Southern Partnership to Reduce Debt (SPRD) emerged as a formidable strategy to confront the oppressive burden of debt that hampers households across the South. SPRD was launched in 2017 with a network of national organizations and over 20 state and local organizations working in Alabama, Arkansas, Georgia, North Carolina, South Carolina, Tennessee, and Texas. Significant progress was made in all states, across all debt types, to alleviate burdensome debt through policy and practice and provide crucial relief to families and communities.
Success was due to the state partners’ ability to form strong coalitions that delivered results. These coalitions were ideologically diverse and often included unlikely partners in the effort to create new narratives, begin to dispel the myth of the immoral debtor, and make meaningful change in challenging environments. The success of SPRD partners, as well as lessons learned, provide insights for grantmakers who want to support similar regional initiatives. The collective wisdom of SPRD partners provides grantmakers with a blueprint for implementing regional initiatives that yield impactful outcomes, dismantle debt, and facilitate individual and family progress toward economic mobility.
This case study draws on key informant interviews with SPRD state and national partners and former Casey Foundation staff and an AFN and Casey Foundation reflection session. It also incorporates information from Foundation memos, SPRD partner reports, and a survey of SPRD state and national partners.
THE CASE STUDY IS STRUCTURED INTO THREE SECTIONS:
SECTION 1 offers context on four types of systemic debt: student loan debt, medical debt, public sector fines and fees (including those resulting in driver’s license suspensions), and high-cost, small-dollar loans.
SECTION 2 outlines the design and implementation of SPRD and highlights some of the results achieved by SPRD state partners.
SECTION 3 presents recommendations from grantee partners and stakeholders for funders embarking on multistate initiatives.
SECTION 1: Why Focus on Debt in the South
It is important for funders to focus on debt as a strategy to address the racial wealth gap because systemic issues like historical discrimination in housing, employment, and education have significantly contributed to the gap. Practices such as redlining have restricted access to homeownership for communities of color, hindering generational wealth accumulation.
It’s important to acknowledge that the burden of debt is not evenly distributed, with notable disparities along racial and ethnic lines. The Aspen Institute highlights significant differences in the amount, characteristics, and composition of debt that contribute to or worsen adverse outcomes for people of color.
The impact of debt also varies significantly between the South and the rest of the nation.
SECTION 2: THE SOUTHERN PARTNERSHIP TO REDUCE DEBT (SPRD)
The Annie E. Casey Foundation conducted data analyses confirming that debt hinders financial well-being in the South and perpetuates the racial wealth gap. Ultimately, the Foundation launched SPRD, an initiative aimed at preventing and eliminating debt through programmatic and policy interventions. The initiative’s objective is to reform policies contributing to debt and to elevate the issue of debt in discussions about asset building and financial security.
The SPRD initiative also included national partners, who supported SPRD state partners by offering expertise and perspective in policy analysis, data platforms, communications, coalition building, and racial equity resources. These partners were selected to influence the national conversation on debt reduction strategies rather than work on federal policy.
To fully grasp the results and outcomes of SPRD, it is important to understand the context in which state partners operate. In many states, implementing changes in practices and policies to address harmful debt can be challenging. Political power dynamics in Southern states are often dominated by entrenched interests, such as powerful corporations, industry groups, and wealthy individuals, who may resist policy changes perceived as detrimental to their interests. Despite these formidable challenges, SPRD partners made significant progress in alleviating burdensome debt across all four debt types and in all seven states.
5 STRATEGIES EMPLOYED TO ADDRESS DEBT
1. ADVOCACY AND POLICY CHANGE 2. RESEARCH, NARRATIVE CHANGE, STORYTELLING
3. PREVENTING OR ELIMINATING DEBT
4. EDUCATION AND AWARENESS 5. COALITION BUILDING AND MOBILIZING
SECTION 3: LESSONS FOR PHILANTHROPY
The SPRD initiative yielded significant results in addressing harmful debt, which profoundly impacts individuals and families in the South. Moreover, the initiative offers valuable insights for philanthropy including the critical role that funders play in driving a successful initiative. While this case study focuses on SPRD, it offers valuable insights and lessons applicable to any grantmaker aiming to launch a regional initiative. Included are reflections from grantees and stakeholders on the SPRD initiative. They have identified key elements that contributed to SPRD’s success and recommendations for future initiatives
