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Accelerating the Economic Transition
         of Central Appalachia




Promising
Sectors.

Entrepreneurial
Supports.

Community
Capacity.




                   The Appalachia Funders Network
                              3rd Annual Gathering
                                  Berea, Kentucky
                            March 28 and 29, 2012
Executive Summary
In March 2012, 84 people representing 56
                                                            Appalachia’s Economic Transition
organizations came together at the 3rd Annual
Gathering of the Appalachia Funders Network            For decades, Appalachia has struggled to
in Berea, Kentucky. Participants included                 overcome some of the highest rates of
grantmakers, development practitioners, young         poverty, unemployment, and chronic health
                                                            problems in the nation, despite our
leaders, and local entrepreneurs. The goal of the
                                                       abundant natural resources, strong cultural
gathering was to develop a set of common                 heritage, and entrepreneurial spirit. We
priorities and actions related to two topics: (1)       envision a sustainable regional economy
accelerating the startup and growth of                that builds on these assets to create multiple
entrepreneurs, and (2) strengthening the                forms of wealth and promote opportunity
capacity of local communities to successfully          and equity for all Appalachian individuals,
                                                                families, and communities.
develop, implement, and sustain economic
development strategies.

The gathering began with an evening of Appalachian culture. We spent an evening reconnecting and
enjoying local Appalachian music, dance, poetry, and storytelling.

The next morning we began with a welcome from Sandra Mikush, Chair of the Appalachia Funders
Network. Sandra shared a video that the Network developed, which set the stage for our work together. We
spent the rest of the morning in three site visits, where we talked with local entrepreneurs, practitioners, and
young leaders about the opportunities and challenges they face as they work to improve local economies.
We reconvened for two presentations at lunch. Both speakers challenged us to use our best assets, our
people, to strengthen local economies. In the afternoon, we held two panel conversations, one on how to
support rural entrepreneurs and one on how to build community capacity.

During our second day, we worked in small groups to develop priorities for growing entrepreneurship and
strengthening community capacity. We closed by developing plans for next steps, both as individual
                                                  organizations and as a network.

                                                      As grantmakers, we recognize that we cannot make
                                                      change on our own. It is, after all, local people who will
                                                      drive the economic transition that we hope to see in our
                                                      region. At this gathering, we developed some concrete
                                                      ideas about how funders can work with local people to
                                                      create an economy where people and communities
                                                      become more prosperous while protecting the
                                                      landscapes upon which Appalachian culture and society
                                                      depend.
Contents


Context for the 2012 Gathering……………………………………………………………... 1

Opening Session and Welcome: Accelerating the Economic Transition……........... 2

Local Site Visits: Estill County, Rockcastle County, Next Generation Leaders...........   3

Keynote Presentations: The Role of Entrepreneurship in Economic Transition..........      4

Panel Discussions: Supporting Entrepreneurship, Building Community Capacity….             5

Setting Priorities: Supporting Entrepreneurship, Building Community Capacity........ 6

Defining Next Steps: For Individual Grantmakers For the Network….......................... 8

Moving Forward: Two Network Initiatives…………………………………………………..                              10

Closing Reflections……………………………………………………………………………... 11

Participating Funders…………………………………………………………………………..                                       12

Participating Practitioners…………………………………………………………………….. 13

Pre-Conference Cultural Exchange Speakers and Performers………………………..                       14

Gathering Sponsors…………………………………………………………………………….                                          15

About the Appalachia Funders Networks…………………………………………………                                  16
Context for the 2012 Gathering

Appalachia Funders Network

The Appalachia Funders Network is a group of public and private grantmakers who envision an
entrepreneurial-based Appalachian economy that provides opportunity for all, while sustaining the
environmental and cultural assets of our region. Our work is focused in Central Appalachia, the region we
define as the Appalachian counties of Ohio, Kentucky, Tennessee, Virginia, West Virginia, and North
Carolina. As a network, we offer grantmakers the opportunity to develop a shared analysis and collective
strategies to address the challenges and opportunities that we see across the region.

                                                                        “At past gatherings, we’ve really
                                                                          looked at why Appalachia’s
Network Gatherings: Past and Present                                     transition is important. We also
                                                                        discussed key opportunities, but
The Appalachia Funders Network formed in March 2010. Since                  now it’s time to make this
then, we have hosted three annual gatherings, each building on           happen and work together to
the energy and vision of the previous year’s work and identifying              advance this work.”
key areas of common interest and potential collaboration.
                                                                            - Sandra Mikush, Chair,
                                                                          Appalachia Funders Network
2010: Appalachia in Transition, Abingdon, VA
•   Developed an analysis of the forces that have shaped Appalachia
•   Recognized that the region is in another economic transition
•   Discussed how we can help move the region towards a more sustainable and equitable economy
•   Decided to form and develop the Appalachia Funders Network

2011: Strategies for Collaboration, Charleston, WV
•   Developed analyses of opportunities and challenges in the food, energy, and health sectors
•   Identified barriers to collaboration among grantmakers interested in the economic transition
•   Developed concrete strategies to increase collaboration among grantmakers across Central Appalachia

2012: Accelerating the Economic Transition of Central Appalachia, Berea, KY
•   Explored the entrepreneurial supports and community capacity needed to advance the region’s economy
•   Created a list of shared priorities for strengthening entrepreneurship and community capacity
•   Developed concrete ways that individual grantmakers and the Network can move these priorities
•   Celebrated our Appalachian heritage, culture, and arts

This paper seeks to share some of our learning, analysis, priorities, and next steps from this year’s gathering.




Appalachia Funders Network – 2012 Gathering Proceedings                                                        1
Opening Session and Welcome

Accelerating the Economic Transition

Sandra Mikush, Chair of the Appalachia Funders Network,
challenged us to use the wisdom of everyone in the room to
think together about how to accelerate Appalachia’s
economic transition. “There are a lot of folks in the room
who bring different skills, perspectives, and ways of
supporting the work, but it is going to take all of us, sharing
what we know and learning what we don’t know, to make
this transition a reality.” She framed the next two days as an
opportunity to “really dig deep” into understanding the
entrepreneurial supports and community capacity that are
needed to make a just and sustainable economic transition a reality.

Sandra then shared a video that offered a short meditation on what we mean by the Appalachian transition,
why it is important, and what it is going to take to move the transition forward. The video opened with a
quote from an Appalachian community development practitioner: “People are the engine that will get this
transition done. Those people most directly impacted by the problems in the region have to be part of the
solution.” The video closed with a quote from a local Appalachian funder: “The greatest gift we have is right
here, right now. If you’re here, you’re the right people. We need to come together as people who want to
live and work and give here, and make this be the community that we need it to be.” These quotes capture
the spirit of why we came together in Berea. Click here to view the video.

This call to action rallied funders and practitioners to use the gathering to think strategically and creatively
about how to align our work and move our vision of Appalachia’s transition forward.




Appalachia Funders Network – 2012 Gathering Proceedings                                                            2
Local Site Visits
Learning and Analysis from the Ground Up

To better understand the roles that entrepreneurship and community capacity play in rural development
efforts, we headed to Estill County, Rockcastle County, and the campus of Berea College to talk with local
entrepreneurs, development practitioners, and young leaders. We heard about the opportunities and
challenges they face in working to improve their communities. Below is a brief description of each site visit.

Estill County: Facilitated by Joe Crawford, Estill Development Alliance; Shane Barton,
University of Kentucky Appalachia Center
Gathering participants met with leaders of the Estill County Local Motive Alliance, a new initiative
working to grow the regional economy. We learned how local economic development efforts in Eastern
Kentucky are shifting from business recruitment to strengthening local business networks. We visited two
long-standing local businesses, Ravenna Greenhouse and Florist and Sharon’s Cosmetics, that have a
combined 110 years of experience. Each business owner shared the history of their business, changes
they’ve made to increase revenue and local sourcing, and the support they need to grow their business over
the long term.

