Asset-Based Social Policies / Politiques sociales fondées sur les actifs

To alleviate persistent financial hardship in a segment of the population, traditional government social policies focus on universal or targeted income measures, either direct or through the tax system. A new way of thinking that's gained many converts in the United States and the United Kingdom is an asset-based approach to social policy, where the government encourages low-income individuals and families to save money for their future, or they receive some matching government contributions towards specific types of expenditures, like acquiring a post-secondary education or purchasing a home.

"The Government has received numerous representations from individuals, researchers and businesses that Canada’s tax system should be more conducive to saving. The Government intends to carefully review these representations and to conduct analysis in order to identify possible approaches for future improvements. In particular, the Government will examine whether tax pre-paid savings plans could be a useful and appropriate mechanism to improve the tax treatment of savings and to provide additional savings opportunities for Canadians."
Source:

(Ch. 5 of )
NOTE: In the fall of 2003, a number of individuals and organizations made presentations and submitted proposals to Finance Canada concerning asset-building social policy options.

Here are just some of the areas where asset-based policies are already in place in Canada:
- Tax-free Savings Accounts
- Registered Disability Savings Plans
- retirement (Registered Retirement Savings Plans)
- post-secondary education (Canada Education Savings Grant Program)
- home ownership (various federal and provincial home ownership assistance programs)
- microcredit enterprises (low-or-no interest loans for business startup for people on low income)
- banking services for low-income people
- special treatment of certain types of assets under provincial-territorial welfare programs.

April 10, 2006
The Daily Bread Food Bank announced today a newpartnership designed to help break the poverty cycle through an accessible education savings program. Recognizing the importance of saving for post-secondary education in reducing the barriers to higher education and encouraging self-sustainability, Daily Bread and Canadian Scholarship Trust Foundation (C.S.T.) have partnered to help low-income families take advantage of the Canada Learning Bond (CLB) program by setting up a Registered Education Savings Plan (RESP).
Source:

How can asset-based policies help people and families on welfare when, as social advocacy groups continue to insist (and I agree), welfare incomes are abysmally low?
How low? see (PDF file - 1.4MB, 116 pages - August 2006) by the

"Matched savings and lifetime savings accounts, Individual Development Accounts and tax advantaged approaches to savings (Registered Development Savings Plans) are all elements of asset development and retention that low income people can use. Income maintenance programs, e.g., welfare, can work hand in glove with asset initiatives to reduce inequality of resources and to improve the lives and security of low income Canadians."
John Stapleton, St. Christopher House (December 9, 2003)

(PDF file - 204K, 30 pages)
Project Report
June 24, 2004
"Income Security Strategies for Working-Age Adults (...) explores options for developing practical, responsive and modern strategies for income security for working-age people in Ontario and Canada."
- incl. analysis of the treatment of assets under provincial-territorial welfare programs and, among the the proposed strategies for working-age adults, suggests that assets should be protected and allowed to grow beyond current levels within welfare programs.
Source:

[ ]

Also from St. Christopher House:

(PDF file - 107K, 5 pages)
January 2004
"The purpose of this commentary is to build support for assets based approaches to poverty reduction such as those proposed by Social Enterprise Development Innovations (SEDI) in the context of Learn$ave and St. Christopher House in its Registered Development Savings Plan (RDSP) proposals. It was prepared by John Stapleton, Community Undertaking Social Policy (CUSP) Fellow at St. Christopher House and Massey College.

Welfare Asset Tests

Asset-based policies aren't the magic bullet solution to reduce poverty and welfare dependency and to support efforts towards self-sufficiency in Canada, but they do offer governments a new set of tools to help people on welfare to improve their financial well-being. Welfare programs in a number of Canadian jurisdictions already include special (albeit modest) asset-based features, such as specific exemptions (in the determination of eligibility for welfare) for money set aside in a trust fund for a child's education or pre-paid funeral expenses, and special treatment of assets related to a business.

In order for asset-based social policies to work in Canada's welfare system, provincial-territorial welfare programs would have to modernize (i.e., enhance) their asset exemption policies. The National Council of Welfare's report shows (under "Eligibility") that in the determination of eligibility for welfare, asset exemption levels varied in 2002 from $0 (for young single employable applicants) to $5000 (for people with disabilities). In a number of provinces and territories, asset exemption levels are $1500 for a single person and $2500 for a family - levels that were set in 1975 (and some even before then) for cost-sharing of provincial-territorial welfare costs by the Canada Assistance Plan . If provinces and territories would simply adjust those amounts for inflation from 1975 to 2004, welfare asset exemption levels would be just under $5,500 for a single person and $9,100 for a family. (Converted using the )

Ontario:

Metcalf Innovation Fellow John Stapleton launched a new report on October 21, 2009
News Release
October 21, 2009
Overly strict welfare eligibility rules are forcing Ontario’s newly unemployed to divest themselves of all their assets, crippling their chances for an economic recovery. Why Don’t We Want the Poor to Own Anything?, by John Stapleton, Metcalf Foundation Fellow and a leading social policy expert, reveals weaknesses in Ontario’s asset limits for those seeking social assistance, disability support, subsidized housing and legal aid.
Source:

Complete report:
(PDF - 983K, 30 pages)
By John Stapleton
(...) 475,000 families receive social assistance in Ontario. They have stripped themselves of their liquid assets. They must wait until they no longer require legal aid, and leave public housing, before they can resume saving for anything, let alone save for retirement. In a society that promotes saving and cherishes self-reliance, there is no good rationale for public policy that almost guarantees people will grow old in poverty.

