Leveraging Your Hidden Assets The Midas Touch : Leveraging Your Hidden Assets The Midas Touch Carey W. Kaltenbach
Grants Administrator/Assistant Chief
Bureau of Grants and Contracts
Division of Administration
Missouri Department of Health and Senior Services
573-751-6418
kaltec@dhss.state.mo.us 7-24-03
Leveraging : Leveraging Using one circumstance to create another.
Partnering with other entities to reduce costs, share resources, facilities, equipment, training, etc.
Using funds to create other funds or funding opportunities.
Sharing activities.
Dual Use: A double effect : Dual Use: A double effect Using one grant-funded project
to serve two groups of clients
to train or improve two groups or in two ways
to fund two activities
to serve two goals, etc.
CHART Walk
Parents Fair Share
COPS
Hidden Assets : Hidden Assets Aggregate Service Measures
In-kind donations
Quality Improvement
Human Resources
Planning
Aggregate Service Measures – Board, Staff, Volunteers : Aggregate Service Measures – Board, Staff, Volunteers Cumulative years of service by your Board/Staff/Volunteers:
a. On your board
b. With your organization
c. In this field of work
Aggregate Service Measure Example : Aggregate Service Measure Example Photo of staff with the following caption:
“The 15 members of the ‘xyz’ team collectively have worked for ‘xyz’ agency for 300 years.”
Aggregate Service Measure Example 2 : Aggregate Service Measure Example 2 From a quarterly newsletter produced by Interfaith Care Team, St. Joseph, MO
“In the past year, our volunteers
spent 2,086 hours of service helping our clients including driving a total of 14,900 miles, or the distance from St. Joseph to New Delhi, India and back.”
In-Kind Donations - Performance Indicators of Return on Investment (ROI) : In-Kind Donations - Performance Indicators of Return on Investment (ROI)
In-kind donations reveal the strength of an organization’s fundraising and, thus relationship-building.
In-kind donations reveal the support for and commitment of a community to an organization and its customers.
In-Kind Contributions -track in an In-Kind journal: : In-Kind Contributions -track in an In-Kind journal: Donations of
office/meeting space
printing/copying
bookkeeping
equipment
refreshments
use of professional’s skills
board/staff members’ time
use of borrowed equipment
Slide10 : FUNDING
TEAM Special
Events Grants Endowed
Funds Annual
Giving In-Kind Donations
In-Kind Donations: Hidden Assets for Your Organization – A Resource Guide : In-Kind Donations: Hidden Assets for Your Organization – A Resource Guide This 14 page publication created by MO Dept. of Health and Senior Services staff, is downloadable at:
www.dhss.state.mo.us/CHART
Click on the “In-Kind Donations” icon
In-Kind Donations are Critical for your Organization’s Sustainability : In-Kind Donations are Critical for your Organization’s Sustainability Substituting in-kind donations for cash adds to your resource pie - your cash can be used to pay for services/goods that you haven’t been able to get donated.
In-kind contributions expand your resource capacity - which can then help you leverage additional resources.
Risky Behavior - Taking the In-Kind Donations for Granted : Risky Behavior - Taking the In-Kind Donations for Granted
You get so use to receiving the donation you forget to acknowledge it.
You get so use to receiving the donation, you forget to include it in your budget planning estimates.
Risky Behavior - Taking “any and every” Donation Offered : Risky Behavior - Taking “any and every” Donation Offered
You don’t need to accept every in-kind donation - just because it is offered.
If it isn’t something your organization can use - gracefully decline the offer.
In-Kind Donations - Building Relationships - Building Sustainability : In-Kind Donations - Building Relationships - Building Sustainability An in-kind donation can be the beginning step of a substantial relationship.
In-Kind Donations - Building Relationships & Sustainability : In-Kind Donations - Building Relationships & Sustainability “Non-cash gifts represented a growing share of contributions made by companies to American charities. Businesses reported that 28 percent of 1999’s domestic donations were in forms other than cash, including products, equipment, real estate and intellectual property rights.”
Debra E. Blum in Chronicle of Philanthropy, Jan. 1, 2001
The Benefits of an In-Kind Journal : The Benefits of an In-Kind Journal provides a central collection point
provides a reminder for your organization to acknowledge the volunteers/donors for their contributions
The Benefits of an In-Kind Journal : The Benefits of an In-Kind Journal Will assist your organization in assembling the information necessary to provide the appropriate documentation required by the Internal Revenue Service.
