APPLICATION: 2017 SOCIAL ENTERPRIZE - Furniture Link Inc.
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APPLICATION: 2017 SOCIAL ENTERPRIZE
The Social EnterPrize seeks to celebrate and advance leadership and excellence in social
entrepreneurship across Canada.
Completed applications are due by email to socialenterprize@tricofoundation.ca by 4 pm MST, April
18, 2017.
Eligibility Requirements:
• Must be an organization headquartered in Canada (can operate outside of Canada);
• Both non-Profit and For-Profit incorporation will be considered;
• The social enterprise has at least 3 years of sales;
• The social enterprise must address a gap in society (i.e. relief of economic exclusion, relief of
poverty, relief of social exclusion, promoting good health or well-being, helping children and/or
youth at risk, relief of the aged/seniors, enhanced quality of education, gender equality, clean
water and sanitation, affordable and clean energy, sustainable cities and communities,
responsible consumption and production, climate action, enhancing life below water or on land,
enhanced peace and justice); and
• The applicant must be taking ‘direct action’ to close the gap in society: “A direct action is one an
actor takes personally in order to bring about a specific desired outcome. An indirect action is
one in which the actor convinces [or helps] another person or entity to take the specific action
that brings about the desired outcome.” For example, consultants, incubators or accelerators,
or associations that achieve social impact solely by helping other social enterprises achieve
social impact, while laudable, do not qualify for the Social EnterPrize;
• All responses must be limited to 250 words per question unless otherwise indicated;
• Completed applications are due by email to socialenterprize@tricofoundation.ca by 4 pm MST,
April 18, 2017.
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Basic Information
Name of the venture 1 FURNITURE BANK
and name of parent
organization (if any):
Address: 25 Connell Court, Unit 1
City: Toronto
Province: Ontario
Postal Code: M8Z 1E8
First and last name of Dan Kershaw
person filling out Executive Director
application: Furniture Bank
Their phone: 905-806-8246
Their email: Dan.Kershaw@furniturebank.org
Form of organization ☒Registered Charity
(check all that apply): ☐Non-profit Society
☐Non-profit Co-operative
☐For-profit Co-operative
☐Unincorporated
☐Other, please specify:
Venture’s CRA # or
Business # (where #87253 1843 RR0001
applicable):
Date of first sale: 2004
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The venture is the social enterprise that is the focus of the application. If there is a parent organization, focus on
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the social enterprise in all the other questions and only add the impact/role of the parent organization when filling
out the partnership section.
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The Social Problem
1) What is the social problem(s) your venture addresses?
Answer:
Furniture Bank is a socially progressive organization tackling the overly prevalent and under-
discussed needs of Canadians who live without the dignity and stability that having sufficient
furniture affords for a healthy and productive life. Furniture Bank matches people searching for
socially responsible ways to transfer their underused belonging to those who are in need of those
belongings.
In short, we are turning houses into homes and providing comfort, steadiness and a strengthened
sense of self-worth to the people who live inside setting them on a path toward true
independence and a better life. In the process, we are also creating opportunities for youth with
barriers to employment, and leading a culture of reuse and recycling, last year alone transferring
over 5,000,000 pounds of furniture and housewares from customers to beneficiaries. Much of
which would have ended up in a landfill.
A furnished home is a new beginning – a way forward. By providing it, we are leading change, and
providing each mother, father, and child the gift of furniture and the potential in each of them it
allows. Our activities provide direct and indirect relief to several society gaps:
• Poverty – providing the needed physical assets to create a home from a shelter.
• Social exclusion – creating a home to welcome friends and family into.
• Good health & well-being – providing a bed to sleep on or table & housewares to eat with.
• Responsible consumption – providing customers certainty that their used furniture will
change a life (in as little as 72 hours!).
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2) What is the cause of the problem(s) and why does it still exist?
Answer:
Furniture poverty, in most cases, affects individuals and families transitioning out of homelessness
or some other form of displacement. A severely limited income forces these populations to
sacrifice household furniture to meet other financial needs like food, rent and utility bills, and
education needs.
On average, it costs between $2000 and $5000 to furnish a home with used furniture. When you
net the average wage from cost of living, a family is left with very little to furnish a home with.
Furniture, by the necessity of daily urgencies, is a lower priority, and often not an option in low-
income households to address.
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Because this furniture deprivation exists behind closed doors, no one hears about it. And while all
levels of government deserve recognition for committing to increase the stock of social housing
there is silence about the key ingredient that makes a house a home - furniture.
Outside of Furniture Bank, there is no acting intermediary between vulnerable populations that
are in the process of re-establishing life with a furnished home and those with unwanted furniture.
Through this provision of furniture, we are giving them the best possible chance to lead lives of
vigor, purpose, and direction. The money saved from receiving free furniture could be used to
purchase food, transportation, meet school and health needs, clothing, etc., with the furniture
itself providing psychological and health benefits and providing financial stability in the first phase
of transition.
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Furniture Bank 2015 Impact Report
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3) How did your venture come to care about this particular social issue?
Answer:
Furniture Bank began in 1998 as an idea of Sister Anne Schenck, Sister of St. Joseph, retired school
principal and Managing Director of a refugee house in Scarborough, when she visited as an invited
dinner guest with a Somali refugee family of five.
While visiting with the family, whose home furnishings included only one milk crate and a pot,
Sister Anne left the dinner and noticed a couch on the curb of the very same building, left for
disposal to the landfill. It was there she conceptualized Furniture Bank as an intermediary between
those transitioning out of displacement and those with unwanted furniture.
In 2004, it became clear a market-based solution would be needed if the quantity of good quality
furnishings and housewares would make it to the charity to match the ever-growing demand of
the cities most vulnerable populations. Our unwillingness to rely on just “drop off donations” and a
regular request of donors looking for us to come collect their in-kind donation led us to a market-
based solution that was synergistic to both customer problems
We realized that our customers “problem” of getting furniture out of their home with little effort
on their part was going to become our client and beneficiaries’ solution. The pickup and delivery
service took off from there.
Speaking with Sister Anne (the Founder) she commented she’d never imagined we would be
exploring how we bring this venture to many more communities across Canada in 2018 and
beyond.
