2012 - recycleforcerecycleforce.org/images/uploads/rfannual_report_2012.pdfin 2012, recycleforce...

annual report

I n many respects 2012 was a banner year. RecycleForce was able to attain Responsible Recycling (R2) and ISO 9001 designations. RecycleForce is one of the few nonprofits in the nation that can make this claim. These industry

certifications are a testament to the high value RecycleForce places on sustainability and continual improvement across the entire organization. The company also moved its operations to 1125 Brookside Avenue, an improved facility in which all the operations are on one floor. This improved layout has brought with it greater efficiencies.

In 2012, RecycleForce processed more than 6.3 million pounds versus 4.7 million in the prior year, representing a 32% improvement. Cumulatively, RecycleForce crossed the 20 million pound mark at the conclusion of 2012. Revenues from recycling operations rose to $1.3 million. At year end, there were 111 employees at RecycleForce, a testament to the organization’s core mission to provide employment opportunities to formerly incarcerated individuals.

RecycleForce was awarded a Community Economic Development grant in the autumn of 2012 with the goal of expanding operations into Columbus, Ohio. We have formed a partnership with Sustainable Business Ventures Ohio and have begun regular collection events there. Future plans include a full-fledge operation. This regional expansion will bring greater volumes and prove that RecycleForce social enterprise is scalable. This is an important step in proving that social enterprise can change the dynamics of re-entry nationally.

Looking forward to 2013, we are projecting another robust year of growth with a recycling target of 7.5 million pounds. By year end, we should have a small operation up and running in Columbus, Ohio. The year holds much promise.

Thomas Gray, Vice President, RecycleForce

Our 7th full year of operation has been the year of the United States Department of Labor Enhanced Transitional Jobs Demonstration (ETJD) grant. Indianapolis is one of seven cities selected to measure the impact of transitional jobs on recidivism, earnings, employment advancement, and payment of child support. RecycleForce is leading the project in Indianapolis.

MDRC, one of the country’s premier research firms, is evaluating project impacts to identify effective programs and/or strategies to reduce recidivism and help those coming home to become productive citizens in their community. It is a random assignment study, so half get “treatment”—a transitional job with us and a host of supportive services—and the other half seek existing help in the community through community groups, the local WorkOne, and other programs that assist ex-offenders. Our worker outcomes will be measured against the outcomes of the control group. Preliminary results of this study will be available in mid-2014 and final results will be available in 2015.

As of this writing, RecycleForce is more than two-thirds of the way through the study. While it is too early for MDRC to release any results, our early look at data provided by the Marion County Sheriff’s Department has us optimistic that our work is reducing recidivism. The first look at local jail bed day use shows a 40% reduction for those employed with us. The data suggests that our folks are benefiting from the compliance monitoring program we are developing with probation and community corrections as a part of this grant.

I am excited about how we have strengthened our relationship with judges, probation, and community corrections. Perhaps the most important thing we help our folks do is adhere to the court ordered mandates of their release while they work and reconnect with their families. Technical Rule Violations (TRV) is the number one reason people coming

home end up back in jail or prison. Our developing relationship with the correctional oversight agencies provides us the opportunity to work with the courts and oversight officers to help prevent a violation before it occurs. This is an exciting process, and one that our city and county leaders are now working with us to expand.

In 2013, our board of directors will roll out a dynamic strategic plan that will guide our efforts for the next 5 years. Merging and integrating a business with social service activities and criminal justice oversight responsibilities is not an easy process, but we are doing it and doing it in a way that can be measured and replicated. I tell our participants, “No one has ever tried to do what we are doing.” Our guys and gals are showing the rest of the world that one can find his/her way home from prison and help make RecycleForce a major force in recycling. We are truly making for a cleaner environment and a stronger workforce.

It has been a good year for RecycleForce. We have managed significant growth in our recycling enterprise while also successfully implementing the ETJD grant. We have completed our first A133 audit and developed and strengthened our internal policies and procedures. Our peer-to-peer program is fully in place, and our newly awarded Community Economic Development grant is helping us grow an operation in Columbus, Ohio, in addition to expanding our ability to process more material here in Indiana. Our board of directors and our staff are excited about what the future holds. It is hard work, but as Frank Zappa said, “Without deviation from the norm, progress is not possible.”

