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Businessman • Investor • Journalist • Bestselling Author • Financial Commentator • Star of the hit show “Shark Tank”

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WORKPLACE GIVING The Impact of Helping Others



CELEBRATING 10 YEARS The Roar on the Shore® motorcycle rally marks its milestone anniversary in 2016 as one of fastest-growing charitable motorcycle rallies in the United States.






















Executive Editor Karen Torres Contributing Writers Denise Elliott Michael Parkinson, M.D. Jamie Schumacher

Feature Photography Casey Naylon Karen Torres Christine DeSantis Additional Photography iStock Photography Brad Drumheller

John Kearns, executive vice president of Sales & Marketing at Erie Insurance, a key sponsor of Roar on the Shore®, shares why the company is proud to support this annual charitable event and the power of giving back.

READ ON THE GO! For the most current Business Magazine updates, visit

How small changes can produce big results when it comes to a company’s health and wellness. Michael Parkinson, M.D.



What nonprofit organizations should do to help ensure that board members understand their legal duties and obligations. Jamie Schumacher


Design, Production & Printing Printing Concepts Inc.


Advertising Sales David Thornburg 814/833-3200

Guest columnist Denise Elliott of the McNees Labor and Employment Practice Group explains what employers should know about the Medical Marijuana Act.

On the Cover: The Roar on the Shore® charitable motorcycle rally celebrates 10 years of rides, rock and more. For full story, see page 4.

Mission Statement: The Manufacturer & Business

Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors

Manufacturer & Business Association 2171 West 38th Street | Erie, Pa. 16508 814/833-3200 or 800/815-2660

© Copyright 2016 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660. • JULY 2016




The impact of workplace philanthropy on charitable organizations and the people they serve cannot be understated. Workplace giving campaigns generate more than $4 billion annually — enabling charitable organizations to serve communities throughout the nation. And, according to recent studies, these giving programs can also help an employer’s bottom line.

Why It Matters

Research suggests companies that engage in corporate giving have more engaged employees, lower turnover rates and better connections with customers. And it’s not limited to financial donations either. Many employers use employee volunteer programs to foster a more personal link to the community by sharing their time with organizations in need. According to the study Good Companies, Better Employees, employee volunteer programs can mean: • An improved rating among employees for their employer as a place to work compared to other companies (63 percent saying above average or one of the best, compared to 57 percent before the program was in place). • Increased job satisfaction levels (64 percent fairly or very satisfied among all employees, compared to 62 percent before; satisfaction among volunteer program participants rose to 67 percent). • Increased positive word of mouth among employees about their employer (54 percent saying they would speak highly of their employer, compared to 49 percent before the program was put in place);

• Higher retention rates for employees who participated in volunteer activities than for those employees who did not.

Corporate Social Responsibility Can Also Help Generate New Business and Hiring Opportunities

For example, research suggests that 61 percent of all candidates take corporate philanthropy initiatives into consideration when evaluating a company, and 83 percent of all employees prefer to work for companies that focus on corporate giving. Furthermore, 91 percent of Fortune 500 HR managers surveyed by Deloitte believe that contributing business skills or expertise to a nonprofit organization in a volunteer capacity can further develop an employeeʼs business skills, and 56 percent say that this kind of volunteering is encouraged as part of their company’s development and training program. Workplace giving and volunteer programs can definitely be a win-win for both employers and the communities in which they operate. A more enriched community is more likely to bring further growth and success for all.

Take a Look

In this edition of the Business Magazine, we’ll take a look at some of the ways that employers are giving back. We’ll focus on the 10th anniversary of Roar on the Shore® and how this motorcycle rally has raised approximately $800,000 for charity since its inception, plus the economic impact that spills over to many local businesses leading up to and during the event. In addition, we’ll hear from local employers on why it’s important to support local charitable events and the many nonprofits that are leading the charge to provide the community with valuable programs and services. The Manufacturer & Business Association (MBA), which presents the Roar® each year, along with more than 50 business sponsors, also has the tools and resources to help assist our members with charitable giving and volunteer time off programs. Call the MBA’s HR Services today at 814/833-3200 or 800/815-2660 to get more information about your options.

Cultivate a Culture of Philanthropy! • JULY 2016



CHARITABLE MOTORCYCLE RALLY BONDS BIKERS, BUSINESSES AND COMMUNITY When David Gonzalez talks about the St. Martin Center New Playground Project as the Roar on the Shore® charity for 2016, it’s as if the stars have aligned. “Honestly, it feels as if we won the lottery!” says the Center’s chief executive officer. “It is amazing. It is no secret that the St. Martin Center, Inc. is on the front line of dealing with poverty issues in our community. And, like most nonprofits, it requires ongoing fundraising to keep fulfilling its mission. Partnering with Roar on the Shore® and the resources it brings boosts both our impact to the community and our visibility as a nonprofit organization. The fact that this is the Roar’s® 10-year anniversary makes it extra special.” The St. Martin Center is the most recent in a long line of charitable beneficiaries over the past 10 years. Past recipients include the John Kanzius Cancer Research Fund, Shriners Hospitals for Children – Erie, local Operation Iraqi Freedom and Operation Enduring Freedom veterans and their families, SafeNet’s Big Backyard Children’s Garden, the Flight 93 National Memorial Campaign, the Perry 200 Commemoration, the Boys & Girls Club of Erie, St. Patrick’s Haven, and Erie Homes for Children and Adults’ Project First Step. This year, proceeds from the five-day rally — set for July 13, 14, 15, 16 and 17 — will help pay for a state-of-the-art playground at the St. Martin Center’s new facility on 18th and State Street. The playground is a vital tool and provides the children with a


