board of supervisors business meeting - lfportal.loudoun.gov...loudoun museum’s three-year budget...
TRANSCRIPT
Date of Meeting: September 3, 2014
BOARD OF SUPERVISORS
ACTION ITEM
BOARD MEMBER INITIATIVE
# 16
SUBJECT: Fund Allocation for Continued Operation of Loudoun
Museum
ELECTION DISTRICT: Catoctin
CRITICAL ACTION DATE: September 3, 2014
STAFF CONTACTS: Stacy Carey and Katie Donnelly, Staff Aides to Supervisor
Higgins
PURPOSE: The purpose is to request that the Board provide supplemental funding for the
Loudoun Museum.
RECOMMENDATION: Supervisor Higgins recommends that the Board of Supervisors
transfer $26,769 from the Fund Balance to the Loudoun Museum.
BACKGROUND:
Since 1967, The Loudoun Museum has served the community as an integral link between the
past and present. Housed in part in a log cabin which dates to as early as 1764, the Museum’s
collection contains maps, archives, photographs, paintings, and other unique pieces which tell the
story of Loudoun County and the Town of Leesburg. Throughout their history, Loudoun County
has supported and worked with the Loudoun Museum to ensure the Museum’s work would
continue to educate and benefit the surrounding community.
At the March 14, 2012 budget work session for regional organization contributions, the Board of
Supervisors approved a motion (8-1, Delgaudio opposed) to contribute $63,000 to the Loudoun
Museum for Fiscal Year 2013.
Included in the motion were additional conditions regarding the distribution of the funding to the
Loudoun Museum as follows: Fundraising - presentation of a funding plan for FY 2013 and
beyond so that the organization will move towards expanding its funding sources, reducing the
current 70% reliance on County Government funding for operations; Management and Display
of the Museum’s collection - a plan for displaying the museum’s entire collection in one space
since approximately 50% of the collection is currently being stored and not displayed for the
Item #16, Fund Allocation for Continued Operation of Loudoun Museum
Board of Supervisors Business Meeting
September 3, 2014
Page 2
public in a county-owned building at 108 Edwards Ferry Road in Leesburg.
Following the Finance/Government Services and Operations Committee meeting on July 9,
2012, the Museum submitted a Turn Around Business Plan (Attachment 1), a Resource
Development Plan (Attachment 2) and a three-year implementation budget (Attachment 3).
These plans were integrated to set out a three-year work plan and budget for turning around
Museum operations.
Loudoun Museum’s three-year budget was predicated on the understanding that the County
would stabilize at 40% to 50% of Museum revenue. Thus, for Fiscal Years 2013, 2014 and 2015,
the Loudoun Museum budgeted for grant money from the county in the amount of $63,000 each
year.
For Fiscal Year 2014, Loudoun Museum received $63,000. In a March 8, 2013 memo to the
County Administrator the Director of Management and Financial Services included the staff
recommendation to fund Loudoun Museum at $63,000 noting Loudoun Museum’s progress
toward addressing the goals identified in the business plan.
At the October 16, 2013, the Board of Supervisors Business Meeting, the Board reaffirmed (8-0-
1, Clarke absent) the process for a needs-based grant program with a defined funding limit for
Intergovernmental and Non-Profit Organizations, as approved by the Board on July 17, 2013 (9-
0); that this grant program follow a revised process and timeline; that the Areas of Need be
consolidated from 10 areas to five; that the annual application process allow for organizations to
apply for only one Areas of Need; and that groups applying for funds should fit into the
definition provided in that category.
The Loudoun Museum is categorized under the Recreation and Culture category of Non-Profit
Funding. As a result of the October 16, 2013 Board of Supervisors action, the total amount of
funding available for the Recreation and Culture category of Non-Profit Grant Funding for Fiscal
Year 2015 was $49,906 – significantly less than the $80,479 allocated in FY 2014.
For Fiscal Year 2015, county staff provided the FY 2015 Adopted Budget overall allocation for
non-profit grants at the July 2, 2014 Board of Supervisors business meeting. Loudoun Museum
was allocated $36,007, a 43% reduction from FY 2014 and $26,769 less than requested.
Since the prior fiscal year, Loudoun Museum has increased revenue in membership and
donations and has consistently reduced the county portion of revenue each year to less than 50%
for the current fiscal year.
ISSUES:
At the request of the county, Loudoun Museum created a three-year business plan based on the
understanding that the county would provide grant funding of $63,000 for three years. If the
original grant request amount of $62,774 is not reinstated, the Museum may be forced to dissolve
the Museum and disperse the collection.
Item #16, Fund Allocation for Continued Operation of Loudoun Museum
Board of Supervisors Business Meeting
September 3, 2014
Page 3
ALTERNATIVES:
The Board may choose not to provide additional funding to the Loudoun Museum in FY 15 or
the Board may propose an alternative.
FISCAL IMPACT:
The funding will be drawn from the county Fund Balance.
