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Consumer Credit Counseling Service of Orange County

 1920 Old Tustin Avenue
 Santa Ana, CA 92705
[P] (714) 245-1675
[F] (714) 955.5877
www.cccsoc.org
[email protected]
Cheryl Borden
FOUNDED: 1966
INCORPORATED: 1966
 Printable 1 Page Summary
 Printable Profile
Organization DBA CCCS-OC
Former Names --
Organization received a competitive grant from the community foundation in the past five years No
Employer Identification Number 95-2426981 00000

Summary


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Mission StatementMORE »

Mission Statement: Consumer Credit Counseling Service of Orange County is dedicated to assisting consumers achieve financial stability through education and counseling.

On education: Our public educational system has overlooked the need for financial literacy education in the school system, but CCCS-OC offers FREE workshops (or fee for materials) to youth, adults and elderly throughout Orange County. On the average we educate from 10 to 20,000 individuals every year. In SPANISH and VIETNAMESE. Our educational programs (34 topics and workshops) are primarily supported by the revenues achieved through the Debt Management Plan that 15% of our clients use. CCCS-OC has a staff of certified educators plus volunteers that conduct workshops at our headquarters as well as corporate offices and community centers. On financial coaching and counseling:   CCCS-OC has a staff of fully certified counselors that are knowledgeable about most aspects of lending, credit, mortgages and other factors that impact families financially. We develop a solid Action Plan with every client (phone, face to face, or internet) that assists them with future budgeting, educational needs and/or repayment of debts. We have partnered with Hyundai Capital Corporation to offer Financial Futures to the high and middle schools effective 4-2015.  We have developed the Patriot Program that provides a custom online financial courses to our veterans and we are in the final stages of providing a payee program to our disabled veterans.

Mission Statement

Mission Statement: Consumer Credit Counseling Service of Orange County is dedicated to assisting consumers achieve financial stability through education and counseling.

On education: Our public educational system has overlooked the need for financial literacy education in the school system, but CCCS-OC offers FREE workshops (or fee for materials) to youth, adults and elderly throughout Orange County. On the average we educate from 10 to 20,000 individuals every year. In SPANISH and VIETNAMESE. Our educational programs (34 topics and workshops) are primarily supported by the revenues achieved through the Debt Management Plan that 15% of our clients use. CCCS-OC has a staff of certified educators plus volunteers that conduct workshops at our headquarters as well as corporate offices and community centers. On financial coaching and counseling:   CCCS-OC has a staff of fully certified counselors that are knowledgeable about most aspects of lending, credit, mortgages and other factors that impact families financially. We develop a solid Action Plan with every client (phone, face to face, or internet) that assists them with future budgeting, educational needs and/or repayment of debts. We have partnered with Hyundai Capital Corporation to offer Financial Futures to the high and middle schools effective 4-2015.  We have developed the Patriot Program that provides a custom online financial courses to our veterans and we are in the final stages of providing a payee program to our disabled veterans.


FinancialsMORE »

Fiscal Year 2016
Projected Expenses $835,000.00
Projected Revenue $846,000.00

ProgramsMORE »

  • Financial Coaching & Counseling
  • Financial Literacy Workshops for Youth, Adults and Veterans

Revenue vs. Expense ($000s)

Expense Breakdown 2014 (%)

Expense Breakdown 2012 (%)

Expense Breakdown 2009 (%)

For more details regarding the organization's financial information, select the financial tab and review available comments.


Overview


Mission Statement

Mission Statement: Consumer Credit Counseling Service of Orange County is dedicated to assisting consumers achieve financial stability through education and counseling.

On education: Our public educational system has overlooked the need for financial literacy education in the school system, but CCCS-OC offers FREE workshops (or fee for materials) to youth, adults and elderly throughout Orange County. On the average we educate from 10 to 20,000 individuals every year. In SPANISH and VIETNAMESE. Our educational programs (34 topics and workshops) are primarily supported by the revenues achieved through the Debt Management Plan that 15% of our clients use. CCCS-OC has a staff of certified educators plus volunteers that conduct workshops at our headquarters as well as corporate offices and community centers. On financial coaching and counseling:   CCCS-OC has a staff of fully certified counselors that are knowledgeable about most aspects of lending, credit, mortgages and other factors that impact families financially. We develop a solid Action Plan with every client (phone, face to face, or internet) that assists them with future budgeting, educational needs and/or repayment of debts. We have partnered with Hyundai Capital Corporation to offer Financial Futures to the high and middle schools effective 4-2015.  We have developed the Patriot Program that provides a custom online financial courses to our veterans and we are in the final stages of providing a payee program to our disabled veterans.


