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CMHS: Investment Summary

Center for Multicultural Human Services

Fact Sheet  |  Leadership  |  Investment Summary  |  Impact Summary »

Please note: this Investment Summary represents VPP's perspective at the time of the investment agreement, September, 2002.

In September, 2002, Venture Philanthropy Partners entered a multi-year investment partnership with the Center for Multicultural Human Services (CMHS), a dynamic mental health and social service organization that is serving thousands of refugee and immigrant families in Northern Virginia by helping them become full participants in American life. VPP will provide up to $2,750,000 in total funding over a four-year period and provide significant non-financial support to augment this funding, bringing VPP’s total funding for CMHS to $3,005,000 (VPP provided $255,000 to CMHS for comprehensive planning in 2002). The non-financial support will include strategic management assistance; the leverage of VPP’s investors, board, advisors, and other contacts; and direct engagement in initiatives such as the development of information systems. This funding is contingent upon CMHS’s achievement of agreed-upon milestones (outcomes, outputs, and organizational accomplishments) and the continued validity of the key assumptions upon which this partnership has been based.

OPPORTUNITY
The VPP investment partnership will help CMHS achieve its vision to be recognized locally, nationally, and internationally as a leader in helping at-risk children and families from low-income and diverse cultural backgrounds overcome the obstacles that prevent them from achieving healthy functioning. CMHS hopes to expand its services to benefit significantly more children and families; refine its model for services to at-risk children from multicultural backgrounds to achieve greater effectiveness and impact; and provide consultation and training services to help to adapt and replicate its model regionally, nationally, and internationally. More specifically, the CMHS vision for 2007 includes:

  • Increasing the number of children receiving extended developmental services from a current 785 children annually in Northern Virginia to 2,500 children annually throughout the National Capital Region, including establishing new branch offices in Montgomery County, MD; Washington, DC; and Herndon VA. Without VPP's support, the expected growth would likely be approximately 1,300 children and only one branch office.
  • Deepening the level of services received by children to ensure that larger numbers transition from “at-risk” levels to “thriving” instead of movement only to “vulnerable” or “stable” status. This will involve developing outcome measures for all services provided and the ability to produce research data documenting intervention/treatment effectiveness.
  • Providing consultation and training to professionals in the US and abroad on the CMHS model of services for at-risk children from multicultural backgrounds, including development of well-defined, replicable therapeutic interventions to help children traumatized by displacement, war, or abuse achieve their full potential. This would serve not only as a revenue-generating activity, but also as a way to fill the gap regionally for children unable to receive direct services from CMHS.

In summary form, CMHS's milestones for the first 18-month period of its VPP partnership are:

  • Outcomes: Produce a significant, measurable improvement in the lives of 1,650 children.
  • Outputs: Serve a total of 10,350 individuals in the DC region and train 900 individuals to provide more effective services to culturally diverse children and families.
  • Organizational Accomplishments: Strengthen management, board, outcomes assessment, fund development, and information systems.

INVESTMENT RATIONALE

  1. Pressure point for change: The Washington metro area has become one of the top destinations for immigrants to the US/ The diversity of the immigrants in the area is the greatest in the nation. The majority of this flow has been to the suburbs, with more than two-thirds of the population growth (750,000 people) in the last 20 years in Northern Virginia alone attributed to immigrants and their offspring. The emotional and environmental problems many of these children face and their resulting inability to succeed have created an environmental pressure point for change. Culturally appropriate services to low-income children and families that represent a variety of ethnic backgrounds and cultures are limited in the region. CMHS fills a critical gap by providing services to a large number of low-income, cultural minority populations and by specializing in mental health and developmental work with these children and families.

