer process a participatory one. Take advantage of their intelligence, experience, and education.

3. Develop Opportunities That Really Matter Offer meaningful and challenging volunteer opportunities. Boomers are knowledgeable about social issues, may have strong opinions, and may be experienced social activists. Develop volunteer opportunities that take advantage of their passions and their know-how. Involve them in decision making and goal setting. No envelope stuffing please.

4. Remember That Volunteering Is Optional Remember that boomers don’t have to volunteer. Their parents may have volunteered because it was what was expected, but boomers are the ultimate consumers and see volunteering as a way to get their own needs met as well as providing service to others.

Let them tell you what they need; they won’t be shy. They may be looking for recognition, friendship, the opportunity to be creative, to be in charge of something, to relax, to learn new skills, or set an example for their grandchildren.

5. Make Sure You Are Organized and Professional Baby boomers will not tolerate disorganization, or sloppiness of any kind. They have been working all of their lives, often in responsible positions, so they know what works and what doesn’t in organizations.

Be clear, be organized, and don’t make your boomer volunteers root around for answers to their questions. Assign someone on your staff to be point person. Boomers will not like it if they get a different person every time they call or ask for assistance.

6. Train With Relevance Provide training that is relevant, meaningful, and well-presented. This generation is already highly credentialed and is not looking for more certifications. They want education that will help them develop their full potential, not training that is all about regulations and control.

Use adult learning models. Treat volunteers as colleagues, not students. Use discussion, not lectures. Make lessons experiential, not book-based.

7. Reach BoomersThrough Their Peers Appeal to baby boomers through their peers. They are much more likely to respond to messages from their peers than celebrities or authority figures. Recruitment materials should focus on other boomer volunteers with lots of stories and testimonials.

You could even employ nostalgia for the older boomers. Take a look at some of the advertising from financial companies that are targeting boomers–especially Ameriprise and Fidelity.

8. Recruit Boomers at Work Since most boomers are still working, try recruiting them at the office. Many employers have programs for their workers, allowing them to use company time to volunteer for select organizations. Work with these companies and their volunteer coordinators.

Source: about.com

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Georgia Tech Employee Stole $350,000




Over a six year period, a Georgia Tech administrator stole $350,000 in grant funds. Documents obtained by The Atlanta Journal-Constitution, detail 18 cases of fraud involving state purchasing cards on college campuses. The cases are additional findings in the ongoing, months-long audit of the p-card program at the system’s 35 public colleges and universities.

The newspaper reports that the newly released documents discuss 18 cases of fraud involving the cards, including the unnamed administrator who “submitted fraudulent invoices to conceal personal purchases” to steal between $320,000 and $350,000. The employee worked in the Parker H. Petit Institute of Bioengineering and Bioscience, according to a university-system spokesman.

Altogether, twelve university employees who were accused of fraud in the newly released documents have resigned, been fired, or retired, the newspaper reports.

Source: Atlanta Journal and Constitution and Chronicle of Philanthropy

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Catholic Charities Names New Chief




Catholic Charities has named Robert Brown as the organization’s a new chief administrative officer.

Brown, who assumed his position this week, is charged with managing and strengthening the information systems, finance and human resource departments of Catholic Charities.

Brown has extensive experience in technology management as well as finance and health care. Most recently, he was president and chief operating officer of a video communications firm.

Founded in 1933, Catholic Charities Community Services is one of Arizona’s oldest and largest nonprofit organizations. It offers assistance and social service programs for families, children and those in crisis.

Source: bizjournals.com

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Red Cross Cuts Nearly 1,000 Jobs




The American Red Cross has announced that it will cut roughly 1,000 jobs, including up to one-third of its headquarters staff, as well as some regional management, reports The New York Times. The organization’s chief public-affairs officer, Suzy C. DeFrancis, says the Red Cross is responding in part to an increasingly competitive fund-raising environment. She said the cutbacks would not affect relief operations or other services the organization provides.

The Red Cross is currently facing a $200-million operating deficit. “We’ve just come to the conclusion that we’ve gotten too top heavy,” Ms. DeFrancis said.

The organization has come under criticism in recent years for its operating structure and leadership. The group has had five chief executives since 2002, which some observers believe may have poorly affected Red Cross relations with major corporate donors.

“Look, this restructuring is needed,” said one former executive, speaking on condition of anonymity. “It can be a good thing if they cut the right things, like some of the internal support functions, and focus what’s left on providing services.”

Ms. DeFrancis said no final decisions had been made on the job cuts but that the board will meet in late February for a final vote on the overhaul.

Source: Chronicle of Philanthropy

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