Celebrate CRA 2020

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Visionaries Build Communities

Celebrate l b brate CRA 2020

A virtual event


Deposits | Checking | Loans MyDiscoverBank.com or visit 502 E. Market St., Greenwood, DE 19950

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October 8, 2020 What a year!! What a pivotal, illuminating, unforgettable year. Our grandchildren will tell their grandchildren that 2020 was a turning point for humanity. That our way of life before 2020—and our way of life after—was never quite the same. But what will they say? That we learned from our mistakes? That we came together, for the sake of humanity? That in our darkest moments, we found hope in our people and our communities? We sure hope so. If 2020 has taught us anything, it is that we are all connected—every single one of us, across the globe. 2020 has also shown us how very vulnerable our personal finances can be. How economies can topple. How industries can collapse. How a shrinking middle class can grow even smaller, and how the poor can find themselves in a waking nightmare—fending for their lives, their jobs, their families, their bills, their sanity—all at once. And so, I like to think we can emerge from 2020 with true 20/20 vision. With core values of equity, dignity, and respect for ourselves, our communities, our society, and our shared humanity. We are the ones we have been waiting for. At DCRAC, our 20/20 vision is to compete for A Community Thrives challenge that will allow us to build Stepping Stones Community Federal Credit Union--built by the community, for the community, and of the community. So, let us turn this moment into a movement by pledging that each one of us will help at least one person to take care of their own personal finances. The future depends on what we do today. With your support, we can make tomorrow brighter and better for our fellow Delawareans. Carol Davis, Board Chair Rashmi Rangan, Executive Director


Nearly half of black households are unbanked or underbanked—a disparity that, over the course of a financial lifetime, can cost nearly $40,000 in fees. When asked about why they use fringe banks and not mainstream banks, the answer is that they are “more pride-conscious than price-conscious.” Stepping Stones Community Federal Credit Union is a Federal Home Loan Bank member, a Community Development Financial Institution, and the only certified Minority Depository Institution in Delaware. We are building a bank for the nearly 9,000 Wilmingtonians who are low-wealth, unbanked, underbanked, or have no broadband access. We made paycheck protection program loans that ranged from $5,000 to $700,000. Last fiscal year: • • • •

357 Members are using ATM cards Monthly withdrawals average $42,000 400 members have direct deposit Monthly deposits average $68,000

Members borrowed loans for: debt consolidation, buying a car, home improvement, and more. SSCFCU continues to offer credit builder, share secured, signature, and auto loans to its members. Partners in 2019-2020 include: Pathways to Success, City of Wilmington Summer Youth Program, HOPE Commission, Community Education Building, National Development Council, DANA, and others who continuously support our work. Thank you.


Taking action on our commitment to Delaware We know we must do more to address the very real consequences of systemic racism that exist in society today. The impact on communities across the country is clear, including where our teammates live and serve our clients. To drive progress, Bank of America has committed to invest $1 billion over four years to advance racial equality and economic opportunity, building on work we’ve had underway for many years. We’re partnering with community and corporate leaders to create sustainable change. Our actions will help address critical issues and long-term gaps, including: •

connecting workers to new skills and enhanced job readiness

increasing medical response capacity and access to health care

powering minority-owned small businesses through access to capital

helping people find a place to call home they can both love and afford

We know there’s a lot of work to be done, but we promise to keep listening as we work together on this shared mission.

Chip Rossi Delaware Market President

Bank of America, N.A. Member FDIC. Equal Housing Lender

© 2020 Bank of America Corporation. All rights reserved.


The Austin J. Edison Board of Directors’ Award

Markevis Gideon, NerdiT Foundation Each year, the Board of Directors’ Award is given to an individual or organization committed to service and leadership. In 2020, we renamed the award to honor the passing of former board member Austin J. Edison. This award will continue to serve as a tribute to those who lead by example and tirelessly strive to make our community and state stronger through service. Markevis Gideon is Founder and Managing Director of NerdiT Now and Founding Board Member of NerdiT Foundation. He is a Delaware Business Times 40 Under 40 recipient, TEDx speaker, and FedEx Top 100 Small Business national grant finalist. In 2019, Markevis was featured on Shark Tank. Most recently, Markevis and NerdiT Now were awarded the Reinventing Delaware 2020 honor. Markevis traveled the world before coming back to Delaware to launch his business. While NerdiT Now buys, sells, and repairs technology, the company gives so much to the community. Markevis’ spirit of service led to the founding of NerdiT Foundation, which donates computer equipment and services to local students, schools, and nonprofit organizations. Most notably, NerdiT Foundation worked tirelessly to close the technology gap during the height of the pandemic. This year, we are honored to present the Austin J. Edison Board of Directors’ Award to NerdiT Foundation.


