Moving Families Toward a Brighter Future Ways to Work At a Glance Unique asset development, economic self-sufficiency program that leverages the expertise of human service agencies and the infrastructure of a national office Serves hard working families with challenging credit status/histories but also the demonstrated will to advance themselves and their families Combines financial education, counseling, affordable loans and case management with high expectations and real-world accountability WtW loans range up to $8,000 for up to 36 months at a flat 8% interest rate resulting in typical monthly payments of $150-220 Clients save between $750 and $3,000 or more in interest alone versus their alternatives (Buy Here, Pay Here dealers) The programmatic goals are to: Solidify position in the workforce Build financial literacy and capacity Attain self-sufficiency Ways to Work Specifics ® Program Model Overview and Timeline Four to Six Weeks Loan Closing 24 – 36 Months Applicant is WtW Local office executes Applicant schedules Client finds Client appointment with presented a marketing plan to car, and National support and Local Loan Officer to Loan funds the create inquiries. has an program to process Committee loan. approved completion Applicant calls local application and for approval or inspection. Local Loan through office to receive info perform interview. denial based upon Officer Case on WtW – and the client’s performs Management referred (Intake) into (budget creation loan repayment character and loan WtW Orientation / likelihood of closing. Financial Ed. Class ability, credit review, Client is charged: and personal repayment. 8% interest & $60 closing fee statement) Ways to Work Approach Focused financial education for all applicants - Aimed at preparing them for the car loan experience and documenting their readiness for the experience. The process includes: “Just-in-time” classroom-based financial education session with pre/post testing One-on-one household budgeting and credit report review/repair education The car serves the family and the program – Clients come to the program to gain affordable transportation but also receive the support and guidance needed to succeed in future credit experiences The ongoing human intervention is critical –The success of WtW clients is significantly impacted by the quantity and quality of case management support during the repayment period (~10% default rate in the program vs. a 35% or higher “normal” default rate.) Making a Difference, Changing Lives Powerful market-based intervention for low-income families Driven by the community need and demonstrated through the community support of the program Evidence-based program with strong outcomes Lasting, meaningful change in economic status & quality of life for most clients and their families Families can now: • • • Get to work and school Bring children to daycare Complete daily household tasks “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 Selected Results from 2011 Evaluation Ninety-four percent (94%) of WtW clients indicate that their car helped them maintain or improve their employment circumstances (44% got a promotion or raise) Eighty-two percent (82%) of clients sustain themselves without TANF cash assistance after their loan despite having received it before participating in WtW Twenty-six percent (26%) of clients indicate that they have increased their educational attainment since receiving their WtW loan Fifty-eight percent (58%) of clients reported becoming banked by conventional financial institutions since participating in the program – checking and savings accounts, new car loan or other credit Nearly all participants indicate that the car has helped them provide better care for their children and do more things for and with their children Taking into consideration the combined benefits for borrowers, employers and taxpayers, WtW yields an approximate 250 percent return, or $2.50 for every $1 invested Nationally Recognized Support of the Program Significant Investors: $12 million in PRI / Loan Capital from: Bank of America, Annie E. Casey Foundation, Calvert Foundation, Prudential, Kresge Foundation Over $6 million in Grants: Walmart - $2 million – 2nd Investment ($4.5 million since 2009) Kresge - $375,000 Department of Treasury - $4 million Significant local pass-through grants via Arthur Blank and Kellogg Foundations 2011 Results and 2012 Objectives Provided a record $5.8 million in loans to 1200 families in 2011 – a 40% increase in lending dollars Serving approximately 4,800 families annually with focused financial education Current 24-month repayment rate is ~90% A goal of lending $9 million dollars to 1700 families in 2012 – 60% growth over 2011 12 new/expanded offices in development across 5 states Pilot of new products - Foster Care, Military/Employer embedded programs, and virtual counseling services Three Areas of National Office Support and Focus Delivering your “Program in a Box” Marketing and Business Development Streamlined assistance in launching and expanding WtW local offices Operations Unlimited lending capital, guidelines and management of the WtW lending processes, programmatic training and support Funding Support Services Consultative and continued assistance for fundraising the program’s operational dollars Questions, comments, ideas… Wendell E. Willis Vice President of Operations and Corporate Officer 11700 W. Lake Park Dr., Milwaukee, WI 53224 O: 414-359-6594 C: 414-350-8336 wwillis@waystowork.org www.waystowork.org