Rockcastle County: Facilitated by Corey Craig, Citizens Bank
Participants learned about Rockcastle County’s community-wide strategic planning process and talked to
many partners who helped carry out and develop this plan. The Rural Transit Enterprises Coordinated
(RTEC) provided a trolley tour to view rural community development projects focused on transportation,
health care, and education. At Rockcastle Regional Hospital, we learned about efforts to attract medical
professionals and efforts to reduce energy costs and carbon emissions by installing solar panels. Next we
visited the Rockcastle County Area Technology Center to learn about their focus on teaching advanced
technical skills to area students. Our last stop was at the Kentucky Music Hall of Fame, where we learned
about efforts to promote tourism and serve as an educational center for the community.

The Next Generation of Leaders in Appalachia: Ada Smith, Appalshop; Ethan Hamblin,
Berea College; Elandria Williams, Highlander Center; Sarah Riley, High Rocks
Participants engaged with the region’s next generation of leaders in a dialogue around ways to support,
grow, and include young leaders in Appalachia’s economic transition. We discussed how the development of
young leadership is critical to transforming rural communities. The young people at this site visit had several
ideas for investing in the next generation of leaders in Central Appalachia, including investing in education,
engaging young leaders in philanthropy, placing young leaders in positions of authority in key organizations
(e.g., boards of directors or advisory boards), supporting organizational and leadership development for
young nonprofit leaders, connecting young people with organizations (e.g., fellowships), and addressing the
challenges that continue to hold down young folks across Appalachia (e.g., substance abuse, teen pregnancy,
obesity, underachieving educational systems). Click here to view slides from this session.



Appalachia Funders Network – 2012 Gathering Proceedings                                                      3
Keynote Presentations
The Role of Entrepreneurship in Appalachia’s Economic Transition

                                           Earl Gohl, Federal Co-Chair, Appalachian
                                           Regional Commission

                                           Earl Gohl drew attention to the “entrepreneurial spirit” of
                                           Appalachian communities and encouraged us to use our best
                                           assets – our people – to strengthen our economy. Gohl
                                           challenged us to strengthen the entrepreneurial ecosystem (the
                                           infrastructure of supportive policies, mentors, financing,
                                           markets, and so on) across the region to ensure that all
                                           entrepreneurs have access to the supports they need. Click here
                                           to view a video of Earl Gohl’s address to the Network.



Erik Pages, President, EntreWorks Consulting
Erik Pages recommended an entrepreneurial development
strategy in Appalachia that moves from helping
entrepreneurs get started (business incubation) to growing
businesses once they are up and running (business
acceleration). “And this can’t be just about keeping it local,”
he proposed. “You need to think about how to take these
great firms in Appalachia and link them to great growth
opportunities located in Appalachia, across the US, and
across the world.” He suggested that our entrepreneurs (and
our support systems for entrepreneurs) need to be more
ambitious, more global in thinking, and more aggressive about
achieving strong growth. Click here to view slides from Erik Pages' presentation.

Pages’ emphasis on accelerating growth was controversial. Many gathering participants disagreed with his
suggestions; however, the conversation was helpful for the Network to begin to clarify its vision of
Appalachia’s economic transition. As one participant commented, “I hope that we can say not only, ‘What
can we do to promote economic growth?” but also, “How can we do that in a way that fosters just and
sustainable communities?’” As participants reacted to Pages’ suggestions, there seemed to be an emerging
consensus that Appalachia’s economic transition go beyond accelerating growth to developing economies
that foster justice, equity and sustainability. Pages’ presentation helped us realize that we need to more
clearly conceptualize the economic transition that we are working to create, and the Network has made
plans to do this over the next year.



Appalachia Funders Network – 2012 Gathering Proceedings                                                      4
Panel Discussions
Supporting Entrepreneurship and Building Community Capacity

Entrepreneurial Supports: Erik Pages, EntreWorks; Corey Craig, Citizens Bank; Regina
Becknell, MACED; Lesa Geiringer, Powdermill Pottery

Panelists referred to Appalachia’s entrepreneurial             Supporting Entrepreneurs: What Works?
assets, highlighting its people, geography, community
leaders, and core organizations. They recognized the      §   Educate on business planning, financing
region’s historical challenges, from limited access to    §   Focus on young leaders
resources and technology to dependence on                 §   Provide one-on-one mentoring
government assistance and widespread substance            §   Transition skilled workers to
abuse. To build upon our assets and overcome the               entrepreneurship
challenges we face, panelists emphasized the              §   Strengthen community connections –
importance of working to create a culture of                   systems, people, and organizations
entrepreneurship in Appalachia that engages and           §   Promote the benefits of local buying
influences people, organizations, and systems.            §   Develop a community wide vision/plan
Panelists suggested several key practices for             §   Foster broad-based leadership
supporting entrepreneurs. Click here to view slides       §   Create flexible kick starter capital
from a presentation. Click here to view the video.        §   Help local bankers see themselves as
                                                               community financial advisers

Community Capacity: Peter Hille, Brushy Fork Institute; Gerry Roll, Foundation for
Appalachian Kentucky; Natasha Watts, Appalshop; Nikki Martin, Center for Participatory
Change
                                                          Community capacity refers to the ability of a
      Building Community Capacity: What Works?            community to plan, implement, and sustain
                                                          economic development efforts. It includes
 §     Foster a broad base of local leadership           individual, organizational, institutional, and
 §     Hire creative, independent young people           governmental capacities. Panelists noted that
 §     Support locally-rooted practitioners              some local areas have a strong sense of
 §     Create opportunities for immigrants               community, engaged young folks, and
 §     Build cross-sector networks                       organizations working on leadership
 §     Make longer term, strategic investments           development, project development, community-
 §     Help nonprofits to think beyond their work        wide planning, and multiple forms of oppression.
 §     Do anti-oppression and multi-lingual work         They shared ideas about what works well for
 §     Focus on assets and strengths                     building community capacity. Click here to view
 §     Collaborate: funders and nonprofits               slides from a presentation. Click here to view
                                                          the video.




Appalachia Funders Network – 2012 Gathering Proceedings                                                  5
Setting Priorities

Priorities: Supporting Entrepreneurship and Building Community Capacity
As part of developing a common analysis of the key levers for advancing the economic transition of Central
Appalachia, gathering participants engaged in a participatory process to identify priorities for accelerating
the startup and growth of entrepreneurship and strengthening community capacity across the region.

Process
Participants worked together in small groups to better
understand how to effectively support entrepreneurs and
build community capacity. We reflected upon what
practitioners see as the “on-the-ground” challenges and
opportunities. We then developed priorities for what we
need to do to support entrepreneurs and strengthen
community capacity. These priorities are summarized
below.

Priorities: Supporting Entrepreneurship

1. Build a culture for entrepreneurship. The first priority for supporting entrepreneurship
focused on working to bring about a cultural shift, a shift in attitude, worldview, or ways of thinking. The
idea is to help create a “can do” attitude, openness to innovation, and a default way of interacting that is
based on collaboration rather than competition. Gathering participants felt that there was particular
opportunity among younger folks, students, and consumers. We thought that student-focused education
efforts and “buy local” campaigns hold promise. In short, building a culture for entrepreneurship means
getting folks in local communities – teachers, students, consumers, entrepreneurs, community-based leaders
– thinking and acting from an entrepreneurial perspective. Only by doing this might we create a community
culture where people dream big and take risks to reach their dreams.

