Data Emerges on $20.4 Million Raised by Charities After Sandy Hook Shootings

Connecticut Attorney General George Jepsen and State Consumer Protection Commissioner William M. Rubenstein have made public information collected from dozens of charities related to the shooting deaths at Sandy Hook Elementary School in Newtown.  The data collected thus far indicates that 43 charities have collected nearly $20.4 million and have distributed nearly $2.9 million.

Among their charitable purposes, as reported by the organizations, are:  to provide direct financial support or other assistance to the 26 families who lost loved ones; to create scholarships and an endowment to support Newtown’s children and youth; to purchase memorial trees; pay for  construction of a physical memorial to those lost; and to recognize, support and inspire acts of kindness.

 The information was provided in response to a request for information by the Attorney General and Commissioner. The letter and short survey were sent March 28 to 69 charities either registered with the state Department of Consumer Protection, or publically identified as having accepted donations related to Sandy Hook Elementary, where 20 children and six adults were killed on Dec. 14, 2012. The charities were asked to respond by April 12.

 “This request was an initial step to provide information to the public, Newtown community and other charitable organizations trying to meet the needs of those affected by this tragedy,” said Attorney General George Jepsen.

There were 22 organizations that have not responded to the letter of inquiry as of April 15, and Jepsen said his office will be following up with each of them. The collected information is available on the Attorney General’s and Consumer Protection websites as a service to the public, however, the postings should not be considered an endorsement of any charity by the agencies or by the State.

Commissioner Rubenstein said, “We see this as a good first step toward providing transparency to the activities of the various funds, and guiding future donors who may wish to make a contribution.”  Among those outlining their fundraising and spending are the United Way of Western Connecticut, Sandy Hook Promise Foundation, Newtown Pride and the University of Connecticut Foundation.

 The charities were asked about their organization, services and funds, including the dollar amount of any donations and pledges to date; and the purposes for which money was being collected.  “Our offices may reach out in the future to all the charities to determine how the donations were expended and the steps taken to prevent fraud or misuse of funds,” Rubenstein said.

 Links are available to view:

 Survey results     Survey Questions       List of charities

 In addition, the Attorney General and Commissioner also asked charities and members of the public to refer names of other organizations collecting donations for Sandy Hook-related purposes.

 The Attorney General’s Office website also notes that Connecticut law requires groups that “ask in our state for anything of value to benefit a charitable purpose or charitable organization to register, or claim an exemption from registration, with the Public Charities Unit” of the office.   Companies that are paid to solicit on behalf of charities, usually by telephone, are also required to register.  The website explains that “registration is mandatory and does not imply that the state endorses any particular organization or paid soliciting company.”

The Public Charities Unit receives annual financial reports for registered charities.  According to the website, “Information on how the charity spends its money may help you decide whether you wish to support the organization with your donations.   If you have been solicited by telephone, we will also tell you how much of your donation goes to the charity and how much will stay with the paid solicitor.”

Regardless of the charity’s location, if the group intends to ask in Connecticut for anything of value to benefit a charitable purpose or other charitable organization, it must register to solicit (or claim an exemption from registration) by filing a form with the Public Charities Unit.

Connecticut Ranks #3 in Ultra-High Net Worth Individuals Per Capita

Connecticut has the third highest percentage of ultra-high net worth individuals per capita, according to an analysis developed by the cable business network CNBC.

The network’s website noted, on America’s tax filing deadline day, that “one of the enduring legacies of the Occupy Wall Street movement” from a year ago is the term "One Percent," referring to the percentage of top wage earners in the United States - those who make an annual income of $343,000 or more. But even more selective at the top is the subset of the population known as "ultra-high net worth," or UHNW.

UHNW individuals are defined by David Friedman, president of the global wealth intelligence firm Wealth-X, as individuals with a net worth of at least $30 million, after accounting for shares in public and private companies, residential and investment properties, art collections, planes, cash and other assets.  The firm estimates that 59,805 such individuals live in the United States.

Using figures provided by Wealth-X, population data from the U.S. Census Bureau and the insights offered by Friedman, CNBC.com developed the list of the 10 states with the most UHNW individuals on a per capita basis.   Connecticut ranked third, between Montana and New York.

