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Compassion in Action ReportsPromoting Economic Development and Community Investment Through Public/Private PartnershipsPreface In January 2007, the White House Office of Faith-Based and Community Initiatives (OFBCI) launched a series of monthly Compassion in Action Roundtable meetings to highlight organizations, programs, and policies addressing critical social needs. The Roundtables convene and facilitate discussion between policymakers, government officials, philanthropists, and faith-based and community service providers around targeted issues. The events reveal the President’s Faith-Based and Community Initiative as a broad-based, community-centered reform agenda; showcase innovative projects and promising practices; and draw attention to government efforts to expand and support the work of faith-based and community organizations actively engaged in serving their neighbors and communities. The following report offers an overview of the May 29, 2007, Compassion in Action Roundtable, entitled Promoting Economic Development and Community Investment Through Public/Private Partnerships. Please note the statistical information presented throughout the report reflects data available up to the time of Roundtable, and excludes data collected after May 2007. Introduction On May 29, 2007, the White House Office of Faith Based and Community Initiatives (OFBCI) hosted its fifth Compassion in Action Roundtable, entitled Promoting Economic Development and Community Investment through Public/Private Partnerships. This Roundtable explored how the public and private sectors are working collaboratively to promote economic development in distressed communities throughout America. It also examined corporate and government community investment strategies that successfully leverage faith-based and community organizations in their efforts to restore and revitalize struggling neighborhoods. When businesses and government work in concert to implement successful economic development strategies, communities experience reduced rates of unemployment; individuals transition from welfare to work; and more people realize the American Dream of home and business ownership. Jay Hein, Director of the White House Office of Faith-Based and Community Initiatives, encouraged attendees to take a closer look at how business leaders, government officials, and social entrepreneurs are working to create change within disadvantaged communities and how these sectors can form stronger, more dynamic partnerships to further improve the lives of those in need. To demonstrate the transformational power of private/public partnerships, Hein offered the story of Victor Peña, a medical doctor and political refugee who emigrated from Cuba in 1998 to begin a new life in Albuquerque, New Mexico. Although a trained physician in his homeland, Dr. Peña supported his family by driving a truck route between New Mexico and Oklahoma. When his U.S. citizenship status became a problem, Victor left that job and turned to Catholic Charities, the only refugee resettlement agency in the state, for professional guidance. Following an assessment of his situation and interests, Catholic Charities connected Dr. Peña to WESST Corp, a Small Business Administration (SBA) Women’s Business Center that administers the SBA Microloan Fund. WESST Corp’s Refugee Micro-Enterprise Development Training program taught Victor marketing and sales skills that could one day lead to gainful self-employment. Even though private enterprise does not exist in Cuba, Victor possessed an entrepreneurial spirit, understanding one of the very basic tenets of free enterprise: success seldom comes without a certain degree of risk. Determined to succeed, Victor initially borrowed $10,000 from the WESST Corp Loan Fund to start a real estate business and earn his broker’s license. Through his business, which he named Real Estate Express, he employs four real estate agents, serves 99 percent Spanish-speaking clients, and has seen his personal income increase 300 percent over the past 3 years. He continues to partner with government, having recently renewed his third loan through SBA’s resource partner, WESST Corp. Hein said Dr. Peña’s example embodies what partnerships between the public and private sector can accomplish, especially vis-à-vis faith-based and community organizations. He explained, “In this story we see refuge resettlement, pathway to citizenship, assimilation, economic development and expanding home ownership all rolled into one strategy. This is indeed the power of the Faith Based and Community Initiative as imbedded in the missions of our economic development agencies.” The Value of Community Investment If anyone can appreciate the plight, and ultimate success, of Dr. Victor Peña, it is U.S. Department of Commerce Secretary Carlos M. Gutierrez. Born in Havana, Cuba in 1953, Secretary Gutierrez and his family immigrated to Miami after the 1959 Cuban Revolution. Just 6 years old when he arrived, he soon learned English and eventually acquired U.S. citizenship. When his family later moved to Mexico, Secretary Gutierrez studied business administration at the Monterrey Institute of Technology. Secretary Gutierrez joined the Kellogg Company in 1975, beginning as a sales representative and management trainee. After nearly 25 years at Kellogg, he became president and CEO in 1999, serving as the youngest CEO in the company’s history. In 2004, President Bush appointed him the 35th Secretary of the Department of Commerce, where he serves as one of the core members of the President’s economic team. Secretary Gutierrez heads a diverse agency of some 38,000 employees and a $6.5 billion budget focused on promoting American economic growth; supporting our innovative and entrepreneurial spirit; measuring American life; protecting our natural resources; and increasing national competitiveness in the global marketplace. He believes passionately in President Bush’s vision for expanding the 21st Century ownership society that provides everyone an opportunity to live the American Dream. Secretary Gutierrez described his agency’s mission to the Roundtable audience: “At the Department of Commerce, obviously one of our goals is to lift people out of poverty and provide jobs and create an environment whereby prosperity will take hold by utilizing trade, the private sector, and free enterprise.” Through its Economic Development Administration (EDA), the U.S. Department of Commerce promotes innovation and competition while preparing American regions for growth and success in the worldwide economy. As part of its multi-sector stimulus strategy, the EDA specifically targets nonprofit organizations that leverage both private and public funding to provide services and create employment for the clients they serve. For example, in 2003, an EDA investment of $2.5 million in Goodwill Industries of South Florida, Inc., in Miami helped purchase equipment to expand manufacturing facilities. With the help of this investment, Goodwill created over 1,200 jobs, generated revenues of more than $47 million, and provided over $158 million in new wages and $37 million in new Federal, Social Security, and Medicare tax revenues. Secretary Gutierrez said faith-based and community organizations such as Goodwill have emerged as “effective and innovative investors in our Nation’s economic and community development,” noting that government is not, and cannot be, the catalyst for change in the community. Government’s role is only effective when partnered with the private and nonprofit sectors. He added, “No one can do it alone; we all need to work as a team. And businesses, as well, are also realizing that they have the need to always do their best to become even better corporate citizens. I realize, in the private sector, just about every company has a social responsibility budget, but it’s a lot more than just putting a line item in a budget and having someone write a check and then assuming that you have been a good corporate citizen. It takes a lot more….” Although more can be done, an attitudinal shift has notably taken place. One emerging practice Secretary Gutierrez finds personally reassuring is the extent to which major corporations are not only building social responsibility into their budget and their missions, but the level on which some corporate leaders now engage themselves. “There is more active participation. You are beginning to see them out there involved, on the ground, instead of just in the corporate office writing a check, and that’s tremendously motivating for me, having come from the private sector.” Consistent with President Bush’s belief that “the measure of compassion is more than good intentions, it is good results,” Secretary Gutierrez gauges success by the number of jobs created and the dollars of private sector capital that EDA partners actually attract. Since 2001, EDA has invested over $147 million in 187 faith-based or community projects, whose economic benefit was anticipated to create more than 82,000 jobs and $3.5 billion in private investment. Securing assistance through private capital investment helps government and nonprofit organizations create higher-skill, higher-wage jobs in communities and regions suffering from economic distress. By leveraging resources among all sectors involved, EDA and other government agents of change work in partnership with nonprofits to address problems associated with long-term economic distress, as well as sudden and severe economic dislocations, such as natural disasters, the closure of military installations and other Federal facilities, changing trade patterns, and the depletion of natural resources. Their combined efforts lead to measurable outcomes that have tangible benefits. Secretary Gutierrez concluded, “We’ve seen around the world and here at home how economic development can truly contribute to the well-being of communities and can literally transform the lives of people through economic development; not through rhetoric, not through dogmas, but through real hard work by people on the ground…who care about results.” Private and Public Sector Efforts to Promote Economic Development and Community Investment For corporate community investors, philanthropic strategies are often driven by the dual goals of seeking to contribute to both social and economic progress. In response to this trend, the U.S. Chamber of Commerce, the world’s largest business federation, created the Business Civic Leadership Center (BCLC), a 501 (c) (3) affiliate, to represent businesses and their social and philanthropic interests. Although it was first called the Center for Corporate Citizenship (CCC) at its founding in 2000, the name changed to BCLC in 2006 to reflect how its mission grew from just addressing corporate citizenship issues to include the link between social and community progress, economic development, and trust-building between business and civil society. Roundtable moderator Stephen Jordan, senior vice president and executive director of BCLC, co-founded the organization in May 2000 to advance the positive role of business in society. With the understanding that corporate community investment is mutually beneficial, Jordan set out to improve long-term social and economic conditions by:
