Nonprofits shifting money model in tough economy

Faced with continuing financial stress in the wake the recession, nonprofits plan to rework their strategies for raising and spending money, a new survey says.

Among 5,983 nonprofits responding to the 2013 State of the Nonprofit Sector Survey from the Nonprofit Finance Fund, 42 percent say they lack the right mix of financial resources to thrive and be effective in the next three years, and one in four has 30 days or less cash on hand.

Twenty-nine percent plan over the next 12 months to change the main ways they raise and spend money, and 23 percent will seek funding other than grants or contracts, such as loans or investments, says the survey, which is supported by the Bank of America Charitable Foundation and looks at the finances, operations and outlook of nonprofits.

Only 14 percent of nonprofits that receive state and local funds are paid for the full cost of services, and only 17 percent that receive federal funds get full reimbursement, with partial reimbursement requiring additional funding “to cover the growing gap as nonprofits serve more people,” NFF says.

Government also is late to pay, the survey says.

Among nonprofits that get state or local funding, it says, just over 60 percent report overdue government payments, and over 50 percent report late payments from the federal government.

Fifty-two percent of respondents say they were not able to meet demand for services over the last year, marking the first time in the five years of the survey that over half the respondents say they could not meet demand.

That was up from 44 percent that said in 2009 they were not able to meet demand.

And 54 percent say they will not be able to meet demand this year.

Fifty-nine percent of respondents say jobs are the top concern in low-income communities, 51 percent say housing is the top concern, and 90 percent say financial conditions are as hard or harder than last  year for their clients, representing a slight improvement from the previous year.

Over the past 12 months, the survey says, 49 percent of respondents added or expanded programs or services; 17 percent reduced or eliminated programs or services; 39 percent collaborated with another organization to improve or increase services; 39 percent upgraded technology to improve organizational efficiency; and 36 percent engaged more closely with their board.

“Nonprofits are changing the way they do business because they have to,” Antony Bugg-Levine, CEO of Nonprofit Finance Fund, says in a statement.

“Government funding is not returning to pre-recession levels, philanthropic dollars are limited, and demand for critical services has climbed dramatically,” he says. “At the same time, 56 percent of nonprofit plan to increase the number served. That goal requires change and innovation — for nonprofits, for those who fund them, and for the broader systems we need to preserve and expand economic opportunity and social progress.”

Todd Cohen

Community solutions to homelessness urged

By Todd Cohen

[Note: I am working with Triangle Community Foundation as senior communications adviser.]

MORRISVILLE, N.C. — While homelessness can seem beyond any solution, efforts to reduce it are working.

Actually ending homelessness, however, will take truly collaborative community efforts that require patience and hard work, and are well designed, driven by incentives and shared goals, and tracked with useful metrics that show the impact of those efforts.

That was the message of four experts who work on homelessness issues and served on a panel at the April meeting of the Triangle Donors Forum.

Hosted by Triangle Community Foundation and United Way of the Greater Triangle at United Way’s offices in Morrisville, the Forum offered a window into local efforts to fight homelessness by adapting to changes in the funding environment and in perspectives about the causes of the problem and effective strategies to address it.

Roots of homelessness

Characterizing homelessness as “one of the most complex societal problems,” Denise Neunaber, executive director of the North Carolina Coalition to End Homelessness, told the Donors Forum the keys to ending the problem all are rooted in access — to affordable housing, to services and to income.

In the early 1980s, she said, homelessness was treated as an “emergency situation”  and a problem that eventually would “go away.”

Declines in the development of affordable housing and in wages, however, along with changes in the mental health system and other social forces, have resulted in the spread of homelessness, she said.

Yet the system created to fight homelessness, rooted in the belief it was a temporary crisis, has “taken on a life of its own,” she said.

Shifting strategies

The system that emerged to serve homeless people operated below the “safety net” to “catch people when the safety net doesn’t work,” Neunaber said.

But that system became a kind of “sticky net.”

“We created a system where you need to get services while you’re there,” she said, creating few exits for people in temporary housing who needed ongoing assistance.

But that system should be a “trampoline,” she said, to stabilize their housing while they get other support, including assistance with rent and in securing jobs or disability benefits, or services such as mental health programs or case management.

“People fall out of housing into our system and we try to bounce them back into housing and services,” she said.

