May Funder Call May 28 2009

Fund for Our Economic FutureFund for Our Economic Future

Phase 3 Strategy Presentation

Steering Committee

May 28, 2009

2

Strategy Process: Time line

45 FunderInterviews

Large group meetingOver 40 Funders

Strategy Direction(Draft) Small

GroupRefine/Partner Outreach

Small Group Review

AdoptStrategy

StrategyPublic

Oct2008

Nov2008

Feb2009

Mar2009

AprilMay2009

June2009

Oct2009

PHASE 3 PRESENTATION• Fund Overview

– Outcomes– Lessons Learned

• Phase 3 – What is the same?– What is different?– Evaluating Outcomes

• The Work Ahead– Goals and strategies– Objectives– Fund Structure– Financial Planning and Principles

3

Outcomes of Fund’s WorkTangible, compounding economic impact

$1.1 BILLION

$>100 MILLION

Outcomes of Fund’s WorkCultural Shift

Growing shared support of regional economic competitiveness agenda

>80 partners in Advance NEO

98% of residents identify with NE Ohio

Increased optimism (26% 2006 to 41% in 2008)

Lessons Learned• System change takes time, sustained

effort, and needs champions

6

Lessons Learned• Direct support of initiatives must be paired with work on

the overall regional system of collaboration, both geographic and programmatic

7

+

8

Phase 3 Work: What stays the same?

Phase 3 Work: What stays the same?

9

Diversity and Inclusion Tools to be used Collaborative Model

Phase 3 Work: What changes?

10

FFEF

Action Area Team Champion

Part of Fund resources will go towards forming regional leadership and action area champions


• Communications and engagement focused on community influencers

11


12

Respond to economic climate

Intensified focus on priority industry clusters

Assess grantee performance + greater financial sustainability

Evaluating Phase 3 Outcomes

How is the REGION doing against the goals of Advance Northeast Ohio? At the highest level,

2020 goals- Per capita income > national average- Employment growth > national average- Concentrated poverty < 20% in urban areas

By 2013 - Improvement in each of these categories with region out of 4th quartile in at least one of the categories and reduction in urban poverty rate versus 2009

How is the Fund doing?

• Level of community awareness of and leadership around the economic competitiveness agenda priorities

• Grantee performance related to specific goals tied to investment, payroll and job creation

13

Goal 1:

Acceleratejob & incomegrowth

Goal 2:

Reduce impediments to long-term growth

Goal 3:

Sustain economic competitiveness work over long-term

Strategy 1:

Strengthen regional business growth and attraction

Strategy 2:

Enhance regional talent development

Strategy 3:

Spur regional planning and gov’t efficiency

Strategy 4:

Shape and sustain regional leadership for economic competive-ness priorities

Strategy 5:

Educate, engage, empower “influencers” to participate and support work

Specific Phase 3 Objectives

• Economic PerformanceAttract $750 million in venture capitalAttract $300 million in research/

commercialization capital in target industriesIncrease payroll by $125 million: $30 million at

minority firmsGenerate $100 million in growth and

expansion capital (facility expansions and enhancements

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• Sustaining Growth Increase by 70,000 the number of adults

pursuing education certificates/degreesImprove employer understanding of and

satisfaction with the talent system over 2009 base

Implement plan to share new revenue growth in the majority of Northeast Ohio

Implement 10 new government collaborations generating $10 million in annual efficiencies

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• Cultural Change Establish regional champions with the

capacity to lead and organize the region’s response for economic competitiveness within the four areas of Advance Northeast Ohio

Work with partners in business, government, civic and other sectors to build support for these champions to sustain the work of regional economic competitiveness

17

Phase 3 Structure: What Stays the Same

• Three-year member/owner model• Funders Committee as decision making unit with

continued Steering Committee coordination• Three-year phase with minimum of $100,000 to be a

voting member (one member/one vote)• Bulk of the work done through action teams organized

around Advance Northeast Ohio• Possible new initiatives brought to the Fund by its

members through the action teams – no unsolicited proposals

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Phase 3 Structure: Possible Modifications

Legal Structure• Fund will incorporate and apply to become a

separate 501(c)(3). Resolves administrative strains the current model

places on its long-time administrative “parent” in The Cleveland Foundation

Deepens the region’s sense that there is indeed a broad-based collaborative that is focused solely on the advancement of regional competitiveness

19


Grantee Relations• All Fund grantees will be allowed to approach Funders individually.

20


Designation of Funds• The Fund continue to encourage undesignated

funds because the vast majority of funders have asserted that this practice: Will enhance the value of the collaborative decision-

making Will greatly simplify the Fund’s administrative functions. In the spirit of collaboration, the Funders Committee may

make exceptions to this rule on a case by case basis taking into account individual facts and circumstances.

21

Financial Planning Principles• Phase 3 operations/grant making planning

to be based on $22 million in contributions– Continue to allocate bulk of grant dollars to industry-

building grantees

– Maintain significant allocation to convening, communications and research efforts

– Success is heavily dependent on active participation of Fund members; however availability of loaned staff has decreased significantly and that is reflected in paid staff levels for both Fund operations and ANEO support

– Plan for slightly higher costs: financial admin, space, President’s salary (5.5% of overall budget)

22

Grant Dollar Allocation

Supporting

ANEO

3%Government

7%

Talent6%

Business Growth and Attraction

84%

Supporting ANEO

5%To be

determined5%

Government, 6%

Talent13%


71%

Phase 2 YTD Grantmaking

Budget: $24,820,000

Phase 3 Proposed Grantmaking Budget: $20,700,000

Staff Time Allocation

Supporting ANEO44%

Government14%

Talent16%


26%

Supporting ANEO27%

Government18%

Talent19%


36%

Phase 2 Phase 3

Business Growth and Attraction &

Talent 82%

Resource Allocation – Phase 3 100% = $22.1 million

Entrepreneurship & Innovation

44%

BARE25%

Talent 13%

Government Collaboration

7%

Supporting ANEO7%

To Be Developed4%

"Indirect" WorkBy CoreGrantees

Staff TimeAllocation

Direct Grants

$2,850

$372

$2,000

$165

Phase 2 Phase 3

% of Total Resources

8% 13%

Inclusion Resources - Phase 2 to Phase 3

100% = $1.5mm $5.5mm $9.7mm $2.9mm $1.6mm $1.05mm

Resource Allocation Within Action Areas – Phase 3

26%

61%

13%

SupportANEO

95%

5%

97%

3%

70%

21%

9%

16%

19%

65%

4%0

$1 mm

$2 mm

$3 mm

$4 mm

BARE ENTP Talent GOVT TBD

TBD

Research

Communication& Engagement

New Grantees

Action TeamSupport

ExistingGrantees

$5 mm

$6 mm

$7 mm

$8 mm

$9 mm

$10 mm

Economy & Finance

May Funder Call May 28 2009