多多直播 Foundation employees to continue co-employment relationship with 多多直播 under separate budget reporting structure
March 19, 2021
The exploration into separating 多多直播 Foundation employees from the University of Alaska budget has concluded, and the result is that 多多直播 Foundation staff will retain their current employment status. Outside legal counsel from Stoel Rives, received last week, concludes that current and future 多多直播 Foundation employees can continue in a co-employment relationship with the university, and maintain 多多直播 benefits, even though their employment starting in FY22 will be reported solely through the 多多直播 Foundation. The FY22 budget approved by the Board of Regents includes this proposal. This change in reporting has no bearing on the continued relationship between the Foundation and 多多直播.
Since October 2020, an executive team led by Michelle Rizk has been charged with reviewing the opportunity to transition 多多直播 Foundation employees off of the 多多直播 System budget and separating the 501(c)(3) organization from the 多多直播 System reporting. Dennis McMillian was engaged to work on details necessary to implement this transition with a focus on providing Foundation employees, Board of Directors, and other stakeholders with an outside and neutral contact to raise their concerns and questions. Stoel Rives provided legal guidance on any possible impacts to employee benefit plans and programs. The intent of the transition was to maintain existing Foundation employees without job loss or disruption in benefits.
Two factors drove this review. First is that a major criticism of 多多直播 is the size of administration, especially in the system office, and the practice of counting 多多直播 Foundation employees as 多多直播 System Office employees added to that perception. A second factor is that 多多直播 programs are in greater need of philanthropic support, and the 多多直播 Foundation actually needs to grow to support increased fundraising capacity across the 多多直播 system. The 多多直播 Foundation is largely self-funded and provides services on behalf of all parts of the system. As a result of the analyses and discussions over the past four months, both the Foundation and 多多直播 are better positioned to work together to enhance the seeking, securing and stewarding of philanthropic support for 多多直播A, 多多直播F and 多多直播S.
The System Office has submitted the FY22 budget to the State which includes removing the Foundation鈥檚 budget from the 多多直播 budget. The State is reviewing the change and assuming they accept it, this achieves the first objective of the transition proposal. Because 多多直播 will no longer include the Foundation鈥檚 budget, Foundation employees will no longer be reported under the System Office. Instead their budget, including employee compensation, will be reported through 多多直播 Foundation accounting and reporting.