Chrismaldi Vasquez, Associate [email protected]
Wandy Peguero, Family [email protected]
www.fiinet.org
Re-Establishing Social and Economic Mobility
$20,000 $38,040 $100,065$61,720 Household Income (quintiles)
Ben
efits
Num
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lds
Federal Poverty Line≈ $23,000 (for family of 4)
Median Household Income
≈50% of households above and below $50,000 annual income
Safety NetAccess based on need
Ex: welfare, food stamps, section 8, many non-profit programs
Benefits for those in crisis
Ben
efits
$20,000 $38,040 $100,065$61,720 Household Income (quintiles)
Num
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• In 3 years 97% move above poverty but 30% fall right back under (2008 Census study)
•Roughly half of US experiences poverty by age of 65 and half of the people who leave poverty will become poor again within 5 years (2009 Urban Institute Study)
Cycle of Instability
Safety Net – for crisis, but it’s not a springboard
Prescribed pathFamily directed by case managers or
follows a process determined by a program
Penalize progressAccess to benefits is reduced when
family makes progress (needs-based)
DependencyProgram is positioned as primary
support of family inadvertently reducing the importance of peers and community
Families are needyFamilies viewed as in crisis and in need
of outside help to make progress
$20,000 $38,040 $100,065$61,720 Household Income (quintiles)
Ben
efits
Num
ber o
f hou
seho
lds Examples: Mortgage interest deduction,
matched retirement, access to loans/investment, bulk purchasing…
Benefits for the well-off
Median Household Income
Federal Poverty Line
DependencyProgram is positioned as primary support of family inadvertently reducing the importance of peers and community
Safety net
Prescribed pathFamily directed by case managers or follows a process determined by a program
Penalize progressAccess to benefits are reduced if the family makes progress (needs-based)
Families are needyFamilies viewed as in crisis and in
need of outside help to make progress
Innovation: New Assumptions
Self-determined pathFamily acts on their own goals and determines steps for self advancement
Invest in initiativePositive actions keep, or even increase, eligibility for resources (strength-based)
MutualityFamily is expected and encouraged to share resources/expertise and assist
others in community
Families are capableFamilies exercise control and choice, utilizing their strengths to act
$20,000 $38,040 $100,065$61,720 Household Income (quintiles)
Ben
efits
Num
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Opportunity PlatformAvailable based on proven initiative
Self employed tax credit, low interest loans, match to investments, scholarships …
Opportunity Platform – the springboard
Opportunity Platform – Families Access as Needed
Traditional Lending Circles
Self organized
circles
Credit bldg. lending
circles
Nano-Loans
0% interest- KivaZip- FII Direct
Variable Interest- Prosper.com- Credit Unions
Personal Donors
Online Donors- Kickstarter- IndiegogoFi
nanc
ial T
ools
Matched Individual Savings
Mat
ch R
esid
ent
Savi
ngs
Match for home, business,
educ.
Resident raised scholarships $$
Match Group Funds
Awar
dsRe
plac
e
gran
ts
Project Outcome Awards
Recognition Awards
Soci
al C
apita
l FII Journaling & UpTogether – Online Social Community
Business /Other Advice, Mentors
Fellowships & Scholarships
Recommend & rate
programs
Outcomes
- Rid of predatory debt- Fixing credit rating- Startup capital- Tax break, jobs created- Joined Lending circle
- Down Payment for home- Saving for kids college- Started scholarship fund- Created jobs with our new business
- Got business mentor- Exchanged childcare- Found new clients at mixer- heard about free tickets- I can see my progress!
- Award for cleanup we did- Energized by recognition- Helping one another- Lower/discounted rates- Donated dental surgery
Children’s IDAIn development
Award after resident accomplishments
Resident who step up
Events/Conferences
Non-monetary Benefits
Donated services
To stimulate resident initiative
Group discounts
Tax Benefits
Self – employmentTax credit…
Match local investment
Match lending circle funds
Exchange services
Organize local mixers
Invites to events/trngs.
Program Model: Bottom UpProgram Model: Bottom UpTwo-year, FII-facilitated engagement with groups of families to catalyze change
• Families select to enroll with friends
• Each family gets computer to report progress, find opportunities & share solutions
• Require monthly group meetings & qtrly family meeting to audit reported progress
• FII pays families for reporting progress (kids grades go up; credit score improves, get part time job), to lead, facilitate & counsel one another. On average families earn $2.000/yr.
• Natural leaders/role models emerge & they get Fellowships, instead of staff, to lead others
FIIliaison
Facilitating Natural Networks Activities
“Ripple Families”
“Core Catalyst Families”
200+ applying in Boston.
Innovation: Scale thru Role Modeling1. Challenge groups of typical families (not the exceptional)2. Create vacuum of leadership which surfaces innovators3. Facilitate Communication of success and role models4. Have resources available to those that follow
Opportunity Platform:
Resources needed to scale
Starts a business, starts lending circle,
buys home …
Typical, not exceptional, child does well in school & can
become the role model, set standard
18% increase in average household income
41 businesses, with an estimated 70 jobs (FTE’s) created by businesses
6 new homeowners
180% average increase in savings for an average balance of $1,715 per family
Family Initiative
CH
ILD
RE
NH
EA
LTH
MU
TUA
LITY
80% of children reported grade and school attendance improvement
79% of children attended 104 different afterschool programs
48% of households reported going to routine medical checkups
44% of households lost weight and exercised regularly
43% of households immunized their children
75% of households led a community activity (e.g. youth workshops, women’s support groups, housing planning)
80% of households helped someone in the community (e.g. help get a job, offer a loan, provide childcare)
Financial Outcomes
Family Outcomes
Data Collection, Consumer Feedback
Set a baseline, track monthly, quarterly, and yearly
Track Income Asset Growth Awards Participation Ripple/Network Community Interaction
FII relies on family self determination & social capital
… pool money … provide emotional support
… share knowledge and information
… share resources
… Our role is to assure that this initiative has access to resources
… “keep an eye out” for one another
… make referrals
… share labor
… hold each other accountable
Families act as each other’s role models
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