Prince William County To Change Nonprofit Funding Process

Prince William County in Virginia unveiled Thursday a new process that will change the way that nonprofits receive funding.

According to a report in The Washington Post, budget director Michelle Casciato announced a process that is designed to be more transparent and make nonprofits more accountable. Organizations would have to submit their public tax returns to the county, sign a "memorandum of understanding," and file audited financial statements. To be approved for funding, its activities must directly support the goals of county departments. Finally, if a group wants to re-apply for funding, it must submit a list of goals accomplished in the previous year.

These changes come after Prince William County's funding procedures came under heavy scrutiny. After the allocation of discretionary funds to nonprofits were criticized as using taxpayer money for political gain, the practice was banned in June. And this month, the Board of County Supervisors rejected a proposal from Supervisor Peter K. Candland (R-Gainesville) that would have required board members and their spouses to reveal any involvement with nonprofits.

The funding changes announced could potentially impact organizations that have historically received funding from the county, Casciato said, so groups should not expect to be approved automatically.

“We continue to become more clear . . . in terms of what the organizations expect from us and what we expect from organizations,” she said.

You can read the full story in The Washington Post.

The Global Fund Tries New Method Of Solicitation

The Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM) is taking a new approach to solicitations by pitching its case directly to financiers.

After having difficulty in recent years raising money, The New York Times reported that the charity's new general manager, Gabriel Jaramillo, made a spirited pitch to finance ministers from participating nations. In a meeting in Tunisia, Jaramillo urged them to invest in GFATM now because "the out-years will be much cheaper as your number of cases goes down."

Jaramillo cited Nambia as an example of cost-efficiency. The African desert country spends $120 million a year on AIDS treatment, with half of that money coming from the Global Fund. These efforts helped Nambia free 9,200 hospital beds per year and saved the lives of 1,000 health workers and 550 teachers. In addition, the AIDS deaths in the country dropped from 2,700 to 56 over five years.

The Global Fund, founded in 2002, is almost entirely funded by the largest development nations and its taxpayers. Its largest private contributor is the Gates Foundation, which recently committed $750 million to GFATM. The global financial crisis had a huge impact on the organization, and the drop in financing has left it short of its goals. In May 2011, GFATM stated it was $1.3 billion short of its needs for 2011 through 2013. As a result, the organization has asked many of the countries it helps to make less ambitious plans and to cover more of its own costs.

You can read the full story in The New York Times.

Is Your Funding Socially Responsible?

Today's breed of donors are becoming attuned to the value of social investing. More and more of them are putting their hard-earned money into investment vehicles that support causes they care about or attempting to dictate how their donations are used.

In her book "The Complete Idiot's Guide to Giving Back," Elizabeth Ziemba, J.D., M.P.H. offered detailed information for people considering getting involved in socially responsible investments (SRIs). Nonprofits always want to know what is on the mind of their supporters, and Ziemba's book sheds a light on that information.

She offered the following tips for donors who are considering socially responsible funding:

• Identify your financial needs. How much can you afford to invest? How much can you risk losing?
• Identify and prioritize your social values. Think about what is most important to you in terms of causes and values. Knowing where you will and will not compromise is helpful in the investment selection process.
• Understand and examine social screens. Understand the negative and positive social screens that financial management companies use to review corporate report cards on social issues. Request prospectuses from a few possible investment candidates and compare them.
• Make your selection. After you have completed your self-assessment and an assessment of various socially responsible funds, choose the fund that most closely matches your financial and social goals.

Community Garden Looks For Life After Nonprofit Funding

A Charlottesville, Va. community farm is trying to survive after losing funding from a nonprofit.

C-Ville reported today that the Urban Agricultural Collective of Charlottesville (UACC) had to learn quickly about the finer arts of fundraising and budget management after it lost the funding of Quality Community Council (QCC) during the fall of 2011. The nonprofit ultimately decided the farm was successful enough to stand on its own after five years of funding.

The farm's project director, Todd Neimeier, quickly formed an advisory board of community members to help determine the farm's next step. That turned out to be a partnership with Virginia Organizing, a nonprofit that serves as a fiscal agent for around 40 groups in the state. The partnership will result in the organization accepting grants and donations on behalf of the UCC. This will allow the farm to focus on its mission without having to worry about the financial aspects.

Neimeier is not just relying on the help of Virginia Organizing. UACC started a grassroots fundraising campaign to get donations from individuals in the community. The farm will also receive one final act of good will from QCC. In exchange for UACC helping out with some deliverables, the nonprofit will assist with  funding for this year's budget. Neimeier told C-Ville this was a "lifesaver" for the farm which he hopes will carry it through a good portion of the year.

You can read the full story in C-Ville.

NY Arts Groups Want Love

Today is Valentine's Day and New York arts organizations have one request to the state: Give us some love!

Crain's New York Business reported yesterday that the Arts NYS Coalition, a group that includes a number of nonprofit cultural organizations like the Children's Museum of Manhattan, is launching a campaign to get increased state funding to the New York State Council on Arts (NYSCA).

Although President Barack Obama's new federal budget proposes an increase of $8 million to the National Endowment for the Arts (NEA), state funding has declined in recent years, especially in New York.  Governor Andrew Cuomo's proposed grants to NYSCA is $31.6 million which, while not a reduction from the previous year, is almost $4 million less than it was in 1985.  The Arts NYS Coalition is asking the state Legislature to increase funding by $4.5 million to $36.1 million.  The ultimate goal is to reach $50 million in funding during the next four years.

Groups like the Arts NYS Coalition say that investing in the arts can pay off big time for the state.  This claim seemed to be backed up by a 2005 study by the Alliance for the Arts, which found that NYC nonprofit cultural groups generate $5.8 billion in economic impact and create 40,500 jobs.

You can read more about this story in Crain's New York Business.

Clarksville's Nonprofit Funding Problems

The way the Clarksville, TN City Council handles nonprofit funding is being put under some major changes--though when that will happen is anybody's guess.

As with any chage in governance practices, a new committee has been formed to figure out how the city will handle future funding of Clarksville nonprofits.  So why does there even need to be any changes?  Well, according to the Clarksville Leaf Chronicle, this subject has been a difficult one for the city during the last two years.  In 2010, for example, members of the City Council were frustrated with why they were being asked to fund only certain nonprofits, while leaving others out.  Members also were skeptical if the money they were doling out was going to worthy causes.

During the new committee's initial meeting on Wednesday, it was agreed that a small pecentage of the city's budget would go to non-profits each year.  This is not much differet than previous plans, but this time there is discussion about dividing funding into set percentages for specific charitable functions, such as help for the poor or arts.  The committee's leader, Ward 8 Councilman David Allen, hopes that this move would help mak more competition funding, rather than allowing a small group of nonprofits dominating each year.

Read more about the non-profit funding battle at the Clarksvile Leaf Chronicle.