Presentation on theme: "Introduction to Community Impact"— Presentation transcript:
1Introduction to Community Impact Strengthening Families and Reducing Poverty: Can We Achieve Both?Alexander Sanchez Senior Vice President Community Impact Leadership United Way of America September 19, 2007
2Introduction to Community Impact United Way SystemUnited Way has 100 year history of improving lives1,297 local United Ways in the United StatesThousands of affiliates worldwideUnited Way volunteers and partners work in 46 countriesUnited Way in the U.S. raises $3.8 billion from 14 million donors annuallyAround the world an additional $830 million is raised annually
3U.S. United Way System 1,297 Local United Ways Introduction to Community ImpactU.S. United Way System 1,297 Local United Ways
4Community Impact Model What is it we must do to be successful? Paul C. Light, Rebuilding Confidence in Charitable Organizations NYU Robert F. Wagner Graduate School of Public Service, Public service brief, October, 2005Only 19% of Americans said charitable organizations do a very good job running their programs and services, while just 11% said the same about spending money wisely. In addition, 66% of Americans said charitable organizations waste a great deal or a fair amount of money, while almost half said the leaders of charitable organizations are paid too much.The survey also suggests that rebuilding confidence must involve sustained investment in strengthening the capacity of charitable organizations to achieve measurable impact toward their missions.
5Community Impact Model What is it we must do to be successful? Paul C. Light, Rebuilding Confidence in Charitable Organizations NYU Robert F. Wagner Graduate School of Public Service, Public service brief, October, 2005Showing the impact involves more than pictures of need. Such pictures do little to reassure Americans that their contributions are being used wisely.Charitable organizations must do a better job of producing measurable results, whether in lives saved and enriched, disease averted, housing rebuilt, pride restored, education enhanced, great art produced, and/or economies strengthened.
6Community Impact Model What is it we must do to be successful? Paul C. Light, Rebuilding Confidence in Charitable Organizations NYU Robert F. Wagner Graduate School of Public Service, Public service brief, October, 2005Charitable organizations must do a better job of producing measurable results, whether in lives saved and enriched, disease averted, housing rebuilt, pride restored, education enhanced, great art produced, and/or economies strengthened.
7Introduction to Community Impact Mission of the United Way SystemTo improve lives by mobilizingthe caring power of communitiesThe mission of the United Way System is to improve lives by mobilizing the caring power of communities. Improving lives is always the bottom line of our work.
8United Way’s Traditional Approach to Improving Lives Introduction to Community ImpactUnited Way’s Traditional Approach to Improving LivesMobilizing communitiessupport services for individuals and familiestothatimprove livesNote to presenter: If you are using the animated version of this presentation, comments marked with the symbol correspond with animated text.Traditionally, United Ways have improved lives bymobilizing financial resources of businesses and employeesto support programs that provide direct services to individuals and familiesand thus improve the lives of the clients who receive those services.This approach has a direct impact on the lives of these program clients.This is important work, but we have come to understand that it is not enough.financial resources of businesses and employeesof program clientsDIRECT IMPACT
9New Model for Improving Lives Uses Two Approaches Introduction to Community ImpactNew Model for Improving Lives Uses Two ApproachesCOMMUNITY IMPACTpeople, time, talent, relationships, expertise, technology, money, etc.create lasting changes in community conditionsof community populationsMobilizing communitiesimprove livestothatsupport services for individuals and familiesThus, to the traditional, direct impact approach ofmobilizing the financial resources of businesses and employees to support direct services and improve the lives of program clients,the new business model for United Ways adds a second approach -- one focused on:mobilizing the community’s people, time, talent, relationships, expertise, technology, financial assets and other resourcesto change the conditions in communities that create so many problems for individuals and families and thusimprove the lives – not just of program clients, but of community populations.This second approach to improving lives -- by changing community conditions -- is what we call “community impact.”financial resources of businesses and employeesof program clientsDIRECT IMPACT
10Introduction to Community Impact Most Direct Service Programs Address Only One or Two FactorsCommunity IssueDirect-service programs, such as the ones United Ways typically have funded, generally focus on influencing . . .individuals’ knowledge, skills, motivations and behavior, and . . .family dynamics and resources.Even when they do an outstanding job of influencing individual and family attributes, most direct-service programs are not designed, resourced, or able to create changes in the host of other conditions that are causing our communities’ pressing issues.Personal choicesFamily characteristics
11Introduction to Community Impact Addressing Those Pressing Issues Requires New Approaches and Additional PartnersEconomic conditionsPublic attitudesHistorical trendsMedia messagesPublic sector practicesPrivate sector practicesNeighborhood conditionsSystem relationshipsFamily characteristicsPersonal choicesHealth care system practicesEducational system practicesCommunity IssueTo address those community issues, we need to deal with the conditions that created the issues in the first place and are causing them to get worse and worse.Changing those community conditions calls for a new approach as well as additional partners.
