NPI Evaluation of Juma Ventures

NONPROFIT INVESTORINDEPENDENT RESEARCH FOR PHILANTHROPYJuma Ventures SUMMARY Juma Ventures (“Juma”) is a leading youth development andNonprofit Investor Rating: employment organization based in San Francisco, California. InNEUTRAL addition to employment support, Juma offers an asset building and financial literacy program and a college services program. Juma has served over 2,500 teens who have earned in excess of $1.6 million inMission Statement wages to fund their college educations.Juma helps break the cycle of poverty byensuring that young people complete a four- STRENGTHSyear college degree. ▲ The nation’s leading youth Individual Development Account (“IDA”). Since pioneering the youth IDA in 1999, Juma has openedFinancial Overview over 900 accounts and distributed over $1mm in matched earnings$ in MM, Fiscal Year Ended December 31 ▲ Robust college access programs. Juma’s support assists students 2008 2009 2010 in the college preparation process and continues during the first twoRevenue and Support $3.8 $3.8 $4.0 years of post-secondary education.Operating Expenses $3.7 $3.5 $4.0 ▲ Well-recognized brand name and strong relationships with corporate enterprises. Juma was the first US-based non-profit to be% of Total: Program Expenses 89.9% 86.1% 87.2% awarded a corporate business franchise. Today, Juma counts some G&A 5.7% 6.9% 7.2% of the nation’s largest corporations and foundations as donors. Fundraising 4.4% 6.9% 5.5% CAUTIONS ▼ Revenue concentration. In 2010, Centerplate provided 70% ofYear Founded: 1993 Employment Projects revenue. ▼Heavy reliance on three donors. In 2010, 79% of contributionContact Details receivables were due from three donors.Juma Ventures ▼Limited information regarding the beneficiaries served by Juma’s131 Stuart Street, Suite 201 program. With more data, the effectiveness of Juma’s initiatives canSan Francisco, CA 94105 be more accurately evaluated. Juma spends 39% of its program(415) 317-0727 service expenses on “College Services” but does not disclose thehttp://www.jumaventures.org/ number of beneficiaries from that program, which makes it difficultEIN: 94-3203203 to measure the magnitude of the impact.Analyst: Katie Davis RECOMMENDATION: NEUTRALPeer Review: Ruth Yen, James Peng Juma is an innovative and award-winning youth development program that combines employment in social enterprises, collegePublication Date preparation and financial asset building. While Juma’s asset building,June 25, 2012 financial literacy and employment initiatives have had measurable results, NPI recommends that Juma increase its public disclosure of information regarding beneficiaries in its college services program (39% of expenses). Nonprofit Investor Research | nonprofitinvestor.org

OVERVIEW OF JUMA VENTURES’ ACTIVITIESSince its founding in 1993, Juma has grown from primarily offering job-training and placement into a comprehensive,award-winning youth development program considered one of the premier social enterprise programs in the country.Juma operates seven social enterprise programs in three cities, employing more than 160 youth annually. Theorganization offers three core program components, coordinated through a case management framework. Theseprograms provide youth with access to a unique set of comprehensive services, enabling them to develop capacity forsuccess in school, employment, community and adulthood.Students who apply to participate in Juma’s program must be in high school with the goal to obtain a degree from afour-year college. In addition to completing a formal application on the organization’s website, Juma requires itsstudents to be fully engaged in all aspects of the program, including participation in 4-6 workshops per months for thetwo years following acceptance to the program. College ServicesJuma provides youth exposure to and preparation for college, including hands-on support at every step of the collegeselection and application process as well as comprehensive academic support to ensure that youth are college-ready.Juma is unique in that this guidance continues during the first two years of college, rather than ceasing upon collegeadmission and enrollment. These support activities include the following:  Campus and workplace tours  Career coaching  An education plan  SAT prep  Academic tutoring  Assistance in completing college and financial aid applicationsAs students transition to college and throughout their first two years of enrollment, they receive direct support andcoaching from Juma staff through a 1:1 case management program that covers navigating campus financial aid systems,budgeting for college expenses, academic advising and referrals to additional campus and community support services.Additionally, Juma students can utilize their IDA savings and Juma’s matching funds to help cover their college expenses.Students who excel also receive direct scholarship support from generous donors. Asset Building and Financial LiteracyFinancial literacy and asset-building services provide youth the opportunity to develop lifelong savings habits and moneymanagement skills and to accumulate additional assets. Juma offers a comprehensive series of presentations andworkshops that teach specific skills including budgeting, handling debt and credit responsibilities and evaluating bankingservices and options.INDIVIDUAL DEVELOPMENT ACCOUNTSJuma pioneered the concept of the IDA for youth and currently operates one of the largest and most successful youthIDA programs in the country. The IDA program enables Juma youth to establish savings accounts, begin to save moneyfrom paychecks, obtain money management education and receive matching funds to accelerate their savings towardcollege-related expenses. The IDAs provide a 2:1 match for every dollar saved, thereby allowing youth to set and meettargeted financial goals and accrue resources for their college expenses. Money saved and matched in a Juma IDA canbe used only for college-related expenses and is usually issued directly to the college. Since the IDA program was Juma Ventures | Nonprofit Investor Research 2

