Spend time finding ways to reduce costs, secure funding

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

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 http://seniortransportation.easterseals.com/site/PageServer?pagename=NCST2_Transportation_by_the_Numbers

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 www.ctaa.org, under tab “Financing”

Community Development Transportation
Lending Services, Inc. (sponsored by CTAA)
Microloans for transit software and hardware
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 money

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)
BUT
 Do add a perception of value to the service

Write effective grants
Leverage non-DOT federal match money
Maximize opportunity for local and in-kind match

 Private donations can serve as local match
 Funds, real property, materials and services eligible
 Document value of in-kind contributions

Advertising
 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 http://ntl.bts.gov/lib/4000/4600/4633/lessons.pdf

Seek Foundation Grants
 Project must be in foundation’s primary area of interest
 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 services
 Performance measures: be able to report benefits to donors/community
 Successful grant leads to more grant money

Foundation funding, by category, 2011
30
25
20
15
10
5
0
Source: Foundation Center

Foundation Human Service Grants, by category
50
45
40
35
30
25
20
15
10
5
0

Foundation Center (www.foundationcenter.org)
Council on Foundations (www.cof.org/Locator)

Set up Your Own Foundation
 Have a clear mission and objectives tied to community welfare
 Solicit donations – from individuals and other foundations
 Report benefits to donors/community

Contract Revenue
1. Know what it will cost your agency to provide services
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

 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 vehicles
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” http://dowser.org/top-ten-crowdsourced-funding-platforms/
• Crowdsourcing.org
http://www.crowdsourcing.org/community/crowdfunding/7
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

Thank you!
Amy Conrick
Community Transportation Association of America conrick@ctaa.org
202-415-9692