Mentally Disabled Care Facility Business Plan

Welcome Home Organization

730 Grand River Avenue
Brighton, MI 48114

Welcome Home Organization plans to build and operate a Residential Care Facility for developmentally disabled adults. This facility will be available for individuals over the age of 18, who begin to reach the age of being too old to live at home, yet too young to live in a full time nursing facility. This facility will serve the needs of those who are moderately mentally retarded, who require some habit training. By serving this particular group we can create an excellent living environment, including a social family–like atmosphere and active lifestyles for all of our residents.

Our services include full–time residential care, private rooms, direct–care staff and nursing staff for any necessary medical care, entertainment and recreational opportunities, and educational and job skills training. The facility will be equipped to care for 30 individuals, including 30 private rooms, a cafeteria, living and socializing areas, and entertainment facilities. Our goal is to meet the social, physical, mental, recreational, educational, and vocational needs of all of our residents.

EXECUTIVE SUMMARY

Welcome Home Organization will provide residential care for the mentally disabled. The organization will be certified as a 501(c) (3) non–profit corporation. We are dedicated to helping those with developmental disabilities to live their life to the fullest, while creating a family atmosphere that creates a better tomorrow, an atmosphere that encourages the participation of residents' families in their day– to–day lives. We strive to offer a community that promotes self respect, independence, and improves the quality of life for all our residents.

We intend to offer the highest quality residential care and day program services in the Southwest Detroit area. Our facility will accommodate thirty residents, each of whom will have individual fully– furnished bedrooms. Other amenities include several spacious living areas which provide a variety of atmospheres to meet individual needs. Residents will have available three full meals a day, which will accommodate their personal tastes and nutritional requirements. We will have employed a fully–trained staff who will assist the residents in day–to–day living. In addition, day programs will offer a variety of activities, and habit and work skills training to foster growth of the individual.

The facility's limited size will provide an opportunity for interaction between staff, volunteers and residents and will allow for personalized care. We will listen to the needs and desires of our residents to provide superior living conditions. We plan to construct a new $1.6 million facility, which will offer the amenities of a modern home. Our facility is large enough to operate efficiently, but small enough to feel like home. This type of atmosphere is the core objective of the organization. Residents should feel as though they are relaxed and in their living room, and not in an institution.

Welcome Home Organization will be operated by a five–person management team. The head of the facility will be our Chief Administrative Officer who will work with the management team and staff to operate the facility. A Chief Business Officer will oversee the day–to–day financial and fundraising activities of the organization. The Social Service Coordinator will be responsible for admissions and discharges, sales presentations, and general paperwork. In addition, the Residential Services Coordinator and the Day Program and Volunteer Coordinator will be responsible for their individual sectors.

The marketing plan of the organization is two–fold. First, the organization must market itself towards potential supporters and then to potential residents. Potential supporters will be recruited through personal relationships and an aggressive fundraising plan. Increasingly long waiting lists for residential care in the Detroit and Ann Arbor regions will provide the organization with a strong resident base. Currently the market for residential care facilities is underserved.

In order for the organization to be successful it must meet its fundraising goals. We plan to raise $1.6 million in initial fundraising, with $750,000 being contributed before the facility construction begins. The remaining $850,000 will be raised in the first year. Welcome Home Organization will fund the remaining portion of development costs through a long–term loan. Solid financial management will lead to an organization that will serve the community for years to come. The generosity of supporters is the key to the success of the organization.

Welcome Home Organization will be an asset to the developmentally disabled community, and the community as a whole. Our goal is to meet the social, physical, mental, recreational, educational, and vocational needs of all of our residents. At Welcome Home Organization we are committed to fostering compassion and improving tomorrow for those with mental disabilities.

Mission

At Welcome Home Organization we are committed to fostering compassion and improving tomorrow for those with mental disabilities. Welcome Home Organization is dedicated to helping those with developmental disabilities to live their life to the fullest, while creating a family atmosphere that creates a better tomorrow. We strive to offer a community that promotes self respect, independence, and improves the quality of life for all of our residents.

Objectives

In order for Welcome Home Organization to attain its vision, the following objectives need to be achieved:

1. Secure initial financing by securing commitments from both corporate and individual donors.
2. Develop and construct a world-class residential facility that meets the needs of mentally handicapped in the Southwestern Detroit community.
3. Maintain full occupancy, thus serving the needs of as many individuals as possible.
4. Operate at only the highest standards, providing all residents with the ability to lead the best life possible.
5. Provide individualized programs to meet the residents' needs.

PRODUCTS & SERVICES

Residential Services

Welcome Home Organization seeks to offer the best living conditions possible for all of our residents. We plan to construct a 30–room facility so that each resident is able to enjoy a space all their own. Each person will have a comfortable room, matching as closely as possible a home environment. The rooms will be comfortably furnished and decorated. The residents will receive three prepared meals per day, and a snack will be offered in the evening. All food will be served family style, again matching as closely as possible a home environment. All meals will be prepared by a trained cooking staff, and therefore will be able to meet the individual nutritional requirements of all of our residents. Also, there will be a trained Dining Aide staff as well as many volunteers who will assist those individuals with special eating needs.

In addition to the private rooms, there will be numerous areas available for social activities and entertainment. These living spaces will offer residents an opportunity to socialize with one another as well as the facility's volunteers and staff. These areas will be equipped with furniture and decorations so as to again create an atmosphere of home.

