BUILDING STRONGER COMMUNITIES TOGETHER: IMMIGRANTS AND ASSET BUILDING 1 FLORIDA PHILANTHROPY NETWORK SUMMIT FEBRUARY 2017
GCIR PROVIDES A FORUM FOR FUNDERS TO: Learn about current issues through in-depth analyses, research reports, online data, tools, and resources tailored specifically for grantmakers Connect with other funders through a diverse slate of programs, briefings, and conferences Collaborate with grantmaking colleagues on strategies for immigrant-related funding locally, regionally, and nationally
A SHOW OF HANDS 3
U.S., FLORIDA & NEWCOMERS A SNAPSHOT Nationally, immigrants are 13% of population In FL, foreign born population is 19.7% ~ 4 million 87% arrived before 2000; 36% before 1990 54% - citizens; 46% - noncitizens (e.g. permanent resident, refugee/asylee, student visa, undocumented) Have lower median household income and home ownership rates Workforce and Business More likely to be in young, working ages (25-44) Overall, more likely to be in the workforce (63.5% for foreign born vs. 53.7% for native born) 29% of FL business owners are foreign born 4
FLORIDA & NEWCOMER FAMILIES A SNAPSHOT 33% of children in the state have at least one foreign born parent Parents of young children (ages 0-8) More likely to have a 2-parent household than native born parents More likely to live in poverty, to not have health insurance, to have limited English proficiency than native born 5
OUR FELLOW TRAVELERS Joe Antolin - Executive Director, Asset Funders Network John Annis - Senior Vice President, Community Investment, Community Foundation of Sarasota Adelcio Lugo - Regional Director, Self Help Credit Union 6
Building Stronger Communities Together: Immigrants and Asset Building Joseph A. Antolin Executive Director Asset Funders Network joe@assetfunders.org 312.296-0700
Asset Funders Network VISION Economic opportunity and prosperity for all. MISSION The Asset Funders Network advances economic opportunity and prosperity for low and moderate income people through philanthropy. Asset Funders Network 8
AFN STRATEGIC OBJECTIVES Educate Issue based education with actionable roles Grow Educat e Increased Opportuni ty & Prosperity Elevat e Elevate Share philanthropic thought leadership, 9 evidence based best practices Grow Investment, opportunity, prosperity & membership Influenc e Influence systemic changes through scale, collaboration, alignment, or advocacy Asse t Fun ders Net wor k
AFN PROGRAMMING FOCUSES ON DATA AND EVIDENCE BASED LONG AND SHORT TERM APPROACHES TO HELP FUNDERS BETTER ADDRESS ASSET POVERTY, ASSET SECURITY AND ASSET OPPORTUNITY. TAKEN TOGETHER, THIS CONTINUUM OF ASSET BUILDING ADVANCES EQUITY, INCLUSION, SECURITY AND JUSTICE. Wealth 10 Asset Opportunity Asset Security Asset Poverty Asse t Fun ders Net wor k
ASSET BUILDING Income is a prerequisite but does not equal wealth. 3 major contributors to Wealth Building: Home ownership Business ownership Post secondary education (2 and 4 year degrees) 11 Immigrants face wealth stripping strategies, public policies and systemic barriers to wealth building. Asse t Fun ders Net wor k
WEALTH BUILDING OR WEALTH STRIPPING? Florida Latinos = $33.8 billion purchasing power Refinancing homes to reload and host of practices covered in the Florida Fair Lending Act For-Profit College abuses stripping aid & creating debt Predatory lending (pay day from unlicensed vendors, title, rapid refund) even though regulated $2.5 Billion = Fl. payday fees between 2005 and 2015 8.1 stores per 100,000 in Latino, Black and Haitian communities, 2x as many as in White communities 12 Asse t Fun ders Net wor k
ASSET BUILDING STRATEGIES Funder Investments Can Make Debt Purposeful Financial Coaching Credit Score building for lower interest rates Alternatives to payday lenders Contingency savings Influence lenders to support Small Business Expansion Support to CDFIs that provide lending Children s Savings Accounts/College Promise Opt out Retirement plans 13 Asse t Fun ders Net wor k
