Sustainable resourcing includes consistent and reliable staff and funding that is necessary for long-term planning, stability, and continuity of the anchor collaborative’s efforts. Sustainable resourcing allows collaboratives to invest in capacity-building activities and pursue multi-year initiatives that are core to the anchor mission, which require long-term commitments and engagement by anchor institutions and the backbone.
By securing and effectively managing resources, the collaborative can create a stable foundation for its work, build its capacity, and contribute to the vitality of the local community. A well-resourced, well-managed collaborative can build trust and credibility among stakeholders, innovate, adapt to changing community needs, and measure its impact, while also leveraging outside resources and partnerships to advance its mission. Without reliable and ongoing resources, the collaborative may struggle to achieve its goals, engage stakeholders, and sustain its efforts.
In this section, we discuss common staffing approaches, organizations that fund collaboratives, and different ways in which anchor collaboratives utilize their resources to support their goals.
Resourcing needs
Where the anchor collaborative “lives” (i.e., which organization(s) serve as the backbone, whether there’s a fiscal sponsor) can determine the resources that a collaborative needs and can access. Collaboratives operating as an initiative of an existing nonprofit usually have their general operating expenses supported by the nonprofit, which helps fundraise for new initiatives. Other collaboratives may be fiscally sponsored or under contract with a university or health system for back-office functions, while collecting membership dues or donations from anchor institution members to support the collaborative’s programs and general operations.
Among the anchor collaboratives who informed this playbook, the annual reported budgets specific to the collaborative’s work ranged from $75,000 to $5 million. As with any new initiative or nonprofit, backbone organizations and the anchor collaboratives should think strategically about a funding model that includes a mix of revenue sources.
Staffing the collaborative
Many collaboratives will start with a part-time consultant or facilitator who is responsible for many of the coordinating and engagement functions of the backbone including organizing the group, socializing the anchor collaborative concept, building relationships and buy-in, establishing foundational structures, facilitating meetings, and helping set initial goals. A collaborative may then decide to hire a full-time executive director as the scope of activity expands and resourcing permits. The initial staff (consultants, facilitators) are typically either contracted or employed by the trusted convener or backbone organization, an anchor institution, or other allied organization, as most collaboratives do not start off as independent organizations. Additional capacity can come from partner organizations, other anchor institution members, or by hiring support staff specifically for the collaborative.
Some collaboratives have grown to teams of 5-10 employees, with project managers, program analysts, development directors, or administrative staff who support one or several of the collaborative’s initiatives. Especially in the early stages, anchor institution members of the collaborative may provide in-kind staff, such as grant writers or development officers who support the collaborative by identifying and pursuing funding opportunities and building relationships with funders.
For more on staffing the collaborative, see section 1.4 Forming the Collaborative and the Backbone, and section 3.1 A Shared Imperative, which discusses the role of a trusted convener.
Who funds anchor collaboratives?
Below we outline four main funders of anchor collaboratives:
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local philanthropy
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national philanthropy
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public entities
With the addition of anchor institutions as a unique revenue source, these sources of funding are consistent with the Nonprofit Finance Fund’s research on Funding Streams for Place-based Partnerships. Following an overview of funding sources, we discuss how funding is used by anchor collaboratives to support general operations and programmatic work.
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Funding source
Philanthropy, local: restricted or unrestricted grants from private, community, or corporate foundations operating locally or at the state level; or individual donors.
Philanthropy, national: restricted or unrestricted grants from private, community, corporate foundations operating nationally.
Public: federal, state, local, or another publicly funded agency that provides grants or contracts to anchor collaboratives.
Anchor contributions: Financial contributions from anchor institutions include sponsorships, membership dues, donations, and grants to support the collaborative’s general operations and programmatic initiatives. Anchor institutions may also support the collaborative in-kind through staff time or space for events and meetings.
Funding use
Operating (member dues): Unrestricted membership fees or dues paid by members of the anchor collaborative to support the mission and general operations of the collaborative.
Operating (public, grants): Unrestricted grants or funding from public sources to support the mission and general operations of the collaborative.
Project-specific/Restricted: Grants, public funding, or member contributions earmarked for a specific use by the Anchor Collaborative.