12Introduction to Community Impact Change #2 Who Helps Create Community Change?Whoever can play a roleAgenciesIndividualsCorporationsLabor groupsGovernmentFoundationsMediaAcademiaInstitutionsSystemsFormal organizationsInformal associationsNeighborhood networksFaith-based groupsetc.This new filter lets us see that the answer to the question of “Who will help create community change?” is:Whoever can help, depending on the particular issues and the specific strategies that we pursue to deal with them.Agencies often will have a role to play, butIn this new work, our potential partners include every individual and organization in the community.Again depending on the specific issue and strategy, we are likely to be engaged with a variety of individuals and organizations – some familiar to us, some quite new to our experience.
13Introduction to Community Impact Change #4 What Resources Will We Need?Not only moneyPeopleRelationshipsTimeTalentWisdomExpertiseLeadershipInfluenceTechnologyFinancial assets. . .When we say “resources,” the first thought is “money.” Money, of course, will continue to be vital to our work.However, mobilizing resources needed for creating community change is not only about raising money.We will be mobilizing a range of resources: people, relationships, expertise, influence, technology . . .Depending on the issue being addressed, the community change strategy being pursued, and the community that is pursuing it, the kinds of resources we need may vary widely.It will be essential to think of resources broadly to be sure we do not overlook the need and opportunity to mobilize the range of non-financial assets that are available in our communities.The importance of thinking about resources broadly is tied to another change in our thinking – about the United Way’s role in community work.
14Introduction to Community Impact Essential Steps in United Way’s New Business FrameworkDevelop impact strategies that improve livesTurn them into investment productsSegment investor marketsConnect investor aspirations with needs/opportunities/strategies
15Introduction to Community Impact What Makes the New Business Model Viable? Occupies on an open niche (mobilizing community partnerships to achieve community change on pressing issues) Aligns with customer interests Relates to United Way’s traditional mission Builds on United Way strengths
16United Way’s Strengths Introduction to Community ImpactUnited Way’s StrengthsRelationships with diverse stakeholders (business, government, individuals, nonprofits)Reputation as a neutral playerAbility to mobilize communitiesKnowledge of community assets and needsFocus on outcomes/results17 million donors$5 billion+ raised or leveragedLocations everywhere
17Introduction to Community Impact Implications of the New Business ModelThe new model requires new ways of thinking about:StrategiesPartnersOwnershipResourcesUnited Way’s roleResource developmentUnited Way operationsThe new mission puts United Way on a new road – the road to community impact. This new road brings changes inStrategies, partners, ownership, resources, United Way’s role, investor relationships, and United Way operationsWe’re going to explore each of these new directions.
18Introduction to Community Impact United Ways Implementing Impact Areas in their Resource Development PlanPercentSource: UWA Research
19Introduction to Community Impact United Ways Actively Positioning Impact Areas in their Resource Dev. PlanPercentSource: UWA Research
20Community Impact Mission - Taking Hold Introduction to Community ImpactCommunity Impact Mission - Taking HoldUnited Ways that report they are actively communicating the Community Impact Mission are much more likely to believe it’s making a difference. They believe:- the Community Impact Message is having a positive effect (72% vs. 48% system)- the Community Impact Mission is resonating with their donors (73% vs. 47% system)- it is having a positive affect on their ability to raise funds (40% vs. 24% system)This is not just attitudinal; performance is better. Those United Ways that believe the community impact message is having a positive effect have stronger than average resource development performance.We asked a few questions on the survey specifically about the CI mission. As we saw from the beginning of the presentation, a majority of UWs indicated the CI mission was a positive effect on the campaign. Larger UWs were more likely to say it was a positive effect, but at lower rates than last year. We specifically asked if the CI message resonated w/the donors, and a majority of UWs agreed.When we looked at only those UWs who were actively communicating the CI mission, the results changed dramatically. Those UWs overwhelming believed that the CI messaging had a positive effect (72%) as well as believing that the mission resonated with donors (73%)Source: UWA Research
21Community Impact Model What is it we must do to be successful? “Gallagher has worked to move the mission away from ‘How much did we raise?’ to ‘How much impact can we have in our communities?’The new model is to focus on outcomes, not dollars”-- Knight Ridder News, 10/19/05
22United Way. Advancing the Common Good Introduction to Community ImpactUnited Way. Advancing the Common GoodCreating the opportunities for a good life for all by focusing on:EducationIncomeHealthMaximized incomeIncreased savingsFinancial assets forlong-term stabilityPreventive / Everyday HealthcareHealthier Teens: Drug-free, within weight and reduced pregnancy ratesQuality child careSchool readinessAcademic completionDraft Measurement AreasCommunity & Volunteer EngagementCommunity InvestmentDonor Relationships2-1-1StrategiesResource GenerationPublic PolicyPartnershipsInclusion
23United Way. Advancing the Common Good Introduction to Community ImpactUnited Way. Advancing the Common GoodCreating the opportunities for a good life for all by focusing on:EducationIncomeHealthMaximized incomeIncreased savingsFinancial assets forlong-term stabilityPreventive / Everyday HealthcareHealthier Teens: Drug-free, within weight and reduced pregnancy ratesQuality child careSchool readinessAcademic completionDraft Measurement AreasCommunity & Volunteer EngagementCommunity InvestmentDonor Relationships2-1-1StrategiesResource GenerationPublic PolicyPartnershipsInclusion
24Economic ChallengesOver 38 million Americans have incomes below the federal poverty level. More than fifty percent are employed.Income Disparities – Top 20% control 85% of wealth; Bottom 60% control 4%One out of three households reported using credit cards to cover basic living expenses.The personal savings rate in 2006 (as a percentage of disposable income), was a negative 1 percent.2 million people filed for bankruptcy in Approximately 50% of bankruptcies are caused by medical debt.Average credit card debt among American households is about $9,300.
