Chrismaldi Vasquez, Associate DirectorChrismaldi@fiinet.org

Wandy Peguero, Family LiaisonWandy@fiinet.org

www.fiinet.org

Re-Establishing Social and Economic Mobility

$20,000 $38,040 $100,065$61,720 Household Income (quintiles)

Ben

efits

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Federal Poverty Line≈ $23,000 (for family of 4)

Median Household Income

≈50% of households above and below $50,000 annual income

Safety NetAccess based on need

Ex: welfare, food stamps, section 8, many non-profit programs

Benefits for those in crisis

Ben

efits

$20,000 $38,040 $100,065$61,720 Household Income (quintiles)

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• In 3 years 97% move above poverty but 30% fall right back under (2008 Census study)

•Roughly half of US experiences poverty by age of 65 and half of the people who leave poverty will become poor again within 5 years (2009 Urban Institute Study)

Cycle of Instability

Safety Net – for crisis, but it’s not a springboard

Prescribed pathFamily directed by case managers or

follows a process determined by a program

Penalize progressAccess to benefits is reduced when

family makes progress (needs-based)

DependencyProgram is positioned as primary

support of family inadvertently reducing the importance of peers and community

Families are needyFamilies viewed as in crisis and in need

of outside help to make progress

$20,000 $38,040 $100,065$61,720 Household Income (quintiles)

Ben

efits

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f hou

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lds Examples: Mortgage interest deduction,

matched retirement, access to loans/investment, bulk purchasing…

Benefits for the well-off

Median Household Income

Federal Poverty Line

DependencyProgram is positioned as primary support of family inadvertently reducing the importance of peers and community

Safety net

Prescribed pathFamily directed by case managers or follows a process determined by a program

Penalize progressAccess to benefits are reduced if the family makes progress (needs-based)

Families are needyFamilies viewed as in crisis and in

need of outside help to make progress

Innovation: New Assumptions

Self-determined pathFamily acts on their own goals and determines steps for self advancement

Invest in initiativePositive actions keep, or even increase, eligibility for resources (strength-based)

MutualityFamily is expected and encouraged to share resources/expertise and assist

others in community

Families are capableFamilies exercise control and choice, utilizing their strengths to act

$20,000 $38,040 $100,065$61,720 Household Income (quintiles)

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Opportunity PlatformAvailable based on proven initiative

Self employed tax credit, low interest loans, match to investments, scholarships …

Opportunity Platform – the springboard

Opportunity Platform – Families Access as Needed

Traditional Lending Circles

Self organized

circles

Credit bldg. lending

circles

Nano-Loans

0% interest- KivaZip- FII Direct

Variable Interest- Prosper.com- Credit Unions

Personal Donors

Online Donors- Kickstarter- IndiegogoFi

nanc

ial T

ools

Matched Individual Savings

Mat

ch R

esid

ent

Savi

ngs

Match for home, business,

educ.

Resident raised scholarships $$

Match Group Funds

Awar

dsRe

plac

e

gran

ts

Project Outcome Awards

Recognition Awards

Soci

al C

apita

l FII Journaling & UpTogether – Online Social Community

Business /Other Advice, Mentors

Fellowships & Scholarships

Recommend & rate

programs

Outcomes

- Rid of predatory debt- Fixing credit rating- Startup capital- Tax break, jobs created- Joined Lending circle

- Down Payment for home- Saving for kids college- Started scholarship fund- Created jobs with our new business

- Got business mentor- Exchanged childcare- Found new clients at mixer- heard about free tickets- I can see my progress!

- Award for cleanup we did- Energized by recognition- Helping one another- Lower/discounted rates- Donated dental surgery

Children’s IDAIn development

Award after resident accomplishments

Resident who step up

Events/Conferences

Non-monetary Benefits

Donated services

To stimulate resident initiative

Group discounts

Tax Benefits

Self – employmentTax credit…

Match local investment

Match lending circle funds

Exchange services

Organize local mixers

Invites to events/trngs.

Program Model: Bottom UpProgram Model: Bottom UpTwo-year, FII-facilitated engagement with groups of families to catalyze change

• Families select to enroll with friends

• Each family gets computer to report progress, find opportunities & share solutions

• Require monthly group meetings & qtrly family meeting to audit reported progress

• FII pays families for reporting progress (kids grades go up; credit score improves, get part time job), to lead, facilitate & counsel one another. On average families earn $2.000/yr.

• Natural leaders/role models emerge & they get Fellowships, instead of staff, to lead others

FIIliaison

Facilitating Natural Networks Activities

“Ripple Families”

“Core Catalyst Families”

200+ applying in Boston.

Innovation: Scale thru Role Modeling1. Challenge groups of typical families (not the exceptional)2. Create vacuum of leadership which surfaces innovators3. Facilitate Communication of success and role models4. Have resources available to those that follow

Opportunity Platform:

Resources needed to scale

Starts a business, starts lending circle,

buys home …

Typical, not exceptional, child does well in school & can

become the role model, set standard

18% increase in average household income

41 businesses, with an estimated 70 jobs (FTE’s) created by businesses

6 new homeowners

180% average increase in savings for an average balance of $1,715 per family

Family Initiative

CH

ILD

RE

NH

EA

LTH

MU

TUA

LITY

80% of children reported grade and school attendance improvement

79% of children attended 104 different afterschool programs

48% of households reported going to routine medical checkups

44% of households lost weight and exercised regularly

43% of households immunized their children

75% of households led a community activity (e.g. youth workshops, women’s support groups, housing planning)

80% of households helped someone in the community (e.g. help get a job, offer a loan, provide childcare)

Financial Outcomes

Family Outcomes

Data Collection, Consumer Feedback

Set a baseline, track monthly, quarterly, and yearly

Track Income Asset Growth Awards Participation Ripple/Network Community Interaction

FII relies on family self determination & social capital

… pool money … provide emotional support

… share knowledge and information

… share resources

… Our role is to assure that this initiative has access to resources

… “keep an eye out” for one another

… make referrals

… share labor

… hold each other accountable

Families act as each other’s role models