Tools and Strategies for Fiscal Sustainability

Tools and Strategies for FiscalSustainabilityi3 Learning Community MeetingOctober 2, 2013

The Finance Project• A specialized non-profit research,consulting, technical assistanceand training firm• TFP helps leaders make smartinvestment decisions and developsound financing strategies

Eight ElementsVision andResultsSustainability Planning ProcessDeveloping a Vision andResults OrientationStrategicFinancingOrientationCreating a StrategicFinancing PlanAdaptability to changingconditionsBroad base of community supportKey championsStrong internal systemsDeveloping Strategies forBuilding OrganizationalCapacity and CommunitySupportSustainabilityPlanDeveloping and Writing aPlan

i3 ElementsQuality ofProject Design-Logic ModelSustainability Planning ProcessDeveloping a Vision andResults OrientationSecuringMatchCreating a StrategicFinancing PlanQuality ofManagementPlanDeveloping Strategies forBuilding OrganizationalCapacity and CommunitySupportProjectEvaluationDeveloping and Writing aPlan

Elements of a Financing Plan• Clarify “Financing for What?”• Estimate Fiscal Needs• Map Current Funding• Assess Gaps• Identify Funding Sources andFinancing Strategies

Clarify “Financing for What?”• Scope of activities• Scale of activities• Assumptions regarding scaling orsustaining the innovation

(1)Strategies andactivities that youwant to sustain(2)What scale are we aiming to sustain?(for example: number of students served, level ofeffort, target population/expand, continue existinglevel, contract)Year 1 Year 2 Year 3(3)Over what time do wewant to sustain?Student InstructionTeacher ProfessionalDevelopmentTechnologySupportive ServicesData and Evaluation60 Students 100 Students 140 Students Continue expansion forfive years, then stabilize5 staff perschool3 staff perschool4 staff perschoolStaff development for allteachers in departmentyear one, retraining andtraining new hires infuture years.18 computers 24 computers 30 computers Grow based on enrollmentsizeCreateparentalengagementprogramBuild new datasystemContinueparentalengagementContinuedevelopmentof datacollection andanalysis toolsContinueparentalengagement;add healthservicesContinueOngoingOngoing

Estimate Fiscal Needs• Program costs• Infrastructure or intermediarycosts• Growth trajectory• By strategy/activity

Year 1 Year 2 Year 3 AssumptionsExample: Computers $15,000 $20,000 $25,000One per staff member/ Onefor each 15 students. Willadd 3 teachers and 40students per year.Cost EstimatesStaff SalariesCurriculum DevelopmentMaterials and Supplies CostsConsultantsEquipmentData Collection and AnalysisPeer Learning andContinuous ImprovementEvaluationMeetingsOther:

Map Current Spending• What are the current resources?– Cash and in-kind resources• How are the funds used?• Are there restrictions?• What is the available timeframe?• Will matching funds be available afterthe end of the i3 grant period?• How stable and reliable are thesources?

Strategies/ActivitiesAvailable ResourcesSource of Funding/In-KindContributionsAmountRestrictionson Uses ofFundsExpectedTimeframeFunding isAvailableTeacherProfessionalDevelopmentI3 grant $50,000 Availablethrough 2015Monthly invoicesContinuousQualityImprovementXYZ Foundation $30,000Computerhardware andsoftware fordistancelearningMatching fundsthrough year two.

Assess Spending Gaps• Gap between current spending andprojected fiscal needs:– Strategy or activity– Fiscal year

Strategies/ActivitiesTotalCostsYear 1AvailableResourcesGapsTotalCostsYear 2AvailableResourcesGapsTotalCostsYear 3AvailableResourcesGapsDataCollectionandEvaluation$260,000 $260,000 $0 $260,000 $260,000 $0 $260,000 $260,000 $0TeacherProfessionalDevelopment$40,000 $40,000 $0 $40,000 $40,000 $0 $40,000 $40,000 $0

Revenue Planning Tips• Identify short- and long-termfunding needs• Gather information from multiplesources• Use your network• Develop an iterative process• Create and monitor a ResourceDevelopment Pipeline

Financing Strategies1. Making Better Use of ExistingResources2. Maximizing Public Revenue3. Building Partnerships4. Creating More Flexibility inExisting Funding Streams5. Creating New Revenue

ProgramNameType ofProgramSource ofFundingAverageGrant SizeEligibilityRequirementsFundingHistoryStrivingReadersDiscretionaryGrantUS DOE $25,000,000 LEAs and nonprofitorganizationsreceivesubgrantsthrough SEAsFY09: $34MFY10: $10MDoes ithelpdiversifyfundingmix?Ability toleverageotherfunds?Barriersto use?Stability?Alignedwithprogram’scoremission?Priority toaccess?No No Priority togiven toservinggreatestnumber ofdisadvantaged childrenFunds havebeen stableand levelingoff.YesYes

Resources• TFP’s Federal Funding Database:• Learning to Read: A Guide to FederalFunding for Grade-Level ReadingProficiency• Sustaining Community Revitalization: ATool for Preparing Budgets for PromiseNeighborhoods Initiatives• Thinking Broadly: Financing Strategiesfor Youth Programs

Questions?Shawn Stelow Griffinsstelow@financeproject.orgNalini Ravindranathnravindranath@financeproject.orgwww.financeproject.org© 2013 The Finance Project.