May Funder Call May 28 2009


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  • May Funder Call May 28 2009

    1. 1. Fund for Our Economic Future Phase 3 Strategy Presentation Steering Committee May 28, 2009
    2. 2. Strategy Process: Time line 45 Funder Interviews Large group meeting Over 40 Funders Strategy Direction (Draft) Small Group Refine/ Partner Outreach Small Group Review Adopt Strategy Strategy Public Oct 2008 Nov 2008 Feb 2009 Mar 2009 April May 2009 June 2009 Oct 2009
    3. 3. PHASE 3 PRESENTATION <ul><li>Fund Overview </li></ul><ul><ul><li>Outcomes </li></ul></ul><ul><ul><li>Lessons Learned </li></ul></ul><ul><li>Phase 3 </li></ul><ul><ul><li>What is the same? </li></ul></ul><ul><ul><li>What is different? </li></ul></ul><ul><ul><li>Evaluating Outcomes </li></ul></ul><ul><li>The Work Ahead </li></ul><ul><ul><li>Goals and strategies </li></ul></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><li>Fund Structure </li></ul></ul><ul><ul><li>Financial Planning and Principles </li></ul></ul>
    4. 4. Outcomes of Fund’s Work Tangible, compounding economic impact $1.1 BILLION $>100 MILLION
    5. 5. Outcomes of Fund’s Work Cultural Shift Growing shared support of regional economic competitiveness agenda <ul><ul><li>>80 partners in Advance NEO </li></ul></ul><ul><ul><li>98% of residents identify with NE Ohio </li></ul></ul><ul><ul><li> Increased optimism (26% 2006 to 41% in 2008) </li></ul></ul>
    6. 6. Lessons Learned <ul><li>System change takes time, sustained effort, and needs champions </li></ul>
    7. 7. Lessons Learned <ul><li>Direct support of initiatives must be paired with work on the overall regional system of collaboration, both geographic and programmatic </li></ul>+
    8. 8. Phase 3 Work: What stays the same?
    9. 9. Phase 3 Work: What stays the same? Diversity and Inclusion Tools to be used Collaborative Model
    10. 10. Phase 3 Work: What changes? FFEF Action Area Team Champion Part of Fund resources will go towards forming regional leadership and action area champions
    11. 11. Phase 3 Work: What changes? <ul><li>Communications and engagement focused on community influencers </li></ul>
    12. 12. Phase 3 Work: What changes? Respond to economic climate Intensified focus on priority industry clusters Assess grantee performance + greater financial sustainability
    13. 13. Evaluating Phase 3 Outcomes How is the REGION doing against the goals of Advance Northeast Ohio ? At the highest level, 2020 goals - Per capita income > national average - Employment growth > national average - Concentrated poverty < 20% in urban areas By 2013 - Improvement in each of these categories with region out of 4 th quartile in at least one of the categories and reduction in urban poverty rate versus 2009 <ul><li>How is the Fund doing? </li></ul><ul><ul><li>Level of community awareness of and leadership around the economic competitiveness agenda priorities </li></ul></ul><ul><ul><li>Grantee performance related to specific goals tied to investment, payroll and job creation </li></ul></ul>
    14. 14. Goal 1: Accelerate job & income growth Goal 2: Reduce impediments to long-term growth Goal 3: Sustain economic competitiveness work over long-term Strategy 1: Strengthen regional business growth and attraction Strategy 2: Enhance regional talent development Strategy 3: Spur regional planning and gov’t efficiency Strategy 4: Shape and sustain regional leadership for economic competive-ness priorities Strategy 5: Educate, engage, empower “influencers” to participate and support work
    15. 15. Specific Phase 3 Objectives <ul><li>Economic Performance </li></ul><ul><ul><li>Attract $750 million in venture capital </li></ul></ul><ul><ul><li>Attract $300 million in research/ commercialization capital in target industries </li></ul></ul><ul><ul><li>Increase payroll by $125 million: $30 million at minority firms </li></ul></ul><ul><ul><li>Generate $100 million in growth and expansion capital (facility expansions and enhancements </li></ul></ul>