2. Provide supports for entrepreneurs and businesses. The second priority identified by
participants was more concrete and action-oriented than the first. We laid out a menu of education,
assistance, and support for entrepreneurs and existing businesses, which included the following:
    • Provide education and technical assistance for small business planning, operations, finances, and
        management
    • Provide high-quality communications infrastructure for entrepreneurs
    • Provide mentorship programs, peer support, and coaching for entrepreneurs at all stages
    • Target students, young entrepreneurs, and new entrepreneurs with education and support
    • Help entrepreneurs access existing capital, especially in economically distressed communities
    • Make sure all the supports above are locally rooted, hands-on, and available for the long haul


Appalachia Funders Network – 2012 Gathering Proceedings                                                     6
3. Engage in community collaboration, systems change, and policy change.
The third priority identified by participants was to create a system of support for entrepreneurs. Here we
laid out a menu of various ways of working that move beyond a particular entrepreneur, business, lender,
nonprofit, foundation, or community:
     • Strengthen larger systems that support entrepreneurs (e.g., health care, child care, education)
     • Conduct participatory, inclusive assessment and planning efforts to develop cross-sector strategies
     • Learn about and build upon local community strengths, opportunities, challenges, and needs
     • Assess markets for local entrepreneurs (e.g., local, rural-urban, global)
     • Conduct a “leakage analysis” to identify products and services that could be developed locally
     • Use data about local opportunities and challenges to create “aha” experiences for decision-makers
     • Connect county, state, and regional leadership to local economic development efforts
     • Ensure good governance and public sector accountability through public participation
     • Address corruption in local systems and institutions; corruption blocks hope and opportunity
     • Advocate for policy changes that support local entrepreneurs and create demand for local businesses


Priorities: Building Community Capacity

1. Interact with communities in participatory ways. The first priority for building
community capacity focused on working in ways that begin from community-based and community-owned
ideas, programs, and policy initiatives. The idea here is that low-wealth communities best understand the
challenges they face and can generate the most effective solutions. Engaging communities in participatory
ways means creating safe, neutral, facilitated spaces for reflection, planning, and action - spaces where
community members can build trust and relationships, find common ground, and break the paralysis that
long-standing divides can bring about. It means conducting community-wide assessments that map the
assets of our communities and build community improvement efforts on those assets. It means examining
the root causes of the challenges that communities are facing.

2. Develop a diverse pool of leaders and organizations. The second priority focused on
building a diverse pool of community-based and regional leaders and organizations. We laid out a menu of
strategies for supporting leaders and organizations:
    • Support young or emerging leaders who are rooted in local places and committed for the long haul
    • Develop leaders who are ready, who have a leadership spark – whoever is here are the right folks
    • Support community sparkplugs, people who ignite a fire, who bring people together for change
    • Develop broad-based, inclusive community leadership (e.g., diversity in power, varied stakeholders)
    • Support local grassroots organizations, groups of people most affected by Appalachia’s problems
    • Support regional “anchor organizations” that build capacity and have broad impact
    • Provide organizational development support
    • Make long-term investments, particularly in anchor organizations
    • Provide diverse types of grants (e.g., operating, capacity building) to ensure long-term impact
    • Encourage coordinated, strategic efforts among various funders and between funders and grantees


Appalachia Funders Network – 2012 Gathering Proceedings                                                     7
Defining Next Steps

Next Steps: For Individual Grantmakers and for the Network
The second day of the Gathering included a grantmakers-only session to assess the top priorities that
developed from the previous day’s work with practitioners.   

Process
Participating grantmakers worked in small groups to review lists from the previous day and identify ways
that individual grantmakers and the Network can act on our collective analysis.


Next Steps: Individual Grantmakers

1. Develop assessments, measures, and evaluation tools. When we worked to identify
next steps for individual grantmakers, the first priority we identified was to assess models or approaches to
see what’s working in local communities in terms of supporting entrepreneurship and building community
capacity. Based on what is working, we talked about developing evaluation tools that will provide us with
more information about how our work can have deeper impact. Using these tools would also would give us
a baseline for measuring change over the long haul.

2. Develop long-term investment strategies. Another next step focused on developing
grantmaking strategies that take a long-term view, looking and investing beyond a one-year grant cycle.
Long-term investments lead to more strategic interventions and broader collective impact. We discussed the
idea of investing patiently and investing in stages, as interventions are developed over time. We talked about
investing both to catalyze innovation and support proven and effective approaches.

3. Invest in entrepreneurship support
systems and leadership development.
A third next step related to two particular areas of
potentially fruitful investment: systems of support
for entrepreneurs and leadership development. A
system of support of entrepreneurs would provide
entrepreneurs with the support they need to thrive.
When we talked about investing in the leadership of
young people and supporting leadership
development in organizations that focus on policy
and systems change.




Appalachia Funders Network – 2012 Gathering Proceedings                                                      8
Next Steps: Appalachia Funders Network

1. Support regional collaboration and leadership development. Several grantmakers
had ideas about connecting communities across the region to share expertise and lessons learned and engage
in open dialogue and mutual learning. We were particularly drawn to the idea of developing ways of
supporting the next generation of leaders across Appalachia and engaging more young people in
philanthropy.

2. Develop shared evaluation
measures and results. We had some
conversation about the need to develop shared
measurements and a common set of goals or
results. We also talked about the importance of
measuring what really matters. The idea would
be to use these measurement tools to inform
strategies for accelerating the economic
transition and for influencing other grantmakers
by validating and promoting proven strategies.

3. Promote collaboration among funders. We discussed ways to promote collaboration,
including shared strategies, joint funding, co-funding, collaboratively funding regional efforts, and creating a
pool of funds to disburse as a network. Collaboration would allow relatively small funders or nonprofits to
develop successful ideas or approaches that could then be disseminated widely. Great ideas with proven
impact at a relatively local scale could be spread across the region in a strategic, coordinated way.
Collaboration could also result in shared information; we would all “work smarter” and be more confident
about our investments with more information about what works in local communities. Finally, collaboration
among funders can lead to better-informed network strategy, which would make our investments more
effective.

4. Deepen and broaden the Network and its work. We talked about deepening the work of
the Appalachia Funders Network by continuing to convene the Network and its members. This will help to
deepen our understanding of relevant issues; it will also help educate non-members about innovative
funding opportunities in the region. We also talked about broadening the scope of our work together by
exploring the possibility of collaborating with other networks on related economic development activities
and working together to influence policy and systems change related to Appalachia’s economic transition.

5. Develop Network Initiatives. We plan to continue to develop our two existing initiatives, Startup
Appalachia and the Food Systems Working Group. We also plan to develop an action team around the
healthcare sector and to identify intersections among promising sectors (e.g., intersections between local
food systems and healthcare systems).




Appalachia Funders Network – 2012 Gathering Proceedings                                                        9
Moving Forward: Network Initiatives

Moving Our Collective Work Forward: Next Steps for Network Initiatives
In our next session, we focused on two initiatives that have momentum and leadership within the
Appalachia Funders Network: Startup Appalachia and the Food Systems Working Group. Each initiative
has a set of committed leaders, interest from a broader array of Network members, and an emerging focus
for its work.

Startup Appalachia

Startup Appalachia is a proposed framework for aligning the
efforts and funding of grantmakers, businesses,
government agencies, and nonprofits to accelerate the
development of promising sectors and development
projects related to the following areas: (1) Food Systems
and Entrepreneurship, (2) Energy and Entrepreneurship,
and (3) Health Care and Entrepreneurship. Members
shared ideas and strategies for moving the work of
Startup Appalachia into action. In this group, we
discussed the potential for this project to leverage diverse
funding and increase the scale of member-driven
projects. Click here to view an overview of Startup
Appalachia.

Next steps include initiating a Startup Appalachia pilot project in collaboration with Network members, the
Appalachian Regional Commission and USDA-Rural Development.

The Food Systems Working Group

Participants in this group began crafting a vision for how the Network can aid the economic transition of
Appalachia through the development of healthy local food systems. We brainstormed a list of key words
related to this work and drafted a vision statement. We also discussed potential outcomes, such as increased
opportunities for producers, educated consumers, and institutional purchasing from schools, hospitals and
restaurants. Click here to view resources used to help craft the Working Group’s vision statement

Next steps for the Food Systems Working group include refining a vision and impact statement, vetting it
with practitioners and allies, and using it to guide future learning and analysis for the Network and the
Central Appalachia region.




