SUSTAINING THE VILLAGE MOVEMENT
LESSONS FROM PIONEERS about Village Business Models and Sustainability
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 About Capital Impact Partners
Capital Impact Partners is a Hill Village, developed and leader in financial and social managed the national Village innovation for communities. to Village (VtV) Network. This A non-profit community national peer to peer learning development -financial network allows communities institution, Capital Impact interested in starting and brings together roots in sustaining Villages to share cooperative development, a knowledge and access expert diverse network of partners technical assistance through and problem-solving know- a web based portal. From how to connect communities 2011-2014, Capital Impact to capital and capabilities that Partners, as part of Archstone together create social change. Foundation’s Creating Age- Capital Impact Partners Friendly Communities through became involved in the the Expansion of Villages Village movement because Initiative, provided capacity it resonated so strongly with building to strengthen the organization’s focus on the business acumen and community empowerment and sustainability of nine its commitment to respectful Villages in California. and dignified aging for older For more information on adults. From 2009-2014, Capital Impact Partners visit Capital Impact Partners, in www.capitalimpact.org partnership with Beacon
Acknowledgements:
Capital Impact Partners would like to acknowledge Candace Baldwin, Janis Brewer and Judy Willett for their expertise, energy and diligence as authors of this report. Thank you to Jason Bell’s Creative and Dean Creative who helped bring this report to life. A special thank you to the Villages who provided their knowledge and experience as early pioneers of the Village movement to help shape the information shared in this report. Funded in-part by Archstone Foundation. Thank you for your assistance to make this report a reality.
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 SUSTAINING THE VILLAGE MOVEMENT
Table of Contents
I. Executive Summary...... 5 II. Defining Sustainability...... 8 III. Village Organization and Governance Components...... 10 A. Founding and Governance...... 10 B. Operations: Staff and Volunteers...... 13 C. Member Services and Village Programs...... 15 D. Partnerships...... 18 E. Marketing and Communication...... 19 IV. Financial Viability and Longevity...... 22 A. Revenue Diversification...... 22 B. Use of Funds...... 23 C. Fiduciary Management and Oversight...... 25 D. Leveraging Non-monetary and In-kind Resources...... 26 E. Viability and Longevity...... 26 V. By the Model: Unique Attributes...... 27 A. Grassroots, All Volunteer Model...... 29 1. Staffing the Operations...... 29 2. Financial...... 30 3. Sustaining the All Volunteer, Grassroots Business Model...... 31 B. Parent Sponsored Villages...... 32 1. Operations...... 32 2. Financials...... 33 3. Marketing...... 34 4. Partnerships / Relationships...... 34 C. Hub and Spoke...... 35 1. Operations...... 35 2. Financial Management...... 36 3. Governance...... 37 4. Marketing...... 38 5. Partnerships / Relationships...... 38 D. Villages with TimeBanks™ Component...... 39 1. Operations...... 39 2. Financials...... 40 VI. Looking Ahead and Future Planning...... 41 VII. Conclusion...... 46
Appendix I: List of Participating Villages...... 48 Appendix III: Business Plan Template...... 49 Appendix IV: Marketing and Communications Plan Template.... 51 Appendix V: Dashboard Template...... 58
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 SUSTAINING THE VILLAGE MOVEMENT
Table of Figures
Figure 1...... Village Guiding Principles...... 5 Figure 2...... Description of the Four Village Business Models...... 6 Figure 3...... Factors for Sustainability in Nonprofit Organizations...... 8 Figure 4...... Village Organizational Lifecycle...... 9 Figure 5...... Organizational Lifecycle Phases of Board Leadership...... 11 Figure 6...... % of Researched Villages with Sustainable Volunteer Program Components...... 14 Figure 7...... Top 10 Services Utilized by Village Members...... 17 Figure 8...... Marketing and Communication Channels...... 20 Figure 9...... Connecting Language for Villages...... 21 Figure 10..... Average Village Revenue Mix...... 23 Figure 11...... Budgeting Benchmarks for General Village Operations...... 24 Figure 12..... Description of the Four Village Business Models...... 27 Figure 13..... All Volunteer Village Model Revenue Breakdown...... 30 Figure 14..... Parent Sponsored Village Model Revenue Breakdown...... 33 Figure 15..... Role of Village Hub...... 35 Figure 16..... Role of Village Spokes...... 36 Figure 17..... Hub and Spoke Village Profit Margin...... 36 Figure 18..... Village with TimeBanks™ Component Revenue Breakdown...... 40
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 I. Executive Summary
The growth of our Over the past 10 years, the access to community services, Village model has emerged ongoing civic engagement nation’s aging as a leading model to support opportunities and navigation aging in the community. The support for the current population has been movement has expanded network of aging and health across the nation with 40 care services as membership well recorded. Our 78 states being home to at least benefits. The Village model million baby boomers one Village. Built on a set of is a pioneering, community- guiding principles, Villages based approach that leverages began to retire in are membership-based, existing assets and builds service-focused, nonprofit stronger ties within the 2012. By 20301, organizations. They connect community. Early evaluation older adults, ranging from has yielded positive and those age 65 and age 55 to 100+, to service potentially substantial impacts, supports, health care, including reduced social older will represent neighbors, wellness programs isolation, increased knowledge and social enrichment to and use of local aging services 20% of the U.S. assist them in aging in their as well as social capital for population. Aging in own homes. Villages facilitate the community. the community is the preferred choice of older Americans and is often an affordable and available option. Communities are now seeking innovative, Figure 1 cost-effective and Village Guiding Principles sustainable solutions Self-governing, self-supporting, grassroots to augment existing membership based organization aging services and Consolidate and coordinate services health care networks Strategic partnerships to leverage community resources to strengthen Member and consumer driven residents’ ability to Promote volunteerism, civic engagement and intergenerational connections age in the community. 5
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Yet, as the movement enters procedures and governance foundation to support long- its second decade, little is that can form the basis for term growth.In doing so, Capital known about the standard their long-term sustainability. Impact Partners identified four business and organizational The Village Business Model distinct business models processes that can support Research for Sustainability (Figure 2) that are being the sustainability and project was implemented utilized by Village leaders. further scaling of this model. to understand the critical Startup Villages are seeking infrastructure, operational a road map to guide them functions and governance in the development of their structures that need to be infrastructure, operations, in place to provide a strong
Figure 2 Description of the Four Village Business Models
Village Business Model Description
This business model is the most common structure for a Village where the organization is a stand-alone nonprofit Grassroots that is administered through a combination of paid staff and volunteers. Members are encouraged to participate in the governance by serving on the board or committees.
This model provides a way for existing social service and aging service organizations to support the Village model. Parent Sponsored Village The parent organization serves as a fiscal agent and supports the Village organization by providing the back office, legal, financial management, and office space.
This model brings together multiple communities or neighborhood enclaves to share costs and back office Hub and Spoke support in order to serve a wider area. This model allows multiple smaller Villages (“spokes”) to be created in an area with a central Village (“hub”) that handles the IT, database management, accounting, and other support roles (“back office”) for the “spoke” Villages.
This model combines the TimeBanks™ model with the Village. TimeBanks™ allows members to “exchange time” and earn time Village with TimeBanks™ dollars for volunteering. Time dollars are exchanged for services, or donated to a community pool to benefit those unable to provide a service. This model is beginning to emerge as a way to create a lower fee structure for Village membership where time “banked” is provided as a part of the membership fee.
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 I. Executive Summary
This report discusses the Village pioneers provide require stronger partnerships similarities and differences sound insight into common and collaborations with among these four distinct challenges. Villages were foundations, aging providers, business models. It also selected based upon their government agencies explains how Villages can longevity in operations (three and other stakeholders to leverage these models or more years), diversity of the create aging in community with accepted nonprofit business model they employ organizations. This report organization and management and their geography. By provides insight into the types structures to get on the road combining nonprofit industry of operations and resource to long-term sustainability. knowledge with the “real investments needed to sustain In order to learn about these life” experience of pioneering and replicate Villages as an diverse business models, leaders, this report provides aging in community solution. Capital Impact Partners emerging and existing Villages Also, it reveals the need for conducted research on a reference guide on how best equal investment into the accepted nonprofit business to structure their underlying business and operational practices and the operations operational infrastructure infrastructure of community- of 15 Villages. The current to achieve long-term based organizations to sustain lifecycle phases of both sustainability. impact. Overall research the Villages and the overall findings have been organized movement impact their Key stakeholders and Village to allow the reader to access current sustainability. However, partners are a secondary tier those topics most relevant to the early experiences and audience for this report. The his or her Village. lessons learned by these growth of the movement will 7
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 II. Defining Sustainability
Sustainability has been a are truly impactful and the being adaptable enough to focus of discussion within the underlying operations are able plan for the future needs of nonprofit industry for many to sustain the organization their stakeholders is key.2 years. Nonprofit, community- to meet its mission. With the Sustainability is often referred based organizations, like overwhelming popularity to as a “destination”: “When Villages, are part of the of the Village model, it is our organization becomes trend toward using market- necessary to understand sustainable, we will be able based solutions to combat how these organizations to….” is often expressed by social challenges. In order can promote their value nonprofit leaders. However, to discuss sustainability proposition to members and sustainability is a combination of Villages, we must first the community. Sustainability of multiple factors that guide define it. Sustainability means different things to the organization, its leadership is about acquiring and different people. Many believe and funders to adapt to the maintaining control over sustainability is defined shifting market while achieving the organization’s financial as having robust financial their mission. Based upon our health and stability. During capacity and the ability to research, the best definition our nation’s recent economic raise sustainable revenues to of sustainability (Figure 3) recession, many foundations, support program management combines three critical social investors and public and operations. Others factors that work in tandem: agencies sought ways to believe the organization’s leadership, adaptability and “professionalize” nonprofits ability to maintain efficient program capacity. to ensure that investments business practices while
Figure 3 Factors for Sustainability in Nonprofit Organizations3
Program Leadership Adaptability Sustainability + + Capacity =
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In addition to leadership, characteristic patterns of lifecycle. Of the remaining adaptability and program behavior are evidenced and Villages, nearly half have been capacity, sustainability is also certain capacities become in operations for less than impacted by where a Village is established”.4 five years and are currently along its organization lifecycle in between the startup to (Figure 4). The nonprofit Knowing where the Village adolescent phase, with a few organization lifecycle is on the organization’s (n=3) Villages celebrating describes the various stages lifecycle can be used for a their fifth anniversary in of a nonprofit’s growth and variety of purposes, including 2014. Due to the nascent and maturity. The organization determining at which stage growing Village model, it is lifecycle is based upon the an organization is operating, hard to determine if it will be premise that organizational managing transitions, sustainable long term. This development is similar to developing healthy strategies report identifies where Villages human development with and anticipating future have incorporated strong predictable traits found in challenges. Research on the 15 organizational components each stage. The organization Villages identified that one- during their startup and lifecycle is a fluid process, third have been operating for adolescent stages to set them and each stage is a five or more years and are on a path toward long-term “developmental period when in the mature stage of their sustainability.
Figure 4 Village Organizational Lifecycle5
Concept With this baseline Development of the organization lifecycle, the following
Renewal Start-up sections discuss the Rebirth key organization and governance components Villages need to foster in order to get on the road to Maturity Adolescent sustainability.
