Looking for a homeless shelter business plan? You're in the right place.
A shelter plan is read by program officers and county contract managers. How many nights will the beds be full? What does a bed-night cost, and who pays for each part of it? Who is awake at 3 a.m., and what happens to the budget if a contract comes in short? Blank headings in a template don't answer any of them.
This article walks through a complete sample plan for a 60-bed emergency shelter in Compton, California, section by section: the need, the people served, the funding pipeline, the staffing and the five-year financials, ending with a downside case.
What you'll get from each part:
- The executive summary: a one-page statement of the ask, the beds and the first three years, written for a program officer who has a stack of them to read
- The need and the alternatives: a way to describe local demand with dated public figures, and to say what already exists without overclaiming
- The funding pipeline: how a contract, a federal pass-through, foundation grants and private gifts fit together, and where the matching requirement comes from
- Staffing around the clock: a worked count of the hours a 24-hour shelter needs, so the payroll line can be defended
- Cost per bed-night: a single figure funders compare, built from the budget instead of guessed
- The reserve and the lagging cash: why the opening reserve is sized to the first year's deficit and the months that county payments run late
- The downside case: an answer to the question of what happens when beds and grants come in 15% short, with the steps the board takes
A shelter plan is read by funders who have seen many of them. Borrow the structure that fits your program, and change the figures, because The Room is a fictional organization.
In this plan
Looking for a homeless shelter business plan template? The Toolkit builds yours with your own numbers.
Executive Summary
The Room is a nonprofit emergency shelter in Compton, California. It plans a training month in December 2026 and opens its doors on January 4, 2027. It runs 60 beds for adults aged 55 and over, open 24 hours a day, with three meals, showers, laundry, a locker for each resident and a case manager assigned on day one. Entry is low-barrier: no sobriety test, no minimum income, and no ID required at the door. The typical stay is about 75 days, and the aim of the stay is a move to interim or permanent housing.
The Room needs $1,830,000 to open: an $800,000 start-up capital grant restricted to fit-out, equipment and launch, and $1,030,000 from founding donors. Of that, $650,000 pays for fit-out and equipment, $234,000 for permits, legal work, a pre-opening payroll month, launch costs and the lease deposit, and $946,000 stays in the bank as an operating reserve for the first year's deficit and the months that public payments run late.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $2,444,726 | $3,191,264 | $3,353,594 |
| Surplus (deficit) after start-up costs | ($548,758) | $70,240 | $75,404 |
| Closing cash | $437,537 | $516,699 | $670,734 |
Revenue comes from four places: a city and county bed-night agreement (68% of Year 1), a federal Emergency Solutions Grant pass-through (16%), foundation grants (12%) and private giving (4.5%). Year 1 is a deficit because the shelter has to be staffed around the clock while its beds fill, from 15 occupied in January to 55 in December, and it averages 70% occupancy for the year. Hiring follows the bed count. Year 2 is the first year with a surplus, and the margins stay in the low single digits.
The plan tests itself. If bed-nights and grants come in 15% short and the board closes a 12-bed wing, leaves four posts unfilled, drops the aftercare hire, delays two others and cuts executive pay by a fifth, the shelter runs a deficit in all five years but ends every year with cash in the bank.
The shelter serves one group, older adults, and budgets the 24-hour staffing and case management that group needs. The cost per bed-night is shown in full in the financial section.
About The Room
Legal name: The Room, a California nonprofit public benefit corporation, applying for 501(c)(3) status. Founders: Anthony Burke and Brooke Burke. Site: a leased single-story building of about 16,000 square feet in Compton, with three dormitory rooms, a commercial kitchen and a separate intake office. Opening: January 4, 2027, after a December training month. Stage: pre-opening. The lease is at letter-of-intent stage and the funding listed below is in various states of commitment.
Why the shelter exists
Give homeless adults aged 55 and over a safe place to sleep, eat and plan, and help each one reach a housing placement.
Beds and stays
The shelter has 60 beds in three dormitory rooms of 20, with a 12-bed wing that can be closed in a downturn. Occupancy averages 70% in 2027, 92% in 2028 and 93% from 2029, which is 15,368 occupied bed-nights in Year 1 and 20,367 a year from Year 3. At an average stay of 75 days, that means about 205 stays in Year 1 and about 272 a year at full run rate. The plan sets a target that 30% of exits go to interim or permanent housing: about 60 households in Year 1 and about 80 a year from Year 3.
What a resident gets
| Service | Detail |
|---|---|
| Bed and locker | A bed in a dormitory room and a lockable locker; the federal shelter standards call for a secure place for belongings |
| Meals | Breakfast, lunch and dinner from the on-site kitchen |
| Case management | One case manager for every 15 beds at full occupancy, a housing plan within seven days, and a housing navigator for applications and landlord contact |
| Daily needs | Showers, laundry, mail, phone charging, transit passes |
| Health | A part-time nurse on site 20 hours a week, naloxone kept on site and links to a mobile clinic; no clinical care is billed by The Room |
House policies
The Room is low-barrier. Residents do not have to be sober, employed or in treatment. Violence, weapons and use of drugs or alcohol on the premises lead to a review and, only if the review finds a continuing risk, to a move to another program. Property searches are by consent.
- Rooms. One room for women, one for men and one flexible room for couples and for residents who need a different arrangement. A partner who is also 55 or over may stay.
- Access. Eight beds sit beside accessible restrooms and showers, and the building is on one level. The federal shelter standards require disability access; the architect confirms the design against them.
- Animals. Service animals are welcome. Pets are not kept in the dormitory; the shelter arranges boarding with a partner for the first 14 days.
- Medication. Residents keep their own medication in lockers. The nurse holds controlled substances and anything a resident asks to store in a locked cabinet.
Incorporation and exemption
The Room is incorporated in California. The exemption application goes to the IRS inside the 27-month window that dates recognition back to formation; the determination is pending. The shelter registers with the California Attorney General's Registry of Charitable Trusts before it solicits gifts, and files an annual report with the Registry.
Zoning and use permit
A pre-application meeting with the city planning department has been held. A conditional use permit application is not yet filed. The lease is contingent on the permit, and the board does not release the capital grant for fit-out until both are in hand.
The Need in South Los Angeles County
What the count says
The Los Angeles Homeless Services Authority (LAHSA) released its 2026 count on July 24, 2026. It estimated 73,040 people experiencing homelessness in Los Angeles County, up 1.2% from 72,195 in 2025, a change LAHSA described as not statistically significant. Unsheltered homelessness rose 3.3%. The sources checked give no usable figure for Compton alone, and the plan does not estimate one. The plan expects referrals from outreach teams in the South Los Angeles service area, which the county's service-area map would show covers Compton; the board confirms this with LAHSA.
Why adults 55 and over
Older adults are harder to place in a shelter built around younger people: a top bunk, a stairwell or a 6 a.m. wake-up is a barrier. The Room's dormitories have lower beds, grab rails, ground-floor access and a later morning schedule. The plan treats this as a design for a narrower group, not a claim that the group is larger than other groups. It cites no county figure for the share of older adults in the count, because the figure was not retrievable from LAHSA's own pages when this plan was prepared.
Who a referral worker could use instead
| Alternative | What it offers | Why a worker picks it | How The Room differs by design |
|---|---|---|---|
| Larger congregate shelters | Many beds, often with fixed intake hours | Space is available most nights | A 55-and-over dormitory, case managers at 1:15 and 24-hour entry |
| Motel-based interim housing | Private rooms | Better for residents with medical needs | A congregate setting with meals and a nurse on site |
| Faith-based and winter shelters | Seasonal or overnight beds | Close to where the person already is | Open every night of the year with day services |
| Treatment programs | Clinical care with a bed | Right for residents who want treatment | No sobriety requirement at entry |
| Staying outdoors or in a vehicle | No rules, no waiting | Keeps a partner, pet or belongings | A partner can stay and a locker holds belongings |
The table describes what each category offers and how this shelter positions itself, not a ranking. Individual providers are not named because their capacity and rules change often.
Strengths, weaknesses, openings and threats
| Strengths | Weaknesses |
|---|---|
| Defined population and a facility designed for it | Single site: a lease or fire-code problem closes everything |
| Case management staffed at 1 for every 15 beds at full occupancy | 96% of Year 1 revenue is restricted to specific uses |
| Operating reserve of $946,000, about 4.3 months of Year 1 costs | New organization with no results to show funders |
| Opportunities | Threats |
|---|---|
| Referrals from hospital discharge planners and outreach teams | A late or reduced bed-night agreement |
| Federal match money that private gifts can draw in | Staff turnover in 24-hour posts |
| Year-end giving, which carries 42% of Year 1 gifts | A neighbor or council objection to the site |
Who Needs a Bed Here
The resident
An adult aged 55 or over who is sleeping in a vehicle, on the street or in a place not meant for living. Residents are likely to be managing health conditions and mobility limits, some on a fixed income or none. Some have a partner they will not leave. The plan does not cite a statistic for any of this.
How admission works
Three routes: a referral from an outreach team, a discharge planner or the coordinated entry system; a walk-in during the day; and a transfer from another shelter. A bed is offered if one is free and the person is 55 or over; the intake worker does not screen for sobriety or income. About one referral in two becomes an admission, because the bed is full, the person is under 55 or the person chooses not to come. Year 1 therefore needs about 410 referrals, or 8 a week.
How long a stay lasts
The default stay is 90 days, reviewed at day 30 and 60. The plan expects an average of 75 days. Stays extend while a housing placement is pending. A stay that ends without a placement leaves with a written follow-up plan and, where the resident agrees, a call at 30 days.
Where residents go next
Targets, in order of preference: a permanent unit through a housing voucher or a subsidized building, shared housing, interim housing with more support, and a return to family. A resident who has no placement at day 90 and is stable remains under review rather than being exited to the street.
Referrals, Funders and Donors
Filling beds and filling the budget
One pipeline fills beds: outreach teams, hospital discharge planners, clinics, libraries and faith groups that refer older adults. The other fills the budget: public agencies, foundations and individual donors. The Executive Director runs both in Year 1, and the development manager joins in month 4.