Related links:

- John Stapleton's website

October 21 2009
It is well known that when the Conservatives came to power in 1995 Mike Harris gutted welfare rates – leaving needy Ontarians living far below the poverty line. Less well known is that changes were also made to force Ontarians to divest themselves of almost every cent of savings, including cashable RRSPs, before they could qualify for a welfare cheque. In a report to be released Oct. 21, Metcalf Foundation fellow John Stapleton presents a compelling case for allowing welfare recipients to keep some savings. (...) Asset-stripping is just one of the failings of our outdated and mean-spirited social assistance system. The government's promised social assistance review – still waiting to be launched – will find many other hurdles in the path of those in need of a helping hand.
Source:

- Go to the Ontario Municipal and Non-Governmental Sites (D-W) page:
http://www.canadiansocialresearch.net/onbkmrk3.htm

Recent examples of progressive welfare policy from Ontario, BC and Alberta:

October 7, 2004
"The Ontario government is scrapping a welfare rule requiring applicants to liquidate their education savings plans, Social Services Minister Sandra Pupatello says. 'It's a dumb rule that works at cross-purposes to what welfare is suppose to be doing for people and their families ... that rule is going to be eliminated,' Pupatello told the Toronto Star yesterday, adding the change should happen before the end of the year."
Source:

Related links:

[ ]

Press Release
April 28, 2008
TORONTO – Canada’s inequality in wealth and income is growing, and at a more rapid pace than before, says a new study released by the Canadian Centre for Policy Alternatives (CCPA). The study, by economist Lars Osberg, looks at 25 years of income and wealth inequality in Canada and finds disturbing new trends.

Complete report:

(PDF - 995K, 46 pages)
By Lars Osberg
April 2008

Source:

[ ]

Related link:

By Michael Valpy
April 26, 2008
The final 2006 census data will portray the richest 5 per cent of Canadians as dramatically accumulating more wealth, the incomes of most residents showing perhaps the greatest stagnancy in the developed world and the nation's poorest falling further and further behind. Immigrants and Canada's native-born youngest male adults will be identified as the prime victims of a 25-year trend in widening income inequality – an inequality some economists believe reflects systemic long-term changes to the labour market rather than transitional bumps in demographics and swings in the business cycle. The data to be released Thursday by Statistics Canada will show median incomes falling for immigrants and native-born 18-to-34-year-old males who compete directly for the same entry level jobs that are increasingly characterized as low-pay, unstable and short term.
Source:

December 2002
by Steve Kerstetter (CCPA-BC)
"Canadians may view their country as a land of opportunity, but it is also a land of deep and abiding inequality in its distribution of personal wealth. This is the key conclusion of Rags and Riches: Wealth Inequality in Canada, a new CCPA study by social policy analyst Steve Kerstetter, a former Director of the National Council on Welfare.The study features data never before published about the very richest and very poorest Canadians. It draws on special data runs commissioned from StatsCan by the CCPA to provide extensive new analysis on the distribution and characteristics of wealth dating back to 1970 for each of five regions of the country."
Complete report:
- PDF File, 362 Kb
* - PDF File, 138 Kb
* - PDF File, 298 Kb
* - PDF File, 149 Kb
* - PDF File, 166 Kb
* - PDF File, 74 Kb
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* - PDF File, 83 Kb
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Source:

- links to 6 studies (as at 03/10) concerning assets and debts of Canada's families
Source:

[ ]

(SEDI)
" ... a national charitable organization dedicated to enabling poor, unemployed and under-employed people to become self-sufficient"
NOTE: SEDI is the Canadian pioneer in asset-building approaches --- they introduced the concept of asset-building for the poor to Canada in 1997.

Selected site content:

(PDF - 5.8MB, 91 pages)
June 2009
This report was made possible through a from the that recognized SEDI’s Independent Living Account (ILA) for its innovative approach in assisting residents of Toronto’s shelter system to save, build life skills and subsequently move onto independent living. This report quantifies the benefit of the ILA model through a return on investment calculation and highlights how an investment of $1 into this program can result in a $2.19 return to society at large within the first year following program graduation. Feedback from current ILA partners was also gathered in an attempt to reflect the strengths and weaknesses of the model and to evaluate the potential of bringing these benefits to scale. This study also explores the potential of expanding the ILA program to a wider audience of people vulnerable to homelessness including newcomers to Canada, urban Aboriginal Peoples, youth, children/youth living in care, people with mental health and/or addiction issues and people who have come into conflict with the law. This report provides evidence to suggest that there is a significant group of homeless individuals that can achieve a positive housing outcome in an effective and efficient manner and through a somewhat limited intervention.

Related links:
*
* - July 2006 (PDF - 667K, 84 pages)
The ILA demonstration was to measure the impacts of providing persons living within transitional housing facilities with a mix of financial and training incentives as a means of facilitating their entry into the mainstream housing and rental markets.
* - February 2003 (PDF - 168K, 8 pages)
*
[ ]

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(PDF - 646K, 58 pages)
Spring 2008
This report emphasizes the need for suitable policy responses and intervention models to improve the financial literacy and financial inclusion for Canadians who are homeless and insecurely housed. It also identifies the necessity for investment in staff training and organizational capacity building among transitional shelters and rent banks to offer intensive and ongoing financial learning opportunities for their clients. Outcomes of the study identify that residents of transitional housing and users of rent banks do not enjoy a full degree of financial inclusion in mainstream banking services. However, they express a strong demand for financial education and for opportunities to practice new financial skills with real money, real financial goals and real financial rewards when they succeed. In addition, housing service providers recognized the importance of financial literacy and financial inclusion among the essential life skills their clients express a need for.
Related link:
*

Source:
SEDI is a national nonprofit organization that uses innovative approaches to help low-income Canadians reach self-sufficiency. For over 20 years, SEDI has worked with more than 800 nonprofit and government agencies across Canada to deliver its programs. SEDI's expertise allows it to influence public policy, opening the way for Canadians to enter the social and economic mainstream. The organization's initiatives focus on three areas: financial literacy, asset-building and entrepreneurship.