Background Statement

CCCS-OC is a nonprofit organization established in 1966 as an alliance of volunteer businesspeople to provide free counseling to those experiencing financial difficulties. Counseling soon expanded full-time into providing free financial seminars as well as Debt Management Plans. We then became a proud member of the National Foundation for Credit Counseling (NFCC) and as such adhere to the highest ethical standards with best business practices and accreditation through the Council of Accreditation.  In just the past two years, CCCS-OC has counseled over 14,000 individuals, saved over 3,000 homes from foreclosure, helped over 800 families start a Debt Management Plan to repay their debt and avoid bankruptcy, and celebrated nearly 400 families becoming debt-free by completing the DMP. At the same time, our educators have trained over 35,000 individuals in financial literacy through nearly 2,000 workshops throughout Orange County in English, Spanish and Vietnamese. This incredible outreach is enabled by the over 900 community partnerships we have developed within the county. Through these collaborators, we provide financial literacy outreach to our entire target population in Orange County who might otherwise remain unreached. We hold an A+ rating with the Better Business Bureau and have been accredited by the Council on Accreditation for over 15 years. We have also been approved by the Executive Office of the US Trustees to provide court-mandated prefiling bankruptcy counseling as well as predischarge bankruptcy education ever since the program began in 2005. In 1995 we became a HUD-approved housing counseling agency. In addition, we are a selected portal agency for the Keep Your Home California program administered by the California Housing Finance Authority (CalHFA) and the Rural Communities Assistance Corporation (RCAC), as well as a provider of the National Foreclosure Mitigation Counseling program (NFMC). We are also an official adopter of the National Industry Standards for Homeownership Education and Counseling.  Over the last ten years, CCCS-OC has given out payments to financial institutions of over $200million within OC....these are clients doing the right thing and not declaring bankruptcy.

Impact Statement

1) CCCS-OC offers financial advice from completely certified counselors who are objective, knowledgeable and experts in their field. Over the last two years, we have counseled over 10,000 individuals and saved over 3,000 homes from foreclosure. 2) CCCS-OC offers educational workshops on 34 topics and we provide high and middle school classrooms with a program called Financial Futures for Youth and Young Adults effective 4-2015 (sponsored by Hyundai Capital America). 3) We provide an online series (with a coach) on financial awareness to our veterans and are launching a payee program for disabled veterans. 

Needs Statement

1) Credit Environment from Great Recession Much of the CCCS-OC revenue has come from a constant and steady source of revenue for most of the years of our operation BUT this has changed by 50% due to the economy. As more background on this process, during financial coaching sessions, we create an Action Plan to assist the client going forward with financial stability. About 15% of our counseled clients actually need a Debt Management Plan to repay their debts and keep them from filing bankruptcy. In this process, CCCS-OC develops an affordable repayment plan on behalf of the client. Creditors have agreements with CCCS-OC to provide concessions on the client's debt and to also cut the payments down wherever possible to make it management for the client to repay their debt over a 24-36 month period. This source of funding has changed dramatically since the Great Recession and it is now down by 50%. Two factors play into this: creditors have not been extending credit so debtors are not increasing their debt. Delinquencies are at an all time low. And second, clients do not have jobs to repay their debt which is a requirement of the program.
2) Volatility of Grants & Funding Since our primary source of revenue has been cut back so dramatically, CCCS-OC is relying more on grants and funding as a revenue source. Most non profits would agree that the competition is even greater for these funds. Non profits have more than doubled over the last ten years and the funds available to the growing group as dwindled by 35% (via OC Register). Our grants and funding account for 45% of our revenue now but are volatile due to being approved, the length of time for the actual funding to occur and the time required to administer the application and due diligence reports.
3) Long Term Strategic Partnerships As CCCS-OC creates its strategic plan for 2014 to 2016, it has discovered that nurturing partnerships across sectors of corporate, profit, government and not for profit can be mutual beneficial for the greater good of the community. We are looking at defining partners that our relationship will cement their voice in the community and with their employees whether we are a resource or a way of volunteering for the organization.  We have recently partnered with Hyundai Capital Corporation to bring Financial Futures to our middle and high school classes (4-2015).
3) It is important to keep this vital resource available for our community; it is the only objective and expert (without fees) service available to assist OC.
4) Another new outreach is the Patriot Program that provides a coach and an online service of financial literacy programs just for the veterans and we are launching in 2015 a payee program for disabled veterans.

