Our March 4 Community Impact Forum in Montgomery County brought together our donors, partners, and friends to hear from local and national experts about community wealth building strategies and the transformative potential to build more inclusive, thriving local economies.
“If we want to see real growth in our communities, we have to think outside the box when it comes to how and where we invest,” shared Anna Hargrave, Executive Director for Montgomery County at the Greater Washington Community Foundation. “Community wealth building is a holistic, forward-thinking model that challenges us to look beyond basic needs to envision what is possible.”
“Community wealth building is a relatively new idea with a long intellectual and activist pedigree,” shared Ralph Hall, Professor of Urban Affairs and Planning in the School of Public and International Affairs at Virginia Tech. “It boils down to the idea that as we create fair employment and increase access to capital ownership for more people, we can reduce inequality and advance sustainable development in our communities.”
What is Community Wealth Building
Prof. Hall has over two decades of academic and professional experience in sustainable development. More recently, he’s been working as a Joann Boughman Innovation Fellow at the Universities at Shady Grove – helping to implement principles of community wealth building into the organization’s strategic framework.
Prof. Hall shares data about the wealth gap in Maryland - making the case for community wealth building strategies.
“In the state of Maryland, the richest 1% of families take home more than 15% of the income in the state,” Prof. Hall shared, citing data from the Economic Policy Institute. “Nationally, the poorest 50% of households own less than 3% of the wealth in the United States.”
Prof. Hall explained how this divide has slowly increased over the past fifty years, as Median Family Income has failed to keep up with the rise in Labor Productivity and Real GDP.
The result is that working families have been left behind while those with access to capital have been able to take advantage of the meteoric rise in the markets. A 2020 study found that the lack of income growth has cost workers and their families $47 trillion since 1975.
“When we talk about building thriving communities, this is the big picture we need to be looking at,” Prof. Hall added. “What are the types of systemic changes and investments we need to make to start closing that gap?”
Prof. Hall shared 5 Pillars to Community Wealth Building developed by the Democracy Collaborative and outlined how various elements of wealth building have already been implemented across the country – some dating as far back as the 1970s. Some common approaches include the emergence of Community Development Corporations (CDCs), Community Development Financial Institutions (CDFIs), and Community Land Trusts (CLTs) that help lower the barrier to capital for low-income families and business owners.
More recent and comprehensive approaches include the Evergreen Cooperatives in Cleveland, Ohio and the Preston Model in Preston, England – initiatives which prioritize creating cooperatives and other worker/community-owned businesses to grow the local economy and increase workers access to capital.
Strengthening the Economy through Grassroots Workforce Development
“Community wealth building is about solidarity rather than extraction,” shared Lanita Whitehurst, Senior Organizer with IMPACT Silver Spring. “It’s about helping build people’s power and helping them access wealth so they can truly benefit from their contributions to the system instead of merely depending on it for survival”
From left to right: Anna Hargrave, Executive Director for Montgomery County at the Greater Washington Community Foundation; Anne Khademian, Executive Director of The Universities at Shady Grove; Valerie Salazar, Co-Director of IMPACT Silver Spring; and Lanita Whitehurst, Senior Organizer at IMPACT Silver Spring.
IMPACT Silver Spring has been empowering residents in Montgomery County for over 25 years – with a specific emphasis on boosting economic power through worker cooperatives and 1-on-1 coaching support to help rising entrepreneurs.
In 2016, the organization incubated the Montgomery County Community Investment Cooperative (MCIC) – a collective community fund to help provide capital for community members and entrepreneurs who lack access to the financial system.
IMPACT Silver Spring also established the Community Trade Academy which hosts sewing classes and other workshops to strengthen what they call ‘the underground economy’ – helping community members develop marketable skills. Graduates are using their new skills to supplement their income and generate additional wealth through microenterprises providing embroidery, piñata making, catering, and other in-demand services. The academy also offers an entrepreneurship jumpstart course to help aspiring entrepreneurs learn the basics of successfully launching a small business.