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www.tricofoundation.ca
Your Venture’s Social Model 3
4) Describe your venture’s social model(s)
Answer:
Furniture Bank’s fee-based, professional pickup and transfer service is the cornerstone to
achieving and growing, the organization’s social impact. Currently funding just over 65% of our
operating expenses, these fees quite simply allows us to attract more furniture donations, thereby
increasing the number of clients we serve.
Last year, over 67,000 items of donated furniture came through our doors - the majority of which
were picked up from donors’ homes, helping us improve circumstances for nearly 11,000
individuals. As awareness grows through marketing, word of mouth and partnerships our ability to
welcome more families to be served grows in lockstep.
An important ingredient in how we operate, is our Leg Up employment program that is integrated
into our furniture pickup & delivery service. While our primary client groups are those
transitioning out of homelessness and displacement, Furniture Bank is committed to using our
social enterprise to provide employment, skills, and training for youth and other individuals facing
barriers to employment in roles across the organization. The market-based approach allows all our
participants to be exposed to career enhancing, hard and soft skills that give them a competitive
advantage in their future roles.
Our overriding objective is to ensure that for every Canadian for whom access to the furniture and
housewares they need to live with dignity is a struggle, that they should have access. As we begin
to scale, we have also seen the environmental impacts of waste diversion is being recognized as
well by the local and provincial government.
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The “social mission” is the social good your venture wants to achieve. The “social model” is how your venture
serves its social mission.
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5) Explain why you focus on the particular beneficiary 4 segment you currently serve (include,
where applicable, how your focus has evolved). Please be as specific as possible.
Answer:
The community of recipients that have benefitted from our donors’ gifts of furniture has remained
fairly consistent over the 18 years we’ve been in operation. Our beneficiaries are women and
children escaping abuse, families, and individuals transitioning out of homelessness, fathers and
families in need and newcomers of all stripes, in both the Greater Toronto and Hamilton regions.
All are navigating losses associated with displacement and struggling with the constraints inherent
in moving beyond homelessness and poverty. Also shared amongst them is a need for a fresh start,
which once given allow for fresh beginnings that can encourage paths forward toward
independence and a better life.
Furniture Bank has also grown the skills and logistics to be well suited to manage spikes caused by
crises that on occasion emerge within our community of beneficiaries. In 2015 & 2106 for
example, we saw a major shift in our client base, reflecting the growing number of refugees
making their way out of Syria’s war, to settle in Canada’s peace. Overnight hundreds of families
needed thousands of items of furniture to get a home established – Furniture Bank was there to
work with their Community Agency Partners and settlement agencies.
Irrespective of the beneficiary, a house properly furnished can galvanize the collective benefits
that its beds and dining tables, pots and picture frames afford, and inspire fresh beginnings,
stability, dignity and a focus on joy and on building healthier families and futures. Those same
items left to landfill, inspire nothing.
6) What is your ‘unit of social impact’ (the unit by which you measure and monitor social
impact)? E.g. number of clothing items going to families in need
Answer:
There are four primary measures we track. While the # of beneficiaries served is the primary
measure, the other two touch on some of our secondary objectives as an organization. In
combination, they illustrate the ‘matchmaking’ the social enterprise can accomplish with its
charitable goals:
• The number of Beneficiaries receiving furniture and housewares for their home
• the number of Customers/Donors transferring furniture to Furniture Bank (using the
Social Enterprise or dropping off at our location)
• the quantity of items matched between “Customer” and “Beneficiary.”
• The number of Legup participants at work within our organization.
In addition to these primary metrics, our organization tracks and measures a variety of other
measurements the track the full lifecycle of Customer & Donor, Volunteer, and Beneficiary.
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By “beneficiary” we are referring to the individuals who derive the main social benefit from your venture. By
“customer” we are referring to the individuals who purchase your product or service.
www.tricofoundation.ca
7) List the total units of social impact your venture produced for each of the following years:
• Since our last Trico report, we have grown and scaled significantly now reaching 200%
more Beneficiaries/Clients than we did in 2014. This is matched by a similar growth in
items of furniture collected by the social enterprise.
2014 2015 2016
Individual Beneficiaries/Clients (#): 5,344 7,754 10,773 5
Customers/Donors (#): 5,492 6,441 7,471
Furniture Items Matched (Donor--> Beneficiary) (#): 45,525 63,363 67,393
Legup Participants Employed (#): 11 26 30
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These 10,709 represented 4229 Beneficiary Families (Avg Family size 2.5 people)
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8) How, if at all, has your venture led to an equilibrium shift/transformative change for your
beneficiaries?
Answer:
A transformational shift exists for our clients when the ultimate goal of Furniture Bank is reached,
for members of society to no longer see their gently used furniture as waste and to connect that
furniture to those who need it most. At this point, Furniture Bank acts as the connector between
the donor (customer) and client (beneficiary) directly.
In the meantime, the transformational shift occurs for the beneficiary to allow them to use their
income for more immediate household and settlement needs like housing, food etc and acts as
more than just a hand out to the beneficiary but a gift that allows them to settle into their new
llife with dignity, stability and security of their new home.
Last year nearly 11,000 lives and changed with the gift of furniture. Each story is unique and
provides a glimpse lives changed by the gift of furniture. Enclosed here are seven stories providing
a glimpse into the transformation occurring in society – one person, one family, and one future at
a time:
• Sandra – fleeing abuse, new furniture permitted her to keep her children 6.
• Toni – a student without a desk, having received one, is now attending Harvard 7
• Melanie – received training and experience and now has a woodworking career 8
• Ankush & family – dignity helped them find stability and success in Canada 9
• Renee - a real home is allowing her to pursue her dream of becoming an artist 10
• Kaola – joined her community and found her way out of isolation and loneliness 11
• Martin – brought his family back together 12.
• Anonymous – a life transformed by furniture 13
With each story, we share it back with our customers and donors, who in turn share it with their
friends and family. Growing awareness and reinforcing the essential role Furniture Bank plays in
our community. Taking slow but steady shift in this nations understanding on the importance of
furniture in productive and successful lives.
