EO Annual Report

ANNUAL REPORT JULY 2024 - JUNE 2025

Letter from the CEO & Board Chair

2025 EO Board of Directors

At EO, we believe thriving communities are built together.

Heather Nicholson, Chair Owner, Proventus Properties LLC

This past year, our region proved that again and again. Through bold ideas, strong partnerships, and community rooted action, we moved from vision to impact, connecting more people to the resources they need to learn, work, and thrive. We saw the EO Hub come to life as a national model for innovation. We opened EO Career Commons, bringing career exploration to thousands of students across Southwest Virginia. We supported over 1,400 teachers, served hundreds of families through childcare initiatives, and engaged nearly 500 stakeholders in designing what comes next. This report celebrates that momentum and builds on it. You’re part of something powerful: a collective commitment to shaping a future where people stay longer, live well, and dream bigger in Southwest Virginia. Your support takes EO beyond creating the vision to catalyzing collaborative results. We’re surfacing next-gen solutions, forging new partnerships, and lifting up local voices that will guide our work in the months and years ahead. Still, we know the work is just beginning. That’s why EO will continue to research, pilot, and scale the big ideas our region deserves. Thank you for believing in what’s possible and for building it with us.

Cameron Bell, Vice Chair Attorney, PennStuart

Dennis Carter, Secretary Vice President of Strategic Partnerships, Emory and Henry University Alan Jones Jr., Treasurer Vice President-Technical Accounting, Alpha Metallurgical Resources Anthony Keck EVP, System Innovation & Chief Population Health Officer, Ballad Health A. J. Robinson Director, Communication and Tourism for Tazewell County Steven Smith President and CEO, KVAT Food Stores, Inc Brendan McSheehy VP of Innovation & Intellectual Property, Universal Fiber Systems LLC Michael Quillen Retired, Former Founder and Chairman of Alpha Natural Resources Catherine Potter Advisor to the President and General Counsel, Roanoke College 2025 EO Holdings Board of Directors Michael M. Robinson, President Director, A. Linwood Holton Governor’s School Jonathan Sweet County Administrator, Pulaski County

With gratitude,

Travis Staton President + CEO

Heather Nicholson Board Chair

Travis Staton, Vice President President and CEO, EO Companies

Tom Fowlkes, Secretary Attorney, Retired

ANNUAL REPORT

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Statement of Financial Position (Unaudited)

Fiscal Year 2024-2025

Assets

EO Companies EO Holdings

EO Companies (EO)

Cash and Cash Equivalents Contributions Receivable, Net Grants Receivable Loans Receivable Prepaid Expense

$ 2,850,111

$ 595,215

The name EO is Latin for “go,” a reflection of the organization’s drive for action, representing EO’s commitment to moving ideas forward and challenging the status quo. By connecting cross-discipline experts, community members, and resources, we create data informed, innovative solutions in our priority areas of early childhood care and education and workforce innovation. EO’s goal is to create communities where people have the resources they need to live longer, healthier lives.

$ 1,896,689 -

$ 748,445

$ 200,000

$ 8,887,500 -

$ 160,186

-

Property & Equipment, Net

$ 5,934,642 $ 22,629,013

Total Assets

$ 20,477,573 $ 23,424,228

EO Holdings

LIABILITIES Accounts Payable & Accrued Liabilities Notes Payable, Net

To bring the Regional Workforce and Child Development Hub to life, EO leveraged a federal program called New Markets Tax Credits (NMTC), which helps direct private investment into community-focused developments. As part of this process, EO created a separate nonprofit entity: EO Holdings. EO Holdings was established to serve as the real estate owner during the required seven-year NMTC compliance period, allowing EO to unlock millions in federal support that reduced project costs and made the Hub possible. Looking ahead, EO Holdings is structured to manage not only the Hub but also future properties that advance EO’s mission. This flexibility ensures that when opportunities arise, whether through tax credit financing or other investment tools, EO has the capacity to secure and steward real estate projects that benefit the region.