Ultimately, she said, getting people out of homelessness requires permanent housing.

“Instead of investing just in services and a temporary place for individuals and families to stay,” she said, “we’re taking it to the next level, investing in housing, in rental assistance and security deposits, to see how quickly we can get people out of the system.”

Homelessness and poverty

Perceptions about what it means to be homeless also have changed, Neunaber said.

For many years, advocates equated fighting homelessness with fighting poverty, believing they had to address the poverty of homeless individuals and families by helping them “get better jobs and make better decisions, ” she said, “and make them better people.”

But over the years, advocates have recognized that “maybe ending homelessness is not the same as ending poverty,” she said. “Maybe ending homelessness is a piece of getting to the next step of ending poverty. We may not be able to end poverty for these individuals and families, but I know we can end  homelessness.”

Neunaber said local partnerships to end homelessness had helped reduce the number of chronically homeless individuals and families in communities across North Carolina, including a declines of 35 percent in Durham, 58 percent in Winston-Salem and and 82 percent in Buncombe County.

‘Rapid Rehousing’

Strategies for serving the homeless more recently have evolved to a “Housing First” model that includes a “Rapid Rehousing” approach focusing on first getting homeless people housed and then providing the services they need to get back on their feet and build stable lives.

“It shortens the time they’re homeless,” Terry Allebaugh, executive director of Housing for New Hope in Durham, told the Donors Forum.

Beth Bordeaux, executive director of PLM Families Together in Raleigh, told the Donors Forum that the Rapid Rehousing strategy also provides an incentive for families not to prolong their stays in emergency housing but rather to begin to prepare themselves to move into longer-term housing.

“First we get them stable,” she said. “If your life is in chaos, the first thing you want is to reduce your stress.”

Allebaugh and Bordeaux both said Rapid Rehousing has helped their agencies house more people for less money.

Last year, for example, PLM Families Together moved 57 families into permanent housing, and this year expects to move 70 families into permanent housing.

And in partnership with three core agencies that provide support services and temporary housing , Housing for New Hope housed 173 households in permanent housing over the two-and-a-half-year period ended August 2012, with 89 percent of those households remaining housed.

Community solutions

Advocates at the Donors Forum said the most effective approaches to fighting homelessness involve community-based partnerships that address the problem from the perspective of the systems that serve homeless people.

Those systems range from job-training and financial-literacy services to those serving people with mental illness or substance abuse problems, or both, and people after they are discharged from military service or prison.

“You can’t end homelessness in a silo,” Bordeaux said.

Bernadette Pelissier, a member of the Orange County Board of Commissioners and of the Orange County Partnership to End Homelessness, told the Donors Forum that homelessness is a byproduct of national policies on a range of issues such as poverty and mental health, and that efforts to address homelessness are supported by multiple funding streams.

So partnerships to fight homelessness should approach the problem from a “systems” perspective.

In Orange County, she said, that approach has produced promising partnerships.

The local Partnership to End Homelessness, for example, has enlisted partners such as an assistant district attorney whose efforts helped establish a local “outreach court.”

That court, which has engaged students at the School of Law at the University of North Carolina at Chapel Hill, along with other partners, encouraged homeless people who have been arrested for misdemeanors to take advantage of local services, particularly mental health services.

And a local jobs program works to encourage local businesses to hire people released from prison who may be at risk of homelessness. That effort represents a collaboration between local partners such as the Chapel Hill Downtown Partnership and Chamber of Commerce, and is administered by a new nonprofit led by students at UNC-Chapel Hill.

“We’re engaging the community,” Pelissier said, “not just providers” of services.

Critical to local collaborative programs, she said, is the ability to track and measure their impact.

Focus on collaboration

The session underscored the growing focus of Triangle Community Foundation and United Way to work more collaboratively to address urgent needs in the region.

“We have to do it together, think collaboratively,” Lori O’Keefe, president of Triangle Community Foundation, told the Donors Forum. “We don’t have to be the experts. We look for resources and partners.”

Mack Koonce, president and CEO of United Way, told the Donors Forum that collaborative thinking “is important to all our social issues.”

United Way, he said, is “going to work closely with other foundations and individuals to work collaboratively on the donor side and on the service delivery side.”

He said United Way plans to raise “designated dollars to do the next systemic change” in the area of financial stability for families, an effort he said would “keep this going” through “collaboration, the use of data, and scaling what works.”