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The baseline characteristics of the Villages researched for this report did not differ significantly. Therefore this section presents the organization and governance components of the Villages which are presented in the aggregate below. This section discusses how Villages at every stage along the lifecycle can facilitate building stronger infrastructure to support long-term growth and sustainability. The following sections discuss the major typology of operational components that Villages utilize to build strong, sustainable organizations.
A. Founding & Governance
KEY FINDINGS
On average, Villages ensure that 51% or more of the Board of Directors is represented by Village members.
Villages use the organization committees to continually “feed” board membership.
Villages will transition from founding to operating Board of Directors on average two - three years after full launch of Village operations.
At the very core of the Village capacity. These leaders often operations is the structure bring skills in fundraising, that governs its administration marketing and finance, for and maintains the strategic example, that the Village direction. Villages in the can utilize to strengthen concept stage of their lifecycle its leadership. Leadership will bring together a small cultivation is crucial to group of community members longevity and to provide fresh to develop the mission ideas to stimulate innovation and vision that will provide and assist Villages’ adaptation the underlying conceptual to their local markets. The framework to guide strategy Village model provides an and future direction. Research opportunity for members to indicates that Villages that set play a leadership role, and up a functioning governance it increases a sense of local structure during the concept ownership among the members. and startup stages will be well Research indicates Villages positioned to build upon a have members filling 51% or solid foundation as they grow. more of the board positions As grassroots organizations, for the Board of Directors Villages leverage the expertise or, in the case of the Parent of the founders, local leaders, Sponsored business model, partners and businesses from Advisory Councils. Typically, the the community to fill gaps in Village governance structure 10
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is established during the support the board in managing will need to set up a strong concept stage and includes the its fiduciary responsibilities. governance base to build development of the articles Villages that leverage upon as they progress into of incorporation by-laws volunteers with diverse subsequent lifecycle stages. to establish the committee skills are better equipped to structure, business plan and weather the ups and downs of During startup, the board initial budget. the organization. provides guidance for daily administrative activities and Leveraging expertise from While the development of the as a “working” board often professionals e.g., bankers, Village governance structure is takes on more tactical day-to- accountants, marketers, not always the most exhilarating day functions. As the Village human resource professionals, activity, it is a necessary becomes fully operational etc. can fuel and sustain component to sustaining and provides services to long-term operations. Villages the Village in the long term. members, the role of the have a unique opportunity to Based upon the discussions board will transition. Figure leverage members with these with Villages for this research, 5 below shows the evolution professional skills who are founders tend to focus more on of the board throughout the retired and seeking to give securing members, setting up organization’s lifecycle. As back and help build a stronger program / activities, fundraising the Village matures, the board community. Board members and marketing during the takes on a more advisory with skills in accounting and concept and startup stage role, providing support to the finance can help build annual and less on establishing the Executive Director, paid staff budgets, set up accounting governance structure. Villages and volunteers. policies and procedures and seeking long-term sustainability
Figure 5 Organizational Lifecycle Phases of Board Leadership6
Board Start-Up Adolescent Mature Characteristics (to begin) (to grow) (to sustain)
May just be hiring Clarified planning function Conducts a formal evaluation ➊ Relationship with the Chief Executive; and deliberate decision-making of the Executive Director and Executive Director conducts an informal process; formal evaluation creates a succession plan performance review process and early succession planning discussions
Hands-on role in Formalized role with board Clarifies role in relation to ➋ Role and Activities both management member job descriptions Executive Director; reduces and oversight operational role, increases policy and fundraising function.
Small and Expanded Formal nomination process; ➌ Size Composition, homogenous community representation; and Structure diversity of needed skills; committees and task forces are developed
Local, neighbor Discussion of board Board formally assesses ➍ Board Development to neighbor performance and how the itself and creates a board recruitment board needs to improve development plan 11
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Exceptional Village boards Also, the board should develop govern in constructive a skills matrix to identify gaps partnership with executive in expertise. These assessments leadership. They establish can guide the work of the clear roles and responsibilities nomination committee and give and review performance and clear direction for outreach accountability for both the to new board members. They board and Executive Director. also ensure the Village has the This system ensures integrity skills necessary for governing. of process and enables the The Village to Village organization to be adaptable. Network (www.vtvnetwork. Board members and participants org) and BoardSource (www. of the Village’s governance boardsource.org) provide process include the following: valuable information, templates and guidance to support a strong governance structure in Firm commitment to the the long term. nonprofit’s mission
Willingness to relinquish Based upon this research, the operational role to Villages have policies for focus more on advice and board term limits, recruiting oversight and selection, but not all have Commitment and vision leadership termination or for long-term strategic succession processes. Board planning and multi-year recruitment is an ongoing budgeting process and does not just Increased accountability occur when there is a vacancy for personal contributions to be filled. Cultivation of and soliciting funds a sustained and informed leadership is key to maintaining Cultivating openness and institutional knowledge of inclusion in decision-making the organization’s lessons ensures that programs and learned and vision. Based policies are in place to support upon research, Villages use the the community. Adaptability organization’s committees as a and growth are the keys to “feeder” to fill board positions. strengthening the governing This allows the Village to tap body. To maintain flexibility, into the existing knowledge of regular evaluation and engaged committee members assessment of the governance to take on more leadership structure is warranted. responsibilities in a board Villages should conduct board position. This practice provides assessments every two to a solid solution to ensuring three years or when there is long-term engagement board turnover. This process of volunteers to serve the includes both self and group organization’s mission. assessments on effectiveness. 12
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B. Operations: Staff and Volunteer
KEY FINDINGS
Sixty-six percent of Villages participating in this research have paid staff with one paid staff member for every 78 members, constituting a 1.15 FTE ratio.
Sustainable Villages maintain healthy volunteer pools.
Villages have one volunteer for every 4.2 members to ensure strong program capacity.
Villages utilize a combination systems to support human that include policies and of staff and volunteers resource management activities procedures guiding recruitment, to support day-to-day can provide a positive work-life training, troubleshooting and administration and offer balance for staff. Developing recognizing the work of their a single point of entry for clear policies and procedures, volunteers (Figure 6). However, members to access information providing professional not all Villages are maintaining and request services. To development opportunities these components on a regular respond to member needs, and creating clear roles and basis. Maintaining the volunteer each Village has at least accountability are critical to effort requires significant one dedicated person or sustaining a dedicated team. management of time and group of people to manage With these in place, Villages funds, and often Villages will administration. At least 66% can ensure paid staff will be employ a Volunteer Coordinator of Villages that participated engaged long-term with high (paid or unpaid) to manage in this research have paid work satisfaction. Similarly, the program component. staff while other Villages “all-volunteer” Villages need Villages engage volunteers leverage dedicated volunteers to create a supportive and from their membership and the to operate and administer positive working environment community. Civic engagement, services. Villages average one for their volunteers as if they a benefit of the Village model, is paid staff member for every 78 were paid staff. critical to success and strongly members, constituting a 1.15 benefits the organization’s FTE ratio according to the 2012 Villages rely upon volunteers to connection to the community. National Overview of Villages increase their ability to achieve Member volunteers provide a report.7 When employing paid goals. Sustainable nonprofits motivated pool that supports staff, Villages must be mindful have healthy volunteer pools. the delivery of services, of the employer responsibilities Research for this report provides governance oversight for legal business operations identified that Villages have, and assists in day-to-day and also to ensure long-term on average, one volunteer for administration. Peer-to-peer cultivation of staff to support every 4.2 members to ensure connections made through sustainability. strong program capacity. volunteering expand members’ Villages have structured social circles, increase sense of Utilizing nonprofit business volunteer programs in place purpose and reduce isolation. 13
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Figure 6 Percentage of Researched Villages with Sustainable Volunteer Program Components8
Villages Business Models (n=15) Accepted Nonprofit Sector Volunteer Program Components Grassroots Hub & Spoke Time Bank Parent Sponsored
Formal 66.6% 33.3% 100% 33.3% Recruitment Process
Formal Training 100% 66.6% 100% 50% Program
Volunteer 66.6% 50% 100% 50% Manual (not specific to the Village)
Background 66.6% 50% 50% 25% Checks
Appreciation 66.6% 0% 50% 25% Events
Investing in volunteers also Villages using either a results in better workflow combination of paid staff and management. Taking time to volunteers, or solely an army get to know what volunteers of volunteers, to support their desire from the experience, administration and operations having an orientation process can realize cost efficiencies and recognizing volunteers and strong program for their work strengthens capacity to sustain the their experience. To manage Village. Effectively managed this large volunteer workforce, volunteers can save the Village Villages have formalized 9 this process by creating money. A key component of recruitment programs, sustainability is the ability to disseminating manuals and continue to cultivate, train and hosting appreciation events. recognize staff and volunteers. Ultimately, successful volunteer This process ensures adequate recruitment and management resources and support are entails developing trust and provided to allow delivery of ensuring that volunteers feel member benefits, services valued as vested members of and programs. the organization. 14
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C. Member Services and Village Programs
KEY FINDINGS
Village sponsored social events are most prevalent (70%) membership benefit offered.
Surveys and asset mapping activities during concept and startup stages help the Village to understand the service and program needs of prospective members.
Ongoing and regular market assessments (e.g. asset mapping, member surveys) in adolescent and mature stages keep programs nimble to meet changing member needs.
As a guiding principle (Figure members to existing services 1), Villages do not replicate as needed. services already in the community. Services that Villages place a high value on support members through the the efforts to understand their challenges and transitions of market. Villages strive to fill aging are critical. Therefore gaps in traditional local service Villages inform and refer delivery models and seek to members to community- address unique challenges and based services that are more opportunities older adults face experienced and provide living at home. For example, a range of services to while many local social services support members wherever offer transportation, meals and they live. Villages partner friendly visitor programs, some and collaborate with local may not provide volunteers service providers—ranging to move trash cans to and from home maintenance to from the curb, climb a ladder home care—and perform to replace a light bulb or background checks on these shovel snow from a sidewalk. partners. Navigation of Addressing these “in between” sometimes daunting health services may allow members care and complex aging to remain in the community. service systems is often the During the concept and startup most critical service a Village stages, Villages conduct a can provide to its members demographic scan of the aging and their caregivers. Village population in their catchment staff and volunteers are area. Information is sourced knowledgeable of the aging through existing census data services landscape in their and other statistical resources community and can direct combined with primary data 15
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collected through community focuses on the strengths of the University of California Berkeley surveys and focus groups (e.g., unique attributes a community to evaluate nine California Survey Monkey, questionnaires, offers that can be leveraged Villages as part of the Creating community input meetings, to improve the quality of life Age Friendly Communities etc.). This information is useful there. Organizations using through the Expansion of for Villages to develop the initial this asset-based approach Villages initiative. Initial member benefits and programs to their development and findings from UC Berkeley’s to be ready at the launch of operations are able to leverage multi-site evaluation helped their Village. partnerships within the to shed light on the types community better and avoid of services Villages provide. Villages also perform asset duplication of services. Villages Villages have emerged as mapping to determine their in the adolescent and mature organizations that build social role in the aging community. stages of their organization’s capital within the community. The Asset Based Community lifecycle should be mindful to So, it is not surprising that Development (ABCD) Institute continue to assess their service research identified Village- defines asset mapping as a area to understand the changing sponsored social events as way to map the assets of the needs of their members. This the most frequently accessed community, including people, information is leveraged to craft benefit (Figure 7). However, as institutions, businesses and member services, programs and the Village movement matures, infrastructure (parks, roads, internal operations to ensure the so will its members. Village transportation). They also organization is responsive to members will begin to request consider other components its market. more assistance and support that make up what is “good” for higher-level medical and about the community. Many Overall, service utilization health concerns (e.g., hospital- community organizations research has not been to-home transitions and chronic often focus on the needs or conducted on all 100+ disease management), which deficits of the community. operating Villages. However, will impact the types of services However, the ABCD approach Archstone Foundation funded and partnerships the Villages to community building the Center for Advanced will need to develop to meet conceptualized in 199310 Study of Aging Services at the members’ needs in the future.
