Urban Economic Empowerment Program
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Go to Project: Urban Economic Empowerment Program.
The C D F teaches economically disadvantaged individuals about the proper utilization of the tool called credit in an effort to start businesses and buy homes.
About Your Organization
The Childrey Deliverance Foundation
United States, MI, Detroit, Wayne County
Country where this project is creating social impact
United States, MI, Detroit, Wayne County
Is your organization a
Non‐profit/NGO/citizen sector organization
How long has your organization been operating?
More than 5 years
Has the organization received awards or honors? Please tell us about them
None at this time.
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Select the stage that best applies to your solution
Growth (your pilot is up and running, and starting to expand)
How long have you been in operation?
Operating for more than 5 years
Which of the following best describes the barrier(s) your innovation addresses? Choose up to two
The Need: What problem are you trying to solve?
Poverty - Detroit has the highest unemployment rate per capita among the nation’s largest urban cities. Detroit’s median income is $26,157 well below the average of other cities its size. Detroit has a poverty rate of 26 percent, more than twice the state average. Detroit is loosing an estimated 13,000 residents per year and the estimated population for Detroit in 2003 was 911,000 residents. Detroit's population was less than 900,000 residents in 2005. The estimated population for Detroit in 2006 was 836,000 residents. One in every ten housing units in the city is vacant. The totality of these conditions has the regions economy at a stand still and there is a need to provide economic stabilization through out the entire region by enhancing entrepreneurship and home ownership opportunities.
The Solution: What is your solution? Be specific!
Reviving an entrepreneurial spirit is one of the keys to rejuvenating the cities work force, providing a stable income to its residents, spurring economic growth, population growth, eliminating crime and poverty in urban cities. When people are generating a decent income to spend they will spend it. Detroit has an abundance of abandoned dilapidated storefronts and commercial buildings. All of these unused assets could be put to use to generate cash flow and the jobs needed to cut the cities unemployment rate and bring the city out of a deficit situation.
Instead of reducing the number of houses in Detroit, programs to increase affordable housing need to be created to stimulate population growth. The installation of affordable housing programs would increase the city's tax base and alleviate the City of Detroit’s budget crises. The more individuals the city has working and living within its borders, the more house holds the city has to collect an affordable portion of taxes from.
The Model: Walk us through a specific example of how your solution makes a difference; include your primary activities
The Childrey Deliverance Foundation 501c3 Tax Exempt Education Corporation formed eight years ago in memory of (Johnny C. Childrey), my Grandfather, to provide financial literacy and credit repair services to youth deemed at-risk, low-income adults and emerging entrepreneurs. Our mission is to mentor/counsel economically disadvantaged individuals in urban communities on the importance of personal economics (credit). We provide effective advocacy and compile/disseminate information useful to empowerment and self-sufficiency. Once a client has completed our vigorous rigors they will be able to build an excellent credit score and become eligible to receive a Business Loan or Mortgage to start a business or purchase a home of their own.
The (C D F) will be implementing its credit counseling services to the fullest extent. Credit is a tool to be used properly. The key goal is not to destroy your credit from the beginning of starting your credit history. If a client happens to have been irresponsible with their credit, The (C D F) can help its clients reestablish their credit history through our Urban Economic Empowerment Program to initiate debt reduction and savings development plans to achieve the major life-enhancing goals of Business and Home Ownership.
The assignment is to jumpstart the economy of urban cities by creating
At the (C D F), we’ve learned that it’s only by Reinvesting into Ravished Communities and providing answers to failed socio-economic conditions in urban communities can we change communities in economic turmoil.
The Marketplace: Who are your peers and competitors? Identify others also working to address the needs you are and what differentiates you from them. What challenges could these players pose to your success or growth?
U-Snap-Bac is a non-profit organization on the East Side of Detroit. They have been working on housing on the east side for many years.
The Warren Connor Housing Association is also working on housing on the east side.
The Grandmont Rosedale Development Corp. is located on the west side of Detroit and they are working housing issues.
Our mission is to mentor/counsel economically disadvantaged individuals in urban communities on the importance of personal economics (credit) to enable them to become self-sufficient.
There are little to no challenges from competition because Detroit is a large urban city with a need for as many variations of solutions to solve its problems of blight, decay, erosion, housing dilapidation, lack of viable business, and extreme poverty.
This Entry is about (Issues)
Founding Story: We want to hear about your "Aha!" moment. Share the story of where and when the founder(s) saw this solution's potential to change the world.
August 16th 2001, before the 911 attack, I purchased and rehabilitated a dilapidated foreclosure home on the East of Detroit. I used my veteran’s benefits to purchase the property and my Grandmother helped me come up with money to rehab it.
