Purpose Before Profit: Phil Mastrocola of Grace Solutions On The Benefits Of Running A Purpose-Driven Business
An Interview With Chad Silverstein
Stay involved in providing services so you know what your clients’ needs are and how to better deliver services to them.
In today’s competitive business landscape, the race for profits often takes center stage. However, there are some leaders who also prioritize a mission-driven purpose. They use their business to make a positive social impact and recognize that success isn’t only about making money. In this interview series, we are talking with some of these distinct leaders and I had the pleasure of interviewing Phil Mastrocola.
A strong community advocate dedicated to finding community-wide solutions to the problems of unhoused people in the City of San Jose, Phil has served as Executive Director of Grace Solutions–a San Jose-based nonprofit dedicated to helping the unhoused in the community with dignity and compassion–since 2017. Previously, he was Director of Homeless Outreach Programs at Grace Baptist Church and served as a member of the City of San Jose Sanctuary Task Force. In 2014, he also founded the Housing For All Alliance, an advocacy group in Santa Clara County that focuses on promoting long term housing solutions for the unhoused, and in 2015, the Winter Faith Collaborative, a network of forty-five faith communities established to supplement the urgent need for shelter beds, daytime warming centers, and safecar parks in Silicon Valley.
Thank you so much for doing this with us! Our readers would love to get to know you a bit better. Can you tell us your “Origin Story”? Can you tell us the story of how you grew up?
I grew up in the 1950’s at a time when a huge number of families were migrating from the east, mideast, and midwest to California, causing the rapid population growth of small agricultural-based towns like San Jose. My father was an immigrant and my mother, a first generation American, both Italian/American and both very dedicated to broadening opportunities to experience Italian culture, art, and music in the Santa Clara Valley. They lived out their passion and followed the American Dream by founding an international travel tour business, escorting thousands of friends and neighbors to Europe, Asia, and places in between, but especially Rome — where my father’s entire family still lives.
I attended 4th and 5th grade in Italian schools while living in Italy but finished my Catholic education in San Jose (Bellarmine College Prep then later Santa Clara University.) I learned piano, performed in the choir, and was part of both theater and musicals throughout. My parents emphasized the need to be a part of the community, give back by volunteering, and always serve those who are in most dire need. While in school, I became part of the social service volunteer opportunities and ended up running campaigns to help those in poverty and without a voice in our community.
It didn’t dawn on me until recently that I am now doing the same work that I started doing in high school. Reverting back to what I love after years of being part of the for-profit real estate industry doing work that I was not in love with, but what most baby boomers were expected to do.
Can you share the most interesting story that happened to you since you began leading your company or organization?
Collaboration occurred spontaneously in 2015 when a group of unhoused advocates railed against the unfortunate destruction of a five hundred-tent homeless encampment along Coyote Creek near downtown San Jose. The encampment was longstanding, dating back 30 years, and home to thousands of unsheltered residents including survivors of a major flood downtown only a year before. Advocates, leaders of nonprofits, faith, and other community organizations came together to protest City Hall’s action and warn of the risk of smaller encampments spreading throughout the inner city neighborhoods.
At first, driven by frustration and outrage, the conversation with city leaders was not productive, but our small organizing group continued to meet with Housing Dept staff in the hopes of something changing. Then it did. They offered to assist with organizing our protesting cadre into a true partner. By sharing city staff and resources, we were able to create a powerful network of emergency services providers in churches, mosques, synagogues, and community organizations of all kinds.
The lesson here is that collaboration is a powerful resolution to even the most contentious issues we face in our society.
We often learn the most from our mistakes. Can you share one that you made that turned out to be one of the most valuable lessons you’ve learned?
Our organization is an offshoot of a collaborative movement of faith and other community organizations that I co-founded as a response to the mounting numbers of deaths of unsheltered people from exposure to the elements and the El Nino conditions ten years ago. Over 40 communities came together as the Winter Faith Collaborative to respond to the crisis, resulting in our opening sixteen emergency shelters, four daytime drop-in centers, five safe car parks, and an untold number of communities supporting the huge effort.
Communities that could not host guests in their facility, prepared food, washed towels and guests’ laundry, served as overnight shelter monitors, provided transportation, supported efforts by donating to offset hard costs, or were just there being a friend to one of the thousands of guests that were served during this time of extreme need. In the winters of 2014 and 2015, our group realized the state of the unhoused in central San Jose, many living in the creeks and river, was a crisis and one that the city, county, and water district was incapable of responding to adequately. Out of necessity, faith and other communities became instant friends and collaborative partners.
