New Avenues to Independence, Inc. Buckeye Industries Program

Proposal to the Cleveland Foundation September, 2010

Purpose of the Grant: Use this section to help explain the need in the community and the overall importance of this request to your organizations mission. What are the opportunities, assets, challenges, issues or needs that currently face your organization and/or the community? How was this focus determined and who was involved in that decision-making process? (5,000 word limit) Buckeye Industries, a business enterprise of New Avenues to Independence, represents the very heart of New Avenues’ mission of “providing opportunities for people with disabilities and special needs to become more independent and productive members of society by offering the highest quality support services and developing innovative and inclusive programs.” The overall goals of the Buckeye Industries program are to create wage-earning opportunities for individuals with disabilities, generate revenue to be reinvested into other critical programs and services provided by New Avenues, and positively impact the community and environment. In 2007, recognizing the changing economic environment and the challenges of the continuation of services for individuals with disabilities, New Avenues’ staff and Board members participated in a strategic planning process led by professional consultants. The consultants, after conducting an internal and external assessment of New Avenues, recommended that the organization convert its Day Services program which provided an array of activities, options, and opportunities to develop prevocational skills into a vocational services program that could provide structured vocational training, guidance, and support to individuals with disabilities, helping them secure wage-earning opportunities. Completed in 2008, the New Avenues’ Strategic Plan is a culmination of the process and is a comprehensive plan to address our business needs and carry out our mission. The primary focus of the Strategic Plan is growth through Buckeye Industries, whose business plan details profitable expansion. Since 2008, Buckeye Industries has grown to 3 locations, offering employment opportunities for individuals with disabilities through three distinct business tracts which provide the following services to employers in the Northeast Ohio region:

Document Destruction - the primary objective of this tract is to eventually leverage the Buckeye Industries program as a provider of secure document destruction services to businesses and government agencies. The program projects that this will be accomplished by progressively establishing a restricted access facility, compliant with requirements of the National Association of Information Destruction (NAID), and implementing necessary security policies and procedures. This segment began on a smaller scale in the Spring of 2008. We are currently developing this tract into a full-scale operation. We have installed an industrial shredding and baling machine, and the construction of a restricted access facility is near completion. These services will be conducted primarily at Buckeye Industries’ Madison facility. Janitorial Services - the primary objective of this tract is to establish Buckeye Industries as a provider of custodial help to businesses and government agencies. The program projects that this will be accomplished by selling progressively more comprehensive

1

cleaning services, and eventually light lawn maintenance, to local communities. This segment is currently negotiating a contract with its first area employer. The services will be provided at employers’ places of business within the communities. Outsourced Production Work - the primary objective of this tract is for Buckeye Industries to establish itself as a viable source of help for companies who have labor-intensive jobs that would be too expensive for them to perform on their premises with their employees. The program projects that this will be accomplished by obtaining sub-contracts for entry-level jobs to be completed by the program's participants. This segment currently has 1 on-going contract and partnered for another, 1 time only contract. This work will be conducted at Buckeye Industries’ Madison, Eastlake, and Cleveland facilities.

In an effort to secure additional wage-earning opportunities for participants, the program has also found a niche providing employment related to the sustainability of the environment. As an organization, New Avenues recognizes and values the responsible stewardship of all resources. New Avenues’ commitment to sustainability has resulted in the implementation of sustainability initiatives that help to protect the environment while reducing expenses. These initiatives presented New Avenues with a unique opportunity to provide wage-earning opportunities for individuals with disabilities. For example, in addition to program participants shredding and recycling confidential documents, participants also clean, crush, and recycle aluminum cans to earn a wage. For individuals with disabilities, learning structured work skills and collecting a wage provides a meaningful vocational experience, and the sustainability focused services provide New Avenues with the opportunity to reduce expenses, generate revenue, and positively impact the community and environment. Recently, Buckeye Industries has further developed these sustainability related business ventures by implementing a Styrofoam Recycling Program and initiating discussions of an outsourcing contract with a company that manufactures environmentally friendly cleaning products. Currently, the Buckeye Industries program provides structured vocational training and guidance to 75 individuals who participate in the program, 38 of whom are earning a wage through employment, and employs 16 staff to assist with job coaching and support as well as management of the program. Buckeye Industries has locations in Eastlake, Madison, and Cleveland. These communities have embraced Buckeye Industries and recognize the value and positive outcomes of providing individuals with disabilities employment opportunities. As Buckeye Industries continues to grow, a full-time Marketing & Sales Professional is necessary to meet these goals and maximize the number of individuals that can be employed through the program. New Avenues to Independence respectfully requests multi-year funding support from the Lake-Geauga Fund of the Cleveland Foundation in the amount of $40,000 per year for 3 years to fund the salary of a Marketing & Sales Professional position.

WHAT ARE THE ISSUES OR NEEDS THAT CURRENTLY FACE YOUR ORGANIZATION AND/OR COMMUNITY?

