Showing posts with label funding. Show all posts
Showing posts with label funding. Show all posts

Monday, October 28, 2013

Toledo group generates goodwill – and funds – with ‘buy a shingle, save a home’ campaign

How do you raise money quickly for a pressing community need, while at the same time building public awareness and buy-in? (Isn’t that all nonprofits’ “holy grail”?) William Farnsel, executive director of NeighborWorks Toledo Region in Ohio, has developed a winning formula to do just that.

Farnsel’s organization, which is celebrating its 20th anniversary this year as a member of the NeighborWorks network, serves a majority African-American community with higher-than-average unemployment (8.9 percent). Many of the houses are in need of the organization’s weatherization-assistance program for low-income families, which it administers with funds from the federal government, Columbia Gas and Toledo Edison. (To date, NTR has installed more than $23.7 million in insulation and other materials for 15,000-plus customers in Toledo and the broader Lucas County.)

However, if a house has a leaky roof, weatherization isn’t going to do much good. One of the city’s anchor businesses, Owens Corning, donated the necessary shingles (along with a lifetime warranty for the resulting roofs), but a lot more money for time and materials needed to be raised, and quickly, in order for the weatherization program to continue before cold weather arrived.

“It’s a chronic problem we face,” Farnsel says. “Government funding comes with processes and forms that take time to sort out. Plus, it requires bringing the entire house up to code – an even more expensive, time-consuming endeavor. So, we decided to seek private funds.”

Farnsel didn’t want the typical meal or golf outing, however. He wanted his donors to feel a more visceral connection to the impact of their giving. That’s when he hit upon his theme: “Buy a shingle; save a home.” The goal: to raise enough money to finance the replacement of four roofs – one in each of four targeted neighborhoods. The CEO of the local hospital was recruited as chair of the planning committee, which helped attract representatives of local businesses, organizations and affluent families in the community to the fundraising dinner. Attendees were invited to “purchase” a shingle (or a bundle of them, or a box of nails, depending on the amount given) – with an onsite exhibit showing exactly what is needed to tear off an existing roof, complete structural repairs and install a new one.

The next challenge was how to choose which roofs to replace first, when there were so many low-income families who could benefit. Farnsel also wanted residents in the targeted communities to feel like they were active participants and partners in the campaign. His solution: a lottery. Tickets were sold to residents for $3 each at local churches, banks and other community locations. If your roof didn’t need replacement, or you knew someone else more in need, you could buy the ticket to “gift it” to someone else.

“One woman was so desperate for a new roof that she borrowed $100 from friends and family to buy as many lottery tickets as she could,” says Farnsel. “Her roof was so bad she literally had skylights, and she was forced to use kiddy pools to catch the water when it rained.”

Joanne Born (middle) weeps with joy when she learns
she has won the "lottery."
On the day of the drawing in that neighborhood – during NeighborWorks Week of 2013 -- a young couple was seen hanging out by the street corner where the winner would be announced. Farnsel later learned that the couple was the daughter and son-in-law of Joanne Born, who had bought all those lottery tickets. She was too nervous to watch the drawing in person, and sat instead in a car at the curb. And yes, she did win that drawing. Today, she is the relieved owner of a new roof – at the cost $12,000, which she could never have afforded on her own.

NTR raised $37,000 through this event, including $900 from resident-purchased raffle tickets. The second annual event already is scheduled, for May 3, 2014.

If you’re thinking of holding a similar fundraising/public-awareness campaign, Farnsel has a few tips to offer:

Recruit supporters from the business community. In 2013, the CEO of the local hospital was enlisted as the fundraising chair, which generated both a good-sized contribution from that institution and those of his friends. In 2014, Farnsel plans to reach out to the local utility industry.

Joanne Born in front of her house, with
a new roof. (Habitat for Humanity is
set now to help refurbish her porch.)
Don’t be discouraged when the unexpected occurs. Farnsel’s campaign was very creative, and would normally have been a great local media hook. But on the same day as the drawing, an 18-month-old girl was reported missing in the neighborhood. It was a tragedy, and understandably, the event got almost zero media coverage as a result. (Note from the writer: As a veteran PR professional, I can attest to that reality; if a bigger, competing news story occurs in the same timeframe as your event, you can pretty much forget any hope of attracting media coverage. That’s why it is so important to build in other ways to measure success. And Farnsel and his team did – both in terms of money raised and partners/residents engaged. In 2014, he is planning to incorporate “impact stories” from this year’s winners as well as a “tell-a-friend” campaign.)

When developing goals and budgets, make sure you know the real costs. Don’t low-ball! The roofs that NHS ended up replacing were significantly more expensive than anticipated. Farnsel’s team had estimated $8,000 to $9,000, and Born’s, for instance, cost $12,000.

Don’t under-estimate the effort and expertise needed. NTR hired a consultant to assist with messaging, outreach and event logistics, and Farnsel says it was one of his best decisions. “There are lots of day-to-day activities required to pull a campaign and event like this off, but at the same time, we still had our ‘real’ work to do. Consider hiring outside help,” he says.

Don’t lose sight of your end goal. “You have to give something to get something,” Farnsel cautions. “Make community impact and goodwill the principal goal – not general fundraising for your organization.” About 82 cents of every dollar raised by NTR for the “Buy a Shingle, Save a Home” campaign went to the roof-replacement program. Over time, he says, events like these will help “nourish” the organization’s coffers, but that’s not the focus of the events. “The goodwill pays off over time,” Farnsel promises.

