2017 NONPROFIT OUTLOOK SURVEY: OVERCOMING UNCERTAINTY WITH SUPPORT, STRATEGY, AND OPTIMISM

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1 2017 NONPROFIT OUTLOOK SURVEY: OVERCOMING UNCERTAINTY WITH SUPPORT, STRATEGY, AND OPTIMISM

2 Passion is a critical element to success. The leaders of our nonprofit clients have passion for their organizations missions, which is a large part why they re so successful. Similarly, we have a passion to serve these nonprofit clients. One important element of our service is to strive to present new, useful, and actionable information that helps make better strategic decisions. In support of that goal, we are proud to present the results of our latest Nonprofit Outlook Survey. In 2016, measures such as revenue and demand appear to have improved for most organizations. Growing expenses, however, tempered some of that success and impacted profitability. When it comes to the 2017 outlook, many respondents expressed some major uncertainty, particularly related to the economic impacts of the changing control of government. In the face of these unknowns, we are very pleased with the positive outlook many participants expressed as it relates to revenue, profit, and demand. We consider this confidence and optimism to be a wonderful facet of the passion of our nonprofit client leaders. As always, the economy will have important implications related to attracting and retaining talent, and that appears to have grown as an area of focus for In other good news, wages are rising, board effectiveness appears to have improved in many ways, and the attention given to strategically using technology has also grown since our previous survey. As always, the results described in the following pages could not have been compiled without the generous time and effort of many nonprofit leaders. We thank these individuals for their participation and invite other nonprofits to participate in the future. If this year s results raise any additional questions or concerns about the strategic decisions of your organization, please do not hesitate to reach out to us to discuss. We look forward to serving you in 2017! Ann Hinkins, CPA Lisa Meacham, CPA Ryan Sells, CPA Kelly Kozeliski, CPA Craig Choun, CPA Dori Eggett, CPA ABOUT EKS&H EKS&H is a nationally recognized professional services firm providing audit, tax, technology, wealth advisory, and business consulting services to public and private clients locally, nationally, and internationally. Our commitment to client service has resulted in sustained growth since we began in Working collaboratively, the best measure of our success is the success of our clients. ABOUT THE EKS&H NONPROFIT CLIENT SERVICE TEAM With more than 50 nonprofit industry-focused professionals and dedicated audit, tax, and consulting partners, the Denver-based nonprofit specialty group at EKS&H is larger than all local nonprofit niche firms as well as the nonprofit groups within the regional/national firms. We currently serve a wide variety of more than 125 local and national nonprofit clients, including private and community foundations; professional associations; and organizations involved with human services, animals, the environment, healthcare, religion, education, fundraising, and the arts.

3 2017 NONPROFIT OUTLOOK SURVEY: OVERCOMING UNCERTAINTY WITH SUPPORT, STRATEGY, AND OPTIMISM Key Findings 2016 Nonprofit Performance 2017 Nonprofit Outlook 2017 Goals 2017 Challenges 2017 Strategies for Success Talent and Compensation Technology and Giving Board Performance About the Survey and Participants 2

4 KEY FINDINGS 2016 Two-thirds of respondents indicated that revenue/support exceeded expenses. Revenue grew for 57% of respondents in 2016 (only 51% expected revenue growth) and demand grew for 55% (only 35% expected demand growth). No organizations reported a decrease in demand. However, expenses increased for 62% of respondents, and employment grew for 42% of respondents. As a result, profits decreased for 42% of respondents, and only 32% of respondents grew profits. Still, this result exceeds the 22% who expected profit growth for

