Perspectives2014 Year in Review

Botting Group Offers More Than Just Work Experience Page 8 Speaking from Experience: the Real Cost of Payday Loans Page 14 The 2014 Financial Perspective

Self-Generated City of Momentum Income

2014 Revenue 14.4% 8.3% Total Revenue $6,738,132

Provincial Government Corporate 18.2% Donations 13.7%

3.2% Federal 7.7% Government Individual Donations

11.2% 23.3%

United Way Public & Private Foundations

Payables Deferred Revenue

17.2% Momentum 23.6% 2014 Liabilities & Reserves Capital Total Assets $5,340,727 Fund 6.3% Investment in Strategic 2.9% 3.6% Fixed Assets Fund

14.5% Loan Funds 31.9% Sustainability Fund

Full audited financial statements available at www.momentum.org

| MOMENTUM 2014 YEAR IN REVIEW Inside Welcome to the 2014 Year in Review. This year, we are telling Momentum’s story from a variety of perspectives within our community. We hope you enjoy them.

2 Three Assets of a 10 Five Aspects of Resilient Organization Community Economic Development

4 The Value of 12 The Power of Partnership Contribution

6 In the Business of 14 Lending a Voice Developing Strength for Change

8 Building Careers 16 Building on our Together Solid Foundation

Our thanks

133 volunteers donated more than 1890 hours of their valuable time. Board of Directors: Ted Braun, Gail Boehm, Greg Pocherewny, Glenn Boyd, Dustin Owen, Francis Boakye, Marichu Antonio, Meenu Ahluwalia, Don Thurston, Rachel Moore, Caroline Fairbrother, John Cobb Community Champions: Al Duerr, Jim Gray, Martin Molyneaux, Pat and Sherrold Moore

Participant Ambassadors: Timothy Afolayan, Toni Boss, Olga Cojocaru, Necole Hines, Bob Patrick Congratulations to the Business Development 211 community partner organizations helped us extend the reach of our work, including department on Action to End Poverty in , Immigrant Access Fund Society, Thrive–Calgary’s Community 20 successful years Economic Development Network, Vibrant Communities Calgary, SAIT Polytechnic, of building a strong Calgary Alternative Support Services. local economy!

54 staff members partnered with people living on low incomes to increase prosperity, and inspired the development of local economies with opportunities for all.

MOMENTUM 2014 YEAR IN REVIEW | 1 “No one is a bigger supporter of Walter than Jeff.” – Jim Gray Three Assets of a Resilient Organization

aving reflected on his their problems for them. It’s messy leadership of Momentum “Momentum today has and it takes time, but we know it Hover the past 23 years, significant clout. Doing works. Walter Hossli identifies three These three characteristics guided enduring assets that helped make our work with participants, the recent transition process. The Momentum the success it is today: doing it with integrity, transition saw Jeff Loomis step persistence, consistency and keeping at it, and now into Walter’s position while Walter hosting. being able to influence stepped into everything he will It requires persistent effort to do next. The overall process took build a thriving organization— municipal and provincial two and a half years of thoughtful, creating excellent programs, policies—it’s still humbling inclusive planning and action. building a stable financial and to me, still surprising.” The transition plan allowed administrative foundation, Momentum to be persistent in developing resilient relationships – Walter Hossli spite of ambiguity. It provided a with staff, participants and consistent message for donors community partners. and funders, staff and community Successful organizations also partners. And by being so inclusive, require consistency. It is all too easy leaders as a loss of control. Just as it honoured the ongoing hosting role to be pulled in different directions in community economic development of Momentum’s leader. times of great change and urgency. recognizes the wealth of assets We wish Walter well with all he In Momentum’s case, our strategic within communities, so host has planned. He continues to be an map provides consistent direction leaders tap into the wealth of vision, ambassador for Momentum and a as we choose which opportunities to experience and motivations of those mentor to Jeff, and we know he is pursue and which to let go. around them. happy to have more time to focus on Being persistent and consistent Under Walter’s hosting leadership, gardening and growing food. through good times and bad has Momentum has become a hosting As you will see in this report, allowed the organization to gain organization. We map out viable 2014 was another successful year for momentum manageably and with and sustainable strategies together. Momentum from all perspectives. conscious control. We build relationships with our The resilient foundation built over The third asset Walter named, community and invite people to the 23 years allows us to move into the hosting, is perceived by some table instead of promising to solve future with confidence.

