Leveraging Arts for Local Economic Growth

Measuring Success in Community/Economic Development Grants ## Assessing Impact in Community Development Block Grants Community/Economic Development grantees must effectively measure the success of their projects to ensure they are achieving their intended goals. The measurement of Community Development Block Grants (CDBG) and other community development initiatives requires a comprehensive approach that captures the complexity of the outcomes. To assess the impact of their projects, grantees should focus on tracking relevant Key Performance Indicators (KPIs). These may include metrics such as the number of jobs created or retained, the amount of leveraged funding, and the number of people served by the project. For instance, a community development project might track the number of businesses that receive technical assistance or the number of housing units rehabilitated. In terms of reporting requirements, grantees should be aware that the funder will require regular submissions of performance metrics. These reports will help to inform future funding decisions and ensure that the grantee is meeting their contractual obligations. To comply with these requirements, grantees should establish a robust data collection and analysis system that can track the necessary metrics. One concrete regulation that applies to this sector is the requirement to comply with the CDBG National Objectives, which are a set of guidelines that dictate how CDBG funds can be used. Grantees must ensure that their projects meet one of the three national objectives: benefiting low- and moderate-income persons, preventing or eliminating slums or blight, or meeting urgent community development needs. A verifiable delivery challenge unique to this sector is the difficulty in securing matching funds for community development projects. Many community development initiatives rely on a mix of public and private funding sources, and securing the necessary match can be a significant challenge. This can limit the scope and scale of projects, making it harder to achieve the desired outcomes. To overcome these challenges, grantees can explore alternative funding sources, such as partnership development grants or USDA rural development grants. They can also focus on building strong partnerships with other organizations and stakeholders to leverage resources and expertise. When applying for Community/Economic Development grants, applicants often have questions about the measurement and reporting requirements. Here are three FAQs specific to Community/Economic Development applicants: Q: What are the most important KPIs to track for a community development project? A: The most relevant KPIs will depend on the specific project goals, but common metrics include jobs created or retained, leveraged funding, and people served. For example, a project focused on business development might track the number of businesses that receive technical assistance. Q: How often are grantees required to submit performance reports? A: The frequency of reporting will be specified in the grant agreement, but grantees can expect to submit reports on a regular basis, such as quarterly or annually. It's essential to establish a robust data collection system to ensure timely and accurate reporting. Q: Can CDBG funds be used to support project planning and administration costs? A: Yes, CDBG funds can be used to cover certain planning and administrative costs, such as staff salaries and project evaluation expenses, as long as they are reasonable and directly related to the project.