JULY 2016 •

safe and functional recreation space. It will have an ADA-compliant ramp and activities geared toward children of all ages. “The St. Martin Center New Playground Project is one critical piece in the work of early childhood education and is part of the relocation of our Early Learning Center,” says Gonzalez. “While its value might seem small to some, this playground will be of significant importance for recreation and emotional development of the children who will use it daily.” Overall, the new Early Learning Center will expand to serve approximately 225 children from pre-kindergarten through age 13 every single year. As a result, the new, long-lasting playground will be used by thousands of inner-city Erie children over the years. “We’re thrilled to have Roar ® assist us with this piece of child development and downtown revitalization,” says Gonzalez. As Gonzalez can attest, there are many benefits, beyond monetary donation, to being a Roar ® charity. One is instant credibility to a project and its organization. Also, it provides exposure with the private sector in ways that were not available previously, which is extremely valuable to organizations with limited marketing dollars. “We feel it’s extremely important to the Erie community to have an annual charitable event like Roar ®,” notes Gonzalez. “Roar ® contributes so much to this area through its entertainment value, tourism dollars and

charitable benefit. It’s so important to have something like this shine such a positive light on our wonderful region. It helps to bring attention to the many valuable, charitable efforts in our area, as well. Most importantly, besides the ‘fun’ aspect, it promotes a spirit of giving. Spotlighting a valuable Erie nonprofit each year and encouraging folks to get to know the local nonprofit scene and to give back; this cannot be beat. Roar ® has done all of this and continues to into its 10th year.”

A Rear-View Look

So much has changed since the idea of Roar ® began. Today, it is one of the fastest-growing charitable motorcycle rallies in the United States with more than 165,000 visitors expected to gather in downtown Erie, Pennsylvania for five days of motorcycles, music and more. Seth Tuttle, the rally’s first Roar ® official chairman, recalls the original group of organizers and how their vision of the event developed and the excitement that they had. “To watch the MBA, their staff, Mayor Sinnott and all the departments of the city work together seamlessly was inspiring and a critical factor to the success of Roar ®,” says Tuttle. “To see the event go without a major hitch still is memorable. I remember thinking the week before the event that the weather was going to mean everything and, then, when we rolled out from behind the casino meet-and-greet and saw the thousands of bikes in the parking lot, thinking this event is going to fly! The crowds along the parade route really made the work worth it.”

Tuttle says he has many fond memories of the rally, but what he most looks forward to is seeing the changes that have come about and all the rally goers from across the country. “We have made so many new friends over the years, and to see how large the crowds have grown and the size of the donation every year is always my favorite part of the event,” he adds. Tuttle recognizes the tremendous amount of work that goes into it. The rally requires a year of planning and the support of sponsors, staff, Roar ® and MBA Boards and many volunteers. “The commitment to the success of the event is still impressive,” explains Tuttle. “While there are systems in place, the staff of the MBA and every volunteer really give their all every year, and the exhausted faces on Saturday night show the dedication and commitment they make. To this day, my wife Bev and I try to be the last to leave on Saturday night, and I just take a moment and look around and think about what happened here over the last few days. It is a very gratifying feeling to see what the community has done for the charity of the year! It is always exciting waiting to see how much was raised.”

Fueling the Local Economy

Erie Mayor Joe Sinnott, who is an active member of the Roar ® Board, believes that Roar ® is an important event for the City to support because of its short-term and longterm benefits. “Roar on the Shore® has a great impact on the Erie region, especially our downtown. Each year, more than 100,000 people come to our community to enjoy this event. This results in an extensive economic impact throughout Erie County and is an excellent opportunity to welcome participants from all over the country to experience our wonderful city,” he says. “We find that once people visit the Erie region and see all that we have to offer, they come back again with their family and friends to enjoy our many other attractions.” In fact, each year, Sinnott, also known as “Erie’s Biker Mayor,” leads hundreds of bikers on the Thunder on the Isle: The Mayor’s Ride around Presque Isle State Park, Erie’s crowning jewel. “Roar on the Shore® is a great way to showcase our city and grow our tourism economy,” he adds. “We are very fortunate that the community embraces this event and helps us put our best foot forward for our many guests.” Sinnott also has many fond memories of Roar on the Shore® throughout the 10 years of its existence, and each year seems to

‘Jackyl Fest’ Comes to Roar® Roar® is set to deliver some of the most electrifying entertainment of the summer — and 2016 is no exception. At 9 p.m. July 13, Jackyl returns to Roar® for “Jackyl Fest,” led by singer and 2015 Roar® grand marshal Jesse James Dupree on the Country Fair Main Stage. The chainsaw-wielding, wild and untamed Dupree will unleash his band’s mixture of hard rock, heavy metal and Southern metal that will feature “The Lumberjack’s” famous chainsaw solo. “It’s just a great event, and Jackyl is proud to be coming back,” says Dupree. “It’s the last nice slice of real America.” In fact, Jackyl, which just released its single “Rally” from its latest album “Rowyco”, due out August 5, has struck a two-year deal to perform during “Jackyl Fest” as part of Roar® 2016 and 2017. “We played a lot of events every year, so we wanted to lock it down and let it go so that it becomes a tradition,” says Dupree. “It’s just a natural fit for Jackyl to be a part of Roar on the Shore®.” As the Wednesday night headliner, Jackyl will perform as part of the Fallen Riders Memorial Concert. “I’m humbled to be associated with that, and it is something we take very seriously,” says Dupree. “There is not a more supportive fraternity than the people who ride motorcycles. It is an honor to be a part of that night.” Dupree, for one, has received a lot of support from the biker community since the devastating fire at the Full Throttle Saloon in Sturgis last September. The Jackyl frontman has been a part of its rebuilding and remains positive about the landmark biker venue coming back bigger and better while he’s on Jackyl’s hectic summer tour. “Get a bottle of Jesse James bourbon and make your reservations to stay at the Full Throttle property, and make it out to Roar®,” Dupree tells his Erie fans. “It’s going to kick off a monumental week.” This year’s rally also features free headline performances at 9 p.m. on the Country Fair Main Stage starring Vince Neil, the legendary voice of Mötley Crüe, on Thursday; female hard rock group Vixen on Friday; and, heavy metal phenom Quiet Riot on Saturday. The rally also includes the annual Bringin’ in the Roar® Bike Parade with celebrity grand marshal Paul Teutul Jr., a master bike builder and star of “American Chopper,” who will lead 5,000 bikers in one of the largest bike parades in the country to The Hub in Perry Square.

