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Philanthropy Brief: Alleviating Poverty in New York City

This brief was developed by Geneva Global in partnership with The Philanthropy Centre at J.P. Morgan.

COVER PHOTO: As of 2016, nearly 20% of New Yorkers live below the city’s poverty line.TOP PHOTO: As reported by the Office of the Mayor, one out of every three children living in a single-parent household experiences poverty.

Poverty in New York City

Private philanthropy has long played a critical role in alleviating and preventing poverty in New York City. In fact, the city is home to the oldest charity in the United States, established in 1770 to help impoverished colonists.1 Today, philanthropy can do even more to help address the causes and the effects of poverty in New York City.

DEFINING POVERTY: INCOME AND DEPRIVATION

There is no single definition of poverty. In the United States, poverty most often refers to an income threshold: People who earn less than a certain amount live “below the poverty line.” The federal poverty line for a family of four is $24,600, while New York City defines its own poverty line at $32,402 for a family of four.2 In 2016, city calculations showed that 19.5% of New Yorkers live in poverty.3 However, many individuals whose incomes are above the poverty line also regularly struggle to make ends meet. For example, a study from the United Way estimates that an income of $70,000 is necessary to adequately support a family of four in the South Bronx.4

STRUGGLING BETWEEN THE LINES

1 Philanthropy New York. History of U.S. Philanthropy. September 2008. Available at: https://philanthropynewyork.org/sites/default/files/resources/History%20of%20Philanthropy.pdf

2 The Mayor’s Office for Economic Opportunity. New York City Government Poverty Measure 2005–2016. April 2018. Available at: https://www1.nyc.gov/assets/opportunity/pdf/18_poverty_measure_report.pdf

3 The Mayor’s Office for Economic Opportunity. 2018 Poverty Report Brochure. October 2018. Available at: https://www1.nyc.gov/assets/opportunity/pdf/NYCPov-Brochure-2018-Digital.pdf

4 Women’s Center for Education and Career Advancement. The New York City Self-Sufficiency Projects. August 2018. Available at: https://wceca.org/self-sufficiency-projects 2

$24,600Poverty line for family of four

in United States

$32,402Poverty line for family of four

in New York City19.5%

of New Yorkers lived below New

York City’s poverty line in 2016

An estimated income of

$70,000is necessary to adequately

support a family of four in the South Bronx

SOUTHBRONX

Sources: Mayor’s Office for Economic Opportunity; Women’s Center for Education & Career Advancement.

WHAT DOES POVERTY LOOK LIKE?

A complex set of interconnected issues drives poverty in New York City. While some are universal, others relate to the city’s urban environment. According to the Mayor’s Office for Economic Opportunity, housing and medical costs, access to affordable childcare, commuting and unanticipated expenses have an outsized impact on whether people experience poverty.5

But what, exactly, does living in poverty mean? For many families, it means regularly going without food, clothing, housing, running water and electricity. This is known as “hardship,” and it can go well beyond a lack of material resources. People living in poverty may also go without adequate education, employment experience and community networks.6 At its core, hardship refers to an unmet basic need that results in a lack of well-being.

Hardship can continue even when a family’s income exceeds the poverty line. A recent study showed that 36% of New Yorkers experience hardship during any given year, and more than half reported experiencing hardship in at least one of the three years covered by the study.7 In New York City, hardship also marks the lives of the “working poor,” individuals who are employed but struggle to cover the costs associated with living in the city. One in five working New Yorkers falls in this category, earning less than $20,000 per year.8

Though New Yorkers of all ages and ethnicities are affected, children, single-parent families, non-citizens, and African American, Asian American and Latino populations are more likely to experience poverty and live in impoverished neighborhoods.9 Children in single-parent families are particularly vulnerable: One-third of these children experience poverty.10

5 The Mayor’s Office for Economic Opportunity. 2018 Poverty Report Brochure. October 2018. Available at: https://www1.nyc.gov/assets/opportunity/pdf/NYCPov-Brochure-2018-Digital.pdf 6 Columbia University Mailman School of Public Health’s National Center for Children in Poverty. 10 Important Questions about Child Poverty & Family Economic Hardship. December 2009. Available at: http://www.nccp.org/publications/pdf/text_829.pdf 7 Columbia Population Research Center and Robin Hood. The Persistence of Disadvantage in New York City: A Three-Year Perspective from the Poverty Tracker. Fall 2016. Available at: https://static1.squarespace.com/static/5743308460b5e922a25a6dc7/t/589e2a6acd0f682228acb175/1486760557373/RobinHood_PovertyTracker_Fall16.pdf 8 Robin Hood. Homepage statistics. September 2018. Available at: https://www.robinhood.org/ 9 The Mayor’s Office for Economic Opportunity. New York City Government Poverty Measure 2005–2016. April 2018. Available at: https://www1.nyc.gov/assets/opportunity/pdf/18_poverty_measure_report.pdf 10 The Mayor’s Office for Economic Opportunity. New York City Government Poverty Measure 2005–2016. April 2018. Available at: https://www1.nyc.gov/assets/opportunity/pdf/18_poverty_measure_report.pdf 3

