Duke Energy Foundation Update June/July 2014

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1 Duke Energy Foundation Update June/July 2014

2 Agenda Introduction Background Investment Priorities o Education o Economic & Workforce Development o Environment o Community Impact Foundation Processes Grant Management System Summary Questions 2

3 Background: Duke Energy Foundation Strategic Review Conducted a strategic review to more clearly define our focus areas and narrow our investment priorities for philanthropic giving o Researched community trends and needs o Leveraged internal and external subject matter experts o Reviewed historic funding o Benchmarked with other utilities and Fortune 500 companies o Aligned with the company s business needs and strategy Identified demonstrated outcomes in four main areas, called investment priorities, and developed supporting strategies for each investment priority 3

4 Investment Priorities Overview

5 Duke Energy Investment Priorities Overview Education o Supporting effective education programs and initiatives that emphasize Science, Technology, Engineering, and Math (STEM ) disciplines or teach critical reading skills. Economic and Workforce Development o Building strong communities by enhancing state development strategies and marketing efforts and funding workforce development initiatives to retool and retrain workers with 21st century skills. Environment o Protecting, improving or restoring natural resources, especially water and air. Community Impact (Arts and Culture, Nonprofit capacity building) o Increasing access to arts and culture in our communities and strengthening the capabilities, knowledge and skills of local nonprofits. 5

6 Investment Priority: Education - STEM Education Goal: Build a diverse pipeline of future workers by supporting STEM Desired Outcomes o Build interest/engagement in science, technology, engineering and math o Develop positive attitudes and aspirations towards STEM, with a particular focus on underrepresented populations o Develop STEM skills and abilities o Foster applied learnings Strategies o Creating greater access to and participation in STEM-related informal education opportunities (out-of-school-time) o Building STEM knowledge and skills in schools by encouraging innovation and supporting proven programs o Producing a sufficient supply of well-prepared STEM teachers 6

7 Investment Priority: Education - Early Childhood Literacy Goal: Build a diverse pipeline of future workers by addressing literacy challenges Desired Outcomes o Build strong early reading skills o Support early assessment and prevention programs o Build defined process for scaling and sustaining best practices Strategies o Supporting reading initiatives in elementary schools to ensure that students are on track to read at grade level by the end of third grade o Closing the gap in reading achievement that separates many low-income students from their peers 7

8 Investment Priority: Economic Development Goal: Enhance the ability of our communities to define and articulate their economic development strategies and assets Desired Outcomes o Help the regions we serve develop and define marketable assets o Enable communities to develop innovative options to attract business and industry o Work collaboratively with jurisdictional and functional stakeholders to prioritize potential economic development funding opportunities Strategies o Partnering with state, regional and local economic development partnerships, chambers and higher education institutions o Identifying new opportunities for growth o Supporting feasibility studies and/or actions to support a region in defining its capability to attract industry o Investing in planning and research to define a region s marketable assets 8

9 Investment Priority: Workforce Development Goal: Support workforce development and skills training initiatives critical to attracting and retaining businesses within the Duke Energy service territories Desired Outcomes o Target and increase pool of diverse talent for regional workforce o Increase awareness and participation in programs that support adult remedial education, retooling and literacy programs that prepare workers for job entry o Increase strategic partnerships with local colleges and universities o Build capacity for targeted industries in our region o Build regional entrepreneurial programs (accelerators, incubators & competitions) o Build regional energy workforce Strategies o Increasing capacity for the regional workforce through higher education and job readiness/skills training programs o Preparing students for the 21st century economy through college and career readiness programs 9

10 Investment Priority: Environment Goal: Support environment and wildlife programs that protect, improve, or restore natural resources Desired Outcomes o Preserve natural resources and reduce environmental risks in the communities we serve o Promote environmental stewardship in our communities o Collaborate with jurisdictional and functional stakeholders to prioritize environment-focused funding opportunities o Demonstrate Duke Energy s environmental stewardship Strategies o Supporting organizations and programs that enhance or mitigate environmental impacts with a focus on the protection of land and wildlife habitats; water-quality, water-related resources and water availability; air quality; protection of endangered/threatened species o Engaging the next generation of stewards in volunteer and environmental education activities o Maintaining relevance by funding opportunities that are aligned with regional priorities in Duke Energy s service territory 10

11 Investment Priority: Environment Emerging Technologies Goal: Support education efforts around strategic emerging energy technology Desired Outcome o Advance research in emerging energy technologies that promote clean and reliable energy generation and use Strategy o Supporting university research/collaboration with industry-wide benefits that align with our corporate strategy 11