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Figure 7 Top 10 Services Utilized by Village Members11
Village Sponsored Social Events...... 70% Classes, Lectures, or Educational Groups...... 51% Calls for Information and Referral...... 45% Companionship / Friendly Visitor...... 30% Transportation...... 29% Home Modifications...... 17% Technology Assistance...... 15% Health Care Advocacy or Management...... 11% Home Safety Assessments...... 7.5% Gardening / Yard Care...... 7%
The Villages use of volunteers better equipped with the associations as well as and community members knowledge of potential government-funded programs in service to each other partner organizations. This and services. The preferred provides an added value to knowledge included: the provider referrals complement the community and supports number and location of senior the services delivered by a comprehensive system to centers, other nonprofits volunteers in the community. address aging needs. Based providing services to seniors, The following section on our research, Villages that businesses catering to provides a discussion on the performed asset mapping senior needs, location and partnerships Villages cultivate regularly (every three to size of intentional senior and maintain in the community five years) found they are communities and homeowners to support their work. 17
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D. Partnerships
KEY FINDINGS
Villages are part of a larger local aging services community which provides many opportunities to build partnerships.
Leveraging partnerships that extend the Village’s ability to serve its members can reduce costs and increase member benefits.
Understanding the local aging landscape helps Villages to identify potential partners and ensures non-duplication and unnecessary competition with local service providers.
Partnerships are crucial to the in-kind gifts, advertising and verifying business licenses / development and longevity discount programs. Venturing bonds, checking references of Villages since lean staffs beyond this, a few Villages and conducting interviews, and volunteer board members have also created alliances Villages provide peace of mind cannot accomplish all that with for-profit “senior services” to members. Villages maintain members need and want. companies (e.g., private duty a list of these providers and Strategic alignments have care or home health) that update the list based upon the added advantage of directly complement Village member recommendations. leveraging smaller staffing member services. Apart from Villages state that access structures to reduce costs and community service motives, to a preferred provider increase benefits. Carefully businesses certainly want network is highly desired by cultivated relationships more customers and profits. members. However, the formal with other community- Businesses can provide a management of this benefit based organizations and Village with meaningful in- can cause administrative publicly supported agencies kind, non-contractual giving challenges. The more organic can eliminate perceived – for example: office space, process, rather than a formal competitive threats. Non- customer lists, marketing documentation process, is duplication of services is a services or back-office help. preferable because it eliminates major tenet of the model, and This support is good for the time-consuming practice organizations have expressed the Village. of recruiting and vetting this principle through outreach providers and maintaining a to overcome initial resistance Villages offer an array of complex management system. from local providers. preferred providers (e.g., The practice of volunteers plumbers, home care agencies, and members serving each Currently, most Villages receive handymen, dog walkers, etc.) other is valuable and supports at least some form of local as a membership benefit. By a comprehensive system to business support through cash, performing background checks, address aging needs. 18
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As they mature, Villages and for-profit businesses) to realize the myriad of benefits promote community-based that stem from aligning with healthy and friendly aging complementary organizations initiatives. Understanding and strategic partners to the local aging landscape leverage local assets. Villages not only helps identify cultivate partners to assist potential partners, but it also them in fulfilling member ensures non-duplication and requests as part of a preferred unnecessary competition with provider referral system. Some local service providers. have aligned themselves with other entities (nonprofit
E. Marketing and Communication
KEY FINDINGS
Marketing is more than about getting new members. It is also about messaging, outreach, and visibility.
Villages dedicate at least 5% of volunteer and staff time on community outreach and general marketing activities.
Member testimonials and house parties (a.k.a. coffee chats) hosted in members’ homes have the greatest impact.
Villages play a valuable role for the Village model. The in the community with their Village value proposition is ability to collaborate with the “promise of value to be external partners and build delivered and acknowledged a circle of support to allow and a belief from the [member] members to remain in their that value will be delivered community. Research suggests and experienced”12 through that an increase in social their membership. Providing engagement, fall prevention, assistance to members to home modifications and access navigate their individual to services can have a positive aging processes is a valuable impact on the health and commodity for the Village. wellbeing of older adults and Villages highlight their value allow them to age at home. proposition in their messaging Villages have the components in to current and potential place for social impact: services, members and external partners programs and peer relationships, as a cornerstone to marketing and this is the value proposition and communication activities. 19
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Figure 8 Marketing and Communication Channels13
Employees, Partners, Board Meetings 1-to-1 Direct Pitch to Members, Family, Friends Select Media Paid Advertisement in Select eFlyer Blast Online or Offline Publications Author Article/ Placement Webinars Conferences Phone 1-to-1 Facebook Page Web Site Home Page (public) Post Mail Posts to Select Email and Email Signature (letter, postcard, other...) LinkedIn Groups (plus biz cards, stationery and all print materials too) Paid Advertisement Press Release to Media List on Select Industry or Twitter (own and/or CI) Association Web Site Letters to Editor Event Offline Google AdWords Teleconference and/or With Webinar
Crafting effective programs, visibility. Marketing connects to-peer connections. As communications and Villages to partners, volunteers Villages continue to grow, operations begins with a and funders who further the engagement of younger deep understanding of a support their mission. Having a volunteers and continued community’s needs and variety of marketing channels testing of new communication desires. Building awareness and diverse communication channels will help support for the organization and channels is important for sustainability. Our research its mission is key to growth all Villages. found that member testimonials and sustainability. Research and house parties (aka coffee found that sustainable Social media channels and the chats) hosted in members’ Villages dedicate at least 5% use of technology remain areas homes have the greatest impact of volunteer and staff time of growth for Villages. All of in building awareness of the on community outreach and the participating Villages have Village and recruiting new general marketing activities. a website and / or some web members and volunteers. presence as a communication Marketing allows Villages channel. Many Village leaders Villages at all stages along the to spread their message continue to struggle with organization lifecycle must throughout a number of technology and social media in have a clear, concise message communication channels an increasingly techno-centric and the ability to express their (Figure 8). Villages can reach world. As a result, Villages value proposition as part of intended audiences and build utilize low-tech channels such their “ask”. For example, the awareness through these as newsletters, flyers, social ask for a prospective member channels. Villages researched gatherings and phone calls is to join the Village. The ask for this report understand that as well as high-tech channels for a potential sponsor is to marketing is not just about such as social media, emails support the organization’s getting new members. It is also and online member portals mission and cause. about messaging, outreach and for e-newsletters and peer- Both involve different 20
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messaging, but both messages their community. Village leaders should be derived from the researched for this report learned same brand platform. A early in their Village formation It’s important to shift brand promise describes the that using the terms “elderly” organization’s value created and “senior citizen” were off- “messaging away from by filling an unmet or under- putting to potential members met need in a relevant, unique because of connotations of being solely a provider and consistent way. The most infirmity, social irrelevance and of aging services to effective marketing comes cognitive decline. Also, these from understanding the terms do not accurately reflect being a connector unique needs of the audience Villages’ true value and brand. (e.g., prospective member, “Connecting language” (Figure and facilitator of funder, local government 9) used for member recruitment, representative, etc.). partnership development, donor social engagement cultivation and volunteer growth to support the whole Based upon the research of has proven effective. Linda the Villages for this report Zimmer, President and CEO of person. the most effective messaging MarCom Interactive who worked promotes hope, fun, social care, with the nine California Villages, positive interdependence, and it suggests a list of connecting positions the Village as the “go- language that Villages could —Village Executive” Director to” place for aging gracefully, employ in their messaging. with dignity and connecting to
Figure 9 Connecting Language for Villages14 Examples of Distancing Language Connecting Language messaging approaches used by Villages: Aging Friends
Independence Freedom “Villages are like the automobile club of Resources Happiness aging —call upon us when you need us.” Assist Neighbors “Join a Village so you Community Access won’t be alone.” Program Safe “Aging does not have Enroll Confidence to be a negative experience —a Village Caregivers Enrich can make it easier.” Model Engage “Volunteering gives you purpose and keeps you engaged.” 21
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maintaining accounting KEY FINDINGS records, setting spending Villages do not thrive on membership dues alone; priorities and approving diversity in funding ensures longevity. expenditures to support operations. Research suggests Extensive use of volunteers and in-kind services can that Village sustainability significantly reduce overhead cost. is correlated with revenue generation, cost control and responsible financial stewardship. The following Strong fiscal management mission. Ensuring that Villages sections discuss components and consistent fiduciary have the financial capacity that support long-term oversight by the Village staff to deliver member benefits financial viability, including and board plays a central role and adapt to market changes revenue diversification, use of in long-term sustainability. is key to sustainability. funds, fiduciary management Organizations require Villages must address the and oversight and leveraging adequate funds to support “nuts-and-bolts” issues of non-financial resources and in- program capacity and their running a nonprofit business: kind services.
A. Revenue Diversification
Bringing in enough revenue Village revenue diversification, to cover expenses is key the impact of the decreased to sustainability; however, grant funding will allow the it does not guarantee it. Village to continue to provide Rather, revenue diversification member services with minor provides a stable financial adjustments as opposed to infrastructure needed for shutting its doors. In the longevity by allowing the concept and startup stage, Village not to rely heavily Village revenue is derived on one source of revenue. from member fees, grants Strong diversification ensures and individual donations. revenue is derived from Setting the membership various sources including fee is often a challenge for member fees, donations, Village founders. According to grant funding, in-kind research on operating Villages, contributions, etc. which can the average membership fee allow the Village to address for an individual is $430 / the unpredictable nature of year and household is $600 / these sources. For example, year.15 Village leaders should grant funding received in one be mindful of operating costs year may not be available in their market and also their the next year. With strong market’s willingness to pay. 22
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The Village to Village Network 16 provides a Financial Feasibility Figure 10 Average Village Revenue Mix Tool that offers both startup and established Villages a resource to create projections 5% based upon three levels of Membership Fees 11.5% fees. With this tool, leaders Individual Gifts/Donations can assess how much of their 45% operating expenses can be 18% Other covered by fees and how much revenue must be raised. Private Foundation/Corp
20% Goverment Based upon our research, nonprofit service-based organizations are typically faced with tight budgets combined with rising service source for Village operations. to direct as needed. Even demands that often prompt Villages surveyed for this models that are 90%-100% boards and staff to be creative report, in the adolescent and funded by member dues, like in finding new and diverse mature stages, average two Villages with TimeBanks™ revenue sources. Figure to four new members per component model, will likely 10 provides an overview month with average retention have times when additional of the revenue sources of rates of 85%-90%. Villages funds are needed for projects. Villages. Research indicates should strive for member The other sources of revenue membership fees, on average, fees to cover at least 70% detailed in Figure 10 provide cover 45% of expenses; of operating expenses. This a valuable guide for Villages however, these fees do not would allow the organization to seek additional funding to provide the singular funding to have unrestricted revenue support operations.
