the art of resource development

The Art of Resource Development

Strategic Sourcing, Partnership

Development, and Issues Marketing

Paradigm Shift

1. In tough economic times, a different perspective is needed.

2. An agency’s annual budget details allocated cost for projected expenditures.

3. If we know the bottom line and the potential shortfall, then we how much revenue is needed.

4. The paradigm shifts from trying to generate revenue to developing alternative resources.

5. The strategy is to apply equivalent dollar value in place of actual revenue, and then diversify development.

1.

Historical Perspective

On January 6, 2000, after many years of poor management and benign neglect, the Chicago Housing Authority submitted a ten‑year strategic plan to the U.S. Department of Housing and Urban Development outlining major program changes, policy directions, and organizational initiatives required to transform Chicago's public housing system.

The Plan for Transformation, approved by HUD on February 6, 2000, outlined a strategy for rebuilding Chicago’s distressed public housing communities placing into motion a vision for change.

CHA’s Plan for Transformation

2000 - 2005 The Plan for Transformation incorporated the following core commitments:

$1.5 billion to create, 25.000 new or rehabbed housing units, enough for those residents who were lease‑compliant as of 10/1/99.

Creation of affordable housing developments that incorporated attractive, mixed‑income communities.

Redesigning neighborhoods so children, families and economic opportunities could flourish ‑ and gangs and drugs crumble.

Assuring that CHA residents received access to essential supportive services

Reducing duplicative administrative costs.

The CHA’s Plan for Transformation required the creation of an aggressive resource development strategy. A strategy that would increase funding for needed resident services and community development.

The CHA committed to increasing outside funding sources by $50 million over a five-year period, to enhance the level of services being provided to CHA residents.

To accomplish this, a special department, Resource Development, was established to address unfunded components essential to the plan’s successful implementation.

Recognize Sourcing Opportunity

Consider the Environment

1. Review the various funding conditions, cycles, sources, trends and mechanisms available, then consider their potential impact as you design your resource development strategy.

2. Conduct an annual needs assessment to determine funding gaps related to your organization’s strategic plan.

3. Analyze the funding mechanisms, e.g. corporate contributions, public/private funding requests, voluntary service hours, donor events/campaigns, social enterprises, etc. then estimate percentages to optimize and diversify the development strategy.

Consider the Environment

4. From the Gap Analysis, create fundable projects and strategically align them with issue areas and funding mechanisms.

5. Develop a creditable approach for sourcing: e.g. social investment, strategic alliances, public awareness campaign, improved good will, stakeholder engagement, cost/benefit analysis, or innovation.

6. Source projects.

Define the Strategy

A. Public/Private Partnerships

B. Corporate Solicitation/Valuation

C. Volunteer Management

Partnership Development

When there is a shared vision, agenda and challenges there can be strategic alliances & shared resources.

Results used sponsorship, collaborative ventures, fund redistribution and/or leveraging of resources. Examples included:

Community Partnership InitiativeCorporate Partners ProgramUniversity Partnerships

Committed Partners

The Chicago Housing Authority (CHA) approached agencies, businesses, and industries serving the Chicago metropolitan community area.

and the CHA

Shared Vision

The CHA’s External

Partnerships encouraged

direct social investment, community involvement andcorporate ownership

and a shared commitment to transforming public housing conditions and neighborhoods.

North Town VillageNorth Town Village

Shared Agendas

Chicago’s redevelopment plans included a renovated stadium, Soldiers Field, the home of the Chicago Bears, and the CHA

proposed Lakefront Properties, Jazz on the Boulevard and Lake Park Crescent.

Shared Agendas

The Chicago Bears worked with the Chicago Park District to renovate Soldiers Field, and the CHA redeveloped its Lakefront

Properties, Jazz on the Boulevard and Lake Park Crescent.

Ultimately, the shared agenda resulted in the Chicago Bears donating the skybox furnishings and team equipment to CHA for resale and/or use in their

Senior Buildings’ recreational areas

Shared Challenges

Building new communities Creating new opportunities Investing in the next generation

Making life Making life betterbetter

Volunteers

Issue Marketing

Applying a marketing approach helps to lead the development process, which should involve customers, partners, and other stakeholders to shape the right offers for the right target segments.

Foundation PartnerMacArthur Foundation

IssuePublic Housing

Public Agency Partners

HUD, NEA & NGCSA

IssueArts Education

Nonprofit PartnerKaBoom!

IssueAppropriate Play Environments

Corporate PartnerChicago Bears

IssueUnderprivileged Youth

Issues = Initiatives

Chicago Bears Care Chicago Bears Care CampaignCampaign

Christmas Toy GiveawayChristmas Toy Giveaway

KaBoom! KaBoom!

Playground BuildsPlayground Builds

HUD, NEAHUD, NEA & the National Guild of Community & the National Guild of Community Schools of the ArtsSchools of the Arts

Creative CommunitiesCreative Communities

Strategic Sourcing

Through a combination of technical assistance and foundation support amounting to approximately $1,400,000, the CHA was able to acquire needed equipment, software and consulting services ensuring client confidentiality, security and data integrity to support the CHA’s housing relocation process.

This funding was then used to leverage nearly $900,000 worth of public sector funding making it possible to incorporate innovative multi-media enhancements, foster interagency data exchange and further expand the agency’s wide area network in support of public housing residents.

TheRightMovesNet

Increased access to reliable public housing information

More digital funding opportunities

Better technical skills

Evaluate the Strategy

$50.00

$40.53

$16.13

$0 $10 $20 $30 $40 $50

(Millions)

CHA New ResourcesFY2002

CHA New ResourcesFY2000-FY2002

Goal by 2005

New ResourcesFY2000-FY2002

(in millions)

Track new market penetration, competitive positioning, related development, and other strategic metrics.

Questions ?

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