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Sandra - http://www.furniturebank.org/women-and-children/
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Toni - http://www.furniturebank.org/furniture-donations-toni-story/
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Melanie - http://www.furniturebank.org/youthemployment/
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Ankush - http://www.furniturebank.org/newcomerfamily/
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Renee - http://www.furniturebank.org/client-renee/
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Kaola - http://www.furniturebank.org/how-furniture-donations-helped-kaola-build-a-safe-secure-home/
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Martin - http://www.furniturebank.org/furniture-donation-families/
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Anonymous - http://www.furniturebank.org/what-is-furniturebank/
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Your Entrepreneurial Model
9) If your venture’s customers are different from your beneficiaries, what customer need are
you trying to fill?
Answer:
Waste is a huge and continually growing problem for society and the marketplace. For our
primary customer, the market gap we fill is helping households with unwanted furniture and
housewares, to keep these gently used materials out of the landfill and in a hassle-free,
conscience-gratifying way, transfer them into the homes of agency-vetted people in need.
Furniture Bank matches people searching for socially responsible ways to transfer their underused
belonging to those who need those belongings. While some will take the time and energy needed
to drop off their donated items to our location, most people are not interested in the back-
breaking job of moving furniture. For the same reasons, you might use a "Downsizer" or a "Junk
Company" or even a "Mover" we address the same convenience needs when surplus unwanted
furniture and housewares occupy the home. The synergy that comes from the immediate
connection of a customer’s problem of socially responsible disposal matched directly to families in
need makes customers love our solution.
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www.tricofoundation.ca10) If your customers are different from your beneficiaries, what product or service does your
venture offer in the market?
Answer:
Our fee-based furniture pickup and
transfer service are the
predominant means by which
furniture donations from
individuals across the GTA make
their way to our clients. Furniture
Bank’s trucks and crew are on the
road all year transporting gently
used furniture donations to our
facility in Etobicoke, where clients
are invited to browse the donated
items and choose those that suit
their needs. The fee is in line with the market rate for removal services and in fact, is more
competitive because donors receive a gift-in-kind tax receipt for the value of their furniture
donation.
Since 2004 Furniture Bank has serviced over 60,000 customers. In 2016 alone - over 9200 trips
transferring over $4.4 million in donated furniture to nearly 11,000 people.
The secondary customer is the beneficiaries that use the social enterprise as a subsidized delivery
service. In 2016 the average family took the following “basket of goods” and had delivery across
the GTA for $120 for an average sized beneficiary family.
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www.tricofoundation.ca11) If your customers are different from your beneficiaries, list the total products/services
your venture sold for each of the following years:
Customers using the Furniture Pickup / Removal service grew to nearly 5000 families in 2016
(representing $1.2 Million in Sales) a growth of 25% from 2014.
Secondary customers (Beneficiaries) receive their donated furniture through a subsidized delivery
charge to have the furniture delivered the next day to their home and are a Customer persona we
cater too. In 2016 use of the delivery service surged 60% representing $0.5 Million in Sales 14.
Combined these represent 9206 Households in 2016 paid service fees to Furniture Bank for the
collection and delivery of nearly 70,000 items of furniture, representing nearly of $4.5 million in
donated furniture moving from one home to the new home.
2014 2015 2016
Customers (Donor Families Purchasing Furniture Removal) 3,997 4,375 4,977
Customers (Client Families Purchasing Furniture Delivery) 2,686 3,098 4,229
Total Customers (#) 6,683 7,473 9,206
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Pricing for Beneficiary Customers is driven around Cost Recovery of the staff trucks and associated costs for
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Delivery. It is not organized as a Profit Center.
www.tricofoundation.ca12) If your customers are different from your beneficiaries, explain why you focus on the
particular customer segment you currently serve (include, where applicable, how your
focus has evolved).
Answer:
As we discussed in #9, our Customers are very different than the beneficiaries. At the beginning of
our social enterprise, we had no discipline on who the primary and secondary customers were.
Today we are much clearer on who has problems that the social enterprise can address perfectly.
Our Primary target market: 'Zoomers' and children of zoomers
• Demographics: Males and females, aged 55+
• Socioeconomic status: Middle class or higher
• Values: Moderate to high commitment to social causes
Zoomers are downsizing to a new home, generally a smaller apartment or condo; the children of
zoomers are helping their parent/s move into a retirement home. The downsize results in excess
home furnishings that they would prefer not to junk.
Zoomer Zoe Declutterer Dan
Age: 65 Age: 55
Job Title: Retired (teacher) Job Title: Chief Technical Officer
Secondary target market: intermediaries who are in contact with our primary target, facilitating
a transition/transaction that will result in the need for furniture removal with a social benefit.
They include:
• Real estate agents
• Estate planners/administrators
• Senior residential homes
• Funeral homes
• Professional organizers
• Furniture retailers / manufacturer
LEARN MORE ABOUT OUR DONOR PERSONA’S
https://company-66325.frontify.com/d/B6iMUSchNx4L/communications-strategy#/strategy/our-
donors
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www.tricofoundation.caCompetition
13) Identify your venture’s most competitive alternative and explain how they are your most
competitive alternative.
Answer:
Furniture Bank has no direct competitors for the full-service offering.
Isolating one portion of the synergy - there are competitive forces we contend with.
1. For the market problem of getting rid of furniture without worrying about the social
or environmental implications, it is completely covered by Junk Removal Companies
and Downsizers.
2. For the market problem of what to do with unwanted high-end furniture you can
deliver on your own to various organizations who will happily take said furniture to
sell to fund their mission (see below)
3. For the social issue of families unable to source quality furniture when needed – it is
only available to families with some disposable income (second-hand furniture
stores, and liquidators).
Only Furniture Bank’s social enterprise provides a hassle-free transfer service for disposal of
unwanted home furnishings which ensures these items are matched to families in need
within 72 hours – all with a tax receipt for the donated furniture. Making the solution as
“convenient” as a Junk Service and as “low cost” (after tax receipt) as a Thrift Store and as
impactful as though the Customer had passed on the furniture directly to a family in need.