Urban League focuses on social and human capital

By Todd Cohen

CHARLOTTE, N.C. — Individuals enrolled with the Urban League of Central Carolinas in Charlotte to get national certification training on heating, ventilation and air-conditioning systems also work as apprentice assistants to certified technicians who contract with the Urban League to provide HVAC maintenance for churches, nonprofits and residences.

That maintenance program generates revenue the Urban League uses to provide scholarships for others who enroll in certification training.

The program is one of a handful of social ventures the Urban League has developed and now aims to grow with $200,000 from the Bank of America Charitable Foundation through its Neighborhood Builder program that also will provide leadership training for an emerging leader at the Urban League.

The social venture initiatives “are about building capacity for the agency,” says Patrick Graham, president and CEO of the Urban League of Central Carolinas.

Operating with an annual budget of nearly $2 million and a staff of 10 people working full-time, plus 12 part-time teachers for its after-school programs and 10 contractors for its national certification programs, the Urban League serves roughly 5,000 clients a year through its workforce, education and outreach programs.

The workforce programs include job-readiness, life-skills and financial-literacy training; national certification training in HVAC, broadband and fiber optics, Microsoft specialist and customer services.

Education programs include after-school programs at 12 schools in Mecklenburg and Union counties, with technology training at elementary and middle schools to enhance the core curriculum, and broad band and fiber optic certification, Cisco certification, and leadership development and mentoring at high schools.

In addition to a voter campaign in 2012, outreach programs include a bank the Urban League launched in November 2012 in partnership with Carolina Premier Bank that is geared to “underbanked and unbanked” customers and provides lending to minorities.

The Bank of the Urban League of Central Carolinas already has made loans totaling over $1.7 million and is negotiating another loan for $1 million, Graham says.

The Urban League, which receives two-thirds of its funding from private foundations and individuals, and one-third from government, plans to use the funds it will receive from the Bank of America Charitable Foundation to add a development position to increase giving from individual donors.

It also plans to add a job developer who will work with companies to advocate and find jobs for its clients.

And Shannon McKnight, the Urban League’s director of development and communications, will receive training as an emerging leader through the Neighborhood Builder grant.

Graham received similar training in 2006 as director of emergency and financial assistance at Crisis Assistance Ministry, which that year and again this year received a Neighborhood Builder grant.

Graham says his social venture work at the Urban League reflects lessons he learned from that training, and from his doctoral work in history at the State University of New York at Stony Brook.

His dissertation focused on the migration of blacks to the North from the South during the Civil Rights movement and the institutions they created to address racism in the North.

As a child growing up on Long Island in New York, Graham attended the Martin Luther King Center, which had been founded by migrants from the South, and which he later served as executive director.

Recognizing that minority communities traditionally have lacked access to capital, Graham says, he has worked at the Urban League to find ways to “generate income and provide a means to build financial literacy and capital that would make the community more independent.”

Social business, Part 7: Nonprofits tap corporate expertise

By Todd Cohen

Eighteen years ago, looking for advice on how to most effectively station supplies and equipment so it could move them quickly and efficiently to locales hit by disasters, the American Red Cross turned to FedEx, the Memphis-based global delivery company.

“We provided in-kind shipping, quality management, logistics, supply chain help, and helped come up with a plan of action to keep inventory in our warehouses and get it shipped out,” explained Rose Flenorl, manager, social responsibility, for FedEx.

FedEx now has provided over $10 million in cash and in-kind support for the Red Cross, shipping thousands of tons of relief supplies a year for the charity, including 650,000 pounds of supplies in 2011, she said.

The company also has partnered with the Washington, D.C.-based agency on a variety of other efforts, including an online survey that let small businesses find out how prepared they were for disasters, as well as an online seminar that any small business could take to get training for emergency preparedness, including how to back up their records and keep their personnel safe.

The partnership with the Red Cross “strengthens the attributes and the brand of our corporation,” Flenorl explained. “When we have a good reputation and brand, that increases our revenue. Employees want to work for a company that’s concerned about its community. Our team members live in these communities. We can recruit and retain them.”

