Location: Hildene
Introductions
Announcements – Reminder, if you have an announcement, please fill out the form and send it to Ed. He will place them on the website and also bring a handout to the meetings.
Collaboration
Bennington County Meals on Wheels
124 Pleasant Street, Bennington, VT 05201
Contact Information
Susan Fox – Board President; 297-2812/cell 917-273-8958; e-mail – lsf@aol.com
Steve Nichols – Executive Director; 442-8012 or 362-3714; e-mail – nicbcmw@sover.net
Currently, Bennington County Meals on Wheels is negotiating with Bennington Project Independence to build a new kitchen at their new senior daycare facility. The facility is expected to open in February 2009.
Challenges
Although capital funds are in hand for the new facility, there is an estimated budget gap of $50,000 (cost of service). This amount will be fundraised. A suggestion was made to look into a matching challenge.
The cost of preparing and delivering a meal is $6.50; $3.57 comes from the state. A client pays $3.00 for the meals; however, the average cost in Bennington is $.89 and in Manchester $1.15.
Some people have a negative perception (“last stop before starvation”) of Meals on Wheels. It’s not about people who are down and out. It’s about seniors who are not mobile or who get together to share a meal and socialize.
An idea was brought up to get youth involved by forming relationships with the clients. Some BBA students helped by cooking meals and others from Long Trail raised funds through the Empty Bowl project.
Nonprofits, Banks, and Banking: Dough and Flow
Presenters were Jim Comar, Vice President of the Northshire Region at the Bank of Bennington; Andy Holzman, Central Regional Manager of Community Banking at Chittenden Bank; and Arne Hammarlund, Vice President of Socially Responsible Banking at Chittenden Bank.
The State of Vermont has more nonprofits per capita than any other state. Banks look to work with nonprofits and are required to do so. Banks do not charge nonprofits for some services. Professionals are available to help nonprofits with start-up costs and tailor banking products for their needs.
Each nonprofit is unique. There is no simple answer to how much interest would be charged on a loan. Banks can create a simple line of credit or arrange for a loan program.
Before meeting with a banker, prepare a business plan – cash flow statement. The Small Business Development Center assists nonprofits by counseling and training and then developing the plan. Chris Herriman is the Area Business Advisor. Chris can be reached via e-mail at mherriman@vtsbdc.org or phone at 773-9147 (Rutland) and 442-8975 (Bennington). Remember you should feel comfortable when talking with your banker.
Questions/Issues
1. A nonprofit will be running an event in the future; however, there are costs which need to be addressed now. How can the bank help?
The banker will look at the event and ask questions about its history (or is it a start-up event) and competition. Even the weather can be a factor. Also, the banker will check the cash flow history.
Nonprofits need to think like a small business. Banks do not generally lend money to start-up small businesses.
2. Do banks approach nonprofits with a new way/idea to be profitable?
Arne presented a case about an educational facility who wanted to purchase 300 acres of land. The only collateral was the land. Individuals stepped up to guarantee the loan. Once the cash flow was in good standing, the bank releases the guarantees.
Nonprofits should also think about the venture capital concept. Are there individuals who will assist the organization?
3. As bankers do you see board members who are not financially knowledgeable?
Yes. This is why it is important for the board member to prepare/see the cash flow statement. A suggestion would be to have a financial committee prepare the plan and present it to the board.
The State of New York requires board members to attend financial classes.
4. When is a good time for a nonprofit to think about investments and bank products?
As the balance builds, look into an investing; however, keep it conservative.
Credit cards are issued based on the organization’s history and strength of the board. The card would be used for everyday expenses such as supplies.
Our next NNN meeting will be held on Friday, April 4, 8:00 a.m., at the Mark Skinner Library, located on Route 7A in Manchester. John Gicewicz (www/jegdesign.com) will present the topic “Online Giving and Fundraising.”
by the National Park Service and the SCA (Student Conservation Association).