$ 658,557

$ -

$ 5,157,837 $ 12,290,000

Other Liabilities Total Liabilities

$ 71,027

-

$ 5,887,421

$ 12,290,000

NET ASSETS Without Donor Restrictions

$ 10,109,962 $ 10,545,793

With Donor Restrictions $ 4,480,190 $ 588,435 Total Net Assets $ 14,590,152 $ 11,134,228 TOTAL LIABILITIES & NET ASSETS $ 20,477,573 $ 23,424,228

Revenue

Expense

9.27% 4.63%

3.62% 4.48%

Corporate and Individual Contributions In-Kind Contributions Grant Revenue Contract Services & Other Revenue

Program Service Expense Management & General Expense Fundraising Expense

12.99%

91.90%

73.11%

Revenue Breakdown

Amount

Expenditure Breakdown

Amount

Corporate and Individual Contributions

$ 646,792

Program Service Expense $ 11,141,428 Management & General Expense $ 438,868 Fundraising Expense $ 543,129 Total Revenue $ 12,123,425

In-Kind Contributions

$ 1,814,500

Grant Revenue $ 10,208,240 Contract Services & Other Revenue $ 1,294,074 Total Revenue $ 13,963,606

ANNUAL REPORT

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Affordable Childcare: The Key to Workforce Participation

For parents of young children, returning to the workforce can seem daunting, and in some cases financially impossible. This was the situation for Kelsey Hodges, a Registered Nurse at Johnston Memorial Hosptial, after having her two kids. Hodges, who currently has a 4-year-old and a 3-year-old, was able to take two years off from work to stay home with her children. However, she eventually found herself ready to return to nursing.

The average family would spend $50,000 on childcare in the first five years of their child’s life.

“It was hard to justify me leaving the home to go back to work just because of how costly it was going to be for two kids,” she explained. Unfortunately, Hodges isn’t alone in this struggle. According to EO’s 2025 Childcare Lanscape Report, in Southwest Virginia, 67% of children aged 0 to 5 have all available parents in the workforce, and there are only enough childcare slots to serve 80% of them.

“I missed being a nurse,” she said. “I missed being able to take care of my patients.”

However, one major hurdle stood in her way: finding access to affordable and quality childcare for her children.

Even if a parent is able to find a slot for their child, the cost is steep. Without any financial aid, the average family would spend $50,000 on childcare in the first five years of their child’s life alone, which is simply unattainable for many. During her search, Hodges discovered EO’s Ready Together, a program piloted by EO that assists with the cost of childcare for families in partnership with the Virginia Early Childhood Foundation and Ballad Health Virginia. Ready Together is a cost-share model, meaning that families, their employers, and the state of Virginia all contribute financially towards tuition. “It has impacted and blessed our family immensely,” Hodges said. “With this program, my two kids have been able to attend Ballad Health’s Center for Early Learning, and they are surrounded by the kindest teachers who love them so much.”

learning important social and emotional skills to ensure they are kindergarten ready. “My son will go to kindergarten next year and I am confident that he will be prepared and ready. They have both learned so much,” she said. Ballad Health is the first employer to join in the Ready Together program, but there are efforts being made to expand it across Virginia, because without programs like this, families with working parents, like Hodges’s, might not be able to return to their jobs and keep Virginia’s workforce strong.

Since its launch in late 2024, Ready Together has provided childcare to an additional 57 children.

Hodges said her children are not only cared for, but are also

“Knowing that my kids are safe and loved while I’m away from them at work, it just means everything.” -Kelsey Hodges

Support That Strengthens Childcare Providers

“My shared services coordinator, Meri, has been a great help to me. She comes to my site. I can call her anytime, and if she misses my call, she will call me back. If I have any issues or am searching for any information, she has been a great help in that aspect, too.” -Esther Babatunde

The current membership of the Shared Services Alliance is 52 providers.

Owning and operating a childcare site is a major undertaking, with much more involved than many people realize. Yet a passion for children keeps educators moving forward. That’s true for Esther Babatunde, a family day home operator in Wise, Virginia, who quickly discovered that caring for children is only part of the job. Behind the scenes lies a world of licensing and compliance, which is where EO’s Shared Services Alliance can step in to help. “When I came to America on my Visa, I couldn’t work, so I was taking care of my own little ones,” Babatunde said. “So, I thought, what could I do that would allow me to take care of my kids and at the same time support my own family financially.” She decided to enroll at Mountain Empire Community College and received a Career Studies Certificate in Early Childhood Development. From there, she was able to gain information about starting her own center, but that was not without challenges. “Also, a lot of families can’t afford childcare and not a lot of people know about family day homes as an option,” she said. During this time, Babatunde was introduced to EO and connected with the Shared Services Alliance. Alliance members receive a variety of support from EO staff, including help with licensing, human resources, and record keeping. One of the most immediate services Babatunde used was assistance with the certification and verification required to hire staff. “It was hard for me to make time to get the background check, fingerprints for my staff, but since I joined the alliance, I don’t have to do that anymore” she said. “I send EO the name of my staff, and they do the background check and coordination for me.” She said that one of the greatest benefits has been the

