8. Financial Plan
Expenses will differ slightly for each of the three phases.
This phase will last three months with expenses totaling $45,725.
- Personnel ($45,725)
- Two full-time staff
- Each receives $3350 monthly salary or $40,200 per year; plus 25% in
fringe benefits; plus two months pay up-front
- Consulting fees
- Legal: 40 hours at $250 per hour
- Bookkeeper: $750 per month
- Payroll service: $100 per month
- Training and marketing material will be designed, but the costs are
accounted for in Pilot Phase
This phase will last six months with expenses totaling $76,945.
- Personnel ($58,350)
- Two full-time staff
- Each receives $3350 monthly salary or $40,200 per year; plus 25% in
fringe benefits
- Consulting fees
- Mentor Consultants: $3000 for one-time training event
- Bookkeeper: $750 per month
- Payroll service: $100 per month
- Marketing materials ($600)
- Program costs, based on costs per mentor-mentee pair x 40 pairs
($3,800)
- Slack, 10% of above costs ($6995)
This phase refers to the fixed costs per year, not counting variable
program costs, with expenses totaling $106,800.
- Personnel ($105,600)
- Two full-time staff
- Each receives $3350 monthly salary or $40,200 per year; plus 25% in
fringe benefits; plus two months pay up-front
- Consulting fees
- Bookkeeper: $750 per month
- Payroll service: $100 per month
- Marketing materials ($1200)
- Program costs, depends on how many mentor-mentee pairs
Program costs, or marginal costs per mentor-mentee pair ($95 per year)
- Training materials: $15 per pair
- Activities and special events: $80 per pair per year
The above expense projects are taken as the baseline. It may be possible
to reduce costs through some of the following suggestions:
- We could reduce our expenses by connecting with a psychology or
counseling graduate student to take on the design of educational and
evaluation materials, or possibly the matching and monitoring of
mentor/mentee pairs as part of a thesis or research project.
- We could use volunteers with teaching experience to run the training
program for the mentors.
We will rely on foundation and government grants to cover all expenses
during the Planning and Design Phase and the Pilot Phase and partially
subsidize expenses during Regular Operations Phase, tapering in each of the
first three years. We will seek $150,000 in seed money.
Examples of foundations we will target in applying for grants:
- American Express
- Applied Materials
- Big Ben Foundation
- Community Foundation Silicon Valley
- Ford Foundation
During the first part of the Regular Operations Phase, a large percentage
of our expenses will be covered by payments from the employer and the rest
will be covered by tapering foundation subsidies.
Using the following parameters, the program will be self-sustainable in
three years
- Two full-time staff
- Employer pays 75% salary and full benefits
- The Hub incurs $22,300 in total annual expenses ($20,100 per year for
salaries, $1200 for other expenses (i.e. marketing)
- Employer pays $250 per mentor-mentee pair per year (out of Employee
Training and Development funds)
- Program costs per pair are $95
- Program will begin with 60 pairs in first year, 120 pairs in second
year, 150 pairs in third year
Employer pays for the Hub's services in a combination of three ways:
1a) Co-hiring Staff (preferred)
- Two full-time dedicated program staff
- Employer pays 75% monthly salary and all fringe benefits; the Hub pays
remaining 25% monthly salary
- Reasons why this method of payment should be preferred
- Establish program staff as "insiders," diminishing workplace
politics
- Joint ownership means Employer benefits from dynamic knowledge and
best practices that come from the Hub's network of program's
- May be easier to budget extra personnel costs that new program
costs
- Reasons why this method may not be preferred
- May complicate book-keeping, taxes, benefits
1b) Service Fees
- Equivalent to 75% monthly salary and all fringe benefits
2) In-Kind Payments
- Employer provides office space for the two dedicated program staff, as
well as office supplies, telecommunications, computer hardware, and
desktop publishing software
3) Employee Training and Development Funds
- Employer uses Employee Training and Development Funds to cover the
marginal costs of each additional mentor-mentee pair (see ). In the
Stanford pilot, STAP funds could be used to this end.
- Budgeting 25% of total salaries for Fringe Benefits
- Budgeting 0% for Taxes, due to 501(3)(c) status
- Employer will provide office space, office supplies, computer hardware,
desktop publishing software, telecommunications
- Costs per pair per event are estimations and may be decreased depending
on the event and with group discounts.
- Marketing materials assume 10 cents per flyer.