Our staff will be on duty 24 hours a day, and will be able to meet all of the needs of our residents. This facility will surpass state–requirements in the number of direct–care staff on duty so that our residents will have the best living conditions possible. A full team of direct–care staff will be on duty 24–hours a day. In addition, a trained nursing staff will be on duty from 7:00 am to 11:00 pm to meet the medical needs of the residents. During the evening hours from 11:00 pm to 7:00 am, the direct–care staff on duty will be trained in emergency medical procedures as well as medication administration. The facility will also make arrangements with a physician and dentist to assume overall responsibility for medical and dental care. Each resident will have at least one physical examination per year by a licensed physician and dentist.

Day Program Services

Welcome Home Organization will offer a Day Program to provide our residents with opportunities to socialize, exercise, and learn. This program's intent is to improve the lives of our residents and to teach new skills through a variety of activities and programs. In doing this, we hope to give them the skills they need to live as independently as possible. Through these programs we hope to instill a variety of skills including communicating with others, making personal choices, eating independently, personal hygiene, domestic skills, developing hobbies and interests, and developing basic work skills. Each person's program will be individually designed to meet their personal needs and skills.

These skills will be emphasized through a variety of activities designed and coordinated by a trained Day Program staff. In addition, many entertainment and social activities will be incorporated. These include a variety of games and sports, exercise time, gardening activities, arts and crafts, table games, music and singing time, and many others. Another important aspect of the day program will be community service projects. This part of the program will teach our residents the importance of giving back to the community. All Day Program activities will primarily take place on campus, but field trips will be offered on occasion.

Within the facility there will be an area designated specifically for the Day Program. State law requires forty square feet of usable floor space for each resident. Our facility will house a maximum of 30 residents, and so our Day Program Activity Center will be 2400 square feet in area. The Day Program will include a staff of four who will be responsible for developing individualized programs for each resident, planning activities, and working with volunteers. These volunteers will include family members of the residents. Both the residents' wants and needs will be taken into account in creating programs and planning activities. Overall, it is crucial that the program plan is person–centered, and is developed with active participation from the residents.

ORGANIZATION

Facility

One of the most important aspects of our organization will be our world–class residential care facility building. We plan to locate our 12,000 square foot facility in Brighton, Michigan on approximately three acres. Our building will have every convenience of home, so our residents are truly comfortable. The building will consist of 30 bedrooms, each of which is approximately 140 square feet. The bedrooms will be fully furnished and contain a bed, pillows, blankets, a bedspread, other proper linens, a bedside stand, a chair, closet space, a dresser, and vanity and sink. The rooms will each have at least one window which will provide views of the outdoors.

In addition to the bedrooms, the facility will have several living room–type areas. In total, these areas will be approximately 2,400 square feet. These rooms will serve many needs from providing a relaxing place to watch television and socialize, to a place to play board games with fellow residents and volunteers. One room will be furnished with couches, chairs, and end tables and will supply a place for the residents to watch television. Another room will have couches, tables, chairs, and floor mats to provide a place for social activities and games. The room will be stocked with a variety of board games and cards for the residents' enjoyment. A third smaller area will accommodate those seeking a quiet place. This area will also have couches, chairs, bookshelves, end tables, and lamps. We hope that by providing a variety of living areas, our residents will have ample opportunity to socialize and interact with those in our community as well as have individual time for peace and quiet.

Our facility will utilize communal bathrooms for the residents' use. These bathrooms will be conveniently located so that all residents have easy access. The bathrooms will have all the necessary equipment, including individual showering areas.

The Day Program will take place in our 2,400 square foot activity center. This center will be very flexible, allowing the spaced to be used for a variety of activities. The area will have collapsible tables and chairs, floor mats, and other appropriate equipment. This way, the facility can meet many different needs, from arts and crafts to exercise and dancing.

The kitchen will be approximately 750 square feet, and will be equipped with proper kitchen equipment. These items will include commercial sized refrigerators and freezers, ovens, and dishwashing equipment. There will also be adequate preparation areas with necessary counter space and sinks. The dining area will be approximately 1,200 square feet and will have adequate number of tables and chairs so as to accommodate our residents. Finally, about 1,000 square feet will be devoted to offices, a nurses station, and general work space.

BUSINESS STRATEGY

Features and Benefits

At Welcome Home Organization, we believe that our benefits are quite simple. We want to create a quality home–like environment where our residents can live happily and successfully. We strive to create the best living environment possible, with modern and clean facilities. We believe that each person is important, and should be treated as such. We hope to have the best staff in the industry, whose only focus is the happiness and care of each individual living in our facility. We want to create the best activities, so that our residents can truly enjoy life and make the best out of it. We want our residents to learn, to socialize, and to be happy. At Welcome Home Organization we know all of these things will be accomplished.

Business Model

The Welcome Home Organization derives its revenues from three sources: government payments, residents' contributions and donations. Government payments are broken into two categories, per diem reimbursements for residential care and monthly reimbursements for day programs. The per diem reimbursement rate is $115 per resident, and the day program rate is $750 per resident per month. These rates are set by the Michigan Department of Mental Health, and are indexed to the cost of living increases. Residents or their families pay a fee of $200 per month for residential care and day program services. Donations are put towards the construction and development of the facility, along with securing the organization's financial future. Government revenues and resident contributions alone are not enough to support the development and operation of the facility. Therefore, donations are essential to the organization's success. A portion of donations that do not go towards development and operations will be placed in an investment fund. This fund protects the organization against fluctuations in government revenues in the future.

