Making A Difference in Peabody Foundation Inc. (MADIP)

Transcription

1 Making A Difference in Peabody Foundation Inc. (MADIP) General Information 49 Lowell Street Peabody, MA 196 (978) Website Organization Contact Scott Frasca sfrasca@madip.org Year of Incorporation 22 1

2 Statements & Search Criteria Mission Statement Provide one time emergency assistance to Peabody, MA residents in need of oil, heating gas, fire or flood relief, rent assistance, electricity, food, clothing, and housing items such as appliances and mattresses. Provide onsite education and resources to help low income residents and new businesses become economically self sufficient. Background Statement Making A Difference In Peabody Foundation, Inc. is a 51(c)(3)organization founded in 22 by Peabody businessman Scott Frasca. Mr. Frasca has led the organization since its inception and has a Masters degree in nprofit Management from rtheastern University and a Masters degree with a concentration in nprofit Management from Harvard University where he was the recipient of the Derek Bok Public Service Prize. The organization has been recognized for its community impact by the Peabody Chamber of Commerce, City of Peabody, Paul Newman Foundation, Peabody Weekly News, Peabody International Festival Committee, MA State House of Representatives, and Peabody Rotary Club. The Board of Directors consists of 9 reputable business and community leaders, 4 corporate sponsors, and more than 12 volunteers who have worked together in the community to help thousands of people in need and to make the organization sustainable. The organization's mission is to provide emergency assistance to low income Peabody residents in the form of food, clothing, energy, rent, and fire and flood aid. The organization recently expanded its scope of services to include workshops to educate and train those in poverty and to help new nonprofits and businesses grow and become sustainable. In addition to the need to provide more oil, food, etc.,we will invest in a welfare to work program, assist the unemployed or underemployed to find suitable employment, offer money management services, and provide necessary training to enhance their skills so they can be competitive in the marketplace and become economically self sufficient, with a goal of them no longer needing charitable or state and federal aid so that they can improve the quality of their life. We will also provide program services to new nonprofit and entrepreneurial organizations in order to help them start, grow, and become a sustainable organization, employing some of those that come right out of our training classes. Currently, there are 2, people in Peabody unemployed with many more underemployed. There are 3, living below the poverty line. The median income dropped below the state average and many people are struggling paycheck to paycheck. The population of Peabody is 51,. In vember and December of 213, we assisted victims of six of the seven house fires that occurred. There has been an increased demand for oil during the last few months, many of them with no oil or very little oil in their tank. We continue to fulfill a growing need in the city for numerous human services and receive referrals from government agencies, nonprofits, and the general public since we are well known and established in the area. 2

3 Impact Statement We purchased a hi-tech building that is 1 percent financed and renovated in order to support our growing need to fulfill and service the needs of our clients and donors and to increase our revenue streams in order to assist more people with emergency aid. We expanded our scope to include helping people become economically self sufficient by creating a welfare to work and money management program as well as partnering with Department of Workforce to utilize our office to help provide resources to the locally unemployed. We reached our goal of distributing the largest percent of aid to clients in need of energy (oil, gas, electric) as per our strategic plan goals. We implemented new conflict of interest, whistleblower, sexual harassment, and orientation packages in order to operate at a high level of board governance. Our goal in the new fiscal year is to double the amount of aid and services we provide to approx. $6,. Our goal in the new fiscal year is to successfully implement our expanded scope of education and resources in order to help 3 people become economically self sufficient. These people are new businesses, unemployed, on welfare, or need help managing their money. We will implement onsite services to achieve this goal. Our goal in the new fiscal year will be to provide human service needs such as oil, electricity, housing needs, food, etc. to more than 12 people. Our goal by the end of the new fiscal year is to have our office building fully rented and occupied in order to generate a profit over our operational expenses. We will complete a revised strategic plan to reflect our new services and new revenue streams (office rent, conference room rentals, grantwriting, corporate sponsorship, fundraisers, and e- commerce store). Needs Statement Financially, we need to support an increased need for five programs: Energy Assistance(oil, gas electrcity), Rent assistance, Housing needs, Food Self Economic Development resources For example, we deliver and pay for 1 gallons of oil to a person in need but we would have a greater impact by increasing it to 15-2 gallons. The same is true for electricity where the amount owed of a client may be much more than the $3-$4 we currently provide per request. There is an opportunity here to have a greater impact in all 5 areas of demand noted above. The City of Peabody has a population of 51, and 2, are unemployed, and 3, live below the poverty line. There is a huge market of low income children, families, individuals, and seniors who need assistance and can benefit from these services. 3

