Case 3: Dignity Home

Andželika Rusteikienė, Geri Norai LT, Vilnius University

Dignity Home

SOCIAL ENTERPRISE CASE STUDY

Societal need for this social enterprise

Lithuania, as many developed countries in Europe and It is important to mention that many Lithuanian worldwide, is experiencing the phenomenon of an seniors live in their own homes,4 which means they do ageing population with both the number and not have to pay rent for housing.5 But this also means proportion of older people growing in society.1 that they spend most of their income, especially This transformation is affecting the country’s during the heating season (end of Autumn, Winter and socio-economic environment and has considerable beginning of Spring), on maintaining uneconomical impact on most aspects of older society such as daily and unsuitable housing be it a flat or a house. Besides, livelihood, housing, healthcare, social protection, over 40 % of elderly people (more women than men) labour market, fiscal sustainability, amongst others. live alone6 because they have no family or their children live either in different places or have For example, according to the Lithuanian Statistic emigrated. Many seniors keep themselves distant, Department 2020 data, the average pension in even isolated, and experience loneliness in their Lithuania is €398.85, and the threshold of being at risk homes. Therefore, a new social enterprise, Dignity of poverty is about €345. More than a third, 37.7 % of Home (Orūs namai), was created to take an people 65-plus years old in Lithuania, are at risk of innovative approach towards solving the issue of poverty.2 Thus, the elderly population struggles to poverty and loneliness of mainly single elderly people cope with their daily needs of food, healthcare, and in Lithuania, focused on community housing – housing. It is an interesting fact that men have on co-living apartments. average a higher pension than women, €422 and €353 respectively.3 The gap occurs since women earn less on average than men during their working life.

Dignity Home is the first social enterprise in Lithuania that addresses a social issue of elderly people living alone in the apartments that are often too large and expensive for them. The enterprise rents an apartment that meets the needs of the senior who retains the property and rents it out. The income for the rented own apartment covers the fees of living in a community of elderly people in Dignity Home. In contrast to social care homes for elderly people, in Dignity Home the senior retains her pension. In this way, the social enterprise contributes to reducing poverty of lonely elderly people and enabling them to live a life of dignity.

Vision and Mission

The mission of the Dignity Home social enterprise is to contribute to reducing poverty and loneliness amongst elderly people. The social enterprise is based in the capital of Lithuania – Vilnius. Its mission has multiple layers of possible positive impact for stakeholders – elderly people (seniors), the government, and local municipalities, described in the “Impact” section.

The idea of this social enterprise is based on simple human values – neighbourliness and transparency.

“I envision how in ten years exactly ten co-living households will be built. I envisage how the homes will look like, how grandparents will live there, have morning routines when they take a shovel, and start digging the snow … I am so empowered by that vision” – says Marija Bunkaitė, the founder of Dignity Home. She started building the organisation in 2016 to pilot a new approach towards the social and economic problems of the ageing population in Lithuania, specifically lonely elderly people.

 United Nations Department of Economic and Social Affairs, Population Division (2019). World population ageing, 2019. Available at: https://bit.ly/2QuHT64. Accessed on 25-05-2020  Statistics Lithuania (2020). Skurdo rodikliai [Poverty metrics]. Available at: https://bit.ly/2EBFpQA. Accessed on 02-06-2020.  State Social Insurance Fund under the ministry of Social Affairs and Security (2020). Pensioners. Avsilable at: https://atvira.sodra.lt/lt-eur/?page=P11. Accessed on 02-06-2020.

 EUROSTAT (2020). Distribution of population aged 65 and over by type of household. Available at: https://bit.ly/2YDKRd3. Accessed on 30-07-2020.  Poverty and social disparity in Lithuania, 2019. Report. Lithuanian Anti Poverty Network. Available at: https://www.smtinklas.lt/. Accessed on 30-07-2020  EUROSTAT (2020). Distribution of population aged 65 and over by type of household. Available at: https://bit.ly/2YDKRd3. Accessed on 30-07-2020.