The network reported that “In Connecticut, the primary driver of wealth is the financial services sector, with most of the rich individuals in the state having made their money in this business.”  UHNW individuals living in Connecticut, according to CNBC, include Vornado Realty Trust CEO Michael D. Fascitelli, whose net worth is approximately $700 million; and Raymond T. Dalio of Bridgewater Associates, who lives in Westport and has a net worth of approximately $10 billion.

A surprising number one:  Wyoming.  An example, and an explanation by CNBC:  Christy Walton, the widow of John T. Walton, heir to the Wal-Mart empire. According to Wealth-X, her net worth is $25.7 billion. Wyoming is an example of the type of state that the very wealthy are finding an ideal tax haven. "This is a strategy in a lot of states," Friedman told CNBC. "A fusion of natural assets, in terms of what the state has to offer from a tourist perspective, combined with a low tax regime. It has the ability to offer executives a place of rest, and to get away from everything."

The top 10 states with ultra-high net worth individuals, per capita:

10. Vermont

Number of residents per UHNW individual: 4,635 UHNW population: 135     Total population: 625,741

9. Illinois

Number of residents per UHNW individual: 4,615 UHNW population: 2,780     Total population: 12,830,632

8. Wisconsin

Number of residents per UHNW individual: 4,391 UHNW population: 1,295     Total population: 5,686,986

7. Texas

Number of residents per UHNW individual: 4,269 UHNW population: 5,890     Total population: 25,145,561

6. Rhode Island

Number of residents per UHNW individual: 4,048 UHNW population: 260     Total population: 1,052,567

5. California

Number of residents per UHNW individual: 3,401 UHNW population: 10,955     Total population: 37,253,956

4. Montana

Number of residents per UHNW individual: 2,910 UHNW population: 340     Total population: 989,415

3. Connecticut

Number of residents per UHNW individual: 2,657 UHNW population: 1,345     Total population: 3,574,097

2. New York

Number of residents per UHNW individual: 2,255 UHNW population: 8,595     Total population: 19,378,102

1. Wyoming

Number of residents per UHNW individual: 1,911 UHNW population: 295     Total population: 563,626

Students Want Financial Education Before High School Graduation

While more than 3 of 4 teens (76%) believe the best time to learn about money management is before graduating high school, less than 3 in 10 (29%) reported programs currently in place, according to a national survey of teens.  Those statistics stand out  in the latest Junior Achievement USA^® (JA) and The Allstate Foundation 2013 Teens and Personal Finance Poll. The gap between students who want financial education and those who receive it  is precisely the gap that JA volunteers seek to fill - which explains why more volunteers are needed.  JA is a partnership of educators and volunteers from business and the community. The survey also found that 25 percent of teens think they will be age 25-27 before becoming financially independent from their parents, up from 12 percent in 2011. Concurrently, parents are also expecting their children to be in their mid-20s by the time they are financially independent, as the economy, availability of jobs and societal norms now indicate a longer dependence on parents.

More than one-third (34%) of teens said are somewhat or extremely unsure about their ability to invest money.  Even as credit cards are aggressively marketed to teens, 20 percent remain somewhat or extremely unsure about their ability to use credit cards. And of the 33% of teens who say they do not use a budget, 42% are "not interested" and more than one-quarter (26%) think "budgets are for adults."

JA provides volunteers with everything they need to be successful in the classroom, including comprehensive classroom materials, step-by-step lesson plans and training, a choice of grade (K-12) and a school location close to home or work and a connection to an individual teacher to coordinate times during the school day for as few as five lessons, each lasting approximately 45 minutes.   Providing children with positive adult role models, who illustrate ways to build self-confidence, develop skills and find avenues of success in our economic system, is a hallmark of Junior Achievement.

”JA delivers specific, effective programs in the classroom that respond to the knowledge gap,” said Louis J. Golden, President of JA of Southwest New England.  “Far too many teens lack a fundamental understanding of how to manage their money.  The poll reminds us that students recognize that.  JA provides young people the knowledge, tools and inspiration to understand our economy and their own finances, and make their way in the world.”

Last year, more than 2,500 volunteers - business professionals, parents, retirees, and college students – offered JA programs to more than 34,500 students in schools throughout Hartford, Litchfield, New Haven, Windham, Tolland, New London and Middlesex counties.  There are ongoing programs at the elementary, middle school and high school level, as well as afterschool programs.

