Deepening the Pockets of Women

Deepening the Pockets of Women

February 8, 2020 

“We are valuable, and we have valuables…”

Designers from across the globe are catching on to something that has frustrated me for some time; on average, men’s pockets are 3 inches deeper than women’s pockets—that is when our clothes have pockets at all. And because women hold as many valuables as men (i.e. phones, wallets, business cards…), we struggle with where to carry things!

Women deserve deep pockets, both figuratively and literally. In researching this topic for the blog, I found that one can garner a sense of GENDER INEQUALITY … BY UNDERSTANDING THE HISTORY OF POCKET INEQUALITY.

Verve: She Said published an article by Chanju Mwanzan entitled The Bewildering and Sexist History of Women’s Pockets, describing how the inequality of pockets can be traced back to at least the middle ages. Mwanzan described “Both men and women in the middle ages lugged around little pouches that were slung from a rope, allowing them to carry any essentials around with them. Then came the 17th century idea of sewing these pouches right into your clothes, enabling the wearer to conceal the items they were carrying and keep them close to their bodies. The pocket was born. However, unlike men’s pockets which were easily accessible and sewn right into the linings of their coats, women still had to rely on having separate pockets that sat underneath their petticoats. As more tight-fitting dresses came into fashion in the late 1700s, the pocket for women basically disappeared. It wasn’t until the 20th century when women began to fight for their place in society that pockets came back—think Suffragette suits that had no less than six pockets. Sadly, the pendulum swung back in the 1950s as men returned from war and women’s roles shifted to raising a family and looking feminine. The days of Rosie the Riveter were over—and the style of women’s dresses meant that women needed to carry a purse to hold the many needs of their family.”

Over the course of the past 50 years women made some progress in the pocket department but it was slow. Julie Sygiel, an entrepreneur and strategy consultant states, “I’m on a quest to deepen women’s pockets by launching the Pockets Project, focused on bringing attention to pocket inequality and designing a line of dresses with deep pockets.” Many other designers including Sarah Greisdorf (Holdette) who launched the Leslie Suit with eight pockets(!) are also changing their designs—creating equity in pocket design between men and women.

The metaphor may be obvious, but it is worth it to delve a bit deeper. While there is some disagreement on the origin of the term “deep pockets,” today it generally understood to mean that a person or institution has substantial wealth. (Merriam-Webster). And based on pay scales around the globe, it is much more often men rather than women who possess these “deep pockets.” On average, women in the United States own a mere 32 cents to every dollar owned by men. According to Inequaltity.org, the global trend towards extreme wealth and income concentration has dramatically strengthened the economic and political power of the overwhelmingly male individuals at the top.

This is more than pay inequity—although that certainly exists. In 2018, a woman working full time, on average, earned 81.6 cents for every dollar a man working full time earned. Additionally, women’s median annual earnings were $9,766 less than men’s, according to the most recent available data from the US Census Bureau (August 2020). And Black women in the United States who work full time are typically paid just 62 cents for every dollar paid to white, non-Hispanic men. According to a 2020 study published by Oxfam International “Our economic system was built by rich and powerful men, who continue to make the rules and reap the lion’s share of the benefit. Worldwide men own 50% more wealth than women,” the report notes.

A large percentage of the individuals served by The Fedcap Group are women of color living in poverty. They are working hard to make their place in a world where the odds are stacked against them. But they continue to fight. And The Fedcap Group is fighting alongside them. We are deeply committed to developing solutions to combat not just pay inequity but wealth and opportunity inequity. In our collaboration with Civic Hall Technology Center and merger with Apex Technical Institute, we are strategically positioning our company to help women develop the skills required to succeed in the competitive, technology driven marketplace. We are building the capacity to measure a set of key performance indicators that track our success at ensuring that everyone served by The Fedcap Group leaves having established a savings account and taken courses to become financially literate. And much more.

Our goal is to fundamentally change the future of women’s access to opportunity and wealth—building a community where they have “deep pockets” both in fashion and in life.