From top down, Roar’s® headline entertainment includes Jackyl; Quiet Riot; Vince Neil, the legendary voice of Mötley Crüe; Vixen and this year’s grand marshal, Paul Teutul Jr.

Roar’s® 10th anniversary celebration will also showcase the Rock Erie Music Award winners, a new boxing event — Rumble at the Roar®, in cooperation with Bizzarro Boxing Promotions, and special appearance by Ray “Boom Boom” Mancini — as well as 10 scenic rides, Roar® special 10th anniversary edition growlers, food, beer and the rally’s famous wine slushes, as well as more than 80 bike vendors. For full schedule, see • JULY 2016


Showing Their Support Roar on the Shore® is presented by the Manufacturer & Business Association, along with more than 50 sponsors, including: offer a unique and special remembrance. “I think if I had to choose one, it would be standing in front of the crowd in 2012 and announcing that our efforts in 2011 to raise money for the Flight 93 Memorial Fund had made Erie the single largest donor to that cause throughout the entire nation,” the mayor recalls. “It was certainly a source of pride, for me, that this community came forward and gave so generously to something that was so important to this country. It also showed that the Roar on the Shore®, which had started as a humble motorcycle rally designed for the benefit for the community, had grown to something that had a national impact. I was honored to stand before the community that day and present MBA President Ralph Pontillo with the key to the City for his leadership in accomplishing his vision for this event and making such an important contribution.”

Ou sPOnsORs!

A Community Event


Don Hester, the 2016 MBA and Roar ® chairman and president and CEO of MAJR Products Corporation, acknowledges that Roar ® has evolved into a major part of the Association’s community outreach. Since it began, the rally has injected more than $25 million each year into the local economy and contributed approximately $800,000 to local charities in the past nine years. “To me, the Roar ® means giving and helping others — giving the community the opportunity to come together and participate in a variety of events from music to various demonstrations and displays,” he says.

American Flag Sponsor:

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“My hopes are that the Roar ® is a winwin for everyone involved — business, sponsors and individuals,” says Hester. Roar ®, indeed, brings businesses and the community together to show the great things northwest Pennsylvania has to offer.

Fresh From Italy To You!

e It’s Our Own”

For the sponsors, for example, it means supporting our community and local charities — and helping to bring people together to enjoy the beauty of the area. For individuals and organizations, it means the chance to increase revenues through American Flag Sponsor: various fundraising opportunities and bringing in thousands of people who probably wouldn’t be in the Erie area if it wasn’t for Roar ®.

“It’s amazing that thousands of motorcycle riders and tens of thousands of visitors are in downtown Erie every day during the event; people from as far away as California 2016 Roar on the Shore® Bike Rally / 32 and from our neighbors to the north in Canada,” adds Hester. “There are thousands


JULY 2016 •

of bikes to see lined along the streets of every make and model with people of all walks of life having a wonderful time.” Joe Askins, owner of major sponsor OffRoad Express and Indian Motorcycle of Erie, has been a longtime supporter and sponsor of the rally. He, for one, is proud to be a part of something that has become such a major charitable event, economic driver and entertainment venue. “I can tell you as a business owner, we see the positive effects of Roar on the Shore® weeks before the rally, as well as weeks after the event,” Askins says. “I know I’m not the only one. I have had other local business owners tell me that they see an increase in business not just during the event, but also in the weeks leading up to and after the rally. The exciting part for local businesses is the fact that Roar on the Shore® continues to grow and has not reached its economic impact potential.” Over the years, Askins’ dealerships have hosted numerous rides, events, bike giveaways, celebrity meet-and-greets and stunt shows. Yet, the businessman says his favorite part of the rally is the Roar ® bike parade. “There is something magical to see the entire community line the streets with American flags, children waving, smiles and laughter. The parade is for everyone, whether you are on a bike or gathering for a picnic on the route. There is a strong presence of America on the entire route, and that is something that always sticks,” says Askins. “I remember a few years back I had brought bike builders Arlen and Cory Ness in for Roar ®. Arlen has attended bike rallies for the past 40 years and, when we stopped on the parade route, he was truly overwhelmed not just by the amount of bikes, but also by the participation of non-riders celebrating on the route. He told me, ‘You guys have something really special going on with this rally,’ and he hadn’t seen anything like it.” With the rally marking its 10th anniversary this year, Askins says he would like to see more local businesses participate in Roar on the Shore® because it is far more than a bike rally — it really is a community event with endless possibilities. “The community has done a great job supporting this event, and it really isn’t possible without their support,” says Askins. “I would like to thank the entire community on behalf of all the local businesses. Happy anniversary, Roar on the Shore®! I know the best is yet to come.”

You can be a philanthropist for just $25 on Erie Gives! It’s a GREAT Day to help your favorite nonprofits. Tuesday, August 9, 2016 8:00 a.m. to 8:00 p.m. On August 9, visit and donate $25 or more to your favorite nonprofit(s) and a prorated match will be added to your donation. This year, the prorated match has increased to $250,000! New Incentives for 2016 In addition to the match, all participating nonprofits are eligible to receive one of three $5,000 prizes. $5,000 prize to the nonprofit with the biggest increase in number of unique donors $5,000 prize to the nonprofit with the largest percent increase in unique donors* $5,000 prize to the nonprofit with the largest percent increase in dollars raised* * Please note, the base cannot be zero. Therefore, first time nonprofits are not eligible.

Every hour during Erie Gives, 20 Splash Lagoon passes will be awarded randomly to participating nonprofits (value $11,028).

Special Thanks to Our Erie Gives Sponsors!

All elig ib must r le nonprofits egister for Erie Gives b y www.E July 29, 201 6, rie order to, in at particip ate in Erie Giv es 201 6.


