Career Closet

http://www.careercloset.org

San Jose and San Mateo, CA

Round –

Spring 2005

Project Type –

Full team

Project Focus –

Cost Analysis, Operations Review

Organization Type –

Women

Organization

Career Closet is a volunteer-based nonprofit organization that empowers economically disadvantaged women by providing suitable clothing and other services to ensure success in gaining and retaining employment, to enhance career development, and to improve family stability. Almost all clothing is donated; undergarments and plus-size clothing are purchased when necessary.

Project Objectives

ACT was asked to review the operations of Career Closet and to help the executive director improve and streamline operations. Specifically, ACT was commissioned to ensure financial stability, to evaluate the infrastructure and systems to determine appropriate staffing needs, and to expand visibility by developing key contacts and relationships.

Project Overview

Research: Review current operational model, research similar nonprofits, and interview board members and key stakeholders
Analysis: Competitive and financial analysis and development of metrics and controls
Recommendation: Review of findings and development of key changes to Career Closet's operational model and board governance

Key Recommendations

ACT assigned highest priority to resolving the budget gap that was discovered during its financial review. ACT recommended immediate action in the following three areas:

Reduce operating costs by finding a rent-free facility or shifting to a volunteer executive director
Increase income through board-led fundraising campaign and volunteer-led sales of excess clothing
Sell designer and excess clothing rather than give it away
Simplify operations

ACT also recommended the following steps, once financial stability is achieved:

Make operational models and procedures consistent across centers
Develop a set of financial and program metrics to help board and management track and spot trends
Solicit donations of new clothing to fill in shortages of certain styles and sizes
Assign executive director the responsibility of building relationships with key stakeholders
Review board members' skill sets and recruit board candidates to fill in gaps, especially in fundraising and financial analysis
Find a location that would be more accessible for clients

Useful Items

Templates for monthly reporting and tracking: