Strategic Financing 101 Georgia 21st CCLC Webinar November 30, 2012 Shawn Stelow Griffin, The Finance Project Jill Riemer, Georgia Afterschool Investment Council Katie Kross, Georgia Afterschool Investment Council Introduction: (customize to audience and conference) Imagine you just received a new grant to start-up a xyz program in your community. You spent the last year planning the program and hiring staff. Your program is up and running, kids are attending, early evaluation data is positive. You’ve developed a solid reputation. And now you have 6 months left before your grant runs out. What are you going to do? This workshop will help you move from start-up and seed grants to longer-term success. Planning for sustainability prepares xyz programs to survive fiscal and political transitions and equips them to marshal the range of resources a program needs to thrive over the long term.  This session will introduce a framework for thinking about sustainability, highlight the steps involved in creating a sustainability plan, and walk through some planning documents to help you get a handle on how much funding you need to protect your core work, and how much funding you need to grow your work strategically. © 2012 The Finance Project

What We Will Cover Today Review: A Framework for Strategic Financing Making Cost Determinations Gap Analysis Discuss Funding Sources Next Steps: Getting Prepared for Webinar 3, Aligning Fiscal and Non-Fiscal Resources In both Prioritizing Key Strategies and Activities and What Do You Want to Sustain: Scope and Scale, there will be an introduction to the theory and the worksheets, a walk-through of an exemplar, and a debrief on the topic. © 2012 The Finance Project

Key Elements of Sustainability 1. Vision 2. Results orientation 3. Strategic financing orientation 4. Adaptability to changing conditions 5. Broad base of community support 6. Key champions 7. Strong internal systems 8. Sustainability plan REVIEW You’ve come up a great list of attributes of successful, sustainable organizations. Based on its work with communities across the country, The Finance Project developed the following framework for thinking about sustainability that not unlike the list you all developed. Certainly adequate financial resources is important to the long-term success of any program or initiative. However, there are a range of other resources critical to the sustainability of your work as well. Vision: Having a clear picture of what it is you want to sustain, and how your work fits in the larger community. Results Orientation: Having a clear sense of the results you want to achieve – the difference you expect to see as a result of your work; being able to track your progress, and use that information to make decisions about your efforts. Strategic Financing Orientation: Being able to accurately project the cost of your initiative and develop a diverse portfolio of funding sources from both private and public sources to provide a stable base of support over time. Broad-Based Community Support: Strategically considering whose support you need and developing appropriate vehicles for community involvement in your initiative. Key Champions: Cultivating key champions -- the leaders from business, faith-based institutions, government, and other parts of the community who use their power and influence to generate support for your initiative. Adaptability to Changing Conditions: Being proactive in the policy environment and adjusting to changing social, economic, and political trends in the community. Strong Internal Systems: Building strong systems and structures, such as fiscal management, information, HR, communications and governance systems. Sustainability Plan: Putting all your good thinking together in a clear and compelling written plan that can be used to manage and market your work. Reflect back from groups’ lists to this one – translating language as needed; pointing out differences – if their list includes elements not included in TFP’s framework; if our framework includes things they didn’t come up with Potential questions: Is this list sequential – do you have to do one thing before another? Being clear on your vision and the results you want to achieve is critically important. . .and drives how you think about other sustainability strategies. . .which is why those two are at the top of the list. The other elements really aren’t in any particular order – and certainly overlap with each other. Do you have to have all the elements to be sustainable? Is there some magic combination of elements? We haven’t found a magic formula. Some programs will be sustained without all of these elements. However, in looking at successful initiatives across the country, most were paying attention to all of these issues in some way. OPTION: (1) Go through this list briefly. . .and move into element by element slides. (2) go through this list in more detail, use element by element slides in handouts, but don’t use them during your presentation. © 2012 The Finance Project

Strategic financing is… a process that can allow you to map out your funding needs and then to seek funds that best meet these needs an integrated part of your overall sustainability plan REVIEW Also known as a “business plan” for non-profits Differs from a “strategic plan”: more intensive focus on a financing plan and the administrative strategies to support long-term goals than typically strategic planning process includes © 2012 The Finance Project

Take a Strategic Approach to Financing Your Work Clarify “Financing for What?” Estimate Fiscal Needs Map Current Spending Assess the Spending Gap Identify Funding Sources Discuss the steps in strategic financing—in this webinar we will be focusing on the first step © 2012 The Finance Project 5