More selected content from the SEDI website - this link takes you further down on the page you're now reading

(PDF - 604K, 8 pages)
April 2008
"(...)Assets do matter as an important, but so far largely undervalued, factor in well-being. Assets are more than stored-up income, they are stored-up hope, agency and aspiration. To the degree that welfare policy is ultimately concerned with well-being - and we believe it is - far greater attention should be paid to assets." (Excerpt, p.7)
- includes detailed info on what constitutes assets in the Canadian welfare system as well as asset exemption levels in all Canadian jurisdictions and a number of options for provincial/territorial governments wishing to promote greater asset development within their welfare program.

Source:

[
SEDI is are a national charitable organization dedicated to enabling poor and unemployed Canadians become self-sufficient. We take a variety of leading-edge social and economic approaches to this goal in areas such as policy development, program management, capacity building, public education, and research.]

(Powerpoint presentation - 498K, 18 pages)
How SEDI plans to offer low-income Canadians new ways of finding economic independence by helping them save and build assets.

"SEDI has partnered with the , a leading expert in the field of social research and evaluation, to design and implement learn$ave. This multi-year (planned to 2009) demonstration of Individual Development Accounts for learning is funded by Human Resources Development Canada. The largest demonstration of its kind in the world, learn$ave will reach 4,875 low-income Canadians who volunteer to take part in one of 10 designated locations (cities/counties)across Canada."

"(...) Existing government home buyer and tax credit programs are out of reach for low-income earners, and in major cities like Toronto where home prices are so high, there isn’t nearly enough affordable housing to meet the demand. SEDI is piloting a project called that will give low-income Canadians a place to turn. By putting money aside in an Individual Development Account (IDA), participants can build their personal savings and earn a credit for a matching amount. The savings don’t have to be big, as long as they are consistent. Bit by bit, enough money is collected to put a downpayment on a home. SEDI is currently working in partnership with community groups, financial partners and government agencies to get this project started."
- April 2002 (small PDF file)

News Release
March 26, 2009
A new report released today by the Social Research and Demonstration Corporation (SRDC) offers some new results on the effects of the learn$ave project. SRDC is conducting this national demonstration project to test the effectiveness of individual development accounts (IDAs) as a tool to promote adult learning and small-business start-up for low-income Canadians.

(PDF - 1.3MB, 88 pages)

- A national demonstration of matched savings accounts for poor families to encourage learning activities and micro-enterprise development

[ ]

News Release
January 25, 2008
A new report released by SRDC presents the 18-month results of the Individual Development Accounts project learn$ave. The program has so far yielded positive effects on saving and budgeting, as well as participants’ attitudes towards education.

Learning to Save, Saving to Learn: Early Impacts of the learn$ave Individual Development Accounts Project, a new report released by SRDC, presents the 18-month results of learn$ave, a project designed to demonstrate how Individual Development Accounts can encourage low-income adults to save in order to increase their human capital by participating in education or training, or starting a small business.

(PDF file - 525K, 115 pages)
January 2008
(PDF file - 1.9MB, 12 pages)

The learn$ave project was conceived and implemented in 2000 by , and is being funded by . The evaluation of learn$ave is being conducted by SRDC.

RRSP/RESPs - to buy or not to buy?

By Ellen Roseman of :

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March 27, 2004
Ellen Roseman
"Registered education savings plans will become more popular as a result of new budget measures announced this week. Ottawa plans to help low-income families save for children's college or university by giving grants of up to $2,000. And the existing RESP top-ups will be enhanced. But some low-income parents face barriers that prevent them from saving..."

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March 3, 2004

"(...) In a column on Feb. 18 [see below], I talked about how some people — specifically, low-income retirees with RRSP savings of $100,000 or less and no employer pension plan — might be better off taking money out of the plan before age 65. This would be a way to protect income-tested benefits, such as the guaranteed income supplement, from being taxed back because of RRSP withdrawals after they retire. In response to the many questions I received, I'm devoting today's column to a more detailed explanation of how the tax and benefits system works."
.....
"Households whose retirement savings are less than $100,000 (excluding CPP and QPP entitlements) are likely to be GIS recipients. And much, if not all, of the proceeds of their savings will be lost to taxes and the clawback of income-tested benefits."
.....
- includes info about:
--- the effect of RRSPs on entitlement to the Guaranteed income supplement (GIS) under the federal Old Age Security program
--- how retirement income is treated under the personal income tax system
--- why "the GIS nullifies the advantages of RRSPs" for people with lower incomes
--- solution: tax-prepaid savings plans
--- where to obtain more info
Source:

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February 18, 2004
Ellen Roseman
"If you believe the ads, every Canadian who is eligible to contribute to an RRSP should do so ASAP. It's your patriotic duty to put the maximum allowed into your registered retirement savings plan each year. Don't fall for the propaganda.
Not everyone should contribute every year. Paying off high-interest debt might be a higher priority. Moreover, many lower-income Canadians who do make RRSP contributions should consider cashing out before they turn 65. By leaving their money in the plan, they could be subject to government clawbacks of social benefits such as the guaranteed income supplement or GIS, prescription drug subsidies, meals on wheels and home care."

