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2016 Financial and Programmatic Results

2016 Financial and Programmatic Results

—Served more than 107,000 individuals with disabilities and other barriers to economic well-being—
—31% year-on-year revenue Increase driven by organic and acquisition growth—
—Maintained strong financial position—
—Achieved significant revenue synergies in first year of Easter Seals NY aquisition—
—Announces Combination with Single Stop Effective December 2016—

NEW YORK, N.Y. (December 13, 2016) – Fedcap, a not-for-profit organization that develops relevant, sustainable solutions for people to overcome barriers to economic well-being through four practice areas: Economic Development, Workforce Development, Educational Services, and Occupational Health, today reported its operating and financial results for its 2016 fiscal year ended September 30, 2016.

Management Comment

“This was an excellent year for Fedcap, as we were able to bring the “Power of Possible” to more than 107,000 individuals across 10 states and the District of Columbia, significantly increasing the size of our served population and extending our geographic reach,” said Christine McMahon, Fedcap’s Chief Executive Officer. “The strong demand for Fedcap’s expanding range of services in the areas of education, training, and job placement, career development and behavioral health is in large part a function of the measurable outcomes that our programs have achieved for individuals with barriers to economic well-being. Increasing recognition of the economic benefits of Fedcap’s programs by government and service organizations resulted in significant contract wins and awards that benefited fiscal 2016 results, as well as several important advisory assignments in New York, New Jersey and Rhode Island that we believe can be replicated in other states.

“The addition of Easter Seals NY in September 2015 was an important growth driver in fiscal 2016, and by combining their capabilities with our resources, we were able to increase their revenue base by over 20%. In September 2016, we completed the acquisition of Easter Seals Rhode Island, a transaction that will enable us to build out our footprint in that state, where we are already a provider of workforce development services.

“Today, we formally announced that SingleStop has become part of the Fedcap organization, SingleStop is a $25 million, privately funded organization that has developed a unique software solution matching individuals requiring additional assistance to those services for which they qualify—all from one location, whether it be the office of a social services organization or the financial aid office of a community college. SingleStop is currently available at 100 sites in eight states. It is our intention to both significantly expand adoption of the software and to monetize its substantial financial return on investment, enabling SingleStop to become a self-funding entity and to invest in the further development of software solutions that improve the delivery of services.

“Fedcap’s 31% revenue growth in fiscal 2016 was achieved while maintaining our strong financial position and managing to a modest operating surplus. Importantly, we were able to build our financial flexibility despite ongoing investments in talent development and infrastructure improvement to ensure that our results are sustainable, and that we retain the capacity for continuous innovation,” Ms. McMahon noted.

2016 Financial and Operating Metrics

Fiscal year 2016 revenues were $228.3 million, an increase of 31% over the $173.8 million in revenues reported for FY15. The improvement reflects both organic and acquisition growth, primarily related to new contracts with federal, state and local government and an expanding geographic footprint.

• Economic Development accounted for 45% of Fedcap’s total FY16 revenues, and is comprised of business services operations that directly employ the populations we serve. Revenues were $102.5 million. In 2016, Fedcap employed over 1550 people in these businesses, the majority of whom have disabilities or other barriers to economic well-being. Within this activity, the largest revenue driver was Total Facilities Management, which includes work at such iconic sites as the Statue of Liberty, Ellis Island, New York’s Penn Station, New York City Court Houses, Federal Aviation Administration installations in New Jersey, as well as government and commercial office buildings in New York, New Jersey, Washington, D.C. and Massachusetts. Other components of Economic Development include: Manufacturing, which provides outsourced assembly and production of electronic products for our military, delivered by a workforce comprised of people with disabilities; Business Solutions, which provides all aspects of back office support to government and commercial clients; which provides all aspects of back office support to government and commercial clients; Catering, which is a growing part of our portfolio, Security Services, Staffing Solutions and Home Health Care, where over 385 Fedcap-trained and licensed professionals provide at-home care to those in need.

• Workforce Development accounted for 33% of FY16 revenues, or $75.3 million, and represents the area in which Fedcap serves the largest number of individuals through a
broad range of services, including: functional capacity assessments, employment readiness training, vocational evaluations, wellness services, counseling and job placement and job retention services to a diversified group of individuals, each facing significant barriers to economic well-being. We are pleased to report that Fedcap placed over 10,100 individuals in jobs in fiscal 2016, 47% of which were jobs paying in excess of the minimum wage. Our job placement activities included 840 “ReServists”, retired professionals age 55+ whom we place with organizations to create social impact in education, health care and poverty fighting.

