Innovation, Collaborations and Consolidations: Getting the Conversation Started
Presentation Overview <ul><li>“ Getting the conversation started” </li></ul><ul><ul><li>Between   your organization and fu...
Three “Takeaways” from Today <ul><li>At the macro level: </li></ul><ul><ul><li>Better understanding of how the funders exp...
1. Better understanding of how the funders expect grant investment opportunities to strengthen sectors 2. Deeper understan...
Collaborations and Strategic Restructurings <ul><li>Collaboration   </li></ul><ul><ul><li>Formalized agreements to work to...
Examples Mergers Shared services Partnerships Coalitions <ul><li>Two or more nonprofits become a  single, legal entity </l...
Community  Catalyst Fund Forums  & Education 8 Catalyst Fund Investment Approaches 1 Promote  Model Success Stories 2 New ...
Sectors most ready to start collaboration Housing & Shelter Arts, Culture & Humanities Healthcare  (Excludes hospitals) Af...
Key subsectors within the six major sectors Housing & Shelter Arts, Culture & Humanities Healthcare  (Excludes hospitals) ...
Approaches Work Together: Housing and Shelter Follow with cohort planning with a select group Support restructuring market...
Approaches Work Together: Healthcare (excluding hospitals) Lower costs  or enhance revenue <ul><li>Methods may include com...
Approaches Work Together: Arts, Culture and Humanities Conduct seminar on collaborations Follow with cohort planning with ...
Potential approaches: Human Services  (includes C&FS, C&FH) Cohort planning with a select group Conduct seminar on collabo...
Questions?
1. Better understanding of how the funders expect grant investment opportunities to strengthen sectors 2. Deeper understan...
Common Themes from Community Discussions <ul><li>Nonprofits not immune to economic challenges </li></ul><ul><ul><li>Need t...
Nonprofit Perspective <ul><li>Organizations already exploring issue </li></ul><ul><ul><li>Continuum of collaborative and i...
The Response: Community Catalyst Fund <ul><li>17 funders and community thought leaders </li></ul><ul><li>Partnership with ...
Grantmaking: Pathways to Funding <ul><li>Through fund sponsored trainings </li></ul><ul><ul><li>Open training sessions </l...
An Example of What Will be Happening Seminars (plan, execute) Cohort learning Support restructuring market Promote success...
Grantmaking: Application Considerations <ul><li>Priority to identified sectors (but open to all) </li></ul>Request aligns ...
Grantmaking: Phase Guides Funding Assessment Planning Implementation Implementation Plus Investigation, Determine Feasibil...
Project Grant Key Components <ul><li>Capacity  for research, planning and execution </li></ul><ul><ul><li>Ability to consi...
Examples of Opportunities and Intersections <ul><li>Shared data for revenue enhancements </li></ul><ul><li>Human Services ...
Questions ?
1.   Better understanding of how the funders expect grant investment opportunities to strengthen sectors 2. Deeper underst...
Common obstacles to collaboration  <ul><li>Some nonprofits considering collaborations… </li></ul><ul><li>Are pre-occupied ...
Principles for getting started <ul><li>Be in inquiry mode : What are their needs, priorities?  What does that tell you abo...
Question to ask yourself: “Why” do I want to pursue collaboration?   <ul><li>What’s the strategic reason (“the why”) to co...
Question to ask yourself: Who might be a good partner for a collaboration? <ul><li>Do I know of another organization with ...
Question to ask yourself: How might I want to collaborate? <ul><li>Which form(s) of collaboration would achieve my organiz...
Questions?
Key Contacts <ul><li>Brian Collier, Senior Vice President, FFTC </li></ul><ul><ul><ul><li>bcollier@fftc.org, 704.973.4556 ...
Thank you!