25Building the Case Strategic Planning/Initiative Framework Development INTERVIEWSTHOUGHT LEADERSHIPRESEARCHTASKFORCEPartners, Funders, LUWs, key UW staff, and othersUWA and 25 Local United Way LeadersNew and Existing ResearchUW Network and External National Thought Leaders
26Introduction to Community Impact Economic DriversKey economic factors affecting the ability of average persons to achieve long-term financial stability, include:Lack of Economic MobilitySoaring Personal DebtWealth InequalityAs evidenced in recent articles in:The New York TimesThe Washington PostWall Street JournalMiami HeraldThe Chronicle of Philanthropy
27United Way’s Financial Stability Partnership™ A National Initiative Focused on Financial StabilityAn initiative focused on financial stability leading to independence designed in steps to can help individuals and families to get off the financial tightrope, overcome basic subsistence needs, and allow them to plan for the future.
28A Stepped Approach to Financial Independence Introduction to Community ImpactA Stepped Approach to Financial Independence
29Who Benefits From the Work? Introduction to Community ImpactWho Benefits From the Work?Low to moderate income workers by helping them develop and implement strategies that:Increase IncomeBuild SavingsGain and Sustain AssetsEmployers by creating a stronger, more crisis-resistant workforceCommunities by increasing home and business ownership, and the financial stability of its residentsThis Work MattersFive years ago, Brownsville, Texas had the highest poverty rate in the nation. In just a year’s time, United Way worked with 1,000 Brownsville families to apply for the Earned Income Tax Credit, resulting in nearly one million additional dollars in that community.
30Expanding Partnerships Partnered with United Way and provided an innovative process and support in researching and analyzing Benefits Calculators which can scale and revolutionize access to public benefits system wideExploring partnership to support a national agreement for benefits calculator and other technology to advance financial stability workPartnered with United Way to expand Earned Income Tax Credit (EITC) outreach to 33 markets across the countryHost partner for the EITC and Beyond: Leadership Summit designed to bring UW leaders and elected officials together to focus on EITC and other asset building strategies to strengthen communities
31Introduction to Community Impact National UWA GoalsSystem Wide Investment Over the next five years, the United Way will increase its investment by 50 percent to $1.5 billion by adding targeted, focused and proven strategies that impact financial stability.Increase Income Through Expanded EITC Outreach Increase the number of eligible families currently not claiming EITC by 25 percent in 200 targeted communities over the next year. Increase the number of eligible families currently not claiming EITC by 50 percent in 400 targeted communities over the next five years.Bank the Unbanked In 50 targeted communities, reduce by 10 percent the number of unbanked and under banked households over the next year. Across the United Way system, reduce by 25 percent the number of unbanked and under-banked households over the next five years.Expansive Integration of Technology Through technology, increase enrollment by 25 percent of eligible families in earned public benefits in 20 targeted states over the first year. Through technology, enable all United Ways to enroll eligible families in earned public benefits in 50 states over the next two years.
