UW Credit Union Will Invest $1.5 Million to Address Racial Disparities

The $4.2 billion UW Credit Union in Madison, Wis., said it will invest $1.5 million to address racial disparities in Madison and Milwaukee, Wis.

The UW Credit Union Fund for Racial Equality is being launched in partnership with United Way of Dane County and United Way of Greater Milwaukee & Waukesha County.

The fund’s primary goal will be to address barriers to economic mobility for people of color, with a focused goal of funding transformational programming solutions to increase financial stability and improve educational outcomes, the credit union said in a prepared statement.

The funds will be distributed to qualified non-profit organizations that work to address racial inequalities in their communities. The new program will simplify the application process to make the funding more attainable for these organizations.

“With this generous investment from UW Credit Union, we will invest in community-defined and community-led solutions to address employment inequities in ways that will promote economic transformation,” Nicole Angresano, vice president of community impact for the United Way of Greater Milwaukee & Waukesha County, said.

The investment totaled $1 million for Dane County, where most UW Credit Union members reside, and $500,000 for the greater Milwaukee area.

In addition to focused initiatives that address racial equity, the new fund will also support emergency grants totaling $250,000 across both markets.

Emergency funds will assist with COVID-19 relief efforts for underserved communities and help provide a buffer against future crises, so that nonprofits can respond with immediate resources.

The pandemic has brought increased attention to the racial disparities, which have hit Blacks and Latinos with COVID-related hardships at nearly twice the rate of the rest of the community, according to Renee Moe, president/CEO of United Way of Dane County.

“For over three decades, United Way has centered on racial disparities and the work needed to address inequities, but this level of funding and flexibility is a game-changer,” Moe said. “And in partnering with our United Way Foundation in making this gift, UW Credit Union has set another example in how they creatively address community needs.”

The UW Credit Union Fund for Racial Equality came three months after the credit union joined other Madison-based companies in making a combined $11.85 million investment in the Dane Workforce Housing Fund that will build affordable housing for working-class people. The credit union contributed $1 million to the fund.

“About one in four of Dane County’s renter households struggle to afford housing,” UW Credit Union President/CEO Paul Kundert said. “Work force housing is essential, and housing affordability is a growing problem during the current economic and health crisis as more people face unemployment, furloughs and cutbacks in hours. The new units created with the help of this funding will target households whose incomes fall between 40 to 80% of the area median income.”