Gregg Keesling President RecycleForce

Message from the President

RecycleForce Annual Production

02006 2007 2008 2009 2010 2011 2012

I n many respects 2012 was a banner year. RecycleForce was able to attain Responsible Recycling (R2) and ISO 9001 designations. RecycleForce is one of the few nonprofits in the nation that can make this claim. These industry

certifications are a testament to the high value RecycleForce places on sustainability and continual improvement across the entire organization. The company also moved its operations to 1125 Brookside Avenue, an improved facility in which all the operations are on one floor. This improved layout has brought with it greater efficiencies.

In 2012, RecycleForce processed more than 6.3 million pounds versus 4.7 million in the prior year, representing a 32% improvement. Cumulatively, RecycleForce crossed the 20 million pound mark at the conclusion of 2012. Revenues from recycling operations rose to $1.3 million. At year end, there were 111 employees at RecycleForce, a testament to the organization’s core mission to provide employment opportunities to formerly incarcerated individuals.

RecycleForce was awarded a Community Economic Development grant in the autumn of 2012 with the goal of expanding operations into Columbus, Ohio. We have formed a partnership with Sustainable Business Ventures Ohio and have begun regular collection events there. Future plans include a full-fledge operation. This regional expansion will bring greater volumes and prove that RecycleForce social enterprise is scalable. This is an important step in proving that social enterprise can change the dynamics of re-entry nationally.

Looking forward to 2013, we are projecting another robust year of growth with a recycling target of 7.5 million pounds. By year end, we should have a small operation up and running in Columbus, Ohio. The year holds much promise.

Thomas Gray, Vice President, RecycleForce

Our 7th full year of operation has been the year of the United States Department of Labor Enhanced Transitional Jobs Demonstration (ETJD) grant. Indianapolis is one of seven cities selected to measure the impact of transitional jobs on recidivism, earnings, employment advancement, and payment of child support. RecycleForce is leading the project in Indianapolis.

MDRC, one of the country’s premier research firms, is evaluating project impacts to identify effective programs and/or strategies to reduce recidivism and help those coming home to become productive citizens in their community. It is a random assignment study, so half get “treatment”—a transitional job with us and a host of supportive services—and the other half seek existing help in the community through community groups, the local WorkOne, and other programs that assist ex-offenders. Our worker outcomes will be measured against the outcomes of the control group. Preliminary results of this study will be available in mid-2014 and final results will be available in 2015.

As of this writing, RecycleForce is more than two-thirds of the way through the study. While it is too early for MDRC to release any results, our early look at data provided by the Marion County Sheriff’s Department has us optimistic that our work is reducing recidivism. The first look at local jail bed day use shows a 40% reduction for those employed with us. The data suggests that our folks are benefiting from the compliance monitoring program we are developing with probation and community corrections as a part of this grant.

I am excited about how we have strengthened our relationship with judges, probation, and community corrections. Perhaps the most important thing we help our folks do is adhere to the court ordered mandates of their release while they work and reconnect with their families. Technical Rule Violations (TRV) is the number one reason people coming

home end up back in jail or prison. Our developing relationship with the correctional oversight agencies provides us the opportunity to work with the courts and oversight officers to help prevent a violation before it occurs. This is an exciting process, and one that our city and county leaders are now working with us to expand.

In 2013, our board of directors will roll out a dynamic strategic plan that will guide our efforts for the next 5 years. Merging and integrating a business with social service activities and criminal justice oversight responsibilities is not an easy process, but we are doing it and doing it in a way that can be measured and replicated. I tell our participants, “No one has ever tried to do what we are doing.” Our guys and gals are showing the rest of the world that one can find his/her way home from prison and help make RecycleForce a major force in recycling. We are truly making for a cleaner environment and a stronger workforce.

It has been a good year for RecycleForce. We have managed significant growth in our recycling enterprise while also successfully implementing the ETJD grant. We have completed our first A133 audit and developed and strengthened our internal policies and procedures. Our peer-to-peer program is fully in place, and our newly awarded Community Economic Development grant is helping us grow an operation in Columbus, Ohio, in addition to expanding our ability to process more material here in Indiana. Our board of directors and our staff are excited about what the future holds. It is hard work, but as Frank Zappa said, “Without deviation from the norm, progress is not possible.”