According to the U.S. Census Bureau, in Lake and Geauga counties, there are approximately 45,000 individuals with disabilities. Enduring the tough economic times is a challenge for everyone, but for individuals with disabilities and chronic health conditions such as

2

developmental disabilities, mental illness, autism, cerebral palsy, brain injury, and Down syndrome, it is especially difficult. Researchers agree that the employment rate for working-aged people with disabilities declined throughout the 1990s and is even lower now. According to a report released by The Bureau of Labor Statistics of the U.S. Department of Labor, the unemployment rate among individuals with disabilities reached 14.5% in August of 2010, a full 60% more than individuals with no disability (9%). The current unemployment rate in the state of Ohio is 10.4% which is higher than the national unemployment rate of 9.6%. It has become increasingly difficult for citizens of Ohio to find employment, and for individuals with disabilities whose employment rate is only 38% in Ohio according to the U.S. Census Bureau, this is especially true. Moreover, there are other factors impeding the ability of individuals with disabilities to find employment. According to an article published by CNN in March of 2009, job seekers are now applying for jobs once predominately held by individuals with disabilities because of the current economic crisis. Additionally, although changes in the composition of demographic and education groups within the working-aged population with disabilities cannot explain the dramatic decline in the employment rates of this group, it is possible that changes in the job market might offer such an explanation. For example, changes in the nature of work (substantive complexity, relational or interactive nature, autonomy/control, task scope, physical demands, and terms of employment) have, on average, made it more difficult for people with work limitations to compete with others. The lack of employment opportunities for individuals with disabilities is creating detrimental effects, as earning a wage has become more important than ever. Although individuals with disabilities receive support from Medicaid, individuals no longer receive assistance with critical, necessary items, such as non-prescription medications, supplements, and medical equipment. Often, individuals must forgo purchasing these items vital to their health and well-being because they have no means of paying for them. Reduced financial assistance combined with the challenge for individuals with disabilities to find employment impedes their ability to meet their basic needs. In addition to the issues facing individuals with disabilities, disability organizations, such as New Avenues, continue to face funding cuts on the Federal, State, and local levels. While New Avenues’ annual budget has remained relatively constant over each of the past five years, expenses have increased as revenue has decreased. For example, the reimbursement to nonprofits for services provided by the Ohio Department of Developmental Disabilities has resulted in a net loss for the past three years. These various cuts to budgets that support individuals with disabilities have created a funding gap, as reimbursement rates no longer cover all expenses associated with providing quality care. Buckeye Industries seeks to establish much-needed employment opportunities for individuals with disabilities. The program will provide training, guidance, and support and will be tailored to meet the specific needs of these individuals. Gaining employment through Buckeye Industries will provide individuals with disabilities the income necessary to support themselves and maintain their independence. Through the Buckeye Industries program, New Avenues has taken a proactive approach to generating revenue, contributing to the long-term sustainability of the organization.

3

OPPORTUNITIES

There are more than 100 private, non-profit human service agencies serving people with disabilities in the Northeast Ohio region. Presently, there are only 4 others that voluntarily provide the scope of services to children, adults, and seniors that New Avenues to Independence does. Research would suggest that none of these are intent upon significantly expanding their business prospects to include multiple vocational ventures and sites for their constituency. The development of services and products, specifically meant to be marketed and sold to the business community, is not a typical practice within the world of private non-profit organizations. Among those identified agencies that most closely match the size and organizational characteristics of New Avenues, only 2 are known to be actively involved in such activities. None are known to be building a concept that offers 3 distinct service streams to area employers while at the same time, providing employment to individuals with disabilities. These perspectives are especially true in Lake, Geauga, and Ashtabula counties in Northeast Ohio. For-profit companies, which provide services within the same 3 business tracts developed by Buckeye Industries, certainly exist. However, Buckeye Industries’ ventures are unique among these businesses in several ways: the nature of the worker group is such that close supervision will always be present, thus increasing/enhancing the quality control of all jobs performed, costs will be contained since the majority of the workers will be paid according to their individualized rate of productivity, and as an organization, New Avenues has a 55 year history of successful program start-ups that are noted for their attention to the details of the project and their consistent follow-up with all "customer" groups. Competitive Comparison In Northeast Ohio's counties of Lake and Geauga combined, there are 3 identified document destruction companies: 1 is a mobile unit, 1 is a subsidiary of a “parent” organization located in Columbus, and 1 serves companies from Ohio to the state of New York. This same geographic area is home to 1 janitorial service, 1 cleaning business that caters to private schools, and 1 that provides only pressure cleaning. Lake and Geauga counties combined have 3 other private, non-profit organizations that provide outsourced production work to local employers. There are no other nonprofit organizations in Northeast Ohio providing Styrofoam recycling. Document destruction, janitorial services, production work, and Styrofoam recycling are the areas to be targeted with this grant request. Industry Demand The Document Destruction (shredding) Industry has expanded rapidly in the past several years and growth is expected to continue. This growth has been driven by government regulations that force businesses to recognize the need to secure certain types of information. The concept of protecting the privacy of ordinary citizens is nothing new. The Social Security Act of 1934 made it illegal to disclose an individual's social security number. More recent legislative activity, such as the Health Insurance Portability and Accountability Act of 1996 (HIPPA), Economic Espionage Act of 1996, Gramm-Leach-Bliley Act of 1999, Fair Credit Reporting Act of 2001, Sarbanes-Oxley Act of 2002, and the Fair and Accurate Credit Transactions Act of

4

2003 (FACTA), has largely been due to the crime of "identity theft" and the concern for national security. Failure to comply with these laws can result in substantial penalties and fines. Every business and organization must ensure that private and confidential information is no longer disposed of in the trash. It must be destroyed using a reliable and timely process. Buckeye Industries' document destruction will address the needs of customers who seek to comply with these privacy laws and regulatory requirements to safeguard their confidential information and shield themselves from liability, while employing individuals with disabilities. The Janitorial Service industry has shown remarkable growth in the last few years. It has benefited from corporate downsizing and increased reliance of businesses to outsource cleaning services. Contracting private firms to perform this service has also become the best option for many businesses given the high turnover rate of employees in this business. According to the Building Service Contractors Association International (BSCAI), revenues for contract commercial and residential cleaning services are forecast to advance 4.5% annually to $66.8 billion in 2013. Gains will be driven by ongoing increases in both the number of households and the number of business establishments, coupled with growing availability and affordability of cleaning services.