“Classroom volunteers make economic concepts relevant, fuel the entrepreneurial spirit, and challenge the students to excel,” Golden said.  “They help provide the financial knowledge before college that students are seeking.”

To learn more about the JA volunteer program, contact 860-525-4510 or visit www.jaconn.net for details.

Survey Reveals Teens Unprepared for Costs of College, Uncertain About Future

As prospective college students receive word this month on whether they’ve been accepted to their preferred institution – and how much financial aid they’ll be receiving - the greater challenge begins.  That’s the grueling exercise to crunch the numbers to try to come up with ways to afford the impending and imposing tuition bill. That reality makes the findings of the Junior Achievement USA^® (JA) and The Allstate Foundation's 2013 Teens and Personal Finance Poll ring alarm bells for teens and their families, as they look ahead to the financial impact of college:

• Only 9% of teens report they are currently saving money for college.
• More than a quarter of teens (28%) haven’t talked with their parents about paying for college.
• More than half (52%) of teens think students are borrowing too much money to pay for college.

JA is helping students understand the importance of saving and planning for future financial needs, working with students from kindergarten through 12^th grade.  That’s at the core of JA’s work, driven by volunteers who provide a real-world view for students.  To meet the need reflected in the latest data and reach more students, JA has opportunities right now – often at a school close to home - for volunteers to participate.

The increasing cost of college, difficult job market and sluggish economy appear to be affecting teens’ views on the timetable for attaining financial independence, and the prospects for their long-term financial security.  According to the poll, during the past two years the percentage of teens who:

• Think they will be financially dependent on their parents until age 25 has more than doubled – from 12% in 2011 to 25% in 2013.
• Say they don’t know or are not sure at what age they will attain financial independence from their parents jumped from a mere 1% in 2011 to 11% in 2013.
• Don’t know or who are unsure if they will be financially better off than their parents has risen significantly, from 4% to 28%.

Teens’ uncertainty about their financial future is also a reflection of their lack of financial knowledge and understanding.  More than one-third (34%) are somewhat or extremely unsure about their ability to invest money.  And of the 33% of teens who say they do not use a budget, 42% are "not interested," and more than a quarter (26%) think that "budgets are for adults."

“Today’s teens expect to be financially dependent on their parents longer, and the number who can’t even predict when they might gain financial independence has jumped ten-fold in just the past two years,” said Louis J. Golden, President of JA of Southwest New England.  “The economy certainly plays a role, but part of the uncertainly is because far too many teens lack a fundamental understanding of how to manage their money.  JA delivers specific, effective programs directly to the classroom that respond to that knowledge gap.”

JA's unique delivery system provides the training, materials, and support necessary to build student skills in financial literacy, work readiness and entrepreneurship. Last year, more than 2,500 volunteers - business professionals, parents, retirees, and college students – offered JA programs to more than 34,500 students in schools throughout Hartford, Litchfield, New Haven, Windham, Tolland, New London and Middlesex counties.

The volunteers use their personal experiences to make the JA curricula practical and realistic. Providing children with positive adult role models, who illustrate ways to build self-confidence, develop skills and find avenues of success in our economic system, is a hallmark of Junior Achievement.  Individual interested in learning more about the JA volunteer program should contact 860-525-4510 or visit www.jaconn.net for details.

State Grant Backs Transforming UConn Research into Start-Up Companies

UConn Ventures and the University of Connecticut’s Office of Economic Development (OED) have been selected to receive a state grant to provide technical assistance and training for small and medium sized businesses.  The $220,000 grant was awarded by the Department of Economic and Community Development as part of the state agency’s Economic Development Grants Program. UConn Ventures will apply the state funding in support of its mission to seek out university-based research innovations, assess their commercial potential, and provide resources to address the management, market, and technology associated with launching a new venture.

