Achieving remarkable outcomes with homeless families WELCOME SLIDE WITHOUT GOVERNMENT FUNDING

Presenters: Christopher Fay Executive Director Ken Bradford Development Director CHRIS and KEN

Presentation Outline Setting the stage Homestretch in 2009 Homestretch background Homestretch in 2009 Emerging threats – Rapid Rehousing -- Economic downturn Our reaction to funding shifts Trying to make it work Gaining sustainable financial independence The move away from government funding Homestretch today Achieving remarkable outcomes KEN

Setting the stage CHRIS HOMESTRETCH BACKGROUND

Homestretch Mission The mission of Homestretch is to empower homeless parents with children under the age of 18 in Virginia to attain permanent housing and self-sufficiency by giving them the skills, knowledge and hope they need to become productive participants in the community. CHRIS

Homestretch background Founded in 1990 Located in Falls Church, VA Serves entire Fairfax County Executive Director: Chris Fay (since 2006) Owns 36 housing units, leases around 20 Serves 50-60 homeless families at a time Staff of about 20 people: social workers, support, fundraising CHRIS

Homestretch background Virtually all our services are provided at our offices Homestretch client families are referred from local shelters All families are ineligible for Rapid Rehousing due to high barriers 65% of families are victims of domestic violence or trafficking 95% of families are headed by single mom Average age of a person in Homestretch is 8 $2.7 million budget CHRIS

The Homestretch Model Categorized as a Transitional Housing program More appropriately, we are a Transformational Housing program We provide subsidized housing for two+ years This is the foundation upon which all the other work takes place. We believe high expectations produce outstanding achievements Compliance with some of our services is mandatory CHRIS

The Homestretch Model Accountability Self Sufficiency Income Growth Debt Reduction Income Growth Self Sufficiency CHRIS

Homestretch in 2009 KEN SERIOUS EMERGING THREATS

Homestretch in 2009 Total income: $2,548,481 65 housing units 60% government funding 40% contributions 65 housing units 25 full-time staff / 4 part-time The nation remains in a recession Charitable giving fell 3.6%, the steepest decline since 1956 Homestretch had no funding reserves KEN Data from Homestrech 990s and Giving USA 2010 report

Homestretch outcomes in 2009 39 families exited the program, of which 31 completed it successfully (79%) Total client debt payoff was $64,000 Total client savings was $158,000 KEN

Shifting government funding priorities American Recovery and Reinvestment Act of 2009 $23.75 million to pilot rapid re-housing for homeless families in communities across the country HUD awarded funding to 23 communities to implement demonstration projects to expand a promising new intervention for addressing homelessness among families Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009 Established federal goal of ensuring that individuals and families that become homeless return to permanent housing within 30 days KEN Rapid Re-Housing for Homeless Families Demonstration Programs Evaluation Report, April 2016

Shifting government funding priorities “Since the time that this demonstration was initiated in 2009, communities have moved swiftly to implement rapid re-housing programs and to refine the model to meet the needs of the homeless households presenting for assistance” -- Evaluation report for the demonstration program (April 2016) Homestretch faced a critical decision: Should we continue pursuing federal funding? KEN Rapid Re-Housing for Homeless Families Demonstration Programs Evaluation Report, April 2016

Our reaction to the funding shift CHRIS TRYING TO MAKE IT WORK

Homestretch’s initial reaction Created a hybrid… Rapid Re-housing/Homestretch model In our rented properties we had clients Transition in Place Funded by: State grants of $400K DOJ grants of about $500K Encouraged clients to utilize services Maintained our service model for clients in our owned properties Required clients to utilize services CHRIS Our goal was to try to make it work

Homestretch’s hybrid approach Homestretch decided to move families on based on their readiness rather than an arbitrary time frame Rapidly Re-housed clients were usually not ready in 3-6 months Only about 10% were prepared to take over rent County and State grant administrators were concerned that we were not moving families on quickly enough Clients talk to one another… Requirements were mandatory for some and optional for others CHRIS

We saw the direction HUD was going Should we go the same direction? Our plan forward: Identify the risks and benefits of the options before us: We could embrace rapid re-housing --OR-- We could keep our service model Decide which direction we wanted to go and why Engage assistance in developing long term objectives and a strategic plan to achieve them CHRIS

Strategic Planning In 2010 Homestretch engaged Compass to guide us through a 2-year strategic planning process. Compass provides pro bono consulting services to nonprofits whose work benefits either the Greater Washington, DC, Greater Philadelphia, or Chicago community. Compass recruits, trains and supports teams of volunteers, mainly MBAs from top business schools, who provide the consulting services. Strong board and staff buy-in was critical CHRIS Planning process: Where we are now (including SWOT), Where we want to be, Path to get there Discover Dream Design Document Deliver

Compass Strategic Planning Compass identified the challenges we faced: Strategic Objectives we identified Financial Crisis and Weak Recovery County’s Homelessness Metrics Emergence of Rapid Re-Housing Shifting Client Demographics Maintain a Successful Service Model Produce Successful Graduates Gain Sustainable Financial Independence Improve Visibility and Recognition of Homestretch and Its Service Model CHRIS