DRAFT MOTIONS:
1. I move that the Board of Supervisors approve a payment in the amount of $26,769 to the
Loudoun Museum;
OR
2. I move an alternate motion.
ATTACHMENTS:
1. Loudoun Museum Turn-Around Business Plan 2012
2. Loudoun Museum Resource Development Plan 2012
3. Loudoun Museum Three-Year Implementation Budget 2012
4. October 16, 2013 Board of Supervisors Meeting Item 13j
5. July 2, 2014 Board of Supervisors Meeting Administrative Items Report, Action Item F
6. Application for FY 2015 Loudoun County Grant Funding: Loudoun Museum
Loudoun Museum, Inc.
Turn Around Business Plan
Presentation to
Loudoun County Board of Supervisors
September 5, 2012
For: Elizabeth D. Whiting, President, Board of Trustees
By: Dave Martin, Consultant
Dr. David C Miles, Volunteer Advisor
Prepared August 21, 2012
Attachment 1
Turn Around Business Plan
Loudoun Museum, Inc.
Effective Date of Plan: September, 2012
Overview:
This document recognizes the FY 2013 Funding Application for the Museum as a foundation document.
Therefore, all basic information contained in the application will not be repeated in this Turnaround
Plan. All information contained in the initial application document is valid and is utilized as an
underpinning to this new Business Plan.
We at the Museum fully understand that the Board of Supervisors has requested a plan that will provide
an approach by the Museum to become more self sustaining through its activities other than by relying
so heavily on County grants for daily operations. This plan will establish a basic blueprint to achieve this
evolution of the Museum and its activities. There will be two components of this plan: a) A Business
Plan and b) A Development (fund raising) Plan. These are in addition to the Museum Board’s adopted
Strategic Plan and various adopted plans and policies governing day-to-day museum functions, e.g., the
Museum’s By-Laws, Collections Management Plan, Employee Handbook and Employee Ethics Policy.
Brief History:
The museum’s July 2012 through June 2013 budget and grant request was conditionally approved with
two requests. The BOS reiterated its request for a structured business plan and a development plan. In
addition, staff requested a plan to display a larger percentage of the Museums’ collections. In the past
fiscal year, the County’s grant was 68% of the Museum’s revenue stream. If County grant support were
to be totally eliminated the Museum Board would most likely need to shutter the facility and look for
alternative caretakers of the valuable artifacts and collections. Prior to mid 2010, the museum was
open to the public 6 days per week and on the 7th day by appointment. Currently it is open to the public
3 days per week and by appointment for special events. A lengthy article appeared in Leesburg Today,
August 17, highlighting potential collaboration between Visit Loudoun, Northern Virginia Park Authority,
and the Heritage Farm Museum. Also on August 17, Geary Higgins hosted a meeting of all interested
parties to ensure full collaboration and active support as this new plan evolves.
Goal:
To provide the BOS with both a short term business plan and a resource development plan that will
change the operational direction of the museum to reduce the current 70% reliance on County
Government funding for operations and to demonstrate a workable plan for increasing display of the
Museum’s collection.
Current Realities:
Over the past 5 years, the actual County grant to the museum has declined from approximately $307k to
$70k (representing a decrease of $237k). The museum total revenue, including county funding, has
declined from $425k to $103k as of last fiscal year, (representing a decrease of $322k). Total museum
expenses have declined over the same period from $443k to $96k (representing a decrease of $254k).
Paid staff has declined from approximately 5.3 FTE’s to 0.93 FTE (Full Time Equivalents). For the year
ending June 30, 2012, the Museum managed to generate an operating surplus of $14k; however, a $7k
principal payment was made to PNC bank for The Lure of Loudoun coffee table history book, co-
authored by then Museum Board member Noel Grove and Dr. Charles Poland, purchased for the
museum shop’s inventory in 2007. This reduced the operating surplus to $7k. While the business side of
the Loudoun Museum has significant challenges, there is improvement. A focus on creating and
implementing all three plans, 1-a business plan, 2- a development plan and 3- an operating plan of
activities; should lead to a considerable reduction in future years on County grant support.
The Town of Leesburg is also a significant supporter of the Loudoun Museum. The buildings that are
occupied are “rented” to the museum on an annual basis for a fee of $1. All costs associated with
operating the facility are at the expense of the museum and are included in the budget. The rent relief
by the Town is significant, but is not quantified for this plan. The Town has agreed to continue with this
support assuming the Museum continues operations at this location. It is also recognized by all that the
total facilities occupied are in need of restoration and renovation at an estimated cost of $250k. There
is no budget at this time to proceed with these improvements.
The final point of interest when reviewing all documents is that the value of the historical items held for
conservatorship by the Museum are not reflected in the P&L. The museum’s collection of artifacts can
fairly be characterized as “priceless” but is not reflected in its P&L statement. Neither is the value of its
research library. While considerable in value, these items are held by the Museum in trust for charitable
and educational purposes; their value is what they teach about our County and our history.
Should the BOS agree to continue to support the Loudoun Museum per the FY 2013 Funding
Application, the grant is projected to be reduced from $70k to $63k, representing a 10% reduction from
FY 2012.