INTERSECTIONS OF RACE AND POVERTY

Explore New York City poverty rates for select population groups and different demographic characteristics using the Poverty in NYC Data Tool from the Mayor’s Office for Economic Opportunity.

The New York Times reports that African American boys have less upward mobility and a higher risk of downward mobility in the article titled “Extensive Data Shows Punishing Reach of Racism for Black Boys.”

UNDERSTANDING THE POVERTY LANDSCAPE

A 2016 report from New York University’s Furman Center outlines the state of poverty in New York City, with an emphasis on challenges that people living in poverty face in securing safe and affordable housing.

New York City Mayor Bill de Blasio has a citywide goal of lifting 800,000 individuals out of poverty or near poverty by 2025. To that end, the Mayor’s Office for Economic Opportunity studies more than 35 discrete poverty-fighting programs and undertakes a number of in-depth data collection and reporting initiatives to track progress.11

The city has been steadily advancing toward its goal: Since 2014, the poverty rate has decreased year-over-year, and there were 141,000 fewer New Yorkers living in or near poverty in 2016 than there were three years earlier.12

DIFFERENCES IN POVERTY RATES IN NEW YORK CITY, BY RACE AND ETHNICITY

11 The Mayor’s Office for Economic Opportunity. New York City Government Poverty Measure 2005–2016. April 2018. Available at: https://www1.nyc.gov/assets/opportunity/pdf/18_poverty_measure_report.pdf

12 The Observer. “New York City Poverty Rate Hits Lowest Level Since Great Recession.” April 13, 2018. Available at: http://observer.com/2018/04/new-york-city-poverty-rate/

Source: The Mayor’s Office for Economic Opportunity. New York City Government Poverty Measure 2005–2016. April 2018. Available at: https://www1.nyc.gov/assets/opportunity/pdf/18_poverty_measure_report.pdf

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24.8%24.9%24.6%24.6%

23.9%

28.0%25.8%26.6%

23.4%24.1%

2012

2013

2014

2015

2016

2012

2103

2014

2015

2016

21.7%21.1%21.3%21.2%

19.2%

13.6%14.3%

13.7%13.3%13.4%

2012

2013

2014

2015

2016

2012

2013

2014

2015

2016

NON-HISPANIC ASIAN

NON-HISPANIC BLACK

NON-HISPANIC WHITE

HISPANIC, ANY RACE

While 13% of white New Yorkers live in poverty, the poverty rate among African Americans and Latinos is markedly higher.

THE CITY’S GOALS AND PROGRESS IN ALLEVIATING POVERTY

Opportunities for Impact

Hardship mitigation, economic empowerment and advocacy for better policies are three areas where philanthropy can help to alleviate poverty and decrease its prevalence in New York City. Because the drivers of poverty are linked, solutions must be holistic and well coordinated. As such, many poverty-fighting organizations run initiatives in more than one area.

HARDSHIP MITIGATION: ADDRESSING BASIC STABILITY

For those unable to afford clothing, food, shelter, utilities and transportation, the daily struggle to make ends meet becomes overwhelming. If a family is spending most of its time determining how to get food on the table, it will likely lack the energy to tackle longer-term issues, such as establishing a savings account, furthering children’s education or utilizing workforce readiness and placement programs. In addition, poverty may exacerbate mental illness, and mental illness may lead to poverty. Interventions aimed at providing individuals and families with essential goods and services to address their immediate needs can begin to break the cycle of poverty.

At its simplest, hardship mitigation can take the form of local nonprofits providing individuals and families with nights of shelter, free medical care, meals and articles of clothing. Because poverty is a multi-pronged problem, organizations are increasingly linking resources, such as food pantries, with access to counselors who can provide information on available government benefits programs. Supporting a “single stop,” “whole person” or “whole family” approach can address multiple needs at once.