Guest Blog: A Message by Christine McMahon to The Fedcap Group’s Leadership Academy

Guest Blog: A Message by Christine McMahon to The Fedcap Group’s Leadership Academy

February 1, 2020

In 2015, The Fedcap Group established a Leadership Academy. Staff from our 22 companies compete for a slot in this challenging, year-long professional development experience.

Christine McMahon, the CEO of The Fedcap Group, welcomes each new class. After sitting in on her presentation, I asked if I could serve as guest blogger this week to share the topline guidance, insight and expectations she imparted.

Chris began by stating that she does not actually self-identify as a leader; indicating that this title presumes people are following, which suggests a degree of hubris that is unfitting for a leader.

She went on to discuss the tremendous obligation and responsibility of every leader. “When organizations fail, while it is never easy to transfer from one agency to another, clients can usually find a new place to receive services pretty rapidly. The people who really experience the brunt of poor leadership are the employees. Their livelihoods are impacted, many having invested their entire professional career within a single company. Staff, and their families, are counting on leaders to do the right thing to ensure the solvency of the company. I don’t go a day without contemplating this.”

Chris stressed that this way of thinking is not imposed on leaders but comes to you over time. “And when it does, the pressure will weigh on you. Consistently, you’ll ask yourself, am I doing what is right for the staff/team?” She shared that this is what keeps her up at night, and that if there is a time when this feeling about her role disappears, she should no longer serve as CEO.

During the class, Chris highlighted the three core elements of leadership that have, over time, become the foundation of her approach:

1) Listening to understand. Chris stressed that listening to understand is very different than just listening. When people come to you to make a decision or resolve an issue, there is tremendous value in trying to understand the larger picture, as opposed to driving directly to a solution. She pointed out that “It’s not always easy to understand. For me, the only way to understand is to ask questions. If you approach me, be prepared to be pummeled with questions. I have learned that at times, the person communicating their position does not fully understand the larger picture. Questions can help them deepen their critical thinking. Leaders need to build the skills necessary to understand what the person is trying to communicate and why it matters.”

2) Mining Perspectives. Chris underscored the value of “mining a library of perspectives.” She talked about the fact that when making decisions, she presumes that she starts out with only about 10 percent of the information that matters, and that seeking out diverse perspectives gets her close to 70 percent of the information that matters. The speed in which a leader has to make a decision drives how many perspectives can be sought. A good leader must continually remind themselves that they do not have all the facts. “You just don’t know what you don’t know.”

3) Setting Vision. Chris emphasized that every person in a leadership position should develop the capacity to set a vision. Whether it is about productivity standards, program culture, staff professional development or the future direction of the company—leaders need to hone this skill. “Setting a vision is complicated. In all cases, it needs to be realistic and at the same time stretch the team or organization. It also needs to be forward looking, positioning the program or the organization to succeed in the changing marketplace. Vision setting, by definition, requires being comfortable in ambiguity. A well-thought-out vision is inspirational. I have found that people will aspire to reach a bold vision, even if they cannot see the promised land at the end.”

The 2021 Leadership Academy Class was deeply motivated by the comments of our CEO and expressed their commitment to developing their critical thinking skills and becoming thoughtful, seasoned leaders.

Thank you.

Lorrie Lutz
Chief Strategy Officer
The Fedcap Group

The Effect That Beliefs About Poverty and the Poor Have on Service Design and Delivery

The Effect That Beliefs About Poverty and the Poor Have on Service Design and Delivery

January 25, 2020

Each week, executive and senior leadership from every company and corporate services department of The Fedcap Group meets to discuss operations and initiatives to enhance our relevance, sustainability and our impact.

We spend a portion of this two-hour meeting on an issue that is germane to our work or topical—such as Black Lives Matter or the assault on the Capitol. Leaders have very divergent views and as such, the conversations elicit different perspectives and insight.

