Twin Cities RISE! Pay-for-Performance Pioneer Serving the Hardest to Employ June, 2014 Minneapolis, Minnesota

Twin Cities RISE! Mission 2 Misson: Provide employers with skilled workers – primarily men from communities of color in the Twin Cities area for skilled jobs that pay a living wage of at least $20,000 annually plus benefits. Participants - we provide comprehensive training, support, and job placement services to men and women from generational poverty. Typical Participant Challenges: Criminal histories 65% or more Addiction histories 45% Chronic Unemployment 85% unemployed at start 60% or more unemployed for at least 12 months Mental health, unstable housing, low basic skills, limited job skills

Twin Cities RISE!: PFP Pioneer Pioneer in performance-based funding - Starting in 1997, TCR! partnered with the State of Minnesota based on the Return on Investment (ROI) TCR! provides to State tax payers High ROI - The result of targeting the hardest-to-employ, and helping them develop the skills needed to get and keep living wage job paying $20,000 per year or more Codified through State of Minnesota Legislation TCR! paid only when a client placed in a job earning $20,000 per year or more, with an income change of at least $10,000 Additional requirements focused qualifications on the hardest-to-serve - asset limitations and a minimum program investment in order to prevent “creaming” Outcomes based focus – TCR! compensated upon success with qualified participants $9,000 at verified placement in job paying $20,000 per year $9,000 after verified one-year retention in like job 3

Twin Cities RISE!: PFP Results ROI of 600% to State Taxpayers - Economics of pay-for- performance favorable to taxpayers, with a 15-year ROI of more than $7 received in benefits for every $1 invested Long-Term Job Retention with Employer Partners 82% one year retention 71% two year retention High Income Change – Placement income of $27,000 per year in 2013 plus benefits, up from $2,611 at start (900% increase) Reduced Societal Costs - High income change and long-term job retention of TCR! graduates results in Increased tax receipts Reduced government subsidies Reduced criminal justice costs 4

1. “Non Nonprofit Model”: Blend of best management practices from the private sector in a strongly mission-driven organization – Results that matter: Focus on long-term, sustainable success – Market-driven: Focused on employer needs, continuous change and improvement – Pay-for-Performance and ROI: Systems change through innovative funding model – National Recognition: Ashoka Changemakers/eBay Foundation Award for Pay-for-Performance model (only US-based program recognized out of 873 international applications Microsoft Foundation’s Elevate America: 1 of 10 workforce development programs nationally 2. Personal Empowerment Model Sustains Success Powerful skills-based approach, based on learning how to apply emotional intelligence principles to permanently change behavior Employer feedback driven; focus on job retention by teaching the emotional and social functioning skills required to become great employees and keep the job Builds emotional regulation skills and individual accountability Twin Cities RISE!: What Makes Us Different 5

Program Participants Adults in deep poverty Avg. age: mid 30s Multiple barriers Predominantly African American 618 served in 2013 Core Program 12 month training program One-on-one coaching and support services Personal Empowerment Rigorous skills training Internships Job placement Results $27,000 average salary at placement Income increase over $24,000 in 2103 High long-term job retention and success High ROI to taxpayers and overall community Twin Cities RISE!: Program Overview Partners Employer Partners Community Partners Alliances Employer Advisory Panel Recruitment, internships, and support service referral partnerships Personal Empowerment Training Results Improved client outcomes Shared service model leads to long- term success 6

Job Retention Rate: Twice National Average 7 Median 12-month job retention: TCR! = 82% Programs serving more than 50% individuals with criminal records = 42%* * According to a Benchmarking Project study conducted by The Corporation for a Skilled Workforce (May 2013):

Return on Investment to the State of Minnesota ( ) ROI = More than $7 for every $1 invested 8

Key Success Measures – Reduced Recidivism 9

Key Success Measures – Job Retention 10