established in 1999, Juma youth have saved more than $783,000 in their IDAs and earned nearly $960,000 in matchingfunds.STATEWIDE AND NATIONAL INITIATIVESBetween 2004 and 2007, Juma was one of twelve organizations selected for a national demonstration project to test thesuccess of savings accounts programs for children of all ages in urban, suburban and rural settings. Juma served 75youth between the ages of 14 and 18 with IDAs through the SEED policy and practice initiative. The resulting researchestablished a strong evidence base for the social and economic impact of matched savings programs for children andyouth.In 2006, Juma launched its Gain Resources, Opportunity and Wealth (“GROW”) Statewide IDA Initiative, which extendsaccess to asset building programs to low-income youth across California. Supported at the time by Merrill Lynch, theWalter and Elise Haas Fund and the Levi Strauss Foundation, the GROW program had reached more than 180 youth inthe San Francisco Bay Area, San Diego and Los Angeles. Juma provides GROW partners with financial educationcurriculum, 50% of the initial match funds and ongoing training and technical assistance around IDA services delivery.Through the centralization of account data and administrative processes, Juma and GROW partners have achieved aneconomy of scale that extends asset-building opportunities to youth across the California. EmploymentIn 1993, Juma became the first non-profit organization in the US to be awarded a corporate business franchise throughits partnership with Ben & Jerry’s. Since then, Juma has been rooted in social enterprise, and now employs over 160youth annually in its seven social enterprise operation locations across California. These youth are employed primarilyin cart, vending and storefront operations at the following locations:  AT&T in San Francisco  Cal Memorial Stadium in Berkeley  Candlestick Parks in San Francisco  Qualcomm Stadium in San Diego  Oracle Arena in Oakland  PETCO Park in San Diego  Oakland-Alameda County Coliseum in OaklandPROGRAM RESULTS AND EFFECTIVENESSWith 900 IDAs open and over $1 million in youth match earnings, Juma is one of the largest youth IDA programs in thecountry. Since Juma pioneered the IDA program for youth in 1993, Juma has served over 2,800 youth and generatedmore than $17 million in earned income to leverage donor investments for maximum impact. For the past three years,95% of youth at Juma’s flagship San Francisco program have graduated high school, and over 85% of these studentshave gone on to higher education, equipped with skills for success in college, the workplace and adulthood.Approximately 97% of Juma youth are still working and/or enrolled in academic or vocational training two years aftercompleting Juma’s program. In 2010, Juma offered $130,596 in college scholarships to youth.As illustrated in the breakdown of Juma’s 2010 program service expenses, Job Skills Training and Part-Time Employmentconstituted 43% of 2010 program service expenses, which served 237 young people in San Francisco, Oakland and SanDiego. College Services made up 39% of program service expenses. Although the College Services program hasdemonstrated high graduation and post-secondary school attendance percentages, the organization would be betterserved if it was able to provide information behind the number of beneficiaries served. Juma Ventures | Nonprofit Investor Research 3

2010 Program Service Expenses 5% 13% 43% 39% Job Skills Training and Part-Time Employment College Services Financial Literacy & Asset Building Other Program ServicesIn 2011, Juma employed 270 young people in San Francisco, Oakland and San Diego, with over 90% transitioning tocollege (compared to the prevailing rate for low-income high school graduates of 52%).Juma has received numerous awards for its work, including the National Youth Employment Coalition’s PEPNet Awardand a Community Achievement Award as the national organization of the year from the Social Enterprise Alliance.Other honors that the organization has received include:  Bank of America’s Neighborhood Builders Award (one of the two non-profits selected for this $200,000 award in San Francisco)  Citibank’s Nonprofit Appreciation Award  Marriot Foundation’s Small Business Award  San Francisco School-to-Career Partnership’s Bridge to the Future award  State Model of Excellence Award by the Office of Advocacy for US Small Business AdministrationTRANSPARENCYCharity Navigator (“CN”) indicates that Juma operates with a strong commitment to accountability and transparency.Juma provides audited financial statements for the prior three years on its website, and files Form 990 with the IRSannually. The organization’s complete Form 990 can be mailed to individuals upon request. Juma can improve its levelof transparency by provide more detailed information to the public regarding beneficiaries and partners. With thisinformation, the public can more holistically evaluate the impact that Juma’s programs have had on California’s youth. Juma Ventures | Nonprofit Investor Research 4