Other characteristics of this growing industry: ● According to BSCAI, no companies truly dominate the industry. Rather, it is populated by more than 56,000 cleaning contractors, mostly small “mom and pop” operations. This figure includes about 16,800 commercial cleaning franchises and 2,100 residential cleaning franchises. ● This is a "low tech" business characterized by ease of entry. According to BSCAI, the recession that began in late 2007 has had no discernable short-term effect on cleaning services revenues; in fact, many companies reduced operating expenses by outsourcing cleaning services as the economy worsened. Production or manufacturing jobs in the United States have diminished dramatically with the advent of significant technological advancements in equipment and tools. The industrial field has nearly been replaced with “white collar” business that requires workers with advanced education and training. Nonetheless, there remain segments of many manufacturers’ businesses that depend upon manually-oriented, labor-intensive activities to complete, thus necessitating such jobs as collating, assembly, packaging, and salvaging. Styrofoam Recycling will provide a cost-effective means for businesses to actively recycle Styrofoam products, decreasing their environmental impact. Researchers have begun to identify the extent of the environmental damage caused by Styrofoam products being placed in landfills. According to National Geographic, polystyrene (Styrofoam) takes hundreds of years to decompose, and often makes its way into water sources. It is estimated that Styrofoam, by volume, makes up 30% of the nation’s landfills. Armed with these findings, New Avenues to Independence, Inc. believes that it has uncovered a business niche within the natural service area of its mission. The identified demand for document destruction, janitorial services, production jobs, and Styrofoam recycling has provided New Avenues the opportunity to enter the growing market in an effort to meet the employment needs of individuals with disabilities. The intent of the agency’s Business Plan is to further

5

expand its vocational services program within these four business tracts to market and sell to larger sized companies, increasing the number of employment opportunities offered to individuals. The addition of a Marketing & Sales Professional will assist Buckeye Industries with securing contracts with the larger sized companies, providing a higher volume of paper and Styrofoam for recycling and a greater need for janitorial services and production jobs.

ASSETS The individuals employed through Buckeye Industries represent a dedicated labor force. According to Crain’s Chicago Business, a three-year study at Washington Mutual Inc. found a turnover rate of 8% among people with developmental disabilities, compared with an overall rate of 45% in the general population. These individuals are hard-working and dedicated employees who take pride in their work. The strong employer loyalty demonstrated by individuals with disabilities reduces costs associated with turnover. For companies, employing individuals with disabilities can reduce expenses while also demonstrating to customers that the company values diversity. Buckeye Industries currently has 3 facilities located in Eastlake, Madison, and Cleveland. Buckeye Industries’ document destruction service, housed in Madison and Cleveland, recently received an industrial shredding machine at the Madison location providing the program the opportunity to contract with large companies for high volume shredding jobs. The large volume shredding machine will create additional employment opportunities as individuals will be hired to run the machine and shred large quantities of paper. The new machine also includes a baler. This baling capability affords Buckeye Industries the opportunity to sell the shredded paper to recycling companies, creating an additional revenue stream. Buckeye Industries’ Styrofoam Recycling Project has been made possible through a partnership with Gateway to Special Abilities, located in Iowa, which is an organization that helps create employment opportunities for individuals with disabilities in conjunction with services to business partners. Located in our Buckeye Industries Eastlake facility, Buckeye Industries’ Styrofoam Recycling Project employs individuals with disabilities to recycle Styrofoam for companies working with Gateway to Special Abilities. The first 4 individuals with disabilities currently employed with the program sort pieces of Styrofoam, remove contaminates (such as stickers or staples), and assist with moving the Styrofoam to a machine that processes and condenses the material into “brick”-like forms. These bricks are then sold to manufacturing companies to create products such as baseboards, crown molding, lightweight concrete, and packaging material. The Styrofoam is transported to Buckeye Industries, Eastlake in large cardboard boxes. Buckeye Industries is currently in the process of purchasing a cardboard baler giving the program the opportunity to bale and recycle the cardboard to be sold to a recycling center generating additional revenue and increasing the number of individuals employed. Throughout the past 56 years of operation, New Avenues has been able to grow and adapt as necessary to meet the changing needs of individuals with disabilities. New Avenues prides itself on the organization’s sound reputation of providing quality services to all individuals served. A dedicated, passionate Board of Directors and administrative staff hold New Avenues to the highest standards possible resulting in the continuous advancement of New Avenues’ mission. Strong leadership and strategic planning have given New Avenues a solid foundation, creating

6

resiliency within the organization to forge ahead and implement programs and services with a consistent focus on independence for individuals with disabilities.

CHALLENGES As Buckeye Industries grows and begins to implement new services, the focal points for expansion are in Lake, Geauga, and Ashtabula counties. Within these counties, Buckeye Industries will offer employment opportunities in document destruction, janitorial services, production work, and Styrofoam recycling. As Buckeye Industries expands these business ventures throughout Northeast Ohio, the experience and expertise of a Marketing & Sales Professional will play a critical role in securing partnerships with local companies. Currently, New Avenues does not have the full capacity or capability to procure partnerships with large sized area employers. Marketing and selling business services to companies in an effort to generate revenue requires an expertise not typically found within nonprofit organizations. A Marketing & Sales Professional with related employment experience is necessary to assist the Vocational Services Team in the procurement of large scale partnerships with area employers. Specific job duties will include:

Market the agency’s work services to prospective employers in Lake, Geauga, and Ashtabula counties.

