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Richmond Region’s Social Economy Sector

Richmond Region’s Social Economy Sector. Richmond’s Future Board of Directors May 8, 2014 Prepared by Darcy S. Oman. “Nonprofits” Oddly, a business sector defined by “what it is not” in the tax code. Social Economy.

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Richmond Region’s Social Economy Sector

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  1. Richmond Region’s Social Economy Sector

    Richmond’s Future Board of Directors May 8, 2014 Prepared by Darcy S. Oman
  2. “Nonprofits” Oddly, a business sector defined by “what it is not” in the tax code
  3. Social Economy Mission focus for social benefit – to improve the quality of community life. Eligible purposes to be exempt from taxation defined by the tax code. Entities uses their resources for public benefit (no private inurement)
  4. In Search of Virginia’s Social Economy Nationally: 1,538,860 (all classifications) Virginia: 38,135 (all classifications) 26,505 501(c)3 public charities 1,824 501(c)3 private charities 9,806 all other classifications Richmond Region: 1420 reporting 501(c)3 charities (revenue ≥ $25K) IRS Exempt Organization Business Master File 2013
  5. IRS Public Support Test for Public Charities Generally, one-third of support comes from general public (in the form of gifts, grants and contributions) Other tests apply if support equals 10% of all support Deductions limited for private charities, which operate exclusively for charitable purposes
  6. Social Economy – Sources of Money Grants from individuals, institutions and government agencies Contracts for service Fees for service and product sales (earned income) Membership dues In-kind donations Shared Services/shared cost arrangements Revenue derived from intellectual property Investment income Equity investments Debt financing (loans or loan guarantees) Tax credits and exemptions “Social Economy Policy Forecast 2013,” Lucy Bernholz and Rob Reich
  7. Giving USA 2012 Highlights Giving USA 2013
  8. Generosity: Charitable Giving% of Income from Contributions* 23% U.S. 32% Virginia Religious, grantmaking & civic associations 63% Arts, entertainment, recreation 60% Professional & scientific services 52% Social assistance 51% Elementary/secondary education 21% 14% Higher education 10% Ambulatory health care Nursing & residential care 9% 1% Hospitals 0% 10% 20% 30% 40% 50% 60% 70% % of nonprofit revenue Nonprofit Economic Data Bulletin #41 * Includes private gifts and government grants
  9. Generosity:Virginia on Par with U.S. Average in Contributions per $1000 of Income* $35 $32.77 $29.37 $30 $24.76 $24.66 $25 $23.55 $20 Contributions per $1000 of AGI* $15 $10 $5 $0 U.S. Georgia Florida Virginia North Carolina Nonprofit Economic Data Bulletin #41 *AGI: Adjusted Gross Income
  10. Generosity: Foundations Virginia foundations: 1,824 organizations $6.9 billion in assets Foundation assets per $1000 GSP: Virginia: $16 U.S.: $37 Virginia vs. U.S. % difference: -57%
  11. A Major Economic Presence - Statewide $ 92 B in total assets $ 43.3 B in revenues $ 42.0 B in spending $11.4 B in wages andcompensation, generating $313 M state income tax $985 M in federal income taxes 6.6% total stateemployment 365,000 workers 253,113 paid workers 130,073 FTE volunteers Nonprofit Economic Data Bulletin #41
  12. A Major Economic Presence – Metro Richmond Region $9.1 B in totalassets $5.5 B in revenues $5.4 B in spending 5.3% of region’s total employment 43,478 workers 27,889 paid workers 15,478 FTE volunteers Nonprofit Economic Data Bulletin #41
  13. Organizations Expenditures Organizational Size 83% SMALL (Rev. < $1 million) 4% 11% MEDIUM (Rev. $1 m - $9.9m) 13% 3% LARGE (Rev. $10 m - $49.9m) 16% 1% VERY LARGE (Rev. > $50m) 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Nonprofit Economic Data Bulletin #41 % of Virginia Nonprofit Total
  14. Organizations Expenditures A Diverse Sector Religious, grant making & civic associations 47% 26% Arts, entertainment, recreation 16% 3% 14% Social assistance 7% 9% Other 6% 4% Ambulatory health 4% Professional & scientific services 3% 5% 2% Nursing & residential care 4% 2% Elementary/secondary education 4% 1% Hospitals 30% 1% 8% Higher education 0% 10% 20% 40% 30% 50% Nonprofit Economic Data Bulletin #41 % of State Nonprofit Total
  15. Who shares in the RVA’s Social Economy?
  16. Metro Richmond Region’s “powerhouses” 47% of region’s revenue ($2.58B) generated by eleven health related entities: St. Mary’s Hospital Virginia Premier Health Plan, Inc. Bon Secours Memorial Regional Medical Center MCV Associated Physicians Medical College of Virginia Foundation Bon Secours St. Francis Medical Center American Foundation for Donation & Transplantation Bon Secours-Richmond Community Hospital Sheltering Arms Hospital Patient Services, Inc. Caring Voice Coalition
  17. Metro Richmond Region “powerhouses”Top Ten Non-Health Related 21% of region’s revenue ($968 M) generated by top ten non-health related entities University of Richmond ChildFund International USA Virginia United Methodist Homes, Inc. Randolph Macon College Collegiate School Westminster-Canterbury Corporation The Community Foundation Virginia Museum of Fine Arts Foundation Goodwill Industries of Central Virginia, Inc. YMCA of Greater Richmond
  18. Region’s Social EconomyAcross the continuum CrossOver Ministries James River Assoc. Peter Paul Development Center Richmond Ballet St. Joe’s Villa VA Home for Boys & Girls VA Supportive Housing Blue Sky Fund Chesterfield CASA Elegba Folklore Society James House Latin Ballet of VA One Voice Chorus Southside Child Development Center VA Voice for the Print Handicapped Revenue $1M - $15 M Revenue < $1M
  19. To learn more: www.giverichmond.org – searchable data based and information resource on the region’s social economy, hosted by The Community Foundation. 600 organization profiles: governance, management, finances, programs, impact