Legal Business Description

Welcome Home Organization will receive certification as a non-profit corporation filed as a 501(c) (3) through the Internal Revenue Service and the Michigan Secretary of State's Office. In order to receive this status, the following steps must be taken:

1. Review IRS Publication 557, Tax–Exempt Status for your Organization as well as IRS Publication 578, Tax Information for Private Foundations and Foundation Managers.
2. File Michigan form Articles of Incorporation of a Nonprofit Corporation through the Michigan Secretary of State's Office.
3. File IRS Form SS–4, Application for Employer Identification Number.
4. File IRS Form SS–1028, Application for Recognition of Exemption, as well as IRS form 872–C, Consent Fixing Period of Limitation Upon Assessment of Tax, and IRS Form–8718, User fee for Exempt Organization Letter Request, in order to produce a Letter of Determination.
5. File Michigan Form 1746, Michigan Sales/Use Tax Exemption Application, through the Michigan Department of Revenue to receive a Michigan State Tax I.D. number.
6. Register as a Charitable Organization with the Michigan Attorney General's Office using form Charitable Organization Initial Registration Statement.

In addition to applying for non–profit status, because Welcome Home Organization is operating in the health care industry, we must be approved by the Michigan Certificate of Need Program, as well as receive state licensing through the Department of Mental Health's Division of Mental Retardation and Developmental Disabilities. The Certificate of Need program is designed to verify the need of services in the community the facility plans to locate. In order to receive this certificate the following steps must be completed:

1. Letter of Intent
2. Proposed Expenditures
3. New or Additional Equipment Application
4. New or Additional Long Term Care Bed Application
5. Proposed Project Budget
6. Applicant Identification and Certification
7. Representative Registration
8. Service–Specific Revenues and Expenses
9. Detailed Institutional Cash Flows
10. Periodic Progress Reports

The most important aspect of the certificate of need program is the verification of need in the area for the services proposed. According to the Michigan Division of Mental Retardation and Developmental Disabilities as of December 31, 2003 there were 260 individuals in the Detroit Metropolitan area seeking

Residential Care. This information was gathered through the Detroit Regional Center for the Developmentally Disabled and is the most recent data available. According to the center, this information is still current. Each of these individuals has been determined to be eligible to receive state funding.

To receive state licensing from the Michigan Department of Social Services, the following must be done:

1. Complete Department of Mental Health, Bureau of Quality Improvement form Application for License to Operate a Residential Facility or Day Program for the Mentally Ill, Mentally Disordered, Mentally Retarded or Developmentally Disabled.
2. Submit facility plans to the licensing office and the Michigan State Fire Marshal. These plans must also include a description of the utilization of each area.

In order to receive State Medicaid funding, we must apply for and receive a Provider Agreement through the Department of Social Services' Division of Medical Services. The DMS will issue this agreement if they have received a certificate of authorization or an acknowledgement of exemption from the Division of Mental Retardation and Developmental Disabilities.

OPERATIONS

Location

Welcome Home Organization will be centrally located in Livingston County whereas able to meet the needs of individuals from throughout the Southwest Detroit Metropolitan Area. The facility will serve people from Livingston County, Oakland County, Wayne County, Macomb County, and Washtenaw County. We chose this location because of our ability to raise money and public awareness in the community.

Organization

Our management team will consist of individuals with experience in the health care and nursing home industry. These individuals will be charged with maintaining the daily operations of the facility as well as supporting the long–term viability of the organization. The management team will include the following:

Chief Administrative Officer

1. This individual will be responsible for the overall operation and management of the facility.
2. He or she will oversee all activities in the organization, including marketing, services, staffing, and decision making.
3. He or she will work with the management team and the Board of Directors to promote the well–being of the residents as well as the long–term success of the organization.

Chief Business Officer

1. This individual is responsible for the business and finance operations of the facility.
2. He or she will manage all necessary financial information, and prepare financial forecasts and budgets.
3. He or she will also coordinate all fundraising efforts for the facility.

Residential Services Coordinator

1. This individual will work with the staff in order to maintain excellence in service and quality living conditions for all residents.
2. He or she will be in charge of operations including scheduling, disciplinary activities, and overall maintenance of the facility and its services.

Day Program and Volunteer Coordinator

1. This individual is responsible for the day to day activities and socializing of the residents through the Day Program.
2. He or she will also coordinate volunteers at the facility.

Social Service Coordinator

1. This individual will be responsible for residents' admissions and intakes. They will also give sales presentations to prospective residents, give tours of the facility, and be responsible for working with families to fill out paperwork for admissions.
2. He or she will also be responsible for the paperwork and duties associated with discharges.
3. He or she will be in charge of fulfilling the requirements of the state in terms of paperwork, including securing state funding.

Accountant/CPA

1. This individual will work with the Chief Business Officer and the Chief Administrative Officer in order to create adequate financial statements.

Attorney

1. This individual will be responsible for representing Welcome Home Organization in any legal proceedings.
2. He or she will prepare and file any necessary legal documentation.

Outside Management Support

Welcome Home Organization will also rely on a variety of outside sources for management support. These include both a Certified Public Accountant and an Attorney. These services will be donated by friends of the organization.

Board of Directors

An outside Board of Directors will be assembled, including highly qualified individuals from throughout the community. This board will consist of experts in the health care and nursing care field, as well as donors, family members of residents, and other respected members of the community. Working with the management team, they will aid in making appropriate and effective decisions that will benefit the lives of our residents as well as foster the long–run success of the organization.