Funding mix and status at the plan date
| Source | Year 1 | Share | Status |
|---|---|---|---|
| City and county bed-night agreement | $1,659,722 | 68% | Term sheet received, agreement unsigned |
| Federal pass-through (Emergency Solutions Grant) | $380,004 | 16% | Application submitted |
| Foundation grants | $295,000 | 12% | One $120,000 grant committed in writing; $75,000 and $100,000 applications in review |
| Individual and corporate giving | $110,000 | 4.5% | Founding donor list of 24 households |
| Opening funds: capital grant | $800,000 | one-time | Awarded in writing, payable when the lease and use permit are in place |
| Opening funds: founding donors | $1,030,000 | one-time | Signed pledge letters for $620,000 from six households; $410,000 in discussion with 18 more |
The plan needs the bed-night agreement and the first grants in place before January 4, 2027. Without the agreement the shelter would open late, or open one room at a time on the reserve.
The matching rule
HUD's Emergency Solutions Grant rules require the recipient of the grant to match it dollar for dollar (24 CFR 576.201). The match can be cash or eligible non-cash contributions. Recipients commonly pass the requirement to subrecipients through the subaward, so the plan treats the $380,000 as needing $380,000 of other money. Foundation grants and gifts total $405,000 in Year 1 and $550,000 in Year 2, which covers it on paper, provided the funds are eligible as match and the subaward is read before it is signed.
If the county rate is lower or the agreement slips
The plan's $108 per bed-night is its own figure. A Year 1 rate $10 lower, with the same 3% rises, takes about $216,000 off Year 3 revenue. The board's order of response is to hold the phased hires (the third and fourth case managers and the later monitors) until the agreement is signed, to keep the third dormitory room closed, and to draw on the reserve. The first three months of the agreement are worth $219,607 in the plan, so a quarter's delay costs about that much in cash, which the reserve can carry but which pushes the lowest cash point below the planned 1.3 months of costs.
Gifts: what the $110,000 is built from
| Source | Year 1 |
|---|---|
| Monthly donors (about 100 by December) | $20,000 |
| Major gifts (nine at an average of $3,000) | $27,000 |
| Year-end appeal | $23,000 |
| Spring breakfast and autumn evening, gross | $26,000 |
| Congregations, civic groups and employers | $14,000 |
The last two months of the year bring in 42% of the total. These are first-year gifts for operations and are separate from the founding gifts that fund the opening reserve.
What it costs to fill beds and raise money
Year 1 marketing is $57,000: $15,000 of launch costs paid from the start-up grant and $42,000 of running costs. The running costs plus the development manager's pay (about $65,000 for nine months) come to about $107,000, or 26 cents for each dollar of the $405,000 in foundation and private money.
| Item | Year 1 | Purpose |
|---|---|---|
| Website and brand (launch) | $8,000 | A donation page with monthly giving and a referral form |
| Referral materials (launch) | $2,500 | One-page guide for outreach teams and discharge planners |
| First appeal (launch) | $4,500 | Printing and mailing to the founders' network |
| Referral outreach and clinic visits | $6,000 | Visits to hospitals, clinics and outreach teams |
| Spring breakfast and autumn evening | $14,000 | Two events with sponsors; $26,000 gross, about $12,000 net |
| Year-end direct mail and email | $9,000 | The appeal that carries 42% of gifts |
| Website, donor database and search ads | $5,000 | Online giving |
| Volunteer program and community meetings | $4,000 | Neighbor meetings and volunteer onboarding |
| Corporate partnership outreach | $4,000 | Employer match and sponsorships |
Milestones
- January 2027: 60 beds open, 15 filled, opening team staffed.
- April 2027: 36 beds filled; the second foundation installment arrives and a third case manager and more monitors are in place.
- July 2027: 48 beds filled; mid-year grant payment arrives.
- December 2027: 55 beds filled, with 92% occupancy for the month.
Running the Shelter, Day and Night
The building
About 16,000 square feet at $1.50 per square foot per month, which is $288,000 in Year 1, including property tax and common-area charges, with 3% annual steps, under a five-year lease that includes a renewal option. The lease deposit is two months of rent ($48,000). The board does not sign until the city confirms the use is permitted at the site. The federal shelter standards (24 CFR 576.403) set the baseline for the fit-out: a structurally sound building, ventilation, working heat and cooling, private toilets and bathing facilities, a secure place for belongings, smoke detectors, a fire alarm accessible to residents with hearing loss, and a second exit. The plan budgets $560,000 for fit-out and $90,000 for equipment. That is the least certain cost: no contractor has priced the sprinkler, alarm and exit work, accessible showers or the commercial kitchen, and a building in poor condition could cost well beyond it.
Hours that have to be covered
At full occupancy the floor needs two monitors by day, three in the evening when meals, check-in and activity peak, and three overnight: eight posts and 23,360 hours a year. Twelve full-time monitors supply 24,960 paid hours and four part-time relief monitors supply 4,160. After about 11% for leave, holidays and training, roughly 25,900 hours reach the floor, which is 11% above the requirement. Overnight is one monitor to about 18 residents, with a lead monitor on each team, a part-time nurse by day and the Program Director on call. The shelter opens with nine monitors for six posts and adds three as occupancy climbs, in months 4 and 7. If the shelter closes the 12-bed wing, the posts drop to seven, and the evening and overnight teams each give up one full-time monitor.
Monitors are paid $48,000, which is $23.08 an hour. BLS lists a national median of $45,930 for social and human service assistants (May 2025), so the plan's monitor wage is above that median. Compton and Los Angeles pay was not checked, and the Executive Director's $118,000 is the plan's figure.
