Families Firsts

Social Enterprise Summary

January 16, 2015

Contents
Families First Financial Overview...................................................................................................1

Nonprofit Social Venture.................................................................................................................4

Families Firsts Social Enterprise Concept Overview.....................................................................5
Executive Summary.....................................................................................................................5
Our Vision for Families Firsts Social Enterprise........................................................................7
Key Questions..............................................................................................................................9
Advisory Board and Social Enterprise Expertise......................................................................12
Social Enterprise Operations Overview.........................................................................................14
Proposed Enterprise Staffing Structure......................................................................................14
Job Description for General Manager........................................................................................15
Partnership Overview and Roles...............................................................................................17
Competitor Research: Central Indiana Move Management Companies...................................18
Competitor Research: Central Indiana Resale Companies........................................................19
Marketing...................................................................................................................................20
Incremental Steps/Implementation Timeline.............................................................................21
Social Enterprise Financial Overview...........................................................................................22
Appendix........................................................................................................................................27
Appendix A: United Way New U Metrics (as of 12/4/2014).................................................27

Families First Financial Overview

The Need to Identify New Revenue Sources
Historically, United Way and government contracts have comprised a majority (80%) of Families
First annual revenue. While support from these sources has been relatively consistent over the
past 7 years, Families First has recently learned that the United Way will be changing its funding
in ways that could significantly and negatively impact the financial health and sustainability of
Families First operations and programs.
United Way of Central Indiana | Projected Financial Challenges Anticipated

Our United Way allocation for funding year July 1, 2014 - June 30, 2015 is
$1,050,340. Currently, United Way bases allocations on organizational performance by
applying a formula to their periodic agency evaluations. Families First has been able to
earn optimal allocations and has been a top recipient of UW funds.

United Way has recently shared with its agency partners that they will be changing
their funding priorities and agency allocation process. Going forward, United Way
intends to distribute funds to agencies based on their alignment with the priorities and
metrics it has established. (See Appendix A on p. 27 for new United Way program focus
areas and metrics).

While Families First will still receive United Way support, we are anticipating
significant decreases in revenue from United Way over the next several years as
Families First programming is not perceived to be strongly aligned with the new
priorities and funding criteria outlined by United Way.

As United Way utilizes more funds for their own direct service programming and special
initiatives, the pool of allocable dollars is decreasing.

Based on what has been communicated, Families First is projecting the United Way
allocation over the next four years as follows:
Fiscal Year
July 1, 2014 - June 30, 2015
July 1, 2015 - June 30, 2016
July 1, 2016 - June 30, 2017
July 1, 2017 - June 30, 2018

Allocation Amount
$1,050,340 (Actual)
$ 987,300
$ 835,300
$ 610,700

Change
($63,000)
($152,000)
($224,600)

By the end of fiscal year 2017-2018, Families First will need to identify a way to
replace approximately $440,000 in revenue as a result of anticipated funding
changes at United Way.
2

The primary impact to cuts in United Way Funding will be to our services to older
and challenged adults (Vistas program). Through the Vistas program, Families First
provides comprehensive case management services to older adults and individuals with
developmental disabilities or mental health issues.

In 2014, 65 older and challenged adults were provided counseling, case

management, homemaker support and protective care from Families First.
Currently, Families First has a waiting list for this program of 50 people who cannot be
served due to budget limitations.
If additional revenue is not raised to replace anticipated cuts in United Way
funding, critical services to older adults and individuals with disabilities could be
impacted and/or the number of individuals served annually could dramatically
decrease.

Government Contracts and Grants | Projected Financial Challenges Anticipated

Families First currently has 20 different government contracts. These contracts are
becoming increasingly competitive and costly to operate due to regulatory, compliance,
billing and reporting requirements.

The Indiana Department of Child Services (DCS) is our largest government revenue
source and comprises 40% to 45% of Families Firsts annual operating budget.
Every program except our older and challenged adults program serves clients referred by
DCS.
Specific programs supported by DCS include:
Home-Based Family Preservation services
Family Counseling services
Chemical Dependency services
Domestic Violence Servicesfor both victims and perpetrators
Parenting Education services

DCS is the only source of direct revenue for our largest program, home-based family
preservation services. The annual cost for this program over the past 3 years has
averaged $1.6 million but only $.75 of each dollar in costs is covered by DCS.

Billing rates for services billable to DCS have not been increased for 5 years and will
not increase with the new contracts that go into effect July 1, 2015.

Given the current billing rates, Families First must raise the difference between
billable services and the actual cost to operate our programs. Decreases in
3

unrestricted funds, such as United Way, could curtail the continuation or expansion of
services supported by government contracts and grants.
Currently, a substantial number of the children and adults served by Families First,
and the majority of our social service staff members provide services funded in
whole or in part by government contracts and grants. If additional revenue is not
raised to supplant government contracts and grants, programs and services could be
impacted and the number of individuals Families First serves and employees could
decrease.