• Education and Occupational Health together accounted for over $43.4million in revenues, or 19% of FY16 revenue. This year-on-year growth rate of almost three times the prior year’s revenues was mainly due to the acquisition of Easter Seals New York and Rhode Island and our growing body of work in the area of Substance Use Disorders and Recovery. We provide a broad array of programs in the areas of behavioral health, evaluation & specialized training, assistance for youth transitioning from foster care, and vocational rehabilitation for individuals with disabilities. Through our Occupational Health services 3863 individuals who previously could not work were stabilized and referred for employment. Over 1340 individuals advanced grade level, graduated from high school, matriculated to college, graduated from college, or obtained vocational certification through our Career Design School, which offers fully certified training in Culinary Arts, Security, Facilities Management, Hospitality, Data Entry/Digital Imaging and Office Skills. Since 2013 we expanded the number of High Impact Internships we provide to disadvantaged young people from 421 located within 74 businesses and community agencies to 654 –a 37% increase—located within 209 businesses and community organizations.

Fiscal 2016 operating expenses were $227.9 million, 87% of which represented direct program expenses. Fedcap reported an operating surplus of $328,389 for 2016 compared to an operating surplus of $179,241 in 2015.

At September 30, 2016, cash and marketable securities were $29.3 million, similar to the $29.1 million at the end of fiscal 2015.

Second Half 2016 Contract Awards/Recent Developments

In the second half of FY 2016 Fedcap was awarded several significant contracts including:

• Notification of a three-year $27.6MM contract award by the NYC Human Resource Administration to serve TANF population

• A $1.3MM annual contract with the State of New Hampshire to build regional access points to combat the opioid epidemic

• A combined $1MM of annual commercial contracts for Total Facilities Management Services in Delaware and New Jersey

• A major annual contract for $250,000 annually to provide ReServists to 24 middle schools in Broward County Florida to reduce truancy

• Neighborhood Improvement Grants through Wildcat subsidiary serving boroughs of New York City totaling $1.6MM

Summary and Outlook

“Our full year 2016 end results reflect Fedcap’s increasing recognition as a multi-faceted organization with the singular focus of providing a direct, positive impact on the lives of individuals with barriers to economic well-being, their families and the communities in which they live—and doing so in innovative ways that are economically and financially viable for all stakeholders.

“Looking ahead, we are mindful of the dynamics of the political landscape and the funding environment, and continue to focus our attention on achieving positive, measurable results that are delivered in the most cost-efficient ways. In 2017, we expect to continue to grow, thanks to recent contract wins, the addition of both SingleStop and Easter Seals Rhode Island, and our ability to drive revenue synergies by replicating successful programs in new geographies.

“Fedcap has a family of brands that give the organization deep domain experience that we successfully leverage to effectively serve clients, capture new contracts and to secure foundation grants. We look forward to continuing our progress in 2017 and to keeping an open dialogue with all of our stakeholders,” Ms. McMahon noted.

About Fedcap

A not-for-profit founded in 1935, Fedcap develops innovative, creative and sustainable solutions that help people overcome barriers to economic well-being. In FY 2016, Fedcap’s educational, vocational training, job placement, post placement support and advocacy programs helped more than 107,000 individuals rebuild their lives and build a pathway to long term economic well-being.

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Fedcap 2016 Celebration of Work Gala

Fedcap 2016 Celebration of Work Gala

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“The love of my children is why I am standing here tonight, and not on the street or dead.” Niki Semnack

Fedcap’s Annual Celebration of Work Gala was one of the most powerful events in our agency’s long history. The theme of the Gala, held on November 28 at Gotham Hall in Manhattan, was the Power of Stories – stories about perseverance and triumph in the face of gut wrenching hardship. Over 500 people – friends, partners and supporters of Fedcap, as well as board, staff and leadership from the Fedcap family of agencies – heard three remarkable individuals share their stories of overcoming not only survive, but to thrive and flourish.

“In this place things hide, treasures I don’t even know I own, strength that I carry around all day…this is the place from which I pull out these three words: I promise you.” Miriam Adler

Miriam Adler shared her extraordinary story about survival in Auschwitz after losing her entire family to Nazi terror. As a young girl she found herself hopeless and alone, with only a promise she had made to her father the last time she saw him alive – never to take her own life. Miriam kept that promise and rebuilt her life after the war. Over the years Miriam told her story to her granddaughter, Yael Mermelstein, who recorded it in her remarkable book I Promise You, a copy of which was given to all Gala attendees.

“I just wanted to fit in…then I got locked up…then I got locked in.” Steve Hickman

Steve Hickman served 19 years in prison for selling drugs. Bolstered by the love and support of his family, he persevered. Steve believed in himself – he would not let his life be defined by one terrible mistake, and knew that if given another chance, he would never go back to prison. He was given that chance when Fedcap hired him to manage Wildcat work crews. Now a proud homeowner who is saving to send his grandchildren to college, Steve recently began a new job with NYC Department of Homeless Services.

