Looking for an emergency shelter business plan? You're in the right place.
A shelter or transitional housing program has to answer questions a for-profit plan never faces. Who pays for each bed? How much of the money is restricted to one purpose? What happens to the payroll when the house is only 70% full, or when a county invoice sits unpaid for seven weeks? A blank template won't show what a sensible answer looks like.
In this article we'll walk through a complete sample business plan for a women's transitional housing nonprofit in Pittsburgh, Pennsylvania, section by section. We'll cover the executive summary, the SWOT analysis and, in particular, all of the financials.
Here's what you'll take away:
- The executive summary: see how to describe a program, its funders and its gap in a page a board member or grant reviewer can follow
- The funding mix: learn how a per-bed-night contract, restricted grants and unrestricted gifts fit together, and how much of each a plan can lean on
- The bed-night model: find out how occupancy turns into revenue and into a break-even point, so you know how few empty beds the budget can absorb
- The staffing hours: work out how many people it takes to keep a house covered 24 hours a day, and what that costs before a single bed is filled
- The first year, month by month: spot the months when grant installments arrive and the months when cash runs thin, and plan reserves around them
- The five-year income, cash flow and balance sheet: understand how pay raises, new posts and grant renewals show up in the numbers
- The downside case: have an answer ready for a 20% revenue shortfall, together with the steps the board takes in response
If you're setting up a shelter or transitional housing program, read this before you write your own. The organization is fictional, so take what fits and change the rest.
In this plan
To turn this example into your own emergency shelters business plan, use the emergency shelters business plan template.
Harbor Green at a Glance
Harbor Green is a women-only transitional housing program in Pittsburgh, Pennsylvania, planned as a 501(c)(3) nonprofit. It is not an emergency shelter in the short-stay sense: a woman can stay up to 24 months. This sample sits under emergency shelters because readers who search for a shelter plan often need a longer-stay model, and because the plan sets itself against short-stay shelters throughout. Harbor Green opens on January 1, 2027 with 14 beds in seven shared bedrooms, staffed around the clock, with two staff awake in the house overnight. A case manager works with each resident on income, housing and, where it applies, getting her children back. Executive Director Amy Rand founded it and reports to a volunteer board.
The program needs $460,000 to open, all of it gifts and grants. A $130,000 start-up capital grant pays for fit-out, equipment and launch costs, and $330,000 from founding donors is held as an operating reserve. There is no borrowing. Both amounts are set for this example. Applications are submitted and nothing is awarded yet; the plan needs the housing contract and the first-year grants in place before opening.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $579,794 | $853,829 | $934,928 |
| Surplus or (deficit) after start-up costs | ($188,109) | $4,538 | $51,921 |
| Closing cash | $136,851 | $137,716 | $200,076 |
Revenue comes from four places. A county and HUD housing contract pays for each occupied bed-night, foundation and program grants fund the casework, individual donors give without restriction, and residents pay a small occupancy charge. Beds fill from 20% in January to 88% in December, which averages 60.5% over Year 1. Year 1 is a deficit because staff must be on site from the first night, whatever the occupancy. Year 2 is the first surplus, and it is small.
The thin spots are occupancy and the size of the Year 2 step in grants and giving. With grants and giving at plan, the program breaks even at about 84% occupancy in Year 2, against a plan of 85%. From Year 3 the cushion is about 9 to 10 points. If revenue runs 20% below plan, the board drops the grant-funded posts along with their grants, converts the second overnight post to a sleep-in, cuts outreach spending and the Executive Director's pay, and the program runs a deficit every year but keeps cash above $74,619 through Year 5. Without that response, the reserve is gone in Year 2.
The Organization
Legal name: Harbor Green, a Pennsylvania nonprofit corporation, applying for recognition under section 501(c)(3). Founder and Executive Director: Amy Rand. Premises: a leased building in Pittsburgh with seven bedrooms, a shared kitchen, a living room and an office, on a five-year lease with a five-year renewal option. Opening date: January 1, 2027. Stage: pre-launch. The board is partly seated, the lease is in draft and the first grant applications are submitted.
Purpose
Harbor Green exists to give women who have been homeless, many of them leaving an abusive relationship, a secure address and up to two years of support to reach independent housing. For women whose children are in someone else's care, it also supports the steps back toward reunification.
What the first three years aim for
- Open in January 2027 and reach 88% occupancy by December.
- Cover costs in 2028 without drawing on the reserve.
- Add a part-time family reunification specialist in the second year, funded by a program grant.
- Add a part-time aftercare case manager in 2030, to keep working with women for a time after they move out.
