Philly nonprofit is giving cash to families to jumpstart their way to the middle class

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There’s no shortage of poverty fighting programs in Philadelphia as the biggest poorest city in the nation, which ranks last for economic mobility.

But a new prosperity lab run by nonprofit Xiente, formerly known as the Norris Square Community Alliance, is trying to offer a jumpstart for families in poverty by offering cash, which is also known as guaranteed income.

Eligible low-income families who participate in the 14-month long pilot can get $500 cash each month, in addition to a housing and economic mobility coach. Families with household incomes between 30% and 60% of the area median income can apply. For a family of four, that’s between $34,400 and $68,820 in annual income in Philadelphia, according to requirements from the Department of Housing and Urban Development.

For decades, nonprofits have provided services to low-income families, such as budgeting and financial literacy.

But it’s really difficult to put that education into practice when there’s not enough money for families to save anything, said Xiente CEO Michelle Carrera Morales, who holds a doctorate in education.

“We need to figure out how to do things differently,” Carrera Morales said. “For many years, we have [tried to] tackle poverty from a program perspective. At some point as a society, we need to understand the [financial] gap and say we’re OK with trusting people that they will make the right decisions.”

During the pilot period, 10 families will receive the resources. But there are more than 100 in the prosperity lab partnered with economic mobility coaches. The goal is to reach 500 families in the coming years.

“We want to make sure that we are able to have a model that helps people move from poverty to middle class,” Carrera Morales said.

Xiente will track the earnings of the families when they begin and end the program to see if individuals gained further job training or changed careers to earn more money. Researchers with the University of Pennsylvania Center for Guaranteed Income Research will ask participants about their financial stability such as improved credit, savings and reduced debt load, career advancement, less stress and improved quality of life.

The program is privately funded by The Vanguard Group Foundation and the Local Initiatives Support Corporation. The nonprofit hopes to raise more money to expand the guaranteed income model.

It’s not the only effort of its kind in the city, under former Mayor Jim Kenney, the city of Philadelphia piloted guaranteed income with 51 families who received temporary assistance for needy family benefits in August 2023. A similar basic income program known as the Philly Joy Bank offered $1,000 for pregnant women as an effort to reduce infant mortality.