Laurel House Capital Campaign Business Plan

New Safe Haven Center

Business Plan

T H E C A M PA I G N F O R L A U R E L H O U S E

EXECUTIVE SUMMARY Laurel House has been a trusted and respected resource in the Montgomery County community for more than forty years, offering hope and healing to women, men, and children devastated by domestic abuse.

Before Laurel House officially opened its doors in 1980, a handful of women volunteered at a local hotline, offering support and taking battered women and their children into their own homes for shelter and a warm meal.

These courageous women – now referred to as the Founding Mothers – recognized that even in the affluent community of Montgomery County, there was a growing need for a place where victims of domestic abuse could heal, physically and emotionally, in order to rebuild their shattered lives.

Laurel House is the only agency in Montgomery County that provides emergency shelter and housing, as well as a full array of supportive services for domestic abuse survivors and their families.

Now, forty years after the founding of Laurel House, we are thrilled to be relocating and expanding into a brand new space that will combine our shelter and supportive services. While our original shelter has been a safe haven for thousands of families seeking safety, our new building will increase our capacity and accessibility and will provide much needed enhancements in design, security, and amenities.

TODAY, LAUREL HOUSE IS MUCH MORE THAN A SHELTER In addition to shelter services, we offer an array of services and programs to help men, women, and children rebuild their lives. All our services are completely confidential, and the client’s safety is always a priority.

We provide safety planning. In 2019, 1,662 individuals called our 24-hour confidential Hotline, which is answered by highly trained advocates. Having a sensitive and skilled hotline responder is a critical first step towards safety.

•We provide direct services that strengthen families and increase self-sufficiency. Through our Counseling Program, domestic violence victims are provided with therapeutic services from a licensed clinician or a Master Level Intern who is supervised by a licensed clinician. Individual and group sessions are offered.

We provide crisis response. Advocates provide immediate in-person or telephonic support to domestic violence victims when notified by law enforcement or medical professionals. In 2019 advocates responded to 478 crisis calls.

We provide post-shelter transitional housing. To increase the chances of victims being able to separate successfully and permanently from their abusers, the Transitional Housing program offers intensive services for up to two years post shelter.

We educate the next generation. Laurel House strongly feels that education geared towards teens and young adults is one of the most effective tools for reducing domestic violence. During the past 12 months, Laurel House has connected with 7,476 students in middle schools, high schools, and colleges to educate them about healthy relationships and safe dating.

We provide specialized services to help transform domestic violence victims into survivors, and we strive to be a catalyst to help bring about the end of domestic violence in our community.

WHY GROW? WHY NOW? While government and private foundation grants, special events, and donor funding sustain our current operations, the cost of maintaining the Shelter in a building that is over 100 years old continues to increase each year. The building’s steep stairs and narrow hallways make it difficult for many to navigate, making it difficult to comfortably accommodate residents with special needs. It does not have private space for the advocacy and counseling services that are essential to helping victims and their children heal. While Laurel House’s current Shelter provides safe haven for many victims of domestic abuse and their children each year, we can and must do better.

New Safe Haven Center Flexible, ADA-compliant design of its living quarters to provide safe, comfortable, and accessible rooms 12 bedrooms designed in such a way that we will be able to easily accommodate both large and small families, single adults, and residents with special needs Communal kitchen, dining area, pantry, and library On-site victims’ services and staff offices Multi-purpose room for support groups and other meetings, along with a dedicated children’s room Private counseling offices Adult and children’s TV rooms adjacent to each other ADA-accessible, elevator 2nd floor will consist primarily of offices, common living space, storage and one bedroom connected with an ADA bathroom 3rd floor will consist primarily of bedrooms, bathroom, and storage space for personal items

A Continuum of Services under One Roof Clinical Counseling - The ground floor of the new building will have four offices specifically designated for individual and group counseling.

These offices will expand the availability of counseling for shelter residents and other residents in the greater North Penn community.

