A YEAR OF 2016 ANNUAL REPORT

A YEAR OF RESTORATION 2016 ANNUAL REPORT

A Look Inside From the Chief Executive Officer... 3 Rescue and Relief... 4 Crossroads and LaunchPoint... 6 Samaritan Place and Hope Haven...........8 Serenity Recovery for Women... 10 A Heart to Serve... 12 KARM Stores... 13 Abundant Life Kitchen and Clean Start... 14 Financial Summary... 15 Mission Information and KARM Leadership... 16

The Math of the Mission Burt Rosen President/CEO Be sure to visit www.karm.org to read more about Knox Area Rescue Ministries. Here at Knox Area Rescue Ministries, we have an equation: Rescue + Relationships = Restoration The concept is simple. Once a guest has been rescued from crisis, the relationships we build with them lead to a restored life. And just like any good equation, all three parts are equally important. Just as you can t restore a person s life without meeting their basic needs, you can t guide them forward without building a relationship. I love this formula for two reasons. First, it gives us a clear vision for all that we do, and it reminds us that each guest is a unique, beloved child of God who was created with a divine purpose in mind. Secondly, it s a beautiful picture of the gospel: each of us was lost and desperate until Jesus saw our need, built a relationship with us, and led us into a restored, abundant life. Research shows that a man or woman will typically be homeless three times before they re able to break the cycle. By the grace of God and with the help of our faithful supporters, I believe we can do better than that. We want to prove that research wrong. In this year s Annual Report, you ll see a little of what we did in 2016. We still have much to do, but we re resting in the truth that the One who called is faithful. As we follow Him, He will continue to guide and direct our path. Thank you for your continued support. Your generosity makes our equation work in Knoxville every day of the year. Sincerely, 3

4 I know I probably wouldn t be alive today if I hadn t gone to KARM. Steve A man or woman living on the street has two main priorities: food and shelter. When either of these is in question, desperation can set in. Steve had a story just like that before he came to KARM. Hungry and homeless when he arrived, he was relieved to finally have a safe place to sleep and three meals a day. What began as a simple act of rescue gave Steve new hope for the future. He worked his way through the programs here, and today he has a full-time job and an independent life of his own. Stories like Steve s are the reason we offer emergency shelter to nearly 400 people every night* and serve almost 1,000 meals every day. In fact, KARM is the only organization in Knoxville that provides a free breakfast, lunch and dinner every single day of the year a service made possible by our financial partners. *To read more about our emergency shelters, turn to page 8.

Rescue and Relief BREAKING THE CYCLE OF HOMELESSNESS In your righteousness, rescue me and deliver me; turn your ear to me and save me. PSALM 71:2 The Berea Model The simple yet profound equation we introduced you to on page 3 (Rescue + Relationships = Restoration) sums up God s plan for us and the model we use at KARM. It has brought lasting life change to thousands of guests and helped us lead people into restoration with God, family, and community. Recently, we adjusted our approach based on the pioneering work of noted experts like Bob Lupton (Toxic Charity) and the successful learning-labor-service model at Berea College in Kentucky, and we launched a pilot that is ready to be rolled out. Dr. Lupton s key premises declare that one-way giving diminishes the dignity of the recipient. No one is so poor that they have nothing to give. People benefit most when they have the opportunity to participate in what is designed to help them. The Berea Model at KARM offers participants an unprecedented development opportunity. But unlike our crisis response, it is not free to the participant: students at KARM pay for what they receive through their service at KARM and in the community. This is a revolutionary change for KARM and those we serve. But one thing has not changed: the equation doesn t work without you. Without KARM s financial and prayer partners we would not be able to serve Knoxville s most desperate men, women, and families. Thank you for being a part of the equation and the solution. 5

Behold, I am doing a new thing; now it springs forth, do you not perceive it? ISAIAH 43:19a 6

