Why We Invested in The Fortune Society

The Problem

Individuals with criminal justice involvement form one of the most disadvantaged populations in the nation. They experience a myriad of challenges and harmful stigmas that prevent them from successfully reentering society. These challenges include (but are not limited to) accessing education, employment, affordable housing, substance abuse treatment, healthcare, and family services. While no statistic can tell the full story, some that help illustrate how challenging reentry can be:

• Over 40% of people in prison do not have their high school diploma or equivalent, compared to 18% of the general population.
• Studies have found that a criminal record reduced the likelihood of a callback or job offer by nearly 50%.
• In 2023, over 80% of Fortune Society’s participants were unemployed, almost half (47%) had no source of monthly income, and 40% had co-occurring health, mental health, alcohol, or substance use disorders. 25% of clients reported being homeless at intake.
• Homelessness is 10X more prevalent for formerly incarcerated people than it is for the general public.

The Solution

Founded in 1967, The Fortune Society’s vision is to foster a world where those who are incarcerated or formerly incarcerated will thrive as positive, contributing members of society. They aim to support successful reentry from incarceration and promote alternatives to incarceration through a holistic, one-stop model of service provision.

Core to this work is:

• BELIEVING in the power of individuals to change.
• BUILDING LIVES through service programs shaped by the needs and experience of their participants.
• CHANGING MINDS through education and advocacy to promote the creation of a fair, humane, and truly rehabilitative correctional system.

The Fortune Society has become one of the nation’s leading reentry service organizations, serving over 12,000 individuals annually. It is also a leading advocate in the fight for criminal justice reform and alternatives to incarceration. Their continuum of care is informed and implemented by professionals with cultural backgrounds and life experiences similar to those of their participants.

Services provided by The Fortune Society include affordable and supportive housing, case management, substance use treatment and recovery, financial literacy training, job readiness workshops and job placement assistance, access to education opportunities, parenting workshops, family law services, outpatient mental health and substance abuse treatment, health services for individuals living with HIV / AIDS, food and nutrition, creative arts, digital literacy training, and more. They aim to provide individuals with the holistic support they need to thrive in society.

Note that in addition to this direct service, The Fortune Society also actively advocates at the municipal, state, and federal level for ending mass incarceration, improving conditions of confinement, and promoting fair reentry.

The Impact

The Fortune Society provides life changing services to more than 12,000 individuals in the New York area annually. They provide housing to almost 1,000 individuals, employment services to almost 2,000 individuals, and conduct almost 5,000 individual therapy sessions per year. The organization provides over 4,000 hours of educational instruction hours a year, serves over 30,000 nutritious meals, and helps secure $1,800 per participant in public benefits. Over 78% of individuals who join Fortune’s transitional housing unit successfully move to stable permanent housing.

All of this combined effort leads to a dramatic reduction in recidivism, and a fairer and healthier reentry process.

The Why

The Fortune Society is nationally renowned for their commitment to providing culturally competent services to individuals with incarceration histories. A large proportion of Fortune Society’s employees at all levels have histories of incarceration or substance use, or have experienced homelessness, and over 80% are persons of color. Their staff members exemplify the importance of new chances and serve as role models for participants.

The opportunity to support such a deeply impact focused nonprofit in A to Z’s home city of New York was reason enough to get us excited. When FJC, a New York based sponsor of donor advised funds (DAFs) approached us with the concept for an innovative loan facility to support The Fortune Society and provide FJC members with an opportunity to explore impact investing, we were thrilled to join the consortium.

The How

FJC, who led the creation of the facility, explains the specifics well on their website. In short, as part of their housing work, The Fortune Society is in constant search of new opportunities to develop real estate that they can operate for their constituents. However, the world of New York real estate is often fast moving, competitive, and requires the organization to be able to nimbly respond when opportunity strikes. This reality does not jive well with the life of a government and grant funded nonprofit, with strict budgets and restricted funds. Freeing up substantial capital quickly for higher risk early development costs is a challenge for The Fortune Society.

To that end, the loan facility was created to allow The Fortune Society to flexibly draw on it when the need arose and repay as more permanent financing came into place. For example, a potential building site comes up and The Fortune Society needs to do structural and environmental inspections, as well as architectural designs in a matter of a few short months. The organization can draw on the loan fund for this need, and then repay the fund months later when the plan is approved and a permanent construction loan is put in place for them to develop the building.

The Fortune Society has already used this capital to develop 2 new projects (learn more about them here and here), representing over 150 units, with more on the way. The hope is that the facility will help The Fortune Society double their housing portfolio over the next 5 years, creating dignified housing options for hundreds of individuals with criminal justice involvement.