By Joanna Smith-Ramani, Guest Contributor on 09/13/2012 @ 11:00 AM

Tags: ALC 2012, Innovation

Joanna Smith-Ramani is the Director of Scale Strategies for D2D Fund, working on the expansion of successful innovation pilots. Prior to joining the D2D, Joanna was the Director of the Baltimore CASH (Creating Assets, Savings and Hope) Campaign, an asset building, tax preparation and EITC coalition in Baltimore, MD.

All too often, the act of saving is seen as a sacrifice and denial. It’s no wonder in that context that when given a choice between saving and spending on entertainment or something “fun,” most Americans choose the fun. It’s about time for Americans to get it all out of saving – an engaging product that powerfully bundles saving, entertainment, and a moment to dream. This bundle is not altogether different from what drives consumers to the $50 billion lottery industry. Imagine how many people could be reached if saving was an exciting game with no risk of losing?

Prize-linked savings (PLS) engages consumers to save by changing the savings experience. Savers are rewarded with prizes and incentives. By doing so, PLS reframes the act of saving into a fun game with real rewards, rules, suspense, and possibility. Different features of the game can be changed or customized to better suit a range of savings products and programs. The PLS game concept has no limit beyond creativity and can be applied in a variety of settings from banks and credit unions to prepaid cards and online financial management systems.

PLS programs began overseas and have been successful in the United States, most notably in Michigan. In 2009, Michigan credit unions participated in the PLS-based program “Save to Win” and rewarded members who saved by entering them into various savings raffles. Annually, one member got the shock of a lifetime when they won a $100,000 grand prize. Michigan credit unions increased their engagement with financially vulnerable consumers and kept them coming back for more – 64% of new savings accounts rolled over from one year to the next. The success of Save to Win Michigan inspired other states and entities to launch similar PLS programs to better serve consumers.

Since the pilot in Michigan, Save to Win (STW) has grown to 58 credit unions, with over 25,000 unique accounts saving more than $40 million. The state of Nebraska signed on to STW at the beginning of 2012 and is showing promising gains. In its first seven months, Save to Win Nebraska has engaged 10 credit unions and opened over 1,300 member accounts. These STW accountholders have saved over $1.1M, representing an average savings of $857. Recent legislation has opened the doors for more states to follow Michigan and Nebraska as they bring innovation to sustainable savings programs. Click here to learn more about Save to Win.

The game frame worked into PLS products has nurtured positive attitudes towards saving and motivated consumers to save for the long term. A new PLS lottery ticket model takes the game concept a step further by offering a “no-lose lottery ticket” offered by the experts in games - a state lottery. A consumer simply buys a designated PLS lottery ticket and the funds are held by the state in a savings account. The ticket is a “win-win” because even if a prize isn’t won, the entire cost of the ticket goes towards a savings fund the consumer can build up and use for their financial needs. The PLS lottery ticket is designed to attract a wider audience with the chance to win, without the risk of losing, generating high levels of excitement and reward-anticipation.

The PLS Lottery Ticket will be debuted at the 2012 Assets Learning Conference, where Doorways to Dreams Fund will be administering their own “lottery” complete with prizes. Join D2D Fund, PayPerks, and MD CASH as they offer insight into the future possibilities of prize-linked savings and how advocates can bring PLS to their state. View the agenda for more information on this session.

By Jimmy Crowell on 09/13/2012 @ 10:00 AM

Tags: Housing and Homeownership

Residents of the Stonegate Manufactured Housing Community in Minnesota definitely have a reason to celebrate! Last week, with the help of Northcountry Cooperative Foundation (NCF), the residents of Stonegate in Lindstrom, Minnesota formed a cooperative and collectively bought the plot of land beneath their homes from Pinewood Properties, Inc. Minnesota now officially has 6 resident-owned manufactured housing communities.

Cooperative ownership of manufactured home communities gives residents of land-leased communities, like Stonegate, security of tenure. They no longer have to worry about being forced from their communities if the property owner decides to sell it. Residents will also be able to enjoy greater financial stability and certainty through the stabilization of monthly fees. Monthly fees will be decided collectively and can no longer be raised by the hands of a singular owner who, often times, is removed from the community.

According to the Chisago County Press, 27 residents, representing more than half of the 50-site community, formed the cooperative. They agreed that current residents who did not want to belong to the cooperative could still pay rent for their plots of land. However; once they leave, their home must be sold to someone who agrees to become a member of the cooperative.

“I’m really proud of us and our neighbors – that we were able to work together to accomplish what we did,” said Stephanie Bushard, Interim President of the Stonegate Cooperative. “We are excited about the future of our community.”

NCF, a ROC USA® Certified Technical Assistance Provider (CTAP), helped form the cooperative and ensured a successful closing of the transaction. ROC USA Capital, the financing affiliate of ROC USA, carries a portfolio of pre-development and acquisition/permanent loans totaling over $50 million in ten states. Financing for Stonegate Cooperative was provided by ROC USA® Capital.

“We are extremely happy for the members of Stonegate Cooperative. As we learned from the first organizing meeting, many homeowners have lived here for decades. As is demonstrated by their strong leadership and inspiring initiative, Stonegate residents are committed to this community and have a very strong vision that they wish to realize and make happen here,” said NCF’s Executive Director, Warren Kramer.

Resident-owned cooperatives allow residents to build equity, maintain higher home values and exercise greater control over the land beneath their homes. With over 1,000 resident-owned communities nationwide—41 of which were converted by ROC USA CTAPs over the past three years—the movement is growing. There is still plenty of work to do in Minnesota though; over 6% of the state’s residents live in manufactured home communities!

By Veronica Weis on 09/12/2012 @ 03:30 PM

This summer, CFED asked Americans what they’re saving for by challenging them to send in their savings stories and photographs as part of the American Dream Photo Challenge. We received over 60 entries from contestants all over the country hoping to win the $500 grand prize. Here are the top finalists. Let us know your favorite on Twitter with the hashtag #ALC2012.

