Release: Accelerator/Mastercard Create 'Cash" Assistance Model for Cities
For Immediate Release
Yusef Robb, 323-384-1789
yusef@acceleratorforamerica.org
ACCELERATOR/MASTERCARD CREATE 'CASH' ASSISTANCE MODEL FOR CITIES
"Angeleno Campaign" Created in 8 days; Enables Direct and Immediate Assistance to Those Most In Need
***Interviews Available***
“Getting these dollars to families will help make sure that Angelenos overlooked by federal cash grants receive the assistance they need in this crisis,” said Los Angeles Mayor Eric Garcetti, Co-Founder of Accelerator for America. "Mastercard's City Possible network and Accelerator for America are incredible partners in this work, and I'm grateful for everything that's being done to lift up our communities in a moment of extraordinary need."
"We are making this model available to cities nationwide as a way to solve the problems of how to physically distribute financial assistance, serve the unbanked, and serve those ineligible for federal assistance," said Accelerator Co-Founder and CEO, Rick Jacobs. "Our mission has always been to identify and develop solutions that could be scaled and replicated by cities nationwide."
THE PROBLEM
With twenty percent of Angelenos living in poverty prior to the arrival of COVID-19, it was clear from the first day of the City's "Safer at Home" order that there would be widespread need for financial assistance.
It was also clear early-on that financial assistance from the federal government would take time and would exclude many Angelenos, whether based on how they earned their livings (as independent workers; in people's homes, etc.) or because of their immigration status.
Many Angelenos are also unbanked.
In addition, traditional assistance programs are typically administered by counties, states and the federal government — not cities. And those assistance programs rely on cumbersome, check-based systems that are difficult to adjust in a crisis.
THE SOLUTION
It was clear that the solution needed to be something that not only got direct cash assistance to Angeleno families quickly, but that also made it easy for the many Angelenos across the city who wanted to help out during this crisis to do so.
The Accelerator engaged with its longtime partner, Mastercard and its City Possible team, to create the replicable and scalable "Angeleno Campaign" — a campaign that aims to raise $15 million in direct financial assistance to Angelenos most in need.
Through the use of no-fee, prepaid debit cards enabled by City Possible, the Angeleno Campaign provides direct cash assistance to low-wage hourly workers who had jobs in homes and restaurants, seasonal workers, and other precarious workers such as day laborers, street vendors, or self-employed individuals who are experiencing financial hardship because of COVID-19. This economic hardship may be due to job loss, severe reduction of work hours, or furloughs.
The Angeleno Campaign was created and launched in just over a week, and it serves as a model that can be used by cities across the country to provide direct financial assistance quickly and effectively. The Accelerator is proactively sharing the model with municipal leaders and invites cities in need of assistance to contact allstaff@acceleratorforamerica.org.
KEY COMPONENTS:
501c3 as an accelerator — As a 501c3, The Mayor's Fund for Los Angeles is designed to get money in and out a lot easier — and quicker — than government can, while still being closely in sync with the official City response and guidelines. 501c3s are more agile than government bureaucracies, yet can still operate in line with key government priorities, maintaining the "unified response" model. 501c3 status is also an added attraction for donors of larger amounts.
Prepaid Debit Cards for quick and safe distribution — Providing funds via no-fee debit cards is more secure than cash. Checks require a visit to a bank to deposit and then a delay while the check clears. For the unbanked, checks are often cashed after payment of predatory fees. Debit cards can be used immediately and widely in stores or even online to pay necessary bills.
Network of trusted Community Centers — Applications for and distribution of debit cards are conducted through Community Centers in the Angeleno Campaign model. These centers are already up and running, partner with local nonprofits, and are trusted within communities. Decentralizing application and distribution (note that applications, qualifications, and regulations are universal) is faster and more convenient for residents.
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ACCELERATOR FOR AMERICA finds and develops solutions to economic insecurity and shares them with cities to create national change from the ground up. It was co-founded by Los Angeles Mayor Eric Garcetti and Rick Jacobs in 2017 around the idea that, while Washington is broken and has, in fact, been broken for some time, change is still needed and can be made at the local level. The Accelerator has since developed community wealth-building tools that are being used by more than 60 cities nationwide, and it has helped local communities generate $22 billion in funding for transit and transportation infrastructure through local ballot initiatives, with more than $150 billion targeted in 2020. www.acceleratorforamerica.org