Benefits and Challenges of Different Funding Models

Funding Source

Benefits Grant funding • Grants can serve as catalytic funding, while finding more sustainable options. • There is potential for fast turnaround in funding, depending on the grant funder.

• Applications and grants often can be submitted and managed by existing park and recreation staff. • There are often multiple philanthropic funders that support adult physical activity classes. • Grant funding restricts the use of money.

Depending on the funder, this can create a challenge to cover the full costs of the classes.

• Funding depends on grant cycles. Reapplying each grant cycle does not offer sustainable financing for the long term or allow longterm planning. • Depending on the funder, grants can be a small amount of money. • Grant management can be time consuming and take staff away from programmatic work.

Reimbursement from health insurers

• Reimbursement from health insurers brings in non-traditional funding revenue and can diversify the program’s budget. • Reimbursements from health insurers can provide park and recreation agencies additional flexible revenue. • Once contracts are established, it can be a sustainable source of funding for classes.

• If managed by an external organization, processing insurance claims takes minimal time.

• It can take a long time to negotiate contracts with a health insurer.

• Working with health insurers requires specialized training and resources to manage claims and meet compliance requirements. • Contracting and processing claims can be administratively burdensome for the agency overseeing the contract. • Participants in classes will have different health insurers and park and recreation agencies will need to contract with all of them to receive reimbursement.

• It might not be beneficial to contract one-onone, depending on the reimbursement rate and the number of clients.

Challenges