SAMARITAN INN EXPANSION IN DALLAS

PROJECT SAMARITAN INN EXPANSION IN DALLAS

Lets end homelessness one step at a time.

Prepared For:
RICHARD SIEWERT JR. PRESIDENT OF PUBLIC RELATIONS THE GOLDMAN SACHS GROUP, INC. MARGARET SMALLWOOD SENIOR PANEL MEMBER COMMUNITY ENGAGEMENT COMMITTEE, DALLAS

Authors:
JULIE HELLWARTH JOSHUA HOUSER ASHEK FAIZULLAH NEAZ AREFIN December 2, 2013 ANDRE ULMER EDWIN ROMERO

SAMARITAN INN EXPANSION IN DALLAS

TABLE OF CONTENTS
I. II. III. IV. V. VI. VII. VIII. INTRODUCTION...................................................................................................... 3 BACKGROUND ...................................................................................................... 4 PROPOSAL ............................................................................................................. 6 PLANNING .............................................................................................................. 8 STAFFING ................................................................................................................ 9 BUDGET................................................................................................................. 10 AUTHORIZATION REQUEST .................................................................................. 13 REFERENCES ......................................................................................................... 14

SAMARITAN INN EXPANSION IN DALLAS

INTRODUCTION
United States of America, arguably the most powerful country in the world, donates $50 billion annually (U.S. Foreign Aid by Country, 2012) in foreign aid. Ironically, over 630,000 people are homeless (Roberts, 2013) in the country which is considered the largest contributor to foreign aid. The pride of being an American citizen is greatly undermined for those 630,000 people. Their definition of American Dream is significantly different from the rest; they just need a safe place to spend the night. Yet the society is somehow comfortable watching these people suffer. Homelessness is defined differently in different contexts but a general definition of a homeless person is someone who lacks a fixed, regular, and adequate night-time residence (Facts and Figures: The Homeless, 2009). Under this definition, America was hardly ever immune to homelessness. The government has been making efforts but it is just not enough to cope with the rapidly rising numbers. The country is barely recovering from the biggest recession since the Great Depression, and the government is having to cut down spending to accommodate the recovery process. This spending cut will result in many government programs shutting down, further increasing the number of homeless people (Roberts, 2013). About 40% of the homeless men are veterans (Facts and Figures: The Homeless, 2009). To better understand the gravity of the situation, National Coalition for the Homeless carried out research and found the number of homeless veterans to lie between 130,000 and 200,000 on any given night (Homeless Veterans, 2009). These men and women have risked their life in the interest of national security and they find themselves in the streets when they return home. It is totally unacceptable and heartbreaking. The fastest growing stakeholder, however, is families with children (Hunger and Homelessness). These children are prone to suffer from malnutrition and lack of medical attention. Clearly the government is unable to tackle the situation alone and its time for corporations to step up and aid these helpless people find homes. Here at Goldman Sachs, we do not only thrive to exceed our clients expectations but also look for opportunities to make the society a better place. Over the past 4 years, Goldman Sachs Gives program donated $667 million in 35 countries around the world (Goldman Sachs Gives). Our efforts are not restricted to mere donations; we are actively involved in community services and joined hands with other non-profit organizations to dedicate 125,000 hours into community service in 2013 alone (Community Teamworks). With such rich culture of community involvement, our company is a great match to help the homeless people of the Dallas County.

SAMARITAN INN EXPANSION IN DALLAS

BACKGROUND
With increasing poverty in America, action is more crucial than ever. Hunger and homelessness are increasing epidemics affecting the United States. Just last year, the national poverty rate rose to 13.2% of the population. One in seven people were at risk of suffering from hunger in the United States and 3.5 million people were forced to sleep in parks, under bridges, in shelter or cars(Cadwell, 2013). The combined high cost of living, low-wage jobs, and high unemployment rates only worsen these problems and force many Americans to choose between food, housing, and other expenses. Studies show that money used for food is typically the first to be sacrificed. Families will often pay their fixed payments first, such as rent and utilities, rather than pay for food (Cadwell, 2013). Unfortunately, these problems will only continue to grow if our society does not make it a national priority to address them in an effective way. Who is Homeless and Why? In the U.S., more than 3.5 million people experience homelessness each year. 35% of the homeless population are families with children, which is the fastest growing segment of the homeless population 23% are U.S. military veterans 25% are children under the age of 18 years 30% have experienced domestic violence 20-25% suffer from mental illness In urban communities, people experience homelessness for an average of eight months. People become homeless for a variety of reasons. It is mainly an economic problem, but is also affected by many social and political factors. The number of homeless people dramatically increased in the 1980s, because federal funds were removed from low-income housing and social assistance programs. Current federal spending on housing assistance programs for the low-income populations is less than 50% compared to 1976. State-wide How many people experience homelessness in Texas? The National Survey of Homeless Assistance Providers and Clients (NSHAPC) statistical projections indicate that between 0.9% and 1.3% of the United States population will experience homelessness for at least one day throughout the year (THN, 2013). Based on this research,