Families First Revenue (2007-2014)

6,000,000

5,652,657

5,000,000

4,821,912
4,201,287

4,000,000
Others

3,663,938

3,000,000

634,551

4,943,382
902,383

497,208

Self-pay fees from clients

688,376
1,182,027

4,696,202
4,760,342
370,621

286,208

4,525,197
424,877

1,182,027
3rd party insurance/EAP/
Private donations/
M edicare/M edicaid
fundraising
events
1,130,377
1,109,521
1,123,656

243,137
United Way
1,083,270

1,329,738
2,000,000

1,272,887

2838271
1,000,000
Government funding
1484108

3245512

Total
revenue, gains,
1897117
and other support (net)

2900463

2942479

2939439

2709432

Nonprofit Social Venture

What is a Social Venture?
A social venture is when a nonprofit uses commercial approaches to diversify revenue streams in order to
advance a social mission (as opposed to maximizing profits for external shareholders).

Social ventures use earned revenue strategies as a significant part of a nonprofit's mixed revenue stream. This
distinguishes them from traditional nonprofits, which rely primarily on philanthropic and government support.

Examples of Central Indiana Social Ventures

Store for donated home

improvement goods

Proceeds from store sales support Habitat

for Humanitys new home build programs
for low-income residents.

Thrift stores

Proceeds from thrift store sales support

Goodwills employment training and job
placement services.

Used and new book sales

Proceeds from independent bookstore

sales support adult literacy programs at
Indy Reads.

Thrift store

Proceeds from thrift store sales support

the Julian Centers domestic violence
shelter and counseling programs.

Electronics recycling

Proceeds from electronic recycling

support RecycleForces ex-offender
employment training and job placement
services.

Families Firsts Social Enterprise Concept Overview

Executive Summary
Background
Many nonprofit organizations have established social ventures to serve as an additional revenue
source to support their missions and programs.
In anticipation of declining funding and a need to respond to increased demand for services,
Families First began exploring the concept of a social enterprise in mid-2013 to identify new,
more sustainable sources of revenue.
Tasks Accomplished
In developing its social enterprise concept, Families First has accomplished the following tasks:

Contracted with Joanna Nixon to guide the exploration of a social enterprise and provide
philanthropic strategy.

Created a social enterprise advisory committee called the Innovation Task Force.

Collaborated with Purdue Technical Assistance Program, and began drafting an enterprise
business plan.

Conducted two internal focus groups.

Met with Jays Moving Company.

Hired an AmeriCorps VISTA.

Conducted competitor research and analysis.

Met with EmployIndy and WorkOne.

Obtained lessons learned from Empty the Nest, an existing business in Minneapolis,
Minnesota.

Social Enterprise Concept Overview

Families First would like to launch a social enterprise in Indianapolis that replicates components
of Empty the Nest. Empty the Nest is a private business located in Minneapolis that provides
wall-to-wall move and cleanout services to individuals and families in transition. Items donated
to the organization through the move/cleanout service are sold in a retail showroom. This
enterprise has been identified as of particular interest because of its alignment with Families
Firsts mission to strengthen families and individuals during life challenges and changes.

Families Firsts Social Enterprise vs. Empty the Nest

Families First Model
Provides wall-to-wall home cleanout services
for individuals who are experiencing life
transitions, such as downsizing, marriage,
death of an elderly parent, etc.

Empty the Nest Model

Provides wall-to-wall home cleanout services
for individuals who are experiencing life
transitions, such as downsizing, marriage,
death of an elderly parent, etc.

Employs qualified Families First clients and Employs people who are successfully
other outside applicants.
recovering from addictions.
Sells unwanted items of value obtained in
cleanout contracts at pop-up events, periodic
warehouse sales, and other venues. Items
not appropriate for resale are recycled or
donated to local charities.

Sells unwanted items of value obtained in

cleanout contracts at its retail showroom.
Items not appropriate for resale are recycled or
donated to local charities.

Has the capacity to provide comprehensive

support services before and after a move.

Does not provide value-added counseling and

support services for clients.