4 CEO/Executive Director Statement We fill a void where other organizations may leave off. For example the Red Cross might provide housing or food to a fire victim but then the victim may need additional resources for clothes, hotel, mattresses, food, etc. We provide oil to people who are on federal fuel assistance program but have run out of funds, or people who are waiting for the program to start but need help now. There are many people who are not on the federal program who suddenly become unemployed or face financial hardship due to medical issues or a home furnance that needed replacement. We have outreach volunteers to schools who are contacted by teachers or guidance counselors when an emergency situation develops with a student. Guidance Counselors are the first to find out about many family financial needs and we have strong relationships with them to help fulfill our services. For 12 years, we have helped thousands of people with many of these basic needs. w we can help these people become economically self sufficient who are unemployed, underemployed, on welfare, or need help managing their money. Board Chair Statement I identified a need in Peabody more than 12 years ago of seniors, children, families, regular people who sometimes come into bad times and need that one oil delivery or one months rent. We helped a senior on fixed income by replacing a broken refrigerator on a hot summer day. We are uniquely positioned to help someone like this and we are the first that a Senior housing representative would call. I was at a cookout this past summer and introduced myself to someone and they said they knew who I was because my organization helped them with services after a fire several years ago. Donors see this connection because the people we help live in their neighborhoods across the city. Many of these donors have experienced financial hardship in their lifetime and they feel good helping and being associated with this organization. Our major challenge for several years has been how do we grow substantially, how can we scale in order to help more people? We have been having 3-4 fundraising events a year and then we have smaller corporate donations and our revenue was not growing substantially enough to be able to give more to those in need and not rely on the same contributors in order to grow. In order to help more people and raise more revenue, and so it was necessary to expand our scope and to increase our revenue streams. The educational services we now offer help people become economically self sufficient and make us eligible for those types of grants in addition to human service grants. We can tell donors that not only do we provide the oil but we now help them find a job. The purchase of the building gives us the space to distribute these services and raise revenue to support more people. I had thought previously that board expansion was the solution since more people would show up at events but I was wrong. New entrepreneurial ideas, new programs without changing who we are, and new grant opportunities is the solution. We will provide 85 percent to human services and 15 percent to economin self improvement programs. Service Categories Emergency Assistance (Food, Clothing, Cash) Management & Technical Assistance Geographic Areas Served Essex County. Peabody, MA residents and organizations. Please review online profile for full list of selected areas served. 4

5 Programs MADIP Description Fuel and energy assistance, housing related needs, clothing, food, resources and education to help those that we assist to become finanacially independent. Budget 5 Category Population Served Program Short Term Success Program Long term Success Program Success Monitored By Human Services, General/Other Emergency Assistance Poor,Economically Disadvantaged,Indigent, Elderly and/or Disabled, Unemployed, Underemployed, Dislocated There will be an immediate human service impact for those without heat, food, proper clothing, electricity, in need of temporary housing, etc. For those who we assist with economic resources, they will immediatly gain knowledge, information, and access to more resources to help them gain financial independence. We will provide resources and expert advice and program services to new businesses, nonprofit organizations, welfare recipients, unemployed, and other financially distressed individuals. This will ensure sustainability and economic self sufficiency and reduce those in need of federal or state assistance by 175 people a year. We will measure the amount of people we assist with fulfillment of human service needs which is a direct result of our outreach efforts. Our partners such as the Dept. of Workforce and Metro Credit Union, will provide feedback on the amount of people they were able to assist and who are back to work, earning more wages, or who improved their money management skills. Examples of Program Success We provide a mother of 3 with oil for her home to stay warm. She deos not want to be on welfare but she cannot afford to be trained on $8. an hour jobs which will mean less income to her family. She is motivated to work, so we will find the resources to help her get trained or find a higher paid job or to start a new business and guide her along the process. Her family benefits as a result and welfare is always there as a safety net to her so she risks little for big gains. 5

