A Bank of America decision that’s worthy of praise: $200,000 grant to Cocoon House

It's no secret that many nonprofit agencies are hurting. Donations and other support are down as the economy limps along.

It's also no secret that big banks aren't high on popularity lists. Vilified since getting federal bailout money and paying fat bonuses, big banks are now targets of the Occupy movement.

Here's news -- good news -- you aren't likely to hear at an Occupy rally:

Cocoon House, an organization that has helped homeless and at-risk teens in Snohomish County for 20 years, recently won a $200,000 grant from Bank of America.

Two charitable organizations in each of Bank of America's 45 market areas nationwide were chosen to receive Neighborhood Builders grants. Since 2004, about 600 organizations have been helped by the bank's Neighborhood Builders Program. Grants include $100,000 annually for two years, plus valuable leadership training for the agency's staff.

"It is $200,000 for each of the nonprofits -- unrestricted funds. That's fairly rare in the philanthropy world," said Bob Peters, Bank of America's Washington state president.

The grant was announced at a recent event for Cocoon House donors, and also at a breakfast Tuesday in Seattle, said Heidi Scott, development and community relations manager for Cocoon House. A Seattle organization, Refugee Women's Alliance (ReWA), won the other grant for the Western Washington region.

Cocoon House, which has an annual budget of about $2.5 million, operates teen housing and an emergency shelter in Everett; an emergency shelter in Arlington; and a transitional shelter for young adults in Monroe. The Everett-based agency also has a drop-in center on Broadway in Everett, and seminars for parents and teens.

Tran Frank, Cocoon House grants manager, said the agency housed more than 300 teens last year, served about 1,000 young people on the streets, and helped hundreds of parents and teens in prevention programs. Cocoon has about 60 employees, about half of them part-time.

Frank said it was the agency's second try for the Bank of America funds.

"Cocoon House went through really substantial growth over the last 10 years. Our growth was in response to need, not because we got more money," he said.

Frank said that since the recession began, Cocoon House has had to subsidize programs with its financial reserves. "In housing, we need to maintain reserves. If something happens you don't want to be kicking people out in the street," he said.

An upgrade of the agency's computers is one project the grant will fund, Frank said. With an old computer system, data has been difficult to track and server crashes have wasted staff time. "Our need to be able to report data is extensive. We have 26 government contracts," he said.

Peters said the selection process includes both Bank of America and community leaders. Housing Hope, a Snohomish County nonprofit agency that provides low-income housing, is a previous Neighborhood Builders recipient.

"Demand is increasing," Peters said.

The bank executive said leadership training is a valuable part of the award. Leaders of the nonprofit groups and staff identified as future leaders attend workshops. The training covers "succession planning, financial management during difficult times, and transformation leadership," Peters said. He also said it's important for an agency's board to include people skilled in business.

Business -- it's not a dirty word.

We recently learned that Deaconess Children's Services, after more than a century of helping families in Snohomish County, was closing because of a lack of financial support and reserves. Cocoon House and other nonprofit organizations can only benefit when experts share financial acumen.

"It is in the best interest of a bank to have a really healthy community. To ignore a segment of the population is to ignore a possible client," Frank said.

Frank said he knows several people involved in the Occupy movement. "I don't think the main thing is let's get rid of business. There's a great amount of displeasure in what corporations are doing in terms of ignoring people," Frank said. "When B of A makes billions in profits and then they tag on a $5 charge to use your card -- what, you want more?"

Bank of America announced this week that it was dropping a plan to charge customers the $5 monthly fee for use of its debit cards.

Frank does see a profit motive in Bank of America giving money to an agency that helps homeless teens -- and he's fine with that.

"They want to improve communities so their business grows. It's an investment," Frank said. "I think the Occupy people wouldn't say that's bad."

Julie Muhlstein: 425-339-3460; muhlstein@heraldnet.com.