UWSEM Investment Guidelines and Strategy Frameworks for 2011

UWSEM Investment Guidelines and Strategy Frameworks for 2011

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Agenda and Purpose

Purpose: Provide a high level overview of future partnership guidelines and expectations, criteria and timeline

Agenda

•Overview

• Changes to our process and why

• Timeline

•Overview of Financial Stability criteria

• Strategy by strategy

• Timelines for strategy

•Questions

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To create social change, we must continue to take bold steps toward a fundamental transformation

From . . . . . . to . . . to

• Funder of many diverse agencies based on long, historical relationships

• Taking the lead on initiatives where we can add value and selecting the best partners to achieve our prioritized outcomes

• Neutrally supporting community work

• Having a point of view on how to achieve community impact

• Organization aligned around raising and distributing funds

• Organization aligned to work against strategic goals with the processes, tools and capabilities to measure impact of everything we do

•Engagement becoming the foundation for everything we do•Building on lessons learned to invest capital in powerful partners aligned against the scorecard

•Focusing on public policy and engagement strategies to solve complex social issues

•Organization aligned to work against the scorecard with the talent, expertise and capabilities to demonstrate impact of everything we do

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Guideposts/Key Elements for 2011 Investment Plan

Resources

• Focus all resources (human and financial) in Educational Preparedness, Income and Basic Needs

• Allow for flexibility in funding as well as timelines during any given year in order to address emerging needs.

• Shift from a “spending” mentality to an “investment” framework that is aligned to the 10-year goals.

• Move to funding fewer and more strategic partnerships.

• Allow for investments to a wide range of strategies that go beyond funding agencies (communications, public will building).

• Invest resources to build capacity (i.e. engagement).

• Focus on regional approaches to work

Engagement

• Engage potential partners throughout investment process.

• Allow for continued input by the community - create environments that welcome and supports the participation of all people who want to and value opportunities to work together.

• Ensure that engagement and public policy strategies are in place and authentically engage targeted communities.

Powerful Partners

• Invest in the most powerful, strategic partners that could include public, private and non-profit sector entities that are qualified to address the 10-year goals.

• Support partners that are partnering with others through either alliances/collaboration/mergers

Accountability

• Fierce Focus on results against 10 year scorecard goals

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Bottom-line – what does this mean for 2011?

• No funding guarantees for current funded organizations – 3 year funding cycle ends June 30, 2011

• Invitation only processes with some opportunities to submit a request to partner depending on the stragey

• Money would get used in different ways

• Fewer agencies may be funded

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Timeline

December2010

-Investment guidelines distributed

-Potential partners notified in December and January

- Information Sessions held

January 2011

-Partners not invited may have opportunities to submit a request to partner depending on the strategy Meetings scheduled as needed with invited partners to review strategies and intended results

Meeting timelines will vary depending on strategy

Feb. - March 2011

- Request to partner forms reviewed

- Meetings scheduled with invited partners to review strategies and intended results

Meeting timelines will vary depending on strategy

April - May2011

- Final Investment Portfolios provided to the UWSEM CIC

- Final Investment Portfolios provided to the UWSEM Board of Directors

On-going

- Request to partner forms reviewed

- Investment strategies toward results reviewed and assessed

- Periodic meetings held with invited partners to review strategies and intended results

- Investment Portfolios provided to the UWSEM Board of Directors each July

Request to partner form available in ODM - Formal invitations to partner extended via letter - Organizations notified

June - July2011

- Preliminary Investment Portfolios provided to the UWSEM Community Impact Cabinet (CIC)

- Preliminary Investment Portfolios provided to the UWSEM Board of Directors

Investment Framework

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Financial Stability Investment Strategies and Guidelines

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Vision:

Building Successful pathways for families to be able to take care of themselves, today and in the future.

10-year income Goals:

By 2018, 19,000 low-to-moderate income individuals and their families will have improved financial health indicators; and

300,000 low-to-moderate income individuals and their families will have accessed a financial health support service

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All investments in Financial Stability will focus on the three pillars that are the cornerstone to family economic success:

Earn It! – Increase income through family sustaining wages and job growth opportunities

Keep It! – Managing and lowering expenses

Grow It! – Making your dollars work for you

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The Theory of Change:

•Individual and family financial outcomes improve when financial education and coaching are integrated, bundled, and sequenced with other community services that provide a context for their delivery.  

