Richmond Region’s Social Economy Sector

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Richmond Region’s Social Economy Sector

Richmond’s Future Board of DirectorsMay 8, 2014

Prepared by Darcy S. Oman

“Nonprofits”

Oddly, a business sector defined by “what it is not” in the tax code

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Mission focus for social benefit – to improve the quality of community life.

Eligible purposes to be exempt from taxation defined by the tax code.

Entities uses their resources for public benefit (no private inurement)

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SOCIAL ECONOMY

IRS Exempt Organization Business Master File 2013

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Nationally: 1,538,860 (all classifications)

Virginia: 38,135 (all classifications) 26,505 501(c)3 public charities

1,824 501(c)3 private charities 9,806 all other classifications

Richmond Region: 1420 reporting 501(c)3 charities (revenue ≥ $25K)

In Search of Virginia’s Social Economy

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Generally, one-third of support comes from general public (in the form of gifts, grants and contributions)

Other tests apply if support equals 10% of all support

Deductions limited for private charities, which operate exclusively for charitable purposes

IRS Public Support Test for Public Charities

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Grants from individuals, institutions and government agencies

Contracts for service Fees for service and product sales (earned income) Membership dues In-kind donations Shared Services/shared cost arrangements Revenue derived from intellectual property Investment income Equity investments Debt financing (loans or loan guarantees) Tax credits and exemptions

Social Economy – Sources of Money

“Social Economy Policy Forecast 2013,” Lucy Bernholz and Rob

Reich

Giving USA 2013 8

Total 2012 Contributions & Grants$316.23 billion

Individuals 72%Bequests 7%Foundations 15%Corporations 6%

Giving USA 2012 Highlights

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Generosity: Charitable Giving% of Income from Contributions*

23%

10%

Arts, entertainment,recreation

20%

Religious, grantmaking & civic associations

40%30%

Social assistance

Elementary/secondaryeducation

Ambulatory health care

Nursing & residentialcare

Professional & scientific services

Hospitals

Higher education

32%

63%

60%

14%

% of nonprofit revenue

0%

U.S.Virginia

50% 60% 70%

52%

51%

21%

10%

9%

1%

* Includes private gifts and government grants Nonprofit Economic Data Bulletin #41

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Generosity:Virginia on Par with U.S. Average in Contributions per

$1000 of Income*

$30

$20

$10

$0

$24.76

Con

tribu

tions

per

$10

00 o

f AG

I*

Virginia U.S.Georgia

North Carolina

Florida

$24.66

$32.77$29.37

$23.55

*AGI: Adjusted Gross Income

$35

$5

$15

$25

Nonprofit Economic Data Bulletin #41

Generosity: Foundations

Virginia foundations: 1,824 organizations

$6.9 billion in assets

Foundation assets per $1000 GSP:

Virginia: $16

U.S.: $37

Virginia vs. U.S. % difference: -57%

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$ 92 B in total assets

$ 43.3 B in revenues $ 42.0 B in spending

$11.4 B in wages and compensation, generating

$313 M state income tax $985 M in federal income

taxes

6.6% total state employment

365,000 workers

253,113 paid workers 130,073 FTE

volunteers

A Major Economic Presence - Statewide


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$9.1 B in total assets

$5.5 B in revenues $5.4 B in spending

5.3% of region’s total employment

43,478 workers 27,889 paid workers 15,478 FTE

volunteers

A Major Economic Presence – Metro Richmond Region

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Organizational Size

10% 20% 50%40%30%

OrganizationsExpenditures

% of Virginia Nonprofit Total

0%

SMALL(Rev. < $1 million)

60% 70% 90%80%

MEDIUM(Rev. $1 m - $9.9m)

LARGE(Rev. $10 m - $49.9m)

VERY LARGE(Rev. > $50m)

83%4%

11%13%

16%3%

1%68%


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A Diverse Sector47%

10%

Arts, entertainment,recreation

20%

Religious, grant making & civic associations

50%40%30%

Elementary/secondary education

Social assistance

Professional & scientific services

Nursing & residential care

Ambulatory health

Hospitals

Higher education

26%

16%3%

6%4%4%

5%

7%

2%4%

2%4%

1%30%

1%8%

OrganizationsExpenditures

% of State Nonprofit Total0%

Other 9%

14%

3%


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Who shares in the RVA’s Social Economy?