The Power of Giving Back

Roar on the Shore® is celebrating its 10th anniversary in 2016. Presented by the Manufacturer & Business Association, along with more than 50 sponsors, the rally features five days of motorcycles, music and more. This year, the annual Bringin’ in the Roar® Bike Parade features celebrity grand marshal Paul Teutul Jr., star of “American Chopper,” who will lead 5,000 bikers into downtown Erie as part of one of the largest bike parades in the country. Here, John Kearns, executive vice president of Sales & Marketing at Erie Insurance, the rally’s parade and photo sponsor, shares why the company is proud to support this annual charitable event. Erie Insurance has been a part of the Erie business community for more than 90 years. How does the company view corporate philanthropy and giving back to the communities in which it operates? Community involvement is in our DNA at Erie Insurance. Supporting local causes with both dollars and effort is the right thing to do — and it’s a priority throughout all the communities where we do business. In 2015, our employees invested 4,644 hours in service projects across our territory. Erie Insurance’s financial contributions last year exceeded $3.7 million, including more than $600,000 in matching funds for employee contributions to nonprofit and educa- tional institutions. Erie Insurance was a major rally sponsor in 2015 and is back again this year. Tell us why you wanted to support Roar® for its 10th anniversary and this year’s charity, the St. Martin Center New Playground Project. Roar on the Shore® supports causes that we care about, that make our community a better place to live, work and do business in. This year, it’s making sure that the children who go to St. Martin’s Early Learning Center have a safe, fun place to play and learn. We also recognize the great opportunity at Roar ® to share our story and motorcycle product with an audience of more than 165,000 riders and bike enthusiasts.

Erie Insurance has been offering improved motorcycle insurance since 2015. Tell us about this coverage and how it has benefited your clients and business so far. With our motorcycle insurance product, riders get the benefit of industry-leading coverage at a competitive price, backed by the exceptional service Erie Insurance and its agents are known for. Coverage is available for customized equipment and accessories to further protect your investment. First-party medical coverage can be added as well, providing additional protection for you and your passengers. We’re in peak motorcycle season now and seeing strong growth throughout our states where we offer motorcycle coverage — Pennsylvania, Ohio, Kentucky, Indiana, Illinois, Wisconsin, Virginia, Tennessee and the District of Columbia. Motorcycle coverage has been a great addition to our product portfolio, meeting the needs of existing customers and for attracting new business. What type of coverage should bikers consider when they look for motorcycle insurance? Liability insurance is required and additional coverages are available to further protect you, your passengers and the investment in your motorcycle. Erie Insurance offers one of the best products available, including options for insuring customized equipment and safety gear and

first-party medical coverage. Erie Insurance is a full-service provider, so you can package your motorcycle coverage with insurance for your car or truck, and your home and business, in addition to life insurance. What are some tips that you’d give motorcyclists to lower their insurance costs and keep them safe? Take safety seriously — both on the road and in protecting the financial well-being of your family and loved ones. Talk to an independent agent representing Erie Insurance. You’ll get personalized service and advice for making sure you have the protection you need. Bundling insurance for your motorcycle, car and home with one insurance company can typically save you money, in addition to other discounts you may be eligible for. Finally, will you be riding in the parade, and what are you most looking forward to at Roar ® 2016? I’m not a rider, though my wife had a motorcycle before we were married. Roar ® brings great energy to downtown Erie. It’s an exciting time to be in the city and to be a part of this amazing event. • JULY 2016


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Things employers can do: • Unlock stairwells and make them more attractive. • Encourage all executives and managers to “take a hike” multiple times throughout the day.

Small Changes Can Produce Big Results Michael Parkinson, M.D., is senior medical director of UPMC Health Plan and UPMC WorkPartners, which are part of the UPMC Insurance Services Division. UPMC WorkPartners provides health and productivity solutions to highperforming companies throughout the United States. When it comes to improving a company’s health and wellness, going small is OK. Many times the small changes that an employer makes can produce major results in terms of encouraging a culture of health and wellness. It doesn’t require major, costly changes to impact the work environment. Small, simple, but visible moves can communicate that employers are serious about improving the health, safety and well-being of their most precious asset — their employees. Because most adults spend more than half their waking hours at work, encouraging healthy behaviors there also increases the likelihood that employees will take those take those improved habits to the home and community. Step Away From the Desk One way to start is to encourage employees to get up and walk away from their desks

more often. Cubicles are a mainstay of many workplaces, and many employees are tasked to spend much of their time in front of computers. If “sitting is the new smoking” (yes, sedentary lifestyle is a major contributor to death and disease in the United States), then getting employees up and moving more needs to be built into each workday. Things employers can do: • Schedule frequent “recesses” throughout the workday emphasizing stretching, walking meetings and brief walks. • Open an attractive break room or a workplace cafeteria to encourage employees to not eat at their desks and to start moving at lunchtime. • Offer standing workstations that have been shown to decrease musculoskeletal strain, improve concentration and increase energy expenditure. • Consider introducing one “swing activity work station” per group of employees to get started if the expense for a total office reconfiguration is unaffordable. Increasing Employees’ Physical Activity The Centers for Disease Control and Prevention (CDC) has determined that people who get adequate amounts of physical activity have reduced rates of chronic disease, are better able to maintain a healthy weight, can better manage stress and perform better at work.

• Support employees who bike to work by providing safe and secure places on site for bike storage. • Promote active means of transportation, such as mass transit, by providing transit passes. • Encourage running, walking, biking or taking a fitness class during the day by instituting flex-time schedules. Promote Healthy Eating, Reduced Stress, Smoking Cessation Workplace cafeterias are an ideal place to offer and preferentially price and promote fruits, vegetables, whole grains, nonprocessed foods and sugar-free drinks. Vending machines can offer healthy alternatives to the snack food that normally dominates the offerings. Sponsoring a “new fruit and vegetable of the month” giveaways can expose employees to foods they may have rarely eaten, but are loaded with vitamins, disease-fighting antioxidants and micronutrients. Employers of all sizes see the direct and indirect costs of anxiety, stress, depression and lack of mental focus in the medical, disability, worker’s compensation and total productivity costs. Can the office space or workflow be made less stressful? Are there unnecessary noises, interruptions, or poor lighting, which exacerbates an already challenging work environment? Are there quiet spaces or rooms for taking a break or practicing mindfulness (deep breathing with mental visualization) to relieve stress and “recharge?” The CDC estimates that smokers cost their employers about $5,800 more than their nonsmoking co-workers. Adopting a smoke-free policy for the workplace and even extending it to the worksite property should be considered. Employers can make tobacco-cessation classes and services available, as well as educational materials that promote the benefits of living smoke-free. For more information about UPMC WorkPartners’ health management and wellness programs, visit http://www. health-wellness/. • JULY 2016