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2009.11.10 Charlotte Biz Journal Presentation Breakout

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Presentation to Charlotte Business Journal NonProfit Summit, November 2009

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2009.11.10 Charlotte Biz Journal Presentation Breakout

  1. 1. Innovation, Collaborations and Consolidations: Getting the Conversation Started
  2. 2. Presentation Overview <ul><li>“ Getting the conversation started” </li></ul><ul><ul><li>Between your organization and funders </li></ul></ul><ul><ul><ul><li>i.e. Community Catalyst Fund </li></ul></ul></ul><ul><ul><li>Within your organization </li></ul></ul><ul><ul><li>With potential partners </li></ul></ul>
  3. 3. Three “Takeaways” from Today <ul><li>At the macro level: </li></ul><ul><ul><li>Better understanding of how the funders expect grant investment opportunities to strengthen sectors </li></ul></ul><ul><li>At the organizational level: </li></ul><ul><ul><li>Deeper understanding of the Community Catalyst Fund </li></ul></ul><ul><ul><li>Steps you can take to start the discussion in your organization </li></ul></ul>
  4. 4. 1. Better understanding of how the funders expect grant investment opportunities to strengthen sectors 2. Deeper understanding of the Community Catalyst Fund 3. Steps you can take to start the discussion in your organization “ Takeaways ”
  5. 5. Collaborations and Strategic Restructurings <ul><li>Collaboration </li></ul><ul><ul><li>Formalized agreements to work together towards a shared </li></ul></ul><ul><ul><li>goal that do not require substantial structural changes to </li></ul></ul><ul><ul><li>individual organizations </li></ul></ul><ul><li>Strategic restructurings </li></ul><ul><ul><li>Two or more independent organizations establishing an </li></ul></ul><ul><ul><li>ongoing relationship to increase their administrative </li></ul></ul><ul><ul><li>efficiency and/or further their programmatic missions </li></ul></ul><ul><ul><li>through shared, transferred, or combined services, </li></ul></ul><ul><ul><li>resources, or programs. Includes: </li></ul></ul><ul><ul><li>Mergers </li></ul></ul><ul><ul><li>Shared services </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul><ul><ul><li>Best Practices </li></ul></ul><ul><ul><li>Coalitions </li></ul></ul><ul><ul><li>Other “innovations” </li></ul></ul>
  6. 6. Examples Mergers Shared services Partnerships Coalitions <ul><li>Two or more nonprofits become a single, legal entity </li></ul><ul><li>Sharing resources and inputs to achieve lower costs, enhanced revenues and improved services </li></ul><ul><li>Remain separate, but enter into a formal, written agreement to share resources and distribute responsibilities </li></ul><ul><li>Remain separate, but come together to work closely to achieve shared goals </li></ul>1 2 3 4 Best practice sharing 5 <ul><li>Remain separate, but interact regularly to share best practices for programs and operations </li></ul>
  7. 7. Community Catalyst Fund Forums & Education 8 Catalyst Fund Investment Approaches 1 Promote Model Success Stories 2 New Coalitions 3 Shared Infrastructure & Services 4 Effectiveness & Innovation Incentives 5 Funding Tied to Best Practices 7 Restructuring Market Through Key Orgs 6 Funding Tied To Sector Change 8
  8. 8. Sectors most ready to start collaboration Housing & Shelter Arts, Culture & Humanities Healthcare (Excludes hospitals) Afterschool/ Youth development Workforce Development Social Services Social Capital Land Trust Funder Added
