Society to Promote Work with Nonprofit Boards

Society to Promote Work with Nonprofit Boards

By Alicia Korney, Public Relations Associate

Sherwood “Woody” Levitan, the first recipient of the Michael H. Urbach, CPA, Community Builder’s Award, which is sponsored by the Council of Community Services of New York State, Inc., and the New York State Society of Certified Public Accountants, readily admits that when his firm was just starting out in Middletown, N.Y., his initial foray into volunteer work with nonprofits wasn’t all about selflessness.

“I was new to the Orange County area,” said Levitan, a partner with Levitan Yegidis and Goldstein LLP. “This is an area where, traditionally, newness is not a good thing. I absolutely had to build some recognition and do some public relations work.”

The firm, which opened in 1982 with a trio of employees, now has a lengthy client list and employs close to 20 workers. Levitan said the business is among the area’s most respected, a reputation he believes has its roots in the firm’s nonprofit work.

Hoping to spread the success of individual efforts such as Levitan’s, and provide a high level of financial expertise to the nonprofit sector, in late April the NYSSCPA will launch CPAs on Boards, an initiative to match CPAs with nonprofits groups. The Society is planning an extensive marketing campaign for the initiative over the next year. Some of the country’s larger CPA societies, including California, Indiana and Illinois, already have successful nonprofit-matching programs in place. The plan for the NYSSCPA program is to train participants in nonprofit financial issues and then work with coordinating groups to effectively match those CPA members with nonprofits who are proactive in raising the level of financial integrity of their boards.

“The most qualified professionals to give guidance in taxation, compensation and updates on the latest federal regulations are CPAs,” said NYSSCPA President John Kearney. “The chance to give back to the community, the opportunity to build one’s practice and reputation and to develop broader networking opportunities make this an initiative that’s a win-win for everyone.”

Allan Blum, a member of the Society’s Not-for-Profit Organizations Committee, said the issue of financial governance is a heightened priority for nonprofits, considering the trickle-down effects of Sarbanes-Oxley on those organizations. Blum, of New York City–based Loeb & Troper, an auditing and consulting firm which provides services to about 1,000 nonprofits, said while the 2002 legislation may not directly apply to nonprofits, board members from the business world will gradually see nonprofits implement the internal safeguards and reporting requirements the law has placed on public companies.

“The need for a board member with financial knowledge is a natural piece that many nonprofit organizations are missing,” Blum added. “A CPA can be hugely important for even the small groups that have to manage their finances tightly. Even medium-size organizations often don’t have all the necessary expertise in-house. CPAs can ensure those groups are operating properly and can assist with setting benchmarks for a group of a certain size. That expertise is an important element in the nonprofit world.”

Another Society member who has contributed substantial expertise to nonprofits is Nancy Kirby, a senior partner with Kirby Beals Maier CPAs PLLC in Elmira, N.Y. She has served on a variety of nonprofit boards in her community and received the Society’s Arthur J. Dixon Public Service Award in May 2004.

“When I was young and just starting out, the nonprofit work helped me make those community connections,” said Kirby, who had spent her childhood in Elmira but never really been connected to the business network. “Working with a nonprofit is a great way for community leaders to find out what kind of person you are and to see if you have good follow-through and do the things you say you will,” she said.

Kirby said CPAs looking to get involved should find an organization near and dear to their hearts. For Kirby, that was her town’s local library.

“It’s hugely important that you’re able to devote yourself and your time,” said Kirby, who suggests CPAs stay with nonprofits through at least two terms. “There’s nothing worse than being on a board and not contributing.”

Kirby also stressed that while a CPA should pay specific attention to improving the financial condition of a group, that doesn’t mean offering up free accounting services.

“Whether you’re a treasurer or a board member, it’s important to provide direction and leadership on cleaning up (financial) messes,” said Kirby, suggesting that accountants can help update a group’s financial system, or improve its recordkeeping. “Don’t get involved in the detail work,” she said.

Though it’s been several years since her involvement with the library, Kirby says she only has to look a town over to see what sort of impact volunteer efforts can have. While her local library remains strong and equipped with new technology, a neighboring town had to shut down its facility due to financial woes.

“There’s a tendency for a nonprofit, especially those with health-service missions, to forget about the finances,” Kirby said. “It’s a CPA’s natural role to ask questions about the cost benefits of an initiative, or where the dollars to support a new program are going to come from.”

For Woody Levitan, who also served with several regional economic development groups, it’s his work with the Orange Medical Center in which he takes the most pride. As chairman of the board and a member of the executive committee, he helped lead the merger of two medical centers and is now sitting on the steering committee that will oversee construction of a new hospital facility. Levitan said the hospital, which was in serious financial trouble when he started working with the group, recently bought property for the project.

Levitan’s involvement with the Orange Medical Center as well as numerous other civic organizations and nonprofits made him a natural choice to receive the Community Builders Award, given for the first time last year and named after the former New York state tax commissioner, who passed away last spring.

“Recognition, of course, was not the only reason I started working with nonprofits all those years ago,” Levitan said. “But it was a big one. I’m happy to say that was very quickly subsumed by the real joy I get from doing something good.” He added, “It may sound a little corny, but changing even your little corner of the world is its own reward.”w

When the Society’s program is launched in April, more information about the CPAs on Boards program will be available from the Society’s website within each chapter section.