Momentum Founder and Director Emeritus Walter Hossli (seated) took on a new role at Momentum in 2014, with Jeff Loomis taking on the role of executive director.

MOMENTUM 2014 YEAR IN REVIEW | 3 “Financial empowerment changes lives and builds futures.“ – Stacie Baker

Stacie Baker, Financial Aid Officer at Bow Valley College and financial literacy champion. The Value of Partnership

ow Valley College is Alberta’s help them overcome the financial intervene early in that cycle. She fastest growing college, barriers they face—barriers that found it when she discovered Bcommitted to nurturing can mean the difference between Momentum’s Financial Literacy the lifetime achievements of its finishing school and not. programs. students. It begins by helping Government aid, while helpful Stacie is very clear about the value them succeed in school through and welcome, does not always of partnering with Momentum. the counselling, scholarships and guarantee the students’ financial “Financial literacy is an essential financial aid provided by its Learner wellness. “Students can access life skill. It addresses and resolves Success Services. That’s where financial aid and bursaries,” Stacie root issues, and has a ripple effect Stacie Baker shines. says, “but if they don’t learn how through generations. It empowers Stacie’s passion is to make a to manage the money, they stay in people, brings confidence and difference in people’s lives. She the vicious cycle of debt and debt pride, and is a stepping-stone to wants to see students succeed. collection.” independence. I recommend these That’s why she’s so determined to Stacie wanted to find a way to programs to everyone.”

4 | MOMENTUM 2014 YEAR IN REVIEW Ella Miles Herman recently opened an RESP for her son Hunter at the first Bow Valley College RESP event.

Learning Stacie and her co-workers took Momentum’s Money Management Train-the-Facilitator program in 2013. Today, information about financial literacy is a regular part of conversations about financial aid and bursaries, and coaching is always available. Once a semester, the College offers a one-day Budget Boot Camp free to all new students. Budget workshops are being integrated into regular classes. And evaluations from students have been overwhelmingly positive.

Financial Literacy at Momentum in 2014

Money Money Matters Matched Savings StartSmart Management Free financial literacy A suite of programs ranging from A free two-hour workshop A series of free two- workshops designed around six to 12 months in length, designed that explains the hour workshops on the unique needs of people for people of all ages. Participants importance of saving for budgeting, banking, living with mental health attend free workshops to learn children’s post-secondary credit, assets and or addiction challenges. the basics of financial literacy. For education. Participants consumerism. Offered in partnership every dollar they save, they will earn learn how to open an RESP with Calgary Alternative matching dollars to put toward the and receive funding from Support Services. purchase of an asset or savings. the government. 1,500 154 190 participants 400 RESPs participants participants purchased 266 assets were opened

Building Providing Next, Momentum’s matched-savings programs caught As a parent herself, Stacie was sure that students Stacie’s eye. She understood that building assets is crucial would appreciate Momentum’s StartSmart Program. to moving out of poverty. Stacie put her post-secondary The program helps parents open Registered Education brain to work designing a program that would work in a Savings Plans (RESPs) by using government grants, college context. which are available even if parents do not have their The Matched-Savings Bursary was piloted in the fall. own funds to contribute. Students received money-management training and have Stacie attended Momentum’s StartSmart Training their savings matched by the College 3 to 1. There were and, in November, the College hosted its first annual nine students in that first class and all of them saved the RESP sign-up event. Over 100 people attended and six monthly maximum of $50—“More bang for their buck,” financial institutions helped families open 40 RESPs, Stacie says—giving them each $800 to spend on anything accessing an estimated $40,000 to provide for their that would help their education, from tuition to childcare. children’s future education.