Gregg Keesling President RecycleForce

Message from the President

RecycleForce Annual Production

02006 2007 2008 2009 2010 2011 2012

RecycleForce was born at the former RCA television plant (754 N Sherman) in the Fall of 2005. Workers in the television demanufacturing area would often note the irony that TVs built in this factory were now coming home to die. There are a lot of fond memories tied to this building. We used to have a summer cookout on the docks. The building had its challenges—the recycling operations were split between two floors, in the summer it could be sweltering, and material had to be transported up and down a fickle freight elevator.

However, the owners of the building fell into financial distress and RecycleForce decided it was time to move to a new facility. Fortunately, the company was able to find excellent space at 1125 Brookside (we are located at the northeast end of Brookside). This building too has a long historical pedigree. It is the former Schwitzer Building. The building was named for Louis Schwitzer, the winner of the very first race held at the Indianapolis Motor Speedway (a two-lap five miler)and an inductee to Automobile Hall of Fame. Schwitzer founded the Schwitzer Corporation, which focused

The Opportunity of Social Impact Bonds

In the Fall of 2012, New York Mayor Michael Bloomberg announced the launch of a program at the Rikers Island jail complex with the goal of reducing the recidivism rate of young offenders. Recidivism is a social problem that Indianapolis and municipalities across the country are looking to tackle. The unique twist in this program is the source of financing for the program—Goldman Sachs will invest nearly $10 million in the program through social innovation bonds (SIBs).

Also called social impact bonds or pay-for-success bonds, SIBs draw upon private investment dollars to address entrenched social ills, such as recidivism, homelessness and substance abuse. These private dollars are used to fund nonprofit groups, which tackle these social problems and in turn produce measurable results such as lowering the recidivism rate. The cost savings realized by the government through these efforts are paid to the private investors and represent their return. In the above example, Goldman Sachs will realize $2.1 million profit if the project can lower the recidivism rate by 7.5%.

This idea is in its infancy and its potential is large. There are many different sources of private capital—pension funds, foundations, hedge funds—all of which in this era of very low interest rates are in search of higher returns. For some investment funds, reducing these social problems would benefit their business operations. For example, insurance companies might be drawn to reducing

crime, especially if it had an impact on such crimes as burglaries and car theft.

While the NYC program is being touted as the first of its kind in the U.S., the SIBs were first used in Britain and are being explored in Australia. In this Age of Austerity, SIBs could prove to be a powerful tool to help facilitate social innovation. This funding stream allows governments to engage in preventative strategies that could unlock dramatic future savings. Another advantage of SIBs is that the risk of failure is transferred from public funding to private investors. Essentially, private investors endure the risk and afford municipalities the opportunity to test new strategies. Nonprofit organizations that receive SIB funding are promised a sustained flow of funds that allow them to operate at scale over a longer period of time. In the case of the New York investment, the nonprofits delivering the services are guaranteed funding over a 4-year period.

Corrections consume a huge portion of municipal and state budgets; the Department of Correction’s budget in Indiana is more than $500 million a year and the public safety budget of Marion County is more than $400 million. In these tight budgetary times, government officials at all levels need innovative ways to produce sustainable savings. SIBs could be one answer to this dilemma, as they provide the initial investment to begin the process of restructuring budgets.

on manufacturing cooling systems and turbochargers. The Schwitzer Corporation became a major auto industry force during the post-World War I era.

RecycleForce now occupies 80,000 square feet of this facility at the far northern end of the building. One of the best features of the new space is that RecycleForce now has a drive-in drop off site. Individuals can drive their cars right into the warehouse and enjoy a full-service recycling experience. RecycleForce employees will unload whatever recyclables are brought to the facility and the patron can then drive out of the building.

Having all of the operations on one floor has brought about tremendous efficiencies. Product is brought into the docks, snakes its way through the demanufacturing, shredding and baling departments and then exits out the docks. Operations have never been smoother, nor has the social enterprise processed so much material.

Anyone who would like to come down and receive a tour or drop off material at the drive through recycling center is welcome—1125 Brookside Avenue, Suite D12, Indianapolis 46202 is the address.

A New Home for RecycleForce2