Grace Solutions, created by members of Grace Baptist Church, was the first shelter facility established out of the Collaborative. As a result of the increased need for space and new programs, I followed the lead of other nonprofits in Santa Clara County and began applying for government and other grants to help cover the cost of added staff and administrative overhead. Although our Board Members and I are unpaid volunteers, the Increase in costs forced us to choose between staying small, using volunteers and partners, or taking on grants to sustain our growth. I have learned that by staying small and preserving our long-time collaborative connections, we are better able to pursue our mission and live out our organizational values. Bigger is not always better. Instead of being part of the competitive nonprofit world, we’re searching
for ways to collaborate, while still meeting the increased needs of the population we serve. The best of both worlds if you will.
As a successful leader, it’s clear that you uphold strong core values. I’m curious what are the most important principles you firmly stand by and refuse to compromise on. Can you share a few of them and explain why they hold such significance for you in your work and life?
My values of faith, family, community and compassion have informed almost every decision I have made. My children have been part of the work that we do here, especially in the beginning when we operated an all-volunteer staff. Even now, they are a big part of the Grace family and the services we provide. I’ve received lots of feedback from our guests, who appreciate being part of the family atmosphere that we foster at Grace — ironically from many who, while unhoused, have lost connection to friends and family.
I formed these beliefs from my Grandfather. He immigrated to the US in 1910 and shared the trials of living in the slums of NYC as a teenager, enlisting to fight in WWI at 17 because his new-found friends did. Later he encouraged his siblings to immigrate as well. This was critical, because when he, grandma, and my mother lost their house in the depression, the rest of the family was there to help prevent them from becoming unhoused while Grandpa was able to recoup and find work and a new home to support their growing family.
What inspired you to start a purpose-driven business rather than a traditional for-profit enterprise? Can you share a personal story or experience that led you to prioritize social impact in your business?
Out of college in 1971, I joined Memorex Corporation for one year and then moved to working for small businesses in various positions. In 1974, I was co-founder of an electronic start-up company, which we funded with a total of $20,000. In six years, we increased annual revenues to over $5M, eventually selling the company to a competitor for $3.5M. I then founded several other for-profit entities, including property management and real estate sales, restaurants, and retail businesses.
I retired in 2012 and found that I didn’t miss the for-profit world and really never found it rewarding. One of my friends called me to share that he was unhoused but very happy volunteering as the publisher of the SF Street Sheet, a 30 year-old weekly started by the Coalition On Homelessness (COH) SF, but needed help. I spent two years volunteering with COH, learning about the injustice and lack of attention from our society to help the unhoused, even with their most basic needs. Instead, most California cities responded by criminalizing the unsheltered population, constantly pushing them further into hiding in creeks, parks, and industrial areas where they could hide in shame from the prejudice and judgment of neighbors.
I was not even aware that San Jose had the same crisis, along with many in my circle, mainly because we have so many rivers, creeks and rural areas where unsheltered populations can hide. Short story is that I began to provide services to this population, joined with others to create a Faith Collaborative and joined a
Faith community whose mission was serving both the unhoused and those with mental health challenges. Founding a non-profit organization was the natural next step, where we could use the resources of the vast inter-faith network in San Jose and connect with both cities and counties in the SouthBay to address the growing needs of the unsheltered population, which has more than doubled in the past ten years with no sign of improvement on the horizon.
This work has been very rewarding and personally meaningful for me. Having spent most of my working years in for-profit enterprises and now as a volunteer director of a non-profit, I appreciate that it brings me both daily challenges and rewards.
Can you help articulate a few of the benefits of leading a purpose-driven business rather than a standard “plain vanilla” business?
1- It gives you the opportunity to contribute to solving problems that impact the community. Some very vexing issues, like the unhoused, have caused communities to spend tremendous amounts of time, effort, and money on solutions that don’t work. It is a different experience to know you are making a difference for people in your own community.
2- It gives you the ability to interact more closely with neighbors and friends to first discern issues that are harming the community, then to create strategies to respond with the intent to solve them. Something that is really only possible with collaboration.
3- Lastly, it brings you the personal satisfaction that comes from co-creating change for good — vs- simply doing a job.
How has your company’s mission or purpose affected its overall success? Can you explain the methods or metrics you use to evaluate the impact of this purpose-driven strategy on your organization?