At TD Ba Bank, we’re support the happy to su things that bring our community together.

TD Bank USA, N.A. | TD Bank USA is a separately chartered bank and an afďŹ liate of TD Bank, N.A.


Your Team at DCRAC The Board of Directors

Staff

Carol Davis, Chairperson

Anthony Dohring, Esq.

Dan Boddie, Vice Chairperson Blanche Jackson Domenic Pedante, Secretary

Carl Wagner

Jan Slattery, Treasurer Cristian Tijerino Albert Griffith

Garry Johnson

Chantel Vanderhost

Greg Whilby

Eray Guven Eric Smith

Jaclyn Quinn, Esq. Jasmine Lilly

Kathy McDaniel Lisa Spellman Mary Horchos Shondell Ayala

Marisela Tovar-Rangel Rashmi Rangan, Esq.


The Blanche L. Jackson Community Service Award

Dr. Alton Williams The Blanche L. Jackson, Excellence in Community Service Award recognizes those who are doing positive and impactful work in the community. Named for Blanche L. Jackson, this award is a testament to her dedication as a volunteer with Stepping Stones Community Federal Credit Union. Dr. Alton Williams is a respected Delaware Optometrist. In 1974, Dr. Williams became Delaware’s first African-American optometrist. He has been in private practice for over forty years. Dr. Williams has lectured internationally and taught clinical techniques to students at PCO and to doctors in the field across the country. Dr. Williams has received numerous awards. In 1986 he was named the State of Delaware’s Small Businessman of the Year and has been honored by the Delaware Optometric Association as the Optometrist of the Year, an award given only a few times in the history of the organization. In 2004 Dr. Williams was named one of the 100 most influential African-Americans in Delaware. In 2009 Dr. Williams received the 45th Annual NAACP’s President’s Award for community service. March of 2012, Dr. Williams was honored by the National Education Sorority, Phi Delta Kappa-Rho Chapter for exemplary community service. Dr. Williams’ greatest accomplishment has been giving his life to the Lord in November, 1992. Dr. Williams is a community leader, working with individuals who have been disconnected from their families and their communities. Working with Dr. Williams, opportunities for personal and professional growth are made possible while strengthening connections. We are honored to present the Blanche L. Jackson Excellence in Community Service Award to Dr. Alton Williams.



Thank you sponsors Artisans’ Bank Bancorp Bank Bank of America Capital One Barclays Discover Bank First Citizens Community Bank JPMorgan Chase PNC Bank TD Bank


The James S. Angus Volunteerism Award All we needed was guidance! We got so much more.

The Capital One Team Loren Phillips Kim Harrison Riya Rodhe Sara Roettger Caroline Moore Rachael Deeringer Kristen DeFazio Alesha Belkey

In 2019, DCRAC reached out to Capital One because they are ALWAYS on brand. We had just figured out our brand--Transforming Financial Lives. Unfortunately, we did not have in house expertise to translate that into everything we needed for brand identity. We really were unsure of even the questions we should be asking. We need not have worried one bit. They came. They saw. They did! They designed our logo. They taught us about brand colors, voice, and consistency. They did such a deep audit of all our social persona and came back--quite possibly shaking their heads. From our website--which was really very busy and we knew it--to our fliers to our Facebook etc. We needed to clarify and streamline our message. What we remember most from working with the team is their joy. They had fun doing something that was hours and hours of work. To paraphrase Jim Angus: “I can’t do that!” are 4 very limiting words. Replace them with “How can I help?” and the wondrous world of opportunities open up. “I know I speak for our smaller Brand team when I say that we are truly humbled & honored to even be considered for this award, much less accepting it” says the ever gracious team leader! We are humbled to recognize those who helped us launch our re brand this year--A small but mighty team from Capital One.


BUILDING STRONG COMMUNITIES ĒĆĐčēąĆ āčċċēČćĒėæĀÿđăĂ PROGRAMS, PROVIDED BY OUR PARTNER IN GOOD: DELAWARE COMMUNITY REINVESTMENT ACTION COUNCIL.