Appalachia Funders Network – 2012 Gathering Proceedings                                                     10
Closing Reflections
The Appalachia Funders Network recognizes
that large scale, lasting change won’t happen as
the result of one grantmaker or one
organization’s work. The relationships we
develop through our annual gatherings are
essential to collaborating to create the changes
that we envision in Central Appalachia. Each
gathering allows us to make progress toward
shared strategies and broader impact than any
one funder or practitioner can achieve alone.

Together with leading practitioners, we went out
in the field to talk with local entrepreneurs and established and emerging leaders in Kentucky to hear
firsthand what support they need to thrive and succeed. We discussed the unique opportunities, assets, and
challenges that exist for entrepreneurs and communities in Appalachia. We considered what’s working and
not working in our approaches. We also learned that we have some work to do to more clearly define the
desired impact of our uniquely Appalachian model of economic development.

Through engaging in a mutual learning process with practitioners, students, emerging leaders, entrepreneurs
and diverse grantmakers, we explored common priorities to support and grow entrepreneurship and
                                        strengthen community capacity to support the economic
                                        transition of our region.

                                          We believe that the work we accomplished during this year’s
                                          gathering was one step in a much longer process of learning and
                                          collaboration among a diverse set of grantmakers and
                                          practitioners. We left the gathering knowing that we have a lot of
                                          hard work ahead of us, but confident in the trust and relationships
                                          we have with one another, encouraged by the common analysis
                                          and vision being created among Network members, and excited to
                                          continue to promote collaboration to create a more sustainable,
                                          inclusive, and just Appalachian economy.




Appalachia Funders Network – 2012 Gathering Proceedings                                                   11
Participating Funders
                                   Appalachian Community Fund: Margo Miller*, Darryl Cannady
                                   Appalachian Regional Commission: Earl Gohl, Ray Daffner,
                                   Sue Moreland
                                   blue moon fund: Stefan Jirka
                                   Cherokee Preservation Foundation: Susan Jenkins, Charlie Myers
                                   Claude Worthington Benedum Foundation: Mary Hunt-Lieving, Kimberly
                                   Tieman
                                   Community Foundation of Western North Carolina: Timothy Richards
                                   Federal Reserve Bank of Cleveland: Bonnie Blankenship
                                   Federal Reserve Bank of Richmond: Jen Giovannitti*
                                   Foundation for Appalachian Kentucky: Gerry Roll*, Robin Gabbard*
                                   Foundation for a Healthy Kentucky: Susan Zepeda*
                                   Heifer USA: Jeffrey Scott*
                                   Kentucky Foundation for Women: Judith Jennings, Rae Strobel
                                   Kentucky Philanthropy Initiative: Joe Clabes
                                   Marguerite Casey Foundation: Cynthia Renfro
                                   Mary Reynolds Babcock Foundation: Sandra Mikush*, Lora Smith,
                                   Dee Davis
                                   One Foundation: Marz Attar, Barbara Wyckoff
                                   Parkersburg Area Community Foundation: Fred Rader
                                   Scioto Foundation: Kim Cutlip, Toni Dengel
                                   The Alleghany Foundation: Mary Fant Donnan
                                   The Ford Foundation: Wayne Fawbush
                                   The Greater Kanawha Valley Foundation: Becky Ceperley, Sheri Ryder
                                   U.S. Environmental Protection Agency: Eddie Fendley
                                   USDA Rural Development: Bobby Goode, State Director, Tennessee, Lisa
                                   Sharp, Rural Development Coordinator, West Virginia, Robert Connelly,
                                   Assistant to the State Director, Tennessee, Robert Lewis, State Director, West
                                   Virginia, Thomas Fern, State Director, Kentucky, Timothy McNeilly, Rural
                                   Development Coordinator, Kentucky, Tony Logan, State Director, Ohio
                                   WV Grantmakers: Paul Daugherty


                                   * 2012 Gathering Planning Team



Appalachia Funders Network – 2012 Gathering Proceedings                                                         12
Participating Practitioners
                                       Appalachian Citizens’ Law Center: Amelia Kirby
                                       Appalshop’s Appalachian Media Institute: Natasha Watts, Ada Smith
                                       Berea College: President Larry Shinn, William Turner, Anna Kate
                                       McWhorter, Kelly Kusumoto, Matt Callo, Natalie Crone, Candace
                                       Mullins, Ethan Hamblin
                                       Brushy Fork Institute: Peter Hille, Donna Morgan
                                       Eastern KY Local-Motive Business Alliance Network: Virginia
                                       Shoemaker
                                       Central Appalachian Network: Pam Curry, Larry Fisher, Marten Jenkins
                                       Center for Economic Development, Entrepreneurship, and
                                       Technology: Ian Mooers
                                       Center for Participatory Change: Becky Brown, Nikki Marin
                                       Charleston Area Alliance: Cullen Naumoff
                                       Citizens Bank: Corey Craig
                                       Clear Creek Festival: Robert Martin
                                       Coalfield Development Corp: Brandon Dennison
                                       Community Farm Alliance: Martin Richards
                                       Emcee and Storyteller: Paula Larke
                                       Endow Kentucky, Dept. for Local Government: Harry Carver
                                       EntreWorks Consulting: Erik Pages
                                       Estill County Judge/Executive: Wallace Taylor
                                       Estill Development Alliance: Joe Crawford
                                       Federation of Appalachian Housing Enterprises, Inc.: Jim King
                                       University of Kentucky School of Human Environmental Sciences:
                                       Deborah Murray
                                      High Rocks Educational Corporation: Sarah Riley
                                      Highlander Research and Education Center: Elandria Williams
                                      Kentuckians for the Commonwealth: Burt Lauderdale
                                      Mountain Association for Community Economic Development:
                                      Justin Maxson, Regina Becknell
                                      Powdermill Pottery: Lesa Gieringer
                                      The JOBS Project, Inc.: Eric Mathis
                                      University of Kentucky Appalachian Center: Dr. Evelyn Knight, Shane
                                      Barton
                                      West Virginia Community Development Hub: Kent Spellman
                                      WV Center on Budget and Policy: Ted Boettner




Appalachia Funders Network – 2012 Gathering Proceedings                                                 13
Pre-Conference Cultural Exchange
Speakers and Performers

           Paula Larke, celebrated storyteller hosted an evening of
     Appalachian cultural celebration and helped integrate arts and culture
                       throughout the entire gathering



       Musicians                                              Visual Artists
     Berea Castoffs                                           Debra Hille
                                                              Marc Reyes
    Kentucky Artisan
    Center at Berea                                           Clear Creek
     Victoria Faoro                                              Festival
                                                             Robert Martin
        Poet                                                 Carol O’Brien
   Makalani Bandele                                           Mitch Barrett
                                                             Moose Morgan
                                                              Robert Rorrer



              Music                             Theater      Poetry




Appalachia Funders Network – 2012 Gathering Proceedings                        14
Gathering Sponsors




Gathering Hosts

We would like to extend a special thank you to the Historic Boone Tavern, Berea College, the Brushy Fork
Institute, New Opportunity School for Women, and the Main Street Cafe for hosting the gathering.




Appalachia Funders Network – 2012 Gathering Proceedings                                              15
About the Appalachia Funders Network
  


The Appalachia Funders Network is a group of public and private grantmakers who envision an
entrepreneurial-based Appalachian economy that provides opportunity for all while sustaining the
environmental and cultural assets of our region. Members of the Network have come together, in this time
of economic, social, political, and environmental transition in Appalachia to:
    § Learn and share information about promising development ideas, projects and strategies,
    § Deepen our collective analysis and understanding of entrepreneurial-based economic development
       issues, challenges, and opportunities within Appalachia,
    § Build trusting and meaningful relationships among Appalachia-focused grant-makers, and
    § Discover new and innovative ways of working together for the purpose of accelerating the
       economic transition of Central Appalachia.