Crisis Response - This service is provided through our DART (Domestic Abuse Response Team) program. This program is available 24/7 to respond to and support victims of domestic violence. The program operates out of the Administrative and Outreach offices during the weekday; on nights and weekends, advocates work remotely. In this new building, there will be space to provide DART Advocates a safe space to meet with a victim and work on-site.

Case Management - Many clients are receiving several different types of services. Having most of those services located under one roof ensures comprehensive case management and causes less stress for the client.

Legal Services - The increased office and meeting space will ensure that shelter residents and clients have a private area to consult with our staff attorney on-site.

Children’’s Program - The ground floor of this new space will include a children’s room staffed by a Children’s Advocate and welltrained volunteers. This room will be available to children living in the Shelter and to those who come with a parent who has an appointment with a counselor. The second floor will include a Children’s TV Room and a library for homework and parent/child reading activities.

24-Hour Hotline - The Hotline will continue to be staffed by trained advocates 365 days a year and will be based within the Safe Haven Center. It will have its own dedicated space, ensuring no distractions for the advocate so that their only focus is listening to the caller.

FINANCIAL ANALYSIS AND DUE DILIGENCE

SUMMARIZED FINANCIAL STATEMENTS Statements of Financial Position

Cash and cash equivalents Grants, pledges, and contributions receivable, net Investments Prepaid expenses and other assets Property and equipment, net

June 30, 2020, 2019, and 2018 2020 2019 2018 $2,135,372 275,350 1,421,368 72,010 1,609,063

$1,591,990 316,405 1,467,664 110,376 918,173

$1,542,239 178,928 1,405,459 60,319 961,854

Total Assets $5,513,163 $4,404,608 $4,148,799

Accounts payable, accrued expenses, and $231,456 $187,091 $154,413 accrued wages Mortgages payable 299,920 300,900 301,880 Time note payable 500,000 - Loans payable 506,349 - Deferred lease incentive 79,738 97,793 115,847 Deferred revenue 31,285 1,000 175 Deferred rent 35,226 35,148 32,356

Total Liabilities 1,683,974 621,932 604,671

Net assets without donor restrictions 2,680,854 2,701,880 2,368,918 Net assets with donor restrictions 1,148,335 1,080,796 1,175,210

Total Net Assets 3,829,189 3,782,676

Total Liabilities and Net Assets $5,513,163 $4,404,608

3,544,128 $4,148,799

Statements of Activities

Years Ended June 30, 2020, 2019, and 2018

2020 2019 2018

Support and Revenue Grants $1,354,370 $1,305,951 $799,891 Contributions 1,173,182 853,632 1,074,013 Mortgage Forgiveness 980 980

980 Special fundraising events 230,370 374,294 350,946 Service revenue 2,116 2,064 3,946 Transitional housing 11,517 8,200 5,937 Thrift shop 376,098 492,511 435,291 In-kind contributions 130,600 191,069 109,279 Other income - 17,278

Total Support and Revenue 3,279,233 3,245,979 2,780,283

Expenses Program services:

Nonresidential 1,911,774 1,836,198 1,404,460

Residential housing 695,099 638,579 646,970 Support services:

Management and general 360,515 342,435 314,124

Fundraising 248,781 180,680 158,539

Special fundraising events 18,476 43,088 61,888

Fundraising - thrift shop 79,822 76,677 70,622

Total Expenses 3,314,467 3,117,657 2,656,603

Change in Net Assets from Operating Activities (35,234) 128,322 123,680

Other Income

Investment returns, net of fees 81,747 110,226 49,216

Gain on sale of building - - 80,211

Total Other Income 81,747 110,226

Change in Net Assets $46,513 $238,548

129,427 $253,107

Statements of Cash Flows

Years Ended June 30, 2020, 2019, and 2018

2020 2019 2018

Cash flows from operating activities $295,023 $105,627 $330,278 Cash flows from investing activities (757,990) (55,876) (152,008) Cash flows from financing activities 1,006,349 -

Net increase in cash and cash equivalents $543,382 $49,751 $178,270

CONSTRUCTION BUDGET/START UP COSTS The overall goal for the use of this pledge or gift is to fund the acquisition and rehab costs of the Safe Haven Center.