6 Management CEO/Executive Director Executive Director Mr. Scott Frasca Term Start July 22 Experience President since 22 of Making a Difference. Master's degree in nprofit Management from rtheastern University, Masters Degree in General Management with nprofit Concentration from Harvard University. Four years as Vice President of Peabody Chamber of Commerce. Small business owner and entrepreneur for 15 years. Staff Information Full Time Staff Part Time Staff Volunteers Contractors Retention Rate 121 1% Staff Demographics - Ethnicity African American/Black Asian American/Pacific Islander Caucasian 1 Hispanic/Latino Native American/American Indian Other Staff Demographics - Gender Male Female Unspecified 1 Formal Evaluations CEO Formal Evaluation CEO/Executive Formal Evaluation Frequency Senior Management Formal Evaluation Senior Management Formal Evaluation Frequency Yes Annually N/A N/A 6

7 nmanagement Formal Evaluation n Management Formal Evaluation Frequency N/A N/A Plans & Policies Organization has a Fundraising Plan? Organization has a Strategic Plan? Years Strategic Plan Considers Under Development Yes Date Strategic Plan Adopted Mar 211 Does your organization have a Business Continuity of Operations Plan? Management Succession Plan? Organization Policy and Procedures ndiscrimination Policy Whistleblower Policy Document Destruction Policy Directors and Officers Insurance Policy Is your organization licensed by the Government? Registration Permit? 3 Under Development Under Development Yes Yes Yes Awards Awards Award/Recognition Organization Year USA Weekly, Annual Make a Difference Day Community Service Award Citation by Mayor of 5 years of outstanding community service Citation of 12 1/2 years of community service USA Weekly 24 Peabody Chamber of Commerce/Peabody Weekly News 25 City of Peabody 27 MA State House of Representatives 214 Comments CEO Comments We are registered by the Commonwealth of MA Office of Attorney General to solicit funds through vember 214. All of our filings are complete and updated at the Secretary of State of Commonwealth of MA and the IRS. We have a comprehensive building and liability insurance policy in place and a Directors and Officers insurance coverage is under development. 7

8 A document destruction policy is also under development but strict procedures are in place to maintain privacy of our clients by utilizing locked file cabinets and locked office doors with security systems and alarms. All personal documents that need to be disposed of are shredded. 8

9 Board & Governance Board Chair Board Chair Mr. Scott M. Frasca Company Affiliation ne Term Dec 212 to Dec 214 Board Members Name Affiliation Status Gregory S Bunn MA Department of Workforce and Training Voting SCOTT M. FRASCA ne Voting Kerrie Hartigan Metro Credit Union Voting Don McAllister WH Burke Voting William Power Retired Voting Dr. Michael Sobus Next Level Business Development Voting MARK VAINAS Pilgrim Insurance Voting Board Demographics - Ethnicity African American/Black Asian American/Pacific Islander Caucasian 9 Hispanic/Latino Native American/American Indian Other Board Demographics - Gender Male Female Unspecified 6 1 Board Information Number of Full Board Meetings Annually Board Meeting Attendance % Written Board Selection Criteria? Written Conflict of Interest Policy? Percentage Making Monetary Contributions 3 75% Yes Yes 1% 9

