1

BUSINESS PLAN2016 2018

TABLEOFCONTENTS

FriendsoftheChildrenBusinessPlan2

A.EXECUTIVESUMMARY. 3

B.MARKETCONTEXT &NEED .. 4

C.STRATEGY&THEORYOFCHANGE. 9

D.SCALINGPLAN............................................................................... 13

E.EVALUATIONPLAN&KNOWLEDGEDISSEMINATIONPLAN . 24

F.ORGANIZATION... 25

G.FINANCIALPLANFORTHESCALINGINITIATIVE 26

H.RISKASSESSMENT,MITIGATION&CONTINGENCYPLAN.. 29

APPENDICES 30

WHYWEEXISTFriendsoftheChildrenisaprogramunlikeanyother.Wearethesolutiontobreakingthecycleofpovertyandthustheintergenerationalrepetitionofloweducationalattainment,teenparenting,andcriminality.Childrenwhohaveexperiencedtraumaorwholiveinextremepovertyexperiencealackofequityandopportunity,andmostoftheservicesavailablelacktheintensityanddurationneededtochangetheirlifetrajectories.Ourrelationshipbasedservicemodeladdressestheneedsofthesemostvulnerablechildren,empoweringthemtomovebeyondtheircircumstancestobecomehealthy,contributingcitizens.

OURUNIQUEMODELWeproactivelyselectkindergartnersfacingthemostsignificantbarrierstofuturesuccess. Usingarigorousprocess,validatedbyresearchaseffectiveforidentifyingchildrenmostatrisk,weselectdirectlyfrombothschoolsandthefostercaresystem. FriendsoftheChildrenhasauniqueabilitytoestablishrelationshipswithchildrenwhoarethehardesttoreach.Andwemaintainthoserelationships.Weprovideselectedchildrenwithintensive,individualizedguidancefromfulltime,highlytrained,salariedmentors(Friends)for12years,throughgraduation nomatterwhat.

SCALINGINITIATIVEFriendsoftheChildrenhasathreeyearnetworkwidescalingplantoimpact7,500ofthemostvulnerablechildrenby2018:

1.ScaleExistingChapters:DeepenimpactbystrengtheningexistingFriendsChapterstoexpandtheirreach2.ScaleNewChaptersandAffiliates: ReplicateChaptersinnewcommunitiesandembedthemodelinAffiliateorganizations3.ScaleCollaborativePartnerships:ProvidetrainingandtechnicalassistanceonFriendsbestpracticestopartners

EVIDENCEBASED,LONGTERMOUTCOMESThirdpartyevaluationhasfound:1

83%ofouryouthgraduatefromhighschool,whileover60%haveaparentwhodidnotcompletehighschool. 93%avoidthejuvenilejusticesystem,while50%haveatleastoneparentwhohasbeenincarcerated. 98%avoidearlyparenting,while85%wereborntoateenparent.

AcomparisonofFriendsoftheChildrengraduatestoaquasiexperimentalcontrolgroupfoundthatforourgraduates:2 AttainmentofHSdiplomaorGEDwas24%higher;juvenilejusticesysteminvolvement(incarceration)was30%lower;andteenparentingwas59%lower.Attainmentofthesethreekeyoutcomesbyprogramyouthiscomparabletothatofthegeneralpopulation,themajorityofwhomhaventexperiencedthesamedegreeoftraumaorchallengeasourparticipants.

SUMMARYOFFINANCIALMODEL&CAPITALREQUIREDTOSCALEWehavedevelopedadiversefundingmodelthatutilizesearnedrevenuewithineachscalingstrategyandgrowsbyleveragingastrongnetwork,neworganizations,andstrategicrelationships.Toachieveourplantogrowfromreachingover1,400childrento7,500childrenby2018,wewillrequireaninvestmentof$25millionoverthenext3years.

ItWorks!3

EXECUTIVESUMMARY

1 Mackin,Juliette,KateKissickandMeganRedfield.NPCResearch.2013.FriendsoftheChildren PortlandAnnualEvaluation20122013.2 HarvardBusinessSchoolAssociationofOregon.2011.SocialReturnonInvestment StudyUpdate.

