CrossPurpose 2021 Stakeholder Report Q1

2021 STAKEHOLDER REPORT Q1

TABLE OF CONTENTS 03

Our Update

04

Progress Report

06

Organizational Goals

08

Gwenivere's Story

09

Monthly Financials

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OUR UPDATE Someone once told me, “If you live life on the edge of faith, you’ll always be desperate for God to show up.” That’s certainly how we felt when we founded this ministry 12 years ago, and it still rings true today.

We’re on the brink of expanding from one to four locations as outlined in our five year plan. The uncharted territory ahead leaves me desperate for God to show up and provide for what we need in terms of new space, executing tasks, hiring staff, and raising capital. He’s already done it in Englewood; Wellspring Church blew us away when they offered to donate a space for us to open our South Metro location later this year.

Looking back on the last quarter, there are many organizational wins that we celebrate and praise God for. Throughout the rest of this report, I’ll highlight these wins as well as areas of growth using the four tenants I learned from Scaling Up by Verne Harnish: people, strategy, execution, and cash.

I hope you’ll sense my excitement for what’s to come and my gratitude for the part you play in making it all possible.

Sincerely,

Jason Janz, CEO

“If you live life on the edge of faith, you’ll always be desperate for God to show up.” stakeholder report q1 | Page 03

PROGRESS REPORT PEOPLE

I recently read a piece about how Reed Hastings, the CEO of Netflix, relies on the “rock-star principle” to determine his hiring strategy. By hiring the best talent and paying them competitively, he is able to retain high caliber employees who are satisfied with their jobs, thus creating a lower turnover rate.

Our staff are the absolute cream of the crop, and I’m so thankful for them. However, finding these “rock-stars” often takes more time and effort than settling for average employees. As we look to fill several open positions, I ask for your partnership in providing referrals for any qualified individuals who you think might be a great addition to our team.

Career Coach Program Director Chief Development Officer Easy Access & Program Coaching Coordinator If you would like to refer a candidate for any of these positions, please contact Brian Anderson, at banderson@crosspurpose.org .

One of the ways we care for our employees is through a recent update to our compensation structure. As an executive team, we were pleased to roll out this change in December that offered more possibilities for bonuses and complete transparency on our pay structure.

One of our growing teams is our Alumni Department. We're excited to have this talented group support our graduates! From left to right: Taryn Gawronski, Alumni Career Coach, Karen Genzink, Director of Alumni Services, Ron Saccomano, Director of Change Agency, Destiney Huff, Alumni Administrative Assistant, & Darin Valdez, Alumni Career Coach.

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PROGRESS REPORT STRATEGY

It’s hard to believe that it has been over a year since we’ve had Leaders onsite to participate in our program. Starting in May 2021, we will get to open our doors to in-person learning for the first time, and I can’t wait! There’s something special about interacting with all of our neighbors and building relationships in person.

We’ll still follow state guidelines regarding masks and social distancing as long as needed, doing whatever it takes to keep our neighbors safe and connected.

Unfortunately, some of our Community Partners have been vocal about their hesitation to refer people to an in-person program, so we’ve had to lean more heavily on other methods of recruitment to compensate. As of April 15, we are still looking to add more applicants and enrolled Leaders to the upcoming class.

One of our partners recently posed the question, "Is $17/hr enough to get someone out of poverty?"

Ongoing research by Juan Peña, Chief Innovation Officer, shows that our wage goals are successfully mitigating the cliff effect for the overwhelming majority of our Leaders.

87% of our Leaders live in a household size that will no longer be in poverty with a $17/hr wage. That is, the vast majority of CrossPurpose graduates will be able to report a net positive income, even after going off of government benefits.

We will continue to work to increase wages for the larger families in our program through strategic training and Alumni support.

The March 2021 federal jobs report also provided some unexpected good news. Unemployment dropped to just 6% nationwide, meaning a greater number of job opportunities are available to our Leaders.

As we look farther down the road, several potential partners have already reached out to about possible locations for our expansion. Beyond Englewood, several churches in the Aurora and Northglenn neighborhoods have expressed interest in providing a free or low cost space to us.

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PROGRESS REPORT EXECUTION

To help the scaling process, a team of experts from a company called House of Revenue has offered to consult with us. They’ve guided 100 businesses in scaling over the past several years, and they’ve already been a huge help in systemizing our recruitment process, customer journey, and marketing efforts.