  20. Growing focus on Collective Impact

  21. Richmond Region in Context Richmond Region is home to 1.2 million people (and is projected to grow moderately) Region is more diverse; Hispanic population doubled in 10 years By 2030, 1 in 5 will be 65 or older Growing income inequality across region Region’s poverty rate (10%) is growing and concentrated in the City (22%) % of children living in poverty in the region has increased, with 35% of children in the City living in poverty Socio-Demographic Trends of Richmond and its Peer Metropolitan Areas 9/2011
  22. Anchor: Homeward Systems level emphasis based on data, best practices Regional planning & coordination of homeless services on broad continuum Stewards of Region’s 10 Year Plan to Prevent & End Homelessness (Adopted 2008) Today, Network of 150+ partners, including service and housing providers, local and state government, law enforcement, veterans advocates, mental health advocates
  23. Definition of Homelessness: U.S. Department of Housing & Urban Development A person living in an emergency or transitional shelter or sleeping in a place not meant for human habitation. NOT: staying with family or friends NOT: living in motel NOT: living in crowded or substandard conditions
  24. Statewide Point-in-time counts: 2010 -2013
  25. Regional strategic priorities: People End veteran homelessness in our region by December 2015 Continue to invest in successful rapid re-housing programs, especially for families Reduce the overlap between homelessness & incarceration Ensure the stability of the safety net and a crisis response system Support coordinated outreach and permanent supportive housing
  26. Regional strategic priorities: System Enhance access to homeless services by coordinating assessments for housing interventions Develop performance measurement & program monitoring system Update our regional strategic plan to end homelessness Develop governance structure (Continuum of Care) Connect to mainstream resources
  27. ANCHOR: Middle School Renaissance 2020 Leadership commitments from corporate and philanthropic sector, school leadership, community-based education and youth development partners Systems level emphasis on data, best practices and quality to improve student outcomes.
  28. MSR 2020 Vision LAUNCHED IN FALL 2013 WHY: Out-of-school time represent “hours of opportunity”for quality student learning and enrichment to improve students outcomes. Hours of Opportunity (October 2010) All RPS middle school students have access to consistent, high quality after-school experiences designed to improve academic achievement, workforce preparedness, and social, emotional and physical health.
  29. OST System: A Working Definition A coordinated network of organizations and leaders working together to provide consistent, high-quality, accessible after-school programs to kids who most need them. Defined by centralized support for 4 key functions: Leadership: convene stakeholders, advocate, set priorities, plan, support knowledge-sharing Data/Evidence: map services and participation, analyze data for decision-making, measure and communicate progress Quality: set and maintain quality standards, provide professional development Participation:coordinate marketing, recruitment, transportation and/or fundraising to increase program attendance Sources: Metropolitan Educational Research Consortium, Wallace Foundation
  30. MSR 2020 Integrated System Schools & Community Centers MSR 2020 MSR 2020 Key features of MSR 2020: Coordinated program delivery Expanded reach and engagement Focus on quality improvement Shared goals, data and metrics Shared accountability Site coordination Students Funders, Community Leaders Program Providers MSR 2020
  31. Site Coordination Model Prof Develpmt Measures MSR2020: Site Support Quality Standards Programs (examples) School Day Kids Site Coordination Youth Coordination & Support