Niki Semnack had a hard time growing up in Boston. As a child she was physically and sexually abused. At the age of 16 she became pregnant, and lost custody of her child. Racked with pain Niki began a downward spiral that would last 15 years. She became an alcoholic and a drug addict, living on the streets and willing to ingest any substance to numb the pain. Today Niki is strong, sober and gainfully employed, a proud mother and mentor, and an inspiring figure to all who know her.

The overflow crowd rose to their feet to applaud each storyteller. Many were moved to tears.

In addition to many longtime business and government partners, fourteen companies that were new to the Fedcap family of agencies attended the Gala which included nearly 100 new friends.

Board members Mark O’Donoghue, Larry Ach, Peter Samuels, Ken Raisler and Anoop Dhakad delivered powerful remarks about the power of stories, and Fedcap CEO Christine McMahon described the hope and belief in what is possible that underpins the work of Fedcap. Lorrie Lutz, Chief Strategy Officer, described our launch of The Power of Possible Stories, requesting that attendees sponsor the thousands of Fedcap stories of perseverance— and attendees responded with over $27,000 in sponsorships. An amazing feat for our newly launched initiative.

Powerful stories of tragedy and redemption have deep resonance for the entire Fedcap community. They fuel us, inspire us, lift us up and they connect us to one another in a way that nothing else quite does. They demonstrate the impact of our work. Fedcap is grateful for the generosity and sponsorship of our supporters, and humbled by the courage of the individuals who it is our privilege to serve.

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Solution Series: Leading as Women: How Women are Increasing Productivity and Changing Business

Solution Series: Leading as Women: How Women are Increasing Productivity and Changing Business

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Fedcap recently held its 12th Solution Series – Leading as Women: How Women Are Increasing Productivity and Changing Business.  The event took place on October 11th at Mutual of America and drew an overflow crowd of Fedcap supporters, and business and political leaders from the community.  Hundreds of people in multiple states watched the event via live stream.

A distinguished panel of leaders led a fascinating discussion about the impact of women in the nation’s boardrooms and C-suites. The panel included – 

  • Ana Oliveria, President and CEO NY Women’s Foundation
  • Denise Barges, Board Member Blue Cross/Blue Shield & Financial Portfolio Manager RI Commerce Corporation
  • Gina Berndt, Board Member and Managing Director, Perkins + Will, a leading architecture and design firm
  • Sarah Carson, founder and CEO of Leota, a fast-growing fashion design and merchandising firm.

Fedcap CEO Christine McMahon said the topic was one that was near to her heart. “Having served as a leader in the nonprofit sector for over 30 years, I understand the challenges women face as they aspire to leadership positions that have historically been held by men,” she said.

The panelists offered insightful comments about women’s contribution to leadership and the barriers they face in getting there. Ms. Berndt noted that the growing number of women entrepreneurs is related to historical barriers to leadership positions in the corporate world. If you’re talented as a woman, your leadership skills are much easier to leverage when you’re on your own. Speaking to surveys that show businesses with more women leaders are more philanthropic, Ms. Berndt said that women understand how philanthropy strengthens communities, and that from a business perspective it makes sense to connect with and understand the communities your business serves. 

Ms. Barges talked about the importance of having diverse viewpoints in leadership as women and men take different approaches to management, networking and collaboration. A co-founder of the Emerging Women in Business Conference, Ms. Barges decried the inequity in funding for entrepreneurial women; women receive approximately five present of bank loans and federal contract awards, and about seven percent of venture capital funding. As a result, women have learned how to do more with less. Despite not being taken as seriously by lenders, women must have confidence in themselves and learn to take risks.

Sarah Carson left a promising career on Wall Street, where the male-dominated culture wore on her, to start her own business. She spent years envisioning the type of culture she wanted – one of autonomy, empowerment, and personal and social responsibility. Her company’s success is driven in large part by Ms. Carson’s commitment to “hiring from her weaknesses;” she readily admits when she is wrong, and surrounds herself with people who know more than she does. This ensures that while she makes mistakes, she never makes the same mistake twice.   

Ms. Oliveria emphasized the importance of mentoring, and building a pipeline of future women leaders. But mentorship is not enough; women entrepreneurs and leaders need sponsorship as well, sponsors who will invest in them and take risks on their behalf. To that end the NY Women’s Foundation views women as assets, and is committed to giving grant support to women entrepreneurs who work in their own communities.

Fedcap board member Lynn Morgen closed the session by thanking the panelists, members of the business community who were in attendance – Clifton Hotels, Restaurant Associates, Eataly, and Mutual of America for hosting the event.

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Fedcap 2016 Graduation

Fedcap 2016 Graduation

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“Go confidently in the direction of your dreams. Live the life you have imagined.” 