Next: Companies team with nonprofit to solving social problems

The series:

Part 1: Companies team with causes to add value

Part 2: Companies build giving into business strategy

Part 3: Philanthropy adds value for companies

Part 4: Nonprofit builds corporate partnerships from ground up

Part 5: Company works with nonprofits to build markets

Part 6: Companies turn to nonprofits to help develop leaders

Part 7: Nonprofits tap corporate expertise

Part 8: Company teams with nonprofit to solve social problems

Part 9: Nonprofits work with companies to help find business solutions

Social business, Part 5: Company works with nonprofit to build markets

By Todd Cohen

A key philanthropic goal at Verizon Communications is to work with nonprofits in the areas of health care, education and sustainability in ways that address their immediate needs and help the telecom company understand the effectiveness of its products, said Kathy Brown, senior vice president for corporate responsibility.

“We want to be in new markets with new communities, and we want to be close to the community and have an opportunity to understand customers’ needs and wants,” she explained.

“We can understand much better how we can serve the community through partnerships, we can get metrics that are good for nonprofits on how they’re delivering services,” she said, “and that also are good for us, to see the effectiveness of the products we put into the market.”

In a partnership with the New York City-based Children’s Health Fund, a national nonprofit that provides free primary care through mobile medical units in urban and rural areas, New York City-based Verizon provides tools to protect the security and privacy of health information, as well as wireless technologies for telemedicine and remote diagnostics.

“Our profit isn’t made on these partnerships,” Brown said. “Our profit is made in selling commercial products we understand better” through the partnerships.

The company also benefits because “our customers care that they’re doing business with companies that are responsible,” she explained. “We believe that if we don’t create value for the community, we are not creating long-term value for our shareowners.”

Next: Companies turn to nonprofits to help develop leaders

The series:

Part 1: Companies team with causes to add value

Part 2: Companies build giving into business strategy

Part 3: Philanthropy adds value for companies

Part 4: Nonprofit builds corporate partnerships from ground up

Part 5: Company works with nonprofit to build markets

Part 6: Companies turn to nonprofits to help develop leaders

Part 7: Nonprofits tap corporate expertise

Part 8: Company teams with nonprofit to solve social problems

Part 9: Nonprofits work with companies to help find business solutions

Junior League investing in elementary school

By Todd Cohen

GREENSBORO, N.C. — At Cone Elementary School in Greensboro, a low-income school that receives Title 1 federal funding, over 96 percent of students qualify for lunch that is free or at a reduced price.

In 2012, only 45.7 percent of its students showed proficiency on end-of-grade tests for reading, math and science combined, the lowest ranking among all Guilford County elementary schools.

To help address the challenges facing Cone Elementary, the Junior League of Greensboro on June 1 will begin devoting all its community giving, including funding and volunteers, to the school.

For each of the past three years, the Junior League has contributed roughly $50,000 to eight to  10 nonprofits to help address the basic needs of families.

For the coming year, it expects to invest over $60,000 in Cone Elementary.

That effort, which is expected to continue at least through May 2014, initially will focus on an initiative, through the school’s recently reconstituted parent teacher association after years of inactivity, designed to engage parents in the educational process; a literacy initiative that will focus on books and reading; school day programs designed to generate excitement in learning; programs that address basic needs; and efforts to support teachers.

A key goal is to make all those efforts “sustainable,” says Emily Faucher, a former assistant district attorney for Guilford County who is serving this year as the League’s president, a full-time volunteer position.

The League this year also is celebrating its 85th anniversary, and from April 20 through May 5 will host its third ShowHouse, which will feature the Adamsleigh estate, which was completed in 1930, and will benefit the initiative at Cone Elementary.

Formed in 1928, the Junior League grew out of the Greensboro Charity League, which was formed in 1926 by a  group of women organized by the late Kathleen Price Bryan, the daughter of Julian Price, who was CEO of Jefferson Standard Life Insurance Co., and the wife of Joseph M. Bryan, who was the company’s senior vice president.

The Junior League operates with an annual budget of over $600,000, including $400,000 it generates from its Bargain Box thrift store in downtown Greensboro.

One of 11 Junior Leagues in North Carolina, the Greensboro Junior League includes 360 active members who each typically volunteers at least three hours a month at organizations the League supports with funding.

The League also includes nearly 700 “sustaining” members.

Projects the League is considering at Cone Elementary include working with parents to boost their children’s literacy; getting parents more involved in the school; collecting books and other supplies for teachers; and supporting feeding and clothing programs for children and their families.

