The 5 Sustainability Challenges

1. Week #2 Content Presentation:Budget and Fiscal Management: Determining Actual Costs of Programs The summer is connected to the school year insofar as what happens over the summer has a dramatic impact on school success…..

2. The 5 Sustainability Challenges This week we will focus on the 2nd challenge: 1. The challenge of being clear about precisely what organizations are trying to sustain. 2. Challenge of knowing the actual costs of program operation and expansion. 3. Challenge of focusing on long-term relationships. 4. Challenge of engaging a board 5. Challenge of becoming involved in public policy and advocacy

3. Challenge #2: Determining the actual costs of high-quality OST programs This second major challenge of sustainability relates to identifying what you need – funding, in-kind donations, volunteers – to sustain your work. Arriving at accurate cost estimates can be challenging, particularly in the field of OST programming. WEEK1 3

4. Challenge #2: Determining the actual costs of high-quality OST programs The article: The costs of out-of-school-time programs: A review of the available evidence by Lind, et al (2006) sheds light on 9 key findings that surround arriving at accurate cost estimates gleaned from a number of studies conducted since 1993. For our purposes, we will focus on the critical finding that, many studies focus solely on ongoing operating costs and do not account for startup, expansion or system building.

5. Challenge #2: Determining the actual costs of high-quality OST programs Startup costs are associated with planning and readying a program for operation. Sound management principles in every field recommend careful planning to ensure success. Its costs in OST field are not well understood. System-building costs relate to the underlying support services that make direct programming possible, including systems for: planning, evaluation, training and licensing providers, coordinating community resources, and providing technical assistance to programs. The systems OST programs rely on contribute to the quality of their programs.

6. Challenge #2: Determining the actual costs of high-quality OST programs The researchers contend “[a] better understanding of these cost elements is essential to help inform the development and expansion of out-of-school-time programs and systems.” A grasp of these costs enables OST leaders to balance decisions about direct programming and system-building to best fulfill the organization’s vision.

7. The Concept of Opportunity Cost As you assess gaps in funding, it’s important to consider the concept of opportunity cost. Simply put, the opportunity cost is the value of the benefits forgone of some other thing which might have been done with the funds instead. For example, someone having a video game can choose to watch a program or play the video game on the TV; they can't do both simultaneously. Whichever one they choose is a lost opportunity to experience the other. Scarce funds frequently cannot be used for multiple purposes and trade-offs are inevitable. The challenge is investing in the activities that will produce the highest returns in terms of your mission and intended results.

8. Considering cost elements, and opportunity costs are essential in helping to inform the development and expansion of OST programs. Use these ideas as you work on Part II of Assignment 1, and the related Calculating Cost Exercise.