GMA Foundations hosted a briefing highlighting the progress of the asset building movement in Massachusetts.

The June 2nd briefing featured consultant Christine Robinson, one of the pioneers of the foundation asset development movement, Monalisa Smith, a vice president at Citizens Bank, the lead funder of Greater Boston Interfaith Organizations’ “From Debt to Assets Program”, and Angela Brown, Senior Program Officer of the Hyams Foundation and a member of the Asset Development Commission for the State of Massachusetts.

The briefing emphasized that increasing the earning potential of low-income families is a central goal of most foundations concerned about poverty. But income is only part of the financial picture. Foundations have begun to recognize the importance of programs designed to increase the assets, or net worth of families as well.

The presenters highlighted how assets loom large in the multi-generational story of the wealth divide. Land, houses, and personal savings are a cornerstone of the middle class. Programs such as the 1913 home mortgage interest deduction, the federal housing loan act of 1935 and the GI Bill of 1944 brought millions of whites into the middle class while excluding most minorities.

Even today, government assistance programs for low-income people can create disincentives to save and accumulate assets. Modest increases in income can contribute to the “cliff effect,” when an otherwise upwardly mobile family can be sent on a downward spiral when they are disqualified for key public benefits such as child support or housing.

The discussion closed with a brief summary of how funders can support the field.  Strategies for asset development cover a broad spectrum including:

• Increasing access to mainstream financial services to savings
• Developing savings opportunities including Individual Development Accounts or the underutilized Earned Income Tax Credit program
• Increasing investment opportunities in home and business equity
• Protecting families from predatory lenders

Speakers:
Christine Robinson, Stillwaters Consultation
Monalisa Smith, Citizens Bank
Angela Brown, Hyams Foundation