Slide19 : A helpful resource for the volunteer treasurer setting up a basic accounting system for a not-for-profit organization:
“Self-Help Accounting: A Guide for the Volunteer Treasurer.” available from:
Energize, 5450 Wissahickon Ave., Box C13, Philadelphia, PA 19144
(215) 438-8342 www.energizeinc.com
In-Kind Journal - Creating the Books
Slide20 : Government
(local, state, federal) OUR
ORGANIZATION Foundations Local
Business’ Corporate
Philanthropies Funders Universe Local
Individuals Alumni who no
longer live in
the community Subgrantee/
Subcontractor Trade Associations Faith-based
groups Donors
Public-Sector Funding Trends : Public-Sector Funding Trends
Funding Trends : Funding Trends Funding will be directed toward
measurable changes in systems (removing barriers and capacity-building)
capacity-building in
customers
agency
community
Public Funding Trends : Public Funding Trends Targeted grants to faith-based and grassroots organizations.
Organizations with capacity in outcomes-based programming
Multi-year performance data demonstrating ability to move indicators
More systems development grants
Funding Trends (cont.) : Funding Trends (cont.) long-term behavioral changes in customers;
Networked entities over larger geographical areas
Addressing gaps
Disparities
Value-added contributions as a way of “making your case.”
Funding Trends (cont.) : Funding Trends (cont.) Cost-effectiveness formulae/cost-utility analysis
Already used in immunization, cancer screening, tobacco cessation, health education
Public Funding Trends : Public Funding Trends Funding based on a reasoned, feasible sustainability plan
More scrutiny of applicants, especially in terms of benchmarking
Block grants
Outsourcing federal functions
Benchmarking : Benchmarking “An ongoing, systematic process that seeks to identify and understand the best practices of others and customize such practices to one’s own setting”
Wilson & Beynon, 1998, p. 183.
Benchmarking can be a method for demonstrating progress through growth points.
Benchmarking : Benchmarking Started in industry – still in its early stages.
Quality improvement has customarily focused on the internal. Benchmarking focuses on the external. It is future oriented and concerned with efficiency and effectiveness.
Benchmarking : Benchmarking
“ . . . benchmarking takes performance measurement to a higher level of identifying best practices, which in turn lead to better outcomes and enhanced performance.”
Benchmarking : Benchmarking Defining features –
Establishing a strategic direction
Setting goals
Measuring performance
Sharing best practices
Benchmarking Web Sites : Benchmarking Web Sites The Benchmarking Exchange
http://www.benchnet.com
Best Practices for Development of a Volunteer Program
http://www.gosv.state.md.us/pubs/bestprac/sec00.htm
Best Practices for Directors and Boards of Nonprofit Organizations
http://www.wchwebsite.org/docs/practice.pdf
Best Practices/Successful Practices Sites
http://www.nist.gov/success/links.html
Best Practices Web Sites
http://newark.rutgers.edu/~ncpp.bestpractices/links.html
Not-for-Profit Board Governance: Best Practices
http://www.cqc.state.ny.us/bestboard.htm
Private-Sector Funding Trends : Private-Sector Funding Trends
Slide33 : Trends in Foundation Giving
“In order to evaluate current projects and find good candidates for future funding, foundations are looking for quantifiable results. As foundations evaluate the return on investments and become more outcome-oriented, nonprofits must anticipate that trend and find ways to demonstrate – in concrete terms – the difference they make.”
“From the Funders’ Perspective,” Board Member, January 1997.
New RFP Dynamics : New RFP Dynamics More demands for documentation of
involvement of all parties in
planning and proposal writing.
Strictures against turning one kind of grant into another (turning a program development grant into an equipment grant).
Stress on clearly defining roles and responsibilities of coalition or consortium members or partners.
Budgets and budget justifications for all years of a grant cycle.
New RFP Dynamics : New RFP Dynamics Preference for multiple sources of funding
Now letters of commitment as opposed to letters of support
Required statement requesting a funding priority or preference
Required explanation of why certain decisions were not made.