Henry David Thoreau

Graduation is a special time in the lives of people young and old. It is a time of joy and celebration of the attainment of an important life goal. It is a time to look to the future, to contemplate the next chapter of life with a renewed sense of accomplishment and hope.  

At Fedcap, graduation takes on special meaning because our graduates have overcome so many barriers and challenges to achieve so much. Those who graduated from our Easter Seals New York child development centers, Fedcap School, and Career Design School celebrated this special day with a joy and spirit that was an inspiration to all.  

FEDCAP CAREER DESIGN SCHOOL

On June 15, over 160 people received graduation certificates from Fedcap’s Career Design School in a rousing ceremony at John Jay College. Fedcap President and CEO Christine McMahon delivered a powerful message to graduates of Fedcap’s Security; Facilities Management, Home Care, Culinary Arts, Youth & Young Adults and Document Imaging programs – “This is a day that embodies inspiration, aspiration, courage and commitment.” Fedcap Board Chair Mark O’Donoghue added – “We see today the fruits of what everybody worked so hard to achieve.” 

Fedcap graduates Joyell Gilliard and Chastity Salas, and graduate alumna Anita Peterson, gave powerful speeches in which they recounted the significant barriers each had overcome to graduate from a Fedcap program. These remarkable individuals inspired the crowd with their stories of hardship, courage and perseverance – by the end of their speeches, audience members rose for a prolonged standing ovation.  

Fedcap presented its Excellence in Vocational Rehabilitation award to ACCES-VR counselor Brian Alvarado. In his gracious remarks, Mr. Alvarado thanked Fedcap for its vision in helping to create ACCES-VR’s first-ever paid internship program, providing hundreds of youth with invaluable experience in building sustainable career paths.

EASTER SEALS NEW YORK CHILD DEVELOPMENT CENTERS 

Four preschools operated by Easter Seals New York participated in the joyous spring ritual of graduation. At the Bronx Child Development Center, 65 children with special needs graduated into kindergarten. Close to 200 people attended the ceremony. Parents showed up in their Sunday best, and the kids feasted on goodies at the ceremony’s end.  

At Port Jervis 60 children participated in a moving up ceremony, and entertained their parents with songs. At Valhalla, 125 children graduated from preschool to kindergarten, ending the day’s events with a carnival. Aris Pavlides, Senior VP, Easter Seals New York, said that the carnival helped to spread joy throughout the community and also raised funds for the school’s capital campaign.

At Monticello, each child was presented with an award – funniest, most helpful, best smile, etc. – after marching in to Pomp and Circumstance. Without Easter Seals New York, these children would be less prepared to transition to a fully integrated educational environment, said Craig Stenning, Fedcap Senior Vice President, Occupational Health. After the ceremony, a child’s grandmother said to him, with tears in her eyes, “I never dreamed that she could do this well.” 

FEDCAP SCHOOL

Eight students graduated from our Fedcap School in a moving Commencement Ceremony in Orange New Jersey on June 14, 2016.  The Fedcap School is a private school for students ages 14 through 21 who are eligible for Special Education and/or Related Services. For the second year in a row, four students have successfully applied to and been accepted to local and out of state community colleges. Additionally, two students have been accepted into technical programs for Culinary Arts and Emergency Medical Technician training, and two students will continue receiving resources from the NJ Division of Developmental Disabilities as they work towards self-sufficiency and economic independence.

The ceremony included an original student music video and a poetry reading by the graduates. Keynote speaker Principal Baruti Kefele, a renowned educational speaker and author, spoke of student empowerment and the will to achieve excellence.

KESSLER CENTER

On Friday, June 24 the Kessler Center presented certificates of completion to two individuals who are graduating from the program. The Kessler Center provides comprehensive services to children and young adults ages 5-21 who have disabilities and complex challenges, many who have been unsuccessful in other programs. 

The ceremony began with comments by Craig Stenning, Executive Director of Easter Seals New York and Sr. VP for Occupational Health for Fedcap, followed by Kessler Center Director of Education Jason Lustig, who recounted heartwarming stories about the two graduates and described their growth and development. Staff and student awards were presented by Andreas Rau, Executive Staff Assistant to Rochester Mayor Lovely Warren, members of The Rochester Sheriff and Police Departments, as well as staff members.

Special thanks are due to Easter Seals New York Western Region board member Kyle Bollinger for providing refreshments and games for the event, and to Wegmans, a family-owned Rochester-based grocery store chain that is a supporter of Easter Seals New York. 

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Solution Series: Addressing Employee Mental Health and Addiction: Improving Your Business Bottom Line

Solution Series: Addressing Employee Mental Health and Addiction: Improving Your Business Bottom Line

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“Addiction is based on fear, which goes hand in hand with stigma, it is a disease of progression, for which recovery is “the last house on the block” — that is why it’s so important that the workplace to be a safe, supportive environment where employees can ask for help.”  