Accordingly, the funds may be used, at the discretion of Laurel House, to pay for expenses incurred for the facility, including the repayment of indebtedness. Any contributions received in excess of the amounts needed for the designated project will be used for the general operating costs of Laurel House.

Project Costs Estimated Project Costs $3,304,900 Estimated Interest Expense 145,000

Total Project Costs 3,449,900

Sources to fund estimated costs:

Capital campaign cash balance $720,000

RACP Grant 1,000,000

PHARE Grant 250,000

Pledges & Donations awarded to date 307,000

$2,277,000 Borrowing availability:

Fulton Loan $1,400,000

Haverford LOC borrowing capacity 500,000

$4,177,000 Uses:

Acquisition of building $625,000

Construction and rehabilitation 1,886,000

Contingency 200,000

Financing costs 21,000

Professional fees:

Legal

50,000

Architect 26,000

Project management fees 194,500

Taxes, licenses, and fees:

Transfer tax

6,250

Licenses and permits 2,000

Engineering and inspection 25,000

Land title services 4,150

Survey

6,000

Appraisal

9,000

Furnishings, security system, miscellaneous 250,000

Estimated Project Costs

$3,304,900

CURRENT FACILITY COSTS VS. FUTURE Current Facility New Facility

Increase in Sq Ft % Increase in Sq Ft

6,000 sq ft 8,600 sq ft 2,600 43%

Facility Operating Costs (Annual)

Current Facility New Facility Utility Costs:

Electric

$10,000 $20,000 Water and sewer 4,000

8,000 Phone 10,000

10,000 Cable 800

800

24,800

Other Services:

Trash collection 4,000

Pest control 5,000

Security 1,000

Cleaning 2,000

38,800 4,000 3,000 2,000 4,000

12,000

13,000 Repairs and Maintenance:

General maintenance, repairs, 15,000

5,000

and capital improvements

Elevator contract

6,000

HVAC maintenance

4,000

Grounds and snow removal

5,000

15,000

Insurance 10,000

Licenses and permits

600 Total Facility Operating Costs

$62,400

Annual increase

Monthly increase

20,000 15,000 1,500 $88,300

$25,900 $2,158

Sources to fund increased costs of new building: Laurel House’s Board of Directors are committed to allocating general operating funds and special event revenue to ensure a balanced budget each year.

BOARD OF DIRECTORS Co-President: Colleen F. Coonelly, Esq. Karianne Tomosky, CPA Co-Vice President: Jacqueline L. Allen Brian Taylor Treasurer: Jason VanBuskirk, CPA Secretary: Robert Rau Penny Satell Berman Lynn Doerr Dana Greenspan, Esq. Mary Griffith-Alfarano Angela Ko, CPA Kathryn Koller Dr. Colleen Lelli Richelle Payne Melissa Pilong Duncan Reed Diana Scott Patricia Younce, Esq.

P.O. Box 764 • Norristown, PA 19404 Office: 610-277-1860 • 24 Hour Hotline: 1-800-642-3150 www.laurel-house.org

The mission of Laurel House is to: Advocate for and empower those impacted by domestic violence by providing crisis intervention, safe haven, supportive programs, and resources Advance social change through preventative education, community training, and collaboration to foster a coordinated response to domestic abuse

Laurel House is a not-for-profit, tax-exempt, charitable organization as defined under the Internal Revenue Service code section 501c(3). Tax exemption entity ID 232172743. Please consult with your professional tax advisor as to what deduction may be available to you. The official registration and financial information of Laurel House may be obtained from the PA Department of State by calling toll-free within Pennsylvania 1-800-732-0999. Registration does not imply endorsement.