SAMARITAN INN EXPANSION IN DALLAS

BACKGROUND

CONTINUED

it is estimated that more than 265,000 Texans will experience being homeless throughout the year. This research shows that on any given day in Texas, there are over 79,000 people that are experiencing homelessness. Whether you are mentally ill, suffering from an addiction, or physically disabled, low incomes and high housing costs are the root causes of homelessness (THN, 2013). A recent study shows that someone who works 40 hours a week at minimum wage cannot afford a one-bedroom apartment. In Texas, a person would need to work 88 hours a week earning minimum wage to afford a one-bedroom apartment. This means that the need for affordable housing is great across the state of Texas. Locally Although there have been great efforts to eradicate homelessness in Dallas County over the last decade, the homeless population has increased by almost 40 percent in the last year. The annual count conducted in January says some shelters are operating at full capacity, even after expanding their facilities over the last couple of years. Collecting a complete and accurate census of the homeless has always been a challenge (Rosales, 2013), but whether the data this year is precise or not, the struggle with chronic homelessness is apparent in Dallas. Much of the problem of homelessness in Dallas is for the Dallas Housing Authority, which dedicated 1,200 units of housing this year, but federal budget cuts have made it impossible to realize. We can definitely assume that there is a desperate cry for help from the Dallas Housing Authority. Homeless families are one of the most difficult populations to count, but there is definitely a growing demand that we need to keep up with. The Union Gospel Missions family shelter had to turn down 100 families last month for services (Rosales, 2013), because the few shelters that serve families fill up quickly.

SAMARITAN INN EXPANSION IN DALLAS

PROPOSAL
In order to rid homelessness in Dallas, we propose that Goldman Sachs would need to join forces with the Samaritan Inn, Habitat for Humanity in the Dallas area, Frost Bank, Bank of Texas, and The Bank of Whittier. Our plan is to expand the existing Samaritan Inn in McKinney to Dallas, so that we can help willing homeless families in Dallas regain their independence and get back on their feet. The Samaritan Inn is an existing non-profit organization in McKinney, Texas, that is currently serving over ten cities (The Samaritan Inn Annual Report, 2013). The Samaritan Inn houses around 160 adults and children at a time for up to 6 months. The residents are required to attend classes that prepare them with the skills necessary to live on their own successfully. The Samaritan Inn offers a comprehensive homeless progr am that helps willing people gain dignity and independence (The Samaritan Inn About, 2013). The Samaritan Inn had to turn away 3,573 people due to lack of space (The Samaritan Inn Annual Report, 2013). By creating a second Samaritan Inn in Dallas, we can help increase the number of people participating in this program. Habitat for Humanity in the Dallas area builds homes for families paying more than 50% of their income on housing and usually living in dangerous conditions in substandard housing (Dallas Area Habitat for Humanity, 2013). They provide qualified families a tangible asset at below cost with no cash down payment and a 0% mortgage for 25 years; in lieu of a down payment, homeowners are required to contribute by building on their own home and the home of their neighbors (Dallas Area Habitat for Humanity, 2013). Under our proposal, Habitat for Humanity in the Dallas area would help Goldman Sachs create the Samaritan Inn in Dallas, Texas by remodeling a purchased motel. Goldman Sachs would purchase a motel for sale and Habitat for Humanity in the Dallas area would remodel the motel to fit the requirements of the Samaritan Inn. Funding for the project would come from four places. Goldman Sachs will contribute 50% of the needed costs to remodel and open the Samaritan Inn in Dallas, Texas. Frost Bank, the Bank of Texas, and The Bank of Whittier will each contribute $50,000 of the costs of the project. Once the Samaritan Inn opens, they will be responsible for the operating costs. Frost Bank has been serving Texas since 1868, when it was founded. Frost Bank plays an active role in the communities they serve (Frost Bank, n.d.). Frost Bank will be dedicated to furthering the Samaritan Inns cause and will enjoy the good public relations that will come from supporting this project. The Bank of Texas, a stable and reliable financial partner, has a goal to offer solutions that create value for the

SAMARITAN INN EXPANSION IN DALLAS

PROPOSAL

CONTINUED

community (Bank of Texas, 2013). Since the Bank of Texas is dedicated to helping the community, the bank would be interested in helping to build a Samaritan Inn in Dallas. The Bank of Whittier, founded in California, opened a second branch in Richardson, Texas in July of 2011 (Bank of Whittier, 2004). Since this bank is relatively new to the Dallas area, they would be looking for a public relations opportunity like the one we are presenting them with. Goldman Sachs role is to purchase the motel to be remodeled and to pay for some of the remodeling expenses. Goldman Sachs is asked to pay $150,000 toward this project. By supporting the opening of a second Samaritan Inn in Dallas, Goldman Sachs would gain great public relations from the public and show the community that they are here to make it better.