1- Increase in giving from those who support our mission and goals
2- Feedback from our guests that we have made a difference in their lives.
3- Positive response from staff and volunteers that they find the work with us very rewarding.
Can you share a pivotal moment when you realized that leading your purpose-driven company was actually making a significant impact? Can you share a specific example or story that deeply resonated with you personally?
One of our shelter guests, Ray, expressed gratitude for being part of our program from 2021 to 2022. Because of the support and guidance he received from our case management staff, Ray has been slowly able to turn his life around. After living on the streets for several years. Ray was able to expunge past criminal charges, complete job training, and find permanent work. In March, Ray was able to find permanent housing and even reconcile with his mother and sister, who he had lost contact with for many years. Ray’s story shows me that we are making a real impact on people’s lives.
Have you ever faced a situation where your commitment to your purpose and creating a positive social impact clashed with the profitability in your business? Have you ever been challenged by anyone on your team or have to make a tough decision that had a significant impact on finances? If so, how did you address and reconcile this conflict?
Being an unpaid CEO ensures I have no financial conflict-of-interests. Additionally, our Board of Directors are volunteers, many of whom are also involved in providing leadership and support for our programs and initiatives.
What advice would you give to budding entrepreneurs who wish to start a purpose-driven business?
Be prepared to work harder and longer than any for-profit job you’ve ever had.
Provide space for the input, ideas, and vision of all stakeholders, including clients in order to maximize collaboration.
Be clear about personal vision, beliefs, values going into the commitment. These will definitely be tested over time.
Don’t be afraid to fight for your principles. As leader, you will be challenged to compromise values in order to compete for funding and access to policy-makers. Don’t fall for it.
What are your “5 Things You Need To Create A Highly Successful Purpose-Driven Business.” If you can, please share a story or example for each.
1 . Be prepared to work long hours.
2 . Strive to work collaboratively with operational staff and partners.
3 . Listen to staff and volunteers in an effort to improve operational policies and procedures.
4 . Stay involved in providing services so you know what your clients’ needs are and how to better deliver services to them.
5 . Keep all stakeholders, including Board, staff, clients, donors, and partners informed on both the successes the organization has achieved and the challenges that it faces. Communication and transparency is key to survival and success.
I’m interested in how you instill a strong sense of connection with your team. How do you nurture a culture where everyone feels connected to your mission? Could you share an example or story that showcases how your purpose has positively influenced or motivated people on your team to contribute?
The best model for connecting and motivating others is to work side-by-side with staff to provide client services. Nothing is beneath me, whether preparing food, cleaning toilets, or dumping garbage. Staff, partners and clients have all
Observed that this model can be used as an effective team building strategy. Ironically, I love to serve and these acts are part of the service we provide. I find that I am happy and feel fulfilled when I am immersed in the service work, much
More so that the administrative work that I am responsible for…which I find boring and unfilling.
Imagine we’re sitting down together two years from now, looking back at your company’s last 24 months. What specific accomplishments would have to happen for you to be happy with your progress?
I would like to see us complete a bold and specific Strategic Business Plan that is both realistic and attainable with a focus on improving our organization’s sustainability and providing staff recruitment training that will guarantee a crew that delivers the most effective, compassionate and supportive set of services to our guests. I want to see that everything we do includes cultural competency, diversity and inclusion for all, and a high level of ethics and professionalism.
You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
I have advocated for a movement of inclusion of the voices of those we serve. They could not not only influence our organization’s growth and success, but that of the city, county, and state leaders that are in a position to create policies to truly improve their lives — an advocacy-focused leadership. It would powerful to start by creating a future that includes our unhoused clients as leaders of our own organization, and fulfill my dream that one would desire to replace me as executive director.
How can our readers further follow your work or your company online?
This was great. Thanks for taking time for us to learn more about you and your business. We wish you continued success!
About the Interviewer: Chad Silverstein, a seasoned entrepreneur with over two decades of experience as the Founder and CEO of multiple companies. He launched Choice Recovery, Inc., a healthcare collection agency, while going to The Ohio State University, His team earned national recognition, twice being ranked as the #1 business to work for in Central Ohio. In 2018, Chad launched [re]start, a career development platform connecting thousands of individuals in collections with meaningful employment opportunities, He sold Choice Recovery on his 25th anniversary and in 2023, sold the majority interest in [re]start so he can focus his transition to Built to Lead as an Executive Leadership Coach. Learn more at www.chadsilverstein.com
