[YL] March Funding Tip from the Finance Project

[Maryam Bajoghli]

March Funding Tip

 

The Finance Project is pleased to announce the next installment in a
series of monthly funding tips
<http://www.financeproject.org/special/irc/monthlyFundingTips.cfm>  for
youth programs.   These tips cover different financing strategies to
help programs finance and sustain their work.   

 

 

Tip: Use Community Development Block Grant (CDBG) Funds to Support Youth
Programs and Services

 

For decades, policymakers, practitioners and community stakeholders have
worked to revitalize communities facing increased rates of poverty,
limited economic development, and decaying physical infrastructure.
Increasingly, community development leaders are recognizing that their
efforts must focus not only on improving physical infrastructure and
recruiting new businesses, but also on investing in meaningful,
long-term community change by providing youth with employment and
leadership opportunities, safe neighborhoods, and access to quality
education.  CDBG is an important funding source that local governments
and agencies can utilize to provide support youth programs and
initiatives.

 

While CDBG funds are primarily aimed at addressing "brick and mortar"
needs (e.g. building and construction projects) of communities, some of
the funds are earmarked for public services.  Public services funding
can be used to support ongoing operation costs (e.g. labor , supplies,
and materials), which, in turn, can be used to provide health, welfare,
educational, employment, recreational, child care, drug abuse, and crime
prevention services.  In addition, public services funding can be used
to finance the costs of operating and maintaining a portion of a
facility that houses a public service (e.g. a shelter or recreation
center).  Lastly, CDBG can also be used to purchase or lease items such
as equipment, furnishings, and vehicles necessary to provide a service,
as long as the service is an eligible CDBG activity and can be
considered as part of the activity delivery costs.  

 

CDBG is a fairly flexible funding source for meeting the funding needs
of youth programs and services, however, it is important to note that no
more than 15 percent of a jurisdiction's CDBG funding can be used for
public services.  Depending on the jurisdiction, this funding constraint
may affect a program's access to this funding stream. The ease with
which youth serving providers can access CDBG for their programs really
boils down to the jurisdiction's current priorities for CDBG funding.
To successfully influence the allocation of CDBG funds, it is essential
for program leaders to understand current spending and planning
processes, establish relevant relationships, and advocate for funding
for a youth program or initiative. 

 

 

 

 

Example from the Field: Using a Dedicated Funding Stream to Support
Youth

 

In 2002, the city of Las Vegas redesigned how CDBG public services funds
were distributed in an effort to create a more equitable system for
applicants.  As a result of this design change, youth services became a
larger focus of CDBG public service funds.  The city's CDBG public
services funding is divided among four different categories: youth and
leisure (each accounting for 15 percent of funds); child care/Safekey
(25 percent); social services (25 percent); and life skills (20
percent).  

 

The Neighborhood Development Division of the city's Neighborhood
Services Department distributes CDBG funding through an annual request
for applications process.  Community development objectives in the
2006-2007 action plan indicated an intent to serve 12,553 young people
through the CDBG public services funding (youth category).  A total of
$717,773 in CDBG funding was distributed among local nonprofit
organizations to support 10 youth programs, 8 life skills programs, 10
social services programs, and 5 child care programs.  For more
information see http://lasvegasnevada. gov/publications/plans. asp#
<http://lasvegasnevada.gov/publications/plans.asp> . 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For more information on this financing strategy and the role of
intermediaries and policymakers in supporting community-based youth
initiatives, see The Finance Project's publication, Using CDBG to
Support Community-Based Youth Programs
<http://www.financeproject.org/publications/CDBGyouthprograms.pdf> .   

 

Within the Youth Programs Resource Center
<http://financeproject.org/index.cfm?page=31>  you will also find an
online clearinghouse
<http://www.financeproject.org/special/irc/monthlyFundingTips.cfm> ,
jointly developed by The Finance Project and The Forum for Youth
Investment.   The clearinghouse contains a wealth of information and
resources for supporting and sustaining youth programs and initiatives.
It is designed to help you learn about data, tools, policies, practices,
financing strategies, coordination efforts and technical assistance
resources developed by organizations in the field that aim to improve
the lives of youth. 

 

 

 

 

 

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