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Partnering with Private Businesses In Welfare-to-Work Initiatives
 

This National Service Fellows study by Robert J. Keast, Partnerships that Work: National Service and Business in Welfare to Work, examines the opportunities and challenges of national service/business partnerships in welfare-to-work programs. Welfare reform is explained in detail, and reports are provided about several national service welfare-to-work programs, as well as how businesses have been running similar programs. The author also discusses possible models and ideas for national service-business relationships. An extensive resource guide for welfare-to-work programs is included.

Partnering with Private Businesses In Welfare-to-Work Initiatives
 
 

Issue

What is the role of a collaboration between business and national service organizations in transforming a welfare system that is in need of reform?

Action

Effective practices for building welfare-to-work programs include:

  • Develop an "executive or employee on loan partnership program" where staff of a certain business would serve as an AmeriCorps*VISTA.
  • Develop relationships with businesses that could mentor or advise AmeriCorps*VISTA members on business issues.
  • Collaborate with other national service programs such as the Retired and Senior Volunteer Program (RSVP) where volunteers with previous business experience can be utilized.
  • Develop a more formal relationship with the Senior Corps of Retired Executives (SCORE) where their knowledge of the business world can be leveraged.
  • Develop an even more formal relationship with The Welfare-to- Work Partnership: cross-referencing databases in an effort to connect with their outreach cities would help both the Corporation for National and Community Service and The Partnership.
  • Work even more closely with the US Small Business Administration to assist national service members who wish to reach out to small businesses in welfare to work.

Context

With the Family Support Act of 1988, which was enacted to bring more welfare recipients into the labor market, and the subsequent altering of Title IV of the Social Security Act of 1935 that set the rules for entitlement to benefits, all welfare recipients were required to be in training or work programs if they wanted to continue or begin to receive assistance. This "work first" model was furthered during the years of the Clinton administration.

Outcome

The following results are based on a study conducted by the independent research organization Westat, surveying 3,368 AmeriCorps*VISTA members in 700 projects for welfare-to-work activities:

  • 1,400 businesses agreed to hire 2600 unemployed individuals
  • 770 businesses were created or expanded
  • 430 individuals and businesses obtained capital for development
  • 3,700 individuals were placed into employment at an average wage of $6.77

These outcomes are not necessarily based on national service-business welfare-to-work partnerships, but do reflect the impact AmeriCorps*VISTA projects can have on communities. Strong business relationships will likely increase these figures. It is the author's findings, as a result of interviews and surveys, that national service-business partnerships in welfare are under-utilized collaborations; these outcomes seem to support these findings.

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"Partnering with Private Businesses In Welfare-to-Work Initiatives." Keast, Robert J. Partnerships that Work, National Service and Business in Welfare-to-Work. 2000. English.