Help Prosperity Indiana recognize individuals and projects in Indiana that have made a positive impact on the Hoosier community economic development field.

Every year, Prosperity Indiana celebrates individuals and organizations that have demonstrated excellence in the field of community economic development through the following awards:

The John Niederman Rural Development Leadership Award honors an individual who has demonstrated outstanding leadership in improving the quality of life, influencing policies, and fostering opportunities for growth and development for the betterment of rural Indiana.

The Michael Carroll Community Economic Development Leadership Award honors an individual who has exhibited exceptional advocacy to further support the community economic development industry.

The Robert O. Zdenek Staff Member of the Year Award honors an individual who contributes to their organization and to the community economic development field as a whole. This person shows leadership and personal initiative and continues participation and contribution to general public service.

The Key Award for Supportive Services Program of the Year honors a unique program model that leads in the area of service provision and/or volunteerism.

If you know of worthy individuals or organizations for any of these award categories, please nominate them by filling out the nomination form.

If you’d like to learn more or have any addition questions, please contact Faith Batzinger at fbatzinger@prosperityindiana.org.

Jessica Kane is a professional blogger who focuses on personal finance and other money matters. She currently writes for Checkworks.com, where you can get personal checks with free shipping.

In the event you haven't noticed, shiny little squares called EMV chips already in about 120 million credit and debit cards through the United States. This new computer chip, formerly known as “Europay, MasterCard, Visa,” is a new security measure designed to keep consumer credit and debit card information from being stolen. It is the banking industry's hope that the new chips will make it a lot harder for criminals to steal the information from the new chips.

WHAT THE NEW CHIPS ARE

The new EMV computer chip is designed to create a unique digital signature ID for each separate transaction, instead of having the information remain constant as with the old magnetic strip. This should make the card data harder to counterfeit, as hackers cannot just electronically skim the credit-card data and encode it onto another card for making fraudulent purchases.

WHY THE NEW CHIPS WERE INTRODUCED

In 2013 criminals bilked U.S. consumers and banks out of over $2 billion by copying and duplicating the information stored on the magnetic strip on the back of every card. According to the research firm Aite Group, this was a 100 percent increase from 2012.

The new EMV chips are now the global standard for computer-chip enabled cards. In the wake of numerous large-scale data breaches, plus soaring rates of credit-card counterfeiting, U.S. banks are flocking to the new technology in an attempt to protect themselves and consumers from the cost of bank-card fraud. The EMV chip is designed to protect consumers from criminal activity in three main of ways:

1) With the old magnetic stripe, all of the consumer's information is coded on the strip, so if a counterfeiter can copy the information it can be used over and over again. However, the new EMV chip doesn't store information directly on the card, as the stripe did. Instead, the chip creates a new and unique transaction ID every single time the card is used. Additionally, all personal information is encrypted, so even if a hacker is able to access the information it is worthless to him.

2) In most developed parts of the world, the credit-card issuer requires users to input a “personal identification number,” know as a PIN when using the card at a terminal. Along with the new computer chip, this is known as the chip-and-PIN verification method and is what creates the unique ID for each transaction. Additionally, consumers must unlock their card with their PIN number for each transaction, so even if a criminal did get a hold of the card it would be worthless without the pin.

3) Some of the newer EMV cards use “near-field communication,” or NFC, to complete a financial transaction. This is done by waving the chip across a NFC reader or inserting it into a slot and the transaction is completed using radio-wave technology from the chip to the machine. For a criminal to steal the information from the new chip he would have to be literally within a few inches of the card and have an NFC reader.

Do the New Chips really make the cards more secure?

The debit and credit cards with the new EMV chips will certainly increase security. However, at present the EMV technology is an imperfectly-implemented system and will not prevent all fraud from happening.

As the first word in the EMV acronym is “Europe,” many of the U.S. retailers are lagging behind in becoming EMV compliant. As an example, automated gas pumps in the United States, a favorite place for thieves to steal card data, are not mandated to become EMV compliant until 2017. Also, the chip-and-PIN method isn't scheduled to be implemented in the U.S. as widely as other parts of the world. EMV-equipped cards also do not require the PIN to be used when making online or over-the-phone purchases, known as a “card not present” transaction.

A final point, as Bank of America points out, criminals are ingenious at finding ways to defeat new security measures. As the banking industry develops new ways to thwart crooks, the perpetrators will in turn continue to find new ways to commit fraud. However, for now, the new cards do provide an additional layer of protection when used at chip-enabled scanners.

