Publication - Mathematica Policy Research
Transcription
Publication - Mathematica Policy Research
&RQWUDFW1R 0355HIHUHQFH1R +HOSLQJ8QZHG3DUHQWV %XLOG6WURQJ$QG+HDOWK\ 0DUULDJHV $&RQFHSWXDO)UDPHZRUN )RU,QWHUYHQWLRQV )LQDO5HSRUW -DQXDU\ 05RELQ'LRQ %DUEDUD'HYDQH\ 6KHHQD0F&RQQHOO 0HOLVVD)RUG +HDWKHU+LOO 3DPHOD:LQVWRQ 6XEPLWWHGWR 'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV $GPLQLVWUDWLRQIRU&KLOGUHQDQG)DPLOLHV 2IILFHRI3ODQQLQJ5HVHDUFKDQG(GXFDWLRQ )ORRU:HVW$HURVSDFH%XLOGLQJ /·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·V%LUWK 5DFLDO(WKQLF%DFNJURXQG 7\SHDQG4XDOLW\RI5HODWLRQVKLSDW&KLOG·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·VRU&RKDELWLQJ 3DUWQHU·V,QFRPH 3URYLGH)LQDQFLDO%RQXVHVIRU0DUULDJH (DVH:RUN5HTXLUHPHQWVRQ7ZR3DUHQW)DPLOLHV 3URYLGH)LQDQFLDO6HFXULW\$V:HOIDUH5HFLSLHQWV0RYH LQWR:RUN % &+,/'6833257(1)25&(0(17 6WULFWO\(QIRUFH&KLOG6XSSRUW ,QIRUP8QZHG)DWKHUVRI7KHLU3RWHQWLDO&KLOG6XSSRUW 2EOLJDWLRQV $OLJQ&KLOG6XSSRUW2EOLJDWLRQVZLWKWKH)DWKHU·V$ELOLW\ WR3D\DQG)RUJLYH6RPH$UUHDUDJHV 5HGXFHWKH$PRXQWRI&KLOG6XSSRUW5HWDLQHGE\WKH *RYHUQPHQW & 27+(5352*5$06$1'32/,&,(6 ([SDQG+HDOWK&DUH&RYHUDJHIRU7ZR3DUHQW)DPLOLHV 'LVUHJDUG6SRXVH·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·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·VELUWKPD\UHSUHVHQWDFULWLFDO PRPHQWIRUVWUHQJWKHQLQJFRXSOHERQGV7KHFRQFHSWXDOIUDPHZRUNWKHUHIRUHIRFXVHVRQ GHVLJQV IRU LQWHUYHQLQJ ZLWK XQZHG SDUHQWV MXVW EHIRUH RU VRRQ DIWHU WKH ELUWK RI D FKLOG 7KH FRQFHSWXDO IUDPHZRUN LV WKH SURGXFW RI VHYHUDO DFWLYLWLHV FRQGXFWHG LQ WKH 6WUHQJWKHQLQJ)DPLOLHV:LWK&KLOGUHQ%RUQ2XWRI:HGORFNVWXG\6WUHQJWKHQLQJ)DPLOLHV VWXG\ 675(1*7+(1,1*)$0,/,(6678'< 7KH RYHUDOO JRDO RI WKH 6WUHQJWKHQLQJ )DPLOLHV VWXG\ LV WR GHYHORS D IUDPHZRUN IRU LQWHUYHQLQJZLWK´IUDJLOHIDPLOLHVµMXVWEHIRUHRUVRRQDIWHUWKHELUWKRIDQRXWRIZHGORFN FKLOG)UDJLOHIDPLOLHVDUHGHILQHGDVHFRQRPLFDOO\DQGVRFLDOO\YXOQHUDEOHXQZHGSDUHQWVDQG WKHLUFKLOGUHQ 7RGHYHORSWKHFRQFHSWXDOIUDPHZRUNWKH6WUHQJWKHQLQJ)DPLOLHVVWXG\LQYROYHG • $Q([SHUW3DQHO$QH[SHUWSDQHOFRPSULVLQJSUDFWLWLRQHUVSROLF\PDNHUVDQG UHVHDUFKHUVSURYLGHGLQSXWZLWKUHJDUGWRDUHDVUHOHYDQWIRUVWUHQJWKHQLQJIDPLO\ UHODWLRQVKLSV • 5HYLHZ RI WKH /LWHUDWXUH 7KLV UHYLHZ IRFXVHG RQ WKH FKDUDFWHULVWLFV DQG QHHGV RI IDPLOLHV ZLWK FKLOGUHQ ERUQ RXW RI ZHGORFN DQG RQ WKH WKHRUHWLFDO FRQVWUXFWVDQGHPSLULFDOHYLGHQFHUHODWHGWRPDUULDJHDQGVWUHQJWKHQLQJFRXSOH UHODWLRQVKLSV [YL • ([WHQVLYH)LHOGZRUN7HOHSKRQHLQWHUYLHZVZLWKDEURDGUDQJHRISURJUDPV DQG LQGHSWK ILHOG UHVHDUFK RQ VHOHFWHG SURJUDPV SURYLGHG XVHIXO LQIRUPDWLRQ RQ SURJUDPV WKDW VHUYH ORZLQFRPH IDPLOLHV LQ JHQHUDO DQG RQ SURJUDPV WKDW IRFXVRQPDUULDJHDQGUHODWLRQVKLSVNLOOVDQGWKHWUDQVLWLRQWRSDUHQWKRRG •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· FRPSDWLELOLW\ DQG UHODWLRQVKLS LVVXHV 3URJUDPV DOVR YDU\ E\ WKH WDUJHW SRSXODWLRQ VHUYHG ZKLFK FDQ EH HQJDJHG RU PDUULHG FRXSOHV GLVWUHVVHG FRXSOHV QHZ SDUHQWV DQG PLGGOHDQG KLJKVFKRRO VWXGHQWV 0DUULDJH SURJUDPV WKDW LQWHUYHQH ZLWK FRXSOHV DURXQG WKH WLPH RI WKHLU FKLOG·V ELUWKDUHHVSHFLDOO\UHOHYDQWWRDFRQFHSWXDOIUDPHZRUNWKDWVHHNVWRVWUHQJWKHQQHZIUDJLOH IDPLOLHV0RVWUHVHDUFKHUVFRQFOXGHWKDWDOWKRXJKWKHSHULRGDURXQGDFKLOG·VELUWKLVRIWHQ MR\IXO WKH ZHHNV DQG PRQWKV DIWHUZDUG DUH W\SLFDOO\ VWUHVVIXO DQG FDQ VSDZQ PDODGDSWLYH EHKDYLRU SDWWHUQV IRU D VLJQLILFDQW QXPEHU RI QHZ SDUHQWV³HYHQ DPRQJ UHODWLYHO\ DGYDQWDJHGPLGGOHLQFRPHIDPLOLHV ([HFXWLYH6XPPDU\ [YLL Figure 1. Conceptual Framework: Strengthening Families ANTECEDENTS OF ANTECEDENTS OF FAMILY FORMATION AND FAMILY FORMATION AND CHILD CHILDWELL-BEING WELL-BEING PROGRAM PROGRAM INTERVENTIONS INTERVENTIONS INTERMEDIATE INTERMEDIATE OUTCOMES OUTCOMES Enhanced Child WellBeing and Development Family Demographics Relationship Type and Quality Multiple Partner Fertility Relationship Skills, Attitudes, Expectations Employability Physical and Mental Health Parenting Behavior Cultural Factors Economic Conditions Public Policies LONG-TERM LONG-TERM OUTCOMES OUTCOMES Healthy Marriage Program Design and Services Stronger Mother-Father Relationship Relationship Skills and Marriage Education Services to Improve Marriageability Policy Changes Improved Parent WellBeing Reduced Out-of-Wedlock Childbearing Stable Family Structure Father Involvement and Cooperation in Childrearing Program Implementation Increased Family Self-Sufficiency Positive Parenting and Improved Parent-Child Relationships Building Support Cultural Sensitivity Outreach & Recruitment Assessing Couples Improved Family Functioning Service Delivery Program Setting Mode of Service Delivery Program Intensity Staffing 7KUHHSURJUDPDSSURDFKHVWRLQWHUYHQWLRQGXULQJWKHWUDQVLWLRQWRSDUHQWKRRGLQFOXGH • (GXFDWLRQDO$SSURDFK7KLVSURJUDPDSSURDFKXVHVFODVVURRPWHFKQLTXHVWR SURYLGHFRXSOHVZLWKWKHFRPPXQLFDWLRQDQGFRQIOLFWUHVROXWLRQVNLOOVQHHGHGWR VXFFHVVIXOO\QDYLJDWHWKHVWUHVVIXOSHULRGDIWHUFKLOGELUWKDQGWRSUHYHQWHURVLRQ LQWKHPDULWDOUHODWLRQVKLS7KLVDSSURDFKW\SLFDOO\LQFOXGHVHGXFDWLRQRQVHOI FDUHDQGRQWKHFDUHDQGGHYHORSPHQWRILQIDQWV •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• &RPELQHG $SSURDFK 7KLV DSSURDFK FRPELQHV WKH WZR SUHFHGLQJ DSSURDFKHV,WRIIHUVDQHGXFDWLRQDOFRPSRQHQWVXFKDVDZRUNVKRSWRWHDFK VSHFLILFPDUULDJHDQGUHODWLRQVKLSVNLOOVHQFRXUDJHWKHSRVLWLYHLQYROYHPHQWRI IDWKHUVLQWKHLULQIDQWV·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³WKDWLV WRHQKDQFHWKHLU´PDUULDJHDELOLW\µ 0DUULDJHDELOLW\ LV FRQYHQWLRQDOO\ GHILQHG DV D SHUVRQ·V DWWUDFWLYHQHVV DV D PDUULDJH SDUWQHUEDVHGRQWKHKXPDQFDSLWDO³HGXFDWLRQDQGHPSOR\PHQWKLVWRU\³WKDWFRQWULEXWHWR RQH·VODERUPDUNHWSDUWLFLSDWLRQDQGHDUQLQJVDQGWKXVDELOLW\WRKHOSSURYLGHIRUDIDPLO\ 0DUULDJHDELOLW\FDQDOVREHFRQFHLYHGPRUHEURDGO\DVLQFOXGLQJSHUVRQDOUHVRXUFHVDQGVNLOOV WKDWLILPSURYHGPLJKWPDNHRQHPRUHDWWUDFWLYHDVDPDUULDJHSDUWQHU7KXVWKHW\SHVRI VHUYLFHVWKDWFRXOGLPSURYHPDUULDJHDELOLW\DUH • (PSOR\PHQW DQG (GXFDWLRQ 6HUYLFHV (PSOR\PHQW VHUYLFHV FRXOG LQFOXGH DVVLVWDQFH ZLWK MRE VHDUFK RQWKHMRE WUDLQLQJ MRE GHYHORSPHQW DQG QHWZRUNLQJDQGFODVVHVLQUHVXPHZULWLQJLQWHUYLHZLQJDQG´VRIWVNLOOVµVXFKDV WKHDELOLW\WRVKRZUHVSHFWIRUDXWKRULW\DQGPLQLPL]HFRQIOLFWLQWKHZRUNSODFH 3URJUDPV PD\ OLQN SDUWLFLSDQWV WR VXFK WUDLQLQJ DQG HGXFDWLRQ VHUYLFHV DV *HQHUDO (GXFDWLRQ 'HJUHH *(' SUHSDUDWLRQ DGXOW HGXFDWLRQ (QJOLVKDVD 6HFRQG/DQJXDJHFODVVHVDQGYRFDWLRQDOWUDLQLQJDOORIZKLFKFDQOHDGWRPRUH DQGEHWWHUMRERSSRUWXQLWLHV ([HFXWLYH6XPPDU\ [L[ • $VVHVVPHQW DQG 6HUYLFHV IRU +HDOWK 0HQWDO +HDOWK DQG 'RPHVWLF 9LROHQFH3DUWLFLSDQWVPD\QHHGWREHDVVHVVHGIRUDYDULHW\RIQHHGVUHODWHGWR WKHLU SHUVRQDO KHDOWK DQG ZHOOEHLQJ 6HUYLFHV FRXOG EH DUUDQJHG WR DGGUHVV SUREOHPV LQYROYLQJ SK\VLFDO KHDOWK PHQWDO KHDOWK LQFOXGLQJ GHSUHVVLRQ SRVW WUDXPDWLF VWUHVV GLVRUGHU DQG JHQHUDOL]HG DQ[LHW\ DQG VXEVWDQFH DEXVHGHSHQGHQF\ • /LIH6NLOOV3DUHQWLQJDQG&KLOG'HYHORSPHQW(GXFDWLRQ0DQ\SURJUDPV IRU ORZLQFRPH IDPLOLHV RIIHU SDUHQWLQJ HGXFDWLRQ WR KHOS SDUWLFLSDQWV XQGHUVWDQG WKH VWDJHV RI FKLOG GHYHORSPHQW GHYHORS UHODWLRQVKLS DQG FRPPXQLFDWLRQVNLOOVVHWDSSURSULDWHKRXVHKROGUXOHVDQGHIIHFWLYHO\GLVFLSOLQH WKHLUFKLOGUHQ/LIHVNLOOVVHUYLFHVWHDFKSDUHQWVKRZWRSHUIRUPWKHDFWLYLWLHVDQG WDVNVQHHGHGWRPDLQWDLQDKRXVHKROGDQGUHPDLQILQDQFLDOO\VWDEOH • &R3DUHQWLQJDQG5HVSRQVLEOH)DWKHUKRRG&RSDUHQWLQJVHUYLFHVIRFXVRQ WKH DELOLW\ RI PRWKHUV DQG IDWKHUV WR ZRUN DV D WHDP WR UDLVH WKHLU FKLOGUHQ 7KHVHVHUYLFHVHQFRXUDJHWKHILQDQFLDODQGHPRWLRQDOLQYROYHPHQWRIIDWKHUVLQ WKHLUFKLOGUHQ·VOLYHV7KH\RIWHQZRUNWRLQVWLOOYDOXHV³VXFKDVKRQHVW\KRQRU DQG FRPPLWPHQW³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³ LQFOXGLQJ 7HPSRUDU\ $VVLVWDQFH IRU 1HHG\ )DPLOLHV 7$1) IRRG VWDPSV 0HGLFDLG FKLOGFDUHVXEVLGLHVKRXVLQJDVVLVWDQFHDQGWKH(DUQHG,QFRPH7D[&UHGLW(,7&³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• 7$1) 3ROLF\ &KDQJHV 'LVUHJDUG VRPH RU DOO RI WKH VSRXVH RU FRKDELWLQJ SDUWQHU·VLQFRPHUHPRYHWKHFDWHJRULFDOHOLJLELOLW\UHTXLUHPHQWVIRUWZRSDUHQW IDPLOLHV WKDW VWLOO H[LVW LQ VRPH VWDWHV SURYLGH D OXPS VXP SD\PHQW RU KLJKHU PRQWKO\ EHQHILWV IRU PDUULHG FRXSOHV HDVH WKH ZRUN UHTXLUHPHQWV RQ WZR SDUHQW IDPLOLHV DQG SURYLGH ILQDQFLDO VHFXULW\ DV ZHOIDUH UHFLSLHQWV PRYH LQWR WKHODERUIRUFH • &KLOG 6XSSRUW 3ROLF\ &KDQJHV (QIRUFHFKLOGVXSSRUWSROLFLHVPRUHVWULFWO\ EULQJFKLOGVXSSRUWSD\PHQWVLQOLQHZLWKWKHIDWKHU·VDELOLW\WRSD\DQGIRUJLYH VRPH DUUHDUDJHV UHGXFH WKH DPRXQW RI FKLOG VXSSRUW UHWDLQHG E\ WKH JRYHUQPHQW DQG UHTXLUH SDWHUQLW\ HVWDEOLVKPHQW DQG GHWHUPLQDWLRQ RI FKLOG VXSSRUWREOLJDWLRQVIRUDOOXQZHGFRKDELWLQJIDWKHUV • 2WKHU 3ROLF\ &KDQJHV ([SDQG KHDOWK FDUH FRYHUDJH IRU PDUULHGSDUHQW IDPLOLHV GLVUHJDUG DOO RU VRPH RI VSRXVH·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³QRW RQO\ JHRJUDSKLFDOO\ EXW FXOWXUDOO\ DQG OLQJXLVWLFDOO\DVZHOO 7KH VHFRQG RSWLRQ³DGGLQJ D UHODWLRQVKLS FRPSRQHQW WR D SURJUDP WKDW FXUUHQWO\ VHUYHV ORZLQFRPH IDPLOLHV³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·VPLVVLRQ JRDOVDQGVHUYLFHV 7KHFKRLFHRIRQHSURJUDPGHYHORSPHQWSDWKRUWKHRWKHUPD\GHSHQGRQWKHQDWXUH RIWKHVSRQVRULQJRUJDQL]DWLRQVDQGWKHIRXQGDWLRQRIH[LVWLQJSURJUDPVHUYLFHVRQZKLFKD QHZ SURJUDP LV EXLOW 2UJDQL]DWLRQV WKDW DOUHDG\ UXQ SURJUDPV IRFXVLQJ RQ UHODWLRQVKLS VNLOOV FRXOG PRGLI\ WKHLU FRXSOH DQG PDUULDJH SURJUDPV WR DGGUHVV EURDGHU KXPDQ FDSLWDO DQG VHUYLFH QHHGV RIORZLQFRPH FRXSOHV ,QFRQWUDVW SXEOLF RU FRPPXQLW\ DJHQFLHV WKDW DOUHDG\SURYLGHVHUYLFHVWRORZLQFRPHIDPLOLHV³ZLWKKRPHYLVLWLQJSURJUDPVIDWKHUKRRG LQWHUYHQWLRQV SUHQDWDO FDUH LQLWLDWLYHV RU HDUO\ FKLOGKRRG GHYHORSPHQW SURJUDPV³FRXOG VWUHQJWKHQRUDGGDUHODWLRQVKLSRUKHDOWK\PDUULDJHFRPSRQHQWWRWKHLUVHUYLFHV7KHH[WHQW WRZKLFK7$1)DQGFKLOGVXSSRUWSROLF\FKDQJHVDUHLQWHJUDWHGLQWRHLWKHUSURJUDPPRGHO LV OLNHO\ WR GHSHQG RQ WKH LQYROYHPHQW RI KLJKOHYHO RIILFLDOV LQ D VWDWH ZHOIDUH DJHQF\ RU JRYHUQRU·V RIILFH ZKR FDQ ´FKDPSLRQµ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• 3URYLGH ,QIRUPDWLRQ RQ 0DUULDJH 5HVHDUFK DQG 0DUULDJH (GXFDWLRQ 0DQ\ LQGLYLGXDOV DUH XQDZDUH RI WKH UHVHDUFK VKRZLQJ WKDW FKLOGUHQ IDUH EHVW ZKHQ UDLVHG E\ PDUULHG SDUHQWV 2WKHUV DUH XQIDPLOLDU ZLWK WKH DUUD\ RI SURPLVLQJ SURJUDP DSSURDFKHV WKDW FRXOG ZLWK VRPH DGDSWDWLRQ EH XVHG WR KHOS FRXSOHV ZKR DUH LQWHUHVWHG LQ VWUHQJWKHQLQJ WKHLU UHODWLRQVKLSV ,QIRUPDWLRQ GLVVHPLQDWLRQ HIIRUWV FRXOG LQYROYH DGGUHVVLQJ WKHVH ´ZK\µ DQG ´KRZµTXHVWLRQVE\ 3URYLGLQJ HDV\WRUHDG DQG UHDGLO\ XQGHUVWDQGDEOH LQIRUPDWLRQ WDNHQ IURPUHVHDUFKRQWKHEHQHILFLDOHIIHFWVRIKHDOWK\PDUULDJHRQFKLOGZHOO EHLQJ &RPSLOLQJ GLVVHPLQDWLQJ DQG GHPRQVWUDWLQJ VRPH RI WKH PRVW SURPLVLQJ FXUULFXOD XVHG LQ PDUULDJH HGXFDWLRQ DQG UHODWLRQVKLS VNLOOV SURJUDPV 6XJJHVWLQJDUHDVIRUDGDSWDWLRQWRPDNHSURJUDPVPRUHDSSURSULDWHIRU ORZLQFRPHXQPDUULHGSDUHQWFRXSOHV • $YRLG2YHUVWDWLQJWKH5HVHDUFK)LQGLQJV3UHVHQWDWLRQVLQYROYLQJORQJOLVWV RI WKH VWDWLVWLFV RQ EHWWHU RXWFRPHV IRU FKLOGUHQ DQG DGXOWV LQ PDUULHG KRXVHKROGVFDQFRPHDFURVVDVVLPSOLVWLFDQGDVVOLJKWVWRWKHVXFFHVVHVRIVLQJOH SDUHQWV7KLVPLJKWEHDYRLGHGLIWKHSUHVHQWHUVDFNQRZOHGJHWKDWPDUULDJHLV QRWIRUHYHU\RQHWKDWJHWWLQJPDUULHGLVQRWDVXUHSDWKWRSRVLWLYHRXWFRPHV WKDWWKHUHDOJRDOLVWRLPSURYHWKHFKDQFHRIVXFFHVVDQGWKDWRWKHUWKLQJVEHLQJ HTXDODKHDOWK\PDUULDJHJLYHVSDUHQWVDQGFKLOGUHQDEHWWHUFKDQFHRIVXFFHVVLQ PDQ\VSKHUHVRIOLIH •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•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•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• &RQWH[WDQG6HWWLQJIRU6HUYLFH'HOLYHU\6HWWLQJVWKDWFRXOGVHUYHDVDEDVH IRUVHUYLFHGHOLYHU\DUHKHDOWKFDUHFOLQLFVDQGSURJUDPVZHOIDUHSURJUDPVHDUO\ FKLOGKRRG HGXFDWLRQ VHWWLQJV IDLWKEDVHG SURJUDPV DQG FRPPXQLW\EDVHG RUJDQL]DWLRQV • 0RGH RI 6HUYLFH 'HOLYHU\ 3RVVLEOH PRGHV RI VHUYLFH GHOLYHU\ DUH FODVVHV OHFWXUHVVHPLQDUVRUZRUNVKRSVKRPHYLVLWVRUVXSSRUWJURXSV ([HFXWLYH6XPPDU\ [[LY • 3URJUDP,QWHQVLW\3URJUDPVRIWHQIDFHDWUDGHRIIEHWZHHQSURYLGLQJIHZHU VHUYLFHV WR PRUH SHRSOH RU SURYLGLQJ PRUH VHUYLFHV WR IHZHU SHRSOH 6HUYLFHV FDQ EH FRQVLGHUHG DV ORZ PRGHUDWH RU KLJK LQ LQWHQVLW\ GHSHQGLQJ RQ WKHLU IUHTXHQF\ DQG GXUDWLRQ SDUWLFLSDQWV· H[SRVXUH WR WKH SURJUDP DQG H[WHQW RI LQWHUDFWLRQEHWZHHQSDUWLFLSDQWVDQGSURJUDPVWDII • 3URJUDP 6WDIILQJ DQG 7UDLQLQJ +LULQJ DQG WUDLQLQJ KLJKTXDOLW\ VWDII WR LPSOHPHQW WKH SURJUDP LV NH\ ,QGLYLGXDOV ZKR LPSOHPHQW UHODWLRQVKLS DQG PDUULDJH HGXFDWLRQ SURJUDPV PXVW EH WUDLQHG DQG FHUWLILHG LQ WKH XVH RI WKH SURJUDP·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·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·VPDMRUREMHFWLYHLVWRGHYHORSDFRQFHSWXDO IUDPHZRUNIRULQWHUYHQWLRQVWKDWZRXOGDGGUHVVWKHQHHGVDQGFLUFXPVWDQFHVRIXQPDUULHG SDUHQWV DQG SURYLGH UHODWLRQVKLS VNLOOV LQVWUXFWLRQ DQG NQRZOHGJH IRU WKRVH ZKR ZRXOG FKRRVH WR IRUP DQG VXVWDLQ KHDOWK\ PDUULDJHV %XLOGLQJ RQ UHVHDUFK LQGLFDWLQJ WKDW WKH SHULRGDURXQGWKHWLPHRIDFKLOG·VELUWKPD\UHSUHVHQWDFULWLFDOPRPHQWIRUVWUHQJWKHQLQJ FRXSOH ERQGV WKLV FRQFHSWXDO IUDPHZRUNZLOO IRFXV RQ GHYHORSLQJ GHVLJQV IRU LQWHUYHQLQJ ZLWKXQZHGSDUHQWVMXVWEHIRUHRUVRRQDIWHUWKHELUWKRIDFKLOG7KHVHSDUHQWVWRJHWKHU ZLWKWKHLUFKLOGDUHVRPHWLPHVFDOOHG´IUDJLOHIDPLOLHVµ )UDJLOH)DPLOLHV'HILQHG :KHQDQXQZHGFRXSOHKDVDFKLOGWKHUHVXOWLQJIDPLO\IDFHVKHLJKWHQHGYXOQHUDELOLW\ WR D YDULHW\ RI HFRQRPLF DQG VRFLDO SUREOHPV DIIHFWLQJ WKH FRXSOH WKH SDUHQWV DV LQGLYLGXDOVDQGWKHFKLOG,QSDUWLFXODUWKHUHLVDKLJKULVNWKH\ZLOOEHXQVXFFHVVIXOLQ IRUPLQJDVXVWDLQHGDQGFORVHIDPLO\XQLW%HFDXVHRIWKHVHZHOOGRFXPHQWHGULVNVDQG WKHFRQVHTXHQFHVRIQRQPDULWDOFKLOGEHDULQJIRUSDUHQWVDQGFKLOGUHQWKHVHIDPLOLHVDUH QRZFRPPRQO\FDOOHG´IUDJLOHIDPLOLHVµ 7KLVUHSRUWSUHVHQWVWKHFRQFHSWXDOIUDPHZRUN7KLVLQWURGXFWRU\FKDSWHUUHYLHZVWKH UHVHDUFK DQG SROLF\ FRQWH[W IRU WKH 6WUHQJWKHQLQJ )DPLOLHV VWXG\ GHVFULEHV WKH VWXG\ DFWLYLWLHV RQ ZKLFK WKH FRQFHSWXDO IUDPHZRUN LV EDVHG DQG SUHVHQWV DQ RYHUYLHZ RI WKH FRQFHSWXDO IUDPHZRUN &KDSWHU ,, VXPPDUL]HV ZKDW LV NQRZQ DERXW WKH DQWHFHGHQWV RI IDPLO\ IRUPDWLRQ DQG ZKDW WKH UHVHDUFK VXJJHVWV DERXW RSSRUWXQLWLHV IRU LQWHUYHQWLRQ &KDSWHUV ,,, ,9 DQG 9 IRFXV RQ WKUHH JHQHUDO DSSURDFKHV WR LQWHUYHQWLRQ³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·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·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• 0RVW /RZ,QFRPH 8QPDUULHG 3DUHQWV $UH 5RPDQWLFDOO\ ,QYROYHG DQG +DYH+LJK+RSHVIRU7KHLU5HODWLRQVKLSVDWWKH7LPHRI%LUWK$PRQJ ORZLQFRPH XQPDUULHG SDUHQWV WKRVH ZKRVH FKLOGUHQ·V ELUWKV DUH FRYHUHG E\ 0HGLFDLG WKH YDVW PDMRULW\ SHUFHQW DUH URPDQWLFDOO\ LQYROYHG DERXW KDOI DUH OLYLQJ WRJHWKHU DQG PRUH WKDQ KDOI RI WKH PRWKHUV WKLQN WKHLU FKDQFHV RI PDUU\LQJ WKH IDWKHUV DUH ´SUHWW\ JRRGµ RU ´DOPRVW FHUWDLQµ DW WKH WLPH RI WKH ELUWK0RVWRIWKHELRORJLFDOIDWKHUVDUHKLJKO\LQYROYHGZLWKDQGVXSSRUWLYHRI WKHPRWKHUVGXULQJSUHJQDQF\0F/DQDKDQHWDO&DUOVRQ • 8QPDUULHG3DUHQWV9LHZ0DUULDJHDV%HQHILFLDOIRU&KLOGUHQ0RUHWKDQ SHUFHQWRIORZLQFRPHXQPDUULHGPRWKHUVDJUHHWKDW´LWLVEHWWHUIRUFKLOGUHQ LIWKHLUSDUHQWVDUHPDUULHGµ(YHQXQPDUULHGSDUHQWVZKRDUHQRWURPDQWLFDOO\ LQYROYHG DQG WKRVH QRW FRKDELWLQJ DJUHH WKDW PDUULDJH LV EHWWHU IRU FKLOGUHQ &DUOVRQ • 'HVSLWH ,QLWLDO ([SHFWDWLRQV DQG +RSHV 0RVW 8QZHG 3DUHQWV 5HPDLQ 8QPDUULHG2QH<HDU$IWHU%LUWK7KHPRQWKIROORZXSVXUYH\GDWDVKRZ WKDWPDQ\FRXSOHV·H[SHFWDWLRQVDERXWJHWWLQJPDUULHGGRQRWPDWHULDOL]H,QWKH 0HGLFDLG VXEJURXS IHZHU WKDQ SHUFHQW RI WKH EDVHOLQH FRKDELWHUV KDG PDUULHGZLWKLQPRQWKV$ERXWSHUFHQWRIWKRVHFRKDELWLQJDWWKHWLPHRI ELUWK ZHUH VWLOO FRKDELWLQJ D \HDU ODWHU &RXSOHV ZKR ZHUH ´YLVLWLQJµ³ URPDQWLFDOO\ LQYROYHG EXW QRW OLYLQJ WRJHWKHU³ZHUH PRVW OLNHO\ WR FKDQJH WKH VWDWXV RI WKHLU UHODWLRQVKLS WKDW LV ZKLOH DOPRVW RQHWKLUG KDG PRYHG LQ WRJHWKHU PRUH WKDQ RQHTXDUWHU ZHUH QR ORQJHU URPDQWLFDOO\ LQYROYHG EXW UHPDLQHG´IULHQGVµ&DUOVRQ &KDSWHU,,QWURGXFWLRQ •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³DSULYDWHQRQSDUWLVDQFRDOLWLRQIRUPHGLQ³HQOLVWVSHRSOH LQ DFDGHPLD PHGLFLQH VRFLDO VFLHQFH FKDULWDEOH IRXQGDWLRQV WKH FOHUJ\ DQG WKH PHGLD WR WDNHDFOHDUVWDQGDJDLQVWRXWRIZHGORFNWHHQDJHSUHJQDQF\ 5HVSRQVLEOH )DWKHUKRRG 3URJUDPV 2WKHU SURJUDP UHVSRQVHV WR WKH SUREOHP RI VLQJOHSDUHQWIDPLOLHVDQGRXWRIZHGORFNELUWKVVHHNWRSURPRWHUHVSRQVLELOLW\DPRQJPHQ ZKR DOUHDG\ KDYH IDWKHUHG FKLOGUHQ RXW RI ZHGORFN (QIRUFLQJ FKLOG VXSSRUW HVWDEOLVKLQJ SDWHUQLW\ HDUO\ DQG SURPRWLQJ WKH IDWKHU·V LQYROYHPHQW LQ WKH FKLOG·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´WHDP SDUHQWLQJµ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´PDUULDJH HGXFDWLRQµ SURJUDPV KDYH HPHUJHG LQ UHFHQW \HDUV WR