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The Mid South has long been burdened with some of the highest poverty rates in the U.S., in part because its residents lack access to financial services. William Bynum — former community development advisor to Presidents Clinton, Bush and Obama — set out to change that by creating HOPE Enterprise Corporation, a nonprofit Community Development Financial Institution (CDFI) that provides financial services to individuals living in these so-called “bank deserts.” At Hope Credit Unions, the success of each branch rests firmly on the backs of the communities it helps. There are no shareholders, which allows the business to focus on its goal of connecting low-and moderate-income individuals to affordable, responsible financial services. As the recipient of the 2013 John P. McNulty Prize, HOPE has seen its business expand from 791 members to 27,000 in less than two decades of operation, generating $1.7 billion in financing, and directly benefiting more than 400,000 people. Now that’s a lot of hope.
MORE: Online Money Pooling Could Build Credit History for America’s Working Poor
Tag: Poverty
Utah Is on Track to End Homelessness by 2015 With This One Simple Idea
Utah has reduced its rate of chronic homelessness by 74 percent over the past eight years, moving 2000 people off the street and putting the state on track to eradicate homelessness altogether by 2015. How’d they do it?
The state is giving away apartments, no strings attached. In 2005, Utah calculated the annual cost of E.R. visits and jail stays for an average homeless person was $16,670, while the cost of providing an apartment and social worker would be $11,000. Each participant works with a caseworker to become self-sufficient, but if they fail, they still get to keep their apartment.
MORE: How much food could be rescued if college dining halls saved their leftovers?
Other states are eager to emulate Utah’s results. Wyoming has seen its homeless population more than double in the past three years, and it only provides shelter for 26 percent of them, the lowest rate in the country. City officials in Casper, Wyoming, now plan to launch a pilot program using the methods of Utah’s Housing First program. There’s no telling how far the idea might go.
For NationSwell’s in-depth look at Housing First, click here.
AND: If you want to hire someone to help the homeless, why not the formerly homeless?
Correction: A previous version of this article stated that Utah had reduced its rate of homelessness by 78 percent. It’s been reduced by 74 percent.
When Living and Working in the ‘Worst City’ in America Is a Win-Win
Sure, everyone wants to be in the hottest location and the top of the business heap. But you know what? That spot means you spend a lot of time (and money) defending your market position and trying not to make any mistakes. Compare that to being off the beaten path. You’ve got more room to grow and experiment. Plus, the rent is a whole lot cheaper. That’s why social enterprises who are working on really tough, intractable challenges like poverty find fertile ground in s0-called undesirable places. A socially minded media company called CSRWire thinks that being in Springfield, Mass.—just ranked as the least desirable place in the country—is actually a win. Check out the company’s work with the Gasoline Alley Foundation and be inspired by how this group teaches social entrepreneurship to inner city and underprivileged people.
Artist Brings Awareness To Homelessness
Jon Linton is fusing art with activism: the Phoenix-based photographer uses his camera to focus attention on homelessness, bringing awareness and compassion towards the homeless through dignified portraits. His project, titled “I Have A Name,” was inspired by his conversation with the first homeless man he met during shooting: “You have no idea how long it’s been since somebody cared to asked me my name. We are like the walking invisible, like America’s forgotten,” the man told Linton. The photographer will have his first gallery show in December and hopes the project will turn into a traveling installation.
Could a Basic Income Cut American Poverty in Half?
Here’s a far-out idea to fight poverty: create a basic income. If implemented, everyone over the age of 21 would receive a monthly check from the government, regardless of income. Proponents argue that a basic income would cut American poverty in half. It would allow the government to eliminate other social welfare programs, like SNAP food assistance. One concern with the idea–and there are many– is that it could create a disincentive for people to work. An article in The Atlantic says that because the basic income would be, well, basic, people would still want to work for the niceties they could purchase with a higher income. In an upcoming election, Switzerland will vote on whether or not to give this idea a shot. If it passes, Switzerland will be the first country to implement this policy on a national level. If it succeeds, other countries may follow suit. Based on the state of American politics, it’s unlikely we’ll be one of them. Still, it’s an idea.