Market:
History is a huge market in the United States and in the National Capital Area. History is a subject that is
studied and experienced in elementary, intermediate and high school, colleges and universities. George
Washington University has a Master’s Program devoted to Museum operations and management. In
addition many organizations such as Scouting and multiple interest groups focus on the history of this
area. In addition with the Sesquicentennial celebrations of the Civil War, that included significant
engagements on Loudoun soil, the and the Bicentennial celebrations of War of 1812, new interests are
raised as to the rich resources Loudoun and the surrounding area provide. Historical sites, museums
and exhibits: attract thousands of tourists; and provide yet one more reason to come to Loudoun
County, playing a key role in educating society. Loudoun County offers a history experience to residents
and visitors alike. Where there is a market, there is opportunity. When implemented, the three plans
will better position the Loudoun Museum to obtain its fair share of the market. The business
proposition for the Museum is based on maximizing this opportunity.
The Loudoun Museum is ideally situated to serve the identified to capture that market as its stated
mission is to collect, preserve and interpret Loudoun County History through:
* Care of objects in the Museum's collection * Presentation of educational programs * Host visitors at the Museum
Proposed Actions:
1- Revitalize the Board Membership: This activity will need to be phased in over the next few years
by a redefinition of criteria (job description) for service as a Board Member.
2- Redefinition of the role of the Board: The Board needs to transition from a day to day operations
implementation to more of a governance role, concentrating on the Museum’s business plan,
development plan and operating plan. While maintaining full responsibility for the Loudoun
Museum, it must provide leadership to all three key activities.
3- Creation and implementation of a multifaceted Development function: In order to gain financial
independence the Museum must act in a formal and directed approach to fundraising. This will
be a primary focus of the turnaround activities. See attached fundraising recommendations, a
separate document.
4- Creation of an operating committee of the Board. This group would include the current Board
members who roll up their sleeves to help the museum execute its mission on a day to day
basis, and would help museum staff plan all on site exhibits and programs, as well as assist with
our partners’ plans for offsite display of traveling exhibits of artifacts in the museum collection.
5- Creating sustainable partnerships: the foundation has been established to work closely with
three groups as mentioned earlier. The goal is to build these partnerships to enhance the
display of the many artifacts in collections of the museum along with leveraging activities that
increase awareness and support of the development activities. In addition this committee will
focus on the many target audiences that are interested in learning and experiencing our rich
history.
6- Financial Plan: The attached spreadsheet mathematically depicts the minimum that must be
achieved financially for the museum to meet the guidelines where a majority of the operating
funds come from Loudoun Museum activities and not from County grants. Meeting this
objective requires:
a- Cooperation with other entities.
b- Leveraging mutual assets.
c- Establishing and growing a fund raising campaign
d- Limiting cost of operations growth to 2% or less in the current and next two budget years.
7- Additional Actions to be reviewed and implemented as appropriate:
a- Increase the use of volunteers to restore operating hours and days open, realizing potential
budget impact in utility costs, for example, may not immediately be recouped in increased
admissions.
b- Develop signage that increases visibility of the Museum location. Signage must comply with
Town and County regulations.
c- Explore a working relationship with George Washington University museum studies
programs and other Universities such as Patrick Henry and Northern Virginia Community
College.
d- Seek all viable partners to gain synergy in routine business operations to reduce costs
between non-profits.
e- Other potential opportunities that will surface as the plan is unfolding such as increasing
digital capabilities and off site displays.
If approved for the initial 50% of the proposed Funding Grant, it is the intent of the Loudoun Museum to
report back at the end of six months to provide the BOS with an update on all aspects of this plan. We
appreciate the patience and consideration provided by the BOS and look forward to a transformation of
our business structure and development initiative along with a revised focus on museum operations.
With the Board support and the support of our future partners, including the Town of Leesburg, we
believe this plan to be viable and reach the goals of reducing dependence on County grant funds and
increasing the visibility of the extended collection.
Respectfully submitted:
September 5, 2012
Loudoun Museum Board of Trustees
Elizabeth D. Whiting, President
September 2, 2012
To: Loudoun County Board of Supervisors
From: Loudoun Museum Board of Trustees
Re: Resource Development plan
Like all small nonprofits, the Loudoun Museum (hereafter ‘the museum’) is subject to negative events in
the economy, the town in which it resides and even the national political scene. And while these events
could be used as excuses for failure, the board of the museum chooses to see them as learning
opportunities and catalysts for positive change. The Board of Supervisor’s call for the museum to get
serious about its fund raising and to create and implement an aggressive plan for garnering the
resources it needs to function is one such event and has proven to be a very positive catalyst for change
at the museum. The Board of the museum thanks the Board of Supervisors for this call and offers a fund
raising plan in response to the Board’s legitimate concern that the museum diversify its funding.
Over the past four years the museum and its volunteer board have taken very specific steps to
strengthen its operation and reduce costs. We are happy to report to the Board of Supervisors that
those steps have been successful and in fiscal 2012 the museum operated in the black. From reducing
staff from five full time to two part time, reducing hours, increasing volunteer participation and being
diligent about reducing costs in places like utility costs, the museum board has acted responsibly to work
to stabilize the museum’s finances.
In addition program cuts have been made in order to reduce expenses.
