Organizational Preparedness & Grant Readiness THE D-SOURCE TOOLKIT
Organizational Preparedness & Grant ReadinessTHE D-SOURCE TOOLKIT
Our Company Values
INTEGRITY OPPORTUNITY PARTNERSHIPS
KEYSTOSUCCESS!
Grant WritingFunder
Matchmaking
Organizational Foundation
Organizational Foundation
WHY?YOUR ORGANIZATION’S FOUNDATION BEGINS HERE
What brought you to life?
What are your strengths?
Where do you add value?
How will you measure success?
Determining Readiness
Defined community needClearly established mission and
vision Proactive Budgeting 501(c)3 tax exemption Ability to demonstrate success Local, State and Federal
reporting requirements
Elements of a Stable
Organization
MISSION VISIONVALUES
CHOOSING THE BEST OPTION FOR YOUR ORGANIZATION
501 (C) 3 Pros
Grant Eligibility
Formal Structure
Limited Liability
Cons COST
Paperwork
Shared Control
Public Interest
PARTNERS/FISCAL SPONSORS Pros
Seeking Grants and Qualifying for Funding
Solicit Tax-Deductible Donations
Professional/Experienced Project Support
Cons Difficult to find
Similar Vision/Mission
Competition
Sponsor has ultimate control of the project
Consistent Tracking
Record KeepingPre & Post Surveys
Local, State, & Federal Reporting
ANNUAL REPORTING ANNUAL 990 OR 990 EZ
MICHIGAN ANNUAL REPORT
CHARITABLE SOLICITATION REGISTRATION
Fundamentals
ORGANIZATIONAL FOUNDATION
FUNDER MATCHMAKING
GRANT WRITING
Funder Matchmaking
Of what happens during the grant-making process is beyond your control
50%?
?Understanding What’s IN your Control
Finding the RIGHT Funders!
UNDERSTANDING FUNDER/GRANTEE RELATIONSHIPS
KNOWING WHERE TO FIND YOUR FUNDERS UNDERSTANDING FUNDER PRIORITIES SUCCESSFULLY APPROACHING PROGRAM
OFFICERS
25%
“Your Funders Should Be Just As Passionate About Your Values as You Are”
Fundamentals
ORGANIZATIONAL FOUNDATION
FUNDER MATCHMAKING
GRANT WRITING
Grant Writing
High-Quality Grant Writing/Proposal Development
ARTICULATING YOUR GOALS SHOWCASING YOUR STRENGTHS POSITIONING YOUR WEAKNESSES USING RESEARCH TO YOUR ADVANTAGE PACKAGING THE PROPOSAL
25%
Quality Grant Professionals
Ethics (https://www.grantprofessionals.org/) Help with finding the RIGHT funders Understanding the Grantmaking ProcessWRITING GREAT GRANTS
Fundamentals
ORGANIZATIONAL FOUNDATION
FUNDER MATCHMAKING
GRANT WRITING
Thank You!Wendy Caldwell-Liddell
Fundraising &Fund Development
A Brief Overview of Fundraising Methods and Fund Development Key Insights
KEITH CRISPEN, PRINCIPALThe Crispen Group
• Born in Detroit, MI
• Business Management ‘11, WSU Mike Ilitch School of Business
• Corporate Finance ‘11, WSU Mike Ilitch School of Business
• Community Development ‘17, UDM School of Architecture
• President of Detroit Young Professionals
• Development Director of AIGA Detroit
• $19.2 Million in startup capital since 2009
• $4.85 Million in nonprofit funding since 2011
COVERAGE SUMMARYFundraising
• Types of Fundraising
• Events
• Other Fundraising Options
Fund Development
• Programmatic Alignment
• Relationships & Strategic Alliances
• Partnerships & MOUs
• Organizational Efficacy
• 3 Types of Organizations
FUNDRAISING
• What is Fundraising?
• Why is it important?
• Restricted vs. Non-Restricted Funds
• Laws, Rules, Regulations
TYPES OF FUNDRAISING
• Individual Support• Corporate Support• Digital Campaigns• Direct Mail (Annual Giving, Memberships)• Earned Income• Grants• Major Gifts• Gift Matching• Events
TYPES OF EVENTS
• Competitions
• Runs/Walks (i.e. for a cause)
• Auctions
• Gala/Party
• Art Exhibit
• Sporting Event
• Concert
• A-thon Event
OTHER FUNDRAISING OPTIONS
• Offer Text-to-Give
• Host a Crowdfunding Campaign
• Host a Silent Auction
• Offer a Donation Upgrade Incentive
FUND DEVELOPMENT
• What is Fund Development?
• Why is it important?
