3 hours/week Invest your Time Spend time finding ways to reduce
costs, secure funding
Slide 4
Rule # UNO: Provide value to your funders
Slide 5
1. Know how much it costs you to provide your service 2. Save
money where you can 3. Maximize federal dollars 4. Raise funds 5.
Create long-term community support 5 Funding Strategies
Slide 6
1. Know how much it costs to provide your service
Slide 7
What is your annual cost of service? Passenger trip cost =
annual cost of service annual number of trips (Note: define
passenger trip as any completed, revenue- generating passenger
trip)
Slide 8
Transportation by the Numbers National Center for Senior
Transportation tool
http://seniortransportation.easterseals.com/site/PageServer?pagename=NCST2_Transportation_by_the_Numbers
Slide 9
2. Save money where you can
Slide 10
The Insurance Store Energy maintenance program Bulk fueling
program Reduced costs background checks Motor vehicle records
Employment screening products Reduced loan costs Reduced EXPO fees
CTAA Member Benefits www.ctaa.org, under tab Financing
Slide 11
Microloans for transit software and hardware Working capital
loans Insurance and self-insurance financing Gap financing
Community Development Transportation Lending Services, Inc.
(sponsored by CTAA) 3-4% financing
Slide 12
Turnover costs 1.5-2 times a persons salary Employees are
partners in creating your image, establishing your agency within
the community Tap into their knowledge of their side of the
business Incentivize employees for innovative ways to save money
Your Employees are a Valuable Resource: Cherish them!
Slide 13
Green technologies (hybrid vehiclesCTAA benefit) Bulk fuel
purchasing (CTAA benefit) National resource management (re-use
waste water from washing vehicles, reduce idling) Reduce usage of
natural resources
Driver training Dispatcher/scheduler training Staff
hiring/screening Drug/alcohol testing Shared Personnel Costs
Slide 16
Fares are not required Fares cover only a small portion of
costs (farebox recovery ratio) BUT Do add a perception of value to
the service Cost of Fare Collection
Slide 17
3. Maximize federal dollars
Slide 18
Write effective grants Maximize opportunity for local and
in-kind match Leverage non-DOT federal match money
Slide 19
Private donations can serve as local match Funds, real
property, materials and services eligible Document value of in-kind
contributions In-Kind Match
Slide 20
4. Raise Funds (or) Time to Get Creative
Slide 21
Any surface can be converted into revenue Trade advertising
space for services (e.g, radio spots, reduced vehicle maintenance
costs) Sponsorships (e.g., golf tournaments) Infrastructure (agency
built bus shelter in exchange for 1-2 years of advertising) Sell
the rights to put your cool logo on Tshirts, etc. Advertising One
source: Lessons Learned in Transit Efficiencies, Revenue
Generation, and Cost Reduction
http://ntl.bts.gov/lib/4000/4600/4633/lessons.pdf
Slide 22
Project must be in foundations primary area of interest
Foundations do not give away money -- they invest in a project with
a specific goal and want to see results Usually tied to a specific
populationnot for general services Performance measures: be able to
report benefits to donors/community Successful grant leads to more
grant money Seek Foundation Grants
Slide 23
Percentage Foundation funding, by category, 2011 Source:
Foundation Center
Slide 24
Percentage Foundation Human Service Grants, by category
Slide 25
Finding a Foundation Foundation Center
(www.foundationcenter.org) Council on Foundations
(www.cof.org/Locator)
Slide 26
Have a clear mission and objectives tied to community welfare
Solicit donations from individuals and other foundations Report
benefits to donors/community Set up Your Own Foundation
Slide 27
Contract Revenue 2. Help the prospective purchaser know what
its costing them now to provide transportation 4. Establish a
contract, performance measures, review process 1. Know what it will
cost your agency to provide services 3. Standards Ensure them you
will treat their customers right
Slide 28
Brokerages motivated by completing the highest number of trips
for least amount of money Enter negotiations knowing your bottom
line, be willing to negotiate on price and volume of trips Know the
players: brokerage managers, health care orgs., legislators that
have a say in Medicaid CTAAs Competitive Edge training: brush up on
your negotiating skills Working with Medicaid Brokerages
Slide 29
Other Contract Revenue 2. Provide maintenance on other agency
or nonprofit vehicles 1. Lease extra space in your facility 3.
Create contracts for your employees special expertise (e.g., safety
training, HAZMAT handling, security)
Slide 30
Delivery of auto parts and supplies to garages and dealerships
on return deadhead trips Transferring books for libraries Collect
recycling on the bus Rocking chair marathons Sponsored golf
tournaments, other events On-line auction Non-Transportation
Revenue: for $ or Good Will
Slide 31
Top ten crowdsourced funding platforms
http://dowser.org/top-ten-crowdsourced-funding-platforms/
Crowdsourcing.org
http://www.crowdsourcing.org/community/crowdfunding/7 Crowd-funding
raised $1.2 billion globally in 2011 Crowd-Funding
Slide 32
$320 million pledged by 2.2 million people on 18,000 projects
2011: Kickstarter hit 1 million backers
Slide 33
Services to match their priorities Recap: What Funders Want
Defined performance goals How it will benefit them To know that you
can deliver
Slide 34
5. Create long-term community support... by far, the best
long-term funding strategy
Slide 35
Thank you! Amy Conrick Community Transportation Association of
America [email protected] 202-415-9692