Registered Disability Savings Plans (RDSPs)

The Registered Disability Savings Plan is a savings plan designed specifically for people with disabilities in Canada. The first of its kind in the world, this new tax-deferred savings vehicle will assist families in planning for the long - term financial security of their relatives with disabilities.
- incl. links to * What is it? * How do I qualify * Where do I get it?
[ - "...everything you wanted to know about the RDSP" ]
Source:

Planned Lifetime Advocacy Network (PLAN) is a non-profit organization, established in 1989 by and for families committed to future planning and securing a good life for their relative with a disability.

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(PDF - 360K, 6 pages)
November 2009
In the determination of financial eligibility for needs-tested welfare or disability benefits, each province and territory decides how it will treat assets and income from various sources, both at the point of application and on an ongoing basis. This page provides a current overview of the treatment of the RDSP in all Canadian provinces and territories, and it includes links to the relevant source material in each jurisdiction.

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July 6, 2009
Human Resources and Skills Development Canada has launched a new advertising campaign about the Registered Disability Savings Plan (RDSP), Canada Disability Savings Grant and Canada Disability Savings Bond, which help Canadians with disabilities and their families save for the future. The campaign consists of two short radio spots (click the above link to access the transcripts and the MP3 audio files) and a one-page poster (see below) referring people to the Disability Savings website.

The Poster:
Helping people with disabilities save for the future

(651K, 1 page)
Complete text:
"The Government of Canada has now made available the Registered Disability Savings Plan (RDSP) to help people with disabilities, under 60 years of age, who are eligible for the Disability Tax Credit. A matching Canada Disability Savings Grant of up to $3,500 per year will be paid on eligible contributions made to an RDSP. The Government of Canada will also contribute a Canada Disability Savings Bond of up to $1,000 per year to the RDSPs of eligible low-and modest-income Canadians, even if no contribution is made.
For more information on eligibility:
Go to Disability Savings:

Or call 1 800 O-Canada ()
TTY users may call ."

Source:
(HRSDC)

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December 23, 2008
At an event celebrating the national availability of Registered Disability Savings Plans (RDSPs), the Honourable Jim Flaherty, Minister of Finance, and the Honourable Diane Finley, Minister of Human Resources and Skills Development, today announced that the deadline for opening an RDSP, making contributions and applying for the matching Grant and the income-tested Bond for the 2008 contribution year has been extended to March 2, 2009 from December 31, 2008. The 2009 RDSP contribution year will begin March 3, 2009.
Source:

Related links:

Only one bank to offer registered disability savings plans within contribution deadline
December 20, 2008
For people with severe, long-term disabilities, there are only a few more banking days left in 2008 to take advantage of up to $4,500 in first-year grants and bonds under the federal government's new registered disability savings plan.Only one chartered bank – the Bank of Montreal – has announced it will open qualified RDSP accounts. But that starts on Monday, barely in time for people to meet the Dec. 31 contribution deadline.
Source:

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- from
- incl. links to info about the Canada Disability Savings Grant, the Canada Disability Savings Bond and the RDSP
- also includes a link to Budget 2007 (Oct. 30/07) when the RDSP was first announced, and more...

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From Human Resources and Skills Development Canada's page:

Updated to September 2009
In the determination of financial eligibility for needs-tested welfare or disability benefits, each province and territory decides how it will treat assets and income from various sources, both at the point of application and on an ongoing basis. This page provides a current overview of the treatment of the RDSP in all Canadian provinces and territories, and it includes links to the relevant source material in each jurisdiction.

**************************************

November 30, 2008
News Release
Ontario is making it possible for social assistance recipients to take advantage of Registered Disability Savings Plans (RDSPs). Like the Registered Education Savings Plan, RDSPs allow family members and loved ones to save money tax free until withdrawal. The program helps people plan for the future needs of children and adults with disabilities. Changes to Ontario’s social assistance rules will make sure that both RDSP assets and withdrawals are fully exempt.
This means:
* RDSP contributions do not impact eligibility for social assistance
* People on social assistance can take money out of an RDSP without affecting their social assistance payments. To further help social assistance recipients with disabilities save for their future, Ontario is also increasing the amount they can receive as a gift or payment from a trust from $5,000 to $6,000 a year.
Source:

Context:
In the determination of financial eligibility for needs-tested welfare or disability benefits, each province and territory decides how it will treat assets and income from various sources, both at the point of application and on an ongoing basis. The next link below opens a PDF file that provides a current (Dec. '08) overview of the treatment of the RDSP in all Canadian provinces and territories, and it includes links to the relevant source material in each jurisdiction

(PDF - 360K, 6 pages)
November 2009

Source:

The Registered Disability Savings Plan is a savings plan designed specifically for people with disabilities in Canada. The first of its kind in the world, this new tax-deferred savings vehicle will assist families in planning for the long - term financial security of their relatives with disabilities.
- incl. links to : What is it? - How do I qualify? - Where do I get it?

"...everything you wanted to know about the RDSP"

Related links:

is the non-profit organization that proposed, researched, and campaigned for the RDSP.
PLAN created and maintains the RDSP website and the RDSP Blog.

- from
- incl. links to info about the Canada Disability Savings Grant, the Canada Disability Savings Bond and the RDSP
- also includes a link to (Oct. 30/07) when the RDSP was first announced, and more...

From the RDSP Blog:

August 14, 2008
By Doug Brodhead
Not including BC, Newfoundland and Yukon (who have all already exempted the RDSP), many provinces/territories are in the midst of deciding how the RDSP will affect someone who is receiving Disability Benefits. We decided to put together a Top 10 list of why we think it is important these provinces/territories exempt the RDSP as an asset and income.
** Recommended reading for all provincial-territorial government welfare / Disability Benefits administrators!