MOMENTUM 2014 YEAR IN REVIEW | 5 Helga Bender offers coaching and support to help people heal from loss.

In the Business of Developing Strength

he year 2006 is a good place when he was hit by a driver going But after his death, Helga could to start the story of Helga 120kph in the right-hand-turn lane. barely walk, never mind run. TBender’s business. Not that it From one moment to the next, Not once in the years and trial was a good year. In fact, 2006 tested the world lost a caring young man, a that followed did the driver express Helga almost beyond bearing. humanitarian who wanted to make any remorse. At first, Helga wanted That year she was diagnosed with a difference in the world. From one to make him bleed. She raged until colon cancer. Her 30-year marriage moment to the next, Helga lost her she saw that the rage would poison was ending. And the unimaginable beloved boy. her. She had to learn to forgive—not happened: Her son Ben was killed. Helga had the sense of a complete to condone, but to forgive. She had Benjamin John Farrant was role reversal in the race of life, to let go of her anger—not of her almost 26 years old when he went Ben handing his mother and his memories, not of her son, but of out one morning for a 75-kilometre sister Colleen the baton that Helga her anger. ride, a regular part of his active expected to be handing him. He had In the following months, although lifestyle. He died almost instantly run his race. Now it was their turn. she didn’t recognize it until later, all

6 | MOMENTUM 2014 YEAR IN REVIEW “When I walked through Momentum’s Dollar for Dollar: door, I was opening the door to my Momentum’s Self- future.” – Helga Bender Employment Program

In the fall of 2014, Momentum contracted J.C.H. Emery, PhD, and R.D. Kneebone, PhD, both professors of economics at the of Helga’s skills and life experiences , to study the Self-Employment Program’s were converging: the seminary Return on Investment. Their report, Evaluating the Budgetary courses she had taken, her Master’s Implications of the Momentum Self-Employment Program, degree in theological studies, and was based on participants who attended the program between now the transformative power of July 2010 and June 2013. You can find a summary of it at: profound grief. www.momentum.org/Publications. When Helga walked through Momentum’s doors in 2013, it was because her expected pension had All numbers below are in 2014 dollars. disappeared. She had to find a way to make a living. “I had to move on Cost of program to Plan B,” she says, “and Plan B turned out to be beautiful.” 323,875 Total in 2014 With guidance from Momentum’s Business Development staff, she Tax revenue increase because of program realized that she had a very viable way to make money. It was a 1,577,000 Estimated stunning revelation. She could step forward from a crushed existence to be a porter, helping others carry the Income gain, average annual load of their own dramatic losses, 7,465 Per participant helping them heal. Her example would demonstrate that healing 522,518 Total across participants from trauma builds resilience and a huge, open heart. Income gain, lifetime across participants With help from Momentum’s Business Development training, 8 million Low estimate Helga then gained a firm understanding of all aspects of 21 million High estimate running a business. She recently launched Helga Bender Coaching Return to community for every $1 invested and already has repeat clients. Today Helga is firmly holding 7.54 Low estimate the baton Ben passed her. She’s running her race with gratitude, joy 19.80 High estimate and grace.

MOMENTUM 2014 YEAR IN REVIEW | 7 Building Careers Together

Momentum’s Training Program Offered since 1991, Momentum’s Trades Training pre-apprenticeship program helps participants step away from survival jobs toward a successful career in the trades. With over 1,000 applications for the 48 spots available every year, Momentum takes great care screening the applicants. We look for participants who are highly motivated and willing to work hard to build a sustainable livelihood. The program includes both theoretical training at Momentum and technical training at SAIT. Once participants have completed their training, our staff members support them by finding work-experience placements with employers like Victor Jensen at Botting.

Victor Jensen (in grey) of Botting Group employs Momentum participants like Mohammad “Mustafa” Noori to work on construction sites like this one at the University of Calgary.

