ANDY POSNER is the founder of Capital Good Fund, a Providence-based social change organization that uses financial services to address America’s poverty problems. The nonprofit was recently honored by the United Way with the 2-1-1 Innovation Award for its social impact on the state. Established in 2009, the organization is now one of the country’s fastest-growing nonprofits, helping residents in Rhode Island, Massachusetts, Delaware and Florida, and passed $4 million in total loans financed to those in need.
How did the idea of forming Capital Good Fund come about? While attending Brown University, I met with my classmates to discuss how access to small personal loans can change lives for the better. In our research, we identified a dire need for equitable financial services among those with less-than-perfect credit. Not long after in February 2009, Good Fund was born.
What do your services provide? A sense of relief. For many of our clients, thinking about finances can bring on waves of anxiety and uncertainty. They might have a medical emergency and no idea how they’ll pay for it. They might need a car but lack sufficient credit for financing. They might be in the final stages of a rigorous immigration process only to find that fees are the final hurdle preventing them from their dream. At Good Fund, we provide all kinds of loans for all kinds of people – so they can stop losing sleep over money and get back to their families, jobs and lives.
Are you surprised your nonprofit is one of the fastest-growing in the country? That’s what you get when you scale a nonprofit like a business! It is certainly humbling to see our vision taking shape and thousands more Americans gaining access to equitable financial services. But I really think Good Fund got here so quickly because of our innovative approach to the nonprofit sector: We have truly unique financial services, a data-driven approach and apply business-growth strategies while keeping the principles and impact of a nonprofit.
How much more needed are your services, given that the wealth gap seems to be increasing? It’s incredible. And despite that disparity, there aren’t new options for Americans with limited income or poor credit. It’s still the same predatory financial services [such as] payday loans, buy-here-pay-here dealerships, rent-to-own stores, etc. There was a strong need for an equitable alternative when we started, and today that need is stronger than ever.
Are there any new initiatives on the horizon for Capital Good Fund? We’ve been expanding our newest offering, affordable subprime car loans, which are now available in Rhode Island, Florida and Massachusetts. Our team is conducting research, and we hope to offer our loans and coaching in even more states next year.
We’re also wrapping up a randomized control trial that will statistically demonstrate the effect financial and health coaching can have on families and their children’s performance in school. We’re hoping to take that data and provide our services to schools across the country.