Our goal in the future-and this fund raising plan is predicated on that goal-is to raise enough money and
work with the county to restore the comprehensive program of the museum and return to a staffing
structure that is appropriate for such an important institution in Loudoun County. And our goal is to
reduce our dependence on our largest donor, the county, over the next three years.
This fund raising plan takes into account all potential fund raising opportunities by category (corporate,
individual, event, foundation) and establishes certain guiding principles for development going forward:
While we are very proud of our Board we also know that the best nonprofits have the best
volunteer boards. This plan calls for an overhaul of both our recruiting process and our board
management process with an eye toward adding people who have resources and can help us
attract resources and adding more people who, like the existing board, are truly committed to
the museum. Below in the Board section you will see our new Job Description for Board
members which has been approved by the existing board.
We recognize that special events, while good for spreading the message about the museum are
not the best way to raise money. Special events are time consuming and seldom raise the
resources the organization hopes for. Our fund raising in the future will continue to include
special events focused to increase revenue potential while serving to spread the message about
the work of the museum.
Attachment 2
Individual giving is the fastest growing giving for nonprofits nation-wide and the board has
determined it will take specific steps to increase the number of individuals and the size of their
gifts going forward. Most importantly the board has already taken steps to create a “Sustainers
Program” for monthly gifts from our donors using their debit and credit cards.
Too often nonprofits like the museum see donors as donors in only one category. This means an
event donor is an event donor; a corporate donor is a corporate donor etc. The most successful
nonprofits see all donors as potential ‘comprehensive donors’ meaning having potential to give
in more than one category. For example an individual making a gift to the museum might be
CEO of a corporation that also makes gifts, or might be on the Board of a grant making
institution that might also make a gift to the museum. We want to potentially get gifts from
more than one source from a donor. By doing just a little bit of research on our donors we
believe we can expand their giving and thus increase funding to the museum.
The museum must do a better job of following up on donors from year to year to ask them to
give again and increase their gift. In the future the museum board will be careful not to let
donors lapse without being asked to support us again and we will make sure to ask donors to
increase their gifts from year to year.
If the museum is going to successfully compete with all other nonprofits seeking the
discretionary dollar of donors we are going to have to prove we are worthy of receiving a gift.
This means we must understand what makes us unique, and just what message we are
delivering to the donor and the general public that is worthy of a gift. In the next few weeks the
board will work with a consultant who will help us determine our Unique Service Proposition
and our messaging to increase the chances donors will want to give to the museum.
We know the Board of Supervisors understands the value of the museum to the people of
Loudoun County but we have not done a good enough job of showing the Board of Supervisors
what we are doing with their money. If the Board will fund us in the coming fiscal year we
propose to establish a regular quarterly update that will show the Board how we are spending
county money, how we are leveraging county money for private dollars and just how much
more effective we are in telling our story to the general public and especially donors.
Board development and management
Simply put the best nonprofits have the best boards. And members of those boards know they have
legal and fiduciary responsibility for the nonprofit. Those boards also are very transparent with
prospective members-they make sure they know just what will be expected of them. And those
nonprofits recruit the best people for their boards by helping them be successful as board members, not
wasting their time and not asking them to make a full time commitment to the nonprofit.
Starting in fiscal year 2013 the museum will adopt the following new policies to increase the
effectiveness of its board (note-the existing board has already reviewed these policies and approved
them):
The board of the museum has a new job description that articulates certain things expected of
board members-
All board members are expected to attend a minimum of 75% of Board
meetings; currently we have 12 meetings a year. In the future we will reduce
this to four to make sure our board members are not asked to overextend their
commitment to us;
Board members must agree to serve on a minimum of one standing committee
of the board; the best boards have a committee system that works which we
hope to do also;
All board members are expected to give and or get a minimum of $1000
annually;
Board members will commit to make the museum one of their most important
philanthropic activities while serving on the board;
Board members will be asked to serve only one three year term after which the
board and the individual can decide if continuing is in their mutual best interest;
Individual giving
Over 80% of all giving in the United States comes from people-not corporations, not foundations, not
governments. The board of the museum recognizes this and beginning in fiscal year 2012 will
implement the following new policies and programs:
All donors over the last three years will be solicited again, asked to renew their gifts and in the
case of donors from last year asked to increase their gift a minimum of 10%;
Donors having made gifts of at least $250 will be considered major donors to the foundation
and the board will take special steps to a) recognize their gifts, b) ask them to renew their gifts,
and ask them to increase their gift. More importantly all major donors will be asked to make
three year pledges to give the museum better opportunity for predicting income in the coming
years;
The museum will announce its new Sustainers Program in the very near future. This program,
which gives people an opportunity to make monthly gifts with their credit or debit cards, is in
line with the fastest growing form of individual giving in the nonprofit sector. This simple
method of giving has proven to increase gifts dramatically especially for small nonprofits.
(People who, for example, have given $100 in the past will be more inclined to give more if they
can do it monthly off their debit or credit card. A $10 gift per month already adds 20% to their
gift. A $25 a month gift triples their gift.)
Corporate giving
It is a myth that corporations are giving less to charity now than in the past. Corporations are good
citizens and want to support things that matter to their customers. That means the museum must
understand just what its value is to a corporation and design systems for corporations to receive
recognition for gifts.
