Introduction Three ongoing grants programs Economic Catalyst Open Grants Program Scholarships (2 and 4 year, plus Center for Creative Leadership Golden LEAF Scholars Leadership Program) Special Initiatives Community Based Grant Initiative Other initiatives announced periodically
Economic Catalyst Annual grants budget for 2014 15 approximately $10 million Funding for job creation projects that are at risk without Golden LEAF support Funding to eligible entities for public infrastructure, workforce training, equipment leasing Gap funding: GLF does not displace funding available from other sources for projects, e.g. community college training funds, Department of Commerce infrastructure and other funding, and local funds No direct grants to companies, plus any equipment leasing must be a fair market value transaction Must create full time positions in North Carolina that provide at least ½ of the cost of employee only health insurance benefits Must be coordinated with NC Department of Commerce Job creation outcomes strictly monitored
Economic Catalyst Criteria for awards include* Economic impact of project, including costs and benefits to the state. Strategic importance of the project to the state, region, or locality. Quality of industry and project. Environmental impact of project. Identified needs that are directly related to job creation from the project. Competition for the project with a location outside North Carolina. Support will also help avoid imminent job losses. * From GLF website
Economic Catalyst Uses of funds Public infrastructure Workforce training Equipment leasing Public infrastructure Primarily water and sewer (have supported publicly owned electric systems and public road construction) On publicly controlled property Available for potential use by more than one industry (other use may be potential future development) No funds for acquisition of real property Clawback Require that the company enter an inducement agreement with a funder (not necessarily Golden LEAF) that provides appropriate consequences should the company fail to satisfy job creation requirements. Often rely on state or local incentive agreement.
Workforce training Economic Catalyst Typically equipment needed by community colleges to meet training needs of industry that will create jobs Training supported by GLF is open to the public and nonproprietary Clawback Require that the company enter an inducement agreement with a funder (not necessarily Golden LEAF) that provides appropriate consequences should the company fail to satisfy job creation requirements. Often rely on state or local incentive agreement.
Equipment financing Economic Catalyst Grantee uses GLF funds to purchase equipment that is leased to company at a rate that will recover the full grant amount plus interest at the Applicable Federal Rate over a period that does not exceed the useful life of the equipment (typically up to 7 years) Applicable Federal Rate is an IRS determined interest rate. Recently 1.84% for transactions of more than 3 and less than 9 years. Rent payments remain with grantee for use in future charitable economic development projects (policy under review by GLF Board) Clawback Company always required to repay full grant amount plus interest to grantee Company pays higher interest (pro rata adjustment up to 8%) if job creation commitment is not satisfied Grantee repays to Golden LEAF increased interest payments plus a pro rata amount of the grant for each job not created capped at amount of payments actually received from company
Economic Catalyst Concerns/issues/challenges: General Avoid displacing state and local funds Verifying that projects are at risk without GLF support and determining an appropriate level of support Equitable treatment of existing NC companies that create new jobs Equipment leasing Unusual transactions for grantees Long term (typically 7 years) Drafting documents Collecting payments/default/company bankruptcy Most useful for companies that have trouble accessing traditional capital, i.e. higher risk Monitoring use of lease proceeds Bankruptcy/failure of companies
Open Grants Program $4 million grants budget for 2014 15 Most inclusive program open to all eligible entities and provides widest variety of grants Priority areas Agriculture Workforce Preparedness Job Creation and Retention Other opportunities to promote economic development in target counties Two stage application process Letter of inquiry Full proposal (by Board invitation)
Special Initiatives Community Based Grants Initiative (ongoing, by invitation) Essential Skills in Advanced Manufacturing (closed) Local Foods (closed) Ag Biotech (closed) STEM (closed) Rural Hope (health care infrastructure) (closed)
Community Based Grants Initiative A new initiative that will expand to all regions in the state, the Community Based Grants Initiative launched in the summer of 2013 in the Northeast as a continuation of the Foundation s community based grantsmaking and as a response to completion of the Community Assistance Initiative The Foundation will invite counties to apply to participate in the Initiative by region. The Initiative is competitive, but all counties within a designated region are welcome to apply to participate The Initiative is a more efficient process to identify those projects that are ready for implementation and have the potential to have a significant impact. Continued
Community Based Grants Initiative Focused process with grants targeted toward investments in the building blocks of economic growth education, workforce development, infrastructure, health care infrastructure, and agriculture. Grant awards typically limited to 1 3 projects per county and total no more than $1.5 million per county. Not all counties will have funded projects Regions based on new Prosperity Zones Awarded $9,679,666 in grants for the first round of Community Based Grantsmaking Initiative in the Northeast region. Have received LOIs and invited full proposals in the Sandhills and Northwest regions for grantsmaking in expected in June 2015
Scholarships Two Year Scholarship Program Overview $750,000 awarded to NC Community College System and made available to participating Community Colleges Scholars selected by participating campuses Funds allocated 80% to colleges that opt in to the program, with 20% distributed among participating schools in Tier 1 and 2 counties Eligible students are from rural counties that are tobacco dependent and/or economically distressed Scholarship awards of $750/semester for curriculum programs; $250/semester for occupational programs (25% of funds must be used for students enrolled in career pathway program or program that will result in industry recognized credential) Funds used for wide variety of needs including tuition, fees, childcare, testing, transportation, and others
Scholarships Four year scholarship program Award to NC State Education Assistance Authority which administers the program and awards scholarships 215 new awards of $12,000 ($3,000/year) each year (maximum of $2.58 million expended each year for recipients in all classes) Awards made in Spring of student s senior year in high school prior to enrolling in college or Spring of transferring year from a NC community college; follows student to eligible NC schools Students must be from rural counties that are tobacco dependent and/or economically distressed (Tier 1 or 2) Factors for selection include: Financial need (intend to reach middle class in addition to those with most need) Length of time family has lived in county School activities (higher priority for those related to agriculture, healthcare, teaching) Work experience Essay regarding interest in rural NC
Scholarships Center for Creative Leadership GLF Scholars Program Intended to develop leadership skills of Golden LEAF scholars and to expose them to opportunities in rural NC with the hope that some will elect to return home or to a similar community following graduation Funds up to 120 freshmen Golden LEAF scholars each year plus continuing students Currently in its fourth year with leadership training conferences, coaching/mentoring throughout the year. Participants receive a $2,500 stipend for annual summer internship in rural county that is tobacco dependent or economically distressed (usually the scholar s home county)
Post Award Grant Monitoring Comprehensive approach with higher level of accountability Monitoring level assessment: High vs. Low High on site visits required and higher level of financial review Monitoring level reassessed each report period Face to Face Grants Management Workshop Project Management Plan measureable outcomes in addition to activities Desk Review of progress reports Verify program activities, outcomes and financial expenditures require documentation as evidence Site Visits
Contact Information For general inquiries and questions about the Open Grants Program and the Economic Catalyst Program: Ted Lord Vice President of Programs/Staff Attorney tlord@goldenleaf.org Golden LEAF Foundation 301 N. Winstead Ave. Rocky Mount, NC 27804 888 684 8404
Contact Information For general inquiries and questions about the Community Based Grantsmaking Initiative: Pat Cabe Vice President of Programs/Community Assistance & Outreach pcabe@goldenleaf.org Golden LEAF Foundation 301 N. Winstead Ave. Rocky Mount, NC 27804 888 684 8404