5 2017 Political changes are translating to significant economic uncertainty and uncertainty about how this will impact nonprofits. More than half (54%) of respondents selected unknown to describe the anticipated effect on their organizations. Nonprofits are more positive this year than the previous year about growth in revenue (58% versus 51%), profit (41% versus 22%), and demand (58% versus 35%), but surprisingly fewer (46% versus 52%) expect increases in costs. Almost one-third plan to grow employment. Related to that expectation, retaining talent has become the top goal of 2017, and the scarcity of talent is the second biggest challenge. Technology priorities have grown with the greatest increases in tracking impacts/outcomes, improving performance of existing systems, and donor/member relations and analysis. Board focus also improved in many areas since the previous year with mission, strategic planning, fundraising, and board member expectations all becoming higher priorities. 4

6 2016 NONPROFIT PERFORMANCE REVENUE/SUPPORT EXCEEDING EXPENSES In 2016, two-thirds of organizations indicated that revenue/support had exceeded expenses. This represents an eight-point decrease from the percent that reported this result in 2015 and the lowest level in the past five years. These results foretell subsequent responses about the increase in expenses many organizations reported during REVENUE/SUPPORT EXCEEDING EXPENSES 75% 69% 76% 71% 75% 67% /3 of respondents reported revenue/support exceeded expenses 5

7 REVENUE CHANGE A majority (57%) of respondents indicated that revenue grew in (This includes onequarter of respondents who achieved growth greater than 1 mirroring a five-year high from 2014 and one-third of respondents who achieved 3% to 9%.) Just over onefifth of respondents reported no change in revenue, and just over one-fifth of respondents reported a decrease. 10 REVENUE CHANGE 13% 33% 18% 2 15% % 42% 19% 8% 7% 32% 22% 1 11% 2 34% 2 15% 11% 32% 21% 13% 9% p1 p3%-1 Neutral q3%-1 q1 Revenue p Neutral Revenue q % 18% 35% % 19% 15% % 22% 21% % 2 26% % 21% 22% 6

8 REVENUE SOURCES (OTHER THAN INVESTMENT INCOME) When asked about the source of revenue in 2016, average percentages increased for program revenue (p3%), corporate/foundation grants (p4%), and government grants (p1%). Revenue from special events decreased (q6%), and contributions stayed the same. Note: Due to significant fluctuations and differing year-ends, investment income results have been excluded from calculations. 5 4 REVENUE SOURCES 39% Program Revenue (Membership, Tuition, Admissions, Sales of Products and Services) 4% Contributions Special Events Corporate/ Foundation Grants 13% 14% Government Grants DEMAND CHANGE 2016 represented another year in which more than half of respondents (55%) reported increases in demand for programs and services. No respondents to this year s survey indicated that demand for services decreased. 55% represents a 20-point increase over the percentage of respondents who expected demand to grow in DEMAND CHANGE 43% 46% 57% 44% 55% p Neutral 51% 49% 37% 52% 45% q 7% % 7% 3%

9 EMPLOYMENT CHANGES More organizations indicated that they grew employment in 2016 compared to 2015 (42% versus 38%) and just under half (47%) reported that their employment levels did not change. The percent of respondents indicating that their employment levels decreased grew from 5% in 2015 to 11% in These results are somewhat surprising as only 21% of respondents indicated in the previous year that they expected to grow employment in With unemployment near its lowest level since 2010, it is interesting to see that employment decreased for more than twice as many organizations as in the past two years. This suggests that employment change is necessary to meet the challenges and opportunities organizations face. 10 EMPLOYMENT CHANGES 36% 38% 42% p Neutral 59% 57% 47% q 5% % 11%

10 EXPENSES CHANGE With growing demand for most participants, it is not surprising that expenses grew for a majority as well. Representing a six-point increase over 2015, 62% of respondents reported increasing expenses in (This includes nearly one-fifth who indicated costs increased more than 1.) With average annual inflation from the past 10 years being around 2%, some increase in expenses can be expected. However, one-quarter of respondents indicated no change to expenses, and 13% actually reported a decrease in expenses. 10 EXPENSES CHANGE 12% 18% 11% 13% 17% p1 37% 32% 39% 43% 45% p3%-1 Neutral 28% 27% 2 17% 17% 15% 11% 3% 7% 8% 5% 2% q3%-1 q1 Expenses p Neutral Expenses q % 28% 23% % 24% % % 13% 9