Context:
In the determination of financial eligibility for needs-tested welfare or disability benefits,
each province and territory decides how it will treat income from various sources, both at the point of application and on an ongoing basis.

Related link:

The Working Income Tax Benefit (WITB) and Registered Disability Savings Plan (RDSP):
With the Legislation unveiled, it is time to be heard
By John Stapleton
October 6, 2007
"(...) The Budget bills are important and they deserve discussion and comment. A very small window has been created to allow Canadians to respond. Download the Budget documents and the explanations. Read them carefully and make a submission by October 23, 2007. It is a unique opportunity for your voice to be heard by Members of Parliament, their staff and by the Public Service. "

(PDF file - 150K, 1 page)
by Susan Pigott and John Stapleton

November 6, 2003

.......................................................................
Click on the link above to read the text of the oral presentation to the Committee; click on the link below to read the detailed paper that was submitted by St. Chris House for consideration by the Committee.
.......................................................................

(PDF file - 319K, 26 pages)
- Pre-Budget Submission to the House of Commons Committee on Finance

(PDF file - 75K, 3 pages)

- abstract of a presentation by John Stapleton, Rick Eagan and Maureen Fair of St. Christopher House at the in June 2003.

(small PDF file)
Toronto Star op-ed
June 20, 2003
"The U.S. and Britain have launched innovative social policies to help those in need.
Canada can learn from them."
Source:

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(PDF file - 131K, 2 pages)
Ontario non-governmental organization proposing a new tax-sheltered savings plan for low income households
Dec. 3, 2003
Carol Goar
Toronto Star
The proposal, called Registered Development Savings Plan, "...would give poor people a chance to put money into a tax-sheltered account, without losing their eligibility for welfare or incurring financial penalties if they withdrew funds for education, training, medical expenses, starting a business or moving into a new home. It would give families trying to move from welfare to self-sufficiency an economic cushion. Research in the United States has shown that households with savings stand a much better chance of breaking the dependency cycle than those without. Most fundamentally, it would give low-income Canadians the same incentive to invest in their own future as other Canadians."

(PDF - 211K, 34 pages)
By Michael Mendelson
May 2007
This paper was prepared for an Organization of Economic Cooperation and Development (OECD) conference on asset-based strategies and has also been published by the OECD. The paper reviews the current status of asset-based programs, defined as programs intended to assist low-income households to increase their financial assets. Among OECD countries, only Canada, the UK and the US are identified as having such programs. Two programs in Canada, one of which is a randomized control experiment (RCT) with Individual Development Accounts (IDAs), and the other an education savings plan, are reviewed. (...) The paper concludes that an asset-based perspective is an important way to view social programs, but no panacea. Asset-based programs need to be carefully designed and evaluated, as any other type of social program. [ Excerpt from the report's abstract]

(PDF - 49K, 7 pages)
Sherri Torjman
September 2008
This essay discusses the various dimensions of the social economy - a unique and burgeoning sector of the economy in which business enterprises and economic activity seek not only to generate revenue but also to advance social goals. There are hundreds of thousands of hybrid businesses, also known as social enterprises, which are taking their place on the world stage - and increasingly in stock market portfolios. They try both to generate profit and create social value. They are sometimes referred to as ‘blended value’ organizations because that is precisely what they do. This paper explores their many different forms and puts forward policy proposals to bolster social enterprises within the Canadian economy.

The Key to Tackling Child Poverty:
Income Supports to Meet Their Needs and Assets to Support Their Future
Caledon Commentary
By Jennifer Robson-Haddow
March 2004
"This paper discusses child poverty in Canada in terms of access to savings and assets, as well as income and public services. Middle- and upper-income families have incentives to set aside funds for their child’s future while low-income families are penalized for doing so through welfare needs tests. What’s needed now is a targeted, well-conceived plan for delivering meaningful asset-building opportunities to low-income parents. This paper outlines some of the key features of such a plan, noting progress made in the 2004 federal Budget."
(PDF file - 43K, 5 pages)
Related Link:

Andrew Jackson
March 2004
"Asset-building programs invite low-income citizens to participate in forced savings plans by matching their contributions with funds from financial institutions. These programs have enjoyed wide popularity in Canada, the US and the UK over the past few years. Senior economist with the Canadian Labour Congress, Andrew Jackson, questions the significance and long-term benefit of these programs and their possible influence on the development of social policy in Canada."
(PDF file - 42K, 5 pages)

December 2003
Sherri Torjman
"...argues the need for exploring possible methods of expanding the ‘fiscal pie.’ It explores one possible model put forward by PLAN (Planned Lifetime Advocacy Network), a group of parents of children with severe disabilities. The group proposes a combination of private savings and public spending to help develop caring communities. (...) The proposal represents one idea in a range of possible savings and investment mechanisms to expand the fiscal pie – a direction which we should be debating seriously as a nation."
(PDF file - 19K, 3 pages)

New Tax-Free Savings Accounts Can Help Break Down
Barriers to Saving for Lower-Income Canadians: C.D. Howe Institute
Toronto, Sept. 30, 2008
Lower-income Canadians are entangled in government programs that discourage personal saving, says a study released by the C.D. Howe Institute, and the federal government’s new Tax-Free Savings Accounts (TFSAs) could help correct the problem. In “No Strings Attached: How The Tax-Free Savings Account Can Help Lower-Income Canadians Get Ahead,” authors John Stapleton and Richard Shillington explain how.