Our work is focused in Central Appalachia, the region we define as the Appalachian counties of Ohio,
Kentucky, Tennessee, Virginia, West Virginia, and North Carolina. We believe that the current convergence
of economic innovation, federal policy initiatives, expanded regional capacity, and regional and national
funder interest offers unprecedented opportunities to:
    § Deepen the impact and expand the scale of promising economic transition efforts,
    § Develop and grow innovative approaches to building and growing wealth within the region, and
    § Leverage existing resources to increase outside investment in Appalachia's economic recovery.

Appalachia Funders Network Steering Committee
Becky Ceperley, The Greater Kanawha Valley Foundation
Ray Daffner, Appalachian Regional Commission
Wayne Fawbush, Ford Foundation
Mary Hunt-Lieving, Claude Worthington Benedum Foundation
Stefan Jirka, blue moon fund
Sandra Mikush, Mary Reynolds Babcock Foundation

Contact us:
Appalachiafundersnetwork@gmail.com
www.appalachiafunders.org

Appalachia Funders Network Coordinator
Rural Support Partners                                            This paper was developed and
Thomas Watson, Executive Director                                 written by Rural Support Partners
775 Haywood Road, Suite K                                       and published with assistance and
Asheville, NC 28806                                              funding from the members of the
Email: thomas@ruralsupportpartners.com
Website: www.ruralsupportpartners.com                              Appalachia Funders Network.




Appalachia Funders Network – 2012 Gathering Proceedings                                                16

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Accelerating Appalachia's Economic Transition

