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Crisis Assistance Ministry

Crisis Assistance Ministry

Charlotte, NC

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Can Baby Bonds Ease the Racial Wealth Gap?

The impacts of wealth inequalities are quite evident every day at Crisis Assistance where we see people, through no fault of their own, struggling to pay rent, keep the lights on, and afford clothes for their children. In a community that is majority white, the overwhelming majority of people who seek help with basic needs here are Black and Hispanic. But the reality is that the nonprofit sector can only do so much to address the long-term struggles of the economically disenfranchised. Systemic policies have created and sustained the continued wealth gap, and it will require a systemic approach to reverse that impact.

January 25, 2023

This month, while some of the wealthiest individuals in the world gathered at the annual World Economic Forum in Davos, the charity organization Oxfam released a report detailing how, from the start of the pandemic through the end of 2021, the wealthiest 1% across the globe amassed two-thirds of all new wealth created. This startling concentration of wealth exists in the United States as well. Here, those wealth disparities manifest themselves acutely across racial lines.

This is certainly evident in Charlotte-Mecklenburg, where the effects of the racial wealth gap are visible daily. The fact that more than 8 out of 10 people seeking assistance at Crisis Assistance Ministry are people of color is no coincidence. More than 150 years of policy-induced systemic racism have resulted in the current inequities.

But what if local government could act right now and drastically reduce the racial wealth gap in just a generation?

RACIAL WEALTH GAPS

Nationally, the median wealth of white households is ten times that of Black households and eight times that of Hispanic households.  Here, in Mecklenburg County, the disparities persist: one in three Black and Hispanic families in Charlotte have a negative net worth, meaning that their total debts exceed the value of their assets. Only one in seven white households in Charlotte experience this. Black and Hispanic households also experience much higher rates of asset poverty, meaning that they lack sufficient wealth to provide basic needs for three months.

The rate of asset poverty among Black households in Mecklenburg is 42.9%; for Hispanic households, 40.7%; for white households, only 15.5%.

By nearly every measure, white families in Mecklenburg County are far better off than Black and Hispanic families. These divides are the product of decades of racial injustice and unfair policy practices in both the private and public spheres.

BABY BONDS

How can we remedy this in the present day? One public policy with potential is commonly referred to as Baby Bonds.

Baby Bonds, in essence, are government-funded trust accounts set up for newborn infants, specifically those born into asset-poor households. The seed money put into the account appreciates in value until the child turns 18, at which point the account becomes accessible to use for a major asset investment like a college education or home ownership. The ultimate goal is to build long-term wealth for those born into economically disadvantaged families. Senator Cory Booker recently proposed the American Opportunity Accounts Act (AOAA), which would provide every American child with $1,000 in an account at birth, plus up to an additional $2,000 per year depending on the income level of the child’s family.  

One study from Columbia’s Center on Poverty and Social Policy examined how a hypothetical Baby Bonds program, similar to Booker’s, would have affected wealth inequalities among 18–25-year-olds in 2015. The study found that the program would lower the wealth gap between white and Black households significantly: moving from a difference of more than 10-fold to just 1.4.

While this policy uses income, rather than race and ethnicity, as an eligibility marker, the intricate relationship between race and income potential in the U.S. means it could still do a good job of narrowing the racial wealth gap.

BABY BONDS FOR CHARLOTTEANS?

The impacts of wealth inequalities are quite evident every day at Crisis Assistance where we see people, through no fault of their own, struggling to pay rent, keep the lights on, and afford clothes for their children. In a community that is majority white, the overwhelming majority of people who seek help with basic needs here are Black and Hispanic. But the reality is that the nonprofit sector can only do so much to address the long-term struggles of the economically disenfranchised. Systemic policies have created and sustained the continued wealth gap, and it will require a systemic approach to reverse that impact.

Programs like Baby Bonds apply the power of policy to reduce racial wealth disparities in order to create a more equitable community for us all. While most Baby Bonds programs have been proposed at the federal and state level, Mecklenburg County could consider piloting a bond program for its residents. By creating such a pilot and carefully tracking its outcomes, Mecklenburg County could become a national leader in championing Baby Bonds as well as fighting racial wealth inequality.

Over time, systemic approaches like this could get Crisis Assistance Ministry closer to our ultimate goal: closing our doors because people living in Charlotte-Mecklenburg can meet their basic needs without help from agencies like ours.

