BOARD OF DIRECTORS MEETING Friday . February 23 . 2018 . 1381 S. First Street . San José . CA 7AM

AGENDA

Time Item Who Process 7:00 A. Call to Order Steve Herrera Reflection

7:05 B. Agenda Review/Chair Update Information (5 min)

7:10 C. Public Comment

7:15 D. Finance & Administration Report Jonathan Noble Presentation (10 min) • Mid-Year Financials

7:30 E. Executive Director Report Poncho Guevara Presentation (5 min) • Holiday Program Review • Program Update • Federal Response Discussion • Handbook • Executive Committee / Board Development

8:00 F. Fund Development Report Eric Bonesteel Presentation (5 min)

8:05 G. Program & Strategy Report Jorge Gonzalez Discussion (10 min) • Board Operating Plan • Board Retreat & Priorities

8:15 H. Program Spotlight: Education Michael Vega Presentation (15 min)

8:30 I. Closed Session Discussion (15 min) 8:50 J. Consent Agenda Approval (5 min) Board of Directors Meeting minutes October Program & Strategy Committee minutes January Funds Development Committee minutes January Program & Strategy Committee minutes February Finance & Administration Committee minutes February 8:55 K. Public Forum

9:00 L. Adjourn Members of the public may speak to the Sacred Heart Community Service Board of Directors about any item that is on the agenda during the Public Comment period, or items that are not on the agenda and are within the subject matter jurisdiction of the Sacred Heart Community Service during the Public Forum period. If you wish to speak to the Board of Directors, please refer to the following guidelines: • Fill out a Speaker’s Card and submit it to the Board Secretary. Please do this before the meeting. • The Board Chair will open the public hearing and call your name. Each speaker generally has two minutes to speak. The amount of time allotted to

speakers may vary at the Chair’s discretion, depending on the number of speakers or the length of the agenda. • Please be advised that the Board is unable to discuss or take action on issues presented during Public Forum.

In compliance with the Americans with Disabilities Act, those requiring accommodation for this meeting should notify the Administration Office 24 hours prior to the meeting at 408-278-2160

vision

mission

a community united

to ensure that every

child and adult is

free from poverty

to build a community

free from poverty

by creating hope,

opportunity, and action.

we provide essential

services, work together

to improve our lives,

advocate for justice,

and inspire our community

to love, serve, and share.

REPORT20162017

JUL 2016 – JUN 2017

“My family and I moved to

San Jose from Oakland 16

years ago. My mother, a single

mom of 3, would wake up

early and wait outside for the

doors to open at Sacred Heart

Community Service so that

she could get food and clothes

for my siblings and I. Giving

back to the community and

organizations that lifted my

family up is what drives

what I do everyday.”

– Yvette Gonzalez

SACRED HEART COMMUNITY SERVICE . 1381 SOUTH FIRST STREET . SAN JOSÉ CA . 95110408.278.2160 . WWW.SACREDHEARTCS.ORG

The validationDespite tremendous fear, our members reinforce who we are today, ideas that were easy for me to lose sight of.

First and foremost, we can and must “rise above” our situation. Our work involves getting people to envision a better, more just society and economy that values everybody. That is what we do. She reminded me of that.

Next, we must “remain united like the great family that we are.” Our work brings people together in meaningful relation-ships, often across boundaries of race and class. It involves building and maintaining unity. That is what we have done. We are a family–a great family. She reminded me of that.

We must “support one another.” Our work is not simply defined by what Sacred Heart does for the community anymore. The idea that we will figure it out by working together is at the heart of how we define our role today. She reminded me of that.

I canʼt say that I have always remained calm this past year. I have feared that I am not doing enough, felt overwhelmed by the challenges we face, that I donʼt have the answers.

Well, duh! Of course I donʼt.

This meditation reminds me that we can and will rise above together, if we can stay united.

The progressUltimately, the past year has been one of the most difficult, creative and productive in our history.

•We spearheaded successful efforts to secure new resources and to lead countywide collabrative programs to protect immigrants and prevent homelessness.

•We lead transformative policy campaigns that will provide funding for affordable housing and transportation, protect renters, increase the minimum wage, and expand urban agriculture.

•We lead efforts to provide financial assistance to over 1400 individuals and families displaced by the Coyote Creek flood last winter.

•We grew and innovated our programs, including a dramatic expansion of our service areas for food and financial assistance, doubling our summer youth academy, and developing new mutual support groups.

•We initiated efforts to bring community members and leaders together to address systemic racism.

What does it all mean?Despite our progress, families still struggle, the safety net is under attack, immigrants live in fear, displacement of working poor families is real. We have not won every policy fight. The needs overwhelm the resources at our disposal.

But, I need to remember that we are not in this alone. I need to invite you to help, to volunteer, to donate, to learn, to create, to rise above, and to breathe.

Sinceramente,

Poncho GuevaraExecutive Director

It is still hard to breathe.

At a meeting on November 9, 2016, in the wake of such a breathtaking, divisive election, over a hundred community members convened to share their thoughts, hopes, and fears.

I have kept this particular remark shared by one of our grassroots leaders in my notebook ever

since: “The best way to rise above this difficult situation is to remain united as the great family we are…to support

one another and try to stay calm in these difficult times.”

This sentiment sums up who we are–both the promise and responsibility of Sacred Heart Community Service.

I have used it like a meditation ever since.

The evolutionWe continue to effectively serve as the safety net of the safety net, helping people navigate real hardship by providing critical resources, support, education, and employment programs.

But as we critically examine and reinvent our role, we try to bring people together in community, work side by side to support each other in creative ways, and organize policy campaigns to improve broken and unjust systems.

3.5 Million lbs. of food

distributed

20162017THE NUMBERS

63,617 participants in

sacred heart programs

1 FINANCIAL GIFTSyour tax-deductible gift supports our programs. come see and experience how we put your gift to work.

2 VOLUNTEERSgive of your time and join the 100- 200 volunteers needed each day to operate our programs. attend a volunteer orientation to get started.

how you can help

ADVOCACYjoin our efforts to research and address public policy concerns affecting low-income residents.