SUHSDUH FRXSOHV IRU PDUULDJH RU WR VWUHQJWKHQ H[LVWLQJPDUULDJHVDQGSUHYHQWGLYRUFH6ROOHH'HYHORSHGSULPDULO\LQUHVSRQVHWRWKH FOLPELQJGLYRUFHUDWHVPDUULDJHSURJUDPVPD\IRFXVRQEXLOGLQJUHODWLRQVKLSVNLOOVDGGUHVV VRPH RI WKH VWUHVVHV DVVRFLDWHG ZLWK WKH WUDQVLWLRQ WR SDUHQWKRRG RU RIIHU PDUULDJH HQULFKPHQW DFWLYLWLHV³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³2NODKRPD LQ SDUWLFXODU³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·VGHVLUHWRNHHSDIDWKHULQYROYHG LQWKHFKLOGUHQ·VXSEULQJLQJDQGWKHFRXSOH·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• ([SHUW 3DQHO $Q H[SHUW SDQHO FRPSULVLQJ SUDFWLWLRQHUV SROLF\PDNHUV DQG UHVHDUFKHUVSURYLGHGLQSXWZLWKUHJDUGWRDUHDVUHOHYDQWIRUVWUHQJWKHQLQJIDPLO\ UHODWLRQVKLSV • 5HYLHZ RI WKH /LWHUDWXUH 7KLV UHYLHZ IRFXVHG RQ WKH FKDUDFWHULVWLFV DQG QHHGV RI IDPLOLHV ZLWK FKLOGUHQ ERUQ RXW RI ZHGORFN DQG RQ WKH WKHRUHWLFDO FRQVWUXFWVDQGHPSLULFDOHYLGHQFHUHODWHGWRVWUHQJWKHQLQJFRXSOHUHODWLRQVKLSV • ([WHQVLYH)LHOGZRUN7HOHSKRQHLQWHUYLHZVZLWKDEURDGUDQJHRISURJUDPV DQG LQGHSWK ILHOG UHVHDUFK RQ VHOHFWHG SURJUDPV SURYLGHG LQIRUPDWLRQ RQ SURJUDPVWKDWVHUYHORZLQFRPHIDPLOLHVLQJHQHUDODQGRQWKRVHWKDWIRFXVRQ UHODWLRQVKLSVNLOOVDQGWKHWUDQVLWLRQWRSDUHQWKRRG •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·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·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•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•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• &HQWHU IRU )DWKHUV )DPLOLHV DQG :RUNIRUFH 'HYHORSPHQW %DOWLPRUH &):' KDV WZR SULPDU\ FRPSRQHQWV 0HQ·V 6HUYLFHV ZKLFK SUHGRPLQDQWO\ VHUYHV ORZLQFRPH EODFN IDWKHUV DQG ZRUNIRUFH GHYHORSPHQW HIIRUWV PDGH SRVVLEOH WKURXJK 675,9( DQ LQWHQVLYH HPSOR\PHQW SURJUDP IRU PHQ DQG ZRPHQ7KHJRDORI0HQ·V6HUYLFHVLVWRKHOSPHQEHFRPHPRUHDFWLYHLQWKHLU FKLOGUHQ·V OLYHV LW WDNHV D FRPSUHKHQVLYH DSSURDFK WKDW LQFOXGHV FDVH PDQDJHPHQW OLIH VNLOOV GHYHORSPHQW DQG SDUHQWLQJ HGXFDWLRQ 675,9( LV DQ LQWHQVLYH MRE UHDGLQHVV ZRUNVKRS WKDW FRPELQHV FULWLFDO WKLQNLQJ VHOI H[DPLQDWLRQ UHODWLRQVKLS EXLOGLQJ DIILUPDWLRQ SUDFWLFDO VNLOO GHYHORSPHQW DQG WZR \HDUV RI SRVWJUDGXDWLRQ PRQLWRULQJ DQG DVVLVWDQFH LQ MRE UHWHQWLRQ DQG DGYDQFHPHQW • &KLOGUHQ )LUVW 7XOVD &KLOGUHQ )LUVW LV D QXUVH KRPH YLVLWDWLRQ SURJUDP IRU PRWKHUV ZKR KDYH OLWWOH ILQDQFLDO RU VRFLDO VXSSRUW DQG DUH H[SHFWLQJ WR GHOLYHU DQG SDUHQW WKHLU ILUVW FKLOG 3XEOLF KHDOWK QXUVHV FRQGXFW KRPH YLVLWV GXULQJ SUHJQDQF\ DQG LQ WKH ILUVW WZR \HDUV RI WKH FKLOG·V OLIH 7KH QXUVHV XVH ZHOO GHYHORSHGSURJUDPSURWRFROVGXULQJWKHVH\HDUVIROORZLQJDVFKHGXOHRIZHHNO\ ELZHHNO\ DQG HYHQWXDOO\ PRQWKO\ YLVLWV 7KH\ IRFXV RQ WKH SHUVRQDO KHDOWK RI WKH PRWKHUV DQG FKLOGUHQ WKH PDWHUQDO UROH SHUVRQDO VRXUFHV RI VXSSRUW DQG DFFHVVLQJFRPPXQLW\UHVRXUFHV •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·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³H[SHUW SDQHO OLWHUDWXUH UHYLHZ LQGHSWK ILHOGZRUNDQGWHFKQLFDODVVLVWDQFH³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³ZKLFKLVWKHIRFXVRI&KDSWHU,,RIWKLVUHSRUW³ FRQVLVWVRIWKHNH\DQWHFHGHQWVRIWKHORQJHUWHUPRXWFRPHVRIIDPLO\IRUPDWLRQDQGFKLOG ZHOOEHLQJ 7KHVH DQWHFHGHQWV ZHUH LGHQWLILHG WKURXJK D UHYLHZ RI WKH OLWHUDWXUH RQ WKH EDFNJURXQGFKDUDFWHULVWLFVDQGFLUFXPVWDQFHVRIIDPLOLHVZLWKFKLOGUHQERUQRXWRIZHGORFN 7KH\ PD\ LQFOXGH IRU H[DPSOH GHPRJUDSKLF FKDUDFWHULVWLFV WKH W\SH DQG TXDOLW\ RI WKH SDUHQWDO UHODWLRQVKLS DQG PXOWLSOH SDUWQHU IHUWLOLW\ 7KH\ DOVR LQFOXGH SDUHQWV·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igure I.1 Conceptual Framework: Strengthening Families ANTECEDENTS ANTECEDENTSOF OF FAMILY FORMATION AND FAMILY FORMATION AND CHILD WELL-BEING CHILD WELL-BEING PROGRAM PROGRAM INTERVENTIONS INTERVENTIONS INTERMEDIATE INTERMEDIATE OUTCOMES OUTCOMES Enhanced Child WellBeing and Development Family Demographics Relationship Type and Quality Multiple Partner Fertility Relationship Skills, Attitudes, Expectations Employability Physical and Mental Health Parenting Behavior Cultural Factors Economic Conditions Public Policies LONG-TERM LONG-TERM OUTCOMES OUTCOMES Healthy Marriage Program Design and Services Stronger Mother-Father Relationship Relationship Skills and Marriage Education Services to Improve Marriageability Policy Changes Improved Parent WellBeing Reduced Out-of-Wedlock Childbearing Stable Family Structure Father Involvement and Cooperation in Childrearing Program Implementation Increased Family Self-Sufficiency Positive Parenting and Improved Parent-Child Relationships Building Support Cultural Sensitivity Outreach & Recruitment Assessing Couples Improved Family Functioning Service Delivery Program Setting Mode of Service Delivery Program Intensity Staffing 3URJUDP ,QWHUYHQWLRQV &ROXPQ 3URJUDP LQWHUYHQWLRQV WR VWUHQJWKHQ IDPLOLHV ZLWK FKLOGUHQ ERUQ RXW RI ZHGORFN DUH WKH FRUQHUVWRQH RI WKLV FRQFHSWXDOIUDPHZRUN $V GLVFXVVHGLQ&KDSWHUV,,,WKURXJK9WKHIROORZLQJWKUHHW\SHVRISURJUDPLQWHUYHQWLRQVDUH FRQVLGHUHG UHODWLRQVKLS WUDLQLQJ DQG PDUULDJH HGXFDWLRQ VHUYLFHV WR LPSURYH PDUULDJHDELOLW\DQGSROLF\RSWLRQVWRHQFRXUDJHPDUULDJH0DUULDJHDELOLW\LVFRQYHQWLRQDOO\ GHILQHG DV D SHUVRQ·V DWWUDFWLYHQHVV DV D PDUULDJH SDUWQHU EDVHG RQ WKH KXPDQ FDSLWDO³ HGXFDWLRQDQGHPSOR\PHQWKLVWRU\³WKDWFRQWULEXWHWRRQH·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·WDUJHWSRSXODWLRQSDUWLFLSDQWVDQG QRQSDUWLFLSDQWV DQG DQ HVWLPDWH RI WKH LPSDFWV RI SURJUDP DQG SROLF\ LQWHUYHQWLRQV RQ IDPLO\IRUPDWLRQDQGFKLOGZHOOEHLQJ &KDSWHU,,QWURGXFWLRQ &+$37(5,, )$0,/<)250$7,21,1/2:,1&20( 3238/$7,216 , QWHUYHQWLRQV WKDW VHHN WR GLUHFWO\ DIIHFW IDPLO\ UHODWLRQVKLSV VKRXOG EH JURXQGHG LQ D WKRURXJKXQGHUVWDQGLQJRIWKHFRQWH[WDQGFLUFXPVWDQFHVXQGHUZKLFKSDUHQWVGHFLGHWR PDUU\FRKDELWRUOLYHDORQHDQGRIKRZWKHVHFKRLFHVLPSDFWWKHLUFKLOGUHQ$ODUJH ERG\RIUHVHDUFKVKRZVIDPLO\VWUXFWXUHPDWWHUVIRUFKLOGUHQ·VZHOOEHLQJDQGGHYHORSPHQW 0F/DQDKDQDQG6DQGHIXU'XQFDQDQG%URRNV*XQQ$PDWR$PDWRDQG 5LYHUD(YHQDIWHUWDNLQJORZLQFRPHLQWRDFFRXQWILQGLQJVVKRZVLQJOHSDUHQWLQJVWLOO FRQWULEXWHV WR ORZHU HGXFDWLRQDO DWWDLQPHQW DQG PRUH EHKDYLRUDO DQG SV\FKRORJLFDO SUREOHPV LQ FKLOGUHQ 0F/DQDKDQ 7KLV FKDSWHU GLVFXVVHV IDFWRUV RI SDUWLFXODU UHOHYDQFH WR WKH IRUPDWLRQ DQG SRVLWLYH GHYHORSPHQW RI ORZLQFRPH IDPLOLHV DQG WKHLU FKLOGUHQZLWKWKHDLPRILGHQWLI\LQJWKHPRVWSURPLVLQJDUHDVIRULQWHUYHQWLRQ &KLOGUHQ GHYHORS ZLWKLQ D FRPSOH[ ´HFRV\VWHPµ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·V LQGLYLGXDO FKDUDFWHULVWLFV DQG UHVRXUFHV $QG DOO RI WKHVH IDFWRUV DUH HPEHGGHG ZLWKLQ DQG RIWHQ DIIHFWHG E\ WKH EURDGHU FXOWXUH HFRQRPLF FRQGLWLRQVDQGWKHVWUXFWXUHRIWD[DQGWUDQVIHUSROLFLHV S S S S S S S S S TANF C hild support enforcem ent H ealth c are, child care subsidie s, housing assistan ce, taxes, an d EIT C PU B LIC P O LIC IE S U nem plo ym ent R ate Availability of jobs fo r low sk illed w ork ers EC O N O M IC C O N D IT IO N S Acceptance of altern atives to m arriag e G ender role expecta tions G ender distrust W om en 's econom ic indepen dence C U LT U R A L F AC T O R S &KDSWHU,,)DPLO\)RUPDWLRQLQ/RZ,QFRPH3RSXODWLRQV S S S S S S S S S S S R elationship skills A ttitudes and expectations E ducation/em ployability H ealth (phys ical, m ental) P arenting be havior K in support R eligiosity F A M IL Y F U N C T O N IN G L e ve l o f p a re n ta l c o n flic t C o o p e ra tio n in S c h ild re a rin g S P A R E N T IN G B E H A V IO R E m o tio n a l s u p p o rt C o g n itive s tim u la tio n M o n ito rin g / s u p e rv is io n M O T H ER 'S AN D F AT H E R 'S PE R SO N AL C H AR A C T E R IST IC S A N D R ESO U R C E S: D YN A M IC F AC T O R S M a rria g e Q u a lity a n d S ta b ility o f R e la tio n s h ip F a m ily S tru c tu re L ivin g A rra n g e m e n t S S S A ge R ace/E thnicity T ype of relationship M ultiple partn er fertility E xperiences of dom estic violence M O T H E R -F A T H E R R E L A T IO N S H IP S S S S S M O T H ER 'S AN D F AT H E R 'S PE R SO N AL C H AR AC T E R IST IC S A N D R ESO U R C ES AT T IM E O F T H EIR C H ILD 'S BIR T H : S T AT IC F AC T O R S F A M ILY F O R M A T IO N IN LO W -IN C O M E P O P U LAT IO N S F IG U R E II.1 S S S G EN ET IC F AC T O R S C H IL D W E L L -B E IN G S o c io e m o tio n a l an d b e h a vio ra l d e ve lo p m e n t C o g n itive d e ve lo p m e n t/s c h o o l a c h ie ve m e n t H e a lth EX T R A F AM ILIA L IN FLU E N C ES Scho ol S C hild care S Peers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·VHFRQRPLFLQGHSHQGHQFH $FFHSWDQFH RI $OWHUQDWLYHV WR 0DUULDJH ,Q UHFHQW GHFDGHV $PHULFDQV KDYH GUDPDWLFDOO\FKDQJHGWKHLUYLHZRIVH[XDOLW\PDUULDJHDQGFKLOGEHDULQJ6WXGLHVVKRZPHQ DQG ZRPHQ RI GLIIHUHQW UDFLDOHWKQLF JURXSV DQG LQFRPH OHYHOV VHH PDUULDJH DV DQ LGHDO 7KRUQWRQ 7XFNHU DQG 0LWFKHOO.HUQDQ 7XFNHU 2URSHVD DQG *RUPDQ 0F/DQDKDQHWDO+RZHYHUWKH´QRUPDWLYHLPSHUDWLYHµ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³ ZKHWKHU D SUHFXUVRU RU D VXEVWLWXWH WR PDUULDJH³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·VDELOLW\WR EH VH[XDOO\ IDLWKIXO RU WR EH UHVSRQVLEOH ZLWK WKH IDPLO\·V PRQH\ DQG ZLWK WKHLU FKLOGUHQ $OWKRXJKPDQ\RIWKHVHZRPHQVDLGPDUULDJHLVDQLGHDOWKH\DVSLUHWRWKH\YRLFHGFRQFHUQV DERXWJHWWLQJWUDSSHGLQPDUULDJHVWKDWGRQRWRIIHUWKHEHQHILWVWKH\H[SHFWDQGWKDWWKH\ EHOLHYHZRXOGRQO\FRPSOLFDWHWKHLUOLYHV :RPHQ·V (FRQRPLF ,QGHSHQGHQFH 6FKRODUV KDYH WKHRUL]HG WKDW WKH LQFUHDVLQJ HFRQRPLFRSSRUWXQLWLHVRSHQWRZRPHQPD\UHGXFHWKHLULQFHQWLYHWRPDUU\E\LQFUHDVLQJ WKHLU DELOLW\ WR VXSSRUW WKHPVHOYHV ILQDQFLDOO\ RXWVLGH RI PDUULDJH +RZHYHU HPSLULFDO UHVHDUFK VXJJHVWV HDUQLQJ PRUH PRQH\ PD\ PDNH ZRPHQ PRUH UDWKHU WKDQ OHVV OLNHO\ WR PDUU\ 2SSHQKHLPHU /LFKWHU DQG *UDHIH 2QH DQDO\VLV XVLQJ QDWLRQDOO\ UHSUHVHQWDWLYH GDWD VKRZV HFRQRPLF LQGHSHQGHQFH LQFUHDVHV ZRPHQ·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·VELRORJLFDO IDWKHUPD\VXIIHUDUHGXFWLRQLQDZLGHYDULHW\RIEHQHILWVLQFOXGLQJ7$1)IRRGVWDPSV 0HGLFDLGKRXVLQJDVVLVWDQFHDQGFKLOGFDUHVXEVLGLHV$ZRPDQZKRGRHVQRWPDUU\EXW OLYHVZLWKWKHIDWKHURIKHUFKLOGDOVRLVVXEMHFWWRWKHVHGLVLQFHQWLYHVEXWWKHGLVLQFHQWLYHVWR FRKDELWDWLRQDUHQRWDVVWURQJEHFDXVHLWLVHDVLHUQRWWRUHSRUWDFRKDELWLQJSDUWQHUWKDQWR QRWUHSRUWDVSRXVH0RUHRYHUOLYLQJZLWKVRPHRQHZKRLVQRWWKHFKLOG·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·DJHZKHQ WKHLU FKLOG ZDV ERUQ WKHLU UDFLDOHWKQLF EDFNJURXQGV ZKHWKHU WKH\ KDYH DQRWKHU FKLOG RU &KDSWHU,,)DPLO\)RUPDWLRQLQ/RZ,QFRPH3RSXODWLRQV FKLOGUHQE\GLIIHUHQWSDUWQHUVWKHQDWXUHRIWKHLUUHODWLRQVKLSDQGSODQVIRUPDUULDJHZKHQ WKHFKLOGLVERUQDQGH[SHULHQFHVRIGRPHVWLFYLROHQFH 3DUHQW$JHDW&KLOG·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·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·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·VELUWK & 3$5(17$/5(6285&(6$1'&$3$%,/,7,(6'<1$0,&)$&7256 6RPH SDUHQWDO FKDUDFWHULVWLFV WKDW DIIHFW IDPLO\ IRUPDWLRQ DQG FKLOG ZHOOEHLQJ FDQ EH FKDQJHG)LJXUH,,,QWHUYHQWLRQVPD\FKDQJHSDUHQWV·UHODWLRQVKLSVNLOOVDQGDWWLWXGHVDQG H[SHFWDWLRQVDERXWPDUULDJH7KH\PD\LQFUHDVHWKHSRWHQWLDOWREHFRPHVXFFHVVIXOPDWHV DQGSDUHQWVE\IRUH[DPSOHLPSURYLQJSDUHQWV·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·V ELUWK WKH PDMRULW\ RI XQPDUULHG PRWKHUV SHUFHQW DQG IDWKHUV SHUFHQWLQWKH)UDJLOH)DPLOLHVVXUYH\DJUHHGRUVWURQJO\DJUHHGZLWKWKLVVWDWHPHQW´,WLV EHWWHUIRUFKLOGUHQLIWKHLUSDUHQWVDUHPDUULHGµ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·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³LQFOXGLQJ FKURQLF FRQGLWLRQV IXQFWLRQDO OLPLWDWLRQV DQG GLVDELOLWLHV³WKDQ SHRSOH LQ WKH JHQHUDO SRSXODWLRQ =HGOHZVNL DQG $OGHUVRQ $ QDWLRQDOO\ UHSUHVHQWDWLYH VWXG\ WKDW LQWHUYLHZHG DGXOW ZHOIDUH UHFLSLHQWV VKRZV SHUFHQW VDLG KHDOWK SUREOHPV OLPLW WKHLU DELOLW\ WR ZRUN ,Q DGGLWLRQPDQ\SDUHQWVZKRZHUHWHUPLQDWHGIURP7$1)EHFDXVHRIVDQFWLRQVUHSRUWHGWKH\ ZHUH XQDEOH WR FRPSO\ ZLWK WKH SURJUDP·V UHTXLUHPHQWV EHFDXVH RI D KHDOWK FRQGLWLRQ LOOQHVV RU GLVDELOLW\ 6ZHHQH\ 6XFK SUREOHPV FDQ DIIHFW PDQ\ VSKHUHV RI D SHUVRQ·V OLIHLQFOXGLQJWKHDELOLW\WRFRQWULEXWHWRGDLO\KRXVHKROGWDVNVDQGFKRUHVDQGWRFDUU\RXW SDUHQWLQJWDVNV7KHVHOLPLWDWLRQVFDQIXUWKHUVWUHVVDFRXSOH·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• 0DMRU 'HSUHVVLRQ :HOIDUH UHFLSLHQWV DUH DW JUHDWHU ULVN WKDQ WKH JHQHUDO SRSXODWLRQIRUPDMRUGHSUHVVLRQ0RRUHHWDO4XLQWHWDO0RUH WKDQRQHTXDUWHURIDVDPSOHRIZHOIDUHUHFLSLHQWVLQDQXUEDQ0LFKLJDQFRXQW\ ZDVFODVVLILHGDVKDYLQJDPDMRUGHSUHVVLYHGLVRUGHUFRPSDUHGZLWKSHUFHQW LQ WKH JHQHUDO SRSXODWLRQ 'DQ]LJHU HW DO 7KH &DO:25.6 3UHYDOHQFH 3URMHFW ILQGV SHUFHQW RI FXUUHQW UHFLSLHQWV LQ RQH &DOLIRUQLD FRXQW\ DQG SHUFHQW RI ZHOIDUH DSSOLFDQWV LQ DQRWKHU FRXQW\ FRXOG EH FODVVLILHG DV KDYLQJ PDMRUGHSUHVVLRQ&KDQGOHUDQG0HLVHO • *HQHUDOL]HG $Q[LHW\ 'LVRUGHU *$' *$' LV HVWLPDWHG WR EH SUHVHQW LQ DERXWSHUFHQWRIZRPHQLQWKHJHQHUDOSRSXODWLRQDFFRUGLQJWRWKH1DWLRQDO &R0RUELGLW\ 6WXG\ WKH ODUJHVW QDWLRQDOO\ UHSUHVHQWDWLYH HSLGHPLRORJLFDO VWXG\ RIPHQWDOKHDOWKLQWKH8QLWHG6WDWHV%XWUHFHQWVWXGLHVRIZHOIDUHUHFLSLHQWV ILQGKLJKHUUDWHVRIWKLVGLVRUGHUDERXWSHUFHQWLQWKH0LFKLJDQVWXG\DQGWR SHUFHQWLQWKH&DOLIRUQLDVDPSOHV •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·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·VDXWRQRP\&RZDQDQG&RZDQ3DUHQWLQJVNLOOV DOVR PD\ DIIHFW WKH OLNHOLKRRG RI IDPLO\ IRUPDWLRQ ,Q FRQVLGHULQJ PDUULDJH DQ XQZHG SDUHQWPD\WDNHLQWRDFFRXQWDSRWHQWLDOPDWH·VDELOLW\WRHIIHFWLYHO\SDUHQWWKHFKLOGUHQ .LQ6XSSRUW 7KHLQIOXHQFHRIH[WHQGHGIDPLO\PD\DIIHFWIDPLO\IRUPDWLRQGHFLVLRQVDQGSDUHQWLQJ RIORZLQFRPHFRXSOHV&RXSOHVPD\UHFHLYHVXSSRUWIURPH[WHQGHGIDPLO\LQWKHIRUPRI PRQH\KHOSZLWKFKLOGFDUHHQFRXUDJHPHQWRUJXLGDQFH$OWHUQDWLYHO\WKHH[WHQGHGIDPLO\ FRXOG FRPSOLFDWH D FRXSOH·V GHFLVLRQ WR VWD\ WRJHWKHU DQGRU PDUU\ 6RPHWLPHV IDPLO\ PHPEHUV GR QRW DSSURYH RI WKHLU ORYHG RQH·VFKRLFH RI SDUWQHU RU WKH IDFWWKDW WKHUH LV D FKLOGRXWRIZHGORFN7KLVFDQEHDQLPSRUWDQWLVVXHZLWKUHJDUGWRWHHQSDUHQWVPDQ\RI ZKRPDUHVWLOOOLYLQJDWKRPHXQGHUWKHDXWKRULW\RIWKHLUSDUHQWV 7KH LQYROYHPHQW RI H[WHQGHG IDPLO\ DOVR FDQ FUHDWH FRQIOLFW DURXQG FKLOGUHDULQJ FUHDWLQJ LPSOLFDWLRQV IRU WKH FKLOGUHQ·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·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·VOLIH 7KH HQYLURQPHQWDO IDFWRUV DQG WKH G\QDPLF SHUVRQDO FKDUDFWHULVWLFV WKDW DIIHFW IDPLO\ IRUPDWLRQ GLVFXVVHG LQ WKLV FKDSWHU VXJJHVW W\SHV RI VHUYLFHV WKDW FRXOG EH SURYLGHG RU SROLFLHVWKDWFRXOGEHFKDQJHGIRUWKRVHXQZHGDGXOWSDUHQWVZKRGRFKRRVHWRPDUU\7KH IROORZLQJWKUHHEURDGW\SHVRILQWHUYHQWLRQVDUHGLVFXVVHGLQWKHQH[WWKUHHFKDSWHUVRIWKLV UHSRUW • 3URJUDPV WR ,PSURYH &RXSOH 5HODWLRQVKLSV 7ZR LPSRUWDQW G\QDPLF IDFWRUVWKDWGHWHUPLQHIDPLO\IRUPDWLRQDQGUHODWLRQVKLSVXFFHVVDUHWKHTXDOLW\ RI UHODWLRQVKLS VNLOOV DQG DWWLWXGHV DQG H[SHFWDWLRQV DERXW PDUULDJH &RXSOH UHODWLRQVKLSDQGPDUULDJHHGXFDWLRQSURJUDPV³GLVFXVVHGLQWKHQH[WFKDSWHU³ DUH LQWHQGHG WR LPSURYH WKHVH VNLOOV DQG WR FKDQJH DWWLWXGHV DQG H[SHFWDWLRQV WKDWPLJKWRWKHUZLVHLQWHUIHUHZLWKKHDOWK\UHODWLRQVKLSVDQGPDUULDJHV • 6HUYLFHV WR ,PSURYH 0DUULDJHDELOLW\ 2WKHU G\QDPLF IDFWRUV WKDW DIIHFW IDPLO\IRUPDWLRQ³HGXFDWLRQDQGHPSOR\DELOLW\SK\VLFDODQGPHQWDOKHDOWKDQG SDUHQWLQJ VNLOOV³DIIHFW IDPLO\ IRUPDWLRQ E\ PDNLQJ SDUHQWV PRUH DWWUDFWLYH DV PDUULDJHSDUWQHUV6HUYLFHVWRLPSURYHPDUULDJHDELOLW\RISDUHQWVDUHGLVFXVVHG LQ&KDSWHU,9 •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³XQPDUULHGDGXOWSDUHQWVZKRDUHURPDQWLFDOO\LQYROYHG7KLVWDUJHWSRSXODWLRQPD\RIIHUWKH EHVW FKDQFH RI VXFFHVV IRU LQWHUYHQWLRQV IRFXVHG RQ UHODWLRQVKLS DQG PDUULDJH HGXFDWLRQ HVSHFLDOO\ LI VHUYLFHV DUH SURYLGHG DURXQG WKH WLPH RI FKLOGELUWK ZKHQ SDUHQWV DUH PRVWO\ OLNHO\WRIHHOSRVLWLYHDERXWWKHLUUHODWLRQVKLSDQGKRSHIXODERXWPDUULDJH &KDSWHU,,,$SSURDFKHVWR0DUULDJHDQG5HODWLRQVKLS(GXFDWLRQ Figure III.1. Identifying Target Populations Individuals at Risk of Nonmarital Birth or Single Parenting Parents Married Not Parents Unmarried Not Romantically Involved Romantically Involved Age <18 Age > 18 :KLOH WKLV VWXG\ IRFXVHV RQ XQPDUULHGSDUHQW FRXSOHV LQWHUYHQWLRQV WR VWUHQJWKHQ IDPLOLHVDOVRFRXOGEHSURYLGHGWRLQGLYLGXDOVZKRDUHDWULVNRIKDYLQJDQRXWRIZHGORFN ELUWKEXWDUHQRW\HWSDUHQWVRUPDUULHGEXWDWULVNRIGLYRUFHLQGLFDWHGE\WKHXQVKDGHG ER[HV LQ )LJXUH ,,, ,QWHUYHQWLRQV IRU WKHVH JURXSV PLJKW GLIIHU IURP WKRVH IRU XQPDUULHGSDUHQWFRXSOHVLQWKHIROORZLQJZD\V • 8QPDUULHG 1RQSDUHQW &RXSOHV ,QWHUYHQWLRQV IRU LQGLYLGXDOV DQG FRXSOHV