Case management and health
Four case managers, one for every 15 beds at full occupancy, plus a housing navigator. The shelter opens with two, adds a third in month 3 and a fourth in month 6, so the ratio is about 1 to 7 in January and about 1 to 14 at 92% occupancy. A housing plan is written within seven days of admission. A peer navigator with lived experience joins in month 18, and a second senior case manager for aftercare in month 34. A part-time nurse is on site 20 hours a week.
Meals and kitchen
Three meals a day, seven days a week, cooked on site by a kitchen lead, a cook and a kitchen assistant, with a second cook from month 4. In the downside case the lead, one cook and the assistant remain. Direct costs, which cover food, hygiene supplies, linen, transit passes and small client assistance, are $15.36 per occupied bed-night in Year 1.
Safety, records and neighbors
- A written workplace violence prevention plan. California Labor Code section 6401.9 (SB 553), in force since July 1, 2024, requires most employers to keep one; the board confirms with counsel that it applies and checks for later Cal/OSHA rules.
- Staff trained in de-escalation, first aid and naloxone use before the first night, during the December training month.
- Door access and cameras at entrances and common areas, with signs; no cameras in sleeping areas or bathrooms.
- Resident records kept in a case-management system with access limited by role.
- A community liaison number answered by the Program Director, and a quarterly neighbors' meeting.
Insurance and oversight
Insurance is $62,000 in Year 1: general liability, property, directors and officers, auto, umbrella and cyber cover, with workers' compensation inside the payroll load. Professional fees of $68,000 pay for an annual audit, legal advice, a clinical consultant and a payroll provider. Federal grant rules require an audit of any nonprofit that spends $1,000,000 or more in federal awards in a year (2 CFR 200.501); the board confirms how much of its public money counts as federal. California's Nonprofit Integrity Act separately requires an audit and an audit committee for charities with gross revenue of $2 million or more, with an exclusion for government grants and contracts that require an accounting; the shelter's non-government revenue is $550,000 in Year 2, but the board plans an annual audit regardless, and counsel confirms the current rule.
Board and Staff
Anthony Burke, Executive Director
Anthony spent ten years in South Los Angeles social services: first as an outreach worker on a street-medicine team, then three years running a 40-bed interim housing site. He holds a degree in accounting and manages budgets as well as people. His $118,000 salary is the largest single payroll line and is set by the board.
Brooke Burke, co-founder and director
Brooke co-founded The Room with Anthony and sits on the board without pay, leading the community partnerships committee. She and Anthony are married, so the board's conflict-of-interest policy has her step out of any discussion of his pay or performance. She holds no officer role and no staff post.
Staff at the end of Year 1
The shelter has 24 full-time and 7 part-time staff: the Executive Director, a Program Director, four case managers, a housing navigator, twelve monitors, a kitchen lead, two cooks, a kitchen assistant and a development manager (month 4), plus four part-time relief monitors, a part-time nurse, a part-time facilities technician and a part-time bookkeeper (month 3). At opening the team is 17 full-time and 6 part-time.
The board
Seven directors, with a majority unrelated to staff or each other: a retired hospital discharge planner as chair, a regional bank's credit officer as treasurer, a property manager, a lawyer, a formerly homeless resident who now works in housing, a local faith leader and Brooke Burke. Anthony attends without a vote. The board meets monthly in Year 1 and approves the budget, the reserve policy and the Executive Director's pay.
Gaps on the board
A fundraiser with major-gift experience, and a physician or nurse. The plan covers the first with the development manager and the second with the shelter nurse and a consulting physician until a director is found.
Continuity if the director departs
The Program Director steps up as interim lead for up to 90 days. The board holds a written succession plan and key-person cover on the Executive Director.
Funding and Finances
The tables run on four revenue lines, a staffing plan that grows with occupancy and 60 beds. Grant installments and the year-end appeal land unevenly, so the first year appears month by month and the four years after it as annual totals. A nonprofit has no owners and pays no dividends, so a few template labels are reused with a different meaning; the notes under each table say how.
Opening funds and the reserve
| Use of funds | Amount |
|---|---|
| Fit-out: 60 beds and lockers, showers, ADA work, sprinklers, alarm and egress | $560,000 |
| Commercial kitchen, laundry, computers, phones, cameras | $90,000 |
| Legal and permits: incorporation, IRS application, lease, use permit, architect | $54,000 |
| Fire and building inspections, health permit, charity registration | $7,000 |
| Launch: website, referral-partner outreach, first donor appeal | $15,000 |
| Pre-opening payroll and training (December 2026) | $110,000 |
| Lease security deposit (two months of rent) | $48,000 |
| Operating reserve (reimbursement lag and the Year 1 deficit) | $946,000 |
| Total uses | $1,830,000 |
| Source of funds | Amount |
|---|---|
| Start-up capital grant (restricted to fit-out, equipment and launch) | $800,000 |
| Founding donors: operating reserve (without donor restrictions) | $1,030,000 |
| Total sources | $1,830,000 |
Gifts and grants of $1,830,000 open the doors, with no borrowing. An $800,000 start-up capital grant is tied to fit-out, equipment and launch work. Founding donors give a further $1,030,000 without restrictions. Together they pay for $650,000 of fit-out and equipment, $234,000 of costs the model expenses before the first resident arrives (legal and permit work $54,000, inspections and licensing $7,000, launch outreach $15,000, a December training month on payroll $110,000 and a two-month lease deposit $48,000) and a $946,000 operating reserve. The reserve is about 4.3 months of Year 1 operating costs ($2,661,484 before depreciation). It absorbs a first-year operating outflow and still leaves about 1.3 months of costs on hand at the lowest month-end; the board policy is three months, and year-end cash first reaches it in Year 5. The fit-out figure carries the most doubt: no contractor has bid, and sprinklers, alarm, accessible showers and a commercial kitchen in a 16,000-square-foot building could cost well above $560,000 depending on the shell. If bids come in higher, the board opens two dormitory rooms and finishes the third from the reserve later. The model treats the deposit as a cost; a refundable deposit would sit on the balance sheet as an asset. On the balance sheet, the paid-in capital row stands for the opening gifts, restricted and unrestricted together. The retained earnings row is the running total of surpluses and deficits since opening. Added together, the two rows are the organization's net assets, and the table does not separate donor-restricted from unrestricted amounts. Under nonprofit accounting standards, unconditional gifts and grants are recorded as contributions in the statement of activities, so the real first-year statement would show the $1,830,000 as support and likely a surplus for the year; the model shows a deficit because it treats those gifts as capital, not income. The shelter's auditor decides the presentation. Supplier bills are paid in 15 days.