CEO Statement

CCCS-OC's services are primarily spread through word of mouth from our happy clients and supporters.   We have assisted 1,000's save their home from foreclosure during the Great Recession while in more normal times, we are assisting clients with their budgeting problems with face to face counseling and educational workshops that address over 30 topics customized to our audience.  Our counseling and education provides:  Financial Management Budget Counseling, Mortgage Delinquency and Default Resolution Counseling, Pre-purchase counseling, Rental Housing, Counseling Reverse Mortgage Counseling, Financial Budgets and Credit Improvement Workshops, non-delinquency Post Purchase workshops, pre-purchase Homebuyer Education Workshops, Rental Housing Workshops and Resolving/Preventing Mortgage Delinquency Workshops.  Our clients write us back to say "thanks for getting my life on track again", "now I face tranquil seas", "we think of you often and what you have done for our family"..  Our active board assists in the key components of managing the agency:  audit and financial, education, community relations,  personnel and operations and other ad hoc committees.  Please refer us to your friends or family members who need a boost in the management of their finances.  Repayment plans are available too to assist those who just can't dig out of debt....this is only a nominal fee and one of the only fee services.  We are a non-profit.

We have just launched in 2015 Financial Futures courses for the middle and high schools conducted by volunteers from Hyundai Capital America.
And we have launched the Patriot Program in 2015 that is a specialzed series of online courses with a coach on financial literacy for our veterans....we are in the final stages of a payee program for our disabled veterans. 


 


Board Chair Statement

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Other Ways to Donate/Volunteer

Donations are accepted by CCCs-OC through the United Way Donor Program, through check, credit card or money order made payable to CCCS-OC (Consumer Credit Counseling Service of Orange County) with the address P.O. Box 11330, Santa Ana, California 92711. Links are also available on the webside www.cccsoc.org or our Facebook.

Geographic Area Served

Central Orange County
North Orange County
South Orange County
West Orange County
Consumer Credit Counseling Service of Orange County services all citizens within the county for most services.  Some call-in's are done for bankruptcy certification.

Organization Categories

  1. Public & Societal Benefit - Military/Veterans' Organizations
  2. Education -
  3. -

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Programs


Financial Coaching & Counseling

Counseling assists clients with housing, budgeting, debt repayment plans with an Action Plan. Our individual counseling helps consumers establish real financial goals and personalized action plans;analyze spending and improve budgeting/money management; evaluate ALL debt repayment options (less than 25% of our clients are enrolled in a Debt Management Plan) ;understand their credit and know how to improve it;manage and improve their housing situation;weather economic setbacks in their finances;take full advantage of community resources and referrals.
Budget  $1,335,000.00
Category  Public, Society Benefit, General/Other Banking & Financial Services
Population Served Adults Adolescents Only (13-19 years) Families
Program Short-Term Success  The success of CCCS-OC is witnessing our clients leave during their first counseling appointment with a huge weight lifted from their shoulders. There are approximately 30% that drop the program within the first 3-6 months due to temptation and other issues such as a boost in income. UCI has undergone a 10 year study with our clients to determine why some clients are successful and some are not. Much of it is similar to a weight loss program. The number of our graduates yearly is most indicative of our success. which averages 200.
Program Long-Term Success  All studies confirm that CCCS-OC clients having been counseled and/or used other services have a 30% increase in their credit score and in the ability to handle their finances independently in the future. Experian has just completed an independent study confirming this data. We currently have 1,200 clients in our program and every year we have approximately 200 who graduate with all their debt paid. They are able to start a fresh start debt free. We use Survey Monkey to do monthly surveys of all clients coming through our doors, exiting our programs and then just randomly. This is also done with the clients going through our First Time Home Buyers Program which shows about 20% are able to buy a home when they gain the certificate; others have an Action Plan such as improving their credit score and earning more for a down payment.
Program Success Monitored By  The most indicative tool is the use of Survey Monkey and the monthly and quarterly surveys done with our clients: First Impression, Exit from Program, Random Sampling and Housing. Second, is a Suggestion Box in our Lobby. Third, is the use of other third parties (CSUF Operational Project) to review our clients and our results. Fourth, is the UCI study mentioned above that has one on one conversations with our clients.
Examples of Program Success  Every year we select our Graduate of the Year and the runner up share their success stories at the Graduation Ceremony in July. Our Graduate of the Year for 2013 was a young mother who did not want to marry until her debt was repaid; she was successful after three years and forever indebted to our services. And most of our clients are word of mouth from other clients. We cannot afford to advertise. We receive cards and letters letting us know the relief we have provided to them using phrases such as "tranquil seas" and more. We store these testimonials for review plus our Survey Monkey always includes candid information about their counselor and how the program and/or Action Plan worked for them.

