1. toward a Brighter Future
Moving Families
toward a Brighter Future
Presented by:
Presented to:
Jeffrey E. Faulkner
President
Social Impact Exchange
June 17, 2010

2. A Challenge For one week Park your car—put your keys away
Stop using your bank(s)
Avoid shopping at a supermarket
Include stops at school and daycare
Do your laundry at a laundromat & take your kids!
“Aside from the lack of child care, lack of transportation is perhaps the most common problem facing low-income workers trying
to get and keep a job.”
Progressive Policy Institute 2

3. Invisible text

4. What is Ways to Work?
A unique economic empowerment program that helps working poor families:
Solidify position in the workforce
Build financial literacy and capacity
Attain self-sufficiency

5. The Ways to Work Approach
Focused financial education for all applicants
household budgeting
reviewing/repairing credit report and score
“just-in-time” financial education class
Low interest, character-based loan with real- world expectations for repayment
Case management services maximize success with the loan 5

6. The Ways to Work Model Franchise-like business model
Client work performed by local agencies
Program support, management and lending performed by Ways to Work
Ways to Work a part of Families International, Inc.
All local agencies are (or become) members of the Alliance for Children and Families

7. The Ways to Work Loans Character-based loans approved via
Host agency staff recommendations
Local loan committee review
Loan values up to $6,000 – flat 8% interest rate
Loans carry month repayment terms
Typical monthly payments of $150 to $220
Borrowers commonly save $750 to $3,000 versus predatory options
About Ways to WorK Loans
$4,000 maximum, 24-month term
Flat 8% interest rate regardless of credit score
Maximum monthly payment is $182
Borrowers save $750 to $2200 in interest charges alone, compared to a predatory loan.
Note: In 2009 Ways to Work added a $6,000, 30 month loan option
Loan Process
Loan decisions are “character-based”
All applicants must complete financial education requirements:
Review credit report, develop family budget
Complete three-hour financial education class
Community-based loan committee assesses applicant’s ability to repay
Counselors refer clients to other economic support programs, education opportunities. 7

8. Who are Ways to Work Clients?
The typical borrower:
A single mother, one or more children
Employed, meets low-income standards
Poor or non-existent credit history
Dedicated to improving family economic prospects

9. Impressive Results (2006 & 2009 Program Evaluations)
Borrowers averaged a 41% increase in income
90% reported car helped them maintain or advance in their employment
50% accessed education or job training with the car
85% of (former TANF) clients continued to be self- sufficient after paying off loan
Credit scores improved during and after program participation 9

10. The Ways to Work Network
Offices are in multi-service community-based agencies
Currently 34 offices in 19 states
18 new / expanded offices in development, 6 new states
Originated $5M in new loans to 1,300 families in 2009
Provided ~4,800 financial education experiences in 2009
Current 24-month repayment rate is ~91% 10

11. The 5-Year Growth Plan Expand scale to 100 sites by end of 2014
Build capacities sufficient to:
Provide about 5,000 families with loans each year
Deliver nearly 18,000 focused financial education experiences
Develop new products and delivery systems to enhance national and local sustainability

12. Growth Plan Capital Needs
Goal
Secured
Remaining
Capacity Building/Operational Support Grants
$ M
$ M
$ M
Growth Fund Grants
$ M
$ M
$ M
Loan Capital Grant (CDFI Fund)*
$ M $
Debt Capital/PRI
$ 22.1M
$ 12.5M
$ M
Totals
$ 36.0M
$ 17.7M
$ 18.3M
*Not required for scaling project until 2013.

13. Investments Put to Good Use
State-of-the-art software infrastructure
Renewed and expanded program support materials
Expanded and reorganized national office staff
Operations
Funding Support Services
Business Development
Poised for rapid growth

14. Impact During Growth Plan
Serve 13,500 families with loans & financial education
See household income increase by $130 million for client families
Save clients $20.3 million versus predatory lenders
Enable 7,750 clients access education or job training
Help 10,400 families make sustained improvements in their credit score 14

15. Making a Difference / Changing Lives
Powerful market-based intervention for low- income families
Evidence-based program design & outcomes
Lasting, meaningful change in economic status & quality of life
“Having a car has been a very big help to me, and to the entire family. Ways to Work helped me repair my life—not just my credit.”
– Ways to Work Client 15

16. …helping to reconnect families to the American Dream

17. toward a Brighter Future
Moving Families
toward a Brighter Future 17