What the program provides
| Service | How it is paid for | Share of Year 1 revenue |
|---|---|---|
| 24-hour supervised housing, up to 24 months | County and HUD contract, per occupied bed-night | 58% |
| Case management, life-skills training, reunification support | Foundation and program grants | 29% |
| Everything the above leaves uncovered | Individual giving and events | 11% |
| Resident occupancy charges | Residents, set by income | 2% |
Legal footing
Harbor Green is incorporated as a Pennsylvania nonprofit and applies to the IRS for recognition under section 501(c)(3) through Pay.gov. The IRS treats an organization that applies within 27 months of formation as exempt from its formation date, but the application is the board's first task, because many funders ask for the determination letter. Before it asks the public for money, Harbor Green registers with the Pennsylvania Department of State's Bureau of Corporations and Charitable Organizations, which administers the state's charitable solicitation law; counsel confirms whether any exemption applies.
The Housing Gap in Pittsburgh
HUD's Continuum of Care rules (24 CFR 578.3) define transitional housing as housing meant to move homeless people into permanent housing within 24 months, or such longer period as HUD determines necessary, under an occupancy agreement that ends within 24 months and cannot be extended. Harbor Green's 24-month maximum follows that definition. It is the design feature that separates it from a short-stay shelter, where the aim is a bed for the night.
Funding for this kind of housing comes mostly through the local Continuum of Care, county human-services contracts and private foundations. HUD's rules also allow a program to charge residents an occupancy charge, capped at the highest of 30% of adjusted income, 10% of gross income or the housing portion of a welfare payment (24 CFR 578.77). Harbor Green charges well below that cap, because many residents arrive with no income.
Local demand is measured by the Continuum of Care's annual point-in-time count and housing inventory, which it reports to HUD. The Executive Director would take the latest count of women and families from the Continuum before the lease is signed and size the program against it. This plan quotes no local count.
The alternatives a referral worker has
| Option | What it offers | Where it falls short for this woman |
|---|---|---|
| Short-stay emergency shelter | A bed right away, often mixed-gender | Stays measured in weeks and no time to rebuild income or housing |
| Mixed-gender transitional program | Longer stays, larger capacity | Not designed around safety for women who have left abusive partners |
| Rapid re-housing | A lease in the private market with short-term help | Needs enough income to hold a lease, and little in-house support |
| Family or friends | Free | Often the household she left, or too crowded to last |
The table describes types of provider, not named organizations. Harbor Green has not verified whether any other Pittsburgh program is women-only with stays of up to two years, and the plan makes no claim that it is the only one.
SWOT
| Strengths | Weaknesses |
|---|---|
| Founder with nine years inside a transitional housing program | Four of seven board seats filled |
| Women-only house designed around safety and reunification | One building: a lost lease or a serious incident closes the whole program |
| Two staff awake overnight from the first night | Payroll is 85% of Year 1 revenue and cannot be flexed quickly |
| Opportunities | Threats |
|---|---|
| Referrals from hospitals, courts and shelters that have no longer-stay option | A housing contract that depends on keeping beds full |
| A donor base that can be built from nothing in a year | Grants awarded for one year and competed again |
| Aftercare funding as the first cohorts move out | Public funding priorities shifting between award cycles |
The Women Harbor Green Serves
A typical resident is between 22 and 55, has been staying in a car, a shelter or with relatives, and has left a partner who controlled the money. Many have children who live with someone else. Most arrive with an identity problem (a lost birth certificate, a Social Security card held by the former partner) before any housing problem.
Admission and who decides
Referrals come from the Continuum of Care's intake process, hospital social workers, court advocates and other shelters, and a woman can also refer herself. A case manager screens within 24 hours and interviews within 48 hours. The program admits a woman it can house safely and who agrees to an individual plan.
Length of stay
The plan uses an average stay of about ten months. At 88% occupancy, 12 or 13 women are in residence on an average day and about 15 move on in a year. In Year 1, when the house is filling, the plan expects about 19 admissions, of whom about 12 are in residence in December. These are planning figures, not data from an existing program.
Where women go next
Most move to a private rental or a subsidized unit. A smaller number return to family or move to a longer-term supported setting. Aftercare, from month 40, keeps a case manager in touch with women for a period after move-out.
Getting Referrals and Funders
Two audiences, two pipelines
Harbor Green has no one to sell to in the usual sense, since residents pay almost nothing. It has two audiences: referral partners who send women, and funders who pay for them.
The referral pipeline
Occupancy has to climb from 3 women in January to 12 in December, so referrals have to be front-loaded. At one admission for every three referrals, Year 1 needs about 57 referrals and about 19 admissions, with 18 referrals in the first quarter. The Executive Director signs referral agreements with about eight partner agencies in the fourth quarter of 2026, so the first names are in hand in the first week.
| Quarter | Referrals | Admissions | Residents at quarter end |
|---|---|---|---|
| Q1 | 18 | 6 | 5 (38% in March) |
| Q2 | 15 | 5 | 9 (62% in June) |
| Q3 | 12 | 4 | 11 (78% in September) |
| Q4 | 12 | 4 | 12 (88% in December) |
Hospital social workers, court advocates and other shelter staff are the main sources. Former residents who want to help are another source once the first cohort moves on. The plan has seven women leaving during Year 1, some early, so 19 admissions leave 12 in residence.