AFN Overview of Asset Building Lanes Gender Wealth Equity Racial and Ethnic Wealth Gap/Equity Research and Informing Policy Housing Earned Income & Career Pathways Financial Health & Capability Advancing Opportunity and Equity Post Secondary Education as an Asset Home Ownership Community Development Tax Incentives Reform for LMI Households Elevating Best Practices & Common Microenterprise, Metrics Self Employment, Coops Job Creation via Small Business & Micro Integration into Workforce Elevating Best Practices & Common Coaching Metrics Credit as an Asset Financial Access to Products Consumer Engagement Elevating Best Practices and Common Metrics Health Outcomes 2 Generation Immigrant Wealth building Review Research, Identifying Innovations & Actionable Children s Investments Savings Accounts Integration into Early Childhood and Educ College Debt Elevate Research and Best Practices Aligned Funder Investments Increased Investments in Best Practices Active Membership Growth Opportunity & Prosperity for LMI Households Increased Equity and Reduced Gaps
John Annis, Senior Vice President, Community Investment
COMMUNITY FOUNDATION OF SARASOTA COUNTY WWW.CFSARASOTA.ORG
Two-Generation Approach, Strategy, Program Continuum APPROACH A new mindset for designing programs and policies that serve child and parents simultaneously. STRATEGY Aligning and/or coordinating services with other organizations to meet the needs of all family members. PROGRAM Providing services to both child and adults simultaneously and tracking outcomes for both. COMMUNITY FOUNDATION OF SARASOTA COUNTY WWW.CFSARASOTA.ORG
COMMUNITY FOUNDATION OF SARASOTA COUNTY WWW.CFSARASOTA.ORG
SELF-HELP FAMILY OF ORGANIZATIONS
SHCU Growth (North Carolina) 10/2013 $61 MM assets 10,600 members 7 branches 1/2010 $46 MM assets 9,700 members 1 branch 1/2016 $15 MM assets 5,800 members 3 branch 9/2006 $2 MM assets 650 members 1 branch 4/2014 $20 MM assets 8,600 members 4 branches 3/2004 $9 MM assets 4,100 members 1 branch 11/2009 $44 MM assets 7,000 members 3 branches 9/2006 $7 MM assets 3,000 members 1 branch 12/2006 $13 MM assets 3,000 members 1 branch 5/2010 $11 MM assets 1,700 members 1 branches
SHFCU Growth (CA, FL & IL)
ASSETS BUILDING TOOLS, DESCRIPTION Home Loans ( CAP Secondary Market ) Income levels: At or below 80% Area Median Income (AMI) Up to 115% AMI for minority families & in minority and lowmoderate income census tracts 97-100% LTV home purchase loans, not refi loans 580 minimum FICO; 20% < 620; 46% < 660 1994 2008 origination years No mortgage insurance Flow and bulk purchases Retail origination only 15 year longitudinal study of families by UNC
IMPACT CREDIT BUILDER Total Loans # 1,739 Total Original Balance $1.6 Million Avg. Loan $900 African American 50% Hispanic 15% Total Minority 72% Female 56% Subsequent Loan 2.4x
COMMUNITY ADVANTAGE TOTAL PROGRAM IMPACT Impact Loans 50,885 Balance at Purchase $4,575,241,759 African-American 20.97% Hispanic 13.51% Total Minority 40.53% Female Headed Households 42.08% Ave Area Median Income 62.14% Ave Credit Score 679 States 48 Lenders 33 Current Servicers 12 Self-Help Loss Rate to Date 3.19%
COMMUNITY ADVANTAGE PROGRAM EQUITY CREATION Source: Center for Community Capital
CLOSING THOUGHTS 29
ADDITIONAL RESOURCES Resource documents: GCIR Monthly Bipartisan Policy Calls GCIR Funders Guide: Grants and Immigration Status Migration Policy Institute reports: Costs of Brain Waste among Highly Skilled Immigrants in Florida Portrait of Immigrant and U.S.-Born Parents of Young Children in Florida Access GCIR s online publications, join upcoming webinars Get connected to funding peers in other states about grantmaking strategies For more information, contact: Althea Gonzalez, Project Manager, althea@gcir.org 30