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					                      Moving Families
            toward a Brighter          Future

Presented by:                  Presented to:
Jeffrey E. Faulkner            Social Impact Exchange
President                      June 17, 2010
A Challenge
For one week
   Park your car—put your keys away
   Stop using your bank(s)
   Avoid shopping at a supermarket
   Include stops at school and daycare
   Do your laundry at a laundromat & take your kids!

  “Aside from the lack of child care, lack of transportation is perhaps
     the most common problem facing low-income workers trying
                        to get and keep a job.”
                                                Progressive Policy Institute
Invisible text
      What is Ways to Work?

A unique economic empowerment program that
helps working poor families:

    • Solidify position in the workforce

    • Build financial literacy and capacity

    • Attain self-sufficiency
    The Ways to Work Approach

• Focused financial education for all applicants
   household budgeting
   reviewing/repairing credit report and score
   “just-in-time” financial education class

• Low interest, character-based loan with real-
  world expectations for repayment

• Case management services maximize success
  with the loan
   The Ways to Work Model
• Franchise-like business model

• Client work performed by local agencies

• Program support, management and lending performed
  by Ways to Work

• Ways to Work a part of Families International, Inc.

• All local agencies are (or become) members of the
  Alliance for Children and Families
  The Ways to Work Loans
• Character-based loans approved via
   Host agency staff recommendations
   Local loan committee review

• Loan values up to $6,000 – flat 8% interest rate
• Loans carry 24-30 month repayment terms
• Typical monthly payments of $150 to $220
• Borrowers commonly save $750 to $3,000 versus
  predatory options
Who are Ways to Work Clients?

The typical borrower:
    A single mother, one or more children

    Employed, meets low-income standards

    Poor or non-existent credit history

    Dedicated to improving family economic
     prospects
            Impressive Results
             (2006 & 2009 Program Evaluations)


• Borrowers averaged a 41% increase in income

• 90% reported car helped them maintain or advance in
  their employment

• 50% accessed education or job training with the car

• 85% of (former TANF) clients continued to be self-
  sufficient after paying off loan

• Credit scores improved during and after program
  participation
    The Ways to Work Network

• Offices are in multi-service community-based agencies

• Currently 34 offices in 19 states

• 18 new / expanded offices in development, 6 new states

• Originated $5M in new loans to 1,300 families in 2009

• Provided ~4,800 financial education experiences in 2009

• Current 24-month repayment rate is ~91%
  The 5-Year Growth Plan

 Expand scale to 100 sites by end of 2014

 Build capacities sufficient to:

    Provide about 5,000 families with loans each year

    Deliver nearly 18,000 focused financial education
     experiences

    Develop new products and delivery systems to enhance
     national and local sustainability
              Growth Plan Capital Needs
                                                 Goal   Secured     Remaining
Capacity Building/Operational
Support Grants                              $ 7.8M      $    3.1M     $ 4.7M

Growth Fund Grants                          $ 5.1M      $    2.1M     $ 3.0M
Loan Capital Grant (CDFI
                                            $ 1.0M       $    0.0     $ 1.0M
Fund)*
Debt Capital/PRI                            $ 22.1M      $ 12.5M      $ 9.6M

                     Totals                 $ 36.0M      $ 17.7M      $ 18.3M

 *Not required for scaling project until 2013.
 Investments Put to Good Use
• State-of-the-art software infrastructure
• Renewed and expanded program support
  materials
• Expanded and reorganized national office
  staff
   – Operations
   – Funding Support Services
   – Business Development
• Poised for rapid growth
Impact During Growth Plan

• Serve 13,500 families with loans & financial
  education
• See household income increase by $130 million for
  client families

• Save clients $20.3 million versus predatory lenders
• Enable 7,750 clients access education or job training

• Help 10,400 families make sustained improvements
  in their credit score
Making a Difference / Changing Lives

 • Powerful market-based intervention for low-
   income families

 • Evidence-based program design & outcomes

 • Lasting, meaningful change in economic status &
   quality of life


  “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
…helping to reconnect families to
     the American Dream
    Moving Families
toward a Brighter   Future

				
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