Orange County United Way Community Report 2017

UNITED WE FIGHT UNITED WE WIN 2017 Annual Report

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BOARD OF DIRECTORS Orange County United Way is a 501(c)(3) charitable organization led by local business and community leaders who strategically guide our work.

OFFICERS Ian Leisegang* Chair 3Spoke Capital

Diane Brooks Dixon Councilmember, District 1, City of Newport Beach

Steve Churm* Vice Chair FivePoint Holdings, LLC

Michael Feldman Union Bank

Suzanne Fradette* Treasurer PricewaterhouseCoopers LLP Timothy S. Clyde* Secretary Katzkin Leather Susan B. Parks* President & CEO Orange County United Way Ben Alvarado Financial Services Executive Lawrence R. Armstrong Ware Malcomb Sherri Bovino 1st Flagship Company Nicole Carrillo Hall Loan Depot

Adrian S. Griggs Pacific Life Insurance Co. Jeff Hittenberger Orange County Department of Education Sandra Hutchens Orange County Sheriff’s Department Michael A. Johnson Automobile Club of Southern California Jacqueline A. Brya Kelley Ernst & Young LLP Joan P. Kelly Psomas Robert E. Kent* Key Information Systems

David G. Meulmester KPMG LLP Ethan Morgan J.P. Morgan Tam Nguyen Advance Beauty College Adey Nyamathi University of California, Irvine Shirley Quackenbush Merrill Lynch Mike Ruane National Community Renaissance Scott Sampley Enterprise Holdings James J. Scheinkman Snell & Wilmer LLP David Schiegoleit U.S. Bank Private Wealth Management

Keith Kobata Wells Fargo Bank

Ernest W. Schroeder Schroeder Investment Partners, Inc.

Nanda Kumar Cheruvatath Eaton

John F. Simonis Paul Hastings LLP

Ken Lickel* Community Volunteer

Candice Stack Whitten PIMCO

Karen D. Conlon Sequoia Grove Consulting

Paula Mattson Edison Energy, LLC

John E. Stratman, Jr. Kaiser Permanente

Tom Cuce UPS

John P. McGrath, PhD Edwards Lifesciences

John Valenta Deloitte Advisory

Martha V. Daniel IMRI

Bill Mecklenburg SES Insurance

Antonella Aloma Castro Real Estate and Business Attorney Victoria Collins Community Leader/ Philanthropist

WE FIGHT FOR THE EDUCATION, AND FINANCIAL STABILITY OF IN ORANGE COUNTY. *Executive Committee Member

2017

TODAY’S UNITED WAY Even here in Orange County, a community known for privilege, we face tough challenges. Families lack adequate income for housing. Without stable homes, children struggle in school or drop out.

People are hungry and need help to live healthier lives. These challenges are interconnected and they affect every one of us. United Way is fighting to break the cycle.

With so much to fight for, it has never been more important to win. The unique value of today’s Orange County United Way is in how we fight and how we deliver these wins.

• As an impartial, countywide non-profit, we, with the community, identify Orange County’s toughest, interconnected issues. For example, the myths and lack of understanding about homelessness spurred us to co-commission a groundbreaking study that quantifies costs and identifies causes of homelessness. Its recommendations are guiding local decision makers and funders on this critical issue.

• We bring together people and partners from across all sectors who are willing and able to join the fight. We’re promoting cooperation, longlasting change and improving the health of local youth through our Healthy Schools Initiative, a collaboration between the Alliance for a Healthier Generation, the Orange County Department of Education and other community partners.

• We have the experience to innovate. Where processes are broken, we fix them. When we find a gap, we fill it. Programs like Destination Graduation and Youth Career Connections prepare

future workers for the demands of the workplace.

With more and more jobs in California requiring post-secondary education, it’s vital for students to earn a degree.