Restoring Lives in Jesus Name WHERE TO BEGIN Crossroads Welcome Center We all love a warm welcome, and at KARM, we ve designed the Crossroads Welcome Center to be just that a welcoming place for those ready to embrace the new thing God is guiding them to. The idea is simple: Meet the homeless where they are and introduce them to the resources and services that can help them find the path to new life. The Crossroads Welcome Center is pioneering a whole new way to serve the homeless. It s a place where people can get off the street, use the restrooms, find computer and phone access, and even stow their belongings while they look for work during the day. Open Monday thru Saturday, Crossroads is the first step for those who truly want help. Ready for Change LaunchPoint LaunchPoint is a four-week program designed to reignite hope in our guests and help prepare them for change. Ultimately, the goal is to help our guests discover God s purpose for their lives, develop their own life plan, and learn to implement that plan in manageable steps. Participants in LaunchPoint learn the critical skills they ll need to break free from their past experiences and move forward with hope. Thanks to your support in 2016, we were able to: Support 25,610 visits by men and women to Crossroads Welcome Center Help 103 men and women complete the LaunchPoint program and celebrate LauchPoint s 500 th graduate Move 31 LaunchPoint graduates into The Bridge, our men s transitional housing program 7

In peace I will both lie down and sleep; for you alone, O Lord, make me dwell in safety. PSALM 4:8 8

A Place to Rest SAMARITAN PLACE AND HOPE HAVEN If I wasn t at KARM, I would probably have my sleeping bag down by the river. I absolutely feel rescued here I believe the Lord is guiding me in the right direction now, and I m very grateful. Mike Nearly 400 men, women and children spend each night at KARM. Thanks to your faithful support, KARM has three emergency shelters that house people from every race and age group each day of the year through every holiday, thunderstorm, and blizzard, our doors are open to the homeless in Knox County. Samaritan Place houses 200 men each night. Hope Haven, an emergency shelter for women, houses 103 single women, and our Family Shelter provides short-term residence for families with nowhere else to turn. Sadly, there are approximately 1,700 homeless individuals in our area in any given month. Of these, 75% are men, 25% are women, and 15% are under the age of 18. Many of these individuals remain hidden, living in cars or motels in an attempt to maintain their dignity. To combat these grim statistics, KARM works closely with local government and other providers to care for those struggling to find affordable housing. But for those who come to us, KARM is ready to provide emergency shelter. Because of your gifts, 93,312 nights of shelter were provided for men, women, and children seeking a safe place to rest in 2016. By God s grace, many more will find shelter this year. 9

Serenity WHERE KARM CARES FOR WOMEN IN RECOVERY Kristi s Path to Recovery My addiction had taken everything except my life. My home and children, material things, my self-worth... it took me into the streets, and it was a very dark time. Kristi finally got tired of fighting the addiction she d battled since the age of 14, and she made her way to KARM. As she stood on Serenity s doorstep, she was overcome with shame for what her life had become. But on the other side of the door, help and hope were waiting. As Kristi quickly realized, the staff at Serenity was ready to welcome her with love. 10 Kristi has found the path to recovery now, and she praises God for the overwhelming joy and peace that took the place of her shame. She s been working at the Knoxville Convention Center since completing the Abundant Life Kitchen program,* and she s grateful for the relationships she built here. These people that God placed in my life were so loving and encouraging, she says. Without KARM, I probably wouldn t even be alive, but now I have peace! Now I have peace. Kristi *Read more about ALK on page 14.

A Life Restored Cassandra has been a guest at KARM twice. The first time, she left before completing the program, but unfortunately, her return to one of Knoxville s project areas led her back into old drug habits. I was going to die, she told us. I overdosed two or three times I just didn t want to go back to the streets. Cassandra recalled the relationships she d built with our staff during her previous stay here, and she returned to Serenity with a new determination. Today, she is sober. She has a home of her own and two jobs including one at a KARM Store. But most importantly, she s given her life to Christ and has found new hope in Him. I didn t know Christ before, she says. But now, I surrendered to Him, and He has made me a beautiful, Proverbs 31 woman! A Year of Serenity In 2016, your generous gifts helped 66 women like Kristi and Cassandra find hope and healing at Serenity. While they re here, our guests receive: Refuge from abusive relationships Biblically-based residential recovery services Case management and life skills classes Individual and group counseling Crisis intervention Community-based mentoring Thanks to your support, these women found a place to rest and recover physically, emotionally, and spiritually. 11