8 | MOMENTUM 2014 YEAR IN REVIEW Trades Today: Labour Market Trends

The dramatic drop in the price of crude oil in the second half of 2014 will significantly affect the economic outlook for Calgary and the province Botting’s Search for Quality of Alberta in 2015, if not longer. Victor joined the Botting group of companies in 1986, where he is Labour demand for all construction currently the chief financial officer. Throughout his career and volunteer trades is expected to fall over the activities, Victor has maintained a focus on sustainable employment. next year. The current economic environment will almost certainly “There is no better occupation than the trades,” he says, “but you need have consequences for unemployed to have an interest in making it your career.” If you’re willing to learn and and marginally employed people, work hard, the rewards will come to you, not only in the form of good pay including Momentum participants. and steady employment but from a sense of accomplishment and pride. With the demand for labour reduced, Victor recognizes employees as Botting’s most valuable asset. He hires the need to have marketable skills for the long term, looking for three qualities: a positive attitude, a strong becomes ever more important, and work ethic and the desire to be a team player. Anyone with those three Momentum has seen a rise in demand qualities has the possibility of building a rewarding and lasting career. for its trades training program for immigrants and Aboriginal persons.

A Great Partnership In 2008, Victor discovered Momentum’s Trades Training program and realized that we screen applicants for the same qualities he finds essential. This mutual understanding forms the basis of our partnership. Momentum teaches participants the life and technical skills they need to succeed. Botting supports the participants when they’re entering the workforce. They also support all their employees by paying the cost of tuition at SAIT during their subsequent schooling towards becoming journeymen. Victor doesn’t see it as a cost, though. “I see it as an investment in the future. All employers have a responsibility to support the apprenticeship program, to see the big picture. We create our own destiny as much as the apprentices do. As boomers retire, we’re all going to need new apprentices.” When it comes to supporting Momentum graduates in the work-experience portion of their training, Victor says the program sells itself. It consistently ensures that participants have the qualities an employer seeks.

A Domino Effect out of Poverty The apprentices’ seven-week work experience is typically unpaid time. It can be seven of the worst weeks of their lives: they’re working full-time and yet not earning enough to support their families. But Botting doesn’t think it should work that way. Apprentices go on the payroll right away. As Victor puts it, “We are hiring people to perform a job, and people should get paid for their work. It’s as simple as that.” Once the probationary period is over, Botting also pays all the benefit plan premiums and contributes to employees’ RRSPs even when the employees themselves cannot make a contribution. With the qualities they bring, backed up by Momentum’s training and support, and hired by a company that respects them and their abilities, Trades Training participants are set up for success.

MOMENTUM 2014 YEAR IN REVIEW | 9 Calgary Tool Library: Five Aspects of Community Economic Development

ommunity Economic Development is a way of Cthinking about the world and your place in it that infuses all aspects of life. At its root, CED is the recognition that healthy communities, resilient economies and ecological sustainability are connected. It is the understanding that effective solutions are rooted in local knowledge and led by community members. Simon Fraser University’s Community Economic Development Certificate builds such local knowledge and leadership by teaching students CED principles, practices and methods that work. 1 In 2014, the certificate program was offered in Calgary for the first Shared and local ownership time through a partnership between The Tool Library—a social enterprise project of the Bridgeland Riverside Community SFU and Thrive—Calgary’s CED Association—was launched in June 2014. The 300-plus individual and organizational Network. members are co-owners of hundreds of tools. The sense of ownership and Twenty-three participants, accountability are palpable, very different from conventional tool rentals. including three Momentum staff members, completed the program. With theoretical study, hands-on experience and the support of a strong community of practice, they “What is most exciting about CED is finding that all kinds of learned how to shape, nurture, people care about community. They don’t have anything implement and promote a CED to prove. They just want to make things better.” dream-come-true. One result? The launch of the – Liam Gordon (image 4) has been involved in the Tool Library right from the start first-ever Calgary Tool Library.