4

3 DRIVESorganize a group to collect critical items. contact us and weʼll help you get started.

LEARNlearn about the challenges facing working poor families by coming to an orientation, immersion or plunge for you or a group.

55

3,514 households recieved rental deposit assitance, case management or referrals

1,536 households recieved income tax assistance, putting $2.2M in refunds back into their pockets

162 survivors of domestic violence accessed case management and assistance

714 individuals registered to support the immigration rapid response network, 1000+ trained

10,511 volunteers

85,085 volunteer hours including 27,958 volunteer shifts

4.8 Million dollars worth of

donated clothing blankets, & linens distributed

9,148 households recieved assistance paying utility bills totaling $2.4 million

504 grassroots leaders participated in 6 policy action committees

220 1st-6th grade students participated in sacred heart’s summer academy

13,000 lbs of organicproduce produced by our gardening network

2016

NEW BOX TRUCKAfter 15 years, and more than 200,000 miles, the SHCS

truck was ready to retire. Through fundraising events, crowdfunding campaigns, and matching donations, we

raised enough to purchase our new truck, “Cora.”

JUN

30

TRU

CK

CA

MPA

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JUN

19 G

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APR 1

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OPTS

JU

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In an historic win for residents of San José, City Council voted to adopt stronger protections for renters. After years of organizing alongside our Silicon Valley Rentersʼ Rights Coalition partners, the Council passed new rules that will provide protection from unjust evictions to nearly 450,000 renter households.

Sacred Heart lead financial relief efforts to those impacted by the Coyote Creek flood.

We successfully advocated for additional assistance for overcrowded households, and

ultimately, to provide help to those who had been living outside along the creek. 793 households

received $2.3 million in direct assistance and 640 people whose belongings were swept away by the

creek received over $300,000 of assistance.

JUL

1 H

OM

ELES

SNES

S PREV

ENTI

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STEM

LA

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FEB 1

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ARD

Sacred Heart worked with EAN sister organizations to develop and implement a countywide Homelessness

Prevention System (HPS). HPS targets families at greatest risk of homelessness in Santa Clara County,

and steps in before they lose their housing to help avoid the devastating financial and emotional

costs of homelessness. HPS funding was assembled by Destination: Home, with investments from the County of Santa Clara, the City of San José, Google.org, the David

and Lucile Packard Foundation, and Sunlight Giving.

The Board of Directors approved a new strategic plan for 2017-2019 that centers the necessity for wider community commitment to build a just society and economy. The plan balances program interventions that address the consequences of poverty with an emphasis on policy action and building solidarity to impact the root causes of poverty.

STRATEGICPLAN FE

B 2

4 A

PPRO

VA

L

RAPID RESPONSENETWORK

SHCS spearheaded development of a countywide rapid response system and hotline with key allies.

We train and deploy volunteers to support immigrants and their families subjected to immigration raids.

JUN

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ELECTIONS2016 SACRED HEARTVOTER GUIDE

santa clara county measure a

santa clara county measure b

Voters in Santa Clara County approved an Affordable Housing Bond (Measure A) and Transportation Tax

(Measure B) which were advanced and shaped by Sacred Heartʼs policy action committees. In addition to sending out our voter

guide to 30,000 voters, 425 Sacred Heart volunteers and leaders put in more than 2,200 hours of voter outreach, including 40,000

calls. The results: $950 million to create housing affordable to thousands of our most vulnerable residents, and $500 million of transportation resources such as affordable fares and improved

services for seniors and people with disabilities.

NO

V 8

ELE

CTI

ON

DAY

OCT

14

SURJ

LAU

NCHRACIAL

JUSTICE

EXPANSION Sacred Heart redesigned and aligned food and financial assistance service areas in Santa Clara County with our Emergency Assistance Network (EAN), United Way Bay Area, and Second Harvest Food Bank partners to better serve low-income residents. SHCS expanded service areas from 6 to 15 zip codes.

OCT

1SE

RV

ICE

AREA

REA

LIG

NM

ENT

20162017URBANAGRICULTURE

Sacred Heartʼs La Mesa Verde gardening network successfully campaigned for San Joséʼs City Council to

establish Urban Agriculture Incentive Zone policy which provides incentives for the creation of community gardens.

SHCS sponsored the development of the San José chapter of Showing up for Racial Justice

(SURJ), part of a national organization that is dedicated to addressing racial injustice and

building solidarity with communities of color.

HOMELESSNESSPREVENTION

SOCIAL JUSTICESOLIDARITY

POLICY ACTION

SUPPORT SYSTEMS

PROGRAMS & RESOURCES

COMMITMENT C

APA

CITY ACT

ION

RELATIONSHIPS

LEARNING

LEADERSHIP

TENANTRIGHTS

With support from the Shortino Family Foundation, San José Unified School District, and individual donors, SHCS doubled our Summer Academy program to provide academic enrichment to 220 1st-6th grade students, operating at the Gardner School campus for the first time.

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

FLO

OD

REL

IEF

FEB 2

1

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E CREE

K F

LOO

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THE MILESTONES

2017SUMMER

ACADEMY

1381S. FIRST STREET

[@alma]SAN JOSE . CA

95110

BOARD OF DIRECTORSDeacon Steve HerreraPresidentArchbishop Mitty High School

Molly McDonald, Esq. Vice President Santa Clara University

Jonathan NobleTreasurer Microsoft Corporation

Jorge GonzalezSecretaryCommunity Leader

Eric BonesteelSan José State University

Chava BustamanteLatinos United for a New America

Brian Darrow County of Santa Clara

Diane Fisher Jewish Community Relations Council

Monica GomezNotre Dame High School

Maria RicoCommunity Leader

Bill RothVMware

Matt ZunigaBellarmine College Preparatory

ASSETS

LIABILITIES & NET ASSETS

2017 2016$ 2,828,585 2,288,368 4,336,138 4,181,617 1,279,324 1,250,119 8,444,047 7,720,104

