NPI Evaluation of New Door Ventures

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  • Great presentation. Thanks for the info, you made it easy to understand. BTW, if anyone needs to fill out a “Form 990”, I found a blank fillable form here: http://pdf.ac/6LAPr. This site PDFfiller also has some tutorials on how to fill it out and a few related tax documents that you might find useful.
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NPI Evaluation of New Door Ventures

  1. 1. NONPROFIT INVESTOR INDEPENDENT RESEARCH FOR PHILANTHROPY SUMMARYNew Door Ventures New Door Ventures (“New Door”) provides Bay Area at-risk youths between the ages of 16 and 21 opportunities for work as pathways toNonprofit Investor Rating: sustainable lives. New Door provides over 130 paid internships a yearNEUTRAL and serves more than 200 youth annually through job-readiness training and supportive case management.Mission Statement STRENGTHSTo prepare at-risk youth for work and life. New ▲ Clear and innovative goals. New Door recognizes that youthDoor Ventures provides skill-building, individual employment and educational attainment are at their lowest point insupport and jobs that enable youth to discover decades and has been campaigning to raise $10 million to build aand achieve their potential, which is integral to youth center that envisions providing 2,000 jobs for disconnectedtheir successful transition to healthy, sustainable youth from 2011 to 2020.adulthood. New Door Ventures’ aim is to ▲ Positive program impact. New Door Ventures has created 44.5%transform individuals who will in turn transform more jobs in 2011 than in 2010. 87% of the graduates went on totheir communities. new jobs or higher education after New Door job internships. CAUTIONSFinancial Overview$ in MM, Fiscal Year Ended December 31, ● Increasing cost per beneficiary. Although expenses increased by 2009 2010 2011 27% from 2008 to 2010, the number of students served declined Revenue and Support $3.6 $4.8 $7.8 from 356 to 219 youths from 2008 to 2011. While there may be good Operating Expenses $3.5 $3.9 $4.3 reasons for higher costs per beneficiary, New Door Ventures has not provided commentary. % of Total: ● Lack of program details. Additional information regarding services Program Expenses 47% 89% 85% delivered (e.g. length of internships, number of internships provided G&A 0% 4% 5% at New Doors businesses vs. Ally local partners) is necessary for Fundraising 0% 7% 9% donors to understand the reasonableness of New Doors cost to deliver programs. Additionally, “number of youths served” andYear Founded: 1981 “number of paid internship provided” seem to be used interchangeably while the two measurements are different. ● Unstable revenue portfolio. Enterprise revenue as a percentage of total sources of funds has declined from 62% in 2009 to 36% in 2011,Contact Details reflecting higher dependence on individuals donors. This raisesNew Door Ventures concerns regarding diversity of New Doors enterprise donor base.3075 21st Street ● Impact metrics focused on short-term impact. Statistics reportedSan Francisco, CA 94110 in New Door’s 2011 impact were measured only six months after completion of program report do not reflect long-term impact as they.http://www.newdoor.orgEIN: 94-2780274 RECOMMENDATION: NEUTRAL New Door demonstrates ambition as they raise funds to create moreAnalyst: Rainbow Wong jobs through building a youth center. However, New Door’s impactPeer Review: Michael Ojunga, Ruth Yen measurement of graduate statistics six months after completion of the programs is insufficient to measure long-term impact. Also, thePublication Date decline in number of youths served while expenses increased fromApril 18, 2013 2008 to 2011 raises questions about New Door’s cost structure. Nonprofit Investor Research | nonprofitinvestor.org
  2. 2. OVERVIEW OF NEW DOOR VENTURES’ ACTIVITIESNew Door Ventures (“New Door”) was founded in 1981 as a Christian based service called the Golden Gate Communityto provide emergency shelter to San Francisco’s homeless. The founders soon realized that solving the problem ofhomelessness also required jobs, skills, and opportunities, so New Door was born to provide Bay Area at-risk youths whoare between the age of 16 and 21 the opportunities for work as pathways to sustainable lives. Since 2005, New Doorhas provided job internships through its own businesses, Ashbury Images and Pedal Revolution. In the fall of 2008, NewDoor launched the Ally Partnership which creates job internships for youth through local business partners. Today, NewDoor provides over 130 paid internships a year and serves more than 200 youth annually through job-readiness trainingand supportive case management. New Door’s current goal is to fundraise to build a youth center that will create 2,000jobs for teenagers.Program overviewNew Door provides job training, educational support, and essential support for Bay Area at-risk youth between the agesof 16-21. These at-risk youth are youth who are disconnected and have experienced substantial periods ofunemployment, homelessness, involvement with the criminal justice system or poverty. By providing paid