  • 1. Accelerating the Economic Transition of Central Appalachia Promising Sectors. Entrepreneurial Supports. Community Capacity. The Appalachia Funders Network 3rd Annual Gathering Berea, Kentucky March 28 and 29, 2012
  • 2. Executive Summary In March 2012, 84 people representing 56 Appalachia’s Economic Transition organizations came together at the 3rd Annual Gathering of the Appalachia Funders Network For decades, Appalachia has struggled to in Berea, Kentucky. Participants included overcome some of the highest rates of grantmakers, development practitioners, young poverty, unemployment, and chronic health problems in the nation, despite our leaders, and local entrepreneurs. The goal of the abundant natural resources, strong cultural gathering was to develop a set of common heritage, and entrepreneurial spirit. We priorities and actions related to two topics: (1) envision a sustainable regional economy accelerating the startup and growth of that builds on these assets to create multiple entrepreneurs, and (2) strengthening the forms of wealth and promote opportunity capacity of local communities to successfully and equity for all Appalachian individuals, families, and communities. develop, implement, and sustain economic development strategies. The gathering began with an evening of Appalachian culture. We spent an evening reconnecting and enjoying local Appalachian music, dance, poetry, and storytelling. The next morning we began with a welcome from Sandra Mikush, Chair of the Appalachia Funders Network. Sandra shared a video that the Network developed, which set the stage for our work together. We spent the rest of the morning in three site visits, where we talked with local entrepreneurs, practitioners, and young leaders about the opportunities and challenges they face as they work to improve local economies. We reconvened for two presentations at lunch. Both speakers challenged us to use our best assets, our people, to strengthen local economies. In the afternoon, we held two panel conversations, one on how to support rural entrepreneurs and one on how to build community capacity. During our second day, we worked in small groups to develop priorities for growing entrepreneurship and strengthening community capacity. We closed by developing plans for next steps, both as individual organizations and as a network. As grantmakers, we recognize that we cannot make change on our own. It is, after all, local people who will drive the economic transition that we hope to see in our region. At this gathering, we developed some concrete ideas about how funders can work with local people to create an economy where people and communities become more prosperous while protecting the landscapes upon which Appalachian culture and society depend.
  • 3. Contents Context for the 2012 Gathering……………………………………………………………... 1 Opening Session and Welcome: Accelerating the Economic Transition……........... 2 Local Site Visits: Estill County, Rockcastle County, Next Generation Leaders........... 3 Keynote Presentations: The Role of Entrepreneurship in Economic Transition.......... 4 Panel Discussions: Supporting Entrepreneurship, Building Community Capacity…. 5 Setting Priorities: Supporting Entrepreneurship, Building Community Capacity........ 6 Defining Next Steps: For Individual Grantmakers For the Network….......................... 8 Moving Forward: Two Network Initiatives………………………………………………….. 10 Closing Reflections……………………………………………………………………………... 11 Participating Funders………………………………………………………………………….. 12 Participating Practitioners…………………………………………………………………….. 13 Pre-Conference Cultural Exchange Speakers and Performers……………………….. 14 Gathering Sponsors……………………………………………………………………………. 15 About the Appalachia Funders Networks………………………………………………… 16
  • 4. Context for the 2012 Gathering Appalachia Funders Network The Appalachia Funders Network is a group of public and private grantmakers who envision an entrepreneurial-based Appalachian economy that provides opportunity for all, while sustaining the environmental and cultural assets of our region. Our work is focused in Central Appalachia, the region we define as the Appalachian counties of Ohio, Kentucky, Tennessee, Virginia, West Virginia, and North Carolina. As a network, we offer grantmakers the opportunity to develop a shared analysis and collective strategies to address the challenges and opportunities that we see across the region. “At past gatherings, we’ve really looked at why Appalachia’s Network Gatherings: Past and Present transition is important. We also discussed key opportunities, but The Appalachia Funders Network formed in March 2010. Since now it’s time to make this then, we have hosted three annual gatherings, each building on happen and work together to the energy and vision of the previous year’s work and identifying advance this work.” key areas of common interest and potential collaboration. - Sandra Mikush, Chair, Appalachia Funders Network 2010: Appalachia in Transition, Abingdon, VA • Developed an analysis of the forces that have shaped Appalachia • Recognized that the region is in another economic transition • Discussed how we can help move the region towards a more sustainable and equitable economy • Decided to form and develop the Appalachia Funders Network 2011: Strategies for Collaboration, Charleston, WV • Developed analyses of opportunities and challenges in the food, energy, and health sectors • Identified barriers to collaboration among grantmakers interested in the economic transition • Developed concrete strategies to increase collaboration among grantmakers across Central Appalachia 2012: Accelerating the Economic Transition of Central Appalachia, Berea, KY • Explored the entrepreneurial supports and community capacity needed to advance the region’s economy • Created a list of shared priorities for strengthening entrepreneurship and community capacity • Developed concrete ways that individual grantmakers and the Network can move these priorities • Celebrated our Appalachian heritage, culture, and arts This paper seeks to share some of our learning, analysis, priorities, and next steps from this year’s gathering. Appalachia Funders Network – 2012 Gathering Proceedings 1
  • 5. Opening Session and Welcome Accelerating the Economic Transition Sandra Mikush, Chair of the Appalachia Funders Network, challenged us to use the wisdom of everyone in the room to think together about how to accelerate Appalachia’s economic transition. “There are a lot of folks in the room who bring different skills, perspectives, and ways of supporting the work, but it is going to take all of us, sharing what we know and learning what we don’t know, to make this transition a reality.” She framed the next two days as an opportunity to “really dig deep” into understanding the entrepreneurial supports and community capacity that are needed to make a just and sustainable economic transition a reality. Sandra then shared a video that offered a short meditation on what we mean by the Appalachian transition, why it is important, and what it is going to take to move the transition forward. The video opened with a quote from an Appalachian community development practitioner: “People are the engine that will get this transition done. Those people most directly impacted by the problems in the region have to be part of the solution.” The video closed with a quote from a local Appalachian funder: “The greatest gift we have is right here, right now. If you’re here, you’re the right people. We need to come together as people who want to live and work and give here, and make this be the community that we need it to be.” These quotes capture the spirit of why we came together in Berea. Click here to view the video. This call to action rallied funders and practitioners to use the gathering to think strategically and creatively about how to align our work and move our vision of Appalachia’s transition forward. Appalachia Funders Network – 2012 Gathering Proceedings 2
  • 6. Local Site Visits Learning and Analysis from the Ground Up To better understand the roles that entrepreneurship and community capacity play in rural development efforts, we headed to Estill County, Rockcastle County, and the campus of Berea College to talk with local entrepreneurs, development practitioners, and young leaders. We heard about the opportunities and challenges they face in working to improve their communities. Below is a brief description of each site visit. Estill County: Facilitated by Joe Crawford, Estill Development Alliance; Shane Barton, University of Kentucky Appalachia Center Gathering participants met with leaders of the Estill County Local Motive Alliance, a new initiative working to grow the regional economy. We learned how local economic development efforts in Eastern Kentucky are shifting from business recruitment to strengthening local business networks. We visited two long-standing local businesses, Ravenna Greenhouse and Florist and Sharon’s Cosmetics, that have a combined 110 years of experience. Each business owner shared the history of their business, changes they’ve made to increase revenue and local sourcing, and the support they need to grow their business over the long term. Rockcastle County: Facilitated by Corey Craig, Citizens Bank Participants learned about Rockcastle County’s community-wide strategic planning process and talked to many partners who helped carry out and develop this plan. The Rural Transit Enterprises Coordinated (RTEC) provided a trolley tour to view rural community development projects focused on transportation, health care, and education. At Rockcastle Regional Hospital, we learned about efforts to attract medical professionals and efforts to reduce energy costs and carbon emissions by installing solar panels. Next we visited the Rockcastle County Area Technology Center to learn about their focus on teaching advanced technical skills to area students. Our last stop was at the Kentucky Music Hall of Fame, where we learned about efforts to promote tourism and serve as an educational center for the community. The Next Generation of Leaders in Appalachia: Ada Smith, Appalshop; Ethan Hamblin, Berea College; Elandria Williams, Highlander Center; Sarah Riley, High Rocks Participants engaged with the region’s next generation of leaders in a dialogue around ways to support, grow, and include young leaders in Appalachia’s economic transition. We discussed how the development of young leadership is critical to transforming rural communities. The young people at this site visit had several ideas for investing in the next generation of leaders in Central Appalachia, including investing in education, engaging young leaders in philanthropy, placing young leaders in positions of authority in key organizations (e.g., boards of directors or advisory boards), supporting organizational and leadership development for young nonprofit leaders, connecting young people with organizations (e.g., fellowships), and addressing the challenges that continue to hold down young folks across Appalachia (e.g., substance abuse, teen pregnancy, obesity, underachieving educational systems). Click here to view slides from this session. Appalachia Funders Network – 2012 Gathering Proceedings 3
  • 7. Keynote Presentations The Role of Entrepreneurship in Appalachia’s Economic Transition Earl Gohl, Federal Co-Chair, Appalachian Regional Commission Earl Gohl drew attention to the “entrepreneurial spirit” of Appalachian communities and encouraged us to use our best assets – our people – to strengthen our economy. Gohl challenged us to strengthen the entrepreneurial ecosystem (the infrastructure of supportive policies, mentors, financing, markets, and so on) across the region to ensure that all entrepreneurs have access to the supports they need. Click here to view a video of Earl Gohl’s address to the Network. Erik Pages, President, EntreWorks Consulting Erik Pages recommended an entrepreneurial development strategy in Appalachia that moves from helping entrepreneurs get started (business incubation) to growing businesses once they are up and running (business acceleration). “And this can’t be just about keeping it local,” he proposed. “You need to think about how to take these great firms in Appalachia and link them to great growth opportunities located in Appalachia, across the US, and across the world.” He suggested that our entrepreneurs (and our support systems for entrepreneurs) need to be more ambitious, more global in thinking, and more aggressive about achieving strong growth. Click here to view slides from Erik Pages' presentation. Pages’ emphasis on accelerating growth was controversial. Many gathering participants disagreed with his suggestions; however, the conversation was helpful for the Network to begin to clarify its vision of Appalachia’s economic transition. As one participant commented, “I hope that we can say not only, ‘What can we do to promote economic growth?” but also, “How can we do that in a way that fosters just and sustainable communities?’” As participants reacted to Pages’ suggestions, there seemed to be an emerging consensus that Appalachia’s economic transition go beyond accelerating growth to developing economies that foster justice, equity and sustainability. Pages’ presentation helped us realize that we need to more clearly conceptualize the economic transition that we are working to create, and the Network has made plans to do this over the next year. Appalachia Funders Network – 2012 Gathering Proceedings 4