ZKRDUHQRW\HWSDUHQWVFRXOGIRFXVRQWKHSUHYHQWLRQRIRXWRIZHGORFNELUWKV LQFOXGLQJVHUYLFHVWRFKDQJHDWWLWXGHVDQGH[SHFWDWLRQVDERXWPDUULDJHDQGRXW RIZHGORFN ELUWKV DEVWLQHQFH HGXFDWLRQ SUHJQDQF\ SUHYHQWLRQ VHUYLFHV DQG JHQHUDOUHODWLRQVKLSVNLOOVHGXFDWLRQ6HUYLFHVWRLPSURYHPDUULDJHDELOLW\PD\EH HIIHFWLYHLQSURPRWLQJKHDOWK\PDUULDJHEHIRUHFRXSOHVKDYHFKLOGUHQ &KDSWHU,,,$SSURDFKHVWR0DUULDJHDQG5HODWLRQVKLS(GXFDWLRQ • 0DUULHG 3DUHQWV ,QWHUYHQWLRQV IRU PDUULHG FRXSOHV FRXOG IRFXV RQ VWUHQJWKHQLQJ UHODWLRQVKLSV DQG UHGXFLQJ WKH OLNHOLKRRG RI GLYRUFH 6WDQGDUG PDUULDJH HGXFDWLRQ IRFXVLQJ RQ FRPPXQLFDWLRQ DQG FRQIOLFW UHVROXWLRQ FRXOG EHFRPELQHGZLWKRWKHUVHUYLFHVZKHUHDSSURSULDWHWRVWUHQJWKHQORZLQFRPH FRXSOHV·DELOLWLHVWRSURYLGHIRUWKHLUIDPLOLHV 6SHFLDOFLUFXPVWDQFHVPD\SRVHSDUWLFXODUFKDOOHQJHVDQGFDOOIRUVWLOOGLIIHUHQWVHUYLFHV 7ZRRWKHUER[HVLQ)LJXUH,,,LQGLFDWHVXEJURXSVRIWKHORZLQFRPHSRSXODWLRQWKDWPD\ UHTXLUHVHUYLFHVWDLORUHGWRWKHLUVSHFLILFVLWXDWLRQV • 3DUHQWV 1RW 5RPDQWLFDOO\ ,QYROYHG ,QWHUYHQWLRQV SURPRWLQJ KHDOWK\ PDUULDJH EHWZHHQ SDUHQWV DUH XQOLNHO\ WR EH HIIHFWLYH RU GHVLUDEOH IRU SDUHQWV ZKRDUHQRWURPDQWLFDOO\LQYROYHGZLWKHDFKRWKHUZKHQWKHLUFKLOGUHQDUHERUQ 7KHVHVLQJOHSDUHQWVDQGWKHLUFKLOGUHQPD\EHQHILWIURPVHUYLFHVWKDWHQFRXUDJH FRSDUHQWLQJ DQG IDWKHU LQYROYHPHQW GLVFRXUDJH IXUWKHU QRQPDULWDO ELUWKV DQG VWUHQJWKHQJHQHUDOUHODWLRQVKLSVNLOOVWRLQFUHDVHWKHOLNHOLKRRGRIDODWHUKHDOWK\ PDUULDJHZLWKVRPHRQHRWKHUWKDQWKHRWKHUELRORJLFDOSDUHQW •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³WKHWRSLFRIWKLVUHSRUW³IRFXVRQSURYLGLQJGLUHFWVHUYLFHVWRDVSHFLILF DQGLGHQWLILDEOHJURXSRILQGLYLGXDOVVXFKDVORZLQFRPHXQPDUULHGSDUHQWV)RUFRXSOHV ZKR FKRRVH WR SDUWLFLSDWH VXFK DSSURDFKHV ZRXOG UHO\ RQ GLUHFW VHUYLFHV DLPHG DW VWUHQJWKHQLQJ UHODWLRQVKLSV WKDW FRXOG GHYHORS LQWR KHDOWK\ DQG VWDEOH PDUULDJHV 7KLV VHFWLRQ UHYLHZV PDMRU DSSURDFKHV WKDW SURYLGH GLUHFW VHUYLFHV WKDW VWUHQJWKHQ WKH UHODWLRQVKLSV RI SUHPDULWDO RU PDUULHG FRXSOHV ZLWK WKH DVVXPSWLRQ WKDW VRPH RI WKHVH DSSURDFKHVFRXOGEHPRGLILHGWRVHUYHXQPDUULHGSDUHQWV &KDSWHU,,,$SSURDFKHVWR0DUULDJHDQG5HODWLRQVKLS(GXFDWLRQ $OWKRXJKPDUULDJHHGXFDWLRQSURJUDPVGLIIHUPRVWEHJLQZLWKWZRDVVXPSWLRQVWKHUH DUHLGHQWLILDEOHSDWWHUQVRILQWHUSHUVRQDOEHKDYLRUWKDWFDQVHULRXVO\XQGHUPLQHDQGGDPDJH JRRGUHODWLRQVKLSVDQGPRVWLQGLYLGXDOVFDQEHWDXJKWWRDYRLGWKHVHEHKDYLRUV([DPSOHV RI WKHVH SDWWHUQV IRXQG WR EH KLJKO\ SUHGLFWLYH RI GLYRUFH LQ GHVFULSWLYH UHVHDUFK RQ PDUULDJHLQFOXGHFRQIOLFWHVFDODWLRQZLWKGUDZDODYRLGDQFHDQGFULWLFVPFRQWHPSW0DQ\ SURJUDPVWDNHDQHGXFDWLRQDODSSURDFKLQYROYLQJDFODVVURRPIRUPDWVHPLQDURUZRUNVKRS DQG XQOLNH WUDGLWLRQDO WKHUDS\ RU FRXQVHOLQJ PRVW GR QRW UHTXLUH SDUWLFLSDQWV WR VKDUH SHUVRQDO LVVXHV RU IHHOLQJV 3URJUDPV DOVR GLIIHU LQ WKHLU PRGDOLWLHV HPSKDVLV DQG RWKHU FKDUDFWHULVWLFV $ IHZ SURPLVLQJ SURJUDPV KDYH EHHQ GHVLJQHG VSHFLILFDOO\ IRU PDUULHG FRXSOHV DERXW WR EHFRPH SDUHQWV 7KHVH SURJUDPV DUH HVSHFLDOO\ UHOHYDQW IRU SODQQLQJ LQWHUYHQWLRQVZLWKXQPDUULHGFRXSOHVDURXQGWKH´PDJLFPRPHQWµ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able III.1. Characteristics of Private Marriage Education Programs Target Population Engaged Couples Program Skills-Based Classes, Workshops, Lectures African American Family Life Education Art and Science of Love ' ' Art of Loving Well Baby Makes Three Becoming a Family Becoming Parents Catholic Engaged Encounter ' Connections Couple Communication Divorce Busters IMAGO Marriage Alive Marriage Encounter ' ' ' Marriage Enrichment PAIRS Married Couples Distressed Married Couples Expectant or New Parents ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' PREP Relationship Enhancement ' ' Relationship Intelligence Survival Skills for Healthy Families Caring Couples Network Marriage Savers Retrouvaille Saving Your Marriage Before It Starts Inventory-Based FOCCUS and REFOCCUS PREPARE/ENRICH RELATE ' Component for Emotional Support ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &KDSWHU,,,$SSURDFKHVWR0DUULDJHDQG5HODWLRQVKLS(GXFDWLRQ Multiple Providers ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' Seven Habits of Highly Effective Families Couples Mentoring ' ' FaithBased Elements ' ' PARTNERS PEERS Single Students/ Youth ' ' ' ' 0RGDOLW\ $OWKRXJK VRPH SURJUDPV FRPELQH PHWKRGV LQ ZD\V WKDW GHI\ VLPSOH FDWHJRUL]DWLRQ WKUHH PDLQ PRGDOLWLHV RU YHKLFOHV IRU GHOLYHULQJ PDUULDJH RU UHODWLRQVKLS HGXFDWLRQ GLVWLQJXLVK WKHP SURJUDPV WKDW SULPDULO\ WDNH D VNLOOVEDVHG HGXFDWLRQDO DSSURDFK LQYROYLQJ FRXSOHV LQ FODVVHV OHFWXUHV VHPLQDUV RU ZRUNVKRSV DSSURDFKHV WKDW XVH FRXSOHWRFRXSOH PHQWRULQJ DQG PHWKRGV WKDW XVH DQ DVVHVVPHQW RU LQYHQWRU\ RI FRXSOHV·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•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´VSHDNHUOLVWHQHU WHFKQLTXHµ³D VWUXFWXUHG ZD\ RI FRPPXQLFDWLQJ WKDW FDQ KHOS FRXSOHV DYRLG VXFK QHJDWLYH EHKDYLRUV DV HVFDODWLRQ DQG ZLWKGUDZDO 6NLOOV DUH WDXJKW DQG GHPRQVWUDWHG LQ D FODVVURRP IRUPDW DQG WKHQ SUDFWLFHG LQ VLWXDWLRQDO UROHSOD\LQJ ZLWK FRDFKLQJ E\ LQVWUXFWRUV6HUYLFHVFDQEHVFKHGXOHGLQDYDULHW\RIIRUPDWVEXWPRVWRIWHQDUH GHOLYHUHGLQVL[ZHHNO\WZRKRXUVHVVLRQVRUDZHHNHQGZRUNVKRS35(3ZDV GHVLJQHG IRU PLGGOHLQFRPH QRQGLVWUHVVHG HQJDJHG RU PDUULHG FRXSOHV $ EURDGUDQJHRILQGLYLGXDOVFDQEHWUDLQHGWROHDGWKHSURJUDP • 7KH &RXSOHV 5HODWLRQVKLS (QKDQFHPHQW 3URJUDP 5( XVHV D SV\FKRHGXFDWLRQDO DSSURDFK EDVHG RQ OHDUQLQJ WKHRU\ DQG UHVHDUFK WR KHOS FRXSOHVGHYHORSHPSDWK\DQGPXWXDOXQGHUVWDQGLQJ7KHSULPDU\SXUSRVHLVWR &KDSWHU,,,$SSURDFKHVWR0DUULDJHDQG5HODWLRQVKLS(GXFDWLRQ HQDEOH SDUWLFLSDQWV WR GHDO HIIHFWLYHO\ ZLWK WKH LQHYLWDEOH GLIILFXOWLHV WKDW DULVH IURP GLIIHUHQFHV LQ IDPLO\ PHPEHUV·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•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·SULYDWHSUDFWLFHRIWKHLUQHZUHODWLRQVKLSVNLOOVLQGHILQHG H[HUFLVHV,WLVRIIHUHGPRVWRIWHQLQDWZRGD\ZHHNHQGIRUPDW7KHSURJUDP LV DSSURSULDWH IRU GLVWUHVVHG DQG QRQGLVWUHVVHG FRXSOHV EXW QRW FRXSOHV H[SHULHQFLQJGRPHVWLFYLROHQFH • 7KH3UDFWLFDO$SSOLFDWLRQRI5HODWLRQVKLS6NLOOV3$,56SURJUDPGUDZVRQ WKHRULHVDQGPHWKRGVIURPHGXFDWLRQSV\FKRWKHUDS\DQGSV\FKRORJ\WRIRVWHU VHOIXQGHUVWDQGLQJDQGSURPRWHUHODWLRQVKLSVNLOOVLQDSV\FKRHGXFDWLRQDOJURXS IRUPDW7KHFRQFHSWXDOPRGHOLVEDVHGRQWKHGHYHORSHU·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•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·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•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•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·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• )2&&86 ZDV ILUVW GHVLJQHG IRU &DWKROLF SUHPDULWDO SUHSDUDWLRQ FRXUVHV EXW QRZ LV DYDLODEOH LQ JHQHUDO DQG &KULVWLDQ QRQGHQRPLQDWLRQDO HGLWLRQV 1RQ SURIHVVLRQDO YROXQWHHUV FDQ EH WUDLQHG WR DGPLQLVWHU WKH DVVHVVPHQW DQG OHDG GLVFXVVLRQVZLWKHQJDJHGFRXSOHV5()2&&86LVDVLPLODULQYHQWRU\IRU XVH ZLWKPDUULHGFRXSOHV • 35(3$5(LVDSUHPDULWDOLQYHQWRU\FRPSRVHGRIDJUHHGLVDJUHHTXHVWLRQV ZKLOH WKH SDUDOOHO (15,&+ &RXSOH 6DWLVIDFWLRQ 6FDOH LV XVHG WR DVVHVV PDULWDO VDWLVIDFWLRQ %RWK LQYHQWRULHV DUH GHVLJQHG WR EH XVHG ZLWK D 35(3$5((15,&+WUDLQHGFRXQVHORURUPHPEHURIWKHFOHUJ\ 6SHFLILF(OHPHQWVRU)HDWXUHV 3URJUDPV YDU\ DORQJ D QXPEHU RI GLPHQVLRQV 7ZR RI WKH PRUH SURPLQHQW RQHV LQFOXGH WKH GHJUHH WR ZKLFK SURJUDPV LQFRUSRUDWH IDLWKEDVHG RU HPRWLRQDOO\ VXSSRUWLYH HOHPHQWV DQG WKH VSHFLDO SRSXODWLRQV³VXFK DV VWXGHQWV DQG \RXWK RU GLVWUHVVHG PDUULHG FRXSOHV³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´EULQJWKHVNLOOVKRPHµ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´WKHUDS\µ DQG UHODWHG ZRUGV EHFDXVH RI WKH VWLJPD VRPHWLPHV DWWDFKHG WR PHQWDO KHDOWK WUHDWPHQWZKLFKFRXOGGLVFRXUDJHFRXSOHVIURPSDUWLFLSDWLQJ 6SHFLDO 3RSXODWLRQV 6RPH SURJUDPV DUH GHVLJQHG VSHFLILFDOO\ WR DGGUHVV WKH GHYHORSPHQWDOQHHGVRISDUWLFXODUSRSXODWLRQV)RUH[DPSOHKLJKVFKRROVWXGHQWVDQGRWKHU \RXWK DUH OHVV OLNHO\ WKDQ ROGHU JURXSV WR EH PDUULHG RU LQ D ORQJWHUP FRPPLWWHG UHODWLRQVKLS 3URJUDPV LQWHQGHG IRU HQJDJHG RU PDUULHG FRXSOHV PD\ WKHUHIRUH EH OHVV DSSURSULDWH IRU \RXWK WKDQ SURJUDPV WKDW KHOS WKHP OHDUQ VNLOOV IRU PDNLQJ JRRG PDULWDO FKRLFHV 6LPLODUO\ FRXSOHV LQ GLVWUHVV PD\ EH OHVV OLNHO\ WR EHQHILW IURP D SUHYHQWLYH DSSURDFKWKDQRQHWKDWKHOSVWKHPUHSDLUWKHLUUHODWLRQVKLSV • 6WXGHQWVDQG<RXWK3URJUDPVJHDUHGVSHFLILFDOO\WRPLGGOHDQGKLJKVFKRRO VWXGHQWV IRFXV RQ GHYHORSLQJ WKH VNLOOV DQG EHKDYLRUV WKDW VHW WKH VWDJH IRU KHDOWK\UHODWLRQVKLSVDQGPDUULDJHV3URJUDPVEDVHGGLUHFWO\LQWKHVFKRROVDUH EHFRPLQJPRUHSRSXODULQ)ORULGDPDQGDWHGPDUULDJHVNLOOVWUDLQLQJIRU DOO KLJK VFKRRO VWXGHQWV LQ WKH WK DQG WK JUDGHV ([DPSOHV RI VFKRROEDVHG SURJUDPV LQFOXGH &RQQHFWLRQV 5HODWLRQVKLS ,QWHOOLJHQFH $UW RI /RYLQJ :HOO 3$571(56DQG3((56 • 'LVWUHVVHG 0DUULHG &RXSOHV )HZHU PDUULDJH HGXFDWLRQ SURJUDPV WDUJHW GLVWUHVVHG FRXSOHV GLUHFWO\ DQG WKRVH WKDW GR DUH W\SLFDOO\ IDLWKEDVHG )RU H[DPSOH 5HWURXYDLOOH WDUJHWV FRXSOHV RQ WKH EULQN RI GLYRUFH EHFDXVH RI LQILGHOLW\JDPEOLQJRUDOFRKROLVP&RXSOHVDUHFRXQVHOHGLQDSULYDWHZHHNHQG UHWUHDWE\FOHUJ\DQGIDFLOLWDWRUFRXSOHVZKRWKHPVHOYHVKDYHH[SHULHQFHGVLPLODU SUREOHPV DQG DOPRVW GLYRUFHG 7KH UHWUHDW LV IROORZHG E\ VXSSRUW JURXS PHHWLQJV WR UHLQIRUFH WKH PHVVDJHV FRQYH\HG LQ WKH UHWUHDW 2QH VHFXODU SURJUDPWKH$UWDQG6FLHQFHRI/RYHSURYLGHVDQHGXFDWLRQEDVHGZRUNVKRS WR GLVWUHVVHG DQG QRQGLVWUHVVHG FRXSOHV EXW H[FOXGHV FRXSOHV LQ SK\VLFDOO\ DEXVLYHUHODWLRQVKLSVUHIHUULQJWKHPIRULQGLYLGXDOFRXSOHVFRXQVHOLQJ'LYRUFH %XVWHUV DQG ,0$*2 DUH RWKHU SURJUDP H[DPSOHV WKDW WDUJHW PDUULHG FRXSOHV ZKRDUHLQFULVLVRUGLVWUHVVHG &KDSWHU,,,$SSURDFKHVWR0DUULDJHDQG5HODWLRQVKLS(GXFDWLRQ ([SHULHQFHZLWK3URJUDP'LVVHPLQDWLRQ 7KHGHYHORSHUVRIVRPHPDUULDJHHGXFDWLRQSURJUDPVKDYHGHOLEHUDWHO\SODQQHGIRUDQG SURPRWHG WKH GLVVHPLQDWLRQ RI WKHLU SURJUDP PRGHOV LQ RUGHU WR UHDFK D EURDG DXGLHQFH 6RPH RI WKH SURJUDPV OLVWHG LQ 7DEOH ,,, KDYH GHYHORSHG PHWKRGV IRU WUDLQLQJ RWKHU SURIHVVLRQDOV RU OD\ SHRSOH WR SURYLGH VHUYLFHV 6HYHUDO VNLOOVEDVHG SURJUDPV VXFK DV 35(3 UHTXLUH WKHLU VWDII WR SDUWLFLSDWH LQ RQH WR WKUHH GD\V RI WUDLQLQJ IURP SURJUDP GHYHORSHUV 7KH DQQXDO6PDUW 0DUULDJHV FRQIHUHQFH SURYLGHV D IRUXP IRU WUDLQLQJ D ODUJH JURXS RI SUDFWLWLRQHUV DW RQFH 2WKHU SURJUDP GHYHORSHUV SURYLGH WUDLQLQJ RSSRUWXQLWLHV WKURXJKRXWWKH\HDUDWPXOWLSOHORFDWLRQV0RVWFXUULFXODFDQQRWEHSXUFKDVHGVHSDUDWHO\EXW DUH SURYLGHG WR WKRVH ZKR JR WKURXJK SUDFWLWLRQHU WUDLQLQJ )HHV IRU PDUULDJH HGXFDWLRQ WUDLQLQJYDU\VXEVWDQWLDOO\DVGRWKHSURJUDPPDWHULDOVVXFKDVZRUNERRNVYLGHRWDSHVDQG WH[WV WKDW WUDLQHG SUDFWLWLRQHUV ZRXOG QHHG WR DSSO\ WKH FXUULFXOD 0HQWRU DQG IDLWKEDVHG DSSURDFKHV DUH SHUKDSV PRUH HDVLO\ GLVVHPLQDWHG EHFDXVH FRQJUHJDWLRQV SURYLGH D UHDG\ VXSSO\RISRWHQWLDOPHQWRUFRXSOHVDQGSUDFWLWLRQHUV )RFXVLQJRQ5HODWLRQVKLSV'XULQJWKH7UDQVLWLRQWR3DUHQWKRRG 7KLVVHFWLRQGHVFULEHVVHYHUDOSURPLVLQJSURJUDPDSSURDFKHVWRLQWHUYHQLQJZLWKQHZ SDUHQWVDURXQGWKHWLPHRIWKHLUFKLOG·VELUWK5HVHDUFKHUVKDYHVWXGLHGWKHWUDQVLWLRQWR SDUHQWKRRGIRUPRUHWKDQ\HDUVDQGPRVWFRQFOXGHWKDWDOWKRXJKWKHSHULRGDURXQGD FKLOG·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·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´RZQHU·VPDQXDOµIRULQIDQWFDUHLQFOXGLQJKRZWRUHDG LQIDQW FXHV GHDOLQJ ZLWK FU\LQJ DQG IHHGLQJ LVVXHV 7KH DGGHG FRPSRQHQWV LQFRUSRUDWH DVSHFWV RI WZR SURJUDPV WR UHGXFH GRPHVWLF YLROHQFH 7KHVH HOHPHQWV IRFXV RQ WKH PDQDJHPHQW RI VWUHVV DQG DQJHU DQG WKH SUHYHQWLRQ RI SK\VLFDO DEXVH LQ LQWLPDWH UHODWLRQVKLSV 7KHSURJUDPLQYROYHVKRXUVRIFODVVURRPWLPHGXULQJSUHJQDQF\DQGDKRXU ´ERRVWHUµ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· UHODWLRQVKLSV SDUHQWFKLOG UHODWLRQVKLSV UHODWLRQVKLSV ZLWK H[WHQGHG IDPLOLHV DQG WKH GHYHORSPHQW RI VXSSRUWLYH QHWZRUNV%HFDXVHDJHQGDVZHUHVHWE\JURXSOHDGHUVLQFROODERUDWLRQZLWKSDUWLFLSDQWVWKH\ RIWHQ IRFXVHG RQ DFWXDO RQJRLQJ LVVXHV *URXS OHDGHUV UDLVHG WRSLFV IRU GLVFXVVLRQ LQFOXGLQJFKDQJHVLQSDUWLFLSDQWV·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³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·VOLIHDQGEHLQJUHVSRQVLYHWRLWDQGWU\LQJWRVROYHSUREOHPVDVDFRXSOH7KH ZRUNVKRS FXUULFXOXP LV PRGLILHG WR SUHSDUH FRXSOHV IRU WKH VWUHVVHV RI SDUHQWKRRG WR HQFRXUDJH WKH SRVLWLYH LQYROYHPHQW RI IDWKHUV LQ WKHLU LQIDQWV·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·V WUDQVLWLRQV UDWKHU WKDQ HYLGHQFH WKDW WKHLU UHODWLRQVKLSV DUH LQ VHULRXV WURXEOH 6XSSRUWJURXSVUHLQIRUFHLQIRUPDWLRQSURYLGHGLQWKHZRUNVKRSLQFOXGLQJUHODWLRQVKLSVNLOOV DQGVWUDWHJLHVWRUHVROYHFRQIOLFWVNHHSLQJIDWKHUVLQYROYHGZLWKEDELHVDQGXQGHUVWDQGLQJ EDELHV·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·V OLIH +HDOWK HGXFDWRUV VXSSOHPHQW LQIRUPDWLRQ RQ LQIDQW GHYHORSPHQW DQG HIIHFWLYH SDUHQWLQJ ZLWK D PLQXWH PRGXOH RQ PDUULDJH YLUWXHV WR VWUHQJWKHQ FRXSOH UHODWLRQVKLSV GXULQJ WKH WUDQVLWLRQ WR SDUHQWKRRG$EULHIGLVFXVVLRQRIWKHVWUHVVHVDQGFKDQJHVWKHFRXSOHVPD\EHH[SHULHQFLQJ LVKHOGGXULQJWKHWKLUGPRQWKO\YLVLW&RXSOHVDUHDOVRLQWURGXFHGWRDQDFWLYLW\JXLGHERRN DQGLQYLWHGWRGRWKHH[HUFLVHVDQGUHDGWKHPDWHULDOVGXULQJWKHFRPLQJPRQWK & 352*5$0(9$/8$7,21 7KH GHVLJQV RI VHYHUDO RI WKH PDMRU SURJUDPV GLVFXVVHG LQ WKLV FKDSWHU KDYH EHHQ LQIRUPHG E\ H[WHQVLYH GHVFULSWLYH UHVHDUFK LGHQWLI\LQJ WKH FRUUHODWHV DQG SUHGLFWRUV RI GLYRUFH DQG RI VXFFHVVIXO PDUULDJHV 7KLV UHVHDUFK IRXQGDWLRQ KDV KHOSHG WR JXLGH WKH GHYHORSPHQW RI PDUULDJH HGXFDWLRQ SURJUDPV KHOSLQJ WKHP WR IRFXV LQWHUYHQWLRQV RQ HIIRUWV WR SURPRWH WKH EHKDYLRUDO SDWWHUQV IRXQG LQ FRXSOHV ZKR KDYH VWURQJ DQG VWDEOH PDUULDJHV $OWKRXJKVRPHLPSRUWDQWDQGSURPLVLQJZRUNKDVEHHQGRQHDVWURQJIRXQGDWLRQRI SURJUDPHYDOXDWLRQGHPRQVWUDWLQJWKHHIIHFWLYHQHVVRILQWHUYHQWLRQVLVVWLOOODFNLQJIRUWKH PRVWSDUW(YDOXDWLRQUHVHDUFKXVLQJUDQGRPDVVLJQPHQWGHVLJQVFDQGHWHUPLQHZKHWKHUWKH LQWHUYHQWLRQVZKRVHGHVLJQVZHUHEDVHGRQGHVFULSWLYHUHVHDUFKDFWXDOO\VXFFHHGLQFKDQJLQJ EHKDYLRUDQGE\VRGRLQJDIIHFWWKHORQJWHUPVXFFHVVRIUHODWLRQVKLSV6RPHH[SHULPHQWDO HYDOXDWLRQVKDYHEHHQFRQGXFWHGDQGVRPHDUHFXUUHQWO\XQGHUZD\+RZHYHUWKHILQGLQJV DUH SDUWLDO DQG OLPLWHG GXH WR PHWKRGRORJLFDO LVVXHV VXFK DV VHOHFWLRQ SUREOHPV UHVXOWLQJ IURP LQFRPSOHWH UDQGRP DVVLJQPHQW GLIIHUHQWLDO DWWULWLRQ DPRQJ FRQWURO YHUVXV WUHDWPHQW JURXS SDUWLFLSDQWV DQG WKH VPDOO XQUHSUHVHQWDWLYH QDWXUH RI PRVW VDPSOHV .DUQH\ DQG %UDGEXU\ ,Q DGGLWLRQ PRVW VWXGLHV ZLWK WKH H[FHSWLRQ RI 35(3 DQG %HFRPLQJ D )DPLO\HYDOXDWLRQVKDYHDVVHVVHGRXWFRPHVRQO\LQWKHVKRUWWHUP 7KLV VHFWLRQ EULHIO\ UHYLHZV ILQGLQJV IURP HYDOXDWLRQ VWXGLHV WKDW UDQGRPO\ DVVLJQ SDUWLFLSDQWVWRWKHSURJUDPRUWRDFRQWUROJURXSWKHUHE\SHUPLWWLQJDULJRURXVWHVWRIWKH SURJUDP·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³LQFOXGLQJ 5( &RXSOH &RPPXQLFDWLRQ DQG 0DUULDJH (QFRXQWHU³IRXQG 5( VWXGLHV KDG E\ IDU WKH ODUJHVW DYHUDJH HIIHFW VL]H *LEOLQ 6SUHQNOHDQG6KHHKDQ0RVWRIWKHVHVWXGLHVLQFOXGLQJWKRVHWKDWWHVWHG5(ZHUH VKRUWLQGXUDWLRQXVXDOO\OHVVWKDQD\HDU &KDSWHU,,,$SSURDFKHVWR0DUULDJHDQG5HODWLRQVKLS(GXFDWLRQ &RXSOH &RPPXQLFDWLRQ 0RVW HYDOXDWLRQ UHVHDUFK RQ && KDV VWXGLHG WKH KRXU VWUXFWXUHGVNLOOVWUDLQLQJSURJUDPILQGLQJVLJQLILFDQWLPSURYHPHQWVLQWKHSURJUDPJURXS·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ó \HDUV DIWHU WKH LQWHUYHQWLRQ HQGHG PDULWDO DGDSWDWLRQ EHJDQ WR ZDQH LQ WKH LQWHUYHQWLRQ JURXSVWLOORQO\SHUFHQWRIWKHSURJUDPJURXSKDGVHSDUDWHGE\WKLVSRLQWFRPSDUHGZLWK SHUFHQW RI FRQWURO JURXS FRXSOHV &RZDQ DQG &RZDQ $ UHFHQW UHDQDO\VLV RI SURJUDP GDWD XVLQJ +LHUDUFKLFKDO /LQHDU 0RGHOLQJ +/0 JURZWK FXUYH WHFKQLTXHV VKRZ WKH UDWH RI GHFOLQH LQ PDULWDO VDWLVIDFWLRQ DPRQJ LQWHUYHQWLRQ FRXSOHV DFURVV WKH ó\HDU IROORZXS SHULRG ZDV RQHWKLUG WKDW RI WKH FRPSDULVRQ FRXSOHV &RQWURO JURXS FRXSOHV GHFOLQHG LQ PDULWDO VDWLVIDFWLRQ SRLQWV PRUH HDFK PRQWK FRPSDUHG ZLWK LQWHUYHQWLRQ FRXSOHV6FKXO]DQG&RZDQ %DE\ 0DNHV 7KUHH 7KLV ZRUNVKRS LV EHLQJ HYDOXDWHG LQ D WKUHHJURXS UDQGRP DVVLJQPHQW UHVHDUFK GHVLJQ WKDW SHUPLWV VWXG\LQJ DGYDQWDJHV RI WKH FRPELQHG DSSURDFK 7KH VWXG\ LV HQUROOLQJ FRXSOHV ZKR DUH UDQGRPL]HG LQWR JURXSV WKDW UHFHLYH WKH ZRUNVKRS RQO\ UHFHLYH WKH ZRUNVKRS SOXV WKH VXSSRUW JURXSV RU UHFHLYH QR WUHDWPHQW7KHHYDOXDWLRQLQFOXGHVDEDVHOLQHLQWHUYLHZDQGH[WHQVLYHIROORZXSLQWHUYLHZV ZKLFK WDNH WR KRXUV FRQGXFWHG LQ VHVVLRQV 0DULWDO LQWHUDFWLRQ DQG SDUHQWFKLOG LQWHUDFWLRQ LV YLGHRWDSHG DQG ODWHU FRGHG LQ WKH ODERUDWRU\ 'LUHFW DVVHVVPHQWV RI LQIDQWWRGGOHU VRFLDO DQG HPRWLRQDO GHYHORSPHQW DUH FRQGXFWHG $Q H[WHQVLYH SDSHU DQG SHQFLOTXHVWLRQQDLUHLVDGPLQLVWHUHGIRFXVLQJRQPDULWDOVDWLVIDFWLRQSK\VLFDOKHDOWKVWUHVV