(PDF - 176K, 5 pages)
September 30, 2008
By John Stapleton and Richard Shillington
Lower-income Canadians are entangled in government programs with clawback provisions that discourage or effectively prohibit personal saving. The federal government’s new Tax-Free Savings Accounts (TFSAs) can help correct the problem, provided that provinces and territories refrain from imposing new asset tests and clawbacks that undo savers’ potential gains. Governments should also consider supplementing the savings of poor Canadians, whereby TFSA savings are matched by special funds from government.

(PDF file - 175K, 47 pages)
February 2001
Jonathan Kesselman
Finn Poschmann
Source:

(PDF file - 83K, 15 pages)
November 2004
Backgrounder
"Finn Poschmann, the Institute’s associate director of research, and William B. P. Robson, senior vice-president and director of research call for a federal tax-prepaid savings plan to help modest-income Canadians reaching for financial independence."
Source:

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- Alberta
News Release
February 17, 2004
"Babies born in Alberta in 2005 or later will benefit from a $500 investment by the Alberta government into individual education savings plans. The Alberta Centennial Education Savings Plan Act, which is the first bill introduced in the spring sitting, sets the stage for a new program that will encourage parents to open a Registered Education Savings Plan (RESP) for their child with a $500 grant from the government."

(Toronto)
"Social Capital Partners will invest in revenue generating social enterprises that employ populations outside the economic mainstream in Canada. The goal of these social enterprises will be to acquire scale, to eventually exist without external funding, and to create improved social outcomes and financial self-sufficiency for the populations they employ. SCP will be a catalyst for encouraging other creative approaches in the sector aimed at improving social outcomes through the use of innovative funding mechanisms."
- incl. links to : Who We Are - Financing Available - Our Portfolio Organizations - How We Work With Social Entrepreneurs - Measuring Success - Media Box - What We've Learned - Relevant Resources - Acknowledgements - Contact Us

"The Canadian Co-operative Association (CCA) is a national umbrella organization representing co-operatives and credit unions. We are a not-for-profit co-operative owned by our members. (...) Our mission is to promote the growth and development of the co-operative sector for the economic and social betterment of communities and people in Canada and internationally."

[U.S.]
- incl. links to: * About AFI * Prospective Grantees * Current Grantees * Guidance, Policies, and Procedures * Publications and Reports * Contact AFI * Frequently Asked Questions

The Assets for Independence (AFI) is a Federal program that provides grants to enable community-based nonprofits and State, local, and Tribal government agencies to implement and demonstrate an asset-based approach for offering low-income families help out of poverty. (...) Asset building is an anti-poverty strategy that helps low-income people move toward greater self-sufficiency by accumulating savings and purchasing long-term assets. The theory behind this approach is that helping people purchase an asset, as opposed to simply increasing their income, provides stability that may allow them to escape the cycle of poverty permanently. Examples of long-term assets include a home, higher education and training, and a business.

Individuals interested in building assets through participation in an AFI program can browse the Project Locator to find opportunities in their communities.

PDF (897K, 90 pages)
File dated June 2009
The Eighth Annual Report to Congress provides an update on the status of the Assets for Independence (AFI) program through the end of Fiscal Year (FY) 2007. The program was established by the Assets for Independence Act in Title IV of the Community Opportunities, Accountability, and Training and Educational Services Act of 1998.
(...)
The FSA program allows participants to use FSA savings to purchase the three AFI allowable assets: homeownership, postsecondary education or training, and business capitalization. Authorized uses of funds also include home repair and car purchase, computer purchase, or day care (if the car, computer or day care is related to employment or education). Federal AFI funds may be used to match savings for any of these asset purchases.
Source:

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[ ]

Do Assets Help Families Cope with Adverse Events?
By Signe-Mary McKernan et al
December 01, 2009
(HTML)
(PDF - 197K, 12 pages)
Family events, such as a job loss, the onset of health limitations, and a change in family structure, can adversely affect family well-being. The impact of these events may be mitigated if the family holds assets that can be used to maintain consumption. Using the SIPP, this study examines the role of assets in families' economic stability. We find that families in all parts of the income distribution experience material hardship after a negative event. Further, in the aftermath of a negative event, asset-poor families experience more hardship than non-asset-poor families, with assets helping most for low- and middle-income families.
Source:

In the mid-1960s, President Johnson saw the need for independent nonpartisan analysis of the problems facing America's cities and their residents. The President created a blue-ribbon commission of civic leaders who recommended chartering a center to do that work. In 1968, the Urban Institute became that center. Today, we analyze policies, evaluate programs, and inform community development to improve social, civic, and economic well-being.

(PDF - 161K, 14 pages)
By Gerard Brody and Elizabeth McNess
03 January 2010
The authors of this report argue that Australia’s current asset-building policies largely support those who are already well off. Tax concessions on housing and superannuation in particular enable wealthier households to further accumulate assets while doing little for poorer families. Significant reform of the tax and transfer system is required so that policies to encourage asset building will benefit those who need support the most.

Source:
- "Working for an Australia Without Poverty"
Established during the Great Depression, the Brotherhood of St Laurence was the vision and creation of Fr Gerard Tucker, a man who combined his Christian faith with a fierce determination to end social injustice. The Brotherhood has developed into an independent organisation with strong Anglican and community links. Today, we continue to fight for an Australia free of poverty.

