Mia Birdsong, Vice President

mia@fiinet.org

www.fiinet.org

Utilizing FII’s Approach to

Invest in Social Capital

$20,000 $38,040 $100,065 $61,720

benefits

Household Income

(quintiles)

Federal Poverty Line ≈ $23,000 (for family of 4)

Median Household Income ≈50% of households above and below

$50,000 annual income

Benefits for those in crisis

number of

households

Safety Net

Ex: welfare, food stamps, section 8,

many non-profit programs

Safety Net

Prescribed path Family directed by case managers or

follows a process determined by a

program

Penalize progress

Access to benefits is reduced when

family makes progress (needs-based)

Dependency Program is positioned as primary

support of family inadvertently reducing

the importance of peers and community

Families are needy Families viewed as in crisis and in need

of outside help to make progress

$20,000 $38,040 $100,065 $61,720

benefits

number of

households

Household Income

(quintiles)

• In 3 years 97% move above poverty

but 30% fall right back under (2008

Census study)

• Roughly half of US experiences

poverty by at of 65 and half of the

people who leave poverty will become

poor again within 5 years (2009 Urban

Institute Study)

Cycle of Instability

Safety net

Prescribed path Family directed by case managers or

follows a process determined by a

program

Penalize progress

Access to benefits are reduced if the

family makes progress (needs-based)

Dependency Program is positioned as primary

support of family inadvertently reducing

the importance of peers and community

Families are needy Families viewed as in crisis and in

need of outside help to make progress

Mobility

Self-determined path

Family acts on their own goals and

determines steps for self advancement

Invest in initiative

Positive actions keep, or even increase,

eligibility for resources (strength-based)

Mutuality Family is expected and encouraged to

share resources/expertise and assist

others in community

Families are capable

Families exercise control and choice,

utilizing their strengths to act

Benefits for the well-off

Median Household Income

Federal Poverty Line

Examples: tax benefits for

home ownership, matched

retirement, access to loans, low

interest rates

$20,000 $38,040 $100,065 $61,720

benefits

number of

households

Household Income

(quintiles)

Historical Social Capital in Action

Chinatown San Francisco

Greenwood Tulsa

Weeksville Brooklyn

Beryl Ford Collection/Rotary Club of Tulsa

Lower East Side New York

Barn Raising DeKalb County, IN

Social capital is …

… pooling money … providing emotional support

… teaming up to tackle projects too large for individuals or families

… sharing knowledge and information

… sharing resources

… the value that derives from relationships between

people

… “keeping an eye out” for one another

… making referrals

… sharing labor

… holding each other accountable

… vouching for others

Mobility

Self-determined path

Family acts on their own goals and

determines steps for self advancement

Invest in initiative

Positive actions keep, or even increase,

eligibility for resources

Families are capable

Families exercise control and choice,

utilizing their strengths to act

Mutuality Family is expected and encouraged to

share resources/expertise and assist

others in community

Opportunity Platform Available based on Initiative

Policies, products, and

programs that build social and

financial capital.

Opportunity Platform

$20,000 $38,040 $100,065 $61,720

benefits

number of

households

Household Income

(quintiles)

Innovation: Family Groups/Product Incubation

Family

Family

Family Family

Family

• Families enroll with friends

• Family receives computer to access

online data tracking system

• In exchange for sharing data and

attending self-facilitated monthly

meetings where we observe and

gather stories FII pays families.

• FII uses what we learn to develop

new products and tests them with

families

• Influence ripples to others in

community as families make progress

Flow of information, resources,

and influence Activities

FII

Innovation: Loan Underwriting

Traditional underwriting FII Loan

$ #

The Hilaire family secured a $5,000 loan through FII

to open A Sweet Place candy store in Boston.

Typical loans rely on a relatively small

number of criteria for loan decisions.

INCOME CREDIT

SCORE

OTHER

DEBTS

FII’s loan recognize a variety of additional

indicators of creditworthiness.

$ # INCOME CREDIT

SCORE

OTHER

DEBTS

UTILITY

PAYMENTS

RENT

PAYMENTS

PHONE

PAYMENTS

LETTERS OF RECOMMENDATION

FROM COMMUNITY MEMBERS

INCOMES AND CAPABILITIES OF

ALL MEMBERS OF HOUSEHOLD

Innovation: Social Capital Networks

Innovation: Credit Building

$ $

Informal Lending Circle M.A.F. Model

+27

+22

+29

+34

+26

+23

+31

+24

A pool of small contributions provides a large payment

each period to one (rotating) member; the pot is paid

back by future contributions to the circle.

The Mission Asset Fund reports loans and payments

to credit agencies; members build credit without

paying fees or interest.

Opportunities to Build and Leverage Social

Capital

members

collected monthly

collected annually

Lending Circles

Social Clubs

clubs

for each club

Clubs are focused on skill

building, health, or culture

FII Loan

Torchlight Prize

loans

lent

Loans for business, summer

work gaps, paying off high-

interest loans

winning groups

each

For self-organized groups of

residents who strengthen their

communities Uses vary

Endorsements

people

raised through

crowd sourcing (KivaZip &

Indiegogo

For business and education

members

increase in average household income

new businesses, for a total of 24, with an estimated jobs created by businesses

new homeowners

average increase in savings for an average balance of per family

Family Initiative

CH

ILD

RE

N

HE

ALT

H

CO

MM

UN

ITY

of children reported grade and school attendance improvement

of children attended 104 different afterschool programs

of households reported going to routine medical checkups

of households lost weight and exercised regularly

of households immunized their children

of households led a community activity (e.g. youth workshops, women’s support groups, housing planning)

of households helped someone in the community (e.g. help get a job, offer a loan, provide childcare)

Financial Outcomes

Family Outcomes