What the budget rests on
- Sixty beds sit in three dormitory rooms of 20, for adults 55 and over. January 2027 opens at 25% occupancy (15 beds), April reaches 60% (36), July 80% (48) and December 92% (55). Year 1 totals 15,368 occupied bed-nights out of 21,900 available (70%). Year 2 is 20,148 at 92%, and every year from Year 3 is 20,367 at 93%. An average stay of 75 days implies about 205 admissions in Year 1; with one referral in two ending in a bed, that is about 410 referrals. The target is that 30% of exits go to interim or permanent housing.
- The agreement with the city and county pays $108 per occupied bed-night in Year 1, climbing 3% a year, and nothing for a bed left empty. $108 is the plan's own rate, not a published one, since each real agreement sets its own. It is the least certain figure in the budget: a Year 1 rate $10 lower, with the same 3% rises, takes about $216,000 off Year 3 revenue. Payment is monthly in arrears, and the term sheet has been received but not signed.
- The federal pass-through is Emergency Solutions Grant (ESG) money, a fixed award of about $380,000 in Year 1, paid at roughly $31,667 a month, then $400,000 to $445,000 in Years 2 to 5. Continuum of Care funds mostly pay for transitional and permanent housing and supportive services, so the plan counts only ESG for shelter operations. The ESG rule at 24 CFR 576.201 makes the grant recipient match the grant dollar for dollar, and the plan expects the subaward to hand that duty down. Foundation and private money of $405,000 in Year 1 and $550,000 in Year 2 would cover it, if those dollars qualify as match.
- Three foundations give $295,000 in Year 1: $120,000 in two installments (January and July), $75,000 in April, and $100,000 as four payments of $25,000. Totals then climb to $360,000 in Year 2 and $420,000 in Year 5. The Year 2 jump is renewals plus new awards, resting on a single year of results, and is the plan's main stretch. Revenue is booked when cash arrives; a nonprofit following donor-restriction accounting would recognize a restricted grant as it is spent.
- Private giving is $110,000 in Year 1: $20,000 from monthly donors, $27,000 from nine major gifts averaging $3,000, $23,000 from the year-end appeal, $26,000 from two sponsored events and $14,000 from congregations, civic groups and employers, with 42% arriving in November and December. The events cost $14,000 inside the marketing line, so they net $12,000. These are first-year gifts and are separate from the $1,030,000 of founding gifts. Giving reaches $190,000 in Year 2 and $280,000 in Year 5 as the donor list grows. It is the one stream the board can spend freely, at 4.5% of Year 1 revenue and 7.7% of Year 5.
- Direct resident costs run at 13% of the bed-night agreement and 3% of federal and foundation money, covering three meals a day, hygiene supplies, linen, transit passes, document fees and small client payments. Year 1 comes to $236,014, or $15.36 per occupied bed-night.
- At full occupancy the floor needs two monitors by day, three in the evening and three overnight, eight posts and 23,360 hours a year. Twelve full-time monitors give 24,960 paid hours and four part-time relief monitors give 4,160. About 11% goes to leave, holidays and training, leaving roughly 25,900 hours on the floor, 11% more than the posts require. Staffing is phased: the shelter opens with nine full-time monitors (six posts, 17,520 hours, 16% cover), adds two in month 4 and the twelfth in month 7. Case managers go from two at opening to three in month 3 and four in month 6, so the ratio is about 1 to 7 in January and 1 to 14 at 92% occupancy. A part-time nurse works 20 hours a week, and the Program Director is on call each night.
- The kitchen cooks three meals a day, seven days a week, with a lead, a cook and an assistant at opening and a second cook from month 4. On-costs add 27% to wages, covering payroll taxes, health contributions, workers' compensation and a retirement match (15% for part-time staff). Personnel-table wages are the starting rates; 3% pay raises show as their own line from Year 2. A monitor earns $48,000, or $23.08 an hour, above the $45,930 national median for social and human service assistants (BLS, May 2025). Local Compton and Los Angeles pay was not benchmarked, and the Executive Director's $118,000 is the plan's figure.
