More than tax status sets Mosaic apart as a Nonprofit
There are often misconceptions about nonprofit organizations. The truth is that, in many ways, nonprofits operate as a business in the same manner as a for-profit does.
A key difference between nonprofits and for-profits is tax status, which in Mosaic’s case, is the difference between reinvesting profits in the core mission of the organization rather than using profits to benefit owners and investors.
Mosaic leaders say being a nonprofit not only sets the organization apart, it also brings unique advantages.
Business Expertise and Margin Management are Mission-Focused
Because Mosaic operates in a Medicaid-funded services arena, the organization is not able to set a price for its services. Instead, the organization must accept the Medicaid rates that states set to reimburse service providers. That makes business expertise critical for success.
“Mosaic is 99% dependent upon government funding,” said Scott Hoffman, Chief Financial Officer. “Some people think nonprofits don’t have business expertise to manage those funds. We’re in a very good financial position, because we have to be sustainable just like a for-profit.”
Mosaic’s level of professional expertise in all areas—including service delivery, finance, technology, compliance, human resources, project management and more—is as high as any for-profit.
The difference is in values alignment, Hoffman said, because Mosaic holds a different standard about who should benefit from the margin between costs and reimbursement: the people at the core of the mission.
Service Quality Second to None
Jenniffer LeDoux, Chief Operating Officer, said the margin is thin, but all of it gets invested back into the business and focuses on people.
LeDoux noted that some organizations maintain an operating model wherein an open spot needs to be filled as quickly as possible to maximize profitability. Not Mosaic. Rather than seeing someone who needs services as a long-term revenue stream, Mosaic sees them as a whole person.
“We take time and we listen to people,” she said. “We learn what is important to them and what is important for them. Our personalized services match what a person is looking for with the best option, which means we don’t always go fast.”
Whether the person chooses the Mosaic at Home® host home/shared living service or a traditional group setting, the focus is on the person’s happiness and the outcomes they value, which drive toward a higher level of satisfaction. Taking longer means we may forgo immediate revenue by prioritizing long term stability and satisfaction for the person supported, LeDoux said, but instead positioning the person for stability and long-term success.
Mosaic’s quality also shows in its approach to regulations, LeDoux said. Complying with state and federal regulations is the floor for what Mosaic does, not the ceiling.
For-profit organizations often work to meet regulations, while Mosaic works to exceed them.
“States generally pay for the support needed for the activities of daily living (dressing, bathing, etc.), medication management and supervision” LeDoux said. “Mosaic prioritizes more than that and goes further to ensure people are able to live their best lives and have their dreams come true. It is just woven into the fabric of our organization.”
Innovation Drives Solutions
Cheryl Wicks, Vice President of External Affairs, said being a nonprofit that focuses on the whole person helps in advocacy efforts.
“We come to the table with solutions to issues,” she said. “We have to be creative with our minimal funding and Congress knows that. We lift up innovative service models and solutions to serve more people, especially in rural communities.”
One example Wicks noted is Mosaic at Home®, the organization’s shared living/host home service. The service helps fulfill the needs and desires of the person while also offering a personalized service that accommodates the needs of those living in rural communities.
Fundraising Has Significant Impact
Something that aids quality and innovation is Mosaic’s ability, as a nonprofit, to do fundraising.
Hoffman said fundraising frees resources to be directed toward delivery of services, allowing the team to be focused on quality, not finances. Money raised through fundraising allows Mosaic to provide additional supports and stand in the gap between what Medicaid pays for and what people need.
Renee Coughlin, Chief Advancement Officer, noted that while fundraising is a small percentage of Mosaic’s overall revenue, the impact is incredibly significant.
“That impact is felt in the lives of individuals, in the ability to capture growth opportunities that present themselves and in organizational investment in tech and data systems, leadership development and more,” Coughlin said.
Creating a Winning Culture
Combined, these advantages for Mosaic as a faith-based, nonprofit organization create a culture where people feel they belong. LeDoux noted it has been that way since the organization was founded 113 years ago, even as it has grown.
“You will be supported, because people matter to us,” LeDoux said. “Mosaic is a small town spread over 12 states—it is a highly relationship-driven culture. It brings people to us and makes them want to stay.”