NERFA Response to the Online Petition With the approaching NERFA Board of Directors elections, we want to provide the Community with information to aid in your decision making. It is only now that we can respond in detail to the online petition that has been circulating regarding current NERFA leadership. Upon receiving the petition, the Board conducted interviews and fact-checked the allegations described there. We hope this response helps to clarify the situation as of this date. Overview: From A Community to A Sustainable Non-Profit NERFA began as an organization created and administered by a dedicated founder and run by a group of people who donated their services out of love. While they were sometimes compensated, they tirelessly gave their time and expertise. Generally, Board members were recruited from respected and trusted associates and Board Meetings were generally held once or twice a year. The focus was on the tasks at hand: creating a successful yearly conference, occasionally expanding to try new programs (like Young Folk), and keeping NERFA viable. NERFA was sometimes informal in its organizational approach, and there were few official structures, policies, and procedures. The NERFA Board that inherited this beautiful endeavor in 2018 was filled with loving, long-time contributors including Michael Kornfeld, Ethan Baird, Justin Nordell, Barbara Shiller, and Jess Wrubel. During these last five years, NERFA has worked to blend the warmth of our tradition with structure, transitioning to a sustainable non-profit administered by a dedicated volunteer Board of Directors, with a paid staff. We are often asked about this process. Namely, it required: The recruitment of board members with specific skills needed by the organization The development of formal policies/procedures demanded of nonprofits. It is hard work, often emotionally draining, and (as with most non-profits) board turnover can be high. Here are just some of the changes that have occurred as we as we’ve evolved:: Transitioned to monthly meetings of the Board of Directors Created a committee structure for governance, financial management, fundraising, program development as well as accessibility and diversity-focused initiatives Examined the staffing needs of the organization and hired an Executive Director and a team of part-time employees to provide year-round online programming, in addition to our conference Developed standard policies and procedures essential for a non-profit organization. These include policies on conflict of interest, whistleblower protection, and record retention. Developed a fiscal management handbook, creating an onboarding packet for new board members, and formulating a detailed description of board roles and responsibilities Widened our demographics, consciously reaching out to create stronger connections across our region. For example we have created a partnership with Folk Music Ontario creating opportunities for cross organizational growth Increased our scholarship program to promote diversity Developed relationships with sponsors, gaining access to support and equipment needed by NERFA Successfully raised over $20,000 with our first major fundraiser since the pandemic Weathered the pandemic, providing a virtual conference and NERFA 365, year-round educational peer groups and professional development opportunities to bridge the time until we could be together again Moved the Conference to a new location, creating an opportunity for showcasing in a famed venue, and put on two conferences. LET’S ADDRESS YOUR BIGGEST CONCERNS ONE BY ONE: IS NERFA DELINQUENT IN MEETING TAX DEADLINES? NO. The Board has filed our annual Return of Organization Exempt from Income Tax (Form 990-EZ) on time and shared with FAI in a timely fashion since 2020. WHAT ARE OUR ACCOUNTING PRACTICES? NERFA’s financial records comply with GAAP (Generally Accepted Accounting Procedures). Specifically, all expenses are accounted for with receipts, donations are recorded and acknowledged and income for the conference is credited only when the conference occurs (and is treated as a liability prior to the conference). HOW DOES NERFA ENSURE THAT BOARD MEMBERS OR STAFF MEMBERS DO NOT BENEFIT IN ANY INAPPROPRIATE WAY FINANCIALLY? Facing the cancellation of the Conference in 2020 (the Conference is our primary source of income) and concerned about whether an in-person conference would be possible in 2021, the Board sought solutions so that NERFA could survive the pandemic. The Board unanimously enlisted Ethan Baird to transition from a board member into the sole role of Executive Director over six months. A board of directors is responsible for hiring and establishing compensation for the executive director that is reasonable and not excessive, but also enough to attract and retain the best possible talent to lead the organization. For most of 2021, Ethan did nearly all the work implementing NERFA 365 over long hours of creating and editing video content, creating a necessary standardized data retention infrastructure for NERFA, and a publicity campaign for new programming. For his work, Ethan was paid $1,250 per month (an amount similar to what NERFA paid our clerical worker in FY 2017-18). In 2021, with the pandemic continuing, the Board contemplated producing a virtual conference, but found that the costs of hiring an outside company to create the infrastructure required were wildly prohibitive. At that time especially, these skills were at a premium. A single-day virtual conference, complete with presentations and virtual breakout rooms on average priced out close to $25,000. The Board asked Ethan to propose a plan for NERFA to create a four-day virtual conference “in-house”, including the costs of purchasing software and hiring additional staff. Ethan proposed that his company, Tribal Mischief, which was already working with the FAR-West region on their conference, could produce an event at a fraction of the cost that an outside company would charge. In addition, Ethan offered to provide NERFA with some protection against loss by accepting a percentage of the income from the Conference rather than NERFA paying Tribal Mischief in full in advance. This meant if NERFA did not meet expectations for registration, Tribal Mischief would assume a sizable portion of the financial burden. DID TRIBAL MISCHIEF RECEIVE A “WINDFALL” FROM NERFA? NO. The total payment to Tribal Mischief for creating and producing the entire 2021 online conference was $17,866. The last $4,666 was only paid out after the successful