$ 1,149,655 687,549 5,796,407 5,557,449 1,036,540 1,013,661 461,445 461,445 8,444,047 8,467,054

STATEMENT OF FINANCIAL POSITION

Current AssetsProperty & EquipmentOther AssetsTOTAL ASSETS

Current LiabilitiesUnrestricted Net AssetsTemporarily Restricted Net AssetsPermanently Restricted Net AssetsTOTAL LIABILITIES & NET ASSETS

STATEMENT OF ACTIVITIES

Community Service Block Grant 14.0%

Federal Energy 13.8%

Flood Relief26.0%

Interest 0.3%

Corporations 5.0%

Organizations/Schools 1.5%

Foundations 9.1%

Local Government 11.3%

Individuals19.1%

CASHREVENUES$10.6M

DonatedClothing & Linens20.9%

DonatedFood 30.2%

Donated Toys & School Supplies 3%

Community Service Block Grant 6.4%

Federal Energy 6.3%

Flood Relief11.9%

Interest 0.1%

Corporations 2.3%

Organizations/Schools 0.7%

Foundations 4.2%

Local Government 5.2%Individuals

8.7%

TOTAL REVENUES$23.0M

In-Kind Donations54.2%

Resource Development 4.6%

Research & Evaluation 0.7%

EnergyAssistance17.5%

Flood Relief26.5%

Essential Services Programs11.2%

Housing Assistance 5.2%

Self Suf�ciency17.3%

Organizing 4.6%

Management8.6%

Community Outreach & Education 3.8%

CASHEXPENSES$10.3M

Research & Evaluation 0.3%

FUNCTIONALEXPENSES$22.8M

Clothing & Linens21.1%

Food 30.4%

Toys & School Supplies 3.1%

EnergyAssistance

7.9%

Flood Relief12.0%

Essential Services Programs5.1%

Housing Assistance 2.4%

Self Suf�ciency

7.9%

Resource Development 2.1%

Management 3.9%

Organizing 2.1%

Community Outreach & Education 1.7%

In-KindDistributions54.6%

PULSE MAKERMONTHLY DONOR PROGRAM

Longtime Sacred Heart leader

Rubi Quezada helps teach our Early

Childhood Education Program and

serves as a Lead Promotora for

Pack-A-Back and holiday programs.

Her children, Joshua, Jashon,

Jesse, and James, participate in

our education programs. “The programs

at Sacred Heart,” Rubi told us,

“ help me be a better mother and person.”

this was a message left for us from a donor after making an online gift. It is the same sentiment we want to share with our supporters. thank you to the thousands of individuals, companies, organizations, faith communities, unions, foundations and public agencies for making our work possible.

“San José depends

on you.”Monthly gifts through our Pulse Maker Monthly Donor Program are a great way to support Sacred Heart and are vital to ensure we have steady funding throughout the year.

“It gives me a lot of pleasure to

give a small monthly donation to

Sacred Heart. By making it an

automatic deduction I know I won’t

forget to support the amazing

work they do. This is an organiza-

tion that really makes love visible

in our community!” - Carol Greene

PulseMaker Monthly Donor

thank youkey 2016-17 investors

vision

mission

a community united

to ensure that every

child and adult is

free from poverty

to build a community

free from poverty

by creating hope,

opportunity, and action.

we provide essential

services, work together

to improve our lives,

advocate for justice,

and inspire our community

to love, serve, and share.

REPORT20162017

JUL 2016 – JUN 2017

“My family and I moved to

San Jose from Oakland 16

years ago. My mother, a single

mom of 3, would wake up

early and wait outside for the

doors to open at Sacred Heart

Community Service so that

she could get food and clothes

for my siblings and I. Giving

back to the community and

organizations that lifted my

family up is what drives

what I do everyday.”

– Yvette Gonzalez

SACRED HEART COMMUNITY SERVICE . 1381 SOUTH FIRST STREET . SAN JOSÉ CA . 95110408.278.2160 . WWW.SACREDHEARTCS.ORG

BOARD OF DIRECTORS MEETING Friday, October 27, 2017 Sacred Heart Community Service – Fiesta Room 1381 South First Street . San José . CA MINUTES Attendance: Board: Eric Bonesteel, Monica Gomez, Jorge Gonzalez, Molly McDonald, Matt Zuniga, Chava Bustamante, Diane Fisher (call in) Staff: Lily Watts, Sofia Bermudez, Darren Seaton, Lydia Guel, Lorena Sánchez-Castañeda, Jill Mitsch, Mike Soukup, Renan Ramirez, Graciela Mann, Anna Koski Public: Jacky Franco and Nelly Blas, both SOMOS translators, Bill Roth from VMWare as prospective BOD member, Dan Moors and Georgia Petrakos, both from Armanino LLP A. Call to Order/Reflection Molly McDonald called the meeting to order at 7:08am. She read the following reflection by Paolo Coelho and invited all those present to discuss it in small groups. She read:

“When we strive to become better than we are, everything around us becomes better too.” Mr. Bonesteel and Mr. Roth shared their perspectives on the quote.