Nonprofit Board Members: Legal Duties & Obligations Jamie R. Schumacher is an associate with the law firm of MacDonald, Illig, Jones & Britton LLP. Schumacher received her Juris Doctorate from the University of Pittsburgh School of Law. During law school, she was a legal writing teaching and research assistant and the lead articles editor of the Journal of Law and Commerce. She is associated with MacDonald Illig’s Litigation Department. Recent news stories have covered controversies involving national nonprofit groups. These stories often focus attention on the legal obligations not only of management, but also on individual members of the board of directors. It is helpful, therefore, to consider how the law views these duties. Board members should determine and understand the purpose of the nonprofit. The definition of “charitable purpose” is one designed to benefit, ameliorate or uplift others mentally, morally or physically. It is good practice for board members to review the nonprofit’s articles of incorporation, bylaws, internal operating manuals, minutes of prior board meetings, annual reports and financial statements to determine the purpose within their nonprofit. In addition, members

should be familiar with the nonprofit’s organizational structure, financial responsibility policies and conflict of interest policies. Three Key Categories Similar to a for-profit board of directors, nonprofit board members are charged with fiduciary obligations. Board members must oversee management as various policies are implemented. Nonprofit boards should monitor, guide and enable management in pursuing the nonprofit’s public purpose. Board members are also granted decision-making powers in matters of policy, direction, strategy and governance of the organization. Along with this authority, the law requires that board members are charged with legal obligations, which are typically broken down into three categories:

1) the duty of care; 2) the duty of loyalty; and, 3) the duty of obedience. The duty of care obligates board members to remain informed and attentive and to act in a manner reasonably believed to be in the best interest of the corporation. This objective standard requires making reasonable inquiries when analyzing contracts, investments, business dealings and other matters. It also requires ensuring the nonprofit’s prudent use of all assets, including facilities, people and goodwill while providing oversight to advance the nonprofit’s effectiveness and sustainability. The second obligation, duty of loyalty, is defined as requiring board members to make decisions in the best interest of the nonprofit, as opposed to the individual’s self-interest. Any type of self-dealing would be a breach of this fiduciary duty, for a member may not seek to derive private gain or advancement at the expense of the nonprofit. A board member should avoid any conflicts of interests or even the appearance of impropriety. This translates to abstaining from negotiations and decisions where personal interests could be adverse to that of the nonprofit. The duty of loyalty requires board members to disclose their individual or a relative’s financial, business, or personal interests in an entity with which the nonprofit will be doing business or service as a director, member or employee of either a competitor of the nonprofit or a corporation with which the nonprofit will be doing business. Finally, the duty of obedience requires a board member to maintain the nonprofit in accordance with applicable laws, acts and ethical practices. For example, board members should honor a donor’s intent in the administration of the organization’s assets. Establish Roles Upfront Nonprofit organizations can assist in establishing a successful board by providing an orientation program that introduces board members to the basic roles and responsibilities of serving on the board, including review of governance policies, accountability practices and executive director’s performance and compensation. Further, it is a good idea to confirm that the board members are aware of their legal duties and potential liability for failure to fulfill those duties. If you have questions concerning your duties and obligations as a nonprofit board member or how to assist your nonprofit’s board, contact Jamie Schumacher at 814/870-7613 or • JULY 2016



The National Alliance on Mental Illness (NAMI) of Erie County won two silver awards from the 2016 Erie Ad Club’s American Advertising Awards. NAMI’s 2015 Community Report, A Star-Worthy Year, won two silver awards at this year’s competition, which was held on April 22, 2016. NAMI credited consultants Andy Lapiska, Jamey Stewart and John Chacona, and NAMI of Erie County Executive Director Denise L. Kolivoski, MBA, for the achievement. NAMI, the National Alliance on Mental Illness, is the nation’s largest grassroots mental health organization dedicated to building better lives for the millions of Americans affected by mental illness. NAMI’s national office was established in 1979, while NAMI of Erie County is a local nonprofit organization established in 1984 to address the increasing need for families and individuals to have a stronger voice in the mental health system. The agency currently offers referrals, educational programming, such as Familyto-Family, Peer-to-Peer, and several forums called Speaker Series, which highlight individuals, family members and mental health professionals presenting on various topics relating to children and families coping with mental illness. For more information, visit


Sweden-based NIBE Industrier AB has acquired 100 percent of the outstanding shares of Heatron, Inc., of Leavenworth, Kansas, according to a company press release. Since 1984, Heatron’s manufacturing facilities in Leavenworth, Kansas and Erie, Pennsylvania have produced highly engineered specialty heating elements, subassemblies and LED components for a wide range of applications. Heatron’ ś Leavenworth, Kansas and Erie, Pennsylvania operations include 240 employees and report combined sales of $30 million with an operating margin above 10 percent. The company will continue to run its operations and service its customers from its Leavenworth and Erie manufacturing facilities. For more information, visit


JULY 2016 •

Team NAMI celebrating its win at the 2016 American Advertising Awards (from left) – Andy Lapiska, Denise L. Kolivoski, MBA, Jamey Stewart and John Chacona.


