Annual Report 2014

Creating better versionsof ourselves.1608 Walnut St., 10th Fl.

Philadelphia, PA 19103

P 800.989.2227F 215.563.7020W clari�.org

NONPROFIT

COMMUNITY PARTNER

Financial literacy is alifelong transformation.

Clari� is an a�liate of

Patty Hasson, President

Our philosophy: Invent, stumble, reinvent and succeed.

When you think about it, Clarifi’s basic purpose hasn’t changed in 50 years. We help people overcome financial calamity, build credit worthiness and create secure futures. But financial troubles seem to create new ways to affect people. So we find new technologies and educational strategies to keep up. We continually reinvent our business.

Our staff is relentless in the evolution of our solutions. We generate new partnerships with like-minded organizations. We invest in new financial planning tools for everyday people. It’s all how Clarifi helps people reinvent the way they live and transform their relationship with money.

Oh sure, we stumble—just like our clients. And like successful clients, we learn from every stumble and move on smarter, with fresh ideas.

Reinvention includes our recent affiliation with Public Health Management Corporation (PHMC). Our friends there have allowed us to integrate new ways to help people change

their lives, as well as get the word out to more people who need us.

In our offices, we challenge each other to empower transformation in ways that weren’t possible a year or two ago. On these pages you’ll hear from a few changemakers in our organization and from a few clients who have been inspired to create better, more financially healthy versions of themselves.

This is why we come to work every day, and why I have such gratitude for those who support our mission to help people secure their most important assets. I invite you to join us as we continue our journey of reinvention.

— Patty Hasson, President

Clarifi’s culture encourages risk taking. We give ourselves permission to fail, and to learn from our failures.

Markita Morris-Louis, Senior Vice President of Community Affairs and General Counsel

“We are always seeking to be better versions of ourselves.”

A lot of little things got me in a lot of trouble. A lot of little victories got me out.

We’re not the heroes, our clients are the heroes.

Elaine Jones, Counseling Program Manager,Financial Empowerment Centers

Edward M., Client

Edward was so deep in debt he couldn’t imagine a way out; let alone how to buy a home. “I kept saying it was just this and just that,” says Edward. “But it was a whole lot of ‘this-and-that.’ They added up to a world of trouble.” He found his way out at one of our Financial Empowerment Centers. Edward learned how to “reverse engineer” hislifestyle habits.

Together, Edward and his counselor made a checklist of things to change. Edward says “My counselor was so enthusiastic, and kept encouraging me to do the next little thing

and the next. I now have a home thanks to doing one little thing at a time.”

Through our partnership with the City of Philadelphia, our pioneering Financial Empowerment Centers are reinventing the way people achieve financial literacy. People like Edward set specific goals under our guidance, check off “little victories” and change their financial habits—one by one. Credit scores go up, budgets become lifestyles, and rent, utility and city taxes get paid. People who were down and out are now up and coming.

We’re in the final year of a three-year grant funded by Bloomberg Philanthropies and Cities for Financial Empowerment. What we’ve learned in the past two years now helps thousands of people learn new ways of regaining control over their lives.

One good thing can lead to another. Confidence is raised one little victory at a time.

Hope Katz, Counseling Manager

Debt reduced by $4,231,085

Average credit score

increase: 42 points

4,335 Unique clients

Financial Empowerment Centers are Transformational Centers

Karen G., Client

Clarifi and my coach gave me a way to tackle my debt. I feel free in a way I did not feel four years ago.

One-on-one counseling and volunteer coaches are “classic” Clarifi solutions that help folks in debt become better versions of themselves. Our NFCC Client of the Year finalists (and heroes), the Ostroffs, paid off nearly $90,000 in credit card debt. “Our counselor really put us on the right track. We changed every spending habit we had.”

We set Karen up with a financial planner who moonlights as a volunteer Clarifi coach. He worked with her for six months and kept her on point. This was all part of our unique 360˚ mix of discipline, motivation, commitment and support. “I’ll never feel the terror of debt again,” says Karen.

