Financial Literacy Taking Ownership of the Future by mll78346


									Financial Literacy: Taking Ownership of the Future

By Laurence ―Lon‖ O’Neil, SHRM President & CEO

Today’s workplace issues are broader than ever, involving topics that were once perceived to be the
responsibility of the individual, family, society or government. Now, HR professionals are involved in a
wide variety of topics that impact the productivity, well-being and retention of employees – from
commuting services to family counseling, from child care to fitness and wellness.

As many workers and their organizations continue to recover from the financial downfall that began in late
2008, one workplace issue is in need of a more prominent voice – financial literacy.

April is National Financial Literacy Month, and it’s a fitting time to say more must be done.

Teaching financial literacy is not just a societal imperative; it’s a workplace imperative. Employers have a
vested interest in having financially capable employees. Workers who are confused or stressed about
money spend an average of 20 hours per month of work time on personal financial problems, and tend to
have more work-related accidents and health problems.

From an HR perspective, educating employees about employer-provided benefits and retirement options
are not sufficient. We also need to be aware of broader issues, such as managing debt. By investing in
financial literacy programs, organizations can reduce turnover, limit money-related distractions (that can
account for as much as 10 percent of an HR professional’s time), and increase employee engagement
and loyalty.

Many SHRM members are already sponsoring educational programs in their workplaces. SHRM also is
playing a role on this issue thanks to the efforts of our immediate former Board Chair, Janet Parker,
SPHR, who was appointed to the President’s Advisory Council on Financial Literacy.
―Now more than ever, financial literacy is critical for everyone, no matter their age, income or
background,‖ Janet told the Council.

Among its recommendations, the Advisory Council has called for the creation of financial education
classes from K to 12, and a requirement that college students take a financial literacy course before
applying for student loans.

HR can continue to make an important contribution. Since financial education needs to be tailored,
targeted and delivered in a safe setting to people with different needs, the workplace is an excellent way
to deliver information about the importance of:

   Savings and how it allows people to reach life goals such as home ownership and higher
    education, or to cope with an unexpected event;
   Retirement planning because people are living longer, health care costs are rising, and
    workers are expected to take more individual responsibility;
   Credit counseling and debt management as the level of consumer debt continues to
    increase; and
   Protections for consumers and investors because a vibrant economy cannot afford to have
    its people lose confidence in the marketplace.

SHRM is currently creating a compilation of successful financial literacy programs and resources that will
help our members know what’s available – and what’s right for their organizations. We encourage you to
consider how your company can make a difference.

By helping employees take greater ownership of their financial future, we can help ensure a more secure
future for our organizations and the nation.
Learn! Engage! Network! Invest!

Promoting the 2010 SHRM Annual Conference & Exposition

The keynote speakers have all been confirmed, and the impressive line-up is creating a
“buzz” in the HR community. Steve Forbes. Al Gore. Panel moderated by Angelia Herrin.
Marcus Buckingham. More than 150 concurrent sessions!

That “buzz” is just one part of a multi-pronged communication plan. Your chapter or state
council also plays a big part, and we want to provide you with the tools you’ll need to
promote attendance at the annual conference to your members in print, via e-mail, on your
web site, and at meetings and events.

As you’ve read through the conference materials, you may have noticed the use of colorful
blocks and powerful action themes: Learn. Engage. Network. Recertify. Invest. They really
define the conference attendee experience.

Currently, .gif and .jpg graphics are available on the VLRC site in the Marketing Section
accessible from "Resources for Chapters" and "Resources for State Councils." In addition to
widgets for personal use, you'll find graphics that rotate and are great for use on your
website. Additional sizes are available. Graphics may also be used in print. If you don't see
a size to meet your needs, let your Regional Administrator know.

During December we featured the "Learn." theme, and “Engage.” was added in late
January. During February, “Invest.” was added, and during March “Network.” will be
available. The themes will continue to change. Please check often for new themes that can
be downloaded for use in keeping your promotions fresh.

A great way to “lead the way” is to share the conference message on SHRM’s Official
Channel on YouTube. You may share this link with others in your chapters or on your state
councils by embedding it in your online communications. Click on the main pod and play the
video. And, while you are there, visit the other recent videos about the conference. Future
plans include adding messages from your colleagues on why they’re attending this year’s
conference. Check out the site often.

If you would like copies of the full conference brochure, please contact your Regional
Administrator. Allow ample advance notice so that your request can be filled.

Chapter and state council leaders are encouraged to refer to Section 3 – SHRM Affiliate
Support of their respective 2010 SHAPE Planning Workbook. The aforementioned resources
and tools should provide assistance in fulfilling requirement 3.1. If you have questions,
please contact your Field Services Director.
Is Your Chapter or State Council in Compliance with Current IRS 990-N Filing Requirements?

Does your chapter or state council hold 501(c)(3) or 501(c)(6) status with the IRS, and do your
annual gross receipts normally fall below $25,000? If so, be sure that you file an IRS 990-N Form each
year, as failure to report could jeopardize your tax-exempt status.