New RFP Dynamics : New RFP Dynamics Demographic data
Identification of barriers
Evaluations feeding back into project to make it stronger, make it produce more results
Management plan for collaborative grants (lines of authority, communication, etc.)
New RFP Dynamics : New RFP Dynamics Evidence of experience/capacity to manage projects, administer funds, and deliver services
Sustainability plan
New Competitive Dynamic : New Competitive Dynamic
Leveraging in the new funding paradigm
Pre-1990s Fund-Seeking Behavior : Pre-1990s Fund-Seeking Behavior Fund seekers
ignored the principles and dynamics of the capitalist economy that created the disposable wealth they were seeking;
talked to funders as though they were social missionaries, not capitalists;
pitched noble needs (after 1990, this approach became the Noble Need Fallacy).
The Noble Need Fallacy : The Noble Need Fallacy If your need is great enough, you will get the money.
Little concern in proposal for highly productive interventions, evaluation, performance measures, benchmarks, goals/objectives, growth points.
Differing Perspectives : Differing Perspectives Pre-1990s Paradigm
Our Perspective
It’s about money
to
deliver services!
“Here’s how much I need from you.”
Post-1990 Paradigm
Funder’s Perspective
It’s about what you accomplish with the money, about ROI!
“Here’s what I have to offer you.”
Causes of the Paradigm Shift : Causes of the Paradigm Shift Outcomes-Based Programming
Government Performance and Results Act (GPRA)
Investment Mindset
Demonstration of Progress
Multiple years of performance data
Customers
Organization
Community
Constrained Funding
New Competitive Dynamic : New Competitive Dynamic
investment
mindset
Investment Mindset : Investment Mindset Returning more than just the “principal”
Return on Investment (ROI)
Indicator of return per dollar
Indicator of customer/organizational/community development
Capacity-Building/Risk-Reduction
Diversification of key tasks
Pattern of Growth
Sustainability
Value-added Benefits/Contributions
New Competitive Dynamic : New Competitive Dynamic
return
on
investment
Return on Investment (ROI) : Return on Investment (ROI) ROI is an indicator of the return per dollar.
ROI is a measure of customer/organizational/community development.
Slide47 : Risk reduction
Capacity-building
Diversification of responsibility and function
Integration of groups, funders, and resources in a community
An observable growth pattern
Quality Improvement
Return on Investment (ROI)
Quality Improvement : Quality Improvement An investment in customers
Focus on building capacity
Focus on building relationships and, thus, sustainability
Hidden discriminator among grant reviewers
Slide49 : Replicability of interventions
Documentation of outcomes through data
Sustainability
Relationship-building
Return on Investment (ROI)
New Competitive Dynamic : New Competitive Dynamic
diversification of
key tasks
&
functions
Diversifying Function and Responsibility : Diversifying Function and Responsibility When key tasks are diversified (investment), they can be engaged in more frequently at a higher degree of intensity.
To build capacity and lower corresponding risk, groups must diversify fundraising roles, tasks, and streams.
Leveraging Human Resources : Leveraging Human Resources To bring in more funds, collaborations and agencies can create a Funding Team to diversify key tasks in fundraising, eventually moving to a “development” stance. A funding team is a sustainability factor.
Slide53 : Team
Leader R
Slide54 : Teamwork: Analytical Approach to Fundraising
Identifies trends in donor numbers and
gift levels
Evaluates past fundraising successes
Makes case for support
Establishes quality of services and programs
Gauges public’s perception of
services/programs
Slide55 : Analytical Approach (cont.)
Identifies potential donors and their focus
Evaluates strength of volunteers in fundraising
Assesses staff’s fundraising capacity
Sarah Coviello, Coviello & Associates, Board Member,
January 1997
Slide56 : GRANT
WRITING
TEAM I:CHART/1John/Diagram 2 Grantwriting Team for Nonprofits/Coalitions Support
Letter
Coord. Grant
Writer
State/Local Initiatives : State/Local Initiatives Move into collaborations or partnerships to CREATE new funding streams instead of waiting for governments to create them.
Less visible areas of the Funding Universe
Related industries
Trade associations
Categories of customers (vendors of institutions)
Extended families of customers
Endowed funding
Applicant Initiatives : Applicant Initiatives Study funding streams for leveraging opportunities
To leverage, one must have in place
A think-tank (funding team/grantwriting team)
A multi-year project plan
A multi-year funding plan
A method for tracking trends over the short and long term
Applicant Initiatives : Applicant Initiatives Create a multi-year project plan with funding tied to the projects
Create future growth points, ideally linked to past growth points (organizational resume).