Housing plays a critical role in providing stability to families. Lack of housing affects a family’s ability to obtain basic necessities and can lead to frequent school moves, high rates of absenteeism and low test scores among children.13 A strong body of evidence links inadequate housing and homelessness to child abuse and neglect.14 As public subsidies for housing decline, there is a critical need to prioritize new strategies to help make permanent and sustainable housing more widely available.

For philanthropists, gifts toward hardship mitigation can help meet immediate needs or solve a problem for the longer term. For example, a short-term giving strategy may focus on providing warm coats to people living in poverty at the start of the winter season. Longer-term giving strategies can support more complex or experimental programs, such as projects to leverage technology to identify available public benefits or to monitor health conditions.

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EMPLOYED, BUT EXPERIENCING HARDSHIP

The PBS film Waging a Living follows the lives of four working Americans over three years and chronicles their attempts to lift their families out of poverty.

“Income, Hardship & Health in NYC” is the title of a 2014 report from the Columbia Population Research Center and the poverty-fighting organization Robin Hood that discusses results of an initiative to monitor poverty and well-being.

13 Urban Institute. Reduce Poverty by Improving Housing Stability. June 2016. Available at: https://www.urban.org/urban-wire/reduce-poverty-improving-housing-stability14 Urban Institute. Helping Families Involved in the Child Welfare System Achieve Housing Stability. February 2015.

Available at: https://www.urban.org/research/publication/helping-families-involved-child-welfare-system-achieve-housing-stability 15 Poverty Tracker. Why don’t low-income New Yorkers seek help? Winter 2016. Available at: http://povertytracker.robinhood.org/#home

REACHING OUT FOR HELP

Even when families experience severe hardship, they do not always access support. Reasons identified by low-income families include a lack of knowledge about the help that is available, the stress of living with scarcity, and barriers such as stigma and loss of pride.15 It is critical to support effective organizations to heighten their visibility, intensify outreach efforts and streamline access to services in order to ensure that families utilize existing resources.

ECONOMIC EMPOWERMENT: ADVANCING FINANCIAL SECURITY

Philanthropy also plays an important role in economic empowerment programs. These programs include a full spectrum of interventions that tackle issues standing between an individual and his or her ability to secure a job with the promise of financial security. Economic empowerment interventions are aimed at New Yorkers at every stage of life—from early childhood interventions that identify and treat developmental disabilities to workforce-readiness programs.

Philanthropists addressing intergenerational poverty may wish to focus on children. By graduating from high school and avoiding risky behaviors, such as substance abuse, children can reach levels of financial security their parents may never have enjoyed. On the flip side, young people who are neither in school nor working suffer from higher rates of mental illness, contact with the criminal justice system and homelessness.16 Philanthropists with a concern for at-risk youth can support interventions that help students complete their education, obtain employment and gain life skills.

For adults, economic empowerment programs help secure the prerequisites they need for employment, such as work permits for non-citizens, and degrees or technical certificates for those seeking skilled jobs. They also provide financial counseling to give individuals the skills they need to plan their financial futures. Digital tools for enhancing financial literacy, included under the growing umbrella of “fintech,” also show promise in providing an effective education on personal financial management.17

Philanthropists with a passion for entrepreneurship may also contribute to a microenterprise incubator (or microfinance institution) targeting entrepreneurs living in poverty, or those developing poverty-fighting businesses and social enterprises. These programs are often paired with extensive coaching for long-term success.

ADVOCACY: CHANGING THE LANDSCAPE

While many anti-poverty efforts aim at specific components of the problem, advocacy is a systems-level approach to address the negative social, political and economic dynamics that perpetuate poverty. Data belies the assumption that hard work alone can overcome poverty. Nowhere in the United States can an individual working a 40-hour week and earning the federal minimum wage—or even the state minimum wage—afford a two-bedroom rental home.19 It is important to recognize the strength, perseverance and ingenuity of people who are living in poverty.

Efforts can take a grassroots and activist approach by raising awareness, ensuring those affected have a voice in policy development, and encouraging people to take action. Advocates can also take an academic approach by producing white papers and spearheading research to better understand the drivers of poverty and the efficacy of existing alleviation efforts. Program evaluation and data collection can be particularly

16 Robin Hood. Annual Report 2017. September 2018. Available at: https://www.robinhood.org/annual-report-2017/17 New Political Economy. The Digital Revolution in Financial Inclusion: International Development in the Fintech Era. November 2016.

