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EDP wants to hire fundraising firm

August 22, 2008|BOBBIE CURD

If all goes as planned, a new company may enter the business world of Danville to raise funds for economic development efforts.

The Danville-Boyle County Economic Development Partnership heard a presentation Wednesday from National Community Development Services, which proposed to raise $3 million over a five-year period.

Jody Lassiter, EDP president and chief executive officer, said the partnership is considering entering into a contractual, fee-for-service relationship with a firm such as NCDS to conduct an eight- to 10-month investment campaign targeted to the private-sector business leadership in the Danville community.

Lassiter said the typical fee for a consulting service of this type would run about $25,000 per month. He said the firms do not operate on a commission basis, and the agreement will specify the funding that would be required to pay for the service.

Lassiter says he does not want to pursue public funding to pay for such a relationship, but realizes that funding will be the major challenge.

The initial study required to launch the campaign effort would cost $25,000, and the monthly fee would mean an ultimate cost of $275,000 in 10 months.

"The recommendation from NCDS and another firm we have contacted is that EDP would enter into a letter of credit with a local bank that would be paid upon the conclusion of a successful campaign," Lassiter said.

Underwriting from local organizations

He said another option is that a local private entity or entities may underwrite the cost to assure that the community can benefit from a sustainable economic development program.

"Careful planning is conducted in advance of the campaign launch, resulting in the creation of a five-year action plan which will determine the level of private-sector investment needed over and above the EDP's current level of funding to achieve the objectives of that plan," Lassiter said.

He said the plan will receive significant community input to form the basis of the campaign.

Lassiter said Howard Benson, the founder and CEO of NCDS, assessed the Danville-Boyle County community as possibly yielding about $3 million over the five-year pledge period, or $600,000 per year, which Lassiter says would be used to "greatly enhance our economic development programs."

"Any contribution to EDP is a charitable tax deduction since we are a 501(c)(3)," Lassiter said.

He says the real return on the investment is increased economic growth and enhanced quality of life for businesses, managers and employees.

For more information on how National Community Development Services works, go to www.ncdsinc.net.

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