Set up a list of Web sites to visit every week.
Two funding researchers on the Funding Team work these and other Web sites.
Basic Web Research Sites : Basic Web Research Sites GrantsNet
http://www.hhs.gov/progorg/grantsnet
Catalog of Federal Domestic Assistance
www.gsa.gov/fdac
Community Toolbox
http://ctb.lsi.ukans.edu
Federal Commons
www.cfda.gov/federalcommons
Slide61 : Creative Partnerships for Prevention
http://www.cpprev.org/
Federal Register (Easy path)
http://www.access.gpo.gov/su_docs/aces/aces140.html
NonProfit Gateway
www.nonprofit.gov
GovExec.com
Single web site for information on all available government grants, to be activated in October, 2003
http://www.govexec.com/dailyfed/0403/042903td2.htm
New Competitive Dynamics : New Competitive Dynamics Positioning
An approach
or
application
New Competitive Dynamics : New Competitive Dynamics Positioning an application or project involves situating one’s approach and organization to encompass several present and future trends significant to funders.
Like moves in a chess game, it requires the long view – looking several years down the road. It also requires a knowledge of funders’ programming steps and shifts in their funding.
Public (CDC) Program Development Levels : Public (CDC) Program Development Levels Create an information center
Create a research information center
Surveillance
Interventions to individual funders
Comprehensive programming (including statewide plan drawn up with collaborators)
Transitioning funding (merging funding streams/programs)
Positioning: Private Funding Trends : Positioning: Private Funding Trends Grant researchers study
patterns of grant awards by a foundation over five years,
grant award amounts,
issues favored,
interventions favored,
grant recipients,
shifts in focus.
Revised Funding Levels : Revised Funding Levels As a result of PL 106-107, the National Center for Chronic Disease Prevention has adopted new common terms for funding levels.
Capacity Building (Tier 1, formerly core and planning grants)
Basic Implementation (Tier 2, formerly comprehensive and implementation grants)
The NCCDP has announced that it is developing performance measures for each grant type.
New Competitive Dynamics : New Competitive Dynamics
Multi-year
Project Plan
New Competitive Dynamics : New Competitive Dynamics Multi-year Project Plan
Maps out future growth
Documents progress
Can be linked to funding to create
a multi-year funding plan
Can assist in benchmarking
Slide69 : Allows applicant to speak articulately
to funders
Resolves linkage issues grant
reviewers use to take away points.
Documents capacity-building
Combats the Bountiful Well Fallacy
Bountiful Well Fallacy : Bountiful Well Fallacy Any time a funder makes a grant, we can just keep on going back year after year for more money.
Proposal lacks direction and plans for development--growth points, implying long-term dependency on a funder. Sustainability is ignored and capacity-building is minimal.
No risk reduction.
Linkage Issues Cited by Reviewers : Linkage Issues Cited by Reviewers These variables should be linked, but no such discussion occurs in the proposal (reviewer assumes to the risk, subtracting points)
The proposal indicates a linkage, but it is not explained
The proposal indicates a linkage, explains how it works, but the capacity to make the linkage work appears lacking.
New Competitive Dynamics : New Competitive Dynamics
Reducing Risk by building capacity
Low-risk, High-capacity Organization : Low-risk, High-capacity Organization Low Risk High Capacity
Capacity = Capability : Capacity = Capability Potentially, any increase in
knowledge,
skills,
experience,
infrastructure,
collaboration or partnership
donations, grant awards
audits, performance
evaluations In the areas of
structure,
staff,
board,
planning,
goals,
customers,
& community.
New Competitive Tool : New Competitive Tool
Organizational Resume
Slide76 : The response converts the problems, threats and challenges to achievements.
All things being equal, an organization does not regress after having achieved a growth point.
The conversion to achievement builds capacity.
Initial problems, threats, challenges to an organization that require a response.
Organizational Resume : Organizational Resume How can you use an Organization Resume that highlights your Growth Points?
Add to appendix of grant application
Include in media packets
Distribute to prospective donors
Distribute during an Organization celebration
Check against your mission statement - are you moving in the correct direction?