32National Launch Events Introduction to Community ImpactNational Launch EventsBrand Forum (Communications)Los Angeles, January 24-26, 2007National Public LaunchWashington, DC – Press Club, May 7, 2007Staff Leaders ConferencePittsburgh, May 16-18, 2007EITC and Beyond: Leadership Summithost partner National League of CitiesSan Francisco, July 11-13, 2007
33Strategies to Leverage Income and Build Assets Introduction to Community ImpactStrategies to Leverage Income and Build AssetsEarned Income Tax Credit (EITC) OutreachVolunteer Income Tax Assistance (VITA)Individual Development Accounts (IDAs)Financial Literacy EducationFreddie Mac Credit Smart InitiativeFreddie Mac Loan Prospector OutreachLending Consumer Rescue FundDon’t Borrow Trouble CampaignFDIC Money Smart Train the TrainerPartnerships w/ Financial InstitutionsMarketing of Existing Financial Products & ServicesDevelopment of Alternative Products & ServicesMulti-benefit EnrollmentUse of Benefit Calculators (N2L)City of San Antonio, Department of Community Initiatives (Funding & Site Operations)Annie E. Casey, Making Connections (Funding & Site Operations)IRS (Software & Technical Assistance)Catholic Charities (Volunteer Recruitment and Placement)United of San Antonio & Bexar County (Funding & Outreach/Marketing)
34Introduction to Community Impact Breaking the cycle of poverty….. by helping individuals access information, save, and acquire assets with long-term valueAccess to Information & EducationFinancial LiteracyIntroduction to ServicesCommunity-basedCase ManagementWorking FamiliesChange in BehaviorAcquire AssetsI use this to illustrate the continuum of services, education, and (high touch) care that low income families need to eventually meet their asset goals –You have to realize that no one comes as an empty vessel – you have years of assumed spending/saving behaviors and patterns that people either have to learn an/or unlearn.This is about providing individuals and families with access to information and resources that allows them to make the most informed decision possible –Let me ask you who doesn’t want Choice and Control over their hard earned dollar.Let me caution you – there is an extreme difference between being in a Traditional versus non-traditional market – you have to create education and program opportunities that allow people to move between a traditional and non-traditional market and be sensitive to where people enter into the continuumMore informed consumer market – increased access to information and resourcesTwo way street (developing a untapped market) convenience/ facilitator of relationships between low-income families and traditional financial marketFinancial Education and asset building programs are needed and effective complements to traditional welfare, adult education, workforce development, and work support programs, providing participants with tools needed to make sound financial decisions, participate in financial mainstream financial system, move up the economic ladder and achieve the American dream.Essential elements to point our this is about creating programs and creating partnerships that leverage supplemental resources and assist individuals and families to use their IDA so that they can leverage other asset building opportunities.Half of all wealth comes from generational transfersHomeownershipAsset Development StrategiesEITC / CTC / Edu. CreditsIDAsCredit RebuildAsset Building and Preservation Education CampaignsMulti Benefit EnrollmentMarketing & Development of Financial Products & ServicesFinancial Literacy + High-touchCase ManagementMicro-BusinessHigher-Education
35EITC Return On Investment Introduction to Community ImpactEITC Return On InvestmentSan Antonio20022003200420052006Number of Sites4132272628Returns Completed10,40015,24420,85025,96230,000E-Filed3%73%93%98%100%Returned to Community$12 Million$ Million$30 Million$40 Million$45 Million61% were female and 39% were males.Eight in ten (81%) EITC filers identified as Hispanics, 10% as African Americans and 8% as White, not Hispanic.Slightly over one-third (35%) of the EITC filers were homeowners, while nearly half (49%) indicated that they rent their residence.55% of the VITA filers filled as “single”44% w/ health insurance – 34% w/out health insurance7% indicated that they receive Food Stamps63% of the filers had checking accounts.51% had savings accounts.
36EITC Return On Investment Bank of America, $500,000 investment in FSP30 CommunitiesTax Year 2005Tax Year 2006Total # of Volunteers4,6988,931Total # of Volunteer Hours100,386276,329Total # of Filed Tax Returns161,635225,824Total Amount of EITC Returned to Clients$61,905,252$83,262,273Total Amount of Tax Refunds to Clients$199,306,955$269,336,295Bank of America, > $21,000,000 ROI
37Community Impact Model What is it we must do to be successful? Paul C. Light, Rebuilding Confidence in Charitable Organizations NYU Robert F. Wagner Graduate School of Public Service, Public service brief, October, 2005Significant positive predictors of confidence in the sector:Whether they have confidence in the United WayWhether they believe charities do a god job helping peopleWhether they believe charities do a good job spending money wiselyWhether they have higher levels of educationWhether they believe charities do a good job running programs and servicesWhether they have confidence in the Red CrossWhether they have higher incomeWhether they are olderWhether they see less charitable wasteWhether they are female
38Community ImpactWhen all of the pieces come together, not only does your work move toward greatness, but so does your life.For in the end, it is impossible to have a great life unless it is a meaningful life. Perhaps, then, you might gain that rare tranquility knowing that you’ve had a hand in creating something of intrinsic excellence that makes a contribution.Indeed, you might even gain the deepest of satisfactions: knowing that your short time here on this earth has been well spent, and that it mattered.--Jim Collins, Good to Great
39Introduction to Community Impact These and other resources are tools for helping our United Way focus on what matters.