2016 Board Retreat Agenda Welcome and Overview Trisa

2016 Board Retreat

Agenda Welcome and Overview Trisa Introductions – Why we are here Angie Our Role as Governors Trisa 2017 Strategic Priorities • Self-Sufficiency Wendy/Shelia • Housing* Mitch • Sustainable Philanthropy Anne/Jim • Sustainable Mental Health Funding Wendy • Technology Glenn • Human Capital Michelle • Strategic Planning Trisa Engagement Opportunities Angie *Includes presentation/approval of resolution regarding development of Works II 2

Goals • • Get to know our new members Refresh – why we do this work Review our role as Governors Clarify 2017 Strategic Goals 3

The Roles of a Nonprofit Board • • • Determine the mission and purpose of the organization. Hire, support and evaluate the Chief Executive Officer. Ensure effective planning. Monitor and strengthen programs. Ensure adequate financial resources. Protect assets and provide fiscal oversight. Build a competent, engaged Board. Ensure legal and ethical integrity. Enhance the organization’s public standing.

Life. Works Board Commitment • • Fulfill its duties, required by law, the Articles of Incorporation, and Bylaws of Life. Works. Ensure that Life. Works has philanthropic resources to support the mission. Establish the strategic vision that inspires and guides the organizational direction of Life. Works. Serve as ambassadors and advocates for Life. Works, developing connections and relationships with colleagues, friends, and other associates for the organization. Attend actively participate in Board meetings, not to miss two contiguous meetings. Support and attend Life. Works events. Under the leadership of the Board Chair, conduct regular performance reviews of the Executive Director. Board Members Serve on at least one Committee or special project

What Board Can Expect from Life. Works • Timely information to support Members’ governance responsibilities, including regular financial reports, annual audits and 990’s and program/quality assurance data; • Engaging and informative orientation to Board service and integration into Board responsibilities; • Purposeful and well-prepared Board and Committee meetings; • Timely, accurate, and thorough follow-up to all questions; • Programs and special events that are realistic, organized, and wellexecuted; and • Respectful, professional relationships with Life. Works staff.

FY 2017 Strategic Priorities Strategic Priority Goals Self-Sufficiency • • Ensure that the experience of the client/customer is consistent at intake and across programs, and that accurate data is collected during all phases. Implement key program services in collaborative and community-based contexts. Housing Increase affordable, supportive housing for Life. Works clients. Sustainable Philanthropy Build sustainable unrestricted revenue for the organization. Sustainable Mental Health Funding Identify and operationalize a “braided, ” sustainable funding model for the Life. Works mental health services Technology The organization’s technology infrastructure and CRM supports agency operations, service delivery, and data and research efforts. Human Capital Implement Total Compensation Philosophy goals and develop strategic vision for benefits. Strategic Planning Identify the top 3 -5 long-term strategic priorities and develop the operational plan to accomplish them. 7

Self-Sufficiency Key Goals Owner Staff/Board Supports Key Dates Implement Phase One of Strengths Case Management Wendy Liz, Angie 10/1/16 – launch pilot Develop Operational and Funding Plan for Phase Two of Strengths Case Management Wendy SMT 5/1 - Plan/organizational structure developed 10/1/7 Implement new structure Implement Community Based Peer Support and Counseling Program Le. Shawn Wendy, Liz 11/1 – PD hired 1/31 – Services begin Re-Accreditation through Council on Accreditation Shelia Wendy 1/17 – Self-study due 3/17 – Site visit 8

Client Demographics 3, 955 55% / 45% 59% 70% / 17% Clients Served Hispanic Male / Female Caucasian / African-American 9

Demographics of Target Population 10

Employment, Income & Benefits 11

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Defining “Success” and “Self. Sufficiency” Critical SSM Domains: Establish internal objectives based on clients’ Housing, Employment, and Mental Health – Determine proportion of clients who meet our standards for success across these three domains at program exit – Define our target (i. e. , what level of success do we want to obtain? ) – Outline a 5 -year roadmap to achieve our vision

Self-Sufficiency Matrix Targets Housing: Household is in adequate, subsidized housing. Employment: Employed full-time with adequate pay and benefits. Mental Health: Minimal symptoms that are expectable responses to life stressors; only slight impairment in functioning.

Self-Sufficiency - other areas of exploration • Progress toward Client Goals: Track the % of clients who show progress on SSM domains that are related to their personal goals (contingent on CRM build-out) • Youth Voice: Conduct a qualitative investigation of youth’s understanding of self-sufficiency

Shared Case Management Basic tenets of the Strengths Model: • The focus is on clients’ strengths, not their deficits. • The community is viewed as being full of resources & opportunities. • Interventions are driven by what the client wants and their individual goals…not our perceptions of what’s “best” for the client. • The client-case manager relationship is key. • Our work takes place in the community. • People can change, reclaim, or completely transform their lives.

