Employee Ownership Foundation

Charting Your Own Future

"We understand that a well managed employee-owned company is not a destination, it is a journey..."

- J. Michael Keeling,
President of The ESOP Association


Approved Budget and Projects 2016

At the November 2015 Executive Committee Meeting of The Employee Ownership Foundation the 2016 EOF budget was accepted as well as the 2016 projects. The Executive Committee ("EC") of the EOF is comprised of many of the same members of The ESOP Association ("TEA")'s Board of Directors ("BOD") also present at that meeting. Behind this tab are the following documents relating to the 2016 approved EOF budget and projects:

  1. 2016 EOF budget and
  2. Attachments relating to the synopsis below.

This budget provides payment of $50K to TEA for EOF expenses paid by TEA.

The 2016 budget is a deficit when considering only revenues projected for 2016. EOF, however, as of the day of this document has $217,550 in its bank account, $183.2K in a money market account, and $1.61M in investments. Thus, EOF has more money since its inception. Thus, EOF can fund all proposed projects and still be over its goal of always having $1 million liquid assets on hand.

As with regard to the $1 million goal, it could easily be raised to $1.5 million, even with the increase in operations spending, while having a goal that in the bank account always has $100K on hand.

EOF's total assets as of December 31, 2015 are $2.1M.

The following projects were approved for 2016:

  • Kelso Fellowships: The success of this program, including case studies, employee ownership research and dissertations, etc. is due to the fact that this Rutgers University program penetrates academic institutions throughout the nation. Case studies, bios, and interviews with Kelso Fellows are available through links on the Foundation's website to the Foundation for Enterprise Development ("FED"), Rutgers University, and the Aspen Institute Center for Business Education's ("Aspen") CasePlace.org. In 2016 Kelso Fellows, both new Fellows, and some funding for prior Fellows to expand their initial work is to be at $85K, $10K more than in the 2015 budget. While the 2016 Kelso Fellows and posting of "Requests for Applications" were funded in 3rd quarter 2015, the 2017 Fellowships also will be funded 3rd quarter 2016. The Kelso Fellows for 2016 – 2017 will be soon announced. EOF is the largest underwriter of Kelso Fellowships.

  • Edmunson Scholarships: In FY 2016, funding for the oldest EOF project, the Edmunson Scholarships are proposed to be $20K. Historically, the funding for the scholarships has been $15K for 12 scholarships; $1,250 per scholarship.

    In a recent EC meeting it was consensus that the number of scholarships remain the same but each be increased to $2K.

    In recent years the number of applications for scholarships has fluctuated from a low number of 8 applicants to a high of 19 applicants. The reasons for such fluctuations are random such as the amount of money being offered no longer viewed as attractive, versus the amount of time needed to complete the application. Therefore, the thinking behind increasing the scholarship amount is (1) the number of companies applying for the scholarship would increase due to the amount of money being offered per scholarship being more attractive and (2) the level of scholarship money could also offset travel and lodging expense for attendance at The ESOP Association's Annual Conference or the Employee Owner Retreat, as well as payment for registration fees at these national meetings.

  • January 2016 Mid-Year Kelso Symposium: The Mid-Year Symposium was held in New Brunswick, New Jersey January 10th – 12th, 2016 having its highest attendance since inception. The new Dean of the Rutgers School of Management & Labor is James Hayton. Dean Hayton was impressed with the thoroughness of the program and its large attendance. EOF is the largest underwriter of the Mid-Year Kelso Symposium. This Workshop is partially underwritten by a $25K contribution to EOF by Menke & Associates that is a pass-through by the Foundation to Rutgers. These funds were sent in September 2015. EOF pays overhead for attending Kelso Fellows and the FY 16 budget proposal anticipates EOF paying more general overhead in FY16. EOF budgeted $40K in addition to the Menke pass-through. The 2016 contribution was paid 3rd quarter 2015, and in 2016, the contribution for the 2017 Kelso Symposium will be made in 3rd quarter 2016 as well.

  • Beyster Symposium scheduled for June 2016: The Beyster Symposium was held in LaJolla, CA in 2015 and $45K was budgeted for this Symposium. In 2016 EOF budgeted $55K. EOF is picking up more of the overhead for the Symposium of Rutgers Fellows.

  • Aspen Institute's Center for Business Education: The Center, or "CBE" is a section of the famed Aspen Institute which EOF helps fund through the FED, CasePlace.org, which houses the Curriculum Library of Employee Ownership ("CLEO"), the single greatest repository of materials, research, etc. in the world on employee ownership. EOF budgeted $5K for 2015, and the same amount budgeted for 2016.