10 | MOMENTUM 2014 YEAR IN REVIEW 3 2 Increased social sustainability The Library has become a community gathering space: neighbours deepen their bonds, strangers get to know each Reduced environmental impact other. It’s a collaboration that brings together businesses, No longer must you (or your neighbour!) buy, store and repair charitable foundations, and individual members and volunteers. every tool you’ll ever need. Members of the Tool Library The whole community benefits and contributes to its success. have access to 500 of the most in-demand household tools. Whether for standard home maintenance, basic car repairs or gardening projects, you’re likely to find the tool you need.

4 Affordable, accessible, inclusive There are fees for membership but the Library wants 5 everyone to be able to access tools, regardless of income level, so fees are waived if need be. Everyone is welcome, whether a tool expert or a novice. Librarians and fellow members are Awaiting you happy to help you figure out what you need and how to use it. Come see for yourself! Visit the Tool Library online at www.calgarytoollibrary.org, or drop by the tool shed in the lower level of the Bridgeland Riverside Community Association at 917 Centre Avenue NE.

MOMENTUM 2014 YEAR IN REVIEW | 11 I think of Momentum as a “teach-a-man-to-fish” organization. It doesn’t simply give people handouts to make a temporary difference in their situations. Instead, it uses the best practices of Community Economic Development and pays attention both to the economic bottom line and to the very important process of building community and reducing isolation. The social aspect of their work is crucial. Momentum’s vision about how to build economic and social resilience is backed up by consistent, measurable successes. Their programs are well-rounded Cristina Lopez—daughter, wife, mother and Momentum supporter. and well-executed, resulting in participants getting what they need. They graduate with tools, skills and self-worth and, just as important, The Power of Contribution they establish a support network. I don’t direct the dollars I give. y parents immigrated to It’s not that I don’t care how my Canada from Spain in “I live for those donations are used or that I don’t Mthe 1960s. They came pay attention. On the contrary, for the same reason most people Momentum stories, it’s that I’ve learned to trust do—and, it wasn’t for the seven those success stories. Momentum’s ability to execute its months of winter. They came and vision in the way that works best. decided to stay because of the They illustrate what I choose Momentum because opportunities here. my dollars are doing.” its values echo my own: Working They worked hard, long hours. My toward a better future for the next father is in his 70s now and the habit – Cristina Lopez generation, building a supportive of 14-hour days hasn’t left him yet. community, and believing that This was a time when banks were everyone deserves a chance. charging interest rates of 15 percent may just need a little help along the My siblings and I inherited and higher, so setting up a new way. They are extremely motivated our parents’ work ethic and we business was difficult, especially for to succeed. I support Momentum recognize that they worked and an immigrant. But they had some because it enables people to use that still work hard so that they could support, they were lucky, and their motivation to fulfill their dreams. provide us with a better life. And hard work paid off. What’s important for me is the they succeeded. I contribute to The stories I hear from chance to make an impact. I’ve Momentum to help other parents Momentum’s participants remind been really fortunate. I have had a who feel the same way. It’s a great me of my parents’ story. I hear lot of support that has led to lots of return on investment. stories of people who think about opportunities. I’m grateful that I can Cristina Lopez is VP Corporate Development their children’s futures, who are afford to help others have similar at PrairieSky Royalty and a proud financial willing to work tirelessly and who opportunities. contributor to Momentum.

12 | MOMENTUM 2014 YEAR IN REVIEW To all the people who invest in Momentum’s work, including those who would like to remain anonymous, thank you.

