The Fund for Our Economic Future today awarded $5.32 million to groups and initiatives focused on developing the region's economy.
CLEVELAND, Ohio -- The Fund for Our Economic Future has promised grants of up to $5 million to six key economic development groups, a commitment that's down 25 to 30 percent from years past, a future fund official says.Those six anxious groups will now look to the Cleveland Foundation to cover the funding shortfall, possibly by the end of the month.
"It's definitely less than we received in the past," Tom Waltermire, chief executive officer of Team NEO, said of today's future fund grant announcement. "What it means for us remains to be seen."
The future fund, a collaboration of more than 100 foundations and philanthropists, announced eight grants totaling $5.32 million.
Team NEO, the region's business-attraction group, received $825,000, compared with $1.1 million last year, Waltermire said.
Team NEO was one of six development groups with specialized roles in boosting the 16-county region's economy to receive grants from the future fund.
The others in that group were BioEnterprise, which fosters growth of bioscience companies, $1.1 million; JumpStart, which helps grow high-potential companies, $1.3 million; MAGNET, which advocates for the manufacturing sector, $434,000; Minority Business Accelerator 2.5+, which aids minority-owned companies, $750,000; and NorTech, which helps grow the region's high-tech industries, $633,000.
The six groups performed well, considering the tough economy, said Brad Whitehead, president of the future fund.
But the grants reflect about a 25 to 30 percent drop from years past, he said.
It was not unexpected. The future fund has less to give.
The future fund's largest contributor, the Cleveland Foundation, decided last year to greatly reduce the amount it funneled to the regional philanthropy, for a host of reasons.
The pullback sparked rancor between the two powerful funds. But the Cleveland Foundation emphasized it would give directly to the six organizations, instead of through the future fund.
All six applied for grants from the foundation, which is expected to review most of the requests and announce grants at a June 29 meeting of the foundation's board of trustees.
"We're aware of the needs of the organizations," said Bob Eckardt, the foundation's senior vice president for programs and evaluation. "It will all be factored into the decision-making."
Waltermire said he's hopeful the Cleveland Foundation will cover his funding gap.
"We've had good support in the past," Waltermire said. "Whatever the community does, we are appreciative."
The two other grants the future fund announced today were $200,000 to a regional collaboration that seeks to strengthen the region's agriculture industry through development of fresh produce, biomass energy and horticulture projects, and $25,000 to organize a regional application for a federal Sustainable Communities Initiative grant of up to $5 million.