Recently, we had an in-depth discussion on poverty. As an organization committed to the economic well-being of the individuals we serve, we are immersed in poverty fighting. To this end, it is critical for every employee of The Fedcap Group to explore the beliefs, values and biases that frame our approach to the work. To tee up to this conversation, I asked every leader what they believe about poverty in general and to describe some of the challenges people faced in trying to lift themselves out of poverty.

These kinds of conversations provide an opportunity to better understand what our leaders fundamentally believe, their critical thinking skills, and how beliefs and critical thinking are entwined with problem solving.

People’s beliefs about poverty, and by extension the poor, are complicated. Our attitudes directly impact the way we structure and carry out our work.

Research abounds on how educators’ beliefs about poverty and the poor impact teaching and classroom discipline. In 2019, Edward Fergus wrote an interesting article entitled Confronting Our Beliefs About Poverty and Discipline. “Poverty-disciplining belief,” he states, “is the assumption that poverty itself is a kind of ‘culture,’ characterized by dysfunctional behaviors that prevent success in school. In effect, it pathologizes children who live (or whose parents lived) in low-income communities. And while it doesn’t focus on race per se, it is often used as a proxy for race and to justify racial disparities in disciplinary referrals, achievement, and enrollment in gifted, AP, and honors courses, as well as to justify harsh punishments for ‘disobedience’ or ‘disorderly conduct’ or ‘disrespect.’”

In early 2001, a national poll conducted by National Public Radio (NPR), the Kaiser Family Foundation, and Harvard University’s Kennedy School asked 2,000 Americans 18 or older, “Which is the bigger cause of poverty today: that people are not doing enough to help themselves out of poverty, or that circumstances beyond their control cause them to be poor?” Respondents were roughly equally divided between “people not doing enough” (48 percent) and “circumstances” (45 percent). This pretty accurately depicts the divide in our political climate. On the one hand people say that it is the fault of the poor who made bad choices and that finishing high school, getting a job, and waiting to get married and have children, significantly reduces the chance that you will end up poor. On the other hand, there are those who blame the social construct of society–institutional and structural racism and gender inequality–for creating and perpetuating poverty.

These beliefs directly impact how helping systems are funded and designed and how services are distributed at the federal, state and local level.

They also impact how we, at the provider level, design and deliver our services. My goal in holding these complex conversations with our leadership team is to make sure that we know what drives our work. To shine a spotlight on the values and beliefs that underscore our day-to-day work.

As always, I welcome your thoughts.

The Inextricable Link Between Economic Empowerment and Justice

The Inextricable Link Between Economic Empowerment and Justice

January 18, 2021

Today across the US, we celebrate Dr. Martin Luther King Jr. and honor the continued fight for social justice—the distribution of wealth, opportunities, and privileges within our society. It is a day to remember the powerful messages woven throughout the iconic speeches of the felled leader of the Civil Rights Movement. Standing on the steps of the Lincoln Memorial, he called on Americans “to sit down together at the table of brotherhood” and “meet our promise of life, liberty, and the pursuit of happiness for all.”

At the core of Dr. King’s messages was his dream for “equality of opportunity.” He saw civil rights inextricably linked with economic empowerment. Just weeks before his death in 1968, Dr. King was preparing to launch a Poor People’s Campaign as a tool to gain economic justice for Black people in America. To this end, Dr. King. gave a speech in Detroit called “The Other America” where he addressed the inextricable link between economics and justice.

The vision was an America where equity in opportunity would be demonstrated by equity in pay.

Yet consider for a moment, the tremendous inequity in pay that still exists for women of color in our country. According to an article posted on the Center for American Progress website entitled Breadwinning Mothers Continue To Be the U.S. Norm, more than 80 percent of Black mothers are key breadwinners for their families, which means their households rely heavily on their wages to make ends meet and get ahead. And over 25% of these nearly four million family households live below the poverty level.

According to the US Census Bureau, in the 25 states (including the District of Columbia) with the largest numbers of Black women working full time, year-round, pay for Black women ranges from 47 to 67 cents for every dollar paid to white, non-Hispanic men in those states. This translates to a median annual wage for Black women of $38,036 as compared to a median annual wage for white, non-Hispanic men of $61,576 (US Census Bureau). These lost wages mean Black women have less money to support themselves and their families, save and invest for the future, and spend on goods and services. Families, businesses and the economy suffer as a result.

