Cultural Activities Fund Category B

Cultural Development Fund: Mid-sized Institutions 2015-16 Application Guidelines Category C-II

INTRODUCTION In 1982, Palm Beach County levied a tourist development tax on “every person who rents or lets for consideration any living quarters or accommodations in any apartment, hotel, motel, resort, condominium for a term of six months or less.” A percentage (22.51%) of the first three cents levied on every dollar of such rent is to be expended on cultural tourism development programs in support of fine arts entertainment, events, festivals and activities that directly promote Palm Beach County tourism. This program is described as the Cultural Tourism Development Fund : Mid-sized Institution or Category C-II. The Cultural Council of Palm Beach County advises and administers Category C-II grants under contract with the Tourist Development Council and the Board of County Commissioners. The program assists Palm Beach County nonprofit arts and cultural organizations that have been operational in their current disciplines for a minimum of two (2) years with annual operating revenues of at least $200,000 (exclusive of tangible collections, capital and or endowment corpus) by reimbursing the marketing and programming expenses associated with the presentation and production of a regular season of programs open to the general public in Palm Beach County.

MISSION The mission of the cultural development grant program is to expand and promote cultural programs which directly develop and enrich the Palm Beach County community by funding cultural institutions that attract and satisfy residents and/or visitors and that improve the quality of life in Palm Beach County for all residents.

Objective To attract and satisfy Palm Beach County residents, and build audiences through cultural activities of acknowledged excellence by mid-sized Palm Beach County cultural organizations.

Process and Expectations: The grant process requires the applicants to complete a written application by closely following these guidelines and to participate in an interview with the review panel. Applicants who have never received an award from this grant program are expected to attend a mandatory application workshop prior to completing the application. If the applicant successfully scores a 75 or higher, a contract will be awarded to reimburse artist fees, production or exhibition costs, and/or marketing expenses to cultural organizations with recognized ability to produce, present, and promote artistically and culturally excellent programs.

Available Funds: Organizations with operating revenues between $1,174,999 and $200,000 are eligible to apply for this grant program. The applicants request amount is

1 based on operating revenues reported in the most recent certified financial audit and is up to 10% of organizational operating revenues or $50,000 whichever is less.

DEADLINE Deadline for application is Tuesday, January 27, 2015 for the grant period October 1, 2015 through September 30, 2016. All applications must be postmarked or hand-delivered by 5:00 p.m. on that date. There will not be an application cycle for 2016-2017. Organizations awarded funding for the 2015-16 grant period will continue to be funded in the 2016-17 grant period, based on dollars available, pending that the organization remains in compliance with its contractual grant agreement, providing that the operating revenues do not deviate more than 15% from the established threshold.

ELIGIBILITY 1. Be a nonprofit organization as documented by an IRS nonprofit, tax-exempt status, part of an organization, which produces and/or presents a cultural program or festival in Palm Beach County, Florida.

2. Have completed at minimum, two years of fiscal operation as a nonprofit arts and cultural organization in Palm Beach County and is able to provide independent audited financial statements with an accountant’s unqualified opinion.

3. Have operating revenues totaling at least $200,000 as reflected in the most current certified financial audit.

4. Show $20,000 or more in budgeted marketing expenses for proposed programs.

5. Employ one or more full-time, paid non-seasonal executive staff member(s) in a Palm Beach County office.

6. Match amount requested on a dollar-for-dollar basis by contributing or raising the same amount.

7. Have a board of directors composed of at least one-third of Palm Beach County residents which meets on a regular basis at least once per quarter. If organization is regionally or internationally based and does not meet this criterion, the organization is required to submit documentation showing 70% of its program marketing budget is spent on marketing the Palm Beach County program(s) outside of Palm Beach County.

8. Obtain Certificate of Liability Insurance which verifies (1) general liability coverage with limits of not less than $500,000 each occurrence and (2) Palm Beach County as additional insured. Insurance coverage must be in effect from October 1, 2015 to September 30, 2016.

