December 12, 2013NCLGBA Winter Conference

Nonprofit Funding: Friend or Foe?

MecklenburgCountyNC.Gov

• Business justification for nonprofit funding• What’s our challenge?• What’s our solution?• What’s our process?• Lessons to share

Agenda

2 www.MecklenburgCountyNC.gov

MecklenburgCountyNC.Gov

• Can’t do it all

• Others do it better

• Builds trust

• A process could be your solution

Why Fund Nonprofits?

3 www.MecklenburgCountyNC.gov

• 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

Goals for the Community Service Grant (CSG) Process

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MecklenburgCountyNC.Gov

Application Review Manager’s Recommendation BOCC Decision

CSG Funding Process

5 www.MecklenburgCountyNC.gov

MecklenburgCountyNC.Gov

Application

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Application Review Manager’s Recommendation BOCC Decision

• Instructions• Eligibility Criteria• Kickoff• Applications submitted

MecklenburgCountyNC.Gov

• 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

Eligibility Criteria

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MecklenburgCountyNC.Gov

Strategy to Budget

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Critical Success Factors:• Affordability• Sustainability• Jobs/Workforce and

Economic Development

• Service Investments and Delivery Model

• Fiscal Discipline• Operational

Excellence

Four Target Areas:1. Train and Place

Unemployed Workers2. Improve the High

School Graduation Rate3. Prevent Health Risks

and Diseases4. Promote Financial Self-

Sufficiency

MecklenburgCountyNC.Gov

Review

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Application ReviewManager’s

Recommendation

BOCC Decision

• Review Panel• Evaluation Criteria

MecklenburgCountyNC.Gov

• Review Panel – Internal and external reviewers

• Evaluation Criteria⁻ Performance measures⁻ Demonstration of need⁻ Service strategy and delivery process⁻ Alignment with target area

Application Review

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MecklenburgCountyNC.Gov

• 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?

Performance Measurement Key Questions

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MecklenburgCountyNC.Gov

Manager’s Recommendation

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Application ReviewManager’s

Recommendation

BOCC Decision

• Reviews ranking of proposals• Considers staff recommendations

MecklenburgCountyNC.Gov

• 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

Budget Decisions

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MecklenburgCountyNC.Gov

BOCC Decision

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Application ReviewManager’s

Recommendation

BOCC Decision

• Political realities• Final list of grantees

MecklenburgCountyNC.Gov

• Ultimately nonprofit funding is a political decision– Example: Bethesda Health Clinic

• Deliberation time for nonprofits– Example: CMS vs. CSGs

Political Realities

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MecklenburgCountyNC.Gov

1. Increase Transparency2. Foster Communication3. Enhance Customer Service4. Keep Process Consistent and Fair5. Continuous Improvement

Better Practices

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NCLGBA Winter ConferenceCommunity Service Grants

December 12, 2013