Strengthening Clusters Virtually

The last post referred to how clusters strengthen neighborhoods. This article builds on that concept, however from a technology perspective.

The State of Oregon has partnered with a crowd funding resource to help small businesses obtain funding. This is not free money. Start ups are eligible. Companies must obtain an endorsement. The entity endorsing the company vouches for it. The loan is offered at zero percent interest, but must be repaid in a specific time frame. Funding comes from many sources. An investor can contribute a very small amount if desired. This is a good resource for companies or nonprofits that need capital, but it requires the company to have a solid business plan to ensure the loan will be repaid.

There is also an entity in Oregon that is fee based. This allows companies and nonprofits to come together and help each other. The average loan is $6700.00. Like any other service there is a structure and a process.

Now lets apply these two discoveries to the concept of clusters. What if churches, groups of like-minded nonprofits or businesses shared resources. Imagine a virtual market place which could strengthen your cluster can use to obtain goods and services, small amounts of financing for capital needs or shared consulting services.  Eighty percent of wage earners in Oregon are employed by small businesses. A strong local infrastructure based on clusters is one method.

Cyber Attack: How We Landed on Both Feet

On Thursday our computer was infected with a Trojan virus. Our IT guy used a work around strategy to restore all functionality in short order. This is just one example of our business continuity efforts to safeguard information and remain operational under adverse conditions. BUSINESS CONTINUITY-Here is the metric for our three year strategic plan. Implement Safety Measures and Work Toward a Succession Plan to Ensure Continued Operations Under Adverse Conditions. Each year we have a set of goals that propels us forward. Our goals for this planning period include 1.Verifying that vendors have a business continuity plan; 2.IT security; and 3.Succession plans. For each goal we have a specific objective each year to strengthen our plan and reduce our vulnerability.

Grant Information for Secular Nonprofits

The last post was specific to faith-based organizations, yet most of the guidance also applies to secular nonprofits, so it is worth reviewing. This post focuses on the importance of understanding grant writing requirements and managing the fundamental processes needed to apply for a grant.

Before applying for a grant make sure you have set a foundation for success. Here are a few obstacles other organizations have encountered. The Board of one nonprofit start up delegated filing the nonprofit paperwork a board member. Most grants are submitted electronically. In some cases there is a built in process to cross reference the federal tax identification number to verify IRS nonprofit status. After three unsuccessful attempts, the message indicated the organization was not found in the IRS database, so it was impossible to proceed. After a brief investigation the Board learned the paperwork had not been filed. They also had made requests for donations stating they were a nonprofit organization (believing they were). Fortuneately they took prompt action to remedy the situation, and before their event took place their nonprofit status was granted. They also had a back up plan that would have worked if their nonprofit status hadn't come through in time.

Another organization had a small development team and a heavy workload. Although they had been operational for decades, received many grants and were part of a huge parent organization, they needed to adapt to changes in technology. Filing paper grants is rarely done, so they had to assemble necessary and customary documents in an electronic format.

The most difficult situation was a nonprofit that had obtained only one small grant in the past four years, and wanted a large capacity building grant. Consulting is often a prerequisite to successful grant funding. The Board struggled with fundamentals. They had no business plan at all, and only a vague idea of their goals. They were able to identify their funding needs, but had not established a track record and lacked the skills to manage a project timeline. They could not demonstrate other project support which is often an expectation. They did receive one small grant, but did not keep their end of the agreement. This lead to a reorganization of the Board and hiring someone with the expertise to help reposition them for success.

These observations are not intended as criticism, but they do highlight lessons learned. Understand the requirements and make sure the fundamentals are in place before applying for a grant.
The next post will be Five Websites to Review.