Post on 25-Feb-2016
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Richmond Region’s Social Economy Sector
Richmond’s Future Board of DirectorsMay 8, 2014
Prepared by Darcy S. Oman
“Nonprofits”
Oddly, a business sector defined by “what it is not” in the tax code
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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)
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SOCIAL ECONOMY
IRS Exempt Organization Business Master File 2013
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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)
In Search of Virginia’s Social Economy
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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
IRS Public Support Test for Public Charities
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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 – Sources of Money
“Social Economy Policy Forecast 2013,” Lucy Bernholz and Rob
Reich
Giving USA 2013 8
Total 2012 Contributions & Grants$316.23 billion
Individuals 72%Bequests 7%Foundations 15%Corporations 6%
Giving USA 2012 Highlights
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Generosity: Charitable Giving% of Income from Contributions*
23%
10%
Arts, entertainment,recreation
20%
Religious, grantmaking & civic associations
40%30%
Social assistance
Elementary/secondaryeducation
Ambulatory health care
Nursing & residentialcare
Professional & scientific services
Hospitals
Higher education
32%
63%
60%
14%
% of nonprofit revenue
0%
U.S.Virginia
50% 60% 70%
52%
51%
21%
10%
9%
1%
* Includes private gifts and government grants Nonprofit Economic Data Bulletin #41
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Generosity:Virginia on Par with U.S. Average in Contributions per
$1000 of Income*
$30
$20
$10
$0
$24.76
Con
tribu
tions
per
$10
00 o
f AG
I*
Virginia U.S.Georgia
North Carolina
Florida
$24.66
$32.77$29.37
$23.55
*AGI: Adjusted Gross Income
$35
$5
$15
$25
Nonprofit Economic Data Bulletin #41
Generosity: Foundations
Virginia foundations: 1,824 organizations
$6.9 billion in assets
Foundation assets per $1000 GSP:
Virginia: $16
U.S.: $37
Virginia vs. U.S. % difference: -57%
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Nonprofit Economic Data Bulletin #41
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$ 92 B in total assets
$ 43.3 B in revenues $ 42.0 B in spending
$11.4 B in wages and compensation, generating
$313 M state income tax $985 M in federal income
taxes
6.6% total state employment
365,000 workers
253,113 paid workers 130,073 FTE
volunteers
A Major Economic Presence - Statewide
Nonprofit Economic Data Bulletin #41
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$9.1 B in total assets
$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
A Major Economic Presence – Metro Richmond Region
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Organizational Size
10% 20% 50%40%30%
OrganizationsExpenditures
% of Virginia Nonprofit Total
0%
SMALL(Rev. < $1 million)
60% 70% 90%80%
MEDIUM(Rev. $1 m - $9.9m)
LARGE(Rev. $10 m - $49.9m)
VERY LARGE(Rev. > $50m)
83%4%
11%13%
16%3%
1%68%
Nonprofit Economic Data Bulletin #41
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A Diverse Sector47%
10%
Arts, entertainment,recreation
20%
Religious, grant making & civic associations
50%40%30%
Elementary/secondary education
Social assistance
Professional & scientific services
Nursing & residential care
Ambulatory health
Hospitals
Higher education
26%
16%3%
6%4%4%
5%
7%
2%4%
2%4%
1%30%
1%8%
OrganizationsExpenditures
% of State Nonprofit Total0%
Other 9%
14%
3%
Nonprofit Economic Data Bulletin #41
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Who shares in the RVA’s Social Economy?