10 Percentage Making In-Kind Contributions Constituency Includes Client Representation 1% Standing Committees Community Outreach / Community Relations Development / Fund Development / Fund Raising / Grant Writing / Major Gifts Program / Program Planning Strategic Planning / Strategic Direction Additional Board Members and Affiliations Name Maryann Pierce Affiliation Advisor on public benefits for senior citizens Constituent Board Members Name Christopher Feazel Michael Murray Affiliation Fuel Manager and liaison Volunteer Electricity Manager and liaison Comments CEO Comments MADIP has overcome labor challenges without paid staff and made much progress in its governance standards by creating a whistleblower policy, conflict of interest policy, gifts policy, orientation packages for new board members, board assessments, sexual harrassment policy, surveys to board and donors, created a strategic plan, and increased transparency by posting on website recent accomplishments and how aid has been distributed, government documents such as IRS tax returns and determination letters and certificate to solicit from the Attorney General. This has been done during a time when much time sacrifices were made on a volunteer basis. Despite these accomplishments in this area, new revenue streams are needed to grow and a new building was purchased to help with our expansion of increased demand of human services such as oil, food, electricity, etc., and increased scope of services(providing resources to unemployed, creating a welfare to work program, a money management program, and helping new business start, grow and become sustainable toward a goal of economic self sufficiency). This requires a paid position in order to oversee the building and all the programs, apply for grants, reach out to donors, run fundraising events, public relations, respond to client needs, and lead the organization to ensure its sustainability. The new building and full time committment and paid position help ensure the success of our plans to grow the organization substantially by increasing our revenue streams which include office rent, conference room rentals for business meetings, e-commerce store added to our website, grantwriting, increased effort on developing corporate sponsorship, annual fundraiser, and an innovation center that allows accees to the building at redeuced costs to new entrepreneurs. 1

11 Impact Goals Our main strategic goal is to strengthen financial stability so that we can deliver responsive and effective services and progams to more low income clients in need of emergency assistance in Peabody, MA. Our specific goal is to increase revenues and revenue streams away from our reliance on individual fundraising events and beyond the same pool of contributors. By increasing our revenues and identifying additional funding sources, we can fund more per request and assist more people with oil, food, clothing, rent, electricity, and emergency disaster relief. We can also expand our programs to help low income people and new entrepreneurs to become economically self sufficient. Increased revenues will result in a reduced number of unemployed, underemployed, and those on welfare who live in Peabody, MA. Stronger financial stability and increased revenues will impact over 1,2 people a year who we intend to help. Helping someone find employment, get off welfare, or start and grow their business and remain employed provides lasting impact. The increased revenue sources will ensure that we can provide these services over the longterm and become a sustainable and effective organization. 11

12 Strategies In order to achieve our goal of increasing revenue and helping more clients we recently purchased an office building. We also committed to creating a 3 hour per week position to oversee the building and increase our focus on numerous development and revenue opportunities. It has been a challenge to increase revenue without the weekly commitment of 3 hours a week of this position. This provides us a resource of a building and a paid director who will have the time committed to the following activities: Rental of office space to new and established businesses to cover operational expenses. Rent a high tech conference room for business meetings by promoting this in the business community. Provide training and workshops to enhance client skills so that they are more competitive in the workforce and so that new businesses can grow. Rent workstations at a lower rate to part timers or new businesses who need all the building amenities but cannot justify a full time office. Increase and expand grantwriting efforts: w we can apply for grants that help people become economically self sufficient and educational grants in addition to human services grants. Utilize the building to create corporate sponsorship opportunities such as naming rights by soliciting longtime supporters. Enhance relationships with new and existing donors: There are many businesses that we have not been able to reach out to that the paid position will develop. Create an outreach office for the Department of Workforce, Dept. Transitional Assistance, rth Shore Community College, and Metro Credit Union to assist with our employment and training programs that increase skills, reduce unemployment, improve money management skills, and help new businesses start and grow. This increased activity of workshops and occupied office space in a building that was vacant of 7 years will help also stimulate the local economy since many tenants and workshop attendees will visit local restaurants and stores and have meetings catered. Develop a balanced scorecard to measure financial and nonfinancial metrics: We will measure how many people we help and the type of aid or program and where they were referred from. These activities will strengthen our financial Stability by increasing revenue through new grants and corporate sponsors while utilizing our building to generate income. The increased income as a result by the end of our first fiscal year will double the amount of aid from the previous year. This will benefit more than 12 people annually with human service needs and approximately 3 people with programs to help them become economically self sufficient. Our activities will help us achieve at least 6 months of operating expenses by reserving 2 percent of unrestricted revenue resulting in a stronger financial position and sustainability. 12