The initiative aims to help migrate technologies developed in UConn’s research labs, including the UConn Health Center, to support early-stage companies and small business expansion.  UConn Ventures will work with research faculty in providing technical assessments and direct support that result in product development, testing and creation as well as fundable plans to launch either a new business or a new product or process.   UConn Ventures will focus use of the grant funds on efforts to:

• support work to develop data, prototypes and test both technical and market relevancy in order to deploy new technologies and processes,
• expose academic scientists to industry processes, experts and needs, thus impacting the course of future research in ways that will support industry and the economy,
• engage Connecticut entrepreneurs and industry members from small business who may be potential investors, owners, licensees, CEO’s, or champions,
• establish and further relationships that will support and advance a culture of innovation in Connecticut.

Plans call for two levels of financial support to fledgling companies under the program: 1) to assess and mitigate technical and market risks of a technology, and 2) to commercialize projects that have established proof of concept and identified a commercialization path.

“Our work is all about innovation, entrepreneurship, and scale,” said R. Mark Van Allen, President of UConn Ventures.  “We seek out university-based research innovations, assess their commercial potential, and provide resources to address the management, market, and technology risks associated with new venture formation.  We appreciate the state’s support of our work, and the reinvigorated commitment of the University and the Department of Economic and Community Development to help us to accelerate business creation and development.”

UConn Ventures, aligned with the University’s Office of Economic Development, creates business start-ups by guiding the development process, soliciting funding and recruiting management based on technologies invented by UConn students, faculty and staff.  It is a subsidiary of the UConn Foundation.  Financial benefits accrue to the individuals whose research innovation is at the core of the start-up business, and UConn.

“The Office of Economic Development is committed to applying resources in ways that will better support technology transfer and industry partnership,” said Mary Holz-Clause, UConn Vice President for Economic Development.  “UConn Ventures offers precisely the expertise and experience that is essential to successfully commercialize great research and great ideas, and their organization will play a pivotal role in building future successes.”

More information about UConn Ventures and the Office of Economic Development is available at www.uconnventures.com.

Foreclosure Rate Drops Nationally, CT Better Than National Average

Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 150,864 properties across the U.S. during January, a decrease of 7 percent from the previous month and down 28 percent from January 2012. The report - by RealtyTrac®, a leading online marketplace for foreclosure properties and real estate data - shows one in every 869 U.S. housing units with a foreclosure filing during the month, down 28 percent from a year ago to the lowest level since June 2006 — a 79-month low. Each of Connecticut’s eight counties is below the national average, and the state continues to be outside the top 10 states for the number of foreclosures, according to the U.S. Foreclosure Market Report™ for January 2013.  The prevalence of foreclosures, based on the number of housing units, was greatest in Windham, Tolland, and New Haven Counties.

The Florida foreclosure rate ranked highest among the states for the fifth month in a row. One in every 300 Florida housing units had a foreclosure filing in January — more than twice the national average. A total of 29,800 Florida properties had a foreclosure filing during the month, up 12 percent from the previous month and up 20 percent from January 2012.

With one in every 344 housing units with a foreclosure filing in January, Nevada posted the nation’s second highest foreclosure rate for the fourth consecutive month. A 32 percent month-over-month jump in scheduled foreclosure auctions helped the Illinois foreclosure rate rise to third highest among the states in January. One in every 375 Illinois housing units had a foreclosure filing during the month.

Other states with foreclosure rates among the nation’s 10 highest were Arizona (one in 501 housing units with a foreclosure filing), Georgia (one in 513 housing units), Ohio (one in 612 housing units), Washington (one in 674 housing units), California (one in 753 housing units), Indiana (one in 784 housing units), and Michigan (one in every 837 housing units).

In Connecticut, New Haven County had the largest number of foreclosures in January, with 317, followed by Hartford County with 265 and Fairfield County with 193.  Overall, Connecticut had 5,187 home foreclosures during the month, with the average foreclosure sales price of $186,405.  The county-by-county breakdown:

• Windham            51 foreclosure properties             1 in every 958 housing units
• Tolland                 52 foreclosure properties             1 in every 1,109 housing units
• New Haven        317 foreclosure properties          1 in every 1,138 housing units
• Hartford               265 foreclosure properties          1 in every 1,409 housing units
• Litchfield              57 foreclosure properties             1 in every 1,530 housing units
• New London      78 foreclosure properties             1 in every 1,546 housing units
• Fairfield                193 foreclosure properties          1 in every 1,865 housing units
• Middlesex           37 foreclosure properties             1 in every 2,013 housing units

In New Haven County, the numbers were driven by Waterbury with 84 foreclosures and New Haven with 59.  West Haven had 38 during the month.  In Hartford County, there were 44 foreclosures in New Britain, 35 in East Hartford and 26 in Manchester, according to the data provided by RealtyTrac.

