Friday, July 31, 2009

Mergers that mean more than survival

The distressed economy has brought to the surface the topic of non-profit mergers and acquisitions/affiliations (M&A) as a means by which struggling nonprofit organizations could survive the economic downturn. A recent Bridgespan study, Nonprofit M&A: More Than a Tool for Tough Times, polled 117 nonprofit executives on this very issue and found that 20 percent stated that it could play a role in their response to survive these lean times. Bridgespan suggests that while some nonprofit leaders may consider M&A reactively, “the time is also ripe for the leaders of healthy organizations to consider M&A proactively—as a way to strengthen effectiveness, spread best practices, expand reach and—yes—to do all of this more cost-effectively, making best use of scarce resources. Unfortunately few organizations think of M&A in this way.”

A key focus of Sunny Hills’ strategy for the last decade has been to seek out like-minded mission-based organizations with which we could align. The way we see it, our options to realize the agency’s long-term plans for growth are: one, to grow organically by developing our own programs, or two, to grow via strategic use of M&A. It would be incorrect for me to say that Sunny Hills has favored one path over the other; rather, our approach has been an intentional blend of the two. Chiefly, we see M&A as a strategic tool by which the agency can 1) maintain our relevance by staying abreast of market demands 2) enter new markets, including new geographic territories and/or new service areas and 3) leverage our administrative infrastructure.

Over the years, Sunny Hills has explored a number of opportunities; some we pursued, others we walked away from for one reason or another. But my point is this: as an agency, we are strong believers in the potential of M&A to advance our mission and increase our social impact. Too often, the concern over bridging two organizational cultures stymies even the best of intentions. In our experience, there are ways to manage the integration so that the best of what each agency has to offer is retained and ultimately enhances the profile—some might even say the “mojo”—of the new merged entity.

Most recently, Sunny Hills merged with Bay Area Youth Centers (BAYC), an East Bay agency providing supported housing, case management and integrated mental health services to transitional age youth. Coming soon, Josh Leonard, Executive Director of BAYC, and I will share our perspective on the merger process, what worked well and why. Stay tuned…

Friday, July 24, 2009

The Experiences and Needs of LGBTQ Youth in Out-of-Home Care

Bay Area Youth Centers, Sunny Hills’ East Bay division, is hosting a symposium on the experiences and needs of LGBTQ-identified youth in the foster care system. This forum will provide an opportunity for foster care providers to engage one another around issues related to the delivery of care, specifically how to increase the competency, safety and accessibility of services for LGBTQ youth in out-of-home care.

The symposium will serve as a general forum for dialogue, information sharing, and mutual learning. Presenters will speak from personal experience and offer professional expertise on topics such as risk factors, safety and community, gender expression and fluidity of identity.

A Selection of Presenters Includes:

Kevin West
Youth Keynote Speaker

Jody Marksamer, Esq.
National Center for Lesbian Rights

Nick Gorton, MD
Lyon Martin Health Center

and representatives from:

California Youth Connection
Seneca Center
Project Eden Lambda Youth Program
Lavender Youth Recreation and Information Center
inVision Consulting
The Y.O.U.T.H. Training Project

Symposium Information
September 16, 2009
Preservation Park – Nile Hall
Oakland, CA

Registration and informal networking
9:00 am - 9:30 am

Symposium
9:30am - 4:30pm (lunch included)

This symposium is offered free of charge to Bay Area providers, but advance registration is required. To reserve your place, contact Emily Rankin at (510) 867-6938 or by email at emily@bayareayouthcenters.org. Registration closes September 4, 2009.

This symposium is made possible through generous support provided by the Tides Foundation.

Friday, July 17, 2009

Where We've Been and Where We Are Going - Part 1

As some of you may know, Sunny Hills has undergone significant changes over the last several years as we transitioned away from being principally a provider of residential services to severely emotionally disturbed youth to what can be characterized today as a diversified agency offering a range of programs to families with children with special needs.

Until recently, the most visible manifestation of Sunny Hills’ mission in action was the San Anselmo campus. This campus has long been the “heart” of Sunny Hills and it will continue to serve as an important resource for families with children with special needs. But this notion of “heart” is more of a figurative than literal description of the agency as it is today; an essential aspect of Sunny Hills’ evolution has also been our expansion to new geographic locales. Today, the agency operates programs in Sonoma, Alameda and Marin counties and our services extend even further to neighboring counties—Napa and Contra Costa counties, to name just two.

This evolution has made it possible for the agency to serve more children, youth and families in more places. I wanted to highlight, in particular, our presence in Sonoma County which has continued to expand since we opened our first program, the Sonoma Kinship Family Center, nearly four years ago. Our Sonoma operations represent approximately $3 million (35%) of our total agency budget and this year we expect to deliver services to more than 400 youth in addition to their parents and other family members. We are now the provider of choice for Sonoma County youth with mental health issues who are involved with the juvenile probation system.

The growth in Sonoma can be attributed to the specialized services we are able to provide and the County’s desire to partner with us to address a number of emerging, high-need areas. In November 2007, Sunny Hills launched the Assertive Community Treatment (ACT) program, a community-based program designed to address the mental health needs of juvenile offenders and their families. Sunny Hills was selected by the Sonoma County Department of Probation given our reputation and experience providing flexible, community-based mental health services. The County is now considering expanding the ACT program to offer services to youth “stepping down” from out-of-home placements, e.g. group care or residential treatment facilities, who will require additional support upon their return to the community and their home.

Most recently (in collaboration with the City of Santa Rosa’s Measure O initiative and the Sonoma County departments of Probation and Mental Health), Sunny Hills designed a program to address the growing need for gang prevention and intervention services in the County. Project PRIDE is an extension of our Community Engagement/Youth Development program (CEYD), an initiative launched in early 2008 designed to prevent youth involvement in gangs, and intervene swiftly when they do. Project PRIDE draws upon best practices learned from the ACT program model and applies them to our work with gang-affiliated youth.