Goals
1. Create a sustainable business that will generate funds for Families Firsts programming
through move/cleanout service revenue, retail sale income from donated items, and
additional fee for service opportunities.
2. Develop employment and training opportunities for Families Firsts clients.
3. Increase volunteer opportunities with Families First.
4. Increase community visibility and programming opportunities for Families First.
5. Contribute to environmental sustainability through the reuse/recycling/upcycling of
unwanted items.
Operations
Families First intends to hire a general manager who will be responsible for overseeing the daily
operations of the social enterprise. The organization also plans to gain additional expertise in
business marketing and communications as well as to partner with a local moving company to
assist with customer moves.
Families First will sell the items obtained through the move/cleanout component at pop-up
events and markets and periodic warehouse sales, similar in concept to estate auctions. This

approach helps reduce the risk and cost of maintaining a retail storefront.
Recommendations
While there is a degree of risk with any new business, the Families First executive staff and a
volunteer advisory committee have assessed the opportunity and have analyzed the risks. Based
on their assessment and analysis, they recommend moving forward with the enterprise and using
funds currently held in our Operating Account at Merrill Lynch for start-up expenses and up to
two years of enterprise operations.

Our Vision for Families Firsts Social Enterprise

Below are exemplary case vignettes that demonstrate the scope of services that Families First
proposes to provide and examples of the type of clients that would ideally benefit from the Social
Enterprise (SE).
Example #1
Janelle Pierson, who lives in Illinois, sought the help of SE for her 88-year-old mother and 90year-old father. It had become increasingly evident to Janelle that her parents were no longer able
to care for themselves or their large home. The resistance of Janelles parents to move to a more
supportive environment caused a strain on her relationship with them, and the worry and
difficulty of being a long-distance caregiver was affecting her own health and quality of life.
Through online research and calls to local helplines, Janelle was encouraged to hear about the
comprehensive services provided by Families First. Sarah, a Families First social worker skilled
in working with older adults, met with Mr. and Mrs. Pierson at their residence to explore their
situation and reluctance to leaving their home. Sarah took time to get acquainted with the
Piersons, and acknowledged the grief and loss associated with decreasing independence and
leaving behind beloved people and things. Mr. and Mrs. Pierson began to open up about their
sadness and fear of the unknown as well as their guilt about burdening their daughter. Finally,
they agreed to accompany Sarah to look at a couple of assisted living facilities that Sarah deemed
a good fit with their needs and interests.
After the Piersons came to the conclusion that a move to a supportive setting was in everyones
best interest, Sarah and the SE team helped them sort through their belongings and decide what
would become of them. SE collaborated with Jays Moving to get the household items to their
intended recipients and the Piersons new residence.
Remaining goods were moved to SEs storage site for upcycling and resale, or distributed to
community partners. SE cleaned the home in order for Janelle to have it appraised and listed with
a realtor.
Janelle was interested in continuing support for her parents as they adjusted to a new setting.
She wanted someone to check on them and assist as needed. She was delighted to hear that SE
could assist with mail, bill paying, resource finding, and Medicare/ insurance filings. It was a
pleasure for her to visit her parents and not spend the time doing paperwork. In addition to
providing practical assistance and reassurance, the SE staff member facilitated Skype visits
between Janelle and her parents on weeks that she was unable to visit them in person.
The amount of relief and gratitude Janelle felt led her to provide regular financial contributions
to Families First so that others with lesser means could get the kind of help she had received. Her
parents were so happy with all that SE had done for them that they decided to leave 5% of their
estate to Families First.

Example #2
John and Janes last child had left home, and they were ready to pursue their dream of living
downtown where they could walk to their jobs and activities. While they were excited about this
new phase of life, they were having a hard time agreeing on what to keep and what to let go of.
Ideally, John and Janes children would have taken some of the things they didnt have room for
in their new condo, but due to differences in taste and their own space limitations, John and
Janes children did not want the delicate china, antiques, etc. that Jane had a hard time leaving
behind.
John and Jane were overwhelmed with the demands and decisions associated with downsizing,
and time constraints were adding to their stress. The familys philanthropic community spirit and
the desire to eliminate some of the hassle of their transition led the couple to contact SE. SE
helped John and Jane negotiate the endpoint for their belongings, organize and pack, and
distribute items according to their wishes. SE eased the stress of their move, and John and Jane
were very pleased with the service. As they embarked on their new lifestyle and life stage, they
found it satisfying to know that their household belongings would find their way to a young
family just starting out, and at the same time, help Families First strengthen individuals and
families in their community. They were relieved to find a one stop provider to help with their
move, distribution of items, cleanout of their house, and provision of documentation of their
donations for tax purposes.
John and Jane were so impressed by Families Firsts work in the community and innovative way
to support their mission that they wanted to help. They became regular volunteers at SEs sales
events. In addition, they signed on to the organizations mailing list because they were interested
in workshops offered by SE on The Next Chapter: Marriage and the Empty Nest and
Preparing for the Emotional Aspects of Retirement.

Key Questions
Why is Families First pursuing the social enterprise concept described above in the
Executive Summary (p. 56)?
With the anticipated decrease in government and United Way funding in the coming years,
Families First recognizes the need to diversify its revenue stream to continue serving its clients.
We have identified social enterprises as an innovative, entrepreneurial approach to address this
financial challenge. The concept based on the Empty the Nest model was selected for its strong
alignment with Families Firsts mission: to strengthen families and individuals through life
changes and challenges. Please see p. 78 on how Families Firsts Social Enterprise can serve its
clients and the community.
What are the detailed components of Families Firsts Social Enterprise (SE)?
The proposed SE is modeled after Empty the Nest, a for-profit business in Minneapolis,
Minnesota. This enterprise includes three components:
1) Move and cleanout services for individuals in a family that is in transition (divorce,
downsizing, home consolidation, death of a loved one).

Consultation
We will offer free, in-home consultations with customers to assess their
individual needs. We will also provide a cost estimate for our services.
Sorting and downsizing
We will work with customers to sort through their possessions and decide what
should be kept, distributed to friends and relatives, donated, recycled, or
discarded.
Packing and moving coordination
We will work to coordinate packing and moving of household items according
to our customers requests.
Cleaning
We will clean a customers home once the packing and moving have been
completed.
Hauling of items
We will haul unwanted (donated) possessions. High-quality, gently-used items
will be sold at periodic warehouse sales and other venues. Items not appropriate
for the Families First resale component will be recycled, discarded, or donated
to partners that can use the items.
2) Resale of donated goods obtained during move and cleanout services. Specific focus
of the retail component will be on furniture items that have a high resale value and
opportunities for upcycling. During the first year of move operations, we will focus on
accumulating unwanted household furniture and furnishings from clients, which will be

stored in a climate-controlled, offsite storage space. Meanwhile, we will test the retail
market by selling these items at pop-up events and periodic warehouse sales. Possible
venues for the retail operation include Midland Arts & Antiques Market and Indie Arts &
Vintage Marketplace. Resale items will be handled with special attention to customers
privacy and confidentiality.
3) Counseling for clients who are experiencing challenges with transition issues
We will provide personal care and counseling to clients if they are experiencing any
emotional difficulties during their transition (example: hoarding, emotional attachment
to items). If necessary, we can help our clients or their relatives with surrogate decision
making and guardianship issues. (Examples: A bank trust officer or attorney could refer
an individual in need of assistance with daily living activities/decisions to Families First
so that we can serve as a health care representative or guardian of the person).
How does this proposed enterprise align with the work of Families First?
Alignment with the mission of the organization to strengthen families and individuals
during life challenges and changes. (Families First already provides all of the services
outlined above to older and challenged adults without the means to pay. For example, we
have been involved in home sales and real estate closings for clients for whom we serve
as guardians.)
Extension of core competencies of providing assessment, case management, homemaker,
and counseling services.
Increased opportunities for Families First clients to increase self-sufficiency through
employment opportunities associated with the enterprise.
Who is the target market/audience for this enterprise?
A comprehensive marketing plan with specific tactics and strategies will be developed with the
expertise of external marketing consultants. The initial intended audience for this social venture
is as follows:
Move/cleanout service component: Central Indiana individuals and families in
transition. Specific outreach and marketing strategies will be used to recruit prospective
clients through professional advisors who interact with high income clients (estate
planning attorneys, financial advisors and lawyers).
Resale of donated goods: individuals who are more inclined to purchase used furniture
and upcycled goods.
What is the unique niche of the business, and how will Families First differentiate itself
from its competitors?
Unlike other move management companies and similar retailers in Central Indiana, our
business will appeal to and capture customers who want to support a business with a
strong social mission.
Families First has extensive experience in family counseling and guardianship. This asset
will help us identify and provide the appropriate emotional support to customers facing
life transitions.
Families First will focus only on the resale of high quality furniture and home goods,
which is unique from other nonprofits who operate retail market concepts.

