Nonprofit Transitions Fund

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 closing. Growth used to be a barometer of success. In the current economic climate, adaptability is a more pertinent measure.

The answers are not that there are too many small groups, or the larger organizations aren’t as nimble as they should be. The San Francisco Foundation wants to enable strategic restructuring so regional nonprofits can emerge healthier and more sustainable long term. In the short term, these efforts can produce efficiencies and economies of scale, and at the same time improve programming and service delivery.

Supporting Intentional Change

Our Nonprofit Transitions Fund helps 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. $500,000 will support serious planning efforts, consultants, due diligence, and other expenses related specifically to the following activities:

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

The Nonprofit Transitions Fund will not fund capacity building and capital campaign applications.

Eligibility

Grant funds will be awarded on a competitive basis. Organizations with a current Nonprofit Transitions Fund grant are not eligible to apply.  All other organizations, including those with a current grant or one under consideration in a different Program Area, are welcome to apply if their application fits the specific guidelines outlined for the Nonprofit Transitions Fund. Additionally, inquiring organizations must:

• have 501(c)(3) nonprofit status (or a fiscal sponsor);
• impact residents in at least one of the five Bay Area counties we serve: Alameda, Contra Costa, Marin, San Francisco, and San Mateo; 
• be invested in projects above and beyond the scope of their regular work;
• be aligned with one or more of the Foundation’s program areas: Arts and Culture,  Community Development, Community Health, Education, Environment, FAITHS, or Koshland;
• be able to submit an IRS 990 tax form for all parties involved in a merger or acquisition; and
• be able to submit a simple three-year budget history for all parties involved in a merger or acquisition.

Process

The application cycle closed on Monday, September 12, 2011. Grants will generally range from $10,000 to $30,000.

Successful proposals will provide a detailed assessment of key considerations including:

• Evidence of buy-in from staff, board, and constituencies
• Clear and realistic expectations of benefits/risks
• What niche/role your organization(s) serves in local and regional needs
• Mission compatibility
• 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

Timeline

Valid tax exempt status: 501(c)(3), public entity, or fiscal sponsor

The Foundation only makes grants to organizations with 501(c)(3) tax status or to government entities. If your organization does not have tax exempt status, you must apply using a fiscal sponsor.

Geographic restriction

Projects must benefit residents in at least one of the five Bay Area counties we serve: Alameda, Contra Costa, Marin, San Francisco, and San Mateo. If an organization is based outside these five counties, the total number of constituents benefiting from service must be competitive with local organizations.

For more information

Please contact Tara Wilson at 415.733.8527 or nptfund@sff.org or Anna Karrer Manley at 415.733.8562 or aek@sff.org.