constant support of EO staff, especially her assigned coordinator, Meri Cook, as they have gotten to know each other over time. “She has been a great help to me. Meri comes to my site. I can call her anytime, and if she misses my call, she will call me back,” she said. “If I have any issues or searching for any information, she has been a great help in that aspect.” Babatunde is not alone, according to EO’s “Expanding Impact: Shared Services Alliance – 1 year Progress”, 76% of providers currently in the alliance reported an increase in feelings of support, and 47% saw a decrease in the amount of time spent on administrative tasks. Babatunde has now been operating her site for three years, and just this year was notified that EO’s Shared Services Alliance had been able to connect her with scholarship funding made possible by the Anne and Gene Worrell Foundation. This funding will go towards the cost of childcare for families at Babatunde’s site. The Shared Services Alliance works to support providers with subject matter experitise and direct coordination. This allows site directors, like Babatunde, to focus on what matters most: providing high-quality care for children in their communities.

After one year, 47% of providers saw a decrease in the amount of time spent on administrative tasks, allowing them to devote greater attention to their classrooms and enhance the overall quality of their programs.

ANNUAL REPORT

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Building the Future Workforce, One Internship at a Time

After graduating from high school, Isabella Stuart assumed she would have to settle for summer employment unrelated to her career goal of becoming an elementary school teacher. Instead, thanks to staff at her school, she connected with EO’s Ignite Internships, and she was able to spend her summer working as an Early Childhood Care and Education Intern at EO. EO’s Ignite Internships connects high school students 16 and older (including recent graduates) with local employers who partner with EO to offer paid opportunities. Each internship job is a minimum 82 hours of work with their given organization. Stuart shared that she has wanted to be a teacher ever since she was four years old. So, when a staff member at her high school told her about the available Ignite internships related to early childhood education, she was immediately interested “I’ve always had a passion for education, and I really wanted a job directed at the field I wanted to go into,” Stuart said. “I was interested in a stepping stone into what I want to continue doing.” During her time in EO’s Early Childhood Care and Education department, Stuart worked on a variety of projects, ranging from preparing materials for educator trainings, to helping with data and research, and even participating in professional development courses. However, Stuart maintained that her favorite experience was working hands on with elementary school students at EO’s Career Discovery Summer Camp. “As soon as I saw the kids again, I was like ‘this is what I’m meant for,’” Stuart said. “This internship showed me that my heart is with the kids and doing work in that setting.” Stuart is currently pursuing her degree online through UVA Wise while working full time as a one-on-one aide for a 4-year-old student at Abingdon Elementary in Washington County Public Schools. She credits her EO internship experience with helping her land the position and prepare for the classroom. “The reason they gave me this job is because of my experience at EO with Early Childhood Care and Education,” Stuart said. “It’s already benefitted me, and I know it will continue to benefit me.” Fostering interest in early childhood education is especially vital in Southwest Virginia. According to EO’s 2025 Childhood Lanscape Report, nearly half (46%) of childcare sites reported struggling to find and hire lead teachers, while 59% struggled to find additional staff, including assistant teachers. Dr. Susan Patrick, Senior Director of Early Childhood Care and Education at EO, served as Stuart’s mentor for her internship, and shared why she feels it is important to get involved with the program, both as an employer and as an employee of EO. “We want to encourage other employers to participate, so EO is leading by example,” Patrick said. “The importance

