Funding presentation

Invest your Time
Spend time finding ways to reduce costs,
secure funding
Rule # UNO:
Provide value to your funders
5 Funding Strategies
1. Know how much it costs you to provide your service
2. Save money where you can
3. Maximize federal dollars
4. Raise funds
5. Create long-term community support
1. Know how much it costs to provide
your service
What is your annual cost of service?
Passenger trip cost = annual cost of service ÷
annual number of trips (Note: define
“passenger trip” as any completed, revenuegenerating passenger trip)
“Transportation by the Numbers”
National Center for Senior Transportation tool
2. Save money where you can
CTAA Member Benefits
 The Insurance Store
 Energy maintenance program
 Bulk fueling program
 Reduced costs background checks
 Motor vehicle records
 Employment screening products
 Reduced loan costs
 Reduced EXPO fees, under tab “Financing”
Community Development Transportation
Lending Services, Inc. (sponsored by CTAA)
Microloans for transit software and
Working capital loans
Insurance and self-insurance financing
Gap financing
Your Employees are a Valuable Resource:
Cherish them!
 Turnover costs 1.5-2 times a person’s salary
 Employees are partners in creating your image,
establishing your agency within the community
 Tap into their knowledge of their side of the business
 Incentivize employees for innovative ways to save
Reduce usage of natural resources
 Green technologies (hybrid vehicles—CTAA benefit)
 Bulk fuel purchasing (CTAA benefit)
 National resource management (re-use waste water
from washing vehicles, reduce idling)
Shared Operational Costs
 Joint maintenance
 Joint insurance
 Joint purchases
Shared Personnel Costs
 Driver training
 Dispatcher/scheduler training
 Staff hiring/screening
 Drug/alcohol testing
Cost of Fare Collection
 Fares are not required
 Fares cover only a small portion of costs (farebox
recovery ratio)
 Do add a perception of value to the service
3. Maximize federal dollars
Write effective grants
Leverage non-DOT federal match money
Maximize opportunity for local and in-kind match
In-Kind Match
 Private donations can serve as local match
 Funds, real property, materials and services eligible
 Document value of in-kind contributions
4. Raise Funds
Time to Get Creative
 Any surface can be converted into revenue
 “Trade” advertising space for services (e.g, radio
spots, reduced vehicle maintenance costs)
 Sponsorships (e.g., golf tournaments)
 Infrastructure (agency built bus shelter in exchange
for 1-2 years of advertising)
 Sell the rights to put your cool logo on Tshirts, etc.
One source: Lessons Learned in Transit Efficiencies, Revenue
Generation, and Cost Reduction
Seek Foundation Grants
 Project must be in foundation’s primary area of
 Foundations do not give away money -- they invest in
a project with a specific goal and want to see results
 Usually tied to a specific population—not for general
 Performance measures: be able to report benefits to
 Successful grant leads to more grant money
Foundation funding, by category, 2011
Source: Foundation Center
Foundation Human Service Grants, by category
Finding a Foundation
Foundation Center (
Council on Foundations (
Set up Your Own Foundation
 Have a clear mission and objectives tied to
community welfare
 Solicit donations – from individuals and other
 Report benefits to donors/community
Contract Revenue
1. Know what it will cost your agency to provide
2. Help the prospective purchaser know what it’s
costing them now to provide transportation
3. Standards – Ensure them you will treat “their”
customers right
4. Establish a contract, performance
measures, review process
Working with Medicaid Brokerages
 Brokerages motivated by completing the highest number of
trips for least amount of money
 Enter negotiations knowing your bottom line, be willing to
negotiate on price and volume of trips
 Know the players: brokerage managers, health care orgs.,
legislators that have a say in Medicaid
CTAA’s Competitive Edge training:
brush up on your negotiating skills
Other Contract Revenue
1. Lease extra space in your facility
2. Provide maintenance on other agency or nonprofit
3. Create contracts for your employees’ special
expertise (e.g., safety training, HAZMAT
handling, security)
Non-Transportation Revenue: for $ or Good Will
 Delivery of auto parts and supplies to garages and
dealerships on return “deadhead” trips
 Transferring books for libraries
 Collect recycling on the bus
 Rocking chair marathons
 Sponsored golf tournaments, other events
 On-line auction
• “Top ten crowdsourced funding platforms”
Crowd-funding raised
$1.2 billion globally in 2011
2011: Kickstarter hit 1
million backers
$320 million pledged by
2.2 million people on
18,000 projects
Recap: What Funders Want
 Services to match their priorities
 Defined performance goals
 To know that you can deliver
 How it will benefit them
5. Create long-term community
. . . by far, the best
long-term funding strategy
Thank you!
Amy Conrick
Community Transportation Association of America
[email protected]

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