Uncertainty and Preserving Options

Uncertainty and Preserving Options

“Uncertainty is a permanent part of the leadership landscape. It never goes away.” – Andy Stanley

As we have reached over 32,000 coronavirus cases in the US, with many cities asking its residents to stay home, with funders closing programs, and with the overarching situation continuing to unfold, I wanted to share a personal message about how I am dealing with this situation.  

I am not someone who likes uncertainty—and I ask many, many questions in order to gain clarity in any situation.  I like to dig deeply into complex problems, clear the noise and make decisions.  Yet during these times there simply may not be answers.  We are operating in a time of uncertainty and this is not easy.  

So what do we do?

I have found insights by Patrick Collison, founder of Stripe, to be especially helpful.  In an article published by the Knowledge Project entitled “Preserving our Optionality Collison”, he wrote:  

“How do we prepare for a world that often changes drastically and rapidly? We can preserve our optionality. We don’t often get the advice to keep our options open.  And we should.  We live in a world that’s constantly changing, and if we can’t respond effectively to those changes, we become redundant, frustrated, and useless. Instead of focusing on becoming great at one thing, there is another, counterintuitive strategy that will get us further: preserving optionality. The more options we have, the better suited we are to deal with unpredictability and uncertainty. We can stay calm when others panic because we have choices.”

This rings so true for me, especially given the current times.  Optionality means that we are always preparing for a variety of possible outcomes.  We assume the next challenge is around the corner and we are constantly listening to diverse voices in order to be prepared. 

Ultimately, preserving optionality means examining our work from multiple perspectives—diversity of thought, knowledge and skills are required. It means building a versatile base of foundational knowledge and expecting the unexpected.  As Collison said, ”Rapid, extraordinary change is the norm. In order to adapt in a way that is useful, keep your options open.  To do that we must seek to expand our comfort zone and circle of competence”.

So in this time of uncertainty, let’s find strategic ways to preserve our options.  Let’s be smart, making decisions that can weather this storm.

And in the meantime, breathe.  I want to share a poem with you that has great meaning to me and when things seem overwhelming, I listen to it. 

 

A Message from Christine McMahon, President & CEO, The Fedcap Group

Celebration

Celebration

This time of year, many of us are celebrating the Winter Solstice, Hannukkah, Christmas, or Kwanzaa.  I spent some time contemplating the idea of celebration, even looking up the definition. One definition is to honor an occasion or holiday with ceremonies of remembrance and respect while refraining from ordinary business. Another is to mark an anniversary or special historical event with festivities or other departures from routine.  I noted that there is a common theme within these definitions of celebration: to do something different and better than what we do every day.

This is what I hope for all of us: that we take time to set aside our regular routines to enjoy this special time of year and recharge for 2020—the beginning of a new decade. My experience is that something important happens when we allow our brain to rest; we think bigger thoughts, we become more creative and even more hopeful.

I also contemplated all that I want to celebrate during this time of reflection.  I have a favorite saying, “celebrate that which you want to see more of.”   So, with that in mind, these are some of the things that I am celebrating at this time of year: 

COURAGE –the courage to take a stand—to set bold goals that will make a difference in the lives of people today and in generations to come–the courage to matter.

GRATITUDE—my deeply felt gratitude to everyone who helps drive the work of The Fedcap Group including board, staff, donors and those we serve. 

INSPIRATION—that spark, that exhilaration, that causes us to act with the goal of making a significant difference.   

PERSISTENCE— that firm course of action in of the face of difficulties or obstacles; even when those around us suggest that we give up.

FRIENDSHIP— that person who just seems to know what you need and when.

So, as we close out this decade, it is my hope that you take the time to celebrate—do something different than you do every day and contemplate and act on what really matters to you.

FY19 Year-End Financial and Operating Results

FY19 Year-End Financial and Operating Results

On Thursday, December 19th, 2019, The Fedcap Group released its FY19 Year-End Financial and Operating results. This effort, conducted twice a year, provides key stakeholders with regular and timely disclosures about financial and operational performance, mission-related impact, and trends and challenges for The Fedcap Group and underscores our commitment to fiscal transparency.

Please click on the image below to download the presentation.