B. Agenda Review/Chair Update During this time Ms. McDonald asked those present to introduce themselves. At this time there were no further changes to the agenda. C. Public Comment There was no public comment. D. Financial Statements FY 16-17 (Dan Moors & Georgia Petrakos, Armanino LLP) Representatives of Armanino announced that SHCS finished the audit on the audit schedule time. Mr. Moors commenced by thanking Poncho Guevara, Darren Seaton, Mike Soukup and the rest of the financial team for the support during the audit process. There were no audit adjustments, which Mr. Moors emphasized meant Mr. Soukup and his team did a great job keeping the financial records for Sacred Heart. Less than 15% of the nonprofits Armanino works with have no adjustments. Mr. Moors mentioned that the financial information the Board of Directors gets throughout the year is good, accurate information. Armanino LLP works with over 600 nonprofit organizations and part of their job is to share best practices. He said that Sacred Heart implements their recommendations consistently and timely, which enables Sacred Heart to have less audit risk. The accounting team proactively communicates with Armanino throughout the year, so the auditors are already familiar with what happens during the year. Mr. Moors covered the documents shared with the BOD: Main package which is the auditor's report, letter to senior management with review of last year's management advisory comments, Sacred Heart's status on Charity Navigator. He covered two things during the meeting: audit financial statements and management recommendations. Mr. Moors started by sharing the Independent Auditor's Report (p1), which in summary presents and unmodified, clean opinion. This means that Sacred Heart has a clean audit and is low audit risk. Mr. Moors then covered the Statement on Financial Position (p3). This is a snapshot in time of Sacred Heart's assets and liabilities, providing comparative totals for 2016. SHCS's total assets in 2016 were $7,720,104 and $8,444,047 in 2017, which represents an increase of $723,943 in assets. Account balances fluctuate through the years, so auditors look at why that happens. Net income has been consistent in the past few years, but assets have gone up. This is partly due to Destination Home grant we received. SHCS got paid in advance for 1 quarter and 1 month. This increase in net assets is due too to the Board designated operating reserve fund and the Board designated endowment fund. Mr. Moors then covered SHCS' current ratio. The current ratio is current assets vs. current liabilities. SHCS's current ratio with inventory is 2.5 to 1 and without inventory is 2.2 to 1. This is a great standing. Net assets increased by $261,837 in the last year. The $461,445 permanently restricted is funding that SH cannot spend, but continues to accrue interest from. Total unrestricted is $5,796,407, of which $4,336,138 is non-liquid property and equipment, and $1,460,269 is liquid net assets. Since 2013 SHCS has been growing its Board designated Operating Reserve. Mr. Moors congratulated SHCS for continuously to grow and invest in its Operating Reserve. An operating reserve is calculated as total expenses excluding in-kind, depreciation and financial outliers (like the flood relief for SHCS). A minimum of 3-6 months is considered a best practice target for operating reserves. SHCS now has close to 2.5 months in its Operating Reserve.

Mr. Moors then referred to the Income Statement (p4). There was a change in net assets of $261,837, which is about 23% growth in support and revenue for the year. In the for profit world this is known as net income. This is partly due to SHCS doing a better job of capturing in-kind donations using a new electronic system to do so. Additionally, contributions went up due to the flood relief. The auditors tested compliance with controls over cash disbursement for flood relief and there were no risks identified. Mr. Moors then explained that under Program Services (p5) expenses went up by $4,287,384 due to open positions that were filled, employees who were on leaves returning, healthy growth of the organization and COLA provided to staff. Moving on to Support Services (p6), Mr. Moors shared that if donated food, clothing and toys are removed from the equation (since they're items that come in and go out), SHCS is spending 86 cents of every dollar on programs and services, 9 cents on management and general, and 5 cents on fundraising. Mr. Moors referred to the Charity Navigator handout, and explained that ratings are based on two categories: financial ratings and accountability/transparency. SHCS has 100% on accountability/transparency. SHCS used to be at a 4 star rating, but was downgraded because they estimated that our program expenses decreased by 1.3%. In 2017 SHCS grew 25%, so once the new 990 is filed the rating should go back to 4 stars. Mr. Moors informed the Board that Charity Navigator is looking at implementing a new score around impact and results reporting. He deems this to be of great importance to SHCS because the organization has a great story to tell (p8) and that's the story that donors will look for when deciding on the impact of their investment. Mr. Moors continued to review the details on the Schedule of expenditures of Federal and Other Governmental Awards (p32-35). Total Expenditures for Federal Awards was $3,798,882 which required additional audit studies. Finally Mr. Moors guided the board to the Schedule of Findings and Questioned Costs, which summarized that SHCS has unmodified financial statements and qualifies as a low risk auditee. An organization needs to have previous two years as unmodified to be qualified as a low risk auditee. This qualification benefits the organization because it then needs to only audit 20% of federal expenditures (vs high risk auditees that audit 40%). Some donors look at risk level, and if the organization is low risk then they feel more comfortable donating. Ms. Georgia Petrakos read the Current Status of Prior Years' Management Advisory Comments, highlighting that the SHCS has implemented or is in the process of implementing all prior recommendations. First recommendation was to implement a month-end closing checklist, which has been implemented. Second recommendation was to updated the in-kind donation records as soon as possible after receiving the donation. Ms. Petrakos noted that with the new electronic system this is happening real time, as the donation is received by SHCS. Final recommendation was to adopt a system requiring all voided checks be accounted for. This recommendation has been implemented with Abila's "Spoiled Check" system. After no questions were presented by the board, there was a motion to approve the minutes by Jorge Gonzalez. Seconded by Eric Bonesteel. Motion passed unanimously. Ms. McDonald thank the auditors for their presentation and work, as well as Mike Soukup, Finance Manager, Darren Seaton, Deputy Director, and all the staff who worked on the audit. She recognized how far the organization had progressed since 2013 and appreciate everyone's hard work to make that happen. Mr. Moors and Ms. Petrakos left the room at 7:51am. E. Finance & Administration Report YTD Financials Mr. Darren Seaton reviewed the YTD financials, including the profit and loss schedule. Mr. Seaton explained that during this time of the year we raise a lot of money that it is then seasonalized the rest of the year. YTD variance shows Foundations in red, which is due to a timing issue with United Way. SHCS was expecting to receive donation from United Way in July, but came in September instead. This has then been resolved. For the homelessness prevention grant Destination Home, we're lead contractor with number of agencies subcontracting that have been slow to bill us. With regard to operating expenses, Mr. Seaton shared that the grow in wages is a reflection of employees being on leave and then returning to work and some turnover in Essential Services, which had 4 open positions. Mr. Seaton expects to see a 10% increase in benefits in second half of the year. Conflict of Interest Forms Mr. Seaton reviewed the Conflict of Interest Policy, reminded everyone that they had the complete policy available in their Board Packets, and asked those present to sign the Conflict of Interest Policy Affirmation Statement. Ms. Graciela Mann then asked those present to also update their contact information on the board roster. Resolution 2018.03 LIHEAP Contract Mr. Seaton shared that our LIHEAP and CSBG contracts run on calendar years, so we need new board resolutions on an annual basis. Motion by Chava Bustamante to approve Resolution 2018.03 LIHEAP Contract. Seconded by Matt Zuniga. Motion passes unanimously. Resolution 2018.04 CSBG Contract Motion by Chava Bustamante to approve Resolution 2018.04 CSBG Contract and seconded by Eric Bonesteel. Motion passes unanimously.