How does Families First intend to compete with other nonprofit organizations that accept
donated items free of charge?
While other nonprofit organizations have strong social missions and offer similar services, a key
differentiator for Families Firsts social venture is the emotional support provided to clients.
Among its competitors, Families First is the only organization that has the experience and skills
to offer a high level of personal care and counseling to its clients. The types of emotional support
that Families First can provide to its clients include surrogate decision making, financial
caregiving, family mediation, and counseling for hoarding issues.
Given the demand on Families Firsts current staff, how will this enterprise be
operationalized to ensure that it is successful and not a distraction to Families Firsts
current programs?
Families First intends to operate the social enterprise as a profitable venture to generate net
income. In doing so, the organization will rely on additional new hires and contracted expertise
to assist with the development and ongoing implementation of this business venture. Families
First intends to hire a general manager who has extensive expertise in retail, customer service,
and running and managing a successful business.
How will the social enterprise be funded initially?
Families First would like to invest $250,000 from our Operating Account at Merrill Lynch for
start-up expenses and up to two years of social enterprise operations. The Nina Mason Pulliam
Trust has also expressed interest in funding the enterprise.
What is the potential opportunity cost of launching the social enterprise?
Please see p. 24 for detailed information regarding potential opportunity costs.
Has Families First considered Employee Assistance Programs (EAP) and third party
payers as a means of generating revenue?
Families First provides EAP services which are, most often, under contract with a larger entity
that has a direct relationship with employers. We also provide behavioral health services under a
number of contracts with insurers such as Anthem and United Health Care. Our average rate of
reimbursement is approximately $60/hour, with the highest rate of reimbursement being
$65/hour. Our reimbursement from Medicaid is $48/hour. Since our cost is $119/hour for
counseling and EAP services, we do not cover our costs, let alone generate profit to support
programs lacking sustainable funding sources. If we had contracts directly with companies, we
would come closer to covering our costs and potentially earn a little profit. In recent years,
however, the large insurers have taken over the EAP market by adding EAP to enhance other
health care benefits they provide and perhaps to soften the blow of higher premiums.
What are the intended business goals and anticipated benefits of this enterprise?
To create a sustainable business that will generate funds for Families Firsts Vista
program, which provides services to older and challenged adults.
To develop employment and training opportunities for Families Firsts clients.
To increase volunteer and fundraising opportunities with Families First.
To increase community visibility and programming opportunities for Families First.

To strengthen Families Firsts alignment with United Ways framework goals and metrics
under which income is a key priority.

Advisory Board and Social Enterprise Expertise

Families First recognizes that outside expertise is necessary to develop the social enterprise.
Throughout the planning stage of the project, the organization has engaged with professionals
and experts in fields ranging from finance to senior move management to ensure the success of
the enterprise.
Innovation Task Force
A group of advisors from diverse professional backgrounds, the Innovation Task Force has
assessed and provided feedback on Families Firsts Social Enterprise concept since November
2013. Below is a list of the members, their job titles and positions, and their areas of expertise.
Advisor Name

Job Titles & Positions

Expertise

Mark Winzenread

Families First Board Chair;

CFO and Executive Vice
President, Walker Information

Finance, business development and

planning

Todd Hufford

Chief Operations Officer,

Conner Insurance; Co-Owner,
Jays Moving Company

Moving logistics, elder moves

Terry Bradbury

President, Bradbury
Associates Inc.

Architect, reuse, recycling

Leonard Gurin

Families First Board Member;

Finance, business development and
Vice President, Cash and
planning
Investments, USA Funds

Jack Esselman

Penn Commercial Real Estate

Dave Nie

Families First Board Member;

Tax law
Associate, Ice Miller

Dana Conway

Conway Coaching and

Consulting

Employment, workforce development

Scott Kennedy

First Vice President, Senior

Financial Advisor, Lockwood
& Kennedy Group, Merrill
Lynch Global Wealth
Management

Retail, business development and

planning

Nicole Thompson

Vice President, Development

and Administration,
EmployIndy

Employment, workforce development

Real estate

Other Consultants and Advisors

In addition to the Innovation Task Force, Families First has consulted with experts in various
fields to develop the social enterprise concept. Below is a list of these individuals, their job titles
and positions, and their areas of expertise.
Advisor Name

Job Titles & Positions

Expertise

Travis DiNicola

Executive Director, IndyReads

Social venture

Sharon Fischman

Proprietor of Empty the Nest

Senior move management

Matthew Gang

Project Director, WorkOne

Employment, workforce
development

Lee Ann Hoy

Program Director, Nina Mason

Pulliam Charitable Trust

Grant making, nonprofit strategy

Gregg Keesling

President, RecycleForce

Social venture

Chelsea Meldrum

Development Director,
EmployIndy

Employment, workforce
development

Joanna Nixon

Nixon Consulting

Non-profit management, social

venture

Bryon Silk

Business Solutions Manager,

EmployIndy

Employment, workforce
development

Jake Stamper

President, Eclipse Marketing &

Advertising

Marketing

Roderick Wheeler

Community Impact Director,

Central Indiana Community
Foundation

Grant making, nonprofit strategy

Social Enterprise Operations Overview

Proposed Enterprise Staffing Structure
Below is the modified organizational chart for Families Firsts Social Enterprise.

Existing position within Families First

New position
Contracted expertise

Job Description for General Manager

DEPARTMENT:

Social Enterprise

POSITION:

General Manager

POSITION REPORTS TO:

Families First President

PURPOSE OF POSITION:

Direct, promote, and coordinate the operations of Families Firsts

Social Enterprise.