The ShowHouse, which the League hosts every four years, aims to raise over $300,000, Faucher says.

It will kick off with a patron gala on April 19 at the 15,000-square-foot, 13.5-acre estate, and will be open to the public for tours from April 20 through May 5, featuring designs for its more than 33 rooms created by local designers, as well as national designers secured by Traditional Home magazine, national media sponsor for the event.

All the funds raised will support the League’s initiative with Cone Elementary.

“We know we will support this school for at least two years,” Faucher says.

Social business, Part 4: Nonprofit builds corporate partnerships from ground up

By Todd Cohen

In 2008, The Home Depot approached Good360, formerly Gifts In Kind, about working together to provide the Atlanta-based retailer with a way to put to productive use inventory it was not able to sell.

Good360, based on Alexandria, Va., worked with the information technology department at The Home Depot to help identify the products the company would be donating.

“We listened,” explained Cindy Hallberlin, president and CEO of Good360. “We didn’t come in with a cookie cutter plan. We said, ‘What’s your plan and vision?’ We got aligned, not just with management but also with technology. We made sure there’s a marriage between their system and ours so we could be as efficient as possible.”

The effort began modestly, with The Home Depot distributing that inventory to 25 Good360 stores where 25 local nonprofits could pick up that donated inventory.

By 2009, finding that some stores had more donated inventory than the local nonprofits could handle, Good360 worked with The Home Depot on a strategy to develop warehouses so that instead of donating goods to individual nonprofits, many local nonprofits could visit the warehouses to pick up donated goods .

Now, the partnership has grown to nearly 1,300 stores and five warehouses, developed by local nonprofit partners with seed grants from The Home Depot.

“You need to listen and understand the needs of your corporate partner, as well as the needs of those you serve,” Hallberlin said. “If you’re meeting only the needs of the corporation and not meeting the needs of the end users, it’s not a good program.”

Overall, the partnership has helped distribute donated products to over 600,000 low-income families, diverting that inventory from landfills and in some cases saving money by not sending it back to a distribution center.

It also has connected thousands of charities with The Home Depot, helping to create good will and customer loyalty among the supporters and clients of those charities, Hallberlin said.

A single nonprofit served by the partnership, for example, purchased $500,000 worth of products at The Home Depot in a single day for a building project, she said.

“Nonprofits have collective buying power,” she explained. “If you get donations from The Home Depot, you’re going to go there for discretionary purchases.”

Next: Companies work with nonprofits to build markets

The series:

Part 1: Companies team with causes to add value

Part 2: Companies build giving into business strategy

Part 3: Philanthropy adds value for companies

Part 4: Nonprofit builds corporate partnerships from ground up

Part 5: Company works with nonprofit to build markets

Part 6: Companies turn to nonprofits to help develop leaders

Part 7: Nonprofits tap corporate expertise

Part 8: Company teams with nonprofit to solve social problems

Part 9: Nonprofits work with companies to help find business solutions

Social business, Part 3: Philanthropy adds value for companies

By Todd Cohen

DonorsChoose.org, which operates a website that lets public school teachers post their needs for supplies and educational experiences, and lets donors make contributions to buy those resources, asked Crate and Barrel if it would distribute a philanthropic gift card to its customers, who could redeem it by buying supplies for teachers.

The Chicago-based retailer agreed to distribute $25 DonorsChoose cards to 18,000 of its best customers in Chicago and New York.

A study by Rabin Research that the company commissioned found that a control group of Crate and Barrel customers who redeemed the cards spent 16 percent more at the retailer over the next six months than customers who did not receive the cards, and customers who received the cards but did not redeem them spent 5 percent more than customers who did not receive the cards.

While DonorsChoose.org paid for the initial batch of cards, Crate and Barrel went on to distribute over 1.1 million cards and has dedicated 4 percent of its corporate advertising budget to the program, while DonorsChoose.org has expanded the program to hundreds of corporate partners, said Janelle Lin, vice president for partnerships and business development for the New York City-based nonprofit.

DonorsChoose.org has set itself the goal of enlisting 1 million people to support $100 million in classroom projects at 100 percent of high-need public schools in the U.S.

“With this huge goal, the only way we can reach as many people or fundraise that much money to go to classroom projects is through our corporate partners,” Lin explained.