  • 8. Panel Discussions Supporting Entrepreneurship and Building Community Capacity Entrepreneurial Supports: Erik Pages, EntreWorks; Corey Craig, Citizens Bank; Regina Becknell, MACED; Lesa Geiringer, Powdermill Pottery Panelists referred to Appalachia’s entrepreneurial Supporting Entrepreneurs: What Works? assets, highlighting its people, geography, community leaders, and core organizations. They recognized the § Educate on business planning, financing region’s historical challenges, from limited access to § Focus on young leaders resources and technology to dependence on § Provide one-on-one mentoring government assistance and widespread substance § Transition skilled workers to abuse. To build upon our assets and overcome the entrepreneurship challenges we face, panelists emphasized the § Strengthen community connections – importance of working to create a culture of systems, people, and organizations entrepreneurship in Appalachia that engages and § Promote the benefits of local buying influences people, organizations, and systems. § Develop a community wide vision/plan Panelists suggested several key practices for § Foster broad-based leadership supporting entrepreneurs. Click here to view slides § Create flexible kick starter capital from a presentation. Click here to view the video. § Help local bankers see themselves as community financial advisers Community Capacity: Peter Hille, Brushy Fork Institute; Gerry Roll, Foundation for Appalachian Kentucky; Natasha Watts, Appalshop; Nikki Martin, Center for Participatory Change Community capacity refers to the ability of a Building Community Capacity: What Works? community to plan, implement, and sustain economic development efforts. It includes § Foster a broad base of local leadership individual, organizational, institutional, and § Hire creative, independent young people governmental capacities. Panelists noted that § Support locally-rooted practitioners some local areas have a strong sense of § Create opportunities for immigrants community, engaged young folks, and § Build cross-sector networks organizations working on leadership § Make longer term, strategic investments development, project development, community- § Help nonprofits to think beyond their work wide planning, and multiple forms of oppression. § Do anti-oppression and multi-lingual work They shared ideas about what works well for § Focus on assets and strengths building community capacity. Click here to view § Collaborate: funders and nonprofits slides from a presentation. Click here to view the video. Appalachia Funders Network – 2012 Gathering Proceedings 5
  • 9. Setting Priorities Priorities: Supporting Entrepreneurship and Building Community Capacity As part of developing a common analysis of the key levers for advancing the economic transition of Central Appalachia, gathering participants engaged in a participatory process to identify priorities for accelerating the startup and growth of entrepreneurship and strengthening community capacity across the region. Process Participants worked together in small groups to better understand how to effectively support entrepreneurs and build community capacity. We reflected upon what practitioners see as the “on-the-ground” challenges and opportunities. We then developed priorities for what we need to do to support entrepreneurs and strengthen community capacity. These priorities are summarized below. Priorities: Supporting Entrepreneurship 1. Build a culture for entrepreneurship. The first priority for supporting entrepreneurship focused on working to bring about a cultural shift, a shift in attitude, worldview, or ways of thinking. The idea is to help create a “can do” attitude, openness to innovation, and a default way of interacting that is based on collaboration rather than competition. Gathering participants felt that there was particular opportunity among younger folks, students, and consumers. We thought that student-focused education efforts and “buy local” campaigns hold promise. In short, building a culture for entrepreneurship means getting folks in local communities – teachers, students, consumers, entrepreneurs, community-based leaders – thinking and acting from an entrepreneurial perspective. Only by doing this might we create a community culture where people dream big and take risks to reach their dreams. 2. Provide supports for entrepreneurs and businesses. The second priority identified by participants was more concrete and action-oriented than the first. We laid out a menu of education, assistance, and support for entrepreneurs and existing businesses, which included the following: • Provide education and technical assistance for small business planning, operations, finances, and management • Provide high-quality communications infrastructure for entrepreneurs • Provide mentorship programs, peer support, and coaching for entrepreneurs at all stages • Target students, young entrepreneurs, and new entrepreneurs with education and support • Help entrepreneurs access existing capital, especially in economically distressed communities • Make sure all the supports above are locally rooted, hands-on, and available for the long haul Appalachia Funders Network – 2012 Gathering Proceedings 6
  • 10. 3. Engage in community collaboration, systems change, and policy change. The third priority identified by participants was to create a system of support for entrepreneurs. Here we laid out a menu of various ways of working that move beyond a particular entrepreneur, business, lender, nonprofit, foundation, or community: • Strengthen larger systems that support entrepreneurs (e.g., health care, child care, education) • Conduct participatory, inclusive assessment and planning efforts to develop cross-sector strategies • Learn about and build upon local community strengths, opportunities, challenges, and needs • Assess markets for local entrepreneurs (e.g., local, rural-urban, global) • Conduct a “leakage analysis” to identify products and services that could be developed locally • Use data about local opportunities and challenges to create “aha” experiences for decision-makers • Connect county, state, and regional leadership to local economic development efforts • Ensure good governance and public sector accountability through public participation • Address corruption in local systems and institutions; corruption blocks hope and opportunity • Advocate for policy changes that support local entrepreneurs and create demand for local businesses Priorities: Building Community Capacity 1. Interact with communities in participatory ways. The first priority for building community capacity focused on working in ways that begin from community-based and community-owned ideas, programs, and policy initiatives. The idea here is that low-wealth communities best understand the challenges they face and can generate the most effective solutions. Engaging communities in participatory ways means creating safe, neutral, facilitated spaces for reflection, planning, and action - spaces where community members can build trust and relationships, find common ground, and break the paralysis that long-standing divides can bring about. It means conducting community-wide assessments that map the assets of our communities and build community improvement efforts on those assets. It means examining the root causes of the challenges that communities are facing. 2. Develop a diverse pool of leaders and organizations. The second priority focused on building a diverse pool of community-based and regional leaders and organizations. We laid out a menu of strategies for supporting leaders and organizations: • Support young or emerging leaders who are rooted in local places and committed for the long haul • Develop leaders who are ready, who have a leadership spark – whoever is here are the right folks • Support community sparkplugs, people who ignite a fire, who bring people together for change • Develop broad-based, inclusive community leadership (e.g., diversity in power, varied stakeholders) • Support local grassroots organizations, groups of people most affected by Appalachia’s problems • Support regional “anchor organizations” that build capacity and have broad impact • Provide organizational development support • Make long-term investments, particularly in anchor organizations • Provide diverse types of grants (e.g., operating, capacity building) to ensure long-term impact • Encourage coordinated, strategic efforts among various funders and between funders and grantees Appalachia Funders Network – 2012 Gathering Proceedings 7
  • 11. Defining Next Steps Next Steps: For Individual Grantmakers and for the Network The second day of the Gathering included a grantmakers-only session to assess the top priorities that developed from the previous day’s work with practitioners.   Process Participating grantmakers worked in small groups to review lists from the previous day and identify ways that individual grantmakers and the Network can act on our collective analysis. Next Steps: Individual Grantmakers 1. Develop assessments, measures, and evaluation tools. When we worked to identify next steps for individual grantmakers, the first priority we identified was to assess models or approaches to see what’s working in local communities in terms of supporting entrepreneurship and building community capacity. Based on what is working, we talked about developing evaluation tools that will provide us with more information about how our work can have deeper impact. Using these tools would also would give us a baseline for measuring change over the long haul. 2. Develop long-term investment strategies. Another next step focused on developing grantmaking strategies that take a long-term view, looking and investing beyond a one-year grant cycle. Long-term investments lead to more strategic interventions and broader collective impact. We discussed the idea of investing patiently and investing in stages, as interventions are developed over time. We talked about investing both to catalyze innovation and support proven and effective approaches. 3. Invest in entrepreneurship support systems and leadership development. A third next step related to two particular areas of potentially fruitful investment: systems of support for entrepreneurs and leadership development. A system of support of entrepreneurs would provide entrepreneurs with the support they need to thrive. When we talked about investing in the leadership of young people and supporting leadership development in organizations that focus on policy and systems change. Appalachia Funders Network – 2012 Gathering Proceedings 8