2012 Revenue - All Sources $5.5 B
11 entities10 entitiesAll others
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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 CenterMCV Associated PhysiciansMedical College of Virginia FoundationBon Secours St. Francis Medical CenterAmerican Foundation for Donation & TransplantationBon Secours-Richmond Community HospitalSheltering Arms HospitalPatient Services, Inc.Caring Voice Coalition
Metro Richmond Region’s “powerhouses”
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21% of region’s revenue ($968 M) generated by top ten non-health related entitiesUniversity of RichmondChildFund International USAVirginia United Methodist Homes, Inc.Randolph Macon CollegeCollegiate SchoolWestminster-Canterbury CorporationThe Community Foundation Virginia Museum of Fine Arts FoundationGoodwill Industries of Central Virginia, Inc.YMCA of Greater Richmond
Metro Richmond Region “powerhouses”Top Ten Non-Health Related
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Region’s Social EconomyAcross the continuum
Revenue $1M - $15 M Revenue < $1M
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
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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
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Growing focus on Collective Impact
Socio-Demographic Trends of Richmond and its Peer Metropolitan Areas 9/2011
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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
Richmond Region in Context
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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
Anchor: Homeward
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
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Statewide Point-in-time counts: 2010 -2013
2010 2011 2012 20136500
7000
7500
8000
8500
9000
95009080
8816
8424
7625
16% Decrease in Total Homeless Individ-uals
2.9%
9.5%
4.4%
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2007 2008 2009 2010 2011 2012 2013 2014900
950
1000
1050
1100
1150
1200
Richmond regional winter count of people experiencing home-lessness (shelters & outside)
2007 - 2014
2014 More than
20% de-crease since peak
Significant stimulus funding
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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
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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
ANCHOR: Middle School Renaissance 2020
Systems level emphasis on data, best practices and quality to improve student outcomes.
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Leadership commitments from corporate and philanthropic sector, school leadership, community-based education and youth development partners
Hours of Opportunity (October 2010)
MSR 2020 VisionAll 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.
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LAUNCHED IN FALL 2013WHY:Out-of-school time represent “hours of opportunity” for quality student learning and enrichment to improve students outcomes.
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OST System: A Working DefinitionA 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:
Sources: Metropolitan Educational Research Consortium, Wallace Foundation
– 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
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MSR 2020 Integrated System
MSR 2020
MSR
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MSR
2020
Site coordinationStudents
Funders, Community
Leaders
Schools & Community
Centers
Program Providers
Key features of MSR 2020:• Coordinated program delivery• Expanded reach and engagement• Focus on quality improvement• Shared goals, data and metrics• Shared accountability
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Site Coordination Model
Site Coordination
KidsSchool Day
Youth Coordination
& Support
Programs (examples)
MSR2020: Site Support
Prof Develpmt
Quality Standard
s
Measures
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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
Anchor: FeedMore
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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%
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Food Insecurity Rate by County/CityObservations/
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%
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City of Richmond by Census TractObservations/
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%
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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
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Capital Region Food Collaborative
• 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
Guiding Tenets
Mission:“Building a healthy community by working
collaboratively to ensure consistent access to and consumption of nutritious food for all.”
Food System Localization
Areas of FocusAccess and Equity Closing the Hunger Gap
• Hunger Gap
• Affordability & Access
• Education & Health
• Urban Agriculture
• Advocacy
• Food Hub/Produce Aggregation
• Workforce Development
• Removal of Regulatory Barriers
• AARP (Age; Health)
• Community
Potential Workstreams
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Our region’s Social Economy is a powerful engine for community good and quality of life
Recommendations to achieve greater impact:(1) Consistently invite the sector’s perspective,
experience and knowledge to decision-making tables(2) Improve the sector’s visibility in the media, in policy
councils, within the business community(3) Boost giving, volunteerism and growth of permanent
philanthropic capital in the region(4) Invest in building nonprofit capacity to strengthen the
sector(5) Strengthen the sector’s partnership with government
Conclusions and Implications
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www.giverichmond.org (local data)http://nccsweb.urban.org www.irs.gov/Charities-&-Non-Profitswww.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
Appendix – Report Sources
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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 2020http://www.tcfrichmond.org/learn/community-partnerships/middle-school-renaissance-2020/
Appendix – Report Sources(continued)