Develop and execute a sales plan intended to secure additional contracts with local companies for the services provided by Buckeye Industries.

Procure employment-related opportunities for individuals with disabilities by developing, creating or “carving out” both facility-based and community-based work for adults with disabilities by networking with employment contacts, reviewing postings, business publications, conducting “cold calls”, attending job fairs, expanding opportunities with existing employers, etc.

Form, nurture, and maintain productive relationships with employers. May provide input to Habilitation Managers and/or Habilitation Specialists in setting

short and long-term objectives and goals for individuals in the program. Develop and conduct time, motion, and feasibility studies relative to work obtained;

prepare quality control standards, workplace layout, work flow, inventory control, etc. for all jobs.

Maintain all records necessary for performance of employer work contracts; assist in preparation of production reports for government agencies and private industries as specified in contracts and according to deadlines; assist in documenting services provided in compliance with agency policies and procedures, funding source requirements, and standards of applicable regulatory agencies.

Assist in preparing status reports and projections on employer contracted income and expenses; assist in developing annual sales projections and updates based upon industrial data and customer information; assist in developing burden costs, job costs, and individual’s rates of pay.

7

Program Design/Activities: Tell us the specific activities you will undertake to achieve your proposed outcomes. What is your timeline and work plan for the project? Who will be involved and carry out these activities? How will these strategies benefit the community and help you meet your goals? What are the long term strategies for sustaining and/or funding this effort? (5,000 words maximum) The overall goals of the Buckeye Industries program include maximizing the amount of individuals with disabilities that are employed through the business ventures, generating revenue to sustain New Avenues’ programs and services, and positively impacting the environment. A full-time Marketing & Sales Professional is necessary to help Buckeye Industries reach these goals. Integrating this position into the work plan below and creating specific outcomes, activities, and timelines will ensure success of the program.

WORK PLAN

The following is the Work Plan for the first full year of operation for Buckeye Industries: Outcome 1: Buckeye Industries will establish a profitable document destruction business tract Activities: Select, order, and install industrial shredding machine – completed 9/2010 Construct restricted access facility – completed 9/2010 Marketing & Sales Professional recruited/hired Marketing plan developed Sales strategies developed Large-sized, high volume shredding jobs solicited Secure at least 2 contracts providing consistent work Staff Responsible: Marketing & Sales Professional, Marketing Consultant, Vocational Services Director, Chief Financial Officer, Executive Director Timeline: by 6/30/11 Outcome 2: Buckeye Industries will establish a profitable Styrofoam recycling business tract Activities: Secure new facility – completed 9/2010 Install industrial equipment – completed 9/2010 Project Manager & Production Assistant recruited/hired – completed 9/2010 Marketing & Sales Professional recruited/hired Marketing plan developed Sales strategies developed Production start-up Secure at least 2 contracts with companies providing consistent work Staff Responsible: Marketing & Sales Professional, Marketing Consultant, Vocational Services Director, Project Manager, Chief Financial Officer, Executive Director Timeline: by 1/31/11

8

Outcome 3: Buckeye Industries will establish a profitable janitorial services business tract Activities: Marketing & Sales Professional recruited/hired Marketing plan developed Sales strategies developed Secure at least 1 contract with a company providing consistent work Staff Responsible: Marketing & Sales Professional, Marketing Consultant, Vocational Services Director, Custodial Trainer, Chief Financial Officer, Executive Director Timeline: by 2/15/11 Outcome 4: Buckeye Industries will establish a profitable outsourced production business tract Activities: Marketing & Sales Professional recruited/hired Marketing plan developed Sales strategies developed Secure at least 2 contracts with companies providing consistent work Staff Responsible: Marketing & Sales Professional, Marketing Consultant, Vocational Services Director, Chief Financial Officer, Executive Director Timeline: by 1/31/11 Outcome 5: Buckeye Industries will provide wage-earning, work-related opportunities, in the area of document destruction, to at least 20 individuals between 11/1/10 and 7/31/11. Activities: Recruitment plan for individuals with disabilities Individuals interviewed for their interest and abilities Individuals entered into work or placed on waiting list to await work opening Staff Responsible: Marketing & Sales Professional, Project Manager, Vocational Services Director Timeline: by 7/31/11 Outcome 6: Buckeye Industries will provide wage-earning, work-related opportunities in the area of Styrofoam recycling to at least 6 individuals between 11/1/10 and 7/31/10. Activities: Recruitment plan for individuals with disabilities Individuals interviewed for their interest and abilities Individuals entered into work or placed on waiting list to await work opening

9

Staff Responsible: Marketing & Sales Professional, Project Manager, Vocational Services Director Timeline: by 7/31/11 Outcome 7: Buckeye Industries will provide wage-earning, work-related opportunities, in the area of janitorial services, to at least 8 individuals between 11/1/10 and 7/31/11. Activities: Recruitment plan for individuals with disabilities Individuals interviewed for their interest and abilities Individuals entered into work or placed on waiting list to await work opening Staff Responsible: Marketing & Sales Professional, Project Manager, Vocational Services Director Timeline: by 7/31/11 Outcome 8: Buckeye Industries will provide work-related opportunities, in the area of outsourced production work, to at least 15 individuals between 11/1/10 and 7/31/11. Activities: Recruitment plan for individuals with disabilities Individuals interviewed for their interest and abilities Individuals entered into work or placed on waiting list to await work opening Staff Responsible: Marketing & Sales Professional, Project Manager, Vocational Services Director Timeline: by 7/31/11 Outcome 9: Buckeye Industries will positively impact the environment Activities: Install baler for shredded paper – completed 9/2010 Secure contract with recycling company to purchase baled paper Install Styrofoam recycling equipment – completed 9/2010 Secure contract with company to purchase condensed Styrofoam – completed 9/2010 Install baler for cardboard Secure contract with recycling company to purchase baled cardboard Implement aluminum can recycling at Eastlake Secure contract with recycling company to purchase aluminum Staff Responsible: Marketing & Sales Professional, Project Manager, Vocational Services Director Timeline: by 1/31/11

