Free report & proprietary data reveal the current state of economic uncertainty in America, & how financial insecurity spans the income spectrum in troubling ways.
NEW YORK, Jan. 17, 2023 /PRNewswire/ — Canary, an emergency relief fund solution that makes it easy for employers to raise and distribute tax-advantaged payments for workers experiencing financial hardships, today announced a total raise of $2.85 million with participation from Capital One Ventures and other current investors. In addition to the new funding, Canary released its Annual Impact Report: How Emergency Relief Funds Support a Modern, Diverse Workforce.
Canary works with organizations across various industries to make employee relief funds available to their employees when they need it most. Their grant-making platform, Grant Circle, enables employees to receive grant money when they experience an unexpected, unavoidable emergency that causes financial hardship. Most often, these hardships impact an individual’s ability to afford basic living expenses, like mortgage or rent, utilities, and food. To date, Canary has partnered with organizations such as Visionworks, Clear Channel Outdoor, Harvard Business Publishing, and others to offer access to emergency grants and distribute money to employees in acute financial distress.
The report looks at the data and stories from these employer-sponsored grant recipients over the last year of grantmaking. The average grant size was $848 per individual, with the top three most common uses of funds being used for mortgage/rent (36%), utility bills (29%), and food (27%).
Despite the increase in income levels of grantees, almost all (99%) reported being financially unhealthy – 58% vulnerable and 41% coping – according to criteria established by the Financial Health Network.
“What this report reveals is how current financial challenges and hardships, such as inflation or natural disasters, are resulting in meaningful financial insecurity for people across socioeconomic status,” says Rachel Schneider, Co-Founder & CEO of Canary. “The percentage of people reporting to be financially unhealthy is staggering, especially when considering the incomes of some of these individuals. Everyone is susceptible to falling on hard times, which is why we at Canary are proud to work with employers who are committed to alleviating this pain within their communities.”
Simply put, while lower-earning workers are still the most financially vulnerable, Canary’s data reflects how inflation and higher costs of living are driving people at all income levels, and even six-figure earners, closer to the financial edge. Additionally, there has been a significant increase in grant requests due to forced moves and eviction, or, natural disasters this year.
The report also looked at the race and sex of grantees and found that:
- More than half of all grantees (52%) are people of color. Of this:
- 29% are Black or African American
- 18% are Hispanic, Latino, or Latinx
- 3% are Asian, Asian American, or Pacific Islander
- 2% are Native American or American Indian
- 4% other
- 75% of emergency grant recipients are women vs. 24% are male.
“We’re thrilled to continue our support of Canary,” said Adam Boutin, partner, Capital One Ventures. “Well-managed employee relief funds can punch far above their weight in the benefit to financially vulnerable employees, compared to the cost. This is evidenced by Canary’s strong customer retention, and the increasing awareness amongst progressive employers, from small businesses to large enterprises alike.”
The data also highlights that the majority of grantee recipients are, as in years past, low or middle-income – 67% earned below $50,000 per year in 2022. Of the 33% of all grantees who reported an annual income of $50,000:
- 14% earn between $50,000-$59,999/year (versus 7% in 2020-2021)
- 7% earn between $60,000-$69,000/year (versus 4% in 2020-2021)
- 9% earn between $70,000-$99,000/year (versus 7% in 2020-2021)
“The Visionworks Cares Fund was created to give our associates a helping hand when life happens,” said Robert Allison, VP, HR People Operations at Visionworks. “Since inception, Visionworks has cared for hundreds of associates by providing assistance to those impacted by natural disasters or other financial hardships. In partnership with Canary, our associates have the ability to access funds quickly with minimal effort.”
You can download the full report here: workwithcanary.com/impact-report-2022.
About Canary
Canary’s technology and services enable our clients (including employers, nonprofits, and others) to give individuals money at pivotal moments in their lives, with dignity and efficiency. We connect the latest technology and payments innovations to the innate and enduring human desire to help each other. We believe that the right money at the right time matters: it gives people the peace of mind and confidence to recover from emergencies and to invest in their futures. You can learn more at www.workwithcanary.com or follow LinkedIn and Twitter.