  9. 9. Key subsectors within the six major sectors Housing & Shelter Arts, Culture & Humanities Healthcare (Excludes hospitals) <ul><li>Emergency shelters </li></ul><ul><li>Permanent housing </li></ul><ul><li>CDCs </li></ul><ul><li>Museums </li></ul><ul><li>Performing arts </li></ul><ul><li>Cultural/historic societies </li></ul><ul><li>Health clinics </li></ul><ul><li>Hospital support </li></ul><ul><li>Patient services </li></ul><ul><li>Youth development activities </li></ul><ul><li>Student support </li></ul><ul><li>Vocational training programs </li></ul><ul><li>Career services </li></ul>Afterschool/ Youth development Workforce Development Social Services <ul><li>Multiservice organizations (MSO) </li></ul><ul><li>Retirement homes </li></ul><ul><li>Adoption/foster care </li></ul><ul><li>Group homes </li></ul><ul><li>Mental health </li></ul>
  10. 10. Approaches Work Together: Housing and Shelter Follow with cohort planning with a select group Support restructuring market <ul><li>As merger candidates emerge, the Fund can help support the planning and integration process </li></ul>Conduct seminar on collaborations Promote success stories Coalitions <ul><li>Sector Challenges </li></ul><ul><li>Many NPOs that are small and potentially duplicative </li></ul><ul><li>Need for collaboration within sub-sector and across sector (e.g., create a ‘continuum of services’) </li></ul>Example
  11. 11. Approaches Work Together: Healthcare (excluding hospitals) Lower costs or enhance revenue <ul><li>Methods may include common data system or other administrative methods to lower costs as well as increase coordination </li></ul>Conduct seminar on collaboration <ul><li>One result of the seminars may be a desire to increase coordination among healthcare providers (e.g., data sharing) </li></ul>Coalitions <ul><li>Process may also lead to other forms of collaboration that do not require additional investment from the Fund (e.g., partnering) </li></ul><ul><li>Sector challenges: </li></ul><ul><li>Numerous community health clinics that are not aligned </li></ul><ul><li>Lack of communication prevents a well functioning ‘continuum of health services </li></ul>Example MedLink
  12. 12. Approaches Work Together: Arts, Culture and Humanities Conduct seminar on collaborations Follow with cohort planning with a select group Promote success stories Support restructuring market Lower costs or increase revenue (support planning) <ul><li>As merger candidates emerge, the Fund can help support the planning and integration process </li></ul><ul><li>Sector Challenges </li></ul><ul><li>High degree of fragmentation (i.e., many small NPOs) and sector-wide need to cut costs </li></ul><ul><li>Many potentially duplicative NPOs (e.g., multiple historical societies) </li></ul>
  13. 13. Potential approaches: Human Services (includes C&FS, C&FH) Cohort planning with a select group Conduct seminar on collaborations Seek to effect structural change in sector <ul><li>Sector challenges: </li></ul><ul><li>Public sector funders have noted that they would prefer to fund fewer, more outcome focused agencies </li></ul><ul><li>Process may lead to mergers or other forms of collaboration that do not require additional investment from the Fund (e.g., partnering) </li></ul>Promote use of outcomes (including by the use of incentives) <ul><li>As public funders seek ‘fewer, better’ NPOs, promoting better outcome measures would help clarify best in class providers </li></ul><ul><li>Requires government collaboration to be effective </li></ul><ul><li>Understanding how funding flows would be the first step in pursuing this approach </li></ul>
  14. 14. Questions?
