Event:2016/10/10 Fundraising Call w/ Stephaney

Fundraising Working Group Check-in Meeting w Stephaney Kipple, 10/10/16 Attendee: Laura 1. Review where we are as far as the services we are contracted to receive: ** Business planning, inc. plan review, financial modeling. How are our business and fundraising plans looking at this point? * Only written plan is really missing. We know what our options are to increase income. Lenders actually look at these documents but they are also good for internal documentation and planning. Not really needed for current transaction. Should have written plan by time of applying for loan in 4-5 years. IF you don't want to do this now, you can always come back to me in the future for review. * Often through the process of writing always uncovers missing elements or things that haven't been considered. * We should come with business plan ready to NCCLF so they can help us with refinancing. * I can provide guidance through the acquisition process. There will be alot of legal and accounting work in your case - different than usual transaction. IF there is anything I can be of help with - letter of intent to purchase? Business side of purchase and sale agreement, what terms you should be negotiating for. USing appraisal and capaital needs assessment to ask for refund/money off. * You have been amazing at cobbling this together a lot by yourselves. * Laura: How common is it for buyer to come back and ask for $ off of already agreed upon purhcase price in a situation such as ours? **Steph: Not uncommons for people to ask something beyond what is the option agreed price.You have to take the market into consideration, which is very hot right now. Also, the cost of outstanding urgent building repairs. You could do it in the letter of intent. You can ask but in this market is againt him saying yes. It isnt unreasonable to ask, but he can always say no. WIll still have to fully fund escrow but then seller can credit it back to you if he agrees to reduce price. 2. Updates on work done over past couple of weeks ** Omni will have a loan payment on your liiabilities, and on assets will have 51% of building, but you're about 100% leverages. There i no equity in the asset. SUdo will have restricted net assets of 1mil without any liability on that asset-all aquity. That will be something really hard for the non-profit funder to get over. ON the other hand SUDO will look great becasue of no debt. ** I've never seen this problem come up before with a major donor. I reached out to Community Foundation fo the East Bay donor advised funds would be willing to pass through. ** Stephaney will ask them aobut our particular situation. ** Will also see if she can use some of the funds for the contract to subcontract an expert on this area of nonprofit tax law to get a second opinion on accepting the donation. 3. Moving to every 2 week meeting schedule. Mondays at 2:30 starting today 4. Action Items
 * Real estate advisory services
 * Current plan to buy the building explained
 * Appraisal begins Tuesday
 * Talking to capital need assessment contacts
 * Stephaney feedback:
 * Steph will check in with director to see if we can subcontract an expert to review your situation
 * Steph will also check in with colleagues and donor advised fund people if they have any experience with a similar situation.
 * Us: think about what we want to do to move forward with business plan going forward after transaction. NCCLF wants to positively impact the groups they work with.
 * Us: Probably should have written clear fundraising plan, steph can review but isnt a fundraising expert though.
 * Will check in in 2 weeks at same time.
 * LEt Steph know if there is anything else she can help us with