CONGRESSIONAL BRIEFING

December 4, 2012

PresentersAnne Wilson, Chief Executive Officer

United Way of the Bay Area

Susan Gewirtz, Senior Associate, Family Economic Success The Annie E. Casey Foundation

Lorne Needle, Chief Community Investment Officer, United Way of the Bay Area

Kevin Jordan, Vice President, National Programs, Local Initiatives Support Corporation

Colin Austin, Senior Program DirectorMDC

Tse Ming Tam, VP Community InvestmentUnited Way of the Bay Area

Even with jobs, families struggle to achieve economic security Center for Working Families (CWF)

“No matter how hard you work, you can’t save money for toys or pizza.”

“There I am doing the right thing, and whoa! I’m in another hole that I’ve got to fill up.”

• Creator of the CWF concept• Provided seed funding and technical

assistance • Supports ongoing evaluation• Facilitates sharing lessons and findings• Builds a leadership group of funders and

implementers to scale and improve the approach

CWFs bundle services within and across 3 strategy areas

Employment/ Career Development

Income/ Work Supports

Financial Services / Asset Building

Job readiness,

job placement

Public benefits access Educational workshops and financial coaching

Hard skills training, job placement

Tax credits One-on-one financial coaching and counseling

Career advancement: education and skill training, advising

Student financial aid Financial services products: access to better priced products (check cashing, loans, savings)

CWFs make a real financial difference for families

Bon Secours$1,6002006-09

CNM Community College $8432006-09

Met Center $1,900 2006-07

Average Annual Costsper participant

Bundling services increases critical outcomes2008 report

CWF participants improving financial health across variety of metricsAbt Associates, 2011

• 55% improved their credit status, 2008-09

• Participants improved their financial behaviors– Tracked their expenses, filed tax returns, reduced their use

of refund anticipation loans, and saved for future purchases

• Participants maintained stable monthly income– Through combining reduced earnings with increased

income and work supports (despite the recession)

• Participants reduced use of debt to cover living expenses – While increased asset-building debt

CWF approach is flexibleWorks with different platforms and populations

PLATFORM TYPES1.National intermediaries with neighborhood-based community partners

– Key Measures : Total Family Income, Net Worth, Credit Scores, Employment Retention

2.Community Colleges– Key Measures: Student Retention, Credits Earned, Credential

and Degree Achievement, Income and Asset Improvements

3.Head Start programs, emerging strategy– Key Measures: Emergency Savings, Employment, Total

Family Income, and Long-term Social, Emotional and Cognitive Benefits for Children

Local Communities CreatingNational Impact

The San Francisco Bay Area

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San RafaelRichmond

Oakland

Vallejo

Bay Point

Fremont

Fairfield

American Canyon

San Francisco

San Bruno

San Jose

LISC Financial Opportunity Centers

Number ServedJuly 1, 2011- June 30, 2012

Across all sites 2011-2012 Fiscal Year

Who received at least 2 types of services (bundled) 14,950

As a % total participants 71%

People placed in employment 5,200

Net Income increases for those actively managing budgets

74%

Credit Score improvements for those addressing the score

60%

Total co-investment leveraged $8,400,000

Demographics

Percentage of clients who… 2011-2012 Fiscal Year

are female 56.6%

are African American/Black 57.8%

are Latino/Hispanic 26.2%

have a high school diploma or less 63.1%

are below Federal Poverty Line at program entry

76.1%

have criminal backgrounds 32.4%

are working at program entry 27.3%

Learnings from Mature Sites• Direct connection between

financial and workforce outcomes– Raising income & lowering

expenses together lead to better client success over time

• Systems change requires partnerships– LISC and United Way

working together in eight cities

– Community colleges workingwith CBOs in four cities

MDC Centers for Working Families

Helping Students Succeed

The opportunity & challenge

• Community colleges are uniquely positioned to help individuals and families move out of poverty through education and training

• 75% of community college students work and/or support a family, and need financial resources to complete post-secondary credentials

What do students experience?

• Financial Education Workshops

• Personal Financial Coaching

• Income Tax Assistance

• Matched Savings Programs

Achievements

• Increased student retention

• Local partnerships leveraged multiple sources of public and private funding

• Colleges institutionalizing practices for long-term sustainability

United Way of the Bay AreaSparkPoint Centers

21

What is the goal of SparkPoint?

We’re testing a model…

…to move as many individuals to financial stability as possible.

Financial stability defined

All Centers share the goal of helping individuals achieve financial stability, as defined by

SparkPoint Results 2009-present

• 7,000+ participants served at 10 sites• 55% made financial progress

– Credit Average credit score increased 80 points from 550 to 620

– Savings Average savings increased $215 – Debt Average debt reduction is $1,710– Income Average annual income increased by $9,132

• Clients who bundle are 5 times more likely to make progress– 4% of non-bundlers vs. 21% of bundlers

• Better integration improves bundling rates

Key Lessons LearnedParticipants

1. Bundling works

2. Success takes time

3. Language, education and work experience influence outcomes

4. Uniform eligibility criteria makes it easier for working families to get the help they need

Key Lessons LearnedSystems

1. Model changes how organizations work together

2. Better leverages resources

3. Better leverages data

4. Success takes time

Questions & Discussion