1. Clarifying Financing for What? Information Needed Scope of supports and services (e.g. population, geographic area, type of service(s), when offered, where located, what standard of quality) Scale of supports and services (number of students served, number of sites operating) Ramp-up Assumptions (if you are expanding, over what period of time? With what benchmarks?) Sustainability planning gives you cover to ask some hard questions of your leadership, board, and key staff—over time many organizations experience mission drift—this process gives you the opportunity to “right size” your strategies and activities OR to “right size” your vision and mission—if you are a successful organization, and there is demand for your services—you need to consider if your initial thoughts about what your community needed was wrong, or if you were wrong about how you were going to go about meeting those community needs. © 2012 The Finance Project

2. Estimate Fiscal Needs http://www.wallacefoundation.org/cost-of-quality/Pages/default.aspx This decision-making chart can help you identify the key strategies and activities that are core to your mission, AND an effective strategy for meeting the community needs/ and the mission of the organization. Give ~10 minutes for the exemplar(s) to go through their process of completing the worksheet, including their thought process, who they worked with, what they discovered, and actions to be taken. © 2012 The Finance Project

Worksheet 1: Determining the Full Cost of Your Afterschool Program – Theory Key Considerations: What activities were identified as priorities in the previously completed worksheets? Include start-up (one-time) costs, ramp-up costs (any addition costs associated with expansion), and ongoing operating costs. Cost assumptions to include: Strategy or Activity; Number of clients served; Number of sites; Required staff; timeframe Have participants bring the worksheet to their sustainability planning committee (or administration, established work group, or advisory council) to be completed. © 2012 The Finance Project 8

Determining the Full Cost - Exemplars Be honest—consider completing two copies of this chart—one for Core work, and one for additional work you’d like to take on. List the major strategies and activities in priority order—you’ll want to fund the core work first and then the “nice to have” activities. The information on this worksheet can then be used to create a strategic financing plan that lays out fiscal needs, in-kind needs, and strategies to fill those need keyed to a timeline that takes into account when the funds are needed. © 2012 The Finance Project 9

Exemplar Worksheet Sample 10

Exemplar Worksheet Sample 11

Determining the Full Cost of Your Afterschool Program - Debrief Do your costs differ from year to year? Do they increase or decrease over time? Do some activities cost less than anticipated? More than anticipated? © 2012 The Finance Project 12

Worksheet 2: Determining Available Resources - Theory Key Considerations: What resources do you have in place? What resources will you likely have in place? Over what timeframe will these resources be available? Are the resources restricted for a specific activity? © 2012 The Finance Project 13

Determining Available Resources - Exemplars Be honest—consider completing two copies of this chart—one for Core work, and one for additional work you’d like to take on. List the major strategies and activities in priority order—you’ll want to fund the core work first and then the “nice to have” activities. The information on this worksheet can then be used to create a strategic financing plan that lays out fiscal needs, in-kind needs, and strategies to fill those need keyed to a timeline that takes into account when the funds are needed. © 2012 The Finance Project 14

Exemplar Worksheet Sample 15

Exemplar Worksheet Sample 16

Determining Available Resources - Debrief Are there many restrictions on your funding? Or is your funding generally unrestricted? Do multiple sources of funding end around the same time or are the end dates spread out? Is your funding from diverse sources? Is your funding primarily monetary or in-kind? © 2012 The Finance Project 17

Worksheet 3: Assessing the Resource Gap - Theory Key Considerations: How do costs differ for each year of the plan? Over what timeframe will these resources be available? When does each resource run out? © 2012 The Finance Project 18

Assessing the Resource Gap - Exemplars Be honest—consider completing two copies of this chart—one for Core work, and one for additional work you’d like to take on. List the major strategies and activities in priority order—you’ll want to fund the core work first and then the “nice to have” activities. The information on this worksheet can then be used to create a strategic financing plan that lays out fiscal needs, in-kind needs, and strategies to fill those need keyed to a timeline that takes into account when the funds are needed. © 2012 The Finance Project 19

Exemplar Worksheet Sample 20

Exemplar Worksheet Sample 21

Assessing the Resource Gap - Debrief Are your funding gaps/surpluses concentrated among specific activities? In a specific year? If you have surpluses, can those funds be used to cover other funding/resource gaps? Or is that funding/resource restricted for that activity? © 2012 The Finance Project 22

Indentifying Funding Sources and Financing Strategies Suggested Process: Clarify what you need and when Review current funding mix Get more information about funding sources Determine what funding sources are most appropriate Start early: much easier and less stressful to do this at the beginning of year 2 in a three year grant, than with only 6 months left of funding. . . Resources: how much time can you and a planning group commit to this process? Do you have resources for an outside facilitator? Who should be involved: those who have an important role in the future of your initiative Sustainability planning isn’t a one-shot deal: once your done you put the plan and the shelf and magically you’ll sustainable. You’ll need to review regularly (quarterly), monitor your progress, and make corrections as needed. . .making it part of your everyday management routines means that sustainability isn’t something “extra” you do. . .it’s simply a part of your work. © 2012 The Finance Project