Quality Improvement – FY 16 Review Case Record Review 465 files (12% of total) Audits 7 audits by funders (state and federal) Workforce Fidelity Review Program Outcomes (City & County Contracts) Below target in GED, Youth & Adult Counseling, Housing, TPS Exceeded target in Workforce, Resolution Counseling, Next Step 18

Quality Improvement – FY 16 Review Employee Turnover FY 16: 42. 5% - 29. 6% Voluntary / 13% Involuntary FY 15: 40. 5% - 32. 4% Voluntary / 8. 1% Involuntary Critical Incidents FY 16: 94 incidents reviewed FY 15: 73 incidents reviewed Client Satisfaction FY 16: Satisfied with services – 95% | Would recommend Life. Works – 92% FY 15: Satisfied with services – 93% | Would recommend Life. Works – 89% 19

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Housing Key Goals Owner Staff/Board Supports Key Dates Works II Mitch/Susan LWAHC • • • City application due 12/16 100% construction docs TDHCA Due 1/5/17 Home Loan Bank application due 2/17 Break ground 7/17 Rapid Rehousing Expansion Erin Scurry Upon HUD COC notification in Spring, 2017 Implement 100 Day Challenge to house 50 Currently Erin Susan, Laura 11/4 – Midway point 12/18 – End of challenge Co-lead community planning process to end youth homelessness by 2020 Erin Kate, Susan 11/20 – HUD proposal due 1/20 - Begin community planning process 21

The Works at Pleasant Valley – Phase II Summary – a 29 unit apartment building addition to the Works at Pleasant Valley image Purpose: Provide affordable, safe and stable housing with access to mental health, education, & related supportive services for low & very low income households Target Populations: Families with children; youth and young adults who have experienced homelessness; youth aging out of foster care; young parents. Unit Mix: 9 efficiencies, 11 single bedroom, 9 two bedroom, small units – 433, 575, 685, 834 sq. ft. per unit Affordability: Families at 30%, 50%, and 80% Median Family Income 22

The Works at Pleasant Valley – Phase II 23

The Works at Pleasant Valley – Phase II Development Funding Sources Life. Works Equity - Fundraising Long Term Debt TDHCA TCAP GO Bonds/City RHDA Grant Funds – Foundations Federal Home Loan Bank General Contractor Contribution Total Sources Uses Acquisition – 1 year land Lease Construction Professional Services Furniture and Equipment Interest, Taxes, Reserves Developer Fees Contingency Total Uses $ $ $ $ $ Total 74, 552 1, 380, 000 500, 000 350, 000 224, 380 3, 908, 932 35, 501 3, 163, 809 289, 500 103, 742 316, 381 3, 908, 932 % of Capital 1. 91% 0. 00% 35. 30% 12. 79% 8. 95% 5. 74% 100. 00% 0. 91% 80. 94% 7. 41% 0. 00% 2. 65% 8. 09% 0. 00% 100. 00%

The Works at Pleasant Valley Proforma Units Efficiency - 30%MFI 1 bed / 1 bath 30% MFI Efficiency - 50% MFI 1 bed / 1 bath - 50% MFI 2 bed / 1 bath - 80% MFI Totals/Average Vacancy/loss Other Income Total Income Expenses Operating Expenses Supportive Services Management Fees, Taxes, Insurance Replacement Reserves Debt Service Ground Lease Total Annual Expenses Net Cash Flow Year 1 Net Cash Flow Through Year 15 # Monthly Annual $17, 568 $9, 576 $18, 612 $53, 568 $23, 904 $85, 680 $ 208, 908 $ (11, 935) $ 16, 675 $ 213, 782 $ 115, 026 $ 10, 150 $ 29, 709 $ 4, 350 $ $ 33, 810 $ 193, 045 6 3 3 image 8 2 6 29 $244 $266 $517 $558 $664 $1, 190 $387 25 $ 20, 737 $ 130, 154

The Works at Pleasant Valley – Phase II Timeline Completion of Design – November 2016 image Board Resolutions – November 2016 Receive Site Development Permit – December 2016 Submit Funding Requests – December 2016 – February 2017 Receive Building Permit – April 2017 Sign GMP Contract with GC – May 2017 Sign Funding Source Contracts – June 2017 Begin Construction – July 2017 Complete Construction – April 2018 Lease Up – May thru June 2018 26

Sustainable Philanthropy Key Goals Owner Staff/Board Supports Key Dates Train Board/Staff on Year 2 Benevon Implementation Anne Shea, Susan, Board Committee 11/4/16 36 Point of Entry Events (with 360 luncheon attendees) Anne Shea, Susan, Board, Committee 3/1/17 Launch Advocate program (goal 24) Shea Anne, Joi Martin, Board 12/30/16 Execute Ask Event Anne/Sandra Development staff and committee 5/3/17 80 new Legacy Circle members Llyas Anne, Susan, Board 9/17 27

