Under One Roof Leads Way in Socia Capitalism and Financial Transparency for Non-Profit Businesses

San Francisco, CA – June 13, 2007 – The collapse of Wall Street darlings like Enron and the subsequent institution of Sarbanes-Oxley (SOX) has notoriously burdened public companies with increased scrutiny from investors and regulators over financial performance. The best-managed companies have risen to the challenge of this scrutiny to provide better transparency and visibility to investors, often creating a competitive advantage in the process. Under One Roof (UOR) —a San Francisco-based non-profit that has generated more than $3.8 million of unrestricted funding to Bay Area AIDS service organizations (ASOs) since 1990 — believes organizations should be held accountable for how well donor and investors’ dollars are utilized. As donors become more selective about where and how they give, traditional financial metrics such as cost of capital, earned income ratios and return on investment are becoming increasingly relevant in the non-profit world. As a pioneer in the growing movement towards social capitalism and venture philanthropy, UOR will exercise greater fiscal and social accountability and begin communicating its financial results to all of its stakeholders.

“Although transparency is already a required mandate as a 501c3, the Board of Under One Roof has made a decision to publicly announce our financial results and expectations for growth. We believe it is important to show stakeholders our performance and how successful we are executing on our unique business model, just as a public company is expected to do,” said Derek Barnes, Under One Roof’s chairman. “By publicly communicating our growth plans and performance, we hope to send a clear message to our donors, customers, volunteers and ASO partners that Under One Roof is an extremely effective social vehicle for positively impacting the 30 AIDS service organizations (ASOs) we serve that have earned income initiatives to offset shrinking government and corporate funding. Our community and supporters have the right to expect from us both fiscal and social responsibility,” Barnes concluded.

First Period 2006-2007 Results
In the period, ending January 31, 2007, UOR’s revenue increased by over 13 percent over last year, while profit margins improved by 30 percent to 13 percent. Operational and financial highlights from the period include:
o Reinstatement of a lapsed $45,000 grant from the City;
o Better utilization and management of the volunteer base due to better outreach, intake, orientation and ongoing development/training processes;
o Better vendor, pricing, discounts and terms which resulted in cost of goods reductions; by being more aggressive in planning open-to-buy schedules to sales trends and seizing vendor volume discounts, markdown/marketing dollars, return-to-vendor opportunities and donated merchandise;
o Better merchandise turn and fewer markdowns; same period the previous year merchandise turn was around 4x and this year it's about 5x,
o 13% increase in Under One Roof’s donor database.

Second Period 2007 Projections & Guidance
In the second period of 2007 (February to August), UOR expects overall revenues to be slightly higher than last year (about $530k Feb thru Aug or about a 5% increase). Better overall planning and management will produce a 40% increase in our Food & Gift Show revenue over last year. In addition to the improved operational efficiencies mentioned above, continued cost savings measures, better strategic and targeted promotional activities, and key investments to replace outdated infrastructure and systems this fiscal year, UOR should still see margins continue to improve. Engaging more vendor volume discounts, markdown/marketing dollars, return-to-vendor opportunities and focused donated merchandise procurement strategies are priorities in Q3 and Q3. The organization will begin to introduce a planned and organized markdown schedule and strategy to deal more immediately with slower moving merchandise and minimize lagging end-of-fiscal-year inventory and further improving merchandise turn.

End of fiscal year profit projection for Q3 & Q4 will be about $20k compared to a net loss of $21.5k same period last year. Typically, Q3 and Q4 are the slowest sales periods with a significant cash outlay required for fall and holiday inventory as well as production costs for our fall Champagne gala - SparkleSF. Historically, UOR has relied on its ASO partners to fund the fall and holiday inventory buy. With better cash management practices, UOR no longer requires this annual investment – as of September 2004. A conservative projected end of year total return to the ASO partners will be approximately $80k or about a 40% annual return on their initial contribution this fiscal year. We will complete our “building year” in a fantastic position to launch future growth.

A Unique Model
Under One Roof allows people multiple ways to make a difference in the lives of others impacted by HIV/AIDS – shopping, donating, and volunteering. It offers a unique opportunity to its ASO partners by allowing them to invest in the business by way of an initial, rolling contribution. UOR uses the contribution to fund a variety of revenue generating programs to continue its expansion as well as its core business — purchasing wholesale gift merchandise with preferred pricing and discounts, which it sells-through at retail. About 30% of the store’s inventory is donated new surplus merchandise from a variety of upscale retailers, vendors and manufactures with a dedicated team of volunteers who help with a variety of operational duties – improving overall margins. The proceeds are then distributed based on each ASO’s share holding. UOR also produces several large offsite sale events annually for donated gourmet food, wine and gift items from local tradeshows. Helping to keep the planet “green”, UOR has been recognized by the City of San Francisco’s Environmental Department for its recycling and reuse efforts – as surplus items donated and sold would otherwise end up in landfills.

In addition to its retail operations, UOR produces community events and fundraising benefits like Sparkle SF, San Francisco’s preeminent Champagne tasting and auction, as well as solicits private donations to help grow the business. UOR distributes one hundred percent (100%) of its proceeds after covering operating costs, back to its participating agencies. This allows the ASOs to secure unrestricted funds without any expenditure of operating dollars, staff or marketing – virtually outsourcing parts of their development and fundraising initiatives. This “earned income” approach is a significant benefit in an era of diminished public sector funding. UOR is experienced in garnering volunteer assistance, favorable payment terms, freight terms and pricing from wholesalers as well as generous merchandise donations to deliver higher profit margins that benefit participating agencies. On average, each participating HIV/AIDs organization receives over thirty percent (30%) annual return on their initial contribution.

About Under One Roof
Under One Roof generates unrestricted funds for HIV/AIDS service organizations (ASO’s) through the sale of high quality merchandise and from special event production. Using its unique philanthropic business model, Under One Roof creates new ways for people to support their community while providing critical private sector funding for 30 non-profit organizations, enabling them to focus on their service mission to provide direct and very necessary support to men, women and children struggling with the effects of the AIDS epidemic. These critical services include medical and psychological support, rent and legal assistance, access to hot meals and emergency financial assistance. 100% of Under One Roof’s profits are disbursed to ASO’s on a bi-annual basis.