Jordan told the Roundtable audience that these partnerships are often formed at the local level, where companies concentrate on areas such as education, workforce development, entrepreneurship, and job training. Ninety-five percent of the companies that BCLC works with want to either maintain or expand their presence in their local community in order to make their communities as attractive as possible. This shift represents a “philosophical sea change” whereby community development strategies have transitioned away from a single issue focus to encompass strategies designed to develop human capacity. This approach addresses the changing nature of the economy and society, which now places much more emphasis on the knowledge and skills of individuals. Developing this capacity on a local level requires the involvement of community organizations and leaders who best understand the local economy and the needs of their constituents. Findings from a 2007 BCLC survey revealed that these community-level partnerships and stakeholders are central to corporate community activities. Because the business sector partners with local organizations more frequently than they partner with larger, national organizations, better coordination with community groups was ranked as the most helpful strategy for community development efforts. The BCLC survey also found that the issues of greatest concern to the business sector have to do with the development of human capital. The top four areas of concern cited in the survey were: K-12 education, workforce development, business development, and higher education. Successfully addressing these needs will better develop human capital in such a way that proves beneficial to both the community and the corporate investor. Jordan explained that while charitable giving ranks high among investment strategies, most companies really invest in their people, promoting volunteerism, civic engagement, and participation on nonprofit boards. Through these forms of investment, private-sector efforts can be measured not just by how many dollars corporations donate to nonprofits, but by how they effectively leverage human capital and professional talent to benefit the good of the community. CVS/Caremark and Mount Lebanon Baptist Church One company successfully leveraging these resources through its community investment program is CVS/Caremark. Stephen Wing, director of government programs, has been in the drug store business for over 32 years and has devoted the last 17 to working with government agencies, non-traditional employment organizations, and faith-based institutions to recruit targeted groups of people for employment. Wing described to the Roundtable audience how one such partnership led to the development of CVS’s cutting-edge One-Stop/CVS Regional Learning Center program. In late 2000, CVS ran several ads in a local Washington, D.C. newspaper to recruit pharmacy technicians. Although the company invested roughly $30,000-$40,000 to run each ad, the effort proved fruitless: not one person responded. Wing shared his frustration with Reverend Lionel Edmonds, senior pastor of Mount Lebanon Baptist Church and co-founder and president of the Washington Interfaith Network, whom he met at a U.S. Chamber of Commerce meeting. Wing expressed his disappointment over the failed media recruitment campaign, to which Rev. Edmonds responded: Why not hold a job fair at the church? Wing said they went into the fair in need of filling 40 positions. Over 100 people came to the event, 70 of whom were asked back for a second round of interviews. In total, 50 people were hired as a result of the job fair, marking the beginning of a longstanding partnership between Wing and Rev. Edmonds. Wing now travels to inner-city and rural markets, often with the help of Rev. Edmonds, to develop relationships with local ministers in order to expand CVS’ partnerships with faith-based organizations throughout the country. Wing said CVS develops these relationships because, basically, “we need good people and it’s hard to find good people.” Essentially, Wing noted, these partnerships are less about community relations and more about making sound business decisions designed to give CVS a competitive edge. The edge is found in both the number of people recruited and in the number of people the company retains. Wing explained, “These are not dead end jobs. These are positions that people can work up in…” to develop a clearly defined career path. Rev. Edmonds told the audience that creating opportunities for career advancement is key to fostering these types of partnerships. “This is not a collection plate type of thing. This is advancing the community. So this is not a glorified program, this is a workforce issue. I think work is sacred and I think when folks work they feel better about themselves. So, yes, I want folks in the community to have work, but not just any kind of work, but [work] like CVS….” Rev. Edmonds said the job fair was the “hook” to get the two parties together to start a dialogue and establish common ground. From there, the faith community could help the corporate entity become a trusted partner. He explained, “If the corporation is viewed as a trusted partner, then the church, the faith community, which is one of the gate keepers of the city, gives the corporation access to government, access to the community, access to schools….” In addition to giving their corporate partners access, faith-based organizations also provide an intricate system of support that helps companies in both their recruitment and retention efforts. “I think the problems with workforce development are the intangibles,” Rev. Edmonds said. “The intangibles, things like lack of esteem, lack of drive, lack of purpose. These are the intangibles. I don’t care what company it is, the company cannot deal with the intangibles. That is where the faith community comes in….Our expertise is the intangibles; the psychological impediments that cause folks to get a check one week and then not show up the next week.” Other targeted community outreach programs effectively employed by CVS are directed toward specific demographics within the larger community. For example, in recognition of an impending labor shortage, CVS worked in partnership with the National Council on the Aging to recruit employees over the age of 50. In 1992, less than seven percent of the company’s workforce represented people over 50. Today that number has increased to 17 percent. In an effort targeting younger recruits, in 2007 CVS announced an innovative program called Pathways to Pharmacy. In collaboration with America's Promise Alliance, the program will introduce one million inner-city and rural youth to careers in pharmacy. With this commitment, CVS/pharmacy will provide youth job opportunities generating up to $4 million in wages by 2010. Through these programs, CVS/Caremark demonstrates an emerging approach to corporate social responsibility whereby companies consider both the social and economic implications of its community investment strategies. Office Depot Foundation: Partnering with Nonprofits for Results Mary Wong, president of the independent Office Depot Foundation, told the Roundtable that when the Foundation forms partnerships with nonprofit organizations, it is done with the understanding that a greater good is served through each joint effort. Wong said the key elements to forming these partnerships are “collaboration, measurable metrics and results, and innovation.” To meet the measurement requirement, Wong said nonprofits need not provide a “great big, thick report that no one will read,” but they do need to produce some metrics by which both the nonprofit and the Foundation can determine if a greater good is really being served. By setting guidelines and establishing benchmarks, the Foundation and nonprofit work together to make sure their interests are being met through innovative and imaginative programs. Wong added, “It’s not always about money. It’s not about what you give. It’s about what you put into it and the thought processes and the investment in time that you put into it in partnership.” Understanding that “without a healthy community you will not have a healthy business,” Wong takes an active role in nurturing the Foundation’s relationships with its nonprofit partners. Wong said a lot of the organizations she comes across need guidance, some not knowing how to write an effective business summary proposal, or how to go to the Small Business Administration to compete for funding. Thousands of organizations vie each year to form partnerships with the Office Depot Foundation. Wong said she receives 5,000 such requests a month, adding, “I deal with these people and these organizations every day. And they need help.” Social Policy Research Associates According to research conducted by Social Policy Research Associates (SPR), a California-based research and evaluation firm. it is within a company’s best interest to help their nonprofit partners form and implement community investment strategies. Panelist Sukey Soukamneuth, a social scientist with SPR, conducted a study on partnerships between businesses and faith-based and community organizations (FBCOs) for the U.S. Department of Labor Center for Faith-Based and Community Initiatives. She told the Roundtable audience, “What we have found really resonates well with what the other folks have already said. That these public/private partnerships benefit both business and communities. They benefit businesses because they help to stabilize their workforce; they can help expand their customer base; [and] they can help build positive community relations. And for the communities, these public/private partnerships can improve career opportunities for individuals and working families.” The research revealed that FBCOs provide tremendous value to business partners because FBCOs provide important services to job seekers and businesses. Businesses trust FBCOs for their ability to reach job seekers that are eager and willing to work. From the business perspective, they value the fact that FBCOs recommend carefully screened job applicants, offer training in soft or hard work skills that can be customized to meet the businesses' needs, and provide follow-up and supportive services to new hires to troubleshoot problems that might arise. Further, they appreciate FBCOs' "indigenous" knowledge about the needs of workers and the social problems impacting communities, and know that FBCOs are trusted members of the communities they serve. For these reasons, businesses recognize FBCOs as strong partners in helping them meet their workforce needs. Soukamneuth offered the following examples of successful partnerships between FBCOs and the private sector:
Consistent with the Business Civic Leadership Center’s philosophy that responsible corporate citizenship is, in part, a trust-building process, these partnerships can also enhance a business’s public image and improve its reputation among consumers. Partnering with FBCOs reveals a company’s activities in the community, which affects consumers’ opinions about the company and its activities. Lastly, SPR’s research suggested that business/FBCO partnerships are constantly evolving and that there is growing momentum to continue the strong collaborations that are already taking place at the ground level. By actively partnering with FBCOs, companies are creating effective ways to reach new customers, attract and retain employees and differentiate their products and services from their competitors. St. Patrick Center: A Comprehensive Approach to Homelessness As the owner of a successful video production company and a veteran broadcaster, Dan Buck joined the nonprofit world with the insight of a businessman and the creativity of a television personality. When Buck decided on St. Patrick’s Day, 2003, to leave the private sector, he might not have appreciated how well his professional background would ultimately lend to his new career serving the poor and homeless. Buck became the CEO of St. Patrick Center in St. Louis, the largest homeless service agency in Missouri. He has been instrumental in growing the agency to 22 programs that serve over 9,000 impoverished and homeless clients per year. The organization helps individuals and families move from homelessness to independence in a measurable, cost-effective manner. Since 1983, St. Patrick Center has helped more than 105,000 homeless people make permanent, positive changes in their lives. St. Patrick Center is recognized nationally for their innovative, successful programs that focus on permanent housing, employment and financial stability, and mental health services. In 2006, St. Patrick Center received the Excellence in Economic Development Award in the category of Faith-Based Social Entrepreneurship from the Economic Development Administration (EDA) at the U.S. Department of Commerce. Buck told the audience the Center’s success could not have happened without public-private partnerships. “I believe that FBCOs and government as stand alone entities are truly ships without rudders. We see that we, alone, as an agency, can only skim the surface of the poverty issues we’re facing in St. Louis. And I’m sure every organization from every community could say the same thing. Working independent of one another, working in our silos and being truly independent, away from government resources and government support, is not conducive to innovation, is not conducive to collaboration, and it certainly is not conducive to producing meaningful results and outcomes.” Before Buck began working for St. Patrick Center, there were significant gaps in their services. Buck said that while they had 14 good, well-meaning programs, they were working and operating independently, with very limited government resources at the time. Additionally, they did not offer much in terms of their healthcare services or education programs. “We saw that we were losing people during the referral process, when we were moving people around through the network of supports, from silo to silo to silo.” Recognizing this disjointedness, Buck’s predecessor, Leo Parody, envisioned a one-stop care facility where each program could break out of its silo and where the Center could bring multiple agencies together. Although people told him he could never be able to bring such a bold vision to life, over the course of six years, St. Patrick Center found the means, and 12 active partners, to develop and operate a 100,000 square-foot partnership facility. This facility gives clients access to a comprehensive medical clinic, including chiropractic and dental services, and an educational program that offers GED classes and a computer training course taught by a local community college. Buck said as the capacity of their facilities has increased, so have their service programs. “We’ve grown from 14 to 22 programs; we’ve gone from a $5.7 million to a $10.7 million agency in those six years.” St. Patrick Center now partners with multiple Federal and local partners, including: the U.S. Departments of Housing and Urban Development, Labor, and Justice; the Social Security Administration; the State and Mental Health Department; State Corrections; the City Human Services Department; and the local Mental Health Board. St. Patrick Center’s newest and most innovative partnership is a $5 million capital project with the U.S. Department of Commerce and Catholic Charities of St. Louis. The project is called BEGIN (Business, Employment, Growth, Incomes and Neighborhood), and is the Center’s first effort in job creation. The EDA investment totaling $3.5 million is being used to renovate the 4th and 5th floors of its facility to launch the project. The space will be leased to multi-tenants operating light manufacturing and service-oriented businesses, thereby offering in-house employment and entrepreneurship opportunities. The Center will also offer workforce training skills in conjunction with Ranken Technical College, through a comprehensive Trades Training Program. Project BEGIN will demonstrate the effectiveness of bringing meaningful jobs and valuable trades training directly into a professionally operated, social service agency that deals with a large number of minority and impoverished clients. Buck told the audience, “Just think of that for a moment—the Department of Commerce investing in a homeless agency. I have business leaders tell me that makes absolutely no sense. I’ll tell you why that makes sense. Any good economist… any good economic researcher will say that the success of any urban revitalization effort has to begin by addressing the needs of the poor and those who live in the urban core. We know, after 24 years of dealing with the population, that if you can establish them as a well-trained, highly-effective workforce, then you can make them critical in any economic region, especially in St Louis, that is seeing a resurgence in downtown. And we like to feel that St Patrick’s Center has been an economic stimulus and a real partner in that growth downtown.” Buck explained that over 1,400 people have been put to work per year through the Center’s job-training programs, changing both lives and the landscape of downtown St. Louis. This could not have happened through any singular approach from any one agency. It required multiple agencies meeting the multiple needs of the Center’s client base. Buck explained, “For our population, it isn’t just a job these people need. It isn’t just an education that these people need. The complex demands of our clientele and our population cross all sectors and all barriers. We’re talking substance abuse issues, mental health issues. Many have no independent living skills such as budgeting and parenting and how to live independently. Many are ex-offenders who don’t know how to cope coming out of prison after a lengthy stay. Most typical Department of Labor Workforce Investment Boards do not know how to deal with those issues. The Partnership Center and St. Patrick’s Center does. The Department of Commerce recognizes that. They recognized they needed to partner somewhere to build a job training program that brought more than just job training; that brought a comprehensive approach to truly lift people’s lives up and move forward. This type of wrap-a-round, one-stop recovery and personal empowerment approach is working for thousands of clients and will work even better once we get the Trades Center up and running.” St. Patrick Center has benefited from a truly collaborative effort involving support from the government and private sector. Two private dollars are brought to every government dollar they receive. Thirty-three percent of the Center’s $10.7 million operating budget comes from government resources, and they receive over $6 million from foundation, corporation and private donor contributions. The $3.5 million capital investment received through the U.S. Department of Commerce was preceded by $12.5 million of private money raised before government had decided to invest in the project. Buck pointed out that his board of directors has 14 major corporations represented, two of whom are from the St. Louis-based Anheuser-Busch company. “They invest in the community in which they live; [where] their children go to school…and the ballpark. Anheuser-Busch gets it, they understand corporate responsibility. If you’re not investing a sizable sum like Anheuser-Busch does, I ask you to look at your business model a little more closely, and see if you’re doing enough in the communities in which you operate.” The Doe Fund: From Homelessness to Employment In response to the mounting homeless crisis in New York City, George McDonald founded the Doe Fund in 1985. It was named in honor of a homeless woman he had known and fed during his outreach to the homeless at Grand Central Station. The woman, known as “Mama,” froze to death on Christmas Eve after being thrown out of the Station. On behalf of Mama and all who suffer the plight of homelessness, McDonald formed the Doe Fund to "empower homeless men and women to achieve lives of self-sufficiency." McDonald told the Roundtable audience how his work started: “I wound up in Grand Central Terminal in 1984 and 1985 feeding homeless folks every night at 10:00 PM. There were 700 of them lined up outside on 43rd and Vanderbilt Avenue. The richest, most densely populated part of our country and the world, and here were all these people lying around. I did that for 700 nights in a row, and I heard what they had to say. While they thanked me for the sandwich and the milk, they said, ‘What we really want is a room and a job to pay for it.’ And I heard that over and over and over again, until it led me to think about, how can I put together a program that will provide them with an opportunity to work? Because that’s what I heard that they wanted to do. Now, call me crazy, because of course, these were the most marginalized people, doing crack cocaine, in and out of prison, no education, marginalized when they were twelve or thirteen-years-old, and there they were. I said, ‘Okay, we can do this.’” Determined to bring hope into their lives, McDonald and his wife developed Ready, Willing & Able, the first residential paid work and training program for homeless people. Through funding from New York City’s Department of Housing Preservation and Development (HPD), they purchased and renovated an abandoned building in Brooklyn. They also received a work contract to hire and train people to renovate city-owed apartments that would be used to house the homeless. With these resources, they would forge a workforce from single homeless men and provide housing for them in the building they renovated. McDonald and his wife went into the streets to recruit people for their project. If a person could stay off of drugs and go to work everyday, they could join the program. Hundreds of homeless men responded, and the first 45 participants began working for the Doe Fund in 1990. Instead of receiving welfare benefits, trainees earned $5.50 per hour in wages, were paid $65 per week toward their room and board, and had $30 per week put into savings accounts. They had safe, semi-private rooms and were well-fed. As the program developed, there were caseworkers on staff, nightly 12-step meetings, life skills classes, and certified teachers to help those who wanted to earn high school equivalency diplomas or, in some cases, to learn to read and write. By 1994, 90 formerly homeless and drug-addicted men had entered the legitimate workforce through the Ready, Willing & Able program. They stayed off of drugs, paid rent, worked hard, and established a solid foundation for a new beginning. McDonald said this was the first revenue generating program for formerly homeless people in America, “where we actually went out and did the work everyday. I paid them, we paid the program. No grants, no nothing.” In 1991, McDonald received an award from the first Bush Administration for his innovative approach to helping the homeless. He said shortly thereafter he started receiving money from the U.S. Department of Housing and Urban Development. “Now, think about this. This is a year-and-a-half after I had helped people that nobody else thought had any value at all in our society. I’m down here in a room getting an award from the top of our government. So if that doesn’t affirm the fact that good ideas implemented well will get attention….” As the Doe Fund has grown with increased government and private funding, so has the range of programs offered. “We now have the largest street cleaning operation in America. Our guys are in blue uniforms with the American flag on their sleeve, and we clean 150 miles of New York City sidewalks everyday. We’ve been expanded to Philadelphia, to Jersey City. I have to tell you, today we do $82 million in revenue. Ninety percent of that is in program services, seven percent is in administration, and three percent is in fundraising. We have 45,000 people who send us money in the metropolitan area and beyond. We have support of not only the Department of Housing and Urban Development now, but the Department of Labor, Department of Justice, and other absolutory things. The Federal government is fully behind us and our reentry work, which is critical to the future of these issues, in my opinion.” In addition to the Doe Fund, McDonald founded the Way Home Coalition, an assemblage of services providers that coordinates New York City’s continuum of care for the homeless, and has been appointed a member of the New York State Office of Mental Health Housing Task Force and the New York City Council’s Legislative Advisory Commission on Homelessness. Mr. McDonald also serves as co-chair of the Employment Committee for New York City’s Discharge Planning Initiative between the New York City Department of Correction and the Department of Homeless Services. He is a member of the New York City Workforce Investment Board Prisoner Reentry Steering Committee and the chairman of the New York State Independent Committee on Reentry and Employment. Economic Development and Training Institute, Inc.: A Two-Fold Strategy Joe Gaskins, president and chief operating officer for Economic Development and Training Institute, Inc. (EDTI), said there are two basic components to his nonprofit 501 (c) (3) that are “instrumental in changing the landscape of the community in which we serve.” One is housing, the other business development. “Initially when we started, they (the community) told us we’d never make it work.” Gaskin was told EDTI would succeed only if it focused on just one of the areas of need. But Gaskin’s vision was broader, and he approached issues such as homelessness and joblessness holistically, appreciating the overlap between the two. EDTI’s multi-disciplined community development strategy has several components to its housing and business programs. These include:
Having served as a small business advocate for most of his professional career, Gaskins has given considerable attention to the Business Program Product Development, which provides, on average, technical assistance to 30 businesses and 60 individuals each month. After conducting a feasibility study with support from the Maryland Department of Business and Economic Development, EDTI received help from the Small Business Administration and the Department of Health and Human Services (HHS). Through HHS funding, EDTI started its Other Cultures Facility and a restaurant and seafood retail program that has provided 40 jobs to low-income individuals. “What we are doing, on average, over a three-year period, is providing free technical assistance to individuals who want to be in business, some who have been in business but who have not had the capacity to breakthrough or work out of a business center, legal and technical components. All of it is being provided there, and it costs them no money.” JCVision and Associates, Inc.: Helping Others Realize the Dream of Homeownership In 2000, Dana Ingram founded JCVision and Associates, a faith-based housing and financial service organization, with one volunteer (herself), a board of directors and a $2,500 budget that Ingram took from her retirement fund. As director of the Georgia-based 501(c)(3), Ingram set out to help Americans free themselves of debt and achieve financial independence by providing financial literacy and home ownership services. In its first year, JCVision served approximately 500 clients with a budget of less than $100,000. In 2002, the organization won its first Federal award—a $99,988 Fair Housing Initiatives Program grant from the U.S. Department of Housing and Urban Development (HUD). Now, JCVision has six full-time employees, an operating budget of just under $400,000, and serves 10,000 people, many first-time homeowners. “Due to the community investment made by HUD, JCVision has been able to educate and provide services to over 150,000 residents living in 18 South East Georgia counties. HUD’s investment has helped JCVision become a HUD-approved housing counseling agency, a fair-housing initiative program, and a community-development housing organization,” Ingram explained. In 2004, HUD made another community investment through JCVision by awarding it a three-year Rural Housing and Economic Development grant. The grant was $398,000, and has led to the development of 2.5 acres, including the implementation of water and sewage systems, a road infrastructure, and the construction of nine single-family detached houses. With the grant and HUD investment, JCVision was able to coordinate additional funding to complete the project. $89,000 came from the Georgia Department of Community Affairs and down payment assistance; $16,000 from HUD Assistance Program for Salaries; and $600,000 investment from local banks for construction costs. The $1.5 million project was very successful and JCVision was able to employ local contractors, create 25 new jobs, and increase the tax space for the rural community. Currently eight of the nine houses were sold, and one is under contract. All homes were sold to low- or moderate-income households. Each constructed home was handicap accessible, 1,400 sq feet with three bedrooms and two baths. Each person received budgeting and counseling services to understand home ownership, their responsibility, and to prevent future foreclosure. Upon moving, each homeowner had at least $100,000 equity in their home. The project was accomplished eight months ahead of schedule. Ingram said, “The future of JCVision is outstanding,” pointing out that due to the successful development project with HUD, a local landowner has since donated four out of eight acres for the next development project. The goal is to develop 25 to 30 detached single-family homes all for low- to moderate- income. For the first time, homeowners will be coordinating with agencies such as HUD, the U.S. Department of Agriculture, Georgia Development and Community Affairs, local bankers, and private donors. The goal is to have the homes completed by October 2009. Appendix A: Federal Efforts to Promote Economic Development and Community Investment Corporation for National and Community Service National Service: A Public-Private Partnership The Corporation for National and Community Service (the Corporation) awards Federal grants to nonprofit groups, faith-based organizations, academic institutions, and local government agencies to engage millions of Americans in service and volunteering. The Corporation promotes volunteerism and community investment with private-sector support in the form of matched funds, volunteer referrals and management, corporate sponsorship of national events, and collaboration on major initiatives. Visit www.nationalservice.gov. Private Matching Funds Corporation grantees successfully leverage private funding for their programs. From 2000 to 2005, grantees were awarded $3.15 billion by the Corporation and collectively raised $2.2 billion in non-Corporation matching funds. AmeriCorps grantees, who are required to match a percentage of cost for operations and member support, were awarded $1.6 billion and raised an additional $1.1 billion. Senior Corps grantees were awarded $1.2 billion and raised an additional $686.4 million. Learn and Serve America grantees were awarded $269.2 million and raised an additional $279.5 million in non-Corporation funds. Volunteer Connectors and Corporate Sponsors Through Partnership Grants designated by Congress, the Corporation works closely with Points of Light Foundation to solicit corporate sponsorship of joint events, including the 2007 National Conference on Volunteering and Service, which will be hosted by Comcast Corporation and the Philadelphia Eagles. The Corporation also recognizes businesses that maintain outstanding employee volunteer and community relations with the Corporate Spirit of Service Award. Since 1994, the Corporation has encouraged private organizations to become sponsors of the annual Martin Luther King Day of Service, offering online resources for