11 PROFIT CHANGES Essentially, combining the revenue results and expense results gives us profit, and, like the smaller percentage who reported revenue/support exceeded expenses in 2016, a smaller percentage (32% versus 34% in 2015 and 45% in 2014) also reported profit growth. As described previously, there is less and less room to stay the same. 10 PROFIT CHANGES 29% 16% 26% 13% 16% % 17% 11% 15% 3 7% 17% p1 p3%-1 Neutral q3%-1 q1 While many organizations aim for breakeven between income and expenses, profits are a healthy nonprofit goal. Profits are Profit p Neutral Profit q % 26% 29% % 3 37% % 42% important because they enable an organization to reinvest back into Profits grew for 1/3 of respondents what works and grow in new and different ways. -Lisa Meacham, CPA, Audit Partner 10

12 2017 NONPROFIT OUTLOOK FROM THE RESPONDENTS Potentially more service demand. We may see a bump from the election since people want to do something: It is unclear currently whether changes will occur in the philanthropic community due to the election. We are also monitoring other policy agendas, which could impact our organization and goals: With the new administration, our government funding could be decreased or eliminated. POLITICAL IMPACT A nearly identical percentage of respondents (69% versus 68%) expect the political environment will have a negative impact on their organizations in In a reversal of expectations for 2016, however, more respondents (19% versus 1) believe the political environment will have a positive impact on their organizations, and fewer respondents (13% versus 22%) feel the impact will be unknown. The somewhat surprisingly low unknown category might suggest that people have made conclusions about the reality they will operate in, politically, for the foreseeable future (and it is not good for the majority of respondents). It is important to note that potentially dramatic political shifts can present a challenge or an opportunity to different organizations, their programs, and their funding and fundraising prospects. Respondents were asked how the political environment would impact their organizations (see sidebar). POLITICAL IMPACT % 68% 69% 5 22% 19% 13% 1 Negative Unknown Positive 11

13 ECONOMIC IMPACT The economic outlook, however, is much more uncertain yet positive. More than half of survey participants (54%) selected unknown when asked how the economic environment would impact their organizations in More than one-third (39%) indicated it would have a positive impact, and, somewhat remarkably, only 7% of respondents felt the economic impact would be negative for their organizations. Respondents were asked how the economic environment would impact their organizations (see sidebar). FROM THE RESPONDENTS I think that the expected probusiness policies of the new administration will increase the optimism of our benefactors. 75% 5 ECONOMIC IMPACT 22% 7% Negative 37% 54% Unknown % 39% Positive 2017 We are unsure of what will happen with federal funding opportunities in 2017 and beyond, and this could have a negative impact on our organization. Changes to tax codes could impact us either positively or negatively. Local economy is strong impacting program revenue. Current market outlook is expected to support investment returns. 12

14 REVENUE/SUPPORT EXCEEDING EXPENSES Expectations about revenue/support exceeding expenses in 2017 reflect a significant (13-point) jump from expectations for Impressively, 85% expect revenue/support to exceed expenses while 15% do not. With expectation percentages returning to levels similar to those in past years, one must wonder whether 2016 s outlook was an anomaly. It may be surprising to consider this year s optimistic outlook when comparing the difference between expectations and reality for 2016; although 72% predicted a positive balance, only While some might anticipate after organizations do not meet expectations in one year, they would lower expectations for the next. But perhaps a more positive outlook reflects lessons learned and changes made. 67% achieved that. Adding the political and economic uncertainty expressed, this makes the 18-point increase from 2016 actual to 2017 expectations even more interesting. REVENUE/SUPPORT EXCEEDING EXPENSES Yes No 10 86% 83% 85% 8 72% 75% 5 28% 2 17% 14% 15% Ann Hinkins CPA, Audit Partner 13

