Sustainability in Practice

Practical Approaches to Funding Evolving Programs

The Nonprofit PartnershipJune 21, 2011

Considerations When Defunding Looms

• How central is the program to your mission?

• What are the outcomes?

• Is the need still strong?

• Is it central to a key organizational strategy?

• Is there crucial talent you can’t afford to lose?

• Does it have a marketing message that will resonate with the community?

Weighing These Factors Yields Options

• We need to find a way to sustain this program.• It’s useful, but we don’t need to do it.• Let it go (and celebrate it for doing its job.)

Considerations for Sustaining

• What’s the scope?– Key staff members– Critical sites– Essential partners– Size of the program

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Answer these questions with key stakeholders to determine optimum size and scope.

Sources for Sustainability

• Government grants

• Foundation and corporate support

• Individual giving

• Events

• Fee-for-Service and Earned Revenue

• United Way / community federation

• Reserves and Endowment

Government Grants

• Identify stable, recurring streams of funding whenever possible:– PA Tax Credit

Programs– Federal CDBG (City)– Nutrition programs– County Gaming

Revenue

Foundation & Corporate Support

• For foundations, cast a wide net that captures old friends and new prospects – address in rotation as your program continues to evolve.

• For corporations, be open to options other than the outright grant: sponsorship, co-marketing, and volunteer time.

Individual Giving

• Build a base of stakeholders that extends beyond your agency’s core base:– Past participants– Families of those served– Affinity audiences

• Develop a case and mobilize and execute an annual campaign.

Fee-for Service and Earned Revenue

• Client self-pay / User fees• Medical/clinical reimbursement streams• Consultation / curriculum sales• Program products / social enterprise• Collaborating partners purchase services

United Way Community Federation

• United Way member organization

• Participation in special projects and open RFPs.

• Erie Gives Day• Highmark Walk• ……..

Reserves / Endowment

• Emergency sources to address one-time shortfalls.

• Adding to endowment over time or with a large one-time gift can create additional revenue stream.

Case ExampleA+ Adventure Program

• Originally funded through a 3 year Federal Demonstration grant @ $150,000 / year.

++++++++++++++++++• Right-sizing

considerations brought the target budget down to $95,000 /year.

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A B C D E F

• A = Government• B= Foundation/Corporate• C = Individuals• D = Fee-For-Service• E = Events• F = United Way