Sustainable Rural Development Funding: Lessons from the Field


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A webinar from NARP

Presented by Don Macke (RUPRI Center for Rural Entrepreneurship), David Dangler (National Alliance for Rural Policy Network)

The funding environment for rural development is changing dramatically and Don will share the Center's experience with robust and sustainable funding strategies. He will weave three stories from the field that illustrate a new framework for visioning, designing and executing capitalization game plans in support of regional rural development. Don will then summarize the key building blocks of robust and sustainable funding in the Post-Great Recession environment. There will be time allocated during the webinar for discussion and questions.

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Sustainable Rural Development Funding: Lessons from the Field

  1. 1. Sustainable Rural DevelopmentFunding: Lessons from the FieldDon Macke,RUPRI Center for Rural EntrepreneurshipDavid R. Dangler, National Alliance forRural Policy NetworkJessica HiemenzNational Consumer Law CenterAugust 14, 2012
  2. 2. Working together to promote a vibrant rural America.Experience Works · First Nations Development Institute · Housing Assistance Council · Indian Country Conservancy ·National Association of Community Health Centers · National Association of Development Organizations Research Foundation·National Consumer Law Center · National Trust for Historic Preservation · National Rural Health Association ·National Youth Leadership Network · NeighborWorks America · Save the Children · United Farm Workers Foundation
  3. 3. Presenter – David R. Dangler• A member of the National Alliance for Rural Policy network.The National Alliance was founded in 2008 with fundingfrom the W. K. Kellogg Foundation and acts as a resourcenetwork, not only for its members but for other rural policynetworks and individuals interested in all aspects of ruralpolicy.• In addition to being a member of the National Alliance,David is the national director of the NeighborWorks RuralInitiative for NeighborWorks America. Today the RuralInitiative supports 91 community-based organizationsactive in rural communities in 45 states plus Puerto Rico. In2011 the 91 rural NeighborWorks organizations madedirect investments in excess of $1.6 billion to supportaffordable housing, job creation and broad-basedcommunity economic development.
  4. 4. Presenter – Don Macke• Director with the Center for Rural Entrepreneurship. TheCenter works throughout the US and Canada supportingresearch, outreach, professional development and policywork related to rural entrepreneurship.• The Center is part of the Rural Policy Research Institute(RUPRI). RURPI is a leading national rural research andpolicy think tank focusing in multiple areas includingtelecommunications, health care, poverty, governance,informatics and economic development.• Don has over 35 years of experience in the field of rural CED.• A central part of Don’s work focuses on communitydevelopment philanthropy and America’s transfer of wealth(TOW) opportunity. The Center’s TOW team hascompleted over 40 studies, covering over 1,200 counties andcommunities across the nation.
  5. 5. Sustainable RuralDevelopment Funding:Lessons from the FieldDon MackeCenter for Rural EntrepreneurshipNARP Rural Investment Webinar SeriesAugust 14, 2012
  6. 6. Special ThanksDavid – Jessica – EmilyNARPNational Consumer Law CenterAhmet & KyleThe Center for Rural Entrepreneurship works throughout North Americaand currently has projects in 32 states and Canadian providences. Overthe past decade the Center has undertaken development work in nearlyhalf of the geography within the continental United States.
  7. 7. Today’s PresentationContext for Sustainable FundingFramework for Sustainable FundingThree Illustrations from the FieldKey Building Blocks for Making this HappenQuestions & Discussion
  8. 8. Center Resourceswww.energizingentrepreneurs.orgFour Electronic Email Pushes:Entrepreneurship NewsEntrepreneurial CommunitiesYouth Engagement & People AttractionCommunity Development PhilanthropyOther Customized AssistanceThe Center works with development interests throughout North Americaproviding opportunity assessments, strategy development and executionsupport. Our mission is to help grow entrepreneurial communities thatin turn generate prosperity for all their residents.
  9. 9. Context for Sustainable FundingFacing Today’s Realities!
  10. 10. Great RecessionThe most significanteconomic event in ourlifetime!A new economic andsocial world willemerge from thisrecession.
  11. 11. Great Reset is Underway
  12. 12. Today’s Realities• Collective Action is Under Attack• The Role of Government is in Question• Government Funding is Eroding• Government Funding is Unpredictable• Corporate & Foundation Funding?• Growing Need for Rural Development!
