2009 Operating Support Grants

2009 Core Operating Support Grants

In early 2009, MMT began hearing nonprofits’ concerns about the impact the abrupt economic downturn was having on their organizations’ stability. Donations were decreasing, event revenue was not meeting projections, corporate sponsors were decreasing contributions or pulling out entirely, and foundations were reducing or suspending giving. At the same time, human service organizations were experiencing increased demand for services.

In response to the emerging impact the sliding economy was having on the nonprofit sector, MMT allocated up to $1 million for a 2009 Operating Fund program to provide small- and mid-sized organizations whose stability is jeopardized due to the economic downturn with a cash infusion to provide critical support in weathering the economic storm. The program was designed to offer two rounds of funding (spring and fall 2009) and to make awards of up to $50,000 each. Organizations that had received an MMT Responsive Grant within the past five years (and had, therefore, recently gone through MMT’s due diligence process), were in good standing with MMT, and had annual operating budgets of between $50,000 and $3 million were eligible to apply.

By relying on the outcome of due diligence in the recent past and not conducting site visits, MMT was able to quickly get Operating Funds out the door – within approximately 10 to 12 weeks of the application deadline. Most applicants could identify some level of negative impact due to the economic downturn. Many had compelling stories. However, in order to honor the intent of the Operating Fund and to maintain MMT’s commitment to highest and best use of funds, the program team thoughtfully weighed the following factors in assessing applications:

• The organization plays a critical role in its community
• The organization’s stability is at risk – financially and/or its ability to meet its mission
• The organization’s financial challenges have a significant economy-related component
• The organization’s leadership has taken strategic and prompt actions to address their situation in the changing economic climate
• An award of $50,000 would likely have meaningful impact on the organization’s situation over the coming year
• An MMT operating grant would help protect/enhance MMT’s current/prior investments in the organization

The strongest proposals provided clear information about the organization's critical role in its respective community and the impact of service reductions on the community. They presented clear and complete information about the organization's financial situation and specific details about the impact of the economic downturn on their revenues. They also provided clear descriptons of the steps and decisions their leadership has made to better align revenue and expenses.

In June 2009, MMT awarded Operating Funds totaling $407,000 to nine of the 53 organizations that applied:

• Arts Central (Bend) – $50,000
• CASA of Lane County (Springfield) – $50,000
• Clackamas Community Land Trust (Milwaukie) – $40,000
• Columbia Arts (Hood River) – $18,000
• Deschutes County Children’s Foundation (Bend) – $49,000
• Hacienda Community Development Corporation (Portland) – $50,000
• Housecall Providers (Portland) – $50,000
• MountainStar Family Relief Nursery (Bend) – $50,000
• Portland Institute for Contemporary Art (Portland) – $50,000

In December 2009, MMT awarded Operating Funds grants to 12 of 42 organizations that applied, awarding $650,000:

• Albany Community After School Program (Albany) – $50,000
• Birth to Three (Eugene) – $50,000
• Children First for Oregon (Portland) – $50,000
• Children’s Justice Alliance (Portland) – $50,000
• Essential Health Clinic (Hillsboro) – $50,000
• KIDS Intervention and Diagnostics Service Center (Bend) – $50,000
• Oregon Foundation for Reproductive Health (Portland) – $50,000
• Raphael House (Portland) – $50,000
• Southwest Community Health Center (Portland) – $50,000
• Technical Assistance for Community Services (Portland) – $50,000
• Tillamook County Women’s Resource Center (Tillamook) – $50,000
• Womenspace (Eugene) – $50,000

The purpose of this initiative was organizational stability. Some of the applications revealed other issues:

• a cash infusion was not critical to stability, but the organization requested funds to maintain or expand current programming
• the organization faced a significantly more complex financial situation than challenges due to the changing economic conditions
• a larger amount of operating funds were needed to have a meaningful impact

Organizations with those circumstances can apply for core support funding through MMT's Responsive and Grassroots Grants programs.

MMT will continue to monitor economic conditions and the impact on the nonprofit sector and may consider similar future funding opportunities.