• Restricted vs. Non-Restricted Funds
• Laws, Rules, Regulations
RELATIONSHIPS & STRATEGIC ALLIANCES
• 3 Types of Organizations
• Which are you? (More than 1 category may apply)
• Who are your competitors?
• Who are your potential strategic allies?
• Fiduciary vs. Partner
• Purpose of a Fiduciary?
• Purpose of a Partner?
PARTNERSHIPS & MOUs
• Purpose of Partnership?
• What is an MOU? Why is it important?
• Partner identification (i.e. ‘fit’)
• Process chronology
ORGANIZATIONAL EFFICACY
• What is Organizational Efficacy?
• Why is it important?
• How to articulate it? (Means & Methods)
• How to collect the data?
• What kinds of data to collect?
• How does ROI fit into it all?
• What is ROI?
• Why is it important to have clear-cut ROI?
3 TYPES OF NONPROFIT ORGANIZATIONS
• What are the 3 types of nonprofit organizations?
• Which are you? Which would you like to be?
• How does that define your partners?
• How does that define your competitors?
• Examples of each type
Classification: Internal Use FOR INTERNAL USE ONLY.
How do I get my bank to fund me?
May 9, 2018
Jason Paulateer
Objectives
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Upon completion of this session, you should:
• Understand CRA better
• Types of “CRA Dollars”
• “CRA Dollars” Contacts
Classification: Internal Use FOR INTERNAL USE ONLY.
CRA Dollars: What is CRA Anyway?
Community Reinvestment Act (CRA)
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• The Community Reinvestment Act (CRA) is aUnited States federal law designed to encouragecommercial banks and savings associations tohelp meet the needs of borrowers in all segmentsof their communities, including low- andmoderate-income neighborhoods.
• Congress passed the Act in 1977 to reducediscriminatory credit practices against low-income neighborhoods, a practice known asredlining.
Classification: Internal Use43
The CRA was passed to discourage redlining, a practice originally based on Home Owners' Loan Corporation"residential security maps," like this 1937 security map of Detroit.
The House You Live In
44
45
Low- and Moderate-Income (LMI)
Heart of the City Health Center, Grand Rapids
• Low-income = an individual income, or tract income, that is less than 50% of the AMI
• Moderate-income = an individual income, or tract income, that is at least 50% and less than 80% of the AMI
• Middle-income = an individual income, or tract income, that is at least 80% of AMI but less than 120% of AMI
• Upper-income = an individual income, or tract income, that is equal to or greater than 120% of AMI
Classification: Internal Use
What is “CRA Qualified”?
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What constitutes a “CRA qualified” CD activity is specifically defined. There are several wonderful things financial institutions do to support communities that do not qualify for CRA credit.
For all financial institutions, there is a focus in seeking to obtain CD loans, services or investments.
Classification: Internal Use
What is “Community Development”?
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Community Development is an important concept in Intermediate Small Bank and Large Bank evaluations. In order to receive CRA credit, a bank’s activities must have one of the following as its primary purpose:
Classification: Internal Use
Community Development Activities
• Affordable housing
• Economic development
• Community services
• Revitalize or stabilize LMI geographies
• Neighborhood Stabilization Program
(NSP) Activities
8
Classification: Internal Use
Exam Types
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• Small bank
• Intermediate small bank (ISB)
• Large bank
• Wholesale and Limited Purpose
• Strategic Plan
Classification: Internal Use
Overall Ratings (Grades)
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• Outstanding
• Satisfactory
• Needs to Improve
• Substantial Noncompliance
Classification: Internal Use
Who Are the Regulators?
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• Federal Reserve Bank (FRB)• Regulates all bank holding companies, financial
housing companies and state chartered member banks
• Office of the Comptroller of the Currency
(OCC)• Regulates banks with a national charter
• Federal Deposit Insurance Corporation
(FDIC)• Regulates non-Federal Reserve member state
chartered bank
Classification: Internal Use
Regulators – but not for CRA
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•National Credit Union Association (NCUA)
Regulates credit unions – not subject to CRA
•Consumer Financial Protection Bureau (CFPB)
Regulates banks larger than $10B for many consumer protection regulations, not CRA
Classification: Internal Use
CRA Dollars
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• Loans
• Equity Investments
• Giving• Grants• Sponsorships• Service
Classification: Internal Use
CRA Dollars
Lending $$ Investment $$ Grant $$ Sponsorship $$
Money Follows, It Does Not Lead
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Classification: Internal Use FOR INTERNAL USE ONLY.