Credit Card Debt Increases Among Older Residents

As Connecticut struggles to lift itself from a nagging recession and rebuild a shaky economy and grow jobs, new national data suggest that economic realities plus an aging population are combining to increase the credit card debt among a significant segment of the population. It has been estimated that the state's 65+ population would increase by 69 percent between 2000 and 2030. Middle-income Americans age 50 and older are carrying more credit card debt on average than younger people, according to a National Survey on Credit Card Debt of Low- and Middle-Income Households, released last month by Demos, a national policy think tank and AARP’s Public Policy Institute.

The results of the 2012 survey are a reversal of findings from a survey conducted by Demos in 2008.  It reveals a troubling picture of middle-income 50+ households carrying card debt near or in their retirement years.

The report shows that nationwide, older households carried an average credit card balance of $8,278 in 2012. For those under 50, credit card debt averaged $6,258. Other key findings for middle-income households that carried credit card debt for three months or more:

• A third of older households used credit cards to pay for basic living expenses such as rent, mortgage payments, groceries, or utilities.
• Half of Americans age 50+ carried medical expenses on their credit cards. Prescription drugs and dental expenses were the main contributors.
• A quarter of older households said loss of a job contributed to their credit card debt in the last three years.
• Nearly one in five (18 percent) older Americans nearing retirement said they dipped into retirement funds to pay down credit card debt.
• Older Americans were twice as likely as those under age 50 to take on credit card debt to assist other family members (23 percent vs. 11 percent).

This report suggests that credit card debt among older Americans is primarily a reflection of difficult economic times, not a lack of personal financial responsibility.  State-by-state data was not available.

The findings may help to explain the economic challenges facing Connecticut’s citizenry, which is on track to becoming one of the oldest among the states, expected to grow from 470,183 (13.8% of the total state population) in 2000 to 794,405 in 2030, constituting 21.5% of the projected total state population.

Three Cities Selected for Program to Bring Housing Downtown

Connecticut Main Street Center (CMSC) has selected Middletown, Torrington and Waterbury for its new pilot program, Come Home to Downtown. CMSC developed the mixed-use real estate planning pilot program to provide selected communities with new tools to strengthen economic health and restore vitality to their downtowns, facilitating the development of viable, interesting housing opportunities while improving downtown neighborhoods. The goal of the Come Home to Downtown program is to set the stage to attract developers and “mom and pop” building owners to redevelop vacant or underutilized buildings with a mix of uses and housing choices. CMSC will also provide local public and private champions and partners with strategic tools to allow them to create or enhance a strong downtown management program.  The Come Home to Downtown pilot was created in partnership with the Connecticut Housing Finance Authority (CHFA), through a $250,000 investment using Community Investment Act (CIA) Program funding.

“Our Come Home to Downtown pilot communities were selected based on criteria we feel is vital for success, including local public and private sector leadership, a strong record of community engagement, success of previous downtown revitalization initiatives and multi-story buildings and property owners who are motivated to redevelop them,” said CMSC’s John Simone.

CMSC will work in concert with Middletown, Torrington and Waterbury, beginning with the collection of data, building analysis and the coordination of community engagement activities, exploring their downtown redevelopment issues in-depth and creating new strategies that respond to changing demographics and market dynamics.  Work will continue throughout the summer on consensus building, a downtown development audit for each of the towns, model building analysis, assistance to small-property owners who demonstrate a desire to redevelop their properties to include housing, and downtown management organizational development.

Connecticut Main Street Center is a statewide nonprofit that inspires great Connecticut downtowns, Main Street by Main Street. Its mission is to be the champion and leading resource for vibrant and sustainable Main Streets as foundations for healthy communities.