FriendsoftheChildrenBusinessPlan 4

MARKETCONTEXTANDNEED:THEPROBLEM

TeenPregnancyPrevention

ChildAbusePrevention

ViolencePrevention

ChildHungerPrevention

SchoolDropout

Prevention

SubstanceAbuse

Prevention

GenerationalFactors EnvironmentalFactors CommunityFactors FosterCare Abuseor

Neglect Domestic

Violence PoorNutrition Substance

AbuseintheHome

PoorPerformingSchool

HighCrimeNeighborhood

FewHealthcareorCommunityResources

Poverty SchoolFailure ParentisaTeen Parentis

Incarcerated

Between2007and2012,thenumberofchildrenlivinginpovertyincreasedbyover20%to16million.3 BlackandHispanicchildrenaremorethantwiceaslikelytoliveinpovertyasthosewhoareWhite,nonHispanic.Childrengrowingupinareasofconcentratedpovertyfacetheabsenceofcriticalresourcesneededforhealthydevelopment.

Extremeobstacles,suchasgenerationalschoolfailure;parentalsubstanceuseandincarceration;violenceinthehomeandsurroundingcommunity;andteenpregnancycreateacyclewherechildrenfailwithineducation,behavioralhealthandfostercaresystems,andtoofrequentlylandinthejusticesystem.Theseentrenchedgenerationalchallengescausedaytodaybarriersimpedingchildrenssuccessinschoolandtheirsuccessparticipatingintraditionalyouthprogramsandservices.

3 ChildrensDefenseFund,ChildPovertyinAmerica2012:NationalAnalysis.2013.http://www.childrensdefense.org/childresearchdatapublications/data/childpovertyinamerica2012.pdf.

Therearenoshorttermfixesorsingleprogrammaticapproachesthatworkforthemostvulnerablechildrenlivinginhighriskenvironments.Instead,childrenwithmultiplegenerationalandenvironmentalriskfactorsfindthemselvesnavigatingacomplexwebofuncoordinatedprogramsthatlacklongtermsupportandarelationshipwithacaringadult.

ItWorks! 5

MARKETCONTEXTANDNEED:DEMANDPOVERTYANDRISKThereare2.4million4 childrenundertheageof6livinginextremepovertywith3ormoreriskfactors,including5:

Singleparent(9%) Lowparenteducation(4%) Residentialmobility(4%) Largefamilywith4ormorechildren(3%) Teenmother(2%)

ChildreninExtremePoverty 20116

Traditionalyouthservingorganizationshavemodelsthatreachvulnerablechildren,butstruggletoadequatelysupportchildrenfacingthegreatestchallengeslivinginthehighestriskenvironments thoseinextremepovertyandthosewhoveexperiencedthegreatesttrauma.FriendsoftheChildrenfillsthisvoid.

ABUSE,NEGLECTANDTRAUMA Almost35outofevery1,000fiveyearolds(theFriends

targetpopulation)aremaltreatedinthiscountryeveryyear7.

In2013,thereweremorethan670,000confirmedchildvictimsofmaltreatment,withmorethan140,000childrenenteringfostercareasaresult8.

AcrosstheUS,therewere20,600fiveyearoldsinfostercarein20139.

4 ChildrensDefenseFund,ChildPovertyinAmerica2012:NationalAnalysis.2013.http://www.childrensdefense.org/childresearchdatapublications/data/childpovertyinamerica2012.pdf5 NationalCenteronChildreninPovertyatColumbiaUniversity,YoungChildRiskCalculator.2012.http://www.nccp.org/tools/risk/6 TheAnnieE.CaseyFoundation,KIDSCOUNTDataCenter.2011.www.kidscount.org/datacenter7 USDept.ofHealthandHumanServices,TheFourthNationalIncidenceStudyofChildAbuseandNeglect,2010.http://demo3.westat.com/graphics/nis4/access_nis4.html8 U.S.Dept.ofHealthandHumanServices,ChildrensBureau,ChildMaltreatment2013. http://www.acf.hhs.gov/sites/default/files/cb/cm2013.pdf9 http://cwoutcomes.acf.hhs.gov/data/overview

