Driving Impact: Truist Foundation Invests in Scaling, Piloting Nonprofit Initiatives

Rhea-AI Summary

Truist Foundation has donated $4 million in grants to 11 nonprofits nationwide to support economic mobility and small businesses in underserved communities. The funding addresses challenges faced by nonprofits, as 71% report increased service demand while 42% lack adequate resources in 2024. The initiative supports organizations like Project Equity, which helps transition businesses to employee ownership, and LiftFund, which provides affordable small business loans and technical assistance. LiftFund's Dream Makers Fund offers 0% interest loans and has already supported five businesses, including pressure washing and carpentry ventures.

Positive

• Provided $4 million in grants to support 11 nonprofits
• Implementation of Dream Makers Fund offering 0% interest loans to small businesses
• Successfully supported five businesses through LiftFund program

Negative

• None.

Insights

Financial Analyst

The $4 million grant distribution by Truist Foundation, while commendable for corporate social responsibility, has minimal material impact on TFC's financial position given its $56.8 billion market cap. The initiative focuses on small-scale community development through nonprofit partnerships, which may provide modest long-term benefits in terms of community goodwill and potential customer base expansion in underserved markets. The program's emphasis on small business support through LiftFund's zero-interest loans and Project Equity's employee ownership transitions could strengthen TFC's presence in emerging markets, but the financial impact is negligible for investors. The PR value and ESG considerations are positive but not significant enough to influence stock performance.

Through strategic funding, Truist Foundation helps drive economic mobility and strengthen small businesses in diverse communities.

NORTHAMPTON, MA / ACCESSWIRE / November 4, 2024 / Nonprofits are tackling a variety of critical issues like female empowerment, mental health, and wealth building for underserved groups. But scaling impactful programs remains a challenge. In 2024, 71% of nonprofits have seen an increase in demand for their programs and services, while 42% report a lack of adequate finances or resources.

To address these challenges, Truist Foundation recently donated $4 million in grants to 11 nonprofits across the country that are using innovative programs to create career pathways and support small businesses in underserved communities. This concentrated impact aligns with the Foundation's strategic pillars: building career pathways to economic mobility and strengthening small businesses.

"Proximity to a community's challenges is a leading indicator of whether the proposed solutions are relevant, effective, and sustainable," says Lynette Bell, president of Truist Foundation. "We've found that nonprofits often best understand the communities they're operating in, and by partnering together, Truist Foundation can have a more meaningful impact."

Empowering Communities: Pilot programs for emerging solutions

Truist Foundation's funding is helping organizations launch pilot programs designed to test innovative solutions in their respective communities. One standout example is Project Equity, which focuses on transitioning businesses to employee-owned companies in Atlanta, Birmingham, and Miami. Doing so provides wealth-building opportunities for low- and moderate-income workers, including in communities of color.

Project Equity uses detailed data analysis to identify regions with a high density of low- and moderate-income workers and legacy businesses. This analysis guides their outreach and engagement strategies, ensuring they effectively target the communities that can most benefit by transitioning to employee ownership.

"Our data analysis helps us understand the unique characteristics of each region, allowing us to tailor our messaging and build awareness effectively," says Evan Edwards, chief executive officer of Project Equity. "Truist's funding has been crucial in broadening and deepening our awareness-raising efforts and developing partnerships in key regions."

In Miami, for example, Edwards discovered that using terms like "co-ops" wasn't effective due to cultural perspectives of many local residents. Truist's funding helped Project Equity adjust their language to better connect with the local community.

Expanding Impact: Scaling existing nonprofit programs

Truist Foundation is also committed to scaling existing programs to expand their reach and impact.

For example, LiftFund provides affordable small business loans and technical assistance to underserved communities. This approach not only gives small business owners access to capital-it also equips them with the tools needed to manage their finances effectively and sustain growth through one-on-one business counseling, workshops, and webinars.

"Truist Foundation's grant helps us enhance our capabilities and our capacity in a couple of different ways," says Amy Hereford, chief executive officer at LiftFund. "The grant is used for our Dream Makers Fund, a revolving business loan fund, which allows us to offer lower interest rate loans, and supports educational programs and community outreach in Florida."

So far, Truist Foundation's funding has helped five businesses, including a pressure washing business and a carpentry business. The pressure washing business received a 0% interest loan to purchase a truck and trailer, allowing the owner to begin work and plan for future expansion. The carpentry business also received a 0% interest loan to purchase additional equipment and hire more help as the business grows.

The grant funding also helps LiftFund engage with community partners to amplify impact. By collaborating with local chambers of commerce, development groups, and other nonprofits, LiftFund can broaden its reach and support more small businesses.

By helping organizations launch and scale programs, Truist Foundation is empowering nonprofits to create lasting change in communities nationwide.

Learn more about how Truist Foundation is helping nonprofits expand their work.

Read the full press release: Truist Foundation fills gap, distributes grants to pilot and scale nonprofit solutions nationwide

View additional multimedia and more ESG storytelling from Truist on 3blmedia.com.

Contact Info:
Spokesperson: Truist
Website: https://www.3blmedia.com/profiles/truist
Email: info@3blmedia.com

SOURCE: Truist

View the original press release on accesswire.com

FAQ

How much did Truist Foundation (TFC) donate in grants to nonprofits in 2024?

Truist Foundation donated $4 million in grants to 11 nonprofits across the country in 2024.

What percentage of nonprofits reported increased demand for services in 2024 according to Truist (TFC)?

According to the report, 71% of nonprofits saw an increase in demand for their programs and services in 2024.

What is the interest rate on loans provided through Truist Foundation's (TFC) Dream Makers Fund?

The Dream Makers Fund, supported by Truist Foundation, offers 0% interest loans to small businesses.