The funding pipeline
The Executive Director writes the first applications, and a part-time development and grants coordinator takes over from month 4. The plan draws on four funding streams, and the table shows how the restricted portion compares with money the board can spend freely.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Restricted: housing contract and program grants | $503,970 | $738,171 | $800,231 | $840,688 | $871,608 |
| Unrestricted: giving, events and resident charges | $75,824 | $115,658 | $134,697 | $147,198 | $159,714 |
| Restricted share of revenue | 87% | 87% | 86% | 85% | 85% |
Restricted money pays for the work a funder bought, and nothing else. The unrestricted share has to cover the gaps: costs a funder disallows, the allowance for them, equipment replacement and the weeks when an invoice is outstanding. That is why the board treats the $330,000 reserve as unrestricted and does not spend it on programs.
Status of the funding
At the plan date, applications have been submitted to the Continuum of Care process and to three foundations, and none is awarded. The plan requires all of them to be awarded before opening; if they are not, the opening date moves rather than the staffing plan. Year 1 grants come from three funders on different schedules, so the plan does not rest on a single funder.
Grant rules the budget respects
Federal pass-through money comes with conditions. If the housing contract is Continuum of Care money, HUD requires a match of at least 25% from other sources for all grant funds except leasing funds, in cash or in kind (24 CFR 578.73). On the full Year 1 contract that is up to $83,500, which foundation grants and gifts ($235,000) can cover if they are eligible as match. Organizations without a negotiated rate may charge indirect costs up to 15% of modified total direct costs under 2 CFR 200.414, and the plan treats the housing contract rate as already including overhead. An organization that spends $1,000,000 or more in federal awards in a year needs a single audit (2 CFR 200.501); Harbor Green's largest contract year is $546,608, so it is not expected to reach that line.
Outreach and Fundraising Budget
What it costs to raise the first $65,000 in gifts
Year 1 spending outside payroll is $18,000: $8,000 of launch costs paid from start-up funds and $10,000 of running costs. Against $65,000 of individual giving, that is about 28 cents for each dollar raised. Adding the development and grants coordinator (about $25,900 in Year 1) takes the fully loaded figure to about 68 cents, though the coordinator also works on grant applications and reports, so the true cost of raising a dollar is lower. By Year 3, $12,000 of non-staff spending and about $36,600 of coordinator pay support $118,000 of gifts: about 10 cents non-staff and 41 cents fully loaded.
| Item | Year 1 spend | What it is meant to do |
|---|---|---|
| Website and donor page (launch) | $3,500 | A clear page for referral workers and a way to give online |
| Partner outreach materials (launch) | $1,500 | A one-page guide to admission for hospital and court staff |
| First donor appeal (launch) | $3,000 | A letter and email to the founders' own contacts |
| Year-end appeal | $3,500 | Mail and email in November, aimed at about $22,000 |
| Two small donor events | $3,500 | Introductions to prospective major donors |
| Talks to congregations, civic groups and employers | $1,500 | About $10,000 of group gifts |
| Thank-you notes and impact reports | $1,500 | Repeat gifts, including the $9,000 from monthly donors |
Where the $65,000 comes from
| Source | Year 1 |
|---|---|
| Monthly donors | $9,000 |
| Twelve major gifts averaging $2,000 | $24,000 |
| Year-end appeal | $22,000 |
| Congregations, civic groups and employers | $10,000 |
| Total | $65,000 |
Milestones
- January 2027: house open, first residents admitted, first grant installments received.
- April 2027: second grant installment and 47% occupancy.
- July 2027: 68% occupancy, first mid-year report to funders.
- December 2027: 88% occupancy and the year-end appeal closes.
Running the House
The building
A leased building with seven bedrooms of two beds each, a shared kitchen, a living room, a laundry, a small office and a private room for case meetings. Rent is $66,000 in Year 1, utilities $20,000 and repairs $18,000. Door access and cameras cover the entrances only, never bedrooms or bathrooms. Zoning and fire-safety approvals for a 14-bed group residence are confirmed with the City of Pittsburgh before the lease is signed, and the plan does not rely on a particular classification. Fit-out is budgeted at $95,000 for beds, kitchen, safety and door-access systems; no contractor has quoted, and it is the use of funds most likely to move.
Staffing the hours
| Post | Hours a year | Who covers it |
|---|---|---|
| Overnight, 11pm to 7am, two staff awake | 5,840 | Three full-time advocates and relief staff |
| Evening, 3pm to 11pm | 2,920 | One full-time advocate and relief staff |
| Weekend days, 8 hours | 832 | Relief advocates |
| Total on-site hours | 9,592 | |
| Paid advocate hours (4 full-time, 3 half-time) | 11,440 | 19% above need |
The surplus of 1,848 hours covers leave, training and handovers. Weekday daytime is staffed by the Executive Director and the case management team.