9. Current grantees must be in compliance with all grant and contract requirements including but not limited to grant reports and audience survey data. Compliance issues must be resolved prior to application deadline in order for an applicant to be considered for funding.

2 LIMITATIONS Applicants may submit only one application in one Cultural Development Fund grant program during the fiscal year. Organizations approved for funding will receive grant disbursements through a quarterly reimbursement process beginning October 1, 2015.

SCORING CRITERIA AND RUBRIC Grant panelists will receive a copy of the Scoring Rubric as a part of their panelist training materials. The rubric will be used to ensure fair and unbiased process as possible. The scoring mechanism defines each of the five criteria: Cultural Excellence, In-County Marketing Impact, Out-of-County and Tourism Impact, Organizational Stability and Potential for Growth. Within each criterion, benchmarking descriptions and corresponding point values are listed to serve as guide in the scoring process. Grant applicants should use this Scoring Rubric as a guideline when completing the application

RUBRIC VALUATION

VALUE DESCRIPTION SCORE Strongly demonstrates public value of arts and culture. Excellent Merits investment of Palm Beach County bed tax 88-100 funding. Satisfactorily demonstrates public value of arts and Good culture. Merits investment of Palm Beach County bed 75-87 tax funding Does not sufficiently demonstrate public value of arts Fair and culture. Does not merit investment of Palm Beach 61-74 County bed tax funding Makes an incomplete or inadequate case for the public value of arts and culture. Does not merit Weak investment of Palm Beach County bed tax funding. 0-60 Information is confusing, unclear and lacks specific details.

(1) Maximum 40 points for Cultural Excellence. Panelists will consider the following information when evaluating for Cultural Excellence. Excellent Good Fair Weak 37-40 points 32-36 Points 25-31 Points 0-24 points Two year history of Two year history of Two year history of Two year history of cultural exhibits, cultural exhibits, cultural exhibits, cultural exhibits, programs and/or programs and/or programs programs is productions clearly productions reflects describes omitted from reflects excellence excellence. excellence. proposal. Mission statement Mission statement Mission statement Mission statement clearly describes describes describes does not clearly organization and organization and organization and describe programs/activities programs/activities programs/activities organization and fully support the fully support the do not fully support programs/ activities mission. mission. the mission. do not fully support

3 the mission. The programs sustain The programs The programs The programs are and advance the sustain and sustain the cultural not sustaining the cultural form and advance the form and mission cultural form and mission while making cultural form and while making it mission and there it available to a wider, mission while available to a wide is no evidence of a more diverse making it available audience. diverse audience. audience. to a wide audience. Specific efforts are Specific efforts are Unclear and No efforts are clearly demonstrated demonstrated to confusing efforts demonstrated to to expand the field or expand the field or are demonstrated expand the field or discipline in which it discipline in which to expand the field discipline in which specializes. it specializes. or discipline in it specializes. which it specializes.

(2) Maximum 20 points for Marketing Impact. Panelists will consider the following information when evaluating Marketing Impact: Excellent Good Fair Weak 19-20 points 16-18 Points 13-15 Points 0-12 points Well defined Marketing and Confusing Undefined or lack marketing and promotion plan to marketing and of marketing and promotion plan to attract in county promotion plan to promotion plan to attract in county and and out of county attract in county attract in county out of county residents to visit and out of county and out of county residents to visit organization residents to visit residents to visit organization organization organization. Past and projected Past and projected Past and projected Past and projected attendance attendance attendance attendance goals demonstrated demonstrated demonstrated little were omitted from significant outreach to some outreach to outreach to visitors application. visitors outside Palm visitors outside outside Palm Beach County and Palm Beach Beach County and local community by County and local local community by 11-25%. community by 10- 4-1%. 5%. Clear evidence of Evidence of Evidence of No evidence of any established marketing marketing marketing marketing partnerships that partnerships that partnerships that partnerships. include hotels, include hotels, do not include airlines, buses etc airlines, buses etc. hotels, airlines, buses etc.