Financial Literacy Workshops for Youth, Adults and Veterans

Educational Workshops for Orange County - calendar on the website

Financial Futures Program for High and Middle Schools through partnership with Hyundai Capital America launched 4-2015.
Patriot Program:
Customized financial literacy online program for veterans launched in 2015.
In progress a payee program for disabled veterans. 
 


 

Budget  $70,000.00
Category  Education, General/Other Guidance & Counseling
Population Served General/Unspecified
Program Short-Term Success 

Educational Workshops:  educate 1,000 students through the partnership with Hyundai Capital America

Educate 6,000 adults within Orange County
 

Program Long-Term Success 

Educational Workshops:  goal is to expand workshops with staff and volunteers to train 20,000+ in a year and 400 classrooms.

Patriot Program:  educate 10% of the veterans with Orange County
provide 50% of eligible disabled veterans on the payee program. 


 

Program Success Monitored By 

Educational Workshops have been most impacted by the Great Recession.

Our staff is diminished by 60% over the last three years.  Need to develop staff and increase volunteers targeting for 30 of the last category.

Funding is most critical to expand these programs and to assist with AB166 which brings financial literacy to K-12 in OC. 
Examples of Program Success  Follow up with Survey Money with the students and military to determine their success.  Use workshop surveys for students to gather success of understanding.  Return the following 6 months.

Management


CEO/Executive Director Mrs. Cheryl Borden
CEO Term Start Oct 2011
CEO Email [email protected]
CEO Experience Cheryl Borden has had a vast executive career within the corporate world concentrating on the credit industry specifically with financial institutions and the national credit bureaus. She has managed large staffs of over 120 and multiple offices throughout the Western United States. And she has a proven track record of exemplary financial results through her leadership.  Cheryl is an active volunteer of a few organizations and has served on two boards of the National Foundation for Credit Counseling agencies. Prior to becoming CEO of CCCS-OC, she was the Board Chair for almost two years at the same organization. She majored in Business Administration at Chapman University and earned an Executive Management Certificate from Claremont Graduate University. She is an active member of the Chapman University Argyros School of Business and Economics Board of Counselors.  She is an active member of the Yorba Linda Water District's Advisory Council. 

Former CEOs and Terms

Name Start End
Mr. James Frannea Jan 1986 Sept 2011
Mr. Carl Linquist Jan 1966 Jan 1986

Senior Staff

Name Title Experience/Biography
-- -- --

Awards

Award Awarding Organization Year
Ambassador of the Year/Employee Lorena Gallardo Orange County Hispanic Chamber of Commerce 2015
California Senate Recognition for Community Service to Consumer Credit Counseling Service of Orange County California Senator The Honorable Lou Correa 34th Senatorial District 2013
Congressional Recognition for Leadership in Business - Cheryl Borden Congressman John Campbell 2013
Consumer Credit Counseling Service of Orange County Assemblyman Ed Royce, 39th District 2013
Consumer Credit Counseling Service of Orange County....Community Service California Senator Bob Huff 2013
County Recognition for Community Service to Consumer Credit Counseling Service of Orange County County of Orange, Shawn Helm 2013
Estrella Award for Community Service Orange County Hispanic Chamber of Commerce 2013
The White House Champion of Change Award - one of 11 nationwide The White House 2012
California Congressional Recognition for Community Service to Consumer Credit Counseling Service of Orange County U.S. Congress....Loretta Sanchez 2009

Affiliations

Affiliation Year
Coalition of Community Clinics 2010
United Way Member Agency 2005

External Assessments and Accreditations

External Assessment or Accreditation Year
Council on Accreditation for Children and Family Services - Accreditation 2013
Council on Accreditation for Children and Family Services - Accreditation 2009

Collaborations

CCCS-OC was one of the founding members of the Orange County Home Owners Collaborative that was created in 2007 to respond to the Housing Bubble Crisis when we had lines forming outside for assistance in saving homes.  Other members are NeighborWorks Orange County; Affordable House Clearing House, Legal Aid Society, Public Law Center and more.

CCCS-OC was successful in gaining $67k of funding from the AG Settlement in 2013 through another coalition with 211OC, Public Law Center, NeighborWorks and others.

CCCS-OC has been a founder of the California Coalition for Quality Credit Counseling for over 12 years.  This is a group of 12 similar agencies doing business in the State of California that supports and advocates programs to assist consumers and clients such as the PayDay Lending, Student Lending, and other predatory types of lending. 