Why the cost per resident is high
Full cost per occupied bed-night is $236 in Year 1 while the house fills, $192 in Year 2 and $193 in Year 3, and about $70,000 per resident-year in Year 3. Round-the-clock staffing is a fixed cost, and 14 beds cannot spread it far: at 100% occupancy the Year 3 cost would be $170 a night. The case management load is deliberately lean, at about 12 residents per case manager until the reunification specialist arrives in month 13 and about 8 per full-time equivalent after. The plan did not find a sourced benchmark for other providers' costs, and a funder will compare against its own. If funders will not pay this much per bed, the board's options are a larger house, which raises the referral requirement, or fewer paid hours, which the safety design resists.
How a day and a stay run
A weekly house meeting, shared cooking on a rota, a quiet-hours rule and an incident log reviewed by the Executive Director every week. Each resident has an individual plan with goals for income, documents, health and housing, reviewed monthly.
Records and confidentiality
Resident data goes into the Continuum of Care's Homeless Management Information System; Continuum of Care funds may pay the cost of contributing data (24 CFR 578.57). Because many women are leaving abusive partners, the program confirms with the Continuum whether it must use a comparable database instead. Software for case management, donors and accounting costs $9,000 a year. The program does not publish the building's address and trains every shift in safety planning.
Insurance and licenses
General liability, property, directors and officers, abuse and molestation, auto and umbrella cover are budgeted at $26,000 in Year 1; limits are set with the broker and the lease. Workers' compensation is carried in the payroll on-cost. The program keeps a written conflict-of-interest policy, a whistleblower policy and a resident grievance procedure, and files the state charity registration annually.
What a funder or lender will ask
| Question | Position in this plan |
|---|---|
| Debt and term | None. If a line of credit were sought to bridge county payment lag, it would be a 12-month facility renewed annually and is not drawn anywhere in the plan |
| Evidence of demand | The board's target is six written letters of support from referral partners before opening; none is in hand at the plan date |
| Outcome targets | The board's own targets: 70% of residents who leave move to permanent housing, and an average stay of 12 months or less. They are illustrative and are not HUD performance standards |
| Lease | Five years with a five-year renewal option; the lease is in draft |
| Audit | Outside accountant's review in Years 1 and 2; an audit when funders or state filing rules require one |
| Data | Continuum of Care HMIS, or a comparable database if the program must use one |
| Liability | Cover listed above, reviewed by the broker before opening |
Outside help
A pro bono employment lawyer from a board member's firm, a part-time bookkeeper, an outside accountant who prepares the annual review and Form 990, and a clinical consultant on a monthly retainer for staff supervision.
Board and Staff
Amy Rand, founder and Executive Director
Amy has twelve years in social services. She spent nine at a Pittsburgh transitional housing provider, the last four as program director with a staff of eleven, and holds a master of social work. Her pay of $76,000 compares with the BLS national median of $80,390 for social and community service managers (May 2025), a figure for all such managers across the country and not for a nonprofit of this size.
Staff
Six full-time and five part-time staff are on payroll at the end of Year 1, about 8.5 full-time equivalents for 12 women. A sixth part-time post (the reunification specialist) arrives in Year 2 and a seventh in Year 4. Each post after launch is tied to a funding stream.
The board
Four members are seated: a chair who is a former hospital administrator, a treasurer who is a CPA, a family-court lawyer, and a woman who completed a transitional housing program elsewhere. The board aims for seven by opening, adding a fundraiser, a landlord or property manager and a clinician. The treasurer reviews every monthly report to funders before it goes out.
What the board still lacks
No one on the board has run a capital campaign, and raising $460,000 before opening is the plan's first test of that. The Executive Director has not managed a federal grant in her own name. The plan covers the second gap by buying outside accounting help in Year 1 and an annual review from Year 2.
If the Executive Director leaves
Key-person risk is high in a staff of this size. The senior case manager acts as deputy, all funder contacts are shared with the board chair, and a written succession note is updated each year.
Funding and Finances
Four funding streams, one staffing plan and a 14-bed house sit behind the tables below. Year 1 is shown month by month because the grant installments and the year-end appeal make the cash pattern uneven; later years are annual totals.