13 We will monitor our revenue streams, operational and aid expenses and donor retention rate which is critical to reaching our financial goals. Capabilities We have helped thousands of people since our inception in 22 and we have an experienced, capable board with established relationships in the community. Four of our Board members have served since inception which shows a strong commitment to the cause and that we work well together with no friction in order to produce positive outcomes. Our newer members have been instrumental in providing new ideas. For example one member works for the Dept. of Workforce Development who has partnered with Making a Difference in Peabody and has been able to commit to using one of our offices as an outreach center and is providing a number of resources in support of our employment goals for our clients. Another board member has used her business contacts to develop key sponsors which increases revenue. All of our board are active in the community and own businesses or vounteer their time. We are perceived positively in the community and have established relationships and received only positive media stories about the good we have achieved. Some of us have served as President, Vice President, or on the Board of the Peabody Chamber of Commerce. We have a strong established network in the business, nonprofit, and city and state government sector. The educational background and experience of the board is very strong. The Founder and President has master's degrees in nonprofit management from Harvard and rtheastern University. Another has a Phd and owns a business coaching company. There is a mix of business owners, licensed social workers, school administrators, and operations managers who add value to the organization. Our oil suppliers have delivered our oil for 12 years and we have generated a few new suppliers. We have a proven track record of executing our programs so that people in need receive them in a timely manner. Our strategic plan provides a good framework to guide us. Our networks, people, and influence are our strongest assests. Financially, we hope to receive a Community Development grant to help us invest in IT infrastructure needs such as a smart tv for meetings, new laptops for training, and other technology so that we can attract people to rent our office space or conference room and to make our programs as effective as possible. The Community Development grant would help us become successful faster. We are also actively applying for grants and increasing corporate sponsorship. 13

14 Indicators Milestones: Purchase of new building to support expansion plans Jan. 214 Approval of Community Development Grant or corporate donations for high tech investments by Mar Purchase of IT equipment in order to plan training, workshops, and room rentals. April 214 Implementation of free unemployment, money management, and welfare to work program. March 31, 214 Occupy 75 percent of office space by April 3, 214 Occupy 1 percent of office space by Sept. 3, 214 Conference room rentals and workshops to start Mar Occupy 5 workstations to new businesses or nonprofits by June 3, 214 Occupy 1 workstations at full capacity to new businesses or nonprofits by Dec. 214 Receive five $1, corporate sponsors by Feb. 28, 214 Receive ten $1, corporate sponsors by June 3, 214 Double the amount of corporate sponsorship revenue over the previous year by June 3, 215 Apply for 2 grants and meet with 5 potential sponsors by June Achieve 6 percent of new fiscal year program services by Jan 15, 215 Achieve 1 percent of program services by June 3, 215 Double the amount of aid over the previous fiscal year by June Progress The purchase of a new building has enabled us to dsitribute more effectively many of our winter coats and clothing, food donations, and toys. The new building has already 7 office spaces filled which is one of our major revenue streams. Without this increased revenue, we will not be able to cover operational costs or double the amount of charitable aid which is our overall goal. In order to scale, relying on the same donors at individual fundraising events does not work. It is a challenge to focus on new revenue streams to accomplish our financial and aid distribution goals but the response of new tenants renting office space in such a short period of time is encouraging. There will continue to be adjustments along the way in order to be successful. We will make regular adjustments to our strategic plan as we monitor progress and measure results. Our new plan of raising money is a result of evaluating a fundraising plan that was not allowing us to assist more people or to generate a 6 month cash reserve. Our new fundraising plan will be better positioned to do so. Dealing with short term cash needs is a struggle as we put a large effort into grantwriting and corporate development which will benefit us in the longer term. 14