B. Use of Funds
According to research conducted by the University of Maryland, School of Social Work, the average Village annual budget totals $118,671.17 Research for this report was limited in the ability to analyze an “apples- to-apples” comparison due to the fact that each Village maintains its own financial accounting system.
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Figure 11 Budgeting Benchmarks for General Village Operations
Administration Includes the general labor costs to administer the day-to-day activities: 12% administrative, bookkeeping, insurance, rent, utilities and general overhead expenses
Program / Direct Includes the labor, direct expenses, fixed assets, volunteer 80% Member Services management, program delivery, and other direct member services.
Includes the labor, materials and business entertainment fees (e.g. lunch / dinner meetings, travel) directly related to raising funds or Fundraising and Partnership making connections to build partnerships that will provide additional 5% Development member services or other benefits (monetary and in-kind) to support the delivery of member services.
Includes the labor, materials, special events and general marketing Marketing and Outreach expenses related to increasing the visibility of the organization in an 3-5% effort to garner community support.
In order to analyze expenses budget. The balance of other and provide common expenses includes marketing benchmarks, Capital Impact and outreach, member Partners had to rely upon its services management, own expertise and guidance volunteers and fundraising. from accepted nonprofit Marketing and outreach industry standards. Figure expenses are often 3%-5% of 11 provides useful budgeting the annual budget and include benchmarks for typical the expenses incurred by the operating expenses as a Village to raise funds. percentage of revenue. While not directly attributable to Villages in the startup stage the Village business model, build the initial startup these benchmarks can provide budget to include onetime a good guide for Villages to expenses to set up and analyze the breakdown of establish operations. Startup their expenses. expenses include legal fees to establish its organization As service-based, nonprofit structure, funds to set up and organizations, Villages establish an office (even virtual empower volunteers and staff offices have expenses), office to deliver services. The largest furniture and initial marketing expense for Villages with paid and outreach materials to staff is personnel costs and the create excitement and gain delivery of member services at community support. 80% of the total annual Village 24
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C. Fiduciary Management and Oversight
Ensuring good financial outputs and progress toward financial management. health and creating strategy goals. These dashboards Month-to-month thinking, that is adaptable for long- allow Villages to monitor while appropriate for short- term growth are key aspects their performance on their term objectives, does not of the board’s role. Regular key strategic objectives. By support long-range planning. analysis and strong fiscal reviewing its progress based Long-term plans identify management are essential upon a set of benchmarks, the opportunities and anticipate for long-term sustainability Village can review trends and changes in membership of the organization. Villages make business adjustments composition, local economies in the adolescent and mature as needed. The dashboard and public policies that might stages of their organization is an important tool for the affect membership. Tools to lifecycle perform regular staff and board as it gives help Villages determine the assessments of financial health them a very clear picture of best financial models are by reviewing the Village’s achievements and areas for available through the Village revenue diversification, profit improvement based upon their to Village Network. These margin and earned revenue strategic objectives. include a financial feasibility coverage. Nearly half of the toolkit and dashboard Villages interviewed for this All Villages surveyed develop templates. Additionally, report utilize a dashboard annual budgets—although Villages leverage their board (Appendix V) to manage with varying degrees of members with expertise in key strategic metrics and detail. Often there is an finance and accounting to act provide a regular (monthly or initial learning curve for as key advisors. quarterly) snapshot of their budget development and
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D. Leveraging non-monetary and in-kind resources
Villages utilize volunteers and services. While volunteers community colleges to offer in-kind services to control are “free” labor, there are a lecture or enrichment the cost of operations and unique costs associated with series for members. This extend their capacity. The recruiting, maintaining and partnership provides access to intangible and altruistic honoring them. However, these lifelong learning as a member benefits of creating civic costs are considerably less benefit without the Village engagement opportunities than those associated with having to bear the full cost are immeasurable. Volunteers maintaining a paid of implementing the course. bring many skills to a Village staff pool. Such non-monetary services and their financial impact are not typically reflected in is an important factor of Villages also tap community the revenue or expenses of the financial stability. Volunteers partnerships and connections Village budget. However, they effectively act as unpaid staff to support the delivery are an important component and provide opportunities of services. For example, of a Village’s financial health. for Villages to extend their Villages may leverage their capacity and deliver member relationship with local
E. Viability and Longevity
Continued diligence of the Though these measures will toolkits and publications board and staff toward take time to implement, their to help community-based improving their financial improvements to the financial organizations to strengthen position is key to long-term health of the Village will allow their business models in viability. While Villages have continued operations and order to take advantage of a tremendously positive positive community impact. opportunities to connect impact on their communities with health care providers. and the lives of older adults, Care coordination and care According to The SCAN their financial health has the transitions for older adults Foundation Foundation potential to stall, disrupt or are growing issues for the research, Villages that can even dismantle the progress U.S. health care system with provide support services, achieved. In order to continue the Affordable Care Act such as care transitions, strengthening their financial enactment. As the aging chronic disease management, viability, Villages must take a population continues to grow transportation, friendly balanced approach to revenue to unprecedented ranks, visitor, home assessments diversification, use of funds Villages are positioned well and caregiver supports, and leveraging non-monetary to contract with health, will be well-positioned to and in-kind services. For primary and long-term care take advantage of new instance, a Village with limited providers. These partnerships opportunities created as part revenue diversification can provide social supports to of the health care reform, implement a fee for non- wrap around primary and which will create a new members to attend events. post-acute care services. revenue source.18 This can create a new revenue The SCAN Foundation source to support the Village. has released a series of 26
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Research conducted by able to adapt easily to the Impact Partners reviewed Rutgers University in 2012 shifting market while achieving these four business models found that an overwhelming its mission. Sustainability and have defined these amount of Villages (97%) are combines three critical factors in Figure 12 below. These organized as nonprofit, self- working effectively in tandem: models represent the unique governing and independent leadership, adaptability and business infrastructures that organizations. These program capacity. operate similarly through the findings provide a baseline foundation of the nonprofit, characteristic of the Village While the guiding principles service-based organizational model. Research for this (Figure 1) are similar among all structure. The following section report found the key factors of the Villages, this research provides an overview of the for sustainability are similar identified four unique business four models, a review of shared for all Villages regardless of models emerging in the commonalities and a discussion the business model chosen. field: Grassroots, Hub and of the differences that Village Sustainability is achieved Spoke, Parent Sponsored leaders and partners should when the organization, its Organization and the Village consider as they implement leadership and funders are with TimeBanks™. Capital their Village.
Figure 12 Description of the Four Village Business Models
Village Business Model Description
This business model is the most common structure for a Village where the organization is a stand-alone nonprofit that is administered through a combination of paid staff and volunteers. Grassroots Members are encouraged to participate in the governance by serving on the board or committees.
This model provides a way for existing social service and aging service organizations to support the Village model. The parent organization serves as a fiscal agent and supports the Village Parent Sponsored Village organization by providing the back office, legal, financial management, and office space.
This model brings together multiple communities or neighborhood enclaves to share costs and back office support in order to serve a wider area. This model allows multiple smaller villages (“spokes”) Hub and Spoke to be created in an area with a central Village (“hub”) that handles the IT, database management, accounting, and other support roles (“back office”) for the “spoke” Villages.
This model combines the TimeBanks™ model with the Village. TimeBanks™ allows members to “exchange time” and earn time dollars for volunteering. Time dollars are exchanged for services, or donated Village with TimeBanks™ to a community pool to benefit those unable to provide a service. This model is beginning to emerge as a way to create a lower fee structure for Village membership where time “banked” is provided as a part of the membership fee.
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Physical Location Eighty-six percent of Villages have a physical location to centralize daily operations. An office helps to cement the Village’s presence, taking it from a vague concept to a real community resource and business.
Systems Villages have developed foundational or “ground-up” business systems utilizing nonprofit best practices and peer sharing. Sound internal operating systems are often a big challenge in the concept stage. Pioneering Villages operated more reactively and now struggle to realign internal processes with new knowledge. As the Village movement matures, peer-to-peer knowledge exchange on the development and use of business systems will help future leaders.
Policies & Procedures Villages in this study have limited policies in place for managing finances, volunteers, and member requests. Similarly, Villages often do not have policies in place to address board conduct, data and intellectual property, compliance with Sarbanes Oxley, and other legal and fiduciary (financial) concerns. This policy gap could potentially derail sustainability and is an area of growth for Villages in the adolescent and mature stages.
Technology Villages value data collection and evaluation as tools to track progress, compare performance with objectives, and ensure program viability. Most, however, are frustrated by the lack of user-friendly tools to help track members, partners, donors, volunteers and board members. Villages could benefit from a “Village- friendly” electronic platform that combines customer relation and internal financial management with data collection to measure benchmarks.
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A. Grassroots, All Volunteer Model
The Grassroots model is the a nontraditional approach most common of the Village to managing the operations models (97%) and is often of a nonprofit organization attributed to the Beacon Hill including the Village. All- Village, the first Grassroots volunteer Villages typically do Village in the United not charge for membership States.19 Village operational or charge a nominal amount. components, including The nuance of operating governance, marketing as an all-volunteer Village and financial management is unique to the traditional, discussed earlier in this report grassroots, nonprofit business cover the general operations infrastructure. Research of all of the business models suggests that this method including the Grassroots may provide a Village model model. Research suggests that can be implemented that there are a handful of in communities with low Grassroots Villages operating to moderate incomes. The as “all-volunteer”, meaning following sections provide they rely solely on a group the unique attributes and of committed community differences to the traditional volunteers and Village Village business model as members with no paid staff to detailed in previous sections manage operations. The all- of this report. volunteer construct provides
1. Staffing the Operations
Grassroots all-volunteer sizing the member services communication activities. Villages that were researched to meet the Village’s capacity Another set of leaders may for this report exist with to address member requests. share the responsibilities a virtual office, usually a Instead of employing paid of recruiting, training and member’s home or via an staff, Grassroots Villages managing volunteers to online platform. With an all- are managed by a group respond to member requests. volunteer staffing structure, of volunteers that serve as Similar to all Villages, services provided by the managers or leaders. These regardless of business model, Village are tied directly to the volunteers often serve on the the all-volunteer Grassroots expertise of the members and Board of Directors and will Villages leverage partnerships volunteers. Within this model, divide up the diverse tasks that with existing local service the members and governing would be typically performed providers, organizations and body have an awareness of by paid staff members. For businesses to provide a wide the need to balance between example, these Villages may array of resources, programs the expertise and availability have one leader in charge of and social outlets to support of skilled volunteers and managing the marketing and their members. 29
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2. Financial
The largest expense category for Villages regardless of Figure 13 All-Volunteer Village Model Revenue Breakdown business model is labor, but for the all-volunteer Grassroots Village, labor expenses are 100% not incurred. The all-volunteer Grassroots Villages that 80% Donations participated in this research 70% Other reported that by not incurring 60% Revenue labor costs, revenue was able 40% Memebership to go toward covering the Revenue 0% nominal business operating 2013 2014 2015 costs. The annual operating Actual Budget Projected budget for the all-volunteer Grassroots Villages is typically less than the average Village. The Villages that participated in this research have annual build a sound financial base for indicates that the lack of budgets between $7,000 and long-term sustainability. diversity in revenue earned by $12,000, which is about 10% the all-volunteer Grassroots of the average Village annual Information analyzed from Village does not hinder its operating budget. As such the all-volunteer Grassroots sustainability. Research of this the all-volunteer Grassroots Villages that participated in model conducted by Capital Village model has been shown this research, shows that 90% Impact Partners suggests this to balance its expenses and of revenues (Figure 13) were unique Village business model costs per member, which allows earned via member fees. While has been shown to be able to for sufficient excess revenues. financial sustainabilty of a manage member expectations By having excess revenues, typical nonprofit organization and service delivery through this model is able to develop a is based upon having a volunteers and partnership while healthy monthly cash flow and diverse revenue base, research maintaining a high profit margin.
