CALL FOR PROPOSALS

AFN 2015 Grantmaker Conference

What latest Trends, Research, 

Projects, or Strategies do you want 

to learn more about?  

Asset Funders Network (AFN) invites grantmaker submissions for breakout session ideas to be considered to for the the 2015 Grantmakers Meeting, to be held in Dallas, TX, April 7-9, 2015.

This unique conference brings together a diverse group of national, regional and community-based funders concerned about a common goal - providing individuals, families and communities with greater economic security and opportunities for growth. 

Click here to learn more or submit a proposal.  Grantmaker submissions are due October 10, 2014.

Member Spotlight

Levi Strauss Foundation

The Levi Strauss Foundation just announced a $75K commitment to AFN to promote wealth-building for low-income people as an effective 

strategy for philanthropy.

"The Levi Strauss Foundation is pleased to join AFN in its work to improve the opportunity for economic progress for low-income individuals and families," said Daniel Lee, Executive Director, Levi Strauss Foundation.  "As a leader in asset-building, AFN continues to demonstrate that access to responsible and appropriate financial products and services enables families to save, invest, preserve and build financial assets.  The Foundation's support seeks to build upon that momentum which is particularly critical in the context of today's startling asset poverty statistics and widening racial wealth gap.  In partnership with AFN, LSF seeks to address this disparity head-on."

Pentagon Takes on

Predatory Lenders

Insights from Practitioner Roundtable:

Leveraging Youth Programs Increases Financial Capability Amongst Young People

The Consumer Financial Protection Bureau (CFPB), along with its federal agency partners on the Financial Literacy and Education Commission, recently released a paper increasing the financial capability of young people through youth employment programs. The overview of lessons provided are drawn from an earlier roundtable meeting that brought together leaders from promising programs that included three important components: integrating financial education into youth employment programs, establishing partnerships with employers, and identifying effective strategies to collaborate with financial institutions.

The key takeaways from the roundtable are:

• Partnerships with the private sector, nonprofit organizations, government agencies, financial institutions, and youth are necessary for successful program implementation. 

• Financial education should be tailored to the needs of youth, employers, and financial education providers. 

• Financial products offered to youth should be carefully selected by weighing the costs and risks of various options. 

• Organizations should develop explicit strategies for engaging youth in the short and long term. Efforts to engage youth are important both during and after the employment program.

Click here to read CFPB's Report 

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Impact of Finances 50+ on Financial Behaviors

One of the most rapidly growing populations facing some of the most diverse and complicated of financial issues, is that of older adults aged 50+. Older adults encounter some of the most intense and important life decisions during this point in their life course, including preparation and participation in retirement, healthcare related needs, the changing roles and circumstances of children reaching adulthood, and transitioning needs in housing.

To help identify successful strategies, the AARP Foundation designed and disseminated a financial capability curriculum targeted to the 50+ age group to approximately 11 organizations nationwide. Classes were offered beginning in September 2012 through December 2013.   Approximately 2,775 people participated in these classes.

The purpose of the report is to evaluate the impact of the financial training by:

• Comparing behaviors relating to key financial topics before and after participating in the class
• Determining whether desired financial behaviors increased after participating in the class  

Overall the study shows positive and statistically significant changes in financial behavior and attitudes when comparing people to their responses before taking part in Finances 50+^SM. These results are consistent with the goal of the program, namely to help a targeted population of vulnerable households to improve their financial practices.

Click here to read the report. 

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America's Wealth Gap 'Unsustainable' 

according to Harvard Study

The widening gap between America's wealthiest and its middle and lower classes is "unsustainable", but is unlikely to improve any time soon, according to a Harvard Business School study released earlier this month.

The study, titled "An Economy Doing Half its Job", said American companies - particularly big ones - were showing some signs of recovering their competitive edge on the world stage since the financial crisis, but that workers would likely keep struggling to demand better pay and benefits.

Click here to read Harvard's announcement

Click here to read the Study.

Illinois Legislature Signs 

Payroll Card

Last month, Illinois Governor Pat Quinn signed into law a bill that allows employers to use payroll cards as long as they don't make them a condition of employment.  The new law requires employers to inform workers that enrollment is voluntary, provide them an itemized list of fees and offer a paper check option or direct deposit.  The bill also ensures workers will get free access to their wages once per pay period and unlimited telephone access to customer service.

An increasing number of employers nationwide - especially those in low-wage industries such as retail and fast food - are implementing the cards, which look like debit cards, in lieu of traditional paychecks.  Businesses prefer the cards because they save $2.75 each time they electronically load the card instead of cutting a check.

 ________________________________________________

to Recognize Credit Building

Legislation SB 896 offers a refreshing way to deal with a real problem - the lack of lending opportunities for people without credit histories.  The legislation proposes establishing a licensing exemption within the California Finance Lenders Law (CFLL), which is intended to help nonprofit organizations that facilitate affordable, credit-building, small-dollar loans expand their lending presence throughout California.

SB 896 was sponsored by Mission Asset Fund, a San Francisco-based nonprofit that helps low-income people gain access to small loans by servicing "lending circles."  In these circles, small groups of people contribute monthly amounts to a fund, and those dollars are then available to members of the group for no-interest loans on a rotation basis.

 ________________________________________________

Upside Down:  

Homeownership Tax Programs

 "Homeownership remains the largest source of wealth for the majority of Americans".

In a newly released report, the Corporation for Enterprise Development (CFED) finds that homeowners collected $200 billion in 2013 from an assortment of different tax deductions.  But the vast majority of those benefits accrued to the wealthy.  

For example, a household in the top .1 percent receives an average of $17,276 in annual benefits from homeowner tax programs.  

For a household in the bottom 20 percent, it's just $3.  The report highlights how these tax deductions are not subsidizing homeownership but, instead, bigger homes and more debt.

Click here to read the report. 

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