DQGPHQWDOKHDOWKV\PSWRPVDQGPHDVXUHVRIVSHFLILFEHKDYLRUSDWWHUQVWDXJKWGXULQJWKH LQWHUYHQWLRQ7KHHYDOXDWLRQLVQHDULQJWKHHQGRILWVILUVW\HDUDQGSUHOLPLQDU\UHVXOWVDUH H[SHFWHGWREHUHOHDVHGVRRQ %HFRPLQJ 3DUHQWV 3URJUDP 7KLV SURJUDP LV LQ WKH EHJLQQLQJ VWDJHV RI EHLQJ HYDOXDWHGLQDULJRURXV\HDUUHVHDUFKGHVLJQ3ODQVFDOOIRUHQUROOLQJFRXSOHVZLOO EHUDQGRPL]HGLQWRWKHLQWHUYHQWLRQJURXSZLWKFRXSOHVWRVHUYHDVWKHFRQWUROJURXS 1RQGLVWUHVVHGPDUULHGFRXSOHVH[SHFWLQJWKHLUILUVWFKLOGUHQDUHHOLJLEOHIRUWKHLQWHUYHQWLRQ DQG DUH UHFUXLWHG WKURXJK SUHQDWDO FOLQLFV GRFWRUV· RIILFHV FRPPXQLW\ FHQWHUV FKXUFKHV OLEUDULHV DQG SXEOLF VHUYLFH DQQRXQFHPHQWV )DPLOLHV FDQ UHFHLYH XS WR IRU SDUWLFLSDWLQJ LQ WKH SURJUDP DQG DOO IROORZXS DVVHVVPHQWV &RXSOHV ZLOO EH IROORZHG WKURXJK WKH FKLOGUHQ·V WK ELUWKGD\ 2XWFRPHV LQFOXGH PDULWDO VWDELOLW\ DQG VDWLVIDFWLRQ V\PSWRPVRIGHSUHVVLRQDQGVWUHVVOHYHORIGRPHVWLFYLROHQFHDQGKHDOWKEHKDYLRUV'DWD RQ FKLOGUHQ·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·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·VELUWKDQG PD\ EH LQWHUHVWHG LQ PDUULDJH IHZ KDYH FRQFUHWH ZHGGLQJ SODQV 0RUHRYHU IHZ VXFK FRXSOHV KDYH ´IRUPDOL]HGµ WKHLU ERQGV RQH \HDU DIWHU WKHLU FKLOG·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³WKHFKDUDFWHULVWLFVRIORZLQFRPHIDPLOLHVDQGZKDWPDNHV PDUULDJHV ZRUN³VXJJHVWV WKDW DW D PLQLPXP WKH IROORZLQJ LVVXHV EH FRQVLGHUHG LQ GHYHORSLQJLQWHUYHQWLRQVWRKHOSFRXSOHVLQWHUHVWHGLQPDUULDJHPRYHWRZDUGWKHLUJRDO &KDSWHU,,,$SSURDFKHVWR0DUULDJHDQG5HODWLRQVKLS(GXFDWLRQ • 8QGHUVWDQGLQJ ZK\ PDUULDJHLV LPSRUWDQW³IRU WKHPVHOYHV WKHLU FKLOGUHQ DQG WKHLUFRPPXQLWLHV • 8QGHUVWDQGLQJ ZKDW D JRRG PDUULDJH ORRNV OLNH DGMXVWLQJ XQUHDOLVWLF H[SHFWDWLRQV • +HOSLQJPHQJDLQDEHWWHUXQGHUVWDQGLQJRIZKRWKH\DUHDQGWKHLPSRUWDQFHRI WKHLUUROHLQWKHIDPLO\DQGLQVRFLHW\ • 'HYHORSLQJPXWXDOWUXVWRQZKLFKWREXLOGDVWURQJIRXQGDWLRQRIFRPPLWPHQW WRWKHUHODWLRQVKLS • 'HYHORSLQJ FRQILGHQFH DV D FRXSOH LQ WHUPV RI IHHOLQJ SUHSDUHG WR PHHW WKH FKDOOHQJHVRIPDUULHGOLIHDQGVROYHSUREOHPVWRJHWKHU • %XLOGLQJDYLVLRQRIDIXWXUHWRJHWKHU •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´PDUULDJHDELOLW\µ 0DUULDJHDELOLW\ LV FRQYHQWLRQDOO\ GHILQHG DV D SHUVRQ·V DWWUDFWLYHQHVV DV D PDUULDJH SDUWQHU EDVHGRQWKHKXPDQFDSLWDO³HGXFDWLRQDQGHPSOR\PHQWKLVWRU\³WKDWFRQWULEXWHWRRQH·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³QRWMXVWSDUHQWVZKRDUHXQPDUULHGZKHQWKHLUFKLOGUHQDUHERUQ6RPH VHUYLFHVDUHLQWHQGHGWRUHSDLURUUHVWRUHH[LVWLQJUHODWLRQVKLSVZKLOHRWKHUVDLPWRLQFUHDVH WKHLQYROYHPHQWRIQRQUHVLGHQWLDOIDWKHUVZLWKWKHLUFKLOGUHQZKHQWKHSDUHQWVDUHQRORQJHU URPDQWLFDOO\ LQYROYHG 7KH PDUULDJHDELOLW\ DSSURDFK FRXOG EH XVHG ZLWK WKH IXOO UDQJH RI IDPLO\VWUXFWXUHVLQDWOHDVWWKUHHGLIIHUHQWZD\V • 7R HQKDQFH WKH PDUULDJHDELOLW\ RI FRXSOHV ZKR DUH URPDQWLFDOO\ LQYROYHG DQG LQWHUHVWHG LQ PDUU\LQJ EXW ZKR PD\ KDYH SHUVRQDO DQG IDPLO\ FKDOOHQJHV WKDW UHGXFHWKHOLNHOLKRRGWKDWWKH\ZLOOIRUPDQGVXVWDLQKHDOWK\PDUULDJHV • 7RLPSURYHWKHPDUULDJHDELOLW\RIXQPDUULHGSDUHQWVZKRDUHQRWURPDQWLFDOO\ LQYROYHGQRW\HWUHDG\WRFRQVLGHUPDUULDJHRUGRQRWKDYHSODQVWRPDUU\EXW PD\ZLVKWRLQWKHIXWXUH •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³HVSHFLDOO\IDWKHUVZKRHYHQWXDOO\WDNHDGYDQWDJHRIRWKHUVHUYLFHV³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• (PSOR\PHQWWUDLQLQJHGXFDWLRQMREVHDUFK • 6HSDUDWHFODVVHVRUJURXSVIRUYLFWLPVDQGSHUSHWUDWRUVRIGRPHVWLFYLROHQFH • +HDOWKFDUHDQGPHQWDOKHDOWKWUHDWPHQW • 3DUHQWLQJDQGFKLOGGHYHORSPHQWHGXFDWLRQ • /LIHVNLOOVHGXFDWLRQ • 6XSSRUWJURXSVWRHQFRXUDJHIDWKHULQYROYHPHQW • &RSDUHQWLQJFODVVHV (PSOR\PHQW DQG (GXFDWLRQ 6HUYLFHV 6WDEOH HPSOR\PHQW DQG LQFRPH KDYH EHHQ OLQNHGWRSRVLWLYHPDUULDJHRXWFRPHV7KLVFRQQHFWLRQLVSDUWLFXODUO\VWURQJIRUEODFNPHQ EHFDXVHWKHLUDELOLW\WRFRQWULEXWHILQDQFLDOO\LVRIWHQVHHQDVDQLPSRUWDQWDWWULEXWHE\EODFN ZRPHQZKRDUHVWUXJJOLQJWRPDNHHQGVPHHW(GLQ (PSOR\PHQW VHUYLFHV FDQ LQFOXGH DVVLVWDQFH ZLWK MRE VHDUFK RQWKHMRE WUDLQLQJ MRE GHYHORSPHQWDQGQHWZRUNLQJDQGFODVVHVLQUHVXPHZULWLQJLQWHUYLHZLQJDQG´VRIWVNLOOVµ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´LQKRXVHµ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·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·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·KRPHV%LHQYHQLGRVDOVRRIIHUVD VHULHV RI ZHHNO\ SDUHQWLQJ FODVVHV DW WKH RUJDQL]DWLRQ·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·V QHHGV 0RVW SURJUDPV GHVFULEHG LQ WKLV FKDSWHU WHDFK OLIH VNLOOV³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·VFRPSODLQWDERXWODWHUHQWSD\PHQWV 5HVSRQVLEOH)DWKHUKRRG7KHVHVHUYLFHVDQGSURJUDPVDUHGHVLJQHGWRHQFRXUDJHWKH ILQDQFLDODQGHPRWLRQDOLQYROYHPHQWRIIDWKHUVLQWKHLUFKLOGUHQ·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·VJURXSPHHWLQJV)DWKHUVHQJDJHLQ FKLOGUHODWHG DFWLYLWLHV E\ UHSDLULQJ WR\V DQG IXUQLWXUH LQ (DUO\ +HDG 6WDUW FODVVURRPV DQG WKURXJK SDUWLFLSDWLRQ LQ )DWKHU·V 'D\ SLFQLFV %LHQYHQLGRV LQYROYHV IDWKHUV WKURXJK WKH 1DWLRQDO /DWLQR )DWKHUKRRG DQG )DPLO\ ,QVWLWXWH ZKLFK RIIHUV ZHHNO\ IDWKHUKRRG FODVVHV VFKRROEDVHGSUHJQDQF\SUHYHQWLRQZHHNO\DQJHUPDQDJHPHQWFODVVHVDQGPRQWKO\VXSSRUW JURXSV $W &):' WKH 0HQ·V 6HUYLFHV SURJUDP SURYLGHV IDWKHUV ZLWK FDVH PDQDJHPHQW VHUYLFHVDQGWZRW\SHVRIHGXFDWLRQVHVVLRQVHDFKRIZKLFKRFFXUVZHHNO\2QHVHVVLRQLV FXUULFXOXPEDVHG DQG FRYHUV SDUHQWLQJ DQG FRSDUHQWLQJ OLIH VNLOOV GHYHORSPHQW DQG DQJHU PDQDJHPHQWWKHRWKHUVHVVLRQLQYROYHVDSHHUVXSSRUWJURXS &RSDUHQWLQJ RU ´7HDP3DUHQWLQJµ 6HUYLFHV &RSDUHQWLQJRUWHDPSDUHQWLQJDVLW VRPHWLPHVLVFDOOHGUHIHUVWRWKHDELOLW\RIPRWKHUVDQGIDWKHUVWRZRUNDVDWHDPWRUDLVH WKHLUFKLOGUHQ³UHJDUGOHVVRIZKHWKHUWKHSDUHQWVOLYHWRJHWKHURUDUHURPDQWLFDOO\LQYROYHG 6XFK VHUYLFHV FDQ LQYROYH HIIRUWV WR LPSURYH WKH SDUHQWV·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·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³DFRPPXQLW\EDVHG SURJUDP VHUYLQJ ORZLQFRPH ZRPHQ DQG LQIDQWV³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·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·V JRDOV LV WR KHOS WKH IDWKHUV EHFRPH PRUH LQYROYHG LQ EHLQJ VXSSRUWLYH RI WKH PRWKHUV GXULQJ SUHJQDQF\ DQG FKLOGELUWK 7KH QXUVHVDUHDOVRWUDLQHGWRLQFOXGHWKHFKLOGUHQ·VIDWKHUVLQWKHKRPHYLVLWVLIUHTXHVWHGE\WKH PRWKHUV DQG DUH HQFRXUDJHG WR KHOS IDWKHUV ILQG UHVRXUFHV WKH\ PD\ QHHG VXFK DV HPSOR\PHQWRUUHVSRQVLEOHIDWKHUKRRGVHUYLFHV 7KH WLPLQJ RI HQWU\ LQWR 1)33 PD\ H[SODLQ LWV REVHUYHG SRVLWLYH RXWFRPHV 2WKHU SURJUDPVWKDWDLPWRLQWHUYHQHODWHULQWKHFKLOGUHQ·VOLYHVZKHQIDWKHUVDUHPRUHOLNHO\WR KDYH GLVHQJDJHG IURP WKHLU FKLOGUHQ DQG WR KDYH EXLOW XS FKLOG VXSSRUW DUUHDUDJHV DQG QHJDWLYH IHHOLQJV DERXW WKH PRWKHUV WHQG WR ILQG LW PRUH FKDOOHQJLQJ WR EULQJ DERXW VXFK SRVLWLYHRXWFRPHV)RUH[DPSOHWKHHYDOXDWLRQRIWKH3DUHQW·V)DLU6KDUHGHPRQVWUDWLRQD SURJUDP WR LQFUHDVH UHVSRQVLELOLW\ DPRQJ ORZLQFRPH QRQFXVWRGLDO IDWKHUV E\ SURYLGLQJ VXSSRUW JURXSV DQG LQFHQWLYHV IRU SD\LQJ FKLOG VXSSRUW VKRZHG GLVDSSRLQWLQJ UHVXOWV LQ LPSURYLQJ WKH IDWKHUV·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³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·VLQFHSWLRQDWZRSDUHQWIDPLO\ZDVFDWHJRULFDOO\ LQHOLJLEOHIRUZHOIDUHHYHQLIWKHIDWKHUZDVXQHPSOR\HGDQGWKHIDPLO\QHHG\7KHODZZDV FKDQJHGLQVRIDPLOLHVZLWKMREOHVVIDWKHUVFRXOGEHHOLJLEOHIRUWKH$)'&8QHPSOR\HG 3DUHQWV $)'&83 SURJUDP 6WDWHV FRXOG FKRRVH KRZ WR GHILQH ´XQHPSOR\HGµ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·VRU&RKDELWLQJ3DUWQHU·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·V7KH :HOIDUH5XOHV'DWDEDVH &KDSWHU93ROLF\2SWLRQVWR(QFRXUDJH0DUULDJHDQG)DPLO\)RUPDWLRQ WKH ELRORJLFDO SDUHQW RI D FKLOG LQ WKH IDPLO\ +RZHYHU VRPH 7$1) DJHQFLHV ´GHHPµ LQFRPHIURPDPDUULHGVWHSSDUHQWWRWKHPRWKHUDQGFKLOGZKHQGHWHUPLQLQJHOLJLELOLW\DQG EHQHILWV 7KH UXOHV DOVR PD\ FUHDWH D GLVLQFHQWLYH IRU FRKDELWLQJ FRXSOHV WR PDUU\ HYHQ LI WKH HOLJLELOLW\UXOHVGRQRWGHSHQGRQWKHFRXSOH·VPDULWDOVWDWXV7KLVLVEHFDXVHDQXQUHSRUWHG FRKDELWLQJ SDUWQHU LV XQOLNHO\ WR EH GHWHFWHG E\ WKH 7$1) FDVHZRUNHU EXW LW LV KDUGHU WR ´KLGHµ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·VLQFRPHLIWKHKRXVHKROGPHHWVFHUWDLQLQFRPHFULWHULD0DLQHRIIHUVWKHRSWLRQ WRLQFOXGHRUH[FOXGHVWHSSDUHQWVLQWKH7$1)DVVLVWDQFHXQLW*DUGLQHUHWDO 3URYLGH)LQDQFLDO%RQXVHVIRU0DUULDJH 6RPH 7$1) DJHQFLHV KDYH H[SORUHG SURYLGLQJ ILQDQFLDO ERQXVHV DV DQ LQFHQWLYH WR PDUU\RUUHPDLQPDUULHG:HVW9LUJLQLDDGGVWRWKHPRQWKO\7$1)EHQHILWSD\PHQWV WRPDUULHGFRXSOHV/HJLVODWXUHVLQ0LVVLVVLSSLDQG:DVKLQJWRQDWWHPSWHGXQVXFFHVVIXOO\WR HVWDEOLVK SURJUDPV WR SD\ SDUHQWV RQ FDVK DVVLVWDQFH D OXPS VXP SD\PHQW LI WKH\ UHPDLQ PDUULHGIRUDWOHDVWD\HDU*DUGLQHUHWDO7RSURPRWHPDUULDJHWKH7RUUHV0DUWLQH] 'HVHUW ,QGLDQ &RQVRUWLXP SURYLGHV 1DWLYH $PHULFDQ 7$1) UHFLSLHQWV LQ &DOLIRUQLD·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·VLQFRPHZLOOUHGXFHWKLVILQDQFLDOGLVLQFHQWLYH 3ROLFLHV WKDW SURYLGH ILQDQFLDO ERQXVHV IRU PDUULDJH PLJKW KDYH WKH XQLQWHQGHG FRQVHTXHQFHRIOHDGLQJWRPRUHXQKHDOWK\PDUULDJHVRU´SDSHUµ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·LQFRPHHDUQLQJVSOXVFDVKDVVLVWDQFHLQFUHDVHVPRUHDVWKH\EHJLQWRZRUN7KLV DUJXPHQW LV VXSSRUWHG E\ WKH ILQGLQJV IURP DQ H[SHULPHQWDO HYDOXDWLRQ RI 0LQQHVRWD·V ZHOIDUH UHIRUP SURJUDP³WKH 0LQQHVRWD )DPLO\ ,QYHVWPHQW 3URJUDP 0),3²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·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·VIDWKHU ,QIRUP8QZHG)DWKHUVRI7KHLU3RWHQWLDO&KLOG6XSSRUW2EOLJDWLRQV $QRWKHU SROLF\ VXJJHVWLRQ LV WR UHTXLUH SDWHUQLW\ HVWDEOLVKPHQW IRU DOO XQZHG IDWKHUV HYHQLIWKHIDWKHUVOLYHZLWKWKHPRWKHUVDQGFKLOGUHQDQGWRLQIRUPWKHPRIWKHLUSRWHQWLDO FKLOGVXSSRUWREOLJDWLRQV0F/DQDKDQHWDO(YHQWKRXJKFRKDELWLQJIDWKHUVZRXOG QRW EH UHTXLUHG WR SD\ FKLOG VXSSRUW DQ DZDUHQHVV RI WKHLU SRWHQWLDO FKLOG VXSSRUW REOLJDWLRQVPD\SURYLGHDQLQFHQWLYHWRVWD\ZLWKWKHLUIDPLOLHV $OLJQ &KLOG 6XSSRUW 2EOLJDWLRQV :LWK WKH )DWKHU·V $ELOLW\ WR 3D\ DQG )RUJLYH 6RPH$UUHDUDJHV /RZLQFRPH IDWKHUV RIWHQ KDYH WR SD\ D PXFK KLJKHU SURSRUWLRQ RI WKHLU LQFRPH LQ FKLOGVXSSRUWWKDQGRPLGGOHRUXSSHULQFRPHIDWKHUV&DUOVRQHWDO7KLVLVEHFDXVH FKLOGVXSSRUWRUGHUVW\SLFDOO\DUHEDVHGRQWKHIDWKHUV·SUHVXPHGHDUQLQJVEDVHGRQZKDWWKH\ HDUQHGLQWKHSDVWRUZRXOGHDUQLQIXOOWLPHMREVDWWKHPLQLPXPZDJHUDWKHUWKDQRQZKDW WKH\ DFWXDOO\ HDUQ ,Q VRPH VWDWHV IDWKHUV DUH UHTXLUHG WR UHLPEXUVH 0HGLFDLG IRU WKHLU FKLOGUHQ·V ELUWK LPPHGLDWHO\ DIWHU GHOLYHU\ ,I IDWKHUV DUH XQHPSOR\HG XQGHUHPSOR\HG DQGRULQFDUFHUDWHGDVPDQ\IDWKHUVRIORZLQFRPHFKLOGUHQDUHWKH\DUHXQOLNHO\WREHDEOH WR SD\ WKH VXSSRUW DQG FDQ LQFXU KXJH DUUHDUDJHV 6RUHQVRQ HW DO )DWKHUV PD\ EH LQFDUFHUDWHG IRU QRQSD\PHQW RI VXSSRUW SXWWLQJ WKHP IXUWKHU LQWR GHEW ZKHQ WKH\ DUH UHOHDVHG,QDGGLWLRQWKH\PD\KDYHFKLOGUHQZLWKPRUHWKDQRQHSDUWQHUDQGIDFHPXOWLSOH FKLOGVXSSRUWRUGHUV /DUJH FKLOG VXSSRUW REOLJDWLRQV DQG DUUHDUDJHV PD\ ERWK FRQWULEXWH WR WKH WHQVLRQ EHWZHHQ SDUHQWV DQG SXVK IDWKHUV DZD\ IURP WKHLU IDPLOLHV 7KH IDWKHUV RIWHQ DUH RYHUZKHOPHG E\ WKH DPRXQW WKH\ DUH UHTXLUHG WR SD\ DQG PD\ UHVHQW WKH PRWKHUV DQG FKLOGUHQ 7KH PRWKHUV PD\ SHUFHLYH WKH IDWKHUV DV EHLQJ QHJOHFWIXO XQFRRSHUDWLYH DQG &KDSWHU93ROLF\2SWLRQVWR(QFRXUDJH0DUULDJHDQG)DPLO\)RUPDWLRQ FRQWULEXWLQJWRROLWWOHWRWKHLUIDPLOLHV&DUOVRQHWDO6RUHQVRQHWDO0F/DQDKDQ DQG*DUILQNHO 2QHVXJJHVWHGSROLF\FKDQJHLVWRVHWFKLOGVXSSRUWREOLJDWLRQVDWDIODWSHUFHQWDJHRI WKH IDWKHU·V LQFRPH 0F/DQDKDQ HW DO 7KH DGYDQWDJH RI WKLV FKDQJH LV WKDW REOLJDWLRQV ZRXOG DXWRPDWLFDOO\ GHFOLQH ZKHQ WKH IDWKHU LV QRW ZRUNLQJ %XW DV DFWXDO VXSSRUW SD\PHQWV KDYH EHHQ IRXQG WR LQFUHDVH ZKHQ VXSSRUW RUGHUV DUH H[SUHVVHG DV D SHUFHQWDJHRILQFRPH%DUWIHOGDQG*DUILQNHOWKHFKLOGPD\QRWUHFHLYHVXEVWDQWLDOO\ OHVVILQDQFLDOVXSSRUW7KLVZRXOGKRZHYHUFUHDWHVRPHZKDWRIDGLVLQFHQWLYHIRUWKHIDWKHU WR ZRUN DQG ZRXOG UHTXLUH D V\VWHP LQ ZKLFKFKDQJHV LQ WKH IDWKHU·V LQFRPH DUH UHSRUWHG DQGYHULILHG 6RPHVWDWHVKDYHIRUJLYHQDUUHDUDJHVXQGHUFHUWDLQFLUFXPVWDQFHV7HQQHVVHHIRUJLYHVD IDWKHU·VDUUHDUVLIKHPDUULHVWKHPRWKHURIKLVFKLOGUHQDQGOLYHVZLWKWKHIDPLO\9HUPRQW IRUJLYHVDUUHDUVLIWKHELRORJLFDOSDUHQWVUHXQLWHDOWKRXJKLWGRHVQRWVSHFLI\WKDWWKH\PDUU\ *DUGLQHUHWDO2WKHUVWDWHVKDYHSURJUDPVWROHVVHQRUIRUJLYHFKLOGVXSSRUWDUUHDUV LIQRQFXVWRGLDOSDUHQWVSDUWLFLSDWHLQHPSOR\PHQWIDWKHUKRRGRURWKHUSURJUDPVGHVLJQHG WR LPSURYH WKHLU HDUQLQJ SRWHQWLDO DQG LQYROYHPHQW DV SDUHQWV DQG LI WKH\ PDNH HIIRUWV WR EHJLQ SD\LQJ WKHLU GHEW 0DU\ODQG·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·VLQFHQWLYHWRPDNHSD\PHQWVDQG VWD\LQYROYHGZLWKWKHIDPLO\,QFUHDVLQJWKHDPRXQWRIFKLOGVXSSRUWSDVVHGWKURXJKWRWKH IDPLO\ ZRXOG DOORZ WKH IDWKHU WR VHH LPSURYHPHQWV LQ KLV FKLOGUHQ·V UHVRXUFHV DQG PD\ HQFRXUDJH KLP QRW RQO\ WR FRRSHUDWH ZLWK WKH V\VWHP EXW DOVR WR EHFRPH PRUH LQYROYHG ZLWKKLVIDPLO\ 5HGXFLQJWKHDPRXQWRIFKLOGVXSSRUWUHWDLQHGE\WKHJRYHUQPHQWPD\KRZHYHUKDYH DQHJDWLYHHIIHFWRQWKHLQFHQWLYHVIRUDFRXSOHWRPDUU\,IWKHJRYHUQPHQWUHWDLQVVRPH FKLOGVXSSRUWPRUHRIWKHIDWKHU·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·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´IDPLO\ FRYHUDJHµ FDWHJRU\ZKLFK DSSOLHV WKH ROG $)'& HOLJLELOLW\ UXOHV IRU WZRSDUHQW IDPLOLHV WR WKH GHWHUPLQDWLRQ RI 0HGLFDLG HOLJLELOLW\ %XWVWDWHVPD\WDNHVWHSVWRH[SDQGHOLJLELOLW\LQFOXGLQJHOLPLQDWLQJWKHKRXUDQGUHFHQW ZRUN KLVWRU\ UXOHV DQG SURYLGLQJ 0HGLFDLG FRYHUDJH WR QHZ FDWHJRULHV RI SHRSOH WKURXJK 6HFWLRQ ZDLYHUV 6WDWHV DOVR PD\ GLVUHJDUG FHUWDLQ LQFRPH DQG DVVHWV WKHUHE\ H[SDQGLQJHOLJLELOLW\$VRIVWDWHVEDVHG0HGLFDLGHOLJLELOLW\HQWLUHO\RQDWZRSDUHQW IDPLO\·VILQDQFLDOFLUFXPVWDQFHVDQGXVHGZDLYHUVWRFRYHUWZRSDUHQWIDPLOLHV*DUGLQHU HWDO 'HVSLWHWKHVHFKDQJHVVRPHWZRSDUHQWIDPLOLHVEHFRPHLQHOLJLEOHIRUFRYHUDJHLIWKHLU FRPELQHGLQFRPHSXVKHVWKHPSDVWWKHWKUHVKROGIRUHOLJLELOLW\7RDGGUHVVWKLVVLWXDWLRQ WKUHH VWDWHV SURYLGH LQVXUDQFH IRU SDUHQWV LQFOXGLQJ WKRVH LQ WZRSDUHQW IDPLOLHV WKURXJK VWDWHIXQGHG SURJUDPV DQG VL[ KDYH UHFHLYHG ZDLYHUV IURP WKH 6WDWH &KLOGUHQ·V +HDOWK ,QVXUDQFH3URJUDP6&+,3WRFRYHUSDUHQWV*DUGLQHUHWDO 'LVUHJDUG6SRXVH·V(DUQLQJVLQ'HWHUPLQLQJ+RXVLQJ$VVLVWDQFH(OLJLELOLW\DQG %HQHILWV +RXVLQJ DVVLVWDQFH LV DYDLODEOH IRU ORZLQFRPH IDPLOLHV IURP IHGHUDO VWDWH DQG ORFDO SURJUDPV 5HQW VXEVLG\ SURJUDPV JHQHUDOO\ UHGXFH WHQDQWV·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·VHDUQLQJVLQGHWHUPLQLQJ WKHPDUULHGFRXSOH·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·V LQFRPH RU LI PDUULHG RQ WKH FRXSOH·V LQFRPH'HSHQGLQJRQWKHGLVWULEXWLRQRILQFRPHEHWZHHQWKHVSRXVHVWD[HVFRXOGFRQWDLQ PDUULDJH SHQDOWLHV RU ERQXVHV $FFRUGLQJ WR WKH 86 *HQHUDO $FFRXQWLQJ 2IILFH WKHUHDUHSURYLVLRQVLQWKH86LQFRPHWD[FRGHWKDWHLWKHUSHQDOL]HRUUHZDUGPDUULDJH 7KH HDUQHG LQFRPH WD[ FUHGLW (,7& LV RI SDUWLFXODU LPSRUWDQFH WR ORZLQFRPH SRSXODWLRQV7KH(,7&LVDUHIXQGDEOHWD[FUHGLWWKDWLQFUHDVHVZLWKDILOHU·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´KHDOWK\µ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³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³ZLWK KRPH YLVLWLQJ SURJUDPV IDWKHUKRRG LQWHUYHQWLRQV SUHQDWDO FDUH LQLWLDWLYHV RU HDUO\ FKLOGKRRG GHYHORSPHQW SURJUDPV³FRXOG VWUHQJWKHQ RU DGG D UHODWLRQVKLSRUPDUULDJHFRPSRQHQWWRWKHLUVHUYLFHV7KHH[WHQWWRZKLFK7$1)DQGFKLOG VXSSRUWSROLF\FKDQJHVDUHLQWHJUDWHGLQWRHLWKHUSURJUDPPRGHOLVOLNHO\WRGHSHQGRQWKH LQYROYHPHQW RI KLJKOHYHO RIILFLDOV LQ D VWDWH ZHOIDUH DJHQF\ RU JRYHUQRU·V RIILFH ZKR FDQ ´FKDPSLRQµ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´LQKRXVHµRUWRUHIHUFRXSOHVWRDYDLODEOHUHVRXUFHVLQWKHFRPPXQLW\3URYLGLQJ WKHVHVHUYLFHV´LQKRXVHµPD\EHFRVWO\DQGPD\GXSOLFDWHVHUYLFHVDOUHDG\DYDLODEOHLQWKH FRPPXQLW\ 3URJUDP VWDII ZRXOG KDYH WR ZHLJKWKHVH FRVWV DJDLQVW DQ\H[SHFWHG EHQHILW DVVRFLDWHGZLWKLQKRXVHVHUYLFHGHOLYHU\VXFKDVWKHDELOLW\WRWDLORUWKHVHUYLFHVRUVFKHGXOH WKHPLQPRUHFRQYHQLHQWZD\V+RZHYHUWKHFRVWVPD\RXWZHLJKVXFKSRVVLEOHDGYDQWDJHV DQGVXJJHVWWKDWUHIHUUDODQGIROORZXSLVSUHIHUDEOH 7KH VHFRQG RSWLRQ³DGGLQJ D UHODWLRQVKLS FRPSRQHQW WR D SURJUDP WKDW FXUUHQWO\ VHUYHV ORZLQFRPH IDPLOLHV³FRXOG EXLOG RQ ERWK WKDW SURJUDP·V LQIUDVWUXFWXUH DQG WKH &KDSWHU9,3URJUDP'HYHORSPHQWDQG,PSOHPHQWDWLRQ,VVXHV SURJUDP VWDII·V DZDUHQHVV RI WKH QHHGV RI ORZLQFRPH IDPLOLHV ([DPSOHV RI H[LVWLQJ SURJUDPVWKDWFRXOGEHPRGLILHGWRLQFOXGHUHODWLRQVKLSVNLOOVDQGPDUULDJHHGXFDWLRQDUH • 3UHQDWDO&DUH3URJUDPV3UHQDWDODQGLQIDQWFDUHSURJUDPVVXFKDV+HDOWK\ 6WDUW SURYLGH FDVH PDQDJHPHQW VHUYLFHV WKDW OLQN ORZLQFRPH SUHJQDQW DQG SRVWSDUWXP ZRPHQ DQG WKHLU LQIDQWV WR FRPPXQLW\ VHUYLFHV ,Q DGGLWLRQ +HDOWK\ 6WDUW KDV D VWURQJ RXWUHDFK FRPSRQHQW DQG GHOLYHUV KHDOWK DQG SDUHQWLQJ HGXFDWLRQ WR FOLHQWV 0DQ\ ORFDO SURJUDPV KDYH D PHQ·V VHUYLFHV FRPSRQHQW7KHVHRXWUHDFKHIIRUWVDQGWKHVHUYLFHGHOLYHU\LQIUDVWUXFWXUHFRXOG DFWDVDVSULQJERDUGIRUDPRGXOHRUPRGXOHVRQFRXSOHUHODWLRQVKLSV • )DWKHUKRRG 3URJUDPV 7KLV EURDG DUUD\ RI SURJUDPV IRU ORZLQFRPH IDWKHUV³VXFK DV FKLOG VXSSRUW HQIRUFHPHQW DQG SDWHUQLW\ HVWDEOLVKPHQW SURJUDPV IDWKHUKRRG LQLWLDWLYHV DQG WHDP SDUHQWLQJ SURJUDPV³VHHNV WR KHOS PHQEHFRPHEHWWHUDEOHWRVXSSRUWDQGFRQWULEXWHWRWKHHPRWLRQDOZHOOEHLQJ RI WKHLU FKLOGUHQ 7KH 0HQ·V 6HUYLFHV FRPSRQHQW RI &):' IRU H[DPSOH SURYLGHV FDVH PDQDJHPHQW OLIH VNLOOV GHYHORSPHQW DQG SDUHQWLQJ HGXFDWLRQ VHUYLFHVWRHQFRXUDJHPHQWREHFRPHPRUHDFWLYHLQWKHLUFKLOGUHQ·VOLYHV7KLV VWUXFWXUH FRXOG VXSSRUW UHODWLRQVKLS RU FRXSOHV VHUYLFHV ,QGHHG &):' LV GHYHORSLQJDPRGXOHRQWKHSULQFLSOHVRIPDUULDJHWKDWZLOOEHDGGHGWKLVIDOO • +RPH 9LVLWDWLRQ 3URJUDPV +HDOWK\ 6WDUW DQG 'DYLG 2OGV· 1XUVH)DPLO\ 3DUWQHUVKLS3URJUDPDUHLQWHQVLYHORQJWHUPKRPHYLVLWDWLRQSURJUDPVLQZKLFK WKHLQWHUYHQWLRQVWDUWVZLWKDWULVNPRWKHUVGXULQJSUHJQDQF\RUVKRUWO\DIWHUWKH ELUWK RI WKH FKLOG 7KH JRDOV DUH WR LPSURYH KHDOWKUHODWHG RXWFRPHV IRU PRWKHUV DQG FKLOGUHQ DQG SUHYHQW FKLOG DEXVH DQG QHJOHFW (IIRUWV DUH XQGHU ZD\ &KLOGUHQ )LUVW SURJUDP WR LQWHJUDWH HOHPHQWV RI 35(3 LQWR WKH 1XUVH )DPLO\ 3DUWQHUVKLS 3URJUDP DQG WR GHYHORS SURJUDP HOHPHQWV WR UHGXFH GRPHVWLFYLROHQFH • (DUO\&KLOGKRRG'HYHORSPHQW3URJUDPV,QSURJUDPVVXFKDV(DUO\+HDG 6WDUW ZKLFK DOVR LQWHUYHQH HDUO\ LQ WKH FKLOG·V OLIH D VWURQJ HIIRUW LV PDGH WR LQYROYHERWKSDUHQWVLQWKHFKLOG·VGHYHORSPHQW6RPHSURJUDPVDUHEDVHGLQ FHQWHUVVRPHXVHDKRPHYLVLWDWLRQDSSURDFKVRPHXVHDFRPELQDWLRQ7KHVH SURJUDPV GR QRW FXUUHQWO\ IRFXV H[SOLFLWO\ RQ KHDOWK\ PDUULDJH EXW PDQ\ SURPRWHSRVLWLYHIDWKHULQYROYHPHQW5DLNHVHWDO •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·VDELOLW\WRUHFUXLWSDUWLFLSDQWVIURPWKHWDUJHW &KDSWHU9,3URJUDP'HYHORSPHQWDQG,PSOHPHQWDWLRQ,VVXHV SRSXODWLRQ DQG FRQGXFW WKRURXJK RXWUHDFK SURYLGH VHUYLFHV DQG XVH FXUULFXOD WKDW DUH FXOWXUDOO\FRPSHWHQWGHOLYHUDPHVVDJHWKDWHQFRXUDJHVKHDOWK\FRXSOHUHODWLRQVKLSVDQG PDUULDJHVDQGDVVHVVSDUWLFLSDQWV·QHHGVDQGOLQNWKHPWRHPSOR\PHQWHGXFDWLRQKHDOWK DQGVXSSRUWLYHVHUYLFHV 2QH LPSRUWDQW DGYDQWDJH RI WKH ILUVW RSWLRQ³PRGLI\LQJ H[LVWLQJ UHODWLRQVKLS DQG PDUULDJHHGXFDWLRQSURJUDPVWRVHUYHORZLQFRPHXQZHGSDUHQWV³LVWKDWWKHUHLVQRQHHG WRDGDSWWKHSURJUDPPLVVLRQJRDOVRUFRUHVHUYLFHFRPSRQHQWVLQRUGHUWRSURYLGHFRXSOHV ZLWKWKHVNLOOVQHHGHGWRHQFRXUDJHGHYHORSDQGVXVWDLQKHDOWK\UHODWLRQVKLSVDQGPDUULDJHV +RZHYHU PRVW RI WKHVH SURJUDPV KDYH EHHQ GHVLJQHG IRU DQG LPSOHPHQWHG ZLWK PLGGOH DQG XSSHULQFRPH PDUULHG RU HQJDJHG FRXSOHV RU ZLWK PDUULHG FRXSOHV PDNLQJ WKH WUDQVLWLRQ WR SDUHQWKRRG ,Q FRQWUDVW WKH WDUJHW SRSXODWLRQ IRU WKH SURJUDPV WR EH GHYHORSHGXQGHUWKLVFRQFHSWXDOIUDPHZRUNLVSULPDULO\ORZLQFRPHXQPDUULHGFRXSOHVZLWK FKLOGUHQERUQRXWRIZHGORFN &RQVHTXHQWO\ GHVSLWH WKH DGYDQWDJHV DIIRUGHG E\ DGDSWLQJ H[LVWLQJ UHODWLRQVKLS VNLOOV SURJUDPV WKLV RSWLRQ PD\ SRVH FKDOOHQJHV ZLWK UHJDUG WR IXOO\ UHDFKLQJ WKH ´QHZµ WDUJHW SRSXODWLRQ³QRWRQO\JHRJUDSKLFDOO\EXWFXOWXUDOO\DQGOLQJXLVWLFDOO\DVZHOO)RULQVWDQFH SURJUDPVWDIIZRXOGKDYHWREHNQRZOHGJHDEOHDERXWWKHQHHGVRIGLIIHUHQWUDFLDODQGHWKQLF JURXSVDQGVHQVLWLYHWRDQ\FXOWXUDOYDULDWLRQVLQKRZ´KHDOWK\µUHODWLRQVKLSVDQGPDUULDJHV DUH FRQFHSWXDOL]HG )LQDOO\ WKHVH SURJUDPV ZLOO QHHG WR GHYHORS D V\VWHPDWLF ZD\ RI DVVHVVLQJFOLHQWQHHGVDQGOLQNLQJFOLHQWVWRVHUYLFHVDVWKHWDUJHWSRSXODWLRQLVPRUHOLNHO\WR IDFH PXOWLSOH SHUVRQDO DQG IDPLO\ FKDOOHQJHV UHODWLYH WR FRXSOHV ZKR KDYH WUDGLWLRQDOO\ SDUWLFLSDWHGLQWKHVHSURJUDPV 7KH VHFRQG RSWLRQ³DGGLQJ D UHODWLRQVKLS FRPSRQHQW WR D SURJUDP WKDW VHUYHV ORZ LQFRPH IDPLOLHV³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·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³&KULVWLDQ )DPLO\ &RPPXQLFDWLRQ0HGLDWLRQ6HUYLFHVLQ6W/RXLVIRUH[DPSOH³VWDIIDUHKHVLWDQWDERXWWKH DSSHDUDQFHRIDGYRFDWLQJPDUULDJH 3URJUDP VWDII LQ JHQHUDO GR QRW WKLQN WKDW D FRXSOH·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·VELUWKZKHQWKHSDUHQWDO UHODWLRQVKLSLVRIWHQVWLOOJRRGDQGKRSHVIRUPDUULDJHDUHKLJK$QRWKHUUHDVRQLVWKDWWKH TXDOLW\ DQG VWDWXV RI SDUHQWDO UHODWLRQVKLSV KDYH QRW EHHQ GHILQHG DV SURJUDP JRDOV LQ WKH SDVWDQGVWDIIKDYHQRWUHFHLYHGDGHTXDWHWUDLQLQJRUVXSSRUWWRH[SORUHWKHVHLVVXHV7KLVLV SDUWLFXODUO\WUXHIRUSURJUDPVWKDWKDYHWUDGLWLRQDOO\SURYLGHGVHUYLFHVWRZRPHQDQGWKHLU FKLOGUHQEXWWRDOHVVHUH[WHQWRUQRWDWDOOWRIDWKHUV)RUH[DPSOHQXUVHKRPHYLVLWRUVLQ 2NODKRPD·V&KLOGUHQ)LUVWSURJUDPYRLFHGFRQFHUQVDERXWWKHDELOLW\WRHIIHFWLYHO\LQWHJUDWH &KDSWHU9,3URJUDP'HYHORSPHQWDQG,PSOHPHQWDWLRQ,VVXHV D IRFXV RQ WKH SDUHQWV·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³ZKHWKHULWLVPDUULDJHLWVHOIGLYRUFHVLQJOHSDUHQWKRRG RU FRKDELWDWLRQ³DQG SURJUDP PRGHOV DQG SROLFLHV WKDW GR QRW UHIOHFW WKLV UHDOLW\ PD\ H[DFHUEDWHUDWKHUWKDQDGGUHVVWKHGLVFRPIRUWRUXQFHUWDLQW\UHODWHGWRDGGUHVVLQJWKLVLVVXH LQDSURJUDP 'HVSLWH VRPH XQHDVLQHVV DERXW SURPRWLQJ PDUULDJH SHU VH UHODWLRQVKLS LVVXHV DUH FRPPRQO\GLVFXVVHGLQWKHFRXUVHRISURYLGLQJPDQ\VHUYLFHVWRORZLQFRPHIDPLOLHVVXFK DV SDUHQWLQJ HGXFDWLRQ DQG IDWKHU LQYROYHPHQW SURJUDPV 1RW VXUSULVLQJO\ WKH FRXSOH·V UHODWLRQVKLSLVRQHRIWKHLVVXHVWKDWFOLHQWVFDUHPRVWDERXW3URJUDPVWDIIVD\WKH\GLVFXVV WRSLFV OLNH FRQIOLFW FRSDUHQWLQJ DQG FRPPXQLFDWLRQ ZLWK WKHLU FOLHQWV WKRXJK QRW LQ D VWUXFWXUHG ZD\ DQG XVXDOO\ ZLWKRXW WKH XVH RI DQ\ IRUPDO UHVHDUFKWHVWHG FXUULFXOXP ,Q %LHQYHQLGRV IRU H[DPSOH KRPH YLVLWRUV UHJXODUO\ FRXQVHO SDUHQWV RQ WKHLU UHODWLRQVKLS 'XULQJ RQH KRPH YLVLW REVHUYHG E\ WKH 6WUHQJWKHQLQJ )DPLOLHV VWXG\ WHDP SURJUDP VWDII VSHQWDERXWRQHWKLUGRIWKHLUWLPHGLVFXVVLQJLVVXHVUHODWHGWRWKHFRXSOH·VUHODWLRQVKLSDQG DGYLVHGWKHFRXSOHZKRKDGVL[FKLOGUHQWRWU\WRVHWWLPHDVLGHIRUWKHWZRRIWKHPWREH WRJHWKHUZLWKRXWWKHLUFKLOGUHQ 7KH QDWXUDO LQWHUHVW LQ FRXSOH DQG IDPLO\ UHODWLRQVKLSV RSHQV XS DQ RSSRUWXQLW\ IRU HQFRXUDJLQJKHDOWK\PDUULDJHDQGFUHDWLYHZD\VWRRYHUFRPHWKHUHOXFWDQFHDERXWPDNLQJ KHDOWK\ PDUULDJH D SURJUDP JRDO QHHG WR EH FRQVLGHUHG 6HYHUDO SRVVLELOLWLHV LQFOXGH WKH IROORZLQJ • 3URYLGH ,QIRUPDWLRQ RQ 0DUULDJH 5HVHDUFK DQG 0DUULDJH (GXFDWLRQ 0DQ\ SURJUDP DQG SROLF\ OHDGHUV DUH XQDZDUH RI WKH HYLGHQFH VKRZLQJ WKDW FKLOGUHQIDUHEHVWZKHQUDLVHGE\PDUULHGSDUHQWV2WKHUVDUHXQIDPLOLDUZLWK WKHDUUD\RISURPLVLQJDSSURDFKHVWKDWFRXOGEHXVHGWRKHOSFRXSOHVZKRDUH LQWHUHVWHG LQ VWUHQJWKHQLQJ WKHLU UHODWLRQVKLSV ,QIRUPDWLRQ GLVVHPLQDWLRQ HIIRUWVFRXOGDGGUHVVWKHVH´ZK\µDQG´KRZµTXHVWLRQVE\ 3URYLGLQJDQHDV\WRUHDGH[SODQDWLRQRIWKHHYLGHQFHIRUWKHEHQHILFLDO HIIHFWVRIKHDOWK\PDUULDJHRQFKLOGZHOOEHLQJ &KDSWHU9,3URJUDP'HYHORSPHQWDQG,PSOHPHQWDWLRQ,VVXHV &RPSLOLQJ GLVVHPLQDWLQJ DQG GHPRQVWUDWLQJ VRPH RI WKH PRVW SURPLVLQJ FXUULFXOD XVHG LQ PDUULDJH HGXFDWLRQ DQG UHODWLRQVKLS VNLOOV SURJUDPV 6XJJHVWLQJDUHDVIRUDGDSWDWLRQWRPDNHSURJUDPVPRUHDSSURSULDWHIRU ORZLQFRPHXQPDUULHGSDUHQWFRXSOHV • $YRLG2YHUVWDWLQJWKH5HVHDUFK)LQGLQJV3UHVHQWDWLRQVLQYROYLQJORQJOLVWV RI WKH VWDWLVWLFV RQ EHWWHU RXWFRPHV IRU FKLOGUHQ DQG DGXOWV LQ PDUULHG KRXVHKROGVFDQFRPHDFURVVDVVLPSOLVWLFDQGDVVOLJKWVWRWKHVXFFHVVHVRIVLQJOH SDUHQWV7KLVPLJKWEHDYRLGHGLIWKHSUHVHQWHUVDFNQRZOHGJHWKDWPDUULDJHLV QRWIRUHYHU\RQHWKDWJHWWLQJPDUULHGLVQRWDVXUHSDWKWRSRVLWLYHRXWFRPHV WKDWWKHUHDOJRDOLVWRLPSURYHWKHFKDQFHRIVXFFHVVDQGWKDWRWKHUWKLQJVEHLQJ HTXDODKHDOWK\PDUULDJHJLYHVSDUHQWVDQGFKLOGUHQDEHWWHUFKDQFHRIVXFFHVVLQ PDQ\VSKHUHVRIOLIH •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• 3URYLGH 6WDII 7UDLQLQJ 7KH UHVLVWDQFH WR SURPRWLQJ KHDOWK\ PDUULDJH VRPHWLPHVHPDQDWHVIURPDQLQDGHTXDWHXQGHUVWDQGLQJRQWKHSDUWRISURJUDP VWDII DERXW WKH QDWXUH RI UHODWLRQVKLSHGXFDWLRQ VHUYLFHV 6WDII PD\ EH FRQFHUQHG DERXW WKH ULVN RI HQFRXUDJLQJ LQGLYLGXDOV WR UHPDLQ LQ XQKHDOWK\ UHODWLRQVKLSVRUWKH\PD\IHDUWKDWWKHQHZLQLWLDWLYHZLOOUHTXLUHWKDWWKH\SXVK PDUULDJHIRUSDUWLFXODUFRXSOHV,QYHVWLQJLQVWDIIWUDLQLQJ³DVLQWKH2NODKRPD 0DUULDJH ,QLWLDWLYH³PD\ KHOS WR DOOHYLDWH WKHVH DQG RWKHU VWDII FRQFHUQV E\ SUHVHQWLQJLQIRUPDWLRQRQWKHFRQWHQWRIWKHLQWHUYHQWLRQDQGWKHFLUFXPVWDQFHV XQGHUZKLFKFRXSOHVZRXOGEHHOLJLEOH •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pFRUDQGSURJUDPPDWHULDOV 3UREDEO\ WKH PRVW HIIHFWLYH ZD\ WR DFKLHYH FXOWXUDO VHQVLWLYLW\ LV WR LQIXVH SURJUDP FXUULFXOD DQG DFWLYLWLHV ZLWK HOHPHQWV RI WKH FXOWXUH )RU H[DPSOH %LHQYHQLGRV LQFOXGHV DVSHFWV RI /DWLQR DQG LQGLJHQRXV FXOWXUH LQ DOO DVSHFWV RI VHUYLFH SURYLVLRQ &):' KDV GHVLJQHG DQ $IURFHQWULF FXUULFXOXP IRU 0HQ·V 6HUYLFHV LQ ZKLFK $IULFDQ DQG $IULFDQ $PHULFDQWKHPHVDUHXVHGWKURXJKRXWLWVOHVVRQV+ROLGD\FHOHEUDWLRQVDQGRWKHUWUDGLWLRQV DUHDFRPPRQZD\IRUERWKRIWKHVHSURJUDPVWRFRQQHFWZLWKSDUWLFLSDQWV)RUH[DPSOH &):' EHJLQV DOO VXSSRUW JURXSV ZLWK D ´OLEDWLRQµ DQ $IULFDQ WUDGLWLRQ IRU KRQRULQJ DQFHVWRUV E\ SRXULQJ D FHUHPRQLDO OLTXLG LQWR D FRQWDLQHU DQG SD\LQJ WULEXWH LQ YHUVH 6LPLODUO\LQLWVIDWKHUKRRGVHUYLFHV%LHQYHQLGRVHPSKDVL]HVEHFRPLQJDQ+RPEUHGH+RQRU RU +RPEUH GH 3DODEUD³D 0DQ RI +RQRU RU D 0DQ RI :RUG³ZKLFK FRQQRWHV D XQLTXHO\ /DWLQRYDOXHRUYLHZRISHUVRQDOUHVSRQVLELOLW\ 6WDII KLULQJ DQG WUDLQLQJ DOVR DUH LPSRUWDQW HOHPHQWV RI FXOWXUDOO\ VHQVLWLYH SURJUDPV 3DUWLFLSDQWV DUH PRUH OLNHO\ WR H[SUHVV WKHLU QHHGV DQG SUREOHPV WR VWDII LI WKH\ IHHO FRPIRUWDEOHDQGXQGHUVWRRGLQWKHSURJUDPVHWWLQJ6WDIIZKRVKDUHD´FRPPXQLW\µZLWK FOLHQWV³ZKHWKHU WKDW FRPPXQLW\ LV GHILQHG E\ UDFH HWKQLFLW\ JHRJUDSK\RU FRPPRQ OLIH H[SHULHQFHV³DUH HVSHFLDOO\ DEOH WR FRQQHFW ZLWK SDUWLFLSDQWV DQG WR GHVLJQ DQG SURYLGH VHUYLFHVWKDWDUHUHOHYDQWWRWKHP$WERWK%LHQYHQLGRVDQG&):'PRVWRUDOORIWKHVWDII VKDUH UDFH HWKQLFLW\ DQG ODQJXDJH ZLWK SDUWLFLSDQWV DORQJ ZLWK OLIH H[SHULHQFHV DQG D FRQQHFWLRQWRORFDOQHLJKERUKRRGV &XOWXUDOVHQVLWLYLW\DOVRJRHVEH\RQGFXUULFXOXPGHVLJQDQGVWDIILQJ)RULQVWDQFHWKH RIILFH Gp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³DGGLQJUHODWLRQVKLS VHUYLFHVWRSURJUDPVWKDWDOUHDG\VHUYHORZLQFRPHIDPLOLHV³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³JURFHU\ VWRUHV PDOOVODXQGURPDWVQDLODQGKDLUVDORQVDQGKRXVLQJXQLWV,QDGGLWLRQPDQ\+HDOWK\6WDUW SURJUDPVKRVWRUSDUWLFLSDWHLQFRPPXQLW\KHDOWKIDLUVWDNLQJDGYDQWDJHRIWKHRSSRUWXQLW\ WRVSUHDGLQIRUPDWLRQDERXWSURJUDPVHUYLFHV %URDGHUSXEOLFLQIRUPDWLRQHGXFDWLRQHIIRUWV³VXFKDVUDGLRVSRWVEXVFDUGVKRWOLQHV ELOOERDUGV DQG IO\HUV³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³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³FRPSDUHG ZLWK SHUFHQW RI ZRPHQ QDWLRQDOO\³UHSRUW EHLQJ LQ D UHODWLRQVKLS PDUNHG E\ GRPHVWLF YLROHQFH 86 *HQHUDO$FFRXQWLQJ2IILFH'DQ]LJHUHWDO7KHUHVHDUFKDOVRVKRZVWKDWDEXVH LQ FRXSOH UHODWLRQVKLSV DQG FKLOG DEXVH RIWHQ RFFXU LQ WKH VDPH IDPLOLHV 2RPV *LYHQWKHHYLGHQFHLWLVSDUWLFXODUO\LPSRUWDQWIRUSURJUDPVGHYHORSLQJUHODWLRQVKLSVHUYLFHV WR FDUHIXOO\ FRQVLGHU KRZ WKH\ ZLOO HQVXUH WKDW FOLHQWV DUH QRW HQFRXUDJHG WR UHPDLQ ZLWK DEXVHUV RU SXW WKHPVHOYHV RU WKHLU FKLOGUHQ DW ULVN ,Q DGGLWLRQ VFUHHQLQJ IRU GRPHVWLF YLROHQFHDOVRDOORZVIRUWKHWDLORULQJRIVHUYLFHVWRERWKSHUSHWUDWRUVDQGYLFWLPVRIDEXVLYH UHODWLRQVKLSV $GGUHVVLQJWKLVLVVXHDSSURSULDWHO\DQGFRQVLVWHQWO\LVDFKDOOHQJLQJWDVNJLYHQFHUWDLQ FKDUDFWHULVWLFVRIDEXVLYHUHODWLRQVKLSV)RURQHWKHW\SHVDQGGHJUHHVRIDEXVHYDU\IURP RQH FOLHQW WR WKH QH[W 7KH WUDGLWLRQDO VLJQV RI GRPHVWLF YLROHQFH³FRQWUROOLQJ EHKDYLRU WKUHDWVSK\VLFDODQGYHUEDODEXVHDQGDQLQHYLWDEOHHVFDODWLRQRIYLROHQFH³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´VSHDNWKHLUPLQGµ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·VVNLOOVDQGFRQILGHQFHZKLOHZRUNLQJZLWKWKHDEXVHURQERWK DQJHUPDQDJHPHQWDQGUHODWLRQVKLSDQGSDUHQWLQJLVVXHV,QPRUHVHYHUHFDVHVVWDIIUHIHU DEXVHGSDUWLFLSDQWVWRDORFDOGRPHVWLFYLROHQFHVKHOWHU 7KH ´JUD\ DUHDVµ RI GRPHVWLF YLROHQFH KDYH OHG VRPH SURJUDP VWDII WR GHYHORS D IOH[LEOHFDVHE\FDVHDSSURDFKWRWKHLVVXHDQGWRIRFXVRQSURYLGLQJIDPLOLHVZLWKWKHVNLOOV DQGLQIRUPDWLRQWKH\QHHGWRPDNHWKHLURZQGHFLVLRQV:KHQ&):'LGHQWLILHVDPDQLQ LWV SURJUDPV ZKR LV DEXVLQJ KLV SDUWQHU VWDII DSSURDFK WKH VLWXDWLRQ LQ GLIIHUHQW ZD\V GHSHQGLQJRQWKHVHYHULW\RIWKHSUREOHPDQGWKHZLOOLQJQHVVRIWKHSDUWLFLSDQWWRDGPLWWR WKHSUREOHP7KHVHDSSURDFKHVUDQJHIURPKHOSLQJWKHFOLHQWVHHKLVEHKDYLRUDVDSUREOHP WR UHIHUULQJ KLP WR D EDWWHUHU·V SURJUDP DW DQ RUJDQL]DWLRQ WKDW WUHDWV GRPHVWLF YLROHQFH -HUU\ 7HOOR·V FXUULFXOXP XVHG E\ WKH 1DWLRQDO /DWLQR )DWKHUKRRG DQG )DPLO\ ,QVWLWXWH DW %LHQYHQLGRVIRFXVHVRQWKHURRWFDXVHVRIYLROHQWEHKDYLRULQFOXGLQJWKHSUHVVXUHVFDXVHG E\ UDFLVP SRYHUW\ DQG YLROHQFH LQ WKH FOLHQW·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´ELRORJLFDOSDUHQWµVRVKHKDV OHDUQHGWRXVHGLIIHUHQWWHUPVIRUWKHVDPHFRQFHSWDQGWR SURYLGH PRUH H[SODQDWLRQ IRU WHUPLQRORJ\ VKH XVHV $QRWKHU LOOXVWUDWLRQ RI WKLV NLQG RI DGDSWDWLRQ LV WKH &RXSOHV·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·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·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·UHODWLRQVKLSV 2QWKHRWKHUKDQGLILPSOHPHQWHGFDUHIXOO\LQWHUYHQWLRQVGHYHORSHGZLWKLQWKHZHOIDUH VHWWLQJPLJKWSURYLGH7$1)FOLHQWVZLWKWKHVXSSRUWWKH\QHHGWRIRUPKHDOWK\DQGVWDEOH PDUULDJHV7KH7RUUHV0DUWLQH]'HVHUW&DKXLOOD,QGLDQ&RQVRUWLXPLVDQH[DPSOHRIDWULEDO 7$1)DJHQF\WKDWKDVSXWVHUYLFHVLQSODFHWRVXSSRUWFOLHQWV·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³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·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·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·WUXVWLQRUGHUWRHIIHFWLYHO\SURYLGHVHUYLFHVEHFDXVHSDUWLFLSDQWVDUHQRW DVNHG WR H[SUHVV WKHLU HPRWLRQV RU GLVFXVV VHQVLWLYH WRSLFV 7KLV DSSURDFK PD\ EH SDUWLFXODUO\ XVHIXO LQ FHUWDLQ SRSXODWLRQV $V QRWHG /RUUDLQH %ODFNPDQ GHYHORSHG WKH $IULFDQ $PHULFDQ )DPLO\ /LIH (GXFDWLRQ 3URJUDP RQ WKH EDVLV RI DQ H[WHQVLYH OLWHUDWXUH UHYLHZ VXJJHVWLQJ WKDW $IULFDQ $PHULFDQ FRXSOHV DUH PRUH OLNHO\ WR SUHIHU WKH FODVVURRP &KDSWHU9,3URJUDP'HYHORSPHQWDQG,PSOHPHQWDWLRQ,VVXHV DSSURDFKRYHUDFWLYLWLHVLQYROYLQJWKHGLVFORVXUHRISHUVRQDOLQIRUPDWLRQ,QDGGLWLRQ35(3 SURJUDP GHYHORSHUV KDYH IRXQG WKDW PHQ LQ JHQHUDO DUH PRUH OLNHO\ WR SDUWLFLSDWH LQ SURJUDPVWKDWXVHDGLGDFWLFDSSURDFK :RUNVKRSV VHPLQDUV DQG UHWUHDWV DUH W\SLFDOO\ GHVLJQHG IRU HGXFDWHG DQG PLGGOHWR KLJKLQFRPH SRSXODWLRQV 7KHLU HIIHFWLYHQHVV ZLWK ORZLQFRPH SRSXODWLRQV UHPDLQV XQNQRZQ2QHSRVVLEOHGUDZEDFNWRWKHFODVVURRPDSSURDFKLVWKDWLWPD\UHTXLUHFRXSOHV WR WDNH WLPH RII IURP ZRUN D VLJQLILFDQW FKDOOHQJH QRW RQO\ EHFDXVH ORZLQFRPH ZRUNHUV FDQQRW DIIRUG WR ORVH HDUQLQJV DVVXPLQJ WKH\ KDYH QRW DFFUXHG YDFDWLRQ WLPH EXW DOVR EHFDXVHPDQ\ORZLQFRPHLQGLYLGXDOVZRUNRGGKRXUVDQGZHHNHQGV +RPH 9LVLWV +RPHEDVHG VHUYLFHV DOORZ VWDII WR DGGUHVV PXOWLSOH QHHGVRI IDPLOLHV ZKLOH WHDFKLQJ SDUWLFLSDQWV UHODWLRQVKLS VNLOOV LQ D RQHRQRQH VHWWLQJ %LHQYHQLGRV KDV IRXQGWKDWEHFDXVHKRPHYLVLWVFDQDFFRPPRGDWHWKHVFKHGXOHRILQGLYLGXDOIDPLOLHVWKH\ DUH D SDUWLFXODUO\ HIIHFWLYH ZD\ WR DGGUHVV WKH QHHGV RI WKH PRVW YXOQHUDEOH DQG QHHG\ IDPLOLHVRQDQRQJRLQJEDVLV 7KHOLPLWDWLRQVWRDKRPHYLVLWLQJPRGHODUHUHODWHGWRFRVWHIILFLHQF\LQWHUPVRIWKH UHVRXUFHV UHTXLUHG E\ WKH DSSURDFK UHODWLYH WR WKH QXPEHU RI IDPLOLHV WKDW FDQ EH VHUYHG +RPHYLVLWVDUHW\SLFDOO\PRUHFRVWO\WKDQFODVVURRPPHWKRGVEHFDXVHVHUYLFHVDUHGHOLYHUHG RQHRQRQHUDWKHUWKDQWRJURXSV,QDGGLWLRQLIIDPLOLHVDUHQRWDWKRPHDWWKHWLPHRIWKH VFKHGXOHGYLVLWWKHSURJUDPPXVWVWLOOEHDUWKHFRVWRIWKHVWDIIWLPHWRWUDYHOWRDQGIURP WKH UHVLGHQFH %XW QRVKRZV KDYH EHHQ IHZ DQG IDU EHWZHHQ LQ WKH %LHQYHQLGRV KRPH YLVLWLQJ SURJUDP FRPSRQHQW DQG VWDII PHPEHUV DWWULEXWH WKLV WR WKUHH DVSHFWV RI WKHLU SURJUDPV KRPH YLVLWRUV DSSURDFK FOLHQWV ZLWK UHVSHFW XQGHUVWDQGLQJ DQG LQ D QRQLQWUXVLYHZD\WKDWIRFXVHVPRUHRQZKDWIDPLOLHVDUHGRLQJULJKWDQGOHVVRQZKDWWKH\ DUHGRLQJZURQJIHPDOHKRPHYLVLWRUVEULQJPDOHVWDIIDORQJRQYLVLWVDVQHHGHGWRKHOS IDWKHUV IHHO PRUH FRPIRUWDEOH DQG IDPLOLHV JR WKURXJK D SURFHVV RI DVVHVVPHQWV DQG UHIHUUDOVDQGWKRVHZLWKVHULRXVLVVXHVUHFHLYHWUHDWPHQWEHIRUHEHLQJSODFHGLQWRDKRPH EDVHG SURJUDP ,Q WKH SDVW %LHQYHQLGRV IRXQG WKDW SDUWLFLSDQWV ZKR ZHUH GLIILFXOW WR HQJDJH RU ZKR GURSSHG RXW RI WKH SURJUDP RIWHQ KDG LVVXHV VXFK DV VXEVWDQFH DEXVH RU GRPHVWLFYLROHQFHWKDWWKH\ZHUHWU\LQJWRKLGHIURPSURJUDPVWDII 6XSSRUW*URXSV6XSSRUWJURXSVDUHRIWHQXVHGWRSURYLGHDVDIHSODFHIRUGLVFXVVLQJ VHQVLWLYH WRSLFV DQG H[SUHVVLQJ HPRWLRQV LQ D VRFLDOO\ DQG SV\FKRORJLFDOO\ VXSSRUWLYH SHHU HQYLURQPHQW 6XSSRUW JURXSV PD\ DOVR EH HIIHFWLYH LQ FRPELQDWLRQ ZLWK RWKHU VWUDWHJLHV 7KH 0HQ·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³VXFK DV FODVVHV ZRUNVKRSV RU OHFWXUHV³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· WUXVW DFFRPPRGDWLQJ FRXSOHV· VFKHGXOHV