• We develop new programs, strategic initiatives and collaborative solutions. We run them efficiently and effectively. SparkPoint OC was born from the need to provide financial coaching and empowerment to hardworking families. The program, which has expanded to neighborhood schools for convenience, has served 1,959 clients.

Graduates have collectively erased $1.6 million in debt and saved $500,000.

• Finally, we drive to the finish line. We work with top local partners and hold them—and ourselves— accountable for results.

I am honored to lead an organization with these strengths. We do more than raise money—we maximize our proven approach and independent position to tackle the issues that matter most in our community. United, we made a difference in the lives of children and families in Orange County this year. United, we will fight and win for our next generation as well.

Thank you,

Susan B. Parks President & CEO

HEALTH, HOUSING EVERY PERSON

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UNITED WE FIGHT

2017

UNITED WE WIN 

HOW WE DO IT

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ORANGE COUNTY’S PROBLEMS ARE COMPLEX AND INTERCONNECTED.

THIS YEAR, WE MADE MEASURABLE PROGRESS TOWARD OUR FACE 2024 GOALS.

For substantial and sustainable change, we must address all four issues. We can’t focus only on education for a child who is hungry and doesn’t have a home. Here in Orange County, finding a job doesn’t always mean a parent can support a family. Considering the long-term effects of these issues on every one of us, an integrated approach is key.

Our 10-year, communitywide action plan is focused on long-term solutions to these critical challenges.

Since its inception in 2014, FACE 2024 has helped us mobilize the caring power of our community to Fund, Advocate, Collaborate and Educate to transform lives and reach these goals.

2,000+

OC students drop out per year, each causing $300,000 in negative financial impact*

Cut the

27,000

high school

dropout rate

children and families are homeless or housing-insecure

in 1/2

Increase

the number of

healthy youth by 1/3

Cut the percentage of

homeless and housing-insecure children in 1/2

1/3

of our children are overweight or obese

* Sum, A., Khatiwada, I., McLaughlin, J., & Palma, S. The consequences of dropping out of high school: Joblessness and jailing for high school dropouts and the high cost for taxpayers. Boston, MA: Center for Labor Market Studies, Northeastern University.

1 in 4

of our residents live in poverty

Reduce the

percentage of financially unstable families by 25%

2017

MORE THAN A FUNDRAISER, OUR DIFFERENCE IS IN HOW WE APPROACH THE FIGHT.

UNITED4OC, WE’RE TURNING THIS FIGHT INTO A WIN FOR EVERYONE.

To make change, we must band together. Working with community members as well as local business, non-profit and government leaders, this year we created and managed multifaceted projects that impacted lives across our county. Our expertise and passion combine with an approach that is innovative, integrated, change-focused and accountability-driven.

For our donors, we’re accountable by running an efficient organization with accuracy and integrity. For our partners, we bring the best people and resources together, running essential programs and services with inspirational goals and results. Most importantly, for Orange County’s children and families, we’re creating a stronger community where everyone has access to a quality education, a sustainable income, better health and stable housing—the building blocks for a good life.

In its seventh year, Destination Graduation increases high school completion rates. Students receive academic and social support while exploring exciting career experiences and discovering college opportunities.

The new Youth Career Connections program links students with future employers, uniting classroom learning with career possibilities and a mentoring and support network.

Early-grade reading programs, like web-based virtual tutoring, help young students from low-income neighborhoods improve skills and comprehension, paving the way for school success.

To support access to healthcare coverage for everyone in Orange County, we lead Covered OC, a collaboration of agencies and representatives that educates and assists residents to utilize insurance.

The Healthy Schools Initiative emphasizes more opportunities for fitness and nutrition for students and their families, hand in hand with policy change.

Our Healthy Food Provision program matches partners with excess food to local pantries and shelters. Plus, we distribute fruits and vegetables to families and seniors through various distribution channels, like school and community pantries.

Financial coaching and other support for homeless families ensures that children stay in the same school and that their education is not interrupted.

