Growing Stronger in Challening Times

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When Arizona announced cuts to providers of services, Mosaic in Arizona Executive Director Brenda Redel prepared T-shirts with 10 percent of the fabric removed for a rally at the capitol. Redel (right) is shown with Alicia Sharma.

The economic recession has created challenges to Mosaic and other disability service providers as states try to balance budgets by reducing Medicaid responsibilities, the major funding source for Mosaic. But a quick response that focused on three areas -- efficiencies, expansion, and donor growth -- will ensure that Mosaic remains strong.

"Mosaic is financially strong and we are taking the actions necessary to stay strong," said Linda Timmons, Mosaic President and CEO. "Good decisions made in the past, combined with generous donor support and estate gifts, have helped place us in a strong position to weather this storm. Our ministry will not only survive these challenging times, but will come out stronger."

Creating efficiencies

To create efficiencies and trim expenses, Mosaic began making changes at the beginning of 2009. On the national level, Mosaic restructured regions, eliminated open positions, reduced some employee benefits, froze salaries for senior leadership and made many additional changes. Together these changes trimmed more than $4 million in expenses for fiscal year 2010, which began July 1, 2009.

Mosaic agencies also have been working to cut expenses in ways that will not affect the quality of services. Staff costs make up about 70 per-cent of Mosaic's expenses. Agencies are finding creative ways to save money on those expenditures.

In Des Moines, Executive Director Carol Mau has administrative staff work shifts in homes to reduce overtime and no longer uses a cleaning service for the office. They've also been working to reduce staff coverage such as ending shifts earlier whenever possible. The staff response, Mau said, has been overwhelmingly positive.

"People are willing to do what needs to be done," she said. "It has created a whole sense that we're better for it. I think it has to do with Mosaic being a faith-based organization and that gives people something to grasp on to."

A positive outcome for Mosaic in Des Moines, Mau said, is a low turnover rate for employees. In 2009, that rate was 31 percent, the lowest it has been in years and well below the national average of 70 percent for organizations like Mosaic.

Growth opportunities

The second strategy to come through the recession stronger is to increase revenue through smart growth. In Nebraska, Mosaic's largest region, there are 11 new homes being built that will serve 66 people as part of the state's move to reduce the number of residents at a large, state-run institution.

"Growth in states where we already serve people helps gain cost efficiencies," according to Cindy Schroeder, Mosaic Chief Financial Officer.

Other Mosaic locations are considering growth options as well, and Mosaic is looking at partnerships that will increase strength and efficiencies with other providers who operate with the same values as Mosaic. The consolidation of Bethphage and Martin Luther Homes that created Mosaic is a good example of gaining efficiencies, she said. By joining together, more than $3 million in savings was realized.

Attracting new donors

Mosaic also continues to invite new donors and volunteers to share in its mission of service. Donors, foundation gifts, sponsorships, community fund-raising events, and volunteer advocates are all becoming more important to Mosaic's future success.

"Donors are critical," Schroeder said. "We are working to increase fund raising."

Across Mosaic, agency special events have helped increase the number of new donors to Mosaic. In Dallas, Mosaic recently held  its 13th Annual Heart & Soul Gala with more than 400 guests. Money from that event and other community fund raising has been redirected over the last few years from extras for clients to essentials for clients, according to Executive Director JoBeth Collier. Examples include things such as medical expenses, medications and therapies that are not covered by Medicaid.

Keith Schmode, Senior Vice President for Mission Advancement, called donors "a blessing," and said Mosaic has been sustained by the donors who have "made Mosaic part of their family" through estate gifts, life insurance, and other planned gifts. Through special events, a branding campaign, and other methods, he said, Mosaic has increased the number of first-time givers.

"We've been incredibly blessed by donors who believe in the mission and ministry of Mosaic and continue to give," Schmode said, "but we need to continue to grow our donor base."

Standing Strong, Looking Ahead

So that all employees are aware of the current challenges, Mosaic leadership created a "Standing Strong, Looking Ahead" initiative and has used all-staff meetings and printed materials to relay information. They also created an e-mail address for employees to submit cost-saving and growth ideas directly to senior national leadership. That mailbox has received dozens of ideas. Mau said such open communication is important.

"Knowledge is power," she said, "and people know and understand what is going on."

Relief will come slowly. Mosaic anticipates it will be 2013 before states begin to see budget relief that will translate to increased funding. Even then, the rate reductions will have established a new norm, and increases will never get funding back to pre-recession levels. But committed employees, creative work solutions, increased donor gifts and smart growth will ensure continued success so that forecast cuts will not threaten the quality of Mosaic services.

"In our history it is clear that hard work and God's blessing sustained this ministry through tough times," Timmons said. "I have no doubt the same will be true today."