SAMARITAN INN EXPANSION IN DALLAS

PLAN
In order to help raise funds for the new Samaritan Inn, Goldman Sachs will be sponsoring two events, a Gala Dinner / Date Auction and a Bingo Night. Spreading the word for these events will be done through the use of corporate e-mail and personalized letters. Given the upscale nature of a Gala dinner, personalized letters will help incite wealthy individuals to contribute to the charity. Once the Gala dinner is well under way, the date auction will commence. Guests can participate in the date auction while having their dinner. Guests arriving for Bingo Night can come and go throughout the night as they choose. Both events are held on Thursdays to get guests to attend without disrupting their weekend plans.

Timetable
Monday, December 9th Thursday, December 19th Thursday, December 26th Monday, January 6th Friday, January 10th Monday, February 24th Monday, March 3rd Authorization Bingo Night Gala Dinner Purchase motel with down payment Renovation begins Move in Day Samaritan Inn begins setup Doors open for homeless

Event 1 Gala Night / Date Auction

5:00 PM 6:30 PM 7:00 PM 8:00 PM 8:45 PM 9:00 PM Staff arrives to set up Guests begin to arrive Dinner is served Date Auction begins Date Auction ends Dinner is over

Event 2 Bingo Night

6:00 PM 7:45 PM 12:00 AM Staff arrives to set up Bingo night begins Bingo night ends

SAMARITAN INN EXPANSION IN DALLAS

STAFFING
For this project ten Goldman Sachs volunteers will be required to oversee the project and thirty one to volunteer for the fundraising events. Habitat for Humanity and Samaritan Inn will have their own staff to do the remodeling of the motel and to take over operations once the building is functional. For the fund raising events we will be hiring an event coordinator, a caterer, and five security men that are part of the budget. To increase the amount of volunteers willing to help we will be offering an extra day off once a month to those who volunteer in that month.

Event Staff
Staff Event Coordinator Caterer Event Host Bingo Caller Bartender Security Waiter Valet TOTAL NUMBER OF STAFF Paid 1 1 Volunteer

2 1 6 5 20 2 31

Project Staff
Staff Habitat for Humanity Samaritan Inn Goldman Sachs TOTAL NUMBER OF STAFF Volunteer 10 15 10 35

SAMARITAN INN EXPANSION IN DALLAS

10

BUDGET
The estimated budget for this project is $300,000. Of the proposed amount, $150,000 will be funded by The Goldman Sachs Group, Inc. through donation & fundraising events, and the remainder shall be matched by our co-sponsors Frost Bank, Bank of Texas, and Bank of Whittier. The Goldman Sachs Group, Inc. will require an initial investment of $100,000 for the down payment on the motel and to arrange the fund raising events to acquire the additional $50,000. The housing that will be provided, located at 4505 Corregidor Street, Dallas, TX 75216, will be a motel of 18 rooms with plenty of office space. Habitat for Humanity will assume renovation responsibilities upon acquiring the property with the down payment. The first event, Gala Night / Date Auction, will be held at the banquet hall of Sheraton Hotel located in downtown Dallas. Tickets will be sold for $300.00 each at the entry point, exclusively to the invited officials and media reporters. Projected revenue of $40,000 is expected Ticket sales of $30,000 ($300 * 100), Bar Revenue $5,000, and Auction $5,000. The second event, Bingo Night, will be held at a banquet hall at the Double Tree Inn located in Dallas near Greenville Ave. and Northwest Hwy. Bingo play stubs will be sold for $10 each at this event; however, there will be no entry fee. Projected revenue of $10,000 is expected Bingo play stubs of $2,500, and Bar Revenue $7,500.