  13. 13. New Funding Solutions Needed• Regional Approaches• New Roles for Community Foundations• Bottom Up Strategy• External Leveraging Strategy• Keeping Government in the Game• Finding New Sources of Funding
  14. 14. North Dakota’s BakkenND is now #1 in the U.S. in Oil Production$1 Trillion of Oil will be ExtractedLargest Energy Boom in Recent American HistoryCommunities are OverwhelmedRoads – Sanitation – Environment – HousingIf just one-tenth of 1% of this value were set aside to helpthis region support this development and ensure post-boom prosperity a $10 billion endowment could be createdcapable of generating $500 million each year eternally.
  15. 15. Framework forSustainable FundingReal Funding Makes a Difference!
  16. 16. Impact & SustainabilitySustainability is a primary key to successand supportive stakeholder are the key toensuring sustainability.Great StrategyStrong ExecutionSustainabilityRealize Impact!
  17. 17. Strategy KeysGenuine OpportunitiesSmart StrategyRight TeamStrong ExecutionSustained Effort
  18. 18. Attracting Capital intoRural AmericaCapital – Certainty & Uncertainty• Community Capital?• Community Strategic Vision & Agenda?• Viable & Dependable Institutions?• Skill at Attracting Outside Capital?The art of leveraging!
  19. 19. Appalachian OhioFoundation for Appalachian OhioMotivator – Convener – Facilitator – IncubatorAO Business Council & APEGNew Institutional Capacity for DevelopmentLocal & Regional Legacy FundsRobust – Predictable – Locally ControlledRegional Prosperity Fund$10 million - $100 million - $1 billion
  20. 20. Project 17 & SE KansasChronic Need for DevelopmentEmerging Regional EffortConsiderable UncertaintySeed Funding - Institutional SupportUnder CapitalizedMake it to sustainability?
  21. 21. Building Blocks forMaking this HappenGenerational Vision10 Year Capital Plan
  22. 22. Three Development PhasesPhase 1 – Getting Up and GoingPhase 2 – ImplementationPhase 3 – Scale Up & ImpactMove stakeholders and your communityfrom seeing funding needs toINVESTMENT into your strategy withreal potential for returns.
  23. 23. Phase 1 – Start Up1 – Raising the Initial Grub-Stake2 – Leveraging Grant Funding3 – Redirecting Existing Resources4 – New Stakeholders & FundersPhase 1 should ensure that you can get throughyears 1 through 3.
  24. 24. Phase 2 - Implementation1 – Stakeholders & Underwriters2 – Funding from Local Governments3 – Energizing the Chamber, etc.4 – Maximizing Outside Funding5 – Local Option TaxesPhase 2 fundraising overlaps with Phase 1and should provide 3 to 7 years of support.
  25. 25. Phase 3 – Scale Up & ImpactBudget LinesDedicated Local Option Tax SupportCapitalization CampaignsMore External GrantsUnderwriters to Legacy DonorsDonors can also be Angel Investors.
  26. 26. 10-Year Funding Visual1InitialStartupFunding2Multi-YearDevelopmentGrantMulti-YearDevelopmentGrant3Multi-YearDevelopmentGrantMulti-YearDevelopmentGrantInstitutionalFundingSupport4Multi-YearDevelopmentGrantNewServiceGrantInstitutionalFundingSupport5AreaUnder-WritersNewServiceGrantServiceFeesInstitutionalFundingSupport6AreaUnder-WritersEndowmentDonorsServiceFeesInstitutionalFundingSupport7AreaUnder-WritersEndowmentDonorsServiceFeesInstitutionalFundingSupportInstitutionalFundingSupport8AreaUnder-WritersEndowmentDonorsServiceFeesInstitutionalFundingSupportInstitutionalFundingSupport9AreaUnder-WritersEndowmentDonorsServiceFeesInstitutionalFundingSupportInstitutionalFundingSupport10EndowmentDonorsEndowmentDonorsServiceFeesInstitutionalFundingSupportInstitutionalFundingSupport
  27. 27. Development EndowmentsUniversities Do ItHospitals Do ItEven Libraries Do ItEconomic development is foundational to acommunity’s future. Growing donors andbuilding endowments are doable and canprovide long-term funding.
  28. 28. 28American Wealth
  29. 29. New TOW ScenariosBoston College: 1998-2052High = $136 trillionMedium = $73 trillionLow = $41 trillionRUPRI Center: 2010-2060High = $91 trillionLow = $75 trillionConstant = $63 trillionZero = $43 trillionOur revised and mostlikely scenario of futureTOW for the U.S. isestimated at $75 trillionbetween 2010 and 2060.(Inflation adjusted 2010 dollars)29
  30. 30. The Center’s 5-Point Process#1. CommunityEngagement#2.Understandingthe TOWOpportunity#3. Priorities:Case StatementDevelopment#4. DonorIdentification andDevelopment#5. StrategicGrant Making
  31. 31. Illustrations that Motivate!Minnesota’s Initiative FoundationsHumboldt Area FoundationIron Range Trust FundTupelo’s IMPACT FoundationNebraska Community FoundationNorth Sea Oil & Norway’s Way
  32. 32. Conclusion
  33. 33. We Need to Dream AgainRealityInability to Dream/VisionThe Dreaming Exercise33
  34. 34. A Possible Resource
  35. 35. Don 323-7339