See how we’re helping our communities thrive at capitalone.com/about


In July 1, 2019, DCRAC officially launched the nonprofit law firm, DCRAC Law. While all legal services are not new to DCRAC, new services were added with an affordable fee schedule. DCRAC has operated the Low Income Tax Clinic since 2003. Representation continues to be available free of charge to low income taxpayers facing an IRS controversy. We opened 81 new tax cases and resolved 45. We helped 68 taxpayers virtually. We are also representing one taxpayer before Delaware tax appeal board, 7 in tax court and 1 in District Court. • • • •

Non traditional consultations: 68 similar to assisting a pro se litigant. Traditional Consultations: 294 Other Consultations: Over 225 re: PPP, Economic Stimulus, etc. Technical consultations: 2

DCRAC Law’s fee based services focus on protecting wealth and planning for the future. Services include wills and estate planning, probate representation, deed and title transfers, small business formation, and contract review. We represented 32 clients with wealth planning matters such as title transfer and estate planning. We worked with 6 clients to resolve outstanding probate matters, and assisted 5 small businesses with various matters. Consultations: 62 regarding a variety of matters such as notarization of foreign documents, contract disputes, landlord tenant disputes, small business contracts and debt resolution, contract review, child support, unemployment, and custody. Key Partners: Taxpayer Advocate Service, Nehemiah Gateway CDC, Urell Spain, Partners for Justice, Community Court, Spur Impact, housing counseling agencies, and others who continue to support our work. Thank you!


The James H. Sills Jr., CRA Leadership Award To paraphrase Amy Walls--What an amazing story of partnership, collaboration, and impact! We came together quickly and efficiently in a very short time frame to deploy over $10 million that went out the door within 2 weeks. The James H. Sills, Jr., CRA Leadership award this year goes to a collaborative that allowed $10 million in PPP loans to flow to Delaware nonprofits. Philanthropy in action made it possible for NDC to deploy $10 million in PPP loans to Delaware nonprofits. These loans will soon be forgiven. • Jessie Ball DuPont Fund: Their mission is to serve the communities that Jessie Ball duPont knew and loved. They envision a world in which every member of those communities feels they belong. • Longwood Foundation: Since 1937, they have invested in the quality of life and future of our community. They seek to invest in nonprofit organizations to address challenges by accelerating success in the nonprofit sector. • Welfare Foundation: Founded in 1930 and thanks to the performance of its invested assets, the Foundation has made grants to nonprofits totaling nearly half a billion dollars over its greater than 80-year history. National Development Council made $10 million in loans. Since 1969, NDC directs capital to support the development and preservation of affordable housing, creates jobs through small business lending, advances livable communities with social infrastructure investment, and builds capacity with hands-on technical assistance to local governments. Delaware Alliance for Nonprofit Advancement liaised with the nonprofits so they were better prepared to take advantage of this opportunity. DANA’s technical assistance was crucial to making Delaware nonprofits competitive. DANA is committed to enhancing and strengthening the nonprofit sector by providing low cost education, consulting, and advocacy support for nonprofit leaders and boards of directors. Matthew Parks & Amy Walls, Discover Bank, have been the staunchest cheerleaders for this effort--from ideation to implementation. We are humbled and honored to recognize those who made this possible.


Thank you for helping our community take one more step forward.

Thank you, Delaware Community Reinvestment Action Council, for helping to make our community a place we’re proud to call home. Contact Monica L. Burch SVP and Market Manager 215-585-4606 monica.burch@pnc.com pnc.com/communitydevelopmentbanking

Š2020 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC CON PDF 0618-0106


IT TAKES A VILLAGE Thank you for your support over time and through time AARP Delaware FACES--Freeman Foundation Americans for Financial Reform Fulton Bank Artisans’ Bank GMAC Arsht Canon Fund HSBC Associates National Bank HSBC Trust Bank of America ING Direct Bank One Internal Revenue Service Barclays Kenny Family Foundation BHA Foundation JPMorgan Chase Building Blocks Grant Kent County Association of Realtors Capital One Catholic Campaign for Human Devel- Laffey McHugh Foundation Longwood Foundation opment M&T Christ Church Christiana Hundred National Community Reinvestment ChristianaCare Coalition Citi New Castle County Citizens New Castle County Board of Realtors City of Wilmington PNC Comenity Bank Principal Foundation Commerce Bank Raskob Foundation Crestlea Foundation Sussex County Council Crystal Trust Foundation The Bancorp Bank Delaware Bar Foundation TD Bank Delaware Community Foundation Delaware Financial Literacy Institute United Way of Delaware US Department of Agriculture Delaware Grant-in-aid Delaware State of Housing Authority US Department of Housing & Urban Development Discover Bank Wachovia Federal Home Loan Bank Walt Disney Foundation Pittsburgh Welfare Foundation First Bank of Delaware Wells Fargo First Citizens Community Bank WSFS First USA & Many Individuals FNMAE


Guess Why They Call Us A Community Bank Artisans' Bank has been investing in the Delaware community since 1861. Your money stays in this community helping it to grow and prosper. Stop by today and you’ll see that we are big enough to help you yet small enough to know you. Right here in your neighborhood.