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3. Sustaining the all-volunteer, Grassroots business model
The all-volunteer, Grassroots volunteers, the long-range with natural tendencies of Village model provides the impact on the Village obligation and reciprocity. The best opportunity for long-term sustainability is unknown. financial sustainability and financial stability, but reliance Decreases in availability of replication of the all-volunteer on volunteers may pose a long- volunteers to provide member- Grassroots Village model can term challenge. Being mindful to-member supports due provide an affordable option of the balance between the to a reliance on an aging for low-income communities expertise and availability of volunteer pool will impact seeking to implement the skilled volunteers, the all- the ability of these Villages Village model. This structure volunteer Grassroots Village to expand services and adapt is likely to be successful in model will be challenged if to changing member needs. communities with a large services have to be scaled The availability of a large, active, older adult population based upon the available generous volunteer spirit does who have a substantial amount pool of volunteers. While not exist in every community. of free time and can devote the all-volunteer Grassroots The scaling and replication of considerable time to volunteer Villages that participated in the all-volunteer Grassroots recruitment efforts to ensure this research reported healthy Village model can only work an uninterrupted pool of pools of available community where there are residents engaged volunteers.
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B. Parent Sponsored Villages
Existing social and aging parent organization’s nonprofit service organizations are status to support startup strong assets in communities fundraising efforts. The Parent that often view the Village Sponsored Village business model as an opportunity model allows established to expand their mission. social service organizations Likewise, starting a brand to expand their services new organization is often a to a new market of older long, cumbersome process, adults and offer more diverse and local Village founders do programming beyond their not always have the capacity existing programs and services to do it. Within the Parent that have income eligibility Sponsored Village business requirements. This Village model, the existing social business model also lends service organization can itself to provide a space where support the development of the Village can be “seeded” a Village in the community. In and then separate itself, this business model, the social becoming a nonprofit, stand- service organization serves as alone organization after a few the fiscal agent–or “parent” years. The following sections organization–and supports provide a discussion on the the Village by providing the unique aspects of operations, back office, legal, financial financial management and management and office space. marketing to the Parent In addition, the Village can Sponsored Village model. benefit from utilizing the
1. Operations
Existing social services the overall parent organization. agencies, including continuing The paid staff for the Village is care retirement communities, often employed by the parent agencies on aging and other organization, which provides community-based nonprofits, access to employee benefits are the main organizations and professional development that serve as the “parent” in opportunities to strengthen the Parent Sponsored Village its capacity to operate the model. In this model, the Village. The Parent Sponsored costs of staff and overhead Villages have a systems are included as part of the advantage over other Village parent organization’s budget. business models assessed in The Village is supported as a this project. Research of the “business unit” or program of Parent Sponsored Villages as 32
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part of this project identified the parent organization’s for the Village. The Parent that the concept and startup services “begin”. This Village Sponsored Village business stages are often shorter for business model allows the model relies upon the parent Parent Sponsored Villages traditionally service-focused organization’s policies and than other business models organization to engage older procedures. Leveraging due to a higher level of adults in the community in a existing infrastructure, business acumen already peer-to-peer service setting. operating processes, in place. Village staff and There is a desire to ensure governance, marketing volunteers engage with the Village principles (Figure 1) expertise and volunteers parent organization on the are supported. Therefore, allows the Parent Sponsored planning and delivery of many existing agencies have Village to focus on new services and management to change their internal member recruitment, services of member requests. Parent culture to allow older adults and program delivery instead Sponsored Villages have to be and community members to of spending time and energy mindful of where the Village be a part of the governance developing systems from services “end” and where and decision making process scratch.
2. Financials
The Parent Sponsored Village model differs from other Figure 14 Parent Sponsored Village Model Revenue Breakdown Village business models through the monetary and non-monetary resources 100% provided by the parent organization to the semi- 80% Donations independent Village. While 70% Other the Parent Sponsored Village 60% Revenue collects membership dues, 40% Memebership this revenue contributes to Revenue 0% the business unit (or program) 2012 2013 2014 2015 2016 Actual Actual Actual Projected Projected that is part of the larger parent organization’s budget. Research findings from analysis of two Parent Sponsored Villages for this report shows that this model has strong “for sale” products (Figure individuals, corporations and revenue diversification, 14). One Parent Sponsored several foundation grants. including revenue derived from Village interviewed for this Overall, the Parent Sponsored membership fees, program report generates revenues by Villages that participated in fees, vendor registration selling personal safety devices this research report 70% of fees, program revenue, developed in partnership with their revenue from membership contributions from the parent a local corporate partner. The fees, service fees or product organization and earned Parent Sponsored Villages are sales, which can lead to long- revenue generated from supported by donations from term sustainability. 33
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The Village, as a business Access to other parent unit of the larger supporting organization staff and a wider organization, must be able level of social services (e.g., case to cover the costs of the management, care coordination delivery of services. The and transition, public assistance) Parent Sponsored Village allow the Parent Sponsored business model provides Villages the opportunity to more substantial business rely on internal resources and and operational infrastructure programs to sustain operations than the other three Village and adapt to changing member business models researched. service needs.
3. Marketing
The communication and brand for the Parent Sponsored Village are managed through the parent organization’s existing marketing team. This is a positive aspect of this model as the Village can utilize established communication channels. However, Villages seeking to utilize this business model will want to ensure the Village brand is distinct.
4. Partnerships / Relationships
It should be noted that Parent Parent Organizations are able Sponsored Villages, who have to participate in demonstration access to a constellation of and pilot programs to test partners and providers, are and replicate evidence based already leveraging these programs – like chronic relationships to deliver disease self-management, fall member services. While not prevention and care transition operationally distinct from programs. Through this the other business models, business model, the Village the Parent Sponsored Villages and its members are able to have the unique ability to build participate and benefit from upon existing partnerships these local demonstrations maintained by the parent and pilot programs. organization. For example, 34
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C. Hub and Spoke
The Hub and Spoke Village This model brings together model is an emerging business multiple neighborhoods to model being utilized by share operating costs and Villages located in large back office support in order geographic areas. The Hub to impact a wider market by and Spoke Village Model has working cooperatively. This emerged for communities model allows multiple smaller that prefer to create their Villages (spokes) to surround own “spoke” Village to a central Village (hub) that coordinate their unique handles technology, database programs and services with management, accounting and support from the “hub”. other support (back office).
1. Operations
Though member services and Spoke Village. The role their potential to serve local and principles (Figure 1) are of the hub is to provide members (Figure 15). the same as the other Village general administration and business models, most of business support, maintain In general, hubs have a staff the administrative functions the organization’s brand and physical office space, are centralized in the hub, message and provide capacity which becomes the central or home office, for the Hub to the spokes to maximize administration for the Village. The spokes appear to be more like “local outlets” or “satellite” Figure 15 Role of Village Hub Villages that are launched with the assistance of the hub. Village spokes are located in a predetermined geographic area, often confined to smaller areas like distinct VILLAGE Funders & neighborhoods, cultural Hub Sponsosrs enclaves, condo or apartment General buildings and do not always Administration require a physical office and Business Local space. The Hub and Spoke Operations Partners Villages researched for this Maintaining the Brand report indicated that spokes prefer the family-like aspect Capacity Governing Building for Board of sharing each others’ homes Spokes and fully leveraging available community spaces (e.g., local library, schools, restaurants etc.). Additionally, spokes 35
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Figure 16 Role of Village Spokes exist on modest budgets and have no desire to spend limited funds on rent.
Spokes provide a “boots VILLAGE on the ground” grassroots LOCAL NETWORK Members organization to manage daily Governing Council member services (Figure 16). The spokes craft their member Day to Day Local Partners services and programs based Operations and Business upon their area’s unique needs Administration and assets. The founders of the spokes are identified Services— Access, Wellness Village Hub and supported by the hub, and Engagement facilitating a supportive concept and startup stage for Village development.
2. Financial Management
Based upon findings from the Figure 17 Hub and Spoke Village Profit Margin research for this report, the Hub and Spoke Village shows the most promise for adaptability in diverse community types 120% (urban, rural and suburban). 100% This model also creates efficacy 80% through cost sharing and 60% centralized administration. The centralization of marketing, 40% brand management, accounting 20% and recruitment and training 0% of volunteers provides a -20% cost-effective way to sustain -40% operations. -60% 2012 2013 2014 2015 2016 As demonstrated in Figure Actual Actual Budget Projected Projected 17, the average profit margin for the three Hub and Spoke Villages that participated in this Participating Participating Participating Hub & Spoke research indicates that they Village 1 Village 2 Village 3 Average are managing their revenues and expenses in a sustainable 36
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manner. These Hub and Spoke sources including sponsorships, financial structure to ensure the Villages are able, on average, donations and bequests. The spokes are active participants to sustain a profit margin and economies of scale generated and have a vested interest in “break even” because their through the Hub and Spoke long-term sustainability. A revenues are greater than or Village model keep the cost shared financial system would equal to expenses. This small of general administration, require the spokes to contribute sample cannot confirm this including insurance, payroll and financially back to the hub projected financial stability; marketing, affordable for the to sustain central Village however, it reveals this model’s Village spokes. Cost sharing operations. This shared revenue ability to support the replication across the entire Hub and structure can be phased in of Villages in larger service Spoke Village enables maximum incrementally over time to allow areas in a cost-effective way. operational efficiencies. The the Hub and Spoke Villages to Hub and Spoke Villages in build up fundraising capacity The small sample of Hub and this research have the highest and local systems at the spoke Spoke Villages demonstrates earned revenue among the four level. Based upon either a that earned revenues Village Business models. percentage of direct expenses cover approximately 60% or a flat rate, the contribution of of expenses. Here, earned Lessons learned from the spokes to the hub will be critical revenue is equal to the amount participating Hub and Spoke to support the sustainability of of member fees that can Villages for this project include this unique business model. cover operations without the strong recommendation the addition of other income that the hub develop a shared
3. Governance
The Hub and Spoke Village business model creates a shared economy between the hub and spokes. Governance of this business model occurs at two levels. At the hub level, the board is made up of representatives from each spoke with voting seats. Additionally, each spoke has an advisory council to inform its specific activities and services around member recruitment, program development and fundraising. This shared governance structure provides transparency and increased communication and helps the Hub and Spoke Village meet its value proposition. 37
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4. Marketing
As part of the central Village activities, the hub, with input from the spokes, creates and maintains the brand to ensure consistent messaging and visual feel through all touch-points within the entire Village in the local market. This responsibility includes providing templates to spokes to aid in outreach activities (e.g., newsletters, brochures, website and press releases) and supplying infrastructure to support marketing. Typically, the hub maintains the website for the Village, and it may provide space for each spoke to manage its activities. Alternatively, the hub may assist in the design, development and maintenance of a spoke’s website content.