Available at: https://www.tandfonline.com/doi/abs/10.1080/13563467.2017.1259298?journalCode=cnpe2018 U.S. Partnership on Mobility from Poverty. Restoring the American Dream. January 2018. Available at: https://www.mobilitypartnership.org/restoring-american-dream 19 National Low Income Housing Coalition. Out of Reach: The High Cost of Housing. 2018. Available at: https://nlihc.org/sites/default/files/oor/OOR_2018.pdf 6

POVERTY AND BRAIN DEVELOPMENT IN CHILDREN

Research shows that poverty can affect a child’s ability to set goals, prioritize and control impulses. Approaches that connect pregnant women and parents with healthcare providers, mental health clinicians and other specialists have proved to be effective.18 Philanthropists interested in working with children may consider this type of holistic support.

valuable, as this type of research informs the future direction of programming. Further, philanthropists can multiply their impact by lending their personal or corporate voices to poverty alleviation campaigns.

The New York City government’s work on alleviating poverty—and the fact that individuals living in poverty engage with government programs and are affected by government policies—makes it a powerful player in shaping the landscape of poverty in New York City. For this reason, nearly all advocacy activities in the city are at least partially concerned with influencing the city’s government.

Philanthropists with a passion for a particular poverty-related issue may choose to invest in a long-term advocacy campaign around that topic. Advocacy initiatives may push for programs and policies that benefit all people living in poverty, or they may focus on reducing the discrimination faced by specific demographic groups. Some philanthropists and activists, for example, may choose to focus on advancing fair labor practices or advocating for policies such as paid sick leave. This sort of advocacy benefits all New Yorkers. In contrast, an advocacy initiative concerned with the impact of structural racism on African American children may center its work on fighting school segregation.

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ADVOCACY SUCCESSES

Recently, advocacy efforts led to New York City’s adoption of a new transit subsidy to provide deeply discounted fares for riders living on low incomes. While the new program was adopted in 2018, advocacy efforts kicked off in 2015 after a charitable organization published a donor-funded study revealing that one in five New Yorkers struggles to afford MetroCard fares, and 58% of very low-income New Yorkers rely on buses and trains. New York Amsterdam News, a local paper, discussed the advocacy campaign in the article “What’s the Deal with the Fair Fares Program?”

Follow up by reading “Half-Price Fares for Low-Income New Yorkers” by the Community Service Society, which produced the study that launched the campaign. Then, explore other examples of advocacy impact on the Society’s website.“ From Pre-K for All to paid family and sick

leave to the most ambitious affordable housing plan in the city’s history, we are working to provide opportunities that will make a lasting difference in the lives of New Yorkers.”

— Mayor Bill de Blasio, on the release of the 2018 New York City Government Poverty Measure

Resources for Learning More

To learn more about poverty in New York City and the many ways to have an impact, explore the work of local innovators, leading funders and expert researchers.

INSIGHTS FROM ROBIN HOOD

Robin Hood is New York City’s largest poverty-fighting organization. It provides financial support, technical assistance and capacity-building resources to more than 200 New York City nonprofits. Together with its community partners, Robin Hood seeks to address the root causes of poverty. Robin Hood also supports a number of poverty research initiatives and publishes regular reports on the state of poverty in New York City, including the well-known Poverty Tracker, a multi-year study that provides a dynamic view of poverty over time.

The following organizations are featured by Robin Hood as innovators in anti-poverty efforts:

ASSOCIATION TO BENEFIT CHILDREN a-b-c.org

One of Robin Hood’s oldest community partners, Association to Benefit Children (ABC), supports underserved children and families in New York City’s most vulnerable communities. ABC provides preschool programs, housing and medical services, and crisis intervention to 3,000 families with children in East Harlem, most of whom suffer from mental and physical disabilities.

IMMIGRANT JUSTICE CORPSjusticecorps.org

Immigrant Justice Corps (IJC) is the first fellowship program in the United States dedicated to providing immigrants with high-quality legal services. Founded in 2014 with seed money from Robin Hood, IJC trains talented young graduates for work at nonprofit law firms and community-based organizations, increasing the capacity of immigration cases these firms and organizations can handle annually. In 2018, IJC’s fellows served at 40 nonprofit organizations across New York, New Jersey, Connecticut, Texas, Florida and Maryland.

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BROOKLYN WORKFORCE INNOVATIONSbwiny.org

Brooklyn Workforce Innovations (BWI) is a best-in-class Robin Hood community partner that provides low-income New Yorkers with workforce training targeting promising sectors of the local economy, such as commercial truck driving, low-voltage cabling, and woodworking and cabinetmaking. BWI is committed to training people for jobs that exist and lead to living-wage employment. It also provides on-site support services such as financial coaching, benefits access and other supports that help trainees become employed and stay employed for the long term.