F. Board Development Resolution 2018.05 Board Member Election Jorge Gonzalez reported that Steve Herrera, Jorge Gonzalez, Eric Bonesteel, and Poncho Guevara interviewed two prospective board members. Productive discussions aimed at determine the fit in terms of values, goals, and organizational needs. Mr. Gonzalez recommends approval of both representatives of the public sector outlined in Resolution 2018.05 Board Member Election. Motion to approve by Eric Bonesteel. Chava Bustamante seconded. Motion passed unanimously. G. Holiday Program Preview Ms. Lydia Guel provided the board with an overview of SHCS' annual Holiday Program. Ms. Guel reported on strategic program goals for 2017 Holiday Program. This year, SHCS will distribute 4,200 Thanksgiving food boxes, 3,200 Christmas food boxes, and 18,600 toys and books for 6,200 kids. In light of recent guidance from several board members following a series of Programs & Strategy committee discussions, 4 program goals were outlined for 2017’s campaign: • Support a consistent public narrative: where social service meets social justice • Emphasize the direction of our strategic plan: incentivize membership and active engagement • Strengthen our approach to the value of dignity, compassion, and respect: decreasing lines and becoming more family friendly • Build opportunities for meaningful action. In effort to reach goal #1, volunteer welcomes will focus on building solidarity at the beginning of each shift and media messaging will reinforce an assets-based public narrative about how our members are supporting each other in creating a sense of home and community in Santa Clara County. In effort to reach goals 2 and 3, the registration process has been redesigned to include updates for contact information and income, as well as to offer several invitations for engagement. Wave 1 will grant perks for active members including pre-registration in programs and an exclusive Member Party on 12/14. Board members are invited to participate. Advance food appointments are no longer necessary for SHCS members for either Thanksgiving or Christmas, giving members choice of when it is most convenient for them to pick up their holiday food boxes. While on site for Thanksgiving food pickups, members may also register for toys. A catch-all registration day will take place for all remaining toy appointment slots on Friday 12/1. These systems are also being redesigned to create more family-friendly activities and volunteer shifts as well. In effort to reach goal #4, follow-up orientations are being designed for reengagement after the holidays around: • Programs and resources • Mutual support: volunteer shifts that will address the typical post-holidays lull • Policy action: where members can learn how we are fighting for renter protections, more affordable housing, and for immigrant rights Discussion ensued and several board members positively affirmed the direction of these efforts to stay in alignment with the agency’s current strategic plan.

H. Fund Development Report Mr. Eric Bonesteel commenced his Funds Development report. Mr. Bonesteel reminded the board of the goals set forth for the group:

● Each board member attends a minimum of one SHCS event ● Each board member volunteers at least one time during a major campaign ● Each board member supports major campaigns

Board members received a handout that listed ways, dates and opportunities for the BOD to be involved in the holidays and beyond. Mr. Bonesteel asked those present to confirm a date for volunteering together as a team, and Saturday 12/16 Christmas Food Packing was identified as the day that worked for most. Mr. Bonesteel invited all board members to contact Ms. Terri West in case they want to volunteer with friends and family. He also invited everyone to a board end of year social in conjunction with SHCS' senior managemet for Thursday, Dec. 7th. The night will start with drinks and appetizers at a local restaurant in Willow Glen from 5:30-6:30pm and continue till 8pm at SHCS' fundraising event at Hicklebee's. The Staff Appreciation Breakfast is Friday, Dec. 8th and Ms. McDonald, Mr. Gonzalez, Ms. Gomez, Mr. Herrera and potentially Mr. Bonesteel have volunteered to coordinate it. Mr. Bonesteel reminded everyone to submit their BOD Pledge forms if they haven't yet. Only 3 BOD pledges have so far been submitted.

I. Program Spotlight: Essential Services Ms. Lily Watts, Director of Essential Services, provided an overview of the Essential Services team that is composed of 10 staff members, including 1 director and 2 managers. Its network includes 150 regular volunteers, of which 32 are leads. Mr. Sofia Bermudez shared a little bit of

her background at SHCS. She started as an ECE coordinator, then moved to La Mesa Verde to create the program from its beginnings with Mr. Raul Lozano, and finally transferred to the Welcome Center where she recently became its manager. Ms. Bermudez distributed a story about a SHCS member. Ms. Watts and Ms. Bermudez then shared all the services that the Welcome Center provides to members and discussed pathways of engagement for members. Ms. Watts further explained that the number of individuals coming to SHCS has increased, primarily due to the increase in food zip codes assigned to SHCS and also due to the families who came to the organization searching flood relief. The Essential Services team is also partnering with Second Harvest Food Bank to do a mobile food pick up from the Galarza Elementary school once per month. The school administrators approached SHCS with the proposal not only to assist parents, who are already going to the school to pick up their children, but also teachers and school staff who also need food assistance. Additionally, Ms. Watts enthusiastically shared that on that afternoon the Essential Services team would be receiving it's new truck! Another program improvement was the integration of electronic in-kind donation recording system, which was commented on by the financial auditors as already producing more accurate records of our in-kind donations. Ms. McDonald thanked Ms. Watts and Ms. Bermudez for bringing the member story to the board because it made it more real and impactful for them.

J. Consent Agenda The Consent Agenda was considered. The consent agenda included: Board of Directors Meeting minutes August; Funds Development committee minutes September; Audit Committee minutes September; Board Development Committee minutes October (2); Finance & Administration Committee minutes October, and Audit Committee minutes October. Jorge Gonzalez made a motion to approve the consent agenda. Matt Zuniga seconded. Motion passed unanimously. K. Public Forum There was no public comment.

L. Closed Session Executive Director Review was discussed in closed session.

M. Adjourn Meeting was adjourned at 9am

PROGRAM & STRATEGY COMMITTEE MEETING Friday . January 9, 2018 . 3:35pm Sacred Heart Community Service – Magnolia Conference Room 1381 South First Street . San José . CA MINUTES Attendance Board: Steve Herrera Staff: Poncho Guevara, Lydia Guel, Matt King, Rachel Wright A. Holidays Debrief Strategic plan focused on engagement, therefore built goals in the holidays around engagement Previous holiday goals ● staff teamwork and leadership development ● outreach to people to receive, volunteer

o Served the same numbers of people o This year we pre-registered more people than before because we shifted from registering through institutions, to

registering our most active member ● get donations

o Financially we are ahead of where we projected to be at this time of year (300K) primarily because of bequests. We need to raise more among individuals, corporate, and foundations

o December saw fewer individual donations than in years past ● media coverage with our narrative – justice vs. charity This year we added goals: ● get volunteers and recipients to come back, become more deeply engaged

o invited recipients at toy registration asked them if they wanted to learn more about programs and resources, attend volunteer orientation, or attend social justice

o asked volunteers at volunteer welcomes – volunteer in Jan, attend Rapid Response training, donate to SHS, attend social justice orientation

o Measures: ▪ Did people indicate they want to be more deeply engaged?

o We had a lot more people than we thought said they wanted to… waiting to see if they follow-through (28% of volunteers, they mostly wanted to do more volunteerism vs social justice slant, 455 members)

▪ Did people get more deeply engaged… can we do greater numbers on pre-reg ● make it more family friendly

o people can bring kids to toy day o attend holiday party

These changes create the expectation that staff invite people and people are invited We need to continue these invitations, figure out what to do with these invitations, learn from each approach Challenges ● reg becomes 8-9 minutes compared to 1-2 ● language capacity for registration translating from SalesForce in English ● building follow-up mechanisms

o create capacity in the organization to allow people to attend orientations and volunteer in their language B. Holiday Follow Up

● In Jan/Feb we scheduled 6 orientation/training opportunities

● Steve – consider analyzing the content of the holiday welcomes, perhaps tweaking the content will impact the follow-through on the commitment. Will we evaluate that?

○ A compelling story about poverty would draw people in – but wasn’t there ○ Perhaps terminology of “white privilege” could put people off ○ Organizing should be there, but in this context it was perhaps too heavy. Not everyone is familiar with that. ○ Educationally – the content might have been too advanced or controversial for this context. Can people integrate

those ideas? Do those ideas lead to deeper engagement? NEXT STEP: Rachel can survey the board members to see how they worked relative to our new strategies and goals

C. Board Operating Plan ● In 2016-2017 our board ops plan tried to mirror our values. We did ok, we had some challenges with tracking. For

example, social justice – the board wanted to help with the voter guide, show up at direct actions How can we move forward in the process with board operating plan 2017-2018?

● Steve – rollover last year’s operating plan to this year and present in February AND simultaneously plan for the retreat for 2018-2019

D. 2018 Priorities

Overlap between managers and directors at Sacred Heart: 1. Build infrastructure on SalesForce 2. Continue to have programs integrated 3. To ensure families get what they need 4. To ensure that engagement is approached wholistically 5. Working with external partners 6. Continue strategy on engagement and invitation to get involved 7. Capital infrastructure – space and technology needs

Anything else? Steve – initial reaction is that those are right. What about having offsite office space? Is that a no-go? We’ve done it before, but it seems staff want to be at s. first. One benefit of working here is that staff want to feel connected to the larger organization Steve will send an email to board to ask for any more input on the priorities Poncho – also sees thinking about our continued role in the resistance against larger national threats and locally displacement Steve what about our priorities on tackling spending the Measure A funds. Can we get an update/play a role in that? Matt - we are working on the bridge housing work to get people off the street until permanent housing is built. A website is on the way to share with voters Our committees are helping people do more grassroots work for “yes in my back yard” initiatives. It might not look like SHCS work, but it will empower them and build the power of the people affected Poncho - trying to help organizations come together to support that… Silicon Valley at Home & ad hoc working group to have a coordinated strategy for “YIMBY” at a regional level. Policy and communications strategies with the community

E. Next Month ● Mid-year review of our operating plan numbers

F. Meeting Adjourned - 4:45pm

FUND DEVELOPMENT COMMITTEE MEETING Friday . January 19, 2018 . 7:30am Sacred Heart Community Service – Magnolia Conference Room 1381 South First Street . San José . CA MINUTES Attendance Board: Eric Bonesteel, Monica Gomez Staff: Jill Mitsch, Jay Pecot, Annette Pizzo, Poncho Guevara A. Holidays ● Met traditional goals for distribution, 3,368 volunteers (corporate volunteers up 15%), will hit revenue goals but will take more

work than previous years - lower online donations on 1st distribution day of November. Holiday program goals:narrative,vol welcomes used 5 calls to action, no registration day.

● Next year/PAB replacement launch in lieu of reg day? Monica suggested press conference with staff, family, Poncho suggested that press turned out for dist week, media has been uneven for last few years. Eric suggested offering a new visual for media. Monica mentioned her husband (Damian Trujillo) has a show in English/Spanish that could highlight holiday program, books guests 2 months in advance. Wednesday tapings, he could give input/advice.

● Membership- 400+ pre-registered, sponsorship benefits, boosting monthly donors- new ways to intro membership benefits to donors? T-shirts? Stickers? Matching? Corporate follow-up (Jay) for Payroll deduction/match. Strengthen approach to reflect Dignity Compassion and Respect- family friendly vol shifts -100 children, 8 BOD vols, family friendly area for members-350 families, no overnight lines. Poncho will be discussing partnership with Downtown College Prep next year for toy distribution/childcare etc.