  15. 15. 1. Better understanding of how the funders expect grant investment opportunities to strengthen sectors 2. Deeper understanding of the Community Catalyst Fund 3.Steps you can take to start the discussion in your organization “ Takeaways”
  16. 16. Common Themes from Community Discussions <ul><li>Nonprofits not immune to economic challenges </li></ul><ul><ul><li>Need to address “new reality” of funding environment </li></ul></ul><ul><li>Private sector unable to offset reductions </li></ul><ul><ul><li>Cannot make up loss in public/private revenue </li></ul></ul><ul><li>But… “With crisis comes opportunity” </li></ul><ul><li>Stabilize for short-term, but focus on greatest promise for long-term </li></ul><ul><li>Direct finite resources to highest and best use </li></ul>
  17. 17. Nonprofit Perspective <ul><li>Organizations already exploring issue </li></ul><ul><ul><li>Continuum of collaborative and innovative responses </li></ul></ul><ul><ul><li>Example: Winter Shelter and Uptown Shelter </li></ul></ul><ul><li>Desire to be more effective and efficient </li></ul><ul><li>Open to new business structures and models </li></ul><ul><ul><li>Not just status quo—improve & expand service delivery </li></ul></ul><ul><li>Desire to create more entrepreneurial sector </li></ul><ul><ul><li>But… lack money and/or expertise to make it happen </li></ul></ul>
  18. 18. The Response: Community Catalyst Fund <ul><li>17 funders and community thought leaders </li></ul><ul><li>Partnership with United Way and ASC </li></ul><ul><li>$5,000,000 goal </li></ul><ul><ul><li>$1M Challenge Grant from Levine Foundation </li></ul></ul><ul><ul><li>Over 18+ months </li></ul></ul><ul><li>Grants in 2009 and 2010 </li></ul><ul><ul><li>First deadline November 30 </li></ul></ul><ul><ul><li>Other dates to be announced </li></ul></ul><ul><ul><li>At least one Mecklenburg based organization </li></ul></ul><ul><ul><li>More info: www.fftc.org </li></ul></ul>
  19. 19. Grantmaking: Pathways to Funding <ul><li>Through fund sponsored trainings </li></ul><ul><ul><li>Open training sessions </li></ul></ul><ul><ul><li>Cohort group </li></ul></ul><ul><li>Proactive approach from the Catalyst Fund </li></ul><ul><li>Open call for applications </li></ul><ul><ul><li>Deadline based </li></ul></ul><ul><ul><li>Priority to identified sectors </li></ul></ul><ul><ul><li>Aligned with funding approaches (e.g. merger, etc.) </li></ul></ul><ul><li>Under consideration: “Prize” opportunity ~Spring 2010 </li></ul>
  20. 20. An Example of What Will be Happening Seminars (plan, execute) Cohort learning Support restructuring market Promote success stories Creation of new coalitions 2H2009 1H2010 2H2010 1H2011 2H2011 Other forms of collaboration (beyond mergers) will start to increase (e.g., partnering) Shared Service Opportunities Opportunity for Sector Change Implementation of sector-wide best practices Education Investment Opportunities
  21. 21. Grantmaking: Application Considerations <ul><li>Priority to identified sectors (but open to all) </li></ul>Request aligns with funding approaches (e.g. merger, back office, coalition, etc.) <ul><li>Phase of project </li></ul><ul><li>Planning </li></ul><ul><li>Assessment </li></ul><ul><li>Implementation </li></ul><ul><li>Post Implementation </li></ul>1 2 3
  22. 22. Grantmaking: Phase Guides Funding Assessment Planning Implementation Implementation Plus Investigation, Determine Feasibility Agreement to proceed; determine path to success Execute plan Ready to scale up
  23. 23. Project Grant Key Components <ul><li>Capacity for research, planning and execution </li></ul><ul><ul><li>Ability to consider options and implications </li></ul></ul><ul><li>Functioning governance structure </li></ul><ul><ul><li>Opportunity to enter into meaningful discussions </li></ul></ul><ul><li>Strong project leadership </li></ul><ul><ul><li>Identification of key staff and why they can succeed </li></ul></ul><ul><li>Clearly defined budget </li></ul><ul><ul><li>Reasonable request; scope of work for consultants </li></ul></ul><ul><li>Anticipated outcome </li></ul><ul><ul><li>New capacity or methodologies benefiting the community </li></ul></ul><ul><ul><li>Replicable </li></ul></ul>
  24. 24. Examples of Opportunities and Intersections <ul><li>Shared data for revenue enhancements </li></ul><ul><li>Human Services Plan </li></ul><ul><li>10 Year Plan to End Homelessness </li></ul><ul><li>Client information sharing systems </li></ul><ul><li>Case management </li></ul><ul><li>Harlem Children’s Zone model/Promise Neighborhoods </li></ul>Disclaimer: No Guarantee of Funding!
  25. 25. Questions ?