In addition the board of the museum will soon be considering and approving its new Sponsorship
Program designed to show companies and businesses in Loudoun County the value of supporting the
museum and just what benefit they derive from doing so. We also intend to have a special Corporate
Giving Committee on the board designed to reach out and solicit more corporations annually.
Foundation giving
The museum board knows there are foundations that give to historic museums and will begin
investigating those that have given to museums of our size and scope in fiscal year 2012. Because of the
long lead time needed for most foundation gifts the museum Board will not concentrate on this revenue
stream in 2013 with an eye toward achieving foundation gifts of a more substantial nature starting in
2014.
Special events
Currently the museum conducts two major special events annually that are very successful, a wine event
and Hauntings. Our goals in future years are to continue and strengthen these two events for the
museum increasing participation and revenue.
Membership
Through means mentioned above under Sustainers the museum will begin an aggressive membership
drive in 2013. Our goal is to dramatically increase awareness about the value of membership and
increase membership by a minimum of 15% each of the next two years.
Telling our story better
Fund raising success follows an increase in awareness of the museum and its importance to Loudoun
County. The museum will therefore soon conduct a thorough review of its messages, how it delivers the
messages and how it can increase knowledge of its program with the general public and our donors.
We will also conduct an exercise to determine what makes us different from other cultural and historic
institutions in our immediate vicinity in an effort to more clearly tell our story and influence
philanthropic giving. All of our written material and web site will begin to stress this difference and our
unique place in Loudoun County.
Other steps we are already working on-our web site will be refreshed and made more user friendly and
interactive and we will active a Facebook Page to give people a chance to follow us and interact with us
more easily.
Finally we will ask several members of the media/marketing and communications sector in Loudoun
County to join our new Marketing Committee that will meet regularly and work to disseminate
information about the museum to the general public.
Kurt Aschermann
13 Liberty St. NW
Leesburg, VA 20176
Loudoun Museum P&L With Resouce Development Component
Income FY11-12 FY12-13 FY13-14 FY14-15
Marketing&Program (1)
Admissions 2,044 1.98% 2,500 2.02% 3,000 2.42% 3,000 2.29%
Membership 7,080 6.85% 10,000 8.10% 15,000 12.10% 20,000 15.27%
Donations (2) 6,430 6.22% 27,000 21.86% 20,000 16.13% 22,000 16.79%
Events 17,743 17.18% 18,000 14.57% 20,000 16.13% 20,000 15.27%
Board 3,000 2.43% 3,000 2.42% 3,000 2.29%
BOS Grant (3) 70,000 67.77% 63,000 51.01% 63,000 50.81% 63,000 48.09%
Total Income $103,297 $123,500 $124,000 $131,000
Expense 2.00% 2.00% 2.00%
Banking 188 0.21% 192 196 200
Book 2,461 2.76% 2,510 2,560 2,612
Insurance 6,364 7.14% 6,491 6,621 6,754
Bookkeeper 8,775 9.84% 8,951 9,130 9,312
Facilities Mgmt 7,813 8.76% 7,969 8,129 8,291
Marketing 5,286 5.93% 5,392 5,500 5,610
Miscellaneous 282 0.32% 288 293 299
Office 4,486 5.03% 4,576 4,667 4,761
Volunteer Program -100 -0.11% 1,000 1,500 4,000
Payroll (4) 40,876 45.84% 51,000 51,000 55,000
Professional Dev 70 0.08% 71 73 74
Membership 310 0.35% 316 323 329
Program 2,821 3.16% 2,877 2,935 2,994
Museum Shop 752 0.84% 767 782 798
Utilities 8,792 9.86% 8,968 9,147 9,330
Membership Development (5) 15,000 20,000 20,000
Total Operating Exp. $89,176 $116,368 $122,855 $130,362
Loan Repayment 7,000 7,000 5,000
Total Cash Expense 96,176 123,368 127,855 130,362
Surplus $7,121 $132 -$3,855 $638
Retained $ $36,806 $36,938 $33,083 $33,720
Notes:
1. All revenue included in 1 of 4 categories.
2. Donations includes fund from Resource Development. In FY13, $10k pledged for that year.
3. County should stabilize at 40% to 50% of Museum revenue.
4. Payroll increse reflects need to increase staff to achieve revenue goals and meet Museum mission.
5. Revenue from development will be reflected in either membership or donation category.
Attachment 3
Date of Meeting: October 16, 2013
#13j
BOARD OF SUPERVISORS
ACTION ITEM SUBJECT: FINANCE/GOVERNMENT SERVICES & OPERATIONS
COMMITTEE REPORT: Budget Process and Timeline for
Non-Profit Funding
ELECTION DISTRICT: Countywide
CRITICAL ACTION DATE: October 16, 2013
STAFF CONTACTS: Julie Grandfield, Assistant County Administrator Ben Mays, Management & Financial Services
Falayi Adu, Management & Financial Services
RECOMMENDATIONS:
Committee: On October 8, 2013, the Finance/Government Services and Operations Committee
voted 4-0-1 (York absent) to recommend to the Board of Supervisors that the Board reaffirm the
process for a needs-based grant program with a defined funding limit for Intergovernmental and
Non-Profit Organizations, as approved by the Board on July 17, 2013; that this grant program
follow the revised process and timeline outlined in this item; that the Areas of Need be
consolidated from 10 areas to five as listed in this item; that the annual application process allow
for organizations to apply for only one Areas of Need; and that groups applying for funds should
fit into the definition provided in that category. Staff: Staff concurs with the Committee’s recommendation..