Counseling & Coaching Inspire Immersive Clarifi Boot Camps

This kind of success inspired us to create six-week boot camps, where we connect clients to the dual support of counseling and personal coaches. These are intensive, immersive debt management experiences with plenty of communal support. Think of Clarifi boot camps as “Version 2.0” of our ongoing, classic counseling.

Total Counseling Sessions Held for 16,289 Clients

Credit, Debt and Budgeting 10,433 63%

Bankruptcy 579 4%

Housing Appointments 5,277 33%

HousingCrisisAppointments 3,760

Pre-Purchase 948

ReverseMortgageforSeniors 434

Over $6.2 million of Debt Paid

back on DMP

DMP=DebtManagementProgram

In follow-up surveys, 80% of clients reported improvement in 3 or more financial capabilities:

Financial Stress Savings Credit Awareness Money Management

Great outcomes help set us apart.

Anita Brown, Chief Operating O�cer

The results of what we do inspire our industry, not just our clients. We participate in independent studies and research in order to improve financial literacy initiatives all over the country. The Federal Reserve Bank of Philadelphia selected Clarifi to provide housing education and counseling to first-time homeowners for a five-year study. The newly published study shows participants are more likely to qualify for a mortgage, have higher credit scores and enjoy

successful home ownership experiences. In collaboration with Innovations for Poverty Action (IPA), behavior researchers from Dartmouth and Yale Universities studied the effects of technology tools on Clarifi’s debt management clients. Early results report the use of our small, low-cost nudges, like texting and other peer-support reminders, can encourage positive financial habits with our clients. Yes, we can report on more “little victories” that transform lifestyles.

Health professionals see a potent link between one’s financial health and overall personal health. So we’re excited about our new work inside PHMC’s Rising Sun Health Center in North Philadelphia.

Here, we offer patients a new kind of prescription to complement their health care.

Clarifi now delivers money management guidance to those struggling with health challenges. “Reducing financial stress reduces personal stress. Financial health is an essential ingredient in overall personal wellbeing,” says Megan Kiesel, Senior Manager of Program Development at Clarifi.

Financial Health as a Key Factor in Personal Health

The Evidence is in About Clarifi’s Real-World Effectiveness

Technology changes the way people interact. We want our clients to engage with our solutions at a time and place that works for them. Scott Karol, Vice President, Counseling and Program Evaluation

Mohammed N., PhD Candidate, Drexel University

Just like my lab experiments, not everything I did to fix my credit worked right away. I had to go back and look and fix the problem.

This year Clarifi@Work will be a valuable benefit for employees of Home Care Associates (HCA). This pioneering partnership incorporates our financial education and counseling into HCA’s benefits package. Together, we’re out to

eliminate financial challenges that can affect job performance and turnover rates. Financial literacy at work is a win-win for employees and employers.

Community outreach is essential to our mission. We are always teaching financial know-how to different groups in new places— like Drexel University.

Mohammed, a third-year PhD candidate and president of the International Graduate Student Association, asked us to visit campus and lead a workshop about credit. As he says, “We didn’t know the little things important for a good credit score. Or when you go for a job interview, good credit can be important.”

Lots of light bulbs went off for even the brightest grad students, and Mohammed raised his credit score 80 points by trying things, fixing what didn’t work at first and plugging away—just like in his chemistry lab. And all with our guidance.

“Knowledge is power,” Mohammed says. “The more you know about money—the better. We plan to make this Clarifi graduate course a regular event on campus.”

‘Knowledge is Power’ in Community Outreach

Financial Literacy as an Employee Benefit Benefits Employers

Financial Literacy Education for 25,318 People

Workshops Hosted 467 Workshop Participants 6,044 Additional Outreach Events 433

Roger Wilson, Chairman, Clari� Board of Directors

Patty Hasson’s not just a great leader. She’s a great forward thinker, and keeps our board thinking deep into the future.

Our board of directors brings a wealth of financial and professional smarts to the table. Most important, the members bring the commitment of their respective companies and organizations to our mission of lifelong financial literacy. We love them for that.

