building assets and opportunity for low-income canadians welfare to work: the next generation a...
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Building Assets and Opportunity for Low-Income Canadians
Welfare to Work: The Next Generation
A National Forum
St. John’s, Newfoundland
November 2003
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
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)
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
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)
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)
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
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
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
continued…
• SAR Savings Goals– 60% Education– 11% Skills Training– 29% Micro-Enterprise
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
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…
and ILAs• SEDI exploring 2 initiatives
– Homeownership– Access to affordable private market rental
accommodations (transitional housing)
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
Social and Enterprise Development Innovations
1110 Finch Avenue West, Suite 406Toronto, Ontario, Canada
M3J 2T2Ph: 416.665.2828 Fax:416.665.1661
Email: [email protected]
www. .org