BACKGROUND: In 2012 the Contractual, Intergovernmental, and Non-Profit Organizations
grant application, review and award process was revised to improve efficiency and ensure
effective use of available resources. Improvements included an earlier Notice of Funding
availability and submission deadline to allow more time for review, encouraging electronic
submission of applications to improve process efficiency, and adding an analysis of key financial
ratios and economic impact to the scoring criteria. At the June 5, 2013 Board of Supervisors business meeting, Supervisor Letourneau initiated an
item and moved that the Board direct the Finance/Government Services and Operations
Committee to review this process further, with the intention of shifting the focus to a needs-
based grant program with a defined funding limit (Motion passed 9-0). The intent of the initiative
is to ensure that awards are considered only in areas identified as priorities by the Board of
Attachment 4
BOARD OF SUPERVISORS October 16, 2013
Page 2 Supervisors, and to remove individual appropriations from the budget process, which can often
become time consuming and influenced by political considerations. The revamped program would set forth a short list of “Areas of Need” in the County. Areas of
Need are to be identified and approved by the full Board in September each year (typically
during fiscal guidance), along with relative weighting of each area. During the budget process,
an overall funding amount for non -profit organizations would be set. Funding would then be
allocated to the identified Areas of Need, based on the pre-approved weighting. Following the
Board’s guidance on the total amount of funding available, organizations would apply for funds
and final awards would be subject to the amount of available funding. Staff would determine
awards using the existing methodology, which includes review, scoring, and ranking of
applications by an internal Review Committee made up of subject matter experts, and an analysis
of each applicant’s financial ratios, trends, and economic impact by the Budget Office. The
Board would then approve these appropriations as part of an Administrative Items Report. On July 17, 2013, the Board of Supervisors voted unanimously to approve the July 9, 2013
recommendation of the Finance/Government Services and Operations Committee to direct that:
a. staff prepare a process establishing Areas of Need categories under which non-profit
applicants must fall in order to receive county funding and that groups can qualify for
more than one Area of Need and more than one grant;
b. that the Areas of Need are General Medical, Speech and Hearing, Dental, Women and
Children, Mental Health and/or Disability, Homelessness, Emergency Services, Food
Pantry, Administrative, and Recreation and Culture;
c. that Areas of Need may be granted a funding amount annually during the Board budget
process, though the Board may elect to set a zero funding amount for any category;
d. That staff would continue to review non-profit applications in each Area of Need and bring
back recommendations for grants to the full Board as an administrative item separate from
the Board budget process;
e. that the Economic Development category in non-profit funding be moved to another budget
category unrelated to this process;
f. that non-profit funding applicants list how much they receive in other county funding,
resources, or staff time;
g. that staff identify services currently performed by FY14 county funded nonprofits that
Loudoun County would likely have to provide if funding was not continued; and
h. that staff develop a process and timeline to be presented to the Finance/Government
Services and Operations Committee in September. ISSUES: Staff recommends the process and timeline described below based on recent
experience with process implementation. This includes changes to the timeline for non-profit
funding decisions and applications, consolidating the Areas of Need and limiting applicants to
one Area of Need. The modifications are intended to enhance transparency and streamline the
application, review, and award process.
BOARD OF SUPERVISORS October 16, 2013
Page 3 1) Timeline—Staff recommends modifying the application schedule so that applications are
accepted after budget deliberations have concluded. The table below shows the recommended
sequence for consideration of non-profit funding as part of the budget process.
Timeframe Event
September FGSO Committee selects and makes recommendation to BOS on Areas of Need to receive funding and relative distribution of total funding across Areas of Need for
upcoming fiscal year
September BOS votes on Areas of Need to receive funding and relative distribution for
upcoming fiscal year
February – March BOS provides guidance on total amount of funding available for non-profit grants
during budget work sessions
March Publication of Notice of Funding Availability for non-profit grants, based on
approved Areas of Need (first week in March)
April Grant applications due to Budget Office (first week in April)
April BOS adopts Appropriations Resolution, including total funding and allocation of
defined amounts to each Area of Need for non-profit grants
April – May Applications reviewed by internal Review Committee and Budget Office
May Staff compiles results of scoring, ranking, and funding recommendations for
individual organizations and forwards to BOS as an Administrative Item
May-July BOS approves allocation of specific grant amounts to successful organizations, up
to the total amount appropriated, as part of an Administrative Items Report.
- Item continues on next page -
BOARD OF SUPERVISORS October 16, 2013
Page 4 2) Consolidating the Areas of Need—Staff recommends consolidating the original 10 Areas of
Need into the 5 outlined below. This combines all health related services together and combines
hunger and homelessness mitigation.
