By Ray Birch
MADISON, Wis.—There’s a difference between simply talking about the need for racial equality and doing something about it, says one credit union.
That’s why UW Credit Union is investing $1.5 million to address racial inequities in Madison and Milwaukee through a new fund launched in partnership with United Way of Dane County and United Way of Greater Milwaukee & Waukesha County.
The UW Credit Union Fund for Racial Equity, the credit union said, will address barriers to economic mobility for people of color, with a goal of funding “transformational programming solutions” in Dane, Milwaukee, Waukesha, Ozaukee and Washington counties in Wisconsin.
The fund, which will provide grants to local non-profit organizations, is supporting programs that increase financial stability and improve educational outcomes for people of color.
During a period of heightened civil unrest, brought on by the death of George Floyd at the hands of Minneapolis police, many people in the country have questioned whether real change will happen or most of the effort around racial equality issues remain just talk.
‘Money Where Our Mouth Is’
“We're putting our money where our mouth is,” said Sheila Milton, VP of diversity, equity and inclusion (DEI) at the $4.2-billion UWCU. “We’re doing DEI internally here at the credit union, but we felt the need to do more about DEI externally.”
UWCU is hopeful that in addition to supporting much-needed programs, the funds will get the entire community moving toward fostering racial equality.
“What we’re hoping is other financial institutions and other organizations within our communities will see what we are doing and want to do something similar, and possibly join us,” said Milton.
Milton explained addressing racial inequity must be the primary focus of an organization applying for funding.
“While well intended, traditional funding models often reward well-resourced organizations that can spend ample time on funding applications,” said Milton. “Our fund seeks to overcome that dynamic through a simplified, equitable process that makes funding more attainable—while also ensuring funds are directed to organizations poised to make the greatest impact.”
Committee Formed
Sheila Milton
A Community Advisory Committee, a group of local leaders and CU staff, has been formed to make funding decisions.
“We know that we're not the experts at the credit union,” said Milton. “We know we don't have our finger on the pulse of what's happening in the community like this team. We're empowering this committee to identify and review the requests that come in for the funds.”
Milton said the grant process has been “streamlined” when compared with how many other community funding programs have worked. United Way will receive all applications and deliver them to the Community Advisory Committee. The committee will review and make funding recommendations to the credit union, explained Milton.
“Once we sign off on funding decisions, United Way will disburse the money,” she said.
Community Drivers
Driving DEI within the communities it serves and within the credit union itself takes focus, said Milton, which is why UWCU hired Milton in late 2019 and created the VP of DEI position. While DEI efforts internally and externally at UWCU will help the community, Milton added the effort will also strengthen the credit union’s position in its markets.
“Part of this effort is about ensuring our future, By focusing on DEI now we’re changing before we have to change,” she said.
Milton said the pandemic has shined a bright light on problems within underserved communities.
“The pandemic brought additional focus to the issue of racial disparity, the wealth gap that exists in our communities,” she said. “Communities of color have suffered the most during the pandemic—when it comes to employment, safety and just basic needs.”
Milton pointed out money often translates into action—creating programs to further the advancement of people of color.
How Funds Will Be Used
Funds from the program will be used to address immediate needs within communities, such as financial education for the underserved, as well longer-term issues, such as programs to create jobs for people of color.
“We know that people need money now, and we want to get some of these funds out quickly when needed,” said Milton. “Other areas we are focused on are programs to drive economic mobility, financial stability and access to educational opportunities for people of color. We know there are gaps in educational programs for the underserved and we want to close that.”
Milton said a portion of the dollars go to an “emergency fund.”
“For example, maybe we’re working with students and we find there is a need at someone’s home for Internet service for a child who’s going to school. We could pay for that,” she said. “We could use that emergency fund for a lot of different things.”
What Lies Ahead
Asked about how the program might expand, and Milton said UWCU is currently focused on distributing the $1.5 million to local organizations and supporting them.
“As we become more informed about the valuable work underway, we're confident those learnings will not only shape future funding decisions but also influence how we as an organization can drive change,” she said. “We look forward to continuing that conversation in the months and years ahead.”
The first round of applications for the fund opened on March 17.