1. Achieving remarkable outcomes with homeless families
WELCOME SLIDE
WITHOUT GOVERNMENT FUNDING

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

3. 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

4. Setting the stage
CHRIS
HOMESTRETCH BACKGROUND

5. 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

6. 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 homeless families at a time
Staff of about 20 people: social workers, support, fundraising
CHRIS

7. 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

8. 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

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

10. Homestretch in 2009
KEN
SERIOUS EMERGING THREATS

11. 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

12. 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

13. 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

14. 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

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

16. 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

17. 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

18. 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

19. 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

20. 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

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

22. 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

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

24. Gain Sustainable Financial Independence
KEN
THE MOVE AWAY FROM GOVERNMENT FUNDING

25. 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

26. 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

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

28. What we achieved in funding
KEN

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

30. 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

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

32. Homestretch Funding
KEN

33. How we offset the reduced government funding
KEN

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

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

36. 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

37. 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

38. 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

39. 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

40. Homestretch today
CHRIS
ACHIEVING REMARKABLE OUTCOMES

41. 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

42. 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

43. 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

44. What We Learned
CHRIS

45. 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

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