NMLS#774924


In April 2019, the Money School became a DCRAC institution. Created to build financial capacity of Delawareans by providing free education about money, the Money School operates statewide and classes are available to everyone. Throughout the last fiscal year, we worked to onboard new instructors, schedule new and unique classes, build partnerships, and increase class attendance. Some of our 2019-2020 highlights include: • Money School went virtual in April 2020 to ensure classes would continue despite Covid-19. • Published our first annual Money Magazine—distributed virtually. • https://issuu.com/dcrac/docs/dcrac_20magazine_20final • https://issuu.com/dcrac/docs/dcrac_magazine_insert_final • Supported our community with one-on-one assistance in areas such as help with filing unemployment, downloading banking apps and alleviating fears about online banking, paycheck protection program and economic impact payments. Last fiscal year, we offered 180 classes. Attended by 2,012 (912 views on Facebook Live). Our offerings included: Young Money for teens; Relationship with Money; 101 topics such as Saving, Budgeting, Money Matters, Probate, Estate Planning, and more. Student Statistics: about 75% of our students are female; 60% have retirement plans; 60% are Caucasian; 60% are married; 60% are below 80% area median income; and 60% are over 50. Our students are located throughout the state. Partners include our volunteer faculty; we could not offer as much as we do without their dedication, generosity, and willingness to be a resource to their peers. Delaware Division of Libraries and special thanks to Lewes Library and Bear Library for the extra promotion of classes to their patrons. Thank you.



A COMMUNITY THRIVES 2020 When asked about why they use fringe banks and not mainstream banks, the answer is that they are “more pride-conscious than price-conscious.” Poverty is about money—lack of it, inability to save it, and inability to borrow it and also about pride versus price. So, DCRAC built a bank, put it on wheels, and is building products and services that help them gain a foothold on the ladder of economic mobility with dignity. A critically needed product is a line of credit equal to one month’s expense. The product we are designing will require a loan loss reserve so we can extend credit to those who are having difficulty paying their bills on time and as a result incurring extensive late fees. But, it is not this product alone. It is coupled with the full force of all DCRAC services—legal, financial coaching, advocacy, and of course, banking to work on a longer-term goal of helping low-wealth households access wealth building opportunities. A loan loss reserve of $100,000 will provide us the cash flow to make small lines of credit to about 1,000 members. Our target community in Wilmington includes about 1,700 unbanked, 6,000 underbanked, 7,000 below poverty levels, and 9,000 without broadband access. Their cost burden of housing is about 50% of income and transportation another 50%. It doesn’t take a math whiz to see how hard it is to break out of the cycle of poverty. The need for a bank in the community is undisputed. A family spends nearly $3,000 a year just to pay bills and borrow money for cash flow. A household with an annual income of $24,000 can afford a mortgage of about $70,000 and a housing payment under $400. Chances are, they are paying twice that much in rent. They can afford an auto loan of about $8,000. The fact that auto loans of 72 months and higher make up one third of all new car loans is startling. Our auto loans of up to $15,000 cost $319 per month for 5 years. Additional benefit, our members borrow only the NADA value of the vehicle. We will help them turn a $3,000 saving into savings in a savings club account. When they set up direct deposit, they set 15% of their income to go into this account. We will help them automate bill payments so they avoid late fees. Connect a Line of Credit of $1,000 to the account to ensure bills are paid on time. Cost to draw on this line of credit – the minimum payment is 2% of the balance or $35 whichever is greater. At $35 each month they draw on it—even if they draw every single month, their cost of banking is $420 versus $3000. We plan to offer mortgages in 2022 to reduce the housing cost burden on families and help build wealth. Access to credit is an important means by which the poor can overcome poverty. But being “banked” is not just about getting a loan; it is also about having a secure place to invest, building a credit history, and being able to avoid expensive fringe financial services.


© 2020 JPMorgan Chase & Co.

We proudly support DCRAC and applaud its positive impact on our community.

At JPMorgan Chase, we are dedicated to helping minority– and community-based small-business owners become engines of job growth and economic vitality in the neighborhoods they serve. We’re collaborating across the private, public and nonprofit sectors to open doors to opportunity and ensure more people can chart their own path toward economic success.