WHY NOW?Ouroutcomesandstrongsocialreturnoninvestmentresultinahighdemandforourservices.Thoughtleaderswanttoinvestingamechangingapproaches.Systemscreatedtoprotectandeducatechildrenarefailingtomeettheneedsofchildrenandyouthfacingthetoughestchallenges.Ourmodeloffersanopportunitytochangelivesand maximizeresourcesandgetresultsforchildrenthatotherwisemightbeleftbehind.

WHONEEDSUSThechildwelfaresystem.Friendstrackrecordofsuccessservingprogramyouththatenterthefostercaresystemisofincreasinginterestasaneffectivefostercarepreventionandinterventionstrategy.Historically,30%oftheyouthservedbyFriendsexperiencefostercare andoutofhomeplacement.Thesefosteryouthwhograduatefromourprogramachieveourlongtermoutcomesatthesamerateastheirprogrampeers remarkableresultsconsideringthenationalstatisticsforyouthagingoutoffostercare(only58%graduatehighschool;25%enterthejuvenilejusticesystem,and71%arepregnantbytheageof21.)10

Theeducationsystem.Friendstrackrecordofclosingtheachievementgap,particularlyforchildrenandyouthofcolor,createsopportunityforeducationofficialstoinvestoutsidetheclassroomandimproveattendance,socialemotionallearning,andoverallschoolsuccess culminatinginhighschoolcompletion.

Youthdevelopmentprogramsthatwanttoeffectivelyservehighneedschildren,suchasTrelya,ayouthorganizationintheUKthatsecuredpublicfundingtoembedtheFriendsoftheChildrenmodelwithintheirprogram.

Programsspecificallydesignedtoaddresstheintergenerationaloutcomesweareimpacting;forexample,highschooldropout,teenpregnancy,anddelinquencypreventionprograms.

Communitiescommittedtokidsfacingthetoughestchallengesandhaveadesiretopartnerandanabilitytosecureanchorphilanthropy.

10 JimCaseyYouthOpportunitiesInitiative.2014.Web.

MARKETCONTEXTANDNEED:DEMAND

FriendsoftheChildrenBusinessPlan 6

ItWorks!7

MARKETCONTEXTANDNEED:ECOSYSTEMANALYSIS

Whiletherearemanyprogramsforhighriskchildren,thereareveryfewprogramsthatofferalongterm,individualized,andcomprehensiveapproachforthemostvulnerablechildreninthehighestriskenvironments.Ofthese,thereareevenfewerprogramsthatdeliveroutcomesthatbreakthecycleofpoverty.

Forexample,muchlikeFriendsoftheChildren,BigBrothersBigSistersofAmericaandHeadStartselectchildrenearlyandprovidethemwith1:1relationships,butneitherorganizationcommitstoeachchildfor12years.SimilartoFriends,CourtAppointedSpecialAdvocatesusesaformalselectionprocesstoidentifychildrenmostinneedofitsservices,butdiffersfromFriendsbecauseitdoesnotcomprehensivelyspendtimewitheachchildinschool,athome,andinchildrenscommunities,nordoesithavepaid,professionaladvocates.Withitslongterm,relationshipbasedapproach,Friendsisuniquelypositionedtomeetthedemandsofchildrenwithmultiplebarrierstosuccess.Forourexpansivecompetitiveanalysis,pleaseseeappendixp.17.

COMMUNITYPARTNERS(COLLEAGUES)FriendsoftheChildrensholisticmodelfillsinthegapsleftbyourcompetitors.Infact,weseethesesameorganizationsascommunitypartners,orcolleagues.Becausewebuildtrustingrelationshipswiththecommunitysmostdisenfranchisedchildrenandfamilies,wehaveasynergisticrelationshipwiththesecolleagues,improvingtheiroutreach,access,enrollment,andsupporttothehighestriskchildren.Asthecommunityhub