Transcript Ways to Work

Moving Families Toward a
Brighter Future
Ways to Work At a Glance
 Unique asset development, economic self-sufficiency program that
leverages the expertise of human service agencies and the infrastructure of
a national office
 Serves hard working families with challenging credit status/histories but also
the demonstrated will to advance themselves and their families
 Combines financial education, counseling, affordable loans and case
management with high expectations and real-world accountability
 WtW loans range up to $8,000 for up to 36 months at a flat 8% interest rate
resulting in typical monthly payments of $150-220
 Clients save between $750 and $3,000 or more in interest alone versus their
alternatives (Buy Here, Pay Here dealers)
 The programmatic goals are to:
 Solidify position in the workforce
 Build financial literacy and capacity
 Attain self-sufficiency
Ways to Work Specifics
®
Program Model Overview and Timeline
Four to Six Weeks
Loan
Closing
24 – 36
Months
Applicant is
WtW
Local office executes Applicant schedules
Client finds
Client
appointment with
presented
a marketing plan to
car, and National support and
Local Loan Officer
to Loan
funds the
create inquiries.
has an
program
to process
Committee
loan.
approved
completion
Applicant calls local
application and
for approval or inspection. Local Loan
through
office to receive info
perform interview. denial based upon
Officer
Case
on WtW – and
the client’s
performs Management
referred (Intake) into (budget creation
loan repayment
character and
loan
WtW Orientation /
likelihood of
closing.
Financial Ed. Class ability, credit review,
Client is charged:
and personal
repayment.
8% interest & $60 closing fee
statement)
Ways to Work Approach

Focused financial education for all applicants - Aimed at
preparing them for the car loan experience and documenting
their readiness for the experience. The process includes:

“Just-in-time” classroom-based financial education session with
pre/post testing

One-on-one household budgeting and credit report review/repair
education

The car serves the family and the program – Clients come to the
program to gain affordable transportation but also receive the
support and guidance needed to succeed in future credit
experiences

The ongoing human intervention is critical –The success of WtW
clients is significantly impacted by the quantity and quality of
case management support during the repayment period (~10%
default rate in the program vs. a 35% or higher “normal” default
rate.)
Making a Difference, Changing Lives
 Powerful market-based intervention for low-income families
 Driven by the community need and demonstrated through
the community support of the program
 Evidence-based program with strong outcomes
 Lasting, meaningful change in economic status & quality of
life for most clients and their families
 Families can now:
•
•
•
Get to work and school
Bring children to daycare
Complete daily household tasks
“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
Selected Results from 2011 Evaluation

Ninety-four percent (94%) of WtW clients indicate that their car helped them
maintain or improve their employment circumstances (44% got a promotion or
raise)

Eighty-two percent (82%) of clients sustain themselves without TANF cash
assistance after their loan despite having received it before participating in WtW

Twenty-six percent (26%) of clients indicate that they have increased their
educational attainment since receiving their WtW loan

Fifty-eight percent (58%) of clients reported becoming banked by conventional
financial institutions since participating in the program – checking and savings
accounts, new car loan or other credit

Nearly all participants indicate that the car has helped them provide better care
for their children and do more things for and with their children

Taking into consideration the combined benefits for borrowers, employers and
taxpayers, WtW yields an approximate 250 percent return, or $2.50 for every $1
invested
Nationally Recognized Support of the Program
Significant Investors:
$12 million in PRI / Loan Capital from:
Bank of America, Annie E. Casey Foundation, Calvert
Foundation, Prudential, Kresge Foundation
Over $6 million in Grants:
Walmart - $2 million – 2nd Investment ($4.5 million
since 2009)
Kresge - $375,000
Department of Treasury - $4 million
Significant local pass-through grants via Arthur Blank
and Kellogg Foundations
2011 Results and 2012 Objectives

Provided a record $5.8 million in loans to 1200
families in 2011 – a 40% increase in lending dollars

Serving approximately 4,800 families annually with
focused financial education

Current 24-month repayment rate is ~90%

A goal of lending $9 million dollars to 1700 families in
2012 – 60% growth over 2011

12 new/expanded offices in development across 5
states

Pilot of new products - Foster Care,
Military/Employer embedded programs, and virtual
counseling services
Three Areas of National Office Support and Focus
Delivering your “Program in a Box”
Marketing and Business
Development
Streamlined assistance in
launching and expanding WtW
local offices
Operations
Unlimited lending capital,
guidelines and management of
the WtW lending processes,
programmatic training and
support
Funding Support Services
Consultative and continued
assistance for fundraising the
program’s operational dollars
Questions, comments, ideas…
Wendell E. Willis
Vice President of Operations and Corporate Officer
11700 W. Lake Park Dr., Milwaukee, WI 53224
O: 414-359-6594 C: 414-350-8336
[email protected] www.waystowork.org