Financial Partners Nan & Ian Douglas Amelia Lionheart Savanna Energy Services Corp. 5 Star Technical Services Inc. D.R. Ashford Fund at The Calgary Foundation Jeff & Anna Loomis Franco & Barbara Savoia Annie Abdalla Al Duerr & Kit Chan Jon & Joan Loomis Seidlitz Inspection Ltd. Malcolm & Shannon Adams Brent & Kari Enns Durksen Cristina Lopez & Damon Davis Carol & Larry Shaw Alberta Capital Market Foundation Bruce Edgelow Brian Low James D. Simon, Cornwall Wealth Management Alberta Health Services Edmonton Community Foundation Kin Ko Luu Richard Smith Alberta Housing & Urban Affairs Elevated Learning Academy Inc. Heather MacDonald Roger & Lorna Smith Alberta Human Services Employment & Social Development Canada Jamie & Brenda Mackie Soderglen Ranches Ltd. Sharilyn Amy Ed & Bert Enns Mackie Wealth Group David Somerset Glen & Brenda Andrews Maria Victoria Eserjose Macquarie Group Foundation M.A. Stanfield Marichu Antonio & Cesar Cala Peter & Mary Esposito Leigh & John McAdam James M. Stanford ARC Financial Corp. Caroline A. Fairbrother Donna McBride Lance Farkas Linda McFarlane Anat Stapleton of HouseProud Jennifer Artinger Mortgages Inc. Charlene & Tom Fesnoux Amanda McKellar Artisan Stucco & Restorations Ltd. Wayne & Martha Stewart Jill Fink McLachlan Famliy Brendan Baines Andrew & Allison Stordeur Marion Firman Gary McNamara Jeremy Barretto Strength in Numbers Fund Edel Benary First Calgary Financial Wendi Meyer at The Calgary Foundation Arnold & Linda Bergen Charles Fischer & Joanne Cuthbertson Eleanor & Jack Mintz David Stuart in Honour of Pat & Birchcliff Energy Ltd. Doug Frenette Laura Mislan Sherrold Moore David & Leslie Bissett John & Robin Galloway Martin Molyneaux & Deborah Yedlin Corinne Tessier Nolan & Carol Blades Galvin Family Fund at Nymphna Montesclaros Tracey & Chris Theal The Calgary Foundation BluPlanet Recycling Inc. Bruce Montgomery The Canadian Association of Richard Gorecki Petroleum Producers Francis Boakye Geri & Alan Moon The Gray Family The Welty Family Foundation David Boone & Jane Poole Andrew & Rachel Moore Jason Grelowski Donald & Norma Thurston Brian & Jennifer Boulanger Pat & Sherrold Moore HAB Family Foundation Mike & Renae Tims G. C. Boyd Linna Morgan Jackie Halpern Gabi Townsend Neal Brandemark Bob & Denise Morrison Catherine Harder Trevor Ulmer Braun Valentine Professional Corporation Mick Mulloy & Marnie Schaetti Courtney Hare United Way of Calgary & Area Eleanor & Lawrence Bryan Barry & Val Munro & Family Peter Harrison Viewpoint Foundation Rachel Bryant Nancy & Bill Hay Family Fund at Marc & Audra Hebert The Calgary Foundation Vogel LLP The Calgary Foundation David Heinze Natural Factors Donna Wallace Calgary Learns Susan Herman Nexen Energy, a CNOOC Limited Company Michelle Wan Callow & Associates Irene M. Herremans NWP Incorporated Wanklyn Family Fund at Canadian Women’s Foundation Jenny & Allan Hiebert John & Evelyn Ody The Calgary Foundation Carrera Foundation Brian & Alexandra Hill Kim Orlesky Western Economic Diversification Rose Casey Andrew Hollinger Dustin & Paula Owen Gerry Weston Dr. Charlotte S. Caton Walter & Sybille Hossli Nimish Patel Bruce & Cathy Williams Lisa Caton Rebecca Hotchkiss Jeff Pearson Jim Williams Chris & Joe Ceci Hunter Family Foundation Allison Pepler Richard & Sandy Willott Cenovus Energy Inc. Dale Huntingford & Virginia Dobson David Pickersgill Michael Wing CentsAbility Dave & Lottie Hutchinson Karen & Greg Pocherewny Shirley Zhang Cequence Energy Ltd. Sean Hynes Henry Popoff Xuebin Zhao Jane Chen Immigrant Access Fund Society Linda & Greg Powell Legacy Builders CIBC Charlie & Del James QV Investors Inc. City of Calgary David & Leslie Bissett Ed Kamps RBC Foundation John Cobb & Lorene Anderson Ted Braun & Karen Valentine Kimberley Kelly Rawlyk Developments Inc. Barb & Bill Davis Carolyn Davis Donna & Marshall Kennedy James Rennie Carolyn Davis Walter & Sybille Hossli Cam Kramer & Liana Thorburn Rocky Credit Union Lorraine Davis Dale Huntingford & Virginia Dobson Doug & Lisa Laird Bob & Dolores Saarinen Scott Decksheimer & Kara Exner Jeff & Anna Loomis Maria Lamas Jenny Saarinen & Garth Kennedy Jim Dinning & Evelyn Main Tracey & Chris Theal Marc Lattoni David & Sheila Sandmeyer Susan & Ross Douglas Donald & Norma Thurston Steve Laut & Lori Egger Lorna Sarah Anonymous