A Heart to Serve At KARM, we want to be a place where God s people can use their gifts and abilities to serve the hurting in our community. We want everyone who walks through our doors to experience the lifechanging power of the gospel, and this frequently happens through our volunteers. We re blessed to have volunteers like Dennis and Mary working daily in all our facilities and programs: the Crossroads Welcome Center, our LaunchPoint program, dining room, administrative offices the list goes on and on. The work our volunteers do to build caring relationships with our guests is a daily testament to the power of the body of Christ. And even though they re the ones giving up their time, the truth of Proverbs 11:25 Whatever brings blessing will be enriched is underscored over and over. When you volunteer, you think you ll be blessing others, but you soon find out that you re the one being blessed, says Mary. When you put others first, it just changes you from the inside out. Our Lord transforms the way you see people in need! If you d like to serve the Lord as a volunteer at KARM, we want to meet you. Please visit www.karm.org/get-involved/volunteer to register for the next Volunteer Encounter. 12 In 2016, 1,972 individuals and groups volunteered at KARM. Their combined 14,639 hours of service saved the ministry $204,938 and did the work of 7 full-time employees, sharing the gospel, building relationships, and serving the hurting in our community. To all our volunteers, thank you for partnering with us.

The Thrift Store with a Mission KARM Stores serve the community by offering affordable, new or gently used merchandise to the general public. The revenue generated through the sale of donated items at our 18 locations is used to support the ongoing work of Knox Area Rescue Ministries. Our KARM Stores employees are very engaged in telling the story of KARM and relating the KARM mission statement Restoring Lives in Jesus Name. Each KARM Store employee is a vital link in helping a customer understand how donations and purchases at all KARM Stores translate to providing meals and shelter at the KARM main campus for our hungry, hurting guests. To see what we do firsthand, simply request a tour. We are happy to accommodate most requests for both individuals and groups. For store locations, contact info, donation information or to request a tour of our facilities, please visit us at www.karm.org/karmstores. You ll never believe what s available at our KARM Stores! For a first look at our unique selection, get the latest from @karmstores on Instagram delivered to your inbox. 13

Training for the Future CLEAN START AND ABUNDANT LIFE KITCHEN PROGRAMS Achieving and maintaining meaningful employment is a vital part of a restored life. To help our guests reach this critical step, we ve created two programs that provide classroom and hands-on experience to men and women staying at KARM. The Abundant Life Kitchen Food Service Job Training program is designed to give our guests an opportunity to improve their lives by preparing them to work in the food service industry. This 12-week program teaches the essentials of food preparation and safety, and ends with a 2-week internship in an area food service establishment. The Clean Start program teaches the skills necessary for a successful career in the commercial cleaning industry. Students in this program complete more than 235 hours of training, are certified through a partnership with Kelsan, Inc. and learn essential interview, workplace, and time-management skills. Thanks to your support, the men and women who completed these programs in 2016 are looking forward to careers that will help break the cycle of homelessness for their families. 14

Financial Summary HOW YOUR HELP MAKES A DIFFERENCE Sources of Revenue 75% Private Support 2% Grants/Foundations 2% Other 21% KARM Stores How Your Gifts Are Used 88% Programs 9% Fundraising 3% Management/ Administration Every man shall give as he is able, according to the blessing of the Lord your God which He has given you. DEUTERONOMY 16:17 A complete audited statement is available upon request. 15

KARM LEADERSHIP Board of Directors Dan Hurst, Chairman StrataG Dale Keasling, Secretary Home Federal Sally Fisher Morgan Stanley Wealth Management Dr. William Burkhart Summit Medical Group Neal Caldwell Dalen Products Rick Cox Rick Cox Construction Cathy Gonzalez CAC Dr. Joe Johnson University of Tennessee Dennis McClane Woolf, McClane, Bright, Allen & Carpenter, PLLC 16 Dr. H. Lee Martin Clarity Resources, LLC Wayman McLaughlin, Jr. Consolidated Nuclear Services W. Frank Smith, III Washing Equipment of Tennessee Bobby Stogner The Peoples Bank Douglas Yoakley CPA, Financial Consultant Leadership Team Burt Rosen President & CEO Joe Haas Vice President, Finance Cynthia Russell Vice President, Serenity Ministries Greg Greer Vice President, Programs P.O. Box 3310 Knoxville, TN 37927-3310 (865) 673-6540 www.karm.org Mission Statement Our mission is to seek to rescue the poor and needy of the Knox area by providing recovery services in Jesus name. KARM serves men, women and children through a variety of progressive ministry programs designed to break the cycle of homelessness.

P.O. Box 3310 Knoxville, TN 37927-3310 www.karm.org 2016 Annual Report YOUR IS ENCLOSED!

