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A newsletter of the Napa Valley Community Foundation
April 2010
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How do we decide which projects to support? And at
what dollar level?
These are two questions we routinely ask ourselves
at the Community Foundation.
Very often, the same questions come up for the
donors with whom we work--whether they are giving
through a fund at the Community Foundation or
making distributions independently from their
checkbooks or family foundations.
Since December of 2008, we have distributed nearly
$800,000 to a core group of local charities that meet
the basic needs of Napa County's struggling families.
The goal: to rapidly bolster the social safety net at a
time of unprecedented need.
In this edition of Community Link, we'll look
under the hood of our Safety Net Grants program, to
understand:
- how we chose our grant recipients; and
- how we allocated limited dollars to each.
In putting together our Safety Net Grants portfolio, we
tried to
think critically about how the component
pieces--various nonprofit programs--relate to one
another. Readers who are familiar with the vernacular
of the investment world may hear familiar echoes in
this approach.
I hope you enjoy reading more below, and look
forward to answering any questions you may
have.
If you'd like to read past issues of the newsletter, go to
http://www.napavalleycf.org/index.php?
page_id=169.
Terence Mulligan
President
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Choosing Recipients
Start with a clear goal and a limited scope
When the economy fell into a deep recession two
years ago, we wanted to do something to help. In
growing numbers, local families needed assistance
with food, shelter and emergency support. At the
same time, nonprofits serving these families were
struggling financially.
What constructive role could the Community
Foundation play?
To answer this question, we tried to be clear, from the
start, about what we wanted to accomplish. For
example, did we want to focus only on food? This
would have been one way to reach a lot of people with
fairly limited dollars, since feeding programs are
generally less expensive to operate than other social
service programs.
For instance, the cost of an hour of mental health
therapy ranges from $60 to $100 in Napa County,
even in a nonprofit setting where the end-user may
not actually be presented with an invoice. This is
enough to purchase and deliver up to 20 hot meals
through the Senior Meals on Wheels program. Other
feeding programs, such as The Table, rely on
donated product and volunteer labor, and can
therefore stretch $100 to assist even more
people.
We decided to expand the scope of our efforts beyond
food for two reasons. First, from surveying nonprofits
that work closely with vulnerable families, we knew
that other important services were in very high
demand. Second, with the grant dollars we had
available, we could have filled known budget
gaps in the food sector, and covered the cost of
increased demand for at least three years, with
money left over, standing idle.
While our grant budget was too large to work only on
food, we didn't have sufficient resources to fund all the
nonprofit agencies we would've liked to at a
meaningful level. For this reason, we developed a
fairly narrow definition of the social safety net for Napa
County. Our intention was to provide timely and
significant grant support in the critical areas identified
by our nonprofit partners: food, shelter and emergency
support to families.
We also wanted to be prevention-focused where
possible, and to concentrate our dollars on programs
serving beleaguered heads-of-household, in hopes
that by offering aid to them, whole families might do
better. Here are the things we chose to include in our
Safety Net Grants portfolio:
- Food programs, a core area of need where
relatively small dollars can go a long way.
- Family Resource Centers (FRCs), which work with
more
than 2,500 vulnerable families throughout the county,
and serve as a gateway to services, public aid and
emergency assistance. FRCs often help families on
the brink of crises, and pull them back towards
stability. This important function fit squarely with our
desire to focus on prevention.
- Housing programs that help individuals and
families remain in their current living situation, such
as foreclosure education and prevention programs for
homeowners and legal services for renters.
- Mental health services for adults. This may seem
like an outlier, but the safety net organizations we
spoke to helped us understand that mounting
pressure on households (from lost income, lost jobs,
troubled mortgages) translated into more depression,
marital conflict and family violence.
The pie chart above provides an illustration of our
Safety Net Grants portfolio, by sector. Please note:
percentage amounts are for the first three rounds of
discretionary grant distributions made by the
Community Foundation, totaling $559,250 through
March 31, 2010. Additional grants have been made to
safety net recipients from donor advised funds that we
administer. Together, our discretionary grants and
donor advised fund grants to safety net nonprofits
exceed $800,000.
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Allocating Limited Capital
Look closely at budgets and clients served
It is often easier to pick a number than to pick a
strategy.
Once we determined which sectors of the safety net
we were going to work on, it wasn't difficult for us to
identify key players in each sector, and settle on dollar
amounts for recipient organizations.
In a world of unlimited resources, you might look at
the gap between the demand for services and the
supply of dollars for each agency, and endeavor to fill
it up.
In the real world, we looked at the budget of each
organization and the number of people they serve,
and chose grant amounts accordingly. Our goal was
to place more dollars with agencies that were helping
more people. A guiding principal was to offer support
to each organization that was meaningful, but also
proportional. In most cases, our partners have
received grants from us, in the last fifteen months,
equivalent to 5 percent to 10 percent of their annual
operating budgets.
The pie chart above provides an illustration of our
Safety Net Grants portfolio, by recipient organization.
Once again, percentage amounts are for the first three
rounds of discretionary grant distributions made by
the Community Foundation, totaling $559,250 through
March 31, 2010.
If you were going to build an index fund for meeting
basic human needs at a critical moment for our
community, given the limitations noted above, we
think you'd wind up with a portfolio that looks a lot like
this one. Given the still-tenuous nature of the overall
economy, and the blistering fiscal misery of the state
of California, we suspect there might be a need for
future investments to strengthen the safety net in
Napa County, and would welcome your support in that
regard.
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