The Future of SOC: Part Two - Built to Last

Sustainability
Have you ever wondered how SOC pays for its incredible, quality programs? Years ago, nearly all of SOC’s programs were paid for by a combination of government grants and private donations. When SOC’s expenditures exceeded funding, the SOC board of trustees had hard decisions to make- reduce the size of the program and services, limit the amount of seniors that could be served, or dip into SOC’s reserve funds. Not wanting to turn away seniors in need or reduce the quality of SOC’s programs, often times SOC did continue to sustain programs through its reserve funds.

This is not a sustainable way to do business because resources are always limited, eventually reserve funds run out. The Future of SOC: Part One, discussed the rapid increase of the senior population in tandem with a decrease in all other age groups. This means more seniors will require SOC’s services with no promise that government funding or private donations will increase at the same rate.

A New Model
Several years ago, SOC began operating under a new business model; one which would allow us to provide more services to seniors while also becoming more self-sustainable, ensuring that SOC is here for generations of seniors to come. Over the next several years, SOC will be moving a majority of its programs to a fee based system for services.

In 2006, SOC applied this model to its Home Repair program. Historically, any senior under a certain income level received government subsidies for minor home repairs and snow removal. Everyone paid the same rate, and SOC and the federal government paid the balance. The problem was, SOC could only serve a small portion of low income seniors who needed home repair services. No seniors of moderate income that could also benefit from such services were served. After SOC adjusted the program to charge for services on a sliding scale according to income, approximately 40% of seniors who participate in the Home Repair program and can afford it, pay fair market value or slightly less for the high quality home repair services for which SOC is known. In addition, SOC has doubled the number of seniors who receive home repairs in our community!

Giving seniors the opportunity to pay for the services they receive from SOC according to ability not only makes the program sustainable, it provides a consistent revenue stream so that SOC can continue to serve those who need help paying for SOC's services. Everybody wins. When a senior purchases services from SOC, they know that the money they are spending buys a quality service while also helping others who can't afford these same services. In addition, seniors are able to vote with their wallets. Services that they value will continue to be offered by SOC, whereas other less valued programs will be eliminated.

With the new business model, there is virtually no limit to how many seniors SOC can serve in the Grosse Pointes and Harper Woods. The new business model means that SOC will not only be able to continue to serve senior citizens, but brings the promise of being able to increase our services throughout the community and accommodate the growing number of seniors.

However, SOC's current location is inadequate today and simply does not allow for any growth in programs at all. The way SOC can achieve significant growth and sustainability is to add considerably to its volunteer pool and staff, but the current facility lacks available space to accommodate additional people. The community and SOC's leadership had a serious choice to make - stay at a point fixed in time or build a senior center that will be on par with other communities in southeast Michigan.

Return to main Vision page for Part Three - The Vision.