Real Estate Readiness: A Workshop Series for Arts and Culture Nonprofits Movimiento de Arte y Cultura Latino Americana in downtown San Jose Stephaney Kipple Presented by : Andrea Papanastassiou The Northern California Community Loan Fund Jack Tse May 24, 2015
AGENDA • Introduction • Organizational and Staff Capacity • Financial Capacity • Location and Geographic Considerations • Space Planning • Survey Tool • Closing Comments and Questions Financial Space 2 Organizational Introduction Location Closing Capacity Capacity Planning
Mission NCCLF promotes economic justice and alleviates poverty by increasing the financial resilience and sustainability of nonprofits and enterprises. Through flexible financial products and sound advice, we create opportunities to make socially responsible investments that revitalize Northern California communities. Vision NCCLF envisions financially strong and culturally vibrant communities where each person has access to decent jobs, homes, health care, education, and economic opportunities. We work in partnership with individuals and organizations who share our vision of sustainable communities and social and economic justice. 3
NCCLF OVERVIEW Investing in opportunity, together. Socially Lending Policy Responsible Consulting & Investing NMTC Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
NCCLF OVERVIEW NCCLF CONSULTING & TRAINING PROGRAM Helping nonprofits use their resources strategically Real Estate Consulting Workshops and individual consulting engagements that help nonprofits manage their real estate resources. – Lease vs. Buy Analysis – NMTC Feasibility Analysis – Facility Strategic Planning – Real Estate Coaching Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
NCCLF OVERVIEW NCCLF CONSULTING & TRAINING PROGRAM Helping nonprofits use their resources strategically Financial Management Consulting Workshops and individual consulting engagements that strengthen the financial management capacity of nonprofit leadership. – Financial Assessments – Business Model Optimization – Budget Development – Cash Flow Management – Financial Education Financial Space Organizational 6 Introduction Location Closing Capacity Capacity Planning
MISSION FIRST, THEN REAL ESTATE Neighborhood Impact Building Business Plan / Outcomes Programs Mission / Vision Financial Space Organizational 7 Introduction Location Closing Capacity Capacity Planning
DEVELOPMENT PROCESS Feasibility & Real Estate Facility Pre- Project Readiness Strategic Development Management Planning Before Space is After Space is Secure Secure Financial Space Organizational 8 Introduction Location Closing Capacity Capacity Planning
REAL ESTATE READINESS • Organizational, Staff, and Board Capacity • Financial Capacity • Property/Asset Management NCCLF provided Flight Deck/Ragged Wing ensemble with Financial Management and Capacity coaching. Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
FACILITY STRATEGIC PLAN • What do you need? What is your plan? • Location Considerations • Space planning • Program uses: current, ideal, and minimum • Lease vs. Buy Analysis • Lease negotiations/purchase agreements NCCLF provided consulting services for the space planning, site selection, financing for Girls, Inc’s Simpson Center. Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
PREDEVELOPMENT • Securing Space • Financing Options • Planning (A&E) NCCLF provided consulting services to Destiny Arts; assisting in Financial Assessment ,Space Planning and Acquisition consulting for the organization. NCCLF also provided financing for the purchase of their building. Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
PROJECT MANAGEMENT • Design Coordination • Construction Bidding • Construction Management • Reporting to and Compliance with Funders Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
REAL ESTATE READINESS What is your capacity? • Look through three different lenses: – Organizational Capacity – Staff & Board Capacity – Financial Capacity Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
ORGANIZATIONAL CAPACITY • Clear Mission, Vision & Strategy? • Governance & Leadership? • Business Plan for the Future? • Strategic Relationships? • Systems & Staffing for: • Program Delivery? • Impact Measurement? • Resource Development? • Internal Operations & Management? Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
ORGANIZATIONAL CAPACITY What stage is your organization in? Start - Up Growing Maturity Programs begin to Core programs Simple Programs establish themselves established & recognized Mix of diverse programs Programs More consistent program in the community Strong commitment to delivery Long-range program service delivery planning Programs function well Mostly Volunteers More staff Larger, more specialized Staffing Small enthusiastic staff Division of Labor staff “Family” culture No formal personnel Professional managers policies hired Small Budget Established relationship Reliable and diverse Financial Limited accounting system with key funder(s) funding streams Systems Dependent on few funding Cash flow challenges Significant cash reserves sources Fundraising staff Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
ORGANIZATIONAL CAPACITY Plans that Shape Facility Decisions • Strategic Plan: How your organization’s programs carry out your Mission & Vision. • Business Plan: How your programs operate to deliver their desired outcomes. • Facility Plan: Space needs, corporate structure, financing and timing based on the Strategic and Business plans. • Capital Campaign Plan: Marketing for donations and fundraising required. Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
STAFF & BOARD CAPACITY Indicators of… • Stable & experienced leadership team • Dedicated Project Manager • Staffing to continue operating programs • Board Facility Committee • Defined roles & responsibilities • Defined decision-making process Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
FINANCIAL CAPACITY Indicators of… Financial strength: • Increasing net income • Healthy reserves • Healthy financial ratios • Fundraising capacity • Financial systems to track sources and uses of funds • Strong budget development, variance monitoring, contingency planning processes Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
FINANCIAL CAPACITY • Organizational Financial Assessment • Financial Position: ability to pay debts, meet unexpected financial challenges, undertake new opportunities • Financial Performance: business model, changes in revenue & expenses, revenue diversity, fundraising strategies Financial Space Organizational Introduction Location Closing Capacity Capacity Planning
FINANCIAL CAPACITY Assets Current Assets Balance Sheet: Statement Cash and cash equivalents 6,843 of Financial Position Prepaid Expenses 12,760 Grants Receivable 155,264 Total Current Asseets 174,867 Snapshot – Overall financial health at Property and Equipment a moment in time Buildings and Building Improvements 594,600 Leasehold Improvements 370,156 • Assets Furniture, Fixture, Equipment 277,331 Less: Accumulated Depreciation (617,001) – What you own Total Fixed Assets (Net) 625,086 Total Assets 799,953 • Liabilities Liabilities and Net Assets – What you owe Current Liabilities Accounts Payable 106,176 • Net Assets Accrued Expenses 144,679 Current portion of loan 15,405 – Difference between what an Total Current Liabilities 266,260 organization owns (assets) Long Term Liabilities and what it owes (liabilities) Mortgage Loan 331,186 Total Long Term Liabilities 331,186 – Equity; retained earnings Net Assets Unrestricted 181,471 Temporarily Restricted 21,036 Total Net Assets 202,507 Total Liabilities & Net Assets 799,953 Financial Space Organizational 20 Introduction Location Closing Capacity Capacity Planning
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