The top three winners will be announced on Friday morning during the Breakfast Plenary at the 2012 Assets Learning Conference by CFED President Andrea Levere.

Thank you to everyone who took the time to send in their savings story!

By Kim Pate on 09/12/2012 @ 10:30 AM

Tags: ALC 2012, Individual Development Accounts

Assets for Independence helps families rise out of poverty through grants to community-based nonprofits, universities, and state and local government agencies. These funds go toward individual development accounts, which are match savings accounts, and financial education and data collection. AFI participants use match funds to purchase a house, start or capitalize a small business, or pursue postsecondary education.

As our conference IDA sponsor, they’re dedicated to fostering new ideas and open forums for those working with individual development account programs as asset building strategies. Their impacts will be featured at the Assets Learning Conference this September at a number of sessions. For complete session descriptions, take a look below:

• Entrepreneurship Development Systems: Creating Strong Native Economies
  September 20, 2012 9:30 - 10:45 am
  
  Partners in the S.A.G.E. (Strengthening and Growing Entrepreneurship) Collaborative, one of six Entrepreneurship Development Systems funded by the W.K. Kellogg Foundation, will present the findings from their three-year project to create a seamless system of business development products and services for entrepreneurs in Native American communities. The presenters, a Native Community Development Financial Institution and Native Artisan Business support provider, have taken the lessons of the S.A.G.E. Collaborative and developed new strategies to help entrepreneurs in rural Native American communities eradicate barriers to funding and building their businesses. Presenters will describe these strategies in depth and how they have enabled entrepreneurs to access capital and business development services to create and expand viable rural reservation economies.
• The ASSET Initiative - Asset Building for Low-Income Fathers: Emerging Lessons and New Guidance for Asset-Building Organizations
  September 20, 2012  2 - 3:15 pm
  
  In 2010 the federal government launched an initiative to connect fathers in the child support system with asset-building services. Building Assets for Fathers and Families is helping child support agencies connect to Assets for Independence (AFI) projects around the country and in seven regions in particular. Come to this session to hear from AFI and child support program managers about lessons that are emerging on how best to provide asset-building services to these fathers as well as how partnerships are being formed between asset-building and child support agencies.
• Using AFI to Maximize the Impact of Asset Building Work
  September 20, 2012  2 - 3:15 pm
  
  Learn about how the federal Assets for Independence program can support your asset-building work in the community. The AFI program provides grants of up to $1 million to support Individual Development Account projects across the country. As a demonstration project, it gives grantees the flexibility to design a project that will meet the needs of their target population. Starting an AFI IDA project can multiply the impact of existing economic empowerment projects such as free tax preparation, housing assistance programs and financial education. At this session, you will hear from an AFI Resource Center representative about the process of designing an AFI project and submitting an application, and from a current grantee about how IDAs enhance their other areas of work.
• The ASSET Initiative: Summary, Lessons, Promising Practices
  September 20, 2012  2 - 3:15 pm
  
  The ASSET Initiative, sponsored by the Administration for Children and Families, HHS, brings asset-building tools, strategies and resources to staff and participants of all ACF Programs. Asset-building tools include savings and matched savings, tax credits and tax filing assistance, managing credit and debt, getting banked and financial education, and access to public benefits. This workshop will summarize key lessons and will highlight promising asset building practices within Head Start, child support, child welfare and TANF Programs, among others.
• Financial Education Best Practices
  September 21, 2012  9:30 - 10:45 am
  
  Financial Consumers are thinking differently about their financial habits: paying down their debts, saving more and adopting practical spending approaches. To succeed, these consumers need financial education approaches and tools that work for them. This session will offer participants the opportunity to learn about current and emerging trends as well as best practices in financial education from across the country. Participants will come away with new strategies and tactics for implementing effective financial education in their communities.
• The ASSET Initiative - Helping Domestic Violence Survivors Build Assets: Winning Strategies for Partnering with DV Agencies
  September 21, 2012  11 am - 12:15 pm
  
  Economic dependence and lack of economic options are the main reasons that domestic violence victims stay with or return to an abusive partner. Over the past several years, domestic violence (DV) agencies and asset-building organizations have begun working together to build the economic capacity of survivors. The lessons that these early pioneers are learning are ready to be shared. Join us in this session to hear about a new toolkit that provides step-by-step guidance on how AFI and other asset-building programs and DV agencies can partner, as well as the benefits that accrue to survivors – and to each organization – when these partnerships are successful.
• Savings Bonds: Tax Time Innovations
  September 21, 2012  11 am - 12:15 pm
  
  It is never too late to start saving or investing for the future, even for low-income individuals who have little capacity to do so. Savings bonds, especially those introduced during tax time, are one practical tool for low- to moderate-income individuals to form healthy savings habits and protect themselves from financial setbacks. In this session, participants will have an opportunity to learn about savings bonds and their important implications for practice, policy and research.

The 2012 Assets Learning Conference is possible thanks to the generous support of our sponsors. We’re deeply grateful to AFI, our IDA sponsor. To see our full program agenda, please visit the conference site here.

By Kim Pate and Brandee McHale on 09/11/2012 @ 10:30 AM

Tags: ALC 2012

Citi’s financial capability and asset building programs work with local partners to help families achieve financial security through savings for milestones such as buying a home or enrolling in college. As our Financial Inclusions sponsor, Citi promotes the idea of savings as a key to financial security and opportunity and that reflects in the sessions they’re sponsoring at the Assets Learning Conference this September. Stop by Building Assets and Wealth for All: New Developments in Policy and Practice on Friday and take a look at the other sessions below. Notably, don’t miss the Behavioral Economics Technical Assistance Project introduction announcing the launch of this exciting new research initiative.