internships,skill building training, and 1:1 educational support, New Door aims to graduate them with skills that will sustain theirtransition into adulthood. Paid internships – Youths are placed in internships with nonprofit businesses that New Door owns (Ashbury Images and Pedal Revolution) or partners (Ally Partnership) to provide them with real workplace experiences. Ashbury Images – A screen-printing business offering embroidered apparel and custom-designed promotional products for corporations, universities, nonprofit organizations and special events, located in San Francisco’s Bayview District. Pedal Revolution – A full-service bicycle sales and repair shop, located in San Francisco’s Mission District. Ally Partnership – New Door partners with 30+ local businesses and nonprofits to provide paid internships for New Door youths. New Door pays for the interns’ wages, provides all HR, training, admin and legal support for its Ally jobsite partners. Ally partners benefits from low-cost labor and zero expense for giving back to the community. Job readiness – Skill-building workshops such as interviewing, resume writing, personal finance, and nutrition are available to their youths. Educational support – After each youth completes an educational plan with his / her case manager, he / she receives support such as homework check-ins and GED preparation. New Door purchases study materials and funds testing fees for each youth. Educational support is provided by a contract instructor, New Door staff and volunteer tutors.Current Development - Threshold VenturesNew Door is running a two year Threshold Campaign: Banking on Youth to raise $10 million to support their vision ofproviding 2,000 jobs for disconnected youth from 2011 to 2020. The fund will go towards supporting New Door’s annualprogram costs as they expand the program, the youth center, and their reach to transform more youths’ lives. NewDoor hopes to acquire two times the facility space to serve three times as many youths and help at least 85% ofgraduates go on to their next jobs or further education. So far, New Door has committed $6.1 million and needs $3.9million more to expand the program. New Door Ventures| Nonprofit Investor Research 2
  3. 3. PROGRAM RESULTS AND EFFECTIVENESSBased on New Door’s impact report in 2011, the organization is continuing to grow. In 2011, New Door provided threetimes as many paid internships as they did in 2008, from 44 to 133 paid internships. Compared to the 33% nationalunemployment rate for youth ages 16 to 24 as of January 2012, 87% New Door graduates went on to new jobs or highereducation within the first six months after completing a New Door internship. New Door seems to also reshape youths’prior criminal backgrounds as none of their youths re-offended after participating in the program. As the Bay Areacommunity believes in New Door’s impact, they have attracted 362 volunteers to engage in supporting programs in2011. It would be interesting to understand whether New Door recruit only professionally trained volunteers to act aseducational mentors to youths or New Door provides mentorship training to volunteers. While the New Door websiteprovides these statistics demonstrating success, detail explaining why the number of youths served has declined from356 in 2008 to 129 in 2009, and the methodology of measuring impact would be helpful for the community tounderstand New Door’s work in the Bay Area.TRANSPARENCYNew Door shows a strong commitment in maintaining transparency, providing audited financial statements, andperformance reports. However, New Door has not yet filed 2011 Form 990. Moreover, the current informationregarding their donation groups, methodology to measure impact, and program functions are not robust enough tocompletely explain their operations and strengths. Without a more detailed explanation of New Door’s operations,programs, impact, and financial support, the public is unable to ascertain whether New Door’s impact on its targeteddemographic is accurate and if there are certain areas that can be further strengthened.FINANCIAL OVERVIEWEven though New Door experienced a 4.5% revenue decline in 2009, their revenues have been steadily increasing since.Revenue has grown by 62% from 2008 to 2011. New Door management is quite responsive to changes in their revenueand expenses as the CEO took a pay cut of $20,000 in 2010 when she saw that the prior year’s revenue declined.New Door experienced an operating loss in 2008 but had shown a strong recovery as the following years yield positiveoperations. With the donations increase and prudent expense management, New Door’s net income was $3.5 million in2011 (according to audited financial statement), in comparison to the income loss of $238,153 in 2008. If New Door’soperations continue at the same proportion, program expenses and operational costs will be 80% of their revenues. Support and Revenues Mix Over Time$ in MM $14.0 $12.0 $7.8 $10.0 $4.8 $8.0 $3.8 $3.6 $6.0 $4.0 $2.0 $0.0 2008 2009 2010 2011 Total Support and Donations Program Fees Other New Door Ventures| Nonprofit Investor Research 3