Staff Information

Number of Full Time Staff 21
Number of Part Time Staff 6
Number of Volunteers 34
Number of Contract Staff 3
Staff Retention Rate % --
Staff Professional Development Yes

Staff Demographics

Ethnicity African American/Black: 1
Asian American/Pacific Islander: 3
Caucasian: 8
Hispanic/Latino: 9
Native American/American Indian: --
Other: --
Other (if specified): --
Gender Female: 16
Male: 5
Not Specified --

Plans & Policies

Organization has Fundraising Plan? Yes
Organization has Strategic Plan? Yes
Years Strategic Plan Considers 4
Management Succession Plan Under Development
Organization Policies And Procedures Yes
Business Continuity of Operations Plan Yes

Risk Management Provisions

Nondiscrimination Policy Yes
Whistle Blower Policy Yes
Document Destruction Policy Yes
Directors and Officers Insurance Policy Yes

Reporting and Evaluations

Management Reports to Board? Yes
CEO Formal Evaluation and Frequency Yes Annually
Senior Management Formal Evaluation and Frequency Yes Annually
Non Management Formal Evaluation and Frequency Yes Annually

Government Licenses

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CEO Comments

Consumer Credit Counseling Service of Orange County

PQI – SWOT Analysis

 
This analysis was prepared November 2013 for the Council on Accreditation and provides a good overview of the challenges facing Consumer Credit Counseling of Orange County. 

 

 

Competitive Advantage:

Consumer Credit Counseling Service of Orange County has a competitive advantage of differentiation based on our distinctive competency of quality. Our physical presence in Orange County and ability to provide service in-person, over the telephone and via the internet creates value for the community.   In-person with brick and mortar is a dying business model in the age of aggregated agencies, but this model is highly regarded by our board and community and a good fit for Orange County.

Internal Environment:

Strengths

  • Owns main office building

  • HUD approved

  • 6-month Financial Reserves

  • Skilled Staff

  • Low turnover

  • All counselors are certified by the NFCC

  • All Educators are becoming certified in the new NFCC Educators certification program

  • Approved for reverse mortgage, housing and bankruptcy counseling

  • Services available in English, Spanish and Vietnamese

  • Approved to offer Pre-Filing counseling Bankruptcy

  • Approved to offer Pre-Discharge Bankruptcy Education in 47 states

  • CCCS-OC has grown our community partners to over 300 in the last two years.

Weaknesses

  • Large portion of operational budget depends on volatile grant funding

  • Satellite offices are include yearly and moderate leases with 4 locations provided free

  • Booking counseling appointments at full capacity

  • Main office building work spaces near full-capacity

  • Fair share is based on voluntary creditor contributions

  • Credit contributions are decreasing

  • Great Recession has not been conducive to DMPs which is our most stable revenue stream.

  • Banks are still very cautious about lending.

  • Housing inventories are low due to capital investors impact.


 

External Environment:

          Opportunities

  • Good reputation with community

    • Has been operating in Orange County for 46 years

    • CCCS-OC has grown our community partners up 300+/

       

  • Brand recognition

    • Consumer Credit Counseling brand name is well-known nation-wide brand

  • Only NFCC member agency in Orange County with the CCCS-OC brand name

  • Accredited by the Council on Accreditation

  • Financial education in the United States is increasing in demand due the Great Recession

    recovery

     

            Threats

  • Legal restriction cap of $50 for Client Set-Up fees, and 8.5% or $35 for monthly client fees

  • Possibility of for-profit credit counseling agencies and debt settlement agencies in Orange County

    • These agencies damage creditability of non-profit credit counseling agencies and take potential clientele

  • Creditors providing their own in-house credit counseling and debt management programs

  • National Organizations are taking over smaller advertising in local yellow pages, radio and television ads

  • Current economic recession has affected squeeze profit creditors decrease and force them to pay fair share and suspend grant programs

  • Grant writing is time consuming, grant reporting has become more extensive and awards are unpredictable in frequency and amount

     

 

 

 

 

Consumer Credit Counseling Service of Orange County

PQI – SWOT Analysis

 

 

Competitive Advantage:

Consumer Credit Counseling Service of Orange County has a competitive advantage of differentiation based on our distinctive competency of quality. Our physical presence in Orange County and ability to provide service in-person, over the telephone and via the internet creates value for the community.   In-person with brick and mortar is a dying business model in the age of aggregated agencies, but this model is highly regarded by our board and community and a good fit for Orange County.

Internal Environment:

Strengths

  • Owns main office building

  • HUD approved

  • 6-month Financial Reserves

  • Skilled Staff

  • Low turnover

  • All counselors are certified by the NFCC

  • All Educators are becoming certified in the new NFCC Educators certification program

  • Approved for reverse mortgage, housing and bankruptcy counseling

  • Services available in English, Spanish and Vietnamese

  • Approved to offer Pre-Filing counseling Bankruptcy

  • Approved to offer Pre-Discharge Bankruptcy Education in 47 states

  • CCCS-OC has grown our community partners to over 300 in the last two years.