In-kind: Non-cash contributions such as staff time, office or event space, catering, or supplies to support the Anchor Collaborative’s activities.
Sponsorships: Funding from a public or private source for a one-time event or short-term project, typically from the donor’s marketing budget.
Funding Streams, Philadelphia Anchors for Growth & Equity (PAGE)
PAGE is largely funded through philanthropy from sponsorships and grants from the Lenfest Foundation, the Barra Foundation, JPMorgan Chase, TD Bank, and AmerisourceBergen. In parallel, PAGE anchor institutions each pay $20,000-$25,000 in dues annually. The collaborative also receives funding from the City of Philadelphia and the Economic Development Administration. The diversity of funding streams allows PAGE to sustainably operate, without an overreliance on a single stream of funds. PAGE believes the quest to diversify funding should be sequential, with support from anchor institutions and government coming first. For PAGE, once that support was secured, it was easier to get philanthropic dollars and public grants. Even if an anchor collaborative has a philanthropic sector willing to provide catalytic support, PAGE recommends securing commitment letters from their anchor institutions before taking philanthropic dollars so those institutions fully understand that funding is part of their commitment to the collaborative and their community.
[56] “Funding Streams for Place-based Partnerships, and Their Benefits and Challenges,” Nonprofit Finance Fund, last modified 2021, https://nff.org/file/1526/download?token=M5BBsFgX.
[57] Douglas Easterling and Laura McDuffee, “Social Determinants Of Health: How Are Health Conversion Foundations Using Their Resources To Create Change?,” Health Affairs Forefront, (2018), accessed February 1, 2024, https://doi.org/10.1377/forefront.20180313.6738.
Philanthropy
Local and national philanthropy—including private, community, and corporate foundations—commonly provide funding for anchor collaboratives. A small number of collaboratives have also received large gifts from individual donors. Private sector philanthropy has typically come from large national or multinational corporations with headquarters or deep history in the location where the anchor collaborative is located.
1. Local philanthropy
Defined as restricted or unrestricted grants from private, community, or corporate foundations operating locally or at the state level; or individual donors. Health funders including anchor institutions themselves (e.g., through their foundations), community foundations, and health conversion foundations are increasingly common funders for equitable economic development initiatives. Health conversion foundations are created with the proceeds from a sale, merger, acquisition, or other transaction by nonprofit healthcare systems or hospitals, and do not have the same type of donor restrictions that often limit where community foundations can focus their resources. These place-based foundations have historically focused on healthcare access, but many have shifted their focus to address root causes of health and wealth disparities (e.g., social determinants of health, community conditions, and systems change). Grants from local funders tend to be smaller compared to those of national funders, however, the collaborative may find stronger alignment and long-term commitment with local philanthropy due to their mutual focus on place.
Table 6. SDOH outcomes sought by health conversion foundations
Grantmakers in Health developed a primer on Health Conversion Foundations, including a list of such foundations by state as of 2021: Update From the Field: Health Conversion Foundations.
2. National philanthropy
Includes restricted or unrestricted grants from private, community, or corporate foundations operating nationally. Based on what we have learned at the Healthcare Anchor Network, national funders are more likely to support anchor collaboratives that have a clear shared imperative and framework for action—for example, the collaborative may have developed a charter, secured commitments from anchor institutions, and/or piloted an initial program together with the community.
Below is a list of national funders that have supported anchor collaboratives around the country to date (and is not indicative of their future funding priorities). Collaboratives have found it important to identify national funders that value place-based efforts and are willing to fund hyperlocal work. Healthcare Anchor Network encourages national funders to look more deeply at anchor collaboratives as a place-based strategy for impacting economic and racial inequities, and explore how to partner with local philanthropy or other national intermediaries to support these efforts. While the following funders have supported collaborative work in the past, there are many other national funders who focus at state or regional levels. It is important to conduct thorough research and explore various options to find the best fit for your anchor collaborative, and check with the development teams within anchor institutions to see where they already have relationships.