businesses and community groups to search service opportunities and partner with four major volunteer connectors to recruit prospective volunteers for their own local projects. Federal Mentoring Council The Federal Mentoring Council is a public/private partnership spearheaded by the Corporation and MENTOR, a nonprofit dedicated to providing adult mentors to every child who needs one. The mission of the Federal Mentoring Council is to increase self-esteem, social skills, and career development, as well as decrease delinquency, substance abuse, and academic failure, in American youth. By engaging private institutions, like Harvard School of Public Health, that have already implemented successful projects, the Council has garnered in-kind support from Home Box Office, Inc. to develop a national awareness and recruitment campaign; MetLife Foundation to support mentoring research; and LPL Financial to engage its network of 6,000 employees in mentoring programs. The Council of Economic Advisers is an office in the Executive Office of the President. The Council was established by the Employment Act of 1946 to provide the President and White House staff with objective analysis of the economy and advice on the development and implementation of a wide range of domestic and international economic policy issues. Dr. Edward P. Lazear of Stanford University and the Hoover Institution currently chairs the Council. Past Chairmen have included Ben Bernanke and Alan Greenspan. The Council is a unique institution in the government where highly regarded academic economists and other outside experts come for short periods of public service of usually one-to-two years. To learn more about the Council of Economic Advisors, please visit: http://www.whitehouse.gov/cea/. U.S. Department of Agriculture The U.S. Department of Agriculture (USDA) recognizes the important role that faith-based and community organizations (FBCOs) play in helping better serve those in need. Through its partnership and grant opportunities, USDA welcomes FBCOs as important partners in our domestic food and nutrition programs, international food aid programs, and rural development opportunities. For example, USDA Rural Development works with FBCOs to help build stronger, more vibrant rural communities across the Nation. Rural Development partners with FBCOs on projects that bring housing, community facilities, utilities, and other services to rural communities. Programs are aimed at cities, towns, or unincorporated areas of up to 20,000 in population. The following are just several Rural Development programs that offer funding opportunities for FBCOs: Community Facilities Programs: Through Community Facilities loans and grants, Rural Development helps to ensure that essential community facilities—such as health care clinics, police and fire stations, schools, and child-care centers—are readily available to all rural Americans. The purpose of this program is to construct, enlarge, extend, or otherwise improve community facilities providing essential services to rural residents. Projects typically fall into the following categories: health care, public safety, public services, educational, cultural, and transportation. Distance Learning and Telemedicine Program: The Distance Learning and Telemedicine Program is designed to meet the educational and health care needs of rural America through the use of advanced telecommunications technologies. The goal of this grant and loan program is to provide rural residents—students, teachers, parents, patients, and physicians—with innovative and affordable educational and health care opportunities that were once only available in urban areas. Rural Community Development Initiative: The Rural Community Development Initiative program provides technical assistance and training funds to qualified intermediary organizations to develop or increase their capacity to undertake housing, community facilities, and community and economic development projects in rural areas. Rural Business Enterprise Grants: The Rural Business Enterprise Grant program provides grants for rural projects that finance and facilitate development of small and emerging private business enterprises—those that will employ 50 or fewer new employees and have less than $1 million in projected gross revenues. To learn more about how USDA Rural Development is working with faith-based and community groups to strengthen rural communities, please visit: www.rurdev.usda.gov/rd/fbci/. The U.S. Department of Commerce has a long history of providing grants to faith-based and community organizations that give assistance to distressed communities through its Economic Development Administration (EDA). EDA’s mission is to lead the Federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy. Faith-based and community organizations compete for EDA assistance on exactly the same basis as other applicants; as a result, EDA-supported faith-based and community investments produce the same economic development benefits—higher skilled, higher wage jobs and private sector investment—that characterize EDA projects in general. EDA targets its investment assistance on attracting private capital investment and creating higher-skill, higher-wage jobs in those communities and regions that are suffering from economic distress. Based on locally and regionally-developed priorities, EDA works in partnership with state and local governments, regional economic development districts, public and private nonprofit organizations and Indian tribes to address problems associated with long-term economic distress, as well as sudden and severe economic dislocations such as natural disasters, the closure of military installations and other Federal facilities, changing trade patterns, and the depletion of natural resources. Since 2001, EDA has invested over $147 million in 187 faith-based or community projects, whose economic benefit was anticipated to create more than 82,000 jobs and $3.5 billion in private investment. In 2006 alone, EDA invested more than $33 million in 44 such projects, with anticipated benefit of more than 19,000 created jobs and nearly $721 million in private sector investment. Examples of these investments abound. Most recently, EDA invested $3.5 million in the St. Patrick Center—the nation’s largest private sector assistance program for the homeless—in St. Louis, Missouri to support the Center’s Project BEGIN (Business, Employment, Growth, Incomes and Neighborhood). In 2003, an EDA investment of $2.5 million in Goodwill Industries of South Florida, Inc. in Miami, Florida helped purchase equipment to expand manufacturing facilities. With the help of this investment, Goodwill created over 1200 jobs, generated revenues of more than $47 million, provided over $158 million in new wages and $37 million in new federal, social security and Medicare tax revenues. To learn more about how Commerce is working with faith-based and community groups to encourage economic development, please visit: www.eda.gov. U.S. Department of Health and Human Services The U.S. Department of Health and Human Services (HHS) is the United States government's principal agency for protecting the health of all Americans and providing essential human services, especially for those who are least able to help themselves. With programs covering a wide spectrum of activities, there are many existing opportunities for faith-based and community organizations to partner with HHS. Within HHS, the Office of Community Services (OCS) partners with states, communities, and other agencies to provide a range of human and economic development services and activities which ameliorate the causes and characteristics of poverty and otherwise assist persons in need. The aim of these services and activities is to increase the capacity of individuals and families to become self-sufficient, to revitalize communities, and to build the stability and capacity of children, youth, and families so that they become able to create their own opportunities. Below are two specific examples of programs within OCS that promote economic development. Community Economic Development: The purpose of the Community Economic Development discretionary grant program is to promote and support projects that address economic self-sufficiency for low-income persons and distressed communities by awarding funds to community development corporations (CDCs) to create employment and business development opportunities. A CDC must be governed by a board consisting of community residents and business and civic leaders and have as a principle purpose planning, developing, or managing low-income housing or community development projects. Grants are awarded to cover project costs for: (1) startup or expansion of businesses, physical improvements, or commercial activities; (2) capital expenditures, such as the purchase of equipment or real property; (3) allowable operating expenses; and (4) loans or equity investments. Expenditures must result in the creation of employment or business opportunities for low-income individuals. There is no funding match requirement; however, the Office of Community Services requires documentation for the commitments for all non-CED funding that will be necessary for the successful completion of the funded project. Job Opportunities for Low Income Individuals: The purpose of the Job Opportunities for Low Income Individuals (JOLI) program is to provide technical and financial assistance to private employers in the community to assist them in creating employment and business opportunities for individuals eligible to receive Temporary Assistance for Needy Families (TANF) and for other low-income individuals. The ultimate goal of the JOLI program is economic self-sufficiency for the targeted populations. Nonprofits having 501(c) (3) or a 501(c) (4) status with the IRS, other than institutions of higher education, are eligible to apply for funding. A minimum of 20 percent of the funds must be used for the provision of loans or other financial assistance to program participants. There is no funding match requirement; however, the Office of Community Services requires documentation for the commitments for all non-JOLI funding that will be necessary for the successful completion of the funded project. To learn more about how HHS is working with faith-based and community groups, please visit: www.hhs.gov/fbci.U.S. Department of Housing and Urban Development The U. S. Department of Housing and Urban Development (HUD) is committed to the development and maintenance of safe, decent, affordable housing for all, in vibrant communities that are good places to live and good places for business and financial institutions to invest. Several programs housed in HUD’s Office of Community Planning and Development seek to develop neighborhoods and communities by helping