Weaknesses

  • Large portion of operational budget depends on volatile grant funding

  • Satellite offices are include yearly and moderate leases with 4 locations provided free

  • Booking counseling appointments at full capacity

  • Main office building work spaces near full-capacity

  • Fair share is based on voluntary creditor contributions

  • Credit contributions are decreasing

  • Great Recession has not been conducive to DMPs which is our most stable revenue stream.

  • Banks are still very cautious about lending.

  • Housing inventories are low due to capital investors impact.


 

External Environment:

          Opportunities

  • Good reputation with community

    • Has been operating in Orange County for 46 years

    • CCCS-OC has grown our community partners up 300+/

       

  • Brand recognition

    • Consumer Credit Counseling brand name is well-known nation-wide brand

  • Only NFCC member agency in Orange County with the CCCS-OC brand name

  • Accredited by the Council on Accreditation

  • Financial education in the United States is increasing in demand due the Great Recession

    recovery

     

            Threats

  • Legal restriction cap of $50 for Client Set-Up fees, and 8.5% or $35 for monthly client fees

  • Possibility of for-profit credit counseling agencies and debt settlement agencies in Orange County

    • These agencies damage creditability of non-profit credit counseling agencies and take potential clientele

  • Creditors providing their own in-house credit counseling and debt management programs

  • National Organizations are taking over smaller advertising in local yellow pages, radio and television ads

  • Current economic recession has affected squeeze profit creditors decrease and force them to pay fair share and suspend grant programs

  • Grant writing is time consuming, grant reporting has become more extensive and awards are unpredictable in frequency and amount

     

Foundation Comments

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Governance


Board Chair Dr. Donald Booth
Board Chair Company Affiliation Retired - Chapman University
Board Chair Term Apr 2013 - Apr 2015
Board Co-Chair Mr. Robert Reyes
Board Co-Chair Company Affiliation Broadview Mortgage
Board Co-Chair Term Apr 2013 - Apr 2014

Board Members

Name Company Affiliations Status
Mr. Allan Adler AWA Collections Voting
Dr. Donald Booth Chapman University Voting
Mrs. Cheryl Borden Consumer Credit Counseling Service of Orange County Voting
Mr. Mark Cheung Attorney Voting
Mr. William Cole W.R. Cole & Associates Voting
Mr. James McKown Retired Voting
Ms. Carol Moore Hyundai Capital America Voting
Mr. Roger Morris R.H. Morris Insurance & Financial Services Voting
Mrs. Wendy Munua Gray California United Bank Voting
Mr. Ron Novello Retired, County of Orange Voting
Mr. Robert Reyes Broadview Mortgage Voting
Mrs. David Sohn Retired - Auto Executive/Community Volunteer Voting
Mr. George Teats CPA Voting

Constituent Board Members

Name Company Affiliations Status
-- -- --

Youth Board Members

Name Company Affiliations Status
-- -- --

Additional Board Members and Affiliations

Name Company Affiliations Status
-- -- --

Board Demographics

Ethnicity African American/Black: 1
Asian American/Pacific Islander: 1
Caucasian: 9
Hispanic/Latino: 2
Native American/American Indian: 0
Other: --
Other (if specified): --
Gender Female: 3
Male: 10
Not Specified 0

Board Information

Board Term Lengths 2
Board Term Limits 2
Board Meeting Attendance % 75%
Written Board Selection Criteria Yes
Written Conflict Of Interest Policy Yes
Percentage of Monetary Contributions 100%
Percentage of In-Kind Contributions 20%
Board Orientation Yes