15 REVENUE AND PROFIT GROWTH OUTLOOK Mirroring the optimism of the previous response, more participants (58% versus 51%) expect revenue to grow in Similarly, many more respondents (41% versus 22%) expect profits to increase. (Recall that 57% achieved revenue growth, but only 32% achieved profit growth in 2016.) Respondents were also asked to describe how revenue and support would increase or why it might decrease (see sidebar). FROM THE RESPONDENTS 2017 is [our organization s] anniversary, and special events are being planned with projections of additional donors: 75% 5 REVENUE AND PROFIT GROWTH OUTLOOK 6 51% 58% 41% Revenue Growth Expand into new areas, utilize healthcare worker outreach, and price more competitively. 19% 22% Profit Growth Cyclical nature of [our programs]: Engage board in fundraising efforts. Respondents who expect profit to grow in 2017 nearly doubled from 22% to 41% continue to ramp up advertising and community engagement to increase referrals to our program. 14

16 REVENUE SOURCES When asked about revenue sources for 2017 (investment income now included), the largest average segments continue to come from program revenue (38%) and contributions (). The averages for corporate/foundation grants and government grants represent 15% and 13%, respectively, and special events and investment income each represent 5%. REVENUE SOURCES 15% 13% 5% 5% 38% Program Revenue (Membership, Tuition, Admissions, Sales of Products and Services) Contributions Special Events Corporate/Foundation Grants Government Grants Investment Income 15

17 DEMAND AND EXPENSE GROWTH OUTLOOK One of the most surprising results in this year s survey was the deviation of organizations expectations for demand and expenses. More organizations (58%) expect demand to increase (a 23-point increase compared to 2016 expectations), but fewer organizations (46%) expect expenses to increase (down six points compared to 2016 expectations). Possible explanations might be 1) anticipated efficiencies to be realized this year, 2) excess capacity created in 2016 that will be utilized in 2017, or 3) leaving demand unmet. 75% DEMAND AND EXPENSE GROWTH OUTLOOK Demand Expenses % 52% 52% 58% 46% 37% 35% 23%

18 2017 GOALS FROM THE RESPONDENTS Several targeted hires in early 2017; three-year forecast in Q1 2017; fundraising plan in place and progress tracked monthly. We set quarterly goals and have quarterly strategic planning meetings. Strategic planning cycle, exploration of new revenue opportunities, continued build out and deployment of new programs. Highlighting the growing concern of competition for talent, retain qualified staff was the new top goal selected by survey respondents. (It is interesting to note that just three years ago this goal was not even in the top five.) This significant change might be a facet of the expected improved economic environment and its implications on demand for talent or a concern about strategic and effective organizational succession planning for key individuals. On the other hand, some things never change: obtain new funding sources/obtain more funding from current sources and meet annual budget remain critically important goals, coming in second and third. Respondents were asked what concrete steps would be taken to achieve top goals (see sidebar). Obtain New Funding Sources/Obtain More Funding from Current Sources Meet Annual Budget Improve Effectiveness of Fundraising Efforts and Activities Recruit Qualified Staff Start New/Expand Current Programs Conduct Long-Term Strategic and Financial Planning Improve Program Reporting Efficiency and Accuracy Collaboration with Other Organizations/Entities GOALS Retain Qualified Staff Increase Effectiveness of Board Involvement and Governance Continue to improve online recruiting capabilities, reengage current staff 17