● Opportunities for meaningful action - 28% of vols signed up, 251 signed up to donate- invited to State of the Heart brunch, Target group for valentines day campaign-

● Break up with inequity: target audience? Monica suggested using Snapchat location filter? (Purchase location filter) save w/hashtag, use in a slideshow, photo grid, text donation/invite to orientations/volunteering. Next Steps: Friday afternoon orientations, earlier planning

B. YTD revenue ● Poncho reviewed that in general, on track. Individuals down for the year ($180K in bequests skew the numbers), expenditures

are below projections due to vacant staff positions; Corp donations in the pipeline (Google), ramping up for PAB. ● Eric suggested getting the matching form/distribute link for employees to set up payroll deduction donations while they are

here volunteering ● Poncho explained that family friendly volunteer opportunities, etc are about developing donor relationships over the long term;

upcoming foundation changes/new opps w/Sunlight Giving, Google. C. State of the Heart ● Invitations to major, monthly, new holiday donors. So far 30 yes RSVPs, Program will be video presentation of volunteer-

donors, call to action for more opportunity from Poncho. ● Giving Code Grant $25K for fundraising, engaging donors includes $5K for consultant for evaluation & training of staff,

board.Jay suggested including Giving Code Summary in board packet for next month’s meeting. D. May Board Happy Hour ● Happy Hour to be held at Santa Clara Valley Brewing, Jay will connect with the brewer. E. General Updates ● Committee Update: Eric will be stepping down as committee chairman ● Thank a thon went very well - 200+ calls made in 90 minutes. Good turn out: 3 Board members ● Next Board of Directors meeting: February 23rd, 2018 F. Meeting Adjourned - 8:55 am

PROGRAM & STRATEGY COMMITTEE MEETING Tuesday . February 13 . 2017 . 3:30pm Sacred Heart Community Service – Magnolia Conference Room 1381 South First Street . San José . CA MINUTES Attending: Jorge Gonzalez, Lydia Guel, Poncho Guevara, Steve Herrera, Matt King, Rachel Wright Operating Plan Rachel showed the committee the 2017-18 Board Operating Plan. A survey will go out this week asking board members for information on what they have done since July 2017 so that we can report out at the board meeting. Q: Does this plan show the how the board is contributing in a meaningful way? The committee noted that right now, this is the minimum of engagement - but there are other things happening at a higher developmental level. Jorge commented that the real assessment is whether the board member themself feels good about their engagement. Steve noted that the goal is that the board member sees how they are engaged, feels good about it, and wants to get more involved, fired up. Over time we might want to push harder beyond the minimum. Poncho noted that in the past year or so many board members have become more engaged and are doing more for the agency. While a few have used this threshhold to determine is they really can continue to serve, whch is not a bad thing. Q: Thinking toward 18-19 are these still what we want? The committee discussed that in the future we might want to include some measure that demonstrates leadership beyond this minimum. For example, a concept capturing a percentage target of board members are engaged in a “special project.” This can be broad so that, for example, Monica can do a fundraiser at her house and Steve can produce a video, but they are both engaged in a way that is meaningful to them and valuable for the organization, but these specific activities are not necessarily captured in the goals (2 videos, 1 handbook review, etc.). To incorporate a concept like this we should 1) make sure we can provide staff support and 2) be strategic so that the special projects support existing work and strategy. Q: What is a better mechanism for keeping this updated The team decided that we could send a link to the board to log their activities just before every board meeting. That way we can track progress more regularly and the board won’t forget what they’ve done. Retreat Currently retreat is set for June 1 but that won’t work for some schedules. NEXT STEP: at the board meeting, present two alternative dates and decide on one that will maximize attendance: May 18 or June 8 Resistance We took some time to get some advice on how SHCS can continue to push for social justice in the face of threats to civil rights, immigrants, the safety net. Last year our main output was working on immigration through our Know Your Rights trainings and developing a Rapid Response Network. This decision aligns with our past pattern of listening to what our members want and need, responding to issues that are deeply and widely felt among those that participate in our programs. We didn’t address the other topics that were threatened around poverty and safety net. I nlarge part because most of those threats didn’t materialize last year. However, the Administration’s recent budget proposal is highly problematic for issues that affect the poor - it brings up 1980s version of racist anti-poor policies. Our lobbyist in DC says it is dead on arrival, but should/how can we respond? Jorge - these are policy issues. At the beginning there was fear and confusion about what 45 will do. It can make us stronger afterward. Our tone should NOT be a victim mentality but how can we be proactive in countering it with a positive message. The committee members noted that if we don’t have a lot of resources bring it up will make people angry, but we need to channel that anger.