The key decision we made at this time: MAINTAIN A SUCCESSFUL SERVICE MODEL CHRIS

The reason: A successful service model provides the best possible outcomes for the families in our care Intensive case management On-site employment services Scholarships training Transportation assistance On site child care GED tutoring Computers and internet access for families Substance abuse testing/referral Assistance with medical needs Domestic violence support and education Pro bono legal services Parenting classes Money management classes CHRIS

A successful service model also makes organizational success possible Successful Graduates Improved Visibility Fundraising CHRIS

Gain Sustainable Financial Independence KEN THE MOVE AWAY FROM GOVERNMENT FUNDING

Strategies to achieve financial independence Strategic plan financial initiatives Strengthen Homestretch’s funding base in 4 key areas Corporate donors Foundations Religious organizations Individual donors Reduce restricted government funding to less than 10% of operating expenses Other initiatives Refinance our owned properties Reduce expenses Convert some properties to rentals to generate income KEN

Impact of the other initiatives Refinance owned properties – savings of $1,000,000 over 10 years Reduce expenses – deferred maintenance, etc. Shed some rental properties and converted some owned properties to rentals to generate income. Went from 75 families served at a time to about 50 families Reduced staff, primarily through attrition Went from 29 staff to 20 CHRIS These adjustments were not accomplished immediately. They occurred over time

Strategic plan financial initiatives Corporate donors Foundations Religious organizations Individual Donors Restricted government funding Fundraising Government Grants KEN To maintain our current service model

What we achieved in funding KEN

First, we’ll look at what we did. Then we’ll discuss how we did it. KEN

Homestretch 2009 - 2017 Government Funding Beginning in 2010 we started weaning ourselves off government funding by not renewing contracts and by letting grants lapse. KEN

Homestretch 2009 – 2017 Nongovernment Funding At the same time, we began an ever more aggressive fundraising effort to offset the reduced government money. KEN

2009-2017 Homestretch Funding KEN

How we offset the reduced government funding KEN

Overall fundraising results, 2009 - 2017 2009 Donor Gifts: 571 2017 Donor Gifts 3,044 KEN

Overall fundraising results, 2009 - 2017 2009 Gift Amount: $863,185 2017 Gift Amount $2,160,808 KEN

Donor growth by category Number of gifts YEAR INDIVIDUALS FAITH COMMUNITIES BUSINESSES/ORGS 2009 452 25 91 2017 2,382 38 271 Amount of donations YEAR INDIVIDUALS FAITH COMMUNITIES BUSINESSES/ORGS 2009 $285,167 $168,475 $404,692 2017 $873,314 $792,615 $488,444 KEN

Keys to Homestretch income growth Told our story better Independent outcomes studies validated results Focused on Key Messages (Taproot service grant) Focused on client testimonials combined with data (head and heart) Sought visibility Nominated for and received awards Washington Post Helping Hand Recruited board member with media expertise KEN

Keys to Homestretch income growth Concentrated on a single fundraising event – Benefit Breakfast Moved away from continental breakfast to a hot breakfast One-hour event, tightly scripted Grew from 200 to over 550 attendees Focused on client stories (6-8 stories) Sought to break as many stereotypes as possible Compelling, specific ask ($1,000) Accept one-year pledges KEN YEAR GIFTS AMOUNT OF GIFTS SPONSORSHIPS 2013 86 $52,150 $48,550 2017 317 $171,600 $50,000

Keys to Homestretch income growth Nurtured close relationship with key major donors Concentrated on reducing donor attrition Tapped into faith community more intentionally Sacred Homes program Developed Partnerstretch to appeal to businesses Volunteer opportunities along with financial contributions Made service model improvements that appealed to major donors Kidstretch Clinic KEN

Homestretch today CHRIS ACHIEVING REMARKABLE OUTCOMES

Homestretch Outcomes 90% of families who enter Homestretch complete the program by securing permanent housing they can afford Monthly income upon entry: $950 Monthly income upon graduation: $2,354 CHRIS Debt upon entry: $4,814 Savings upon graduation: $5,989

Homestretch Outcomes Graduates include: registered nurses licensed practical nurses pharmacy technicians dental hygienists/assistants accountants real estate agent grocery store manager retail store manager child care specialists social worker bus driver cosmetologists pastor teacher economic analyst gynecologist restaurant owners loan officer CHRIS

Homestretch Outcomes 95% Three independent studies by graduate students at George Washington University and George Mason University over the last several years show that 95% of Homestretch graduates are working and living in their own homes 2-5 years after leaving Homestretch. CHRIS

What We Learned CHRIS

Lessons Learned Always have funds in reserve Experts recommend at least 6 months of your annual budget be held in reserves Do not have all your funding “eggs” in one basket Diversify funding streams as much as possible Even government funds can dry up in the twinkling of an eye if policy changes Or you end up having to change your program in ways you don’t believe in Design your programs based on a reasonable and proven theory of change Ultimately, we are responsible for what we do (even if it is because some funder requires it) Our decisions impact real lives CHRIS

Christopher Fay Executive Director cfay@homestretchva.org Ken Bradford Development Director kbradford@homestretchva.org Q & A slide