Fedcap’s 11th Solution Series, Addressing Employee Mental Health and Addiction: Improving Your Business Bottom Line, was one of its most powerful to date. The event, on March 30 at the Mutual of America building in Manhattan, drew an overflow crowd of more than 140, including almost 50 businesses, and attracted many more who participated via webcast.

A distinguished panel of business leaders explored the ways in which employees struggle with substance abuse disorders and untreated mental illnesses, and how employers are designing and offering programs and services to help these individuals.

Brooke Wilson, head of Worklife Services for Resources for Living, Aetna’s employee assistance program, talked about presenteeism – the impact on productivity when one or a number of employees suffer from untreated mental illness or substance abuse disorder.  For employers, the challenge is to encourage these individuals to utilize available services, and ensure that the services are effective.  To measure the impact of its services, Ms. Wilson said that Aetna monitors multiple components of well-being as reported by employees, and uses other metrics.

Jim Salzano, head of Easy Spirit Shoes, said that he feels a responsibility to serve everyone in his company – too often, society in general is conditioned to reject people at their moment of greatest need, when suffering from addiction or mental illness. In creating a healthy, non-stigmatizing work environment, Mr. Salzano said that as a chief executive, he strives to treat his employees the way he would want to be treated were he in that situation. 

Matthew R. Sisk, Deputy Commissioner of the Massachusetts Department of Conservation and Recreation, spoke eloquently about his own struggles with alcoholism. He said that substance abuse is based on fear, which goes hand in hand with stigma, and that it is a disease of progression, for which recovery is “the last house on the block;” no one else wants you when you are at that place in your life. That’s why it’s so important that the workplace to be a safe, supportive environment in which employees can address their issues.   

This recent Solution Series compliments Fedcap’s innovative work in integrating education, treatment, recovery and employment to change people’s lives—every day.  Fedcap operates an outpatient behavioral health clinic in the Bronx, a day treatment program in New Jersey and a peer driven clubhouse in Manhattan. Fedcap recently combined with Granite Pathways in New Hampshire, and our first recovery center will open in Portsmouth, New Hampshire at the end of April. 

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Solution Series: A Conversation with Patrick Kennedy: Changing the National Discourse About Mental Health Issues and Addiction

Solution Series: A Conversation with Patrick Kennedy: Changing the National Discourse About Mental Health Issues and Addiction

On Wednesday October 28, Congressman Patrick Kennedy spoke at Fedcap’s 10th Solutions Series. Mr. Kennedy served 16 years in Congress and is one of our country’s leading and most compelling advocate for changing the stigmatization of mental health and addiction, and improving access to care.

The invitation-only event, hosted by the law firm of McDermott Will & Emery, was attended by over 75 business, government and health care leaders. It was live streamed to audiences in London, Boston, Syracuse, Washington DC and Concord, New Hampshire, where over 175 people participated.

Craig Stenning, Fedcap’s Senior Vice President for Occupational health, welcomed guests and thanked Fedcap President and CEO Christine McMahon for her energy and commitment in making these events possible. He thanked Congressman Kennedy whose recent book, A Common Struggle: A Personal Journey Through The Past and Future of Mental Health and Addiction, highlights his own struggles, and those of his famous family, with mental health and addiction.

“We honor Congressman Kennedy’s courage to share his story, which mirrors those of millions of Americans who are suffering from an untreated mental illness of addiction,” he said.

Fedcap Board Chair Mark O’Donoghue acknowledged several VIPs in attendance including HRA Commissioner Steven Banks, former NYC Mayor David Dinkins, and NYC First Lady Chirlane McCray – who he described as the driving force behind important initiatives in NYC to deliver mental health services to low-income and at-risk populations.

Ms. McCray introduced Representative Kennedy, thanking him for breaking “the conspiracy of silence around his own troubles” with the publication of his book, and for his signature legislation, The Mental Health Parity and Addiction Act, which provides equal access to care and treatment for people with mental illness. She thanked Fedcap for its efforts on behalf of individuals with mental illness and intellectual disabilities; “New York City is so lucky to have an organization like Fedcap fighting on behalf of our neighbors who face barriers to employment. I saw first-hand how Fedcap is changing lives when I visited Fedcap’s WeCare site in Brooklyn.”

In his remarks, Representative Kennedy called the fight for the rights of people with mental illness – including access to treatment that is equal to those with physical illness – “the new frontier of social justice.” He called for funding to be directed to support outcomes, not just deliver services, and to prioritize placing people who suffer from mental illness in supported environments where they can work and enjoy independent lives.