5. Partnerships / Relationships
As the central core of It provides a consistent and the Village, the hub is familiar touch-point for the positioned well to build Village and allows the hub strategic partnerships to negotiate on behalf of the with providers, state and spokes for connections to regional governments, direct member benefits and private businesses and other programming. Partnerships organizations. This model’s provide opportunities for unique ability to expand the group purchasing, which reach of Village partnerships creates discounts that spokes to impact the larger market can pass on to their members. is attractive to local partners. 38
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D. Villages with TimeBanks™ Component
Members join the TimeBank neighbors exchanging skills, for a small fee and schedule talents and resources for time service exchanges online. rather than money (one hour While volunteerism is crucial volunteered is equal to one to the success of any Village, time bank dollar). Time dollars this business model takes are exchanged for services coordination of volunteers to a or donated to a community new level since members can pool to benefit those unable “exchange time” and “earn time to provide a service. The dollars” for volunteering. This TimeBanks™ model provides a concept, combined with the more structured approach for Village model, is beginning to member-to-member supports emerge as a way to create a and volunteer manpower to lower fee structure for Village support member requests. membership where time “banked” is provided as a part The TimeBanks™ model is of the membership fee. being integrated into a few Village communities and The TimeBanks™ model has operates similarly to other been around since the early models in governance and 1990s and promotes reciprocity marketing. However, the use of among members as well as many volunteers allows Villages a low cost way to connect to provide a wider range of them. Defined by TimeBanks™ personal member services. USA, a timebank is based on
1. Operations
The Village with TimeBanks™ combined, and the delivery of business model relies on services is performed through volunteers and organically referrals, preferred providers connected member-to-member and volunteers. services. Therefore, paid staff is kept at a minimum, and the Additionally, member-to- emphasis is on volunteerism member services are performed and community-based and through the TimeBanks™ delivered programs. Villages exchange, which encourages can utilize the TimeBanks™ members to build strong service matching software relationships. Often these platform, created by members start to provide TimeBanks™ USA, which helps services to each other without to facilitate the delivery of informing the Village staff. These member services. Village and member-to-member service TimeBanks™ membership is exchanges create a challenge, 39
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 V. By the Model: Unique Attributes
since it is often difficult to measure the number of services provided, their impact and their quality. The Village with TimeBanks™ model combines the traditional grassroots structure with the TimeBanks™ structure. Therefore, the Village is able to get operational assistance from two national organizations: Village to Village Network and TimeBanks™ USA. There is time exchange software to help manage member-to- member exchanges. However, this technology does not always coincide with Village service coordination software. Villages using this model must be diligent to combine service utilization data in one place to analyze growth and long-term sustainability accurately.
2. Financials
The Village with TimeBanks™ business model is distinguished Figure 18 Village with TimeBanks™ Component Revenue Breakdown from the other models on a financial basis by the non- monetary resources shared 100% among volunteers who “bank” 80% Donations their time spent serving the Village community, thus 70% Other Revenue offsetting total expenses. 60% This model often covers 100% 40% Memebership Revenue of expenses by membership 0% fees and other earned 2012 2013 2014 2015 2016 revenue. On average, revenue Actual Actual Budget Projected Projected diversification is strengthened in the TimeBanks™ model due to increased in-kind contributions sourced a larger percentage of the (including grants and from banked time and Village with TimeBanks™ sponsorships) rather than other resources to support business model’s revenues is from membership fees, as member services. As a result, derived from “Other Income” illustrated in Figure 18. 40
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 VI. Looking Ahead and Future Planning
A large, untapped strategic providing increased cost opportunity arises from savings to sustain a healthy the Village’s in-depth vision of successful aging.20 understanding of older adults. Supporting and expanding As America’s population ages, aging in community also nearly every business must provides a range of individual, adapt and respond to the community and economic needs of older customers. benefits. The outcomes and Businesses who offer a social impact achieved by broader spectrum of consumer Villages are key factors in goods and services directed planning for the growth of this to older adults may face a movement. steep learning curve as they enter the market. Through Villages create social capital a strategic relationship with in the community and support a Village, businesses can a vision for successful aging. acquire crucial insight into Members are empowered to the needs and preferences be of value to themselves of older adults. The business and others with 51% of them can benefit financially from actively volunteering for this understanding by being their Village. According to better able to serve older an Archstone Foundation adult customers. As the aging funded evaluation conducted population continues to grow by the University of California to unprecedented ranks, Berkeley’s Center for the need for Villages in our Advanced Study of Aging communities will increase. Services: “Villages have the strongest impact in the area of Individuals, families, promoting social engagement communities and policymakers and facilitating access to are creating solutions to services. Village increases their address our older population’s [members] ability to age in needs yet still preserve their place”.21 sense of community and independence. The aging There is growing evidence in community concept identifying the value of social has been defined as “the engagement and its promotion ability to live in one’s own of healthful living, shorter home and community recovery time from illness or safely, independently and acute episodes and the ability comfortably, regardless of to remain living independently age, income or ability level”. in one’s community. Social Studies have shown that isolation is increased in older aging in community improves adults as many see family older adults’ quality of life members move away, lose and health outcomes while a life partner or decline in 41
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 VI. Looking Ahead and Future Planning
“Villages have the strongest impact in the area of promoting social engagement and facilitating access to services. Village increases their [members] ability to age in place.”22
physical mobility. As a result, local market to ensure it is surveys, open dialogue this loss of “formal social roles prepared to adapt to trends with members, a program and meaningful connections” or changes that impact its committee that represents can lead to poor health ability to deliver on its brand the general membership habits, falls, depression and promise. and simple communication noncompliance with medical tools employed by members, directives. Data collection provides a staff and board. Villages, basis for an organization’s along with other sustainable Villages know that crafting long-term viability to nonprofit organizations, truly effective programs, be adaptable to shifting value understanding their communications and trends and market needs. immediate market’s needs to operations begins with a The information allows the inform future strategy and deep understanding of a board and staff to gauge planning. Member feedback community’s needs and opportunities to meet future is a powerful tool to craft desires. During the Village member needs. Villages programs and services that concept and startup stages of utilize a feedback mechanism will sustain the organization development, having a better within their membership to into the future. understanding of the needs help assess their programs’ and local program gaps is appropriateness and Evaluation of the Village’s critical to developing valued- long-term viability. These impact is critical to partners added member services. As mechanisms include: periodic who are engaged in Age the organization matures, it member questionnaires, Friendly Community initiatives. must continue to assess its event-specific satisfaction As the aging population 42
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 VI. Looking Ahead and Future Planning
grows, local communities with limited success. Most are seeking evidence-based Villages agree that much more solutions to allow older adults needs to be done to quell the of all incomes to remain in “elite” perception the general the community. The Village public has of them and to model plays an important find effective ways to include role in the community aging seniors from all cultural and network and can be integrated social-economic communities. into the overall work of Many Villages are actively community partners. Most working on this issue, and Villages recognize the vital it is clear it could become a role their programs could roadblock to sustainability play in improving the lives of unless addressed. Several lower income and underserved Villages report that populations, and they offer emphasizing the cost-effective discounted memberships nature of joining a Village to seniors with limited and attracts the entire middle fixed income. Using the class whose financial status Elder Economic Security is wildly different. Villages Index23 the participating are an economic dream come Villages have developed true for cash-poor, house-rich policies and procedures to populations. welcome this population. Subsidized members are As this movement matures, afforded the same status Villages will need to create a and benefits as “full freight” systemic evaluation process members. Forty-six percent that consistently measures of the Villages participating their impact. Villages are now in this research identify their seeing members growing older community as urban, which and having additional needs. provides diversity within the The episodic nature of aging organization. Twelve of the 14 means that Villages must be participating Villages provide a nimble in order to address subsidized membership option, these changes. Regular averaging approximately 15 strategic planning and long- subsidies offered at any one term visioning will support the time. According to the 2012 organization’s ability to react Organizational Survey of to market trends and therefore operating Villages, 67% of ensure sustainability. all Villages offer subsidized memberships for individuals Research indicates that with lower incomes.24 consistent use of long- range and strategic planning Villages actively reach out tools is often an exception to communities of color and rather than a rule among the LGBT populations although currently operating Villages 43
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 VI. Looking Ahead and Future Planning
participating in this project. effectiveness with medical to low-resourced populations; Research suggests this is outcomes. Villages can play all members of the community an area where increased an important role in providing can benefit from the supports capacity building and training non-medical supports through offered. Villages appear to tools can enable Villages to a low-cost, person-centered have the greatest benefit integrate this level of planning approach, which should lead for members who are most into their operations. Two to to greater savings and social involved. There are fewer three year strategic plans are impact. Villages can be valuable positive impacts for members recommended. Also, regular partners to hospitals and local in poor health, prompting reviews of goals through health care providers in care questions about long-term the dashboard and financial transition and chronic disease effectiveness in helping more benchmarks will allow Village management. This collaboration frail seniors age in place.25 staff, volunteers and boards can reduce frequent returns to Villages are working on this to foster decision-making that emergency rooms and hospital challenge with communities aligns with stated long-term readmissions. and partners to expand their objectives. offerings. Villages have emerged in The health care industry, both moderate and middle class There exists an internal debate public and private, has been communities to fill voids left within the Village movement trending toward identifying by traditional aging services. as to how it impacts low- efficiency of operations and While many view Villagers as income populations and effectiveness of medical people with means and assets, publicly supported social interventions as key levers many members are on fixed services for aging in the in cost savings. The social incomes or were hard hit by community. On one hand, determinants of health are the latest recession and drop Villages provide an outlet for now being recognized as part in housing market. Aging moderate income older adults of the health care industry’s support needs are not limited to preserve their assets longer
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while reducing the onslaught and debate how the delivery impact on “their members’ of people impoverishing of services is provided. ability to access services and themselves in order to access health care”.27 People with an community-based services. Villages have been successful ongoing source of care have They also reduce “spend at reducing social isolation. better health outcomes and down” of the moderate- The Center for Advancing fewer disparities and costs.28 income population to publicly Study of Aging Services supported services that are at University of California The Village model therefore already oversubscribed with Berkeley (CASAS) reports that teaches service providers, limited funding. 79% of those surveyed felt faith communities, affordable they knew more people as a housing providers and other Alternatively, greater emphasis result of their membership. publicly funded partners how is being placed on the social Fifty-nine percent felt “more to engage and empower low- determinants of health among socially connected”, a factor income populations in order government agencies and known to promote aging in to expand their capacity. providers of Medicaid-funded place”.26 Improving health These services—through peer Home and Community Based care services depends partly supports, volunteers and civic Services programs. Villages on ensuring that people have engagement—allow members are in a good position to an ongoing source of care. more involvement, which in leverage knowledge they have The CASAS also reports turn builds social capital that amassed to inform, influence that Villages have a positive strengthens the community. 45