  4. 4. Currently, a detailed operational trend of New Door is not apparent as they have not yet filed Form 990 for 2011, a piecethat is crucial to make year to year comparison. In 2010 and 2011, New Door distinguished costs for each of theirprograms: Ashbury Images, Pedal Revolution, and Youth Development. These program expenses have represented anaverage of 61% of total expenses. The distinction of these expenses shows that these are their core programs andperhaps they have divided staff to focus on each of these programs. Within the expense items, New Door incurred$158,730 in consultants and outside services fees in 2008 and did not incur those costs again until $63,444 in 2011. Itwould be helpful to know if this expense is for measuring program impacts and will be a cost that occurs every few years. Detailed Financial Information$ in 000’s Fiscal Year Ended December 31 2008 2009 2010 Operating Revenue: Contributions and grants $988,495 $1,352,466 $1,977,480 Program service revenue 2,759,607 2,214,149 2,766,029 Investment income 49,491 43,948 47,026 Other revenue (19,255) 1,039 12,242 Total Support and Revenues $3,778,338 $3,611,602 $4,802,777 % Growth (4.4%) 33.0% Expenses: Salaries, other compensation, emplo $1,938,372 $1,633,336 $1,891,312 Supporting Services: Total fundraising expenses 242,149 - - Other expenses 1,835,970 1,823,989 2,033,073 Total Expenses: $4,016,491 $3,457,325 $3,924,385Source: Form 990KEY PERSONNEL BIOSTess Reynolds, Chief Executive Officer, has been with New Door Ventures’ CEO since 2003. With her industryexperiences in consumer goods and technologies, she has led New Door to more than double its annual revenues andtripled its number of paid job internships for disconnected youth. Before New Door, Tess is best known for co-creatingHarvard Graphics, the product that led the presentation graphics market prior to Microsoft PowerPoint. She has workedas a business unit general manager, a vice president of marketing, and principal of her own management consulting firmwhich served global and start-up technology companies. While in the business sector, Tess volunteered at and served onthe boards of nonprofits like the YWCA, Lucile Packard Children’s Hospital at Stanford, and the Children’s Hospice andPalliative Care Coalition. Tess is a member of the San Francisco Social Enterprise CEO Forum and speaks frequently atvarious conferences. She is an immigrant from the Philippines, has a B.A. in Economics-Honors from the Ateneo deManila University, and an M.B.A. from Santa Clara University in California. New Door Ventures| Nonprofit Investor Research 4
  5. 5. OTHER THIRD PARTY RATINGSNew Door was selected as one of fifteen organizations nationwide to participate in PropelNext, a new venture of theEdna McConnell Clark Foundation (EMCF), one of the nation’s leaders in creating greater opportunities for America’smost vulnerable young people.GreatNonprofits rates New Door 5 out of 5 stars based on 6 user reviews. The rating is based on the quality of NewDoor’s mission to creating a safe space for youths and the quality of New Door interns at a local business.GET INVOLVEDNew Door Ventures welcomes various ways to get involved: Ways to Support WebsiteBecome an Ally Partner (in San Francisco, Bay Area) http://www.newdoor.org/get-involved/allyMake donations (monthly support, in-kind gifts, large gifts) http://www.newdoor.org/get-involvedVolunteer http://www.newdoor.org/get-involved/volunteerDISCLOSURESRainbow Wong certifies that she does not have any affiliation with New Door Ventures and has never made a donation to theorganization. Additionally, Rainbow Wong 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 of informationcontained in this report has been assessed by NPI, NPI makes no representation as to its accuracy or completeness, except withrespect to the Disclosure Section of the report. Any opinions expressed herein reflect our judgment as of the date of the materialsand are subject to change without notice. NPI has no obligation to update, modify or amend any report or to otherwise notify areader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changesor subsequently becomes inaccurate, or if research on the subject organization is withdrawn.Opinions and recommendations in our reports do not take into account specific reader circumstances, objectives, or needs. Therecipients of our reports must make their own independent decisions regarding any organization mentioned by NPI.ABOUT NONPROFIT INVESTORNonprofit Investor is a nonprofit organization with the mission of improving philanthropic capital allocation and nonprofiteffectiveness through research and analysis. NPI brings together volunteers with professional due diligence skills to produceindependent, in‐depth evaluations of nonprofits. NPI research is available for free, public downloadhere: www.nonprofitinvestor.org/research. To suggest a charity for NPI to review or to apply as a volunteer, please contactus: www.nonprofitinvestor.org/contact. NPI is a tax‐exempt charity under section 501(c)(3) of the Internal Revenue Code (EIN:45‐3627609). Follow Nonprofit Investor on Twitter: @nonprofitinvest New Door Ventures| Nonprofit Investor Research 5

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