CRA Dollars: Community Development Loan and Investment
(Equity) Dollars
6 C’s of Credit
Community Impact
Capacity
Character
Collateral
Capital
Conditions
57
Funding Demystified
920 Cherry, Grand Rapids
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Community Impact
• Does your project qualify for CRA credit?• Is it in a low- or moderate-income census
tract?• Does this project help to stabilize or revitalize
the community?• What is the level of jobs that will be created
by/at the project?• Is it affordable housing?
• How many units of housing will be created?
Capacity/Cash Flow
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• What is your organization's borrowing history and track record of repayment?
• How much debt can your organization handle?
• Will you be able to honor the obligation and repay the debt?
• There are numerous financial benchmarks such as debt and liquidity ratios that banks use before advancing funds.
Character
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Banks want to “put” their money with clients
who have the best credentials and references.
The way you treat your employees and
customers, the way you take responsibility, your
timeliness in fulfilling obligations - that's
character.
Cornerstone Estates, Detroit
Collateral
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• While cash flow will nearly always be the primary source of repayment of a loan, bankers often look at what they call a secondary source of repayment.
• Collateral represents assets that the company pledges as an alternate repayment source for the loan. Hard assets.
• Collateral can come in the form of real estate and office or manufacturing equipment.
• Your accounts receivable and inventory can also be pledged as collateral.
Capital
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• How well capitalized is your organization?
• How much money have you invested/reinvested in the organization?
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Conditions
• What are the current economic conditions and how does your organization fit in?
• If your organization is sensitive to economic downturns, the bank wants to know that you are good at managing productivity and expenses.
Heart of the City Health Center, Grand Rapids
Inside Baseball
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Classification: Internal Use FOR INTERNAL USE ONLY.
CRA Dollars: Time, Talent and Treasure
May 9, 2019
Money Follows, It Does Not Lead
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Classification: Internal Use
CRA Dollars: Time, Talent and Treasure
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• Time & Talent• Community Development Service
• Talent• Sponsorship with CD Service Component
• Treasure• Foundation/Corporate Grant funding
Classification: Internal Use
Examples of Community Development Services
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• Providing technical assistance on financial matters to non-profit, tribal or governmental organizations serving LMI housing or economic revitalization and development needs
• Serving on the board or committee of an organization facilitating affordable housing construction and rehabilitation or development of affordable housing
• Developing and teaching financial education classes for LMI individuals
Classification: Internal Use
What is LMI?
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FY 2014 Very Low-Income (50%) Limit (VLIL)MedianFamily Income
1 Person
2 Person
3 Person
4 Person
5 Person
6 Person
7 Person
8 Person
60,400 21,150 24,150 27,200 30,200 32,600 35,050 37,450 39,850
FY 2014 Extremely Low-Income (30%) Limit (ELIL)1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
12,700 14,500 16,300 18,100 19,550 21,000 22,450 23,900
FY 2014 Low-Income (80%) Limit (LIL)
1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
33,800 38,650 43,500 48,300 52,200 56,050 59,900 63,800
Classification: Internal Use FOR INTERNAL USE ONLY.
CRA Dollars: Grant and Sponsorship $$$
May 18, 2017
Classification: Internal Use71
Understanding the process is key to creating a win-win for
all to fully utilize the CRA resources available to fund
your project or event.
Grant and Sponsorship $$$
Classification: Internal Use
Grant and Sponsorship $$$
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• Understand the Funding Priorities
• Sustainable and Measurable
• Clear and Concise Goals
Classification: Internal Use
CRA Dollars
Lending $$ Investment $$ Grant $$ Sponsorship $$
Classification: Internal Use
Questions
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Jason L. Paulateer, Senior Vice President
Market Manager – North RegionFifth Third Community and Economic Development
Phone: (313) 230-9774Email: [email protected]
Contact Information
Classification: Internal Use FOR INTERNAL USE ONLY.
Appendix
Classification: Internal Use
Resources
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• Interagency Questions & Answers on Community Reinvestment March 11, 2010 http://www.ffiec.gov/cra/pdf/2010-4903.pdf
• Supplemental Interagency Procedures http://www.ffiec.gov/cra/examinations.htm#EX_PROCEDURES
– Intermediate Small Bank issued in 2005– Small Bank, Large Bank, Limited Purpose, and Strategic Plan
issued in 2006• OCC Large Bank Examiner Guidance, December 2000• OCC Bulletin 97-26 Performance Context• Supervisory Agency Community Affairs Departments• http://www.ffiec.gov: HMDA data, CRA data, geocoding/mapping
system, rate spread calculator, links to CRA Performance Evaluations
• http://www.fdic.gov: Deposit market share data, list of branches, Bank Call Reports
• http://www.bls.gov: Employment/unemployment data• https://www.pnc.com/en/about-pnc/corporate-
responsibility/corporate-social-responsibility.html