Expanding access to affordable, high quality financial services so that consumers of all income levels can build and preserve assets is core to Citi’s mission and a key component of its commitment to financial inclusion. Citi’s engagement with the Assets field is a good example of this commitment including recent product development efforts such as the college savings platforms developed for the San Francisco Kindergarten to College program and the Partnership for College Completion. The Citi Foundation is also a founding member of CFED’s Asset Building Policy Network, a coalition of national organizations seeking to improve economic opportunities for low-income people by increasing access to responsible and appropriate financial products and services to help families save, invest, build and preserve financial assets. Most recently, the Citi Foundation has partnered with CFED and ideas 42 to launch the Behavioral Economics Technical Assistance Project that will use behavioral economics theory to improve the effectiveness and reach of products and services that help people increase their financial stability.

• Behavioral Economics 101: Applying Behavioral Strategies to Improve Asset-Building Outcomes
  September 20, 2012 3:30 pm - 4:45 pm
  
  Insights from behavioral economics can help us understand some of the basic aspects of human nature, like why people make financial decisions that seem counter to their own best interests. During the session, speakers will provide an overview of behavioral economics, and introduce the Behavioral Economics Technical Assistance (BETA) Project – a new opportunity for asset-building organizations to work with CFED and ideas42 to design and test a behavioral intervention within their own programs. This session is appropriate for practitioners, advocates, funders, financial institutions, researchers and anyone else with an interest in learning how to design, test and implement more effective programs that encourage “smart” financial decisions.
• Promoting Financial Capability by Improving Access to Financial Products: A Winning Strategy for Building Consumer Credit
  September 20, 2012 3:30 pm - 4:45 pm
  
  A good credit score is an important financial asset that allows consumers to access necessary resources and can even reduce their cost of living. One of the most effective ways of promoting credit building is through partnerships between nonprofit organizations and financial services providers. These cross- sector partnerships can improve consumer financial capability by coupling credit building products, like secured cards, loans and lines of credit, with financial education and coaching. Learn how Justine Petersen, Aspen Institute FIELD and Citi partnered to help clients build positive credit histories and financial capability. This session will focus on the operational considerations of product distribution and the key elements of forming and maintaining strong partnerships. Panelists will share insights about the value of the partnership for the nonprofit, the financial institution and the clients, along with best practices and lessons learned.
• Building Assets and Wealth for All: New Developments in Policy and Practice
  September 21, 2012 11:00 am - 12:15 pm
  
  The wealth gap between rich and poor, and between whites and people of color, has been getting wider, undermining individual well-being and the economies of communities across the country. Closing the wealth gap – and, in particular, the racial wealth gap – is imperative to achieving equity and ensuring that all Americans can achieve a prosperous future. Participants will learn how advocates are coming together to advance innovative policy and practical solutions that help individuals, families and communities rebuild financial security. They will also hear how diverse constituencies are developing shared research agendas and shaping public discourse.

The 2012 Assets Learning Conference is possible thanks to the generous support of our sponsors and we’d like to extend our deep gratitude to Citi. For the full conference agenda, click here.

By Sean Luechtefeld on 09/10/2012 @ 02:30 PM

Tags: Housing and Homeownership

This afternoon, we sent the first edition of “Market Opportunity,” the new and improved eNewsletter from CFED’s I’M HOME initiative.

This quarterly newsletter will highlight some of the most important developments in the affordable housing field. Recognizing the potential manufactured homes hold as stock of affordable housing, CFED’s I’M HOME Team identifies and develops content for “Market Opportunity” with its highly engaged audience of affordable housing practitioners in mind.

To give you a sense of what “Market Opportunity” offers, check out this edition, which includes:

• Andrea Levere’s (President, CFED) discussion of manufactured housing as affordable housing
• David Dangler’s (National Director, NeighborWorks Rural Initiative) discussion of the need for and ways to mainstream factory-built housing
• The potential Minneapolis-St. Paul holds for bringing manufactured housing to the forefront of the national asset-building dialogue
• Strategies for resident ownership of manufactured home communities, as discussed on NPR’s ‘All Things Considered’
• Updates on the latest policies affecting owners of manufactured homes
• Helpful resources for affordable housing practitioners, such as the brand-new I’M HOME State Policy Tracker

We’re excited for the launch of “Market Opportunity” and what it means for our ability to broaden the national discussion about promoting homeownership for Americans everywhere, regardless of their income. If you aren’t currently subscribed, you can do so by emailing imhome@cfed.org.

By Jimmy Crowell on 09/06/2012 @ 11:30 AM

Tags: Events, Individual Development Accounts

Tuesday, September 11, 3:30-4:30 pm EDT / 12:30-1:30 pm PDT

The recession has impacted AFI programs across the country in many ways, including fundraising, participant recruitment, participant retention, and asset purchase completion. This webinar will focus on AFI participant retention. We will explore ways to bolster program success in: finding AFI participants with earned income; ensuring that AFI participants have credit scores and sufficient income to facilitate successful asset purchase completion; retaining AFI participants who have lost a job, had a medical emergency, or are struggling with maintaining secure housing; helping prevent emergency withdrawals from the AFI program.

There are strategies that successful AFI grantees use to retain AFI participants. We will explore these and illustrate their usefulness in running and completing a successful AFI program.

The hour-long webinar will cover:

• Useful strategies and tactics for increasing participant retention.
• Best practices from two AFI grantees with above average retention rates.
• Major causes of attrition and how to minimize them.
• Understanding and mitigating attrition’s negative impacts on successful grant completion and potential future grant funding.

Presenters include:

• Kate Griffin, AFI Resource Center (moderator)
• Amy Shir, AFI Resource Center
• Martha Wunderli, State Director, Utah IDA Network; AAA Fair Credit Foundation
• Vickie Johnson, Economic Justice Coordinator, Kentucky Domestic Violence Association.

