Asset Building Program Model A Social Enterprise of CCO...More than half use predatory payday loans to meet basic needs The majority face housing insecurity They all have debt issues:

A Service of Catholic Charities of Oregon1

A Service of Catholic Charities of Oregon

Asset Building Program ModelA Social Enterprise of CCO

CCUSA Coaching IntensiveNov. 4-5, 2019 Charleston, SC



The Who, What, and Why of Asset Building

• Components of an Asset Building Program

• Possible Way to Fund Asset Building

• Realistic Timeline for Growth

• Our Model of Social Enterprise

• What is Something You Can Grow, Enhance, or Replicate at Your Agency



Network of Agencies:• Caritas Housing

• Catholic Community Services of Lane Co.

• CYO/Camp Howard

• El Programma Hispano Catolico

Programs & Services:• Pregnancy Support

• Family Counseling & Mental Health services

• Housing Transitions

• Immigration Legal Services

• Refugee Resettlement

• Resident Services

• Save First Financial WellnessCatholic Charities is the largestsocial service agency in the Stateof Oregon, providing social andlegal services, partnering withthe most vulnerable to achievelasting solutions to poverty andinjustice.



Widespread Financial Insecurity

• 1/3 of Multnomah County residents lack the income to meet basic needs. 1

• 1/2 of Americans cannot meet an unexpected financial emergency of $400 or more without borrowing from family or using credit. 2

• 1/3 of Americans report they have no retirement savings; 23% have less than $10,000 saved 3

• 78% of Americans live paycheck to paycheck4

• 54% of Americans spend 20 hours each month on finances at work 2

1) Dianna M. Pearce, University of Washington: “The Self-Sufficiency Standard for Oregon 2017,”

2) Federal Reserve Board: “Report on the Economic Well-Being of U.S. Households in 2016”

3) Time Magazine: “1 in 3 Americans Has Saved $0 for Retirement”

4) Careerbuilder.com




• CLICK TO SNL SKIT (DON’T BUY STUFF) HERE



Save First Client Profile

100% of Save First clients have no safety net

More than half use predatory payday loans to meet basic needs

The majority face housing insecurity

They all have debt issues: credit card debt, medical debt, student loans

All are suffering from the impacts of financial stress:

Financial stress leads to the breakdown of the family and is one of the main reasons for divorce in our country

Financial stress and anxiety cause negative health effects

All Save First coaching clients are motivated but lack the tools to sustain behavior change over time



Save First’s ModelEMPLOYEE PERSPECTIVE

Hook: Resource navigation along with funds for emergency needs

Capture: Financial Wellness Workshop covering the basics of budgeting, savings, debt and credit

Engage: One-on-one Financial Coaching – a deeper dive into their personal financial situation

Lift: Matched Savings & Small $ Loan programs for education, homeownership, debt and small business capitalization, car purchase, 1st month rent, credit building

EMPLOYER PERSPECTIVE

Support: Emergency Assistance Fund Administration

Educate: Financial Wellness Workshop required for all recipients of assistance funds

Encourage: One-on-one Financial Coaching – an opt-in for those motivated to make a change

Grow: Matched Savings & Small $ Loan programs for education, homeownership, debt, small business capitalization, car, credit building



The Results: Coaching Matters

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Understanding and Use of Budgeting, Savings, & Debt Management

After 3 months coaching

3 months after class

Class gages knowledge attainment. Coaching gages behavior change.



Developing Save First Financial Wellness

2009 Regence Blue Cross Blue Shield partners with Catholic Charities to assist employees in emergency crisis

2010 Providence Health System engages Catholic Charities to manage their employee-funded Helping Hand Fund

2011 Catholic Charities introduces Financial Empowerment services to its emergency assistance

2012 Financial Coaching is added to deepen engagement and provide lasting solutions to poverty

2013 Matched savings programming is introduced to really move people out of poverty

2013-18 Save First services are integrated into all programs of the agency & open to all staff

2017+ Pivotal Moment for Catholic Charities with the goal of making Save First a self-sustaining entity serving the poor and vulnerable within our community by expanding to new companies and partners as a social enterprise and relying less on donors and philanthropy



Outputs and Outcomes

• Served 1,996 clients in FY19 (up from 500+ in FY18)

– 1/2 from employer contracts and ½ from agency/community

• Our after-service surveys show us that of our coaching clients that responded:

– 91% are actively living on a budget

– 62% have paid down debt, with an average pay-off of $4,500

– 67% have cleaned-up credit issues on their credit report

– 83% of clients have increased their credit score by an average of 33 points



Current Program Stats

By The Numbers

• 9 FTE including certified financial coaches, financial educators, social service navigators, asset building specialists, volunteer coordinators, and emergency assistance fund administrators

• 80 Volunteer financial coaches

• 4 employer contracts (Providence Health Systems, Vancouver Clinic, Burgerville, The Portland Clinic)

• 2 community partner contracts (Home Forward, Mercy Corps, NW)

• Budget of $1.6 including the administration of over $400,000 in direct client assistance. Closed FY19 in the black by $79K



Funding Model = Social Enterprise• Emergency Assistance Dollars = Employer/Employees Funded

– This can be a line item in their budget or employee funded or a mix of both

• Administrative Fee = Employer Pays Save First

– Fee is determined on a utilization rate based on information gathered from employer prior to submitting a proposal (Includes fund administration, workshops both at our offices and on site at their facilities, access to coaching and matched savings & loan products; and, is open to all employees not just those using the emergency assistance fund)

• Both of these are billed on a quarterly basis by Save First to the employer

• With this fee for service model we are able to include other clients of the agency, community partners, and those who come off the street (i.e.parishes) in our workshops, coaching program and matched savings and loan programs



Advantages of Working with Save First• For the employer:

• All fund administration is handled by Save First

• Often difficult conversations move to Save First, with specially trained staff to care for employees confidentially

• No tax implications for employer

• For the employee:

• Save First maintains strict confidentiality, allowing the employee to freely seek help

• Navigation services can help employees with wrap around services

• Financial Coaching help employees move up the economic ladder

• Emergency assistance support is not treated as income by the already struggling employee (Managed as grant from SF)



Determining Employer Need, Fit, and Fee• How many of your employees are:

• Being garnished?

• Asking for a payroll advance?

• Participating in their retirement plan? At the full match? Are taking out hardship loans?

• What is your turnover rate?

• What is your lowest wage salary range & how many employees fall in that range?

• Do you have employees who:

• Have a poor attendance record?

• Use their sick leave as they earn it?

• Show persistent symptoms of stress?



Providence Health System: A Case Study• Decreased the use of the “Helping Hand Fund” by 77% since

2010, to about 275 employee requests for emergency assistance last year.

• Save First helped clients with more than finance, including support around:

• Domestic violence

• Homelessness & housing insecurity

• Mental health & family counseling

• Save First helped Providence adopt new policies:

• Manager training to recognize needs of employees

• Improve wages and benefits

• Provide access to financial assistance for PH&S medical bills to lower the garnishment rates

“Save First is a stellar program. By helping others succeed we grow healthier, stable employees, and communities.” Joan Kapowich, retired senior executive, Providence



“Keri’s Story”

• Keri works at Providence, and came to Save First in 2017 as a single mom with 3 kids.

• She had left an emotionally abusive relationship and was stressed by her paycheck-to-paycheck lifestyle.

• At Save First she received financial assistance through her employer fund and opted into Save First’s financial coaching.

• The family received counseling at Catholic Charities.

• Keri has stayed in coaching and has gotten a promotion at work.

• She is currently enrolled in Save First’s matched savings program to go to school to become a certified technician.

“I feel in control again and I have hope that I will be able to improve my family’s future.” Keri, Client



Strategic Integration• Identified during agency strategic planning process as a service

need by all clients once out of crisis – at some point on their service plan

– Does this fit your strategic plan?

• Not a cookie cutter approach – specialize services for each population served

– Begin with employees utilize CFPB’s YMYG’s for new employees

• Begin small – where are your natural fits:– Do you already have this work being done in various parts of your

agency work?– VITA, Pregnancy Support, Resident Services, Refugee, Immigration

• Partner where you can. – Participated in Prosperity Now’s TA on integrating financial capability

across a social service agency



Takeaways

• Does not happen over night

• Start small and fit where you can

• Begin with your employees

• Foundational steps along the way

• Buy-in from your top executive team who see the value (this holds true for the employers you work with)

• Healthcare is a natural fit as most have an caregiver emergency assistance fund AND you probably have a healthcare provider on your BOD

• And, that we can help you along the way

• Q&A



Check us out on the web at www.savefirstfinancial.orgfollow us on FB and Instagram

http://www.savefirstfinancial.org/

Documents

Asset Building Program Model A Social Enterprise of CCO...More than half use predatory payday loans to meet basic needs The majority face housing insecurity They all have debt issues: