Nonprofit Transitions Fund Supports Intentional Change - Applications due October 26th

The Nonprofit Transitions Fund has been created to help organizations rethink and regroup in response to the downturn in the economy. The goal of the Nonprofit Transitions Fund is to help nonprofits reduce costs and time spent on administrative work, as well as increase productivity. $350,000 will support serious planning efforts, consultants, due diligence, and other expenses related to the following activities:

• Back office collaborations between two or more organizations (including rent, equipment, and group insurance joint purchasing, as well as centralizing human resources, payroll, benefits administration, and financial and grants management)
• Service delivery joint ventures between two or more organizations
• Merger/acquisition/consolidation
• Post-merger integration or closure costs
• Dissolution (voluntary/involuntary)
• Bankruptcy

This fund is intended for activities such as strategic planning and fund development. It is not intended for organizations engaging in staff transitions, capacity building work (such as streamlining internal operations), and/or establishing fiscal sponsorship. For these activities, please refer to our general Application Guidelines.

Though June 2009, 14 organizations received $313,000 to support activities including facilitating merger negotiations, transitioning from a staffed to a volunteer-run organization, and streamlining marketing, financial, and other efforts between multiple organizations.

Eligibility

• Inquiring organizations must have 501(c)(3) nonprofit status (or a fiscal sponsor) and must primarily serve residents in at least one of the five Bay Area counties we serve: Alameda, Contra Costa, Marin, San Francisco, and San Mateo.
• Requests will only be considered from organizations that have received programmatic or operational support from The San Francisco Foundation within the last five years.
• Inquiring organizations must apply for projects above and beyond the scope of their regular, ongoing work.

Process

Program Officers will review inquiries and invite selected organizations to apply for support by submitting a proposal detailing key considerations including:

• Evidence of buy-in from staff, board, and constituencies
• Clear and realistic expectations of benefits/risks
• What niche/role organization(s) serves in local and regional needs
• Mission compatibility
• Relative competitive position
• Financial strengths
• Cultural fit, including board and staff compatibility
• Awareness of obstacles such as asset restrictions, endowment/bequest issues, current liabilities, deferred revenue, and other legal barriers

Grants will generally range from $10,000 to $30,000. To be considered for a grant, please complete and submit your proposal online at The San Francisco Foundation’s Grantee Center.

Timeline

To be considered for funding, please submit your proposal online by Monday, October 26, 2009. You will be notified by November 16, 2009, if you have been encouraged to apply. Encouraged proposals will be due December 7, 2009, with funds allocated in early January 2010. Our goal is to distribute funds to selected grantees within six weeks of encouraged proposal submission.

For more information

Please contact John Killacky at 415.733.8523 or jrk@sff.org.

Background

While Bay Area nonprofits have been resilient, and even grew during recent recessions, the scale and scope of the current downturn is clearly different. Given the tumultuous economy, many organizations are rethinking operations in order to continue delivering mission-related programs. Some face hard decisions about streamlining, merging, consolidating, or even sunsetting. Growth used to be a barometer of success. In the current economic climate, adaptability is a more pertinent measure.

While in some cases, downsizing may be inevitable, The San Francisco Foundation wants to enable strategic restructuring so regional nonprofits can preserve the delivery of services and programs that are vital to our community. Our goal is for the sector to emerge healthier and more sustainable long-term. Short-term, these efforts can produce efficiencies and economies of scale, and hopefully enhance programming and service delivery.