CFED

Stay Informed!

Press Releases

Contact:

Jan 31, 2017

Nearly 66% of Baltimore families of Color Lack the Savings to Sustain a Job Loss or Other Emergency

New report calls for greater investment to address the city's racial wealth divide

FOR IMMEDIATE RELEASE

Contact: Amy Saltzman, 301-656-0348 | Sean Luechtefeld, 202-207-0143

Baltimore -- A new report from the Corporation for Enterprise Development (CFED) reveals a troubling racial wealth gap in Baltimore. The Racial Wealth Divide in Baltimore finds that 66% of households of color are "liquid asset poor," meaning they do not have enough savings to sustain themselves at the poverty level for just three months if faced with a sudden job loss, medical emergency or other income disruption. That compares to 32% of White households, according to the report.

Additionally, the report finds that households of color are three times more likely to be unemployed and three times more likely to live in poverty. The greatest disparities are between White and Black households. The median income among Black households is $33,801, compared to $62,751 for White households, $50,531 for Asian households and $44,116 for Latino households.

With the release of the report, CFED's Racial Wealth Divide Initiative is joining with JPMorgan Chase & Co. and the Center for Public and Nonprofit Leadership at Georgetown University's McCourt School of Public Policy to announce the launch of the second phase of the Building High Impact Nonprofits of Color project, which will help strengthen the capacity of local nonprofits to expand economic opportunity in Baltimore and across the country.

"We will be working in Baltimore to build the capacity of local nonprofits led by people of color serving people of color, as these organizations are on the frontlines of addressing the most pressing needs of underserved Baltimoreans," said Dedrick Asante-Muhammad, Director of the Racial Wealth Divide Initiative at CFED.

JPMorgan Chase provided financial support to CFED to develop the report and conduct trainings to equip more than 20 organizations to launch, expand or improve wealth-building initiatives for communities of color nationwide.

"Cities offer the greatest potential to drive economic growth, opportunity and large-scale innovation," said Alexis Bataillon, Executive Director, Corporate Responsibility and Head of Strategy for the Mid-Atlantic Region, JPMorgan Chase. "We work with local leaders to help develop strategies that bolster the long-term vitality of the world's cities and expand access to opportunity for those people and communities left out of today's economy. That is why we are proud to support CFED's work and this incredible cohort of local organizations. CFED's deep commitment to addressing racial wealth inequality is demonstrated by the quality of its work in this area."

Eleven nonprofits were competitively selected in two cities -- Chicago and Baltimore -- to participate in the second phase of the project. In Baltimore, the selected nonprofits include Bon Secours Community Works, Center for Urban Families, Druid Heights Community Development Corporation, Inc., Latino Economic Development Center, Muse 360 Arts and Urban Alliance. In Chicago, the selected nonprofits include Chinese Mutual Aid Association, Gads Hill Center, Greater Auburn-Gresham Development Corporation, North Lawndale Employment Network and Spanish Coalition for Housing. These organizations join cohorts in Miami and New Orleans, the two cities that were part of the initial phase of the project.

Some of the report's other key findings include:

  • 32% of Black households and 29% of Latino households in Baltimore have zero net worth, compared with 15% of White households.
  • The average value of Black-owned businesses is $40,879, compared to $801,075 for White-owned businesses.
  • Rent is the largest expense for 59.3% of Black households in Baltimore, 58.2% of Latino households, 47.3% of Asian households, and 47.2% of White households.

For more information on CFED's Racial Wealth Divide Initiative, click here.

###

CFED's work makes it possible for millions of people to achieve financial security and contribute to an opportunity economy. We scale innovative practical solutions that empower low- and moderate-income people to build wealth. We drive responsive policy change at all levels of government. We support the efforts of community leaders across the country to advance economic opportunity for all. Established in 1979 as the Corporation for Enterprise Development, CFED works nationally and internationally through its offices in Washington, D.C.; Durham, North Carolina, and San Francisco, California.

Copyright © 2017 CFED Corporation for Enterprise Development 1200 G Street, NW Suite 400 Washington, DC 20005 202.408.9788

Powered by ARCOS