Staffing

The state of Michigan gives specific guidelines for the staffing of Residential Care Facilities. In order to achieve a higher level of personalized care, Welcome Home Organization will exceed these requirements. Welcome Home will be tailored to meet the needs of what the state classifies as mild to moderately retarded individuals. If the facility were to serve more severely retarded individuals, the staffing levels would have to be increased dramatically to meet state requirements. Our organization will consist of a direct care staff, a nursing staff, a day program staff, a dietary staff, an administrative staff, and a facility services staff. In total our staff will include approximately 28 full time and 6 part time employees. For detailed staffing information including job descriptions, shift schedules, and salary information please see the appendix.

Volunteers

Volunteers will be an integral component necessary for the success of Welcome Home Organization. They will be actively recruited from throughout the community, and will include all age levels and abilities. They will be utilized in nearly every aspect of the organization, from daily operations and care to fundraising. Volunteers will work closely with the Day Program and Volunteer Coordinator to help meet the needs of the residents and the facility as a whole. We hope to utilize an adequate number of volunteers to aid in areas such as general care, activities and entertainment, meal time assistance, and education and training. In addition to helping out, we hope that the volunteers will develop meaningful relationships with our residents, adding to the quality of their lives.

In addition to assisting with the daily operations, volunteers will also be needed to aid in all of our fundraising efforts. They will work with the Chief Business Officer and the Day Program and Volunteer Coordinator to organize and work at fundraising activities as discussed in the Fundraising Plan. Their efforts in this area are critical to the financial success of the organization.

BUSINESS STRATEGY

Strategic Alliances

Welcome Home Organization hopes to develop several strategic alliances, including the following:

1. Corporate Sponsorship—We hope to develop relationships with a variety of corporate sponsors willing to donate to our organization. We plan to put into place a variety of programs to support these activities. One of these programs is our Naming Rights Program. Through this program a company will be able to purchase naming rights for our facility. The facility will then be marked with a plaque to show our appreciation for their generous contribution. The facility will also then take on the corporate name permanently. We plan to work with the Founder's Committee to develop this relationship.
2. Physician and Dentist—Our facility will work with a local physician and dentist to take on responsibility for the overall care of our residents. These individuals will then have regularly scheduled times in which they will visit our facility and perform normal check'ups and health evaluations. Also, they will be available in cases of emergency.
3. Hospital—According to state law, a formal written arrangement with a community hospital must be made for the treatment and hospitalization of our residents. We will work with a local hospital to make such arrangements.

MARKET ANALYSIS

Market Definition

Welcome Home Organization operates within the developmentally disabled community. More specifically, the organization works with individuals who range from mild to moderate mental retardation. These patients require habit training and some assistance with day to day living. This represents a significant percentage of the mentally retarded community.

Within the Detroit metro area there are approximately 260 individuals on the waiting list of residential care facilities. Each individual qualifies for state funding according the Michigan Department of Developmental Disabilities.

The county breakdown is as follows:

1. Oakland County: 40 individuals
2. Livingston County 27 individuals
3. Washtenaw County: 37 individuals
4. Wayne County: 156 individuals

These people represent opportunity for the Welcome Home Organization. They will be the catalyst for a quick path to full occupancy of the facility.

Market Organization

Mild to moderately retarded people receive care from three primary sources: family, family in conjunction with day programs and residential care facilities. There are benefits and drawbacks to each type of care. Families are increasingly challenged to provide around the clock care to their developmentally– disabled loved ones.

Family is almost always the first source of care received by the disabled individual. As the individual ages providing full time care can become increasingly challenging. The factors of dual careers and additional children make providing adequate care all the more difficult. During adolescence parents usually enroll their child in a day program for the disabled. These programs function like a daycare. The individuals are dropped off in the morning and picked up in the afternoon. Throughout the day the individuals interact with others, have recreational time and participate in habit training. Some patients will be involved with a work skills program. At some point parents must decide if they will be the primary care givers indefinitely, or if the now young adult will enter a residential care facility.

Residential Care Facilities cover a wide range of care needs. Individuals enrolled in these programs may require anything from habit training to full time nursing care. Welcome Home Organization will specialize in the mild to moderately retarded community. By specializing in this sector the Welcome Home family can focus its abilities on making a significant impact upon its residents' lives. All the residents will take part in habit training, while some will also take part in an additional work skills training program. While the Welcome Home Organization believes that all individuals deserve care, we also believe that this niche market will provide us with the best opportunity to serve the community.

SWOT Analysis

S: Strengths

1. Welcome Home Organization will pride itself on having the newest and cleanest facilities in the market. Our dedication to continuing quality will only enhance this reputation over time.
2. The staff will have vast experience and training, and the staffing number will exceed state requirements.
3. The low number of beds allows for more personalized service and care.
4. Large scale fundraising creates a moderate price structure.
5. Our central location will be convenient to the entire Detroit/Ann Arbor Region.

W: Weaknesses

1. Our strategy relies upon an excellent initial and ongoing fundraising campaign. By utilizing personal relationships and experienced supporters we will be able to reach our fundraising goals.
2. Any new organization faces the challenge of establishing itself in the community. We must establish ourselves in the hearts of our supporters and potential residents in order to gain trust.
3. The Welcome Home Organization must abide by the strict regulations associated with operating a facility of this nature. Through a thorough understanding of the regulations the Welcome Home Organization can accomplish this task.