Beginning on September 1, 2009, Project PRIDE will work specifically with Santa Rosa juveniles on probation who have known or suspected gang affiliations and who also struggle with mental health issues. Currently, the Sonoma County Department of Probation has two dedicated probation units serving approximately 120 gang-affiliated youth each year (70 percent of whom reside in Santa Rosa). During this pilot year, Project PRIDE will work with approximately 12 to 18 youth at any given time. Project PRIDE is a “wraparound program,” meaning services are highly individualized and delivered in a range of community-based settings, as opposed to a more traditional office environment.

Sunny Hills’ employee, Bob Florez, will serve as the program director for CEYD and Project PRIDE. Also this year, Bob is overseeing the CEYD program’s expansion to Petaluma by virtue of a grant received from the Community Health Foundation of Greater Petaluma to deliver gang intervention services in that community. I’m sure Bob would welcome input from our community, so feel free to contact him by email at bflorez@sunnyhillsservices.org.

Next week: a spotlight on Sunny Hills’ East Bay division, Bay Area Youth Centers.

Friday, July 10, 2009

An Update on the State's Fiscal Crisis

After legislators and the governor failed to reach an agreement on a revised budget, the state began issuing IOUs approximately one week ago on Thursday, July 2, 2009. This move by state Controller John Chiang is an effort to conserve cash to be able to make payments mandated by the state constitution, federal law and court orders. Democratic leaders and Governor Schwarzenegger remain at odds over how much spending California should cut in order to achieve the necessary savings to meet the budget shortfall of $26.3 billion.

Sunny Hills continues to monitor the state's fiscal crisis and remains alert to any proposed actions that could jeopardize our programs. Certainly, the cash crunch at the county level could result in a slowdown in payments for services rendered, thereby impacting cash flow. (Sunny Hills contracts with counties, not the state, to deliver services.) To weather this fiscal turbulence, Sunny Hills is able to draw down on our line of credit to even out cash flows and sustain our level of services in the community.

Proposed cuts to education could impact Sunny Hills’ nonpublic school, the Marin Academic Center, most likely resulting in weakening enrollment. Mental health funding appears to be secure for the time being, though the failure of the state to make its contribution could jeopardize federal matching funds.

Perhaps most concerning is the Department of Finance’s (DOF) response to the Democrats proposal to “borrow” $2 billion from cities and counties (allowable by Proposition 1A). In response, the DOF has countered with two alternatives, one of which would be to eliminate the state’s share of costs for the Child Welfare Services and Foster Care programs—a move that is likely more rhetoric than reality, but nonetheless would be a significant concern to Sunny Hills.

We presume that state funding for kinship programs (like Sunny Hills’ Sonoma Family Kinship Center) is safe, despite the Governor’s earlier proposal to eliminate this line item entirely. The state’s allocation for such programs is far less than other social services programs and, while it was originally part of the Governor’s “laundry list” of cuts, we have reason to believe those monies will be preserved.

In closing, we continue to be cautious; I will continue to keep you apprised of any new developments at the state-level that could potentially impact the agency.

Friday, July 3, 2009

Our Commitment to Learning and Improvement

July 1st is an important inflection point in our year at Sunny Hills. As the agency closes out the previous fiscal year and begins anew, this is typically a time for reflection and renewal in our community. This past week I assembled senior staffers to share their program’s accomplishments as well as their challenges from the previous year, and articulate their goals for 2009-2010. It is an essential phase in our organizational learning cycle and an important community-building exercise. As I listened to my staff, I was gratified to hear them speak of their successes—outreach to new communities, new offerings for specialized populations of youth, and increased capacity to deliver services--and also to hear how operational improvements are being implemented on the frontlines of our work. Mission fulfillment is the ability to deliver services that are not only effective, but also efficient from a resource utilization standpoint.

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Key Goals for 2009-2010

Adherence to Fiscal Year Budget
As we usher in a new fiscal year, our mandate is clear: we must do more with less. Like many non-profit organizations, Sunny Hills has had to tighten our belt. We were able to develop a balanced budget for FY2010 by streamlining expenditures and reducing administrative overhead, chiefly through operational improvements. This budget, approved by our board of directors in May, maintains our ability to deliver high quality services and expand our programming to serve more youth and families. Uncertainties persist around the broader economic climate; Sunny Hills continues to monitor closely the state fiscal crisis and market conditions.

Solidify Regional Service Structure
Over the past several years, Sunny Hills has expanded our geographic footprint to include Sonoma and Alameda counties, in addition to Marin. The successful integration of Bay Area Youth Centers as the East Bay division of Sunny Hills was a key accomplishment of the past year. Further, we continue to enhance our programming in Sonoma County and have now become the provider of choice for emotionally disturbed youth with involvement in the juvenile probation system. One of our primary goals for 2009-10 is to further solidify this regional structure and secure a foundation for continued growth. Innovation has always been a hallmark of this agency; we continue to research new opportunities to expand our service delivery and enter new markets.

Telling Our Story
As the profile of Sunny Hills has changed, telling our story has become even more pivotal to our efforts. This year, Sunny Hills will expand our community outreach initiatives to share the positive news of our expanded reach and impact. We are implementing new ways to reach our audiences and creating opportunities for frequent, ongoing dialogues with our stakeholders.

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As we closed our meeting earlier this week, the pride in our accomplishments—in knowing that kids and families were being served at a high level—was a feeling that was shared by all. It goes without saying none of this would be possible without the dedication and commitment of our professional staff. Please join me in congratulating them on their many achievements.