By Kelly Raggazino, CEO of Open Hearth, Inc.
Open Hearth, Inc., a leader in resource coordination and community building efforts, provides innovative programs to support and empower people to end the cycle of homelessness, acquire affordable housing, a means of transportation, workforce opportunities, and achieve financial stability.
The Alliance for Health Equity’s Seed-And-Scale grant is unique in its ability to match donations dollar-for-dollar. This generous funding allowed us to launch the JumpStart program with a focus on the greater Coatesville area. Additionally, the support The Alliance has provided to the grantee organizations (availability for questions as needed and ongoing support meetings) has facilitated open lines of communication and partnerships. This has created confidence in those involved that all are invested in the success of the programs, which directly benefits the community.
Open Hearth’s JumpStart program is a new model for stabilizing struggling households in Chester County. Through the provision of zero percent interest car repair loans (up to $1,000 per participant), low to moderate income residents are able to afford an unexpected repair, allowing them to maintain reliable transportation and therefore their employment, without also threatening their ability to pay for other essential expenses like rent, food, or utilities.
Public transportation throughout Chester County has long been recognized as woefully inadequate, necessitating car ownership for many to access better employment opportunities. A lack of transportation also limits housing choices as well as educational and healthcare options which can set in motion a cycle which “isolates [those in need] from the very opportunities which would enable them to break out and explore new horizons” (Compass: Chester County’s Call to Action).
Open Hearth’s initial goal for the Seed-And-Scale initiative is to issue $10,000 in loans and, as loans are repaid and/or other funding is raised, additional participants can be served.
An additional focus of JumpStart is strengthening active partnerships and building new relationships with Coatesville based organizations. This is to ensure we can reach a broad range of residents with this resource. Collaboration is crucial to a successful program.
Progress to Date:
Open Hearth has successfully issued three interest-free auto repair loans so far. The recipients are all currently in the process of repaying their loans. They are a diverse group in terms of age (39 to 62 years old), race (Black and white), and gender (two are female and one is male). They all reside in Coatesville.
We continue to secure new partnerships with Coatesville-based organizations, including other Seed-And-Scale recipients, to expand our recruitment of new participants. The initial group of partner organizations included Bridge of Hope, North Star, Home of the Sparrow, and the Gordon Early Literacy Center (part of the Chester County Intermediate Unit). They are all organizations that Open Hearth has long-standing relationships with. Partnerships that began after further outreach include Life Transforming Ministries, Maternal and Child Health Consortium, Good Samaritan Services, and CYWA. In addition to accepting referrals from the organizations mentioned above, we are taking applicants who are participants in the following Open Hearth programs: Financial Navigation, Family Savings Partner program, and the Continuum of Care Permanent Supportive Housing program.
Our goal while enrolling participants into the JumpStart program is to ensure that we are mindful of the financial burden an auto repair loan can have on an individual/family. At the first meeting, the program coordinator works with the applicant to develop a budget which assists the coordinator in understanding the household income and expenses and the affordability of a loan. The coordinator will assist the participant in understanding their anticipated monthly loan payment amount and the 12-month repayment period. A loan will not be approved if it is determined the applicant does not currently have the ability to repay it. If this is the case, the coordinator will provide referrals to the applicant for services that may free up income, so they have the necessary funds to repay a loan. This could include applying for SNAP (food stamps) or Medicaid; connecting with a food pantry or program that assists with utility bills; connecting with CareerLink to find additional employment opportunities; or working with one of our financial navigators to reduce debt. Applicants can be reconsidered for a loan once income has increased, or expenses have decreased.
Story
Our first loan was issued to *Sara, a long-time participant in Open Hearth’s financial coaching program. She also engaged with Open Hearth nearly ten years ago when she was displaced and living in supportive housing through the Domestic Violence Center of Chester County. Sara has worked diligently over many years to find financial stability for herself and her four children. She even utilized Open Hearth’s Family Savings Partner program and partnered with Habitat for Humanity to purchase her first home. Through many changes, Sara remained connected to financial coaching services and, during a current moment of financial uncertainty, was able to utilize JumpStart to have necessary repairs done to keep her vehicle safe and on the road. Sara’s loan was less than $700 and she has made payments on-time thus far.
“Thank you to JumpStart for giving me the financial support I needed during this difficult time. Things were really hard due to some medical and financial setbacks these past couple months. Your loan has enabled me to bounce back without creating an additional hardship for me and my family. When you have no family or savings to depend on, just one major car issue can have a domino effect on everything else financially and emotionally in your life. This loan gave me peace of mind knowing that my car can be fixed and safe for me and my family to drive and being able to pay it back over a period of time allows me to maintain my other bills at the same time. Thank you. “ – Sara
*name has been changed
Sustainability and Long-Term Vision:
Most recently, Open Hearth was awarded JumpStart funding from the Chester County Community Health Foundation. This grant also has the possibility of a second year of funding. The grant can fund loans for residents of all areas of Chester County, allowing us to broaden the service area for JumpStart. With this expansion comes the work of building additional referral partners in the County.
Later this year, we will be expanding our fundraising capacity with the addition of a development director. This position joins our full-time development manager, and their combined efforts will allow us to expand services and deepen community impact.
Over the next year, Open Hearth will continue to focus our efforts on engaging new nonprofit JumpStart referral partners and obtaining increased funding. As that funding permits, in 2026 we will begin to expand JumpStart to include passing along donated vehicles (which have been repaired to be road worthy) to low-income residents of Chester County.
Conclusion:
For nonprofit organizations to be successful in their current and new programming, collaboration and partnership is crucial. This is true for service delivery as well as continued funding. With a strong alliance, trust comes both in and from the community. The collaboration and funding efforts led by The Alliance for Health Equity support increased growth, innovation, and health equity for the Coatesville community.