New Competitive Dynamics : New Competitive Dynamics
Partnering
Public/Private Partnering : Public/Private Partnering Goldman-Sachs Foundation
&
Yale School of Management
Robert Wood Johnson Foundation
&
Agency for Healthcare Research and Quality
New Competitive Dynamics : New Competitive Dynamics
Managing Change loops
Comprehensive dynamics
Change Loops : Change Loops Every new variable sets up a change loop. Savvy organizations identify and direct changes.
New funding
New program
New infrastructure
New capacity
Comprehensive Dynamics : Comprehensive Dynamics 2 or 3 essential influences/causes
Training + 2 barriers
Immediate cause + 2 key contributory causes
Multiple conditions
2 or 3 promising/best practices
2 or 3 variables in systems development
Comprehensive Approach – RWJF & AHRQ : Comprehensive Approach – RWJF & AHRQ Two or three essential influences addressed in intervention
Prescription for Health
Physical inactivity conditional factor
Poor diet conditional factor
Tobacco use substance factor
Alcohol use substance factor
Health behavior counseling
Everyday health care
Community network resources
Bush Homelessness Plan : Bush Homelessness Plan Chronic issue with address to comprehensive sub-issues with attached funding streams from HUD, SAMHSA, VA
Housing
Mental health
Substance abuse
Primary care
Veterans’ services
Strategic Funding-CHAMPS Mentoring Project, Perry County, MO : Strategic Funding-CHAMPS Mentoring Project, Perry County, MO Mentoring Project-grant from CHART/MHA Community Interventions Competition
66 at-risk youth in weekly mentoring with 38 more on waiting list
Life skills training: anger management, setting goals, communication skills
Hard data
57% improved grades
42 % improved attendance problems
70% improved behavior problems
Slide86 : Soft Data
One 9th-grade youth wanted to drop out of school but decided to stay. Dropping out would mean he could no longer enjoy mentoring after school. He has been on the honor roll for the last two quarters. He has a very supportive mentor.
CHAMPS Adult Program
Low-income, high-risk youth, 16-21 in age, who dropped out of high school. Funded by grant from Workforce Investment Board
Served 50 youth
Strategic Funding-CHAMPS Mentoring Project, Perry County (cont.) : Strategic Funding-CHAMPS Mentoring Project, Perry County (cont.) Summer Service Projects-grant from local Teen Council
Pen/House for pig at diabetes camp
Raised flower planters
Strategic Funding-CHAMPS Mentoring Project, Perry County (cont.) : Strategic Funding-CHAMPS Mentoring Project, Perry County (cont.) SA Support Group (16-21)
Expanded mentoring population to include youth challenged with substance-abuse issues-Funding from substance-abuse funders
Served 35 youth
New program for 12-15 year olds with substance abuse problems.
31 youth entered the justice system in 2002 with substance abuse problems.
CHAMPS – Change Loops : CHAMPS – Change Loops Comprehensive approach to constituencies reflecting change loops
School youth at risk - public/private funding
Summer involvement – public funding
School dropouts
(16-21) – public funding
Drop outs on drugs - private funding
Younger youth on
drugs – private funding
St. Louis Partnership for Children & Youth (SLPCY) : St. Louis Partnership for Children & Youth (SLPCY) Comprehensive programming with change loops
SLPCY Lifeline : SLPCY Lifeline In 1996, David Hilliard, President of the Wyman Center, proposed a model for youth services to the St. Louis Housing Authority (overseen by HUD)
Hilliard contacted Fonda Fantroy of Guardian Angel Settlement Association and Rev. Eugene Morse of Kingdom House.
SLPCY : SLPCY Initial structuring grant
Grant-funded rigorous assessment
Assessment leveraged for program funding
Coca-Cola six-figure grant
Ralston Purina tripled annual grant
Justice Department/Incarnate Word grants
Technical assistance grant
SLPCY : SLPCY Comprehensive interventions for youth at risk
Character education
Academic enrichment
High expectations for success in school
SLPCY Outcomes : SLPCY Outcomes Significant reductions in drug abuse
Youth’s perceptions of positives in school, community, and family environment have declined – the next level of challenges
Tracking grades and attendance revealed improvement in social studies, science/health, math, handwriting, spelling, language and reading
New Competitive Dynamics : New Competitive Dynamics
sustainability model
Drug Prevention Resources Irving, TX : Drug Prevention Resources Irving, TX Wise Use:
Seniors & Prescriptions
Need : Need 9 million people, age 12 and up, used prescription drugs for non-medical reasons in 1999.