Opening funds and the reserve
| Use of funds | Amount |
|---|---|
| Fit-out: beds, bedding, kitchen, safety and door-access systems | $95,000 |
| Computers, phones, cameras and office furniture | $14,000 |
| Legal: incorporation, IRS exemption application, lease review, policies | $10,000 |
| Occupancy and fire inspections, Pennsylvania charity registration | $3,000 |
| Launch: website, referral-partner outreach, first donor appeal | $8,000 |
| Operating reserve (covers the reimbursement lag and the Year 1 deficit) | $330,000 |
| Total uses | $460,000 |
| Source of funds | Amount |
|---|---|
| Start-up capital grant (restricted to fit-out and launch) | $130,000 |
| Founding donors: operating reserve (unrestricted) | $330,000 |
| Total sources | $460,000 |
Harbor Green opens with $460,000 of gifts and grants and no debt. A $130,000 start-up capital grant, restricted to fit-out and launch, pays for the $109,000 of fit-out and equipment and the $21,000 of legal, registration and launch costs. The other $330,000 comes from founding donors with no restrictions and is held whole as the operating reserve. Both amounts are set for this example and neither is a real award. The reserve is about 5.4 months of Year 1 costs ($730,531 including direct resident costs). It is sized to carry the Year 1 cash outflow from operations of $214,149 and leave at least two months of costs in the bank at the lowest point; the board's policy is to hold three months of operating costs, which the plan reaches in Year 4. Fit-out is the least certain use of funds: no contractor quote has been obtained, and sprinkler, alarm and egress work depends on the building chosen. Payables are set at 15 days. Accrued payroll is not modelled separately, so the reserve carries that timing. In the balance sheet, the paid-in capital row is the start-up gifts and the retained earnings row is the cumulative surplus or deficit; together they are the organization's net assets.
What the budget rests on
- The house has 14 beds in seven shared bedrooms and takes women only, for stays of up to 24 months. Occupancy starts at 20% in January 2027 (about 3 women), reaches 38% in March (5), 62% in June (9) and 88% in December (12). That is 3,092 occupied bed-nights in Year 1 (60.5% of the 5,110 available), 4,344 in Year 2 at 85% and 4,497 a year from Year 3 at 88%. At 1 admission for every 3 referrals and an average stay of 10 months, the ramp needs about 19 admissions and 57 referrals in Year 1, with 18 of those referrals in the first quarter.
- The housing contract pays $108 for each occupied bed-night in Year 1, rising 3% a year, and nothing for an empty bed. That rate is an illustration, not a published county or HUD rate, and it is the plan's largest unverified number: $10 less per night takes about $42,000 off Year 3's surplus. Real Continuum of Care awards are usually fixed budgets reimbursed against costs, so the per-night rate stands in for an award divided by expected bed-nights. Status at the plan date: applications are submitted and nothing is awarded. The plan needs the contract and the Year 1 grants in place before January 1, 2027.
- If the contract is Continuum of Care money, HUD requires the recipient to match all grant funds except leasing funds with at least 25% from other sources, in cash or in kind (24 CFR 578.73). On the full Year 1 contract that would be up to $83,500. Foundation grants and gifts total $235,000 in Year 1, so the match is covered on paper, provided the dollars are eligible as match.
- Residents pay an occupancy charge of $3.50 per occupied bed-night in Year 1, about $105 a month on average across all residents. HUD's Continuum of Care rules make occupancy charges optional and cap them at the highest of 30% of adjusted income or 10% of gross income, and many women arrive with little or no income, so the average is deliberately small.
- Foundation and program grants total $170,000 in Year 1 from three funders on different schedules: $60,000 from one foundation in two installments (January and July), $40,000 from a second in April, and $70,000 from a third in four quarterly installments of $17,500. They then grow to $255,000 in Year 2 and $325,000 by Year 5. The Year 2 step of $85,000 is renewal of everything awarded in Year 1 plus new awards, including one for family reunification. That is the plan's main stretch: the program would have one year of results behind it. Revenue is recorded when the money arrives, which is simpler than the accounting a nonprofit would use, where a restricted grant is released into income as it is spent.
- Individual giving is $65,000 in Year 1, built from $9,000 of monthly donors, 12 major gifts averaging $2,000, a year-end appeal of about $22,000 and $10,000 from congregations, civic groups and employers. November and December carry 43% of the year's gifts. Giving reaches $100,000 in Year 2 and $142,000 in Year 5 as the donor list builds.
- Direct resident costs are 12% of housing-contract revenue and 6% of grant revenue: groceries, cleaning and household supplies, transit passes, ID and document fees, and small client-assistance payments. That is $50,276 in Year 1, about $16 per occupied bed-night, and 8.7% of total revenue.
- Two staff are awake in the house every night. Overnight (5,840 hours), evenings (2,920) and weekend days (832) need 9,592 on-site hours. Four full-time advocates (8,320 hours) and three half-time relief advocates (3,120 hours) supply 11,440, which is 19% more than the posts need and leaves room for leave, training and handovers. Weekday daytime is covered by the Executive Director and the case management team. Case management is one senior case manager from the start, with a part-time reunification specialist from month 13: about 12 residents per case manager until then, and about 8 per full-time equivalent after.
- Payroll adds 27% to wages for payroll taxes, health contributions, workers' compensation and a retirement match (15% for part-time posts). Wages in the personnel table are launch rates and 3% annual pay raises appear as a separate line from Year 2. Advocate pay of $40,000 is below the BLS national median for social and human service assistants, $45,930 in May 2025, and Pittsburgh pay was not checked against it.