2012 Revenue - All Sources $5.5 B

11 entities10 entitiesAll others

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47% of region’s revenue ($2.58B) generated by eleven health related entities:

St. Mary’s Hospital Virginia Premier Health Plan, Inc.Bon Secours Memorial Regional Medical CenterMCV Associated PhysiciansMedical College of Virginia FoundationBon Secours St. Francis Medical CenterAmerican Foundation for Donation & TransplantationBon Secours-Richmond Community HospitalSheltering Arms HospitalPatient Services, Inc.Caring Voice Coalition

Metro Richmond Region’s “powerhouses”

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21% of region’s revenue ($968 M) generated by top ten non-health related entitiesUniversity of RichmondChildFund International USAVirginia United Methodist Homes, Inc.Randolph Macon CollegeCollegiate SchoolWestminster-Canterbury CorporationThe Community Foundation Virginia Museum of Fine Arts FoundationGoodwill Industries of Central Virginia, Inc.YMCA of Greater Richmond

Metro Richmond Region “powerhouses”Top Ten Non-Health Related

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Region’s Social EconomyAcross the continuum

Revenue $1M - $15 M Revenue < $1M

CrossOver Ministries James River Assoc. Peter Paul

Development Center Richmond Ballet St. Joe’s Villa VA Home for Boys &

Girls VA Supportive Housing

Blue Sky Fund Chesterfield CASA Elegba Folklore

Society James House Latin Ballet of VA One Voice Chorus Southside Child

Development Center VA Voice for the Print

Handicapped

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To learn more:www.giverichmond.org – searchable data based and information resource on the region’s social economy, hosted by The Community Foundation.

600 organization profiles: governance, management, finances, programs, impact

http://www.giverichmond.org/

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Growing focus on Collective Impact

Socio-Demographic Trends of Richmond and its Peer Metropolitan Areas 9/2011

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Richmond Region is home to 1.2 million people (and is projected to grow moderately)

Region is more diverse; Hispanic population doubled in 10 years

By 2030, 1 in 5 will be 65 or older Growing income inequality across region Region’s poverty rate (10%) is growing and

concentrated in the City (22%) % of children living in poverty in the region has

increased, with 35% of children in the City living in poverty

Richmond Region in Context

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Systems level emphasis based on data, best practices

Regional planning & coordination of homeless services on broad continuum

Stewards of Region’s 10 Year Plan to Prevent & End Homelessness (Adopted 2008)

Today, Network of 150+ partners, including service and housing providers, local and state government, law enforcement, veterans advocates, mental health advocates

Anchor: Homeward

Definition of Homelessness: U.S. Department of Housing & Urban Development

A person living in an emergency or transitional shelter or sleeping in a place not meant for human habitation.

NOT: staying with family or friends NOT: living in motel NOT: living in crowded or substandard conditions

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Statewide Point-in-time counts: 2010 -2013

2010 2011 2012 20136500

7000

7500

8000

8500

9000

95009080

8816

8424

7625

16% Decrease in Total Homeless Individ-uals

2.9%

9.5%

4.4%

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2007 2008 2009 2010 2011 2012 2013 2014900

950

1000

1050

1100

1150

1200

Richmond regional winter count of people experiencing home-lessness (shelters & outside)

2007 - 2014

2014 More than

20% de-crease since peak

Significant stimulus funding

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Regional strategic priorities: People End veteran homelessness in our region by

December 2015 Continue to invest in successful rapid re-

housing programs, especially for families Reduce the overlap between homelessness

& incarceration Ensure the stability of the safety net and a

crisis response system Support coordinated outreach and

permanent supportive housing

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Regional strategic priorities: System Enhance access to homeless services by

coordinating assessments for housing interventions

Develop performance measurement & program monitoring system

Update our regional strategic plan to end homelessness

Develop governance structure (Continuum of Care)

Connect to mainstream resources

ANCHOR: Middle School Renaissance 2020

Systems level emphasis on data, best practices and quality to improve student outcomes.

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Leadership commitments from corporate and philanthropic sector, school leadership, community-based education and youth development partners

Hours of Opportunity (October 2010)

MSR 2020 VisionAll RPS middle school students have access to consistent, high quality after-school experiences designed to improve academic achievement, workforce preparedness, and social, emotional and physical health.

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LAUNCHED IN FALL 2013WHY:Out-of-school time represent “hours of opportunity” for quality student learning and enrichment to improve students outcomes.