  2. Leadership, management, and staff: CMHS has the leadership and staff to take the organization to the next level. The executive director, Dennis Hunt, built the organization from six employees with a $200,000 budget to its current size. His leadership and vision have drawn an outstanding group of professionals, highly regarded in the community. The members of the first-class multicultural staff at CMHS speak 30 languages and over half have advanced graduate degrees, many in clinical and child psychology. Thoughtfulness, dedication, and adaptability characterize the leadership team and staff. They have demonstrated performance in their work and have the organizational foundation to build a stronger, more sustainable organization.
  3. Demonstrated performance and proven model: Administrators from the schools in which CMHS provides services describe CMHS staff’s unique ability to deal with the difficult issues faced by children who experience the trauma of displacement, war, or gang violence. In the words of one, having CMHS to help students work through these issues helps teachers to focus on instruction and children on learning. While children in the school-based program and in the Child and Adolescent Clinical Program receive pre- and post-tests tracking a child’s progress, CMHS has not had the resources to develop an evaluation system to rigorously demonstrate its model. An indirect measure of its performance is the reputation it has eared in the community for its services. In fiscal year 2000/2001 It was voted Outstanding Nonprofit of the Year by Leadership Fairfax, voted Outstanding Volunteer Program of the Year by Volunteer Fairfax, featured by Washingtonian magazine as one of 16 agencies that use donated funds well, and recognized for outstanding services to the community by AYUDA in Washington, DC

  4. Receptivity: The CMHS leadership exhibits openness to and eagerness for the VPP high-engagement approach, recognizing a strong need for organizational capacity development and an interest in business management practices. The newly appointed board chair brings a business background to the organization. It appears CMHS would benefit from and leverage a partnership with VPP.

  5. Reputation and position in community: CMHS is recognized in the community as uniquely positioned to help at-risk multicultural children overcome obstacles that prevent them from developing their full potential. It is a trusted agent within the community it serves. In a recent series of testimonials, representatives from a range of agencies dealing with immigrants or mental health issues all consistently praised the outstanding services provided by CMHS for children from low-income, multicultural backgrounds.


USE OF FUNDS AND SUPPORT
VPP’s funding and non-financial support is aimed at helping CMHS strengthen its organizational capacity, allowing CMHS to increase its scale and improve outcomes for the clients it serves. Specific areas of focus include:

Capacity
  • CMHS will put in place the organizational leadership to effectively execute its mission and vision.
  • CMHS will create a board that is recognized as highly effective by its peer organizations and by effectiveness-awards groups.
  • CMHS will put in place the information systems and outcomes measurement processes to ensure that its services are of high quality.
  • Through management and technology improvements, CMHS will become a model of nonprofit cost-effectiveness, allowing it to utilize a high percentage of its revenues for client services.
  • CMHS will put in place the funds-development capability and cash reserves to ensure its long-term sustainability.
  • The excellence and distinctiveness of the work done at CMHS will become widely recognized, allowing the agency to attract the funds needed to maintain and expand its service capacity.

Accomplishing these infrastructure-improvement goals will permit CMHS to:

  • Produce replicable, evidence-based interventions demonstrating a significant, measurable improvement in the lives of 6,800 children.
  • Provide access to critically needed, culturally appropriate mental health, educational, and social services to more than 28,000 children and adults in the metropolitan Washington area.
  • Train more than 4,500 individuals to apply evidence-based, culturally appropriate intervention strategies to more effectively serve vulnerable, ethnically diverse children and families.
  • Implement an outcomes measurement system to monitor and improve the effectiveness of the interventions.
Reputation
  • CMHS strives to become one of the most prestigious and sought-after placements for graduate student interns and externs around the country.
  • CMHS strives to be recognized for playing a major role in solidifying the reputation of the Greater Washington region as a model multicultural community.

INITIAL PLANNING PHASE
The initial planning phase began in March 2002, with the formal planning effort lasting from March 8, 2002 to June 18, 2002. McKinsey & Co. led the effort in conjunction with a planning team made up of CMHS board members, CMHS staff, and two VPP representatives. A staff working group helped provide information for the effort. In the planning phase, CMHS:
  • Reviewed its current internal and external situation;
  • Revisited its mission, set aspirations, and defined strategy;
  • Identified priority initiatives and resources required; and
  • Developed an implementation plan and communicated findings.

The planning effort included planning-team meetings, board reviews, interviews, site visits, and focus groups and entailed hundreds of hours of collective working time. The planning team enthusiastically embraced the planning effort, discussed and resolved very difficult issues, and now CMHS Executive Director Dennis Hunt and the entire CHMS team “own” the plan. The full board has participated in the planning effort and supports the plan wholeheartedly and understands the intensity of effort it will take to accomplish the ambitious goals it has set.

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