Opportunity Junction
Impact Rating

Opportunity Junction

Top Poverty Nonprofit Impact Audited

Impact: $14,000 increases the earnings of a person living in poverty by $44,000.

Job Training and Placement Program meets the benchmark for high cost-effectiveness. The nonprofit increases income for a beneficiary by more than $1.50 for every $1 spent.

Note: The impact of this program may not be representative of the entire operation of Opportunity Junction.

Methodology

Governance: Passes checks

Mission

At Opportunity Junction, we believe that everyone who is willing to work hard deserves an opportunity to succeed. Our mission is to fight poverty by helping low-income Contra Costa residents gain the skills and confidence to get and keep jobs that support themselves and their families.

Cause

Poverty

Rated Program

Job Training and Placement Program

Location

Contra Costa County, CA

Location

Antioch, CA

Donations processed by the nonprofit.

Cause

Poverty

Rated Program

Job Training and Placement Program

Location

Contra Costa County, CA

Location

Antioch, CA

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Rated Program

Additional analysis available:  Download

Program

Job Training and Placement Program

Activities

The Job Training and Placement Program offers the computer and life skills training necessary for administrative positions; a paid internship; case management and counseling; job placement; and ongoing career services for alumni of the program.

Program Type

Workforce Training

Beneficiaries Served

People living in poverty

Geography

Contra Costa County, CA

Outcomes: Changes in people's lives. They can be caused by a nonprofit.

Costs: The money spent by nonprofits and their partners and beneficiaries.

Impact: The cost to achieve an outcome.

Cost-effectiveness: A judgment as to whether the cost was "worth" the outcome.

Outcomes

Outcome Metric

Increase in earnings of a person living in poverty.

To calculate impact, we estimate how many outcomes the nonprofit caused.

Data Source

Outcome data collected through the California Employment Development Department. The California Employment Development Department collectes information on the annual earnings of California residents through their W-2 forms. The dataset provided the average annual earnings of Opportunity Junction participants over 10 years.

Time Period of Data

July 1, 2016, to June 30, 2017

Ratings are based on data the nonprofit itself collects on its work. We use the most recent year with sufficient data. Typically, this data allows us to calculate direct changes in participants' lives, such as increased income.

Method for Attributing Outcomes

We conducted an interrupted time series analysis, using regression analysis to project forward the pre-intervention trend in earnings as the counterfactual. It compared the post-intervention trend to the counterfactual to estimate impact.

To determine causation, we take the outcomes we observe and subtract an estimate of the outcomes that would have happened even without the program.

Cost

Data Source

Cost data reported by Opportunity Junction and data and assumptions about partner and beneficiary costs.

All monetary costs are counted, whether they are borne by a nonprofit service deliverer or by the nonprofit’s public and private partners.

Impact

Impact Statement

$14,000 increases the earnings of a person living in poverty by $44,000.

Confidence in Impact Calculation

ImpactMatters assigned a rating of 4/5 for the audit team's confidence in its impact estimate for the Job Training and Placement Program.

We calculate impact, defined as the change in outcomes attributable to a program divided by the cost to achieve those outcomes.

Rating

Benchmark for Rating

Impact ratings of workforce training programs are based on income generated relative to cost. Programs receive 5 stars if they increase income for a beneficiary by more than $1.50 for every $1 spent and 4 stars if income increases by more than $0.85 for every $1 spent. If a nonprofit reports impact but doesn't meet the benchmark for cost-effectiveness, it earns 3 stars.

Determination

The nonprofit increases income for a beneficiary by more than $1.50 for every $1 spent.

Why We Could Be Wrong

We welcome your suggestions for improving our methodology. Our methodology section includes explanations of how we mitigate these issues.

  • The outcome could oversimplify total impact. Using “increased earnings” as the metric of analysis may not intuitively convey the potential downstream benefits of participating in a workforce training program, such as reduced financial stress.
  • There could be multiple important outcomes not captured in our analysis.
  • Opportunity Junction may be spending additional money in order to serve harder-to-reach and/or particularly valuable populations.
  • In the absence of better data, we assume uniform counterfactual rates for programs, at the risk of masking variation across nonprofits.
  • Our estimates rely on data made public by Opportunity Junction on its website, annual reports, financial statements and Form 990s.
  • We only analyze programs that meet our criteria. As a result, this report may not fully reflect the impact of Opportunity Junction.
  • We do not assess what explains the nonprofit's cost-effectiveness.

We assign a rating to the nonprofit using the rubric:

  • There are indications of governance or financial health issues at the nonprofit.

  • After being given an opportunity, the nonprofit chose not to publish impact information.

    We are not yet issuing this level of star rating.

  • The rated program does not meet our benchmark for cost-effectiveness.

  • The rated program is cost-effective.

  • The rated program is highly cost-effective.

Read More

Nonprofit Comment

(Adapted from the Impact Audit.) At Opportunity Junction, we pride ourselves on being nimble and responsive both to qualitative and quantitative evidence of impact, challenges, and opportunities. We collect feedback from participants and alumni, and alumni participate in the governance of the organization. We look to our database for answers when we observe a decline or increase in placements, wages, enrollments, and applications. With the support of Tipping Point Community, we were the first workforce organization in California to access Employment Development Department (E.D.D.) wage data to open a window into long-term impact.

— Opportunity Junction

Before publishing, we ask every nonprofit we can to review our work, offer corrections and provide a comment.


Analysis Details

Analysis conducted by ImpactMatters and published on November 22, 2019.

This rating is based on an independent audit by ImpactMatters. Using data from the audit, ImpactMatters analysts calculated impact and assigned a rating.

We welcome corrections. If you are interested in exploring applications of ImpactMatters data, contact us at partnerships@impactmatters.org.

Governance Check

Opportunity Junction passes our governance check.

Overhead spending is reasonable (<35% of total spending)

Charity Navigator has not issued a fraud or mismanagement advisory

Opportunity Junction itself has not reported any material diversions of assets

Opportunity Junction itself has not reported any excess benefit transactions

Source: Opportunity Junction Form 990 and Charity Navigator

How We Calculate Impact

This rating is based on ImpactMatters analysis of the impact of Job Training and Placement Program relative to costs. Impact is the change in the social outcomes of people served by the program, net of the change that would have happened even without the program (the “counterfactual”); divided by cost. Learn more.

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Our collected guidelines on how we analyze impact of nonprofit programs.

Rating is a complex exercise and we urge you to read our frequently asked questions for details of how and why we issue these ratings.