Furniture Bank addresses all of these needs, in an integrated system addressing the greater
community needs to support families getting themselves established in stable and
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furnished homes with the matched furniture from our timely market service for customers
wanting to keep unwanted, gently used materials out of the landfill and do some good in
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the community.
www.tricofoundation.ca14) Is the idea behind your venture capable of being copied? If so, what are your strategies for
dealing with that?
Answer:
The idea itself is not unique or proprietary but replicating it requires a special mixture of business
and social entrepreneurship we have yet to see.
Our theoretical competitors (1-800 Got Junk, You Move Me, Downsizing Diva, etc.) actively partner
with us, as they are focused only solving market problems. There is no expertise or interest to link
their economic activity to a social cause actively. Conversely Furniture Bank is seeing many for-
profit companies seeking to partner with Furniture Bank directly to be a part of the social impact
indirectly. At present Furniture Bank has active working business partnerships with:
• Sleep Country
• Endy Sleep
• Serta Simons
• You Move Me
• 1-800 Got Junk
• Southshore Furniture
• Downsizing Diva
• With many pilots with Realtor Companies and Retirement Homes
On the other side, social service agencies are focused on broader social issues and do not have the
skills, funding or interest in ‘chasing furniture’ and are happy to invest in Furniture Bank for this
critical service. The City of Toronto, for instance, has increased funding for Furniture Bank and our
service for all of their programs in 2017 – a true city-wide social service for community agencies
when they need it. Social Service groups continue to express the problem / need like a “Customer”
would, and have expressed it is not their core strength or priority and have asked Furniture Bank
scale up to step in to support more agencies (and their Beneficiaries).
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www.tricofoundation.ca15) Is what you are delivering substantially or incrementally better, faster or cheaper for your
beneficiary than the most competitive alternative? Please explain your answer.
Answer:
Yes – better, faster, cheaper and most
importantly more dignified.
The target beneficiaries are families without the
financial resources to furnish their apartment.
The photo to the right is one family and how
they lived Furniture Bank. Without the support
system, Furniture Bank provides through the
social enterprise passing this family quality
furnishings promptly they would have to use the
“free alternative” to furnishing a home – scavenge
the streets for unwanted items.
Furniture Bank’s alternative approach is to provide
a warm, inviting and safe environment with
volunteer personal shopping assistants who allow
you to “pick and choose” the items that make a
home special for the beneficiary. The items are free
and safe. The dignity of choice and care provided is
priceless as you saw in the sample of stories found
in #8.
When caseworkers were asked about the impact of
Furniture Bank in general, the top social impacts
related to Furniture Bank clients were:
• Restoring clients’ hope in the future (83%)
• Improving clients’ self-esteem (78%)
• Improving clients’ self-confidence (72%)
• Creating family stability (72%)
“When I got my son back, and we had furniture, my
place started to feel like a home. Before I had
furniture I never wanted to go home at the end of
the day - I always wanted to go to someone else’s
home.”
Olivia Sparks, Children’s Aid Society
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www.tricofoundation.ca16) If your customer is different from your beneficiary, is what you are delivering substantially
or incrementally better, faster or cheaper for your customer than the most competitive
alternative? Please explain your answer.
Answer:
Owing to similarities in our target audiences, Furniture Bank’s main competitors include downsizer
and junk removal or moving businesses. When an individual no longer has a use for an item of
furniture, he or she will seek it removed and disposed of.
Customer expectations for all removal services include:
• assume competitive pricing,
• great customer service,
• convenient hours and
• easy communication.
Furniture Bank matches those – like for like. These are table stakes in operating in this market.
Where we are incrementally better is the added ‘benefits’ the customer receives when they ‘buy
social’
We regularly hear from customers that this is an amazing service offering as it goes beyond the
‘for profit’ option. As one customer explained…
As one customer remarked to a Driver Team “You guys are amazing! I just point, and my amazing
kitchen table set will leave my house and be matched to a needy family in 72 hours. I don’t need to
lift a finger, and I am changing a life!”
See what a typical customer experiences…
– Journey - A Story of Generosity Dignity & Thankfulness
– Watch it here… https://youtu.be/v4atBvQ01xA
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www.tricofoundation.caFinancial Requirements (2016)
17) Please attach your venture’s recent year-end financial statements (including income
statement and balance sheet) 15.
Answer:
• 2015 Audited Statements is included as an Attachment.
• Our 2016 Audit is in progress, and final statements will be available by May 2017.
• Current unaudited results are as follows (we don’t expect any major changes in the audit).
Income Statement 2016
INCOME STATEMENT FY 2016
Income
4100 · Donations $499,438
4200 · Earned Income Operations $1,814,005
4300 · Grants $581,827
4500 · Other $142,342
Total Income $3,035,172
Expense
6140 · Bank Charges $53,213
6150 · Facility Expenses $207,679
6160 · Fundraising Expenses $123,983
6300 · Board and Volunteer Expenses $6,327
6170 · Insurance $37,011
6400 · Office, General Expenses $126,147
6180 · Warehouse & Ops Expenses $38,849
6190 · Telecommunications $32,974
6210 · Professional Services $65,013
6220 · Vehicle Expenses $136,656
6500 · Salaries and Benefits $1,925,530
Total Expense $2,900,675
EBITDA $263,136
6130 · Depreciation $128,639
NET INCOME $135,156
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If your venture’s year-end financial statement is more than 3 months out of date, please also include up-to-date
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monthly financial statements. If your year-end financial statement is more than 6 months old, please also send a
recent unaudited monthly income and balance sheet. If there is a parent organization and it is impossible to
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distinguish in the year-end financial statement between the parent’s financials and venture’s, you will need to
provide the particular details about your venture on a separate sheet.
www.tricofoundation.caBalance Sheet 2016 (Unaudited)
ASSETS
Total Current Assets $363,971
Total Fixed Assets $616,001
Total Other Assets $25,629
TOTAL ASSETS $1,005,602
LIABILITIES & EQUITY
Total Current Liabilities $173,398
Total Long Term Liabilities $626,071
Total Equity $206,133
TOTAL LIABILITIES & EQUITY $1,005,602
18) Describe the systems your venture has in place to monitor financial operations.