SCOPE OF SUPERVISION:

This position has supervisory responsibilities. The General

Manager will hire, train, and assign tasks to staff and volunteers.
He or she will evaluate employees performance and offer other
staffing support.

FLSA STATUS:

Exempt (Classification: Administrative)

DUTIES AND RESPONSIBILITIES:

General
Provide leadership and direction for move/cleanout and retail activities by setting
and implementing business goals and strategies.
Hire, orient, train, and develop Families First clients as team members.
Develop and implement marketing activities to promote the social
enterprise to customers, volunteers, and community partners.
Plan, schedule, assign, and supervise the work of team members.
Complete administrative duties in a timely manner.
Prepare and monitor sales, statistical, and financial reports.
Report business performance to Families First executive staff.
Conduct performance evaluations and provide salary and human resource
recommendations.
Move Operations
Determine storage unit/warehouse/retail location for the social enterprise.
Receive and process customer move requests.
Communicate with customers to understand their needs and assist in making
decisions that meet their objectives.
Build relationships with customers before, during, and after each project.
Establish project plans and timelines that are customized to customers
needs.
Manage customer requests with the moving team, community partners, and

outside vendors.
Retail Operations
Establish, monitor, and follow up on sales goals, plans, and budgets to
optimize profit.
Plan, supervise, and evaluate the layout and display of all merchandise to
generate maximum financial return.
Report and handle all required transactions, including ringing up customers
at the register.
Provide direct customer service on the sales floor.
Process and manage stock level to maximize sales.
Plan and supervise the rotation, turnover, and rearrangement of stock.
Execute reductions and price reductions on merchandise.
ESSENTIAL KNOWLEDGE, EXPERIENCES, AND SKILLS:
Must have a bachelors degree or higher. Must have a minimum of 5 years of progressively
responsible experience in retail and/or production settings, and must include at least 1 year of
supervisory experience in retail or similar functions. Must have strong proficiency in Microsoft
Office. Must own a reliable personal vehicle. Must have effective verbal and written
communication skills, strong interpersonal skills, and problem-solving skills. Must be able to lift
50 lbs. and manage moving equipment.
INDEPENDENT ACTION AND JUDGMENT:
Work is of a high degree of difficulty and complexity, and is performed under minimal direction
with considerable latitude for individual initiative and independent judgment. Work is reviewed
in regular conferences with Families First President. Consultation with the President is required
prior to implementation of major changes in program emphasis or deployment of personnel.
WORKING RELATIONSHIPS:
Position relates to management personnel, other employees of the social enterprise, social service
staff at all levels, members of the Board of Directors and its committees, clients, and the general
public. Relationships inside and outside the organization are highly important to the agency, and
require a high degree of tact, diplomacy, and courtesy in order to be positively maintained.
WORKING CONDITIONS:
Most of the work of this position is performed outside of the office at clients homes. There is
minimal exposure to hazard or serious discomfort.
SALARY RANGE:
The salary range for the Social Enterprise General Manager classification, as established and
reviewed from time to time by the President, will apply to this position.

Partnership Overview and Roles

Families First has identified formal and informal partnerships in the local community that will be
involved in its social enterprise. Below is a list of organizations and businesses that will support
the enterprise as well as their area of support and role.
Name

Area of
Support

Role

Jay's Moving
Company

Moving

Serve as an initial, formal move partner for Families Firsts

Social Enterprise. This partnership would include:
Hard-skills training
Move assistance for clients
Cross-promotion and referral
Emotional care and counseling for employees
Separate estimates for clients

AMVETS
Assett Recycling
Crisis Office of
Catholic Charities
Dayspring Center
Exodus Refugee
Freewheelin'
Community Bikes
Gleaners Food Bank
Goodwill
Habitat Restore
Horizon House
Indy Reads
Julian Center Food
Pantry
RecycleForce
Refugee Resettlement
Program of Catholic
Charities Indianapolis
Salvation Army
Society of St. Vincent
de Paul
Thrifty Threads
Wheeler Mission
Ministries

Cleanout

Receive items that cannot be sold at warehouse sales.