Rapid Re-Housing moves families from homelessness into permanent homes. This program speeds them toward self-sufficiency, avoiding transitional housing or shelters.

SparkPoint OC is the key to a secure financial future for many local families. As they learn budgeting and fiscal planning skills, they’re empowered by dedicated coaches.

With OC Free Tax Prep, low-income residents learn about opportunities for refunds and credits. Volunteer tax preparers at convenient locations assist filers to claim Earned Income Tax Credits they may otherwise miss out on.

Training and education for placement in higher-wage jobs with promising career paths is the goal of our innovative workforce development programs.

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EDUCATION When students start strong, their lives are better in the long term. And when they graduate and get good jobs, it’s better for our community too. Decreasing the dropout rate can lead to higher wages, reduced reliance on social services and less crime. This year, our new Youth Career Connections program strengthened the link between students, local businesses and opportunities for a successful future. Complementing Destination Graduation, an academic and social support program that prepares high schoolers for graduation and college, Youth Career Connections enriches classroom instruction with real-world experiences, culminating in a summer internship.

This year, interns were guided by industry professionals in the workplace. One CEO mentor noted that Youth Career Connections didn’t only benefit the intern; he also gained insights into the next wave of future leaders.

WE FIGHT FOR EVERY STUDENT TO GET THE QUALITY EDUCATION THEY DESERVE.

2017

SPOTLIGHT

DAVID David was just four when his family arrived in the United States. The kids at school picked on him because he didn’t speak English, but that made him work even harder. At Westminster High School, David joined Destination Graduation when he learned the United Way program could help him become the first in his family to go to college.

He and his classmates had different backgrounds and abilities, and they were all trying hard to reach the same goal.

At the end of four years, he graduated magna cum laude, proudly wearing a red cord as he walked to receive his diploma.

David is now studying for a teaching credential at CSULB and plans to return to work at his high school as he earns his master’s degree.

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HEALTH Children who eat better, drink more water and are more physically active achieve higher test scores in school. They also have a better chance to grow up to become healthy adults. But they need help to do it from parents, teachers and advocates, like United Way and our partners.

Launched this year, the Healthy Schools Initiative is a collaborative effort that’s empowering greater student well-being with three strategies: promoting and providing healthier choices for food and beverages, such as hydration stations that offer great-tasting water over sugary drinks; increasing opportunities for physical activity and safe play; plus, advocating for policy and systemic changes to sustain these benefits.

WE FIGHT FOR EVERY CHILD TO GROW UP HEALTHY AND STRONG.

2017

SPOTLIGHT

SILVIA “In the last two years, our rent increased by $400 a month. There were times we needed milk, but had no money to buy it.” For Silvia and her husband, work has been hard to come by. He works at a warehouse, some weeks only getting four days of work. She has a part-time job at a clothing store. But with three children, including one in college, supporting a family in Orange County is getting tougher and tougher. That’s where United Way’s Healthy Food Provision program steps in, reducing barriers by providing access to healthy foods. The fresh fruits and vegetables Silvia brings home are priceless to her kids’ health.

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HOUSING Where once the challenge focused mainly on helping children without a roof over their heads, today the housing crisis in Orange County is much more complex. Scarcity of affordable homes means that even working families can be at risk. Those with shelter may be living in motels, cars or sharing crowded quarters. As one part of our interconnected approach to tackle this many-sided problem, we co-commissioned a 2017 research report with UC Irvine. Homelessness in Orange County: The Costs to Our Community is the most comprehensive study of its kind in the nation. It includes key findings, analysis and recommendations for collaboration and action.

To learn more about the cost study and the new United to End Homelessness Initiative, visit UnitedtoEndHomelessness.org.

WE FIGHT FOR EVERY CHILD AND THEIR FAMILY TO THRIVE IN A PERMANENT HOME.

