2023 Financial Report: Words from Rocky Coppola

From the 2024 Annual Report.

As the Chairman of the Finance Committee and a member of the Tender Mercies’ Board of Trustees, I would like to share with you our 2023 financial successes and upcoming challenges we face as an organization.

In 2023, Tender Mercies grew total net assets to $21.6 million, a 3.2% increase from 2022.

You may ask, “What are net assets?” Our net assets consist of three primary items:

1. Cash, cash equivalents, and cash reserves ($5.6 million)

2. Endowment funds ($4.0 million)

3. Property and equipment, net of depreciation and current/long-term notes payable ($13.9 million).

In 2023, net assets were positively impacted from increases in the equity markets that increased the endowment portfolio balance by approximately $552,000 before endowment withdrawals.

As you can imagine, the financial life blood of most non-profit organizations is cash flow. From a cash flow perspective, our cash flow balances remain strong and within our cash-on-hand policy as established by the Finance Committee and reviewed with the Board.

Moving forward, Tender Mercies is well positioned to execute the Strategic 10-year plan it has developed; however, emphasis will need to be placed on sustainable ways of securing additional and diverse funding sources. This is nothing new for any nonprofit, and Tender Mercies is fortunate to operate with an emphasis on financial efficiency.

During the last two calendar years we have kept management and general expenses below 10% of total support and revenue, and program expenses have been approximately 84% of total. Most organizations that monitor nonprofits look for 75%-80% of total expenses to be spent on program expenses (DWD CPAs & Advisors). Our financial efficiency speaks to the great work being done by our Tender Mercies’ staff.

I want to thank our Partners of Hope, donors, volunteers, and Board of Trustees for their commitment to Tender Mercies. By giving your talents, time, and/or treasures, you are helping to make our community a better place.

Tender Mercies 2023 Financials

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The proper stewardship of the donations we receive is among he highest priorities for Tender Mercies. As evidenced above, we are committed to stretching every dollar as far as we can to help those in need.

We invite you to join the thousands of donors who support the work we do by donating to our work today.

Meet Miss Sunshine, Meet Edson

The following profiles are part of Tender Mercies’ ongoing profile series, which seeks to give a face to the stories we tell and the lives Tender Mercies seeks to change. Content may include details that some may find triggering or challenging. It is our intention to tell stories of the residents of Tender Mercies with sensitivity and dignity and truth. These are real people who have overcome real challenges, and we hope they inspire you to act and advocate.

Meet Cheryl

“I’m not gonna let [my past] defeat me.”

Just over seven months ago, Cheryl learned something new: how to ask for help. Addicted to drugs for over 40 years, “Miss Sunshine,” as she’s known around her building, is a grandmother, a graduate of First Step Home’s outpatient addiction recovery program, and a resident of Tender Mercies.

“I used to believe my life’s mission was to be an example of what not to do,” says Cheryl. “Now, I want to leave a legacy.”

Today, you can find Cheryl working diligently to better herself. Because of the supportive housing Cheryl received, she has been able to recover from her addiction in security while building and maintaining her sense of self-respect.

“I’m not gonna let [my past] defeat me,” she says.

Your donation will ensure the best possible future for people like Cheryl – people working to grow from their past and achieve their highest level of independence.

“I’m so glad God got me to Tender Mercies. Thank God I’m in a safe place.”

Meet Edson

“Tender Mercies is a community of people who are caring and understanding.”

Edson has a slight frame and a meek voice, as well as an incredible spirit and wonderful sense of humor. He has been a resident of Tender Mercies since 2007 but most recently has made important, meaningful progress in his journey to independence since moving into his new apartment at Slater Hall.

The new space has been a breath of fresh air. The additional independence that comes from not having to share a bathroom and kitchen with 20 neighbors has afforded him a mental clarity critical to his continued recovery. His room is cleaner, his outlook is more positive, and he’s even considering part-time work for the first time in a long time.

“Tender Mercies has given me a home, and a community and stability, rather than the chaos I was used to,” says Edson.

Tender Mercies is honored to be the premiere provider of permanent supportive housing in our region. The wrap-around services we provide have ensured Edson has access to social security benefits, medication, and, above all, dignity.

“Tender Mercies is a community of people who are caring and understanding,” he says.

A Letter from Russ

Dear Friends,

This year’s early Spring mirrors the kind of changes 2024 has already brought to Tender Mercies:

• In January, thirty current residents of Tender Mercies packed their bags and moved across downtown to our newest building, Slater Hall, in Cincinnati’s historic West End.

• In February, we began welcoming more people to the additional units of housing Slater Hall provided.