12 Investment Priority: Community Impact Arts & Culture Goal: Support the arts through federated campaigns and directed-giving based on regional needs and priorities Desired Outcomes o Financially sustainable arts and cultural organizations that enhance the community s quality of life o Increased exposure to the arts for disadvantaged populations Strategies o Supporting programs and/or initiatives that foster local sustainable arts organizations and/or arts councils through growth of development capacity, and strategic planning training/assistance o Providing access to local artistic and cultural organizations for disadvantaged groups and through field trips, in-school performances or ticket subsidies 12

13 Investment Priority: Community Impact Nonprofit Capacity Building Goal: Support capacity building initiatives that strengthen the nonprofit community Desired Outcomes: o Increase the capacity for nonprofit organizations in key functional areas, which may include development, marketing, board leadership, etc. Strategy: o Supporting programs and/or initiatives that build capabilities, knowledge and skills to help nonprofits fulfill their missions 13

14 Local Community Development Grants Support nonprofit organizations whose programs and mission align with one of the Duke Energy Foundation s four investment priorities Less than $10,000 Targeted investments designed to meet local community development needs Applications are accepted on a year-round basis 14

15 Other Philanthropic Initiatives United Way o Support of an annual, enterprise-wide employee United Way campaign o Through our support, the United Way is able to tackle the broader issues of health and human services Energy Assistance o Programs help those in need to cope with extreme heat and cold in our service territories Disaster Preparedness and Relief o When hurricanes, floods and other natural disasters strike, the Foundation works with organizations such as the United Way and the American Red Cross to provide relief in the areas where Duke Energy operates The company works directly with beneficiary agencies and does not accept grant applications for energy assistance or disaster relief programs 15

16 Employee-Driven Philanthropic Initiatives Matching gifts for employee and retiree donations to qualifying nonprofit organizations, our Duke Energy United Way campaign and community arts campaign Volunteer grants for employee and retiree hands-on sweat equity projects under the banner Duke Energy in Action Leadership grants for employees serving on nonprofit board of directors or trustees Walks, runs and bike rides o Not typically funded by the Foundation o Grant requests are not accepted for these events o Volunteer grants are available to employees, but there is a participation and fundraising requirement 16

17 Foundation Processes

18 Types of Grants Funded & Funding Expectations Local Community Development Grants (less than $10,000) o Basic grant application o Funding decisions are made by local community relations managers Regional Grants ($10,000 or more) o Enhanced grant application o Funding decisions are made by regional grant review councils o Approved grantees are required to complete an end of year Impact Report online Trustee Reviewed Grants ($100,000 or more; multi-year grants) o Enhanced grant application o Funding decisions are made by the Foundation Trustees o A signed Memorandum of Understanding (MOU) is required prior to funding disbursement o Approved grantees are required to complete a mid-year Impact Report and an end of year Impact Report online 18

19 Request for Proposal (RFP) Application Cycles The Foundation receives grant requests for funding specific proposal cycles for each investment priority Investment Priority Environment Economic & Workforce Development Education Community Impact Request for Proposals (RFP) Timeline July - August August - September January - February April - May Local Community Development Grants o Accepted on a year-round basis 19

20 Request for Proposal (RFP) Process Proposal opens o The grant application will be available during specific cycles for each investment priority Review and assessment of proposals o Foundation staff and local community affairs managers assess proposals Regional grant review meetings o Regional grant councils evaluate proposals and make funding decisions in alignment with the investment priority s desired outcomes and strategies o If required, the Foundation Trustees will review and make funding decisions Communicate funding decision Final approval will typically occur three to five months from the close of the funding cycle, and may vary by investment priority and approvals required. Local community development grants are reviewed and approved year-round, and final approval will vary between two to three months. 20

21 Grant Management System

22 Strategic Grant Management System Highlights The Foundation is transitioning to a new grant management system hosted by CyberGrants The new system will be open for grant requests on July 30, 2014 o Previous grant management system closed June 30, 2014 Nonprofits will complete a series of questions to determine eligibility with funding guidelines and alignment with the investment priorities (eligibility quiz) After completing the eligibility quiz, all applicants will register to create an account Once the account has been created, nonprofits will be directed to the appropriate grant application 22

23 Getting Started Note: new grant management system opens July 30,

24 Eligibility Quiz The grant application process takes the grant seeker through a series eligibility questions that are aligned with our Funding Guidelines. 24

25 Online Registration Please questions to 25

26 Registration Information Please questions to 26

27 Welcome Page Note: if you need help, click Need Support located at the bottom of the page Please questions to 27

28 Online Grant Application Sections o Contact information o Organization information o Organization detail o Program information o Demographics o Financial information * o Measurements o Donor Recognition Sample grant applications found on *Note: Not included as required information in the local community development grant application 28

29 Support & Resources FAQs o Click Need Support to be directed to the FAQs You may questions to CyberGrants by clicking on the I still have a question link at the bottom of the FAQ page 29

30 Summary Follow-up communications o FAQs, CyberGrants instructionals, investment priority one-pagers Visit the Duke Energy Foundation website for more information 30

31

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