Career Street, a community service program of the Erie County VocationalTechnical School Foundation, recently received donations from two local employers in support of its “Feed the Parking Meter” fund-raising campaign. The campaign is currently in progress to help provide more career exploration opportunities to Erie County youth. Career Street received a $1,000 donation from Northwest Savings Bank and $500 donation from Plastikos/Micro-Mold, both corporate sponsors. Career Street is a comprehensive career exploration and planning program linking businesses, nonprofit organizations and schools to create and share experiences for students to job shadow, intern, tour companies, benefit from class speakers, and participate in career workshops and fairs. Career Street’s goal is to unite employers, schools and nonprofit organizations in the pursuit of a well-prepared future workforce, and to help better prepare students for the careers they want. For more information, visit


Erie Federal Credit Union (Erie FCU) recently was recognized for marketing creativity and excellence at two recent national credit union award ceremonies. Erie FCU was honored with a 2016 Credit Union National Association (CUNA) Marketing & Business Development Diamond Award for creative excellence

and outstanding results for its Personal Loan “radio series.” CUNA is the largest national trade association in the United States serving America’s credit unions. 2016 Card Services for Credit Unions (CSCU) EMI Marketing Awards: Erie FCU also walked away with a 2016 Card Services for Credit Unions (CSCU) EMI Marketing Award in the Community Outreach category. The award was given for its ongoing involvement with youth financial literacy in conjunction with their support of the expERIEnce Children’s Museum - “Discovery Corner Outdoor Classroom”. CSCU is the nation’s largest electronic-payments association exclusively serving credit unions. For more information, visit


ERIEBANK, a division of CNB Bank, has officially entered into an agreement to acquire Lake National Bank of Mentor, Ohio. The acquisition marks a new opportunity for ERIEBANK to establish a presence in northeastern Ohio. Once the acquisition is complete, Lake National Bank will operate as part of ERIEBANK, adding to the bank’s branches that currently exist in Erie, Warren and Crawford counties in Pennsylvania and Ashtabula County in Ohio. Established in 2005, ERIEBANK has grown successfully from a de novo operation to nine full-service locations, with a tenth branch already under construction and more than $600 million in total assets. For more information, visit

ERIE INSURANCE NAMES NECASTRO AS PRESIDENT AND CEO-DESIGNATE The Board of Directors of Erie Indemnity Company (NASDAQ: ERIE), the managing company for Erie Insurance, has named Timothy G. NeCastro its president and CEO-designate effective June 1. He will succeed current President and CEO Terrence W. Cavanaugh, who joined Erie Insurance in 2008 and previously announced his retirement for later this year. NeCastro joined Erie Insurance in 1996 as manager of internal auditing and was promoted to senior vice president and controller in 1997. In 2008, he broadened his experience, taking on the role of senior vice president of product and policy services, overseeing customer service, personal and commercial product development, and processing areas. Since 2010, he has held the position of senior vice president and regional officer of ERIE’s west region. This encompasses the sales and agency responsibilities in the western half of ERIE’s 12- state footprint. “This experience has given Tim a broad perspective on communities in other parts of the country, as well as the political and regulatory forces that affect our business,” said Cavanaugh. Prior to joining Erie Insurance, NeCastro held positions as the director of finance at Plastek Group and as a senior manager at Ernst & Young. NeCastro earned a bachelor’s degree in accounting from Gannon University in Erie followed by the Certified Public Accountant (CPA) designation in 1995. He is also a Certified Insurance Counselor (CIC) and holds licenses in property & casualty and life insurance.

STAIRWAYS NAMES MCBRIER TO EXECUTIVE TEAM Heather McBrier has been named business development director for Stairways Behavioral Health’s BLOOM Collaborative campus. In her new role, McBrier will act as project manager in the development of business


strategy and sustainability for BLOOM’s programs and community partnerships.


McBrier holds a bachelor of science degree in business administration, finance and marketing from the University of Denver.

Eriez®, a world authority in separation technology headquartered in Erie, has announced a reorganization of its metalworking group that includes promotions for three team members: Andy Kloecker, John Mackowski and Darrell Milton.

MACDONALD ILLIG ATTORNEYS RECOGNIZED AS 2016 PENNSYLVANIA SUPER LAWYERS MacDonald, Illig, Jones & Britton LLP recently announced that partners Roger H. Taft, W. Patrick Delaney and Craig Murphey have been selected as 2016 Pennsylvania Super Lawyers. Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement. The selection process is multiphased and includes independent research, peer nominations and peer evaluations.

Kloecker has been promoted to manager, Distribution and Material Handling. In addition to his current responsibilities for metalworking distributor sales and metalworking Orange University ® mobile demonstration unit, Kloecker will assume magnamation product management responsibility. Kloecker also will oversee Eriez material handling products such as lifting magnets, vibratory feeders and conveyors, and chip and parts conveyors.

Taft is a principal trial lawyer at MacDonald Illig whose practice is focused on employment litigation, including employment discrimination and wrongful discharge cases, and complex commercial litigation. He has received the Pennsylvania Super Lawyer distinction for each of the past 10 years.

Mackowski has been promoted to manager, Technical ServicesHydroFlow ®. In his new role, Mackowski will manage HydroFlow’s field service team, supervise the product management of Eriez fluid recycling product line and support all metalworking product sales, including contract service technicians.

Delaney is a trial attorney and chair of the firm’s Litigation Department. He has experience litigating a wide variety of matters, from shareholder disputes to personal injury. In general, the focus of his practice is commercial litigation. This is the fourth year in which Delaney has been recognized as a Pennsylvania Super Lawyer.

Milton has been promoted to manager, Filtration Systems-HydroFlow. In this position, Milton will assume product management responsibility for HydroFlow filtration products. Milton’s responsibilities also include managing filtration projects, filtration cost estimating and quoting and support of all metalworking product sales. Eriez designs, develops, manufactures and markets magnetic separation, metal detection and materials feeding, screening, conveying and controlling equipment for more than 80 process and metalworking industries.