More than 25 % of this group misused for the first time.
Seniors (65+) represent 14% of the population but consume more than 1/3 of prescription medications.
An estimated 17% of older adults are affected by prescription drug misuse.
Need : Need Older population consumes about 30% of all prescription drugs and 70% of non-prescription drugs.
Over 50% of seniors do not take their medication as prescribed.
Overmedication
Undermedication
(National Institute on Drug Abuse)
Impact Variables : Impact Variables Trip to physician: $50-$75
Emergency room treatment: $300-$2,000
Day in hospital: $2700 (average)
Admission to nursing home: $35,000/yr.
Annual cost for treating medication misuse is a stunning $177 billion.
More than 100,000 Americans die each year from adverse drug reactions.
Impact Variables : Impact Variables It is anticipated that 1,7000 seniors in the 10,000 projected contacts would misuse medications. If S&P is successful, with 10% of the 1,700 seniors, it could result in a savings of approximately $325,000 annually.
Annual rate of return on investment for $129,049 prevention program is 150%
Wise Use: Seniors & Prescriptions : Wise Use: Seniors & Prescriptions Stakeholders providing information for planning:
Texas Commission on Alcohol and Drug Abuse
Meals on Wheels
Agencies on Aging
University of North Texas School of Gerontology
Pharmacists
substance abuse treatment professionals
faith community
senior citizens.
Potential Funders : Potential Funders Foundations: Public Welfare Foundation, Retirement Research Foundation, Robert Wood Johnson Foundation, Union Camp Charitable Trust, The Commonwealth Fund, John A. Hartford Foundation, RGK Foundation,
Drug manufacturers: Abbot Labs, Bristol-Meyers Squibb, Eli Lilly, GlaxoSmithKline, Merck, Novatis, Pfizer
Drug retailers: CVS, Eckerds, Walgreens, Albertsons, Walmart
Trade Associations: Northeast Pharmaceutical Association, local pharmaceutical associations
Potential Local Funders : Potential Local Funders Senior centers
Retirement/assisted living centers, rest homes
Hospitals
Primary care providers
Managed care organizations
Federal and state drug abuse prevention programs
Faith communities
Sustainability: Housing Trust Funds : Sustainability: Housing Trust Funds “Housing trusts are another way of raising government money outside the usual appropriations process.”
Sheila Crowley, President
National Low Income Housing Coalition, DC
The Butler Family Foundation in Washington made $45K out of $1.4 million total grant awards available in 2002 for local housing trust funds to form and begin operating.
Chronicle of Philanthropy 4/17/03
Housing Trust Funds (cont.) : Housing Trust Funds (cont.) More than 200 of the 280 trust funds in the USA were started in the past decade
Foundation grants assisted in the advocacy and formation of trust funds on the local and state level.
Special sales taxes, document-recording fees, and real-estate transfer taxes have been used to raise money for trusts.
Chronicle of Philanthropy 4/17/03
Nebraska Development Network : Nebraska Development Network Connects business and community leaders in an economic development corporation
Enterprise- and resource-focused, community- and region-based, with support from local, regional, state, and federal public and private resources.
Slide107 : Includes businesses, educational institutions, elected officials, governmental agencies, chambers of commerce, statewide associations, commissions, tribal governments, and utilities.
Slide108 : Provides technical assistance in strategic planning, resource/leadership/economic development
Generates and focuses public and private resources on effective actions
Encourages public/private partnerships, thereby leveraging limited public resources through private investment
Grantseeker’s Script : Grantseeker’s Script Funding/Grantwriting Team
Inventory your issues
Create a multi-year project plan
Systems and/or customer approach?
Comprehensive programming
Collaborate/partner to create funding?
Choose or find a model
Create a sustainability plan
Script for Approaching Funder : Script for Approaching Funder Identify and present the issue
Explain your planned response to the issue
Present the cost, remembering that it’s the principal to be invested.
Identify and explain the ROI = Dividend/Benefits to
Customer
Community
Organization
Funder