them foster individual self-sufficiency, home ownership, and skills acquisition; and by assisting them in developing the infrastructure and capacity necessary for creating and sustaining long-term economic viability. HUD welcomes faith-based and community organizations to compete for, and, when they win, administer program funds, in recognition of the important role they play in their communities and their unique capacities for helping those who desire their assistance. Community Development Block Grant (Office of Block Grant Assistance) Continuum of Care (Office of Special Needs Assistance Program) Many of these 6000 projects provide employment readiness and job training as a supportive service to the homeless individuals who reside in McKinney-Vento housing. Many of the projects are located in local Enterprise Zones and communities. In some cases homeless projects are located near CDBG funded economic initiatives, including Section 108 insured economic development loan projects. In all of these circumstances, there have been significant and successful examples of homeless projects partnering with employers, large and small, to develop on-the-job training as well as part-time and full-time employment opportunities for their clients. Clients have been able to increase their incomes and move onto to private market housing and in not a few instances, home ownership. It is the goal of all of our funded projects is to maximize the self sufficiency of the formerly homeless individuals and families we serve. HOME Investment Partnerships Program (HOME) Rural Housing and Economic Development Self-Help Homeownership Opportunity Program (SHOP) To learn more about how HUD is working with faith-based and community groups, please visit: www.hud.gov/offices/fbci. Increasing the competitiveness of America’s workforce is a top priority for the U.S. Department of Labor (DOL). DOL is responsible for managing the nation’s public workforce investment system which annually distributes approximately $15 billion to states to support education, employment, and training services. In a competitive economy that is creating jobs for “knowledge workers” who possess specialized skills and training, DOL is setting a course for the public workforce investment system to operate within the context of regional economic strategies. The Department is strategically aligning its resources with private sector resources, which define skill needs and create jobs; education institutions, which prepare workers for those jobs; and faith-based and community organizations, which help the unemployed and underemployed find jobs or better jobs and stay employed. DOL has created a series of initiatives to assist workers at every point along the skills and expertise spectrum. These programs are designed to engage industry and education. Grants to Community and Faith-Based Organizations Workforce Innovation in Regional Economic Development (WIRED) Initiative Recognizing these two factors, DOL launched an initiative called Workforce Innovation in Regional Economic Development (WIRED). WIRED integrates the activities of both economic and talent development into a single regional strategy. The Department selected 13 regions to be a part of the first generation of WIRED and invested $15 million in each region. DOL then added another 13 regions with an investment of $5 million in each and is currently vetting proposals for a third generation of regions. High Growth Job Training Initiative Community-Based Job Training Initiative Through these efforts, DOL is helping workers develop their skills and talents so they can be globally competitive in the 21st Century. To learn more about how DOL is working with faith-based and community groups, please visit: www.dol.gov/cfbci. U.S. Department of Labor: New Partners Events for Workforce Investment Boards: "Build Your Community Network!" Workforce Investment Boards (WIBs) are public agencies charged with guiding their state or region’s workforce development efforts. The U.S. Department of Labor recently established mini-grants of $5,000 to $10,000 to host “Build Your Community Network” conferences. At these events, WIBs bring together FBCOs from the region that share a commitment to serving individuals with serious employment challenges. The objective is to enable willing FBCOs to work more actively in tandem with the state or local WIBs to help unemployed Americans enter and successfully retain employment. Material covered at the events ranges from how WIBs function to tips on working with clients’ potential employers and details on ways eligible clients can tap into educational funding available through WIBs. Up to 50 “Build Your Community Network” conferences will be funded in 2008. U.S. Department of Labor: The SHARE Network Through the SHARE Network Initiative, DOL has helped local and State governments replicate two promising practices for building networks of faith-based and community partners that help struggling Americans obtain employment. The first promising practice is a web-based referral network and resource directory, which enables referrals between government “One-Stop Career Centers” and nonprofits that provide extra support for high-need individuals seeking employment. This enables clients of either government or nonprofit services to access the resources of both. Nine states currently have active SHARE Networks. The most active of these, in Missouri, has engaged more than 5,000 nonprofit and government agencies through its network. The second promising practice known as creating “Access Points”, enables local government agencies to train FBCOs in targeted, high poverty communities or neighborhoods to help people look for jobs and prepare for employment using web-based tools, including job banks. “Access Points” essentially serve as satellite offices for government services in targeted communities. To date, 24 Workforce Investment Board regions nationwide have opened “Access Points” through 84 nonprofit organizations and trained them as extensions of local government offices—a number expected to more than double in the coming year. The Community Development Financial Institutions Fund (the Fund) was created for the purpose of promoting economic revitalization and community development through investment in and assistance to community development financial institutions (CDFIs). The Fund’s role in promoting community and economic development was expanded in FY 2001 when the Secretary of the Treasury delegated to the Fund the responsibility of administering the New Markets Tax Credit (NMTC) Program. Since its creation in 1994, the Fund has awarded $820 million to CDFIs, community development organizations and financial institutions through the Community Development Financial Institutions (CDFI) Program, the Bank Enterprise Award (BEA) Program, and its Native Initiatives. In addition, the Fund has allocated $12.1 billion in tax credit authority to community development entities (CDEs) through the NMTC Program. The Fund’s vision is an America in which all people have access to affordable credit, capital and financial services. Its mission is to expand the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and economically distressed communities in the United States. The Fund achieves its purpose by promoting access to capital and local economic growth through:
Generally, CDFIs are community-based specialized financial institutions that serve low-income people or work in economically distressed communities, often working in market niches that may be underserved by traditional financial institutions. Only financial institutions certified by the CDFI Fund can receive funding through the CDFI Program and Native Initiatives (certain other entities can receive an awards through the Native Initiatives). CDFIs seek to provide a unique and wide range of financial products and services that may help their customers build wealth and achieve the goal of participating in the ownership society. While the types of products made available may be similar to those provided by larger mainstream financial institutions (such as mortgage financing for low-income and first-time homebuyers, small business lending, and lending for community facilities), CDFIs generally lend to and make equity investments in markets not served by traditional financial institutions. CDFIs may offer rates and terms that are more flexible than those provided by traditional financial institutions. CDFIs also seek to provide services that will help ensure that credit is used effectively, such as technical assistance to small businesses and credit counseling to consumers. CDFIs include regulated institutions such as community development banks and credit unions, and non-regulated institutions such as loan funds and venture capital funds, among others. To learn more about the Community Development Financial Institutions Fund, please visit: www.cdfifund.gov. U.S. Small Business Administration The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the Federal Government to aid, counsel, assist, and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. SBA helps Americans start, build, and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States. SBA contributes to economic development and community investment through its financial assistance, government contracting, entrepreneurial training, and disaster recovery programs. SBA’s Financial Assistance Programs A CDC is a nonprofit corporation set up to contribute to economic development within a community. The CDC works with the SBA and private sector lenders to provide financing to small businesses. A typical project includes equity from the borrower, a private sector loan and a SBA guaranteed loan. SBA’s participation depends on the project meeting public policy goals, which include: employment growth, business district revitalization, expansion of minority business, rural development, and increasing productivity and competitiveness. CommunityExpress is a pilot loan program established in 1999 in collaboration with the National Community Reinvestment Coalition (NCRC) to provide financial and technical assistance to economically distressed and underserved communities. CommunityExpress provides participating lenders with streamlined loan review and approval procedures to process loans up to $350,000. These loans carry SBA’s full guarantee of 75-85 percent, making them attractive to private lenders who otherwise are reluctant to lend to smaller minority firms in disadvantaged communities. The loans are targeted to small businesses in Federally designated low and moderate income areas, with a particular focus on minorities, women, and veterans. With an average size loan of $20,000, most loans go to start-ups, micro firms, and sole proprietorships with few or no employees. SBA’s Government Contracting Programs