- Rent is $66,000 in Year 1 ($5,500 a month) for a leased building of about seven bedrooms, rising about 3% a year, on a five-year lease with a five-year renewal option. No landlord quote has been obtained. The plan expects the city to grant the approvals a 14-bed group residence needs; they are confirmed before the lease is signed. Insurance is $26,000 in Year 1 for general liability, property, directors and officers, abuse and molestation, auto and umbrella cover. Professional fees of $24,000 cover legal work, an outside accountant's annual review and Form 990 preparation, and a clinical consultant for staff supervision.
- No income tax is modelled because Harbor Green is expected to hold 501(c)(3) status. The IRS generally treats an organization that applies within 27 months of formation as exempt from its formation date, but the determination is not in hand at the time of this plan. There is no debt, so there are no interest lines and no debt-service ratio.
- Receivables average 28 days. The county invoices monthly and is expected to pay in about 50 days, which on the Year 1 mix of 58% contract revenue works out to about 28 days across all revenue; grants and gifts arrive on receipt. The rate is slightly cautious in later years, when the contract share is 53%.
- An allowance of $3,000 in Year 1 ($4,500 by Year 5) covers costs a funder later disallows. The contract rate is treated as including overhead. Federal rules let an organization with no negotiated rate charge indirect costs up to 15% of modified total direct costs. Even if every dollar of the housing contract were federal money, spending stays under the $1,000,000 federal-awards level that triggers a single audit: the largest year is $546,608.
Revenue by funding source
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| County and HUD housing contract (per occupied bed-night, restricted) | $333,970 | $483,171 | $515,231 | $530,688 | $546,608 |
| Foundation and program grants (restricted) | $170,000 | $255,000 | $285,000 | $310,000 | $325,000 |
| Individual giving and events (unrestricted) | $65,000 | $100,000 | $118,000 | $130,000 | $142,000 |
| Resident occupancy contributions (program income) | $10,824 | $15,658 | $16,697 | $17,198 | $17,714 |
| Total revenue | $579,794 | $853,829 | $934,928 | $987,886 | $1,031,322 |
| Growth on prior year | – | 47% | 10% | 6% | 4% |
The housing contract is 58% of Year 1 revenue and 53% of Year 5 revenue, so the program depends on keeping beds full in every year. Grants carry the casework that the nightly rate does not cover and rise from 29% to 31% of revenue. Giving is the only stream the board can spend freely: 11% in Year 1, 14% in Year 5. Year 2 grows 47% on Year 1, mostly because Year 1 is a partial ramp: the house averages 60.5% occupancy in Year 1 and 85% in Year 2.
Month by month in the first year
| Month | County and HUD housing contract (per occupied bed-night, restricted) | Foundation and program grants (restricted) | Individual giving and events (unrestricted) | Resident occupancy contributions (program income) | Total revenue | EBITDA |
|---|---|---|---|---|---|---|
| Jan 2027 | $9,374 | $47,500 | $3,250 | $304 | $60,428 | ($1,500) |
| Feb 2027 | $11,854 | $0 | $3,250 | $384 | $15,488 | ($42,543) |
| Mar 2027 | $17,811 | $0 | $3,900 | $577 | $22,288 | ($36,333) |
| Apr 2027 | $21,319 | $57,500 | $3,900 | $691 | $83,410 | $19,489 |
| May 2027 | $25,780 | $0 | $3,900 | $835 | $30,515 | ($28,819) |
| Jun 2027 | $28,123 | $0 | $3,900 | $911 | $32,934 | ($26,610) |
| Jul 2027 | $31,873 | $47,500 | $3,250 | $1,033 | $83,656 | $19,714 |
| Aug 2027 | $34,217 | $0 | $3,250 | $1,109 | $38,576 | ($21,457) |
| Sep 2027 | $35,381 | $0 | $3,900 | $1,147 | $40,428 | ($19,766) |
| Oct 2027 | $38,435 | $17,500 | $4,550 | $1,246 | $61,731 | ($310) |
| Nov 2027 | $38,556 | $0 | $11,050 | $1,250 | $50,856 | ($10,242) |
| Dec 2027 | $41,247 | $0 | $16,900 | $1,337 | $59,484 | ($2,362) |
Grant installments land in January, April, July and October, so EBITDA is positive in April and July only, close to zero in January and October, and negative in the other eight months. Giving rises in November and December, but a year-end appeal does not fill a gap that deep. The lowest month-end cash balance is Dec, at about $124,000, roughly two months of costs, once 28 days of receivables are set aside.
