Stories
| Realizing a Revitalized Mission - Rebuild Resources |
| Published Tuesday, November 18, 2008 |
Rebuild Resources helps recovering alcoholics and addicts build a healthy and stable future. When the organization itself needed to improve its financial condition, President Kevin Lynch and his board initiated a restructuring plan. Kevin sought out Kate Barr, Executive Director of Nonprofits Assistance Fund, explained his vision for restructuring Rebuild Resources, and asked for a loan to bridge a cash flow gap during this process. Nonprofits Assistance Fund approved the loan, and acted as a "counselor and a partner," helping Kevin and Rebuild's management team navigate the intricacies of their organization's finances. As a social enterprise, Rebuild Resources has a particularly complicated financial situation. To fulfill its mission Rebuild Resources operates businesses that offer a safe job environment for people in recovery, helping them develop job and life skills and giving them the opportunity to rebuild their lives. Its Manufacturing and Custom Apparel and Promotions businesses produce products for customers all over the country, (including many local, regional, and national nonprofit organizations). Rebuild aims to earn 80% of its budget from its business enterprises. Nonprofits Assistance Fund helped Kevin understand the businesses' operations and financial transactions within the framework of a mission-driven nonprofit organization. According to Kevin, "Nonprofits Assistance Fund helped us look at and understand our financial statements, including our profit and loss, to reflect this nuance. They helped us separate the cost of the mission from the cost of the operations."
As part of the restructuring, Rebuild discontinued some of their enterprises and put the associated real estate on the market. However, because of its specialized nature, the sale took several years and Kevin was concerned, "Every night, before I went to bed, I worried about getting it sold." With a focus on what he could control, Kevin approached Nonprofits Assistance Fund for a loan to cover the operating costs in the interim. The partnership proved valuable again, because "Nonprofits Assistance Fund is able to operate at a different risk level and fill a cash gap where the bank would have been uncomfortable."
Loan Fund Manager Janet Ogden-Bracket described the situation, "Kevin was very savvy in his use of credit providers, he saw that this would be a good fit for his organization and would also help him maintain a good relationship with his bank." Kevin elaborated, "Nonprofits Assistance Fund allowed us to take the time to sell the property at a fair and reasonable price, rather than hold a fire sale." Rebuild Resources successfully closed on the property on December 21, 2007 and now operates without debt and the huge carrying costs. Describing Rebuild Resources' relationship with Nonprofits Assistance Fund, "We knew where we wanted to take the organization and had identified the barriers that existed in our financial situation; Nonprofits Assistance Fund helped us get around those barriers with flexible financing and allowed us to focus on the mission." A more stable and focused Rebuild Resources is able to help more people move ahead with their own vision of success, over the last two years its client placement rate has doubled.
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