Resources Actions

Before starting the organisation the founder of the The initial idea of Dignity Home was to invite seniors social enterprise did comprehensive research to to rent out the properties where they have lived the understand if there is a societal need, interviewing most of their lives and move to live in the apartments over 100 people from different sectors, including equipped for them in a four apartment Dignity Home representatives of various organisations working with building. The income from the rent of their dwelling elderly people, such as the Order of Malta, Third Age fully covers the cost of living there (no extra payment Universities, and social workers. Many of them said the is required for rent, utilities, internet, or cable), so the idea is very innovative, very much needed but hard to seniors retain the whole of their pension for their implement in Lithuanian society. other needs. This is different from the elderly care housing provided by the state, which usually requires During the period of research, Ms Bunkaitė met a the transfer of the pension, or most of it, to the person willing to donate money to buy the first piece institution as payment for the service. The seniors’ of real estate to start the first Dignity Home. This was homes are rented out but remain their property, so the beginning of the journey and the offer which Marija they have the opportunity to return to their homes if could not refuse. She set up the NGO Dignity Home they choose. to receive the promised donation and to get started. Dignity Home is a place for independent living, where The founder of the organisation is the only employee no one regulates the lives of seniors, but there is so far. The organisation is supported by many always someone to help whenever help is needed. long-term or temporary volunteers who support the social enterprise in accountancy, information The Dignity Home apartment building consists of four technology, communication management, and other 27m2 apartments and a common area, where areas. everyone can meet, communicate and engage in their favourite activities. The apartment is well designed As a social enterprise, the organisation has multiple and adjusted to the needs of elderly people: it is income sources as well as donations. The social located on a ground floor, and there are no stairs. enterprise rents apartments for elderly people, selling There is a polyclinic, food market, pharmacy and cleaning services to keep it self-sustainable. All profits public transport stop nearby. and donations from private and corporate donors are reserved for scaling. There are many in-kind The apartment building is located in the Karoliniskes partnerships mostly in the construction area: discount area of Vilnius. prices on building materials, free access to construction tools, no fees on the account dedicated to collect money from sponsors, donors, and free internet is supplied.

Outputs and outcomes

After the first year of piloting the founder realised that So far the organisation is measuring the number of elderly people in Lithuania are afraid to agree to elderly people staying at Dignity Home as its outputs. long-term living in the apartments. The reasons for that are very different: fear of long-term The number of hours the elderly people as service commitment, or disagreement by the seniors’ providers spend on cleaning services. children. Therefore, elderly people are willing to rent the Dignity Home apartments and pay monthly from The amount of money saved is not applicable so far their pensions, as the rent is lower and safer than due to the changes in the operational scheme at the those on the market. moment. After the first year of piloting the founder started providing cleaning services. This opportunity arose As a social business, the organisation has two major types of clients: when one of the elderly residents shared the experience of cleaning the apartments and working tenants elderly for the company to spend her time and to feel needed. But the conditions offered by that company were those who rent the who rent the Dignity terrible so the founder of Dignity Home decided to apartments from elderly Home apartments and test an additional service in the market. In May 2020 people live there there were 3 clients for cleaning services.

Due to the opportunity to provide cleaning services one additional type of client has appeared: organisations/people who need cleaning services.

The senior has real estate property / housing

The housing remains her property but is rented

The senior lives in Dignity Home Her living here is paid by the money from the rental of her own property

The senior’s entire pension remains at her disposal

Impact

The social enterprise has a clear goal to improve the from increased rental market from seniors, which, lives of elderly people in Lithuania. Thus, the according to the founder of the social enterprise, organisation has at least three impact areas it is might be focused on minority groups such as observing and focusing on. One of the core impact refugees. Co-living apartments contribute to the areas the organisation measures is the level of variety of services for seniors and, according to Marija poverty of beneficiaries – elderly people. This is a Bunkaitė, sometimes elderly people just need “a quantitative measure that is monitored by the feeling of choice” in their life. Which means that they amount of money elderly people save by living in the can decide to stay in their own homes or go and live in Dignity Home apartments. a co-living place, which boosts their confidence and sense of dignity. Finally, such social enterprises The other metric which is in the plans to be used is the deepen society’s awareness about an ageing society level of loneliness. The feeling of loneliness is to be and the importance of responsibility / responsible measured while entering the households, after a attitude towards one’s ageing. month, a half a year, after a year, and so on. The social enterprise is planning to measure the The organisation is also looking into measuring the impact on the health of elderly people in the future. quality of life of seniors which is attributed to increasing disposable income for their needs on food, healthcare, leisure activities, etc.; the increase of social contact with their neighbours, volunteers; minimisation of administration work needed being a homeowner of their apartments. Partnerships with measurement developers are still sought after.

The social enterprise looks into the impact it creates for its stakeholders, such as the municipality and government. The municipality may experience a reduction in the amount spent on social benefits such as heating compensation, in the number of social workers need to take care of elderly people, and in the number of health care services due to reduced loneliness issues. The example of Dignity Home contributes to Vilnius city municipality vision – a city friendly to all ages. The State of Lithuania may benefit