15 Financials Fiscal Year Fiscal Year Start July 1, 213 Fiscal Year End June 3, 214 Projected Revenue $8,. Projected Expenses $64,. Endowment? Credit Line? Reserve Fund? Months Reserve Fund Covers Detailed Financials Revenue and Expenses Fiscal Year Total Revenue $44,682 $33,755 $28,241 Total Expenses $45,563 $35,121 $33,856 Revenue Sources Fiscal Year Foundation and Corporation $ $ $ Contributions Government Contributions $ $ $ Federal $ $ $ State $ $ $ Local $ $ $ Unspecified $ $ $ Individual Contributions $31,373 $25,279 $18,599 Indirect Public Support $ $ $ Earned Revenue $ $ $ Investment Income, Net of Losses $1 $3 $7 Membership Dues $ $ $ Special Events $ $ $ Revenue In-Kind $13,38 $8,472 $9,635 Other $ $ $ 15

16 Expense Allocation Fiscal Year Program Expense $26,175 $18,936 $22,111 Administration Expense $17,489 $11,391 $9,413 Fundraising Expense $1,899 $4,794 $2,332 Payments to Affiliates $ $ $ Total Revenue/Total Expenses Program Expense/Total Expenses 57% 54% 65% Fundraising Expense/Contributed Revenue 6% 19% 13% Assets and Liabilities Fiscal Year Total Assets $1,695 $2,145 $3,898 Current Assets $1,635 $2,44 $3,898 Long-Term Liabilities $ $ $ Current Liabilities $1,466 $1,35 $1,421 Total Net Assets $229 $1,11 $2,477 Short Term Solvency Fiscal Year Current Ratio: Current Assets/Current Liabilities Long Term Solvency Fiscal Year Long-Term Liabilities/Total Assets % % % Top Funding Sources Fiscal Year Top Funding Source & Dollar Amount Second Highest Funding Source & Dollar Amount Third Highest Funding Source & Dollar Amount Capital Campaign Currently in a Capital Campaign? Capital Campaign Anticipated in Next 5 Years? Comments CEO Comments There has been a challenge to increase annual revenue and to expand the revenue mix outside of our same pool of funders. We have relied on 2-3 annual fundraisers, local corporate sponsorship, and a few local private foundations that we had connections to but may not be able to rely on in the future. The fundraisers are a lot of work for a volunteer organization and does not raise significant revenue and reaching outside of our local pool of funders would require more commitment of hours. Developing entrepreneurial ways of raising revenues has been a challenge. Recently we have purchased a building 1 percent financed to support our expanded operations, to increase our revenue streams, and to increase our program scope. w, we can distribute charitable items more effectively and efficiently. We now have an office used to help people become self sufficient who are unemployed, underemployed, welfare recipients, entrepreneurs, and those who need money management assistance. The building generates new income opportunities such as office rent, 16

17 conference room rentals for business meetings and workshops, a training room, and innovation center that charges a low monthly access rental fee to entrepreneurs. The organization has committed a 3 hours a week paid position to oversee the building and charitable operations and to expand our corporate sponsor donations, apply for new grants, and manage one annual fundraiser. We are at the beginning of an exciting opportunity to increase our revenues, increase our impact by providing more services to more people, and increasing the amount of aid per client request. Foundation Staff Comments Financial summary data in the charts and graphs above are per the organization's reviewed financials. Please note, the 211 data is per the 212 reviewed financial document, as notable differences for 211 are indicated in the 212 reviewed financial document. Contributions from foundations and corporations are listed under individuals when the breakout was not available. Created Copyright 218 The Boston Foundation 17