FINANCIAL OVERVIEWREVENUEThe majority of Juma’s revenue comes from government grantsand contributions, and the organization’s revenue mix has been $ in ‘000fairly consistent over the past three years. Juma has strongrelationships with its key contributors. In 2010, the mostsignificant contributions came from the Cypress Fund, SanFrancisco DCYF, John L. Mulvaney Foundation, Assets forIndependence, Gap Foundation, Y&H Soda Foundation and J.P.Morgan Chase Foundation.As of December 31, 2010, according to the organization’sFinancial Statements, approximately 79% of contributionreceivables were due from three donors, reflecting Juma’srevenue concentration. For the year ended December 31, 2010,Centerplate provided approximately 70% of the Employment Projects Revenue through exclusive contracts 1 .Centerplate is Juma’s largest enterprise partner, operating at AT&T Park in San Francisco and Qualcomm Stadium in SanDiego.EXPENSESIn the past three years, Juma’s expenditures on $ in ‘000implementation and execution of the organization’s programsaveraged 88% of total expenses. In 2010 the organizationincreased its financial assistance expenditures 17%, reflecting itsgrowing focus on committing more resources to college accessefforts. This increase in 2010 was due to a new, five-yearcontract with the US Department of Health and Human Services’Assets for Independence Program, which helps participants saveearned income in matched IDAs 2.1 Juma Ventures Form 990 for the year ending December 31, 2010.2 Information provided by Juma Ventures Juma Ventures | Nonprofit Investor Research 5

Detailed Financial Information 2008 2009 2010Select income statement accounts:Support and revenue: Grants and contributions 2,173,888 2,519,387 2,340,102 Employment projects, net 1,446,977 1,124,784 1,541,639 Investment income 39,242 37,791 10,061 Special event income, net 97,318 95,515 63,495 Miscellaneous income 88,247 41,402 32,120 ___________ ___________ ___________Total suport and revenue $3,845,672 $3,818,879 $3,987,417 % growth -0.7% 4.4%Expenses: Program services 3,313,104 3,017,875 3,475,858 Supporting serices: Management and general ("M&G") 210,306 242,240 287,608 Fundraising 162,933 243,381 220,875 ___________ ___________ ___________Total expenses $3,686,343 $3,503,496 $3,984,341Revenue less expenses $159,329 $315,383 $3,076 Program services costs as a % of total expenses 89.9% 86.1% 87.2% M&G costs as a % of total expenses 5.7% 6.9% 7.2% Fundraising costs as a % of total expenses 4.4% 6.9% 5.5%Program services expense breakdown Employee compensation 1,616,696 1,587,782 1,677,104 Cost of goods sold & concession fees 768,018 631,278 847,393 Rent 130,375 133,635 141,630 Consultants & professional services 75,326 113,098 129,546 Project costs 136,115 198,880 283,866 Financial assistance 126,453 126,061 148,607 Other expense 460,121 227,141 247,712 ___________ ___________ ___________Total program services expenses $3,313,104 $3,017,875 $3,475,858Supporting services expense breakdown Employee compensation 263,112 339,470 359,949 Rent 32,069 28,933 35,551 Consultants & professional services 18,113 26,332 51,948 Other expense 59,945 90,885 61,035 ___________ ___________ ___________Total supporting services expense breakdown $373,239 $485,621 $508,483Total expenses $3,686,343 $3,503,496 $3,984,341Select balance sheet accounts:Cash $1,665,543 $2,277,359 $2,413,854Grants and contributions receivable 265,366 351,533 427,877Accounts receivable - - 18,787Investments 677,984 334,960 306,963Net PP&E 107,292 127,811 122,102Note: Prior to 2009, Accounts Receivable are aggregated into "Contributions and accounts receivable"Source: Audited 2008, 2009 and 2010 Financial Statements Juma Ventures | Nonprofit Investor Research 6