19 2017 CHALLENGES Unlike the change at the top of this year s goals, challenge in predicting future funding continues to be the top challenge since we began surveying in Two new options, scarcity of talented job candidates and cybersecurity, started the list impressively at No. 2 (perhaps echoing the sentiments of the top goal and the importance of succession planning) and No. 5, respectively. Inadequate access to funding was the only other challenge that appears to have grown in importance. Interestingly, the challenge of inefficient, insufficient, or outdated technology dropped five places since Respondents were asked what concrete steps would be taken to manage top challenges (see sidebar). FROM THE RESPONDENTS Focus on fundraising effort and team; offer training to compliance staff; use staff time to incorporate team problem solving. Challenge in Predicting Future Funding Scarcity of Talented Job Candidates Potential Loss of Top Management/Talent Inadequate Access to Funding CHALLENGES Cybersecurity Obstacles to New Program Implementation Board Effectiveness/Engagement Inefficient, Insufficient, or Outdated Technology Increased Compliance and Regulation Challenge in Predicting Cash Flow Needs New fundraising technology platform; succession planning. Building infrastructure, including technology to help us stay abreast of increasing compliance and regulation requirements. 18

20 2017 STRATEGIES FOR SUCCESS TALENT AND COMPENSATION EMPLOYMENT GROWTH OUTLOOK Almost one-third of respondents indicated they plan to grow employment in This is similar to percentages from 2014 and 2015 and 10 points higher than the hiring expectation for However, it remains significantly lower (11 points) than the 42% who reported actual employment increases in the previous year. 5 EMPLOYMENT GROWTH OUTLOOK 37% 28% 31% 21% % of respondents expect to increase hiring 19

21 FUNCTIONAL AREAS FOR INCREASED EMPLOYMENT With nearly 8 of respondents indicating that new hires will be made in direct service/ program management/member or constituent services, hiring will clearly be driven by recipient demand for services. Fundraising/development will be an area of increased hiring for approximately one-quarter of respondents, and administrative will be a focus of increased employment for approximately one-fifth of respondents. (This represents a reversal in priority from 2016 when 36% expected to increase hiring for administrative and 22% expected to increase hiring for fundraising/development personnel.) 10 FUNCTIONAL AREAS FOR INCREASED EMPLOYMENT 75% 79% 5 26% 21% Direct Service/Program Management/ Member or Constituent Services Fundraising/ Development Administrative 20

22 CHALLENGES TO ATTRACTING AND RETAINING TALENT When asked about challenges nonprofits face when attracting and retaining talent, the two top issues from 2016, competitive pay and advancement opportunities, were again identified by the most respondents. However, comparing 2016 s percentages to this year s, competitive pay seems to be decreasing as a challenge (67% versus 72% in 2016), and advancement opportunities seems to be a growing challenge (67% versus 59% in 2016). CHALLENGES TO ATTRACTING AND RETAINING TALENT Competitive Pay 67% Advancement Opportunities 67% Workloads/Staff Resources 4 Cost of Living/Housing 31% Organizational Culture 4% Other 8% 5 75% 21

23 STRATEGIES FOR ATTRACTING AND RETAINING TALENT The top strategies for attracting and retaining talent are increasingly enhanced training and development programs, posting online or use of referral sources, and increased compensation. Each of these increased 5% to 1 over the results from Flexible/ remote work arrangements seems to be decreasing as a focused strategy; 48% selected that this year, and 54% identified it in Notably, 21% (versus 14% in 2016) indicated that they would use recruiting firms in Respondents who selected other provided additional strategies for attracting and retaining talent (see sidebar). FROM THE RESPONDENTS Increased national reach in sourcing Intangible benefits and improved corporate culture STRATEGIES FOR ATTRACTING AND RETAINING TALENT Enhanced Training and Development Programs Posting Online or Use of Referral Sources 63% 65% Increased Compensation 6 Flexible/Remote Work Arrangements 48% Increased Benefits 31% Use of Recruiting Firms 21% Other % 22

