Springfield Business Journal_2021-03-01

22 · SBJ.NET MARCH 1-7, 2021 FROM THE COVER “Even when they were displaced, and their job prospects and summer intern- ships were drying up, they stayed re- ally focused on their work,” Jarosh said. “They transformed what they were doing in communities, and we transformed how we worked with them.” All Enactus programming moved on- line and new virtual programs were add- ed to Enactus’ profile. In the summer, Enactus introduced a virtual cultural exchange hosted by The Aspen Institute, an international nonprofit focused on the creation of an equitable society. Students in the United States and Mo- rocco worked together to solve social is- sues that exist in both countries while learning about each culture, Jarosh said. While Enactus re- ports overall student participation is up, participation has de- creased in at least two Springfield-area col- leges in recent years. Rowena Stone, sec- retary to the Missouri State University Board of Governors and Enactus team adviser, said the program is currently inactive on MSU’s campus. The program had been struggling for a few years due to leadership turnover with- in the U.S. division of Enactus, leading to criteria revisions and the discontinuation of project partnerships or accelerators, which were project grants available to teams. Stone said MSU teams relied heavily on those funding sources for their projects. J. C. Walker, department chair of busi- ness, accounting and economics at Ozarks Technical Community College, said OTC has not had an active Enactus team for the past two years. Evangel University spokesperson Erin Hedlun said the university’s chapter is still active and popular among students, especially in the business department. As the pandemic hit, Jarosh said Enac- tus leaders were concerned about the or- ganization’s future. According to nonprofit ratings site Chari- tyNavigator.org, Enactus has a 75.9 score on a 100-point scale based on fiscal 2019 data, the most recent available from IRS tax filings. The organization’s fi- nancial score is 65.87 on a 100-point scale. Enactus’ fiscal 2019 revenue was nearly $5.1 million, while to- tal functional expenses were almost $8 million, giving the organization a finan- cial deficit of approximately $2.8 million, according to the site. Jarosh said the downward trending financial rating was expected as a result of the organization’s recently completed multiyear reorganization A key part of the plan, started in 2016 when Jarosh came on board, was restructur- ing the organization’s budget. Enactus pre- viously reported operations in five countries in its financials. The restructuring moved four country opera- tions’ financials to the organization’s independent affiliate network of 35 coun- tries, leaving only the U.S. branch of En- actus and the global headquarters report- ed in U.S. finances. “That restructure meant that those country operations’ budgets no longer rolled up into the Enactus budget, thus an overall decrease in reported revenue,” Jarosh said. “That decrease, combined with the debt that Enactus has carried for more than a decade, meant that as we restructured, our finance rating declined, and we knew that would be the case.” The last steps were to pay off debt and establish over $1 million in cash reserves. Jarosh said the organization expects to see its financial rating at Charity Navigator improve once its 2020 Form 990 is filed. Jarosh said the organization’s network- wide revenue is roughly $23 million. Enactus also has set a public goal of reaching 1 million students by 2025. New leadership Several members of Enactus’ Board of Directors make up a search committee tasked with finding Jarosh’s successor. Board member Jim Brennan, managing director of Boston Consulting Group, chairs the search committee. Enactus also has engaged Chicago-based ex- ecutive search firm Spencer Stuart. Brennan said they are still in the early stages of the process. A job description has been developed and the committee and Spencer Stuart are working to identify potential candidates. Brennan said the firm is only assisting to identify candidates and will not be involved in the interview or se- lection process. The president and CEO role was com- pensated roughly $372,000 in 2019 salary and bonuses, according to Enactus’ latest Form 990 on file with the IRS. Jarosh said the transition has been a planned process with the Enactus board. Also in February, Enactus announced the hiring of Christopher Smith as its new chief financial officer. Smith joins Enac- tus after serving as CFO for online giv- ing nonprofit GiveGab Inc. He succeeds Christine Rader, who exited in October. front end so that we have funding to op- erate as we book bands and make sure we have all the artists’ supplies ready and get those accommodations set,” Wagler said. “The most important goal of the Kickstart- er is to really garner community awareness and community support.” The Kickstarter will offer a variety of perks for differ- ent price points, in- cluding all-access passes and branded merchandise. “I don’t want to ask anyone to do free work for this,” she said of the fes- tival bands and artists. “I want this to be a true economic booster and opportunity for people to seek out.” Acquiring sponsors is the next big goal after the Kickstarter. Several connections have been forged, such as Better Block SGF, Locke and Stache Media LLC and the city of Springfield’s Department of Envi- ronmental Services. However, sponsor- ship amounts are yet to be determined as agreements are unsigned, Wagler said. Austin Elliott, co-owner and operations director of video production company Locke and Stache, said his team is producing three promotional videos for MidxMidwst. The first was released Feb. 22, Elliott said, add- ing staff also will film during the festival for a post-event recap video. “We love Springfield, and we love making Springfield a cooler space,” Elliott said. “Any- time events like this pop up that we can help in some way to elevate it to a level of some- thing different, we love getting involved with that. This one was a perfect blend.” Locke and Stache also is a sponsor of the annual Rated SGF Film Festival, which just canceled its event set for this month, according to past Springfield Business Journal reporting. It’s the second cancel- ation amid the pandemic for the festival, which debuted in 2018. Mural connection As one mural-based initiative awaits its debut, another one made its mark in a high-profile downtown space last fall. Dan Malachowski, managing member of Baron Financial Group LLC, is lead- ing the Chroma mural project that has a goal of turning blank walls into canvass- es. Chroma’s first mural was completed in October outside Hammons Field. It features a “Home of the Springfield Car- dinals” welcome sign and several players in action. Malachowski said the five-day project cost under $10,000 and was com- pleted by four artists led by Kansas City artist Phil Shafer, aka Sike Style. While the pandemic has been a chal- lenging time to acquire donations, he said Chroma has raised a little over $20,000 from sponsors. Financial planning firm Heim, Young & Associates Inc. made a $10,000 presenting spon- sor donation for the Cardinals’ mural, he said, while insur- ance company Os- born & Associates donated $5,000. Roughly $5,000 in sponsorships also were raised from Ozark Fence & Sup- ply Co., Ozark Print- ing Co. and A Color Story LLC. Chroma has at least two more murals on tap for the spring, he said. “Both of them will also be downtown. … We’re still working on details for both of them to be sure we have all the i’s dotted and t’s crossed,” he said, declining to dis- close locations or the artists, both of whom have Springfield connections. “They will be within walking distance of mural No. 1.” He estimates the murals will cost less than $6,000 apiece to complete. Looking past September’s festival, Wa- gler said MidxMidwst has plans to eventu- ally become a 501(c)(3) and open a public art residency program. However, the ma- jority of energy from the group, which includes around 15 volunteers, is focused this year on launching the first-time event. “Once that machine gets moving, then we’ll shift to more organizational growth,” she said. “We want the resources to be poured into this so that the integrity of it is good and what Springfield deserves.” Arts: Chroma raises $20K from sponsors Continued from page 1 MCKENZIE ROBINSON A Springfield Cardinals mural organized by street art initiative Chroma is at Hammons Field. 75.9 Enactus’ rating out of 100 on CharityNavigator.org Austin Elliott: Locke and Stache is making promotional videos for MidxMidwst. Dan Malachowski: Chroma has plans for at least two more murals this spring. Enactus: Springfield nonprofit sets goal of 1M students by 2025 Continued from page 1 They transformed what they were doing in communities, and we transformed how we worked with them.” —Rachael Jarosh Enactus