CONTRIBUTIONS AND PARTNERSHIPSIn 2010, the Company received $2.4 million in contributions from corporations and individuals across America. Thefollowing table illustrates some of the organization’s largest contributors in 2010 and their respective contributions. Contributor Amount Cypress Fund $766,961 San Francisco DCYF $291.151 John L. Mulvaney Foundation $150,000 Assets for Independence $142,369 Gap Foundation $119,000 Y&H Soda Foundation $80,000 J.P. Morgan Chase Foundation $75,000Some of the nation’s most prominent, well-renowned and respected foundations, corporations and governmentagencies have become supporters of Juma Ventures. For example, from January 2011 to December 2011 Juma receiveddonations exceeding $100,000 from the following partners:  BlackRock  Citigroup Foundation  College Access Foundation of California  E*Trade Foundation  Gap Foundation  JP Morgan Chase  Kimball Foundation  Levi Strauss Foundation  Mulvaney Foundation  Max & Stanley Smith Charitable Trust  TK Foundation  Gary & Mary West FoundationTHIRD PARTY RATINGSCharity Navigator rates the organization four out of four stars. CN indicates that in 2010 Mark Spencer, theorganization’s CEO, received $115,115 in compensation, representing 3.76% of expenses. CN gives the organization anoverall score of 67.32, which exceeds the overall scores assigned to similar organizations (Jobs for the future – 59.84;Women Employed – 58.60; Dress for Success – 64.27; Washington Women’s Employment & Education – 63.67).GET INVOLVEDCorporations have a variety of opportunities to support Juma in its efforts to mitigate poverty and empower youth topursue the goal of post-secondary education. For example, during spring day baseball games, while Juma’s students arestill in school, local companies can send volunteer teams to fill in for Juma’s youth as vendors at the ballpark. This is aunique team-building experience that contributes to Juma’s success in a fun and relatable way. Local companies canalso envision and organize other community-based team-building activities to share with Juma youth.In addition to the hiring positions that Juma describes on its website, individuals can pursue a wide range of volunteerpositions including, but not limited to, career or college application coaches for Juma youth. Individuals in thesepositions assist with resume and cover letter writing, interview preparation, college research, applications, scholarshipsand financial aid. Also, individuals can volunteer as workplace tour leaders, hosting small groups of interested Jumastudents and providing an overview of the company’s services and products, departments, career opportunities andrelated education paths.Individuals and corporations seeking to donate to Juma can also do so in a variety of ways. Individuals donating over$1000 in one year become members of Juma’s Graduate Circle, with the ability to participate in fundraisers and theorganization’s annual Friends of Juma dinner. Also, Juma has arranged for search engines to donate percentages ofrevenue to Juma, including GoodShop.com (donates 30% of every purchase) and GoodSearch (a Yahoo-powered searchengine that donates 50% of revenue). Further details regarding individuals’ ability to donate to Juma can be found at Juma Ventures | Nonprofit Investor Research 7

jumaventures.org/donors/ways-to-support/. Corporations seeking to donate and support Juma have a number ofoptions available. Companies can make grants, sponsor Juma’s annual Field of Dreams fundraising event and offercareer tours and internships for Juma youth.DISCLOSURESKatie Davis certifies that she does not have any affiliation with Juma Ventures and has never made a donation to theorganization. Additionally, Katie has not supported directly competing organizations in a greater capacity than a nominaldonation. NPI analysts and NPI as an organization do not receive any form of compensation from reviewed charities.This report is for informational purposes only and does not constitute a solicitation for donations. While the reliability ofinformation contained in this report has been assessed by NPI, NPI makes no representation as to its accuracy orcompleteness, except with respect to the Disclosure Section of the report. Any opinions expressed herein reflect ourjudgment as of the date of the materials and are subject to change without notice. NPI has no obligation to update,modify or amend any report or to otherwise notify a reader thereof in the event that any matter stated herein, or anyopinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate, or if research onthe subject organization is withdrawn.Opinions and recommendations in our reports do not take into account specific reader circumstances, objectives, orneeds. The recipients of our reports must make their own independent decisions regarding any organization mentionedby NPI. Juma Ventures | Nonprofit Investor Research 8

NPI Evaluation of Juma Ventures

by Nonprofit Investor on Jun 25, 2012

Accessibility

Categories

Upload Details

Usage Rights

2 Embeds 57

Statistics

NPI Evaluation of Juma Ventures Document Transcript

http://nonprofitinvestor.org	55
http://www.nonprofitinvestor.org	2