• And in March, Ed Slater, one of Tender Mercies’ founders, helped to welcome over 100 donors, funders, volunteers and friends to the ceremonial ribbon cutting of Slater Hall.

To put it mildly: Tender Mercies is making important, sustainable progress towards our mission because of your previous support. We are creating housing during a major housing crisis, and we are adding jobs to Cincinnati through the services we provide.

We would never be here today without you. I encourage you to click here to meet two residents of Tender Mercies whose lives have been forever transformed by the security, dignity and community Tender Mercies has provided them.

The need for your support remains great. Over 1,000 people experience the brutality of homelessness each night in Hamilton County. Your support provides a caring home, dignified housing, and essential support services. Together, we create a foundation on which people rebuild their lives and achieve their highest level of independence.

Please, make a meaningful donation to Tender Mercies today.

Your support will make all the difference to those in need.

In Gratitude,

Russell Winters

CEO, Tender Mercies Inc.

More than a Home: Kandy's Story

More than a Home

It’s a Thursday morning when we speak with Kandy to chat about her experience at Tender Mercies. She’s just woken up but she’s excited to tell her story. We’re approaching her third anniversary of her sobriety and she mentions it within moments of starting our conversation.

“I’m working on me, you know?” Kandy asks. “I was miserable [when I was drinking]. It made it hard for me to love myself.”

In addition to childhood neglect, Kandy is a victim of domestic violence and other traumas, making the security she experiences here all the more important to her. People whose lives lack security often cannot work on the factors which led them to experience homelessness.

“This is my home,” she says. “Tender Mercies gave me the stability to work on me. It gave me structure.”

That stability allowed Kandy to kick an almost 30-year drinking habit. Her alcoholism affected all of her personal and professional relationships, and she experienced homelessness multiple times before coming to Tender Mercies.

But with the help of Tender Mercies’ supportive services, Resident Support Workers, and community of residents, Kandy has learned how to love and respect herself. Her sobriety means that Kandy is a completely different person today than when she came here three years ago. According to Tender Mercies staff, Kandy has done a 180-degree turnaround and the joy she is able to express is palpable — not something that would have been said upon her arrival.

That is the transformative power of Permanent Supportive Housing. When individuals are given access to the kind of stability, security, and dignity provided by Tender Mercies, they are give the opportunity to change the trajectory of their life.

Today Kandy enjoys walking and listening to the radio, and spends her days making art and working on herself.

“I made it this far,” she said. “I can go further.”

We cannot wait to see how far Kandy will go, and are proud to be her cheerleaders along the way.

This story has been adapted for the web from our 2023 Annual Report, which can be read in full here.

What is Permanent Supportive Housing?

Tender Mercies primarily provides what is called “Permanent Supportive Housing” (PSH) for adults who have experienced homelessness and who have a documented history of mental illness. But what is it? And who benefits? Read more to find out.

What is Permanent Supportive Housing?

Permanent Supportive Housing is just that – it’s permanent housing for those who have been living on the streets, in shelter, or some other kind of temporary housing. Residents of that housing become permanent members of the community while they recover from experiencing homelessness. Housing is paired with supportive services that seek to seek to help each individual achieve their highest level of independence.

Does PSH work?

Yes! PSH is the “gold standard” for ending homelessness. Research shows that PSH is proven to be the most successful, cost-effective intervention for keeping people housed, while improving health.

Is PSH Shelter?

No. Permanent Supportive Housing differs from shelter, which is a temporary living space intended to ensure individuals experiencing homelessness can ensure their survival.

So people can just live at Tender Mercies forever?

Yes and no. Yes, folks who qualify for PSH will never be asked to leave; however, because the support they receive leads to greater stability, most residents choose to leave after about five years, in order to live more independently. For some residents, Tender Mercies will be their home for the rest of their lives, and it is our honorable duty to provide them with the security, dignity and community they deserve.

Do residents pay rent?

Yes! Residents sign a lease, receive their own key, and pay rent based on a percentage of their income, which is obtained through applying for Medicaid, social security income, and other program benefits. Residents of Tender Mercies never pay more than 30% of their income for housing.

Do residents have to be sober to live in PSH?

Sobriety is neither a requirement nor a prerequisite for housing. This evidence-based “Housing First” method seeks to create a stable environment for people regardless of sobriety so they have the space to confront the issues that led them to experience homelessness in the first place.

Who benefits from PSH?

Everyone. Municipalities focus resources on proven interventions, those experiencing homelessness receive the housing and security they need to survive, and public services like hospitals, jails and the justice system experience less strain from the pain and desperation homelessness proliferates.