Representative Kennedy spoke of mental illness in moving and personal terms. He said that unacknowledged and untreated mental illness is corrosive to every single person in a family, and that none of us in society escapes its impact. He said that policy makers pay lip service to mental illness, but if this were a physical disease like diabetes or cancer, it would be considered a public health epidemic.

“We all know the secret sauce of health care reform is managing the depression and mental illness off people in the community, the workplace and in health insurance plans where people are neglected because of the shame and stigma of having that diagnosis,” he said.

Representative Kennedy discussed the great work being done in New York State to improve access to care for veterans, and innovative programs to help individuals with untreated mental illness and addiction who are involved with the criminal justice system.

In closing remarks Representative Kennedy graciously thanked Fedcap for its work in providing opportunities for people with barriers to find jobs. “Thank you Fedcap for your work in what is so essential and often missing in discussions about mental health and addiction, and that is employment, which in our culture is tied to self-esteem. What President Kennedy tried to do with the Community Mental Health Act of 1963, to help people lead productive lives while living with their families in their communities, is what Fedcap does every day.”

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Fedcap Group Senior VP Grant Collins Testifies Before U.S. House Committee

Fedcap Group Senior VP Grant Collins Testifies Before U.S. House Committee

On June 10th Grant Collins, Fedcap Senior Vice President of Workforce Development and Executive Director of WeCARE, testified before the U.S. House of Representatives Committee on Agriculture. The hearing, “Past, Present, and Future of SNAP: The Means to Climbing the Economic Ladder,” is part of the committee’s two-year review of SNAP, in anticipation of potential reforms to the food stamp program in 2017-2018.

Grant provided committee members with an overview of the WeCARE (Wellness, Comprehensive Assessment Rehabilitation and Employment) program, which is administered by the NYC Human Resources Administration’s Customized Assistance Services. WeCARE addresses the needs of cash assistance clients with medical and/or mental health barriers to employment by providing assistance and services to help clients achieve their highest levels of self-sufficiency. Based on the outcome of a comprehensive assessment, case managers work with clients to develop a customized plan that connects them to a range of appropriate services.

Fedcap is the sole provider of WeCARE services in NYC, serving over 50,000 cash assistance clients annually. Over 485,000 clients have participated in WeCARE since the program was implemented in 2005.  

“We at Fedcap are extremely proud of Grant’s appearance before the U.S. House of Representatives Committee on Agriculture,” said Fedcap President and CEO Christine McMahon. “This speaks to Fedcap’s innovative approach to creating pathways to self-sufficiency for people with barriers, and the great work of Grant and his staff in managing the WeCARE program.”

In his testimony, Grant described WeCARE as consistent with participation and time limits requirements as defined by the Temporary Assistance for Needy Families (TANF) program. TANF is a Federal Government program that provides block grants to states to assist needy families and help reduce dependency.

WeCARE is unique among TANF programs in its laser focus on workforce readiness training and job placement. In most public assistance programs clients who present a health claim for benefits are exempted from work requirements and /or helped to apply for federal disability benefits, rather than assisted in preparing for and finding a job. Under the WeCARE model, clients must complete an independent medical assessment as a condition of eligibility, with four possible assessment outcomes: 

• Fully employable
• Employable with accommodation
• Temporarily unemployable; needing wellness or condition management
• Unable to work

Remarkably, in a population in which all of the 485,000+ clients who received assessments initially believed they were unable to work, 6 percent were determined to be fully employable, 44 percent were found to be able to work with an accommodation, and 33 percent were able to work subsequent to their medical conditions being stabilized. Only 17 percent were found to be unable to work. Of those found to be employable with accommodations, 95 percent have since worked, with 60 percent working 30 hours per week or more. 

An innovative, holistic approach to job training, placement and the clinical environment drives the success of the WeCARE program. All WeCARE staff members participate in this jobs-driven process. So do program participants; in 2014 Fedcap averaged 192 job placements per month, including 90 placements that did not involve a staff job developer. These placements resulted from job leads generated by the participants themselves, who are trained – as a key element of becoming self-sufficient – to be their own job developers, and to take the lead in conducting their own job search.

In total, 2321 job placements were made in 2014, far exceeding the program’s goal of 145 placements per month.

The WeCARE program – the largest of its kind in the nation – also exemplifies best practices in case management in a comprehensive, multifaceted application of the case management model. Case managers in the program manage client wellness, vocational rehabilitation, employment and retention services, application for federal disability benefits and more – all under one roof. Committee members were keenly interested in this aspect of WeCARE, as comprehensive case management will likely be a key component of SNAP reform going forward. 

In closing remarks, Grant told the committee that the success of the WeCARE program shows that with the right approach, individuals who are disengaged from the workforce can indeed achieve self-sufficiency as productive and valued employees.  

“I believe that the first step on the path out of poverty is to know the dignity of work,” he said. “The WeCARE program shows that work and self-sufficiency are possible for far more people with barriers than previously thought.”

