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S- Sustainability

S- Sustainability. Resources: Budgeting and Cost. Agenda. Discuss readings- Brooks Chapters 6, 7 Brainstorm sources of cost and income Hands On Activity – Work as a team to Fill in Parameters for First Place Fund for Youth (p.96).

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S- Sustainability

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  1. S- Sustainability Resources: Budgeting and Cost

  2. Agenda • Discuss readings- Brooks Chapters 6, 7 • Brainstorm sources of cost and income • Hands On Activity – Work as a team to Fill in Parameters for First Place Fund for Youth (p.96)

  3. Once you have established Community Need developed a Logic Model and formed and Assessment Plan, the next question is, how you will pay for or SUSTAIN your program. Needs Assessment Cost Logic Model

  4. Mobilizing Resources • Define the Capabilities Needed • Devise a Human Resource Outline to meet each capability need • Develop a resource plan • Put on the Numbers Brooks Ch 6 p 86

  5. 1. Define the Capabilities Needed Start by reflecting on the activities and who will do them.

  6. Figure 6.1 The Capabilities – Resource Model

  7. Figure 6.1 The Capabilities – Resource Model

  8. 2. Devise a Human Resource Outline to meet each capability need

  9. 3. Develop a resource plan

  10. Figure 6.2 Sources of income for American nonprofits* * Salamon 2002

  11. Figure 6.3 Types of earned income for social enterprises

  12. Table 6.3 The Product Profile Map Source: James & Young (2006)

  13. Income sources • Three main sources of nonprofit revenue • Fee income, which is about half of the total • Donations, which are about one fifth • Government, which provides the balance • Different nonprofits rely on different types • Social welfare: 52% government, <1/3 earned • Health: less than 6% is donated • But arts groups are half funded by private giving • Religious institutions are not government funded • Figure 6.2 shows income sources for all nonprofits • Figure 6.3 shows social enterprise earned income types

  14. Table 6.4 Revenues from membership dues for various nonprofit enterprises, 2003 Source: Steinberg (2006)

  15. Table 7.1 Source of donations to American nonprofits, 2005

  16. Figure 7.1 Average annual contributions to various types of causes and charities among those making positive contributions, 2003

  17. Raising funding is connected to being able to demonstrate effectiveness

  18. Utilizing results includes for publicity and fund raising for non profits: http://www.9wsyr.com/news/local/story/More-parents-reading-to-their-kids/MCwPYPKY20SPNrUHf1p0Pw.cspx http://www.socialresearchmethods.net/kb/pecycle.php

  19. 4. Put on the Numbers

  20. Activity: p 96 First Place Fund for Youth Use the CLASS project planning tool to walk through the above 4 steps as a group for “First Place Fund for Youth”

  21. Novel Approaches to Raise Money

  22. Dan Pallota – 1st 10 minutes To accompany Brooks Ch 8 Entrepreneurial Fundraising and Marketing

  23. For Discussion: Dan Pallotta: The way we think about charity is dead wrong http://www.youtube.com/watch?v=bfAzi6D5FpM

  24. Inspirational Stories from Students For Final Project

  25. Soc Club Events on Video http://www.localsyr.com/bridge-street/video/d/video/jennifer-nadler-lemoyne-speaker-bridge-street-3271/5011371

  26. Local grad to pedal cross country for area's homeless • http://www.localsyr.com/mostpopular/story/Local-grad-to-pedal-cross-country-for-areas/d/story/UpgtCu_Jf0yzmb3zHuVUKQ

  27. Father and daughter continue mission for special needs playground near Phoenix • http://www.youtube.com/watch?v=w6lx18ubmyo

  28. First list all of your assumptions in a sheet/tab called parameters

  29. Crucial for Final Project • This exercise will help you complete the S portion of your final project • For your final project DO NOT just tweak your Imagination Library budget- it will likely lead to many mistakes. • Instead start from scratch and build a new smaller budget for your program just like we will practice today – Use the last 2 tabs of your Project Planning Tool in Excel

  30. Daycare Budget than explore the full flexible spreadsheet • - Use digital handout parameter sheet, run scenarios as a class

  31. The Scenario: Use this to complete the Parameters

  32. Variable Costs Semi-Variable Step Costs Fixed Costs Cost Concepts Cost Output • Key question: how does each change as the cost unit (or unit of activity your agency performs – visits miles, packages, clients) changes

  33. Fixed Costs Cost Concepts Cost • Fixed costs do not change as units of activity (kids) change. Output

  34. A-1, C25 is _____ Administrator salary/month Sheet A-1,cell C 27 is the proportion of the monthly salary we are responsible for (remember we are only one of the 4 childcare sites see assumption 5 in parameters)

  35. Cost DefinitionsFixed vs. Variable • Fixed Costs (do not vary with output): • Top administrators and resources they use. • Financial, legal and other services provided organization. • Variable costs (vary directly with output): • Consumables: materials , supplies, gas used in transportation • Printing/postage/communication • Part time personnel providing service directly • Legal, financial and other services tied directly to output • Equipment (and O&M) used directly in service provision • Semi-variable costs (fixed cost + variable cost per unit): • Phones, utility rates. • Step costs (vary in lump with output): • FT personnel • Facilities/utilities/equipment (and O&M) tied to personnel Source: Bretschneider

  36. Variable Costs Cost Concepts Cost • variable costs do change as units of activity (kids) change. Output • Variable costs are to fixed costs as electric bills are to monthly rent charges. Variable Revenues

  37. Sheet A-1 is a quick clue that it is a parameter. then look for cell C 20 (in sheet a-1) (it is “Food costs/day/child”) B6 is the number of children in the daycare (see previous slide) A-1, another parameter, C20 is “Work days/month”

  38. Semi-variable Cost Concepts Cost Secretary paid by hours of work required, but may require standard benefits package such as health benefits. Output • Semi-variable costs do change as units of activity (kids) change but they start off with a fixed cost.

  39. http://www.labor.ny.gov/stats/lswage2.asp http://www.labor.state.ny.us/workforceindustrydata/descriptor.asp http://www.labor.state.ny.us/workforceindustrydata/descriptor.asp

  40. Not needed herebut would be like…=flat cost + (# clients*($5.00))

  41. Step Costs Cost Concepts Cost Output • change only when units of activity (kids) reach steps (i.e. by law need one staff member for every 5 kids)

  42. B7 is the number of employees Sheet A-1,cell C 20 is “Work days/month” A-1, C 21 is Hours/day/employee (i.e. 8 hours a day) A-1, C 24 is Hourly wage--daycare worker (i.e. $6.50/hr)

  43. Share literacy letter as an exemplary solicitation letter – example of where a liberal arts edu can help!

  44. Estimating Personnel Costs • How do I assess the value of volunteers? • http://www.independentsector.org/programs/research/volunteer_time.html •  Summary: The estimated dollar value of volunteer time is $19.51 per hour for 2007.

  45. Variable Costs Cost Concepts Cost Output

  46. Semi-variable Cost Concepts Cost Output Phone and utilities included in Rental

  47. Step Costs Cost Concepts Cost Output

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