As you know, the Vermont Community Foundation (VCF) has been working with Vermont nonprofits to identify a sustainable revenue model that provides the sector with capacity-building opportunities and resources.

After securing start-up funding for an online resource center and a nonprofit manager position, the VCF sent out a survey late last year designed to assess sector support for a revenue model that would sustain these resources. The proposed revenue model was supported by nonprofit registration fees collected through the Secretary of State's office. (We believe strongly that, start-up costs aside, any long-term solution should be owned and supported by the sector).

Many thanks to everyone who participated in the survey. We received 149 responses, and many of you contacted us personally to share your thoughts.

The survey results suggest that there is more work to be done in creating a sustainable revenue model. Indeed with respect to the concept of using any level of registration fees to support nonprofit resources, fifty percent of respondents were undecided. With respect to the tiered contribution scale proposed by the model, fifty percent were "somewhat unsupportive" or "very unsupportive,” and 26% were “somewhat supportive” or “very supportive.” At the same time, the responses enthusiastically confirmed that networking and capacity-building opportunities are critical to the sector. For highlights of the survey findings please click here.

Given the questions surrounding a sustainable revenue stream for capacity-building work, we feel it prudent to adapt our plans for this year. Specifically, we have scaled back the plan for an online center, and we have decided not to hire a nonprofit manager. Here's a look at our revised plan:

1. The VCF has budgeted $100,000 for 2008 to pursue programs and partnerships that specifically support nonprofit capacity building. We are currently exploring ideas like capacity-building grants initiatives, cultivation and support of regional and local nonprofit networks, and collaboration with other organizations that provide capacity-building and leadership training to nonprofits. Look for details later this spring.
2. In addition to our competitive grant rounds, we will continue our agency endowment management program, our planned giving partnership program, and the Vermont Directory of Foundations. We will also invite nonprofits to submit their events to our calendar of events on our Understanding Vermont website. Finally, we will expand our online offerings to include a directory of consultants and businesses that serve nonprofits.
3. We will complete two studies that identify the strengths and opportunities in Vermont's nonprofit sector and in Vermont-focused philanthropy. These reports will be shared broadly with VCF fundholders and other key constituents to encourage deeper engagement with nonprofit-related issues and interests. Deeper philanthropic engagement leads to greater investment in the entire sector.
4. The VCF will seek ways to gather information on legislative issues that impact Vermont nonprofits and will provide updates to the sector.

In addition, we will continue to pursue dialogue with nonprofit leaders and community members to build on this work and ensure that nonprofits are well-served and receive the resources they need to succeed.

We will keep you posted as we go along. As always, we encourage you to share your thoughts.