USAA Announces 3-Year, $50 Million Commitment to Advance Racial Equality
$15 million donation in 2020 will focus on education, employment and closing the racial income gap
SAN ANTONIO (Updated Dec. 8, 2020) – USAA has committed $50 million to nonprofit organizations over the next three years to help improve racial equality and positively address the employment, educational and economic disparities that exist within communities of color and low-income military communities. The goal of our targeted contributions is to help close gaps across education and job training, employment and income disparity.
“At USAA, we strive to create an environment where all employees feel like they truly belong and have the opportunity to reach their full potential,” USAA President and CEO Wayne Peacock said. “This commitment extends to the communities in which we live and work. It’s our mission to care for military families, a community that reflects our nation’s racial, social and economic diversity — and the complex issues that come with it. We recognize that there is more USAA can do to help close inequality gaps, and these investments are a fundamental part of our efforts.”
According to the U.S. Chamber of Commerce’s Equality of Opportunity Initiative, black-owned non-employer businesses are less than half as likely to get financing as white-owned firms; as a result, black entrepreneurs are nearly three times more likely to have business growth and profitability negatively impacted by a lack of financial capital. In addition, according to that data, Black and Hispanic workers with a bachelor’s degree (and higher) had lower median weekly earnings ($1,065 and $1,101 respectively) than whites ($1,342).
In addition, the military community is as diverse as the country they serve, and this diversity will only grow over time. Research shows that 43% of the military community is listed as ethnic minority – and 47% of USAA employees identify as a person of color. In order to fulfill on its commitment to supporting the financial security of the military community, USAA is determined to help close the gaps that lead to racial disparities in education, employment and the income gap.
Diversity and inclusion are key long-term priorities guiding USAA’s investments, resource allocations and efforts for the future. Some of the efforts include:
In the first phase of contributions made in October, USAA donated nearly $7 million to national and San Antonio-based nonprofits including supporting the expansion of The Executive Leadership Council’s scholarship programs and education-based philanthropic endeavors focused on building a pipeline of Black business talent. Contributions to LiftFund also supported non-traditional loans offered by the nonprofit with low interest rates for Black and Hispanic entrepreneurs, and Project Quest helped low-to-moderate income Black and Hispanic San Antonians receive upskilling and reskilling training within in-demand STEM professions.
In the second phase of contributions made in November, USAA donated $8 million to 21 nonprofit organizations to help advance racial equality. The nonprofits primarily reside in six of USAA's office communities, including Chesapeake, VA.; Colorado Springs, Colo.; Dallas, Texas; Phoenix, Ariz.; and Tampa, Fla. Three national nonprofits also received philanthropic support.
Prior to this announcement, USAA and The USAA Foundation, Inc., have committed more than $40 million in 2020 to provide financial relief for military members and their families, address food insecurity in its communities, advance research and treatments for COVID-19, and help bridge the digital divide for low- and moderate-income families suddenly faced with virtual learning.
More about USAA’s diversity and inclusion initiatives can be found here.
Founded in 1922 by a group of military officers, USAA is among the leading providers of insurance, banking and investment and retirement solutions to 13 million members of the U.S. military, veterans who have honorably served and their families. Headquartered in San Antonio, Tex., USAA has offices in seven U.S. cities and three overseas locations and employs more than 35,000 people worldwide. Each year, the company contributes to national and local nonprofits in support of military families and communities where employees live and work. For more information about USAA, follow us on Facebook or Twitter (@USAA), or visit usaa.com.