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Solution Series: Immigration and Its Impact on Business

Solution Series: Immigration and Its Impact on Business

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On Thursday March 26th over 150 people representing businesses, foundations, nonprofits and government, participated in person and via streaming in Fedcap’s 9th Solution Series. The topic was “Immigration and Its Impact on Business.”

A panel of distinguished thought leaders convened at the Mutual of America building in Manhattan to explore a range of questions related to immigration including visas, the untapped immigrant workforce, marketing a business to immigrant populations and cultural diversity in the workplace.

“The Solutions Series was established five years ago to have open, honest discussions about topics of importance to the business community,” said Fedcap CEO Christine McMahon, who opened the event. “Historically, our national perspective on immigration could best be summarized by the iconic poem that is mounted on the Statue of Liberty that begins “Give me your tired, your poor, your huddled masses yearning to be free.” The conversation today would be about “bring me your entrepreneurs, skilled workers and innovators.”

The panel was introduced by Fedcap Chief Strategy Officer Lorrie Lutz, who moderated a highly engaging and informative discussion. First to speak was David Dyssegaard Kallick, Director of Immigration Research Initiative at the Fiscal Policy Institute. Kallick described a population of 41 million immigrants in the United States that is incredibly diverse both culturally and in the workplace.

“Wherever there is economic growth immigrants are part of the story,” he said. “Companies that do not understand immigrant populations will lose their competitive edge.”

Bo Young Lee, Global Diversity and Inclusion Leader, Marsh LLC, the world’s largest insurance company, discussed how a shortage of skilled workers forces companies that would rather hire U.S. citizens – it’s much easier and less expensive – to turn to foreign workers through the H1-B visa program. She also discussed how Marsh has strived to create a culture of inclusion. Companies that are successful in bringing immigrant workers into a recruitment pipeline often fail at creating an inclusive hiring process. To do so requires a greater awareness of cultural mores around body language, expressions of emotion and other factors.

Luis Tejada, Vice President of Sales, Goya Foods, Inc., talked about how Goya grew from a small Main Street business founded by Puerto Rican immigrants in 1936 into America’s largest Hispanic-owned food company, with over $1 billion in annual global sales. A centerpiece of the company’s strategy is learning how to interface with different groups of immigrants, including a growing number of Korean and Middle Eastern customers. “History has proven that cultural inclusiveness is good for business,” he said. “No matter what, immigrants will continue to create opportunities and contribute socially, economically and politically to society.”

Fedcap COO Joe Giannetto closed the event with a personal story about his own parents who came to the U.S. as immigrants. He also talked about our history of hiring immigrants.

“Fedcap plays a huge role in the lives of immigrants and other populations, helping them achieve personal success and realize their dreams,” he said.

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Fedcap CEO Christine McMahon Appointed to US Secretary of Labor Advisory Committee on Increasing Competitive Integrated Employment for Individuals with Disabilities.

Fedcap CEO Christine McMahon Appointed to US Secretary of Labor Advisory Committee on Increasing Competitive Integrated Employment for Individuals with Disabilities.

New York City – Christine McMahon, Chief Executive Officer of Fedcap Rehabilitative Services, Inc. a New York City nonprofit agency, was recently appointed to serve on the United States Secretary of Labor’s  Advisory Committee on Increasing Competitive Integrated Employment for Individuals with Disabilities.

The purpose of the committee is to advise the Secretary on ways to increase competitive integrated employment opportunities for individuals with significant disabilities. The committee is a key provision of the Workforce Innovation and Opportunity Act. Signed into law by President Obama in July 2014, the WIOA helps job seekers, including those with disabilities, access services to succeed in employment and matches employers with skilled workers.

The committee consists of federal officials and 17 representatives from various national constituencies that serve people with disabilities. It meets at least eight times over a two-year period, and is responsible for submitting a series of recommendations to the Secretary of Labor, the Senate Committee on Health, Education, Labor and Pensions, and the House Committee on Education and the Workforce. 

According to Secretary of Labor Tom Perez, “Employing people with disabilities is a win-win for workers, employers and the entire community. This is sound public policy, and the advisory committee will help us expand opportunities for more people with disabilities.”In a career that spans over 30 years, Ms. McMahon has brought an amazing level of innovation, energy and impact to increasing integrated, competitive employment opportunities for youth and adults with significant disabilities.

As Chief Operating Officer of Easter Seals New Hampshire, Ms. McMahon founded the Autism Support Network and  implemented a network of community-based services and a continuum of care system that includes a special education school, an employment model, and a family advocacy initiative, all established under her leadership.

In 2009, Ms. McMahon became Chief Executive Officer of Fedcap.  Established in 1935, Fedcap is a pioneer in employment with a mission is to create opportunities for people with barriers to move toward economic independence as valued and contributing members of society.