Click here to register now! The webinar is free to all interested participants. In advance of the webinar, please send any questions you would like our panelists to address during the session to Kate Griffin, or call 202.207.0117.

Posted on 09/04/2012 @ 04:00 PM

Tags: Behavioral Economics, Financial Empowerment, Assets & Opportunity Initiative

This morning, CFED, ideas42 and the Citi Foundation announced the launch of the Behavioral Economics Technical Assistance (BETA) Project. The goal of the BETA Project is to tackle tough social problems by designing and testing behavioral interventions on real world products, processes and/or services.

What is behavioral economics? It is the study of how people make choices – not in a simplified economic model, but in the textured and rich reality of daily life. Traditional economic models assume that people are highly rational and pursue their goals consistently, without mistakes or need for help. For example, retirement planning, under the traditional economic model simply involves a household calculating the funds needed for retirement and then reducing consumption to meet the savings goal. As we all know, however, the reality is that Americans consistently under-save and are often unprepared for retirement.

The BETA project brings insights from behavioral economics to the asset-building field. Through the BETA project, CFED and ideas42 will work collaboratively with three to five organizations to pilot a behavioral intervention within an asset-building program or service. Behavioral interventions come in a wide range of forms, but can be broadly defined as manageable, low-cost program adjustments informed by research in behavioral economics and psychology. For example, an organization may help low-income clients save by sending them short text messages reminding them of their savings goals on payday. Past research has shown that small tweaks like this can have a powerful impact.

These three to five pilot organizations will be selected through a competitive application process. Click here to read more about the project, selection criteria and timeline.

On October 4, CFED and ideas42 are hosting a Q&A webinar to explain the structure of the BETA Project, describe the ideal pilot program, provide tips for a successful application, and give participants the opportunity to ask questions. There will also be multiple behavioral economics sessions at the 2012 Assets Learning Conference, including Behavioral Economics 101 and Behavioral Interventions to Boost Savings Rates.

Through the BETA Project, CFED, ideas42, and selected organizations will participate in a behavioral mapping process to tease out the sequence of events from client engagement to client outcomes. The behavioral mapping process is performed from the perspective of the client or customer, rather than the organization. The goal is to understand every possible step in the process and unearth the barriers and potential psychologies at play that are inhibiting decision choice, action, or both.

CFED and ideas42 experts will work collaboratively with selected organizations to design a behavioral intervention using an understanding of the program's context, processes, goals and barriers. The intervention may involve adding, changing or taking away from current processes. The BETA Project team will then evaluate the intervention and share findings with the broader field.

All of us at CFED, ideas42 and the Citi Foundation are incredibly excited to embark on this project. We believe that applying a behavioral economics lens will provide us with a fresh perspective on many of the challenges asset building organizations are facing.

Click here to learn more and download the request for proposals. Proposals are due October 19.

The BETA Project is part of the Assets & Opportunity Network’s Intensive Learning Clusters – which are time-limited, thematically-based, small groups that learn from each other and outside experts to advance a learning agenda on specific topics or approaches. Learnings from the BETA Project, along with a myriad of behavioral economic-related research and resources, will be featured on CFED's Blog and Behavioral Economics site.

Opportunities to participate in these Intensive Learning Clusters are limited exclusively to members of the Assets & Opportunity Network. Click here to join the Network!

By Jeremie Greer on 08/30/2012 @ 09:45 AM

Build Connections with Federal Policymakers During ALC Capitol Hill Visits

Have you ever worked hard to persuade a policymaker to support something that would improve your community only to be undercut by opponents with “special access?" When I talk to people outside the Beltway who have been frustrated by circumstances like this, I am often asked the same question: “What can we do to beat back the 'special interests' and get our bill passed?” My answer is always the same: build meaningful relationships with members of Congress and their staff – just like your opponents are. Congressional staff are no different than anyone else, they are more likely to do things for people who they know and like.

So, create your own “special access” by joining CFED's Government Affairs Team during the 2012 Assets Learning Conference (ALC) to visit your legislators’ staff at their offices on Capitol Hill. Meeting in-person with people who advise your members of Congress on which issues to prioritize and what bills to support is an excellent way for you advance your work on the ground by winning new supporters. If you haven’t yet signed up to participate, the time is now! The deadline to register for Capitol Hill Visits is tomorrow!

By becoming personally known to your lawmakers and their staff as a trusted community leader, you amplify your voice. Your relationships with them can lead them to become personally invested the asset-building policies and that support your organization’s operations and your clients’ financial security. Then, next time you and your partners on the ground need to ensure that your legislators support Individual Development Accounts or Categorical Eligibility in the food stamp program, you can just pick up the phone.

To participate in Capitol Hill Visits, please fill out this short registration form. CFED staff will make appointments for you and provide talking points and other materials for you to use. The sign-up deadline is tomorrow.

CFED’s policy team will host two trainings for those who sign up for Hill visits. These trainings will prepare advocates to meet with legislative staff and ensure that participants have the tools they need for successful advocacy. Those training opportunities are:

• A webinar on Wednesday, September 12 at 3:30 p.m. EDT, which will share tips for a successful visit, what to expect from congressional staff, and review the conference schedule leading up to the visits.
• An in-person session during the Conference, on Thursday, September 20 at 11 am, which will include an insider’s view of Congress from former staffers, an overview of key policies and time to meet with everyone from your state who will be attending meetings with you.

We are looking forward to seeing you at the conference and on Capitol Hill! For more information, please contact Inemesit Imoh, Federal Policy Associate.