SAMARITAN INN EXPANSION IN DALLAS

11

BUDGET

CONTINUED

Housing
Motel Sofa Coffee Table Lamps Dining Table Chairs Desks Bed Blanket Pillow Bed Sheet Supplies Miscellaneous Grand Total Square Feet 4,498 Quantity 6 4 20 3 300 20 18 20 20 36 Cost / Square Feet ($) 55.00 Cost / Unit ($) 250.00 50.00 10.00 1,200.00 10.00 100.00 200.00 30.00 10.00 20.00 1,500.00 200.00 200.00 3,600.00 3,000.00 2,000.00 3,600.00 600.00 200.00 720.00 5,000.00 7,790.00 Total ($) 247,390.00

28,410.00
275,800.00

Event 1 Gala Night / Date Auction

Venue Banquet Hall Staff Event Coordinator Caterer Security Bartender Waiters Valets Miscellaneous Costs Multimedia Equip. Rent Invitation Cards Beverages Number of hours 4 Count 1 1 5 2 10 2 Count 100 200 Cost / Hour ($) 1,275.00 Cost / Hour ($) 10.00 *0 *0 *0 Cost / Unit ($) 2.50 10.00 200.00 250.00 2,000.00 2,450.00 2,000.00 3,000.00 300.00 *0.00 *0.00 *0.00 5,300.00 Total ($) 5,100.00

Grand Total * Volunteer

12,850.00

SAMARITAN INN EXPANSION IN DALLAS

12

BUDGET
Venue Banquet Hall Staff Bingo Caller Event Hosts Bartender Waiters

CONTINUED

Event 2 Bingo Night

Number of hours 6 Count 1 2 4 10 Count 300 500 6 Cost / Hour ($) 350.00 Cost / Hour ($) *0 *0 *0 *0 Cost / Unit ($) 500.00 2.50 10.00 500.00 750.00 5,000.00 3,000.00 9,250.00 11,350.00 *0.00 *0.00 *0.00 *0.00 0.00 Miscellaneous Costs Bingo Equipment and Supplies Invitation Cards Beverages Prizes Grand Total Total ($) 2,100.00

* Volunteer

SAMARITAN INN EXPANSION IN DALLAS

13

AUTHORIZATION REQUEST
We request funding of $100,000 be given for our project Samaritan Inn Expansion in Dallas. We ask that this money be made available December 9, 2013 to be given adequate time to implement our plan. This signed document gives approval for funding on December 9, 2013. Approval given by

Signature: ______________________

Date: ______/______/_______

Richard Siewert Jr. President of Public Relations The Goldman Sachs Group, Inc.

SAMARITAN INN EXPANSION IN DALLAS

14

REFERENCES
Bank of Texas. (2013). Website. Retrieved from https://www.bankoftexas.com/en/Other/Company_Profile.page Bank of Whittier. (2004). Website. Retrieved from https://www.bankofwhittier.com/about.htm Community Teamworks. (n.d.). Retrieved November 19, 2013, from http://www.goldmansachs.com/citizenship/community-teamworks/index.html Dallas Area Habitat for Humanity. (2013). Website. Retrieved from http://www.dallasareahabitat.org/web/guest/about Frost Bank. (n.d.). Website. Retrieved from https://www.frostbank.com/Pages/About-Frost.aspx Facts and Figures: The Homeless. (2009, June 26). Retrieved November 19, 2013, from PBS website: http://www.pbs.org/now/shows/526/homeless-facts.html Goldman Sachs Gives. (n.d.). Retrieved November 19, 2013, from http://www.goldmansachs.com/citizenship/goldman-sachs-gives/index.html Homeless Veterans. (2009, September). Retrieved November 19, 2013, from National Coalition for the Homeless website: http://www.nationalhomeless.org/ factsheets/veterans.html Hunger and Homelessness. (n.d.). Retrieved November 19, 2013, from http://www.studentsagainsthunger.org/page/hhp/overview-homelessness-america Roberts, D. (2013, April 9). US homeless numbers expected to rise as spending cuts deepen. Retrieved November 19, 2013, from The Guardian website: http://www.theguardian.com/world/2013/apr/09/usa-homeless-numbers-spending-cuts The Samaritan Inn. (2013). Website. Retrieved from http://thesamaritaninn.org/portals/0/pdfs/AnnualReports/2012Annual Report.pdf#page=1&zoom=75 The Samaritan Inn. (2013). Website. Retrieved from http://www.thesamaritaninn.org/ U.S. Foreign Aid By Country. (2012, August 30). Retrieved November 19, 2013, from Huffingtonpost website: http://www.huffingtonpost.com/2012/08/30/ us-foreign-aid-by-country_n_1837824.html Rosales, C. (2013, November 6). Dallas County tally shows spike in chronic homelessness. The Dallas Morning News. Retrieved from http://www.dallasnews.com/news/ National Student Campaign Against Hunger and Homelessness. (Cadwell, I. 2013) Overview of Homelessness in America. Retrieved from http://www.studentsagainsthunger.org/ Texas Homeless Network (THN). (2013) FACE Homelessness: Texas Homeless Facts and Statistics. Retrieved from https://sites.google.com/a/facehomelessness.org/