O: Opportunities

1. With 260 people signed up on the waiting list of existing facilities, there should not be a problem reaching capacity.
2. Studies show that mentally retarded adults are living longer, and often outliving their parents. This creates more demand as medical technologies continue to improve.
3. In the future the demand could warrant the construction and operation of a second facility. This facility would meet the same needs of the current operation and would not be developed for 7–10 years.

T: Threats

1. Decreased funding from the State of Michigan.
2. Established facilities have already gained trust and respect from the donor and developmentally disabled community.
3. New entries into the market pose a threat. We will overcome these competitors by always improving the total quality of the organization, and delivering personalized service to each resident.
4. Lack of fundraising jeopardizes the feasibility of the facility. But once again we believe that our fundraising plan is feasible, and will be executed successfully.

Customers

Due to the nature of our business, we have a very specific customer profile. Our residents fit within the following criteria:

1. Age: 18–40
2. Mild to Moderate Retardation
3. Income: Varying
4. Family Status: Single
5. Location: Southwestern Detroit Metropolitan Region; including Wayne, Oakland, Washtenaw, Livingston and Macomb Counties.
6. Lifestyle: In need of habit and work skills training.

Our residents are looking for a personalized home like atmosphere, which affords them the opportunity to socialize, learn and grow towards a better tomorrow. We plan to fulfill all of these needs.

Competition

The competition is from existing facilities operating in the Detroit/Ann Arbor Region. These facilities have established trust in the community, and have histories of reputable care. Only three facilities offer campus style living similar to that of Welcome Home Organization.

Welcome Home Organization holds competitive advantages over these existing facilities. The facility itself will be new, and contain modern conveniences. The staff of the organization will be experienced and well trained, and also able to deliver personalized care. This is due to the low number of beds, which allows for more interaction between staff and residents. Overall the services we offer will be similar, but we pride ourselves on delivering them in a professional and personalized manner. Welcome Home is not just a facility, but truly a home for its residents.

MARKETING & SALES

Marketing Plan

Welcome Home Organization must market itself in two different spectrums, residents and benefactors. The initial thrust of the marketing campaign has two objectives; to demonstrate the demand for residential care, and to rally support for the organization. After the initial marketing campaign is complete, then the organization will transition its marketing efforts accordingly. Future marketing efforts will focus their attention towards producing a positive organizational image.

The organization's market differentiation is three–fold. First, the facility will be of the highest quality. Second, the staff will strive to deliver personalized care to the residents. Finally, the organization will adapt itself to meet the needs of its residents and their families. These three benefits will be the basis of the organization's competitive advantage.

Marketing Plan: Phase 1

Phase one carries out the immediate objectives of the organization. It begins ingratiating itself with the developmentally disabled community, and raises public awareness of the organization. In terms of the overall time line this phase takes place during the initial fundraising and development, all the way up to the full occupancy of the facility. The marketing is directed to both potential residents and supporters.

Residents

The sales strategy of Welcome Home organization is multi-faceted. Welcome Home will serve the needs of the underserved, provide quality care and offer assurance to the families of the developmentally disabled. In order to carry out these strategies the organization plans to have two essential marketing methods.

The Department of Developmental Disabilities waiting list will provide an excellent source of potential residents. These residents are already seeking residential care and have been qualified by the State of Michigan to receive funding. Therefore, they are a target market that we will pursue.

In addition, during the development stage members of the organization will become involved in regional advocacy and support groups for the developmentally disabled and their families. The purpose of this involvement is to become acquainted with the influential people within the market, and to better understand the need of the market. These types of networking events will also help to provide the original group of residents. When it comes to a loved one, families desire a personal connection to those providing the care of the individual.

This personal connection will be provided by the Social Services Director and Chief Administrative Officer, who will be the public face of the organization. Once the facility's construction is complete and in operation, they will give tours, help coordinate public relations events and act as a sounding board for the concerns of residents and their families. Welcome Home Organization will strive to be a learning organization; an organization that works to create a home like atmosphere for its residents and peace of mind for their loved ones.

Providing quality care is a must, and it will be expressed throughout all the actions of the Welcome Home Organization. Marketing the quality care will be accomplished through the development of positive public relations. Residents and their families will see an organization that prides itself on quality throughout. The most trusted form of advertising is an unsolicited endorsement, and that must be the foundation that supports Welcome Home Organization.

Two marketing methods have been adopted. The first is a personal sales method that focuses itself on becoming involved within the developmentally disabled community as well as personally contacting those on the waiting list. Welcome Home Organization believes that this personal bond is vital to success. Second, the organization will develop a positive public relations campaign to cast a wider net and raise the public awareness of the organization.

Supporters

Welcome Home Organization cannot exist without generous donations from its supporters. These donations are crucial for the initial startup including construction of the facility as well as funding a portion of ongoing operations. Marketing the organization to potential supporters means building a donor pool from a series of fundraising committees. The original or Founders Committee will be comprised of civic minded individuals who value the mission and vision of the organization. This committee will be responsible for the coordination of successive committees meant to broaden the scope of the fundraising. An altruistic sales strategy will be used to approach members of the Founders Committee.

Members of the Founders Committee will be solicited from personal connections and family members. Given the interpersonal relationships that already exist, this effort should meet with quick success. In order to meet the goal of fifteen members, Welcome Home plans to approach thirty potential donors.