SBA’s HUBZone program encourages economic development in historical underutilized business zones through the establishment of preferences. It is a place-based preference program that includes urban, rural, Native American, and Base Realignment and Closure (BRAC) areas. To become a HUBZone firm a business’s principal office must be located in a “historical underutilized business zone,” be at least 51% owned and controlled by one or more US Citizens, and at least 35% of its employees must reside in the HUBZone. The program provides subcontracting opportunities and preferences, which include set-aside awards, sole source awards and competitive awards after applying a 10% price evaluation preference. The targets of the program are business development and job creation and retention. The program works to encourage Federal agencies to comply with the statutory 3% HUBZone procurement goal. SBA’s Entrepreneurial Training Programs SBDC, in partnership with the SBA, develops programs and provides business management and other services that enhance economic development and support startups and existing small business expansion. The program creates a system of assistance for the small business community by linking the resources of Federal, state, and local governments with those of the educational community and the private sector. SBDC has a network of 63 lead centers and over 1,000 service centers designed to serve local communities. WBC is a community-based program that provides business skill services targeted to startup and existing small businesses owned and controlled by women. Skill services include financial, management, marketing, and eCommerce, and government procurement/certification assistance. WBC target groups must include socially and economically disadvantaged groups, and those living in Empowerment Zones, rural, and urban areas. WBCs are at 90 locations throughout the country. SCORE “Counselors to America’s Small Business” is a non-profit organization, formed in 1964, dedicated to providing free, confidential business counseling and training to small businesses. Its 10,500 volunteers (working and retired business owners, executives, and corporate leaders) provide face-to-face counseling and workshops at 389 chapters offices nationwide. SCORE helps strengthen nonprofits to serve their communities. While most of SCORE’s work has focused on small businesses, over the years it has assisted some start-up and emerging nonprofit organizations, particularly on business issues. SCORE strongly believes that to be effective, competitive and sustainable, non-profits must not only be caring and creative, they must also run their operations as businesses. To help non-profits become more “business-like” in their operations, SCORE has published a resource workbook, “Business Planning Tools for Non-Profit Organizations.” A team of SCORE counselors worked with the W.K. Kellogg Foundation, plus materials from the Executive Coaches of Orange County, CA, to develop a workshop for nonprofits that need help expanding their services. The goal of the workshop is to teach nonprofits how to develop funding resources to become more sustainable. The workshop is available at SCORE chapters nationwide, along with the resource workbook and presenter’s guide. SBA’s Disaster Recovery and Assistance Programs Disaster loans for property damages are available to homeowners, renters, non-farm businesses, and private-nonprofit organizations. In the aftermath of a disaster, SBA makes loans to help religious organizations fund rebuilding of churches, temples, mosques, and private religious schools in the impacted area. SBA can lend up to $1.5 million to non-profit organizations for their uncompensated disaster-related losses generally at an interest rate of 4 percent or less and the loan term can be for up to 30-years. Loans can be used to repair or replace real estate, inventory, equipment, leasehold improvements, etc. SBA may also be able to provide funds for such things as code required upgrades, mitigation measures, relocation, and refinancing of existing liens. In 2005, in the aftermath of hurricanes Katrina, Rita, and Wilma, the Agency approved more than 160,000 disaster loans totaling almost $11 billion. In these catastrophic events, SBA made disaster loans to 844 nonprofit organizations totaling over $341 million, which included loan approvals to:
To learn more about how SBA and its nonprofit resource partners are working with faith-based and community groups to promote economic development and community investment, please visit: www.sba.gov/fbci. U.S. Department of Homeland Security The Department of Homeland Security (DHS) also leverages private resources to assist with disaster response. Rather than matching funds, as described at USAID and DOC, DHS has designed a system that facilitates goods and services necessary to recover from natural disasters. At the start of the hurricane season in 2007, the Federal Emergency Management Agency (FEMA) expanded its online donation management system through a collaborative venture with Aidmatrix. This new venture connects donors to America’s 50 largest disaster charities, many of which serve as umbrella organizations for smaller faith-based and community nonprofits. Some States are expanding this network to include grassroots nonprofits directly, and local governments are increasingly making connections to their State’s network. In the wake of a disaster, getting the right relief supplies to the right people at the right time can often be problematic. The emergency management community has been known to describe an outpouring of inappropriate or unusable items—however well-intentioned—as the “second disaster.” The new FEMA-Aidmatrix system avoids this problem by allowing “one-stop shopping,” both for those who have goods to donate and for those who need donations. The supply side (corporations) posts products that they wish to donate, while the demand side (local government and nonprofits) posts its needs during a disaster. Matching supplies with needs is handled efficiently via electronic platforms. This system was implemented in California just prior to the catastrophic wildfires in 2007, enabling emergency relief workers a common platform to access available resources on a 24/7 basis. It has also proven successful in recent disasters, ranging from Oklahoma’s ice storms to Alabama's tornadoes. Promoting Economic Development and Community Investment Through Public/Private Partnerships May 29, 2007 3:00pm – 3:15pm Welcome and Introduction 3:15pm – 3:25pm The Value of Community Investment 3:25pm – 4:05pm Panel I: Corporate Community Investment Panelist: Stephen M. Wing, Director of Government Programs, CVS/Caremark Panelist: The Reverend Lionel Edmonds, Mount Lebanon Baptist Church/Washington Interfaith Network Panelist: Mary Wong, Director of Community Relations, Office Depot Foundation Panelist: Sukey Soukamneuth, Social Scientist, Social Policy Research Associates 4:05pm – 4:50pm Panel II: Government Community Investment Panelist: Dan Buck, CEO, St. Patrick Center Panelist: George McDonald, Founder and President, The Doe Fund Panelist: Joseph Gaskins, Executive Director, Economic Development and Training Institute Panelist: Dana Ingram, Founder and Executive Director, JCVision and Associates, Inc. 4:50pm – 5:00pm Closing Remarks Gary Blank Gary D. Blank is chief of staff of the Council of Economic Advisers, an office in the Executive Office of the President charged with advising the President and White House staff on the state of the economy and economic implications of a wide range of policies. In his capacity as chief of staff, Mr. Blank directs the work of the Council, manages the staff, and acts as a liaison to other organizations. He has held the position since February 2005. In 2004 Mr. Blank served as deputy policy director for the Bush-Cheney ’04 campaign. There he handled tax, Social Security, and other economic and fiscal policy issues. Prior to the campaign, Mr. Blank worked over eight years in Congress, including time with the Joint Economic Committee and former U.S. House Majority Leader Dick Armey. Mr. Blank holds a Bachelor of Science degree in Public Administration from George Mason University. Dan Buck Dan Buck became CEO of St. Patrick Center in March 2003. Prior to leading St. Patrick Center, Dan had a successful broadcasting career. He is known best for his over seven years with “Show Me St. Louis” on KSDK. He also spent two years as the morning show host of BIG 550 KTRS. In his 18 years of broadcasting, he received 13 prestigious media awards. In his nine years in St. Louis, he was honored with 18 Emmy nominations and six Emmy Awards. The Reverend Lionel Edmonds The Reverend H. Lionel Edmonds was born in Fort Wayne, Indiana, the first child of Herbert and Juanita Edmonds. After attending the parochial and public school systems of Fort Wayne, Reverend Edmonds came to Washington, DC to pursue his undergraduate degree at the University of the District of Columbia where he received his Bachelor of Arts degree in English and Philosophy. He then entered Howard University School of Divinity where he earned a Master of Divinity degree and he is presently pursuing the Doctorate in Spiritual Formation from the Catholic University of America. His dissertation is entitled, “Solitude, Sound and Service: the Streams of Life.” Reverend Edmonds has served as the senior pastor of Mount Lebanon Baptist Church of Washington, DC since 1992. Reverend Edmonds has led the congregation in creating a national and local ministry that addresses the spiritual and social needs and concerns of the individual as well as community. By serving as the co-founder and president of the Washington Interfaith Network (WIN), he has worked with congregations across the District of Columbia to help produce a $100 million dollar Neighborhood Investment Fund that establishes affordable housing, living wage, jobs, and educational opportunities. In 2003, Reverend Edmonds was asked to develop a national partnership between Fortune 500 Companies and the faith community. This unique workforce and economic development partnership has become a model used by corporations and congregations nationwide. Joseph Gaskins Mr. Gaskins is the president and chief operating officer for Economic Development and Training Institute, Inc. (EDTI) a nonprofit, 501 (c) (3), State of Maryland Corporation. EDTI is a multi-disciplined community development corporation and community housing development organization, with industry training capabilities. Mr. Gaskins is responsible for providing overall corporate philosophy, strategy, and direction for Economic Development and Training Institute, Inc. in Suitland, Maryland. Mr. Gaskins has over 33 years of experience in corporate leadership, project development, engineering, and construction. He has been actively involved in the development of small businesses, working as an advocate for small business and as a technical service provider offering one-on-one and group technical assistance training. Carlos M. Gutierrez Carlos M. Gutierrez is the 35th secretary of the U.S Department of Commerce, the voice of business in government. The former chairman of the board and chief executive officer of Kellogg Company, Secretary Gutierrez is a core member of President Bush’s Economic Team. As co-chair for the Commission for Assistance to a Free Cuba, Secretary Gutierrez is actively involved in U.S.