Answer:
Furniture Bank has developed a robust SERP (Social Enterprise Resource Planning) platform to
manage both financial and all other metrics within in the organization. Built in 2009 and
customized on the foundation of Salesforce.com the SERP allows Furniture Bank to track, organize
and manage the social venture and charity activities and automate many back-office functions
related to technology, services, and resources.
In 2015 we expanded its capabilities with Mobile and Social Franchise capabilities in small pilots.,
building the expertise to look at expanding the platform. In 2016 after audits with KPMG and
Traction on Demand, we have begun the work (to be completed mid-2017) to upgrade our SERP to
be ready to support scaling our operations into other communities in Canada. The new SERP will
permit a centralized sales call center, point of sale systems, reporting, tracking and dispatching of
trucks on the one hand while pushing community specific functions to mobile and simplified
desktop solutions to remote furniture bank operations.
Our systems are such that staff and other stakeholders have a REAL TIME understanding on
financial transactions (bookings, credit card, etc.) as well as the operational and social impact
implications of our operations. Our work to date was recognized in a National Award in 2016 – as
the 2016 Ingenious Award Winner
Other Case Studies of our SERP Platform
- https://www.youtube.com/watch?v=vfw1Kkssibk (How we use Salesforce to track
Trucks, Customers and Beneficiary orders in real time)
- http://www.salesforce.org/stories/furniture-bank/
- https://www.techsoupcanada.ca/en/community/blog/how-furniture-bank-used-
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innovative-technology-to-increase-social-impact
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www.tricofoundation.caYour Blending of “Social” and “Entrepreneurship.”
19) Beyond a customer’s desire to ‘buy social,' could your social model’s role in solving your
customer’s needs be replaced by a traditional business?
Answer:
We don’t think so.
Furniture Bank is focused on Customer Personas that have a clear “problem” – how to dispose of
unwanted items while supporting people in need directly with these items. Traditional business is
not interested in, incented to pursue, or experienced with the receiving end of that problem.
Traditional business thrives in the ‘buy convenience’ space. “Just point and pay, ” and heavy
clutter can be made to disappear nothing more than a credit card immediately. It all goes to the
dump for the most part, and a thriving Junk Removal and Downsize Industry exists in North
America catering to this very demand for convenience.
Our Social Enterprise Customers are willing just to throw good items to the “Curb.”
Nor are they the ‘be social’ households that do their own ‘removal’ and make drop off donations
every day at Furniture Bank. While we love ‘drop offs’ the inconsistency of quantity, quality, timing
and revenue source were the cause for the birth of the social enterprise in 2004.
Our Social Enterprise Customers are households who demand BOTH convenience + direct social
good for their possessions – or the “buy social & convenience” group. Traditional business is not
equipped or interested in operating a matching system with social service agencies to provide
needed furniture at the moment they need it.
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www.tricofoundation.ca20) What costs does your social model add to your venture and to what degree are you able to
pass those costs on to your customers? If it is hard to pass those costs on, how do you
cover those costs?
Answer:
Our Social Enterprise prices itself in line with the market rate for similar substitutes like a Junk
Company or Downsizer.
As you can see from the Table below the simplified Truck Economics does not cover all costs.
Margin generated in a traditional business is focused on our ‘social costs’ which include:
– Invest in showroom space for Beneficiaries to select their furniture (16,000 sq ft @ market
$)
– Invest in community agency engagement to provide access to families (support and staff)
– Subsidize the delivery cost of furniture to families (down from market rate).
– Consciously create roles for Social Hires of marginalized populations as part of the service
delivery of the Charity and Social Enterprise (add $$ for training & management).
We supplement the revenue
with two additional items. PICKUPS FOR DELIVERIES TO
CUSTOMERS BENEFICIARIES
The first way is with service
contracts with agencies for
‘turn-key access’ to the
solution we provide. This
includes solving the agencies REVENUE/DAY $1,350 $450
problem of how to reliably from Beneficiaries
from Customers
source and distribute (or their Agency)
furniture with our social
enterprise.
COST / DAY $450 $450
2 Staff 2 Staff
The second is traditional Staff Component
(Driver & Helper)
(Driver & Helper)
charity fundraising focused Payroll & Benefits per Day $350.00 $350.00
on: Truck Costs
– supporting our Insurance / Day inc. inc.
scaling of the social Depreciation / Day inc. inc.
Repairs / Day inc. inc.
enterprise Fuel / Day inc. inc.
– new Studio Parking Tickets / Day inc. inc.
Upcycling Social Fixed Cost for Truck / Day $100 $100
Total cost per day $450 $450
Enterprise
– Social Hire Program
CONTRIBUTION PER DAY $900 $0
Legup CONTRIBUTION PER MONTH $18,000 $0
We find funders like the CONTRIBUTION PER YEAR $216,000 $0
connection between their ROI ON SOCIAL ENTERPRISE
CUSTOMER TYPES 67% 0%
charity and our earned
income/self-sufficiency goals
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for ourselves as aim to scale further match customer needs and beneficiary requirements.
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www.tricofoundation.ca21) Over and above any desire a customer may have to ‘buy social,' how does your venture’s
social model add value and a competitive advantage to your products/services?
Answer:
Only our furniture transfer service, matches unwanted household furnishing from consumers to
agency-vetted families in need within days. In effect, the customers “problem” (of decluttering)
becomes someone else's “Solution” (your used furniture will change a life!) using Furniture Bank’s
services.
The competitive advantage comes when you line this up against the added benefits you get using
furniture bank:
Feature / Benefit Junk Removal / Downsizer Furniture Bank Social
Enterprise
Cost Starting from $100 Starting from $100
Professional Removal Team? YES - 2 Professionally YES - 2 Professionally
Trained Movers Trained Movers
Operates Year Round? YES - 7 Days a Week YES - 6 Days a Week
Social Hire Program – NO YES – Legup Social Hire
providing opportunities to Program within FB
marginalized Youth?