  32. Anchor: FeedMore Three essential components of the distributions channel: Food Bank, Community Kitchen, Meals on Wheels 207,000 food insecure people in our region 23 meals are estimated to be needed by each client (family member) per month – 276 meals per year
  33. FeedMore’s Service Area is extensive – consisting of urban and rural client communities Average Food Insecurity: USA: 16.4% Virginia: 12.7% Feedmore:13.6%
  34. Food Insecurity Rate by County/City Observations/Comments: Cities have significant volume issues due to density Rural areas have high percentages, yet low volumes There are distinctly different distribution models needed Average Food Insecurity: USA: 16.4% Virginia: 12.7% Feedmore:13.6%
  35. City of Richmond by Census Tract Observations/Comments: The needs are obvious and significant The bifurcation of incomes is evident Average Food Insecurity: USA: 16.4% Virginia: 12.7% Feedmore:13.6%
  36. Food Insecure Seniors in our Service Area Observations/Comments: The needs lie in the most populous geographies FeedMore’s service area is well-placed 10,000 people are turning 65 everyday until 2030 An estimated 4.8 million seniors nationwide are food insecure
  37. Capital Region Food Collaborative Mission: “Building a healthy community by working collaboratively to ensure consistent access to and consumption of nutritious food for all.” Areas of Focus Food System Localization Access and Equity Closing the Hunger Gap Potential Workstreams Hunger Gap Affordability & Access Education & Health Urban Agriculture Advocacy Food Hub/Produce Aggregation Workforce Development Removal of Regulatory Barriers AARP (Age; Health) Community Guiding Tenets When in doubt, be inclusive “Membership” driven by interest and effort The whole is greater than the sum of the parts Amazing what can happen, when you don’t worry about who’s getting credit Anything worth doing is worth measuring Efforts will be managed with rigor, process, and accountability Public accountability will drive action and results “Super Majority” will determine direction and decisions Leadership will be unbiased, facilitative, and service oriented
  38. Conclusions and Implications Our region’s Social Economyis a powerful engine for community good and quality of life Recommendations to achieve greater impact: Consistently invite the sector’s perspective, experience and knowledge to decision-making tables Improve the sector’s visibility in the media, in policy councils, within the business community Boost giving, volunteerism and growth of permanent philanthropic capital in the region Invest in building nonprofit capacity to strengthen the sector Strengthen the sector’s partnership with government
  39. Appendix – Report Sources www.giverichmond.org (local data) http://nccsweb.urban.org www.irs.gov/Charities-&-Non-Profits www.wallacefoundation.org Giving USA™ Highlights 2013 Hours of Opportunity by Susan J. Bodilly, Jennifer Sloan McCombs et al, published by the RAND Corporation (October 2010) IRS Exempt Organization Business Master File 2013 (entity level data on assets and revenues) Nonprofit Economic Data Bulliten #41 Virginia’s Nonprofit Sector Shaping the Economic, Cultural and Social Landscape November 2012 A joint report of the Johns Hopkins Center for Civil Society Studies, The Community Foundation Serving Richmond and Central Virginia and Virginia Commonwealth University
  40. Appendix – Report Sources(continued) Nonprofit Finance Fund 2014 State of the Sector “Social Economy Policy Forecast 2013,” Lucy Bernholz and Rob Reich Socio-Demographic Trends of Richmond and Its Peer Metropolitan Areas prepared for Richmond’ Future September 2011 Additional contributions from FEEDMORE www.feedmore.org HOMEWARD www.homewardva.org MIDDLE SCHOOL RENAISSANCE 2020 http://www.tcfrichmond.org/learn/community-partnerships/middle-school-renaissance-2020/
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