© 2010. National Council on AgingA non-profit service and advocacy organization

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Improving the lives of older Americans

Business Planning as a Tool for Financial Sustainability AoA Resource Center Webinar

July 20, 2011

© 2010. National Council on AgingA non-profit service and advocacy organization

Agenda“Business Planning as a Tool for Financial Sustainability”

Illinois and New York will discuss how to build relationships with potential funders; Use business planning tools to seek external resources; Provide key marketing messages for potential funders; and Share challenges/lessons learned in implementing business/financial sustainability plans.

Opening Slide - Business Planning Module On-line• Sue Lachenmayr/Kristie Patton

Illinois Department of Health • Rhonda Clancy

New York Center for Excellence in Aging Services - University at Albany, School of Social Welfare

• Phil McCallionQ &A – all participants (20-25 minutes)

© 2010. National Council on AgingA non-profit service and advocacy organization

Business Planning Module On-line

The online educational module entitled: Creating a Business Plan for Evidence-based Health Promotion Programs is available at: http://www.healthyagingprograms.org/captivate/mainindexThe business plan template will help you create your own business plan. Each section contains suggestions for things to consider, but you should adapt the template to fit your own needs.

Illinois Sustainability Planning

Rhonda Clancy, M.S.ARRA: CDSMP CoordinatorIllinois Department of Public Health

Initial Focus

Partner with Illinois Department on Aging (IDoA)

Planning early in grant cycle

Provide support and technical assistance

Define “sustainability”

Partner w-IDoA

Took lead on coordination

Contacted separate entity to provide over view and brief training-2 parts; IllinoisResource Net

Corresponded with all aging-public health network grantees

Plan Early in Grant Cycle

Sustainability should begin immediatelyPlan now, update as neededAll grantees (10 AAAs and three others) required to create a planAddressed during site visits and update callsLearned from each other

Support and Technical Assistance

IllinoisResource Net

IDoA

Two webinars; one planning, one doing

Support…..Sustainability Planning Sheet— Use information provided first webinar to complete this two-page assessment.

Sections on financial, community and organizational sources of support that exist in your service area(s).

Take time to talk with partners, co-workers and staff in order to complete as accurately as possible.

For final Plan, need to provide details of how each of the checked area(s) will support sustaining CDSMP.

Defining SustainabilityKeeping your intervention(s) going when resources and funding are gone or limited!

Three components:*organizational*community

*financialOrganizational

FinancialCommunity

Planning……..1st webinarUse information to complete two-page assessment. Describe what could be thought of as organizational,

community and financial sources of support. Discussed how to talk with partners, co-workers and

staff to obtain their input.Explained how for the final Plan, grantees would provide

details of how each item they checked will support sustaining CDSMP.

Organizational……..Your organization should seek potential sources of organizational support tosustain CDSMP after March 31, 2012. Please check sources you plan topursue:

_____ Established mission, goals and objectives for communities served

_____ Interventions/activities “fit” with mission and tasks

_____ Line item in budget devoted to efforts

_____ Management support of efforts

_____ Interventions embedded into menu of services offered

_____ Staff time dedicated to efforts

_____ Established local partnership/coalition to support efforts

_____ System in place to acquire needed program materials, resources, etc…

_____ Effective marketing techniques in place and used

_____ Sustainability plan written and shared with partners

Community……..Your organization should seek potential sources of community supportsustain CDSMP after March 31, 2012. Please check sources you plan topursue:

______ Reliable local partnerships with vested program interest and commitment

_____ Pool of reliable and committed Master Trainers, class leaders, etc…

_____ Community capacity to maintain the established delivery system

_____ Institutionalization (embedding) of activities within local partner’s systems

_____ Program champion in community

_____ Support from community leaders (mayors, etc…)

_____ Interventions accessible to majority of target populations

_____ Political/advocacy support

_____ Other ______________________________________

Financial…..Your organization should seek potential sources of revenue other than AoA/ARRA funds tosustain CDSMP after March 31, 2012. Please check sources you plan to pursue:

_____ Title Funding/Older American’s Act

_____ Philanthropic/charitable organizations

_____ Third party funding

_____ Pursuing Medicaid reimbursement

_____ Healthcare organizations (VA, FQHC, etc…)

_____ Senior housing (state housing funds, HUD-sponsored grants, etc…)

_____ Employers (work sites, local health departments)

_____ Continuing education (community college support, Lifelong Learning Institutes)

_____ Advocacy strategies (working to pass legislation, etc…)

_____ Bequest marketing (acquisition of estate and late-life transfers of assets)

_____ Fee for service

_____ In-Kind support

_____ Other _____________________________________

The Plan2nd webinar, one month later

Focused on providing technical assistance tocomplete the Plan (i.e. detail the check marks).

