These funding mechanisms had evolved separately over time, each with its own unique eligibility criteria, applications, reporting requirements, and policies. Many non-profit organizations applied for funding from multiple sources and had to comply with competing or duplicative administrative requirements. The Board of Supervisors, staff, and citizens had no reliable way to track duplication or gaps in service, or to evaluate whether the County's overall support of non-profit service delivery was in line with the community's needs and priorities. Although aspects of this problem had been identified before, it took a crisis to catalyze systemic change. Facing a multimillion dollar shortfall for the 1997 fiscal year, Fairfax County was compelled to reevaluate all of its discretionary spending. In addition to deep cuts in County human services programs, non-profit agencies faced losing their contributions as well as many long-standing service contracts.

With a great deal of community support, the County's Board of Supervisors decided to maintain a reduced level of funding for non-profit service delivery in 1997 and to consolidate the contributory agency funds and several other funding streams into a Community Funding Pool to be awarded on a competitive basis beginning in the 1998 fiscal year. In the first year, the Funding Pool contained $4,271,553 from the County's General Fund. Of that amount, $589,079 was available from state and federal Community Services Block Grant funds and the remainder from the County's General Fund. To guide the process, the Board appointed a citizen group and directed County Human Services staff to support the work.