Comments on: Coordinated Funding for Nonprofits Planned http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/?utm_source=rss&utm_medium=rss&utm_campaign=coordinated-funding-for-nonprofits-planned it's like being there Tue, 16 Sep 2014 04:56:38 +0000 hourly 1 http://wordpress.org/?v=3.5.2 By: Lily Au http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/comment-page-1/#comment-55445 Lily Au Fri, 15 Oct 2010 02:30:21 +0000 http://annarborchronicle.com/?p=50925#comment-55445 Mark Quimet is the Vice Chair of “United Way”. The fund raising cost and endowment of United way was $677,689 in 2009.

Is he eligible to vote for “Coordinated Funding” on Nov 3 at County Commissioner’s meeting? Is there an issue of “Conflicts of Interest”? If he’s elected again and becomes the chair at “Urban County”, he can order his staff “office of Community Development” to make the recommendations and be voted. Then the decisions will go to United Way. That’s a five million dollar decision. (Fund Allocation).

What does it mean? Let’s think……

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By: Lily Au http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/comment-page-1/#comment-55042 Lily Au Sat, 09 Oct 2010 04:16:49 +0000 http://annarborchronicle.com/?p=50925#comment-55042 If we check “United Way” Of Washtenaw County, its financial report reveals that 40-50% of its revenue used on administration cost, pension, retirement plan, LOSS in investment, fund-raising cost….expenditures: about 2 million.

Is it right to channel the Human Service Fund to support so many staff there, including those already retired? If their investments lose again, how much impact on the needy people? Don’t forget that Office of Community Development also takes away 10-20% administration cost beforehand.

If this proposal passed, will volunteer attorneys who fend for the small non-profits make a legal case as “Misuse of public money”? Who allows Human Services Fund be engaged in business investment?

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By: Linda Peck http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/comment-page-1/#comment-54269 Linda Peck Mon, 04 Oct 2010 13:59:10 +0000 http://annarborchronicle.com/?p=50925#comment-54269 I don’t approve of more governmental interventions or consolidations here.

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By: Yuriko Morishima http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/comment-page-1/#comment-54068 Yuriko Morishima Sun, 03 Oct 2010 03:56:00 +0000 http://annarborchronicle.com/?p=50925#comment-54068 Poverty rate is rising. We need to be very responsible when we allocate funds. My miserable friends living on the streets have just asked me blankets and propane gas. Poor people need urgent help. This new coordinated funding model/proposal gives me a picture. We’re now making a big ship. This ship provides various kind of human services. It looks gorgeous. However, we don’t see the expensive fuel and high maintenance cost. Besides, when a guy get into this ship, he easily gets lost and can’t find the service he wants, or the crews on board just ask him to wait, then go to room A, then room F, then room K, then……..

This big ship can’t reach the small streams, just stroll along the big river. Two main captains in the operating rooms are arguing the directions. Two captains are steering this big ship. Some sailors are smoking in the cabins while some are playing cards on board, not enough supervision in this big liner.

This big ship monopolizes the market, now, no more little boats in the small streams to help transport people. Needy people are waiting at the shore for the luck.

Of course, I applaud the efforts & intention of this new model/proposal. However, cooperation/coordination reaches its maximum benefit when being exercised in a moderate scale but not mega-scale. We can’t expect a giant move very well.

Another picture also comes to my mind, we’re making a super department store. Very huge! We amalgamate “Kroger” “Meijer” “Home Depot” “JC Penny” “Macdonald” together. Um..! We think we can save management cost, and let customers get efficient services. But, we need to work out who’s in charge of this big enterprise. The personnel might struggle in their united offices to work out how to put the merchandise from “Home Depot” & frozen food from “Kroger” in a harmonic sense. A man might need two hours to finish his shopping trip for two tomatoes.

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By: Vivienne Armentrout http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/comment-page-1/#comment-54038 Vivienne Armentrout Sat, 02 Oct 2010 21:33:57 +0000 http://annarborchronicle.com/?p=50925#comment-54038 Everything that is said in comment #2 makes perfect sense, especially from the perspective of someone whose responsibility is allocating public funds. What concerns me is bringing the two sources of private money (United Way and the AAA Community Foundation)into this single centralized distribution mechanism. These have served as alternate sources for which nonprofits may compete for conceptual as well as financial support. I don’t have any particular nonprofit organization in mind when I say that newer or less favored entities need to have an opportunity to compete in some arena, even for very small grants and even if some of them prove to be ineffective.

What I was trying to express in my earlier comment is that if safety net functions in our society are overly centralized rather than distributed, the system may be less able to respond quickly to changing circumstances and needs. Changing times may sometimes require the evolution of new approaches that will not be anticipated by a rigid rule-making process. This system could be like a mechanical device set to extremely high tolerances that operates at high efficiency until the conditions it requires no longer exist. Or to put it more colloquially, every engine needs some grease.

The argument is for efficiency. But I don’t accept this as the highest guiding principle. I recommend the book by UM professor Thomas Princen, “The Logic of Sufficiency” (MIT Press, 2005). In it, he argues that the elevation of efficiency “thwarts other principles”. Here is an extract from his chapter on efficiency.

