A 1-on-1 on doing business

A nonprofit leader explains how to build a sustainable funding strategy for homelessness and re-entry programs in California. Treat grants like an investment portfolio, diversify across housing models like permanent supportive housing and TAY programs, and align each with funding streams that will actually last.
Chapters
So we're in an industry that changes, and it changes with politics. Yeah, right, right now we have the Democrats pretty much running California, and, and for the foreseeable future, we don't really see that change changing too much with California. California is a blue state. That comes with its politics. So if you look at the governor on down to the mayor's office, Karen— Mayor Karen Bass, uh, there's a certain type of politics that's involved with how the spaces that we're in, the social work spaces where we're serving as service providers, that affects how we move in this industry. So if we're providing housing for the homeless, the reentry, you know, we're, we know just based on the political landscape right now that there will be people advocating for that population. There will be people advocating for the homeless. There will be people advocating for the reentry space. Et cetera. So you get where I'm going with this. So you have to kind of look at the industry that way. Where's your S&P 500 of this work? You know, what, what funding is always gonna be there? That's the question that you always gotta look at. Because if you're looking at, for example, interim housing, It's called interim housing for a reason, because at some point you want to get folks into permanent supportive housing, which is more permanent, right? At the same time, there's a balance between that and between interim housing, because there's always going to be people that's not ready. There's always going to be people that's still suffering from different societal anxieties, you know, mental health., as well as, uh, you know, substance use, which doesn't make them quite the best fit to go into permanent housing. Okay, so for somebody like yourself that believes in this work, like myself that believes in this work, we're trying to see how do we best support not only the work in what I do, but also how do I continue to pay the bills? How do I keep my staff employed. I have to look at the S&P 500 of the grants and the contracts that, that are not going anywhere. So this is why they say have a mixture in your portfolio. A little bit of this, little bit of that, little bit of mutual funds, a little bit of stock, a little bit of, right, bonds. And you kind of mix it up, mix up what you have. A little bit of real estate, the REITs and etc. You can't just have one kind of housing and think that that's going to be lasting or may last forever, because even if it doesn't go away, it may change. Funding might go down a little bit, it might get reduced the next year or something like that, or they might decide to shrink a little bit of the interim housing because they're trying to put more people on the permanent housing side. Which means what? That means you have to look at all of the different housing models that are out there and which ones are most stable. So you have your interim housing, or you, you can call it temporary housing, or you can call it transitional housing. All of it kind of fits in that same bucket. And then you have permanent housing. But then you also have this other group of what we want to call residential treatment housing. That's another bucket. And then another one is TAY, TAY youth. So you have your transitional age youth. That's another— that's a totally separate, uh, stream of funding, totally separate stream of programming and, and, and, and, and housing and funding. That's separate. You have to look at all of those and determine for yourself, for your own capacity, like, hmm, do I want to do this? Is this is something I want to do long term? Which ones do I want to do long term, right? And which ones are you best equipped to sustain from an infrastructure standpoint, from just, you know, your mission and your vision as an organization? Which ones are the most sustainable? Just think about that for a second.
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