Written by Pam Bailey, communications writer for NeighborWorks America. She would love for you to post your own stories and comments!

Tuesday, September 17, 2013

Early funding is worth its weight in gold

Eileen Fitzgerald,
CEO,
NeighborWorks America
(By Eileen Fitzgerald, CEO, NeighborWorks America) Developing affordable rental housing these days is a lot like putting together a puzzle – when the financing pieces are all in place, a thing of beauty results, but when there’s a piece missing for the puzzle (or in this case, a piece missing from the finance package for rental housing) the project just doesn't work. The result is fewer new affordable rental homes developed and more existing rental homes transitioning into market rate housing or being demolished. The bottom line: Families who need affordable rental housing may have a lot harder time securing the homes that they need.

Getting all of the financing pieces for affordable housing is difficult because nonprofit developers usually have to tap multiple sources of capital, either from one or more private sector banks, or from local or federal government sources such as community development block grants or state housing finance agency money. Essentially, nonprofits have to find all of the pieces to make an affordable rental housing project work.

However, often the private and public sources of financing needed to piece together an affordable rental deal want to see the developer have equity or “skin in the game” before they make the loan or approve the government financing.

That’s tough to do because even large nonprofit owners and developers of rental housing operate at very thin margins on existing projects that leave little room for the accumulation of excess capital to deploy to new projects.

This is why NeighborWorks America has been a long-time proponent of grant makers finding ways to make operating level or flexible funding available. After working with nonprofit rental housing developers for many years, NeighborWorks America knows that a nonprofit developer that has obtained general operating support and flexible money for qualified project on the books or in the planning stages has a leg up on securing other money to get the project done.

Rick Goodemann, chief executive officer of Southwest Minnesota Housing Partnership based in Slayton, Minn, and the owner and developer of nearly 900 affordable rental homes explained the value of early capital this way: “Patient, flexible capital, though limited, is available through such sources as foundations, financial institutions and housing finance agencies. Capital of that nature is extremely valuable and absolutely essential in supporting early feasibility analysis, due diligence activities, and securing real property. But it's most valuable when used to leverage debt, attract investors and provide a level of development and operational risk mitigation.”

Providing nonprofit developers with early funding that they could show other financial supporters is a core community development strategy at NeighborWorks America.  Nonprofits that could tap flexible capital from other sources such as national or community foundations, community development financial institutions (CDFIs) or state housing finance agencies enhances the ability of the organization to move quickly and build new or sustain existing affordable rental housing.

For example, in July of this year, the Massachusetts Housing Finance Agency provided just this kind of capital. Mark Dinaburg, the director of real estate development for nonprofit owner Codman Square Neighborhood Development Corp. said to a local newspaper, “With their help, we have finally been able to refinance and rehabilitate this 80-unit BHP-1 property. Previous to this, we had made multiple efforts to bring together an adequate financing package, while the properties slowly decayed, physically, socially, and financially. Indeed, the entire portfolio was threatened with foreclosure in the dark days of 2009. MassHousing’s willingness to step up with bridge financing, and to participate in a permanent financing package, was key to turning this around.”

Codman Square received more than $200,000 from NeighborWorks America to use as early, flexible capital for its rehab project that helped it secure state HFA funding.

Whether flexible funding helps to hire a development manager, an architect or exists as an early investment that attracts larger supporters, organizations that are able to secure this kind of financing have the best chance of getting a new affordable rental project done or to sustain an existing one.

NeighborWorks America encourages all of the potential sources of early, flexible and first-loss capital to be earlier participants in affordable housing deals. These sources of capital have to be the ones to take the first steps and jump-start affordable rental housing. Without their increased participation, too many deals that could be put together, won’t be completed, leaving some families by themselves to piece together their own affordable housing solutions.

Reposted from Rooflines, the Shelterforce blog.

Friday, September 23, 2011

NeighborWorks America Announces $3.65 Million in Expansion Grants for NeighborWorks Organizations

Today NeighborWorks America announced $3.65 million in grant funding to nonprofit organizations that will enable them to expand their service areas and reach deeper within underserved communities.

“The expansion grants announced today are a truly efficient use of funding for the nonprofit industry.  Instead of starting from scratch, the expansion grants enable NeighborWorks organizations to broaden their reach and bring their already established services and best practices into underserved communities,” said Eileen Fitzgerald, CEO of NeighborWorks America. 

The grants help organizations like Neighborhood Development Services in Ravenna, Ohio, to further expand their reach into 17 counties in southeast Ohio. Through their expansion, Neighborhood Development Services will develop affordable multifamily and owner-occupied homes for low- and moderate-income residents, work to develop the local economies in this region, and bring much-needed services to the residents, such as: financial education, homebuyer education, foreclosure intervention counseling, and other resident services.

The expansion grants will also assist Tierra del Sol, of Anthony, N.M., in its efforts to develop affordable rental housing for agricultural workers, low-income senior citizens, and persons with disabilities, rehabilitate owner-occupied homes, and provide financial and homebuyer education to residents in of five western Texas counties: El Paso, Hudspeth, Culberson, Jeff Davis and Presidio.

The $3.65 million in grant funding is being provided to 25 organizations nationwide. See who they are.