"Nonprofit Funding: Friend or Foe?" presented by Mecklenburg County, NC, at Winter 2013 NCLGBA Conference

1. Nonprofit Funding:
Friend or Foe?
December 12, 2013
NCLGBA Winter Conference

2. Agenda
•
•
•
•
•
Business justification for nonprofit funding
What’s our challenge?
What’s our solution?
What’s our process?
Lessons to share
2
www.MecklenburgCountyNC.gov
MecklenburgCountyNC.Gov

3. Why Fund Nonprofits?
• Can’t do it all
• Others do it better
• Builds trust
• A process could be your solution
3
www.MecklenburgCountyNC.gov
MecklenburgCountyNC.Gov

4. Goals for the
Community Service Grant (CSG) Process
• 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
4

5. CSG Funding Process
Application
Manager’s
Recommendation
Review
5
BOCC Decision
www.MecklenburgCountyNC.gov
MecklenburgCountyNC.Gov

6. Application
Application
Manager’s
Recommendation
Review
•
•
•
•
BOCC Decision
Instructions
Eligibility Criteria
Kickoff
Applications submitted
6
MecklenburgCountyNC.Gov

7. Eligibility Criteria
• 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
7
MecklenburgCountyNC.Gov

8. Strategy to Budget
Critical Success Factors:
• Affordability
• Sustainability
• Jobs/Workforce and
Economic
Development
• Service Investments
and Delivery Model
• Fiscal Discipline
• Operational
Excellence
1.
2.
3.
4.
8
Four Target Areas:
Train and Place
Unemployed Workers
Improve the High
School Graduation Rate
Prevent Health Risks
and Diseases
Promote Financial SelfSufficiency
MecklenburgCountyNC.Gov

9. Review
Application
Manager’s
Recommendation
Review
BOCC Decision
• Review Panel
• Evaluation Criteria
9
MecklenburgCountyNC.Gov

10. Application Review
• Review Panel
– Internal and external reviewers
• Evaluation Criteria
⁻
⁻
⁻
⁻
Performance measures
Demonstration of need
Service strategy and delivery process
Alignment with target area
10
MecklenburgCountyNC.Gov

11. Performance Measurement
Key Questions
• 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?
11
MecklenburgCountyNC.Gov

12. Manager’s Recommendation
Application
Manager’s
Recommendation
Review
BOCC Decision
• Reviews ranking of proposals
• Considers staff
recommendations
12
MecklenburgCountyNC.Gov

13. Budget Decisions
• 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
13
MecklenburgCountyNC.Gov

14. BOCC Decision
Application
Manager’s
Recommendation
Review
BOCC Decision
• Political realities
• Final list of grantees
14
MecklenburgCountyNC.Gov

15. Political Realities
• Ultimately nonprofit funding is a political
decision
– Example: Bethesda Health Clinic
• Deliberation time for nonprofits
– Example: CMS vs. CSGs
15
MecklenburgCountyNC.Gov

16. Better Practices
1.
2.
3.
4.
5.
Increase Transparency
Foster Communication
Enhance Customer Service
Keep Process Consistent and Fair
Continuous Improvement
16
MecklenburgCountyNC.Gov

17. NCLGBA Winter Conference
Community Service Grants
December 12, 2013