Preparing for Strategic Financing Meetings Pull relevant documents that your program has already developed Create new planning documents, as needed Present materials and analysis to Local Sustainability Team (LST) and ask for their input on filling gaps Examples of Documents to Assemble: Current grant budget Current grant cycle List of current funding streams List of in-kind donations/services Any restrictions on funding streams Cost of staff, transportation, PD, supplies Start early: much easier and less stressful to do this at the beginning of year 2 in a three year grant, than with only 6 months left of funding. . . Resources: how much time can you and a planning group commit to this process? Do you have resources for an outside facilitator? Who should be involved: those who have an important role in the future of your initiative Sustainability planning isn’t a one-shot deal: once your done you put the plan and the shelf and magically you’ll sustainable. You’ll need to review regularly (quarterly), monitor your progress, and make corrections as needed. . .making it part of your everyday management routines means that sustainability isn’t something “extra” you do. . .it’s simply a part of your work. © 2012 The Finance Project

Filling the Gaps: Context Matters What are some contextualy issues you should consider when considering funding sources? Policy-related considerations? Political context? Economic context? Considerations related to partner organizations? Discuss the steps in strategic financing—relate back to worksheets completed by the participants and to the Sustainability Framework. Point out the steps we have already taken and where we will be heading in the following webinar. © 2012 The Finance Project

Filling the Gaps: Selecting Funding Sources and Financing Strategies Make Better Use of Existing Resources Maximize Federal, State, and Local Funds Build Public-Private Partnerships Discuss the steps in strategic financing—relate back to worksheets completed by the participants and to the Sustainability Framework. Point out the steps we have already taken and where we will be heading in the following webinar. © 2012 The Finance Project

Resources: Funding Sources TFP’s searchable federal funding catalog – www.financeproject.org/fedfund_search Federal funding –www.cfda.gov, www.grants.gov (grant opportunities and online applications), Census Consolidated Federal Funds Report and agency websites (grantees) Foundation Center – www.fdncenter.org Publications –Chronicle of Philanthropy, www.grants.philanthropy.com, Youth Today www.youthtoday.org Private donors – www.grassrootsfundraising.org and www.techsoup.org (technology support for nonprofits, including donor development) Discuss the steps in strategic financing—relate back to worksheets completed by the participants and to the Sustainability Framework. Point out the steps we have already taken and where we will be heading in the following webinar. © 2012 The Finance Project

Questions? Sometimes an opportunity seems just to good to pass up—grantmakers want to invest in successful organizations—if you have successfully engaged Key Stakeholders and Community Support, you have likely been invited to participate in grant competitions, or been presented with opportunities to take on new work. Taking time out for a sustainability planning process allows you to “reset” the clocks a bit, and ensure that you are attending first to your CORE work—and first funding your core work so it can be accomplished with quality. You can then consider those added opportunities you have taken on to ensure that you are receiving enough funding to do the additional work well, and staff it appropriately, and not competing with other organizations for funding, or participants. © 2012 The Finance Project 28

Take a Strategic Approach to Financing Your Work Clarify “Financing for What?” Estimate Fiscal Needs Map Current Spending Assess the Spending Gap Identify Funding Sources Discuss the steps in strategic financing—relate back to worksheets completed by the participants and to the Sustainability Framework. Point out the steps we have already taken and where we will be heading in the following webinar. © 2012 The Finance Project

Webinar 3: Aligning Fiscal and Non-Fiscal Resources – January/February 2013 What We Will Cover: Complete a partner scan Peer discussion/presentation on community partners Complete strategic resource development plan To Prepare: Complete worksheets Complete Part II of your Sustainability Plan © 2012 The Finance Project

Jill Reimer, Katie Kross Georgia Afterschool Investment Council Contacting Us Shawn Stelow Griffin sstelow@financeproject.org The Finance Project 1150 18th Street NW, Suite 325 Washington, DC 20036 www.financeproject.org 202-628-4200 Jill Reimer, Katie Kross jriemer@afterschoolga.org katiek@afterschoolga.org Georgia Afterschool Investment Council 57 Forsyth St. NW, Suite 222-G Atlanta, GA 30303 www.afterschoolga.org 678-262-4242 © 2012 The Finance Project