Presentation on theme: "Creative Funding Models Goal of Panel Discussion: To build awareness of three creative funding models."— Presentation transcript:
Creative Funding Models Goal of Panel Discussion: To build awareness of three creative funding models
Panelists 1.Regional Community Foundation Model Joedy Hightower – President/CEO - Southeastern Illinois Community Foundation 2.Co-operative Model Edward VanHoose - Association of IL Electric Cooperatives 3.Earned Revenue Model Gail Rost – Executive Director - Champaign Urbana School Foundation/General Manager of the I.D.E.A Store
Why think about cultivating community philanthropy as a source of funding? Communities need to move away from a culture of dependency toward self-reliance based on local assets. Community philanthropy is a tool for community capacity building and improvement. Community philanthropy is a tool for building individual skills and confidence that can be translated into all forms of community development. Community philanthropy must be inclusive and must be geared to motivate and engage the broader community. Of the 200 new projects in the nation that have over200 jobs have over 35,000 economic development groups chasing them!
Developing community philanthropy using a regional community foundation/affiliate model Southeastern Illinois Community Foundation assists rural communities without the resources to establish a stand alone community foundation in building permanent resources to benefit their hometown. Southeastern Illinois Community Foundation is a collaborative structure that has the capacity to enhance the quality of life in small rural communities in the region. Rural communities to take advantage of the back-office administrative structure while focusing on developing local resources to benefit a specific community, county, or project.
Local Affiliate Roles GetGrowGive Local Donor Development Local Marketing Investment Management Cultivating Regional Partnerships/Donors Regional Marketing Policy Making Legal Compliance Local Donor Development Local Marketing Local LeadershipSICF Local Leadership
Southeastern Illinois Community Foundation Counties Served: Clark, Clay, Coles, Crawford, Cumberland, Effingham, Fayette, Jasper, Lawrence, Richland and Shelby. Funds/Grants Supporting: Altamont, Beecher City, Casey, Dieterich, Effingham, Mattoon, Olney, Palestine, Sigel, Shumway, Stewardson, Strasburg. Assets under Management $5.5 Million Number of Funds 85
Benefits of an affiliate fund partnership Local Control Nonprofit Status Lower Cost of Administrative Services Lower Cost for Investment Services Gift Planning Assistance Compliance with national/state ethical and operational standards Peer Learning Network Marketing, Communications and Web site
Clarifying the Earned Income/Social Enterprise Concept Bottom Line Mission Money Environment Social purpose business Social enterprise ventures (nonprofit) Innovation Green business 9
What is Social Enterprise? Social enterprises harness the power of the marketplace to solve critical social or environmental problems They use a business model to solve a social problem Business models include: – retail, service and manufacturing businesses that help people overcome employment barriers; – contracted providers of social and human services; – fee-based consulting and research services; – community development and financing operations; – technology enterprises. Source: Social Enterprise Alliance (SEA) 10
Motivation What is yours? – Why do you want to start a social enterprise? – Do you know enough about social enterprise? Business as the vehicle for social impact Strategy to reduce dependence on charitable donations Desire to improve the common good and solve a social problem in a new, more lasting and effective way than traditional approaches Mission match 11
Social enterprise (nonprofit ventures) Income-generating entity that produces goods or services to achieve social mission Reinvest profits into the business to achieve social aims Many legal forms: – 501c3 – Nonprofit, TEK – Cooperatives – Social purpose business – L3C – Low Profit, Limited Liability Corporation – LLC - Limited Liability Corporation – Benefit Corp. 12
Champaign Urbana Schools Foundation DBA The I.D.E.A. Store Goals provide a clearinghouse/warehouse to accept “discarded reusable” materials provide community members of all ages with access to challenging materials and creative ideas for their re-use generate revenue for the Champaign-Urbana Schools Foundation foster new constituencies supporting the CUSF mission educate citizens about the value of waste reduction, non-toxic alternatives, and smart design provide volunteer service for all ages (including K -12 students) promote “green business” practices.