United Way of Southeastern Pennsylvania

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Neighborhood Funding Stream
Frequently Asked Questions

What is the Neighborhood Funding Stream?

Philadelphia was the first Empowerment Zone in the country to create an innovative endowment called the Neighborhood Funding Stream (NFS). Endowments are often referred to as the gifts that keep on giving because a portion of the income is reinvested each year, which allows the endowment to grow and provides a permanent stream of income over time.

The Community Trust Boards committed certain funds that accrued from the repayment of loans to the endowment and provided a vehicle for grant-making aimed at extending the community’s ability to build on its successes. To date, this fund has already grown to more than $14 million.
The Neighborhood Funding Stream supports a small grant program dedicated to addressing priority needs of the Empowerment Zone communities. During the four years since its inception, the NFS has awarded 139 grants totaling about $1.75 million (approximately $1.24 million in the American Street EZ, $438,000 in the North Central EZ, and $70,000 in the West Philadelphia EZ).

When was the Neighborhood Funding Stream created?

In 2004, the City of Philadelphia Empowerment Zone (EZ) and the United Way of Southeastern Pennsylvania (UWSEPA) announced their partnership in this signature project. Approved by the local Empowerment Zone Community Trust Boards in the American Street and North Central Empowerment Zone neighborhoods in 2004, and by the West Philadelphia Community Trust Board in 2006, this model also received the support of state and federal governments.

Who is involved?

The City of Philadelphia Empowerment Zone (EZ) and Commerce Department continue to collaborate to provide on-going leadership and access to capital within the three EZ communities.

The Community Trust Boards play an important leadership role in neighborhood planning and the identification of funding priorities for the Neighborhood Funding Stream. The Finance Committee of the Neighborhood Funding Stream is comprised of members from the Community Trust Board, UWSEPA and the EZ/NTI. The Finance Committee offers guidance concerning the investment and spending polices for the fund.

The United Way of Southeastern Pennsylvania (UWSEPA) joined the NFS partnership in 2004. Based on recommendations from all community stakeholders, UWSEPA developed and implemented the grant program designed to address the needs of residents and organizations in the Empowerment Zone communities.

NeighborhoodsNow joined the NFS partnership in 2008, bringing to the table extensive knowledge about strengthening neighborhoods. NeighborhoodsNow manages the NFS grant-making project in partnership with UWSEPA.

Vanguard Management Services was selected to develop and manage the NFS investment portfolio.

What is the guiding principle of the Neighborhood Funding Stream?

The NFS is designed to address the primary goals of the Philadelphia Empowerment Zone by funding and supporting economic development, human and social development in the community. This fund contributes to community development initiatives by funding community-based activities, solidifying community networks, and encouraging citywide collaboration.

What are the current funding priorities of the Neighborhood Funding Stream?

The first distribution cycle of the Neighborhood Funding Stream (2005-06) awarded community-based grants to improve the Quality of Life of Children, Youth and Families in the Community. The NFS supported organizations which provided access to a wide variety of resources (health, cultural, artistic, educational, economic), and to gave adults access to resources needed to support their families. In distribution cycle 2006-07 and again in 2007-08, grants were awarded to address the issues related to Violence Prevention and Public Safety in the Empowerment Zone communities. In 2008-09, the Neighborhood Funding Stream awarded grants to help children and youth from the Empowerment Zones succeed in school and graduate from high school, get connected to the workforce, live in peaceful communities and safe homes, and be served by a vibrant and effective local non-profit sector.

In addition to addressing the needs of children and their families, the Neighborhood Funding Stream awarded grants promoting an Economic Development funding priority through a coordinated and comprehensive strategy that includes investments in commercial development, business organizing, and family financial stability. The Community Trust Boards also promoted Equitable Community Development with the support of the endowment. To confront the energy crisis experienced by many Philadelphians during the winter, the Neighborhood Funding Stream also leveraged funds to support an Energy Loan Pool.

Who contributes to the endowment?

Anybody can contribute to the fund. However, the endowment was seeded by repayments of loans made by the Philadelphia Empowerment Zone program. These loans were given to projects with a low risk level and short-term financing need. The repaid loans are deposited in the investment fund. On a monthly basis, Vanguard Management Services and NeighborhoodsNow track deposits and withdrawals to the fund. Quarterly reports are made to the Finance Committee of the Neighborhood Funding Stream.