According to the National Partnership for Women and Families, if the wage gap was eliminated, on average, a Black woman working full time, year-round would have enough money for approximately:

Imagine the difference that economic equity would make for generations of children of color being raised by Black women. Imagine the economic opportunity that would result for children who could go to college, who see their future through the lens of potential and prosperity instead of poverty and limitations. Imagine the economic difference it would make to our country as an entire cohort is lifted out of poverty, able to purchase goods and services, released from the confines of government subsidies.

Fifty-three years after Dr. King’s death, economic equity remains an unfulfilled dream. But does it have to remain that way? Recently McKinsey and Company launched the McKinsey Institute for Black Economic Mobility with the mission of helping private, public, and social sector leaders take coordinated action to accelerate Black economic development. I salute McKinsey and corporate leaders who are taking a similar stand. As business leaders we can do something about pay inequity. We can be a force to change economic opportunity for people of color—especially women of color who are raising a new generation. We can be the difference makers.

“There comes a time when one must take a position that is neither safe nor politic nor popular, but he must take it because his conscience tells him it is right.”
Dr. Martin Luther King Jr.

The Fedcap Group Reports Fiscal Year 2020 Operating and Financial Results

The Fedcap Group Reports Fiscal Year 2020 Operating and Financial Results

--Resilient performance supported by a strong programmatic, financial and technology infrastructure--

New York, December 11 – The Fedcap Group, the parent company for a growing network of top tier nonprofit agencies, today reported its operating and financial results for fiscal year 2020 ending September 30, 2020. Committed to providing services that positively impact the lives of people with barriers to social and economic well-being, The Fedcap Group operates in four main practice areas: Education, Workforce Development, Occupational Health and Economic Development.

Management Comment

“The Fedcap Group’s fiscal 2020 performance demonstrated the resilience of our organization and our ability to manage effectively through the challenges of COVID-19. We have remained operational throughout this unprecedented health crisis, providing a broad range of services to consumers, while maintaining strict safety protocols to protect our staff. At the same time, we took action to optimize The Fedcap Group’s financial position to ensure the sustainability of our work, ending the year with relatively stable year-on-year recurring revenue levels, a strong cash position, and expanded bank credit lines,” said Christine McMahon, President and Chief Executive Officer.

“Nowhere has the pandemic been more acutely felt than in our at-risk communities, where individuals are suffering high infection rates, loss of income and a pullback in available services. We are proud of how well The Fedcap Group has been able to utilize our robust platform to provide much needed help, including: distributing over 50 tons of food, toiletries, and other essentials through our child development centers and special education schools, cooking over 160,000 meals for the homeless and food insecure in our commercial kitchen, providing childcare to health care providers and first responders, and offering remote telehealth services to tens of thousands of individuals. Similarly, our facilities management subsidiary has deep cleaned over 18 million square feet of commercial space to provide a safe working environment for thousands of individuals.

“As our staff worked tirelessly since March to address the special pandemic-related needs in our communities, 2020 was also a year in which we continued to refine our work in our five key areas of focus: Children ages 0-8, youth transitioning from foster care, individuals with intellectual and developmental disabilities (I/DD), the previously incarcerated and those on public assistance. Throughout the year, we made targeted investments to enhance our technology infrastructure, enabling the transition to work-from-home and upgrading our financial, HR, fundraising and business development systems to create a sustainable platform from which to efficiently serve our diversified populations.

2020 Financial and Operating Metrics

Revenue for FY 2020 was $273.1 million, stable on a recurring revenue basis with the prior fiscal year. Lower year-on-year comparisons of reported revenue primarily reflect the downsizing of our home health business, which contributed additional revenues of approximately $6.7 million in 2019 and the wind-down of a large project that generated revenues of $25.2 million last year.