By Jeremie Greer on 08/29/2012 @ 10:30 AM

“Budget Impasse Invites Recession Risk, Report says”

This headline, which appeared in The New York Times on August 22, should scare anyone who cares about the wealth and financial security of individuals and families in the United States. Sadly, partisan statements regarding the impending demise of the American economy have been thrown back and forth with passion this election year. However, what is most alarming about this headline is not the statement itself, but from where it came.

The old news in this report is that the federal deficit is still very large – over a trillion dollars. What has changed, and is most alarming, is that CBO now predicts that the country could fall into another recession if the economy falls off what has been deemed the “fiscal cliff.” The “fiscal cliff” is the drastic shock to the economy that reduction in federal spending that will occur on January 1st 2013, when key tax provisions expire and a staggering $1.2 trillion in automatic across-the-board spending cuts (known as “sequestration”) take effect. The consequence of falling off the cliff will impose nearly $500 billion in tax increases and spending cuts overnight. In its report, CBO predicts that this could result in a spike in the unemployment rate, raising it back above 9%, and shrink the U.S. economy by almost 3% (similar in degree to the recession of the early 1990s).

The looming threat of the fiscal cliff should not merely alarm us, but also disappoint. The fact is that the fiscal cliff is avoidable. It is - in its entirety - the product of the stalemate in Washington. According to the CBO, “whether lawmakers allow scheduled policy changes to take effect or alter them will play a crucial role in determining the path of the federal budget over the next decade and the outlook for the economy.” Moreover, falling over the fiscal cliff will disproportionally affect the low- and moderate-income families who have suffered the most since the collapse of 2008. Many of the expiring tax policies have proven instrumental in bolstering family incomes and financial security, including the child tax credit, the dependent care tax credit, the earned income tax credit, employer provided educational assistance, and Coverdell Educational Savings Accounts. Further, the Center on Budget and Policy Priorities predicts that sequestration will result in nearly 9% in across-the-board cuts in federal programs that support low- and moderate-income families, including asset-building programs that promote homeownership, savings, retirement, small business development and post-secondary education.

So, this is simple right? One would hope that an ominous forecast from a trusted source should compel Congress to act and fix this self-made emergency. Here are two quotes from key leadership from Politico’s coverage of the CBO report:

"Instead of threatening to drive us off the fiscal cliff and tank our economy in their quest for higher taxes, I would urge President Obama and congressional Democrats to work with us to stop the coming tax hike that threatens our economy and replace the looming defense cuts with common sense reforms," Speaker John Boehner (R-Ohio) said in a statement.

"Republicans in Congress refuse to enact the President’s plan, choosing instead to protect special interests and tax breaks for the wealthiest in our country," Rep. Chris Van Hollen of Maryland, the top Democrat on the House Budget Committee, said in a release.

Unfortunately, all we are getting is more finger pointing. No matter who you side with in this exchange, everyone should be distressed by how far apart the parties are on a solution. In order to protect the financial security of American families, they must come to an agreement before time runs out. The clock is ticking…

By Sean Luechtefeld on 08/28/2012 @ 11:30 AM

Tags: Recommended Reading

This story initially appeared in the September-October 2012 edition of Harvard Magazine, which dropped last week. Read the original version of the article by Ben Beach here.

BOB FRIEDMAN ’71 will never forget the moment at the Harlem Children’s Zone when the five-year-old son of a poor single mother announced his intention to attend Harvard. He and his mom had already started saving for college in a unique matched college-savings account as part of the Saving for Education, Entrepreneurship and Downpayment (SEED) initiative.

As that boy, now in middle school, and others in his class progress toward achieving their dreams, they are making Friedman’s own dream come true. Convinced that there were creative ways to help poor Americans move into the middle class, he founded the Corporation for Enterprise Development (CFED) in 1979. He was 30 and had just earned a law degree from Yale. “The creation of the safety net during the twentieth century was a wonderful achievement,” he says, “but the task of the twenty-first century is to create a ladder so that people can climb out of poverty.” That is the essence of CFED, which has grown to 50 employees and works to open educational, entrepreneurial, economic, and home-ownership opportunities to all Americans, but especially the bottom 60 percent. SEED is one of CFED’s most successful innovations, and in its early days Friedman traveled regularly to Harlem and other sites to hear youngsters’ dreams first-hand.

Active with the Phillips Brooks House Association during college, Friedman has always believed that low-income people “have much more capacity than opportunity.” Shortly after graduating, while working in Atlanta, he happened to stand behind some black domestic workers at a bank and saw them depositing change and small bills in Christmas Club accounts. He asked the teller what interest rate the bank paid. “He told me, ‘There’s no interest paid. We do this as a service.’ That seemed incredibly unfair to me, and got me thinking harder about how to open economic opportunity.” Because his grandfather had played a leading role with Levi Strauss & Co., Friedman had the economic freedom to front the “venture capital” to start CFED. Eventually, he realized his ambition of creating jobs for himself and others.

He says he was “heavily influenced” by professor of social psychology and sociology Thomas Pettigrew, who taught him an abiding commitment to racial justice, and by Michael Sherraden ’70, whose book Assets and the Poor proposes matched savings—“hope in concrete form”—to enable low-income earners to go to college, buy homes, and start businesses. “We have the opportunity, through the 1:1 Fund [an offshoot of CFED], to invest directly in the future of low-income children who should go to college,” Friedman says. “Studies show that a child with a college savings account in her name is six times as likely to go to college as one without, even if the average amount saved is less than $500.”

In 1999, CFED won the Presidential Award for Excellence in Microenterprise. Friedman later helped found the Association for Enterprise Opportunity, the umbrella organization for hundreds of U.S. microenterprise groups. He devotes most of his waking hours to hatching ideas with other social entrepreneurs and promoting the best ones, and has testified dozens of times before Congress.