While SHRM does not serve as legal counsel for its chapters or state councils, we want to ensure you
are aware of this important information. Here is a quick overview of the annual filing requirements:

What is the 990-N Form?
IRS Form 990-N (also known as the e-Postcard) is a very simple electronic form that must be filed with
the IRS once a year. It was instituted for the particular purpose of requiring small 501(c) organizations
(who before never had to identify themselves to the IRS because they normally had annual gross receipts
of $25,000 or less, and therefore did not have to file the annual Form 990) to identify themselves.

When did the 990-N requirements take effect?
As communicated in the April 2008 edition of LeadersEdge, the Pension Protection Act’s Form 990-N
filing requirements took effect for tax years beginning on or after Dec. 31, 2006. Prior to this,
chapters and state councils did not need to file an annual Form 990 with the IRS if their annual gross
receipts were normally $25,000 or less. However, with the enactment of the 2006 law, chapters and
state councils whose annual gross receipts are normally $25,000 or less are now required to file an
annual Form 990-N.

How do we know if this filing requirement applies to our chapter or state council?
Form 990-N specifically applies to small 501(c) organizations that are exempt from filing the regular
Form 990 on the basis that they normally have annual gross receipts of $25,000 or less. Since most
chapters and state councils qualify for the IRS tax-exempt status under either Sections 501(c)(3) or
501(c)(6), and unless you’ve opted to file a complete Form 990 or Form 990-EZ, you are required to
file Form 990-N.

Our chapter/state council does not have an IRS determination letter. Are we still required
to file Form 990-N?
Yes. This filing requirement applies regardless of whether the chapter or state council has a
determination letter from the IRS.

[NOTE: A 501(c)(3) organization is not tax-exempt unless it files IRS Form 1023 and obtains an IRS
determination letter confirming its 501(c)(3) status. While 501(c)(6) organizations are not required
to have an IRS determination letter, they must be able to demonstrate that they have been operating
as a tax-exempt organization. As a result, many 501(c)(6) chapters and state councils do not have
such a letter. However, since filing of Form 990-N increases the likelihood that the IRS will contact the
chapter or state council to require that it seek such a determination letter (or face an IRS audit,)it is
typically advisable to obtain a determination letter to remove any doubt on the issue.]

What is the annual filing deadline?
You must file by the fifteenth day of the fifth month after the close of the tax year, and the
requirement applies to all tax years which began AFTER Dec. 31, 2006. Chapters or state councils
that operate on a calendar year, and normally have annual gross receipts of $25,000 or
less, must file Form 990-N for your 2009 tax year on or before May 15, 2010.

What happens if we fail to file Form 990-N?
Failure to file the Form 990-N for three consecutive years will result in revocation of the
chapter or state council’s tax-exempt status.

Where do we go to get more information or advice about Form 990-N?
Chapters and state councils are strongly encouraged to consult with a local legal and/or accounting
professional if you have questions or concerns. Additional information about IRS Form 990-N,
including links to the electronic form, can also be found on the IRS web site at:,,id=169250,00.html
SHRM Foundation Completes Successful 2009 Annual Campaign
By Laurie Perry, Development Manager

The SHRM Foundation is very pleased to announce that we reached—and exceeded—our fundraising
goals in our 2009 Annual Campaign. With your outstanding support, we raised a record-high $745,949
from SHRM chapters, state councils, corporations and individuals. This money funds educational
resources, reports, scholarships and academic research grants that advance the knowledge base of the
HR profession. In a year that saw the stock market bouncing up and down, shaky consumer confidence,
and flat personal income, this level of fundraising success is truly a remarkable accomplishment—thank

We are truly grateful for the ongoing financial support we receive from SHRM chapters and state
councils. Your efforts on behalf of the SHRM Foundation truly make a difference. Chapters and state
councils have maintained their strong levels of support, contributing nearly $462,000 (62% of the Annual
Campaign total). More than 180 chapters (about one-third of all participating SHRM chapters) increased
their donations over 2008 levels, including 40 who increased their donations by $500 or more; in
addition, 25 state councils increased their donations!