Over the last several years, The Fedcap Group has significantly diversified its revenue sources, bringing a broader array of services to at-risk populations.

Fiscal 2020 operating expenses were $272.6 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating gain of $504 thousand for the year ended September 30, 2020, largely reflecting the organization’s agility during the COVID-19 crisis, pivoting to delivering services remotely, expanding COVID-related services and managing expenses in areas where revenues were impacted by the crisis.

At September 30, 2020, cash and marketable securities were $31.7 million, of which $12.5 million represented federal government-funded loans as part of the Payroll Protection Plan (PPP). At the end of fiscal 2019, cash and marketable securities were $18.5 million.

During FY20, The Fedcap Group began the process of increasing its working capital line of credit to enable the organization to effectively bid for many growth opportunities that exist. In October 2020, The Fedcap Group refinanced a portion of its outstanding debt. The line of credit capacity was increased to $42.5 million from $25 million and long-term debt was decreased by $4 million.

Summary and Outlook


“Fiscal 2020 was a tale of two halves. In the first half of the year, Fedcap was moving forward with its growth strategy, achieving positive outcomes for individuals in need, winning new contracts including a large new workforce development contract in Canada, and engaging in talks with potential acquisition candidates.

“At the onset of the pandemic, we pivoted quickly to address the dire situations that existed in many of our communities. I could not be prouder of The Fedcap Group leadership and staff who have worked diligently to bring our essential services to the at-risk populations we serve within a very difficult operating environment. This demonstrates the strong culture that unites us and supports our confidence in The Fedcap Group’s ability to continue to effectively navigate the COVID-19 health crisis and to emerge from it as an even stronger organization.

“While the pandemic caused delays in several of our initiatives, we are pleased to report that in the 4th quarter of fiscal 2020, we officially brought Apex Technical School into The Fedcap Group. Since 1961, Apex Technical School has enjoyed a rich tradition of service to New Yorkers. Licensed by the New York State Education Department, the school’s founders were marine, stationary and refrigeration engineers who were well known in union and trade association activities. They developed a trade school for the purposes of offering a hands-on quality education. Nearly 60 years later, Apex continues to provide educational opportunities that change lives. Each year, 1000+ individuals graduate with skills and certifications in trades with tremendous growth potential. This combination allows us to expand our ability to assist unemployed individuals develop new skills, especially in the area of technology, and compete in the changing marketplace.

“We have also ramped-up our large Canadian workforce contract and are now serving a population of more than 10,000 people across Ontario. Additionally, we continue to expand our presence in the UK and we were recently selected by the UK Department of Work and Pensions (DWP) as one of 14 organizations (and the only nonprofit agency) eligible to compete for new workforce development contracts worth £2.9 billion over 4 years, throughout England, Scotland and Wales.

“We believe that the post-COVID-19 environment will provide opportunities for The Fedcap Group and similar service providers that are well-capitalized and have the scale and IT infrastructure to offer robust solutions to funders. We already are seeing greater demand for our on-premises Facilities Management Services and have added over 40 individuals to implement contract plus-ups we have received, to increase the scope of our work in this arena. There also will be expanded need for our workforce training and development work to help get individuals back to work.

“Operating in 22 states and Canada, Scotland and England, we are a leader in providing relevant services. Our strong financial position and the dedication of our staff give us confidence in The Fedcap Group’s ability to remain a sustainable organization supported by a strong programmatic, financial and technology infrastructure,” said Ms. McMahon.

About The Fedcap Group

For 85 years, The Fedcap Group has developed scalable, innovative and potentially disruptive solutions to some of society’s most pressing needs. Serving over 265,000 people each year, The Fedcap Group provides educational services to every age group, vocational training in high-growth industries, behavioral health services, work readiness skill building and jobs—all targeted to helping people achieve long-term self-sufficiency.