• Emphasis will be placed on those partners that are providing an integrated, bundled approach to service delivery.  

• All partners to be considered must show how their organization is qualified to successfully assist individuals and families in achieving the 10 year goal.

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Key Strategies

1) A tested integration model that has proven successful (Centers for Working Families).  

2) We are also fostering best practices:  a) Testing an integration framework of financial education and community services; and b) Regional and sector based workforce partnerships (Workforce Development Collaboratives) that seek to build career pathways

3) A final strategy encourages innovative ways to obtain increased individual and family financial outcomes (Innovation/New Ideas).

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Strategy 1:Centers for Working Families

• Integration of

1. Career-Focused workforce

2. Financial Management services

3. Income supports

• Baseline qualifications

– Dedicated workforce platform OR Dedicated financial services platform

– Ability to track and measure identified baseline metrics

Invitation only.

Process may take 3-12 months

Other qualified organizations may inquire about partnerships

Award: Up to $100,000, grant support, technical assistance, peer network, tracking software and technical support to implement the software

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Investment Strategies: Centers for Working Families--Timeline

• Beginning December 2010, potential partners will be notified. Please note that potential CWF organizations can be considered throughout the year.

• Meetings with potential partners begin December 2010

• CWF process is between 3 – 12 months

• Funding is for a three year timeframe and is dependent on meeting deliverables.

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Strategy 2 (A) :Financial Centers

Integration of financial management, education and coaching into pre-existing services.

•Long-term relationships with clients is required

•Ability to track and measure identified baseline metrics

•Open to currently funded as well as 501(c) (3) organizations who are not currently receiving UWSEM funding

•Award: Tracking software and technical support and up to $50,000 in grant support

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Investment Strategies: Financial Centers--Timeline

• Beginning December 2010, potential partners will be considered throughout the year. Organizations may submit a request to partner beginning January 2011.

• Initial investments will be made in June 2011 for fiscal year 2011-12

• Funding is for a one to two year timeframe and is dependent on meeting deliverables.

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Strategy 2 (B): Workforce Development Collaborative

The United Way for Southeastern Michigan serves as fiscal agent and operates a workforce-focused collaborative, the Detroit Regional Workforce Fund.

• The Detroit Regional Workforce Fund seeks to link and/or foster potential public, private and non-profit partnerships focused on helping individuals build career pathways resulting in employment with living wages.

• The key component of the Detroit Fund is a collaborative structure that is employer-led and includes training for in demand jobs, job placement and employee retention.

Qualifications:

• Demonstrate a strong relationship with business/employers AND/OR a strategic partner(s) (that have deep knowledge of the targeted industry and its companies) within at least one of the following sectors: 1) Green - energy efficiency, retrofits or construction; or 2) Health care.  

• Promote opportunities for clear pathways to sector-specific training

• Include existing partnerships or potential partnerships

• Promote regional collaboration among key stakeholders)

• Address current priorities and challenges facing the workforce system

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Investment Strategies: Workforce Development Collaborative--Timelines

• Applications accepted on a rolling basis

• Please refer to the Detroit Regional Workforce Fund website for applications: www.DetroitRegionalWorkforceFund.org.

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Investment Strategies: Innovation/New Ideas

Priority focus will be on neighborhood/community-based collaborations that are based in Center for Working Families, Early Learning Center Hubs and Turn Around High Schools communities.

Programming must result in tangible and quantifiable improvements in income and/or assets

Open to 501(c) (3) as well as for profit organizations.

Award: $25,000-$100,000 depending on strategy

UWSEM minimally defines innovation in this strategy as needing to be replicable, and including one or more elements of the following:1) new technologies2) quantifiable and significant efficiencies that increase return on investment (ROI) and/or ability to scale the innovation3) transformative products and/or services, delivery models and/or vehicles

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Investment Strategies: Innovation/New Ideas--Timelines

• Applications accepted on a rolling basis beginning in January 2011.

• Funding is for a one year timeframe and is dependent on meeting deliverables.

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Questions?

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Next Steps

• Within the next week you will receive a link to the entire investment process that includes all timelines

• Current partners will be notified in January if they have been invited to participate in one of the strategies.

• Organizations not invited may have an opportunity to submit a request to partner.

• UWSEM staff will work with organizations throughout the next 5 months to discuss strategies and deliverables.

• Please note that being invited to participate does not guarantee funding.