Inovação sem fins lucrativos financiada por modelo de resultados de desempenho - EUA
- Adult education
- Community development
- Employment
- Economic development
- Poverty alleviation
- Labor
- Social enterprise
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Cathy
Lawrence
Twin Cities RISE!
, MN, Hennepin County
, MN, Hennepin County
Mais de 5 anos
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Em execução por mais de 5 anos
TCR! began in 1993 as the brainchild of Steve Rothschild, an Executive Vice President at General Mills and board member of its foundation. Steve focused on the link between race and poverty. "I thought about being 23, a black man, a dropout, with kids out of wedlock, with a history of incarceration…who had hit the wall and wanted to do more with his life,” Steve said. “If I were that man, where would I go for training that would get me a living-wage job? I couldn't find it. Programs weren’t producing graduates with the skill level necessary to work and succeed in the long term.” Steve’s vision included: intensive job training program of skills development and Personal Empowerment; market-driven focus that addresses hiring needs of employers; commitment to serving adults from deep poverty with employment barriers; PFP funding that holds TCR! accountable for results; and ROI demonstrating long-term value. PFP has delivered more than $30 million in ROI to taxpayers through reduced welfare costs, increased taxes and reduced criminal justice costs. Based on the success of TCR!’s PFP contract, Steve is pioneering the next stage in the evolution of PFP: a model called Human Capital Bonding where states issue bonds funded by private investors to high performing organizations that achieve long-term outcomes. Human Capital Bonding is achieving international attention as a way to identify new sources of funds for groups that serve people in poverty. If successful, it would provide incremental investment and improve the effectiveness and efficiency of nonprofit spending.
TCR! has demonstrated resilience and continued success despite the difficult economic environment. In 2010, 52 participants achieved full-time, living wage employment with benefits, at an average salary of $24,655 per year. Their average work income increased by $17,530 from program start. Not only did this exceed the goal for the year, placements increased by 30% from 2009. One-year final placement retention remains strong at 83%. A total of 223 participants or 65% of active participants experienced important interim and final outcomes in 2010, including final placement, internship placement, gaining interim employment, and others.
The PFP contract with the State of Minnesota contains a very narrow definition of success that holds up to the highest standard: Placement into a full-time living wage job that pays at least $9 per hour or its equivalent with benefits; and retention in a fulltime living wage job for 12 months that pays at least $10 per hour or its equivalent plus benefits at the 12 month anniversary date. The contract was written this way purposefully to provide an incentive for Twin Cities RISE! to attain the best possible outcome for participants.
In 2010, TCR! participants qualified for the total number of budgeted payments under the contract. Thirty participants were placed into living wage employment during the contract period, and 21 were retained for 12 months during the contract period, for a total of 51 outcomes. TCR! has invoiced the State a total budgeted amount of $455,000 for this activity.
> 10.000
1,001-10,000
TCR! will remain performance-driven through the continuation and expansion of PFP. A detailed ROI review shows that TCR!’s return to Minnesota over the life of the program has been 624%, with a payback period of less than two years. This return comes in the form of income and sales taxes paid, eliminated medical/financial subsidies, and reduced recidivism in the criminal justice system.
This consistent, stable funding source has the ability to extend to other nonprofits, foundations and funding sources that are dedicated to outcomes-based work. The evolution of PFP into the Human Capital Bond funding method will provide systems change in government funding both at the federal and state level, helping fill in the quickly dwindling funding gaps for nonprofits.
State and federal resources for nonprofits are limited and funding is currently capped at the state level for TCR! programming. The combination of the recent economic recession and struggles with state budget approval have meant drastic cuts to organizations. However, is a continued and growing need for resources, particularly in employment and workforce training programs. African Americans in the Twin Cities have the second highest black unemployment rate in the country and are three times more likely to be unemployed than whites at a rate of 20.4%. The PFP model is a proactive and successful way to deal with such funding and supply/demand issues, and needs to be included at the federal level to make significant change. TCR! has been asked to connect and provide input to the Workforce Investment Act bill, a step in the right direction for increased PFP participation.
Despite the numerous local and national supporters of the Human Capital Bond, the initiative cannot proceed without legislative approval. It is included in the Omnibus Government Finance Bill that passed the Minnesota legislature in May 2011. The governor vetoed the finance bill but indicated in his veto letter to the legislature that he was open to the HUCAP provision. The intention is to be included in any agreement fashioned by legislative leadership and the Governor as part of “end game” negotiations, but there is no guarantee of success in this legislative session.
