What Donors Should Know Before Giving to Homeless Organizations

The Problem with Traditional Metrics

Charity rating sites often focus on the wrong things:

• • Overhead ratios: A low overhead percentage sounds good but says nothing about effectiveness. An organization could spend 95% on programs that do not work.
• • People served: Counting how many people received a sandwich tells you nothing about whether their lives improved.
• • Growth: Getting bigger is not the same as doing better.
• • Compelling stories: Emotional appeals do not indicate effective programs.

A shelter that serves the same 200 people year after year with no improvement in their situations has not accomplished anything meaningful, no matter how many meals it provides.

What Actually Matters: Outcome Metrics

Effective homeless organizations measure outcomes, not just outputs. Look for:

Housing Placement Rate

What percentage of people served move into stable housing? This is the fundamental question. Organizations that do not track this probably do not prioritize it.

Housing Retention

Getting someone into housing is only half the battle. How many remain housed after 6 months? 12 months? 24 months? High-quality programs track long-term outcomes, not just placements.

Return to Homelessness

What percentage of people return to homelessness after being served? Lower is better. This metric reveals whether interventions create lasting change.

Income Improvement

Are people employed or receiving benefits when they leave the program? Without income, housing stability is impossible to maintain.

Health Improvements

Are mental health symptoms managed? Is substance use addressed? Are chronic conditions under control? These indicators reveal whether root causes are being addressed.

Questions to Ask Before Donating

When evaluating an organization, ask:

• 1. What is your housing placement rate? If they cannot answer this, they are not focused on the right outcomes.
• 2. How do you measure success? Good answers focus on life change, not services provided.
• 3. What happens after someone leaves your program? Follow-up indicates commitment to lasting outcomes.
• 4. How long is your typical engagement? Addressing chronic homelessness requires months to years, not days.
• 5. What services do you provide or connect people with? Housing alone is insufficient for many people.
• 6. How do you coordinate with other organizations? Isolated programs are less effective than coordinated systems.
• 7. Can you share outcome data? Transparency indicates accountability.

Types of Organizations: What Each Does

Understanding different types of homeless services helps you give strategically:

Emergency Shelters

Provide immediate, short-term housing and basic needs. Essential for crisis response but do not address underlying causes. Best supported through coordinated giving with other service types.

Outreach Programs

Connect unsheltered people with services. Vital for reaching those who do not come to shelters. Look for programs that connect people to housing, not just survival supplies.

Transitional Housing

Temporary housing (6-24 months) with services. Good for people who need structure and support while rebuilding. Look for graduation rates and post-program outcomes.

Permanent Supportive Housing

Long-term housing with ongoing services for people with disabilities. The most effective model for chronic homelessness. Look for housing retention rates above 80%.

Rapid Rehousing

Short-term rental assistance and services to quickly move people from shelters to apartments. Effective for situational homelessness. Less appropriate for chronic cases.

Prevention Programs

Emergency assistance to prevent homelessness before it happens. Highly cost-effective when targeted correctly. Look for low shelter entry rates among people served.

Red Flags to Watch For

Be cautious of organizations that:

• • Cannot tell you what percentage of people they serve become stably housed
• • Focus heavily on emotional appeals rather than outcome data
• • Measure success only in meals served or beds filled
• • Have been operating for years without measurable progress
• • Resist transparency about outcomes
• • Require religious participation for services
• • Work in isolation from the broader homeless services system
• • Reject evidence-based practices like Housing First or MAT

Green Flags to Look For

Prioritize organizations that:

• • Track and publish outcome data
• • Focus on housing as the primary goal
• • Address root causes (mental health, addiction, employment)
• • Follow up with people after program completion
• • Coordinate with other organizations in the community
• • Employ evidence-based practices
• • Include people with lived experience in leadership
• • Are transparent about challenges, not just successes

How to Give Strategically

Give Unrestricted

Unrestricted funds allow organizations to use money where it is needed most. Designated gifts (for specific programs or items) often go unused or force organizations to spend in suboptimal ways. Trust good organizations to allocate funds effectively.

Give Consistently

Monthly giving of $100 is more valuable than a one-time gift of $1,200. Predictable revenue allows organizations to plan, hire staff, and commit to long-term programs. Sporadic giving forces short-term thinking.

Give Locally

National organizations have high overhead and may not allocate funds to your community. Local organizations know local needs and can often stretch dollars further. Ask where your donation will be used.

Consider Multi-Year Commitments

Addressing homelessness takes years, not months. Multi-year pledges allow organizations to make long-term commitments and invest in infrastructure. A three-year pledge enables planning that a single gift cannot.

Beyond Money

Financial donations are essential, but other contributions matter too:

• • Volunteer time (consistently, not just holidays)
• • Professional skills (legal, medical, accounting, HR)
• • Employment opportunities for program graduates
• • Advocacy for policy changes
• • Connecting organizations with potential partners

The Real Cost of Solving Homelessness

Understanding costs helps you calibrate expectations:

• • Permanent supportive housing: $12,000-18,000 per person per year
• • Comprehensive transitional programs: $15,000-25,000 per person per year
• • Rapid rehousing: $5,000-8,000 per household
• • Prevention assistance: $1,500-3,000 per household

These costs are real but compare favorably to the alternative. Chronic homelessness costs taxpayers $30,000-50,000 per person per year in emergency services. Solving homelessness costs less than perpetuating it.

A $500 donation might provide one month of supportive services. A $5,000 donation might house someone for a year. Understanding scale helps you set realistic expectations for your impact.

Why We Built The Steady Ground This Way

Our model at The Steady Ground is designed around the principles that actually work:

• • Outcome-focused: We track housing placement, retention, employment, and long-term success
• • Comprehensive services: Housing plus mental health, addiction treatment, job training, and community
• • Long-term commitment: Our program measures success in years, not weeks
• • Evidence-based: We integrate best practices from research and successful programs
• • Clinical assessment: Every man receives a comprehensive Stronghold Assessment to identify specific needs
• • Transparent: We share our outcomes honestly, including our failures

We welcome scrutiny because we are confident in our approach. Donors who do their homework will find an organization built to actually solve the problem.