CEO Comments

CCCS-OC, like most non-profits, has been seriously hurt by the Great Recession, but our organization has much in the way of competitive advantage and strengths and weaknesses of which we capitalize on within the community. Managing our cashflow and the ebb and flow of grant processing takes much more of our time than in the previous years. Please see below a summary of CCCS-OC's challenges and opportunities: Competitive Advantage: Consumer Credit Counseling Service of Orange County has a competitive advantage of differentiation based on our distinctive competency of quality. Our physical presence in Orange County and ability to provide service in-person, over the telephone and via the internet creates value for the community. In-person with brick and mortar is a dying business model in the age of aggregated agencies, but this model is highly regarded by our board and community and a good fit for Orange County. Internal Environment: Strengths - Owns main office building - HUD approved - 6-month Financial Reserves - Skilled Staff - Low turnover - All counselors are certified by the NFCC - All Educators are becoming certified in the new NFCC Educators certification program - Approved for reverse mortgage, housing and bankruptcy counseling - Services available in English, Spanish and Vietnamese - Approved to offer Pre-Filing counseling Bankruptcy - Approved to offer Pre-Discharge Bankruptcy Education in 47 states - CCCS-OC has grown our community partners to over 300 in the last two years. Weaknesses - Large portion of operational budget depends on volatile grant funding - Satellite offices are include yearly and moderate leases with 4 locations provided free - Booking counseling appointments at full capacity - Main office building work spaces near full-capacity - Fair share is based on voluntary creditor contributions - Credit contributions are decreasing - Great Recession has not been conducive to DMPs which is our most stable revenue stream. - Banks are still very cautious about lending. - Housing inventories are low due to capital investors impact. External Environment: Opportunities - Good reputation with community - Has been operating in Orange County for 46 years - CCCS-OC has grown our community partners to over 300+ - Brand recognition o Consumer Credit Counseling brand name is well-known nation-wide brand - Only NFCC member agency in Orange County with the CCCS-OC brand name - Accredited by the Council on Accreditation - Financial education in the United States is increasing in demand due the Great Recession recovery Threats - Legal restriction cap of $50 for Client Set-Up fees, and 8.5% or $35 for monthly client fees - Possibility of for-profit credit counseling agencies and debt settlement agencies in Orange County. Pay day loans plague our clients now putting them in a never ending cycle of debt. - These agencies damage creditability of non-profit credit counseling agencies and take potential clientele - Creditors providing their own in-house credit counseling and debt management programs - National Organizations are taking over smaller advertising in local yellow pages, radio and television ads - Current economic recession has affected squeeze profit creditors decrease and force them to pay fair share and suspend grant programs - Grant writing is time consuming, grant reporting has become more extensive and awards are unpredictable in frequency and amount CCCS-OC receives glowing testimonials weekly from our clients. Our client satisfaction is monitored on a monthly basis by surveys to our clients in different stages of their activities with our organization. Our ratings stay high even in the situations where the we cannot develop a solution for the client. It brings comfort to our clients to know that they (usually the first time) have an expert and very objective counselor and/or educator working with them on their financial stability.

Foundation Comments

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Standing Committees

  • Audit
  • Human Resources / Personnel and Finance and Marketing and Nominating and By-laws

Financials


Revenue vs. Expense ($000s)

Expense Breakdown 2014 (%)

Expense Breakdown 2012 (%)

Expense Breakdown 2009 (%)

Fiscal Year Jan 01, 2016 to Dec 31, 2016
Projected Revenue $846,000.00
Projected Expenses $835,000.00
Form 990s

2015 990s

2014 Form 990

2013 990

2012 990

2011 990

Audit Documents

2015 Audited Financial Statements

2014 Audited Financial Statements

2014 Auditied Financials

2013 Audited Financial Statements

2012 Audited Financial Statements

IRS Letter of Exemption

IRS Letter of Determination

Prior Three Years Total Revenue and Expense Totals

Fiscal Year 2014 2012 2009
Total Revenue $966,664 $1,572,672 $1,970,327
Total Expenses $1,310,529 $1,672,437 $1,757,260

Prior Three Years Revenue Sources

Revenue By Revenue Source
Fiscal Year 2014 2012 2009
Foundation and
Corporation Contributions
$607,411 $860,640 $1,170,945
Government Contributions $28,952 $201,000 $50,005
    Federal -- -- --
    State -- -- --
    Local -- -- --
    Unspecified $28,952 $201,000 $50,005
Individual Contributions -- -- --
Indirect Public Support $0 -- $0
Earned Revenue $329,287 $491,105 $747,112
Investment Income, Net of Losses $1,583 $15,848 $2,412
Membership Dues $0 -- $0
Special Events $0 -- $0
Revenue In-Kind $0 $4,079 $4,800
Other $0 -- $0

Prior Three Years Expense Allocations

Expense By Type
Fiscal Year 2014 2012 2009
Program Expense $1,100,729 $1,419,000 $1,479,916
Administration Expense $209,800 $253,437 $277,344
Fundraising Expense $0 -- $0
Payments to Affiliates $0 -- $0
Total Revenue/Total Expenses 0.74 0.94 1.12
Program Expense/Total Expenses 84% 85% 84%
Fundraising Expense/Contributed Revenue 0% 0% 0%