- incl. links to the following titles (as at April/09):
* Rental Assistance Asset Accounts (January 2009)
* Access to Financial Services, Savings, and Assets Among the Poor - (November 2008)
* Portraits of the Assets and Liabilities of Low-Income Families - (May 2008)
* Return on Investment: Getting more from Federal Asset-Building Policies (2008)
* Improving Opportunities and Incentives for Saving by Middle- and Low-Income Households (April 2006)
* Policy Options to Broaden Savings and Ownership by Low- and Moderate-Income Americans (April 2006)
* Impact of Asset Ownership on Social Inclusion (2005)

February 2009
- this five-page document covers a range of asset-building initiatives, along with Community Factors (Reducing Poverty & Recidivism), Education, Family Policy, Health Care, Making Work “Work” and
Strengthening Civil Society.
- includes brief summaries of each proposal, complete white paper policy proposals (PDF links after each section of the white paper), and a press kit.
- recommended reading for all poverty reduction researchers!
Source:

The Poverty Forum is made up of 8 teams who, in February 2009, came up with 25 policy proposals addressing domestic poverty.
The Poverty Forum is composed of a select group of leaders and policy experts representing divergent political perspectives but sharing biblical values surrounding God's concern for the poor and a commitment to address poverty.

Source:

Spotlight on Poverty and Opportunity is a foundation-led, non-partisan initiative aimed at ensuring that our political leaders take significant actions to reduce poverty and increase opportunity in the United States.

Enabling Families to Weather Emergencies and Develop:
The Role of Assets
By Signe-Mary McKernan, Caroline Ratcliffe
Posted to Web: July 16, 2008

Low-wage jobs can be unstable, leaving families struggling to cope with employment gaps and financial emergencies that can strike without warning. About four in five low-income families are "asset poor," lacking enough liquid savings to live for three months at the federal poverty level without earnings. In this essay, McKernan and Ratcliffe suggest a cluster of policies that would improve financial markets and savings opportunities for low-income families across the life cycle.

(PDF - 285K, 30 pages)
"(...) This essay proposes five complementary types of asset policies that enable families to weather emergencies and promote their long-term development:
1. Increase regulation of small loans, preferably with a savings component, to help families with few assets weather an emergency.
2. Match children’s accounts and EITC savings (when deposited into longer-term savings accounts, such as IDAs, or when used to buy U.S. savings bonds) to incentivize savings, help low-income working families get a toehold in the financial world, and increase financial literacy.
3. Allow incentivized savings accounts to be used for vehicle ownership and set up a national grants program to expand ownership of reliable vehicles.
4. Modify the mortgage interest tax deduction and increase oversight of “nonbanks” so low-income working families receive some of the same incentives and protections that higher-income families receive when buying a home.
5. Promote retirement savings through automatic IRAs to provide low-income working families with easy access to a retirement savings mechanism and thus a more secure retirement."

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June 29, 2007
The World Wealth Report 2007 released on Wednesday by Merrill Lynch and Capgemini reports that the very rich (so-called high net worth individuals – HNWI) are getting even richer. And the forecast is the extremely wealthy are going to get even richer due to their dominance of global capital markets, especially commercial real estate and real estate investment trusts. Meanwhile, the Canadian Centre for Policy Alternatives released a detailed research report on Thursday called Rising Profit Shares, Falling Wage Shares which shows that real hourly wages for workers (the people that do things, rather than own things) “have been stagnant for 30 years running”.The two studies make fascinating reading, when set side-by-side...
Source:

[ ]

Press Release
June 28, 2007
OTTAWA – Canadians are working harder and smarter, contributing to a growing economy, but their paycheques have been stagnant for the past 30 years, says a new study by the Canadian Centre for Policy Alternatives.

GrowingGap.ca is a project of the Canadian Centre for Policy Alternatives
"(...)What does the growing gap look like? In 2004, the richest 10% of families raising children earned 82 times more than the poorest 10% -- almost triple the ratio of 1976, when they earned 31 times more. In after-tax terms the gap is at a 30-year high"

(PDF file - 55K, 4 pages)
Press Release
27 June 2007
New York, June 27 – Driven by a strong global economy, the wealth of the world’s high net worth individuals (HNWIs1) increased 11.4 percent to US$37.2 trillion in 2006, according to the 11th annual World Wealth Report, released today by Merrill Lynch (NYSE: MER) and Capgemini.

- incl. links to : * Fast Breaking Headlines * World Wealth Report Overview * State of the World's Wealth * HNWI Asset Allocation * Spotlight - New Service Model for HNW Clients * Regional Facts * About the World Wealth Report * Capgemini Wealth Management Offerings * Merrill Lynch Global Private Client * WWR Press Releases * WWR Archive * more...

(PDF file - 225K, 12 pages)
February 2007
Table of contents:
Director’s Column * New Staff * 2006/2007 LIS Summer Workshops * Belgian Workshop Summary * 2006 Visiting Scholars * Update on the Luxembourg Wealth Study * 2006 Staff Presentations & Meetings * Upcoming Local Workshops * Local Advisory Board Meeting Update * Grants for Visiting Scholars * Call for Papers * New Working Papers * In the Press/ Where They’ve Turned Up * Staff Directory
[ - links to 13 issues back to December 1998]

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(PDF file - 252K, 14 pages)
Press Release (incl. tables)
5 December 2006
A new study on The World Distribution of Household Wealth by the World Institute for Development Economics Research of the United Nations University (UNU-WIDER) was launched on Tuesday 5 December 2006. According to the study, the richest 2% of adults in the world own more than half of global household wealth. "The most comprehensive study of personal wealth ever undertaken also reports that the richest 1% of adults alone owned 40% of global assets in the year 2000, and that the richest 10% of adults accounted for 85% of the world total. In contrast, the bottom half of the world adult population owned barely 1% of global wealth."