Currently, Ms. McMahon is spearheading national efforts to increase competitive, integrated employment opportunities for people with intellectual/developmental disabilities.  Fedcap is working in closepartnership with the Rhode Island Department of Behavioral Healthcare, Developmental Disabilities and Hospitals (BHDDH) as they lead the country in closing sheltered workshops and creating community based employment opportunities.  Fedcap was awarded the contract to establish a Center for Excellence and Advocacy (CEA) in Providence, Rhode Island, to help implement this change.   

A front-page article in the October 5th edition of the Sunday New York Times told the story about the marriage of two  participants in a former sheltered workshop in Rhode Island, who have moved on to community-based jobs and independent, self-sufficient lives.  The article stated: “…. in the eyes of the federal government, sheltered workshops can no longer be default employment services for people with disabilities.  We are entering a new era of service…”

For media inquiries please call 212.727.4236 or email at dbiederman@fedcap.org

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Solution Series: Minimum Wage Increase: Costs, Benefits and Complexities

Solution Series: Minimum Wage Increase: Costs, Benefits and Complexities

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On Thursday October 23rd, over 150 people representing businesses, foundations, nonprofits and government, participated in person and via streaming in Fedcap’s 8th Solution Series. The topic was “The Minimum Wage Increase: Costs, Benefits and Complexities.”

A distinguished panel of experts convened at the Mutual of America building in New York City to explore a topic that has inspired vigorous debate since the first federal minimum wage was instituted in the 1930’s. Proponents and opponents of raising the minimum wage disagree about fundamental questions such as how it will affect employment and job creation; the impact on poverty; the impact on disadvantaged workers, and whether it will hurt or help small businesses.

“The social and economic implications of raising the minimum wage make it a very complex issue,” said Fedcap CEO Christine McMahon, who opened the event. “We have convened this Solutions Series to ask the right questions and to explore this important issue from multiple perspectives.”

The panel offered thought-provoking insights and ideas about the minimum wage. Michael Weinstein, an M.I.T-trained economist and Chief Program Officer for the Robin Hood Foundation, said that economists have studied the minimum wage in detail and produced a vast body of research. While there is disagreement about whether a higher minimum wage is good policy, there is broad consensus that its macroeconomic impact is modest.

“Economists talk about the minimum wage as small change, small impact,” he said. ‘Some jobs will be lost and some families will be raised out of poverty, but across the economy it has a pretty small impact.”

Mr. Weinstein said that the Earned Income Tax Credit, which provides tax rebates to workers who file tax returns, is considered by many to be a more effective tool for lifting families out of poverty than raising the minimum wage.

Beth Moss, Director of Human Resources for the North American operations of ISS, a global provider of facility maintenance services, said that all publicly traded companies are focused on employee compensation. Companies always have to consider market factors when establishing wage levels, and in low-margin businesses like facilities maintenance there is pressure on the level of compensation that ISS can pay for employees who provide those services. A challenge for the industry is to educate customers about the value of facility maintenance in creating a healthy work environment and preserving physical assets. When customers perceive the impact of the service on the bottom line, compensation will rise.

“As the perceived value of our services improves we are highly optimistic that we will have fewer federal minimum wage workers,” Ms. Moss told the audience.

Joanne Pokaski, Director of Workforce Development at Beth Israel Deaconness Medical Center in Boston, said that Beth Israel consistently pays its entry level workers above the minimum wage. The hospital has also implemented measures to help its employees climb the wage ladder. It provides career and academic counseling, free on-site pre-college courses and college-level science courses, as well as a proactive approach to train and promote employees from within the organization. “Our business drivers for these decisions are clear—we have hard to fill mid-tier jobs and by paying well we have a stronger pool of entry level staff who we can develop to fill the mid teir jobs.”

Shamus Jones, Founder and President of Brooklyn Brine, an artisanal pickling business with 10 employees, offered a small business perspective on the minimum wage. As a manufacturer of specialty products competing in an industry dominated by commodity products and pricing, paying subpar wages was never an option. Jones starts his workers at $16 per hour – significantly higher than the minimum wage – but expects a lot in return.

Mr. Jones believes that the increased productivity resulting from reduced employee turnover, high morale, and loyal employees who believe in the company and are willing to work hard to share in its success, more than cover higher wages, and ultimately pay off in an increased bottom line.

“I believe in conscientious capitalism,” he said. “Higher wages means we get much more competitive applicants, who give us the competitive edge we need.”

The audience engaged the panelists in a lively question and answer period right up until the end of the event.

“This Solutions Series has been tremendously informative,” said Fedcap COO Joe Giannetto. “We are grateful to our panel for having provided us with a better understanding of this complex issue.”

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