Fortera Fights Against Generational Poverty

The Fortera Foundation is breaking the cycle of generational poverty by providing essential resources and financial aid to single-parent students.

Top-Level Takeaways

  • Established in 2021, the Fortera Foundation focuses exclusively on assisting single parents attending college.
  • In collaboration with Austin Peay State University, the foundation offers scholarships and financial literacy education to address the distinct needs of a region with high single-parent and poverty rates.
  • It measures short-term success through graduation rates and aims to make a long-term impact across generations.

Credit unions nationwide strengthen their local communities through charitable giving, volunteerism and, of course, financial empowerment. Some cooperatives even stand up their own foundations to expand the reach of their charitable efforts. However, with myriad local needs and countless non-profits in search of assistance, pinpointing how a credit union can maximize its impact can be challenging.

Ginna Holleman, Chief Experience Officer, Fortera Credit Union
Ginna Holleman, Chief Experience Officer, Fortera Credit Union

In a bold move to break the cycle of generational poverty, Fortera Federal Credit Union ($875.5M, Clarksville, TN), is making a profound impact through its foundation. With a laser-like focus, the foundation provides essential resources and financial assistance to single-parent students pursuing college degrees, fostering long-term financial stability and brighter futures for families.

“At the time we were initially considering where our foundation should focus, nearly 24% of our county’s residents under the age of 18 were living below the poverty line,” says Ginna Holleman, Fortera’s chief experience officer who spearheaded the launch of the foundation and served as CEO of United Way for the Greater Clarksville Region before that. “We wanted to provide resources to enable single-parent families to improve their quality of life and earn a solid living wage for their families.”

A Sharp Focus On Empowered Futures

STATEMENT OF PURPOSE

Aiming to break the cycle of generational poverty and improve families’ long-term financial stability, the Fortera Foundation provides supportive resources and financial assistance to single-parent students pursuing a college education. By helping students overcome barriers to completing their degree, the Foundation strives to:
  • Increase the retention rate of parenting students and enable them to graduate.
  • Increase educational opportunity and academic success for parents and children.
  • Increase economic self-sufficiency for single-parent families.

Large university and military populations coupled with high divorce and fertility rates results in the northern Tennessee region having a much higher percentage of single parents and children living in poverty than the state average. The needs of these residents emerged as a clear area of opportunity in the regular community needs assessments conducted by the United Way.

After studying the assessments, Fortera determined the best way to create a pathway out of poverty was to help single parents earn a postsecondary degree. According to 2022 U.S. Census Data for Tennessee, a household’s earnings increase by 33% for each level of education achieved. Those trends have continued with the latest data showing similar, if not higher, earnings boosts linked to educational attainment.

“Higher education is a well-established pathway out of poverty that carries over to the next generation,” Holleman says. “We want to impact not only today’s families but also the families behind them as well.”

Fortera FCU itself supports a number of different community and social impact needs; however, Fortera Foundation focuses exclusively on “building the bridge to an empowered future” by offering college assistance for single parents.

“The Foundation was established specifically to corral our investments and ensure we’re making the most meaningful impact possible,” Holleman says.

Partners In Progress

Fortera FCU works closely with Austin Peay State University to provide important services and support. The credit union has naming rights for APSU’s stadium, and credit union team members offer ongoing financial literacy education on campus.

CU QUICK FACTS

FORTERA FCU

HQ: Clarksville, TN
ASSETS: $875.5M
MEMBERS: 78,130
BRANCHES: 8
EMPLOYEES: 193
NET WORTH: 11.7%
ROA: 0.47%

“It’s the primary university in our community, and its student base has a high percentage of non-traditional students,” Holleman says.

The foundation offers up to a dozen bridge scholarships for students who receive financial aid but have additional funding needs for tuition. Students eligible for this program can apply directly through the university’s financial aid office. In 2022-2023, the foundation awarded a dozen $4,000 scholarships.

Historically, the credit union has provided $50,000 annually in scholarships to single parents who meet specific eligibility requirements regarding marital status, parenting status, and living status as well as requirements for residency, GPA, household income, and degree or certification. Applicants also must be eligible for Pell Grants.

This year, the foundation is extending its scholarship to eligible students seeking higher education from schools other than APSU.

“It’s our first year having a direct scholarship application,” Holleman says. “We have an improved budget for the allocation of those funds. If we see applications are far exceeding funds, that will be taken into consideration for the future.”

In addition to college scholarships, the foundation also provides 10 annual scholarships to local high school students to further their postsecondary education.

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Impact Today. Impact Tomorrow.

Fortera FCU stood up its foundation in 2021, but it has made a clear impact in those few short years.

The foundation measures the graduation rate of scholarship recipients to gauge short-term successes, but its true long-term goal is to make a lifelong, multi-generational impact.

“We don’t just hand them the funds,” Holleman says. “We engage with the students and offer opportunities to work with the Fortera team for financial coaching.”

Fortera collects success stories from both within and outside its scholarship program — from students who have reached out to say “thank you” to those who have learned how to smartly manage their finances and successfully move forward.

“It’s very rewarding hearing from the students whose lives we’re impacting,” Holleman says.

RECIPIENT TESTIMONIAL

“Receiving the Fortera Foundation scholarship has been transformative for me as a single mom pursuing my college degree. Beyond the financial support, which has alleviated the stress of tuition and expenses, this scholarship has provided a sense of security and hope. It’s enabled me to focus more on my studies and less on financial juggling, allowing me to be fully present in both my academic pursuits and in nurturing my family. Moreover, the recognition and encouragement from the Fortera Foundation have bolstered my confidence, reaffirming that my educational and personal goals are valued and achievable. This support has been a beacon of opportunity, empowering me to forge ahead with determination, knowing that I have a strong network of support behind me.” — Sharita Wysinger, Fortera Foundation Scholarship Recipient

Fortera FCU established the Fortera Foundation as a financial endowment that manages resources to break the cycle of poverty. However, it sees a huge opportunity to involve more members in its charitable efforts.

“We had a lot of success attracting members, employees, and our community to become foundation members when we initially launched,” Holleman says. “We’re getting ready to do a membership drive again. Ultimately, our goal is for the contributions raised to fully sustain the operational and fund allocations of the foundation.”

As it plans for the future, the foundation envisions establishing a supportive living environment close to campus. This should help alleviate location-based challenges single parents face when trying to take advantage of financial coaching or gather with other scholarship recipients.

Serving this population requires innovative thinking and flexibility, as these student are juggling a lot and might not be the most vocal about their needs, Holleman says. She’s seen nonprofits provide similar services and compete for limited funding while other pressing needs hiding in plain sight lack resources. In fact, had it not been for the information about local demographic differences and unmet needs available through the United Way, Fortera FCU might not have had such a sharp focus when preparing to stand up its foundation.

“I encourage others to take a deep look at existing community needs assessments to ensure you’re directing your resources to the most urgent emerging or unmet needs in your area,” the experience officer says.

 

July 21, 2024
CreditUnions.com
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