Foundation Seeks Loaned Funds to Launch Early Childhood Music in Hartford

A full page advertisement in The Hartford Courant recently sought individuals interested in “parking idle funds for education.”  The open request, designed to attract funds that would enable the organization to create a free early childhood music program in Hartford, came from the POTE Foundation, Inc., a Connecticut based organization committed to providing educational support and resources to youth. POTE, which is an acronym for providing opportunity though education, promotes the vision that success is achieved when opportunity meets preparation.  The organization, founded in 2007:

• provides financial and support services to all levels of the educational process—early childhood through higher education;
• strives to develop unique programs to encourage educational excellence for youth who encounter the lack of opportunity, either because of economic or intellectual barriers; and,
• engages the intellectual and financial resources of baby boomers along with corporate and foundation outreach.

The ad points out that POTE “has successfully provided cost free violin instruction to K and pre-K students in Connecticut,” noting that “early involvement in music enhances reading achievement and fosters and appreciation of music in the development of the child.”

It asks that interested individuals “grant an interest free term loan to provide investment income to fully fund enrollment” in the program, to be used to develop a learning facility in Hartford and provide investment income to fully fund enrollment.  “Loan principal will not be expended for either construction or operating costs,” the organization points out. And POTE emphasizes that “all funds collected from fundraising activities go to program services – there are no administrative costs for POTE activities,” according to POTE President Christopher Wolf.

In accordance with its mission statement, during the past five years, the Glastonbury-based POTE has:

•  Enrolled 90+ pre-k and kindergarten children in Suzuki cost free violin program over five years in Windsor Locks

• Provided major funding for 565 youth (ages 4 to 18) for inner city youth in the Waterbury Police Athletic League’s Safe Water Information Movement (SWIM) program
• Funded after school program for middle school youth for science, math and technology in Waterbury
• Used fees collected from consulting services, to fund $3,000 for water appreciation and nature walk for Waterbury’s West Side Middle School
• Provided $5,000 in grant funds to Hartford Conservatory for musical instrument acquisition, maintenance and repair

POTE provided $34,000 in funding for various youth educational programs during 2012.

POTE anticipates that if they are able to move forward with the new Hartford early childhood music education program, “local jobs would be created during the development phases” and the ongoing program would “employ local musicians.”  In the event that the program does not go forward, all proceeds would be refunded.

Six CT Communities to Receive "Preservation of Place" Grants to Boost Local Downtowns

Connecticut Main Street Center (CMSC), the downtown revitalization and economic development non-profit, has awarded six organizations and municipalities a total of $60,000 in 2013 Preservation of Place grants. These grants will be used to provide the communities and organizations with targeted resources to increase their capacity to plan for preservation and revitalization initiatives in their downtowns and neighborhood commercial districts. The winning organizations and initiatives - which will each receive a $10,000 Preservation of Place grant - are:

• the Town of Kent for a Planning & Engineering Study for its Village Center Streetscape;
• the City of Bridgeport for the Little Asia Historic Streetscape and Archway Project;
• the Town of Putnam for the Putnam Downtown Center Signage and Wayfinding Design Project;
•  the Town of Seymour for the Seymour Greenway Trail and Linear Park Master Plan;
• the Westville Village Renaissance Alliance for the Westville Village Public Parking Comprehensive Design & Marketing Plan; and the
• Northwestern Connecticut Regional Planning Collaborative for the NW CT Village Center Vitality Tourism Marketing Campaign.

The Preservation of Place grant program provides a source of funding for new initiatives that can be integrated into, and leverage, comprehensive Main Street preservation and revitalization programs. The funds are meant to be flexible to meet individual community need.

"Historic preservation and the revitalization of our Main Streets create jobs, bring vacant buildings back on the tax rolls and add value and vitality to adjacent buildings and neighborhoods," said John Simone, CMSC President & CEO. "The diversity of locations and the diversity of projects will allow each community to respond to their greatest current need, actively creating their direction of growth."

Since 2008, CMSC has awarded $288,030 through the Preservation of Place grant program to sixteen Connecticut communities, leveraging over $768,427 in local Main Street initiatives. The program receives support from the State Historic Preservation Office with funds from the Community Investment Act.

The mission of CT Main Street Center is to be the champion and leading resource for vibrant and sustainable Main Streets as foundations for healthy communities. CMSC is dedicated to community and economic development within the context of historic preservation, and is committed to bringing Connecticut's commercial districts back to life socially and economically. The Main Street initiative is one of the most successful economic development programs in the country. For every $1 spent on a local Main Street program, $73.13 is reinvested in Connecticut Main Street downtowns.