Flexibility in Funding

Several directors advocate for flexibility in funding and in the rules for disbursing assistance. As one expressed, “That we achieved all we did statewide demonstrates that we know what we’re doing. Tight restrictions and deadlines around funding can seriously limit our ability to help those who need it most.”

For example, Blue Water Community Action started a washer/dryer program, an idea they got from their Head Start families. Using unrestricted funds, they were able to replace two washers and one dryer, and repaired a dozen other appliances. Also using unrestricted funds, they assisted with repairs for 24 cars, paid for insurance for 15 cars, and made one car payment, which kept clients legally on the road and able to get to their jobs.

Lisa Bolen, director of Northeast Michigan Community Service Agency, echoes the thoughts of many directors who have seen how cash and unrestricted funds make it possible to quickly and effectively meet needs and gaps in care, especially for unique or odd situations. When the agency received a gift of money from area banks, it was used to help fill needs that didn’t meet other funding criteria. For example, it was given to a mother who needed to purchase diapers and could not get them with Supplemental Nutrition Assistance Program (SNAP) benefits. It was also used to build a much-needed accessibility ramp for a senior and to purchase books for a child.

Sometimes cash is the best way to head off future problems, too. “We needed cash on hand,” says Ernest Cawvey, director of Macomb Community Action which covers Macomb County, the third most populated county in the state. “Cash is important and necessary. We were at the table with the local county government and asked them to prepay financial assistance programs so we could give out discretionary financial assistance. That was huge for a lot of clients.”

How did it help? “Most important,” says Ernest, “it helped clients avoid large credit card debt with high interest rates. If we can give them a few hundred dollars now, it saves them hundreds of dollars in interest down the line. And giving cash helped with the psychological impact of the pandemic.”

Ernest also recommends exploring the opportunity to create a community action credit union that would offer lines of credit to community action agencies so they could get to work helping people immediately after a crisis and not have to wait to receive grants and other funding.

“For the millions we spend every year,” he adds, “we should see real rewards like the rewards that credit cards offer.”