Our Board Drives Our Success

Board OfficersPatty Hasson Clarifi, PresidentRoger Wilson Campbell Soup Company, ChairmanPeter Conners CFA Society of Philadelphia, Vice ChairmanStephen Delaney Deloitte, TreasurerKathleen Leonik Barclays, Secretary

Board of DirectorsWayne Anglace Delaware InvestmentsBob Bernard ComcastPeter Burns Heartland Payment SystemsJohn Carey CitiCardEllen Crain Susquehanna BankJoel Dickson The Vanguard GroupTine Hansen-Turton PHMC

Tim Hunter Radian Guaranty Inc.Denise Mason ConsultantMark Parsells Global Debt RegistryAllan Stevens Franklin Mint Federal Credit UnionCatherine Ulozas Drexel UniversityKaren Walters Independence Blue Cross

American ExpressAscena Retail Group Inc. Bank of AmericaBank of America Charitable FoundationBarclaysBeneficial Bank Bloomberg PhilanthropiesBoeing Employees Community FundBoeing Global Corporate CitizenshipCamden County Dept. of Econ. and Workforce DevelopmentCampbell Soup CompanyCapital OneCiti FoundationCitibankCities for Financial EmpowermentCitizens BankComcastConsumer Federation of AmericaCustomers BankDelaware County CouncilDeloitteFirst Niagara BankFranklin Mint Federal Credit UnionFulton BankGlobal Debt RegistryHaverford Trust CompanyHSBCIndependence Blue CrossJP Morgan Chase

KML Law Group, P.C. Macquarie GroupM&T BankNational Community Reinvestment CoalitionNational PennPECOPennsylvania Housing Finance Agency PNC FoundationPoints of Light FoundationPublic Health FundPublic Health Management CorporationRadian Guaranty Inc.Republic BankRML Investments Inc. Santander BankState FarmStradley Ronon Stevens & Young LLPSun National BankSusquehanna BankTD Charitable FoundationThe Bancorp BankThe Pew Charitable TrustsThe Philadelphia FoundationUnited Way of Chester CountyUnited Way of Greater Philadelphia and Southern New JerseyVantageScore SolutionsWells FargoWells Fargo Housing FoundationW.K. Kellogg Foundation

Partners, Funders and Friends of Clarifi

2014 Client Demographics(includescounselingclientsandeducationparticipants)

9% responded “Yes” as Hispanic/Latino

EthnicityGender

33%

64%

Marital Status

28%Married

Income

50%Extremely

LowIncome

17%Very LowIncome

17%Low

Income

7%ModerateIncome

9%Not

Low-Mod.Income

48%Single

17%Divorcedseparated

5%Widowed

Asian

Black

Black/African American & White

Latino/Latina

White Caucasian

Other/Other Multiple Race

Chose Not to Respond/ No Response

2%

50%

2%

6%

30%

4%

6%

“Other” = 2%

No Response = 3%

18-25

26-35

36-45

46-55

56-65

66+

No Response

Age Range

22%

17%

19%

20%

10%

7%

5%

2014 Financials

Region

*All donations, fundraising event, contributed service & non-oper. revenue grouped as “Other”

Revenue

Government Contracts

Grants

Earned Income

Client Fees

Creditor Fees

Other*

34%

39%

11%

7%

5%

4%

PENNSYLVANIA 77%

Top counties

Philadelphia 73%

Delaware 11%

Montgomery 6%

Chester 4%

Bucks 3%

NEW JERSEY 14%

Top counties

Camden 37%

Burlington 30%

Gloucester 12%

Atlantic 6%

Mercer 4%

DELAWARE 7%

OTHER 2%

Total: 6.2 million

Expenses

Program andServices

Administration& Management

Fundraising

83%

12%

5%

2014 Client Demographics(includescounselingclientsandeducationparticipants)

Annual Report 2014

Creating better versionsof ourselves.1608 Walnut St., 10th Fl.

Philadelphia, PA 19103

P 800.989.2227F 215.563.7020W clari�.org

NONPROFIT

COMMUNITY PARTNER

Financial literacy is alifelong transformation.

Clari� is an a�liate of