Prior Three Years Assets and Liabilities

Assets and Liabilities
Fiscal Year 2014 2012 2009
Total Assets $972,734 $1,495,559 $2,013,025
Current Assets $279,595 $59,183 $500,479
Long-Term Liabilities $38,339 $21,143 $47,032
Current Liabilities $10,764 $13,134 $28,698
Total Net Assets $923,631 $1,461,282 $1,937,295

Short Term Solvency

Fiscal Year 2014 2012 2009
Current Ratio: Current Assets/Current Liabilities 25.98 4.51 17.44

Long Term Solvency

Fiscal Year 2014 2012 2009
Long-term Liabilities/Total Assets 4% 1% 2%
Endowment Value --
Spending Policy Income Only
Percentage(If selected) 100%
Are you currently in a Capital Campaign? No
Capital Campaign Purpose --
Campaign Goal --
Capital Campaign Dates -
Capital Campaign Raised-to-Date Amount --
Capital Campaign Anticipated in Next 5 Years? --

CEO Comments

The following information was part of the Council on Accreditation process to describe the financial health of CCCS-OC on November 2013 and is most appropriate for this request.

Describe the overall health of your organization’s finances:

The Great Recession (2007 through 2012) has taken its toll on most non-profits and CCCS-OC is not an exception.     The projected revenue and expenses for year end 2013 will approximate those of 2007 prior to the financial collapse: $1,538k Revenue and $1,517k expenses even though at the height of the housing bubble our revenue was $1,963k and expenses were $1,752k.   Some respectable funding was available through HUD at that time.

1. These are the significant factors that contribute to the decrease in CCCS-OC financials:

  1. The Debt Management Plan (DMP) is generally a consistent revenue flow from month to month and year to year. The industry has seen a 40-50% decrease in DMPs since the recession due to lack of jobs, lack of credit by the financial institutions, and general malaise of the economy.

  • Through DMPs the agency, receives a Fairshare contribution from many of the participating creditors, but the creditors have cut back their contributions to an average of 3-5% per dollar disbursed.   Cost studies show that to break even an agency requires at least 8%.

  • Through DMPs the agency, receives a nominal monthly service fee and start up service charge from the clients. Twenty percent fewer clients are coming through our doors which translates to a decrease in fees and monthly service charges.

  • Our clients have taken 70% of our counselors’ available appointments and these appointmenst do have much financial backing. HUD funding has decreased dramatically from a high of $120K in 2009 to 2013 at $29k. Other funding is available from Keep Your Home California and Making Homes Affordable but the funds are not robust to keep up with the demand.

  1. Grants and Funding are the other primary source of revenue for CCCS-OC which has been a steady (but erratic) source of funding.  Positively, the agency has filled its pipeline with over 20 new grant requests and these are still filtering in to our bottom line.   Competition is keen among the nonprofits and thus the awards are smaller to cover greater requests.

  2. The BNY Mellon Fund for CCCS-OC has a moderate growth on a yearly basis, but generally a spike in activity quickly becomes neutralized by a world event or the world economy. 

2. These are the significant factors that are contributing to an increase in CCCS-OC financials:     

       a)     A campaign has been developed by our national headquarters, Sharpen Your Financial Focus, that will provide a new source of funding for CCCS-OC. Four creditors have funded this program whereby Financial Coaching Sessions can be rewarded for conducting counseling sessions with the clients. Previously monetary rewards were not provided for full counseling unless the counseling turned into a DMP or into a Housing Program. Approximately, 40% of our counseling sessions can now receive some remuneration.    The program started on September 16 and rewards will begin within 60 days of the startup.   A maximum reward of $150 can be given if the client takes an on-line survey, a deep dive educational workshop and a full counseling appointment. 

b)            Grants and Funding is beginning to see positive results from the development of new grants.

                One grant was through our new membership with NCLR (National Council of La Raza) who awarded us with $120k of new HUD money.

                Another 20 new grants are in the pipeline with new funders plus a diligent team looking for opportunities.

c)            The AG Settlement, through Kamala Harris’ efforts, bestowed $420m to California which turned into an RFP process. At the end of the day, CCCS-OC was awarded $67k to spend on housing counseling.

Most of the $420m went to assist the California budget deficit and $16m remained to fund administration and counseling.

d)            Sharpen Your Financial Focus Program is a new service provided through our national office, National
Foundation for Credit Counseling, in coordination with the major credit grantors nationwide.  It has the potential revenue of $70,000 to $100,000 annually for the next 2 years.

 
 

 

 

 

 

Foundation Comments

Summary financial data is per the form 990s and consultation with the organization. Foundation/corporate and individual contributions are combined under Foundation and Corporation Contributions.

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