Institutional partners drive nearly two-thirds of fundraising at the nonprofit, which raised $40 million in the fiscal year ended June 30, 2012, she said.

And the cause marketing partnerships deliver value that corporations are looking for, she said, including heightened brand and customer loyalty, increased visibility through the nonprofit’s website, and engagement of their employees.

“Big Four” firm PricewaterhouseCoopers, for example, distributes the card to all of its 37,000 employees, Lin said.

“A lot of times, nonprofits feel they’re asking for a handout and the company is doing a charitable favor by giving them money,” she said. “If nonprofits can identify the ways they can help a company, it’s a two-way street.”

In recruiting on college campuses, companies want to appeal to the “millennial generation that wants the social mission,” said Lin, a graduate of Harvard Business School who enrolled there intending to pursue nonprofit work.

“The millennial generation is looking for it all,” she explained. “They want a job where they can be paid well, have a lot of flexibility, and feel like they’re doing social good. That’s a new component that did not exist even when I was in grad school eight years ago.”

Shannon Schuyler, corporate responsibility leader for PricewaterhouseCoopers, said the professional services firm, which employs roughly 37,000 people in the U.S. and hires about 5,000 college graduates a year, distributes roughly 102,000 DonorsChoose gift cards a year to its employers, partners, new hires and others, including 65,000 to students it talks to on recruiting visits to campuses.

In a competitive marketplace, college grads “look for what really differentiates an organization,” she explained.

PricewaterhouseCoopers has a corporate culture that encourages employees to give their time, money and expertise, a factor that can be considered in the evaluation of employee performance, she said.

That culture of giving, she said, “engages people to be part of something bigger than themselves, and that engagement helps to drive their satisfaction, which helps to increase their quality of work and ultimately is able to position the firm as something greater than all the 37,000 different individuals,” whose average age is 27.

Next: Nonprofit build corporate partnerships from ground up

The series:

Part 1: Companies team with causes to add value

Part 2: Companies build giving into business strategy

Part 3: Philanthropy adds value for companies

Part 4: Nonprofit builds corporate partnerships from ground up

Part 5: Company works with nonprofit to build markets

Part 6: Companies turn to nonprofits to help develop leaders

Part 7: Nonprofits tap corporate expertise

Part 8: Company teams with nonprofit to solve social problems

Part 9: Nonprofits work with companies to help find business solutions

Thompson merger targets expansion

By Todd Cohen

MATTHEWS, N.C. — They both began, in 1850 and 1886, as orphanages of the Episcopal dioceses in South Carolina and North Carolina, respectively.

They both operate residential campuses and out-patient clinics that serve children with mental health challenges, particularly those rooted in early trauma that typically is sexual in nature, as well as their families.

And they both see a need to expand to serve unmet needs throughout the two states, provide a continuum of services ranging from therapeutic residential care to in-home support, and equip themselves to work with sweeping changes in the regulation of health care delivery that increasingly will be driven by market forces and require economies of scale.

The convergence of their roots, their services and their goals now have led Thompson Child & Family Focus in Matthews , N.C., and York Place in York, S.C., to agree to merge by mid-April.

“Given the changes in the human services landscape and health care industry in general, both agencies are really determined to build scale that creates professional excellence and credibility so we can partner with managed care organizations to serve wounded and broken children and families,” says Ginny Amendum, who is retiring as president of Thompson.

Marco Tomat, who is CEO of York Place and will succeed Amendum as president of the merged agency, says health care, which now will be overseen by entities known as “managed care organizations,” will require “service providers such as us to have a strong regional presence and infrastructure to be able to navigate all the new policies and, possibly and in my hope, new and abundant customers.”

Thompson employs over 300 people, operates with an annual budget of $17.7 million, and served over 12,000 children and families across North Carolina last year from its three campuses.

York Place employs 70 people, operates with a budget of $5.2 million, is located on a 120-acre campus, and served 300 children and families last year.

Thompson has worked for over 10 years to develop an “integrated continuum of services” that include both prevention and intervention programs and are focused in Cabarrus, Union and Mecklenburg counties, Amendum says.

And York Place has worked to expand its services to underserved regions of South Carolina, she says.

With unmet needs in both states, she says, the merged organization will build on the two agencies’ combined experience and expertise to find opportunities to expand through partnerships that build the “capacity” to provide more community-based services that are “supported by well-educated, clinically certified staff.”