Proposed
AREA OF NEED % of
Funding
1 Health and Related Services, including: 60%
• General Medical - provides medical services to Loudoun residents. 24%
• Mental Health and/or Disability - provides services to Loudoun residents 3%
related to living with mental illness or disability, including counseling,
referrals, transportation, and other services.
3%
• Dental - provides dental services to Loudoun residents.
• Speech and Hearing Services- provides services for Loudoun residents 10%
related to speech and deaf or hard of hearing issues.
• Related - provides supportive services including prenatal care, infant 10%
wellness, prescription pick-up, assisted transportation, assistance with basic
tasks, independent living support, and hospice services.
2 Hunger and Homelessness Mitigation- provides shelter and/or food pantry 7%
supply services to Loudoun residents.
3 Emergency Services - provides responsive services to Loudoun residents in 20%
emergency/disaster situations., domestic violence, basic services such as food,
shelter, and clothing
4 Administrative Services - provides administrative or clearinghouse services for 8%
other non-profit organizations in the county.
5 Recreation and Culture - provides recreation activities or cultural events for 5%
Loudoun residents.
TOTAL 100%
3) Limiting Applicants to One Area of Need—Staff recommends limiting organizations to
applying for, and potentially receiving funding from, only one Area of Need, based primarily on
an organization’s principal service type. Inviting organizations to apply for, and potentially
receive funding from, more than one Area of Need has the potential to complicate the
application, review, and funding award process. In that scenario, applicants could apply for as
many Areas of Need as possible, perhaps with the perception that such an approach enhances the
probability of approval and level of funding. Consequently, during review, every organization’s
application would need to be reviewed against each Area of Need applied for to determine
eligibility, and scored separately against other applicants within each Area of Need. A
multifaceted award process, with applicants potentially receiving funding from multiple Area of
Need funding sources, would further add to the time required to manage the process. FISCAL IMPACT: It is expected that the process for reviewing and awarding funding
according to the ‘Areas of Need’ would not require additional staff resources, if applicants are
limited to only applying for one area of need.
BOARD OF SUPERVISORS October 16, 2013
Page 5
DRAFT MOTION:
1. I move the recommendation of the Finance/Government Services and Operations
Committee that the Board of Supervisors reaffirm the process for a needs-based grant
program with a defined funding limit for Intergovernmental and Non-Profit
Organizations, as approved by the Board on July 17, 2013.
I further move the recommendation of the Finance/Government Services and Operations
Committee that this grant program follow the revised process and timeline outlined in
this item.
I further move the recommendation of the Finance/Government Services and Operations
Committee that the Areas of Need be consolidated from 10 areas to 5 areas, as outlined in
this item, and that the annual application process allow for organizations to apply for
funding in one Area of Need only.
OR
2. I move an alternate motion. ATTACHMENT: Services Provided by Non-Profit Organizations
Date of Meeting: July 2, 2014 f. FY 2015 NON-PROFIT GRANT FUNDING RECOMMENDATIONS ELECTION DISTRICT: Countywide ______________________________________________________________________________
STAFF CONTACT(S): Julie Grandfield, Assistant County Administrator
Ben Mays, Management & Financial Services Falayi Adu, Management & Financial Services
BACKGROUND: The FY 2015 Adopted Budget includes an allocation of defined amounts to specific Areas of Need, as identified by the Board of Supervisors, for non-profit grants. This report outlines the staff review process of FY 2015 non-profit grant applications and staff recommendations for funding.
The FY 2015 Adopted Budget overall allocation of $998,129 available for non-profit grants is distributed to the Areas of Need as shown below:
Area of Need FY 2015 Percent
Adopted Allocation
Health and Related Services $598,877 60% Includes services related to general medical, mental health
and/or disability, dental, speech and hearing as well as
related supportive services.
Hunger and Homelessness Mitigation 69,869 7%
Provides shelter and/or food pantry supply services.
Emergency Services 199,626 20% Provides responsive services to residents in emergency or
disaster and domestic violence situations with basic
services such as food, shelter and clothing.
Administrative Services 79,850 8% Provides administrative or clearinghouse services for other
non-profit organizations.
Recreation and Culture 49,906 5% Provides recreation activities or cultural events for
residents.
Total $998,129 100%
A total of 40 non-profit organizations submitted applications for FY 2015 Loudoun County grant funding. Applications were reviewed and scored by review committees made up of county staff subject matter experts for each Area of Need. Areas of review included services provided, mission, demonstration of need, and other available resources. In addition, the Budget Office conducted an analysis of each applicant’s financial ratios, trends, and economic impact, subject to availability of relevant data as provided by each applicant.
Attachment 5
Reviewers examined each application independent of other reviewers in the group and assigned scores in each of the areas outlined above. The scores for each application were then compiled by the Budget Office and an average score across all reviewers evaluated for each application. Applications were then ranked by total score within each Area of Need.
With the goal of keeping the total funding level within the FY 2015 Adopted amount, the Review Committee used the following approach for funding recommendations:
Step I • Organizations ranked in the top 33% within each Area of Need are recommended
for a 5% increase over FY 2014 funding amount (assuming they received funding in FY 2014). New applicants and/or those not recommended in FY 2014 that ranked in the top 33% are recommended for $5,000. New applicants ranked outside the top 33% are not recommended for funding.