2017

SPOTLIGHT

ALICIA Alicia was strong enough to live in her car with her son for a year. She sent him off to fourth grade each day, after brushing their teeth with water bottles and bathing with baby wipes. But she couldn’t go on forever this way and worried that her son’s education would be affected. United Way’s Rapid Re-Housing partnership was their solution. With a roof over their heads, beds and showers, Alicia says they got their dignity back. Now she has a full-time job and says, “I am living with humility and gratitude, and the strength of knowing we will never be homeless again.”

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INCOME For some people, it starts as a small setback, like getting laid off. But in Orange County, where rents are high and more and more jobs come without benefits, the situation can quickly snowball. Financial hardship can lead to burdensome debt and put strains on the health and well-being of the entire family. United Way programs like SparkPoint OC are responding.

For the past five years, mentors have coached clients as they learn to budget, pay off debt and develop saving strategies. Classes and meetings are held at locations that are practical for families, such as neighborhood elementary schools. For many clients, it’s the first time they’ve felt prepared for a long-term, financially stable future.

WE FIGHT FOR THE FINANCIAL STABILITY OF EVERY FAMILY.

2017

SPOTLIGHT

DEYSI When Deysi was referred to SparkPoint OC, she had been homeless for two weeks.

Living on the streets or in motels was hard for her, but it was even worse for her four children. Deysi had to do something fast.

United Way’s SparkPoint program found temporary housing for the family, and the program case manager helped Deysi set financial goals. She started working and soon was able to buy a car. Deysi filed her income taxes for free through the program, using her refund to pay off debt and add $2,500 to savings. Deysi is excited for the future, explaining, “I’ve learned a lot. SparkPoint has benefited my children too. I look forward to moving into my own apartment and having our own place to call home.”

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365 LOCAL CORPORATIONS

JOINED OUR FIGHT BY RUNNING A CORPORATE GIVING CAMPAIGN More than 250 local influencers joined our Orange County Tocqueville Society, an exclusive alliance of philanthropists who donate $10,000 or more annually.

THANK YOU, PARTNERS, DONORS AND VOLUNTEERS

Automobile Club of Southern California received Orange County United Way’s Dimensions in Giving award, recognizing the corporate partner that truly impacts Orange County through the most dollars raised for United Way’s Community Impact Fund, active community service and an overall commitment to advancing education, health, housing and financial stability through contributions of time, leadership, resources and a spirit of giving.

2017

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$200,000 grant to support our Destination Graduation program.

$250,000 grant to expand our OC Free Tax Prep Campaign.

The Siemer Institute for Family Stability granted $250,000 for our SparkPoint OC program, supporting financial literacy for parents.

$16,751,788

PROGRAM SUPPORT

+

$15,913,527

OC FREE TAX PREP REFUNDS

$33,901,932

+

$1,236,617 EMERGENCY FOOD AND SHELTER DISTRIBUTIONS

VALUE TO OUR COMMUNITY

The Women’s Philanthropy Fund Breakfast raised hearts, spirits and $425,000 to change the lives of women and children.

ORANGE COUNTY UNITED WAY

VOLUNTEERS CONTRIBUTED

27,675 HOURS

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38,140

353

CHILDREN BENEFITED FROM GUIDED PHYSICAL ACTIVITY

EARLY-GRADE READERS REACHED KEY MILESTONES

292

CLIENTS WITH CHILDREN ON THE BRINK OF HOMELESSNESS RECEIVED FINANCIAL COACHING AND OTHER SERVICES TO STAY HOUSED

DIFFERENCE UNITED, ACROSS ORANGE COUNTY THIS YEAR WE MADE A MEASURABLE

18,000 INDIVIDUALS WERE SERVED BY THE OC FREE TAX PREP CAMPAIGN, RETURNING $16 MILLION IN FEDERAL AND STATE REFUNDS TO LOCAL FAMILIES

