While the hybrid Memorandum of Understanding between the Safe Families Alliance and 1000 Generations served us very well in growing from a small number of employees to our current reality, our board has now reached the consensus that shifting to the Affiliate model makes sense for the team in WI. Most notably, this means shifting the following in house:
- HR & Payroll
- Health Insurance
- Liability Insurance
This conversation has been started with National. Most recently, Paul and I communicated with Dave that we would put together an official proposal on the transition after consulting the board at this meeting.
The above workbook details the following:
- The Tiered Pricing Breakout shows how the affiliate fee would be calculated. This is a new system that they are implementing with existing affiliate partners.
- The Base Annual Cost Comparison illustrates that an estimated $35,000 will be saved in the first year of the change, before factoring in any transition-specific costs.
- Transition Options for consideration, factoring in:
- Internal (WI) costs of changing, estimated here at $10,000.
- An option to offer a one-time transfer fee (I used $25,000 as a starting point) to National. This could prove an important gesture and would cushion the blow of revenue lost for National.
- An option to offer to pay a flat fee of $50,000 per year for 5 years - an overpay of about $10,000 at 1.8M in expenses. Again, this gesture could smooth things over, with the (minor) added benefit of simplifying the process.
Proposed Next Steps
- Firm up quoted costs on insurance and payroll needs.
- Consult more thoroughly with a few affiliate partners.
- Do a board call with Dr. Dave Anderson to hear his take before making our final decision.
- Finalize and submit a transition proposal.