Prosperity Now’s 1:1 Fund made adjustments to the Graduation Fundraising Campaign planned for June to address the ways the COVID-19 pandemic continues to impact CSA programs, participating families and potential donors.  Usually, participating programs receive matching funds based on how much money they raise during the campaign. However, this time, the 1:1 Fund provided a flat amount to each partner based on the number of children in their program.

The 1:1 Fund team recognized the changing economic landscape and challenges facing our partner programs. So the 1:1 Fund Fund also gave the CSA programs more flexibility with the money distributed, allowing them to meet the immediate financial needs of participating children and families and adjust their strategies around long-term savings. 1:1 Fund partners are using this flexibility to help bridge the digital divide for students learning remotely, cover postsecondary education transition costs and offer direct financial support to participating families. Some programs are continuing to use the funds to provide initial deposits and other incentives to grow participants’ account balances at a time when many families are unable to save. Below, we discuss examples of how 1:1 Fund partners are using these funds to support their participants.

The economic impact of the COVID-19 crisis has disproportionally affected low-income communities, and many programs have adjusted to address the growing financial concerns among participating families. The El Monte Promise Foundation has been supporting incoming college students with scholarships for books, orientation fees and other college startup needs. For younger participants, the program is encouraging participation in educational activities during the summer – including online learning, financial literacy programs and reading circles – by offering financial incentives to be deposited into college savings accounts. With the extra support from the 1:1 Fund, El Monte Promise will continue to address participants’ needs.  

The Lansing SAVE program is addressing its community’s needs through a unique partnership with the Kroger Rewards program. The program will use the money from the 1:1 Fund to purchase 110 $50 gift cards to Kroger, an area grocery chain, to distribute to participating families in need. Gift card recipients and anyone in the region can link their Kroger rewards cards to the Desk Drawer Fund, which is the foundation of Michigan State University Federal Credit Union, the program’s partner credit union. Once linked, the cards earn 1% in cashback rewards that go to the Desk Drawer Fund; those funds are periodically divided equally among open SAVE accounts. This allows Lansing SAVE to help both individual families purchase groceries and boost the accounts of all participants.

Challenging economic conditions are making it hard for families, many of whom struggled before the COVID-19 pandemic, to save for their children’s education. Springboard to Opportunities will use the money from the 1:1 Fund to make deposits into children’s accounts at a time when families are unable to make contributions. Families who participate in virtual programming and share videos, pictures and posts of their participation will be entered into weekly drawings for prizes. Each week, the program will select a participating child to receive a $250 deposit into their CSA. These drawings will both remind families about their accounts during this difficult time and create energy and excitement around the accounts. Promise Indiana will use the money from the 1:1 Fund to continue offering incentives to boost their participants’ accounts. Additionally, the program will be utilizing a portion of the funds to support participants in the Far Eastside of Indianapolis, a community with significant economic need.

As communities across the country continue to face new concerns in light of the COVID-19 pandemic, CSA programs have responded by shifting their operations and taking steps to address increased  economic hardships among participating families. With the help of the 1:1 Fund, programs will continue to meet the immediate needs of their families and provide them with long-term support for postsecondary education.

For the latest updates on the CSA field, and to learn about upcoming CSA events and webinars, sign up for the Campaign for Every Kid’s Future and follow us on Twitter @savingsforkids.