FEATURED POVERTY FUNDERS

The poverty alleviation landscape in New York City is marked by the active engagement of all sectors: corporate, private and public. The following philanthropic organizations have a specific mission to fight poverty, and each represents a unique approach.

BLOOMBERG PHILANTHROPIESbloomberg.org

Bloomberg Philanthropies encompass the giving of former New York City Mayor Michael Bloomberg. The Philanthropies leverage data, partnerships and advocacy to advance progress in the arts, education, the environment, government innovation and public health. The Philanthropies recently launched the Financial Empowerment Center to deliver free, one-on-one financial counseling to people living in New York City.

BLUE MERIDIAN PARTNERS | EDNA MCCONNELL CLARK FOUNDATION bluemeridian.org | emcf.org

Based in New York City, the Edna McConnell Clark Foundation makes large, long-term investments in anti-poverty efforts targeting children and youth. In 2015, the Foundation launched Blue Meridian Partners, a donor collective comprising prominent foundations with a similar mission to improve the lives of children and youth living in poverty across the United States. Using a “big bet” approach, partners provide unrestricted funding up to $200 million to support the scale-up of evidence-based strategies over a 10+ year timeframe.

NEW YORK COMMUNITY TRUSTnycommunitytrust.org

The New York Community Trust is a community foundation serving New York City, Long Island and Westchester. The Trust’s grantmaking is diverse, supporting capacity-building efforts, advocacy and issue-focused programming, and outcome evaluations. The Trust engages in formal and informal partnerships with the New York City government, and in some cases, supports new initiatives that the government then brings to scale.

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NEW YORK FOUNDATIONnyf.org

Established in 1909, the New York Foundation has a long history of supporting grassroots advocacy and community organizing to tackle social issues. The Foundation primarily provides core funding and capacity building to organizations—including startups—that help New Yorkers become educated, active participants in their communities. Issues have included housing, public health, workers’ rights, legal aid and others.

TIGER FOUNDATIONtigerfoundation.org

Founded by hedge fund manager Julian Robertson, Jr., the Tiger Foundation’s grantmaking targets root causes of poverty through four portfolios: education, employment, youth and families, and criminal justice. With a focus on the five boroughs of New York City, the Foundation boasts robust trustee involvement in the grantmaking process and in supporting grantees.

FEATURED POVERTY RESEARCHERS

New York City is home to many organizations, from academic institutions to government agencies, that conduct research and provide analysis on poverty. Philanthropists can find in-depth information on specific issues, such as homelessness, and approaches, including public-private partnerships and advocacy.

CENTER ON POVERTY AND SOCIAL POLICY AT COLUMBIA UNIVERSITYpovertycenter.columbia.edu

The Center on Poverty and Social Policy (CPSP) at the Columbia School of Social Work in New York City produces research to advance the understanding of poverty and the role of social policy in promoting opportunity and well-being. CPSP frequently partners with the New York City government and Robin Hood to produce reports that analyze poverty data and trends.

INSTITUTE FOR CHILDREN, POVERTY & HOMELESSNESSicphusa.org

The Institute for Children, Poverty & Homelessness is a policy research organization focused on family homelessness. The Institute publishes a journal on these and related issues, and also distributes children’s books as a way to communicate family homelessness and poverty to younger audiences. Its data collection and visualization work are robust, as is its research on the links between homelessness, segregation, poverty and education.

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THE MAYOR’S OFFICE FOR ECONOMIC OPPORTUNITY (NYC OPPORTUNITY) nyc.gov/site/opportunity/poverty-in-nyc/

Part of the Mayor’s Office, NYC Opportunity is tasked with supporting the de Blasio administration’s priorities in equity and poverty alleviation. Its work includes analyzing existing anti-poverty approaches, developing new interventions and assessing the impact of key city initiatives. It also produces research and analysis on poverty and social dynamics, including an annual Poverty Measure report that provides the most accurate and comprehensive statistical picture of poverty in New York City.

SummaryUnderstanding the unique set of challenges faced by low-income New Yorkers is a first step toward making a meaningful difference. Philanthropists can advance progress in the form of a one-time gift to ensure the delivery of critical services or may make a longer-term commitment to help tackle the root causes of poverty. As anti-poverty initiatives continue to evolve, there are opportunities to support proven interventions and explore new approaches.

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Interested in a global perspective?While this brief focuses on New York City, our Philanthropy Field Guide: Global Poverty Alleviation offers additional insight on anti-poverty efforts around the world.

For briefs on other issues, visit jpmorgan.com/philanthropyfieldguides.

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