630

STUDENTS EXPERIENCED WORK-BASED LEARNING IN OUR NEW YOUTH CAREER CONNECTIONS PROGRAM

7,528 CHILDREN AND THEIR FAMILIES RECEIVED NUTRITION EDUCATION

512

2017

ADULTS PARTICIPATED IN FINANCIAL LITERACY PROGRAMS

4,017 29,845 SENIORS, VETERANS, HOMELESS AND AT-RISK YOUTH, INDIVIDUALS AND FAMILIES WITHOUT ACCESS TO HEALTH CARE RECEIVED EMERGENCY SUPPORT

STUDENTS PARTICIPATED IN COLLEGE AND CAREER READINESS PROGRAMS AND DEMONSTRATED AN INCREASED COMMITMENT TO SCHOOL WITH BETTER ATTENDANCE AND BEHAVIOR

742,959 INDIVIDUALS WERE SERVED THROUGH OUR HEALTHY FOOD PROVISION PROGRAM

DESTINATION GRADUATION PARTICIPANTS ACHIEVED A

99% 83 ON-TIME HIGH SCHOOL GRADUATION RATE

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FAMILIES MOVED INTO PERMANENT HOUSING WITH THE HELP OF RAPID RE-HOUSING

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FINANCIALS IN 2017, ORANGE COUNTY UNITED WAY RAISED $16,751,788 TO CHANGE THE LIVES OF CHILDREN AND ADULTS ACROSS OUR COMMUNITY. REVENUE SUPPORT

$16,751,788 68% WORKPLACE

19% COMMUNITY

13% OTHER

>1% ENDOWMENTS

$11,373,115 includes funds raised through United Way campaigns at participating companies whose employees live and/or work in Orange County

$3,130,107 includes individuals giving outside a workplace campaign

$2,190,811 includes events as well as corporate and community grants

$57,755 includes bequests and planned gifts

INVESTMENTS IN PROGRAMS AND PEOPLE

83%

12%

5%

GRANTS AND PROGRAMS

FUNDRAISING

ADMINISTRATION AND GENERAL

Includes issue expertise and research, program development and implementation, funding of nonprofit and educational services providers, community leadership and partnerships, public awareness and community education, advocacy, volunteer and donor engagement and support staffing

Includes the costs associated with raising money and marketing efforts to support our mission

Includes finance, IT and general services that support our mission

2017

2016-2017 STATEMENTS OF FINANCIAL HIGHLIGHTS

6/30/2016

6/30/2017

Total Assets

$27,501,133

$28,612,197

Less Total Liabilities

$(6,805,722)

$(7,655,940)

Total Net Assets

$20,695,411 $20,956,257

STATEMENT OF FINANCIAL POSITION

STATEMENT OF ACTIVITIES Annual Campaign

$18,083,803

$16,694,033

Endowment Gifts

446,881

57,755

4,526

0

In-Kind Contributions Total Annual Campaign Other Income Provision for Uncollectible Pledges Total Revenue

$18,535,210 $16,751,788 369

1,826,660

(365,550)

(342,124)

$18,170,029 $18,236,324

Grants and Programs

$6,768,713

$7,129,425

Donor Directed Giving

9,098,149

7,827,374

Fundraising, Administration and General

2,995,079

3,018,679

Total Grants, Directed Giving and Expenses Change in Net Assets

$18,861,938 $17,975,478 $(691,909) $260,846

Net Assets – Beginning of Year

$21,387,320

$20,695,411

Net Assets – End of Year

$20,695,411

$20,956,257

The complete financial statements for Orange County United Way fiscal year 2016 and 2017, audited by BDO USA, LLP, are available at www.unitedwayoc.org/accountability.

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THANK YOU FOR MAKING A DIFFERENCE FOR EVERYONE IN ORANGE COUNTY. WHEN WE’RE UNITED4OC, WE ALL WIN.

To learn more, visit UnitedWayOC.org 18012 Mitchell South, Irvine, CA 92614 | 949.660.7600