Competitor Research: Central Indiana Move Management Companies

Services

Fee

Transition
Counseling
&
Emotional
Support

Packing &
Moving
Coordination

Home
Cleaning

Hauling
Unwanted
Items

Resale
of
Donated
Goods

Company
Nonprofit organization
Families
First
$
Goodwill
AMVETS
Habitat
Restore
Salvation
Army
Exodus
Refugee
St. Vincent
de Paul
Private business
A Treasured
$
Move, LLC
Smooth
Transitions
of
$
Indianapolis
(franchise)
T3
Transitions,
$
LLC
Yellow Tag
Household
$
Sales, Inc.
Anyone and
Everything
$
Organized
Senior Life
$
Transitions
Elder Moves
$
Clearly
Organized
$
Move
Management
Caring
Transitions
$
(franchise)
1-800-GOT$
JUNK
College
Hunks
Hauling
$
Junk
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Competitor Research: Central Indiana Resale Companies

Marketing
Below is a phased approach to developing and implementing the social enterprises marketing
activities, which are divided into three major categories: foundation building, execution of
tactics, and advertising and public relations.
Given the capacity and expertise of the Families First staff, we recommend the use of contracted
expertise for marketing the social enterprise. Advertising and public relations for the social
enterprise will be integrated into the request for proposal that Families First is currently
developing to identify marketing firms responsible for marketing the entire organization.

Phase One:
Foundation Building

Phase Two:
Execution of Tactics

Phase Three:
Advertising and Public Relations

Marketing Phases
Brand development
Tagline development
Master brand messaging
Product/service messaging
Audience profiling
Logo development
Brand architecture
Route to market
Merchandising approach
Website development
Sales materials
(corporate I.D. package, overview brochure, PowerPoint
presentations)
Partnership program
(supply side potential partners and demand side potential
partners)
Social media
Volunteer program
Videos
Posters
Electronic newsletters and blasts
Electronic geo-doming
Guest speaking and event attendance
Direct mail
Press releases
Reward program
Media

Incremental Steps/Implementation Timeline

Social Enterprise Financial Overview

Financial Details and Assumptions
Note: To see comments and equations in the charts below, please right click the chart and scroll down to Open
under Worksheet Object.

Where will support to seed this enterprise come from?

Families First has two investment accounts at Merrill Lynch: 1) Operating Account,
which has a balance of $1,501,400 as of 12/31/2014, and 2) Friends of the Family
Endowment Account, which has a balance of $6,796,100 as of 12/31/2014.
Funds in the Operating Account will be used to fund Families First investment in the
social enterprise.
The Operating Accounts Investment Policy Statement (IPS), adopted by the Board of
Directors on 9/16/2011, would allow for use of Operating Account funds to invest in the
social enterprise, per the following wording in the IPS:
The purpose of the Investment Policy is to assure that Families First maintains adequate
operating reserves for the ongoing costs of current activities, specifically: to fund
working capital needs; to serve as a contingency fund to avoid serious curtailment of
existing and needed programs at times of funding crisis or during periods of unexpected
or extraordinary reductions in revenue; to supplement other possible funding sources
as necessary to enable Families First to establish or expand needed programs,
undertake special projects, engage in research and meet extraordinary reductions in
revenue; to help defray the costs of phasing out programs or changing program emphasis;
and to support other activities as directed by the Board of Directors.
How much seed capital is needed and over what period of time?
The Board is being asked to approve the use of up to $250,000 from the Merrill Lynch
Operating Account to seed this social enterprise. This investment will be used for startup costs and operating expenses for the initial 2 years of operation. Cumulative
investment returns from Q4 2011 (when the Operating Account was established at
Merrill Lynch) through Q4 2014 are $303,750. The $250,000 request represents 82% of
this cumulative return, but does not use any of the initial investment.
What is the missed financial opportunity by drawing up to $250,000 from the Operating
Account?
The cumulative rate of return on the Operating Account portfolio (from inception in 2011
through Q4 2014) is approximately 28%. Although future investment performance
cannot be predicted or guaranteed and given the timing of withdrawals from the
investment account, the amount of foregone interest cannot be precisely calculated.
However, in order to present the most conservative estimate, for this illustration we have
assumed that the entire $250,000 is withdrawn on the first day of the start-up period and
that the cumulative return from the beginning of the start-up period through the end of
Year 2 of the enterprise approximates 28%. The amount of foregone interest is then
calculated at $250,000 x 28% or $57,400.
What will the net income from this social enterprise be used to support?
Any net income received from this enterprise will be used to support the Vistas program.
The services provided to older and challenged adults are long-term and not easily
withdrawn. For elderly and disabled persons for whom Families First is guardian,
services literally may last a lifetime.