10

It is the intent of Buckeye Industries to maximize the number of employment opportunities offered to individuals with disabilities. The expertise of a Marketing & Sales Professional will play a critical role in ensuring that Buckeye Industries can offer wage-earning opportunities to individuals in an effective, efficient manner, with incremental increases in the number of individuals employed. With the assistance of the Marketing & Sales Professional, Buckeye Industries projects that by the end of Year 3 of operation, it will be serving at least 90 individuals per year. Year 1 is expected to see the recruitment of at least 49 individuals, and a growth to 65 individuals is expected during Year 2. In addition, Year 3 of operation should see at least 15 companies engaged in one or more of the service tracts offered by Buckeye Industries. Projections are that this number will reach 5 by Year 1 and grow to 12 by Year 2.

WHO WILL BE INVOLVED AND CARRY OUT THESE ACTIVITIES? Vocational Services Director: The Vocational Services Director oversees all operations/aspects of the Buckeye Industries program (including customer relations and actual work production) and staff employed with the 4 business tracts. Chief Financial Officer: The Chief Financial Officer oversees all financial aspects of Buckeye Industries, providing monthly assessments of budgetary goals, and approving all major expenses associated with the program. Community Relations Director: The Community Relations Director assists with marketing Buckeye Industries in the communities served by New Avenues through publications, press releases, advertisements, and community events. Project Managers: The Project Managers monitor the daily operations of each business tract and provide monthly output results to the Vocational Services Director based on pre-determined production and programmatic goals. Marketing Consultant: In 2010, New Avenues received $20,000 from the William J. and Dorothy K. O’Neill Foundation to be used for marketing the services of Buckeye Industries to local companies. Buckeye Industries has contracted with Shirley MacFarland from Marketing 501 to create a marketing plan and materials. In addition, the grant from the O’Neill Foundation has also given Buckeye Industries the opportunity to create a new website. The website is being designed by WorkSmart e-Marketing. Vocational Services Team: Monthly Buckeye Industries Vocational Services Team meetings are held with the Executive Director, Vocational Services Director, Community Relations Director, Chief Financial Officer and/or Controller to evaluate Buckeye Industries’ success in each service area and make modifications as necessary. Marketing & Sales Professional: The Marketing & Sales Professional will be responsible for all marketing and sales activities for Buckeye Industries. In conjunction with employing our own Marketing & Sales Professional, Buckeye Industries

11

will be utilizing two experienced organizations that were formed specifically to assist non-profit organizations which serve/employ persons with disabilities in the marketing and sales of their services to potential business customers: “Possitivity” For over 30 years, Possitivity has been helping its state governmental customers and nonprofit organizations in Ohio succeed with valuable and cost-effective business solutions. These activities serve to advance its mission of creating jobs for individuals with disabilities, while providing an exceptional service at a substantially lower cost. In essence, a business relationship with Possitivity will cost Buckeye Industries nothing – the business customer pays for their services through acceptance of a job bid which will also include all Buckeye Industries’ costs. Possitivity has already committed to assisting Buckeye Industries. “NISH”

Established in 1974, NISH is a national nonprofit agency whose mission is to create employment opportunities for people with severe disabilities by securing Federal contracts through the AbilityOne Program for its network of community-based, nonprofit agencies. NISH supports a combined network of more than 2,100 non-profit agencies and Federal customers across the country by providing the legislative and regulatory assistance, communications and public relations materials, information technology support, engineering and technical assistance, and extensive professional training needed for successful contract management. New Avenues/Buckeye Industries is a member of NISH and as such, is eligible to become the recipient of federal contracts procured by NISH. As long as annual membership is maintained, and Buckeye Industries develops the necessary physical resources needed to perform the industrial tracts that it plans, it can call upon NISH for its services and for its entree into federal contracts.

HOW WILL THESE STRATEGIES BENEFIT THE COMMUNITY AND HELP YOU MEET YOUR GOALS?

The potential impact of the expansion of Buckeye Industries over a three-year period includes:

The four-pronged venture will become profitable in its third year of expansion. Work opportunities will be secured for at least 90 individuals per year with

disabilities. Individuals with disabilities will benefit from the wages earned in their particular

work situations and the purchasing power that they gain from this income. Community employers will benefit from the products and/or services that they

acquire at fair and reasonable prices from the program. These partnerships will fill a void in the business life of employers who may be downsizing their labor force due to the existing economic conditions.

The community-at-large will benefit as it can welcome a new group of residents to the ranks of tax-payers.

An additional source of revenue will be created to sustain the critical programs and

12

The mission of New Avenues will further advance by providing greater independence for individuals with disabilities through gainful employment

WHAT ARE THE LONG TERM STRATEGIES FOR SUSTAINING AND/OR FUNDING THIS EFFORT?

