More credit unions are standing up foundations and shining a light on the importance of charitable giving strategies. But how can cooperatives identify local needs and develop an approach that maximizes impact? In Iowa, GreenState Credit Union ($11.2B, North Liberty, IA) consults ALICE.
The credit union stood up a foundation in 2022 to address unmet needs in its communities. Today, GreenState Foundation focuses on three areas of need: financial health, affordable housing, and environmental sustainability.
“We wanted to help fill gaps that were tied to our ‘people helping people’ mission,” says Tara Wachendorf, president of GreenState Foundation and vice president of GreenState Credit Union.
To better understand those gaps, GreenState Foundation has committed to a three-year partnership with the United Ways of Iowa to commission the state’s bi-annual ALICE Reports in 2023 and 2025. ALICE — which stands for Asset Limited, Income Constrained, Employed — represents the growing number of families who are above the federal poverty line but unable to afford necessities such as housing, food, transportation, health care, childcare, and technology.
Community financial institutions need an accurate understanding of financial hardships and local needs to develop effective solutions. Learn more in “What Can ALICE Do For You?”
“We’ve been long-time partners of the United Way in all of our markets,” Wachendorf says. “ALICE individuals and families are boosting the economy but still struggling to make ends meet. Understanding how the needs of our most vulnerable households change over time is vital for us to make a difference across our footprint. ALICE data will help us find and fund the right solutions.”
GreenState Foundation’s support enables United Ways of Iowa to dig deeper into the community to understand what is happening at the local level. The charity can then share those findings with community organizations to help them make better, data-driven decisions.
“This is extremely important to our daily work as we help lift the invisible, forgotten families struggling in our communities and start conversations about what else can be done to support them, especially as we expect to see a different story emerge now that pandemic supports are no longer available,” says Kelli Soyer, executive director of United Ways of Iowa.
Inflation, specifically the rising costs of housing and food, has had an outsized impact on ALICE households, and United Way is continually monitoring these areas in addition to overall and mental health. Meanwhile, to address its three key focus areas, GreenState Foundation has invested in providing access to financial literacy tools and resources for all, closing the racial homeownership gap, and making the community a better place to live, work, and play.
“Affordable housing is a big issue that was identified through the ALICE data,” Wachendorf says. “We’re a powerful mortgage lender, so we naturally saw an opportunity to move the needle there.”
GreenState Credit Union has committed $1 billion in mortgage loans to expand access to homeownership for people of color throughout the Midwest in the next decade. Its foundation has committed $20 million in funding for the endeavor. At a micro level, the foundation is earmarking $9 million to people or organizations working to close the racial homeownership gap or otherwise serve BIPOC, immigrant, or refugee community members by supporting their financial health and stability; $6 million to agencies that serve working families in this regard; and $5 million to support environmental causes.
In just 18 months, the foundation has awarded $980,000 in downpayment assistance grants and impacted nearly 240 families.
“Our team is great at helping people,” Wachendorf says. “It’s all a testament to them.”
Anyone — no matter where they live and whether they are a GreenState Credit Union member — may join GreenState Foundation free of charge. This includes those outside of Iowa.
“Anyone can join the foundation and gain access to all our financial literacy tools and resources,” Wachendorf says.
And although the foundation has its own board that determines how to invest funds, members do have the ability to vote every year on $2,500 grant award recipients.
Currently, GreenState Credit Union is the sole funder of GreenState Foundation; however, there are plans to allow members to donate directly. When that happens, Wachendorf expects the foundation to evolve and priorities to change, but its vision will remain the same.
“The foundation gives us an opportunity to show the community we’re here to invest,” Wachendorf says. “We’re taking chances on organizations we know will do great things.”