24 COMPENSATION When asked about compensation, the trend is clear (if slight). No respondents indicated they expect to decrease wages in 2017, and only 6% expect to keep them level (compared to 23% in 2016). Interestingly, 94% expect to increase wages, 11% expect to increase them 4% or more, and a more stable 83% expect to increase wages 2% to 4% COMPENSATION % 83% 4 2 q+6% 23% 2% 6% 7% 7% 2% 5% 4% q4%-6% q2%-4% No Change p2%-4% p4%-6% p+6% HEALTHCARE BENEFITS Expectations for changes to healthcare benefits seem to be similar to those from last year. However there may be some moderation: 22% expect increases of 4% to 6% (compared to 13% in 2016) and only 14% expect increases of more than 6% (compared to 28% in 2016). This moderation may be a result of budget conformity or adjusted participant co-pays, deductibles, etc. 5 HEALTHCARE BENEFITS % 24% 24% 22% 28% 2 13% 14% 1 2% 4% 4% 6% q+6% q4%-6% q2%-4% No Change p2%-4% p4%-6% p+6% 23

25 BONUS/INCENTIVE COMPENSATION Most respondents, 57%, indicated that they will be offering some form of bonus compensation in This represents the highest response compared with previous years results ranging from 38% to 52%. Some follow-up questions include: Is it based on individual or organizational BONUS/INCENTIVE COMPENSATION performance? Is it seasonal or tied to objectives met? Is it available to all employees, only some departments, or only executive level? 43% Respondents were also asked to describe 57% their bonus or incentive compensation programs (see sidebar). ORGANIZATION CONTRIBUTION Yes No TO RETIREMENT (% OF EMPLOYEES SALARIES) For the first year, we asked what percentage of organizations contribute to their employees retirement. Almost half of respondents indicated that they contribute 4% to 6% of wages. One-third of respondents contribute 1% to 3%. And 15% of respondents contribute more than 6%. Finally, 7% of respondents contribute nothing to their employees retirement. (Organization executives should consider whether this puts them at a competitive disadvantage to attract and retain qualified staff, and they might need to strategize how to overcome that challenge.) ORGANIZATION CONTRIBUTION TO RETIREMENT (% OF EMPLOYEES SALARIES) 15% 7% FROM THE RESPONDENTS Bonuses are never guaranteed, but every year we have paid bonuses based on work goals and projects. Awards were given to all staff at the end of calendar year 2016 (i.e., FY17). Additional work was performed by employees as there were up to 5 positions vacant during the first half of the fiscal year. Performance bonuses, based on goals achieved (not related to fundraising goals). 45% 33% 1%-3% 4%-6% More than 6% Incentive for all employees if certain organizational goals are attained. 24

26 TECHNOLOGY AND GIVING TECHNOLOGY PRIORITIES The biggest change in technology priorities for 2017, as compared to those for 2016, was tracking impact/outcomes, which increased 25 points to become a priority for almost 8 of respondents. Improving performance of existing systems also increased, by 14 points, to be a priority of two-thirds of respondents. Finally, donor/member relations and analysis also increased as a technology priority, by 10 points, to 56% of respondents. Technology priorities that decreased in importance include banking, cash management, and expense payment, down nine points, and remote access for employees, down seven points. It may be that these more foundational organizational technologies have already been addressed by the majority of organizations. TECHNOLOGY PRIORITIES Not a Focus Consideration Priority Tracking Impact/Outcomes 6% 17% 78% Improving Performance of Existing Systems 4% 3 67% Social Media and Online Presence 7% 26% 67% Data Quality/Integration and Business Intelligence/Analytics 6% 39% 56% Donor/Member Relations and Analysis 9% 35% 56% Program/Service Delivery to Recipients 11% 37% 52% Cybersecurity 15% 35% 5 Donation/Income Collection 2 46% 33% Remote Access for Employees 33% 43% 24% Banking, Cash Management, and Expense Payment 46% 31% 22% Outsourcing Technology Support/Strategy 59% 24% 17%