Staffing and payroll
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Executive Director | $76,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Senior case manager | $58,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Residential advocate (overnight A) | $40,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Residential advocate (overnight B) | $40,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Residential advocate (overnight C) | $40,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Residential advocate (evenings and weekends) | $40,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Relief advocate A (part time) | $20,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Relief advocate B (part time) | $20,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Relief advocate C (part time) | $20,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Bookkeeper | $24,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Development and grants coordinator (part time) | $30,000 | Month 4 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Family reunification specialist (part time) | $28,000 | Month 13 | – | 0.5 | 0.5 | 0.5 | 0.5 |
| Second senior case manager (aftercare, part time) | $29,000 | Month 40 | – | – | – | 0.5 | 0.5 |
| Total payroll incl. on-costs | $491,255 | $536,680 | $536,680 | $561,693 | $570,030 |
The Executive Director, a senior case manager, four full-time advocates and three relief advocates are on payroll from January 2027, because the house has to be staffed, with two people awake overnight, whether it holds three residents or fourteen. A part-time bookkeeper joins in month 3 and a part-time development and grants coordinator in month 4, once the first reports and applications fall due. The part-time family reunification specialist (month 13) and the part-time aftercare case manager (month 40) each follow a funding stream the board has agreed to expect. At the end of Year 1 the program has 6 full-time and 5 part-time staff; part-time posts are shown at half-time salaries. For 12 women that is about 8.5 full-time equivalents.
Income and expenses over five years
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $579,794 | $853,829 | $934,928 | $987,886 | $1,031,322 |
| Direct resident costs (food, household supplies, transit passes, client assistance) | ($50,276) | ($74,039) | ($81,072) | ($85,664) | ($89,430) |
| Gross profit | $529,518 | $779,790 | $853,856 | $902,222 | $941,892 |
| Payroll incl. on-costs | ($491,255) | ($536,680) | ($536,680) | ($561,692) | ($570,030) |
| Rent | ($66,000) | ($68,000) | ($70,000) | ($72,100) | ($74,300) |
| Utilities | ($20,000) | ($20,600) | ($21,200) | ($21,800) | ($22,500) |
| Marketing | ($10,000) | ($11,000) | ($12,000) | ($12,500) | ($13,000) |
| Insurance | ($26,000) | ($27,000) | ($28,000) | ($29,000) | ($30,000) |
| Professional fees | ($24,000) | ($26,000) | ($28,000) | ($29,000) | ($30,000) |
| Software subscriptions | ($9,000) | ($10,000) | ($10,500) | ($11,000) | ($11,500) |
| Repairs and maintenance | ($18,000) | ($19,500) | ($20,500) | ($21,500) | ($22,500) |
| Training, background checks and recruitment | ($6,000) | ($6,500) | ($7,000) | ($7,000) | ($7,500) |
| Phones, internet, supplies and sundry | ($7,000) | ($7,500) | ($8,000) | ($8,500) | ($9,000) |
| Furniture and equipment replacement | $0 | ($6,000) | ($7,000) | ($8,000) | ($8,000) |
| Allowance for disallowed or unreimbursed costs | ($3,000) | ($4,000) | ($4,000) | ($4,500) | ($4,500) |
| Annual pay raises (3% a year) | $0 | ($16,100) | ($32,684) | ($52,084) | ($71,544) |
| EBITDA | ($150,737) | $20,910 | $68,292 | $63,546 | $67,518 |
| Depreciation | ($16,371) | ($16,371) | ($16,371) | ($16,371) | ($16,371) |
| Interest | $0 | $0 | $0 | $0 | $0 |
| Income tax | $0 | $0 | $0 | $0 | $0 |
| Net income before start-up costs | ($167,109) | $4,538 | $51,921 | $47,174 | $51,146 |
| Start-up costs expensed at opening (legal, registration, launch outreach) | ($21,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($188,109) | $4,538 | $51,921 | $47,174 | $51,146 |
Year 1 runs a deficit of $150,737 at EBITDA, $167,109 after depreciation and $188,109 after the $21,000 of start-up costs; the reserve is there to absorb it. Year 2 reaches a small surplus of $4,538 (0.5% of revenue). Year 3 is the strongest at $51,921 (5.6%) because no new post is added. Year 4 dips to $47,174 when the aftercare case manager starts in month 40 and pay raises accumulate, and Year 5 is $51,146. By then pay raises cost $71,544 a year. A surplus here is not distributed; it is added to the reserve. Full cost per occupied bed-night, including everything above, is $236 in Year 1 while the house fills, $192 in Year 2 and $193 in Year 3, then $214 in Year 5 with pay raises. That is about $70,000 per resident-year in Year 3. A 14-bed house cannot spread round-the-clock staffing over many beds: at 100% occupancy the Year 3 cost would be $170 a night. No sourced benchmark for other providers' costs was found, so the plan does not compare against one.
Cash and the reimbursement lag
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($214,149) | $865 | $62,360 | $59,672 | $64,340 |
| Fit-out and equipment | ($109,000) | $0 | $0 | $0 | $0 |
| Funding received | $460,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | $0 | $0 | $0 | $0 | $0 |
| Owner distributions | $0 | $0 | $0 | $0 | $0 |
| Net change in cash | $136,851 | $865 | $62,360 | $59,672 | $64,340 |
| Closing cash | $136,851 | $137,716 | $200,076 | $259,748 | $324,088 |
Closing cash is positive at every year end. The lowest year-end balance is $136,851 in Year 1, after cash from operations of negative $214,149. Receivables owed by the county and funders (about $65,500 at the end of Year 2) grow with revenue and absorb cash. Cash falls from the $460,000 opening position to $136,851 at the end of Year 1, then rebuilds to $324,088 by Year 5, which is partly back to where it started. That is 2.2 months of costs at the end of Year 1, 3.4 months in Year 4 and 4.0 months in Year 5. No loan or line of credit is drawn.