- Rent is $288,000 in Year 1 for about 16,000 square feet at $1.50 a month per square foot, which includes property tax and common charges, with 3% annual steps. Utilities are $84,000, insurance $62,000, and professional fees $68,000 for an audit, legal advice, a clinical consultant and a payroll provider. No landlord or insurer has quoted a price, and the lease waits for the city to confirm the use is allowed on the site.
- No income tax is charged, because the corporation expects 501(c)(3) recognition. The IRS generally dates exemption back to formation when the application comes in within 27 months, but no determination exists at the plan date. Nothing is borrowed, so there is no interest and no debt-service ratio.
- Receivables average 45 days across all revenue. The county pays 60 to 90 days after the invoice, and the plan uses about 65; at 68% of Year 1 revenue that blends to about 45 days with grants and gifts paid on receipt. A disallowance reserve of $12,000 in Year 1, growing to $16,000, covers spending that a funder later rejects.
- Operating cost per occupied bed-night, before depreciation and start-up costs, is $173 in Year 1 while beds fill, then $150, $156, $165 and $170 in Years 2 to 5. Pay raises and the month-34 aftercare post explain the climb from Year 3. Revenue per occupied bed-night is $159 in Year 1 and $165 in Year 3. The county agreement alone covers 62% of the Year 1 cost per night and 73% of the Year 3 figure. No sourced figure for other shelters was found, so none is compared.
Revenue by funding source
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| City and county interim-housing agreement (per occupied bed-night, restricted) | $1,659,722 | $2,241,264 | $2,333,594 | $2,403,602 | $2,475,710 |
| Federal pass-through: Emergency Solutions Grant (fixed award, restricted) | $380,004 | $400,000 | $415,000 | $430,000 | $445,000 |
| Foundation grants (restricted) | $295,000 | $360,000 | $380,000 | $400,000 | $420,000 |
| Individual and corporate giving (without restrictions) | $110,000 | $190,000 | $225,000 | $255,000 | $280,000 |
| Total revenue | $2,444,726 | $3,191,264 | $3,353,594 | $3,488,602 | $3,620,710 |
| Growth on prior year | – | 31% | 5% | 4% | 4% |
The bed-night agreement supplies 68% of Year 1 revenue and 68% of Year 5, which makes full beds the budget's central dependency. The federal pass-through slips from 16% to 12% of revenue because its award is fixed while bed-night revenue grows. Foundation grants hold near 12%. Giving rises from 4.5% to 7.7% and is the only line the board can redirect. Year 2 grows 31% on Year 1, almost entirely because Year 1 averages 70% occupancy against 92% in Year 2.
Month by month in the first year
| Month | City and county interim-housing agreement (per occupied bed-night, restricted) | Federal pass-through: Emergency Solutions Grant (fixed award, restricted) | Foundation grants (restricted) | Individual and corporate giving (without restrictions) | Total revenue | EBITDA |
|---|---|---|---|---|---|---|
| Jan 2027 | $50,220 | $31,667 | $85,000 | $5,500 | $172,387 | ($46,378) |
| Feb 2027 | $68,947 | $31,667 | $0 | $5,500 | $106,114 | ($106,253) |
| Mar 2027 | $100,440 | $31,667 | $0 | $6,600 | $138,707 | ($76,806) |
| Apr 2027 | $116,640 | $31,667 | $100,000 | $6,600 | $254,907 | $28,176 |
| May 2027 | $136,598 | $31,667 | $0 | $6,600 | $174,865 | ($44,139) |
| Jun 2027 | $145,800 | $31,667 | $0 | $6,600 | $184,067 | ($35,825) |
| Jul 2027 | $160,704 | $31,667 | $85,000 | $5,500 | $282,871 | $53,440 |
| Aug 2027 | $168,739 | $31,667 | $0 | $5,500 | $205,906 | ($16,095) |
| Sep 2027 | $169,128 | $31,667 | $0 | $6,600 | $207,395 | ($14,749) |
| Oct 2027 | $180,792 | $31,667 | $25,000 | $8,800 | $246,259 | $20,363 |
| Nov 2027 | $176,904 | $31,667 | $0 | $17,600 | $226,171 | $2,214 |
| Dec 2027 | $184,810 | $31,667 | $0 | $28,600 | $245,077 | $19,295 |
Money arrives in lumps: grant installments in January, April, July and October, and gifts in November and December. EBITDA is positive in April, July, October, November and December and negative in the other seven months. February is the low point, a loss of $106,253, with the January grants spent and only 38% of beds filled. Month-end cash bottoms out in Jul at about $294,000, roughly 1.3 months of costs, after setting aside 45 days of receivables.