Conference Call Details

Date: December17, 2020 at 11:00am ET

Webcast:

www.fedcapgroup.org/results

US: 1-844-792-3735

UK: 08002799489

Canada: 1-855-669-9657

Contact:
Ariana Reed Casasanto
646-931-2412
acasasanto@fedcap.org

Financials

Consolidated Statement of Financial Position as of September 30

Consolidated Statement of Activities as of September 30

Our Children Are Still Watching

Our Children Are Still Watching

January 11, 2021

“In a democracy, the individual enjoys not only the ultimate power but carries the ultimate responsibility.” – Norman Cousins

As I watched citizens of the US storm the Capitol, like many of you, I was stunned. Since Wednesday, I haven’t stopped reflecting on the disturbing images.

While some of us spent considerable time focusing on how we got here, I found myself wondering where we go from here? And how do we take our children along in our journey so that in the end, they feel safe and secure in their future?

In early June, after the murder of George Floyd, I wrote in my blog entitled Our Children Are Watching: “As this painful week comes to an end, I am left thinking about the children. How are they internalizing what they see on TV? How do we answer their questions? This week of pain comes at a time already fraught with tension, compounding the destructive force of COVID-19 and the resulting financial crisis that is hitting our most vulnerable and marginalized communities the hardest. Our collective children are growing up and learning about their world, now with disturbing events unfolding in every direction. I wonder how we explain these times to our children. What will they take away from this point in time?”

Every word above could have been written about the events that unfolded this past week. And I find myself with the same concerns. Due to COVID-19, there are many children who are being schooled from home, which means that they may have seen these events unfold on TV in real time. How did seeing the images make them feel? What conclusions are they drawing about our country and about democracy?

We have an obligation to talk to our children about this week’s events. Talking about them calmly can quell fear. Yet, helping them make sense of the information we provide is no easy conversation. How do we help our children sort through the fact and fiction surrounding the day? How do we respond to them when they ask why? And equally important, what do we say when they ask “what will you do to make it better?”

My hope is that our children see us authentically struggling with what to do next. That they see the vulnerability in our conversations. That our children see us refusing to gloss over the events, because we just can’t. And that they come to understand that the questions we ask ourselves are just as important as the answers.

Our children are watching. I believe today, as I did in June, that what we do next must be done very well.

Why We Value Work

Why We Value Work

January 4, 2021

Work is a significant part of our lives—an activity to which we’ll devote more time than anything else. If we start working full time at age 18 (and most start well before), by the time we are 65, we will have spent 97,760 hours on the job.

At The Fedcap Group we have spent considerable time focusing on the value of work. Work brings purpose, structure and self-esteem. Work builds confidence. Work pays bills and allows us to meet basic needs. Work teaches responsibility and accountability. Work unleashes creativity. Work creates meaningful and often lifelong connections–thus the phrase “my work family.”

All we have to do is look around and we can see the tangible and intangible impact of unemployment. Deborah Belle and Heather E. Bullock wrote a compelling piece entitled The Psychological Consequences of Unemployment. They state, “Job loss is associated with elevated rates of mental and physical health problems, increases in mortality rates, and detrimental changes in family relationships and in the psychological well-being of spouses and children. Prolonged unemployment results in social isolation and reduces one’s sense of contribution to society.” 

Every year approximately 30,000 people come to The Fedcap Group for assistance with becoming employed. One of the consistent themes we hear from people wanting to work is that when they lose their job and cannot find work, they feel invisible. For many, morale and confidence decline with each month that passes in unemployment. All this is reinforced in stories from our clients.

In response, building on our 85-year history of putting people to work, The Fedcap Group is deepening our commitment to help people find employment through the launch of ™IWORK!—a campaign to create enduring social and economic value through a focus on work.

™IWORK! is our contribution to counter the challenges and risks of exclusion and marginalization. As countries around the globe seek to transform lives and communities hit hardest by the pandemic, ™IWORK! is a clarion call for leaving no one behind. Efforts to spur the economy and address inequality must not forget individuals with barriers to employment–adults with disabilities, the formerly incarcerated, those in recovery, young adults leaving foster care and men and women without an employment history.

In the coming weeks and months you will hear more about ™IWORK!…

As always, I welcome your thoughts.