Founded in 1986, Wellspring is a faith-based youth development organization whose mission is to help young people in the Brightmoor/Old Redford neighborhood in Detroit develop spiritually, socially, academically, and economically. The nonprofit accomplishes this through Kumon-based tutoring, recreational and community service opportunities, a teen discipleship group, and a six-week summer employment program for teens and young adults. Wellspring also strengthens the community by rehabbing and renting housing on a limited basis, remediating blighted properties, and providing individualized support to a small number of adults each year.

IFF has worked with the organization since 2014, helping Wellspring expand its capacity and impact by providing flexible capital and real estate support as the nonprofit has navigated changing facility needs brought on by organizational growth. The partnership began with a $60,000 loan that enabled Wellspring to renovate its 3,800-square-foot facility (a former single-family home), enabling the organization to triple its size. Three years later, Wellspring acquired a 2,235-square-foot house and three adjacent lots next door to its existing location. At the time, the organization had a long waiting list for its services, and the purchase provided Wellspring with additional space for programming.

By 2020, demand for Wellspring’s services had again increased dramatically, necessitating renovations to the house purchased in 2017 to accommodate the organization’s growth. With grant funding from the Max M. and Marjorie S. Fisher Foundation, Wellspring engaged IFF’s Real Estate Solutions team to assess the feasibility of the organization’s plans as a precursor to applying for capital grants to fund the project. As part of this process, IFF determined that the house couldn’t accommodate the full-size classrooms Wellspring needed. As a potential solution, IFF presented a scenario to Wellspring in which the organization could build an addition to the house vs. renovating the existing structure – highlighting the pros and cons of each approach from a programmatic and financial standpoint. Wellspring ultimately opted for a renovation of the property, which the organization is currently raising funds to complete.