Faces of Life. Works Sustainability Model Goal: Engaging individuals in the LW mission. Pipeline Cultivation Faces of Life. Works Tours One Time Major Gifts Advocate Program LW Legacy Circle (Multi-year pledge program) Annual Luncheon Annual Celebration Event

Tour & Advocate Totals Metric Goal Status as of 10/27/16 # Tours (FY 2017) 36 17 # Tours in Pipeline 19 8 (Confirmed) 6 (Pending) # Tour Guests (FY 2017) 350 134 24 16 # Advocates (Host Tour) (By 5/3/17)

Life. Works Legacy Circle Cultivation Management Connectors (Board Members/Advocates) • Pipeline Prospects (49) • Active Prospects (17) Ask Out (4) • Leads generated from Board Members, Advocates or Tours. Life. Works Team to engage further. Those who have met with Life. Works Team, and/or attended a tour with expressed interest in donating. Individuals who have been asked to become a Legacy Circle Member. 90 Legacy Circle Members as of Nov’ 16

Five-Step Follow Up Call 1. Thank you for coming. 2. What did you think? • Of the stories you heard? What area of our work most interested you? What new thoughts? Did you leave with any questions or advice? 3. Be quiet and listen. • Take notes on what they say and enter in database. 4. Is there any way you can see yourself becoming involved with us? • Become an Ambassador, Volunteer Opportunities, Meet A Program Director. • As you heard at the tour, our biggest need is to have people help spread the word about Life. Works. Is that something you might be willing to help us with? 5. Is there anyone else you can think of that we ought to invite to a Tour.

How You Can Help Feed The Pipeline 1. Host a Home Tour. • These generate the highest quality prospects with the greatest return. 2. Invite Individuals to a Life. Works Home Tour hosted by another board member. 3. Bring/Invite Individuals to a Life. Works Facility Tour. 4. Introduce Llyas via email to your network of friends/colleagues. • Llyas is always available to assist you with engaging your networks anyway that works best for you.

Sustainable Funding for Mental Health Services Key Goals Owner Staff/Board Supports Key Dates Develop a vision and roadmap for sustainable funding for Youth and Adult Counseling Services Wendy Le. Shawn Meadows Mental Health Policy Institute: Kick-off, 9/16 Site Visit, 11/10/16 Final Report, 3/17 33

Current Funding Mix for Mental Health Services Youth and Adult Counseling $1. 2 M Psychiatric - $520 k 6% 30% 45% 18% State City/County Foundations St. Davids Foundation 3 rd Party 3 Fees Donations

Meadows Mental Health Policy Institute Deliverables Key Dates Analyze current service mix to determine which services are eligible for Medicaid/Insurance reimbursement November 2016 Conduct assessment of counseling and psychiatric services’ business flow January 2017 Develop Operational Roadmap March 2017 Develop multiple models of sustainability around core services, which may include interviews w/FQHC’s and other providers March 2017 Develop a report of key tactical lessons and technical suggestions for March 2017 other community providers 35

Technology Key Goals Owner Staff/Board Supports Key Dates Infrastructure Transition Kyle Glenn 9/1/16 Office 360/Share. Point Migration Glenn Kyle, program leads 11/30/16 VOIP/Skype Kyle Glenn, Mitch 1/15/16 CRM Development Kyle Vickie, Glenn 10/31 – select consultant 12/31/16 – design 7/1/17 implementation 36

Human Capital Key Goals Owner Staff/Board Supports Key Dates Transition 403(b) to OVCT Plan Michelle Jay, Trey December, 2016 Implementation of 92% of Compensation Strategy Michelle Jay, Scurry June, 2017 Develop & implement Strategic Benefits Vision Michelle Jay, Susan July, 2017 (Open enrollment launch) Establish training system & tracking Michelle Patia, Training Committee End of 2017 37

Strategic Planning – Mission Capital Phase Purpose Deliverables Timeline Taking Stock Launch strategic planning process by identifying key issues to explore with the Strategic Planning Committee and providing multiple opportunities for stakeholders to share perspectives and shape strategic direction • Theme summary of feedback shared through surveys, interviews, document review and focus groups with key issues identified • Written interim update for full Board September December Setting Priority Goals Identify 3 -5 strategic goals to guide Life. Works efforts and strategic direction, along with initial strategies and tactics to achieve the goals in the plan period. • Summary from strategic retreat and staff work session • Draft Plan Document January March Getting Specific and Finalizing the Plan Clarify strategies and tactics to achieve goals, along with the budget implications, timeline, and metrics to achieve a final Strategic Business Plan. Final Plan Document March. April 38

Life. Works Board Commitment • Attend Board Meetings • Participate in Sustainable Philanthropy • Choose one area – committee and/or strategic area – to engage

Committees/Initiatives Committees • Executive • Finance • Sustainable Philanthropy • Quality Improvement • Affordable Housing • Board Development • Research • Public Policy (new!) Initiatives • Human Resources • Sustainable Mental Health Funding 40