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2023 hasn’t just been a lean year for Massachusetts banks, but also the foundations, organizations and nonprofits that rely on their support to help communities in need.
Interest rates remain high and prices haven’t come down after more than two years of inflation. This situation made it hard for individuals, families and businesses to get by this year, leading to an increase in need and requests for support, Lori Kiely, Berkshire Bank’s foundation director, said.
“A lot of organizations tell us they serve a lot more people than they ever served before. More people are finding themselves going to the food pantry because of the rise in the cost of food, and what they previously could barely afford, they can no longer afford. These challenges I think will continue next year,” Kiely said.
Grant Restrictions Removed
Berkshire saw that not just communities, but also the organizations and nonprofits it helps fund were experiencing an increase in need.
To support these groups, Kiely said Berkshire removed restrictions on the way it provides grants to organizations. The bank started to consider organizations’ requests to support operational costs amid the challenging economic environment.
“In the past, we shied away from supporting an organization based on just their general expenses and salaries. Foundations would want to focus on particular programs and indicate their ability to make an impact in that area,” she said.
“But we found that it’s just as important to keep the lights on at an organization to run a specific program, and you can’t do that without electricity, or paying other bills and salaries. You need to pay people to run programs. So, we started to look at things a bit differently,” Kiely added.
Photos: 2023 in Philanthropy
The bank will continue to support these organizations as needed, the foundation director said, noting some priority sectors that it would likely put the foundation’s dollars into.
These priority sectors include support for lower-income communities and housing, particularly supporting the rehabilitation of ageing properties, as well as aiding small entrepreneurs to start their businesses and providing services to the community by improving the bank’s employee volunteerism.
A Big Giving Pledge
Berkshire launched its BEST Community Comeback program in 2021, aiming to lend and invest $5 billion in its communities through 2024. The bank has set aside $15 million for its foundation this year, money that supported over 500 organizations and nonprofits in 2023.
Gary Levante, Berkshire Bank’s vice president for corporate social responsibility, said that the bank’s “comeback” program has so far invested more than $2 billion in low- to moderate-income individuals and families, $600 million in green economy initiatives and $300 million to enhance homeownership among underrepresented and marginalized populations.
Nika Cataldo
During the pandemic, a lot of establishments closed, individuals needed income support and small businesses needed funding. Despite having some donations, it wasn’t until the end of the pandemic that gift-giving was more organized, targeted and clearly defined, Kiely said.
“We are more collaborative now with programs and we constantly check with our partner organizations to understand where the need is coming from,” she said.
Kiely said its stronger partnerships brought more collaborative funding for housing projects, trying to address the lack of affordable housing and rental units.
One example is when Berkshire and seven other Massachusetts banks – Hudson’s Avidia Bank, Brookline Bank, Cambridge Savings Bank, Brockton’s HarborOne Bank, Woburn’s Northern Bank, Salem Five Bank and Winchester Co-Operative Bank – teamed up in September to donate a total of $300,000 to the nonprofit Heading Home, which works to end homelessness.
Kiely, who is also Berkshire Bank’s regional president for Berkshire County and Vermont, said that the bank is also looking to support its communities beyond cash donations. It’s offering financial education, in-kind gifts and employee volunteer time, and some of its bankers also serve as board members in various organizations.
One notable volunteer program of the bank is its annual “Xtraordinary Day,” held this year on Sept. 12, where over 1,000 Berkshire Bank employees in Massachusetts, New York, Vermont, Connecticut, and Rhode Island blocked out an afternoon to help with trash removal, landscaping, tree planting, building homes, cleaning up parks and many other activities.
