Georgia Community Action Association Strategic Planning Retreat and Board Meeting

1. Welcome Georgia Community Action Association Strategic Planning Retreat and Board Meeting September 22-24,2010 Peachtree City, Georgia Jimmie Samuel, President

2. Doing More With less money, staff & capacity Will Non-Profits CAAs Be Able to Meet Rising Demands? Source Data: Georgia Center for Non-Profits – www.gcn.org

3. Welcome GCAA STRATEGIC Planning and Board Meeting September 22-24,2010 Peachtree City, Georgia Source: Georgia Center for Non-Profits

4. 64 % of nonprofits surveyed indicate significant increases in demand 31% note dramatic (+30%) increases Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

5. Leadership and Infrastructure What are the primary reasons for diminished capacity to meet demands? • Funding Cuts • Increased Costs • Management Capacity • Lack of Space • Lack of Volunteers Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

6. Shift in Service Demands “We are seeing more middle class people and families” E.D. of a Savannah area Food Bank “Our former donors are now our clients – they come to us to keep the lights on and pay the rent.” E.D. of an emergency assistance program

7. Nonprofit Financial Health • 24% indicated that the organization had more than 6 months reserves; • 55.2% had less than 3 months and • 19% had no reserves at all. The number of agencies reporting no existing reserves increased by 5%; those with 3 months decreased by 3.5%, and those with 6 months reserves decreased by 4%. Not a small nonprofit issue GCN Survey - N=255 agencies • For those respondents with annual budgets exceeding $5M, • 62.5 % had less than 3 months of liquid reserves contrasted with • 56.2% for groups with less than $2M annual budgets.

8. Non-profit Financial Health 68.2% of Respondents had Government Contracts Increasing ISSUES: • Protracted Reimbursements • Cash Flow Problems & Temporary Insolvency • Zero notice contract cancellations • Renegotiated contract rates on-the-fly Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

9. Management Response Cutting Staff Cutting Operational Costs Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

10. Staffing Levels • 11.6 % will Shorten work weeks or lower hours • 20.5% will Hold vacant positions • 6.3% will Shift FTE’s to Part Time to save on benefits costs • 31% reported staff layoffs in Q1 compared to 27% reporting layoffs in Q4 2008 n=112 Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

11. Staffing Levels • 11.6 % will Shorten work weeks or lower hours • 20.5% will Hold vacant positions • 6.3% will Shift FTE’s to Part Time to save on benefits costs n=112 Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

12. Management Response Collaboration & Other Unnatural Acts 28.9% would consider a merger if they had resources to manage it. 50% would combine advocacy efforts or marketing efforts with other groups 44% would consider consolidating their back office or outsourcing it Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

13. Management Response Cutting Programs & Tightening Constraints • 44.3% will increase constraints to limit demand compared to 37.5% in Q4 • 44% will close some programs to shift support to core initiatives or to cut costs compared to 30.8% in Q4 Increased Fundraising & Marketing Activity

14. What else are nonprofits cutting? • Direct Program Expenses (food,performance productions, animal care) • Conferences & Travel • Supplies & Equipment • Print & Mail • 63% will keep compensation levels even • 67% will keep benefits intact • 58% will not or will only slightly reduce professional development Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

15. 2009 Optimism Improved over Q4 7% Fewer felt they would realize significant revenue declines and 6% more felt the impact would be slight 30% felt government contracts would remain stable 21% Expect to start a capital campaign (compared to 10% in Q4) 40% Plan to deliver events as usual 24% Expect to start a new event 63% Expect to hold salaries & benefits at current levels 22.1% Expect to expand programs 54% Expect to hold programs at current levels Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

16. Meeting the Demand Survey Question: If you are meeting the demand, what made the difference? • Careful Planning and Financial Controls • Increase or Improved Development Activity • Active Board Involvement Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

17. Form 6 Discussion Groups

18. Group Discussions/Issues • ARRA Implementation • Technology and Reporting Enhancements • Peer to Peer (Self Regulation) • Legislative Education • Resource Development • Marketing and Communication

19. FACILITATOR/GROUP instructions 1:30 pm – 3:00 pm FRAME THE ISSUES • Select a Recorder, Time Keeper and Reporter • Discuss the Topic • List the Issues/Problems

20. Group Instructions 3:30 pm - 4:45 pm ESTABLISH GOALS/OBJECTIVES • Describe the Desired Future – “What Do You Envision”? • List three (3) Possible Solutions for Each Issue/Problem Identified

21. ARRA Implementation Discussion Starters: • Grantee Performance (WAP/CSBG) • Program Evaluation • Risk Mitigation and Management • Others

22. Technology Enhancements Discussion Starters: • EZT Centralization • ARRA/CSBG Reporting • IT Personnel • Others

23. Peer to Peer…Self regulation Discussion Starters: • Application Process • Mentoring • Confidentiality • Others

24. Legislative Education Discussion Starters: • Legislative Agenda • Governmental Affairs • Interns • Others

25. Fundraising and RESOURCE development Discussion Starters: • Federal Grants Life Cycle • Membership Dues • Fund Raising Ideas • Others

26. MARKETING AND COMMUNICATION • Discussion Starters: • CAA Best Practices • Poverty Reduction Messaging • Communications Plans • Others