Immediately after I purchased the home the taxes went up because of the 1994 property tax legislation Proposal A. It state's that a property purchased after 1994 would receive "incremental" tax increases every year. Next, the insurance on the house began to rise substantially. Finally, I learned that the house I purchased had a demolition lean placed on it. The paper work lagged in the recording office and the title company missed clearing the lean off my title.
After going through these painful experiences I decided to build a 501c3 Education Non-Profit Organization to help economically challenged, poverty stricken people learn how to navigate through the mirage of obstacles in an effort to become economically thriving successful individuals.
Please describe the goal of your initiative; outline what you are trying to achieve
Our goal is to rehabilitate credit abusers and inform future credit users about the proper utilizations of the tool called Credit in order to start businesses and acquire and rehabilitate low cost housing. Our goal is to help our clients achieve credit scores of 700-750 and using the knowledge gained through our courses to maintain their credit scores throughout the entirety of their lives. Clients who meet this level of achievement will receive for their diligence the lowest interest rates on credit cards, personal loans, business loans and home loans. Lower interest rates will give them an advantage of keeping their payments reasonable in the hardest economic times and provide security to their families for the long haul. Our goal is enhancing Business and Home Ownership Opportunities.
Which barrier(s) to financial inclusion does your solution seek to address? (select all applicable)
The lack of affordable financial products tailored to the needs of underserved and excluded communities,, Powerful incentives for financial service providers to move up-market.
If you selected 'other' above, please specify which other barriers to financial inclusion you solution seeks to address:
For which underserved or excluded communities will your solution create access to valuable, affordable, secure and comprehensive financial services?
Detroit is a large impoverished urban area that is experiencing adverse economic challenges due to substandard education, loss of tax revenue due to extremely erratic high taxation, insurance redlining, sub-prime mortgages and foreclosures. The housing market as it stands in the Detroit is abysmal. It is also experiencing enormous economic hardships due to the downsizing of its major economic source, the Auto Industry, specifically the big three auto companies, Ford, General Motors and Chrysler Corp. The traditional way of handling economic business in this region will not work in this economy.
Economically disadvantaged individuals of all races will be served by our programs. The (C D F) will be setting up a minimum of 400 block clubs, representative of nearly 20,000 households blanketing the city of Detroit, giving them an empowering education of financial literacy, job skills and entrepreneurial training and housing seminars to coordinate our Urban Economic Empowerment Mission.
Could your solution work in other geographies or regions? If so, where?
The Urban Economic Empowerment Program will run for three years and at the end of this time we will perform a performance audit to make sure our target goals are being met towards the transference of this program in Cleveland, Ohio.
Once our program is established and functional and Cleveland we will strive towards building this program in Akron Ohio, Atlanta, Georgia and Washington D. C. Once Established in Washington D. C., the (C D F) will be striving to increase the Urban Economic Empowerment Program in Urban Cities throughout the United States of America and continuance of this program indefinitely.
Once the Urban Economic Empowerment Program has been thoroughly established U.S.A we will begin establishing Economic Empowerment Programs in poor regions of Africa and other parts of the world because Credit rules the Economic Systems of the Entire World. Without the Credit System countries could not trade between one another and the worlds economies would be at a standstill.
If your solution is dramatically successful, how will things be different in 10 years?
The Revival of an entrepreneurial spirit is the key to rejuvenating its work force, providing a stable income to residents, spurring economic growth in Detroit and other urban cities. Within the next Ten Years a progressive plan will have been installed to utilize all available abandoned dilapidated storefronts and blighted commercial buildings in Metropolitan Detroit. The region will have increased the number of employers compared to the population base decreasing unemployment and crime. The formation of new business will generate cash flow and the jobs needed bring the city out of a deficit situation and increase Economic Stimulus Funding from the Federal Government.
Within the next Ten Years large areas of Detroit will be remodel and economically astute, dedicated homeowners will be influxed into these remodeled neighborhoods. Each individual will be responsible for his or her property alleviating vandalism, blight that has devastated and taken over the entire urban city today.
What will have had to have changed to make this happen?
The (C D F) will raise $500,000.00 to support and build a Mega Economic Opportunity Center. This Center will be located in Detroit Michigan, USA and will help economically disadvantaged individuals.
The (C D F) will use the tax deductible Gifts/Donations to:
•Find and Rehabilitate a Commercial Building. This will include all measures need to bring the building up to city and state code.
•Complete two computer centers with 30 computers in each room. Including hardware and all furnishings.
•Complete conference & class rooms including all furnishing and technical support need to instruct clients.
Within this renovated building, we will teach the Urban Economic Empowerment Program, which is geared towards low-income individuals. They will learn how to establish goals, objectives, and how to order, analyze, evaluate, and fix their credit scores. They will receive assistance to help them gain the confidence needed to achieve their goals and change their economic circumstances.
What has been the impact of your solution to date?