(3) Maximum 20 points for Organizational Stability. Panelists will consider the following information when evaluating Organizational Stability: Excellent Good Fair Weak 19-20 points 16-18 Points 13-15 Points 0-12 points  There is clear  There is clear  There is little  There is no 4 evidence that the evidence that the evidence that the evidence that the organization is organization is organization is organization is following best following some best following best following best practices in practices in practices in practices in governance, governance, governance, governance, operations and operations and operations and operations and program program program program implementation implementation implementation implementation

Strong evidence of Evidence of Evidence of Evidence of very consistent, multi-year consistent, multi- inconsistent multi- inconsistent multi- fiscal responsibility year fiscal year fiscal year fiscal responsibility responsibility responsibility The budget is The budget is The budget is The budget is not balanced, easy to balanced, easy to balanced but hard balanced, hard to understand. There is understand. There is to understand. understand. There strong financial plan financial plan and a There is a financial is no financial plan and a diversified revenue stream plan but no nor a diversified revenue stream diversified revenue revenue stream stream Long term strategic A short term A strategic plan is No long term plan is in place for strategic plan is in in place but doesn’t strategic plan in endowment building place for address the need place for or deficit reduction endowment building for endowment endowment or deficit reduction building or deficit building or deficit reduction reduction

(5) Maximum 20 points for Potential for Growth. Panelists will consider the following information when evaluating Potential for Growth:

Excellent Good Fair Weak 19-20 points 16-18 Points 13-15 Points 0-12 points Clear evidence of one Evidence of one of: Unclear evidence No evidence of of: new/expanded new/expanded of one of: new/ expanded facility, facility, capital facility, capital expanded facility, capital campaign, campaign, education campaign, capital campaign, education initiatives, expanded education education initiatives, diversity efforts. initiatives, initiatives, expanded diversity expanded diversity expanded diversity efforts. efforts. efforts.

Applicants must receive a minimum average of 75 points to be considered for funding.

MANDATORY TRAININGS Grant Application Workshop: New applicants and/or new staff responsible for completing the application are expected to attend one of the Grant Application Workshops. Current grantees are also encouraged to attend to learn about the changes within the application since the last publication. Reimbursement Training: If you are awarded a Cultural Tourism Development Fund grant, your organization will be expected to attend the Reimbursement Training 5 The Grant Application must include a letter signed by the CEO or Executive Director agreeing to send a representative to the mandatory trainings.

REIMBURSEMENT GUIDELINES Please note the allowable and disallowable expenses when completing the budget spreadsheet and budget narrative.

Allowable Expenses  Artist fees directly related to program/festival, including travel.  Production/technical expenses directly related to exhibitions, lectures, or events.  Marketing expenses including outside professional marketing services and professional in-house marketing staff up to 50 percent of gross salary.  Space rental, improvement, or maintenance directly related to program.  Advertising and printing costs related to the program,  Materials and supplies directly related to the program,  Pre-payments made prior to the grant period for allowable expenses directly related to the program during the grant period.

Disallowable Expenses  General operating or administrative expenses, including staff travel.  Rent of offices, repairs, renovation and/or remodeling of facilities.  Purchase of permanent equipment including musical instruments.  Expenses/debts incurred or obligated prior to contract period.  Program publications which include solicited advertising.  Advertising which does not mention the specific program/festival or omits the County and/or Council required logos.  Any expenditure for food.  Any expenses for programs or festivals limited to schoolchildren during regular school hours.  Any payments to students for services rendered.  Any awards, prizes or contributions.  Any other non-program or festival-related expenses.  Other non-program related expenses

6 1) Independent Certified Financial Audit - Include the last two (2) completed financial years. One audit with two years’ compared will also be accepted. If applicant’s fiscal year-end is less than six months before the panel meets and an audit is not yet available, the applicant must submit year-end financial statements accompanied by a representation letter from management and by an independent auditor’s letter stating that the FY 2014 audit will be delivered to the Cultural Council before or by June 30, 2015. All applicants are required to submit the certificate financial audit to the Cultural Council within six months of fiscal year end in order to remain eligible for funding.