Staffing and payroll
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Executive Director | $118,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Program Director (shelter manager) | $82,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Case manager A | $60,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Case manager B | $60,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Case manager C | $60,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Case manager D | $60,000 | Month 6 | 1 | 1 | 1 | 1 | 1 |
| Housing navigator | $58,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, day A | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, day B | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, day C | $48,000 | Month 4 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, evening A | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, evening B | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, evening C | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, evening D | $48,000 | Month 4 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, night A | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, night B | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, night C | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, night D | $48,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Shelter monitor, night E | $48,000 | Month 7 | 1 | 1 | 1 | 1 | 1 |
| Relief monitor A (part time) | $24,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Relief monitor B (part time) | $24,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Relief monitor C (part time) | $24,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Relief monitor D (part time) | $24,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Shelter nurse (part time, 20 hours a week) | $52,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Kitchen lead | $52,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Cook A | $44,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Cook B | $44,000 | Month 4 | 1 | 1 | 1 | 1 | 1 |
| Kitchen assistant | $40,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Facilities technician (part time) | $32,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Bookkeeper | $36,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Development manager | $68,000 | Month 4 | 1 | 1 | 1 | 1 | 1 |
| Peer navigator (lived experience) | $52,000 | Month 18 | – | 1 | 1 | 1 | 1 |
| Second senior case manager (aftercare) | $64,000 | Month 34 | – | – | 1 | 1 | 1 |
| Total payroll incl. on-costs | $1,779,470 | $1,965,863 | $2,013,700 | $2,074,660 | $2,074,660 |
The Executive Director, Program Director, two case managers, a housing navigator, nine monitors, a kitchen lead, a cook and a kitchen assistant start at opening, after a December training month. Relief monitors, a nurse and a facilities technician are part time. Hiring follows the bed count: a third case manager in month 3, a second cook and two monitors in month 4, a fourth case manager in month 6 and a twelfth monitor in month 7. A part-time bookkeeper arrives in month 3, when the first agency invoices and reports fall due, and a development manager in month 4. The peer navigator (month 18) and the aftercare case manager (month 34) follow funding the board expects. Year 1 ends with 24 full-time and 7 part-time staff, and the table counts part-time posts as half. The Executive Director's $118,000 is already in the costs, so every surplus line is after that salary.
Income and expenses over five years
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $2,444,726 | $3,191,264 | $3,353,594 | $3,488,602 | $3,620,710 |
| Direct resident costs (food, hygiene supplies, linen, transit passes, client assistance) | ($236,014) | ($308,085) | ($323,756) | ($336,790) | ($349,544) |
| Gross profit | $2,208,712 | $2,883,179 | $3,029,838 | $3,151,812 | $3,271,166 |
| Payroll incl. on-costs | ($1,779,470) | ($1,965,863) | ($2,013,700) | ($2,074,660) | ($2,074,660) |
| Rent | ($288,000) | ($296,600) | ($305,500) | ($314,700) | ($324,100) |
| Utilities | ($84,000) | ($86,500) | ($89,100) | ($91,800) | ($94,500) |
| Marketing | ($42,000) | ($45,000) | ($48,000) | ($50,000) | ($52,000) |
| Insurance | ($62,000) | ($64,500) | ($67,000) | ($69,500) | ($72,000) |
| Professional fees | ($68,000) | ($72,000) | ($75,000) | ($78,000) | ($81,000) |
| Software subscriptions | ($24,000) | ($26,000) | ($27,500) | ($29,000) | ($30,500) |
| Repairs, pest control and janitorial supplies | ($34,000) | ($38,000) | ($41,000) | ($43,000) | ($45,000) |
| Training, background checks, recruitment and staff wellness | ($18,000) | ($19,500) | ($20,500) | ($21,500) | ($22,500) |
| Phones, internet, office supplies and sundry | ($14,000) | ($15,000) | ($15,500) | ($16,000) | ($16,500) |
| Bed, locker and kitchen equipment replacement | $0 | ($12,000) | ($16,000) | ($18,000) | ($20,000) |
| Allowance for disallowed or unreimbursed costs | ($12,000) | ($15,000) | ($15,000) | ($16,000) | ($16,000) |
| Annual pay raises (3% a year) | $0 | ($58,976) | ($122,634) | ($192,377) | ($260,388) |
| EBITDA | ($216,758) | $168,240 | $173,404 | $137,275 | $162,018 |
| Depreciation | ($98,000) | ($98,000) | ($98,000) | ($98,000) | ($98,000) |
| Interest | $0 | $0 | $0 | $0 | $0 |
| Income tax | $0 | $0 | $0 | $0 | $0 |
| Net income before start-up costs | ($314,758) | $70,240 | $75,404 | $39,275 | $64,018 |
| Start-up costs expensed at opening (legal, permits, licensing, launch outreach, pre-opening payroll, lease deposit) | ($234,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($548,758) | $70,240 | $75,404 | $39,275 | $64,018 |
Year 1 closes $216,758 short at EBITDA, $314,758 short after depreciation and $548,758 short once the $234,000 of start-up costs is counted; the reserve exists for exactly this. Year 2 turns a surplus of $70,240 (2.2% of revenue). Year 3 is $75,404 (2.2%), Year 4 eases to $39,275 (1.1%) as pay raises mount, and Year 5 is $64,018 (1.8%). Pay raises cost $260,388 a year by then. Surpluses stay in the reserve. Payroll is 73% of Year 1 revenue and 63% to 65% in later years. These margins are thin by design; a nonprofit is not trying to maximize them.