TCR! has a community partner model that is central to its strategy to eliminate poverty in the Twin Cities. Our program is highly effective and has a strong record of success. We are, however, limited by geographical reach and constrained resources. As a result, we have found that strategic partnerships with organizations that serve adults in poverty can be a highly effective way to provide a wider range of services to our participants, and to reach a broader base of people in poverty who would benefit from our program.
Our community partner model is organized around five key areas: Recruitment into TCR!; Referrals for Participant Support Services; Internships and Employment Opportunities; Personal Empowerment training; and Community Event Collaborations. Our internship program has grown from 24 placements in 2008 to 97 in 2010 at 34 different local sites. We estimate 150 internships for 2011.
Additionally, our PFP model would not exist without the partnership with the state and other philanthropic partners who provide funding for our high performance and success of benchmarks. Steve’s Human Capital Bond has garnered collaboration, funding and backing from a variety of nonprofits, foundations, government officials and business leaders who support the pilot program in the legislature.
TCR! receives funding for the Core Program and Empowerment Institute from a combination of philanthropy, which includes individuals and foundations (61%), government grants (18%), and earned income, which includes businesses and nonprofits paying for Empowerment Institute services (20%).
In 2010, State PFP funding equated to $437,000 and foundation PFP contracts were $70,000. Human Capital Bond research and development has been funded with local philanthropy dollars.
The Administration's focus on scaling innovation that works has increased the visibility of our program, which uses an alternative financing model to provide assistance to the hardest to serve. Our highly successful and innovative PFP approach has strong placement, retention and wage advancement for participants with multiple barriers to employment. This PFP model is specifically cited by the House of Representatives in the FY 11 Labor-HHS Appropriations Committee Report as an example of a practice to be replicated by the Administration in its $338 million Workforce Innovation Fund that is designed to scale successful local workforce practices. Our model is also highlighted as a pilot and demonstration project to be replicated by the Department of Labor in pending job training legislation. Pending resolution of the Minnesota budget, Human Capital Bonds may be available for a pilot program soon.
We believe these federal legislative opportunities will allow our alternative financing model to be scaled quickly in other areas around the nation, provided we have adequate seed funding. In an era of declining federal resources for social services programming, our alternative financing model creates significant costs savings to government, while simultaneously increasing the programmatic success in assisting the hardest to serve. Third party evaluations have found that our model has produced a 624% Return on Investment due to reduced societal costs needed to assist our graduates and the subsequent increase in revenue they have created as a result of sustainable employment.
Por favor, selecionar até três por ordem de relevância para seu projeto (maior relevância recebe um "1" e a menor, "3").
Primeiro
Acesso restrito para novos mercados
Necessidade de política de regulamentação
Transparência insuficiente
PFP and Human Capital Bonds unlock access to new and innovative financial markets and funding sources. This allows outcomes-driven nonprofits like TCR! to provide more resources to fighting poverty and unemployment. However, in order to provide these resources, policy support is needed at both the state and federal level. The Human Capital Bond program will be unable to launch without government approval. Policy support is crucial to greater access to skills training at TCR!. Finally, TCR!’s PFP model is key to increasing our transparency. Our outcomes-based funding makes us trusted in the community as an organization that can truly meet benchmarks and succeed. This is necessary to receiving more support for getting our participants out of poverty and into jobs.
Por favor, selecionar até três possíveis caminhos em ordem de relevância para você (maior relevância receberia "1 " e menor "3").
Primário
Influenciando outras organizações e instituições através da disseminação das melhores práticas
Adaptando seu modelo para outros setores / necessidades de desenvolvimento
Both TCR!’s unique anti-poverty program and the PFP funding model can be replicated in other sectors and parts of the State. Our vision focuses on national replication as well. We have received federal support from the DOL and DOJ via demonstration funding focused on expanding our work with men transitioning from incarceration and improving employment outcomes for ex-offenders.. Steve has been working nationally to educate legislators about our PFP model and the Human Capital Bond, based on the high ROI from programs like ours that achieve long-term outcomes that help low income adults exit poverty. Through Steve’s work, these methods are garnering attention nationally and internationally, and could provide innovative funding to outcomes-driven nonprofits and NGOs.
Governo, ONGs / entidades sem fins lucrativos.
Government: TCR! sought a separate state statute to provide an incentive to train people with barriers to employment, and after working with the Minnesota government, the PFP funding model was created. This outcomes-based partnership with the state government has held us accountable to results, provided a new source of income for the program and increased TCR!’s ability to serve Minnesotans in deep poverty.
NGOs/nonprofits: Other nonprofits refer their clients to us, and vice versa, to help support all the needs of people in poverty. These services include internships, housing, health and wellness, chemical dependency support and business attire. TCR!’s PFP model will also benefit any outcomes-based nonprofit or NGO that can demonstrate ROI.