  26. 26. 1. Better understanding of how the funders expect grant investment opportunities to strengthen sectors 2. Deeper understanding of the Community Catalyst Fund 3.Steps you can take to start the discussion in your organization “ Takeaways”
  27. 27. Common obstacles to collaboration <ul><li>Some nonprofits considering collaborations… </li></ul><ul><li>Are pre-occupied with the “operational how,” and not the “strategic why” </li></ul><ul><li>Inaccurately equate collaboration with loss of brand and/or loss of control </li></ul><ul><li>Do not know how to get started in determining need and identifying potential partners </li></ul>
  28. 28. Principles for getting started <ul><li>Be in inquiry mode : What are their needs, priorities? What does that tell you about their fit? </li></ul><ul><li>Explore your networks : Probably not strangers to begin with, which means there is likely history – potentially good and bad </li></ul><ul><li>Relationships matter : Decide on the right ‘point-to-point contact’ to broach conversations based on relationships, personalities </li></ul><ul><ul><li>Board member to board member </li></ul></ul><ul><ul><li>ED to ED </li></ul></ul><ul><ul><li>Staff to Staff </li></ul></ul><ul><ul><li>Funder to Funder </li></ul></ul><ul><li>Be honest and candid : Start with your thoughts on your “Strategic Why,” less focus on the “Operational How” </li></ul>
  29. 29. Question to ask yourself: “Why” do I want to pursue collaboration? <ul><li>What’s the strategic reason (“the why”) to collaborate: </li></ul><ul><ul><li>To expand the scope of my organization? </li></ul></ul><ul><ul><li>To increase the scale of my organization? </li></ul></ul><ul><ul><li>To improve the efficiency of how we do our work? </li></ul></ul><ul><ul><li>To achieve costs savings? </li></ul></ul><ul><ul><li>To fill a senior leadership gap? </li></ul></ul><ul><ul><li>To gain more influence with funders/stakeholders? </li></ul></ul><ul><ul><li>To enhance our brand? </li></ul></ul>
  30. 30. Question to ask yourself: Who might be a good partner for a collaboration? <ul><li>Do I know of another organization with a similar or complementary ‘Strategic Why’? </li></ul><ul><li>Who can help me identify potential partners? </li></ul><ul><ul><li>Internal sources, including staff, board and funders </li></ul></ul><ul><ul><li>External sources, such as peer organizations </li></ul></ul><ul><li>What would I want to know about potential partners? </li></ul><ul><ul><li>Their strategy and direction? </li></ul></ul><ul><ul><li>Quality of leadership? </li></ul></ul><ul><ul><li>Financial stability? </li></ul></ul><ul><ul><li>Culture? </li></ul></ul>
  31. 31. Question to ask yourself: How might I want to collaborate? <ul><li>Which form(s) of collaboration would achieve my organization’s ‘Strategic Why’? </li></ul><ul><ul><li>Shared Services </li></ul></ul><ul><ul><li>Merger </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul><ul><ul><li>Coalitions </li></ul></ul><ul><ul><li>Best practice sharing </li></ul></ul><ul><li>Of the options that are feasible, which option is most feasible and most likely to lead to success? </li></ul>
  32. 32. Questions?
  33. 33. Key Contacts <ul><li>Brian Collier, Senior Vice President, FFTC </li></ul><ul><ul><ul><li>bcollier@fftc.org, 704.973.4556 </li></ul></ul></ul><ul><li>Andrew Belton, Partner–Bridgespan </li></ul><ul><ul><ul><li>andrew.belton@bridgespan.org, 646.562.8910 </li></ul></ul></ul><ul><li>Community Catalyst Program Hotline </li></ul><ul><ul><ul><li>catalystfund@fftc.org, 704.973.4588 </li></ul></ul></ul><ul><ul><ul><li>Grant application questions, 704.973.4542 </li></ul></ul></ul>
  34. 34. Thank you!

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