1. Building Assets and Opportunity for Low-Income Canadians Welfare to Work: The Next Generation A National Forum St. John’s, Newfoundland November 2003

2. Who is ? Toronto based national non-profit Dedicated to creating innovative projects aimed at self-sufficiency – building secure futures 5 main areas: –Asset-Building –Policy Development –Self-Employment –Youth –Capacity Building

3. Asset-Poverty Significant asset inequity Income-Poor also tend to be Asset-Poor Significant barriers and disincentives to asset-building among low-income earners Millions invested annually to encourage asset- building among middle and higher income earners (i.e. RRSPs, RESPs)

4. Asset-Building New and progressive approach to alleviating poverty and fostering independence Traditional income security programs are inadequate as independent solution Assets are resources that create opportunity No existing asset-based policy framework

5. Asset-Building in the U.S. American Dream Demonstration (1998-2003) –2,400 participants Assets for Independence Act –$25 million over 5 years to non-profits for IDAs –Home purchase, micro-enterprise, post-secondary education Savings for Working Families Act (2001) –May 2002 – CARE Act - $450 million for financial institutions that match and support IDAs –$ for $ tax credit as matching funds ($500/year)

6. Canadian Landscape Welfare Policies –Income and asset limitations –Benefit roll-backs –IDA Legislation – BC, NS Inconsistent Policy Treatment –CCTB/Student Loans –Part-time students not supported (CESG, SMS, RRSP withdrawals)

7. k 9-year research and policy demonstration Encouraging lifelong learning practices among low-income families Accumulated savings through IDAs and financial literacy course Voluntary participation – over 3,500 participants Personal savings of $1,500 with average 3:1 match = maximum $6,000 for adult education, micro-enterprise or skills training

8. continued… Strong partnerships –HRDC, SRDC, RBC Royal Bank and 2 major credit unions –10 sites across 7 provinces – urban and rural Provincial accommodation for 466 SARs Randomized experiment in 3 sites To date: –Over 600 cash-outs to date –$1.7 million in personal savings, leveraging $5.1 million in federal matched contributions

9. continued… SARs vs. Other Participants –Tend to be older –Predominantly female, Canadian citizens –Higher proportion of divorced or separated –Lower education levels –Higher percentage of people with disabilities –Higher unemployment rate

10. continued… SAR Savings Goals –60% Education –11% Skills Training –29% Micro-Enterprise

11. continued… SAR Participation by the Numbers –78% have opened accounts –$25 – average monthly saving –$150,000 – total savings to date –$465,000 – total matched credits leveraged –130 cash-outs to date for 45 participants –$83,000 in matched credits used to date

12. continued… Coming Up… –Early Look Report – February 2004 –Policy Agenda, includes discussion paper on SAR participation in asset-building projects –Ongoing dialogue with provinces –Other asset-building initiatives…

13. and ILAs SEDI exploring 2 initiatives –Homeownership –Access to affordable private market rental accommodations (transitional housing)

14. What’s Next? Develop public policy through demonstrations Project results, ILAs Funders and project partners Refinement of concept and identification of priorities Use evidence to support government departments to develop asset-based policies to support the needs of all Canadians

15. Social and Enterprise Development Innovations 1110 Finch Avenue West, Suite 406 Toronto, Ontario, Canada M3J 2T2 Ph: 416.665.2828 Fax:416.665.1661 Email: info@sedi.org www..org