Buckeye Industries is designed to become self-sustaining. In addition, the long-term goal of the program is to produce revenue that can be reinvested into other programs and services provided to individuals with disabilities by New Avenues. The Marketing & Sales Professional will play an essential role in ensuring that Buckeye Industries is able to reach targeted outcomes for each service and generate the revenue necessary to sustain the Marketing & Sales Professional position and the program. New Avenues to Independence utilizes tactical plans as a measure of performance and to benchmark progress towards specific, identified goals. Tactical plans are created for each department every year and consist of goals for each employee, including specific tactics for each goal and action steps that must be completed within an identified time frame to meet each goal. All New Avenues employees are held accountable for completing the action steps identified in the tactical plan and achieving all identified goals. Upon hiring the Marketing & Sales Professional, he or she will receive a 90 day evaluation, 6 month evaluation, and year end evaluation. The evaluations will include progress towards goals identified in the tactical plan. Since the position is new, there may be changes and/or adjustments to the tactical plan at the discretion of the Vocational Services Director and Executive Director. Below is the year 1 tactical plan developed for the Marketing & Sales Professional position: Goal 1: Approach companies about potential partnerships with Buckeye Industries: Tactic #1: Create a database of customers to approach for potential partnerships with Buckeye Industries Action Steps: 1. Research companies in Northeast Ohio and create a database of potential

customers for each business tract 2. Increase database by a minimum of 20 contacts per month

Tactic #2: Make cold calls to companies marketing Buckeye Industries’ services Action Steps: 1. Contact a minimum of 4 companies about document destruction services per

month 2. Contact a minimum of 2 companies about janitorial services per month 3. Contact a minimum of 4 companies about Styrofoam recycling services per

month 4. Contact a minimum of 2 companies about cardboard recycling per month

5. Contact a minimum of 2 companies about outsourced production work per month

13

Tactic #3: Schedule and attend appointments with companies that are highly qualified prospects and a contract can potentially be delivered Action Steps: 1. Meet with a minimum of 2 companies about document destruction services per

month 2. Meet with a minimum of 1 company about janitorial services per month

3. Meet with a minimum of 2 companies about Styrofoam recycling services per month

4. Meet with a minimum of 1 company about cardboard recycling per month 5. Meet with a minimum of 1 company about outsourced production work per

month Goal 2: Provide community outreach to develop interest among companies to partner with Buckeye Industries Tactic #1: *Implement Buckeye Industries’ Marketing Plan Action Steps: 1. Distribute a minimum of 4 press releases per year

2. Attend community gatherings such as Chambers of Commerce meetings, Kiwanis, merchants’meetings, etc. a minimum of 1 per month

Goal 3: Secure contracts from new companies Tactic #1: Close on agreements with companies Action Steps: 1. Secure a minimum of 6 document destruction contracts, generating a minimum

revenue of $21,580 in year one 2. Secure a minimum of 4 janitorial services contracts, generating a minimum revenue of $10,820 in year one 3. Secure a minimum of 6 companies for Styrofoam processing contracts, generating a minimum revenue of $16,880 in year one 4. Secure a minimum of 2 companies for cardboard recycling contracts, generating a minimum revenue of $2,000 in year one 5. Secure a minimum of 2 companies for outsourced production work contracts, generating a minimum revenue of $10,000 in year one

Tactic #2: Establish customer referral program Action Steps: 1. Create incentives for referrals

2. Monitor relationships with customers and select customers to target for referrals 3. Recruit a minimum of 2 customers for referrals 4. Educate these individuals on Buckeye Industries and assist them as necessary with recruitment

Goal 4: Customer retention and growth Tactic #1: Ensure customer satisfaction Action Steps: 1. Develop a customer satisfaction survey

2. Distribute the satisfaction survey to customers 6 months after a contract is negotiated, then on a yearly basis 3. Make visits to each customer quarterly after a contract is negotiated to ensure their satisfaction with Buckeye Industries’ services

14

*Buckeye Industries’ Marketing Plan is currently being created by Shirley MacFarland of Marketing 501. The development of the plan is being funded through a grant from the William J. and Dorothy K. O’Neill Foundation. Once the plan is complete, additional goals, tactics, and action steps will be established for the Marketing & Sales Professional to ensure the successful implementation of the plan. Project Impact: Outcomes and Evaluations: What do you want to accomplish? What will happen as a result of your program? What impact do you hope to have on the community? How will you measure success? Who will be involved in evaluating this work (staff, board, constituents, community, consultants)? What will you do with the results of your evaluation? (5,000 word limit)

OUTCOMES AND EVALUATIONS Outcome 1: Buckeye Industries will establish a profitable document destruction business tract Evaluation Criteria:

Document destruction for high volume shredding jobs will begin by November, 2010 The service will achieve a financial “break even” point by its 7th month of operation The service will gain a level of profitability by its 11th month of operation

Outcome 2: Buckeye Industries will establish a profitable Styrofoam Recycling business tract Evaluation Criteria:

Styrofoam recycling provided to companies will begin by September, 2010 The service will achieve a financial “break even” point by its 8th month of operation The service will gain a level of profitability by its 12th month of operation

Outcome3: Buckeye Industries will establish a profitable janitorial business tract Evaluation Criteria:

Janitorial services provided to companies will begin by February, 2011 The service will achieve a financial “break even” point by its 6th month of operation The service will gain a level of profitability by its 9th month of operation

Outcome 4: Buckeye Industries will establish a profitable outsourced production business tract Evaluation Criteria:

● Subcontracted production provided to companies will begin by January, 2011 ● The service will achieve a financial “break even” point by its 24th month of operation ● The service will gain a level of profitability by its 30th month of operation