Examples of national funders supporting anchor collaboratives:
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Ballmer Group
- West Side United
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Bank of America Foundation
- Philadelphia Anchors for Growth and Equity
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Citi Foundation
- South Florida Anchor Alliance
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JPMorgan Chase Foundation
- West Side United and Philadelphia Anchors for Growth and Equity
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Lowes Foundation
- Southwest Partnership
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Robert Wood Johnson Foundation
- Brooklyn Communities Collaborative and Tacoma Anchor Network
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TD Ameritrade Foundation
- Philadelphia Anchors for Growth and Equity
3. Public entities
Includes federal, state, local, other publicly funded agencies that provides grants or contracts to anchor collaboratives. For most of the collaboratives who helped inform this playbook, public funding is a small portion of their total revenue. However, a handful of collaboratives were initiated with public funding sources and later received philanthropic grants. Others have contracted with municipalities for specific projects or services such as school- or community-based programs. During the COVID-19 pandemic, several collaboratives received funding from the American Rescue Plan Act. Other collaboratives have administered Community Development Block Grants, or received grants through other programs administered by state or federal authorities, typically through housing and workforce agencies.
Leveraging Public Funding, Tacoma Anchor Network (TAN)
The City of Tacoma is the fiscal sponsor and primary funder of the Tacoma Anchor Network (TAN), which was established in 2018 in alignment with the Tacoma 2025 Strategic Plan. From 2022-2024 TAN was allocated $77,500 annually, which primarily covers one part-time contractor to facilitate the network. City staff in the Office of Strategy provide additional backbone support. TAN has benefitted from champions on the city council who advocate for and help approve its funding based on recommendations from the Office of Strategy within the city manager’s office. The public funding has enabled the anchor institutions to work together and build trust as a network without requisitioning dues from institutions—making it more accessible since some anchor institutions have spending restrictions. However, TAN recognizes that city budgets have competing priorities that can change over time, so it is working to diversify its funding stream through potential anchor institution membership fees, grants, and other philanthropic funding.
Anchor Collaboratives as Partners in Federal Funding Opportunities, Western Massachusetts Anchor Collaborative (WMAC)
Western Massachusetts Anchor Collaborative is part of a broad coalition of partners that received a strategy development grant as part of the Economic Development Administration’s Recompetes Program. The Springfield-Holyoke Recompete Plan, led by the MassHire Hampden County Workforce Board and Baystate Health, represents a coalition of community partners and anchor institutions that have come together to tackle structural barriers to employment, and create a human-centered design process that starts with understanding challenges that unemployed people experience, and then works with employers, service providers, government, workforce development board, and others to systemically start to mitigate them. The plan focuses on connecting residents in neighborhoods that have faced persistent inequity, structural racism, and disinvestment to supportive services and good jobs at anchor institutions. Funding will support four holistic investments that address employment barriers through a shared services hub, workforce development and training, and the expansion of employer commitments to worker-friendly jobs. The coalition is one of twenty-two finalists who are eligible to apply for implementation funding, with awards ranging from $20-$50 million to be announced in 2024.
4. Anchor institutions
Financial contributions from anchor institutions include sponsorships, membership dues, donations, and grants to support the collaborative’s general operations and programmatic initiatives. Anchor institutions may also support the collaborative in-kind through staff time or space for events and meetings. Financial contributions signal an institutional commitment to the collaborative and demonstrate members’ vested interest in its success. Grants or annual membership donations from anchor institutions help cover the day-to-day operating expenses of the collaborative and can be leveraged for additional funding from outside sources.
Determination of Need and Community Benefit AgreementsWhen setting up a funding structure, anchor collaboratives will need to determine whether any payment issued by anchor institutions to support the collaborative is contractual, or if it is a grant or donation with no stipulations tied to the payment. The latter affords more flexibility, especially in early years, and is recommended. The next section called How Anchor Collaboratives Use Funding, emphasizes annual dues from members and programmatic grants as the most sustainable funding sources for this work.
Some collaboratives have instituted a “pay what you can'' model, or do not request funding at all from community partners, neighborhood associations, or those members of the collaborative who are important community partners and may fall outside the traditional definition of an anchor institution. It is highly recommended to set up a financial contribution structure that considers the unique financial position of each member of the anchor collaborative.