DVVHVVLQJ DQG UHVSRQGLQJ WR LQGLYLGXDO DQG IDPLOLDO QHHGV DQG SURYLGLQJ DQ HQYLURQPHQW FRQGXFLYH WR SRVLWLYH SHHU LQIOXHQFHDQGWKHVKDULQJRIH[SHULHQFHV*DLQLQJSDUWLFLSDQWV·WUXVWPD\LQYROYHGHOLYHULQJ VHUYLFHVLQDQHQYLURQPHQWLQZKLFKFOLHQWVFDQPHHWRWKHUFRXSOHVZKRDUHVWUXJJOLQJZLWK VLPLODU LVVXHV 7KLV FRXOG KHOS WR VXVWDLQ SDUWLFLSDWLRQ E\ SXWWLQJ FRXSOHV DW HDVH DV WKH\ FRQIURQW LVVXHV WKDW DUH GHHSO\ SHUVRQDO ,Q DGGLWLRQ JLYHQ WKDW PDQ\ ORZSD\LQJ MREV UHTXLUHHPSOR\HHVWRZRUNQRQWUDGLWLRQDOKRXUVRULQURWDWLQJVKLIWVVXVWDLQLQJSDUWLFLSDWLRQ PD\ PHDQ RIIHULQJ VHUYLFHV DW WLPHV WKDW GRYHWDLO ZLWK FRXSOHV· VFKHGXOHV )RU LQVWDQFH VHUYLFHV FRXOG EH SURYLGHG LQ WKH HYHQLQJ RU RQ ZHHNHQGV RU DW GLIIHUHQW WLPHV DQG RQ GLIIHUHQWGD\VDFFRUGLQJWRSDUWLFLSDQWV·DYDLODELOLW\)LQDOO\SURJUDPGHVLJQHUVPLJKWHQVXUH WKDWDVHUYLFHPRGHUHVSRQGVWRSDUWLFLSDQWV·QHHGVEH\RQGUHODWLRQVKLSLVVXHVE\DGGLQJD FDVHPDQDJHPHQWFRPSRQHQWWRWKHFRUHUHODWLRQVKLSRULHQWHGVHUYLFH 3URJUDP,QWHQVLW\ 6HUYLFHV FDQ EH FKDUDFWHUL]HG DV ORZ PRGHUDWH RU KLJK LQ LQWHQVLW\ GHSHQGLQJ RQ IUHTXHQF\ DQG GXUDWLRQ H[WHQW RI SDUWLFLSDQWV·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·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·VGHJUHHLQVRFLDOZRUN RWKHUVKDYHEDFKHORU·VGHJUHHVLQFRPELQDWLRQZLWKDJUHDWGHDORIH[SHULHQFHLQWKHILHOG ,QGLYLGXDOV ZKR LPSOHPHQW UHODWLRQVKLS DQG PDUULDJH HGXFDWLRQ SURJUDPV DUH W\SLFDOO\ WUDLQHGDQGFHUWLILHGLQWKHXVHRIWKHSURJUDP·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·V UHODWLRQVKLS"'RWKH\DIIHFWSDUHQWLQJEHKDYLRUIDWKHULQYROYHPHQWDQGIDPLO\ IXQFWLRQLQJ" 'R WKH\ DIIHFW WKH ZHOOEHLQJ RI WKH SDUHQWV" 'R WKH\ DIIHFW FKLOGUHQ·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·V UHODWLRQVKLS RU YLD DQRWKHUPHFKDQLVP" 3ROLF\PDNHUV DOVR PD\ ZDQW WR NQRZ ZKHWKHU WKH EHQHILWV IURP WKH LQWHUYHQWLRQV RXWZHLJK WKH FRVWV RI SURYLGLQJ WKH VHUYLFHV RU FKDQJLQJ WKH SROLF\ %HFDXVH WKH LQWHUYHQWLRQV DUH H[SHFWHG WR \LHOG EHQHILWV WR WKH SDUWLFLSDQWV· FKLOGUHQ WKURXJKRXW WKHLU OLYHV DQVZHULQJ WKLV TXHVWLRQ DGHTXDWHO\ PD\ UHTXLUH UHVHDUFKHUV WR IROORZ WKH FKLOGUHQ LQ WKHHYDOXDWLRQLQWRWKHLUDGXOWKRRG 7KLV FKDSWHU GHVFULEHV KRZ WKHVH LQWHUYHQWLRQV FDQ EH HYDOXDWHG ,W EHJLQV E\ GHVFULELQJ WKH LPSRUWDQFH RI DQVZHULQJ WKH ILUVW UHVHDUFK TXHVWLRQ DQG GHYHORSLQJ D WKRURXJKXQGHUVWDQGLQJRIWKHLQWHUYHQWLRQIRUXQGHUVWDQGLQJWKHHYDOXDWLRQ·VILQGLQJVDQG IRU UHSOLFDWLQJ VXFFHVVIXO LQWHUYHQWLRQV 6HFWLRQ $ 7KH FKDSWHU WKHQ H[SODLQV WKH LVVXHV LQYROYHG LQ DGGUHVVLQJ WKH IRXU UHPDLQLQJ UHVHDUFK TXHVWLRQV LQFOXGLQJ WKRVH UHODWHG WR H[SHULPHQWDO HYDOXDWLRQV 6HFWLRQ % SURJUDP VL]H 6HFWLRQ & GDWD QHHGV DQG VRXUFHV 6HFWLRQ ' DQG HVWLPDWLRQ DSSURDFKHV 6HFWLRQ ( 6HFWLRQ ) SURYLGHV VRPH FRQFOXGLQJ FRPPHQWV $ '(6&5,%,1*7+(,17(59(17,21 ,QIRUPDWLRQ RQ ZKLFK LQWHUYHQWLRQV DUH PRVW HIIHFWLYH LV RQO\ XVHIXO WR SROLF\PDNHUV DQG SUDFWLWLRQHUV LI WKHUH LV D FOHDU XQGHUVWDQGLQJ RI WKH PRGHO IRU WKH VXFFHVVIXO LQWHUYHQWLRQVDQGKRZLWLVLPSOHPHQWHG7KLVGHWDLOHGGHVFULSWLRQZLOODOORZSUDFWLWLRQHUVWR UHSOLFDWH VXFFHVVIXO LQWHUYHQWLRQV LQ RWKHU VLWHV ,W ZLOO SURYLGH FRQWH[W IRU LQWHUSUHWLQJ GLIIHUHQFHVLQWKHHIIHFWLYHQHVVRILQWHUYHQWLRQVLPSOHPHQWHGLQGLIIHUHQWVLWHVDQGPD\VKHG OLJKWRQZK\WKHLQWHUYHQWLRQVZRUNZHOO :KLOH WKH DUHDV FRYHUHG LQ WKH GHVFULSWLRQ PD\ YDU\ GHSHQGLQJ RQ WKH W\SH RI LQWHUYHQWLRQ7DEOH9,,OLVWVWKHPDLQWRSLFVWKHGHVFULSWLRQVKRXOGLQFOXGH7KHWRSLFVIDOO LQWRIRXUFDWHJRULHV )RXQGDWLRQ RI WKH ,QWHUYHQWLRQV 7KLV LQFOXGHV JRDOV W\SH RI RUJDQL]DWLRQ SURYLGLQJ WKH VHUYLFHV KRZ WKH LQWHUYHQWLRQV ZHUH GHYHORSHG ZKR WKH\ VHUYH DQG KRZ WKH\ DUH IXQGHG 7KLV ZLOO SURYLGH DQ XQGHUVWDQGLQJ RI ZK\ WKH LQWHUYHQWLRQV ZHUH GHVLJQHG DV WKH\ ZHUH DQG SURYLGHV LPSRUWDQW FRQWH[W WR RWKHUVLWHVFRQVLGHULQJUHSOLFDWLQJWKHLQWHUYHQWLRQ &KDSWHU9,,(YDOXDWLQJ,QWHUYHQWLRQVWR6WUHQJWKHQ)DPLOLHV Table VII.1. Topics for the Description of the Intervention FOUNDATION OF THE INTERVENTION Goals: objectives, outcomes expected to be affected, theory underlying the intervention Organizational Background: type of organization providing services, history of organization, decision to provide services Development: agencies involved in developing the intervention, whether it was based on other programs Target Population: eligibility criteria, age of child at intervention, whether targeting first-time parents, other demographic characteristics of target population Funding: sources of funding for the interventions OPERATIONS AND SERVICE DELIVERY Recruitment and Sustaining Participation: outreach approaches, intake procedures, procedure to encourage participation, approaches to sustaining participation Components of Intervention: relationship skills services, policy changes, types of services provided to improve marriageability, approach to providing those services (integrated/assessment and referral/information sharing) Assessments: formality of assessment, types of assessments used, actions taken as a result of assessments Curriculum: type of curricula used, topics covered, any modifications made Mode of Service Delivery: whether delivered via classes/workshops, support groups, home visits, case management Tracking Success: how success is defined and tracked Staffing: number, background and experience, training, turnover, ease of recruitment Program Message: extent and content of messages to client about marriage, father involvement, and out-of-wedlock births COSTS Staff Costs: wages and salaries, fringe benefits Other Resources Used: overhead, contracted services, donations and volunteers INTERVENTION USE Participation: number of mothers/fathers who use interventions, characteristics of participants Intensity of Use: average length of time participants spend in the program, frequency of interactions with program, amount and types of services used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·VHIIHFWLYHQHVV0DQ\SURJUDPVPD\ORRNHIIHFWLYHEHFDXVHVRPH FOLHQWV KDG VWURQJ RXWFRPHV EXW WKHVH FOLHQWV PD\ KDYH KDG WKHVH RXWFRPHV HYHQ LQ WKH DEVHQFHRIWKHSURJUDPV,QPHGLFDOVFLHQFHLWLVFRQVLGHUHGHWKLFDOWRZLWKKROGDGUXJXQWLO LWVHIILFDF\KDVEHHQHVWDEOLVKHGWKURXJKUDQGRPL]HGWULDOV3URJUDPSDUWLFLSDQWVVWDIIDQG WKHSXEOLFZKRSD\IRUWKHLQWHUYHQWLRQVWKURXJKWD[HVGHVHUYHJRRGHYLGHQFHWKDWWKH\DUH XVLQJ WKHLU WLPH DQG PRQH\ ZHOO³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³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³RQH JURXS UHFHLYHV D ZHHNHQG ZRUNVKRS RQO\ ZKLOH WKH RWKHU JURXS UHFHLYHV WKH ZHHNHQG ZRUNVKRS SOXVDVHULHVRIVXSSRUWJURXSV&RPSDULVRQVRIWKHRXWFRPHVRIWKHWZRSURJUDPJURXSV ZLOOLQGLFDWHWKHDGGLWLRQDOHIIHFWLYHQHVVRIWKHVXSSRUWJURXSVIRUWKRVHZKRKDYHUHFHLYHG WKH ZRUNVKRS 7KH GRZQVLGH RI WKLV DSSURDFK LV WKDW WKH VDPSOH VL]H QHHGHG WR GHWHFW SROLF\PHDQLQJIXO LPSDFWV LQFUHDVHV VXEVWDQWLDOO\ ZLWK WKH QXPEHU RI SURJUDP JURXSV VHH 6HFWLRQ& )LWWLQJ5DQGRP$VVLJQPHQWLQWRWKH3URJUDP·V,QWDNH3URFHGXUHV 5DQGRP DVVLJQPHQW QHHGV WR ILW LQWR WKH SURJUDP·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• (YHU\ HOLJLEOH IDPLO\ LV UDQGRPO\ DVVLJQHG DQG DVVLJQHG RQO\ RQFH 1R IDPLO\ VKRXOG UHFHLYH SURJUDP VHUYLFHV GXULQJ WKH VWXG\ ZLWKRXW KDYLQJ EHHQ UDQGRPO\ DVVLJQHG ,I DIDPLO\ UHDSSOLHV IRU WKH SURJUDP GXULQJ WKH VWXG\ LW ZLOOUHPDLQLQWKHUHVHDUFKJURXSWRZKLFKLWZDVILUVWDVVLJQHG •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³WKH SHUFHQWDJH RI SDUHQWV ZKR PDUU\ ZKHWKHU WKH SDUHQWVPDLQWDLQRULPSURYHWKHLUUHODWLRQVKLSVWDWXVDQGZKHWKHUWKHIDWKHULVSUHVHQWDWDOO LQWKHOLIHRIKLVELRORJLFDOFKLOG³FDQEHFROOHFWHGIURPHLWKHUSDUHQWDQGVRUHVSRQVHUDWHV ZLOOEHKLJK'DWDRQZKHWKHUWKHIDWKHUEHOLHYHVWKHPDUULDJHRISDUHQWVLVEHQHILFLDOIRU FKLOGUHQFDQEHREWDLQHGRQO\IURPWKHIDWKHUDQGKHQFHDORZHUUHVSRQVHUDWHVKRXOGEH H[SHFWHGIRUWKLVRXWFRPHPHDVXUH7KHPLQLPXPGHWHFWDEOHLPSDFWVIRUWKHVFRUHRQWKH 3HDERG\ 3LFWXUH 9RFDEXODU\ 7HVW D PHDVXUH RI D FKLOG·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able VII.2. Minimum Impacts Detectable by Sample Size, for Key Outcomes Sample Size (Program/Control) Percent Married Outcomes Expected in Absence of Strategy 9% 250 (125/125) 8.1 500 (250/250) b Percent of Couples Who Maintain or Improve Relationship a Status Percent of Fathers Who Believe Marriage Is Better for Kids 77% 13.7 12.8 11.8 4.2 5.7 9.7 9.0 8.4 3.0 1,000 (500/500) 4.0 6.9 6.4 5.9 2.1 1,500 (750/750) 3.3 5.6 5.2 4.8 1.7 2,000 (1,000/1,000) 2.9 4.9 4.5 4.2 1.5 71% b Child Assessment: Peabody Picture Vocabulary Test Standard Score c 61% b Percent of Biological Fathers Present in Life of their Children 81.1 c Calculations assume: (1) an equal number of treatment and control members; (2) a 95 percent confidence level with an 80 percent level of power; (3) a one-tail test; (4) a reduction in the variance of 20 percent from the use of regression models; and (5) the variance of the Peabody Picture Vocabulary Score is 225. a A relationship is viewed as “improved” if the couple moves up the ladder of relationships identified in the Fragile Families study (McLanahan et al. 2001) and described in Section E. b Based on findings from the Fragile Families 12-month follow-up survey. c Based on findings from the Early Head Start evaluation when the child was about 36 months old (Love et al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·VIDWKHULVOHVVWKDQSHUFHQW &KDSWHU9,,(YDOXDWLQJ,QWHUYHQWLRQVWR6WUHQJWKHQ)DPLOLHV Table VII.3. Size of Programs Included in This Study Program Estimated Size Other Locations of Program Baby Makes Three, Seattle, WA 79 couples None Becoming Parents Program, Naperville, IL 50 couples annually Curriculum used in other states Bienvenidos Family Services, East Los Angeles, CA Annually: 359 families in home visiting programs 54 fathers in Con Los Padres 426 persons in parenting classes None Boot Camp for New Dads, Denver, CO 1,500 fathers annually 128 programs in 35 states Building Strong and Ready Families, United States Army 435 couples total None Center for Fathers, Families, and Workforce Development (CFWD), Baltimore, MD 180 to 200 men annually None Children First, 77 counties in OK 3,900 to 4,000 new clients annually state-wide David Old’s Nurse Home Visitation programs also implemented in 23 other states Family Star, Early Head Start, Denver, CO 75 families 644 grantees nationwide First Things First, CommunityWide Initiative, Chattanooga, TN 2,300 people annually attending a variety of marriage seminars Other communitywide initiatives include Greater Grand Rapids Community Marriage Project Healthy Start, Heart of America United Way, Kansas City, KS 400 clients annually 94 programs nationwide Healthy Start, Allegheny County, PA 1,300 clients annually 94 programs nationwide Responsible Choices TANF Agency, MD 112 families annually None Average Early Head Start program serves 85 families, but size varies from 30 to 200, with most programs serving 60 to 100 families &KDSWHU9,,(YDOXDWLQJ,QWHUYHQWLRQVWR6WUHQJWKHQ)DPLOLHV 7RPHHWDVDPSOHVL]HRIGXULQJWKHVDPSOHLQWDNHSHULRGWKHSURJUDPPXVW EHDEOHWRVHUYHIDPLOLHVDQGLGHQWLI\IDPLOLHVHOLJLEOHIRUWKHSURJUDP7DEOH 9,, SUHVHQWV WKH DSSUR[LPDWH VL]H RI WKH SURJUDPV LQ WKLV VWXG\·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³VXFK DV 35(3 5HODWLRQVKLS (QKDQFHPHQW35(3$5(DQG(15,&+³DUHFXUUHQWO\ODUJHHQRXJKWRVHUYHIDPLOLHV HDFK DQQXDOO\ EXW WKH\ GR QRW IRFXV RQ ORZLQFRPH SRSXODWLRQV RU XQPDUULHG FRXSOHV DURXQGWKHWLPHRIWKHELUWKRIWKHLUEDE\ 0HHWLQJ WKH VDPSOH VL]H UHTXLUHPHQWV PD\ EH OHVV RI D FKDOOHQJH ZKHQ DGGLQJ D UHODWLRQVKLSVNLOOVFRPSRQHQWWRRUVWUHQJWKHQLQJWKLVFRPSRQHQWLQDSURJUDPWKDWSURYLGHV VHUYLFHVWRORZLQFRPHIDPLOLHV³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able VII.4. Outcome Measures and Their Potential Sources Outcome Source Marriage and Other Aspects of Mother-Father Relationship - Marital status Survey, administrative data - Type of relationship, living arrangement Survey - Stability, Quality Survey, observation - Attitudes and expectations about marriage Survey Father Involvement and Cooperation in Childrearing - Frequency of visits, frequency of father’s involvement in different activities Survey - Contributions in cash or in-kind Trust between parents Agreement about how to parent, father’s influence in child’s upbringing Survey - Attitudes and expectations about father’s role Survey Survey Survey Parent Well-Being - Health status Survey - Mental health and emotional well-being Survey - Substance abuse Survey - Criminal behavior Survey - Employment, earnings Survey, administrative data - Receipt of TANF, food stamps, and other public assistance Survey, administrative data - Amount of child support ordered and received Survey, administrative data Child Well-Being and Development - Aggressive, hyperactive, anxious behavior Survey, child assessment - Emotionality, adaptability, and sociability Survey, child assessment - Cognitive and language development Survey, child assessment - Reaching development milestones Survey - Involvement with child welfare system Survey, administrative data - Health status Survey Family Structure - Stability of relationship with other romantic partners Survey - Subsequent children of parents Survey - Out-of-wedlock births Survey - Child’s living arrangements Survey Parenting, Home Environment, and Parent-Child Relationship - Parenting activities Survey - Discipline strategies Survey - Support of language and learning in home Survey, observation - Physical environment of home Survey, observation - Warmth and harshness of parent-child interaction Observation - Child-care arrangements Survey - Parent’s feelings about parenting and child Survey Family Functioning - Family organization, control, conflict Survey - Domestic violence Survey - Whether child observes violence Survey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·PDUULDJHLV KHDOWK\DQGVWDEOH+RZHYHUWKHZHOOEHLQJRIWKHSDUHQWVDQGFKLOGUHQPD\EHLPSURYHGLI ELRORJLFDOSDUHQWVEHFRPHPRUHFRPPLWWHGLQWKHLUUHODWLRQVKLSDQGKDYHDPRUHIDPLO\OLNH UHODWLRQVKLS HYHQ LI WKH\ GR QRW PDUU\ +HQFH WKH W\SH DQG VWDELOLW\ RI WKH FRXSOH UHODWLRQVKLSDUHRXWFRPHVDVZHOODVPDUULDJH 7RPHDVXUHWKHW\SHRI UHODWLRQVKLSRISDUHQWVWKH)UDJLOH)DPLOLHVVWXG\FDWHJRUL]HG UHODWLRQVKLSV LQWR IRXU W\SHV 0F/DQDKDQ HW DO PDUULHG FRKDELWLQJ ´YLVLWLQJµ URPDQWLFDOO\LQYROYHGEXWOLYLQJDSDUWDQGQRWLQDURPDQWLFUHODWLRQVKLS:KHWKHUFRXSOHV PDLQWDLQ WKHLU UHODWLRQVKLS VWDWXV RU PRYH XS WKLV ´ODGGHUµ RI UHODWLRQVKLSV HJ YLVLWRUV UHPDLQDVYLVLWRUVRUEHJLQWRFRKDELWFRXOGEHXVHGDVDPHDVXUHRIUHODWLRQVKLSVWDELOLW\ 0DQ\DUJXHLWLVWKHTXDOLW\UDWKHUWKDQWKHW\SHRIUHODWLRQVKLSEHWZHHQSDUHQWVWKDWLV LPSRUWDQW IRU FKLOG ZHOOEHLQJ 5HODWLRQVKLS TXDOLW\ DOVR LV D JRRG SUHGLFWRU RI WKH IXWXUH VWDWXV RI WKH UHODWLRQVKLS 7KH /RFNH:DOODFH 0DULWDO $GMXVWPHQW 7HVW D ZLGHO\ XVHG PHDVXUH RI PDULWDO VDWLVIDFWLRQ KDV JRRG UHOLDELOLW\ DQG YDOLGLW\ IRU LGHQWLI\LQJ GLVWUHVVHG FRXSOHV/RFNHDQG:DOODFH*RWWPDQHWDO+RZHYHUWKLVVFDOHZDVGHVLJQHG IRU PDUULHG FRXSOHV DQG LV FULWLFL]HG IRU JLYLQJ WRR PXFK ZHLJKW WR RQH TXHVWLRQ DERXW UHVSRQGHQWV·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·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·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able VII.5. Baseline Data Needs Locating Information for Mother and Father Family Structure Name, address, telephone numbers, social security number, contact information for relatives and friends of both mother and father Number of persons in family, ages and relationship of persons in families, support from extended family Mother-Father Relationship Employment and Income Whether married, relationship status, whether father visited during hospital stay, living arrangements, length of marriage and relationship, attitudes and expectations about marriage, history of domestic violence, paternity establishment Whether mother/father is employed, earnings, whether father pays child support, household income, receipt of government assistance Prior Marriages and Childbearing Demographic Characteristics Marital history, number of children with other parent, number of children with others Age of mother, father, and child; race/ethnicity of father and child; country of birth of mother and father; religion of mother and father Child’s Characteristics Education