Outcome 5: Buckeye Industries will provide work-related opportunities, in the field of document destruction, to approximately 35 individuals annually, by year 3 Evaluation Criteria:

● Provide employment opportunities to 35 individuals annually for this tract ● Retain at least 16 individuals (80%) throughout each year ● Assist 2 individuals per year to move on to progressively more challenging work pursuits

15

Outcome 6: Buckeye Industries will provide work-related opportunities, in the field of Styrofoam recycling, to approximately 15 individuals annually, by year 3 Evaluation Criteria:

Provide employment opportunities to 15 individuals annually for this tract Retain at least 12 individuals (80%) throughout each year Assist 2 individuals per year to move on to progressively more challenging work pursuits

Outcome 7: Buckeye Industries will provide work-related opportunities, in the field of janitorial services, to approximately 20 individuals annually, by year 3 Evaluation Criteria:

Provide employment opportunities to 20 individuals annually for this tract Retain at least 16 individuals (80%) throughout each year Assist 2 individuals per year to move on to progressively more challenging work pursuits

Outcome 8: Buckeye Industries will provide work-related opportunities, in the field of outsourced production work, to approximately 20 individuals annually, by year 3 Evaluation Criteria:

Provide employment opportunities to 20 individuals annually for this tract Retain at least 16 individuals (80%) throughout each year Assist 2 individuals per year to move on to progressively more challenging work pursuits

Outcome 9: Buckeye Industries will positively impact the environment Evaluation Criteria:

Recycle a minimum of 500,000 pounds of paper by month 12 Recycle a minimum of 150,000 pounds of Styrofoam by month 12 Recycle a minimum of 15,000 pounds of cardboard by month 12 Recycle a minimum of 250 pounds of aluminum cans by month 12

WHAT WILL HAPPEN AS A RESULT OF YOUR PROGRAM? The knowledge and expertise of the Marketing & Sales Professional will give Buckeye Industries the ability to professionally market and sell the services offered through the business enterprise to local companies, creating additional partnerships and employment opportunities. As a result, Buckeye Industries can expand its services, giving the program the capacity to provide additional wage earning opportunities for individuals with disabilities, providing these individuals with an increased level of independence and affording them the ability to meet their basic needs. Buckeye Industries will also give individuals with disabilities the ability to more actively participate in their communities by affording them purchasing power to shop locally. In addition, Buckeye Industries will help New Avenues sustain the critical programs and services provided to over 550 individuals with disabilities that the agency serves each year in 6 counties throughout Northeast Ohio. Revenue generated through the program will be reinvested into the organization to cover the funding gap that exists between the actual cost of providing services and the Medicaid reimbursement rate. The Buckeye Industries program is New Avenues’

16

proactive approach to helping ensure that the organization can meet the needs of individuals with disabilities for years to come. Buckeye Industries will have a positive impact on the community and environment. The sustainability efforts will result in a reduction of waste to area landfills. The program also raises awareness and promotes further recycling efforts.

WHAT IMPACT DO YOU HOPE TO HAVE ON THE COMMUNITY?

Buckeye Industries will create much-needed jobs in Northeast Ohio. The document destruction, Styrofoam recycling, janitorial, and production services are anticipated to employ a minimum of 90 individuals with disabilities after the third year of operation. Buckeye Industries will also hire staff to assist with job coaching and support as well as management positions. It is anticipated that by the third year of operation, Buckeye Industries will employ a minimum of 30 staff members in these roles. In addition to improving employment rates, Buckeye Industries promotes community inclusion, giving individuals with disabilities the opportunity to demonstrate their skills and abilities within their communities. Employment through Buckeye Industries will give individuals a sense of pride and accomplishment and will aid local companies in recognizing the value of working with individuals with disabilities. Establishing additional tax paying citizens will positively impact the economy. It is anticipated that much of the wages earned through Buckeye Industries will be spent within the local communities where the individuals live and work. This will help to increase sales and revenue for the local businesses that have been facing financial difficulty due to the downturn of the economy. For area companies, Buckeye Industries offers valuable, cost-effective services. In addition, the program presents companies the opportunity to implement sustainability initiatives to help protect the environment. These sustainability initiatives are appealing to companies, providing the opportunity to gain a competitive advantage by differentiating their company as being “green”, improve efficiency and potentially lower operating costs, provide a cleaner and healthier work environment, and set a positive example for employees which boosts morale and company loyalty. Providing companies with a low cost, reliable means to recycle will positively impact all communities as it ultimately decreases the amount of trash taken to landfills.

HOW WILL YOU MEASURE SUCCESS? The overall goals of the Buckeye Industries program are to create wage-earning opportunities for individuals with disabilities, generate revenue to be reinvested into other critical programs and services provided by New Avenues, and positively impact the community environment. The success of Buckeye Industries will be measured by the program’s ability to reach these goals by meeting each of the identified outcomes as stated in the Work Plan, furthering the mission of New Avenues. Success will also be achieved and measured through the retention and satisfaction of the individuals employed in the program. Buckeye Industries not only wants to provide

17

employment, but also high job satisfaction to those employed. Employee satisfaction will be determined through interviews given to the individuals participating in the program by a Buckeye Industries staff member. The results of the interviews will be reviewed by the Vocational Services Director who will then share the results with staff and make any changes necessary to the project based on the results. Yearly performance reviews will also be conducted to acknowledge each participant’s progress and provide individualized guidance and support. Establishing quality relationships with the companies partnering with Buckeye Industries is also a critical component to the success of the program. Repeat business will be important for Buckeye Industries. The program intends on securing partnerships with companies needing service for years to come. Companies that are satisfied with the services provided by Buckeye Industries will consistently utilize the program’s services and will share the positive experience with other local companies resulting in referrals. For this reason, Buckeye Industries must ensure that companies are satisfied with the services provided. The Marketing & Sales Professional will track new business acquisition and follow up with companies partnering with Buckeye Industries on a consistent basis to measure company satisfaction. This information will be provided to the Vocational Services Director who will respond to the feedback.