Cash and the reimbursement lag
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($742,463) | $79,163 | $154,035 | $121,166 | $146,255 |
| Fit-out and equipment | ($650,000) | $0 | $0 | $0 | $0 |
| Funding received | $1,830,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | $0 | $0 | $0 | $0 | $0 |
| Owner distributions | $0 | $0 | $0 | $0 | $0 |
| Net change in cash | $437,537 | $79,163 | $154,035 | $121,166 | $146,255 |
| Closing cash | $437,537 | $516,699 | $670,734 | $791,900 | $938,155 |
Cash ends every year above zero. The year-end low is $437,537 in Year 1, after $742,463 of cash used in operations (which includes the $234,000 of start-up costs) and $650,000 spent on fit-out and equipment. Money owed by the county and funders ($301,405 at the end of Year 1, $446,389 at the end of Year 5) rises with revenue and ties up cash. Year-end cash builds to $938,155 by Year 5, which is 2.0 months of costs in Year 1, 2.5 in Year 3, 2.8 in Year 4 and 3.3 in Year 5. There is no loan or credit line.
Balance sheet and net assets
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $437,537 | $516,699 | $670,734 | $791,900 | $938,155 |
| Accounts receivable | $301,405 | $393,444 | $413,457 | $430,102 | $446,389 |
| Fit-out and equipment (net) | $552,000 | $454,000 | $356,000 | $258,000 | $160,000 |
| Total assets | $1,290,941 | $1,364,143 | $1,440,191 | $1,480,002 | $1,544,544 |
| Accounts payable | $9,699 | $12,661 | $13,305 | $13,841 | $14,365 |
| Borrowings (none) | $0 | $0 | $0 | $0 | $0 |
| Paid-in capital | $1,830,000 | $1,830,000 | $1,830,000 | $1,830,000 | $1,830,000 |
| Retained earnings | ($548,758) | ($478,518) | ($403,114) | ($363,839) | ($299,821) |
| Total liabilities and equity | $1,290,941 | $1,364,143 | $1,440,191 | $1,480,002 | $1,544,544 |
Break-even and coverage
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -8.9% | 5.3% | 5.2% | 3.9% | 4.5% |
| Net margin (before start-up costs) | -12.9% | 2.2% | 2.2% | 1.1% | 1.8% |
| Payroll incl. pay raises as share of revenue | 73% | 63% | 64% | 65% | 64% |
| Revenue per full-time equivalent at year end | $88,899 | $111,974 | $113,681 | $118,258 | $122,736 |
| Average monthly revenue | $203,727 | $265,939 | $279,466 | $290,717 | $301,726 |
| Monthly revenue needed to cover operating costs | $223,720 | $250,421 | $263,472 | $278,055 | $286,782 |
| Debt service cover (EBITDA / interest + principal) | – | – | – | – | – |
In the last two rows, average monthly revenue should sit above the figure needed to cover operating costs at the plan's revenue mix. Year 1 falls short ($203,727 against $223,720), and Years 2 to 5 clear it: $265,939 against $250,421, $279,466 against $263,472, $290,717 against $278,055 and $301,726 against $286,782. Holding grants and giving fixed and moving only bed-night revenue gives break-even occupancy of about 84% in Year 2, 85% in Year 3, 87% in Year 4 and 86% in Year 5, against 92% to 93% planned, a cushion of 6 to 8 points. The two measures ask different questions, so their answers differ. With no borrowing, there is no debt-service ratio.
A 15% shortfall in bed-nights and grants
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $2,078,017 | $2,712,574 | $2,850,555 | $2,965,312 | $3,077,604 |
| Net income before start-up costs | ($438,233) | ($26,735) | ($46,649) | ($24,376) | ($5,163) |
| Net income after start-up costs | ($672,233) | ($26,735) | ($46,649) | ($24,376) | ($5,163) |
| Closing cash | $357,818 | $353,367 | $388,254 | $448,186 | $527,625 |
Every revenue line drops 15% in every year, whether from fewer referrals, a lapsed grant or both. The board responds by closing a 12-bed wing, which removes an evening monitor, an overnight monitor, a case manager and the second cook, by never hiring the aftercare case manager, by starting the bookkeeper two months late and the peer navigator six months late, by cutting marketing 20%, and by taking a 20% cut to the Executive Director's pay. The kitchen keeps its lead, a cook and the assistant. The shelter still posts a deficit every year, from $672,233 after start-up costs in Year 1 to $5,163 in Year 5. Cash remains above zero, with a floor of $353,367 at the end of Year 2, about 1.5 months of costs. Net assets finish Year 1 at $1,157,767. A 15% shortfall is survivable with this response; a deeper one would need the board to close more beds or find new money. With no response at all, the same shortfall leaves $149,986 in cash at the end of Year 1 and a negative ($189,967) balance at the end of Year 2.
Sources
- Los Angeles Homeless Services Authority, 2026 Greater Los Angeles Homeless Count (released July 24, 2026), as reported by Fox LA.
- Electronic Code of Federal Regulations, 24 CFR 576.403 (ESG shelter standards) and 24 CFR 576.201 (ESG matching contributions).
- Electronic Code of Federal Regulations, 2 CFR 200.501 (single audit threshold of $1,000,000 in federal awards).
- Bureau of Labor Statistics, Social and human service assistants, Occupational Outlook Handbook, May 2025 wage data.
- California Attorney General, Registry of Charitable Trusts, and its Nonprofit Integrity Act audit requirement summary (2004 summary; the board confirms the current Government Code section 12586).
- California Labor Code section 6401.9 (SB 553) workplace violence prevention plans, per a law-firm summary; a secondary source.
- IRS, Application for recognition of exemption (27-month window).
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