Dear Friends,

As we approach the one-year anniversary of the onset of COVID-19, we have both victories to celebrate and sobering news to confront as we continue to fight for those bearing the most devastating losses of the pandemic.

Today, we focus on the victories, and we start with the exciting news that we have succeeded in passing the American Rescue Plan! What an important win for our communities and those who advocate on their behalf. After months of efforts, we can breathe a little easier knowing that some of our most vulnerable families will be receiving greatly needed help. From an expanded tax credit for families targeted to those with low incomes, to the $50 billion in housing assistance, new funds to ease homelessness, to targeted funds for small business owners to retain staff, this package is putting critical aid right in the hands of those who need it most. We commend the inclusion of assistance for small restaurants and enhanced unemployment insurance for six months. Both measures will help support the individuals who have lost the largest number of jobs: women. The “She-cession” is a reality that we must not only contend with but also respond to in order for everyone to have a shot at true recovery.

Another celebration we’re happy to participate in is Women’s History Month! Throughout the next few weeks, Prosperity Now will highlight women leaders who are creating change and working for impact in their communities. I’m excited that this campaign will feature a few of my incredible colleagues who have made a real difference for Prosperity Now and the communities we serve. Keep an eye on our social media channels to hear their stories!

Plus, this March we are releasing the Building High Impact Nonprofits of Color Project impact report, managed by Prosperity Now and funded by JPMorgan Chase & Co. The report highlights the experiences of nonprofit executives of color and offers recommendations on how best to support them as they address the racial wealth divide. It also outlines critical lessons we learned from implementing the project over the last five years and recommendations for nonprofit sector professionals, corporate and private foundations and policymakers interested in advancing racial economic equity. Be sure to check it out!

I also am thrilled at the announcement from the U.S. Department of Treasury that they will invest $9 billion in Community Development Financial Institutions (CDFIs) and Minority Depository Institutions through the Emergency Capital Investment Program. Prosperity Now has undertaken several major efforts to support CDFIs in the last few months, including our work with the African American Alliance of CDFI CEOs. We believe these institutions are a key component in addressing the racial wealth gap, and this move by Treasury to provide support to these critical institutions is an important step to economic recovery and growth in BIPOC communities.

I want to share an opinion piece I authored with Lawrence R. Jacobs from the Humphrey School of Public Affairs at the University of Minnesota on how the Federal Reserve can commit to improving the financial health of all people in this country. I am hopeful that with the new administration, we have a real chance of transformational change in the institutions that have kept BIPOC communities on the sidelines for far too long.

As always, none of this work would be possible without you, our network, and we at Prosperity Now are grateful for your continued support.

Learnings from our Building High Impact Nonprofits of Color Project
Since 2015, eight cities, 42 organizations and nearly 100 nonprofit executives of color have participated in the Building High Impact Nonprofits of Color Project. Undeniably, this unprecedented moment and this project affirm that strong, well-resourced nonprofits that are connected to the decision-making infrastructure in their communities can catalyze growth and opportunity. Our work allowed nonprofit executives of color to innovate, which has led to radical changes in their communities. We built trustworthy relationships with these leaders. We addressed the root causes of racial economic inequality through our racial wealth divide city profiles. We cultivated networks, both locally and nationally, to generate power to position the leaders as racial wealth equity change agents. Nonprofit executives of color are on the frontlines, prepared to chart a path forward. Read more.

New Report on Expanding Homeownership in Low- and Moderate-Income Communities
The Change Company, with support from Prosperity Now, just released a new report, “Expanding Homeownership in Low-to-Moderate-Income Communities.” The report explores the opportunities that Community Development Financial Institutions (CDFIs) have to create and preserve homeownership in low- and moderate-income communities (LMI), particularly in households of color. Homeownership remains the primary means by which most people in this country can attain wealth. Yet many families—especially those of color—are locked out of the opportunity to buy homes of their own. Homeownership rates in low- and moderate-income communities and for people of color have historically been considerably lower than other groups, making it one of the largest drivers of the racial wealth divide. We find that CDFIs are not only serving individual customers, but they are also addressing structural barriers that prevent low-income households from achieving financial well-being and prosperity. Read More.

Celebrating San Francisco’s K2C Program
Last December, San Francisco’s Kindergarten to College (K2C) program, a Children’s Savings Account program and Prosperity Now partner, welcomed Mohan Kanungo as program manager. With a personal connection to the CSA field and a commitment to an equity lens in his new role, Mohan is an addition we at Prosperity Now are excited about! Recently, the Children’s Savings Team at Prosperity Now caught up with Mohan to learn more about his new position, the impact of COVID-19 and his goals for K2C in 2021. Read More.

Raising the Minimum Wage Would be Transformative for Women | Center for American Progress
The Center for American Progress advocates for a federal minimum wage increase that will ensure economic security for many workers, especially women, who were hit hardest by the pandemic and the ensuing recession.

