Let’s ask new questions on Homelessness
Congratulations and Thank You! The state of homelessness has disturbed you and bystander is not who you are. You want to help and have the means to make an impact. Information from a homeless services provider has made it to your inbox or desk and you’ve scheduled a tour of the programs. The person you’ll meet is a fundraiser in the development department.
I’ve introduced hundreds of Angelenos to nonprofits with a mission to end homelessness that are worthy of their time and philanthropic dollars. The questions asked at the first meeting are usually the same. You’re going to get to skip the 101 part of the conversation. You’re going to have a more fulfilling meeting. You’re going to be one step closer to making an impact that is meaningful to you.
Here are the questions I get asked most. Don’t worry, the myth about weather is one of them. At the end of this five minute article, the first sixty minutes you spend meeting with the potential nonprofit partner will be much more productive.
Why are so many people homeless?
The overwhelming majority of people experiencing homelessness are due to stagnant wages, lack of affordable housing, and economic hardships.
Since 2000, the cost of living has increased 30% while the average income has decreased 3%.
The median cost of a home is $760,000. Angelenos would need to earn $41/hour to afford the median rent of $1,755 for a 1 bedroom or $2,235 for 2 bedrooms. Los Angeles is short 500,000 units of affordable housing.
The statement “We’re all just one accident away from being homeless” reaches every economic class. 74% of all employed individuals in the U.S. are living paycheck to paycheck. This includes 25% of families earning over $150,000 per year.
But what about the people who choose it as a lifestyle?
Over 90% of people experiencing homelessness report they want to be housed. That’s about 60,000 families, adults, and children that have clearly expressed they do not want to be homeless. Let’s not throw the baby out with the bathwater.
How does a homeless service provider get their clients?
A person in distress may connect through 211 or a good Samaritan may reach out on their behalf via LAHOP.org. Some walk up to a shelter. Some are introduced in their encampments by an outreach worker.
That person will then be assessed and input into the Coordinated Entry System (CES). Where they fall on the vulnerability index, whether they are adults, families with children, or transitional age youth, and which region of Los Angeles County they reside will determine which agency they will be directed to. Union Station Homeless Services is the designated lead agency for the San Gabriel Valley and serves individual adults and families with children.
How does someone get a bed?
After connecting with an outreach worker or case manager, they’ll complete a VI-SPDAT, a questionnaire to determine the vulnerability of the individual. Their vulnerability and availability of the agency determines if they’ll get a bed. It’s unlikely any homeless service agency has vacancy. They most certainly have hundreds of people in the queue.
Note, depending on the region of L.A., woman or family with young children won’t be turned away even if there isn’t space. They’ll likely receive a motel voucher for seven days as they await services.
How long can someone stay?
They can stay at the bridge housing location as long as they need and continue to work towards finding a permanent, affordable residence. We all grieve, recover, and grow at different paces. Visit any homeless service agency and you’ll find the clients often have jobs. After time spent in evidence based, successful programs, many have income, jobs, and are ready to move into their own homes. However, there’s just not enough housing. It would be counter-productive and cruel to kick someone out to likely just start the entire process all over again.
What is the average length of stay?
Before the pandemic, it was 4–6 months.
Aren’t most coming from out of state because of the weather?
Prior to falling into homelessness, 71% lived in Los Angeles for over 10 years; 80% over 5 years.
Aren’t most of them homeless because of drugs or mental illness?
Less than 35% report a mental illness or substance issues.
If they get free housing and food, what’s the incentive for them to work?
It’s not free and the program participants do contribute. Depending on the agency, bridge housing residents allocate 20%-30% of the income from Disability Income, Social Security Income, or General Relief to a savings account to be utilized for a security deposit once their rental application is accepted. A program participant living at a permanent, supportive housing site will also have a portion of their income allocated toward rent.
How much does this nonprofit spend on overhead expenses?
The 15% metric is an over simplified fallacy. It’s similar to labeling a business that hasn’t turned a profit as a bad investment, although companies like Amazon, Apple, and Nike prove that theory wrong. The 15% rule of thumb doesn’t take into account detailed financials, varying costs of life-changing programs, and overall impact made. The overall impact made is your most important metric, your Return On Investment (ROI).
A businessperson with the means to make transformational impact did not acquire their wealth by Saving Money, but by Making Money. Among the better questions to ask are:
1. What is this organization’s solvency ratio?
2. What is the overall impact this organization is making?
3. What, if any, innovation is the organization implementing?
More on those better questions for a future article. For now, Congratulations! You’ve just completed Calvin Chan Giving 101. Let’s get to work!