(PDF file - 1.14MB, 70 pages)
James B. Davies, Susanna Sandstrom, Anthony Shorrocks, and Edward N. Wolff
5 December 2006
Department of Economics
University of Western Ontario

Source:
(WIDER)
"WIDER seeks to raise frontier issues and provide new and original insights and policy advice aimed at bosdting the economic and social development of the poorest nations."
-

WIDER is part of: (UNU)
- incl. links to : About UNU * UNU System * Environment & Sustainable Development * Peace & Governance * Capacity Development * Online Learning
-

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- U.S.
The AFI Page features federal programs that give assistance to low-income families so they can accumulate assets and rise out of poverty.
- incl. links to : Home | About Asset Building | Assets for Independence | Apply for Funding | For Grantees | Resources | Contact AFI | Frequently Asked Questions

"Assets for Independence (AFI) is a Federal grant program that enables community-based nonprofits and State, local and Tribal government agencies to implement and demonstrate an asset-based approach for giving low-income families help out of poverty."
Source:

[ ]

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- U.S.
March 2005
"(Enacted in 2001, the Saver's Credit ... provides a government matching contribution, in the form of a nonrefundable tax credit, for voluntary individual contributions to 401(k)-type plans, IRAs, and similar retirement savings arrangements. Like traditional retirement savings plan subsidies, the Saver's Credit currently provides no benefit for households that owe no federal income tax. However, for households that owe income tax, the effective match rate in the Saver's Credit is higher for those with lower income, the opposite of the incentive structure created by traditional pension tax preferences."

Source:

"The Retirement Security Project is dedicated to promoting common sense solutions to improve the retirement income prospects of millions of American workers. It is supported by , in partnership with Georgetown University's and the ."

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(Workshop)
Washington, DC
January 14-16, 2004
- incl. links to the workshop agenda, speaker bios, presentations (Powerpoint and videos) and links to related online content
Sample:
Michael Sherraden: Asset-Based Development Approaches in the U.S.
(requires Microsoft Powerpoint or compatible software to read) - 202K, 46 slides

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(PDF file - 71K, 10 pages)
February 19, 2004
By Reid Cramer, Papia Debroy, Leslie Parrish, and Ray Boshara
"The purpose of this annual report is to summarize and assess federal assets policy efforts from last year, in the President’s new Budget, and for the coming session of Congress. To date, there has been no comprehensive analysis of federal policy from an assets perspective. While not intended to be exhaustive, this report identifies almost $320 billion in resources related to asset building included in the Bush Administration’s 2005 Budget. The overwhelming majority of these resources, $302 billion, are catalogued as tax expenditures, while almost $17 billion of discretionary spending is proposed."

(PDF file - 95K, 23 pages)
Margaret Clancy, Peter Orszag, Michael Sherraden
February 12, 2004

(PDF file - 353K, 7 pages)
Bernard Wasow
February 06, 2004

(PDF file - 62K, 6 pages)
By Ray Boshara, Reid Cramer, and Leslie Parrish,
January 2004

(PDF file - 176K, 15 pages)
- by Anne Stuhldreher and Jennifer Tescher, , February 2005

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October 2003
Fact sheet
Overview of the treatment of family assets in benefit eligibility criteria for major public assistance programs in the U.S.
- incl. asset exemption levels under the following programs : Cash Assistance under Temporary Assistance for Needy Families (TANF) - Food Stamps - Public Health Insurance - Other Government Assistance Programs (child and dependent care tax credits, earned income tax credits, Section 8 housing vouchers, unemployment insurance, and (in most states) Child and Dependent Care Fund (CCDF) subsidies.

................................................................................................................................

(IARIW)
IARIW's major objectives:
- the furthering of research on economic and social accounting, including the development of concepts and definitions for the measurement and analysis of income and wealth
- the development and further integration of systems of economic and social statistics
- related problems of statistical methodology

Journal of the International Association for Research in Income and Wealth
"The major objectives of The Review of Income and Wealth are the furthering of research on national and economic and social accounting, including the development of concepts and definitions for the measurement and analysis of income and wealth, the development and further integration of systems of economic and social statistics, and related problems of statistical methodology"
- incl. links to full text of back issues of the journal from 1966 to 2000, with several dozen studies in each issue
- wide range of topics, including : income inequality - measuring poverty and deprivation - pension wealth - income mobility - how best to measure wefare, real income, and output - poverty indices and policy analysis - relative or absolute poverty lines - demographic trends - much more...

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"The Chancellor announced his intention to introduce the Child Trust Fund (CTF) in the April 2003 Budget. The CTF is part of the Government's strategy for saving and asset ownership."
- incl. links to further CTF resources

(U.K.) - from
[see esp. files #7-8-9 - also includes info about the U.K.'s child and working credits]
NOTE: the dates on these files range from 2000 to 2002

"The two most high profile asset-based welfare policies are the Saving Gateway and Child Trust Fund."
- incl. links to five documents pertaining to these two initiatives

................................................................................................................................

November 2003
"Governments in developed countries have long used, directly or indirectly through their tax systems, policies that subsidise or otherwise encourage the population at large to acquire assets such as financial savings, home ownership, retirement funds, education (human capital) or business capital. (...) This book establishes the context for a fruitful debate on the merits and demerits of asset building for the poor by setting out the basic ideas involved in asset-building programmes and proposals. It also outlines the social policy advantages that their proponents claim, and documents what the existing programmes and demonstration projects look like."
- incl. info about existing asset-building developments in the U.S., the U.K, Canada, Mexico, Ireland, and more
Source:

Asset-Based Social Policies

Politiques sociales fondées sur l'acquisition d'actifs

Toronto