  • 12. Next Steps: Appalachia Funders Network 1. Support regional collaboration and leadership development. Several grantmakers had ideas about connecting communities across the region to share expertise and lessons learned and engage in open dialogue and mutual learning. We were particularly drawn to the idea of developing ways of supporting the next generation of leaders across Appalachia and engaging more young people in philanthropy. 2. Develop shared evaluation measures and results. We had some conversation about the need to develop shared measurements and a common set of goals or results. We also talked about the importance of measuring what really matters. The idea would be to use these measurement tools to inform strategies for accelerating the economic transition and for influencing other grantmakers by validating and promoting proven strategies. 3. Promote collaboration among funders. We discussed ways to promote collaboration, including shared strategies, joint funding, co-funding, collaboratively funding regional efforts, and creating a pool of funds to disburse as a network. Collaboration would allow relatively small funders or nonprofits to develop successful ideas or approaches that could then be disseminated widely. Great ideas with proven impact at a relatively local scale could be spread across the region in a strategic, coordinated way. Collaboration could also result in shared information; we would all “work smarter” and be more confident about our investments with more information about what works in local communities. Finally, collaboration among funders can lead to better-informed network strategy, which would make our investments more effective. 4. Deepen and broaden the Network and its work. We talked about deepening the work of the Appalachia Funders Network by continuing to convene the Network and its members. This will help to deepen our understanding of relevant issues; it will also help educate non-members about innovative funding opportunities in the region. We also talked about broadening the scope of our work together by exploring the possibility of collaborating with other networks on related economic development activities and working together to influence policy and systems change related to Appalachia’s economic transition. 5. Develop Network Initiatives. We plan to continue to develop our two existing initiatives, Startup Appalachia and the Food Systems Working Group. We also plan to develop an action team around the healthcare sector and to identify intersections among promising sectors (e.g., intersections between local food systems and healthcare systems). Appalachia Funders Network – 2012 Gathering Proceedings 9
  • 13. Moving Forward: Network Initiatives Moving Our Collective Work Forward: Next Steps for Network Initiatives In our next session, we focused on two initiatives that have momentum and leadership within the Appalachia Funders Network: Startup Appalachia and the Food Systems Working Group. Each initiative has a set of committed leaders, interest from a broader array of Network members, and an emerging focus for its work. Startup Appalachia Startup Appalachia is a proposed framework for aligning the efforts and funding of grantmakers, businesses, government agencies, and nonprofits to accelerate the development of promising sectors and development projects related to the following areas: (1) Food Systems and Entrepreneurship, (2) Energy and Entrepreneurship, and (3) Health Care and Entrepreneurship. Members shared ideas and strategies for moving the work of Startup Appalachia into action. In this group, we discussed the potential for this project to leverage diverse funding and increase the scale of member-driven projects. Click here to view an overview of Startup Appalachia. Next steps include initiating a Startup Appalachia pilot project in collaboration with Network members, the Appalachian Regional Commission and USDA-Rural Development. The Food Systems Working Group Participants in this group began crafting a vision for how the Network can aid the economic transition of Appalachia through the development of healthy local food systems. We brainstormed a list of key words related to this work and drafted a vision statement. We also discussed potential outcomes, such as increased opportunities for producers, educated consumers, and institutional purchasing from schools, hospitals and restaurants. Click here to view resources used to help craft the Working Group’s vision statement Next steps for the Food Systems Working group include refining a vision and impact statement, vetting it with practitioners and allies, and using it to guide future learning and analysis for the Network and the Central Appalachia region. Appalachia Funders Network – 2012 Gathering Proceedings 10
  • 14. Closing Reflections The Appalachia Funders Network recognizes that large scale, lasting change won’t happen as the result of one grantmaker or one organization’s work. The relationships we develop through our annual gatherings are essential to collaborating to create the changes that we envision in Central Appalachia. Each gathering allows us to make progress toward shared strategies and broader impact than any one funder or practitioner can achieve alone. Together with leading practitioners, we went out in the field to talk with local entrepreneurs and established and emerging leaders in Kentucky to hear firsthand what support they need to thrive and succeed. We discussed the unique opportunities, assets, and challenges that exist for entrepreneurs and communities in Appalachia. We considered what’s working and not working in our approaches. We also learned that we have some work to do to more clearly define the desired impact of our uniquely Appalachian model of economic development. Through engaging in a mutual learning process with practitioners, students, emerging leaders, entrepreneurs and diverse grantmakers, we explored common priorities to support and grow entrepreneurship and strengthen community capacity to support the economic transition of our region. We believe that the work we accomplished during this year’s gathering was one step in a much longer process of learning and collaboration among a diverse set of grantmakers and practitioners. We left the gathering knowing that we have a lot of hard work ahead of us, but confident in the trust and relationships we have with one another, encouraged by the common analysis and vision being created among Network members, and excited to continue to promote collaboration to create a more sustainable, inclusive, and just Appalachian economy. Appalachia Funders Network – 2012 Gathering Proceedings 11
  • 15. Participating Funders Appalachian Community Fund: Margo Miller*, Darryl Cannady Appalachian Regional Commission: Earl Gohl, Ray Daffner, Sue Moreland blue moon fund: Stefan Jirka Cherokee Preservation Foundation: Susan Jenkins, Charlie Myers Claude Worthington Benedum Foundation: Mary Hunt-Lieving, Kimberly Tieman Community Foundation of Western North Carolina: Timothy Richards Federal Reserve Bank of Cleveland: Bonnie Blankenship Federal Reserve Bank of Richmond: Jen Giovannitti* Foundation for Appalachian Kentucky: Gerry Roll*, Robin Gabbard* Foundation for a Healthy Kentucky: Susan Zepeda* Heifer USA: Jeffrey Scott* Kentucky Foundation for Women: Judith Jennings, Rae Strobel Kentucky Philanthropy Initiative: Joe Clabes Marguerite Casey Foundation: Cynthia Renfro Mary Reynolds Babcock Foundation: Sandra Mikush*, Lora Smith, Dee Davis One Foundation: Marz Attar, Barbara Wyckoff Parkersburg Area Community Foundation: Fred Rader Scioto Foundation: Kim Cutlip, Toni Dengel The Alleghany Foundation: Mary Fant Donnan The Ford Foundation: Wayne Fawbush The Greater Kanawha Valley Foundation: Becky Ceperley, Sheri Ryder U.S. Environmental Protection Agency: Eddie Fendley USDA Rural Development: Bobby Goode, State Director, Tennessee, Lisa Sharp, Rural Development Coordinator, West Virginia, Robert Connelly, Assistant to the State Director, Tennessee, Robert Lewis, State Director, West Virginia, Thomas Fern, State Director, Kentucky, Timothy McNeilly, Rural Development Coordinator, Kentucky, Tony Logan, State Director, Ohio WV Grantmakers: Paul Daugherty * 2012 Gathering Planning Team Appalachia Funders Network – 2012 Gathering Proceedings 12
  • 16. Participating Practitioners Appalachian Citizens’ Law Center: Amelia Kirby Appalshop’s Appalachian Media Institute: Natasha Watts, Ada Smith Berea College: President Larry Shinn, William Turner, Anna Kate McWhorter, Kelly Kusumoto, Matt Callo, Natalie Crone, Candace Mullins, Ethan Hamblin Brushy Fork Institute: Peter Hille, Donna Morgan Eastern KY Local-Motive Business Alliance Network: Virginia Shoemaker Central Appalachian Network: Pam Curry, Larry Fisher, Marten Jenkins Center for Economic Development, Entrepreneurship, and Technology: Ian Mooers Center for Participatory Change: Becky Brown, Nikki Marin Charleston Area Alliance: Cullen Naumoff Citizens Bank: Corey Craig Clear Creek Festival: Robert Martin Coalfield Development Corp: Brandon Dennison Community Farm Alliance: Martin Richards Emcee and Storyteller: Paula Larke Endow Kentucky, Dept. for Local Government: Harry Carver EntreWorks Consulting: Erik Pages Estill County Judge/Executive: Wallace Taylor Estill Development Alliance: Joe Crawford Federation of Appalachian Housing Enterprises, Inc.: Jim King University of Kentucky School of Human Environmental Sciences: Deborah Murray High Rocks Educational Corporation: Sarah Riley Highlander Research and Education Center: Elandria Williams Kentuckians for the Commonwealth: Burt Lauderdale Mountain Association for Community Economic Development: Justin Maxson, Regina Becknell Powdermill Pottery: Lesa Gieringer The JOBS Project, Inc.: Eric Mathis University of Kentucky Appalachian Center: Dr. Evelyn Knight, Shane Barton West Virginia Community Development Hub: Kent Spellman WV Center on Budget and Policy: Ted Boettner Appalachia Funders Network – 2012 Gathering Proceedings 13
  • 17. Pre-Conference Cultural Exchange Speakers and Performers Paula Larke, celebrated storyteller hosted an evening of Appalachian cultural celebration and helped integrate arts and culture throughout the entire gathering Musicians Visual Artists Berea Castoffs Debra Hille Marc Reyes Kentucky Artisan Center at Berea Clear Creek Victoria Faoro Festival Robert Martin Poet Carol O’Brien Makalani Bandele Mitch Barrett Moose Morgan Robert Rorrer Music Theater Poetry Appalachia Funders Network – 2012 Gathering Proceedings 14
  • 18. Gathering Sponsors Gathering Hosts We would like to extend a special thank you to the Historic Boone Tavern, Berea College, the Brushy Fork Institute, New Opportunity School for Women, and the Main Street Cafe for hosting the gathering. Appalachia Funders Network – 2012 Gathering Proceedings 15
  • 19. About the Appalachia Funders Network   The Appalachia Funders Network is a group of public and private grantmakers who envision an entrepreneurial-based Appalachian economy that provides opportunity for all while sustaining the environmental and cultural assets of our region. Members of the Network have come together, in this time of economic, social, political, and environmental transition in Appalachia to: § Learn and share information about promising development ideas, projects and strategies, § Deepen our collective analysis and understanding of entrepreneurial-based economic development issues, challenges, and opportunities within Appalachia, § Build trusting and meaningful relationships among Appalachia-focused grant-makers, and § Discover new and innovative ways of working together for the purpose of accelerating the economic transition of Central Appalachia. Our work is focused in Central Appalachia, the region we define as the Appalachian counties of Ohio, Kentucky, Tennessee, Virginia, West Virginia, and North Carolina. We believe that the current convergence of economic innovation, federal policy initiatives, expanded regional capacity, and regional and national funder interest offers unprecedented opportunities to: § Deepen the impact and expand the scale of promising economic transition efforts, § Develop and grow innovative approaches to building and growing wealth within the region, and § Leverage existing resources to increase outside investment in Appalachia's economic recovery. Appalachia Funders Network Steering Committee Becky Ceperley, The Greater Kanawha Valley Foundation Ray Daffner, Appalachian Regional Commission Wayne Fawbush, Ford Foundation Mary Hunt-Lieving, Claude Worthington Benedum Foundation Stefan Jirka, blue moon fund Sandra Mikush, Mary Reynolds Babcock Foundation Contact us: Appalachiafundersnetwork@gmail.com www.appalachiafunders.org Appalachia Funders Network Coordinator Rural Support Partners This paper was developed and Thomas Watson, Executive Director written by Rural Support Partners 775 Haywood Road, Suite K and published with assistance and Asheville, NC 28806 funding from the members of the Email: thomas@ruralsupportpartners.com Website: www.ruralsupportpartners.com Appalachia Funders Network. Appalachia Funders Network – 2012 Gathering Proceedings 16