1REDF

San Diego Social Enterprise Accelerator Fund Inaugural 2017 Cohort

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Why are we doing this?

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AGENDA

P

A

G

Background

Process

Closing

• Introduction to San Diego Workforce Partnership (SDWP), REDF,

and Mission Edge

• Benefits of the fund

• Eligibility

• Selection Criteria

• Key Dates

• Outcomes & Commitment

• Contracting with SDWP

• CT vs. OJT

• To Apply

• Questions

© REDF 2015 REDF

We Believe

Work has the power

to transform lives

and communities.

People who are willing

and able to work should

have the opportunity

to do so.REDF / 5

Our VisionREDF is expanding nationally to champion social enterprise growth.

Over the next five years, REDF will help 50,000 people transform their lives through the

power of work, while growing the evidence base and creating a thriving ecosystem with the

best partners and the right policy incentives in place.

Together, we can create more economic opportunity, jobs, and hope

for the people and communities that need it most.Our History

REDF is the only venture philanthropy organization in the country that invests exclusively in

the growth and effectiveness of social enterprises that provide jobs and a pathway into the

workforce for people facing the greatest challenges.

Since 1997, REDF has provided vital financial assistance and specialized advisory services

to over 80 social enterprises in California, aiding in their success and reducing government

spending on benefit programs.

Invest in social enterprises: double-bottom line businesses that produce goods and

services, generating revenue to create jobs and employ and empower people overcoming

formidable barriers.

Business Method

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About Mission Labs

• Mission Labs is a program of Mission Edge

• Founded in 2012 to provide infrastructure and back-office support for

nonprofits -- more than 150 clients served to-date.

• Services include: Accounting/Finance, HR, Fiscal Sponsorship and

Corporate skilled volunteer matching.

• Mission Edge is a social enterprise: 95% of operating budget comes from

earned revenue -- more than $1.4mm in 2016.

• Mission Labs extends our operational and strategy support to both social

enterprises and nonprofits seeking earned revenue.

• Services include:

– Organizational assessments for social enterprise viability

– Business Model Validation and strategy

– Financial modeling and change management

– Forecasting, business planning and investment preparedness

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Benefits of the fund

• Funding from SDWP & REDF

• Technical Assistance from REDF and MissionLabs

• Network with like minded organizations and funders

• Access to additional capital networks

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Eligibility• Operate a workforce-development social enterprise in San Diego County

• Currently training or employing, or have identified model to employ or train

individuals facing barriers to work, including:

o Justice Involved youth or adults

o Disconnected youth (16-24 not in school, not employed)

o Homeless

o Individuals with disabilities

o Veterans

o Long-term unemployed

o Other significant barriers to employment

• Willingness to enter into SDWP’s contracting (OJT or CT)

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Selection Criteria

Mission Alignment:

• Demonstrated impact in employment and training of people with barriers

• Innovative programmatic models with strong outcomes (e.g., job

placement, employment retention)

Operational Capacity:

• Strong operational performance of the social enterprise

• Ability to track and monitor business performance and employment

outcomes of participants

Growth Potential:

• High potential for significant business growth and job number growth

Leadership and Partnership Potential:

• Demonstrated partnership abilities with corporate or public sector

employers

• Potential for partnership with new funders

• Potential for new learnings that could be shared with the field

© REDF 2015 REDF

Key Dates in the Application Process

• November 4: Invite-only applications sent (apply here)

• November 14: Webinar at 10 a.m. PST (register here)

• November 21: Application assistance 11:30 a.m. - 2:30 p.m.

(conference line: 712-432-1500, access code: 1036554#)

• November 30: Applications due at 11:59 p.m. PST

• December 2016: Announce selections

• January 2017: Funding and technical assistance begin

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Outcomes & Commitment

Participation:

• Quarterly in-person cohort meeting (½ day)

• Ongoing technical assistance engagement

• Participation in SDWP & REDF learning networks

(REDFWorkshop, SE4JOBS)

Outcomes:

• Enterprise diagnostic performed

• Key success metrics defined (people trained, placements,

retention, funds leveraged, social return on investment)

• Technical assistance project identified and implemented

• Assistance with and identification of potential funding sources

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REDF Technical Assistance

Programmatic• Employee supports• Job design• Program design• Recruitment

Business Growth • Business mentoring• Business development• Contracts & procurement• Sales strategies

Outcomes & Reporting • Performance dashboards• Enterprise financial reporting• Enterprise information systems

Business Planning & Launch • Feasibility analysis• Market research• Marketing strategies• Breakeven analysis

Portfolio Staff

Consultants

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SDWP Funding Types

On-the-Job Training Customized Training

• Cohort training

• Reimburse training

costs

• Individual training

• Reimburse wages

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On-the-Job Training (OJT) Customized Training (CT)

Individual training: Only 1 trainee per OJT

agreement

Cohort training: More than 3 trainees per CT

agreement

Hire and then train: The training occurs while the

individual earns wages as an employee of the

company

Train and then hire: The training program acts

as a screener for successful employees before

the company or partner employers hire the

trainees

50% of the hourly wage of the new hire (or

trainee), up to 1040 hours

50-75% of the cost of training, including, but not

limited to: tuition, cost of the trainer (e.g.,

manager’s wages), facilities, supplies (e.g.,

books) or equipment, and certifications/exams

Sick leave, paid time off or jury duty (i.e., only

hours worked on the job will be reimbursed)

Wages of the new hire and costs not-associated

with the training cohort

Employers or any company that will hire the

trainee

Employers who will hire or training providers that

are able to find employment for trainees at

various companies

Retention of the new hire (trainee) in the same

company at least 3 months after contract

completion

Placement of 80% of the trainees who complete

the training within 2 months of the contract

completion

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Contracting with SDWP

A minimum, must have:

• Workers’ compensation insurance

• Public liability insurance

• Property insurance

• Main and alternative contacts for contracting, invoicing, etc.

• Financial capacity to hire training completers without subsidy

• Administrative capacity to submit itemized receipts, timesheets, etc.

• Training and recruitment plan

• Job description(s) for positions to be trained

After completing the Social Enterprise Accelerator fund application, applicants will

then:

1)Work with SDWP to complete an OJT/CT application

2)Contract with SDWP

Sample applications can be found online as indicated in the SE Accelerator

application or email Tina@workforce.org for OJT/CT applications and sample

contract

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How are trainees eligible?

• They must be registered with an America’s Job Center of California

• Do you have someone in mind for training? Do you need help with

recruitment? This will affect the contracting and training timeline

How do I get reimbursed?

• Checks sent during intervals of training, with final check sent at

employment/placement

What paperwork is required for SDWP funds?

• OJT/CT application

• OJT application includes OJT agreement, assurances, training plan

• OJT invoice template + timesheets (i.e., proof of wage payments)

• CT invoice doesn’t have template, but requires Itemized receipts

• Both require a check-in/survey at midpoint and completion of training

FAQs

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THANK YOU

Q&A