The only dedicated sources of support for Vistas program costs are approximately
$15,000 in State CHOICE funds via CICOA and approximately $14,000 in client fees
meaning that the Vistas program relies on United Way support and unrestricted
contributions to cover almost 95% of its costs. With limited government support, our
Vistas services are especially vulnerable to decreases in unrestricted support, as shown
below:

Year
2014
2013
2012

Total Costs for Vistas

Services
$549,500
$531,900
$559,400

Vistas Costs
as a % of
Total Costs
11%
11%
12%

% of Total Unrestricted
Support Allocated to
Vistas Services
27%
29%
30%

In 2014, the Vistas program served 62 clients. This number is down from a high of 74
served during 2012. In 2013, one Vistas staff member resigned when her family
relocated out-of-state. The unrestricted dollars were needed to support employees who
were already on staff so Senior Management made the decision not to fill the vacated
Vistas position. The waiting list for Vistas services remains at 50 older and challenged
adults. Unless we can increase unrestricted sources of support, we cannot expand and
may not be able to sustain the level of service and numbers of clients served in the Vistas
program.

When do you estimate the social enterprise to begin earning revenue and covering
incremental expenses?
Based on the five-year financial projection, it is estimated that this enterprise will begin
generating net income in year 3 of its operation. Revenue earned is highly variable and
contingent upon the number of actual moves and the resale of items. Staff anticipates that
in the initial years of this enterprise various marketing and business model strategies will
be tested to determine how the market responds.
Staff anticipates that a minimum of three years will be required to determine if this
business operation is something that should be continued.
What are the incremental costs for investing in this enterprise?
Staff has developed a budget that includes both start-up costs and expenses for the first
several years of the enterprise operations. While there are incremental costs, it is the
recommendation of staff that the board commits to investing in this enterprise for up to
three years.
Initial start-up costs for this enterprise total $130,750 which includes:
o Hiring of a General Manager: $71,500first year salary and benefits
o Marketing expertise and collateral: $19,000
o Professional expertise (legal, financial): $4,750
o Capital expenditures/supplies: $35,500$20,000 for a vehicle; $15,000 for retail
fixtures/computer/POS system (which may be delayed until year 3 when
warehouse space is leased); and $500 for uniforms

How will this enterprise and its progress be monitored?

A General Manager with specific expertise in this type of business enterprise will be
hired to oversee all aspects of this business and its operations. Families First intends to
maintain a venture advisory committee to provide counsel and advice throughout the
initial years of operation.
Staff will provide a venture update at each Families First Board meeting. A
comprehensive report on the success of this venture and lessons learned will be provided
to the Families First Board in the third year of this venture (2017), and the Board can
assess and determine the continuation of this venture operation.

Appendix
Appendix A: United Way New U Metrics (as of 12/4/2014)
Priority 1: Education

Program Metrics Measures:

# and % of children enrolled in child cares rated at 3 or 4 on PTQ

# and % assessed for kindergarten readiness using ISTAR-KR

# and % of students passing ISTEP ELA

# and % of students with at least a 95% school attendance rate

# and % of students reporting suspension or expulsion

# and % of students progressing to the next grade level

# and % of students passing End of Course Assessment (ECA)

# and % of students graduating with their 4-year cohort

# and % of K-12 students with Individualized Education Plan (IEP)

who complete annual goals

Families First
Aligns With

Priority 2: Income

Program Metrics Measures:

# and % of clients placed in jobs

# and % of clients still employed at 90 days

# and % of clients reporting increased total income or maintaining increased total
income

# and % of clients reporting increased net worth or maintaining increased net worth

# and % of clients reporting improved credit score or maintaining improved credit

score
# and % clients reporting that they earn a living wage

# and % of successfully completing adult education, post-secondary

degrees/certifications, or other training programs (i.e. completion rate)

Priority 3: Health

Families First
Aligns With

Program Metrics Measures:

# and % of clients maintaining healthy weight

# and % of clients participating in physical activity sessions or exercise

programs

# and % of clients participating in nutrition improvement programs

# and % of clients progressing with treatment plan or therapy goals

# and % of clients receiving recommended health screenings

# and % of clients receiving or maintaining health insurance benefits

# and % of uninsured clients receiving treatment or assistance to receive

treatment

Families First
Aligns With

# and % of clients receiving medication or assistance to receive medication

Priority 4: Basic Needs

Program Metrics Measures:

# of clients receiving emergency shelter and # of opportunities filled

# of individuals receiving mortgage/rental assistance and # of opportunities

filled

# of individuals receiving utility assistance and # of opportunities filled

# of clients receiving meals delivered/served and # of opportunities filled

# of clients provided transportation or transportation aid and # of

opportunities filled

# of clients with legal engagements resolved and # of opportunities filled

Families First
Aligns With

Note: The extent to which a United Way (UW) agency is aligned with these program metrics will
affect 10% of its annual allocation year beginning 7/1/16 and 30% for year beginning 7/1/17. UW has
stated that its plan is to eventually have 100% of annual support tied to an agencys alignment with
the UW priorities; however, no timetable for achieving this increase from 30% to 100% has been
released by the UW. Families Firsts annual allocation for the year that began 7/1/14 is $1,050,340.