Steve suggested we work with the resources we have. Ask our Member of Congress, Representative Lofgren, to write policies that proactively address the things the community wants and needs. We can do some advocacy work to tell our representative what direction we want to go in instead of being on the defense Poncho noted that sometimes we do things regardless of the resources. For example, we didn’t have money for rapid response when we started it but it was important enough for us to lose money and put ourselves out there, even at the risk of alienating some donors. Lydia noted that other members have provided us with more resources since we started this work, because it is so important to them. A key question is what issues rise to the level of putting some time into it? Steve noted that we could develop a policy paper of 10 things we want and direct them to create policy around those. We can organize advocates to bring that to our representatives and senators. Organizing is critical, but maybe we can do some advocacy on these national issues to work with and engage some representatives. Sacred Heart hasn’t been doing that. Another thing we can do is examine the language we use around things that we endorse. Jorge noted that it is always important to think about how we cultivate leadership. The type of leadership and the words attract certain type of people and keep others at bay. We can say the same things in a different ways so that we can build a culture and that influences other people and organizations in a positive way. Reverend Pinkney Event Sacred Heart signed on as co-sponsor an event on Feb 23rd organized by CHAM and agreed to host the event, but didn’t see the flyer with the headline “Resisting Corporate Dictatorship”. A few Board members suggested that this language may not be welcoming to some volunteers who happen to work in the private sector, who we are trying to invite into our work and have an open mind. Lydia - We are co-sponsoring an event that is directly in line with our mission. We could have crafted a better message and branded it better… but the event itself supports our regional partnerships, coalition allies, etc. Poncho noted that one of the groups that is involved in the event, Serve the People (STP), is working to take a very aggressive anti-corporate, anti-Google development stance. A number of the core participants in STP are SHCS staff. There may be a growing sentiment that they feel SHCS is too institutional and conservative. Our assamblea of our leaders is coming together this week to think about how to respond to the Google development. It will be interesting to see how these ideas surface in our base. There is real concern and fear from our community about the impacts, while there is some righteous anger among some of our staff who want a more radical approach to shift the dialogue. Overall it is good to move the center of gravity of the conversation toward and anti-displacement space, we need to discuss how we are going to create a message that will meaningfully engage a broad base to fight. Jorge suggested that a strictly anti-Google response is not truly progressive. Perhaps, we should strive to make our interactions with Google a love fest, in order to put it on our terms, on the community’s terms. We should communicate to them that they can be a part of history, they can create a model for the best schools, great housing, the best community. The tone should be more collaborative and welcoming than antagonistic. Lydia noted tha an antagonistic tone makes the community development work more difficult. The team wonders if they should not invite Google employees to get involved. But, her feeling is that we should absolutely invite Google, welcome them to join, get to know the community and be a part of the solution. Poncho shared a metaphor for the inflection point we are at right now as an organization, which presents a challenge internally. What type of organization are we creating? Is it a walled garden, a safe place where peole who believe in justice and liberation can be together, feel supported and empowered and are protected from people who disagree with them. Or is it a farmers market where everyone is welcome? We are offering something that is healthy, empowering, and hopefully liberating, but we are bumping into people who we will disagree with, and some of them will reject what we have to offer, but we are not necessarily protected from them. Do we need to create a space that is safe, or one that is challenging? Steve emphasized that there is value in the hard discussions and dialogue. It’s not about Google not coming and I win. It’s more of a collaboration and conversation. It doesn’t always have to be about agreement. We bring it up, deal with it, clarify things and then learn from that. Building a bridge between people who are ignorant of what is going on, teaching them, involving them. It’s a process. REPORT OUT Jorge will do the report out RE: the Board Operations Plan and ask the board what goals and outcomes they have for the Board retreat.

FINANCE & ADMINISTRATION COMMITTEE MEETING Thursday . February 15 . 2018 . 8am Sacred Heart Community Service – Executive Office 1381 South First Street . San José . CA MINUTES Attending: Poncho Guevara, Jonathan Noble, Bill Roth, Darren Seaton, Mike Soukup Attendance Board: Bill Roth, Jonathan Noble Staff: Poncho Guevara, Darren Seaton, Mike Soukup FY17-18 Mid-Year Financial Statements Poncho Guevara reviewed the mid-year financial statements for FY17-18. Overall, through December, the organization was tracking very close to projections for the fiscal year with a slight operating surplus of $22, 770. However, Mr. Guevara also cautioned that typically he likes to see a bigger surplus at mid-year. He noted that the organization was about $170,000 in surplus in November and that we had fallen short of some December targets to bring us to a place where we are now. There is speculation of many reasons for this including donor fatigue from the fires and other natural disasters that have occurred. Another takeaway from the mid -year results are the organization’s government contract revenue. Sacred Heart has not spent the amount of money in government revenues in the energy programs that had been projected. To that end, while staff believes that this should be a money-in, money-out proposition it is presently showing an impact the organization’s bottom line. It is important to note that while financial statements have not been completed for January, Mr. Soukup has compiled contributed revenue and it appears as if the organization should begin to come closer to projections year to date. In a closer examination of the profit and loss statement it was pointed out that the organization overall has underspent on expenses with the exception of management and general, and facilities and technology which were both above projected budget. This was due to painting the building – which comes from the capital account – and legal fees due to ongoing issues and the audit costs coming in higher that projected. Mr. Guevara stated that generally, because of the amount of underspending, he would like to see a greater surplus at midyear as we have had the last few years where the organization has been able to post slight surpluses. Mr. Soukup reviewed the organization’s balance sheet and said the numbers indicated that it is very positive. The organization is collecting on receivables and it has been many years since Sacred Heart has accessed its credit line. Deferred revenue on the balance sheet was explained to be advances on CSBG. Additionally, it was noted that Destination Home had been paying in advance which also added to a very healthy cash position for Sacred Heart. Mr. Soukup went on to review the balance sheet metrics and the cash flow statement which were trending positive. Following Mr. Roth asked questions about statement of functional expense. Mr. Soukup explained how the unrestricted funds collected were attributed to the fundraising department and that no other department in the organization was self-sustaining. Therefore, the losses in the other departments were funded by the surplus created by the fundraising department. It was noted that the Energy department is contracted funded and is mostly self-sustaining. Mr. Soukup pointed to the Housing department which was also mostly self-sustaining. He noted that some programs administered by the department have no administration cost associated with them, accounting for a small deficit within the program. Mr. Roth noted that as a percentage the amount was small. Investment and Endowment Fund Policy. Mr. Seaton presented the Investment and Endowment Fund Policy. While the endowment fund is invested very conservatively, the policy calls for a committee to be formed and the portfolio and investment strategy to be reviewed by a subcommittee of the board.

This typically has not happened. Mr. Roth agreed to mark up the policy and bring it back to the Finance and Administration committee for review. Employee Handbook Mr. Seaton reviewed the employee handbook at its proposed changes to the committee. He noted that the changes were occurring presently were to comply with current law. This handbook was being reviewed by Sacred Heart’s counsel. It was also noted, that the senior management team of the organization’s work plan is to review any changes to policies and procedure. The meeting concluded at 9:02 AM