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 VII. Conclusion
With its research of the should harness the power market needs. Review and trailblazers of this growing and expertise of experienced assessment of preferred service movement, this report is a business-oriented volunteers providers should also be done strong step forward for Villages. early so that sound business annually. Establishment of The analysis, findings and processes will be set up. these processes, supported by conclusions will help foster the Villages are like a small adequate technology, will allow growth of stronger Villages in business enterprise. They need Villages to anticipate future the future. Most organizations a business plan, including member needs and understand started out as a personal quest a financial pro-forma that local market shifts—key factors and turned into a labor of builds in at least six months in sustainability. Data collection love. Most founders did not of operating expenses and a and evaluation will help manage set out to start a business and well-planned cash flow. During daily organizational activities, were often unprepared for the the concept and startup stages, and they will “tell the Village complexities that came with Villages should use the business story” and aid in developing hiring staff, running payroll, plan to market to funders, marketing and messaging. paying taxes and complying partners and prospective Hiring thoughtfully, getting to with employment statutes members. know members well, cultivating and laws. This report provides strategic alliances early and insight into balancing the Based upon the analysis in this ultimately including the whole Village mission with nonprofit report, the development of a community will support the business standards to ensure long-range strategic plan that Village mission and vision. the sustainability of its vision. spans two to three years cannot be underscored enough. This For Villages in the adolescent For Villages in the concept plan should develop the process and mature stages, this report development phase, this for data collection and also tell will assist in reviewing and information will provide a the story of the organization’s refreshing current operating helpful roadmap for how mission and stated goals. systems. With a focus on to proceed in building Staff and board should review sustainability, Villages can step infrastructure. Emerging benchmarks, service utilization, back collectively (board, staff, Villages should pay special financial reports and member volunteers, partners, members) attention to planning operations recruitment efforts regularly to identify their place in the and to “test driving” systems to allow the organization to lifecycle, assess the market and before utilizing them. Villages adapt quickly to changing project future member needs. 46
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 VII. Conclusion
This report reveals areas Villages must choose the that need improvement role they want to play in the “Sustainability is within existing Villages, community. Is this a social getting processes organization? A health, including: ready to handle wellness and aging focused organization? A public health growth.” developing a long- organization? Many Villages —Village Leader range strategic plan began as a way to support with a focus on aging in the community. As social impact and a the market shifts and more process for regularly reviewing programmatic attention is given to the Sustainability within the Village and organizational importance of community- movement is possible with a benchmarks based supports on health more business-like approach. outcomes, the movement This mindset will attract funders, formalizing volunteer as a whole needs to be able appeal to a larger audience and programs including orientation, training and to discuss its role. Having produce measurable impacts a recognition process a collective vision of what that will inspire people to to ensure volunteers are Villages nationwide can do join, donate and volunteer. By used as staff extenders allows locally-based Villages to leveraging knowledge from the to support operations identify their long-range vision nonprofit industry regarding engaging board and shore up operations to sustainable operations, Villages members in fund ensure sustainability. There are will be positioned well in their development / new many exciting opportunities community. revenue sources and revealed in this report that in board / committee should inspire Villages to As the baby boomer population succession planning identify their important role continues to age and gain creating marketing in the overall fabric of their political clout, Villages offer a messaging that stresses community. unique cost-effective solution fun, social care, freedom, that people actually prefer over belonging, sharing and As the movement grows and alternatives for aging. Villages confidence in the aging journey members’ needs change, a can capitalize on the infinite Village that is nimble and has knowledge they have amassed finding creative and a solid vision of its value will on low-cost service delivery. The innovative data tracking be able to create partnerships movement must have an equal systems and leverage its role within the seat at the larger aging services creating clearer overall constellation of aging table, leading to innovative and more complete and adult services. If Villages collaborations and potentially policies in hiring, HR, can show cost savings and real new and untapped sources of governance, succession social impact to the health care revenue. Peer sharing among planning and volunteer management system, they will be positioned all Villages will continue to be well to reach new members immensely useful in finding developing stronger, in underserved populations, best practices and in teaching more relevant strategic which will make recruitment each other how to incorporate partnerships efforts a bit easier. sustainable business practices diversifying revenue most effectively. streams and building cash reserves 47
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix I: List of Participating Villages
Name of Villages Business Model Type City/State
Ashby Village Grassroots – Paid Staff Berkeley, CA Avenidas Village Parent Sponsored Palo Alto, CA Capitol Hill Village Grassroots – Paid Staff Washington, DC Carlton Willard at Home Parent Sponsored Bedford, MA Glover Park Village Grassroots – All Volunteer Washington, DC Gramatan Village Grassroots – Paid Staff Bronxville, NY Home Haven Hub & Spoke New Haven, CT Marin Village Hub & Spoke San Rafael, CA Nauset Neighbors Grassroots – All Volunteer Wellfleet, MA Northwest Neighbors Hub & Spoke Portland, OR Pasadena Village Grassroots – Paid Staff Pasadena, CA Plumas Rural Services TimeBanks™ Quincy, CA SAIL Parent Sponsored Madison, WI San Francisco Village Grassroots – Paid Staff San Francisco, CA Tierrasanta Village TimeBanks™ San Diego, CA of San Diego
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix III: Business plan template
Village Business Plan Outline Template
1. Executive Summary a. Write this section last, after you have prepared the other sections b. Include: i. Mission Statement ii. Names of founders and functions they perform iii. Number of founders, number of board members iv. Reasons for starting a Village v. Summary of market/survey data (demonstrating market interest) vi. Committees, number of people engaged on each vii. Description of service, where it operates viii. Status of program development to date ix. Summary of growth, participation, donated funds x. Summary of plans for the future/vision
Highlights and key points that are discussed in the rest of the plan should be pulled out and included in the Executive Summary.
2. The Product Brief description of Villages movement, growth, why so much growth, how they respond to unmet needs/desires; the consumer-driven nature of Villages; how they respond to the long-held desire of elders to stay in their homes; the wide range of programs that can be provided and how they can change over time in direct response to consumer desires, etc. Provide a high level overview of growth of elder markets and need for Villages.
3. Market Description and Market Analysis a. Geographic area to be served b. Target market: age, income, other socio demographic characteristics c. Market survey: methodology, number surveyed, number of responses, summary of data analysis/findings d. Existing services that address the same needs/desires in the market area e. The needs that will be met Village f. Share of market: how many participants will you be able to attract? g. Projected changes in the market over time (further aging, etc.) h. Indicators of market response to date i. Key interests of the markets
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4. Overview of the Village a. Describe Village and what it will provide b. Benefits of membership in the Village c. The Introductory Membership, what it offered, number and types of programs conducted, level of participation, fees d. Partnerships e. Discounts f. Newsletter, Web Site (again, how many distributed? How many web site “hits” if you know this) g. Number of members, fees h. Serving lower/moderate income; making/keeping it affordable i. Data on participation should be structured to demonstrate market interest j. Data on volunteer engagement/participation also demonstrate market interest, but also viability of operating a program relying on this resource k. Expanding services
5. The Organization and Management a. Organization structure/ownership (501(c)(3)) b. Brief profiles/qualifications of Founders and other key team members c. Board members: size of board and qualifications d. Roles of Board members e. Committees, Committee Chairs, qualifications f. Anything else on “management” and “management team.” Who does what in the business? How will ongoing leadership be assured? Executive Director in the future? Once money is being accepted and services promised, how would delivery be assured?
6. Marketing/Sales/Adding New Members/Growing the Program a. Number of members b. Number of “subsidized member” if appropriate c. Target number of members d. You may want to discuss the percentage of the total market that you need to capture e. How subsidized f. Communications strategies (web, link to Community Council website, newspaper articles, newsletter, flyer, meetings, etc.) g. Who is responsible for recruitment?
7. Funding/Funding Needs a. Revenues and expenses b. Sources of funding c. Amount needed for start-up costs d. Use of funds
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix IV: Marketing and communications tools
Value Proposition Worksheet / Discussion Guide
Who are we serving? who are they, what they do with their time, how they live, what’s important to them (80/20 rule if available)
What unmet or undermet need are we filling / what problem are we solving for them / what niche is ours?
What are we offering (key features) to solve their problem?
What’s in it for them (key benefits)? How will their lives be easier, richer, more convenient, happier, more hopeful, safer…?
What alternatives do they have? What other organizations are helping them now in a similar way?
How are we providing the key benefit(s) better or differently than alternatives?
What experience will our members have as a result of joining and being active users?
If I join XYZ Village, my life will be enhanced by…
Now, in 1 simple statement (1-3 sentences) sift through info above to sum up the answer to “What’s in it for me?” and “Why join now?” from your members’ perspective:
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix IV: Marketing and communications tools
Marketing/Communications Brief
DATE:
CAMPAIGN NAME:
BUDGET:
TIMELINE/DEADLINES/TIME PERIOD:
DESCRIPTION:
1. What result do you want to get from this communication item/campaign?
2. Who are we addressing (demographics, lifestyle, attitudes, relevant need)?
3. Exactly what do you want “them” to do – how do you want them to respond?
4. What “reward” do we offer for them responding how we wish – what’s in it for them?
5. What is the single, most important message that needs to be understood?
6. When/where will/should this reach them (e.g. work, home, day, night…)?
7. How will performance of this communication be measured?
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix IV: Marketing and communications tools
Communications Brief Guidelines
1. What result do you want to get from this communication/campaign? What is the role of this communication with regard to the objectives and goals (short or long term) of the organization. When possible, give quantifiable targets of specific end results – the more specific, the clearer and effective the communication. Tie it to a business objective.
Examples: - Increase inquiries for X service by 5% over 30 days. - Increase awareness among target media list by 50% over 60 days. - Secure $200,000 in sponsorship for X event within 3 months. - Associate the name/logo with X celebrity throughout the month of February. - Secure 3 major media interviews regarding X project in Q4. - Enroll 1,000 trainers in technical assistance workshops in Q1 and Q2.
2. Whom are we addressing? Simple profile? What motivates them? Demographics – age, gender, ethnic origin, income, occupation, region Lifestyle – what do they do with their free time? How much free time? What are their habits? Attitude – conservative, liberal, traditional, serious, light, adventurous, others? Expectations – what do they think about you and expect from you now? What will motivate them to act and behave the way you wish (priorities/desires)?
3. Exactly what do you want “them” to do – how do you want them to respond? Specific Action – what, when, how often, how many, instead of, what is the behavioral change?
4. What reward do we offer them for responding how we wish – what’s in it for them -- benefit? Functional – Physical need fulfilled or made better Sensory – Physical comfort, pleasure received Emotional – Feeling sought Expressive – Opportunity to feed ego / show others something about yourself / become famous
5. What is the single, most important message that needs to be understood? This is clear and concise. Single-minded and powerful. What is the major take away they should remember?
6. When and where will this communication reach them? What is the competitive environment – how much noise/distraction when they receive the message? What is your message competing with that may overshadow your message?
How can you use the media to ensure the message is received and desired action facilitated? What medium/vehicle will best support desired response and cut through the noise? What is the vehicle (specific publication/program) environment – how much adv., editorial style?
7. How will performance of this piece be measured and analyzed? What metrics should be used? How will results be collected? Who will be responsible to collect and report results? Who will act on results?
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix IV: Marketing and communications tools
Marketing Plan for the Development of a Village
Goal: Educate the community about the Village movement and your new community enterprise; Recruit members and encourage renewals.