“We have to be innovative in the ways that we talk about wealth and the local economy,” shared Valerie Salazar, Co-Director of IMPACT Silver Spring. “Beginning with the work of grassroots workforce development.”
“This work is about getting out into the community and serving them in the ways that they need – rather than coming to them and dictating the services that we are willing to provide. We put our ears to the ground, hear what the needs are, break down the barriers to entry, and then provide the resources and framework so that they can accomplish their dreams.”
Harnessing Community Wealth Building to Reimagine Higher Education
“Community wealth building is about strengthening the fabric of relationships that allows the free flow of ideas and the problem-solving capacity to make our communities stronger,” added Prof. Anne Khademian, Executive Director of the Universities at Shady Grove (USG).
USG has been actively engaged in community wealth building strategies for several years now. In 2021, they launched the USG Equity Incubator – an 8-week accelerator boot camp program designed to help local entrepreneurs kick-start their businesses and scale their operations.
Lunch for the forum was catered by Trippy Tacos. Before the presentation, guests got to hear from the founder, Chris Robles, about how he launched and grew his business thanks to the Equity Incubator at the Universities at Shady Grove plus the AMBER program of the Montgomery Black Collective. Pictured above, Robles (right) & his team present at a Shark Tank style USG Equity Incubator event in 2022.
In addition to the boot camp, USG has been intentional about investing in the community within their geographic footprint, establishing partnerships with local food service providers and other small business vendors in the surrounding neighborhoods.
“We have a legacy in higher education institutions of being rewarded for exclusivity, for the number of publications and citations that faculty get – for being renowned and broadly recognized, academically,” Prof. Khademian explained. “All of that is great – but at the end of the day, what really matters to our students and our community are access and affordability.”
“As an institution, we have a responsibility to our students and our community – to invest in their future so that they can thrive both in and outside the classroom.”
To that end, USG has taken a more holistic approach to their academic structure, creating ‘industry sector hubs’ and partnering with local businesses across their degree programs to help facilitate students transition from degree to career.
“We are laser-focused on providing access and affordability for our students and meeting the workforce needs of our community,” Prof. Khademian added.
Together Prof. Khademian and Prof. Hall hope USG can become a case study for how higher education institutions can adopt community wealth building strategies to have a greater impact on the students and communities they serve.
How to Leverage Your Philanthropy to Support Community Wealth Building
One thing that all the presenters pointed out is that community wealth building is not simply a philanthropic investment; It is an intentional and strategic mindset that is adopted over time.
“Community wealth building isn’t about plugging a hole or filling a gap somewhere,” Prof. Khademian explained. “It’s about building a new social structure founded on shared interest, trust, and a considerable investment of time and resources.”
“The work that we’re doing takes time,” Whitehurst added. “We are undoing systems that have been in place for decades – and building a new one that we hope will be in place for decades to come.”
“To be a part of community wealth building means being consistent about how and where you show up for your community.”
Some simple practices that presenters recommended to get started included:
Reflect on your ‘consumer footprint’ – including habits and purchasing decisions you make on a regular basis. Consider ways that you might change your consumer habits to support businesses and nonprofits strengthening your home community.
Be intentional about supporting small local businesses and aspiring entrepreneurs to ensure that the dollars you spend on goods and services are invested back into our local economy.
Recognize that the common entry points and platforms for small business owners may be different. Instead of searching at large-scale retailers, try searching Facebook Marketplace, Community Groups, Etsy, or other local platforms.
Spread the Word! Word of Mouth is a powerful force in community building. It can be something as simple as a recommending a local business to a friend or posting a positive review on a business’ online platforms.
Support nonprofits testing out new ideas to create a more thriving, inclusive local economy for all. You can take your giving to the next level through flexible, multiyear funding which will empower them to pivot and innovate as new opportunities arise!
Join with visionary leaders to advocate for public policies and funding that will build an inclusive, thriving community for all who call our region home.