Balance sheet and net assets
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $136,851 | $137,716 | $200,076 | $259,748 | $324,088 |
| Accounts receivable | $44,477 | $65,499 | $71,721 | $75,783 | $79,115 |
| Fit-out and equipment (net) | $92,629 | $76,257 | $59,886 | $43,514 | $27,143 |
| Total assets | $273,957 | $279,472 | $331,682 | $379,045 | $430,346 |
| Accounts payable | $2,066 | $3,043 | $3,332 | $3,520 | $3,675 |
| Bank loan | $0 | $0 | $0 | $0 | $0 |
| Paid-in capital | $460,000 | $460,000 | $460,000 | $460,000 | $460,000 |
| Retained earnings | ($188,109) | ($183,570) | ($131,649) | ($84,475) | ($33,329) |
| Total liabilities and equity | $273,957 | $279,472 | $331,682 | $379,045 | $430,346 |
Break-even and coverage
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -26.0% | 2.5% | 7.3% | 6.4% | 6.6% |
| Net margin (before start-up costs) | -28.8% | 0.5% | 5.6% | 4.8% | 5.0% |
| Payroll incl. pay raises as share of revenue | 85% | 65% | 61% | 62% | 62% |
| Revenue per full-time equivalent at year end | $68,211 | $94,870 | $103,881 | $103,988 | $108,560 |
| Average monthly revenue | $48,316 | $71,152 | $77,911 | $82,324 | $85,944 |
| Monthly revenue needed to cover operating costs | $62,070 | $69,244 | $71,679 | $76,526 | $79,783 |
| Debt service cover (EBITDA / interest + principal) | – | – | – | – | – |
The last two rows compare average monthly revenue with the monthly revenue needed to cover operating costs at the plan's revenue mix: Year 1 averages $48,316 against $62,070 needed, Year 2 $71,152 against $69,244, Year 3 $77,911 against $71,679, Year 4 $82,324 against $76,526 and Year 5 $85,944 against $79,783. A second view fixes grants and giving at plan and scales only the bed-night revenue (the housing contract and resident charges). On that basis break-even occupancy is about 84% in Year 2, 78% in Year 3, 79% in Year 4 and 79% in Year 5, against planned occupancy of 85%, 88%, 88% and 88%. The cushion is under one point in Year 2 and about 9 to 10 points from Year 3. The two views answer different questions and will not give the same number.
A 20% shortfall in bed-nights and grants
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $463,835 | $649,897 | $713,781 | $729,360 | $753,435 |
| Net income before start-up costs | ($173,308) | ($50,447) | ($14,714) | ($22,179) | ($21,477) |
| Net income after start-up costs | ($194,308) | ($50,447) | ($14,714) | ($22,179) | ($21,477) |
| Closing cash | $139,134 | $91,449 | $88,433 | $81,486 | $74,619 |
This case takes 20% off every revenue line in every year, which could be fewer referrals, a grant not renewed or both. The response: the bookkeeper starts two months later; the reunification and aftercare posts are never filled, and the grants that would have paid for them (about $32,000 and $33,000 a year) are removed from revenue as well; marketing is cut by 20%; the Executive Director takes a 20% pay cut; and, with about 10 residents in the house, the second overnight post becomes a sleep-in on call, which needs funder agreement. The program still runs a deficit in every year, from $194,308 after start-up costs in Year 1 to $21,477 in Year 5, and never returns to surplus. Closing cash falls from $139,134 at the end of Year 1 but stays positive, with a floor of $74,619 at the end of Year 5, about 1.2 months of costs. Equity ends Year 1 at $265,692. The reserve would last roughly three to four more years at that rate, so the board would have to restructure or find new funding before then. With no response at all, the same shortfall leaves cash at $39,430 at the end of Year 1 and negative ($111,654) at the end of Year 2.
Sources
- HUD Continuum of Care Program, 24 CFR 578.3 (definitions, including transitional housing), 24 CFR 578.57 (HMIS), 24 CFR 578.73 (matching requirements) and 24 CFR 578.77 (occupancy charges and rent), eCFR text as published at January 1, 2025; confirm against the current text before relying on it.
- Uniform Guidance, 2 CFR 200.414 (indirect costs, de minimis rate) and 2 CFR 200.501 (audit requirements), same eCFR text.
- Bureau of Labor Statistics, Social and human service assistants and Social and community service managers, Occupational Outlook Handbook, May 2025 median pay, national figures.
- IRS, Application for recognition of exemption (Form 1023 series, Pay.gov filing, 27-month rule).
- Pennsylvania Department of State, Charities (Bureau of Corporations and Charitable Organizations, charitable solicitation registration).
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