Messaging:
1. A Village is a non-profit organization that comes from the community for the benefit of the community 2. Self-sustaining; grass-roots 3. Time banking: equal giving and getting 4. Helping people live a full life in their home and their community 5. Make new friends; engage in life; stay healthy 6. Join the life long journey together 7. Getting the most out of all the resources in the area for you 8. Offers peace of mind
Generally Villages do not use the words seniors, citizens or aging. Ageism is still “alive and well” in the US and it is important to not create images that people can say that is not me or that is not for me. It is important that your images and messaging are positive, fun, and engaging. Most people when they hear about Villages, they think they are an alternative to assisted living or a nursing home. In order to engage people of all ages so that you have a diverse and vibrant community, especially for time banking, it is important to create a picture (and reality) that shows people an organization that they want to get involved with for themselves and their community for a long time.
Segmented Audience/Marketing: Healthy * Not so Healthy * Frail A lot of people use age as the marker for their marketing approach but this does not take into consideration how individual needs change when there are changes in health. These changes can happen as they age but sadly declining health or a medical change can happen at any age. (i.e. someone breaks a leg skiing; trips on the sidewalk; chronic illness; early dementia)
Although the images are not that different, your services and offering will vary with the target market. When creating your Village it is important that you develop services and programs that your membership wants and needs and that you reflect this back to them. “You asked for it; We offer it” Your Village must offer value that is included in the membership fee. This value will range from discounts to providers, all the way to the time bank volunteer collaboration to programs that are unique to the Village members. “What do I get for my money?” “Will I only be with old people?” Your messaging must address these concerns to each segment. Most Villages focus their message on a happy and healthy life now and in the future.
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix IV: Marketing and communications tools
Marketing Strategies for Start-Up Villages:
A. Create marketing materials 1. Website with public and private sides 2. Facebook page 3. Brochure: flexible one pagers to change for the audience 4. Tri-fold with room for a mailing label 5. Short elevator speech* Note: Be clear that Central Village is not just for ASEC members.
B. Create the basics 1. Write up a member agreement 2. Be able to take credit cards 3. Create volunteer and sign in sheets 4. Develop a training for presenters (ambassadors)
C. Develop an Ambassador program This is a group of people who are part of the Village who want to let others know about the Village. They will need to be able to share their story and make it personal why they joined and what they get out of it. Personals stories are critical. It is also important that the ambassador looks and presents the image of your Village. If you want to attract younger people (50’s) make sure that that is who is presenting to that audience. (others presenters- couples; active; engaged; influential in the community; their neighbor)
D. Hold a launch party 1. Goal is to get people to join the Village 2. Can be held at the Church at the beginning and then do a second one when you expand out to the whole community
E. Hold “prospect” parties 1. Hold parties to get the message out: muffins in the am or wine and cheese in the early evening 2. Have food; make it fun 3. Create and send invitations and follow up with phone calls 4. Community people (steering com) present for about 15 min. 5. Show one of the VtVN videos- What is a Village? 6. Have people give their personal reason for being part of the Village 7. Explain time banking 8. Open it up to Q & A and discussion 9. Have Member Agreement for them to sign 10. Locations: Churches; people’s homes; libraries; fancy furniture stores; galleries; Temples; community rooms in their neighborhoods, etc.
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix IV: Marketing and communications tools
F. Other audiences for your message and for referrals 1. Word of mouth is the number 1 referral source a. Create incentive programs for members to get their friends to join b. Have people hold prospect parties at their house and invite their friends/immediate neighbors c. When you have members: have parties where a member brings a friend d. Run a program with a great speaker and invite the community 2. Local paper a. Gets articles written b. Write editorials c. Pay for an AD (especially if you are running an event) d. Put all events into the calendar section e. Do all of this online if your local paper is online 3. Neighborhood Associations 4. Block parties/local Fairs 5. More: doctors; hospitals; social service agencies; real estate agents, lawyers; local stores; local GCM’s; etc.
Suggestions on how to overcome objections to joining the Village:
A. People join Villages for many reasons: 1. They need the services 2. Support the community idea 3. So that it is there when they do need it 4. Their friends joined 5. They want to be in control of their life and stay in their own home as they age
B. Objections and the “Not ready yet” crowd 1. I do not need that yet 2. I do not want to be with old people 3. I am not old enough to want that yet 4. I am not a “joiner”
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix IV: Marketing and communications tools
Suggested points for overcoming objections:
The Village is not a bricks and mortar facility. It’s a virtual community that is founded by residents who want to stay in their homes and neighborhoods.
It means enjoying a culture of positive interdependence with people who live near you. It’s like the neighborhood your grandmother grew up in where neighbors helped each other because they knew it would be reciprocated.
The Village keeps you from moving to an age-segregated community where there are no younger people to interact with.
Village members report better quality of life since joining a Village.
Village life and volunteering give life meaning and relevance.
Villages address directly what recent research has documented as health-related problems caused by social isolation, including depression, increased risk of morbidity, mortality, cardiovascular disease, dementia, and Alzheimer’s disease.
Real-life social networks (Villages) decrease isolation, the likelihood of institutionalization, and mortality, and increase longevity.
Some members view the Village as insurance policy that they can tap into when they need it because they recognize that they cannot stay in their homes indefinitely without a little bit of help.
Phone bank and cheat sheet For all events and even to follow up when people call interested in the Village you can set up a phone calling party. Invite volunteers to someone’s house or to the Church and have everyone call people and see if they are interested. Make sure that all volunteers have a script or what to say and a “cheat sheet” about the Village offerings and philosophy so that they can answer people’s questions. The organizer of this phone bank usually has wine and cheese. Do not call during dinner hours. In people’s experience the best time to call is between 3:30 or 4:00pm and 6:00pm. This approach is great to follow up after you send out an invitation to a program, community Village event, or prospect party. It is also great when following up on a lot of calls for information that come into the Village. Remember the best approach to “person to person.” Word of mouth is the best marketing strategy. Keep a list of prospects in your database management system and reach out to them frequently with Village news.
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 Appendix V: Dashboard template
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CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015 END NOTES
1 CQ Researcher (2007) “Aging Baby Boomers”, Vol 17, No 37, 865-888, CQ Press 2 York, P. (nd) The Sustainability Formula How Nonprofit Organizations Can Thrive in the Emerging Economy TCC Group. Retrieved on June 1, 2014 from http://tccgrp.com/pdfs/SustainabilityFormula.pdf 3 York, P. (nd) The Sustainability Formula How Nonprofit Organizations Can Thrive in the Emerging Economy TCC Group. Retrieved on June 1, 2014 from http://tccgrp.com/pdfs/SustainabilityFormula.pdf 4 Kenny Stevens, S. (2001) Nonprofit Lifecycles: Stage-based Wisdom for Nonprofit Capacity. Stagewise Enterprises Inc ISBN-13: 978-0971730502 5 Capital Impact Partners designed based upon research of Villages and Organizational Lifecycle, New Hampshire Center for Nonprofits. 6 Holand, Jenifer (2013) Planning for Success: Effective Board Structure and Shared Leadership Presentation “Creating Aging Friendly Communities through the Expansion of Villages” project convening, February 2013 7 Greenfield, E., Scharlach, A., Graham, C., Davitt, J, & Lehning, A. (December 2012) A National Overview of Villages: Results from a 2012 Organizational Survey 8 Johnson, E.M. (2006) “Volunteer Management: improving the volunteer experience and reducing risk” ASAE Center for Association Leadership. Retrieved from: http://www.asaecenter.org/Resources/ whitepaperdetail.cfm?ItemNumber=24190 9 Volunteering Reinvented: Human Capital Solutions for the Nonprofit Sector. Corporation for National and Community Service. http://www.nationalservice.gov/pdf/07_0719_volunteering_reinvented.pdf 10 Kretzmann, J. and McKnight, J (1993) Building Communities from the Inside Out: A Path Toward Finding and Mobilizing a Community’s Assets. Retrieved October 15, 2014 http://www.abcdinstitute.org/publications/basicmanual/ 11 Graham, C. & Scharlach, A. (2014) Excerpt of Service Data from multi-site evaluation of 10 California based Villages. Presented at “Creating Aging Friendly Communities through the Expansion of Villages” project convening held August 13, 2014. 12 Definition of value proposition. http://en.wikipedia.org/wiki/Value_proposition 13 Capital Impact Partners, presentation at “Creating Aging Friendly Communities through the Expansion of Villages” project convening held in February 2012. 14 Presentation made Linda Zimmer, Owner/Principal, MarCom Interactive at the “Creating Aging Friendly Communities through the Expansion of Villages” project convening held on September 12, 2012 15 Greenfield, E., Scharlach, A., Graham, C., Davitt, J, & Lehning, A. (December 2012) A National Overview of Villages: Results from a 2012 Organizational Survey 16 Greenfield, E., Scharlach, A., Graham, C., Davitt, J, & Lehning, A. (December 2012) A National Overview of Villages: Results from a 2012 Organizational Survey. http://agingandcommunity.com/publications 17 Greenfield, E., Scharlach, A., Graham, C., Davitt, J, & Lehning, A. (December 2012) A National Overview of Villages: Results from a 2012 Organizational Survey. http://agingandcommunity.com/publications 18 Tabbush, V. (2012) Overview of Preparing Community Based Organizations for Successful Health Care Partnerships. Retrieved 3/1/15 from: www.thescanfoundation.org/victor-tabbush-overview-preparing-community-based- organizations-successful-health-care-partnerships 19 Lehning, A., Davitt, J., Scharlach, A. and Greenfield, E. (2014) Village Sustainability and Engaging a Diverse Membership: Key Findings from a 2013 National Survey. University of Maryland, School of Social Work http://agingandcommunity.com/publications 20 Kaye, S., LaPlante, M. & Harrington, C. (2009) “Do Noninstitional Long-Term Care Services Reduce Medicaid Spending?” Health Affairs Vol 28, Number 1 21 Graham, C., Scharlach, A. & Wolf, J. (2014) The Impact of the ‘’Village’’ Model on Health, Well-Being, Service Access, and Social Engagement of Older Adults. Published by Sage Publishing Health Education and Behavior. Retrieved on June 15, 2014 from http://heb.sagepub.com/content/early/2014/05/02/1090198114532290 22 Graham, C., Scharlach, A. & Wolf, J. (May 2014) The Impact of the ‘’Village’’ Model on Health, Well-Being, Service Access, and Social Engagement of Older Adults. Published by Sage Publishing Health Education and Behavior. Retrieved on June 15, 23 Elder Economic Security Index; county-specific measure of the minimum income necessary to cover all of a retired older adult’s (65+ years) basic expenses: http://www.insightcced.org/communities/besa/cal-eesi/eesiList.html 24 Greenfield, E., Scharlach, A., Graham, C., Davitt, J, & Lehning, A. (December 2012) A National Overview of Villages: Results from a 2012 Organizational Survey 25 Graham, C., Scharlach, A. & Wolf, J. (2014) The Impact of the ‘’Village’’ Model on Health, Well-Being, Service Access, and Social Engagement of Older Adults. Published by Sage Publishing Health Education and Behavior. Retrieved on June 15, 2014 from http://heb.sagepub.com/content/early/2014/05/02/1090198114532290 26 Ibid 27 Ibid 28 Access to Services, 2020 Topics and Objectives. http://www.healthypeople.gov/2020/topicsobjectives2020/overview.aspx?topicid=1#Ref_07 59
CAPITAL IMPACT PARTNERS This report is sponsored by Capital Impact Partners 2015