Students who complete internships are more likely to secure employment, earn higher wages, and remain in the community where they intern. of hosting an internship in Early Care and Education specifically is to highlight all the possible job pathways there are. Because we have various initiatives and partners, we are able to show broad opportunities in the education field, some that a high school student might not think of.” An internship is a valuable experience for students across industries, not only childcare. Not only does it allow students to gain experience in the field they are interested in, but it also allows some to discover early on if that industry is the right fit for them. For Stuart, it only strengthened her love for early childcare, but for students like EO’s Marketing and Communications Intern, Mia Jarvis, it helped clarify what she liked along with what she did not particularly enjoy. “I’ve learned what I want in a job, and what I don’t want in a job,” Jarvis said. “I’ve learned how to work with other people and was introduced to the workforce.” Lexie, an intern for CGI, echoed the same sentiment, saying, “I’ve found out what I wanted to do career wise because of this internship.” Nationwide research shows that internships are key in providing this career clarity for young adults. The Annie E. Casey Foundation’s “Pathways to High Quality Jobs for Young Adults” says that internships and other work-based learning experiences that involve positive adult relationships affect a young adult’s job quality over a decade later. That’s why programs like EO’s Ignite Internships are vital. They not only strengthen the region’s workforce pipeline in areas facing the greatest need, but they give students a vital chance to build skills and explore career paths that they would not otherwise have access to. “I was interested in a stepping stone into what I want to continue doing.” -Isabella Stuart

ANNUAL REPORT

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Helping Students Picture Their Futures Locally

One of the biggest challenges local high school students face is understanding what careers are truly available in their region. Thanks to EO’s Career Commons, Adriana Cox, a workforce engagement coordinator with Bristol Virginia Public Schools, says her students can now experience their career options firsthand.

30% of young adults aged 16-24 are the fastest growing demographic to leave the region

Career Commons, located inside EO’s Workforce and Childhood Development Hub in Abingdon, Virginia, gives students a chance to explore local job opportunities through interactive career “labs” designed with regional employers. Each lab consists of a building facade, an interior, and hands-on activities tied to that career path. For example, a grocery store lab might have a cashier simulation, while a dental lab could have a teeth cleaning activity. Cox says it is the hands-on nature of these activities that sets Career Commons apart from any other experiences students in the region have access to. “Students these days learn by doing, not just hearing or seeing,” Cox said. “Visiting Career Commons bridges the gap between what they are learning in the classroom and what they can experience in the world of work.” EO’s Career Commons serves students from third grade through recent high school graduates. A visit to the center looks different based on age, with the younger students focusing more on career discovery, and the older students preparing real-world materials, like resumes, and practicing job interview skills. Cox has visited the center multiple times with different groups of students. She says she hopes the experience encourages students to look ahead and consider what kind of life they want after school and identify the skills they will need to get there. “Career Commons gives students the opportunity to be

“Career Commons gives students the opportunity to be hands-on with their futures” -Adriana Cox

Career Commons Partners Appalachian Aggregates Appalachian Highlands Community Dental Clinic Appalachian Power Ballad Health Berry Home Centers Blue Ridge Auto Group BurWil Construction CGI First Bank and Trust Company Food City Friends of Southwest Virginia Lakeshore Learning Mountain Empire Community College New Peoples Bank New River Community College Paramont Manufacturing

hands-on with their futures,” she said. “After a visit, I hope that students are eager and excited about the future. I hope they gain confidence at Career Commons and afterwards, don’t feel as intimidated when they think about a future in those careers.” Gabe Foster, a junior at Holston High school, said his visit to Career Commons this spring exceeded expectations.

42 schools experienced Career Commons in the first few months of operation.

“It was a really cool experience; I had a good time,” Foster stated. “There’s a lot of interesting labs, that’s what really impressed me. I liked learning about all the different facets in each career path, and I learned about a lot of careers in the area.” This is the exact takeaway Career Commons aims to inspire, and why it was created. According to EO’s “Reversing the Outmigration of Our Emerging Workforce” report, young adults aged 16-24 are the fastest-growing demographic to leave the region, largely due to a perceived lack of local career options. The report also found that 30% of high school students plan to leave Southwest Virginia after graduation, and 29% weren’t aware of job opportunities in the area. Cox says she has witnessed this in her students and sees EO’s Career Commons as a crucial a way to bridge that gap. “Many times, students I see will talk about wanting to go away to college or move away when they turn 18, but the reality of it is, many of them stay or eventually come back,” she said. “If we can get them excited about the careers in our area, then hopefully, they will be more excited to stay and raise a family in this area.” With educators like Cox championing its mission, EO’s Career Commons has had over 2,000 students come through its door, helping them their region not as a place to leave, but as a place full of opportunities where they can build a future.