WHO WILL BE INVOLVED IN EVALUATING THIS WORK? New Avenues’ Board of Directors are committed to the success of Buckeye Industries. The Board of Directors meets monthly and will review the output results, financial reports, and quarterly progress towards meeting objectives as outlined in the Work Plan for Buckeye Industries. The Finance Committee of the Board will also provide monthly review of Buckeye Industries’ financials. A "Management Team" has been developed to ensure the success of Buckeye Industries: Executive Director: will monitor the business through reports from the Vocational Services Director and New Avenues’ Fiscal Services Department. Chief Financial Officer (CFO) and/or Controller: will monitor all financial aspects of the program, including monthly profit/loss statements, and the pricing structure for jobs being bid. Vocational Services Director: will oversee all operations/aspects (including customer relations and actual work production) and staff employed with the 4 business tracts, and will report out to the Business Advisory Council and the Executive Director – under the direction of the Executive Director, may also report out to the Board of Directors. Vocational Services Team: will serve as an internal consulting team to the Vocational Services Director and the core membership is comprised of the Executive Director, CFO and/or Controller, and the Community Relations Director. The group will meet at least bi-weekly. Business Advisory Council: will be comprised of business owners from the Lake/Geauga/Ashtabula counties area. They will meet quarterly to provide guidance/recommendations to the Vocational Services Director regarding all aspects of Buckeye Industries.

18

WHAT WILL YOU DO WITH THE RESULTS OF YOUR EVALUATION? Buckeye Industries’ progress towards the outcomes identified in the Work Plan will be evaluated monthly by the Vocational Services Team and Board of Directors to ensure the program is meeting its intended outcomes. The Vocational Services Team will be responsible for identifying any aspects of the program in need of modification in order to continue progress towards outcomes. Once identified, revisions and changes will be made to the Work Plan and necessary adjustments will take place within the program on a monthly basis. On-going and consistent evaluation is essential for Buckeye Industries. Each business tract and specific component will be evaluated according to the Work Plan, ensuring the program is advancing New Avenues’ mission of promoting independence for individuals with disabilities.

19

BUDGET NARRATIVE: Discuss the overall budget, including the status of other funding sources. Specifically answer: How will the Cleveland Foundation dollars be used? Please provide details on each line item you are requesting funding for. The Buckeye Industries Budget is a projection of the financials for Year 1 and includes all 4 business tracts. Income from government contracts represents the Federal, State, and County reimbursements to Buckeye Industries for providing vocational services to individuals with disabilities. The fees/earned income is the revenue generated from providing services through the 4 business tracts.

New Avenues is requesting a multi-year funding grant of $40,000 per year for 3 years from the Lake-Geauga Fund of the Cleveland Foundation to fund the salary of a Marketing & Sales Professional for Buckeye Industries. New Avenues' Board of Directors has approved the allocation of $10,000 to be used to pay the benefits of the Marketing & Sales Professional position.

New Avenues has requested $23,100 per year for 5 years from The Enterline Foundation to fund the industrial shredding machine located at Buckeye Industries, Madison. The Enterline Foundation has provided financial support to New Avenues for the past 4 years. In addition, New Avenues has requested $25,000 from the Wal-Mart Foundation to fund the partial salary of the Project Manager for the Styrofoam Recycling project and $10,000 from the Attorney General's Community Small Grants Program to fund supplies and equipment for the Styrofoam Recycling project. All of these requests are currently pending.

New Avenues' Board of Directors is committed to the Buckeye Industries program, and has approved New Avenues to utilize other resources to cover the financial loss projected for Buckeye Industries during Year 1.

20

21

Buckeye Industries Budget

Date range: 01/01/2011 to 12/31/2011

Income Project Income

Anticipated Committed

Government Grants $10,000.00 $0.00

Foundations (Other) $48,100.00 $0.00

The Cleveland Foundation $40,000.00 $0.00

Corporations $0.00 $0.00

United Way or other federated campaigns

$0.00 $0.00

Individual contributions $0.00 $0.00

Fundraising events and products $0.00 $0.00

Membership income $0.00 $0.00

In-kind support $0.00 $0.00

Endowed income $0.00 $0.00

Government contracts $0.00 $367,957.00

Fees / Earned income $0.00 $60,460.00

Other $0.00 $0.00

Totals 98,100.00 $428,417.00

Expense Project Expenses

Cleveland Foundation Request

Other Funding

Salaries and wages $40,000.00 $276,394.00

Benefits and Payroll Taxes $0.00 $62,759.00

Consultants and professional services

$0.00 $1,944.00

Travel $0.00 $0.00

Equipment $0.00 $23,600.00

Office Supplies/Materials $0.00 $12,395.00

Printing $0.00 $0.00

Utilities $0.00 $11,619.00

Postage and mailing $0.00 $0.00

Rent / Occupancy $0.00 $75,285.00

Building maintenance $0.00 $9,907.00

Depreciation $0.00 $14,579.00

Marketing $0.00 $0.00

Indirect expenses $0.00 $6,812.00

Other $0.00 $1,200.00

Totals 40,000.00 $496,494.00