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P.O. Box 3310 Knoxville, TN 37927-3310 (865) 673-6540 www.karm.org Gift Amount Date Check # Please keep this portion for your records. Thank you for your gift! FOR YOUR RECORDS My Gift to Provide Rescue, Relationship & Restoration Yes, I will partner with Knox Area Rescue Ministries to help restore lives in Jesus name in the coming year. I ve enclosed my gift of: []Ask_1 []Ask_2 []Ask_3 []Ask_4 Mr. & Mrs. John Q. Sample 123 Any Street Knoxville, TN 12345 P.O. Box 3310 Knoxville, TN 37927-3310 (865) 673-6540 www.karm.org Instructions: Please make your check payable to KARM and return this form with your gift. See back to use your credit card. Your gift is tax-deductible as allowable by law. Thank you! TO RETURN WITH YOUR GIFT Please communicate updates/news via my email address: [MOTIVE CODE] [DONOR CODE] P.O. Box 3310 Knoxville, TN 37927-3310 (865) 673-6540 www.karm.org Gift Amount Date Check # Please keep this portion for your records. Thank you for your gift! My Gift to Provide Rescue, Relationship & Restoration Yes, I will partner with Knox Area Rescue Ministries to help restore lives in Jesus name in the coming year. I ve enclosed my gift of: []Ask_1 []Ask_2 []Ask_3 []Ask_4 Mr. & Mrs. John Q. Sample 123 Any Street Knoxville, TN 12345 P.O. Box 3310 Knoxville, TN 37927-3310 (865) 673-6540 www.karm.org Instructions: Please make your check payable to KARM and return this form with your gift. See back to use your credit card. Your gift is tax-deductible as allowable by law. Thank you! TO RETURN WITH YOUR GIFT FOR YOUR RECORDS Please communicate updates/news via my email address: [MOTIVE CODE] [DONOR CODE]

Please charge my gift to rush help to the hungry and homeless now! Please charge my: The amount of $ Card Number: Expiration Date: Name as it appears on card: Signature: Email: KNOX AREA RESCUE MINISTRIES P.O. Box 3310 Knoxville, TN 37927-3310 (865) 673-6540 www.karm.org Knox Area Rescue Ministries (KARM) is a member of the Evangelical Council for Financial Accountability (ECFA). Membership in the ECFA is your assurance that an organization adheres to the highest standards of stewardship and ethical financial practices. KARM is one of only 38 Rescue Missions nationwide, out of nearly 300, that are certified excellent members of the Association of Gospel Rescue Missions. KARM is supported by the gifts of friends and receives no federal funding to shelter the homeless. In all our communications, we strive to present the needs of homeless and poverty-stricken people with accuracy and integrity. Friends are invited to participate in KARM s work only as they feel led by God to do so. We believe God will meet the needs of the poor through the gifts of those who respond in this manner. All gifts-in-kind are appreciated and will be used where needed most prior to the expenditure of funds. KARM does not rent, sell or otherwise share our donor information. If gifts are received above a specific need, they will be used for programs where the need is greatest. No person is denied care based on race, creed, sex, disability or national origin. Please charge my gift to rush help to the hungry and homeless now! Please charge my: The amount of $ Card Number: Expiration Date: Name as it appears on card: Signature: Email: KNOX AREA RESCUE MINISTRIES P.O. Box 3310 Knoxville, TN 37927-3310 (865) 673-6540 www.karm.org Knox Area Rescue Ministries (KARM) is a member of the Evangelical Council for Financial Accountability (ECFA). Membership in the ECFA is your assurance that an organization adheres to the highest standards of stewardship and ethical financial practices. KARM is one of only 38 Rescue Missions nationwide, out of nearly 300, that are certified excellent members of the Association of Gospel Rescue Missions. KARM is supported by the gifts of friends and receives no federal funding to shelter the homeless. In all our communications, we strive to present the needs of homeless and poverty-stricken people with accuracy and integrity. Friends are invited to participate in KARM s work only as they feel led by God to do so. We believe God will meet the needs of the poor through the gifts of those who respond in this manner. All gifts-in-kind are appreciated and will be used where needed most prior to the expenditure of funds. KARM does not rent, sell or otherwise share our donor information. If gifts are received above a specific need, they will be used for programs where the need is greatest. No person is denied care based on race, creed, sex, disability or national origin.