Southwest Community College Virginia Army National Guard Virginia Tech: Southwest Center

Virginia Highlands Community College Virginia Department of Transportation W-L Construction & Paving Wize Solutions Wytheville Community College

At First Bank & Trust Company, kids come FIRST. Every child in our community deserves an opportunity to dream big, unlock their potential, and build a brighter future. By supporting EO, our company goals align for a greater purpose – creating lasting impact, empowering the next generation, and building stronger communities for tomorrow. -W. Mark Nelson, President & CEO

Our Supporters Givers Society + Founding Donors VANGUARDS • Janice F. Hurt • Michael & Deborah Quillen PATHFINDERS • Tom & Donna Fowlkes INNOVATORS • Thomas & Kyra Bishop • Mike Thomas BUILDERS • Alan & Charlotte Jones • Heather Nicholson • Leann Vernon

Givers Club ALLIES • James Bade • Melvena Counts • Danielle Dye •

Rodney & Janie Fogg Jon & Mary Anne Holbrook Mark & Naoma Seamon Travis & Ryiah Staton Samuel & Joyce Blankenship Gary & Crystal Breeding Betty Carrico Whitney Caton Zachary Gauvin Lindsey Holderfield Eboni Joplin Carolyn Koesters Dr. Susan Patrick Michelle Stevens Jan Bailey Stout Dustin & Shauna Tilson Kevin & Kristy Worley Brendan & Connie McSheehy

• • •

SUPPORTERS •

• • • • • • • • • • • • •

I wanted to be a part of EO’s mission after learning about the childcare and educational components. Access to affordable, quality childcare is lacking in rural SW Virginia; this becomes a real barrier to lower income single parents or families needing a second income. I grew up in just such a family, so I’m familiar with the strain it puts on everyone. As the oldest, I frequently had to stay home from school to watch my three younger sisters, and my grades suffered as a result. I want to be a part of the solution that eliminates this. The blending of the childcare component with the educational is a giant step forward. -Jan Hurt, EO Founding Donor

ANNUAL REPORT

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Learn More About Supporting EO

Cause Partners

Programmatic Funding

• • • • • • • • • • • • • • • • • • •

Advantage Capital Anthem Healthkeepers

• • •

Anne & Gene Worrell Foundation Appalachian Regional Commission Child Development Resources

Ballad Health Bland County Crutchfield Delta Dental CGI

• Community Schools – Bristol, VA Public Schools • Community Schools – Dickenson County Public Schools • Community Schools – Norton City Public Schools • Community Schools – Washington County Public Schools • Early Impact Virginia • GO Virginia • Mooneyhan Family Foundation • The Rapha Foundation • Thompson Charitable Foundation • United States Department of Labor • United Way of Southwest Virginia • Virginia Commonwealth University • Virginia Department of Behavioral Health & Developmental Services • Virginia Department of Education • Virginia Department of Health – State Office of Rural Health • Virginia Department of Social Services • Virginia Early Childhood Foundation • Virginia Foundation for Healthy Youth • Virginia Talent Opportunity Partnership • Wellspring Foundation of Southwest Virginia • Workforce Innovation and Opportunity Act • 21st Century Community Learning Center – Carroll County Public Schools • 21st Century Community Learning Center – Virginia Intermediate School • 21st Century Community Learning Center – Virginia Middle School • 21st Century Community Learning Center – Virginia Primary School

Frozen & Dairy Food Council of NC

GrantFlow

Hitachi Energy

InCareK12

Jones Road & Bridge Keller-Ferguson Associates Letterpress Communications Needville Support Corp. King University

Pulaski County Smyth County Thompson & Litton

• Southwest Virginia Alliance for Manufacturing • The Innovate Fund • The Leader’s Perspective • Virginia Credit Union • Virginia Coalfield Economic Development Authority • W-L Construction & Paving

Jones Road & Bridge shares EO’s goal to support this region with resources, career readiness, and job opportunities, in order to build a skilled workforce and a thriving local economy. We take pride in our forward-thinking mentality and innovation in the construction industry. We know that the way forward is together, and we are proud to partner with EO to turn big ideas into solutions. -Jones Road & Bridge

ANNUAL REPORT

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CONTACT US

300 Towne Centre Drive Abingdon, Virginia 24210

276-525-4087

www.eoco.org

221 West Main Street Radford, VA 24141