Enlightened, able and selfless philanthropy

I’m proud to say the idea was mine and the money necessary to realize it my family’s.  American House negotiated the purchase of the building and oversaw the renovation.  Richard Field

EDITOR: When the skills to make the money are ably applied to how it is used, the benefits can be multiplied.  Richard’s knowledge and experience as a real estate developer and builder were essential in guiding the enterprise, helping with the negotiations, determining what risks were to be taken, and making sure that every Hungarian forint was wisely spent.

The article appears at http://www.voroskeresztbp.hu/article_499-hu.html

RED CROSS TO FOCUS ON HELPING HOMELESS FAMILIES

December 14th, 2010

At the opening of a new homeless shelter in Csepel, the Budapest Chapter of the Hungarian Red Cross announced plans to expand its shelters by 500 beds using a new, three pillar financing model.

As part of the Budapest Red Cross homeless assistance program an existing Csepel shelter has been moved into a larger building of significantly better quality.  A former workers hotel was converted into a shelter capable of sheltering as many as 115 people at night and 160 during the day during the crucial winter months.

The move enabled the soup kitchen, day shelter, night shelter, storage, bathing and health facilities to be housed in one building.  The shelter is situated in the middle of the Csepel industrial zone which helps residents find work.   Homeless workers employed by the precedent setting Red Cross labor market integration assistance program also helped with the renovation of the building.

Double the shelter spaces in three years time

Tens of thousands of Hungarians are threatened with the loss of their homes next year as a result of the current economic crisis.  It is for this reason the Budapest Red Cross resolved to increase the capacity of the shelters it operates by 500 beds in addition to the nearly that many it presently has, by converting hotels suitable for the purpose of providing temporary shelter over the next three years, said Istvan Kardos, director.  „We want to concentrate better on families.  We want to expand the number of institutions were it is possible for families to stay together so that the women and men needn’t go to separate shelters.”

Cooperation of three spheres

The Csepel homeless shelter is the first of the new shelters based on the model of public-private financial cooperation.  The proposed concept provides for the City or the District governments to provide the Hungarian Red Cross or other NGOs with the use of real estate on favorable terms.  The renovation and conversion of the buildings into homeless shelters is to be financed from private donations.  In this way the expansion of capacity can be achieved at minimal cost to the local governments which would retain ownership of the real estate.  The Csepel shelter is a good example of the cooperation:  the purchase, renovation and furnishing of the shelter cost around 120 million forints.   Of this amount 25 million was contributed by the District government.  The Hungarian Red Cross contributed 10 million towards the cost of furnishings.  The American House Foundation donated 31 million forints.  The rest of the 54 million is to be paid by the end of 2011.

The heads of Budapest and the district governments will be receptive to this approach and the details of this cooperation are to be discussed in the near future with the appropriate agencies and authorities, said Istvan Kardos.

City and District government support

At the opening Dr. Robert Szendredi, lead consultant to City Vice Mayor, Dr. Imre Pesti, said that the problem of homelessness can be solved with this kind of exemplary collaboration between NGOs and the public and private sectors.

Attila Ábel, Csepel vice mayor believes that in addition to housing it is necessary to provide work and respect to those living on the street.  The vice mayor stated that Csepel was preparing the most stringent budget for many years, but that it would continue to ensure uninterrupted continued cooperation with the Red Cross.