The Foundation’s “Honor Roll” brochure, which lists all donors and highlights our programmatic
accomplishments, will be released this spring. In the meantime, here are a few “All-Star” highlights:

Top 10 States (overall giving = chapters + state council + individuals)

       Florida                  $51,159
       Kentucky                 $40,012
       North Carolina           $38,108
       Virginia                 $37,323
       Alabama                  $31,154
       New York                 $29,677
       Texas                    $28,416
       New Jersey               $24,506
       Arizona                  $22,665
       Michigan                 $20,129

Top 10 Chapters (giving from the chapter)

       Raleigh-Wake HRMA (NC)                    $11,393
       HR Tampa (FL)                             $ 7,700
       Bluegrass SHRM (KY)                       $ 6,391
       Tri-County SHRM (KY)                      $ 6,356
       Louisville SHRM (KY)                      $ 5,000
       SHRM-Long Island Chapter (NY)             $ 4,112
       HR Collier (FL)                           $ 4,032
       Triangle SHRM (NC)                       $ 4,017
       Dallas HRMA (TX)                         $ 3,930
       Mobile SHRM (AL)                         $ 3,812

Top 10 Chapters (increased giving over 2008 donation)

       Triangle SHRM (NC)
       Raleigh-Wake HRMA (NC)
       SHRM-Topeka (KS)
       Columbia Basin (WA)
       Apple Valley HRA (WA)
       Greater Cincinnati (OH)
       SMA of Greater Phoenix (AZ)
       Lake Sumter SHRM (FL)
       Greater Ann Arbor SHRM (MI)
       Imperial Calcasieu (LA)

Top 10 Chapters (chapter gift divided by number of chapter members)

       Central Arizona HRMA (AZ)                $40.00
       Montgomery County SHRM (TX)              $33.31
       Senior HR Executive Council (AZ)         $26.67
       Apple Valley HRA (WA)                    $25.35
       HR Collier (FL)                          $24.74
       Lake Sumter SHRM (FL)                    $24.33
       Foothills of Georgia (GA)                $24.23
       Bluegrass SHRM (KY)                      $23.41
       Tennessee Valley Chapter SHRM (AL)       $22.73
       Rowan County HRA (NC)                    $22.68

Top 10 State Councils (giving from the state council)

       Alabama SHRM State Council               $9,250
       Garden State Council SHRM                $9,134
       Arizona SHRM State Council               $8,975
       HR Florida                               $8,345
       Maryland SHRM State Council              $6,500
       Oklahoma SHRM State Council              $6,230
       North Carolina SHRM State Council        $5,215
       Kansas SHRM State Council                $5,139
       Arkansas SHRM State Council              $5,041
       Kentucky SHRM State Council              $4,858

Top 10 State Councils (increased giving over 2008 donation)

       Maryland SHRM State Council
      Utah SHRM State Council
      Colorado SHRM State Council
      Arkansas SHRM State Council
      Illinois SHRM State Council
      Minnesota SHRM State Council
      Alabama SHRM State Council
      Texas SHRM State Council
      New Hampshire SHRM State Council
      Garden State Council SHRM

Thank you again for your support of the SHRM Foundation! Our 2010 Annual Campaign is now
underway with a goal of raising $745,000 again this year. Please see for more
information about our programs and to learn how you can help support our activities again this year.
Strategic Management Now Known as “Strategic Business Management”
By Alexis Chng-Castor
HR Certification Institute

With the New Year come new changes. This year, the Strategic Management category of the
Professional in Human Resources (PHR®) and Senior Professional in Human Resources (SPHR®)
Body of Knowledge gets a new name. It is now known as ―Strategic Business Management.‖ The
HR Certification Institute has added the word ―business‖ to the title in hopes of helping certified HR
professionals understand that these recertification activities are HR responsibilities that fall
OUTSIDE of traditional human resource functions and are more business-related in nature. No
changes have been made to the PHR and SPHR Body of Knowledge. This is only a name change.

The SPHR certification requires only 15 recertification credit hours out of the total 60 through
strategic business management activities. The importance of this category is continually increasing
as business leaders of companies large and small look to senior HR professionals to quantify and
justify their investments in human capital. In fact, in a recent study, 68% of SHRM members
indicated that most of their CEOs and C-suite executives view HR professionals as a major
part of their business successes. 56% of SHRM members also revealed that their C-suite
executives see HR as “major decision-makers” in their organizations1.

These findings demonstrate the importance of senior HR professionals understanding their strategic
role in the organization, and having the strategic business management area of the SPHR
certification validates that senior HR professionals understand the role of HR in their organization’s
strategic long-term plans and goals.

At times, SPHR certificants are challenged with differentiating between an HR activity that will earn
strategic business management credit hours and an HR activity that earns only general
recertification credit hours. To help define the difference we have created a new strategic business
management flier.

Once you have completed your strategic business management activity, refer to these few tips
before submitting your recertification credits on your recertification application:
 Detailed activity description—Include enough detail in your activity description for the
    application reviewer to make a determination on whether the activity qualifies for strategic
    business management credits.
 Clear, definitive title—Titles alone do not provide enough information for the reviewer to make
    a determination. Likewise, including the word ―strategic‖ does not mean that the activity qualifies
    for strategic business management recertification credits.
 Recertify early—In the event a submitted activity gets rejected, this will allow you enough time
    to submit an alternate activity for this category.

Tweet us your suggestions on ways we can improve our new flier or better explain the strategic
business management category at or leave a message for us on
our Facebook page. You can also e-mail us at

 SHRM Internal Membership Message Development Survey, January 2010, Performed by Clarus Research Group
for SHRM.

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