nonprofit funding: friend or foe?
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"Nonprofit Funding: Friend or Foe?" presented by Mecklenburg County, NC, at Winter 2013 NCLGBA ConferenceTRANSCRIPT
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December 12, 2013NCLGBA Winter Conference
Nonprofit Funding: Friend or Foe?
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MecklenburgCountyNC.Gov
• Business justification for nonprofit funding• What’s our challenge?• What’s our solution?• What’s our process?• Lessons to share
Agenda
2 www.MecklenburgCountyNC.gov
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MecklenburgCountyNC.Gov
• Can’t do it all
• Others do it better
• Builds trust
• A process could be your solution
Why Fund Nonprofits?
3 www.MecklenburgCountyNC.gov
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• Align nonprofit funding investments with Mecklenburg County’s Critical Success Factors
• Manage competitive process that will obtain the best results for the County’s investment
Goals for the Community Service Grant (CSG) Process
4
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MecklenburgCountyNC.Gov
Application Review Manager’s Recommendation BOCC Decision
CSG Funding Process
5 www.MecklenburgCountyNC.gov
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MecklenburgCountyNC.Gov
Application
6
Application Review Manager’s Recommendation BOCC Decision
• Instructions• Eligibility Criteria• Kickoff• Applications submitted
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MecklenburgCountyNC.Gov
• Serve the residents of Mecklenburg County• 501(c)(3) nonprofit classification with IRS• Submit independently audited financial
statements• Submit documentation to support a diverse
workforce • Clearly contribute to one of the four target
areas
Eligibility Criteria
7
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MecklenburgCountyNC.Gov
Strategy to Budget
8
Critical Success Factors:• Affordability• Sustainability• Jobs/Workforce and
Economic Development
• Service Investments and Delivery Model
• Fiscal Discipline• Operational
Excellence
Four Target Areas:1. Train and Place
Unemployed Workers2. Improve the High
School Graduation Rate3. Prevent Health Risks
and Diseases4. Promote Financial Self-
Sufficiency
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MecklenburgCountyNC.Gov
Review
9
Application ReviewManager’s
Recommendation
BOCC Decision
• Review Panel• Evaluation Criteria
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MecklenburgCountyNC.Gov
• Review Panel – Internal and external reviewers
• Evaluation Criteria⁻ Performance measures⁻ Demonstration of need⁻ Service strategy and delivery process⁻ Alignment with target area
Application Review
10
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MecklenburgCountyNC.Gov
• For each measure, is data available and can results be replicated?
• Are measures reflective of the full scope of service?
• Are the targets for the outcome measures realistic and ambitious based on performance and industry standards?
Performance Measurement Key Questions
11
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MecklenburgCountyNC.Gov
Manager’s Recommendation
12
Application ReviewManager’s
Recommendation
BOCC Decision
• Reviews ranking of proposals• Considers staff recommendations
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MecklenburgCountyNC.Gov
• Top-ranked organizations are included in the County Manager’s Recommended Budget
• The Board of County Commissioners makes final decision for grantees when the budget is adopted
Budget Decisions
13
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MecklenburgCountyNC.Gov
BOCC Decision
14
Application ReviewManager’s
Recommendation
BOCC Decision
• Political realities• Final list of grantees
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MecklenburgCountyNC.Gov
• Ultimately nonprofit funding is a political decision– Example: Bethesda Health Clinic
• Deliberation time for nonprofits– Example: CMS vs. CSGs
Political Realities
15
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MecklenburgCountyNC.Gov
1. Increase Transparency2. Foster Communication3. Enhance Customer Service4. Keep Process Consistent and Fair5. Continuous Improvement
Better Practices
16
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NCLGBA Winter ConferenceCommunity Service Grants
December 12, 2013