27 CAMPAIGN STATUS Fewer respondents indicated they will be in a capital campaign (public phase), 16% versus 22% in 2016, and in planning stages, 11% versus 27%. More will be in a capital campaign (silent phase), 14% versus 8% in 2016, and many more expressed no capital campaign plans for the near future, 59% versus 43%. CAMPAIGN STATUS 16% Currently Conducting a Capital Campaign (Public Phase) 59% 14% 11% Currently Conducting a Capital Campaign (Silent Phase) Planning a Capital Campaign for the Next Year No Capital Campaign Plans for the Near Future (2-3 years) Fewer organizations appear to be in campaign-mode 26

28 FROM THE RESPONDENTS Incorporated an individualized board orientation for new board members. New financial statements that are easier to read, encouragement to join and participate in a board committee. BOARD PERFORMANCE PRIORITIES When it comes to board priorities, many areas seem to be improving and becoming a greater focus. Comparing the two highest focus categories from 2016 to 2017, organizational mission is up from 77% to 87%, strategic plans up from 6 to 75%, fundraising expectations are up from 48% to 6, and board member expectations are up from 43% to 65%. One area, however, that has not become a higher priority is organizational evaluation methods, down from 39% to 35%. Leadership evaluation methods remained the same at 41%. Respondents were also asked to share what new strategies were working in relation to their boards (see sidebar). PRIORITIES Organization Mission 4% 2% 7% 35% 52% Strategic Plan We formalized a board policy manual. 2% 4% 2 Fundraising Expectations 9% 8% 23% Board Member Expectations 32% 3 43% 3 9% 2% 24% 43% 22% Leadership Evaluation Methods 2% 15% 42% 29% 12% Organization Evaluation Methods 26% 39% 24% 11% Low Focus High Focus 27

29 ABOUT THE SURVEY AND PARTICIPANTS The EKS&H Nonprofit Outlook Survey has grown to become an informative barometer of executives of organizations in Colorado and the western U.S., representing a wide variety of types and sizes of nonprofits. The 2017 survey involved almost 90 executive participants. This report includes results we consider to be meaningful, insightful, strategic, and actionable information for nonprofits. For more information about the survey, please contact partners Ann Hinkins at ahinkins@eksh.com or Lisa Meacham at lmeacham@eksh.com, or call us at ANNUAL REVENUE More than $100 Million 4% $51 Million-$100 Million 1% $26 Million-$50 Million 13% $11 Million-$25 Million $6 Million-$10 Million 15% $1 Million-$5 Million 32% Less than $1 Million 4% 5% 1 15% % 4 TOTAL EMPLOYEES More than 500 6% % % % Less than 25 27% 5% 1 15% % 28

30 ABOUT THE SURVEY AND PARTICIPANTS (Continued) ORGANIZATION TYPE Arts, Culture, and Humanities Association/Membership Education 9% 1 1 Environment/Animals 4% Foundation 16% Fundraising 1% Healthcare 11% Human Services 3 Religious Other 4% 4% 5% 1 15% % 29

31 EKS&H SERVICES EKS&H LLLP (EKS&H) is a nationally recognized professional services firm providing audit, tax, technology, and business consulting services to public and private clients locally, nationally, and internationally. Our commitment to excellence has resulted in sustained growth since we began in Working collaboratively, we know the best measure of our success is the success of our clients. Founded: 1978 Locations: Denver, Boulder, Fort Collins, and San Francisco Employees: Approximately 700 Partners: More than 70 Number of CPAs: 300 Number of Consultants: 100 Audit and Assurance Public offerings and private placements SEC reporting Employee benefit plans Risk advisory Tax Multistate and state and local taxes (SALT) Federal credits and opportunities International tax and transfer pricing services Transaction tax strategy Business Consulting Outsourced accounting Transaction services Strategic planning Specialty tax Business Technology Budgeting and forecasting Business intelligence Data quality and integration Enterprise software advisory Managed IT and cloud Project management Security and risk assurance Strategy and leadership Training Wealth Advisory Family business Family office services Financial planning Income tax planning and compliance Philanthropy guidance Wealth transfer planning 30

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