“Societies across time and across cultures organize themselves to use resources…In so doing, they devise rules and procedures guided by general principles. The most prevalent principle has been…power…But other social organizing principles have accompanied power, sometimes displacing it, sometimes concealing it…Today the dominant companion principle is efficiency…efficiency has spilled into nearly all realms of modern life…it has become a social goal in its own right, equating with all that is desirable, and then used selectively to promote agendas often unrelated to true efficiency gains.”

I don’t at all doubt that the Urban County committee is operating from the very best of intentions, but I hope that those making this decision can step back and consider the consequences of the contemplated step from a broader societal perspective.

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By: Yuriko Morishima http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/comment-page-1/#comment-54012 Yuriko Morishima Sat, 02 Oct 2010 16:14:54 +0000 http://annarborchronicle.com/?p=50925#comment-54012 1. Now, 3 people from city, 3 people from OCD, 3 people from county review the funding. If the new model/proposal is passed, how many people will review & supervise the funding?
2. Now, we already have coordinated funding, that’s Washtenaw county, federal, city put all the money together. It’s about $2.6 million a year, OCD already takes away 10-20% admin cost. If “United Way” and “AA Area Community Foundation” join the coordinated funding, how much admin cost will be estimated? Besides, they hire extra staff to deal with the big money, plus hiring consultant companies to find out the best outcomes of the other non-profits, how much will be spent?
3. Non-profits are not decision makers, decisions will be based on recommendations from OCD, how many people will prepare the recommendations? Will OCD recommendations be influenced by Urban County Exec board as Urban County has administrative power on OCD?
4. If the decision can be partly established on the relationships between funders and non-profits, as big money involved, public and private money pulled together, confusion might happen. Is there possibility of opening the door to corruption?
5. Big non-profits have coordinated groups discussion and recommend funding, is there possibility of killing collective wisdom if small non-profits no longer survive?
6. Big non-profits hire staff, small non-profits are mostly supported by volunteers? How do people evaluate big and small non[profits when they’re entrusted to serve our community? Is big better than small ?
7. If the coordinated-funding is too big, the new model involving at least five entities, is there any pitfall during the process of operation? Think of a big corporation, the little worker can’t reach the CEO, difficult communication and operation is found. As we see many big grocery store trash lots of food because of wrong estimation and bulky management. Will it happen to the new model?
8. If around 5 million dollar decision mainly based on several people’s recommendation, is it complete and serve our community well?

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By: Joan Kauffman http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/comment-page-1/#comment-53998 Joan Kauffman Sat, 02 Oct 2010 15:11:18 +0000 http://annarborchronicle.com/?p=50925#comment-53998 The services(low cost personal counseling, job search assist., divorce support and education, state/fed tax efile assistance, family legal clinics) we provide at The Women’s Center of Southeastern Michigan clearly do not fit into the stated categories.

I think it is important to remember, when you help a woman, you help her children.

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By: Leah Gunn http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/comment-page-1/#comment-53946 Leah Gunn Sat, 02 Oct 2010 02:12:49 +0000 http://annarborchronicle.com/?p=50925#comment-53946 After a thorough process of selection, with representatives from each entity, each individual board (County, City, Urban County, United Way and Coummunity Foundation) will have to approve the final contracts. This process includes money from the Community Foundation for capacity building, which addresses the issue of new non-profits. However, a great deal of thought has gone into the selection of the funding categories, according to community needs assessments. It does not set up any additional bureaucracy. In fact, the Office of Community Development has saved many hours by the three goverment consolidations already. We are all having to do more with less, and this is a solution that will better serve our residents, while making sure that those non-profits who receive contracts are accountable, and can show measurable outcomes. The emphasis is on the consumer, not on either the decision makers or the non-profits. How can we best serve our residents? There is no way that any organization in our community, be it private or public, can fulfill all of the pressing need. But this plan enables us to be both more cost efficient, and to address the major categories of need. If we do not base our decisions on logic and rationality, what are we doing here?

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By: Vivienne Armentrout http://annarborchronicle.com/2010/10/01/coordinated-funding-for-nonprofits-planned/comment-page-1/#comment-53939 Vivienne Armentrout Sat, 02 Oct 2010 01:22:33 +0000 http://annarborchronicle.com/?p=50925#comment-53939 I well understand the thinking and rationale behind this approach, since its precursor was a process we went through at the BOC while I was a commissioner. At one time the human services funding was often a process of political wheeling and dealing and some non-profits received funding that essentially went to support staff enough to keep them alive, because they had a commissioner who would sponsor them. We set up goals and priorities and turned it over to staff.

The result was that the more institutionalized, establishment nonprofits received much more money and a number of small nonprofits were cut out. It was all very rational and logical.

I am concerned to see all potential funding sources centralized into one bureaucratic mechanism. This does not allow for collective wisdom to be exercised in that different boards with different individuals and perspectives make decisions that are slightly differently shaded. I think that efficiency is overrated. It does not promote adaptive responses or allow for innovation and a variety of approaches that may or may not be the most successful in the long term. I agree that public money should be spent wisely for the best outcomes. But highly programmatic approaches may neglect some changes in circumstances or the more global environment. Many smaller nonprofits begin with a vision by an individual or small group who perceive a need that is not being addressed. If all potential funding sources in the county are channeled through one streamlined process, these may be aborted.

Whether the metaphor one might choose here is the marketplace or simply evolution, this mechanism, with its lack of competition and choices, seems too rigid.

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