With the start of the new fiscal year on July 1st, NW Works is making some fiscal changes. One of these changes includes how we manage donations to the organization.
You may not be aware, but there is a second organization associated with NW Works Inc., called the NWW Foundation. The NWW Foundation is a 509(a)(3) supporting organization, which is a charity that exists to support another public charity, in this case, NW Works. It is governed by a volunteer Board of Directors, much like NW Works’ Board of Directors. As a private foundation, the NWW Foundation is legally required to disperse at least 5 percent of assets every year. However, unlike grantmaking organizations, the NWW Foundation solely funds NW Works.
This has allowed NW Works to have a safety net of sorts, ensuring that in times of economic hardship, the organization is able to receive funding from the foundation. Rather than holding the excess funding in a traditional bank account, the NWW Foundation invests assets, which allows the Foundation to grow the safety net for NW Works. The NWW Foundation also exists to ensure the longevity of NW Works. NW Works turns 52 years old this month and we plan for the organization to be here long after my tenure as CEO. To do so requires planning for the future, both operationally and fiscally.
Historically, all donations made to NW Works went directly to the company’s operating account. Once deposited, donations remained in the account with other funds until the point that the company needed them for various expenses, ranging from programmatic needs to operating expenses. However, keeping donations in non-investment accounts meant the money was unable to grow.
As of July 1, 2022, most online donations will automatically go to the NWW Foundation, rather than NW Works. This will allow us to invest the funding, ensuring we make the greatest impact with your contributions. Money will still flow yearly at a rate of at least 5 percent from the foundation to NW Works, and donations will still be used to meet programmatic and operational needs. Grant funding, earmarked donations for specific campaigns and donations made by check specifically to NW Works, Inc. will continue to be placed into the NW Works operating account, not the Foundation. Donors can decide where their gifts will go and how they will be used, and we always honor our donor’s wishes and expectations.
All donations, regardless of the manner in which they are received, are enormously appreciated and impactful. They help to ensure our organization will last long into the future, and continue to provide employment services to people who need them for generations to come.