These donors will meet individually with the Welcome Home family to discuss their involvement in the organization. They will be asked to donate fifty thousand dollars, and support future fundraising efforts. Although a success rate of fifty percent for such a large commitment is ambitious, it is also achievable. The strength of personal connections and the nobleness of the Welcome Home mission will open the hearts of supporters.

The process of recruiting members of the Founder's Committee has already begun, and has been extraordinarily successful. Eight families have pledged to join Welcome Home Organization's Founder's Committee. A more detailed description of the fundraising activities can be found in the Fundraising Plan.

Marketing Plan: Phase 2

Phase two of the marketing effort begins after the facility has reached its full occupancy. This phase has two goals: to continue publicizing the tradition of quality care, and to become further involved in the developmentally disabled community. Much of this marketing effort will take place simultaneously with ongoing fundraising efforts. The effective planning and execution of fundraising events such as golf tournaments and dinner auctions will provide excellent public relations.

These events will be coordinated by the Chief Business Officer and Chief Administrative Officer. The Chief Business Officer's central fundraising role will be continuous contact and networking among present and potential supporters. Members of the Founders Committee will work in conjunction with the CBO to establish fundraising goals and strategies. The Founders Committee also coordinates with the CAO to aid in the planning and execution of the fundraising events.

Long Term Competitive Plan

Welcome Home Organization envisions a bright future, with continuous improvements in all facets of the organization. In order to maintain a long–term competitive advantage Welcome Home must listen to the needs of its residents, expand and improve the facilities and strive for extensive fundraising. These accomplishments advance the Welcome Home Organization vision of living life to the fullest, while working towards a better tomorrow.

The well–being of its residents is the mission of the organization. Accordingly, the organization is determined to adapt itself to the needs of its residents. One example of this personalized service we plan to implement is a customized activities schedule, which best reflects the interests of the resident. Each resident is a true individual, who deserves to be treated with dignity and respect. By fostering this atmosphere over the long–term Welcome Home establishes an advantage that cannot be matched by a newcomer to the market.

The facility will be updated and renovated to meet the stylistic and amenity demands of the time. Welcome Home is being constructed as a first–class operation, and will maintain that status as the facility ages. By staying current the Welcome Home Organization will maintain its advantage of truly being a home–like atmosphere.

While the initial plan calls for a single facility of thirty beds, future demands may require expansion. In this case, Welcome Home will consider the development of a second site to meet the demands of the market. A second facility would not be constructed until the initial operation has been running for seven to ten years. This period of time would allow the organization to establish itself as a leader in the developmentally disabled community.

If the heart of Welcome Home is its residents, then its lifeblood is fundraising. Welcome Home Organization will establish a competitive advantage through its extensive fundraising efforts. These efforts will establish funds for its operation, renovation and expansion. The fundraising effort will be well organized and well executed. The Chief Administrative Officer and Chief Business Officer are responsible for the success of the fundraising operations.

FUNDRAISING PLAN

Initial Fundraising Effort

Welcome Home Organization thrives upon the generosity of its friends and benefactors. In order to meet the initial start–up and operating costs Welcome Home has created an aggressive fundraising plan. The cornerstone of this plan is a Founders Committee consisting of fifteen people, pledging to donate fifty–thousand dollars each. These fifteen people will not only donate money, but also their time to the initial fundraising effort. Once the Founder's Committee has been established, a broader group of supporters can be gathered. The Platinum Circle will include twenty people donating twenty–five thousand dollars a piece. The Gold Circle will seek out twenty–five donors pledging ten thousand dollars per person. Finally, the Silver Circle includes 100 individuals each pledging $1,000. Given the importance of these initial supporters it is crucial to gather not just people, but the right people.

Our initial fundraising goal is $1.6 million. Construction on the project will begin once we have met half of the initial fundraising goal. This initial fundraising will be used to develop the facility, cover a portion of operating costs, and help to secure the financial future of the organization. We plan to have completed the initial fundraising effort in slightly over one year.

Founders Committee

The members of the Founders Committee represent the highest commitment to the Welcome Home Organization. They must donate as much through their time and energy as through their wallet. A member must have adequate financial resources, solid stature within the community and a willingness to work with the organization into the future. Prospective members of this committee may very well have experience interacting with developmentally disabled individuals within their own lives. In addition to the traditional fundraising circles, Welcome Home Organization will utilize those for whom developmental disability is a special cause.

These members will be recruited through personal relationships of the Brumfeld and Wesley families. Currently, eight families have already pledged their support and agreed to join the Founders Committee. $400,000 has been pledged to date. This initial group will help to fill the rest of the Founders Committee as well as the Platinum, Gold, and Silver Circles.

A profile of each of the members follows:

1. Bart and Martha Brumfeld: Bart is currently the President of Operations for Transport USA. The couple is involved in many charity and community activities, and is very familiar with the donor community throughout the Detroit metropolitan area.
2. Don and Judith Booth: Don is currently the Vice-President and General Counsel of Railways Inc. He is also the owner and principal of Booth Law Group. In addition, he serves as a Grand Rapids Alderman. Judith is the Deputy Executive Director of the Michigan Democratic Party. Both are extremely active throughout the community.
3. Shelly Grabek: Shelly is an active member of her family's businesses. Pinnacle Newspapers Inc. is a media company based in Michigan. In addition, she is involved with UMAN, a manufacturing firm based in San Diego, California. She donates much of her free time to worthy causes, including the St. Jude's Children's Hospital.
4. Rock and Cynthia Noetzol: Rock is a retired Ann Arbor physician, and currently donates his time as the Washtenaw County Health Commissioner, a position he has held for over thirty years. He is a third generation Washtenaw County practitioner, and has family roots going back over a century and a half. Cynthia is a retired registered nurse, and is involved in the National Multiple Sclerosis Society.
5. Rick Spivey: Rick is an anti–trust attorney with the firm of Holden–Nash LLP. He is also a Oakland County Councilman. Rick is active in the community, and has vast experience in fundraising.
6. Eric and Julie Gardner: Eric is a retired executive from Robotics LLC, and is actively involved with a variety of charities including Boy Scouts of America. Julie is a retired homemaker.
7. Robert and Janice Wesley: Robert is currently the President of Lumber Supplies, Inc. based in Brighton, MI. He and Janice are actively involved in the community and have done extensive fundraising for a variety of charitable causes.
8. Greer Frasier: Greer is a widowed homemaker. Her husband's businesses included Frasier Window Company, Inc. and a variety of real estate holdings. Currently, she is involved with a variety of local charities.

The members of the Founders Committee have graciously agreed to personally send out pledge letters to their contacts. From their resources we have gathered the names of nearly 1,000 potential donors. Each member will send out a personal letter to their own contacts. The members have graciously agreed to underwrite the cost of this mailing. An example of the letter can be found in the appendix.

Platinum Circle

A platinum circle of donors shall be derived from these efforts of the Founders Committee. This platinum circle will be responsible for a twenty–five thousand dollar donation and assistance in future fundraising. Members of this committee will be drawn fro the contacts and resources of the Founders Committee members. The platinum circle will then assist in securing the gold circle of donors.

Gold Circle

The gold circle comprises the next phase of the initial fundraising effort. $250,000 will be brought in by the gold circle of donors. Just as important, this effort will lay the groundwork for the silver circle.

Silver Circle

The silver circle offers the chance for smaller donors to join the Welcome Home Organization family. One hundred donors pledging one thousand dollars will raise a total of $100,000. In total the initial fundraising effort will raise 1.6 million dollars.

Spring Gala Event

In order to get people excited about the organization, as well as seek donors, Eric and Julie Gardner have graciously offered to underwrite the cost of a spring gala event at the St. Louis Zoo. Families will have the option to donate from $250 dollars a guest, all the way up to joining the Platinum Committee with a donation of $25,000. Julie Gardner has offered to plan and execute the entire event. This event will be mentioned in the initial appeal letter, along with an enclosed response card. Examples of each are in the appendix.

Ongoing Fundraising

Welcome Home Organization will support a portion of its operating costs through ongoing fundraising operations. These operations will include traditional and non–traditional fundraising. The non– traditional fundraising is to include corporate sponsorship and naming rights.

Traditional Fundraising

The traditional fundraising plan includes an annual campaign, dinner auction, collection day, golf tournament, a bequest program and in the future an annuity program. These fundraisers should offer opportunities for even the smallest donor to share in the Welcome Home Organization vision. Their success will be one of the main duties of the Chief Administrative Officer, Chief Business Officer and Day Program and Volunteer Coordinator. Each of these events is done by multiple organizations, and requires significant numbers of people. Our Volunteer list will include the families of residents, our donors and friends.

• Annual Campaign: An annual fundraising campaign shall be conducted to help meet fundraising goals. The initial contacts will come from the list of potential supporters provided by the Founders Committee. This campaign will be conducted primarily through a mail/call strategy. Potential donors will receive a letter outlining the mission of Welcome Home Organization, and asking for their support. Within a week, a volunteer from the organization will contact that person, asking if they have received the letter, and if they are interested in supporting the organization. If they are not interested in donating to the organization, then they will be eliminated from the annual campaign. However, if they would like to donate, then they will be given further information and supporting calls until the donation is received. Donors to the annual campaign will be submitted into the pool for other fundraising activities. The general strategy of the annual campaign will be the responsibility of the Chief Administrative Officer. Volunteers for the follow up calls will be organized by the Day Program and Volunteer Coordinator. The annual campaign will begin in the third year, after all initial fundraising has been completed.
• Dinner Auction: Welcome Home Organization will host an annual dinner auction. The event will have three streams of revenue: the dinner, auction and corporate sponsorship, and will be held in October. This annual event will begin in our first year of operation. Auction items will be primarily donated in order to minimize cost. Corporate sponsors will enjoy the public goodwill which accompanies having their name attached to a worthy cause.
• Collection Day: Each year the organization will conduct a collection day to be held in April. This day will be similar to those held by organizations such as Backstoppers, Old Newsboys and other charitable groups. The organization will utilize a large number of volunteers to blanket busy intersections and public places asking for small donations. This type of fundraiser has a high margin, and raises the public awareness of the organization. A higher public awareness means a greater annual campaign, and so we will begin our annual collection day in the third year. This way we will have developed a greater public awareness and built a volunteer base to utilize in these activities.
• Golf Tournament: Golf tournaments provide many revenue opportunities. The first is simply the tournament fee paid by the golfer. In addition golfers may have the chance to purchase mulligans, enter skins contest and participate in hole–in–one contests. All these enhance the dollars brought in by each individual. Once again corporate sponsors may be elicited for the entire event, and also for individual holes. Although golf tournaments do have a high overhead, they are an excellent method of getting new individuals into the donor pool. The event is scheduled in June.
• Bequest Program: Bequest programs offer supporters the chance to remember the Welcome Home Organization in their last will and testament. The organization will provide standardized forms to aid in the legal process of the will. Donors may find this a useful tool to not only support the organization, but also to lessen the effect of estate taxes.
• Gift Annuity Program: After the organization has been established and is financially sound they will create a gift annuity program. This type of program accepts cash and publicly traded securities as a gift to the organization. In exchange for the gift, Welcome Home Organization will pay an annual annuity to the beneficiary for the remainder of his or her life. The rate is determined by the age of the youngest beneficiary, with the rate increasing accordingly with the age. Upon the death of the beneficiary the gift remains with the organization. Those who participate in this program enjoy lower taxes and secure income in addition to the altruistic benefit.