MOMENTUM 2014 YEAR IN REVIEW | 13 Lending a Voice for Change

hen yet another payday lender was slated to open on Calgary’s 17th Avenue SE, the residents began to mobilize. It seemed to Wthem that the neighbourhood was already adequately served with the existing six payday lenders on that stretch of the Avenue. These residents understood that payday loans, which are excessively expensive, are predominantly targeted at the working poor—people who often have no other access to credit. They wanted to find a way to offer alternatives. The residents formed alliances with local organizations and businesses, a financial institution, social workers and researchers. Together, they established the Rise of the Cash Store committee. Its goal was to slow the spread of such businesses and develop alternative services. Momentum was happy to put our public policy expertise to work on the problem. Meanwhile, the Enough for All strategy—an initiative driven and developed by Calgarians to reduce poverty in our city—was before City Council for approval. One of the things the strategy advocates is the development of safe, affordable and accessible financial products and services. Those are precisely the services that the Rise of the Cash Store committee wants to see in their community. In the fall of 2013, Enough for All was unanimously approved by , bringing scale and broader political purpose to the work of the Rise of the Cash Store committee and others around the city. We at Momentum are proud to contribute to moving this work forward and are grateful for the support of City Council. As part of these initiatives, Timothy Afolayan and Mike Brown have worked together to fight payday lending practices. Timothy is a Momentum Participant Ambassador and a graduate of the Fair Gains matched-savings Mike Brown and Timothy Afolayan program. Mike is the Public Policy Coordinator at Momentum. We sat talk about payday lending. down with them recently to get their perspectives.

14 | MOMENTUM 2014 YEAR IN REVIEW What is your experience of of debt and re-borrowing. In fact, the Mike: Most of the people who resort payday loans? average borrower ends up taking to payday loans are working, they out eight loans before being able to have families. They’re borrowing Mike Brown: I’d seen the ads on break the cycle. money for necessities. They’re not TV, of course, but I’d never been in doing it on a whim. Timothy: My paycheque was about a spot where I needed one myself. People living on low incomes are $900, so there was no way I could I’ve learned about them much more definitely the target market for pay back $720. I had no choice but to since Momentum took them up as a payday lenders. policy issue. borrow the $600 again so I could pay my rent and buy groceries. This went There are 86 payday-loan locations Timothy Afolayan: For me, it was on for 10 months. in Calgary, and 85 percent of them are in neighbourhoods with above much more personal. I came to Every month, I was paying $240 in average rates of poverty. Canada on a scholarship. Just as fees and borrowing $600 again. the scholarship ended, my parents’ At Momentum we’re working In the space of 10 months, I had to situation at home in Nigeria changed with our community partners to pay $2,400 in fees on a $600 loan. and they could no longer afford to promote policy options at all levels help me. How do you break the cycle? of government. And we’re working I was working but I couldn’t afford with financial institutions to create rent so I was homeless for a while. Timothy: All I can say is thank alternatives that are quick, safe, fair When I got a better job, I thought goodness for income tax refunds! and affordable. We don’t just want I would be okay. But I was living But, you know, I’d probably still be to get rid of people’s last option; we paycheque to paycheque, spending in trouble if I hadn’t learned how to want to give them better ones. handle my money. too much and not saving at all. Timothy: As for me, I’m speaking Momentum’s programs helped me Then my mother got very sick. I out. I want other people to know understand how money works. I needed to send money home for her what I know now without having to learned to save and I’m still saving. hospital expenses but I had no credit. learn it the hard way! I’ve opened RESPs for my two girls. Banks wouldn’t help me. So I had to borrow $600 from a payday lender.