PLEASE NOTE: If the applicant is a division of a larger institution, the applicant must include an audit which identifies direct expenses and revenues for the program. If this is unavailable, the applicant must provide internally prepared financial statements of revenues and expenses for the last two fiscal years. These statements must be signed by the chief financial officer and an authorized official of the larger organization.

2) Certified Financial Audit Findings – Applicants are required to address, in writing, any of the following issues found in the financial statements: a. Variances greater than 25% in a year over year financial statement line items b. Qualified Audit c. A Material Adverse Change from the previous year’s audit d. A Single-Year Deficit

3) Deficit Reduction Plan – If an organization has had significant multi-year, operating deficits and declining fund balances for two years or more, a deficit reduction plan must be attached. The plan must be formally approved by the applicant’s Board of Directors and must include debt reduction and deficit reduction strategies and timetables. Financial statements submitted with an opinion that is other than unqualified may be accepted, subject to review by the grants panel.

4) Authorized Signatory – Provide proof of person(s) authorized to sign contracts by submitting a Florida Department of State, Division of Corporations registration copy, board resolution or other evidentiary document.

5) Board of Directors – Provide a list indicating officers and all directors’ contact information including business and home address and telephone numbers.

THE GRANT APPLICATION Please follow this outline to create your application □ Cover □ Cover Letter – Optional

TAB 1 – Application Narrative □ 7 Narrative Questions – limit 10 pages

TAB 2 – Application Exhibits □ Exhibit A – Program Description □ Exhibit B1 – Projected Program Budget – See Allowable and Disallowable Expenses listed above □ Exhibit B2 – Projected Program Budget Narrative □ Exhibit B3 – Three-Year Program Budget Comparison

7 TAB3 – Contractual Documentation □ Internal Revenue Service Tax-Exemption Determination Letter □ Audited Financial Statements for the last two most recent fiscal years □ Other financial documents 990 of P&L or unaudited statements □ Written explanation of any Certified Financial Audit findings – as needed – see above □ Deficit Reduction Plan signed by Board of Directors – as needed – see above □ Certificate of Insurance identifying Palm Beach County as additional insured. □ Proof of Authorized Signatory - as registered with Florida Department of State, Division of Corporations □ List of Board of Directors – indicate officers □ Artistic and Administrative Staff Bios – indicate full or part time, years of service and office location limit 4 pages □ Mandatory Training Agreement Letter – see Mandatory Training above □ Current State of Florida Solicitation License

TAB4 – Supplemental Materials □ Letter of Support – From partners, constituents and professionals in the field. Limit 3 □ Annual Report □ Marketing Advertising Limit 1 □ Performance or Event Review Limit 1 □ Additional Supporting Documents – such as brochures, programs, reviews, etc. Limit 7

Grant Application Format  Submit one unbound Original application and ten (10) copies.  Indentify the original as the “ORIGINAL” application.  Have the Application Cover signed in BLUE ink.  Use a soft-cover three – ring notebook to hold the ten (10) copies.  Affix the applicant organization’s name on the cover of the binder  Do not use plastic sheets as inserts for the application narrative.

DELIVERY INSTRUCTIONS All applications must be postmarked or hand-delivered by 5:00 p.m., on Tuesday, January 27, 2015. MAIL OR HAND DELIVER the entire grant packet to:

Alexandra Gitelman Cultural Council of Palm Beach County 601 Lake Avenue Lake Worth, FL 33460

No Applications will be accepted after the deadline

For More Information Please call the Grants Department at (561) 214-8087 or e-mail [email protected]