Leveraging Education, Quality Work Opportunities, and Financial Health to Increase Income for Workers of Color

Higher education is often viewed as a stepping stone for economic mobility and building long-term wealth. However, research shows that the high costs of student loans are more severe for borrowers of color. According to data from the Financial Health Pulse® Chicago 2022 Report, Black and Latinx households in Cook County reported having student loan debt at much higher rates than white households – 42 percent and 34 percent, respectively, compared to 22%.  

Even holding down a steady job doesn’t guarantee economic mobility for workers of color. COVID-19 revealed the health and economic vulnerability that Black and Latinx workers overrepresented in frontline jobs face. These jobs are less likely to provide workers with adequate pay, benefits, or protections, making it harder for them to gain financial stability.  

“Traditional paths to income growth don’t always lead to wealth-building for Black and Latinx Chicagoans,” said Trust Program Manager Caleb Herod. “Pathways like education are supposed to lead to a good paying job but are often predatory due to the burden of loans. And when people of color do get a job or a career, they are still walled off from the benefits that build wealth rapidly.”  

To address this issue, the Trust launched the Income Growth Solutions grant program this past spring to fund nonprofit organizations that are strengthening how education, quality work opportunities, and financial health can lead to wealth. In August, the Trust awarded more than $2.7 million in grant dollars to 17 organizations leading projects and programs aligned with the following priorities: (1) supporting student postsecondary and credential completion with limited debt burden; (2) increasing quality employment opportunities that provide for worker power, advancement, and retention; and (3) implementing programs that address financial challenges facing households by growing financial security and health. Thanks to a small group of donors, the Trust was able to expand the cohort of grant recipients.  

Bottom Line, Association House of Chicago, and North Lawndale Employment Network are three organizations emblematic of this grant making.  

Bottom Line 

Bottom Line partners with first-generation college students from low-income backgrounds for up to seven years to guide them through their journey – from the selection process to their time in college to graduation. It has served more than 3,000 students in Chicago since 2014. 

According to Executive Director Will Hobart, higher education institutions are not equipped to handle the needs of first-generation students. That’s where Bottom Line, which also offers programs in Boston, New York City, and Ohio, steps in with its knowledgeable, highly trained advisors who build relationships with students to help them find solutions to challenges like getting bad grades or financial obstacles. These advisors also work with students to strengthen their confidence and sense of belonging.  

“We build a community around students that enables them to be their authentic selves, which is critical to their success,” he said.  

Grant support from the Trust will bolster operations for two Bottom Line programs: the College Access program for high school seniors to help them find affordable higher education options that fit their education goals and the College Success Program for college students. Hobart also notes this funding will allow the organization to innovate on how it delivers services for future students, working with current students and alumni to inform these improvements.  

Association House of Chicago 

Established in 1899, Association House of Chicago helps individuals and families in the greater Humboldt Park area by providing comprehensive wraparound services in both English and Spanish. The organization’s programs are designed to meet the needs of residents at various stages in life, including workforce development services for individuals often up against employment barriers.  

Programs like Financial Careers Training prepare participants for careers in banking, while Kitchen Training prepares justice-involved participants for careers in restaurants and hospitality. Association House also works to ensure participants learn critical soft skills necessary to thrive in the workplace.  To mitigate many of the obstacles that hinder individuals from fully participating in the workforce, Association House offers additional wraparound services to address their needs – whether needing substance abuse counseling, getting assistance from a food pantry, or accessing public benefits.   

The grant from the Trust will help with costs like staffing needs to ensure the program is operating efficiently. According to Lillian Bui, senior director of development and external affairs, the funding also allows Association House to focus on doing what it does best: serving the community.  

“Through supportive funders like the Trust, the quality and reach of our workforce training programs are significantly enhanced so that individuals receive the tools necessary for success,” she said.  

North Lawndale Employment Network 

For nearly 25 years, North Lawndale Employment Network (NLEN) has been providing job training and readiness programs to address North Lawndale’s high rates of underemployment and unemployment – the latter of which is currently 18 percent. With the neighborhood also notable for a high rate of individuals returning after incarceration, the organization’s programs have been critical to helping them reenter society.  

As part of how NLEN delivers job readiness training, the organization offers the Financial Opportunity Center (FOC) to help clients gain financial literacy skills. The FOC team employs certified financial wellness coaches who work one-on-one with individuals to establish financial goals and implement financial plans. They also work closely with client solution specialists to coordinate wraparound services to assist clients with personal needs and decrease obstacles that could hold them back from program participation.  

“Participation in job readiness and skills training is exceedingly challenging when basic needs, such as adequate housing, food, or transportation, are unfulfilled,” said Taneka Pernell, director of FOC. “It is imperative that we meet our participants where they are.”  

Funding from the Trust will enable FOC’s program team to continue providing clients with individualized, strengths-based, trauma-informed coaching and interventions. Additionally, with a North Star goal of decreasing North Lawndale’s employment rate by 10 percent, the organization sees this funding opportunity as helping it get closer to achieving this goal.

Repairing Years of Economic Wrongs

When thinking about desired outcomes for this grant making, Herod hopes the grant recipients’ collective impact will demonstrate how income growth solutions can not only provide meaningful wealth-building opportunities for workers of color but also play a role in closing the racial and ethnic wealth gap. Most importantly, he hopes this work will positively impact the lives of residents.

“I want people to see themselves in our work and know the Trust is trying to repair the years of economic wrongs they’ve faced,” he said.

Complete List of Income Growth Solutions Grant Recipients

Education

• Lift, Inc. ($200,000)
• Loyola University of Chicago ($200,000)
• Bottom Line ($200,000)
• Thrive Scholars ($200,000)
• Network for Young Adult Success ($100,000)

Employment

• i.c. stars ($125,000)
• Revolution Workshop ($200,000)
• Cara Collective ($200,000)
• Association House of Chicago ($100,000)
• Greater West Town Community Development Project ($200,000)
• Hire360 ($100,000)
• Jane Addams Resource Corporation ($150,000)
• Revolution Institute ($195,742)
• Bridges from School to Work ($100,000)
• Skills for Chicagoland’s Future ($100,000)

Financial Health

• North Lawndale Employment Network ($165,530)
• Brighton Park Neighborhood Council ($175,000)