The (C D F) has been assisting clients on a pro-bono basis with the assistance of our generous board of directors. Through its credit counseling program they have helped clients learn how to establish goals, objectives, and how to order, analyze, evaluate, and fix their credit scores. Clients received assistance to help them gain the confidence needed to achieve their goals. These goals included learning how to implement Debt Reduction and Saving Development Plans to rehabilitate their credit scores to establish and maintain credit. These savings are used towards Home Ownership and Business Ownership. Also the C D F has counseled more than 50 youths in our community about the importance of graduating from high school and continuing their education through collegiate efforts. We have successfully graduated half of the participants in our program. Finally through our job placement program we have helped clients receive interviews and several of these individuals received employment.
What is your projected impact over the next five years?
Within the next five years the (C D F) will implement the Urban Economic Empowerment Programs entrepreneurial development programs increasing business ownership, employment and decreasing poverty. The restoration of storefronts and commercial buildings will create vibrant business districts increasing employment taxes and funding from the Federal Government.
Within the next five years the (C D F) will implement the Urban Economic Empowerment Programs affordable housing programs alleviating Detroit’s budget crises. The more individuals the city has working and living within its borders, the more house holds the city has to collect taxes from to pay for schools and infrastructure. The increase in population would decrease property taxes and increase funding from the Federal Government.
What barriers might hinder the success of your project? How do you plan to overcome them?
The lack of Government, Corporate and Foundation support and funding for
the Urban Economic Empowerment Program to purchase adequate office space, utilities, furniture, computers, phones, internet, hire counseling staff and build client base.
The (C D F) will be continuously vying for support of the Urban Economic Empowerment program because the cause is great. It’s time to empower people, by moving them from check cashing customers to banking customers, from renters to homeowners, from small business dreamers to small business owners. Converting the economically undereducated to the economically empowered, helping people help themselves, and creating more stakeholders in Urban Cities, America and the World.
Winning entries present a strong plan for how they will achieve and track growth. Identify your six-month milestone for growing your impact
Funding the Plan
Identify three major tasks you will have to complete to reach your six-month milestone
The C D F has a strong business plan to show investors the logistics of the Urban Economic Empowerment Program.
The C D F will convince financiers that the Urban Economic Empowerment Program is a worthy cause to support and invest in.
The C D F receives $100,000 in funding from G2012 Mexico Financial Inclusion: Innovative Solutions for Unlocking Access contest.
Now think bigger! Identify your 12-month impact milestone
Implementing the Plan
Identify three major tasks you will have to complete to reach your 12-month milestone
The C D F locates and acquires adequate office space to run Urban Economic Empowerment Program.
The C D F enlists the help of volunteers to pass out fliers to potential clients, informing them about our services.
The C D F trains and hires credit counselors as needed to assist Board Members with teaching Credit Counseling Seminars.
Tell us about your partnerships
The (C D F) is partnering with local Churches and we are at the beginning of a partnership with a networking organization called Network After Work-Networking Events for Professionals. Our organization will set up a booth at their events to enlighten patrons of these events about our organization.
Additionally, we are partnering with more than 20,000 Potential Households that are also pooling their money through homeowner associations to help clean up their community and advance their local economy through the purchase and acquisition of empty abandoned foreclosed properties.
Are you currently targeting other specific populations, locations, or markets for your innovation? If so, where and why?
The (C D F) is targeting Cleveland Ohio and Akron Ohio as locations to implement the Urban Economic Empowerment Program.
We have plans to bring low income individuals out of poverty.
In an effort to rebuild Urban Communities we are helping individuals below the poverty line improve their socio-economic status by offering them intense study courses on Financial Literacy, Credit Repair, Business and Home Ownership Seminars.
The creation of new entrepreneurs creates new businesses and employment.
The rehabilitation of homes creates homeowners, vibrant neighborhoods and employment.
What type of operating environment and internal organizational factors make your innovation successful?
The (C D F) will be working out of a Mega Economic Opportunity Center where we will teach the Urban Economic Empowerment Program.
As an incentive for clients to succeed we provide quarterly 1:1 assistance.
At their first session they will receive a copy’s of their most recent Credit Reports. The clients credit reports will be reviewed by a (CDF) Program staff member and a summary will be drafted based upon what is found. At the initial 1:1 counseling session they will receive information on how to draft dispute letters for all items on their credit reports that are in error. They will also find out how much total debt remains that need to be taken care of and a plan will be developed that outlines the steps that need to be taken in the next three months to bring them out of debt.
Please elaborate on any needs or offers you have mentioned above and/or suggest categories of support that aren't specified within the list
The (C D F) will be networking and collaborating with all NGO's, Foundations, Corporations, businesses, and individuals that are working towards the upliftment of economically disadvantaged individuals.
We will lend our time to brainstorming and formulating plans to help economically disadvantaged individuals become economically independent and self-sufficient.