We are abundantly grateful for the space that Wellspring Church has donated for our Englewood location. Our goal of a soft opening this September puts us on a tight timeline to finish the renovations we want to make. We also have approximately $500k left to raise in order to make those renovations possible.

CASH

At CrossPurpose, our goal is to always maintain at least 60 days of operational cash on hand outside of our reserve fund. We are meeting this goal, along with operating 25% under our projected YTD expenses. While some significant commitments were made in the past 30 days, we are falling short of our expected YTD income until we receive them.

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ORGANIZATIONAL GOALS Each quarter, we review the status of our annual goals. Here's a snapshot of where we stand.

No. 01 — Economic Growth

Graduate 165 Leaders with an average wage of $17/hr.

1st Cohort began Feb 3rd. 2nd Chort begins May 3rd.

No. 02 — Development

Raise $5.25 million for operations and raise $500,000 to launch endowment.

Operations Endowment Launched in January. Fundraising to begin in Q2.

No. 03 — Expansion

Hire and train third program team, launch a second location and identify a third location.

Program Team Hired & Trained Second Location Preparation to Launch Third Location Identified (3 possibilities) No. 04 — Staffing

Design and execute a successful strategy to attract, hire, onboard and train 15 new employees (50% ethnic minorities) and retain 80% of our diverse, high-quality team.

Minority Representation (Progress to Goal) New Employees Hired (Progress to Goal) No. 05 — Retention

Increase graduate retention rate to 75% employed after 6 months and 65% employed after 12 months.

6 Months (Progress to Goal) 12 Months (Progress to Goal) stakeholder report q1 | Page 07

ORGANIZATIONAL GOALS No. 06 — Replication

Create a replicable organization with training systems, pathways, and materials for all departments.

No. 07 — Relational Growth

Outline & implement a robust strategy to attract, recruit & train 75 allies to walk alongside Leaders.

No. 08 — Spiritual Capital

Develop 2 church networks to support CrossPurpose locations in NE Denver and South Metro.

NE Denver South Metro

Friends, We appreciate you for contributing your time, talent and treasure for the flourishing of our neighbors. We invite you to reach out and speak into our progress so that we can continue to become better in loving our neighbors and impacting our city.

Thank you!

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MISSIONAL DASHBOARD TOTAL GRADUATES

TOTAL PEOPLE OUT OF POVERTY

472

1180

Last Updated: 2021 Q1

2020 ANNUAL WEALTH GENERATED

$9.1M ALUMNI RETENTION

TOTAL ALLIES

TOTAL FAMILY SIZE

453

2,850

79% AVERAGE ALUMNI WAGE

$17.33 LAST 12 MONTHS: GRADUATES & AVERAGE WAGE C2 - 23 GRADUATES

C4 - 35 GRADUATES

$16.91 AVG WAGE

C1 - 27 GRADUATES

C3 - 34 GRADUATES

$17.38 AVG WAGE

2020 GRADUATES

119

$18.26 AVG WAGE

$16.86 AVG WAGE

COHORTS GRADUATED SINCE 2012

23

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GWENIVERE'S STORY

Gwenivere, a 2021 graduate, wasn’t satisfied with a life of limitations. Finances prevented her from enrolling in any form of higher education, but her family encouraged her to persist in finding an option that would work for her.

In the program, she quickly absorbed professional skills as she pursued the Medical Assistant track. More importantly, she experienced the impact of transformational relationships with her peers and CrossPurpose Coaches. “There was always someone cheering me on, at every little achievement,” she says. “It’s an important thing to know someone is proud of you, and CrossPurpose gives that to everyone.”

After graduating, she described the excitement of working in a career she truly cared about, “Every day I help people to get the care they need and provide support to the health of my community. This career is also rewarding to me as an individual, as I now have the monetary stability to continue to progress into higher education and support myself.”

Gwenivere credits CrossPurpose with giving her the opportunity to realize the future she imagined. She says, “Without CrossPurpose, I would’ve been in years’ worth of debt to achieve the necessary education for my position....Overall, CrossPurpose gave me a path to improve my life, and I’m very grateful.”