Active Waste Diversion – NO – drives straight to the YES – donated items in good
removed items try and play a local dump condition are in new homes in
role in social good 72 hours usually. Other items
repaired, upcycled or
recycled!
Social Benefit to Community NO – traditional business no YES – works with over 100
direct support of community community agencies matching
needs. their families needs with
furniture collected.
Tax Receipt for Removal NO YES – donation is in the form
of in-kind items. Tax value
often fully offsets Cost!
To date over 30,000 customers have leveraged the Furniture Bank service to transfer over 450,000
items of unwanted furniture to the right families in need, furnishing 35,000 client homes,
providing immediate and direct help to women and children escaping abuse, formerly homeless
and newcomers of all stripes who are navigating loss associated with dislocation and struggling
with the constraints inherent in moving beyond homelessness.
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www.tricofoundation.caYour Venture’s Team
22) How many people are there in your senior staff?
Answer:
DAN KERSHAW
EXECUTIVE DIRECTOR
TAMMY PEDDLE MITCHELL PRAW NEVINE SEDKI SEAN PEDDLE
DIRECTOR OF DIRECTOR OF DIRECTOR OF DIRECTOR OF
SOCIAL ENTERPRISE MARKETING DEVELOPMENT OPS & PROGRAMS
5 total Senior Staff:
- Dan Kershaw, Executive Director, 4 Years
- Nevine Sedki, Director of Development, 5 years
- Mitchell Praw, Director of Marketing, Less than 1 Year
- Tammy Peddle, Director of Social Enterprise, 9 Years
- Sean Peddle, Director of Programs and Operations, 3 Years
23) How many people are there in your non-senior staff?
Answer:
Approx. 43 other staff including participants of Leg Up Employment and Skills Building Program
(social hires)
DAN KERSHAW
EXECUTIVE DIRECTOR
TAMMY PEDDLE MITCHELL PRAW NEVINE SEDKI SEAN PEDDLE
DIRECTOR OF DIRECTOR OF DIRECTOR OF DIRECTOR OF
SOCIAL ENTERPRISE MARKETING DEVELOPMENT OPS & PROGRAMS
PICKUP TRUCKS MARKETING FUNDRAISING CLIENT SERVICES
TEAM TEAM TEAM TEAM
CORPORATE
LOGISTICS SOCIAL IMPACT DELIVERY TRUCKS
TEAM VOLUNTERING MEASUREMENT TEAM
SALES CENTER
TEAM
BUSINESS
DEVELOPMENT 1 STAFF WORKSHOP STUDIO
TEAM
CULTURE & VALUES
TEAM
2 STAFF FINANCE & SHIPPING & RECEIVING
TEAM
ACCOUNTING
TEAM
15 STAFF 2 STAFF
LEGUP EMPLOYMENT
PROGRAM
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18 STAFF
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www.tricofoundation.ca24) All Staff (Engagement and Collaboration): What processes does your venture use to ensure
engagement and collaboration among staff? Please provide specific examples where that
has improved the venture’s impact.
Answer:
Beginning in 2014, our eyes were opened to actively aligning on, engaging with and investing in
team collaboration in support of our shared vision, purpose and values. This was our starting point
for igniting the higher levels of engagement that we began to experience in 2016, and that has
grown throughout our first quarter of 2017.
The first steps we took were small. They involved talking with team members and, perhaps for the
first time, encouraging them to play key roles beyond the scope of their job descriptions, in
helping the organization meet its social ambitions and financial survival. Small or obvious as that
sounds, for us, it served as a starting point for a culture shift. The entire team watched each other,
in some cases very unexpectedly, stepping up to participate in, and otherwise run projects,
internal social and external community events and ideation sessions, often creating meaningful
improvements in operations specifically, and culture, generally.
Our steps grew notably bolder, as we introduced software to support our internal
communications. The tools allowed management to ask weekly questions to all staff and receive
anonymous feedback. We noticed an immediate impact on team happiness, moral and even, our
other non-anonymous communications. The systems allowed team members to recognize each
other for jobs well done, acknowledging publicly the living of our values, and, or, going above &
beyond normal duties. Understanding how our teams’ have shifted in happiness over time for
example, or how specific managers might improve, has been hugely positive.
Lastly, it’s an often spoken mantra we venture to follow, and it lives at the intersection of radical
generosity and candor. We believe to be candid is generous, and to be truly giving, one must
approach their communications with authentic and rigorous honesty. This idea permeates
engagements between team members. And while we are by no means perfect in its execution, this
philosophical approach to engaging with our colleagues, we believe, is producing a culture of
sharing, of trust and continual improvement.
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www.tricofoundation.ca25) How do the wages of staff and the senior team compare to the industry to which the
venture most closely relates?
Answer:
Staff Wages:
We compare our compensation levels with those of the Junk Removal or Moving industry roles.
As we actively partner with them, we share a lot of notes on HR and Staffing for comparison.
– Call Center Associate – base rates we match industry ($13.50/hr - $15/hr)
– Warehouse Associate – we pay at better than minimum wage ($13.50/hr - $15/hr)
– Driver Helper – base rates we match industry ($13.50/hr - $15/hr)
– Driver – base rates we match industry ($16.50/hr - $19.50/hr)
We assume the pay scales at 1-800 Got Junk represent market rates for these positions being one
of the largest in North America they have a handle on best practices on compensation.
A note on Living Wage 16 & Decent Wage :
– We have taken an intentional approach to expanding roles and compensation at levels
that permit a successful life to be possible in Toronto.
– We may never reach 100% Living Wage, but are making great strides getting more and
more staff to a minimum of $15/hour as a Decent Wage.
2014 2015 2016
Compensation at 8% 20% 30%
a Living Wage
Compensation at 13% 43% 63%
a Decent Wage
Management:
We are strong believers in working our way towards market wages for all roles at Furniture Bank.
2016 management are paid within the 60-75% percentile of compensation for their roles based on
Salary Surveys. Also, vacation allowances, benefits and professional development budget is also in
the top quartile.
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Living Wage in Toronto is $18.52 http://www.ontariolivingwage.ca/living_wage_by_region
www.tricofoundation.ca26) Board (if any): include names, their own jobs, their Board role, and what key issues each
helps your venture with.