The Indiana A&O Network was asked to facilitate a discussion on asset-building strategies to members of the Indiana Philanthropy Alliance (IPA) during two of their 2016 regional meetings in New Albany and Muncie, IN. IPA is a nonprofit membership association of and for the state’s philanthropic grantmaking community. Their membership includes public and private foundations, corporate giving programs, governmental grantmakers, regranting organizations, philanthropic advisors, and other qualified individuals. To learn more about their work, visit their website at inphilanthropy.org.

As the funding community responds to the increasing need to have a more comprehensive investment approach to financial inclusion and economic opportunity, IPA invited the Network to speak about successful asset-building program designs aimed at integrated approaches to service delivery.

Lack of financial education is the result of complex social problems which require commitment and input from many community partners, and the Network was able to highlight successful asset-building strategies, such as the Individual Development Accounts program a successful matched savings program in the state and Promise Indiana, a child savings account program that helps students and families save for college. Click here to review the presentation and learn more about the different ways communities benefit from them.

If you have any questions, please contact the Network Manager Kelsey Clayton, kclayton@prosperityindiana.org.

The Indiana A&O Network policy team worked on three pieces of legislation this session. The first, a proposal to eliminate asset limits in the Supplemental Nutrition Assistance Program (SNAP) was introduced by Senator Vaneta Becker as Senate Bill 377. Several members of The Network and the broader human services community worked in support of this bill, including Prosperity Indiana, Indiana Institute for Working Families (IIWF), representing Indiana Community Action Association (INCAA), Indiana Association of United Ways (IAUW), and Feeding Indiana's Hungry. The unanimous bill passed its first hurdle, the Senate Family and Children's Affairs Committee, but unfortunately moved no further. It was recommitted to the Senate Appropriations Committee where it was not given a hearing.

The second item the team worked on included reforms and an expansion of Indiana's Individual Development Account (IDA) Program. Senate Bill 325, authored by Senator Mark Messmer, expands program eligibility to 200% of the Federal Poverty Guidelinesand allows participants to use savings for owner occupied rehab, as well as vehicle purchase.  Again, several advocates worked on this issue, including Prosperity Indiana, IIWF, INCAA, IAUW, as well as a local community action agency Tri-Cap, which came to the hearing to testify and share client testimonials. SB 325 enjoyed unanimous support all the way through the legislative process and has been signed by the Governor.

The final item was an issue the policy team opposed. House Bill 1340, authored by Representative. Woody Burton, started in the House as a new payday loan product. INCAA's public policy consultant Kathy Williams and The Network team worked together to assemble a broad-based coalition of opposition that included the faith community and veteran's groups. This opposition and an overall unease around the new product terms compelled the House Committee to amend the bill and send it to a summer study committee.

On the Senate side, an amendment was brought to committee by the chair, Senator Holdman, to once again create a new payday loan product, this time with slightly better terms. The product would have still allowed very low-income people to borrow $1,000 over six months at somewhere between 180-240% Annual Percentage Rate (APR). The rate is noted because interpretations of the language differed. The Network team met  one-on-one with most of the committee to discuss concerns. Many people in opposition came to testify against the bill. The amendment was defeated by a 6-2 vote, leaving the bill as it was – a study committee on payday lending. The Indiana A&O Network will be prepared to participate in the study if it takes place, however; we do not expect the study to be assigned.

This blog was prepared by our partners at Purdue University Cooperative Extension.

As part of the nationwide education and outreach Cooperative Extension network, Purdue Extension Educators focus on improving the lives of Indiana residents by providing education that will help them learn to manage their family's resources. More than 20 Health and Human Science Educators who specialize in Family Resource Management (FRM) have offices located throughout the state of Indiana.

Adult programming targets Indiana residents who are in need of education in personal financial management areas including budgeting, expense tracking, savings, and credit score improvement. Educators teach programs including Where Does Your Money Go? (also offered on-line), a one or two session workshop where participants pinpoint spending 'leaks,' prioritize consumption, and develop a sustainable spending plan. At elementary schools and after-school programs an interactive financial literacy program is offered, geared towards third graders called Captain Cash where the basics of earning, saving, spending, and borrowing are taught.

Each fall before health insurance open enrollment begins Extension FRM Educators offer Smart Choice Health Insurance. This program helps families become better consumers of health insurance products offered at work, by private vendors, or through the national marketplace. Planning for a Secure Retirement is a web-based, multi-module course for those wanting to get on track to enjoy life after work.  Additionally, Educators work with campus professors and specialists to develop curriculum and programs based on local needs.

