Title
Vote to approve funding level & process for Nonprofit Grant Allocation Process for FY 2017-18
Abstract
Action Requested:
Review and provide direction on the nonprofit grant allocation process and funding level for FY 2017-18
Introduction & Background:
Chatham County allocates funds to local nonprofit agencies via a competitive process that relies on the input of volunteers. Over the past few years, we have identified several issues of concern that we think require more study over the next year. We provide further detail here and ask for your direction.
Discussion & Analysis:
VOLUNTEER PANELS:
It is increasingly challenging to find enough volunteers, especially those representing diverse populations. Also, it is increasingly hard to find volunteers without conflicts of interest. Many serve on several nonprofit boards of directors or worked on the staff for nonprofits submitting applications. If someone has to bow out with little notice, we have ended up without enough members or without a panel chairperson. Less frequently, a few members have been combative in panel meetings or took on other inappropriate roles during the optional visits with nonprofit agencies. It seems that this is a good time to consider other ways of getting community input in the nonprofit grants so that we use everyone’s time wisely and we hear from a diverse set of voices.
NONPROFIT GRANTEES:
With a few exceptions, the same set of agencies receives funding each year. The funding level may vary a bit, but generally the same agencies receive funding from the county. It is a great deal of work for all involved to apply and oversee the grants, so it may be time to look at what other counties or towns are during. Durham County, for example, is taking this year to study this process based on similar concerns. Some options we might look at could include annual contracts with a few nonprofits, with contracts overseen by specific county departments, while other nonprofits would continue to apply for grants through the joint process with United Way.
Another reason to revisit this process is that we believe that we need to emphasize sustainability of our nonprofits. In the past year, two vital nonprofits have experienced major issues, putting important services at risk. A few others need a strong nudge to focus on building capacity to thrive long-term. We are already taking some steps in this direction outside of our grant process. The Chatham LIVE workshop will focus on this issue in March and we are asking nonprofits to bring a team of people, including at least one board member. We also are helping the Triangle Community Foundation to promote its on-going workshops that provide intensive help to nonprofits to address sustainability. We have had very few Chatham County nonprofits enroll in this program and it may be time to give them incentives to do so.
STAFFING:
The existing process has become increasingly demanding of staff time and the timing of the process during the major portion of the operating budget process makes it difficult to staff.
INTERIM PROCESS FOR FY 2017-18
For the upcoming fiscal year, staff recommends using a less intensive interim process, while using this coming year to research and develop recommendations for FY 2019.
• FUNDING PRIORITIES: For FY 2014 through FY 2017, at least 55% of the available funding has been earmarked for programs that address housing, hunger, and health. The remainder has been available for programs that address other human service needs. Given the recent human relations discussions and youth development, we would suggest adding youth development to this list. Staff recommends setting aside 65% of available funding to address housing, hunger, health and at-risk youth development.
• ELIGIBLE GRANTEES: For FY 2017-18 only, we are recommending that we restrict applications to existing grantees. The United Way would still manage this process as before, but we would not be accepting applications from other groups.
• GRANT REVIEW PROCESS: Staff proposes a scaled back review process since we would limit applications those receiving funds this year. Departments will continue to review the applications to provide feedback. Staff also may convene one or two review panels of experienced volunteers to get feedback, if needed. These panels also will be opportunities to get some feedback on the overall process from their viewpoint.
• NONPROFIT GRANT POLICY: We are recommending minor interim revisions to the Chatham County Nonprofit Agency Funding Policy for FY 2017-18. The draft policy is included as an attachment. The only changes are highlighted in yellow and include items covered in this agenda item.
• FUNDING ALLOCATION: Staff is requesting that the Board of Commissioners again appropriate $233,000 for the FY 2017-18 nonprofit grant allocation process with $10,000 reserved for a second collaborative grant pilot program in partnership with Chatham County United Way and the Triangle Community Foundation (more on this grant below). This funding level has been fairly consistent for several years.
SECOND COLLABORATIVE GRANT
As noted above, Chatham County has been involved in conversations with Triangle J Council of Governments and the United Way to sponsor a second collaborative pilot grant to be competitively awarded to a project involving two or more local nonprofits. Last year, the focus was affordable housing, based on this being a top priority of the Board of Commissioners. We are proposing a broader focus for the second grant in FY 2017-18. We only ended up with two applications around affordable housing, which was disappointing. Some feedback indicates that affordable housing tends to be a pricier focus area and does not involve as many of our nonprofits.
For the second grant, we are proposing a broader focus on youth and family support. This can include affordable housing, but other components are youth development, employment, health, mental health, financial stability and other family support systems. We believe that this will generate more applications and foster more collaborative work around the county. Other aspects of the grant would remain the same. We are still developing the pilot grant flyer, but will share it publicly when available.
ARTS & CULTURE FUNDING: Staff recommends again providing $35,000 for arts and culture funding using the same process approved last year. The funds would go to the Chatham Economic Development Corporation as a grant for the Chatham Arts Council.
Budgetary Impact: If approved, $233,000 would be budgeted for FY 2017-18 for the nonprofit grant allocation process. Another $35,000 would go to the Economic Development Corporation for arts and culture funding through the Chatham Arts Council.
Recommendations:
We recommend motions to approve the interim process for nonprofit grant applications and allocations for FY 2017-18:
• Set aside 65% of available nonprofit funding to address housing, hunger, health and at-risk youth development.
• Restrict applications for FY 2017-18 to current year nonprofit grant recipients.
• Allocate $233,000 for the FY 2017-18 nonprofit grant allocation process, with $10,000 reserved for a second collaborative grant pilot program in partnership with Chatham County United Way and the Triangle Community Foundation
• Approve the Chatham County Nonprofit Agency Funding Policy for FY 2017-18.
• Approve the second year of the pilot collaborative grant with a focus on youth development and family support.
• Approve the allocation of $35,000 for arts and culture funding that will go to the Economic Development Corporation as a grant for the Chatham Arts Council.