Murphey has been honored as a Pennsylvania Super Lawyer in each of the past six years. He is chair of MacDonald Illig’s Insurance practice group. He is a trial lawyer, regularly handling a wide variety of civil cases. • JULY 2016


C E L E B R AT I N G 1 1 0 Y E A R S pennsylvania of building northwest and southwest new york It is with great pride and honor that we celebrate E.E. Austin & Son’s 110th anniversary. Companies that reach such a landmark universally share certain traits, such as honesty, integrity, and a consistently high level of service that meets their customers expectations. Our clients come back to us time and again for these very reasons and we are grateful for their support. It’s the Austin Difference.

contractors & construction managers since 1906


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H E A LT H C A R E • E D U C A T I O N • I N S T I T U T I O N A L • R E T A I L & H O S P I T A L I T Y •


Denise L. Kolivoski, MBA Executive Director

Providing Mental Health Education Programming for Individuals and Families | 814-456-1773 16

JULY 2016 •


Medical Marijuana is Legal in PA: Does Your Drug-Testing Policy Have to Go Up in Smoke? As a member of the McNees Labor and Employment Practice Group, Denise Elliott focuses her practice on defending self-insured employers in workers’ compensation matters and providing representation and counsel to clients in employment discrimination litigation, ADA/FMLA compliance, safety and health. On April 17, 2016, Pennsylvania Governor Tom Wolf signed the Medical Marijuana Act (MMA), which legalizes medicinal marijuana in Pennsylvania. The MMA, which took effect on May 17, includes various provisions related to employment, and we have received many questions regarding what employers can and cannot do as a result of the new law. The simple answer is that, for the time being, we do not believe that employers are required to take immediate action. No immediate changes to your drug and alcohol policies or how you deal with drugs in the workplace are necessary for now, but stay tuned. The MMA requires the Department of Health (“Department”) to promulgate full regulations within 18 months, and the Department is also required to begin publishing temporary regulations no later than six months from the Act’s effective date. Accordingly, we expect further guidance before the end of 2016 and anticipate frequent changes to the rules and regulations surrounding the MMA and its interpretation thereafter. So, what do you need to know about the law now? The MMA contains an employment antidiscrimination provision that states: “No employer may discharge, threaten, refuse to hire or otherwise discriminate or retaliate against any employee regarding an employee’s compensation, terms, conditions, location or privileges solely on the basis of such employee’s status as an individual who is certified to use medical marijuana.” MMA §2103(b)(1). This anti-discrimination provision seems clear; however, it does raise some unanswered questions. Although more than 20 other states have legalized medicinal marijuana,

for purposes of the MMA, an “individual who is certified to use medical marijuana” seemingly refers only to individuals certified under Pennsylvania law. It is unclear whether an employee who is certified in another state would be entitled to the protection of §2103(b)(1). Also, keep in mind that it will take some time for Pennsylvania to implement the regulatory framework to begin the certification process, set up dispensaries and begin actually distributing marijuana. Employers are not required to accommodate the use of medical marijuana at work and employers retain the ability to discipline employees for using marijuana at work. Along these lines, the MMA provides: “Nothing in this Act shall require an employer to make an accommodation for the use of medical marijuana on the property or premises of any place of employment. This Act shall in no way limit an employer’s ability to discipline an employee for being under the influence of medical marijuana in the workplace or for working while under the influence of medical marijuana when the employee’s conduct falls below the standard of care normally accepted for that position.” MMA §2103(b)(2).

• The MMA does not require employers to “commit an act that would put the employer or any person acting on its behalf in violation of federal law.” MMA §2103(b)(3). For example, an employer would not be required to accommodate medicinal marijuana use if such accommodation violates federal Department of Transportation regulations. • The MMA does not, currently, supersede an employer’s rights under the Americans with Disabilities Act. For example, under current interpretations of the law, employers are not prohibited by the ADA from discharging an employee who tests positive for marijuana, even if the use is pursuant to a valid prescription. This could change, however, as the MMA evolves.

While employers retain the right to discipline users of medical marijuana if they are “under the influence” at work, we do not yet know what is meant by “under the influence.” It remains to be seen which definition of “under the influence” will apply to potential employee discipline. • The MMA prohibits certified users from performing certain safetysensitive jobs while “under the influence” of medicinal marijuana. • JULY 2016


Who will your child become? Children are unique and will develop into marvelous people if nurtured to develop and encourage their specific talents and interests. Committed to Erie and education for 87 years, Erie Day School offers a rigorous curriculum including International Baccalaureate for students ages 2 through Grade 8.

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JULY 2016 •

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SURVEY: VOLUNTEER WORK CAN BE GOOD FOR BUSINESS Nearly 60 percent of companies surveyed now offer employees paid time off for volunteer work, according to the America’s Charities’ Snapshot 2015 survey, and 82 percent of employees surveyed said they want companies to give them the opportunity to volunteer with their peers in company sponsored projects. Boston College’s Center for Corporate Citizenship asked employers to weigh in on the value of employee volunteerism. The Center’s report revealed that 90 percent of employers cited “improved employee engagement” as one of the top benefits of an employee volunteer program.

Grandmothering Renewal Option Available for Another Year Companies with two to 50 employees who “grandmothered” their preAffordable Care Act (ACA) plans prior to 2014 will be able to keep their current plans upon renewal with effective dates of July 1 through December 1, 2016. On February 29, 2016, the Department of Health and Human Services (HHS), extended this transitional policy for an additional year. The additional oneyear extension is intended to smoothly bring all nongrandfathered coverage in the individual and small group markets into compliance with all applicable ACA requirements no later than 2018. Instead of having all grandmothered plans terminate at their first renewal date after October 1, 2016, they will be eligible for renewal again throughout

The same report showed that employees who volunteer: • take greater pride in their company; • are more likely to defend and promote the company externally; • are more inclined to stay with the company; and,

most of 2017. However, they must terminate by the end of 2017, regardless of their renewal date.

• are more likely to go above and beyond required tasks to get the job done.

Under the extended transitional policy, health coverage in the individual or small group market that meets certain criteria will not be considered to be out of compliance with the ACA’s market reforms.

STUDY: EMPLOYEES EXPECT WORKPLACE GIVING PROGRAMS These days, employees expect companies to offer a corporate volunteer program. A study by America’s Charities revealed that 68 percent of employers report that their employees expect them to support volunteerism, and 50 percent of employers are moving to year-round engagement with their workplace giving programs.

Specifically, the extended transition relief policy provides that states may allow issuers that have continually renewed policies under the transitional policy since 2014 to renew that coverage for a policy year starting on or before October 1, 2017; but any policies renewed under this transitional policy must not extend past December 31, 2017.