Answer:
Our Board is transitioning from an Operating Board towards a Strategy and Governance Board.
Having built a strong management and staff team over the last three years, the board is now
focused on the implications of scaling the organization across Canada, and associated skill sets
need in each community and at a national level. Working with Lift Partners, the Board is looking at
new recruitment to the Board in 2017.
Current Board
• CHAIRMAN - John Visser, Retired Executive
a. Board Leadership, Marketing Strategy, Scaling Strategy, Governance, Audit
• TREASURER - Bob Waterworth, Partner, Tax Incentives Practice, KPMG LLP
a. Board Leadership, Governance, Audit
• DIRECTOR - Anne Ristic, Partner, Lawyer, Stikeman Elliot
a. Board Leadership, Scaling Strategy, Governance
• DIRECTOR & FOUNDER- Anne Schenck, Retired Nun
a. Understanding of Beneficiary Social Needs, Governance, Ops Oversight
• DIRECTOR - Mark Weseluck Senior Director, Compliance Shared Services, RBC
a. Scaling Strategy, Governance, Audit, Ops Oversight
• DIRECTOR - Jennifer Russell Researcher & Ph.D. Candidate, Rochester Institute of
Technology
a. Ops Oversight
• DIRECTOR - Betty Fiksel Principal, Coaching for Action Inc.
a. Board Leadership, Scaling Strategy, Governance, Ops Oversight
• DIRECTOR - Linda Kafka Managing Director, Source of Furniture + Accessories
a. Fundraising/Development, Marketing Strategy, Scaling Strategy
• DIRECTOR - Andrew Chung VP Products and Innovation, Veriday
a. Marketing Strategy, Scaling Strategy, Governance
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www.tricofoundation.ca27) Board (Engagement and Collaboration): What processes does your venture use to ensure
engagement and collaboration with its Board? Please provide specific examples where
that has improved the venture’s impact.
Answer:
The Board of Directors and Executive Director oversee four governing committees made up of
board members and the relevant members of staff:
Board Focus is split between 4 Committees
• Operations & Programs
• Development & Marketing
• Finance and Audit
• Executive Committee
Operations & Programs, and Development and Marketing meet regularly to review performance
and discuss improvements in those respective portfolios.
Board members come from a diverse range of industries within the for-profit sector, and have
expertise in the fields of operations, finance, and marketing. The Board is active in and encouraged
to, offer insights from their respective fields to enable Furniture Bank to implement relevant
efficiencies and improvements borrowed from the corporate world.
Given the range of skills, and work styles we create a series of opportunities for the Board to
remain engaged.
a. For the time constrained – I host monthly “Flash Reports” to keep the board abreast of the
progress at FB. This is a direct result of Board highlighting that we move ‘like a startup’ and
while they love the progress its hard to keep up outside of the Board Meetings.
b. Quarterly Volunteer Days – we host the Board and their spouses in coming to FB to
witness the importance of the furniture with our Social Mission working directly with
Beneficiaries
c. Quarterly Planning Offsites - our current work with LIFT Partners has the majority of the
Board actively engaged and collaborating with management on the business models for
scaling.
d. ED & Director 1 on 1’s – each board member has particular “pet projects” that are near
and dear to them and we encourage drop ins and coffee chats to allow them a deeper
understanding of areas of interest.
28) Does your venture have an Advisory Council/Group? If yes, please include names, their
own jobs, and what key issues each helps your social enterprise with.
Answer: N/A
29) If applicable, what processes does your venture use to ensure engagement and
collaboration with its Advisory Group? Please provide specific examples where that has
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improved the venture’s impact.
Answer: N/A
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www.tricofoundation.caExternal Engagement
30) Describe any partnerships or other engagement your venture is involved in (including any
parent organization, community, beneficiaries, customers, and/or supply chains). Please
provide specific examples where these partnerships have improved the venture’s impact.
Answer (maximum 500 words):
Furniture Bank engages with many different stakeholders in our social enterprise, each playing an ever-
important role in our impact for Canadians. For this answer, we are focusing on those that amplify the social
enterprise activity and highlight the synergy we create for many of these partners.
Partner Partner / Our Enhanced Value
Customers Needs Proposition
Southshore – $500 M furniture company – Partnering on logistics,
Furniture Manufacturer – 4% returns of good items strategy, and funding on
www.southshore.ca – Want to ensure good National Scaling.
1 Year in Partnership furniture makes it to good – Piloting National Mattress
homes. Program
Sleep Country Canada – Convenience for the – partnering on mattress
Furniture Retailer consumer (remove old for supply redirecting good
www.sleepcountry.ca the new one). mattresses from landfill
5+ Years in Partnership – Find social partner to ensure – Over 6,000 quality
good mattresses find a home used/cleaned mattresses
provided.
Endy Sleep – How to operationalize the – Social Enterprise collects all
Furniture Retailer 100 Day Sleep Guarantee ‘returns’ for Endy and
https://ca.endysleep.com/ they offer. charges market rate, and the
2 Years in Partnership – Chose FB over Got Junk for donor is delighted to see
pricing flexibility and social where it's going.
impact. – Over 356 returned
mattresses collected and
$26K in additional Social Ent
Revenues.
Casalife – Removal of old furniture – integrated Furniture Bank
Furniture Retailer slowed down or lost sales. Social Enterprise Service into
http://www.casalife.com/ – Wanted a social engagement POS
2nd Year of Partnership option in line with company – Host for annual gala in their
mission showroom
– Volunteering by staff in
Workshop
1-800 Got Junk – #1 Global Junk Company – Partnered with an Express
Junk Company – 25% of what they collect is Service, to divert more to FB
http://www.1800gotjunk.com/ furniture – Sponsor of Charity Gala
4th Year of Partnership – How to divert the ‘good – Integration with their call
items’ and save on dumping center to upsell our Social
fees Enterprise
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– Provides best practices
training to FB
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www.tricofoundation.ca– part of national scaling
workshops
You Move Me – Premium Moving Company – Partnered on our Move +
Mover – How to compete in tight Donate program:
http://www.youmoveme.com/ Toronto market? (http://www.furniturebank.o
2nd Year of Partnership – Lots of furniture to dispose rg/moving-service / &
of – no solution. – http://www.youmoveme.co
m/you-move-me-furniture-
bank
Salesforce – Enterprise CRM/ERP – Toronto Office regularly
www.salesforce.com – Large NFP focus volunteers and consults on
Supplier & Volunteer – Looking for innovative and best practices.