• Organizations ranked in the middle 33% are recommended for level funding
(assuming they received funding in FY 2014).
• Organizations ranked in the bottom 33% are recommended for a 5% decrease over
FY 2014 funding amount (assuming they received funding in FY 2014).
Step II • Individual recommendations determined in Step I were adjusted depending on the
total funding amount allocated to each Areas of Need. For Areas of Need where total funding amount allocated exceeds total Step I recommendations, individual recommendations were adjusted upward proportionally, but not exceeding individual requests. As a result, for some Areas of Need, total funding amount recommended may not equal total funding amount allocated. For Areas of Need where total funding amount allocated was lower than total Step I recommendations, individual recommendations were adjusted downward proportionally.
The resulting recommendations are shown in the following tables:
FY 2015 FY 2015 FY 2014
Recommended Requested Adopted
Health and Related Services $594,494 $981,011 $544,643
INMED Partnerships for Children (Mother Net) $47,176 $75,000 $42,000
Loudoun Volunteer Caregivers $34,986 $40,000 $31,147
Top
Loudoun Free Clinic $84,243 $90,000 $75,000
Northern Virginia Dental Clinic, Inc. $25,000 $25,000 $25,000
CAPITAL CARING (formerly Capital Hospice) $11,794 $15,000 $10,500
A Place to Be $5,349 $20,000 $0
Alzheimer's Association National Capital Area Chapter $5,349 $15,000 $0
Northern Virginia Family Service (LAMP) $8,424 $25,779 $7,875
Northern Virginia Family Service (Early Childhood
Division) $8,023 $15,000 $7,500
Mid
d
le Brain Injury Services (Head Injuries Services Partnership) $16,310 $22,132 $15,246
HealthWorks for Northern Virginia $176,911 $250,000 $165,375
ENDependence Center of Northern Virginia $53,488 $60,000 $50,000
Friends of Loudoun County Mental Health $16,046 $18,600 $15,000
Northern Virginia Resource Center for Deaf & Hard of
Hearing Persons $21,395 $22,000 $20,000
Loudoun Breast Health Network $0 $10,000 $0
Inova Loudoun Hospital Foundation $0 $15,000 $0
Bott
o
m Blue Ridge Speech & Hearing Center $80,000 $80,000 $80,000
Metropolitan Washington Ear $0 $2,500 $0
CrisisLink $0 $15,000 $0
Family Alliance Network $0 $65,000 $0
Veterans Moving Forward $0 $100,000 $0
FY 2015 FY 2015 FY 2014
Recommended Requested Adopted
Hunger and Homelessness Mitigation $69,869 $75,000 $60,000
The Good Shepherd Alliance, Inc. $69,869 $75,000 $60,000
FY 2015 FY 2015 FY 2014
Recommended Requested Adopted
Emergency Services $199,626 $315,032 $238,007
Top
Loudoun Interfaith Relief, Inc. $44,988 $75,000 $52,500
Loudoun Citizens for Social Justice, Inc./LAWS $71,981 $100,000 $84,000
Mid
d
le
American Red Cross in the National Capital Region $20,403 $25,000 $25,000
Legal Services of Northern Virginia $58,782 $80,032 $72,028
B o t t o m
Ayuda $0 $10,000 $0
Help for Others, Inc. $3,473 $25,000 $4,479
FY 2015 FY 2015 FY 2014
Recommended Requested Adopted
Administrative Services $79,850 $85,000 $75,000
Loudoun Cares $79,850 $85,000 $75,000
FY 2015 FY 2015 FY 2014
Recommended Requested Adopted
Recreation and Culture $49,906 $176,752 $80,479
Top
Loudoun Youth Inc $3,158 $5,000 $5,000
Loudoun Literacy Council $4,725 $15,000 $7,479
Children's Science Center $3,008 $5,000 $0
Mid
d
le Round Hill Arts Center $0 $7,500 $0
All Ages Read Together $0 $15,000 $0
Loudoun Symphony Association, Inc. $3,008 $7,500 $5,000
Bott
om
Loudoun Museum $36,007 $62,776 $63,000
Journey Through Hallowed Ground $0 $38,976 $0
Bluemont, the Cultural Spirit of our Communities (formerly
Bluemont Concert Series) $0 $20,000 $0
Non-profit organizations with a specific focus on economic development were reviewed by the Department of Economic Development and County Administration staff, who made the following funding recommendations for these organizations. The FY 2015 Adopted Budget overall allocation available for economic development related non-profit grants is $257,400.
FY 2015 FY 2015 FY 2014 Recommended Requested Adopted
Economic Development $220,000 $220,000 $220,000
Washington Airports Task Force $50,000 $50,000 $50,000
Loudoun Small Business Development Center $170,000 $170,000 $170,000 DRAFT MOTION(S):
1. I move that the Board of Supervisors approve grant funding for the Non-Profit
Organizations as recommended in this staff report and that staff be directed to notify select applicants and process the payment of grant funding.
OR
2. I move an alternative motion.