How did the loan work? Cost of borrowing $600 Timothy: Well, that loan felt like a What you would owe at the end of 10 months real life saver at the time. But it didn’t turn out that way. I had to pay $20 3,000 for every $100 I borrowed, so I owed $120 on the $600. $3,000 But you can’t just pay back a portion. You have to pay back the whole thing. So I took out a $600 loan, 2,000 and two weeks later, I had to pay back $720. Mike: They’re called payday loans because they’re designed to be paid back when your next paycheque 1,000 comes in. But the reality is that people resort to payday lenders because they $650 $760 can’t make ends meet. That pattern doesn’t change between taking out the loan and the next paycheque. Line of Credit card Payday The loan may help at first but it ends credit cash advance loan up trapping you. It’s a vicious cycle 9.9% 28% 500%

MOMENTUM 2014 YEAR IN REVIEW | 15 Building on our Solid Foundation

rom his new perspective reason he feels optimistic about the as executive director of “By every measure— future. FMomentum, Jeff Loomis At the core of Momentum’s sees the past year as a clear and Momentum success are the programs. We demonstration of resilience. Despite measures just about will continue to evaluate, refine a difficult beginning of the year due and improve them to find the best to revenue challenges, Momentum everything!—this year ways to help people get good jobs, rebounded strongly, relying on a skills training and micro-loan very solid foundation was a success.” opportunities. Over the years, quality has – Jeff Loomis We look forward to working with been built into every corner of Vibrant Communities Calgary to the organization. Highly skilled guide implementation of Enough and motivated staff members We know that we cannot make a for All—Calgary’s poverty reduction use a proven economic approach big enough change without working strategy. Leveraging our expertise to poverty reduction. In 2014, with others, so we continued to and experience, we will work with Momentum’s well-designed focus very successfully on our our partners to advance Financial programs worked with over 4,000 community leadership work. Empowerment activities so that participants who learned a trade, We trained staff members in 41 more Calgarians have the assets launched a business, developed organizations to use our Financial they need to thrive. For example, we money management skills and built Literacy curriculum, and they then will be working with First Calgary assets. delivered these programs to 1,155 of Financial in the development of the All levels of the community their own participants. We worked Cash Crunch Loan, which is a safe and government showed strong with government and businesses and affordable alternative to payday support for the work we do together. toward policy change, notably loans. Provincial government funding around the issue of access to safe, The solid foundation that that was cut early in the year was affordable financial services and the Momentum has built with replaced and even augmented restriction of payday lenders. persistence and consistency over by the end of the year. It was the Our success in 2014 validates time provides a stable, resilient most successful year ever for fund our confidence in the work we platform as we move into the development, with donations large do. It validates Jeff’s belief in coming year. Jeff feels blessed by the and small making it possible for us the economic and social value of opportunity to continue building on to move forward Momentum’s mission, and is the that foundation.

Jeff Loomis (seated) has seamlessly stepped into the role of executive director at Momentum with support and guidance from Walter Hossli, Founder and Director Emeritus.

16 | MOMENTUM 2014 YEAR IN REVIEW “And no one is a bigger supporter of Jeff than Walter.” – Jim Gray “I’d say check Momentum out. They do amazing stuff, both helping people get on with their lives and being an outlet for donors who want to effectively help Calgarians.” – Dale Huntingford

Momentum is a registered charitable organization: Momentum Community Economic Development Society is a #88379 3218 RR0001 community organization that has been in Calgary since 1991. 16-2936 Radcliffe Dr SE, Calgary, Alberta T2A 6M8 Momentum envisions a Calgary where every person can have a sustainable livelihood and contribute to their community. This report was written by Marnie Schaetti of RaiDo Dynamics using strategic communication for collaborative social change. www.momentum.org Photography by Amanda Sneddon Photography.