    16. 16. Specific Phase 3 Objectives <ul><li>Sustaining Growth </li></ul><ul><ul><li>Increase by 70,000 the number of adults pursuing education certificates/degrees </li></ul></ul><ul><ul><li>Improve employer understanding of and satisfaction with the talent system over 2009 base </li></ul></ul><ul><ul><li>Implement plan to share new revenue growth in the majority of Northeast Ohio </li></ul></ul><ul><ul><li>Implement 10 new government collaborations generating $10 million in annual efficiencies </li></ul></ul>
    17. 17. Specific Phase 3 Objectives <ul><li>Cultural Change </li></ul><ul><ul><li>Establish regional champions with the capacity to lead and organize the region’s response for economic competitiveness within the four areas of Advance Northeast Ohio </li></ul></ul><ul><ul><li>Work with partners in business, government, civic and other sectors to build support for these champions to sustain the work of regional economic competitiveness </li></ul></ul>
    18. 18. Phase 3 Structure: What Stays the Same <ul><li>Three-year member/owner model </li></ul><ul><li>Funders Committee as decision making unit with continued Steering Committee coordination </li></ul><ul><li>Three-year phase with minimum of $100,000 to be a voting member (one member/one vote) </li></ul><ul><li>Bulk of the work done through action teams organized around Advance Northeast Ohio </li></ul><ul><li>Possible new initiatives brought to the Fund by its members through the action teams – no unsolicited proposals </li></ul>
    19. 19. Phase 3 Structure: Possible Modifications <ul><li>Legal Structure </li></ul><ul><li>Fund will incorporate and apply to become a separate 501(c)(3). </li></ul><ul><ul><li>Resolves administrative strains the current model places on its long-time administrative “parent” in The Cleveland Foundation </li></ul></ul><ul><ul><li>Deepens the region’s sense that there is indeed a broad-based collaborative that is focused solely on the advancement of regional competitiveness </li></ul></ul>
    20. 20. Phase 3 Structure: Possible Modifications <ul><li>Grantee Relations </li></ul><ul><li>All Fund grantees will be allowed to approach Funders individually. </li></ul><ul><li>  </li></ul>
    21. 21. Phase 3 Structure: Possible Modifications <ul><li>Designation of Funds </li></ul><ul><li>The Fund continue to encourage undesignated funds because the vast majority of funders have asserted that this practice: </li></ul><ul><ul><li>Will enhance the value of the collaborative decision-making </li></ul></ul><ul><ul><li>Will greatly simplify the Fund’s administrative functions. </li></ul></ul><ul><ul><li>In the spirit of collaboration, the Funders Committee may make exceptions to this rule on a case by case basis taking into account individual facts and circumstances. </li></ul></ul>
    22. 22. Financial Planning Principles <ul><li>Phase 3 operations/grant making planning to be based on $22 million in contributions </li></ul><ul><ul><li>Continue to allocate bulk of grant dollars to industry-building grantees </li></ul></ul><ul><ul><li>Maintain significant allocation to convening, communications and research efforts </li></ul></ul><ul><ul><li>Success is heavily dependent on active participation of Fund members; however availability of loaned staff has decreased significantly and that is reflected in paid staff levels for both Fund operations and ANEO support </li></ul></ul><ul><ul><li>Plan for slightly higher costs: financial admin, space, President’s salary (5.5% of overall budget) </li></ul></ul>
    23. 23. Grant Dollar Allocation Phase 2 YTD Grantmaking Budget: $24,820,000 Phase 3 Proposed Grantmaking Budget: $20,700,000
    24. 24. Staff Time Allocation Phase 2 Phase 3
    25. 25. Business Growth and Attraction & Talent 82% Resource Allocation – Phase 3 100% = $22.1 million
    26. 26. &quot;Indirect&quot; Work By Core Grantees Staff Time Allocation Direct Grants % of Total Resources 8% 13% Inclusion Resources - Phase 2 to Phase 3 $2,850 $372 $2,000 $165 Phase 2 Phase 3
    27. 27. 100% = $1.5mm $5.5mm $9.7mm $2.9mm $1.6mm $1.05mm Resource Allocation Within Action Areas – Phase 3 26% 61% 13% 0 $1 mm $2 mm $3 mm $4 mm BARE ENTP Talent GOVT TBD TBD Research Communication & Engagement New Grantees Action Team Support Existing Grantees $5 mm $6 mm $7 mm $8 mm $9 mm $10 mm Support ANEO 95% 5% 97% 3% 70% 21% 9% 16% 19% 65% 4%