–Cuba policy. He sees Cuba at a critical point in time, poised for democratic change. He is a strong advocate for the Bush Administration’s policy of helping the Cuban people hasten the day of their freedom from dictatorship. Secretary Gutierrez is also one of the President’s point men working with Congress to pass comprehensive immigration legislation, an issue he sees as one of the greatest domestic social issues of our time. Securing the border, a temporary worker program to ease labor shortages, and a hard-earned path to citizenship are the main elements needed in a broad immigration bill. A top priority for Secretary Gutierrez is prying open global markets for U.S. companies so they can continue innovating and competing to build a stronger American economy. He believes passionately in President Bush’s vision of a 21st century where America is the best country in the world to do business with and where everyone has the opportunity to experience the joy and pride of living the American Dream. Secretary Gutierrez oversees a diverse Cabinet agency with some 38,000 workers and a $6.5 billion budget focused on promoting American business at home and abroad. His Department gathers vast quantities of economic and demographic data to measure the health and vitality of the economy; promotes U.S. exports; enforces international trade agreements; regulates the export of sensitive goods and technologies; issues patents and trademarks; protects intellectual property; forecasts the weather; conducts oceanic and atmospheric research, provides stewardship over living marine resources; develops and applies technology, measurements and standards; formulates telecommunications and technology policy; fosters minority business development; and promotes economic growth in distressed communities. Secretary Gutierrez was sworn into office on February 7, 2005. Born in Havana, Cuba in 1953, he came to the United States with his family in 1960. In 1975 he joined Kellogg as a sales representative. Rising to president and chief executive officer in 1999, he was the youngest CEO in the company’s nearly 100-year history. In April 2000, he was named chairman of the Board of Kellogg Company. Secretary Gutierrez studied business administration at the Monterrey Institute of Technology in Queretaro, Mexico. Jay F. Hein Jay F. Hein was named deputy assistant to the President and director of the Office of Faith-Based and Community Initiatives on August 3, 2006. He is the founding president of the Sagamore Institute for Policy Research, an international public policy research firm headquartered in Indianapolis, Indiana. Mr. Hein also served as vice president and chief executive officer of the Foundation for American Renewal, a public charity established by Ambassador Daniel R. Coats. Prior to the Sagamore Institute, he was executive director of Civil Society Programs at Hudson Institute, including the Welfare Policy Center, the Faith in Communities Initiative, community-based healthcare reform and the director of Hudson’s field office in Madison, Wisconsin, where he conducted hands-on research and analysis in support of the State’s welfare reforms. He also served in Wisconsin State government as a policy director. In both of these roles, Mr. Hein helped design and implement Wisconsin’s ground-breaking welfare replacement program. Dana Ingram In 2000, Dana Ingram founded JCVision and Associates, a faith-based housing and financial service organization with the goal of helping people free themselves of debt and achieve financial independence. She currently serves as executive director. In its first year, JCVision served approximately 500 people and had a budget of less than $100,000. In 2002, the organization won its first Federal award—a $99,988 Fair Housing Initiatives Program grant from Stephen Jordan Stephen Jordan is senior vice president and executive director of the Business Civic Leadership Center (BCLC), a nonprofit affiliate of the U.S. Chamber of Commerce (formerly known as the Center for Corporate Citizenship), and has served in this capacity since he co-founded the organization in May 2000. BCLC’s mission is to advance the positive role of business in society. In his current position, Mr. Jordan works with a broad spectrum of companies and American chambers of commerce in the United States and overseas. He has written, lectured, and produced numerous conferences, policy papers, and other projects and programs related to the fields of business-society relations and public private partnerships, and on specific issues such as community economic development, disaster assistance and reconstruction, global development, and ethics and governance. Before starting BCLC, Mr. Jordan served as executive director of the Association of American Chambers of Commerce in Latin America. Previously, he worked in the publishing industry for K-3 Communications and as a legislative assistant in the U.S. Senate. He serves on the advisory boards of the Council for Corporate and School Partnerships, the New World Institute, and the Southern Business Leadership Council. He holds an MBA from Georgetown University and an MA in Political and Social Thought from the University of Virginia with high academic honors from both institutions. George McDonald George McDonald is the president of The Doe Fund, the nonprofit organization he founded in 1985 in response to the mounting homeless crisis in New York City. In addition to heading The Doe Fund, Mr. McDonald has also been one of New York City’s most vocal and tireless advocates on behalf of the homeless for the past 20 years. Mr. McDonald served on the Mayor’s Commission of the Homeless which published “The Way Home,” a comprehensive plan for solving the homeless crisis in New York City. Mr. McDonald also founded the Way Home Coalition, an assemblage of service providers organized to coordinate New York City’s continuum of care for the homeless and has been appointed a member of the New York State Office of Mental Health Housing Task Force and the New York City Council’s Legislative Advisory Commission on Homelessness. Mr. McDonald serves as co-chair of the Employment Committee for New York City’s Discharge Planning Initiative between the New York City Department of Correction and the Department of Homeless Services. He is a member of the New York City Workforce Investment Board Prisoner Reentry Steering Committee and the Chairman of the New York State Independent Committee on Reentry and Employment. Sengsouvanh Soukamneuth Sengsouvanh (Sukey) Soukamneuth is a social scientist and a member of Social Policy Research Associates’ (SPR) corporate management team. She has specialized expertise in youth development, multicultural education, community partnerships, and foundation grantmaking. She has directed a range of projects at SPR, including a national capacity building project to connect Job Corps Centers with the One-Stop Career Centers, a study on youth activism for the Ford Foundation, and an Evaluation of the Youth Opportunity Grants for the Department of Labor, among others. In addition to her research expertise, Ms. Soukamneuth provides consultations to foundations on effective grantmaking practices, and is an experienced trainer on building partnerships among youth service providers, facilitating strategic planning sessions, and conducting organizational self-assessments. Ms. Soukamneuth received a M.A. in Education from the University of California, Los Angeles and a B.A. in Political Science from Bates College. Stephen M. Wing Stephen M. Wing is director of government programs for CVS Corporation. He has been in the drug store business for over 32 years and has devoted the last 17 to working with government agencies, nontraditional employment organizations, and faith-based institutions in recruiting targeted groups of people for employment. Wing has assisted CVS in developing cutting-edge programs such as the One-Stop/CVS Regional Learning Center design in Washington, DC and the Cassadaga Job Corps Pharmacy Technician Program, which have both received national attention. Under Wing’s leadership, CVS’ Government Programs Division has taken an active role in Welfare to Work and Faith-based Initiatives. Since November 1996, CVS has hired over 50,000 people living in poverty who effectively went off public assistance. Wing serves on the NCOA Leadership Council, the Columbia University School of Social Work Advisory Board, the Cuyahoga County/City of Cleveland Workforce Investment Board, and the University of Virginia Continuing Education Advisory Board. He is on the board of directors for the Institute for Competitive Workforce and Corporate Voices for Working Families. He holds a B.S. degree in Education from Winona State University. Mary Wong Mary Wong was named president of the Office Depot Foundation in 2007 after serving as director of Community Relations for Office Depot since 2000. Under her direction, Office Depot has built an internationally respected program that was recognized in 2004 with the Corporate Stewardship Award for Large Businesses from the U.S. Chamber of Commerce’s Business Civic Leadership Center. Her tenure includes creation of the Office Depot Foundation National Backpack Program, through which more than one million backpacks containing basic school supplies have been donated to disadvantaged children since 2001. Ms. Wong is a frequent speaker to non-profit organizations and business groups, including the U.S. Chamber of Commerce Education and Workforce Summit and the U.S. Chamber Business Civic Leadership Center’s Disaster Assistance and Recovery Forum. She serves on the board of directors of the U.S. Chamber of Commerce Institute for a Competitive Workforce and the National Advisory Board of the National Recovery Fund of the U.S. Chamber of Commerce Business Civic Leadership Center, where she chairs the Working Group for Support of Business Recovery. She is a member of the White House Disaster Assistance Recovery and Volunteerism Committee. She also serves on the board of directors of Corporate Voices for Working Families, Women That Win, the Donors Forum of South Florida, and is a member of the Economic Council of Palm Beach County.
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