Non–Traditional Fundraising

Many organizations have turned to non–traditional methods of fundraising. Among the most popular is the use of naming rights and sponsorship. Welcome Home Organization plans to utilize these options during the development and maturing of the organization. We hope that the naming rights of our facility will raise $200,000. This amount will be pledged over a period of 10 years, with a $20,000 donation each January. Corporations reap a double benefit; their name becomes associated with a positive image, and their donations lessen their tax burden.

FINANCIAL ANALYSIS

Financial Explanation

Welcome Home Organization will be established on solid financial ground by the end of year five. Donations are used to develop the facility, cover a portion of operating expenses and protect the organization against fluctuations in government revenues. The development of the facility includes construction, training, equipment and staffing prior to full occupancy. Occupancy is scheduled to be ten individuals when the facility opens in January of year one, and is to raise by ten individuals each subsequent month, until the capacity of thirty is reached.

Year zero has no revenue from operations, because it is dedicated to fundraising and development. Employees receive payment for time worked during the development and training phase. Pre–construction activities such as architecture and engineering are to begin on January 1st. Construction is expected to begin in April and commence in November. A loan of $1.1 million dollars is received on April 1st, it is figured as a thirty year loan at six percent interest. The loan goes towards the cost of land and construction. The collateral will include the cash on hand and the residual value of the land and building. If additional collateral is required, the Wesley family has agreed to pledge a parcel of land in Livingston County as collateral.

Operation of the facility begins in January of year one. Operating revenues climb steadily through the end of March, as the occupancy increases each month. Accounts Receivable is calculated as one month of government revenues. Accounts Payable is calculated as one month of supplies and miscellaneous expenses. Investments have been calculated as seventy–five percent of excess cash flow, beginning in February of year two. These investments are meant to secure the financial future of the organization.

APPENDIX

Job Descriptions

Direct Care Staff

• Responsible for the overall care of residents.
• Assist with daily activities and special needs.
• Assist with maintaining health standards and appropriate environmental conditions.

Registered Nurse

• Responsible for the overall health of the residents, and will be the dedicated nurse in charge.
• Responsible for development of drug control procedures, environmental health, safety, and dietary procedures.
• Responsible for drug distribution management.
• Maintains necessary medical and nursing records.
• Necessary medical care will include, but is not limited to injections, inhalation therapy, intravenous fluids, suctioning, ostomy irrigation, lesion dressing, aseptic dressing, catheter irrigation, care for pressure sores and physiotherapy.

Licensed Practical Nurse

• Responsible for the care of the residents.
• Responsible for medication distribution while on duty.
• Works with the dedicated nurse in charge to maintain adequate medical and nursing records.

Cooks

• Responsible for the development of meal plans, taking into consideration residents wants and needs.
• responsible for planning and ordering necessary food and equipment.
• In charge of food preparation for the entire facility.
• Maintains adequate records on resident-specific needs so as to accommodate necessary dietary and nutritional requirements.

Dining Aides

• Work with the cooks in the preparation and serving of meals.
• Assists residents with special eating needs.
• Work with volunteers to meet the general dining needs of the residents.

Housekeeping Services

• These services will be outsourced through an outside firm.
• Responsible for cleaning and maintaining the facility, including all common areas, restrooms, the activity center and resident's individual rooms.

Linen Assistant

• Responsible for laundry services, including resident's clothing, bathroom linens, and bedroom linens.

Plant Maintenance Employee

• In charge of the overall maintenance of the facility and its property.
• Responsible for necessary indoor repairs and maintenance at the facility.
• Responsible for outdoor maintenance, including lawn mowing and landscaping.

Day Program Staff

• Work with the Day Program Coordinator to plan and administer day program activities.
• Responsible for the care of the residents throughout the day.
• Work with volunteers in the Activities Center and throughout the facility.

Administrative Assistant

• Assists the Chief Administrative Officer in day–to–day activities of management and operations of the facil

Receptionist

• Responsible for answering phones, greeting guests and other administrative tasks.

Biographical Information

• Chief Administrative Officer: The CAO has already been chosen, but the name is being kept confidential. This individual has over three years of public accounting experience, and holds C.P.A. certification. In addition, for the past three years this individual has served as the Director of Finance for a similar facility in another state. This individual is an excellent candidate, and brings a great and wide variety of experience to the operation.
• Jonathan Fisher: Jonathan has over six years experience with his family business, and a lifetime of charitable activities. He has worked directly with the developmentally disabled in the past. In addition, he has experience organizing fundraisers, which has led to numerous political connections.
• Robert Wesley: Robert has also worked with the developmentally disabled in the past at the Riverside Home. His work experience involves a variety of roles in the political process. Both Jonathan and Robert have worked with numerous candidates on all levels, including local, statewide and national. These connections will be beneficial to the fundraising and securing government support.