With both political parties talking about rekindling the American Dream and revitalizing the middle class, Friedman believes that CFED’s ideas may receive added attention this year. An admirer, Gloria Steinem, has said she believes “his innovations will continue to grow, and become as pivotal as Social Security or the GI Bill.” That would delight Friedman, but he stays focused on more immediate results. “Through our 1:1 Fund,” he points out, “anyone better off can match the savings of a low-income person—and help that individual partake of the American dream.”

By Thomas Foley, Guest Contributor on 08/27/2012 @ 03:30 PM

"I want to save money, I really do, but I'm scared I could lose my benefits."

We hear that all the time at the World Institute on Disability’s Access to Assets program.

As many asset building professionals are all too aware, programs such as the Supplemental Security Income program and Medicaid, critical safety net supports for many people with disabilities, contain a $2,000 asset limit ($3,000 for married couples), which actively discourage savings and investment.

When saving money every month can result in the loss of one's income stability or access to medical insurance, the logical, rational, predictable decision is to not save, stop trying and ultimately lose hope.

According to recent statistics, people with disabilities remain more than twice as likely as people without disabilities to report that they have a household income of $15,000 or less (34% versus 15%) - a gap of 19 percentage points. Likewise, people with disabilities are more than half as likely as people without disabilities to say that they live in households that earn more than $50,000 annually (18% versus 38%). Twenty two years after the passage of the ADA, people with disabilities have made only marginal economic progress. In fact, particularly during the great recession of 2008, people with disabilities economic outlook has been more seriously impacted than any other group. According to the Bureau of Labor Statistics, over the last 3 years, 600,000 people with disabilities have left the labor force, a more than 10% reduction compared to a 1% reduction for people without disabilities. Even as the national poverty rate approaches 1/6 of the population, more than 1/3 of the disability population currently lives in poverty.

The asset building community, its tools strategies and most importantly its human capital, hold the key to reversing these trends.

Recently we had the opportunity to assist in a children's savings Kindergarten to College program in a large metropolitan city. The organizers of the program went to great lengths to insure families subject to asset limitation could participate in the program. The children's savings accounts were not tied to and individual name or SSN#, thus benefits would not be put at risk. Unfortunately, many families still chose to opt out of the program, mentioning fear of losing benefits as their number one concern.

There are lots of ways to outreach to the disability community and begin to build network trust. Knowing the critical import of asset limits within the community is a great first step. Specific messaging campaigns, success stories and strategic partnerships are all proven methods to engage the disability community. Ultimately, behavior change takes time, and fostering hope, even longer, but working together, one program or individual at a time, we can begin to change economic expectations and outcomes across all communities.

To learn about ways to reach out to the disability community regarding asset-building, attend our session “Asset Building and Disability Advocacy Partnerships” at the 2012 CFED Assets Learning Conference, featuring leading voices in the disability and assets space.

Thomas Foley, J.D. is the Deputy Director at the World Institute on Disability, an internationally recognized public policy center whose mission is to eliminate barriers to full social integration facing people with disabilities.

By Jeremie Greer on 08/24/2012 @ 09:00 AM

While watching your favorite cable news program, have you ever spontaneously blurted out in angry frustration comments like, “those folks in Congress have no clue what’s happening in my community,” or “if I could give them a piece of my mind I would tell them [fill in the blank]”? Well, you no longer have to endure the confused and sympathetic looks from your family and friends who say “you know the TV can’t hear you, don’t you.” A cure for this affliction has been found: Capitol Hill Visits at the ALC.

Practitioners and service providers attending the ALC will have the opportunity to participate in meetings with legislative offices on Capitol Hill during the 2012 Assets Learning Conference. You may have received an email inviting you to sign up. If you haven’t yet, the time is now! The deadline to register for Capitol Hill Visits is August 31, not even 10 days away. This will be your opportunity to stop yelling at your television and share your perspective on federal asset-building policies with lawmakers and their staff directly.

In-person visits with your congressional delegation while in Washington are the best way to ensure that your voice is heard – and lawmakers really want to hear from you! Whether you run a matched savings program, a microenterprise development organization, a financial literacy clinic or an EITC campaign, you are making a difference in the lives of your community members. Lawmakers value that and they want to hear from you. Meeting with you is an opportunity for legislators and their staff to learn about the issues that impact their constituents—the challenges they face and where they turn for support.

This is your chance to showcase the programs and services you provide. The average congressional staffer might not know what Individual Development Accounts (IDAs) are, but she’ll remember meeting with the people who run a really cool program that helps her boss’s constituents save money to buy their first homes. And she will remember you when you ask the member to support funding for the Assets for Independence program or other federal programs that help you offer those IDAs.

In short, as an asset-building practitioner, your personal connection to your legislators’ cities, towns and voters can do something that no national advocacy group can accomplish: get them personally invested in supporting asset-building policies and programs.

To participate in Capitol Hill Visits, please fill out this short registration form. CFED staff will make appointments for you and provide talking points and other materials for you to use. The sign-up deadline is August 31.

CFED’s policy team will host two trainings for those who sign up for Hill visits. These trainings will prepare advocates to meet with legislative staff and ensure that participants have the tools they need for successful advocacy. Those training opportunities are:

• A webinar on Wednesday, September 12 at 3:30 p.m. EDT, which will share tips for a successful visit, what to expect from congressional staff, and review the conference schedule leading up to the visits.
• An in-person session during the conference, on Thursday, September 20 at 11 a.m., which will include an insider’s view of Congress from former staffers, an overview of key policies, and time to meet with everyone from your state who will be attending meetings with you.

We are looking forward to seeing you at the conference and on Capitol Hill! For more information, please contact Inemesit Imoh, Federal Policy Associate.

By Sean Luechtefeld on 08/21/2012 @ 09:00 AM

Tags: Local Policy

Last week, CFED and the Greater New Orleans Foundation released the New Orleans Assets & Opportunity Profile.

