Self Sustaining Homeless Shelter, Business Plan Example

Although reports of homelessness suggest this problem has decreased this is based on estimates of those in shelters and transitional housing.  However, those with the greatest needs are those living on the streets.  The proposed shelterwill house 20 people a year, 10 women and 10 men, to meet short term housing needs while working towards long term options.

The shelter will operate 24 hours a day, however, residents will be expected to be out of the shelter from 9:00am to 5:00pm each day while pursuing work/school/volunteer related goals except for approved appointment in the shelter or due to illness. Local and national corporate sponsors and grant awards have been obtained to cover the Initial operating costs for the first two years with sponsors pledging additional support afterwards. However, the shelter is intended to be self-sustaining after two years.  Strategies to make the shelter self-sustaining will be put in place during building construction and in the first two years of operations. With the exception of the full time director and the part time Assistant to the Director, the shelter will be staffed by volunteers.

The shelter will be incorporated based on Federal and State Fair Housing Laws.  This will ensure that it can operate independently, continuing even if those who established it are no longer available, and can give the shelter the right to have its own land and bank account separate from the property of any individual or group of individuals.

Services Provided

Services that will be available at the shelter and anticipated providers are listed below:

Medical Services:  Provided pro-bono by local residents and physicians.

Mental Health Services:  Individual therapy will be provided in return for residents volunteering in the community.  For every three hours of volunteer work, residents will receive one hour of mental health services.  This is aimed at re-integrating residents into society and providing a role to help build self-confidence. Group therapy groups and psychoeducational groups will be available will also be available focusing on relationships building, education about medication and mental health conditions and skills training.  These services will be provided by pro-bono psychologists, psychiatrists, social workers and counselors.

Employment Counseling – Individual counseling, workshops and continuing mentorships will be provided by SCORE, a volunteer agency of business professionals

Transition to Permanent Housing – Help with applying for Section 8 or other housing options will be provided by government volunteers

Rough Budget

$35,000 a year – Salary, Shelter Director [based on theaverage salary of Homeless Shelter Directors]

$916.00 ($8.00 an hour – minimum wage plus 10 percent) – Salary, part time assistant to the Director 24 hours a week.

$65,000 miscellaneous/office supplies and other business related expenses, includes funds for insurance, accountant, and other business consultants who are not volunteers)miscellaneous food (snacks and other extra items), miscellaneous (general)washer/dryer, service contracts and other miscellaneous equipment purchases

Total estimated expenses per year = $100,916

Other staffing needs will be filled by a mix of volunteer and residents.

All food related items will be donate by three local food banks. Initial outlay of funds for serving utensils, warming trays/chaffing dishes, hotpots, pots and pans oven, stove, microwave, refrigerator/freezer and other kitchen necessities will be donated by a local home store.

Linens, towels and all bath items will be donated by a local bed and bath outlet.All furniture will be supplied by a local furniture warehouse.

Sustainable Technology

This facility would be built using sustainable technology.  Instead of using expensive electrical power, a cost which would fluctuate based on factors not under our control, solar energy would be used along with hydropower or wind power based on what initial surveys determine is feasible.    For the purposes of heating and cooling, geothermal well could also be utilized to limit the drain on other stored energy.  Wells would be dug to provide clean water through alternative energy sources.  While initially these features would be expensive to build into the facility, in the long run being able to store energy to use for other sustainable technology would save money in the long run.

Other Sustainable Methods of Focus

Residents would be expected to take part in a work- for- rent program as they are able.  They will also be expected to take part in community volunteer programs.  When unable to find work they will be expected to increase their volunteer hours until they are able to find work.  Additionally, they will be required to carry out the various jobs needed to run the shelter including meal preparation and laundry.  In order to decrease on food costs, the shelter will own enough land to grow certain fruits and vegetables. Some residents will work the gardens and staff the farmer’s market table as one of their shelter based jobs.  There will be enough seasonal fresh produce over the year to supplement other foodstuffs and additional produce will be sold at the local farmers market to generate further income for the shelter. Residents will earn a certain number of points for volunteer activities and shelter support jobs which can be used to pay rent.  Vocational skills will be taught that can be used to create a variety of projects for personal use and to sell for the shelter. These will include cabinetry, woodworking, and metalworking.

In addition, they will be required to contribute a specific part of their earnings toward paying the needs of the shelter.  This amount will be calculated separately for each resident based on a determination of their daily needs and any other obligations which may exist.  Residents will also be encouraged whenever possible to open a bank account and deposit some money there. Financial counselors will help residents determine budgets and manage financial concerns.  It is hoped that job skills taught at the shelter combined with practical experience, will provide residents with the skills needed to obtain long term employment.

Residents will be allowed to stay for a maximum of 3 months while obtaining work and housing. Former residents who have specific skills will be invited to teach those skills to current residents. This will help these individuals after they leave the shelter by providing a stipend and keeping them connected to the social network they established while at the shelter.  Post-residency groups will also be held so residents can remain in contact with each other and have an outlet that is familiar during the transition to their new life.