The Fedcap Group Reports Year End Fiscal Year 2019 Operating and Financial Results

The Fedcap Group Reports Year End Fiscal Year 2019 Operating and Financial Results

The Fedcap Group Reports Fiscal Year 2019 Operating and Programmatic Results

NEW YORK, N.Y. (December 19, 2019) – The Fedcap Group, the parent company for a growing network of top-tier nonprofit agencies, today reported its financial and programmatic results for fiscal 2019 ended September 30, 2019. Committed to providing services that positively impact the lives of people with barriers to social and economic well-being, The Fedcap Group operates in four main practice areas:  Workforce Development, Education, Occupational Health and Economic Development.

Management Comment

“2019 was a period of significant progress for The Fedcap Group,” said Christine McMahon, Chief Executive Officer. “We continued to refine our work in our five key areas of focus:  Children ages 0-6, youth transitioning from foster care, individuals with intellectual/developmental disabilities, the previously incarcerated and those on public assistance.  We also enhanced our technological infrastructure through upgrades to our financial, HR, fund raising and business development platforms.

“The Fedcap Group’s branded agencies provided services to over 245,000 children, youth and adults in fiscal year 2019.   Specifically, we saw a significant increase in our work with children ages 0-6, combining with Bronx-based TOTS and opening two new child development centers in NYC—serving over 5,800 children ages 0-6 this year. 

“Another key highlight was the expansion of our business in the UK where we are branded as Fedcap Employment and Fedcap Scotland.  Through these companies, we served 10,250 individuals in 2019, well exceeding expectations.   The establishment and continued development of our international operations provides a platform for us to spread our tested model of service to individuals on public assistance and replicate the positive outcomes that we have achieved domestically.”

2019 Financial and Programmatic Metrics

Fiscal Year 2019 revenues were $301.9 million, an increase of 0.9% over the $299.3 million in revenues reported for Fiscal Year 2018. Over the last several years, The Fedcap Group has significantly diversified its revenue sources, bringing a broader array of services to at-risk populations.

FY 2019 operating expenses were $301.4 million, 88% of which represented direct program expenses. Fedcap reported an operating surplus of $484,413 for the year compared to  $1,422,599 in the same period last year.

In December 2018, Fedcap increased its working capital line of credit to $28 million.  We continue to evaluate the appropriate sizing of our line of credit in order to ensure that it can support our continued growth.

At September 30, 2019, cash and marketable securities were $19.1 million compared to $29.0 million at the same time last year.

Key Contract Wins in Fiscal 2019

In fiscal 2019, Fedcap was awarded and executed contracts valued at over $42 million, of which the vast majority represented new business. These included:

Summary and Outlook

“FY 2019 results have set the stage for another year of positive achievements at The Fedcap Group. After several years of back-to-back double-digit growth, this was a year of slightly increased revenue growth, as we absorbed the wind-down of the large WeCARE contracts, which was a significant contributor to fiscal 2018 revenues. Exclusive of that contract, revenues would have increased 17% year-on-year.  

“Looking ahead at our pipeline of award opportunities and of potential acquisitions, we are confident that our fiscal 2020 will be a year of substantial growth for Fedcap. We are leveraging complementary capabilities and qualifications across our organization to achieve positive outcomes for clients and to win strategically important contracts.  The Fedcap Group’s operations now span 22 states domestically and the United Kingdom, enabling us to serve populations in need across a broad geographic footprint.

“The Fedcap Group ended FY 2019 in a strong financial position, and we continue to operate with rigorous financial and risk management controls and procedures to ensure that we remain a sustainable organization with sufficient infrastructure and resources to effectively serve clients.

“Additionally, we continue to build out our capabilities and footprint by engaging with other like-minded service providers to explore opportunities together that have the potential to significantly strengthen our combined impact on key issues facing the populations we serve,” Ms. McMahon noted.

About The Fedcap Group

For 85 years, The Fedcap Group has developed scalable, innovative and potentially disruptive solutions to some of society’s most pressing needs. Serving over 245,000 people each year, The Fedcap Group provides educational services to every age group, vocational training in high-growth industries, behavioral health services, work readiness skill building and jobs—all targeted to helping people achieve long-term self-sufficiency. 

The Fedcap Group also invests its time and resources in broader system change—working in partnership with federal, state and local government to improve the way services are designed, funded and delivered.

Conference Call Details

Date: 12/19/19 at 11:00am EDT
Phone: 1-844-792-3735
Link to Webcast: www.fedcapgroup.org/results

Financials