Purdue FRM Extension Educators are coalition members, advisory board facilitators, and task force participants in the area of increasing financial capability of our fellow Hoosiers. To connect with a Purdue Family Resource Management Educator in your area, please visit us at http://www.purdue.edu/hhs/extension/.

This blog was prepared by our partners at the Local Initiatives Support Corporation (LISC)

Two big challenges facing many low-wealth families are poor credit scores and the lack of savings to address emergencies or other longer-term goals. The Local Initiatives Support Corporation (LISC) and Financial Health Federal Credit Union in Indianapolis have teamed up to do something about that. Working closely with financial coaches in the Centers for Working Families network, the partners launched Twin Accounts.™

Borrowers must be in an active coaching relationship, with a clear set of financial goals, and have the ability to pay $25.00 per month. The borrower takes a loan for $300 which is immediately deposited into a “locked” savings account. The loan is paid in twelve monthly installments at a very low interest rate and payments are reported to the major credit bureaus.

Each timely payment is matched.

The matching dollars came originally from a grant managed by LISC. United Way of Central Indiana (UWCI) has recently joined the effort as part of their overall investment in Centers for Working Families. At the end of the term, the borrower has up to $600 which can be put away, used to pay down debt, or applied toward a secured credit card. In the past three years, 57 accounts have been opened with a successful closure rate of 88%. The average pre-program credit score was 452, with a post-program average of 601. Unscored borrowers saw the most dramatic gains, with an average post-program score of 640.

Kendra, working with her coach at Hawthorne Center for Working Families, had a goal of buying a home. She completed the program and was able to purchase a home by improving her credit and applying Twin Account funds toward closing costs. Early evidence indicates that Twin Accounts and similar products can be powerful tools for helping families grow wealth, build credit, and improve their financial capability.  

Released by Prosperity Now, this report explores the relationship between race and homeownership and recommends ways to leverage the wealth-building potential of homeownership to close the divide.

One of the most significant advantages of homeownership is the financial security a home provides. Homeownership is a lucrative asset – indeed, homeownership is the most valuable asset a family owns – bringing with it enormous wealth-building potential. Given this, it is important to understand how correcting past mistakes and achieving greater racial equality in this space could narrow the racial wealth divide and most importantly, suggest ways to achieve this.

The report recommends policies that would protect the CFPB, ensure access to affordable mortgage credit for homebuyers of color, promote the increased use of alternative data in credit reporting and scoring, and boost enforcement activities to support fair lending and combat discriminatory practices. By taking these actions, it would be easier for consumers of color to access safe mortgage products.

Read more.

On Wednesday, Feb. 24, 2016 the Indiana Assets & Opportunity Network, in partnership with the Indianapolis Asset Building Coalition, Ivy Tech Community College, and Purdue Extension-Marion County, held a lunch-n-learn concerning the effects of payday lending on families. There were both students and faculty who participated in the event. The group watched a documentary called Spent: Looking for Change, produced by filmmaker Davis Guggenheim, which followed four families as they endured various life crises while being unbanked with little to no money saved. The film highlighted the issues each family encountered as they tried to buy a home, find adequate care for a disabled child, start a business, and afford bills while helping a sick grandmother.

The reactions from the crowd were overall humbling, as many stated they “felt relief knowing they weren’t alone” because many circumstances in the film were similar to their own. As the A&O Network  discusses, unfortunately, young Americans don’t receive financial education in the classroom, but learn instead by their parents’ relationship with money. This event was an opportunity to be transparent about the difficulty of becoming financially stable.

The facilitators presented solutions to the audience to help ease the burden of financial stress, such as using Volunteer Income Tax Assistance or myfreetaxes.com to get their taxes done for free. Rachel Halleck, from Ivy Tech discussed ways for  students to utilize campus resources to help with mental counseling, job development, and employment coaching.  Jan Townsend from John H. Boner Community Centers discussed the Individual Development Account (IDA) program as a way to build assets towards homeownership, starting a business, furthering education, and now, car ownership and home repair. Also, Cheryl Koch-Martinez from Indiana Legal Services gave insight on important legal steps to take if someone has a debt issue. And lastly, Naomi Bechtold from Purdue Extension discussed the importance of savings. She set up computers for attendees to take "The Indy Saves Pledge"through America Saves and begin to save each month.

It was a rewarding event for everyone involved. We plan to host another lunch-n-learn on the Ivy Tech Community College - Lawrence Campus. We'll keep you posted!