Last week, members of CFED’s Research Team traveled to the Crescent City for the release of the Assets & Opportunity Profile for New Orleans. Commissioned by the Greater New Orleans Foundation, the Profile chronicles asset poverty in the Big Easy, showing that 37% of the city’s households lack the means to cover their expenses for three months should a job loss or other emergency leave them without income.

While the data paints a somewhat bleak picture for residents of Louisiana’s largest metropolitan area, it also points to some of the opportunities local lawmakers have in their efforts to promote financial security. The Profile outlines 19 strategies that should be undertaken to improve access to financial education, increase access to tax credits, connect residents with safe financial products, create savings opportunities and protect consumers in the financial marketplace.

The Profile is one of fifteen that CFED has developed, assessing the financial well-being of residents in cities from Seattle to Miami and everywhere in between. To read these data or to find out how CFED can create an Assets & Opportunity Profile for your community, visit CFED’s Local Policy Advocacy Center.

Click here to download the New Orleans Assets & Opportunity Profile.

Related Stories

• Asset Poverty a Big Problem in New Orleans [The Times-Picayune]
• Study Shows New Orleans in Poverty Crisis [WWNO]

By Inemesit Imoh on 08/20/2012 @ 03:45 PM

Tags: ALC 2012, Events, Federal Policy

The theme of the 2012 Assets Learning Conference is “Ideas into Action.” One of the best ways to take action during the conference is to participate in Capitol Hill visits. These meetings give participants the opportunity to speak with their lawmakers about the asset-building policies that matter most to them. As asset-building practitioners and advocates working in local communities, you are a powerful voice on Capitol Hill and can effectively persuade legislators to support key asset-building policies and programs.

On September 12, CFED’s Government Affairs Team is hosting a webinar for those who have registered for ALC Capitol Hill Visits. Topics will include:

• How to prepare for your Hill Visits
• Tips for a successful Hill Visit
• Q&A with Government Affairs staff

Presenters will include

• Jeremie Greer, Director of Government Affairs
• Anne Kim, Senior Policy Strategist
• Katherine Lucas-Smith, Senior Policy Analyst
• Inemesit Imoh, Policy Associate

Click here to register now!

In advance of the webinar, please let us know about any issues you would like the presenters to address by emailing Inemesit Imoh at iimoh@cfed.org or calling 202.207.0135.

Haven't yet registered for Hill Visits? Click here.

By Anne Kim on 08/16/2012 @ 03:15 PM

Regardless who wins in November, Republican Mitt Romney’s recent choice of Congressman Paul Ryan (R-Wis.) as his presidential running mate makes one thing clear: Taxes will take center stage this fall.

Rep. Ryan, the current Chairman of the House Budget Committee, is perhaps best known as the architect of a controversial budget plan that the Tea Party has extolled and progressives have excoriated. As the Washington Post put it, the choice of Rep. Ryan now sets up a “stark choice on budget issues,” including tax policy, deficits and the size and role of government.

And post-election, the framing of this fall’s debate over taxes will have far-reaching impact on how Congress approaches tax reform. For champions of savings and assets policies, the coming discussion over taxes means both opportunity—and danger.

On the one hand, the looming debate over tax reform presents a critical chance to advocate for the expansion of savings and assets opportunities for all Americans, especially the bottom 60% who are unable to benefit from existing policies.

Much of the federal government’s current “asset budget”—calculated by CFED to exceed $400 billion a year—is delivered through the tax code in the form of tax breaks for savings, homeownership, education and retirement. And even as these subsidies are grossly skewed toward the wealthiest Americans, these tax breaks are what most Americans think of and rely on as federal incentives to save (for example, 401(k) accounts).

Tax reform can and should be the vehicle for turning tax policy “right side up” in favor of low-income and middle-class Americans. It is a unique chance for policymakers to create new opportunities for investing in Americans’ financial security and future prosperity.

But on the other hand, there’s danger.

As the tax reform discussion is currently framed, savings and assets are nowhere in the mix. For example, at a recent New America Foundation event on the politics of deficits and tax reform that featured Wall Street Journal economics editor David Wessel, savings failed to come up even once.

The threat that advocates face is thus three-fold: (1) failing to get to the table at all; (2) being drowned out by other interests with bigger and better-funded megaphones; or (3) losing existing savings incentives as a consequence of slash-and-burn deficit reduction.

Washington policymakers don’t currently “frame” tax reform to include savings and financial security as a goal.

Instead, the prevailing frames for tax reform are deficit reduction, eliminating complexity and promoting “fairness” (as in how much people pay, not what they get).

Rep. Ryan’s budget blueprint, for example, rejects tax policy altogether as a mechanism for promoting such social benefits as savings, homeownership and retirement security. Tax policy, in Rep. Ryan’s view, is instead another way to shrink the size of government (via lower revenues from lower tax rates).

And while progressives largely frame their perspectives on taxes in terms of “fairness,” their central argument also centers on the burden placed on many Americans (the middle class) at the expense of others (the very wealthy)—“putting millionaires ahead of the middle class,” as House Democratic Leader Nancy Pelosi has argued.

What these two frames have in common is their portrayal of the tax code in a deeply negative light—as complex, inefficient, unfair and as the proxy for a government that shares those negative traits. As a result, the argument for tax policy as a positive and effective way to promote pro-social goals, such as a refundable tax credit for savings, is not being heard.

To counter the push to end all tax incentives—including those that benefit Americans’ economic mobility and success—savings advocates must convincingly make the case that these incentives are effective, pro-growth investments that will ultimately put the nation on a stronger fiscal path. This case must be made early, loudly and often.

Unless advocates fight to be heard—and effectively reframe the discussion-- tax “reform” could mean far fewer opportunities for millions of Americans to rebuild and grow their financial security.