Filed Under: Advocacy Tagged With: Asset Poverty, Baby Bonds, Charlotte-Mecklenburg, Columbia's Center on Poverty and Social Poverty, Cory Booker, Mecklenburg County, Racial Wealth Gap, Systemic Racism

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  • 500-A Spratt St.
    Charlotte, NC 28206
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🎓🎓🎓Look CLOSELY at this video. You'll see a group, but each extraordinary individual within it carries a story of resilience that knows no bounds. As we congratulate our newest customer advocate class, we're also honoring their unique experiences and eagerly anticipate their advocacy moving forward. Collectively, their stories powerfully illustrate the challenges many families navigate when seeking help during a crisis.

This year, as we mark our 50th Anniversary, our Customer Advocate's #LivedExperiences are only a few of #50StoriesofCrisisAssistance Ministry we're sharing— demonstrating stories of resilience and the support that helps individuals regain stability.

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Happy Independence Day as we celebrate freedom in all its forms— including the freedom to pursue housing and financial stability! We cheer on all those working hard to build a secure future for themselves and their families. #FinancialFreedom #IndependenceDay

Crisis Assistance Ministry will be closed on July 4th. We will resume normal business hours on Saturday, July 5, 2025.

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Inspired! Last week, the Middle School Ministry from Thomas Road Baptist Church (Lynchburg, VA) @ThomasRoad traveled over 200 miles to serve our Mecklenburg County neighbors.

Despite the heat, these young people delivered 150 snack packs and cold water and meticulously stocked the Free Store with dignity. 

There's always a place for volunteer groups here. Head over to our link in bio to sign up.

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"It could have been way worse... I was on the emergence of a deployment and I couldn't get any help here from family and friends."

George, an active service member, courageously shares his #LivedExperience of facing a financial crisis while deployed. He found a lifeline at Crisis Assistance Ministry, securing vital rental and utility assistance. Since 1975, we have been here lifting up our neighbors so that no one has to face financial hardship alone.

For 50 years, neighbors like George have found what they needed at Crisis Assistance Ministry to achieve financial stability. His is just one of #50StoriesofCrisisAssistance Ministry we're sharing in recognition of #50yearsofhopeCLT.

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🚨ATTENTION: A new bill in Congress, H.R. 1, proposes significant cuts to vital safety-net programs for Mecklenburg County families. This could impact food security, healthcare, and energy assistance for our most vulnerable neighbors.

At Crisis Assistance Ministry, we believe everyone deserves basic dignity. Learn why these potential changes matter to our community and how it may affect you.

➡️ Tap the link in bio for full details.

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Full circle moments! ✨ In our 50th Anniversary year, we were so honored to welcome students from @queensuniv, carrying forward a legacy started by our founder, Queens alumna Caroline Love Myers!

This amazing group spent their afternoon meticulously stocking our Free Store and processing incoming donations – turning generous gifts into dignified essentials for families in crisis.

These students reminded us that these shelves stay full because of YOU, our incredible material goods donors! Your contributions directly empower families. Want to keep this legacy of compassion thriving? Learn how to donate goods: Link in Bio!

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🥵 We are feeling the Charlotte heat! For many neighbors, staying cool isn't just about comfort—it's critical. Extreme heat disproportionately impacts lower-income communities due to factors like urban heat islands and historical disinvestment.

Here at Crisis Assistance Ministry, the community comes together to help households pay their utilities, ensuring families can have air conditioning or running fans during these sweltering days. You can be the neighbor to help keep the electricity on! Link in bio to learn more and give.

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Twenty-five years of heart. 25 years of steadfast leadership. ✨ We're honoring our CEO, Carol Hardison, for a quarter-century of dedicated service to Crisis Assistance Ministry and our neighbors. It's remarkable, especially considering she's only the second CEO in our 50-year journey!

Want to help us celebrate this amazing milestone? Flood our comments with a "Happy Anniversary Carol!" 👇Don't forget to tag her @carolinthehouse
#HappyAnniversaryCarol #Leadership #CommunityHero #CrisisAssistanceMinistry #Charlotte

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Meck County and the City of Charlotte have opened cooling stations across the area, including:
•	Day Service Centers
•	Recreation & Senior Centers
•	Charlotte Mecklenburg Libraries
•	Spraygrounds, Pools & Beaches!

PLUS, CATS (@ridecats) is offering FREE transportation to cooling stations.

This is critical for a variety of populations, including those experiencing homelessness, seniors, and families struggling with utility costs. Access to cool spaces and resources like fans (available from Mecklenburg County DSS for eligible residents!) can literally be life-saving.

KNOW THE SIGNS: Heat illness is preventable! Drink water, limit activity, and seek cool spaces. Spread the word! Visit @mecklenburgcounty for more details.

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