In-kind contributions In-kind contributions and sponsorships from anchor institutions typically account for a smaller portion of total revenue for the collaborative. While in-kind contributions and sponsorships do signal early support of the collaborative and can help resource the collaborative in the short-term, these contributions are best understood as supplementary funding in addition to the other sources discussed here.
A successful anchor collaborative will require at least some financial contributions from anchor institutions in addition to their operational commitments associated with the anchor mission. Both commitments are necessary and funding for the collaborative should not come in lieu of the organizational commitments associated with the anchor mission. Funding is necessary to support the backbone function and coordination of the collaborative’s activities. The success of those activities ultimately hinges upon the anchor institution’s own commitments to leverage their economic assets (hiring, purchasing, investing, advocacy, community giving, etc.) in partnership with the community.
Steps for getting started: Develop a fundraising plan for the collaborative
The backbone, with members of the anchor collaborative, can take a strategic approach to identifying and securing resources by developing a fundraising plan.
Here are some action-oriented steps to develop a fundraising plan alongside members of the anchor collaborative:
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Conduct a thorough assessment of the financial needs of the collaborative. Consider questions such as:
- What are our programmatic goals for the collaborative (e.g., launch a shared business accelerator program, create a shared workforce pipeline program)?
- What are our operational goals for the collaborative (e.g., how many full-time employees [FTEs] would be required to sustain this work? Which roles are top priority to support first?)?
- What existing funding do we have (e.g., dues, philanthropy)? For what amount and for how long? Is this funding tied to specific projects or goals, or is it general operations funding?
Note: This is a great opportunity to engage with other anchor collaboratives to gather their input and guidance. This can help ensure an accurate estimate of funding needs.
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Research funders that are aligned with the collaborative’s goals around equitable economic development, local community impact, specific anchor mission strategies, etc., and note key talking points from each organization to weave into future proposals. Consider diversifying funding streams to reduce reliance on any single source. Fundraising teams within anchor institutions can help with this.
To find additional funders, anchor collaboratives and backbones can consult online resources such as GrantStation, Foundation Center, Grants.gov, or Guidestar, as well as consult with local community foundations, nonprofit organizations, government grants and programs (local, state, and federal), or other experts in your area.
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Craft a written fundraising plan including key deadlines, time-bound financial goals, and lists of prospective donors and grant opportunities, and update the plan regularly to reflect changes in the collaborative's needs and funding landscape. Establish a fundraising working group that includes development professionals from anchor institutions and community partners.
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Create a compelling case for support that reflects the priorities of your collaborative in alignment with the funding opportunity. Articulate collaborative's mission, vision, progress to date (including anchor institution commitments and partnerships with community organizations), and unique value proposition of the model. Collaborate with community partners and anchor institution fundraising staff in the development of such proposals, and tailor proposals for each prospective funder.
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Call on your champions for support in building and nurturing relationships with new and prospective funders. Engage funders in the collaborative's work, share updates and progress, and invite them to events and meetings to see the impact of their contributions. Stay on top of documenting key outcomes and progress toward stated goals to ensure accurate, timely, and thorough reporting to funders.
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Explore and consider a dues model for all collaborative members. Connect with other anchor collaboratives that are focused on similar strategies and are funded in this way. Start conversations with the collaborative about what a dues structure could look like. Pose questions such as: What value does the anchor collaborative provide to your institution? What progress would the institution need to see to consider a recurring donation?
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Funding Streams for Place-based Partnerships, Nonprofit Finance Fund (2021)
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Full Cost Workbook for Backbones of Place-Based Partnerships, Nonprofit Finance Fund (2021)
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Anchored in Place: How Funders are Helping Anchor Institutions Strengthen Local Economies, Funders Network (2020)
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Social Determinants of Health: How are Health Conversion Foundations Using Their Resources to Create Change? Health Affairs (2018)
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3-Year Backbone Budget Scenario Analysis Tool, Collective Impact Forum (2015)
Continuum of Progress: Sustainable Resourcing
Funding supports larger-scale programs, initiatives, and services in support of anchor strategy implementation.