BUILDING STRONGER COMMUNITIES


ABOUT US We submitted A Community Thrives Grant to the Gannet Foundation: National competition. For the grant to be reviewed, we need to raise $6,000. We sincerely hope we camn count on your support. DCRAC’s mission is to ensure equitable treatment and equal access to credit and capital. We work to transform financial lives and address barriers to the racial wealth divide that leaves an average American family of color with only 16 cents for every dollar owned by the average white family. DCRAC programs provide an integrated systems approach to building financial security--key to developing broad economic inclusion, mobility, and, ultimately, financial security. Programs or services offered by DCRAC that support the above mission statement • • • •

Money School helps individuals build wealth through information on savings, debt, credit, etc. Credit Union provides access to safe banking and borrowing, thereby improving future financial outcomes. DCRAC Law helps families build economic strength by resolving income & property tax debt & ownership issues. Consumer Finance Advocacy prevents the passing of bad laws, systemic injustice, and makes the financial system fairer.

DCRAC serves vulnerable individuals and families in Delaware; 80% have incomes below area median income, 60% are in New Castle, over 55, and minority. Between April 2020 and July 2020, DCRAC served over 1,500 Delawareans in a variety of ways. We unveiled a rebrand in July 2020, thanks mainly to a team of volunteers from Capital One who worked tirelessly for many months. Recognizing our resource limitations, they developed our brand standard guide and updated all collateral and digital assets. We re-launched the three-year capacity-building plan in August 2020, thanks mainly to a team of volunteers from Barclays who not only helped craft the language but created the visuals that better tell our story. In April 2020, when DCRAC heard about the Paycheck Protection Program, Stepping Stones CFCU kicked into high gear. Its CEO Blanche Jackson got the credit union into the PPP fold. Its chairman, Matt Parks of Discover Bank, worked to bring philanthropists — Jessie Ball DuPont Fund, Longwood and Welfare Foundations, Delaware Alliance for Nonprofit Advancement (DANA), and National Development Council to work together to bring 10 million dollars in lending to nonprofits in Delaware. Stepping Stones Community Federal Credit Union made 17 loans of 1,620,814.31 to Delaware’s nonprofits and small businesses. The smallest loan was for $4,792, and 9 loans were under $25,000. Senator Coons recognized our work on MSNBC and at a committee hearing. Our grant request is for Stepping Stones Community Federal Credit Union.


A riot is the language of the unheard… but also the unbanked and unserved. All of us at DCRAC are outraged at the murder of another Black person by police officers and the continued violent response by law enforcement against protesters. Protesters in need of legal consultation may call DCRAC Law at 302-690-5000. We stand firmly with the social justice activists. When you work in the Corporate Capital of America, attempting to dismantle systemic racism—as it exists in housing, banking, economic policy and countless other arenas—you realize a few things. The system deliberately creates racial wealth disparity. When DCRAC was founded in 1987, a Black person was seven and half times more likely than a White person to be denied a mortgage. That has a ripple effect. In 2015, the median net worth of homeowners was 80 times larger than the median net worth of renters. Black Lives Matter, and fair housing and lending matters. The good news? This system—in all of its power, strength and longevity—can be broken. Immediately, in Delaware, we need a Billion Dollar Trust Fund to benefit low-income Black and Brown families. If this seems too high, remember that lenders made over $10 billion from the first round of PPP loans. We must invest in the short- and long-term economic, physical, educational and emotional health—and wealth—of our neighbors and neighborhoods. We know what is broken and we must come together to fix it. Second, an annual percentage rate (APR) above 36% MUST be abolished. It is a crime against the poor. Third, we must require collecting ACCURATE data on race. When our Brown daughter gets a speeding ticket listing her race as White just to make the police department look good, we know we have a problem. There must be accountability and accuracy in our numbers. For now, finally, Delaware MUST seat an Equity Commission tasked with review of policies, procedures, and practices that predominantly affect low-income, marginalized, Black and Brown communities. The majority on the commission—well compensated at $55,000/year—City of Philadelphia’s February 2020 announcement on hiring a Racial Equity Manager lists the salary range as $50,000 to $60,000—must be those low-income individuals directly impacted by the unjust system. If the non-profit community can drive these ideas into existence with the help of the banking and credit industries, a legacy will ensue indelibly proclaiming that Black Lives Matter. Black lives have always mattered to DCRAC. In 2011, while the nation was still reeling from the 2008 financial crisis, we chartered Stepping Stones Community Federal Credit Union—a CDFI and certified minority owned and operated financial institution. It provides Wilmingtonians the service that the billion-dollar companies refuse. It recognizes geographic impediments, which is why we take our mobile bank to the communities. Our mission begins by embracing our humanity and seeing people beyond the credit scores. We bank the unbanked. According to the 2016 Prosperity Now report, The Ever-Growing Gap, it will take 228 years for the average Black family to reach the level of wealth White families own today. That is as unconscionable as it is unacceptable. And so we continue the fight for economic justice and march on ‘til victory is won.


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