Meet the Bank Foundation Giving Big for Early Childhood Development in New England

Bank foundations exist all over the country but are particularly prominent in the New England region. This is where the banking industry has deep roots and strong philanthropic traditions that often extend to grantmaking opportunities for area nonprofits of all types and sizes.

One such grantmaker is the Eastern Bank Charitable Foundation (EBCF), which is the charitable arm of the oldest and largest mutual bank in the country. EBCF funds more than 1,600 local groups each year that serve its communities and has been on the local grantmaking scene for over 25 years.

Recently, the foundation committed $1 million in grants to improve early childhood development in Eastern New England. This commitment is made up of a $500,000 grant to the Boston Basics to help kids get a better start in life and 50 additional grants of $10,000 each for programs in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. These particular grants focus on the following four topics: achieving early learning quality standards, strengthening parent engagement, supporting professional development for educators, and upgrading early learning facilities and supplies.

To learn more about why EBCF is prioritizing early childhood development and its overall grantmaking strategy, we got in touch with Nancy Huntington Stager, the president and CEO of the Eastern Bank Charitable Foundation.

The Early Childhood Development Focus 

As with many parts of the country, there are persistent gaps in access to and the quality of early childhood programming in New England. Stager cited statistics about how children are more likely to enter school behind academically without a positive life environment during their first three years and also how kids unable to read at grade-level by third grade are four times more likely to drop out of school before graduating high school.

“We believe that businesses need to get back in the conversation on early childhood development,” Stager said. “It’s not just about the future workforce; it’s about the parents, grandparents, and other caregivers who are in the current workforce and struggling with an early childhood system that doesn’t meet today’s demands in terms of access, quality, and necessary outcomes for children.”

Stager also said that the foundation’s acting on the issue of early childhood development is part of its strategy for addressing income inequality and workforce issues more generally.

“Each dollar invested in early childhood can yield up to a $12 return, so Eastern’s commitment will make a significant impact through each of the organizations receiving a grant,” she said.

Other Issue Areas of Interest

However, early childhood development certainly isn’t the only issue that is on EBCF’s radar. It is the issue in focus this particular year, but overall, the foundation focuses its giving on broader local and regional efforts for economic inclusion and mobility for residents. Last year, the focus of the bank’s philanthropy was “advancing women,” and it granted over $2.2 million to community-based organizations that promoted the advancement of women and girls.

Beyond these typical grantmaking categories, Stager also told Inside Philanthropy that EBCF cares about supporting entrepreneurship and increasing the capacity of businesses led by people-of-color. In fact, the foundation seeded the Foundation for Business Equity with $10 million to help scale minority-owned businesses and close the growing racial wealth gap in Boston.

“According to the Federal Reserve Bank of Boston research, Boston has the worst wealth and income gap in the United States; the median net worth of Black households in the Greater Boston Region is $8 as compared to $247,500 for whites,” Stager said.

Unique Qualities of EBCF

While there are numerous bank-based foundations in this part of the country, this one is unique for a few key reasons. For example, Stager said that the bank is uniquely able to give 10 percent of its net income each year, which is seven times the national average. Since 1999, the bank’s giving has exceeded $140 million.

“As a community bank, our success is directly linked to the strength of the communities we serve,” Stager said. “Investing in historically-marginalized and underserved communities is core to our purpose. Our advocacy changes lives. Whether it’s our testimony advocating for LGBTQ rights or more affordable housing, and beyond, we don’t shy away from using our voice for good.”

Combined with the foundation’s philanthropy is a commitment from bank employees to volunteer tens of thousands of hours of their time each year.  As a result, Eastern is consistently recognized as one of the most charitable donors in the region and financial services sector.

Seeking Support from EBCF

There are currently several types of grants that EBCF awards, including hundreds of grants totaling $5 million in Community Grants and are awarded on a rolling basis throughout the year. CITC grants go to community development corporations in Massachusetts. EBCF Neighborhood Grants are unique because they go to groups that do not have a 501(c)(3) status and commonly fund youth activities, chamber of commerce events, fundraisers, and trade organizations. Grants for Good is the grant program that the aforementioned early childhood development grants are coming from, and a list of new recipients can be viewed here.

“Our goal is to support impactful organizations across our geographic footprint, contributing to the health and vitality of the communities we serve,” Stager said. “Show us how your work aligns to our goal, and we can work together to make our communities stronger.”

EBCF uses an online grant management system that can be accessed on the bank’s website. Eastern Bank has over $11 billion in assets and more than 115 bank locations that serve Massachusetts, New Hampshire, and Rhode Island.