By Natalie Abatemarco, Guest Contributor on 08/15/2012 @ 09:00 AM

Tags: ALC2012, Events

EDITOR’S NOTE: Natalie’s blog post originally appeared on the Citi Blog. CFED wishes to thank Natalie for her contribution and Citi Community Development for their generous support of the 2012 Assets Learning Conference.

Last week, I had the privilege of attending the National Urban League’s (NUL) annual conference in New Orleans. NUL is a long-standing partner of Citi’s, collaborating on numerous community programs with both Citi Community Development and Citi Foundation. This year’s conference was particularly special as it was opened with a speech from President Obama. In his address to the conference attendees, the President reiterated that “Good jobs, quality schools… affordable housing -- these are all the pillars upon which communities are built.” They are also important stepping stones for families to build long-term assets – a college degree, retirement savings, or owning a home. However, with the Pew Institute's report revealing the country’s record wealth gap in communities of color, the President challenged attendees to be creative and urgent in making these asset building opportunities accessible to everyone. But how?

This was the central question discussed at one of the conference workshop panels I participated in. The workshop, “Asset Building in America: Innovative Ideas to Achieving Financial Independence”, brought together experts from across the national community development field ranging from direct service providers who offer much-needed support services to low-income communities, to advocates calling for new solutions to address wealth disparities in the U.S. During the lively discussion, two themes emerged.

First, assets come in many forms and sizes. At a time when personal credit ratings dictate how much interest you pay on loan, your employment prospects or even your ability to rent a property, a good credit score is a real asset. In 2011, for the 26 million low- and moderate-income families who received $59 billion through the Federal Earned Income Tax Credit Program, those individual tax rebates are real assets for families. Efforts to promote asset building therefore need to be holistic, focusing not only on increasing homeownership or college enrollment, but drawing on every opportunity to assist families build wealth.

Second, asset building is a long-term endeavor and requires families to make beneficial financial decisions both now and in the years to come. New policy frameworks, services and incentives need to be developed to create a supportive infrastructure that sustains continued asset building over time.

Citi’s national community development partners, like NUL, provide crucial insights and perspectives that greatly inform and inspire the work of Citi Community Development. We remain committed to working with NUL and all of our national partners to advance an asset building agenda that empowers all Americans to achieve financial independence.

Join us to continue this conversation at the upcoming CFED conference in September 19-21 in D.C. Learn more at www.assetsconference.org.

Natalie Abatemarco is Managing Director for National Initiatives at Citi Community Development.

By Sean Luechtefeld on 08/13/2012 @ 12:00 PM

Tags: ALC 2012, Federal Policy

ALC attendees at 2010 Hill Visits

There are only three more weeks to reserve your spot to talk with lawmakers about how to translate promising ideas into meaningful action. Click here before it’s too late!

As one of the best ways to take action during the conference is to participate in Capitol Hill visits. These meetings give participants the opportunity to speak with their lawmakers about the asset-building policies that matter most to them. CFED’s Government Affairs Team will make appointments for you and provide talking points, so all you need to do is register and show up. The Hill Visits will take place immediately following the ALC Closing Plenary on Friday, September 21, so be sure you’ve planned your travel accordingly.

Have questions? Contact Federal Policy Associate Inemesit Imoh at iimoh@cfed.org.

By Sean Luechtefeld on 08/08/2012 @ 09:30 AM

Tags: Financial Empowerment

Mobile Banking Image by Bigstock Photo.

On June 27th, the U.S. Department of the Treasury, together with long-time CFED collaborators D2D Fund and the Center for Financial Services Innovation, kicked off the MyMoneyAppUp Challenge to solicit ideas from the public for mobile applications to help Americans shape their financial futures. The Challenge features two components: an IdeaBank to generate ideas for mobile applications, and an App Design Challenge that solicits more comprehensive mobile app designs for development.

Below is a brief update on the challenge and its progress to-date.

• The IdeaBank closed on August 2nd, with over 300 ideas submitted and it currently has more than 1,000 followers. After the public vote, the top 10 vote-getting ideas will then be in the running for cash prizes ranging from $250 to $1,000. You can browse the IdeaBank here.
• With nearly 600 followers, the App Design Challenge is still open. For those interested in submitting an App Design proposal, the deadline is 11:59 PM ET on Sunday, August 12. To learn more about how to submit an app design, go here. Once the call for App Design submissions closes, a small panel of expert judges will then review and score the proposals. Winners will be recognized at a September awards event held at the US Treasury Department in Washington DC, where $25,000 in cash prizes will be awarded. The Grand Prize winner will win $10,000; two Runners-Up winners will receive $5,000 each; and two Honorable Mentions will earn $2,500 each. To submit your App Design, go here. Remember, the App Design Challenge is for everyone and requires no technical know-how!

Stay tuned for more MyMoneyAppUp Challenge updates.

Related Blog Post

• Treasury Launches MyMoneyAppUp Challenge

By Carl Rist on 08/07/2012 @ 10:00 AM

Tags: Children's Savings Accounts, Education

Diploma image by Bigstock Photo.

A new blog posted on the U.S. News Education blog and written by Equal Justice Works highlights the relationship between Children’s Savings Accounts (CSAs) and educational outcomes. Much of the research cited by the blog’s author has been conducted by William Elliott from AEDI. In summarizing this research, the blog’s author writes, “The bottom line is that savings are positively associated with educational aspirations and achievement, keeping low-income children college-bound despite limited financial resources. Federal aid can help, but student debt is becoming more and more of a barrier. [...] We need more programs like K2C and SEED, which overcome the institutional and financial barriers that cause so many students to relinquish college dreams at an early age, so that higher education really is accessible to all. Only then can it fulfill its role as a great equalizer.”

To read more about this research, visit the Equal Justice Works post on the U.S. News Education blog.

Equal Justice Works is a nonprofit organization dedicated to mobilizing the next generation of lawyers committed to equal justice.