CRITERIA
CCHD has developed criteria and guidelines to ensure that the goals and priorities of its Economic Development Program will be respected and fulfilled through its funding efforts. The criteria are utilized on a required basis to evaluate whether an applicant is committed to both of the EDP goals and therefore can be considered for CCHD funding. The guidelines are utilized on a recommended basis to assess the strength of an Economic Development Institution (EDI) presented by an applicant organization.

• Members of the poverty group have a strong voice in the leadership of the applicant organization. At least one-third of those who plan, implement and make policy for the applicant organization (usually the Board of Directors) are low income.
  
  
• The application focuses on an Economic Development Institution (EDI) that will create income and/or assets for low income people and communities.
  
  
• At least one-half of the intended beneficiaries from the EDI are low income.
  
  
• The applicant has a complete plan for the EDI that documents all three of the components listed below:
  
  
  1. An assessment and analysis of pertinent community needs, resources and regional economic conditions that establish the EDI's strategic direction(s).
     
     
  2. A clear, comprehensive, and detailed strategic plan that establishes how the EDI will develop and operate over the next three to five years. This component must include:
     
     
     • Program description(s) with goals, objectives and the anticipated outcomes for job creation and/or asset development (see Guideline number one on following page);
       
       
     • An EDI ownership structure that results in asset ownership within the low income community;
       
       
     • A multi-year financial strategy for the start-up and on-going viability of the EDI.
       
       
  3. A commitment and strategy for ongoing leadership development on the EDI Board of Directors, at least one-third of whose membership is composed of low income people.
  
  
• Matching funds – in addition to any in-kind contributions – are committed to the EDI at a level that is at least equal to the request for CCHD funds.
  
  
• The organizational activity for which funding is requested must be in conformity with the teachings of the Catholic Church (see Basic Principles of Catholic Mission, page two).

• CCHD has established the following threshold outcomes to ensure that its funding will be directed to EDIs that have the potential for substantial job creation and/or asset development within their communities. EDIs in underserved or distressed areas of the country (e.g. some rural and reservation communities) may receive special consideration as determined by regional standards.
  
  
  • EDIs must create 10 or more new jobs that pay a living wage as determined by regional standards, and/or
    
    
  • EDIs must develop asset ownership for more than 10 individuals or families while also benefiting the larger community. The EDI plan needs to relate the anticipated outcomes for asset development to the specific economic conditions of the EDI's community.
  
  
• An application should establish that its EDI team – staff, consultants, institutional partners and board – has the organizational capacity needed to ensure implementation.
  
  
• An applicant organization should demonstrate a growing base of support (both financial and/or in-kind resources) that reflects valuable relationships in the community.
  
  
• Priority to encourage collaboration:
  
  
  • An applicant organization should describe how it collaborates or plans to collaborate with other organizations in the course of implementation.
    
    
  • An applicant organization should demonstrate a willingness to participate in CCHD's education and promotion efforts.
  
  
• Priority to link economic development with community organizing:
  
  
  • An applicant organization should describe how it will use or promote community organizing among the EDI's beneficiaries so they could work together and with others on additional efforts to effect institutional change.
  
  
• Priority to facilitate the development of information systems in organizations:
  
  
  • An applicant organization should develop and regularly use a monitoring and evaluation system that relies on the active participation of beneficiaries and leads to increased EDI capacity and performance.
    
    
  • An applicant organization should establish an interest in sharing data with other organizations (including CCHD) for the purposes of peer support and mutual learning.

• CCHD funds may be used for general operating expenses, including staff salaries/training, procurement of technical assistance, board development costs and other overhead costs.
  
  
• For business development, CCHD funds may be used as part of a financing package for start-up or expansion, including start-up costs or working capital.
  
  
• For real estate development, CCHD funds may be used for pre-development or continuing operating expenses.
  
  
• Funds may not be used for capital expenditures (e.g. real estate, vehicles, equipment).

• Economic Development Institutions (EDIs) structured without opportunities for participatory control and ownership by low income people.
  
  
• EDIs structured without opportunities to develop community-held assets (e.g. sole proprietorships, simple partnerships or fee-simple housing projects are not eligible).
  
  
• EDIs owned or controlled by governmental agencies (federal, state or local), educational or ecclesiastical bodies.
  
  
• EDIs the primary focus of which is direct service (e.g. job training, business consulting, financial literacy, savings programs, or homeownership education programs by themselves are not eligible). Such services may complement an eligible EDI, but they cannot be the EDI's primary focus.
  
  
• Economic development programs that are not structured to stand on their own as sustainable institutions.
  
  
• EDIs that intend to re-grant CCHD monies to other organizations.

Any questions of clarification for the these guidelines, please contact us.