Reprogramming SFAD IDA All Partners Meeting, 09/14/2007

Creating Pathways Out of Poverty United Way of Greater Los Angeles Overview  Program Performance ­ How does SFAD Measure Up ­ Savings and Investment Indicators  Opportunities & Challenges in Building Capacity ­ Single Organization vs. Network ­ Long Term vs. Short term  SFAD Reprogrammed ­ Scale ­ Multi-pathways ­ Standardization ­ Network Design ­ Innovation ­ Technology ­ Training

Creating Pathways Out of Poverty United Way of Greater Los Angeles How Does SFAD Measure Up? Total USSFAD(% of Total) Number of Accounts 50,0001, Amount Saved $36,000,000$1,500, Home Education Business

Creating Pathways Out of Poverty United Way of Greater Los Angeles Performance Measures: Participant Savings

Creating Pathways Out of Poverty United Way of Greater Los Angeles Performance Measures: Participant Investments

Creating Pathways Out of Poverty United Way of Greater Los Angeles Performance Measures: Costs per Account

Creating Pathways Out of Poverty United Way of Greater Los Angeles Challenges  Are we targeting the right market?  Are we providing effective case management?  Are we providing effective training?  Are we collecting all the relevant data?  Are participants buying the right kind of assets?  Are partners collaborating effectively?  Are we managing our network effectively?

Creating Pathways Out of Poverty United Way of Greater Los Angeles Capacity Building in SFAD Context  Single vs. Networked Organizations Dimension  Short Term vs. Long Term

Creating Pathways Out of Poverty United Way of Greater Los Angeles Capacity Building (cont’d) Building Capacity is the nonprofit version of the phrase “increasing productivity” in the for-profit lexicon.  Technology  Program Training  Technology  Skills Training  Staff & Structure Short Term (action)  Scale  Scope Single Org.  Standardization  Network Design  Innovation Long Term (planning) Network

Creating Pathways Out of Poverty United Way of Greater Los Angeles SFAD Reprogrammed! (Cont’d) Scale: ­ UWGLA’s Long Term Commitment ­ Grant sequencing (year-round enrollments) ­ Flexible account allocation ­ Performance-based funding ­ Partners enroll in all three areas Scope: ­ SFAD as part of UWGLA’s overall Econ. & Workforce Development strategy Standardization: ­ New manual and forms ­ Training with certification opportunities

Creating Pathways Out of Poverty United Way of Greater Los Angeles SFAD Reprogrammed! (Cont’d) Network Design: ­ Decentralized Data Collection (AFI 2 ) ­ Semi-Centralized Structure Innovation: ­ Performance-Based Funding ­ Ramp-Up Accounts ­ Asset Training vouchers Technology: ­ Database (AFI 2 ) ­ Online bank statements and transactions data

Creating Pathways Out of Poverty United Way of Greater Los Angeles SFAD Reprogrammed! Scale: ­ UWGLA’s Long Term Commitment ­ Grant sequencing (year-round enrollments) ­ Flexible account allocation ­ Performance-based funding ­ Partners enroll in all three areas Scope: ­ SFAD as part of UWGLA’s overall Econ. & Workforce Development strategy Standardization: ­ New manual and forms ­ Training with certification opportunities Scenario 1 (homeownership) Year 1Year 2Year 3 Per Account Accounts opened 36 Foundation Support $ 18,000 $ 11,700 $ 7,605 $ 157 Enrollment $250) $ 9,000 $ 250 Follow-Up (year $150) $ 5,400 $ 150 Follow-Up (year $50) $ 1,800 $ 44 Credit scores report $100) $ 3,600 $ 7,200 $ 10,800 $ 267 Training $250) $ 6,300 $ 9,000 $ 250 Savings activity $250) $ 2,250 $ 4,500 $ 164 Purchase bonus (15% x $500)$ 1,500$ 2,000 $ 2,700 $ 136 All Years $ 38,400 $ 45,900 $ 50,805 $ 1,417 The continuum to Assets (FSP) Step 1: Increasing Income Step 2: Build Savings EITC Accessing Public & Employer Benefits Savings Campaigns Split Refunds Financial Literacy New Savings Products IDAs Asset Protection Step 3: Gain & Sustain Assets Credit Repair Workforce Development

Creating Pathways Out of Poverty United Way of Greater Los Angeles SFAD Reprogrammed! (Cont’d) Network Design: ­ Decentralized Data Collection (AFI 2 ) ­ Semi-Centralized Structure Innovation: ­ Performance-Based Funding ­ Ramp-Up Accounts ­ Asset Training vouchers Technology: ­ Database (AFI 2 ) ­ Online bank statements and transactions data UWGLA

Creating Pathways Out of Poverty United Way of Greater Los Angeles SFAD Reprogrammed! (Cont’d) Training: ­ General IDA training ­ Database training (AFI2) ­ Case management training ­ Office technology training Staff and Organizational Structure: ­ Increased funding according to performance Miscellaneous: ­ Saving period increased to 24 months ­ Match rate reduced to 1:5 to 1 but dollar amount increased

Creating Pathways Out of Poverty United Way of Greater Los Angeles Wrapping-Up  UWGLA’s new IDA model focuses on capacity building: ­ Provides opportunities for increased partner funding ­ More effective collaboration among all partners ­ Holistic approach in addressing assetbuilding ­ Improved IDA technology and training ­ Innovative products ­ Standardized procedures ­ Increased family savings and match distribution

Creating Pathways Out of Poverty United Way of Greater Los Angeles SFAD Reprogrammed! (Cont’d) Scenario 1 (homeownership) Year 1Year 2Year 3 Per Account Accounts opened 36 Foundation Support $ 18, $ 11, $ 7, $ Enrollment $250) $ 9, $ Follow-Up (year $150) $ - $ 5, $ Follow-Up (year $50) $ - $ 1, $ Credit scores report $100) $ 3, $ 7, $ 10, $ Training $250) $ 6, $ 9, $ Savings activity $250) $ - $ 2, $ 4, $ Purchase bonus (15% x $500) $ 1, $ 2, $ 2, $ All Years $ 38, $ 46, $50, $ 1,417.40

Creating Pathways Out of Poverty United Way of Greater Los Angeles Performance-Based Funding

Creating Pathways Out of Poverty United Way of Greater Los Angeles The continuum to Assets (FSP) Step 1: Increasing Income Step 2: Build Savings EITC Accessing Public & Employer Benefits Savings Campaigns Split Refunds Financial Literacy New Savings Products IDAs Asset Protection Step 3: Gain & Sustain Assets Credit Repair Workforce Development

Creating Pathways Out of Poverty United Way of Greater Los Angeles Ed Khashadourian Program Officer (213)