A Homeless Shelter is a temporary or short-span shelter provided to homeless and helpless individuals and families. These shelters provide all kinds of protection to the residents and take care of their food, health, wellbeing, and other needs apart from providing shelter. There are millions of people who need the Homeless Shelter for various reasons. Therefore there are requirements for such shelters in every state and city.
If you have a humanitarian mind and willing to serve society by helping helpless people, you can start an NGO providing shelter to homeless people. The funding for such shelters is provided by the Government. This means you can start a Homeless Shelter in your area or some other area, with Government funds.
Here are the 10 Steps to Start a Homeless Shelter
You must first learn more about the types of homeless shelters operating presently. Find below some of the popular types:
1. Types of Homeless Shelters
There are different types of Homeless Shelters in the United States for different classes of people in need of them. Let us have a look at some of these categories.
- Homeless Shelters for families unable to afford rented accommodation.
- Runaway Youth Homeless Shelters.
- Homeless Shelters for Victims of Child Abuse.
- Victims of Domestic Violence Homeless Shelters.
- Destitute Women Homeless Shelters.
- Homeless Shelters for critically ill persons or families.
- Shelters for victims of Drug abuse or intoxication with arrangements of treatment.
- Homeless Shelters for people released from prison and nowhere to go.
- Shelters for aged people.
2. Research & Analysis
After you have decided to go ahead with your plan of setting up a Homeless Shelter, you need to conduct detailed research on the demographic and socio-economic profile of the area or city/state where you wish to set up the shelter. This study will help you to find the area where you would like to focus on.
Apart from that, you have to research the necessary legal conditions for setting up the Shelter or running it. The most important condition is related to health. Each state has specific health conditions required to set up or run a Homeless Shelter. This ensures proper and healthy living conditions for the residents. You have to study these conditions and make sure they are fulfilled.
There are other necessary conditions often related to the particular group of people you want to serve in your Homeless Centre. Study these conditions very well, before you decide on the details of the project. These are very important aspects of getting a Government Grant.
3. Decide on your Area of Activity
As discussed earlier, there are different types of Homeless Shelters for various groups of the population. You have to decide on any particular type or your niche. Evaluate the demand for the Shelter for any particular group and decide your niche accordingly.
5. Fix the Location
After deciding on your niche, you have to finalize a place for your Homeless Shelter. The place has to be conveniently located and comfortable enough for the residents. It has to be properly furnished for the residents to keep their belongings.
The place you select should have a good ventilation system needed for healthy living. Apart from that, parking facilities, security, and good traffic conditions are also the necessary points you should consider in fixing the place.
6. Legal Documentation for Starting a Homeless Shelter with Government Funds
You need to give your homeless shelter a legal entity as LLC, C Corp, or S Corp. This will enable your organization to have its bank account and property. If you make it a non-profit entity, you will need a board of directors.
Think of a suitable name for your Homeless Shelter and get it registered. Go for the necessary insurance plans like General liability insurance, Workers compensation insurance, Commercial property insurance, Umbrella insurance, etc.
There are certain legal documents that you will need for your Homeless Shelter. Some of them are Certificate of Incorporation, Insurance Policy, Tax exemption, DBA Business Name, Federal EIN, State EIN, etc.
There are certain necessary legal certifications for running a Homeless Shelter. You will need them for starting and running a Homeless Shelter. Some of these are, Certified Independent Practise Social Worker, Certified Social Work Case Manager, Certified Advanced Practise Social Worker, and Commission for Case Manager Certification, etc.
While hiring staff for your Homeless Shelter, you also have to look for these certifications because that will add to the credibility and strength of your organization.
7. Create a Home Shelter Business Plan
Although starting a Homeless Shelter is a non-profit endeavor, still, you have to do the financial planning and estimation for starting it. Adding up the expenses on different heads, the approximate cost of setting a small-scale Homeless Shelter is $5000, a medium-scale shelter costs approximately $200000 and a large-scale one will be a million-dollar. You can get many required items as a donation from Churches, or other Philanthropic Organizations.
Despite a non-profit venture, you will need a business plan for your Homeless Shelter. Apart from the legal and financial aspects, the business plan will include the mission and vision of the Project, its social impact and benefit angle, and the role of the Board of Directors in the Project.
Mention the need for Government Grant in this Project, as personal grants or donations may be subject to various conditions and not regular. The homeless Shelter being a welfare Project needs the support of the Government. Also, mention your pledge and commitment to abide by the conditions necessary for Government Grants.
8. Write a Grant Proposal for Home Shelter
Firstly, make a list of specific needs and the amount of money required to execute those. Get a printout of the detailed financial calculations of the income and expenses to run the day-to-day activities of your home shelter business project. Add the market research report and mention the number of homeless people in your locality.
Write about the urgent need for a homeless shelter in your application as well as in your cover letter.
9. Where to Get Government Grants?
Government Grants are provided by different departments like the Department of Housing and Urban Development (HUD), Department of Human/Social Services (DHS), Department of Health and Human Resources (HHS). Each state has its funding programs listed on the DHS website.
Many Municipalities offer grants for Homeless Shelters. Some HUD funds are disbursed through the state or municipal authorities.
HUD offers the Emergency Shelter Grants Program. The website gives details about the Eligibility Criteria, Beneficiaries, Eligible Activities, and other necessary points.
HHS has different kinds of grant programs like:
- Grants for Health Care Support for the Homeless
- The transition from Homelessness Grants
- Supportive Housing Grants
- Grants for the Homeless
- Runaway and Homeless Youth Grants
- Grants for Living Program for Older Homeless Youth
- Street Outreach Program
- Access to Recovery
- Grants for Child Support Program
- Maternal and Child Health Grants
- Temporary Support for Needy Families and many more.
The Substance Abuse and Mental Health Services Administration (SAMHSA) the agency within the U.S. Department of Health and Human Services provides grants and assistance on Mental and Substance Use Disorders and Homelessness Resources. Their Grant Programmes include:
- Grants for Homeless People
- Treatment for Homeless People
A Homeless Shelter is a welfare Project. Therefore, you must have a genuine goodwill gesture to initiate such a Project. Remember, you have to be dedicated and consistent in your efforts. Apart from that, you must be well-conversant with the laws, conditions, and eligibility criteria.
Government Grants are the best source of funding for the Homeless Shelter. Study the websites very well and you will find your way. Remember, your will is going to find you the way. Stronger the will, greater will be your way.
10. Calculate the Cost of Starting a Homeless Shelter
The cost of opening a homeless shelter will depend on the size and number of members you want to accommodate. However, based on the feedback of existing home shelter owners, the cost can be roughly estimated as follows:
- A mini or micro-level homeless shelter will cost in the range of from $500- $2000.
- Amid level homeless shelter will cost around $50,000
- A home shelter on a large scale will cost more than $1,00,000.
The above cost estimates may vary depending on the scale of operation of your home shelter project.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.