1. BEATING THE ODDS! A (reasonably) successful model for funding 2-1-1 AIRS Conference 2009 Jeri Shumate, Presenter jeri@211info.org Monday, June 1 10:00 – 11:30 a.m.

2. WHO ARE WE? Embedded in United Way? Embedded in government? Program within a larger agency? Blended with crisis? Independent non-profit I&R only? Other?

3. What are the odds? The latest statistics from the Small Business Administration (SBA) show that "two-thirds of new employer establishments survive at lease two years, and 44 percent survive at least four years." This is a far cry from the previous long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years.

4. The May 2002 report on New York City's Nonprofit Sector, published by the Nonprofit Coordinating Committee of New York, said that nearly a quarter (24%) of surveyed non-profits in New York City pursued joint venture or merger efforts with other nonprofit or for-profit organizations in an effort to increase revenues.

5. The motivation for the urge to merge is more striking when the survey data are combined with data in a later section of the report. According to the report's scenario analysis, 29% of New York's public charities had deficits in 2000. If total revenues were to decline by 15%, that portion would rise to 71%. In that case, the total net income of public charities in New York would shift from a $4 billion surplus to a $2.5 billion deficit.

6. THE QUESTION: How do we achieve sustainability? a.Private Sector: Youre part of government, right? b.Public Sector: Theres too much need! Foundations should cover this gap! c.Foundations: We dont support operations.

7. PHILOSOPHY Everyone benefits from 2-1-1. Everyone needs 2-1-1. Every sector gains immense value from 2-1-1. Everyone must be defined broadly! Thuseveryone has a responsibility to pay for itand no one has to pay for all of it.

8. OUTCOME: 2-1-1 weathers the storms of any economic crisis, and rides the crest of the waves as funding ebbs and flows 2-1-1 remains engaged during any crisis, because it no longer has to manage its own state of crisis

9. The Philosophy, with Bones Added United Way is a partner 2-1-1 is a proven disaster resource A standardized system has national value Where all 2-1-1s in a state are integrated into a single system, that system has statewide value. A locally-developed system has local value A 2-1-1 that creatively participates in its community brings unique value to its regionand people will pay you for that.

10. Forget the three-legged stool metaphor… You need as many legs as you can find!

11. ORIGINAL BASIC FORMULA Based on $1 per capita per year United Way (local)25% Local Government25% State Government25% Federal Government25%

12. 2009 BASIC FORMULA United Way (local)20% Local government20% State government20% Federal government20% Fees for service, etc20%

13. Figuring Per Capita http://www.census.gov Current, with breakouts by county http://www.census.gov/populati on/www/coop/fscpe.htmlhttp://www.census.gov/populati on/www/coop/fscpe.html State data providers http://www.naco.org/ A friendly place to find VIPs

14. EXAMPLE: Oregon State population: 3,790,060 Each share: at 20% = $758,012 ea at 25% = $947,515 ea

15. ANYONE GETTING ANY PORTION OF THESE SHARES YET?

16. FUN FACTS... When the Calling for 2-1-1 Act passes, funds will likely be distributed according to a per capita formula. You will likely receive more than 25% from the feds in the first two years, and approximately 25% in the remaining years.

17. Lets Go Local…. MULTNOMAH COUNTY, OR 717,880 Fairview 9,735 Gresham 100,655 Lake Oswego (part)* 2,315 Maywood Park 750 Portland (part)* 573,592 Troutdale 15,465 Wood Village 3,100 Unincorporated 12,268

18. LOCAL FUNDING Wheres the money in your community? Are you in a disaster-prone region? Should emergency management participate in funding 2-1-1? Are there local initiatives you can join (i.e., public health outreach, 10-Year Plans to End Homelessness)? How does your board feel about seeking gambling revenue? What is your relationship with local tribes?

19. POSSIBLE SCENARIOS Create a subset of the local 25%: each city contributes 25% and the county covers the unincorporated areas. The county covers 15% and the cities pick up 10% (the county covers 25% for unincorp areas)

20. UNIQUE FEATURES OF THE LOCAL EQUATION Engage local electeds, leaders, stakeholders, planners, systems to figure out who pays for 2-1-1 Analyze local politics, needs, andmost of allrealities when you ask for local support

21. STATE FUNDING Some of us already receive state funding! Yee-haw! Some (many?!) of us have received it, lost it, got it back again, watched it shrink by 90%.... LETS START OVER!

22. Local lessons, enhanced With the premise that the state should come up with 20%, what services does your state need that you can provide? Where is there both need and money? Oregon: Food Stamps & MCH line Oregon: Low Disaster Vulnerability Almost all of us: EITC

23. ARRA A quick word about stimulus dollars: They need to be accessed through government entities, so relations at the state and local levels are paramount. There are still opportunities!

24. MORE ABOUT STATE & LOCAL FUNDING Each state is unique: CT & OR CT = eight counties Smallest: 117,345 people, 513 sq mi. OR = 36 counties Smallest: 1,319 people, 1,715 sq mi.

25. Remember Multnomah... MULTNOMAH COUNTY, OR 717,880 Fairview 9,735 Gresham 100,655 Lake Oswego (part)* 2,315 Maywood Park 750 Portland (part)* 573,592 Troutdale 15,465 Wood Village 3,100 Unincorporated 12,268

26. BACK TO STATE: I AM NOT DRIVING SIX HOURS TO ASK THE WHEELER COUNTY COMMISSION FOR $264.

27. A FINAL COMMENT ABOUT THE STATE I believe the concept of some kind of per-capita assessment should never be considered permanently off the table and this conversation belongs at the state level.

28. THE UNITED WAY IF NOT EMBEDDED: Are they a generous sponsor? Are you a generous partner?

29. THE UNITED WAY IF EMBEDDED: Unique funding challenges What has worked so far? United Way politics require as much sensitivity as any other (maybe even more)

30. A WORD ABOUT MISCELLANEOUS REVENUE What fees for service do you currently generate? Directories Trainings Answering services Others? What about events and individual donor campaigns?

31. IMPORTANT! We dont live in a pure world. The pure model will likely never be seen anywhere. Until the federal act is passed, or until your state can organize itself to come on board, or until peace and harmony are restored to the universe… ADAPT!

32. ADAPT? Use a 33-33-33 model for now? Can you offer partial services? Maybe its a 15-15-15-15 model, and you only provide 60% of services until the rest of the money is raised. When the Calling for 2-1-1 Act passes, can you expand using a 40- 20-20-20 model, then use those years to build the rest?

33. QUESTIONS? Sources for quotes in early slides…

34. The Seven Pitfalls of Business Failure and How to Avoid Them by Patricia Schaefer; Copyright 2006, Attard Communications, Inc. http://www.businessknowhow.com/st artup/business-failure.htm Will There Be A Non-Profit Shakeout? By: Susan Raymond, Ph.D., 06/15/02 http://www.onphilanthropy.com/site/ News2?id=6190&page=NewsArticle http://www.onphilanthropy.com/site/ News2?id=6190&page=NewsArticle

35. THANK YOU! For more information: Jeri Shumate, MA, CIRS 360-901-9619