With the economy in full motion, Chambers of Commerce in the Valley region are taking a more active role in promoting a better business climate. Rather than simply providing a network for business contacts, chambers are increasingly focued on engaging with elected representatives, spearheading initiatives and boosting economic development plans. “Chambers are all in a real transition period,” said Fran Kerzner, board chair of the Sherman Oaks Chamber of Commerce, which ranks No. 11 on the Business Journal’s Chamber of Commerce List. “They used to be big a networking opportunity, but now that people have so many other ways to connect, we are trying to redefine ourselves to be advocates for businesses instead of just places where you go for lunch,” she said. Chambers of commerce are primarily funded through membership fees paid by local businesses. An annual membership to the Sherman Oaks Chamber costs $300. Kerzner said while the fee is relatively modest, there’s pressure to ensure that members feel belonging to the chamber is worth the investment. “People have to feel like you’re providing that much value,” she said. “And that’s a challenge.” One way the chamber advocates for its members is by representing their interests to local officials. When L.A. City Councilmember David Ryu proposed two city-owned properties in Sherman Oaks as sites for homeless housing, some local business felt the city hadn’t adequately consulted local stakeholders before announcing the plans. In response, the chamber set up a meeting between council district representatives and its members to give them an opportunity to share their concerns. “We wanted to make sure their voices were heard,” Kerzner said. Nonprofit fundraising To help raise money for local initiatives, the chamber created a 501(c)(3) nonprofit organization called the Sherman Oaks Chamber Foundation in 2014. This year, it raised $4,000 for its popular Let’s Paint Sherman Oaks program, which has hired local artists to paint more than 40 utility boxes and a public mural on Ventura Boulevard. “It’s really easy, and it has an impact on the community,” Kerzner said. “We should have all of the boxes in Sherman Oaks done this year.” Since chambers are categorized as nonprofit business associations by law, there are limits on how they can secure funding and accept donations. As a result, many chambers are establishing separate nonprofits to give themselves more flexibility in fundraising. This year, the Burbank Chamber of Commerce, No. 7 on the on the Business Journal’s list, founded its own 501(c)(3), which it plans to formally announce later this month. Chief Executive Tom Flavin envisions utilizing the nonprofit to make the city a more attractive place for business. “We’ve concluded that if we’re going to have a substantive role in the community, we need more resources,” he said. After Gov. Jerry Brown dissolved the state’s redevelopment agencies in 2011, Burbank lost an important source of public funding. When Flavin served as mayor of Burbank in the 1990s, he said the local redevelopment agency — which collected new property tax revenue in parts of Burbank slated for renewal — raised $20 million to $25 million annually for road and transit upgrades, property renovations and other efforts to grow businesses. Brown later shut down the program during California’s budget crisis, arguing the state could no longer afford the initiative and that agencies often misappropriated funds. “Burbank as a community is only investing a fraction compared to the redevelopment funds that we used to invest,” Flavin said. The chamber’s new nonprofit aims to fill that void by raising funds for local projects and infrastructure developments. Social media training Jill Lederer, chief executive of the Greater Conejo Valley Chamber of Commerce, No. 1 on the Business Journal’s list, said that while cities in the Conejo region weren’t as negatively affected by Brown’s decision, she agrees that local chambers must do more to help local businesses. “Chambers of commerce have become more critical in recent years,” she said. “As the economy has become more complicated, during and since the Great Recession, chambers are great resources for the local business community.” One resource the Conejo Chamber offers is digital marketing training to help companies reach new clients online and on social media, which Lederer said is vital in today’s market.