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Profit & Loss Budget vs. Actual January through March 2021 Jan - Mar 2021 Income 4000 · Contributions 4001 · Individuals 4002 · Churches 4003 · Businesses 4004 · Foundations 4005 · In Kind Donations Total 4000 · Contributions 4400 · Government Grants 4500 · Program Income 4700 · Other Income Total Income Gross Profit Expense Personnel 5000 · Salaries & Wages 5100 · Benefits 5200 · Employer Payroll Taxes Total Personnel Operations 6001 · Audit 6002 · In Kind Donations Expense 6003 · Office Supplies 6004 · Printing and Copying 6006 · Uncategorized Expenses 6007 · Technology 6200 · Fees 6300 · Insurance 6400 · Fund Development 6500 · Occupancy Expenses 6508 · Depreciation Expense 7001 · Program Promotion 7002 · Assessments 7003 · Background & Drug Test 7004 · Materials & Supplies 7005 · Adjunct Teachers 7006 · Stipends 7007 · Relief Fund 7008 · Program Counseling 7009 · Education Fund 7010 · Program Events 7011 · Childcare 7012 · Food & Meal Supplies 7013 · Facility Rental 7016 · Program Contingency 7017 · Transportation & Travel 7100 · Organizational Culture Total Operations Total Expense Net Income

YTD Budget

Variance

% of Budget

Annual Budget

69,164 4,050 538 429,211 46,560 549,523 140,564 3,080 1,859 695,026 695,026

92,500 125,550 72,275 771,968 46,560 1,108,853 115,000 1,500 1,615 1,226,968 1,226,968

(23,336) (121,500) (71,737) (342,757) 0 (559,330) 25,564 1,580 244 (531,942) (531,942)

75% 3% 1% 56% 100% 50% 122% 205% 115% 57% 57%

370,000 502,200 289,100 3,087,870 186,240 4,435,410 802,130 6,000 6,460 5,250,000 5,250,000

520,003 47,912 33,920 601,835

590,034 71,026 45,138 706,198

(70,031) (23,114) (11,218) (104,363)

88% 67% 75% 85%

2,385,162 289,726 182,465 2,857,354

0 46,560 2,107 5,648 1,102 36,769 62,299 6,807 2,237 13,992 93,708 16,452 2,188 5,125 17,640 5,766 44,760 4,013 2,040 30,950 48,106 0 3,545 0 0 1,019 74,677 527,510 1,129,345 (434,319)

6,650 46,560 3,387 5,948

(6,650) 0 (1,280) (300)

0% 100% 62% 95%

13,300 186,240 13,550 25,328

(20,223) 27,124 (4,340) (6,763) (6,449) (4,392) (22,135) (3,332) 100 (3,396) (434) (26,314) (2,237) (1,641) (25,435) 29,036 (3,000) (6,235) (600) (21,329) (2,331) 14,180 (97,274) (201,637) (330,305)

65% 177% 61% 25% 68% 96% 43% 40% 102% 84% 93% 63% 64% 55% 55% 252% 0% 36% 0% 0% 30% 123% 84% 85% 418%

132,768 132,020 48,311 60,000 76,578 392,400 165,647 24,900 22,545 44,170 19,300 323,294 29,750 14,725 224,804 57,550 23,450 61,957 2,200 85,315 12,556 199,988 2,392,646 5,250,000 0

56,992 35,175 11,147 9,000 20,441 98,100 38,587 5,520 5,025 21,036 6,200 71,074 6,250 3,681 56,385 19,070 3,000 9,780 600 21,329 3,350 60,497 624,784 1,330,982 (104,014)

Notes

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Profit & Loss Page 1 of 2

Profit & Loss Budget vs. Actual January through March 2021 Jan - Mar 2021 1 2 3 4 5

YTD Budget

Variance

% of Budget

Annual Budget

Notes

Multiple committed contributions anticipated Under budget due to new hires timing and outsourcing Over budget due to outsourcing and restricted funds expenses Over budget due to restricted funds expenses Over budget due to outsourcing

Profit & Loss Page 2 of 2

Balance Sheet As of March 31, 2021

Mar 31, 2021 ASSETS Current Assets Checking/Savings 10000 · CP Operating 10100 · CP Restricted Funds 10200 · CP Reserve Funds Total Checking/Savings Accounts Receivable Total Current Assets Fixed Assets Other Assets 18300 · Investments Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Credit Cards Other Current Liabilities Total Current Liabilities Long Term Liabilities Total Liabilities Equity 31500 · Net assets with restriction 32000 · Net assets without restriction Net Income Total Equity TOTAL LIABILITIES & EQUITY 1

1,089,849 1,846 1,110,484 2,202,179 117,337 2,319,516 2,315,794

Notes

1

170,030 170,030 4,805,340

76,533 25,741 100,914 203,188 867,856 1,071,044 144,873 4,023,744 (434,320) 3,734,297 4,805,341

Includes $144,873 of restricted funds

Balance Sheet Page 1 of 1

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