The study further showed that employees expect their employees to provide an effective, contemporary workplace giving program; the ability to use work time to volunteer; opportunities to engage in skills-based volunteer activities; and matching gifts for employee contributions to nonprofits.

Melissa Damico

Management consultant guru Peter Drucker once said that “culture eats strategy for breakfast.” Companies that set a tone of giving back tend to see those values reflected back in employees who think differently about their work and purpose.

is manager of Client Services for the Manufacturer & Business Association Insurance Agency (MBAIA) and a licensed insurance agent. Contact her at 814/833-3200, 800/815-2660 or • JULY 2016




There is no exemption for nonprofit organizations under the FLSA or in the proposed rule. Thus, the proposed rule may impact nonprofit organizations having an annual dollar volume of sales or business done of at least $500,000. In determining coverage, only activities performed for a business purpose are considered and not charitable, religious, educational, or similar activities of organizations operated on a nonprofit basis where such activities are not in substantial competition with other businesses.


The Fair Labor Standards Act (FLSA) defines employment very broadly, i.e., “to suffer or permit to work.” However, the Supreme Court has made it clear that the FLSA was not intended “to stamp all persons as employees who without any express or implied compensation agreement might work for their own advantage on the premises of another.” In administering the FLSA, the Department of Labor follows this judicial guidance in the case of individuals serving as unpaid volunteers in various community services. Individuals who volunteer or donate their services, usually on a part-time basis, for public service, religious or humanitarian objectives, not as employees and without contemplation of pay, are not considered employees of the religious, charitable or similar nonprofit organizations that receive their service. Under the FLSA, employees may not volunteer services to for-profit private sector employers. On the other hand, in the vast majority of circumstances, individuals can volunteer services to public sector employers. When Congress amended the FLSA in 1985, it made clear that people are allowed to volunteer their services to public agencies and their community with one exception — public sector employers may not allow their employees to volunteer, without compensation, additional time to do the same work for which they are employed. There is no prohibition on anyone employed in the private sector from volunteering in any capacity or line of work in the public sector.


JULY 2016 •

Offering Employee Volunteer Time Off May Help Boost Morale Volunteer Time Off (VTO) policies are a quickly growing trend among businesses committed to authentic corporate social responsibility. According to the most recent Manufacturer & Business Association’s National Policies and Benefit Survey, on average, 14 percent of employers allow and encourage their employees to volunteer for outside charitable organizations during working hours. Approximately 75 percent pay the employee for a full day while they are volunteering. These companies provide a certain number of hours per year to employees specifically for volunteering in the community — independent from the company sponsored volunteer days and weeks of service. And just as these group programs show direct benefits for the employee, the company and the community, businesses who institute VTO policies are finding they make a difference in a number of important ways. The Benefits of VTO These days, companies often fight tooth and nail to attract the best talent. Generous volunteering programs can distinguish your company from others, and help you recruit engaged, ambitious and committed people. The flexibility of VTO policies is also a good way to attract Millennials. Once you’ve got the best employees, a VTO policy is one way to help you keep them. Reports are showing that giving your employees opportunities as part of their jobs to volunteer builds loyalty to your company, making them proud to work for a place with such a strong community mindset. Finally, giving your employees time to help in the community will create much-needed social impact during a time when many places desperately need the boost. Due to the sluggish economy, your company might not have the capacity to give large sums of money to help out, but enabling your employees to volunteer is another important way your company can give back.

Stacey Bruce, SPHR, SHRM, SCP is the director of HR Services at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or

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Contact us for more information: (814) 898-6893 • • JULY 2016



IS A GOOD DAY TO LOWER YOUR ENERGY COSTS. We’ve helped hundreds of companies of every size and type save millions of dollars on their electricity costs, and we’re here to help you too! Our energy experts will answer your questions, review all available options and help you develop an effective, efficient energy strategy that manages your risk and maximizes your savings.

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The Manufacturer & Business Association (MBA) strives to keep its members informed on the most current business issues affecting employers in the region. For more information about upcoming events, see the Association’s website,

Business leaders hear the latest on what ’s new at Erie Events, durin g the Association’s May Eggs ‘n’ Issue s briefing, at the MBA Conference Center in Erie.

te on the of Erie Events, shares an upda Casey Wells, executive director n. g his Eggs ‘n’ Issues presentatio Bayfront Place development, durin

The Association’s Excel Application Specialist graduates (from left): Kim Cambra, Wire Weld Inc.; Shanna Bresee, Northwest Insurance Services; Christine Hall, Northwest Insurance Services; Mindy McAllister, Rehrig Pacific Company; and, Lillybeth Feige, McCarty Printing, were honored at a recent Training Recognition Luncheon. For more training graduate photos, visit

MBA Supervisory Skills participants take the Marshmallow Challenge as part of their coursework, during a class at the Association Conference Center. The five-class series is one of the most in-demand training programs offered by the MBA.

left: Mark McManigle, Kelly Chase Plastikos, Inc. employees, from ’s t graduation from the Association and William Ortiz mark their recen a Recognition Luncheon g durin am, progr Skills ry Certified Superviso and from professional development in Erie. More than 50 graduates honored at the luncheon. computer training programs were s. See for photo • JULY 2016



The only health insurer in Pennsylvania to receive the J.D. Power award this year. It takes a lot for a health plan to be ranked highest in member satisfaction according to J.D. Power. They talk to members from more than 135 health plans nationally to get their impressions on a variety of factors that affect the member experience. UPMC Health Plan was not only ranked highest in overall member satisfaction in Pennsylvania, we also achieved the highest score in customer service and coverage and benefits. Which means our members are the ones who get the real reward. To learn more, visit

“Highest Member Satisfaction among Commercial Health Plans in Pennsylvania� UPMC Health Plan received the highest numerical score among commercial health plans in Pennsylvania in the J.D. Power 2016 U.S. Member Health Plan Study, based on 31,867 responses from 9 plans measuring experiences and perceptions of members surveyed October-December 2015. Your experiences may vary. Visit

July 2016 Business Magazine  

The Roar on the Shore® motorcycle rally marks its milestone anniversary in 2016 as one of fastest-growing charitable motorcycle rallies in t...

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