Weight at birth, gender, health/disabilities Highest grade completed by mother and father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³WKHRXWFRPHV RI SURJUDP JURXS PHPEHUV ZLWK D SDUWLFXODU FKDUDFWHULVWLF FDQ EH FRPSDUHG ZLWK WKH RXWFRPHV RI FRQWURO JURXS PHPEHUV ZLWK WKH VDPH FKDUDFWHULVWLF (VWLPDWHV FDQ EH REWDLQHG IRU DQ\ VXEJURXS DV ORQJ DV WKH\ DUH GHILQHG E\ D EDVHOLQH FKDUDFWHULVWLF &KDUDFWHULVWLFV WKDW FRXOG EH XVHG WR GHILQH VXEJURXSV RI LQWHUHVW LQ DQ HYDOXDWLRQ RI LQWHUYHQWLRQVWRVWUHQJWKHQIDPLOLHVLQFOXGH &KDSWHU9,,(YDOXDWLQJ,QWHUYHQWLRQVWR6WUHQJWKHQ)DPLOLHV • $JHRIWKHPRWKHUDQGIDWKHU • 5DFHHWKQLFLW\RIWKHPRWKHUDQGIDWKHU • $JHRIEDE\LQFOXGLQJJHVWDWLRQDODJHRIEDELHVQRWERUQ • 6WDWXVDQGOHQJWKRISDUHQW·VUHODWLRQVKLSDWELUWKRIFKLOG • :KHWKHUWKHSDUHQWVDUHFRKDELWLQJ • :KHWKHUWKHSDUHQWVKDYHSUHYLRXVFKLOGUHQWRJHWKHU • :KHWKHUWKHPRWKHURUIDWKHUKDVFKLOGUHQZLWKSUHYLRXVSDUWQHUV • :KHWKHU WKH PRWKHU RU IDWKHU KDV EDUULHUV WR D KHDOWK\ PDUULDJH VXFK DV VXEVWDQFHDEXVHPHQWDOKHDOWKSUREOHPVRUSRRUODERUPDUNHWSURVSHFWV • 3DUHQW·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´PDWFKHGµ FRQWURO JURXS PHPEHUV 7KLV FRQWUROV IRU VRPH REVHUYDEOH GLIIHUHQFHVEHWZHHQWKRVHZKRSDUWLFLSDWHDQGWKRVHZKRGRQRW+RZHYHUWKHHVWLPDWHVRI WKHSURJUDP·VLPSDFWVVWLOOPD\EHELDVHGEHFDXVHRIXQREVHUYDEOHGLIIHUHQFHVEHWZHHQWKRVH ZKRSDUWLFLSDWHDQGWKRVHZKRGRQRWVXFKDVPRWLYDWLRQDWWLWXGHVDQGSHUVRQDOLW\ 'LIIHUHQFHV LQ WKH PHDQ RXWFRPHV RI DOO PHPEHUV RI WKH SURJUDP JURXS LQFOXGLQJ WKRVHZKRGLGQRWUHFHLYHVHUYLFHVDQGWKHPHDQRXWFRPHVRIDOOPHPEHUVRIWKHFRQWURO &KDSWHU9,,(YDOXDWLQJ,QWHUYHQWLRQVWR6WUHQJWKHQ)DPLOLHV JURXSZLOOSURGXFHXQELDVHGHVWLPDWHVRIDQ´RIIHUµ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·VOLYHVIRUWKHZHOOEHLQJRIERWKIDWKHUDQG FKLOG &KDSWHU9,,(YDOXDWLQJ,QWHUYHQWLRQVWR6WUHQJWKHQ)DPLOLHV $Q LPSRUWDQW TXHVWLRQ LV ZKHWKHU DQ\ LPSDFWV RQ ORQJWHUP RXWFRPHV DUH DFKLHYHG EHFDXVHRIWKHLPSDFWVRQLQWHUPHGLDWHRXWFRPHV)RUH[DPSOHDQLQWHUHVWLQJSROLF\TXHVWLRQ LVZKHWKHULPSURYHPHQWVLQFKLOGZHOOEHLQJUHVXOWIURPDVWURQJHUUHODWLRQVKLSEHWZHHQWKH SDUHQWVRUDUHDWWULEXWDEOHWRRWKHUIDFWRUVVXFKDVKLJKHUIDPLO\LQFRPH(VWLPDWHVRIWKH UHODWLYHUROHRILQWHUPHGLDWHRXWFRPHVFDQEHREWDLQHGXVLQJVWDWLVWLFDOWHFKQLTXHVUHIHUUHGWR DV´PHGLDWHGDQDO\VLVµ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ccordino, M.P. and B.G. Guerney, Jr. “The empirical validation of Relationship Enhancement Couple/Family Therapies.” Handbook of Research and Practice in Humanistic Psychotherapies, edited by D.J. Cain & J. Seeman. Washington, DC: American Psychological Association, 2001. Amato, Paul R. “Children of divorce in the 1990s: An update of the Amato and Keith (1991) Meta-Analysis.” Journal of Family Psychology, vol. 13, no. 3, pp. 355-370, 2001. Amato, Paul and Alan Booth. A Generation at Risk: Growing Up in an Era of FamilyUpheaval, Cambridge, MA: Harvard University Press, 1997. Amato, Paul and Fernando Rivera. “Paternal Involvement and Children’s Behavior Problems.” Journal of Marriage and the Family, vol. 61, pp. 375-384, May 1999. Avery, A.W., Ridley, C.A., Leslie, L.A., & Milholland, T. “Relationship enhancement with premarital dyads: A six-month follow-up.” American Journal of Family Therapy, vol. 3, no. 8, 1980. Bartfeld, Judi, and Irwin Garfinkel. “The Impact of Percentage-Expressed Child-Support Orders on Payments.” Journal of Human Resources, vol. 31, no. 4, 1996. Baumrind, D. “Harmonious parents and their preschool children.” Psychology, pp. 4, 99-102, 1971. Developmental Baumrind, D. “Rearing competent children.” In Child Development Today and Tomorrow, edited by W. Damon. San Francisco, CA: Jossey-Bass, pp. 349-378, 1989. Beeson, Jennifer and Wendell Primus. “Safety Net Programs, Marriage and Cohabitation.” In Just living together: Implications of cohabitation for families, children, and social policy, edited by Alan Booth and Ann Crouter. Mahwah, NJ: Lawrence Erlbaum Associates, 2002. Belsky J., and E. Pensky. "Marital Change Across the Transition to Parenthood" in Transitions to Parenthood, edited by Palkovitz & Sussman, The Haworth Press, 1988. Blackman, Lorraine C. “The Effect of a Marriage Enrichment Program on Marital Satisfaction and Gender Role Attitudes among African American Couples.” #9234207. Ann Arbor, MI: University Microfilms International, 1992. Bloom, H. “Accounting for No-Shows in Experimental Evaluation Designs.” Evaluation Review, vol.8, 1984. Booth, A., and J. Edwards. “Age at marriage and marital instability.” Journal of Marriage and the Family, pp. 47, 67-75, 1985. Bornstein, M.H. Handbook of Parenting, vol. I-IV. Washington, DC: National Institute of Child Health and Human Development, 1995. Bradbury, T.N. “Understanding and Alleviating Depression in Couples and Families: Can We Get There From Here?” In Marital and Family Processes in Depression: A Scientific Foundation for Clinical Practice, edited by Steven Beach. Washington, DC: American Psychological Association, 1995. Bradbury, T.N. “Understanding and Altering the Longitudinal Course of Marriage: Synopsis of Basic and Applied Research.” In Strategies to Strengthen Marriage: What Do We Know? What Do We Need to Know? Washington, DC: The Family Impact Seminar, 1998. Bradley, R.H., B.M. Caldwell, S.L. Rock, C.T. Ramey, K.E. Barnard, et al. “Home environment and cognitive development in the first three years of life: A collaborative study involving six sites and three ethnic groups in North America. Developmental Psychology, pp. 25, 217-235, 1989. Bramlett, M.D., and W.D. Mosher. “Cohabitation, Marriage, Divorce and Remarriage in the United States: Data from the National Survey of Family Growth. Vital and Health Statistics, series 23, no.22. Hyattsville, MD: Department of Health and Human Services, National Center for Health Statistics, 2002. Bronfenbrenner, U. “Ecology of the family as a context for human development: Research perspectives.” Developmental Psychology, pp. 22, 723-742, 1986. Bulcroft, R.A., and K.A. Bulcroft. “Race differences in attitudinal and motivational factors in the decision to marry.” Journal of Marriage and the Family, vol. 55, no. 2, pp. 388-355, 1993. Bumpass, L. and H.H. Lu. “Trends in Cohabitation and Implications for Children’s Family Contexts.” Population Studies, vol. 54, pp. 29-41, 2000. #010703.08 Bumpass, L., A. Cherlin, and J. Sweet. “The role of cohabitation in declining rates of marriage.” Journal of Marriage and the Family, vol. 53, pp. 913-27, 1991. Butler, J., and L.M. Burton. “Rethinking teenage childbearing: Is sexual abuse a missing link?” Family Relations, vol. 39, no. 1, pp. 73-80, 1990. California Institute for Mental Health. “The CalWORKS Project: A Six County Case Study.” Sacramento, CA: California Institute for Mental Health, 2000. Campbell, J.C. and J. Humphreys. Nursing Care Of Survivors Of Family Violence. St. Louis, MO: Mosby, 1993. Carlson, Marcia, Irwin Garfinkel, Sara McLanahan, Ronald Mincy, and Wendall Primus. “The Effects of Welfare and Child Support Policies on Union Formation.” Center for Research on Child Wellbeing Working paper #02-10-FF. May 2002. Carlson, Marcia A. “Fragile Families and Marriage.” Paper presented at the annual Smart Marriages Conference. Washington, DC, July 2002. Case, Anne. “The Effects of Stronger Child Support Enforcement on Nonmarital Fertility.” In Fathers under Fire: The Revolution in Child Support Enforcement, edited by I. Garfinkel, S. McLanahan, D. Meyer, and J. Seltzer. New York, NY: Russell Sage Foundation, 1998. Center for Law and Social Policy. “State Policy Regarding Pass-Through and Disregard Of Current Month’s Child Support Collected for Families Receiving TANF-Funded Cash Assistance, As of February 2002.” Washington, DC, February 2002. Center on Addiction and Substance Abuse and American Public Human Services Association. Building Bridges: States Respond to Substance Abuse and Welfare Reform. New York, NY: Columbia University, Center on Addiction and Substance Abuse, 1999. Chandler, D. and J. Meisel. “The CalWORKS Project: The Prevalence of Mental Health, Alcohol and Other Drug, and Domestic Violence Issues among CalWORKS Participants in Kern and Stanislaus Counties. Prevalence Report.” Sacramento, CA: California Institute for Mental Health, September 2000. Chase-Lansdale, P.L., J. Brooks-Gunn, and E.S. Zamsky. “Young African-American multigenerational families in poverty: Quality of mothering and grandmothering.” Child Development, vol. 65, pp. 373-393, 1994. Cohn, D.A., P.A. Cowan, C.O. Cowan, and J. Pearson. “Mothers’ and fathers’ working models of childhood attachment relationships, parenting styles, and child behavior.” Development and Psychopathology, vol. 4, pp. 417-431, 1992. #010703.08 Cowan, C.P. and P.A. Cowan. When Partners Become Parents. New York, NY: Basic, 1992. Cowan, C.P., and P.A. Cowan. “Interventions to Ease the Transition to Parenthood: Why They Are Needed and What They Can Do.” Family Relations, vol. 44, pp. 111, October 1995. Cowan, P.A., and C.P. Cowan. “Strengthening Couples to Improve Children’s WellBeing: What We Know Now.” Poverty Research News, vol. 6, no. 3, pp. 18-20, May–June 2002. Cowan, P.A., C.P. Cowan, M. Schulz, and G. Heming. “Prebirth to preschool family factors predicting children’s adaptation to kindergarten.” In Exploring Family Relationships With Other Social Contexts: Advances In Family Research, edited by R. Parke and S. Kellam, vol. 4, pp. 75-114. Hillsdale, NJ: Erlbaum, 1994. Cowan, P.A. & C.P. Cowan. “What an intervention design reveals about how parents affect children’s academic and social competence and behavior problems.” In Parenting and the Child’s World: Influences on Intellectual, Academic, and SocialEmotional Development, edited by J.G. Borkowski, S. Ramey, and M. BristolPower. Mahwah, NJ: Erlbaum, in press. Cowan, C.P., P.A. Cowan, G. Heming, E. Garrett, W.S. Coysh, H. Curtis-Boles, A.J. Boles III. “Transitions to Parenthood: His, Hers, and Theirs.” Journal of Family Issues, vol. 6, no. 4, pp. 451-481, 1985. Cox, M.J., et al. “Prediction of Infant-Father and Infant-Mother Attachment.” Developmental Psychology, vol. 28, 1992. Cummings, E. M. “Children exposed to marital conflict and violence: Conceptual and theoretical directions.” In Children and Family Violence, edited by G. Holden, B. Geffner, and E. Jouriles. Washington, DC: American Psychological Association, 1998. Cummings, E.M., and P.T. Davies. Children and Marital Conflict: The Impact of Family Dispute and Resolution. New York, NY: Guilford Press, 1994. Cummings, E.M., P.T. Davies, and S.B. Campbell. Developmental Psychopathology and Family Process: Theory, Research, and Clinical Implications. New York, NY: Guilford Press, 2000. Curcio, W. “The Passail County Study of AFDC Recipients in a Welfare-to-Work Program: A Preliminary Analysis.” Patterson, NJ: Passail County Board of Social Services, 1996. #010703.08 Danziger, Sandra, Mary Corcoran, Sheldon Danziger, Colleen Heflin, Ariel Kalil, Judith Levine, Daniel Rosen, Kristin Seefeldt, Kristine Siefert, and Richard Tolman. “Barriers to the employment of welfare recipients.” In Prosperity for All? The Economic Boom and African Americans, edited by R. Cherry and W.M. Rodgers, III. New York, NY: Russell Sage Foundation, 2000. Davila, J., T.N. Bradbury, C.L. Cohan, and S. Tochluk. “Marital functioning and depressive symptoms: Evidence for a stress-generation model.” Journal of Personality and Social Psychology, vol. 73, pp. 849-861, 1997. Devaney, Barbara, Embry Howell, Marie McCormick, and Lorenzo Moreno. “Reducing Infant Mortality: Lessons Learned from Healthy Start.” Princeton, NJ: Mathematica Policy Research, Inc., July 2000. Devaney, Barbara, Amy Johnson, Rebecca Maynard, and Chris Trenholm. “The Evaluation of Abstinence Education Programs Funded Under Title V Section 510: Interim Report.” Princeton, NJ: Mathematica Policy Research, Inc., April 2002. Dickert-Conlin, Stacy. “Taxes and Transfers: A New Look at the Marriage Penalty.” Journal of Public Economics, vol. 73, August 1999. Duncan, Greg, and Jeanne Brooks-Gunn. “The Effects of Poverty on Children.” The Future of Children, vol. 7, no. 2, Summer-Fall 1997. Edin, Kathryn. “Hearing on Welfare and Marriage Issues.” Testimony before the Subcommittee on Human Resources, U.S. House of Representatives, Committee on Ways and Means, Washington, DC, May 22, 2001. Edin, Kathryn. “Few Good Men: Why Low-Income Single Mothers Don’t Get Married.” The American Prospect, vol. 11, pp. 26-31, 2000. Lyon, Eleanor. Welfare, Poverty and Abused Women: New Research and its Implications. Philadelphia: National Resource Center on Domestic Violence, 2000. Ellwood, David, and Isabel V. Sawhill. “Fixing the Marriage Penalty in the EITC.” Washington, DC: The Brookings Institute, January 2000. Ellwood, David T. “The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements.” National Tax Journal, vol. 53, no. 4, 2000. Emery, Robert E. Marriage, Divorce, and Children’s Adjustment. Thousand Oaks, CA: Sage Publications, 1999. Fraker, Thomas M., Christine M. Ross, Rita A. Stapulonis, et al. “The Evaluation of Welfare Reform in Iowa: Final Impact Report.” Washington, DC: Mathematica Policy Research, Inc., June 11, 2002. #010703.08 Fremstad, Shawn, and Wendell Primus. "Strengthening Families: Idea for TANF Reauthorization." Washington, DC: Center on Budget and Policy Priorities, January 22, 2002. Furstenberg, F. “The Future of Marriage.” American Demographics, 1996. Gardiner, Karen N., Michael E. Fishman, Plamen Nikolov, and Stephanie Laud. “State Policies to Promote Marriage: Preliminary Report.” Submitted to the Department of Health and Human Services by The Lewin Group. Washington, DC: March 2002. Garfinkel, Irwin, Teresa Heintze, and Chien-Chung Huang. Child Support Enforcement: Incentives and Well-Being. Chicago, IL: Joint Center for Poverty Research, 2002. Giblin, P., D.H. Sprenkle, and R. Sheehan. “Enrichment outcome research: A metaanalysis of premarital, marital, and family interventions.” Journal of Marital and Family Therapy, vol. 11, no. 3, 1985. Gottman, J. “Manual for group leaders: Baby Makes Three Support Groups.” Seattle, WA: University of Washington, Fall 2001. Gottman, J., and N. Silver. The Seven Principles for Making Marriage Work. New York, NY: Three Rivers Press, 1999. Gottman, John. The Marriage Clinic. New York, NY: Norton Press, 1999. Gottman, John, Howard Markman, and C.I. Notarius. “The Topography of Marital Conflict: A Sequential Analysis of Verbal and Nonverbal Behavior.” Journal of Marriage and the Family, vol. 39, 1977. Gottman, J.M., and Katz, L.F. “Effects of marital discord on young children's peer interruption and health.” Developmental Psychology, vol. 25, 1989. Graefe, Deborah, and Daniel Lichter. “Life Course Transitions of American Children: Parental Cohabitation, Marriage, and Single Motherhood.” Demography, vol. 36, no. 2, pp. 205-17, May 1999. Grych, J.H. and F.D. Fincham. “Marital conflict and children’s adjustment: A cognitivecontextual framework.” Psychological Bulletin, vol. 108, pp. 267-290, 1990. Guerney, B.G., Jr. “Marital and family Relationship Enhancement therapy.” The Relationship, vol. 7, 1981. Guerney, B.G., Jr., J. Coufal, and E. Vogelsong. “Relationship Enhancement versus a traditional approach to therapeutic/preventative/enrichment parent adolescent programs.” Journal of Consulting and Clinical Psychology, vol. 49, pp. 927-939, 1981. #010703.08 Hahlweg, Kurt, Howard Markman, Franz Thurmaier, Jochen Engl, and Volker Eckert. “Prevention of Marital Distress: Results of a German Prospective Longitudinal Study.” Journal of Family Psychology, vol. 12, no. 4, 1998. Halford, K.W., M.R. Sanders, and B.C. Behrens. “Can skills training prevent relationship problems in at-risk couples? Four-year effects of a behavioral relationship education program.” Journal of Family Psychology, vol. 15, pp. 750768, 2001. Hamilton, Gayle. “Moving People from Welfare to Work: Lessons from the National Evaluation of Welfare-to-Work Strategies.” New