New and Updated Scorecard Policy Data to Kick off the State Legislative Session | Prosperity Now
In case you missed it, Prosperity Now updated our Scorecard policy data last month. Highlights include new policies like Driver’s License Debt Suspension Protections.

Introducing: Scorecard Cost-of-Living Profiles by State | Prosperity Now
In addition to the updated policy data, the Prosperity Now Scorecard also includes state cost-of-living profiles, which provide more specific context on how working families are making ends meet. 

House COVID Relief Bill Includes Critical Expansions of Child Tax Credit and EITC | Center on Budget and Policy Priorities
The Center on Budget and Policy Priorities highlights two tax credit provisions in the latest COVID relief bill that will reduce child poverty and provide income support for millions of essential workers and people of color.

An Expanded Child Tax Credit Would Lift Millions of Children out of Poverty | Center for American Progress
The Center for American Progress provides its own perspective on the expanded Child Tax Credit included in the COVID relief bill, emphasizing its refundability and the potential recession recovery in the long-term.

The CSA Field Adapts to COVID-19 | Prosperity Now
Prosperity Now presents findings from its annual Children’s Savings Account (CSA) survey, including how programs and families are faring a year into the COVID-19 pandemic.

Investing in Financial Coaching with a Racial Equity Lens | Asset Funders Network
This brief from Asset Funders Network makes the case for applying a racial equity lens in financial coaching programs in order to help people of color achieve equitable outcomes.

Wealth Gaps Between White, Black and Hispanic Families in 2019 | Federal Reserve Bank of St. Louis
The St. Louis Fed analyzed data from the Survey of Consumer Finances and found continued inequities in asset ownership and education level for Black and Hispanic families.

Webinar Series: Your Money, Your Goals March 2021 Training Series | Consumer Financial Protection Bureau | March 11, 18 and 25, 2021

Webinar: From Tax Complexity to Tax Equity | Change Machine & Prosperity Now | March 23, 2021

Webinar Series: Responding to Clients’ Now, Soon and Later Needs | Prosperity Now | March 30, 2021, Note: this webinar has been rescheduled from March 3, 2021.

Webinar: Sustaining the Movement: The State of Children’s Savings | Prosperity Now | March 31, 2021

EMERGE Workplace | Financial Health Network | April 7-8, 2021

VITA  Awareness Day is March 17, 2021! We’ve got video interviews, social media plug-and-play messages and more to share. Stay tuned for more information.

Prosperity Now Staff Members Testify Before Congress
This month, Prosperity Now staff members were honored to testify before Congress on two critical issues. Gary Cunningham, our President and CEO, spoke to the House Financial Services Committee about how Black-owned businesses were the fastest growing business segment in the country before COVID-19, yet around 41% of these businesses were forced to close their doors during the economic downturn caused by the pandemic. Rebecca Thompson, our Director of Field Engagement & Tax Opportunity Network, testified before the House Ways and Means Committee on free tax preparation. She highlighted how the disbursement of Economic Impact Payments resulted in a surge in demand for free tax preparation services for non-filers and those in traditionally underserved populations so that they could gain access to these stimulus payments.

Baby Bonds to Help Bridge the Racial Wealth Gap
Championed by Prosperity Now, and pioneered by economists Dr. Darrick Hamilton and Dr. William “Sandy” Darity Jr., baby bonds are increasingly being recognized as a beacon of opportunity for all. United States Senator Cory Booker (D-NJ) and Representative Ayanna Pressley (D-MA-7) have recently introduced baby bonds legislation called the American Opportunity Accounts Act that would create a federally funded account for every American child. If passed, this would make it possible for every American child to receive an investment of $1,000 into their account. Each year, they would receive annual deposits of up to $2,000, depending on family income. By 18, young adults from the lowest-income households would already have up to $45,000 invested in their account when including interest. What an important foundation for a lifetime of building wealth and maintaining financial security! In just one generation, baby bonds would significantly bridge the racial wealth gap and make economic opportunity a birthright for every American child.

Wilmington group looking to improve housing situation in the city, WDEL, February 16, 2021

House Democratic Tax Writers Push Delay of April 15 Deadline, Nonprofit Quarterly, February 22, 2021

How Tax Policy Can Help Low-Income Americans’ Pandemic Plight, Forbes, March 1, 2021

Interview: How Tax Policy Can Help Low-Income Americans’ Pandemic Plight, TaxNotes, March 1, 2021

The Change Company pledges $1B in new LMI lending, NEXT Mortgage News, March 11, 2021

Webinar Series: Pressing Forward: 2021 Policy Priorities to Advance Household Financial Stability | January 26 – March 9, 2021
Earlier this month, we wrapped up this series which outlined Prosperity Now’s federal policy priorities for the year around tax, financial security, affordable homeownership and consumer protections. If you missed the series, check out the recordings!

Prosperity Now’s Black History Month Campaign | February 1-28, 2021
In celebration of Black History Month last month, we proudly featured Black leaders with whom we work closely across the organization. Check out what they had to say about what inspires them in their leadership!