Thompson already has formed a partnership to serve as the clinical arm for Boys & Girls Homes of North Carolina in Lake Waccamaw, she says, while York Place has contracted with the Fort Mill School District to assist with school therapy.

The merger also should appeal to foundations and other funding organizations, Amendum says.

Funders, she says, are “looking for agencies willing to partner or merge in an effort to build stronger business and service capacity.”

Triangle Community Foundation targeting urgent needs

By Todd Cohen

[Note: I have been providing communications support for Triangle Community Foundation.]

DURHAM, N.C. — Triangle Community Foundation is working to sharpen the focus of its discretionary funding to help address some of the region’s most pressing needs.

A key goal of the effort is to use that funding to “create a ripple effect in our community,” says Easter Maynard, a member of the Foundation’s board of directors and chair of a task force that has been working to develop a blueprint for the Foundation’s grantmaking.

While the $145 million-asset Foundation makes grants totaling over $14 million a year, discretionary grants directed by its staff and board total less than $1 million.

Yet Chatham, Durham, Orange and Wake counties, the region the Foundation serves, are home to nearly 5,700 nonprofits.

Lori O’Keefe, the Foundation’s president, says that, based on work of the task force, the Foundation this spring may select “one or two focus areas where we can really do some thoughtful initiatives,” possibly including annual grants to build the capacity of nonprofits working in those focus areas.

Foundation resources

Created in 1983 by George Hitchings, winner of the 1988 Nobel Prize for Medicine, the Foundation focuses on “building a caring community through brokering solutions to local needs,” O’Keefe says.

In its first 30 years, the Foundation has invested over $185 million in nonprofits and community causes.

The Foundation holds 750 charitable funds, including giving circles, scholarship funds, designated funds, agency funds, “field of interest funds,” “donor advised funds,” and unrestricted funds.

Each year, the Foundation distributes over 10 percent of its assets to nonprofits, including $13.5 million last year.

Six years ago, the Foundation launched its Community Grantmaking Program.

Those grants, which have averaged $12,000 each, have focused the Foundation’s unrestricted funds on civic engagement, and on youth leadership and development.

Sharpening the focus

As part of its planning effort, the Foundation has turned to its donors, to nonprofits, and to community leaders and experts.

It has analyzed its donor advised funds and field of interest funds to better understand the impact they have on the causes donors care about.

Donor advised funds are created by donors who then recommend the grants they would like the Foundation to make from the funds.

Field of interest funds are created by donors who designate areas of interest to support, leaving it to the Foundation to use its discretion in making grants in those areas.

Taken together, field of interest funds and unrestricted funds, which are created by donors who count on the Foundation to use its expertise and knowledge of the community to decide how to invest the funds to support local causes, represent 13 percent of the Foundation’s assets.

The Foundation also has tracked community needs in five focus areas that receive most of its funding, including the arts, environment, health care, human services, and youth and education.

Among the 5,700 nonprofits in the region, 3,800 work in those five focus areas.

The Foundation also has surveyed nonprofits serving those five focus areas, and has assembled 65 community leaders and experts to serve on its task force, and asked them to recommend priorities for its community programs.

Big challenges nonprofits identified in the survey include collaboration, fundraising, and marketing and communication.

And key roles the Task Force has identified that the Foundation can play in working to address urgent needs in the region include leadership, convening, and fostering collaboration and capacity-building.

What’s next

Based on the work of the task force, which held three meetings in January and February, the Foundation this spring is expected to adopt and begin putting into practice a plan to distribute its discretionary resources and educate donors and other funders about how they can help address these priorities.

With donors and nonprofits alike wanting to have a greater impact on urgent issues in the community, O’Keefe says, the Foundation is looking for ways to expand its discretionary funds and grantmaking to help address those issues.

Over the years, she says, the Foundation has worked to balance the interests of donors with the needs of the community and the nonprofits that address community needs.

Now, in the face of an economic downturn that has deepened pressing needs in the Triangle over the past four-and-a-half years, she says, the Foundation will be working with donors and nonprofits to find ways to make a bigger impact on key issues in the region.

Based on the work of the task force, O’Keefe says, the Foundation likely will be asking donors to invest in strategies that have shown, through results that can be measured, that they are making a difference in the lives of people in and places in need in the region.