You will use items checked on the Sustainability Planning Sheet to elaborate on how each of the items in each category will support sustaining CDSMP.

Examples provided on the webinar.

Sample Plan SheetTHIS PROVIDES AN EXAMPLE TO COMPLETE SECTIONS I-III.

I. Sources of Revenue-describe exactly how funds from the following sources will be used to sustain interventions.

A. Philanthropic/Charitable Organizations (list)1) The ABC Group is non-profit and memorials are routinely made to support existing programs. Five percent of each memorial will be used to support CDSMP efforts of the XYZ Area Agency on Aging. 2) The Tiger’s Club will donate two percent of their annual fund-raiser to support CDSMP efforts of the XYZ Area Agency on Aging. 3) The XYZ Area Agency on Aging Sustainability Committee will explore potential funding from various Foundations and groups.4) The local newspaper will continue to highlight CDSMP offerings free of charge.

B. Continuing Education (community college support, learning institutes)

1) Southern View Community College will maintain at least three CDSMP lay leaders, provide space for workshops and market workshops to students and the community.

2) Logan College will offer space for CDSMP workshops to be held and place promotional flyers around campus.

Sustainability is….

On-going

Evolving

Beneficial

And, yes—time consuming!! At first…..

For More InformationForms-planning sheet and sample plan

www.healthyagingprograms.org 2011 Grantee Meeting Materials ConcurrentSession Resources Business Planning and Sustainability 3 Illinois Tools listed

Rhonda.clancy@illinois.gov 217.782.3300

CDSMP Business Planning and Sustainability 

July 20th, 2011Philip McCallion

NYS Quality & Technical Assistance Center

Key business Planning Issues

Market Need

Alternatives

‘Go to Market’ Strategy

Management Team

Service Delivery & Execution

Financing & Resource needs

Right‐sizing & Leverage

Sustainability

Exit Plan

Market Needs

Who are the customers for your product? Participants/buyers/funders

How will CDSMP delivery meet identified needs (of participants and of potential funders)?

Why is CDSMP delivery better than alternatives from the customer’s perspective (participants or potential funders)? 

What will compel participants or potential funders to buy/attend/support?

Alternatives

How is need being satisfied or addressed today?Who is competing for the same funding for a similar type of intervention?Who is competing for the same funding for a very different type of intervention?What capacity exists in the same communities for alternative programs?Why would more than one program be successful and/or needed?

Go to Market

Why is the plan (the delivery sites, the marketing plan, the sales message) the best / most logical/ most effective? 

Management

What talent / expertise is needed to deliver sustain CDSMP delivery?

What staff and what level of experience are available?

How will you attract, share AND retain that talent?

Begin with needs, then align the talent ‐ Don’t start with people available

How might staffing this program be combined with staffing for other programs – what are the pros and cons?

What’s the back‐up if a staffing partner leaves?

Delivery and Execution

Marketing (Mass, targeted, media)

Referral process (who makes, who manages)

Establishing classes (location, timing, leaders)

Data collection and reporting requirements

Delivery & Execution Cont.

Management of Program‐wide and individual workshop program fidelity:‐Which aspects of the CDSMP delivery model are most critical?‐Which aspects need to be done well and which ones exceptionally well?‐Which aspects, if done marginally, could sink sustainability of CDSMP delivery?

Financing  & Resources 

Who pays what and why?Specific participant groupsWhy is cost reasonable?Volume

Initial, Ramp up rate

Cost StructureDelivery costsDistribution CostsMarketing CostsSupport Costs

Finding Funds/Resources

What are foundations/United Way looking for in projects?What other grant funding sources are possible?What is the fit for OAA and state funded aging services?What new funding streams are out there: Healthy Aging/Health Communities, Medicare, PCMH, HCRA, reducing re‐admissions,….

Right sizing and leverage

Building a level of delivery that is possible and sustainable

Building a level of delivery sufficiently robust to leverage referrals and resources  

Sustainability

Grants don’t last foreverMinimum reimbursement needed to be viable over long termCombination of volunteer effort, existing staffing and resources and reimbursement needed to be viable over long termWhat leverage exists with others to embed referral process, manage scheduling and staff classes?

An exit plan

When good ideas don’t work

When partners leave

When competitors succeed

When ramp‐up doesn’t happen

When there is a dramatic change in the resource and/or policy environment

When do challenges become insurmountable? 

Questions?

For More Information:The New York State 

Chronic Disease Self Management Program

Quality and Technical Assistance Center

877‐496‐2780

QTAC@albany.edu