  • Employee Benefits Research Institute ("EBRI") / ESOP Data Set Project: The purpose of this project is to develop account balance data on thousands of individual ESOP account balances. Based on the premise that the NCEO could obtain the "green light" to begin a major collection of data about individual account balances to provide EBRI, as is done for 401(k) accounts, EOF budgeted $60K for this project. On May 7th a meeting was held with representatives from the NCEO, EBRI, President Keeling and five TPA firms with a significant number of ESOP clients to provide individual account data to EBRI in the thousands. After May 7th, however, a couple of firms raised new doubts of their participation. The project still has not moved forward, but in late December NCEO Director Rodgers assured President Keeling the project would be done in 2016. This EBRI project requires three years of data to be credible.

  • Interim Rutgers / Stanford Database: In the interim, Dr. Blasi and his cohorts at Rutgers have tentatively structured an "interim" data base project to collect at least 5,000 to 10,000 points of data from ESOP companies while President Keeling contacted over 50 ESOP companies about participating by having employees of the companies fill out an electronic survey. Only 10 or so have given a tentative "Yes, we will have our employees participate." Plus, the Rutgers directed project has run into delays, and Dr. Blasi says it may be done in 2016. If so, the EC has to decide to amend the budget to add $15K for the project specifically, or fund it from the contingency line of $20K.

  • National Center for Employee Ownership ("NCEO"): There are three projects that the NCEO is interested in doing that NCEO staff director Loren Rodgers mentioned at a joint TEA / ESCA / NCEO leadership meeting. General descriptions of these proposals accompany this document. At the recent EC meeting it was felt that proposals in a formal fashion containing more detail were needed and should be requested thereafter. EOF did fund one of the three proposals, $10K for the Pennsylvania Employee Ownership Center.

  • Contingency: This fund traditionally covers costs that unexpectedly arise such as unanticipated research and project opportunities. In FY 15 the contingency was $30K.

    In FY 15 EOF paid $2,629 for the New York City Worker Cooperative Conference's police security, and $500 for the NCEO to update the GSS2014 data on job loss by employee owners' impact on the U.S. Treasury in comparison to job loss in conventionally owned companies.



  • UPENN/CEO Project – Meetings' Overhead: The CEO program, "Leading In An Ownership Setting", will again be conducted in two separate sessions, the first being scheduled for July 10 - 15, 2016 and the second FY 16 session is scheduled for December 4 – 7, 2016. EOF is committed to the program and continues to market the program. Revenue for the 2015 program is $66K to date and $61K paid in expenses. There is a possibility 2016 will result in a negative. The goal is for the program to break even.

  • Employee Owners' Retreat ("EOR"): This program has dwindled to one meeting a year. As usual, even with less than 20 attendees (only 16 in 2015), it should be neither a gain nor loss, in August 2016.


Increase in Operations Costs:

This is spending that has traditionally been budgeted to pay for the independent contractor dedicated to development, and overhead for national fundraising, letterhead, some IT overhead, and so on. The proposed $70 K increase in FY16 is to pay for website redesign and/or upgrade, the communications and brand audits that focus on the Foundation, the Foundation's letterhead, and expenses of meetings that a hotel may run through the Association. If there is a significant shortfall, consideration could be given to having the Association pick up the overhead, or tapping reserves.

EOF's website, dataset, "looks", or some call it key elements of the "brand", all date ten to fifteen years back at a time when EOF resources were negligible. SP V emphasizes EOF being the prime Association entity for outreach to not only the ESOP community, but to the non-ESOP world, in order to increase employee ownership in America. Per SP V, a communications audit is being done. It may be, or probably will, make recommendations requiring significant expedition to modernize EOF's communications and image in today's world of cyberspace and social media.

Also, steps will be taken as an outcome of a communications audit to upgrade all EOF communications – primarily the website. Cost may vary with issues of "timing" and RFP responses.

Also, a brand audit will be done in FY 16, and its costs will be part of the operations spending.

Conclusion: Following is a FY 2016 Budget for EOF and a FY 2016 projects budget.


Approved FY 2016 EOF Budget
(amounts in thousands)
  FY 2016
  Contributions 300
  Chapter transfers / fundraising 110
  Meetings 75
  Total revenues 485
  Development 50
  Meetings 75
  Projects 325
  Operating 210
  Total expenses 660
Net Before Investments (175)
Investment income 40
Net income with investments (135)


Project Detail: (amounts in thousands)
  FY 2016
Kelso Fellowships 85
Kelso January Symposium 45
Beyster Symposium 55
Aspen CBE 10
Edmunson Scholarships 24
Interim Rutgers/Stanford database -0-
Contingency 20
Total Projects $329

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