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OST System: A Working DefinitionA coordinated network of organizations and leaders working together to provide consistent, high-quality, accessible after-school programs to kids who most need them. Defined by centralized support for 4 key functions:

Sources: Metropolitan Educational Research Consortium, Wallace Foundation

– Leadership: convene stakeholders, advocate, set priorities, plan, support knowledge-sharing

– Data/Evidence: map services and participation, analyze data for decision-making, measure and communicate progress

– Quality: set and maintain quality standards, provide professional development

– Participation: coordinate marketing, recruitment, transportation and/or fundraising to increase program attendance

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MSR 2020 Integrated System

MSR 2020

MSR

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MSR

2020

Site coordinationStudents

Funders, Community

Leaders

Schools & Community

Centers

Program Providers

Key features of MSR 2020:• Coordinated program delivery• Expanded reach and engagement• Focus on quality improvement• Shared goals, data and metrics• Shared accountability

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Site Coordination Model

Site Coordination

KidsSchool Day

Youth Coordination

& Support

Programs (examples)

MSR2020: Site Support

Prof Develpmt

Quality Standard

s

Measures

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Three essential components of the distributions channel: Food Bank, Community Kitchen, Meals on Wheels

207,000 food insecure people in our region 23 meals are estimated to be needed by

each client (family member) per month – 276 meals per year

Anchor: FeedMore

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FeedMore’s Service Area is extensive – consisting of urban and rural client communities

Average Food Insecurity:• USA: 16.4%• Virginia: 12.7%• Feedmore:13.6%

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Food Insecurity Rate by County/CityObservations/

Comments:• Cities have significant

volume issues due to density

• Rural areas have high percentages, yet low volumes

• There are distinctly different distribution models needed


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City of Richmond by Census TractObservations/

Comments:

• The needs are obvious and significant

• The bifurcation of incomes is evident


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Food Insecure Seniors in our Service Area

Observations/Comments:

• The needs lie in the most populous geographies

• FeedMore’s service area is well-placed

• 10,000 people are turning 65 everyday until 2030

• An estimated 4.8 million seniors nationwide are food insecure

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Capital Region Food Collaborative

• When in doubt, be inclusive• “Membership” driven by interest and

effort• The whole is greater than the sum of the

parts• Amazing what can happen, when you

don’t worry about who’s getting credit• Anything worth doing is worth measuring

• Efforts will be managed with rigor, process, and accountability

• Public accountability will drive action and results

• “Super Majority” will determine direction and decisions

• Leadership will be unbiased, facilitative, and service oriented

Guiding Tenets

Mission:“Building a healthy community by working

collaboratively to ensure consistent access to and consumption of nutritious food for all.”

Food System Localization

Areas of FocusAccess and Equity Closing the Hunger Gap

• Hunger Gap

• Affordability & Access

• Education & Health

• Urban Agriculture

• Advocacy

• Food Hub/Produce Aggregation

• Workforce Development

• Removal of Regulatory Barriers

• AARP (Age; Health)

• Community

Potential Workstreams

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Our region’s Social Economy is a powerful engine for community good and quality of life

Recommendations to achieve greater impact:(1) Consistently invite the sector’s perspective,

experience and knowledge to decision-making tables(2) Improve the sector’s visibility in the media, in policy

councils, within the business community(3) Boost giving, volunteerism and growth of permanent

philanthropic capital in the region(4) Invest in building nonprofit capacity to strengthen the

sector(5) Strengthen the sector’s partnership with government

Conclusions and Implications

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www.giverichmond.org (local data)http://nccsweb.urban.org www.irs.gov/Charities-&-Non-Profitswww.wallacefoundation.org

Giving USA™ Highlights 2013

Hours of Opportunity by Susan J. Bodilly, Jennifer Sloan McCombs et al, published by the RAND Corporation (October 2010)

IRS Exempt Organization Business Master File 2013 (entity level data on assets and revenues)

Nonprofit Economic Data Bulliten #41 Virginia’s Nonprofit Sector Shaping the Economic, Cultural and Social Landscape November 2012 A joint report of the Johns Hopkins Center for Civil Society Studies, The Community Foundation Serving Richmond and Central Virginia and Virginia Commonwealth University

Appendix – Report Sources

http://www.giverichmond.org/

http://www.irs.gov/

http://www.irs.gov/Charities-&-Non-Profits

http://www.wallacefoundation.org/

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Nonprofit Finance Fund 2014 State of the Sector

“Social Economy Policy Forecast 2013,” Lucy Bernholz and Rob Reich

Socio-Demographic Trends of Richmond and Its Peer Metropolitan Areas prepared for Richmond’ Future September 2011

Additional contributions from

FEEDMORE www.feedmore.org HOMEWARD www.homewardva.org MIDDLE SCHOOL RENAISSANCE 2020http://www.tcfrichmond.org/learn/community-partnerships/middle-school-renaissance-2020/

Appendix – Report Sources(continued)

http://www.feedmore.org/

http://www.homewardva.org/

http://www.tcfrichmond.org/learn/community-partnerships/middle-school-renaissance-2020/




Documents

Richmond Region’s Social Economy Sector