What is progressive thinking?

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2 What is progressive thinking?

3 How does progressive thinking show up in our work? Long term strategic planning Understanding changing client needs Program expansion and development

4 Red Tab Foundation Mission The Red Tab Foundation is a public, nonprofit foundation that assists LS&Co. employees, retirees and their families who face problems caused by unexpected financial emergencies. RTF provides financial assistance, education and preventive programs to help these individuals in their own efforts to maintain their financial, physical and emotional health.

5 Driving our Strategy WHO are our clients (demographics)? WHERE do they live (geographic and cultural context)? WHAT are their primary NEEDS and ASPIRATIONS? HOW will this change over the year horizon? Revenue Grant Program Delivery Operating Expense Management

6 HCA Hope Fund Mission *The mission of our Hope Fund is to provide compassion and assistance to our colleagues and their families in times of need.

7 What drives our thinking One unexpected life event can change an employee s financial situation within 1-2 months. Every employee that has a financial need as a result of an unexpected life event should receive assistance from the Hope Fund. Step in to prevent homeless or near homeless employee situations. Help HCA employees get ahead of their next catastrophic event.

8 HCA Hope Fund At-A-Glance Harvey & Irma Katrina 4117 Gustav & Ike LA flood 333 Isaac OK tornado TN flood Disaster Grants Standard Grants

9 Program Progression $1992 CGA $2251 CGA $890 CGA $1209 CGA $1596 CGA $1,500 Illness 2013 $2,000 Illness $1,500 Death $1,500 Dom Vi 2014 $2,500 Illness $2,500 Death $2,500 Dom Vi Lifetime Max rolling 5 years $3,500 Illness $3,500 Death $3,500 Dom Vi *Other $3,500 Lifetime Max - $7K 2018 $4,500 Illness $4,500 Death $4,500 Dom Vi Other $3,500 Lifetime Max - $9K WHAT S NEXT $1,000 Death $1,000 Illness $500 Death $1,000 Dom Vi Remove disaster grants from lifetime max $500 Dom Vi $5,000 Disaster Lifetime Max $5,000

10 How can we think differently? Hope Fund Near-Homeless Causes 2% 2% 2% 2% 5% 3% 28% Job Loss/Reduced Income Car Repairs Separation/Divorce 5% Relocation Temporary Custody Foreclosure/Eviction Homeless 9% Fraud/Identity Theft Increased/Surprise Living Expenses 9% 16% Other Roommate/Family Problems Violent Crime 10%

11 Results of Change Declination rate down, Approval rate up 60% 50% 51% 40% 39% 30% 28% 24% 24% Decline Percentage Approval Percentage 20% 10% 8% 11% 16% 19% 20% 0%

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13 Clients at the Center

14 How can we get ahead of the next event? *We want to help HCA employees get ahead of their next catastrophic event 75% of households < $50,000 annually 65% of households $50 - $100,000 annually Difficulty with $1,000 unexpected bill Employees are coming to work with a cloud hanging over their heads. They are distracted by student loans and creditcard debt. The strain of living paycheck to paycheck is impacting productivity, stress and well-being. - Julie Stich, International Foundation of Employee Benefit Plans

15 Investigate, Research & Prepare Inspire, Educate, Equip. We are lighting the way to financial well-being. We believe everyone can achieve the financial confidence to pursue a life well spent. SunTrust Bank Momentum onup Families with a savings cushion of just $250 to $749 are less likely to be evicted, miss a payment or receive public benefits after a financial shock. Earn.Org SaverLife Program Personal Finance is 80% behavior and only 20% head knowledge. Ramsey Solutions SmartDollar

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18 Red Tab Savers Program Specifics RTF $1 : $1 incentivizes consistent monthly savings Up to $40 per month + $20 consistency bonus Employees save for 6 months from date of sign up, claim rewards at end Must earn at or below area median income Savings can be for anything!

19 Program Impact Average of $560 in savings Improvement in spending and savings habits

20 Evolution of Red Tab Savers Identify need/aspiration and intended impact Find an expert partner Listen vigilantly Iterate, iterate, iterate

21 Relationships as Catalyst

22 Key Learnings Understand your current landscape and try to anticipate the next years Let client needs drive your program development Don t be afraid to try and fail

23 THANK YOU!

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