Corporate Governance

The Financial Crisis and Helping the Homeless

By J. Robert Brown

We talk often about executive compensation, particularly as financial institutions are in the process of calculating bonuses for the prior year.  President Obama has taken the "fat cats" in the financial sector to task.  As he noted on 60 Minutes:

• "They're still puzzled why is it that people are mad at the banks. Well, let's see," he said. "You guys are drawing down $10, $20 million bonuses after America went through the worst economic year that it's gone through in -- in decades, and you guys caused the problem. And we've got 10% unemployment."

That worst economic crisis has caused pain to any number of segments of the US population.  One that I know first hand is the homeless population.  

The Denver Metropolitan area does a count of the homeless every year.  The Point in Time Survey provides a comparison for changes in the homeless population in the area.  The last survey showed that the area had 11,061 homeless, with 53.5% single homeless, 26.8% children under the age of 18,  41.8% women, 13% veterans.

By all accounts, things have only gotten worse since the Point in Time Survey.  It shouldn't come as a surprise.  This recession, with its source in subprime lending and mortgages, has been uniquely connected to housing.  A percentage of those losing their housing end up in the homeless population.

There are plenty of ways to help, but I suggest three:

Colorado Coalition for the Homeless:  I sit on the board of the Coalition for the Homeless, which provides housing, child care and health.  It runs the only clinic in Denver for those who are medicaid/medicare ineligible (read homeless).  The numbers served at the clinic are increasing but the resources/funding are not.  The web address is here:  http://www.coloradocoalition.org/  Some contributions are eligible for state tax credits. 

Catholic Workers Soup Kitchen:  I also sit on the board of the Catholic Workers Soup Kitchen which is a group of people who serve food at the St. Francis Center on Wednesdays and Fridays.  The food is always home made soup and fresh green and fruit salad.  There are no paid staff and 100% of the funds benefit the homeless.  Numbers at the soup kitchen are way up.  The web address is here:  http://catholicworkerofcolorado.com/about.html

St. Francis Center:  The St. Francis Center is a day shelter.   It is a place for the homeless to go during the day to get out of the miserable cold or the miserable heat.  The  Center provides health care (in conjunction with the Coalition) and counseling; it has a used clothing store.  The St. Francis center is a mail drop and a place for the homeless to make/receive phone calls.  I don't know their ratio of administrative costs to services but I have no doubt that they put most of the money directly to work.  My recollection is that they also provide a Colorado state tax credit since they are considered part of an enterprise zone.  They are here:  http://www.sfcdenver.org/

Full post as published by The Race to the Bottom on December 18, 2009 (boomark / email).