2nd Year of Partnership progressive uses of their – Heavily discounted licenses
platform. to platform
– Invited FB to present at
DREAMFORCE 2016
Scarborough Centre for Healthy – Independent Community – we provide “back office” and
Communities (SCHC) Agency – wanted a FB but our social enterprise services
Social Partner did NOT want to learn the – Our first “Furniture Bank in a
https://www.schcontario.ca/ Social Enterprise part… Box” Pilot!
3rd Year of Partnership – https://www.schcontario.ca/
scarborough-furniture-
bank.html
– In addition to these partnerships, we have an equally diverse and engaged network of Corporate
Volunteers, Community Agency Partners and Employment Partners that provide the people power
we require operating the charity.
– Over 1,500 individuals from 113 local companies volunteered at Furniture Bank
– Over 90 community agency partners serving our Beneficiaries. Full List
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www.tricofoundation.caAdditional Operational Considerations
31) Describe your venture’s efforts to embed environmentally sustainable practices in its own
processes.
Answer:
Furniture Bank is a
participant in getting
society towards a Zero
Waste Economy. Of the
seven areas that are often
referenced as being
required, Furniture Bank
touches 5 of them daily.
Our core focus is the “Re-
use” and
“Re-Gift” components.
Educating, inspiring and
servicing customers and
donors to make decisions
to pass on their gently
used furniture to families
in need. As outlined
elsewhere the
convenience of the social
enterprise increases this “re-gifting” significantly. Without the social enterprise service all too
often, these useful furnishings end up in landfills.
• In 2013 we started a Recycling project to recover metals and other materials that have
benefit. In 2016 we recycled 165,000 lbs of metal, electronics, and cloth.
• In 2015 we started a Repair Workshop with the help of strategic funders. We repair and
reupholster damaged furniture and proudly place the items back onto our showroom floor
for our clients to select. In 2016 alone we repaired and redistributed 1600 items through
our workshop program.
• In 2017 we started a new Social Enterprise Pilot – know as the “Studio” where we are
Recovering old items and creating items that are ‘Uniquely Charming, One-of-a-Kind Flair.'
( https://studio.furniturebank.org)
Where opportunities allow we are working with the City of Toronto 17 and other community
organizations like Toronto Environment Alliance in increased awareness and engagement.
http://www.torontoenvironment.org/zerowaste_furniture_bank
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Formally recognized in the City of Toronto Long Term Waste Strategy on July 15, 2016. (PW 14.2)
www.tricofoundation.ca32) Measuring: How is data (e.g. input, output, and outcomes) tracked and analyzed?
Answer:
While we have done SROI work for funders, the Social Enterprise didn’t take measurement
seriously until 2014 when the scaling the Social Enterprise became a priority. We quickly built an
input and output focused KPI with over 100 measures that charted how we found new revenues
and cost savings. This work allowed us to convince our bank to provide us the much-needed
capital to invest in an additional truck in 2014 which was the lynchpin in the fiscal turnaround in
2014.
Building on this success, Furniture Bank continues to build on the 'culture of measurement' - and
staff is regularly innovating to measure better outputs and outcomes from our work.
To be clear, we don’t get trapped in the
“ Perfect Is the Enemy of Done” paradigm 18 we see in many
organizations. We focus on reasonable and appropriate
measurement based on our resources and costs to do so
consistently.
In 2016 we were recognized in the MOWAT paper “Unpacking
Impact” 19 for our measurement work.
In 2017 we are working with LIFT Partners to develop a full
measurement and evaluation framework on all Furniture Banks'
impacts and outcomes related to employment, waste reduction,
and the outcomes for both our target Customers and
Beneficiaries. We know scaling will require deep & rigid
measurement, so we work diligently on it every year.
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http://thebettermanprojects.com/2013/12/17/perfection-is-the-enemy-of-done/
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https://mowatcentre.ca/unpacking-impact/ Case Study 2 Page 40 -44
www.tricofoundation.caOngoing Learning and Innovation
33) Provide examples of how learning and innovation have a) led to ongoing process
improvements and enhanced efficiencies, and b) helped evolve the venture in significant
ways.
Answer:
Furniture Bank operates like a lean startup - we live daily a “build, measure, learn” mindset. We
create small experimental initiatives, we quickly get real-world feedback on them and use that
data to expand what works and discard what doesn’t. This is driven by data and customer
development feedback. A few examples of learning and innovating since we last spoke:
1. No More Clipboards! - One of the key improvements made in 2015/2016 was the move to a
paperless client appointment. The change was prompted by data which suggested that time
lost by using paper forms curtailed us from serving an extra ten clients per day. From idea, to
pilot to full production, we moved away from paper and towards bigger social impact and
efficiency by deploying a Salesforce1 app on donated iPads. This one move permitted us to
serve an extra 2600 clients a year.
2. Take Down the Walls! - In January 2016, KPMG provided support to assess our social
enterprise operations, and identify opportunities to improve our performance to serve more
clients, customers, and participants. The conclusion was a series of projects and investments
that when concluded in the summer of 2016 would permit a 40% increase in clients served, to
over 9,000 clients in 2016, and to expand our Leg Up participant openings while expanding
our earned revenue to over $2million by 2017.
3. Build a Cloud Powered National Platform – KPMG also pointed out the potential to take our
Salesforce model ‘national’ and rebuild it to accommodate new communities that had a need
for our partner SCHC (they outsourced the Social Enterprise + Salesforce to us to operate for
them). By August 2016 the scope of the project was a $200K investment, and partners stepped
up to fully fund the project of Cloud Powered Social Enterprise by Feb 2017. Construction will
be completed in the Summer of 2017.
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34) What is the one key thing/assumption that must be true for your venture to get to the
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