Globe Newswire, December 8, 2020: The Initiative will boost grant funding to nonprofits supporting people of color with pro bono financial planning and guidance
WASHINGTON, D.C.: Dec. 8, 2020 – The Foundation for Financial Planning (FFP), a 501(c)(3) nonprofit organization dedicated to expanding access to pro bono financial planning for people in crisis or need, has announced that BNY Mellon’s Pershing will be the Presenting Sponsor of FFP’s new Communities of Color Initiative, launching in January 2021.
In partnership with Pershing, FFP will expand grant funding for pro bono financial guidance programs in communities of color, helping connect more Black, Latinx and Asian American families to Certified Financial Planner™ professionals during a time of economic uncertainty.
“While millions try to stay afloat during the COVID-19 crisis and ongoing issues of social injustice, communities of color are suffering – physically, mentally and financially,” said FFP CEO Jon Dauphiné. “Driven by our collaboration with Pershing and some excellent community-based organizations, we’re excited to launch the Communities of Color initiative to help deliver free, quality financial advice and planning to people who would otherwise go without.”
Statistics from the Federal Reserve reveal a racial wealth gap that has barely changed in 30 years. For example, in 1990, White households owned 90.7 percent of household wealth in the U.S., while Black households owned 3.8 percent and Latinx households owned 2.1 percent. By 2019, Black households owned 4.2 percent of the nation’s household wealth, and Latinx households owned 3.1 percent. Black and Latinx households generally have lower levels of wealth and correspondingly have had a much harder time accessing quality, objective financial planning and advice – a service that can help families to manage cashflow, build assets, and implement a financial roadmap for the future.
“BNY Mellon’s Pershing is proud to sponsor this important new initiative as part of our broader strategy to power the financial success of underserved populations,” said Ben Harrison, Head of Advisor Solutions for BNY Mellon’s Pershing. “Studies have shown that public health and economic disparity have historically had a large negative effect on communities of color. The global pandemic has brought this issue into greater focus. This program is an opportunity for the Foundation of Financial Planning – and our industry more broadly – to support communities of color so they can have better access to quality financial planning to help shrink the significant wealth gap they face today.”
As part of the Initiative, FFP will earmark a series of grants for the next three years to fund nonprofits serving primarily people of color, supporting programs that help families address financial challenges and build savings and assets.
In 2021, special Communities of Color Initiative grants will be awarded to:
- Bedford Stuyvesant Restoration Corporation (Brooklyn, NY), which aspires to close gaps in family and community wealth to ensure all families in Central Brooklyn are prosperous and healthy – a mission facing more headwinds than ever amid the COVID-19 crisis. 89 percent of Restoration’s clients are people of color, with 67 percent from the Black community. The families Restoration serves have experienced an outsized impact from the pandemic, with many of them struggling to navigate the loss of income and increased medical and childcare expenses. With a grant from FFP, Restoration will augment its current financial counseling program to provide clients with guidance from CFP® professionals in the areas of debt management, budgeting, savings, education planning, retirement planning and more.
- Britepaths (Fairfax, VA), which is dedicated to addressing the unique needs of those living in poverty or experiencing crisis, serving more than 7,000 households in Fairfax County, VA, or approximately 11.5 percent of the households who live at or below 200 percent of the federal poverty level. Three-quarters of Britepaths’ clients are people of color. With a grant from FFP, Britepaths will engage CFP® professionals in providing financial advice and guidance to low- to moderate- income families via its Financial Counseling Clinics and Financial Empowerment Center, with a goal to help clients become more financially stable and self-sufficient.
- Caroline Friess Center, Inc. (Baltimore, MD), which trains passionate, goal-oriented women for careers in healthcare. With 95 percent of their clients from the Black community, the Center’s goal is to empower underserved women with the confidence and aptitude needed for both personal and professional successes, leveraging a suite of support services and a holistic curriculum that includes training in “essential skills” like financial capability. With a grant from FFP, the Center will boost its existing financial education curriculum with one-on-one opportunities for its trainees to meet with volunteer CFP® professionals. These women can sign up to receive individual guidance on a range of topics, including debt management, budgeting, retirement, and more.
“For many of the women we serve, Caroline Center is just the first step they take towards realizing their dreams of having a successful career, buying a car, owning their own home, and earning a college degree,” said Lynn Selby, Executive Director of the Caroline Friess Center. “By allowing us to provide them with one-on-ones with CFP professionals, this support from Pershing and FFP will help us build the arsenal of tools women of color need so they can be ready and prepared to take the next step.”
For more information on the Communities of Color initiative, please visit: FFPprobono.org/communities-of-color.
About the Foundation for Financial Planning
The Foundation for Financial Planning is a Washington, DC-based 501©(3) charitable organization, solely devoted to supporting the delivery of pro bono financial planning to at-risk populations, including active military members and wounded veterans, people with cancer and other serious medical diagnoses, seniors and family caregivers, underserved communities of color, domestic violence survivors and many more. Dedicated to powering pro bono financial planning, FFP has provided close to $7.5 million in grants to national and community-based pro bono programs; worked with partners to activate more than 22,000 financial planners to volunteer their time and talents; and acted as a leader and catalyst to promote a rich tradition of pro bono service across the financial planning profession. Visit FFPprobono.org to learn more.
About BNY Mellon Pershing
BNY Mellon’s Pershing and its affiliates provide advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers with a broad suite of global financial business solutions. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody, investment and retirement solutions, technology, enterprise data management, trading services, prime brokerage, managed account technology and operations and business consulting. Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of offices worldwide, Pershing provides business-to-business solutions to clients representing more than seven million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. Professionally advised managed accounts are offered through its affiliate, Lockwood Advisors, Inc., which is an investment adviser registered in the United States under the Investment Advisers Act of 1940.
Foundation for Financial Planning