Question

The Central American Refugee Center (CARECEN) was founded in 1983 and provides legal services, community education and advocacy to thousands of immigrants on Long Island each year. CARECEN’s staff currently numbers 26, with an additional seven positions to be filled during FY23. Most of its staff work predominantly in one of two areas, either legal or Community programs (ESOL, Community Education, Job coaching, etc).

Since 2020, under new leadership, CARECEN’s staff has increased by 371% and its revenue has grown by 193%. CARECEN has also invested in building out the organization’s operations, administrative and finance capacity in addition to expanding programs. The expansion in non-program staff necessitates an increase in general operating funds to cover these costs.

The majority of CARECEN’s funds come from state grants, which are largely designated for specific program costs, with additional revenue coming in from foundations/donors and low bono legal services. In FY22, CARECEN’s low bono legal team, staffed by 1.5 FTEs, generated approximately $137,000 in revenue. CARECEN recognizes this program’s potential for revenue generation that can sustain the low bono program, while also providing much needed funds to support CARECEN’s operations. To that end, CARECEN plans to hire a FT supervising paralegal for the low bono program in mid-2023. In addition to providing necessary supervision and training for program staff, this supervising paralegal will be able to take on more complex cases that will also increase program revenue. Program costs for the first year of this expanded program are estimated at $192,000 for 2.5 FTEs.

CARECEN’s eight-person board of directors come from a variety of professional and ethnic backgrounds, reflecting the diversity within the organization itself. While all dedicated to CARECEN’s mission, the board does not have a culture of giving and lacks the tools and skills necessary to be effective fundraisers for the organization. CARECEN’s board is committed to continued expansion, but board members struggle to identify strong additional board member candidates.

With the expectation that demand for services will increase in the years ahead CARECEN needs to revisit it’s structure and position itself to be ready to meet those demands.

CARECEN needs your advice on all or any of the following to facilitate effective future operations:

Should it develop a fund-raising strategy to fund future initiatives and what should it look like?

Answer 1

CARECEN should develop a fund-raising strategy and focus on building a culture of giving within the board of directors. Additionally, CARECEN can generate revenue through its low bono legal services program.

Step-by-step explanation:

CARECEN should develop a fund-raising strategy to fund future initiatives. The strategy should focus on building a culture of giving within the board of directors and equipping them with the necessary tools and skills to be effective fundraisers for the organization. This can be done through training sessions, workshops, and mentorship programs.

The fund-raising strategy should also include diversifying the organization's funding sources. While state grants are an important source of funds, CARECEN should also explore other avenues such as corporate sponsorships, individual donors, and partnerships with other organizations.

CARECEN should also consider leveraging its low bono legal services program to generate revenue. Hiring a full-time supervising paralegal for the program and allowing them to take on more complex cases can increase program revenue, which can be used to support the organization's operations.