York, NY: Manpower Demonstration Research Corporation, July 2002. Hepner, Mickey, and W. Robert Reed. “An Analysis of Work and Family Structure Incentives For Transfer Recipients: A View From the States.” Unpublished paper. Norman, OK: University of Oklahoma, 2002. Horn, Wade, and Isabel Sawhill. “Making Room for Daddy: Fathers, Marriage and Welfare Reform.” Washington, DC: Administration for Children and Families Research Conference, Fall 2001. Jacobson, J. Unpublished tabulations using FY 1999 ACF TANF Emergency Datafile. Washington, DC: Mathematica Policy Research, Inc., 2000. Jessee, R., and B.G. Guerney, Jr. “A comparison of Gestalt and Relationship Enhancement treatments with married couples.” The American Journal of Family Therapy, vol. 9, 1981. Johnson, C.A., S.M. Stanley, N.D. Glenn, P.R. Amato, S.L. Nock, H.J. Markman, and M.R. Dion. Marriage in Oklahoma: 2001 Baseline Statewide Survey on Marriage and Divorce. Oklahoma City, OK: Oklahoma Department of Human Services, 2002. Jordan, P.L., S.M. Stanley, and H.J. Markman. Becoming Parents: How to Strengthen Your Marriage as Your Family Grows. San Francisco, CA: Jossey-Bass, 1999. Jordan. P.L. “PREP pilot: Transition to parenthood.” Paper presented at the Association for the Advancement of Behavioral Therapy 29th Annual Convention, Washington, DC, November 1995. Karney, B.R. and T.N. Bradbury. “The longitudinal course of marital quality and stability: A review of theory, method, and research.” Psychological Bulletin, vol. 118, no. 1, 1995. #010703.08 Kirby, G., and J. Anderson. “Addressing Substance Abuse Problems Among TANF Recipients.” Report prepared for the Office of Family Assistance, Administration for Children and Families, U.S. Department of Health and Human Services. Washington, DC: Mathematica Policy Research, Inc., 2000. Kitson, G.C., and L.A. Morgan. “The Multiple Consequences of Divorce: A Decade Review.” Journal of Marriage and the Family, vol. 52, no. 4, 1990. Knox, V., and C. Redcross. “Parenting and Providing: The Impact of Parents’ Fair Share on Paternal Involvement.” New York, NY: Manpower Research Demonstration Corporation, 2000. Knox, Virginia, Cynthia Miller, and Lisa A. Gennetian, “Reforming Welfare and Rewarding Work: A Summary of the Final Report on the Minnesota Family Investment Program.” New York, NY: Manpower Demonstration Research Corporation, September 2000. Kurdek, L.A., M.A. Fine, and R.J. Sinclair. “School Adjustment of Sixth Graders: Parenting Transitions, Family Climate, and Peer Norm Effects.” Child Development, vol. 66, 1995. Larson, J.H., and T.B. Holman. “Premarital predictors of marital quality and stability.” Family Relations, vol. 43, no. 2, 1994. Lichter, D.T., and D.R. Graefe. “Finding a mate? The marital and cohabitation histories of unwed mothers.” In Out of Wedlock: Causes and Consequences of Nonmarital Fertility, edited by L.L. Wu and B. Wolfe. New York, NY: Russell Sage Foundation, pp. 317-44, 2001. Locke, H.J., and K.M. Wallace. “Short Marital Adjustment and Prediction Tests: Their Reliability and Validity.” Marriage and Family Living, vol. 21, 1959. Love, J.M, E.E. Kisker, C.M. Ross, J. Brooks-Gunn, P. Schochet, K. Boller, J. Constantine, C. Vogel, A. Fuligni, and C. Brady-Smith. “Making a Difference in the Lives of Infants and Toddlers and their Families: The Impacts of Early Head Start.” Washington, DC: Administration for Children and Families, June 2002. Love, John M. “Indicators of Problem Behavior and Problems in Early Childhood.” In Indicators of Children’s Well-Being, edited by Robert M. Hauser, Brett V. Brown, and William R. Prosser. New York, NY: Russell Sage Foundation, 1997. Maccoby, E.M. and J.M. Martin. “Socialization in the context of the family: Parentchild interaction.” In Handbook of Child Psychology, edited by P. H. Mussen, vol. IV, pp. 1-101. New York, NY: Wiley, 1983. #010703.08 Manning, W.D., and N.S. Landale. “Racial and Ethnic Differences in the Role of Cohabitation in Premarital Childbearing.” Journal of Marriage and the Family, vol. 58, pp. 63-77, February 1996. Mare, Robert D., and Christopher Winship. “Socioeconomic change and the decline of marriage for blacks and whites.” In The Urban Underclass, edited by Christopher Jencks and Paul Peterson. Washington, DC: The Brookings Institution, 1991. Markman, H.J., Stanley, S.M., and Blumberg, S.L. Fighting for Your Marriage. San Francisco, CA: Jossey-Bass Publishers, 1994. Markman, H.J., F.J. Floyd, S.M. Stanley, and R.D. Storassli. “Prevention of marital distress: A longitudinal investigation.” Journal of Consulting and Clinical Psychology, vol. 56, pp. 210-217, 1988. Markman, H.J., M.J. Renick, F.J. Floyd, S.M. Stanley, and M. Clements. “Preventing marital distress through communication and conflict management training: A 4- and 5-year follow-up.” Journal of Consulting and Clinical Psychology, vol. 61, pp. 7077, 1993. Markman, Howard, Frank Floyd, Scott Stanley, and Ragnar Storaasli. “Prevention of Marital Distress: A Longitudinal Investigation.” Journal of Consulting and Clinical Psychology, vol. 5, no. 2, 1988. Maynard, Rebecca, Elisabeth Boehnen, Tom Corbett, and Gary Sandefur, with Jane Mosley. “Changing Family Formation Behavior Through Welfare Reform.” In Welfare, the Family, and Reproductive Behavior, edited by Robert A. Moffitt. Washington, DC: National Academy Press, 1998. McCann, Thurma, Bernice Young, Donna Hutten, Angela Hayes, and Beverly Wright. The Healthy Start Initiative: A Community-Driven Approach to Infant Mortality Reduction-Vol. IV, Community Outreach. Arlington, VA: National Center for Education in Maternal and Child Health, 1996. McLanahan, Sara, I. Garfinkel, N. Reichman, and J. Teitler. “Unwed Parents or Fragile Families? Implications for Welfare and Child Support Policy.” Princeton, NJ: Center for Research on Child Wellbeing Working Paper #00-04, 2000. McLanahan, Sara, and Gary Sandefur. Growing Up with a Single Parent: What Hurts, What Helps. Cambridge, MA: Harvard University Press, 1994. McLanahan, Sara, and Irwin Garfinkel. “Strengthening Fragile Families” (DRAFT). Center for Advanced Study in the Behavioral Sciences, 2002. #010703.08 McLanahan, Sara, and Marcia Carlson. “Welfare reform, fertility, and father involvement.” In Children and Welfare Reform, The Future of Children, edited by M. Shields, vol. 12, no. 1. Los Altos, CA: The David and Lucile Packard Foundation, 2002. McLanahan, Sara, I. Garfinkel, N. Reichman, J. Teitler, M. Carlson, and C. Audigier. “The National Report: The Fragile Families and Child Well-being Study Baseline Report.” Princeton, NJ: The Center for Research on Child Wellbeing, August 2001. McLanahan, Sara. “Parent absence or poverty: Which matters more?” In Consequences of Growing Up Poor, edited by Duncan and Brooks-Gunn. New York, NY: Russell Sage Foundation, 1997. McLoyd, V.C. “The impact of economic hardship on black families and children: Psychological distress, parenting, and socioemotional development.” Child Development, vol. 61, pp. 311-346, 1990. Meyer, Daniel R., and Maria Cancian. "W-2 Child Support Demonstration Evaluation, Report on Nonexperimental Analyses." Madison, WI: University of Wisconsin, Institute for Research on Poverty, March 2002. Meyer, Daniel R., and Maria Cancian. “W-2 Child Support Demonstration Evaluation, Phase 1: Final Report.” Madison, WI: University of Wisconsin, Institute for Research on Poverty, April 2001. Available at www.ssc.wisc.edu/irp/csde/phase1tocs.htm. Miller, Cynthia, and James A. Riccio. “Making Work Pay for Public Housing Residents: Financial-Incentive Designs at Six Jobs-Plus Demonstration Sites.” New York, NY: Manpower Demonstration Research Corporation, January 2002. Miller, Cynthia, Virginia Knox, Lisa Gennetian, Martey Dodoo, Jo Anna Hunter, and Cindy Redcross. “Reforming Welfare and Rewarding Work: Final Report on the Minnesota Family Investment Program. Volume I: Effects on Adults.” New York, NY: Manpower Demonstration Research Corporation, 2000. Mincy, Ronald B., and Alan Dupree. “Welfare Reform, Child Support, and Family Formation.” Children and Youth Services Review, vol. 23, no. 6/7, pp. 577-601, 2001. Mincy, R. “Who should marry whom? Multiple partner fertility among new parents.” Princeton, NJ: The Center for Research on Child Wellbeing, Working Paper #02-03FF, November 2001. Mincy, Ronald B., and Chien-Chung Huang. ““Just Get Me to the Church…”: Assessing Policies to Promote Marriage Among Fragile Families.” Princeton, NJ: The Center for Research on Child Wellbeing, Working Paper #02-02-FF, 2001. #010703.08 Moffitt, Robert A. “The Effect of Welfare on Marriage and Fertility.” In Welfare, the Family, and Reproductive Behavior, edited by Robert A. Moffitt. Washington, DC: National Academy Press, 1998. Moore, K.A. M.J. Zaslow, M.J. Coiro, S. Miller, and E.B. Magenheim. “How well are they faring? AFDC families with preschool-aged children in Atlanta at the outset of the JOBS evaluation.” Washington, DC: U.S. Department of Health and Human Services, 1995. Murray, J.E. “Marital protection and marital selection: Evidence from a historicalprospective sample of American men.” Demography, vol. 37, no. 4, pp. 511-521, 2000. Najman, B.C., M. Behrens, W. Anderson, M. Bor, O. Callaghan, and G.M. Williams. “Impact of Family Type and Family Quality on Child Behavior Problems: A Longitudinal Study.” Journal of the American Academy of Child and Adolescent Psychiatry, vol. 36, 1997. Nixon, Lucia. “The effect of child support enforcement on marital dissolution.” Journal of Human Resources, vol. 32, no. 10, pp. 159-181, 1997. Olds, D.L., C. Henderson, H. Kitzman, J. Eckenrode, R. Cole, and R. Tatelbaum. “Prenatal and infancy home visitation by nurses: Recent findings.” The Future of Children, vol. 9, no. 1. Los Altos, CA: The David and Lucile Packard Foundation, 1999. Olds, David, Peggy Hill, JoAnn Robinson, Nancy Song, and Christina Little. “Update on Home Visiting for Pregnant Women and Parents of Young Children.” Current Problems in Pediatrics, April 2000. Olsen, K., and L. Pavetti. “Personal and Family Challenges to the Successful Transition from Welfare to Work.” Washington, DC: The Urban Institute, 1996. Ooms, Theodora. “Strengthening Couples and Marriage in Low-Income Communities.” In Revitalizing the Institution of Marriage for the Twenty-First Century, edited by A. Hawkins, L. Wardle, and David Orgon Coolidge. Westport, CT: Praeger Publishers, pp.79-99, 2002. Oppenheimer, V.K. “The continuing importance of men’s economic position in marriage formation.” In The Ties that Bind: Perspectives on Marriage and Cohabitation, edited by L. Waite. New York: Aldine de Gruyter, pp. 283-301, 2000. Oropesa, R.S. “Normative Beliefs About Marriage and Cohabitation: A Comparison of Non-Latino Whites, Mexican Americans, and Puerto Ricans.” Journal of Marriage and the Family, vol. 58, pp. 49-62, February 1996. #010703.08 Oropesa, R.S., and B.K. Gorman. “Ethnicity, immigration, and beliefs about marriage as a ‘tie that binds.’ ” In The ties that bind: Perspectives on Marriage and Cohabitation, edited by L.J. Waite, et al. New York: Aldine de Gruyter, 2000. Owen, Margaret Tresch, and M. Cox. “Marital Conflict and the Development of InfantParent Attachment Relationships.” Journal of Family Psychology, vol. 11, no. 2, pp. 152-164, 1997. Patterson, C.J., D.A. Cohn, and B.T. Kao. “Maternal warmth as a protective factor against risks associated with peer rejection among children.” Developmental Psychopathology, vol. 1, pp. 21-38. 1989. Pavetti, LaDonna. “Helping the Hard-to-Employ.” In Welfare Reform and Beyond: The Future of the Safety Net, edited by Isabel V. Sawhill, R. Kent Weaver, Ron Haskins, and Andrea Kane. Washington, DC: The Brookings Institution, 2002. Pearson, M. “Can kids get smart about marriage? A veteran teacher reviews some leading marriage and relationship education programs.” A report for the National Marriage Project in The Next Generation Series. Rutgers University, 2001. Pedersen, F.A., et al. “Parent-Infant and Husband-Wife Interactions Observed at Five Months.” In The Father-Infant Relationship, edited by F.A. Pedersen. New York: 1980. Peterson, J.L., and N. Zill. “Marital Disruption, Parent-Child Relationships, and Behavior Problems in Children.” Journal of Marriage and the Family, vol. 48, pp. 295-307, 1986. Pettit, L., and D. Olds. “Father involvement in a program of prenatal and infancy home visiting by nurses.” Presentation. August 2001. Quint, J.C., J.M. Bos, and D.F. Polit. “New Chance: Final Report on a Comprehensive Program for Young Mothers in Poverty and Their Children.” New York, NY: Manpower Demonstration Research Corporation, 1997. Raikes, H., K. Boller, W. van Kammen, J.M. Love, J. Summers, D. Laible, B. Wilcox, G. Barclay-McLaughlin, C. McAllister, and the EHS Research Consortium Father Studies Workgroup. “Father Involvement in Early Head Start: Promising Practices, Challenges, and Stages of Program Activities.” Seminar on Involving Low-Income Fathers in the Lives of Their Young Children: USA and UK Policy, Research, and Practice, London, England, July 2000. Raphael, J., and R.M. Tolman. Trapped by poverty, trapped by abuse: New evidence documenting the relationship between domestic violence and welfare. Chicago, IL: Taylor Institute, 1997. #010703.08 Raphael, J., and S. Haennicke. “Keeping battered women safe through the welfare-towork journey: How are we doing?” Chicago, IL: Taylor Institute, 1999. Rector, Robert. “Requiring Work and Rebuilding Marriage.” Washington, DC: The Heritage Foundation, 2002a. Rector, Robert. “Housing Policy and Welfare Reform.” Testimony before the Subcommittee on Housing and Transportation of the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, May 1, 2002b. Regier, D.A., M.E. Farmer, D.S. Rae, J.H. Myers, M. Kramer, et al. “One-month prevalence of mental disorders in the United States and sociodemographic characteristics: The Epidemiologic Catchment Area study.” Acta Psychiatrica Scandinavica, vol. 88, pp. 35-47, 1993. Renick, M.J., S. Blumberg, and H.J. Markman. “The Prevention and Relationship Enhancement Program (PREP): An empirically based preventive intervention program for couples.” Family Relations, vol. 41, no. 2, pp. 141-147, 1992. Ridley, C.A., A.W. Avery, J.E. Harrell, L.A. Leslie, and J. Dent. "Conflict management: A premarital training program in mutual problem solving." American Journal of Family Therapy, vol. 9, no. 4, 1981. Ridley, C.A., S.R. Jorgensen, A.C. Morgan, and A.W. Avery. “Relationship enhancement with premarital couples: An assessment of effects on relationship quality.” American Journal of Family Therapy, vol. 10, no. 3, 1982. Rosenbaum, P., and D. Rubin. “The Central Role of the Propensity Score in Observational Studies for Causal Effects.” Biometrika, vol. 70, 1983. Ross, E. R., S. B. Baker, and B.G. Guerney, Jr. “Effectiveness of Relationship Enhancement therapy versus therapist's preferred therapy.” The American Journal of Family Therapy, vol. 13, no. 1, 1985. Russell, C.S., D.A. Bagarozzi, R.B. Atilanao, and J.E. Morris. “A comparison of two approaches to marital enrichment and conjugal skills training: Minnesota Couples Communication Program and structured behavioral exchange contracting.” American Journal of Family Therapy, vol. 12, 1984. Rutter, M. “Parent-Child Separation: Psychological Effects on the Children.” Journal of Child Psychology and Psychiatry, vol. 12, pp. 233-60, 1971. Ryan, Kimberly, and John Gottman. “Measuring Outcome in Marital Interventions for Distressed Couples: An Outcome Study with Four Psycho-Educational Formats and a Marital Therapy Relapse Prevention Intervention.” Unpublished paper, March 2002. #010703.08 Sard, Barbara, and Margy Waller. “Housing Strategies to Strengthen Welfare Policy and Support Working Families.” Washington, DC: The Brookings Institution, April 2002. Sassler, Sharon, and Robert Schoen. “The effect of attitudes and economic activity on marriage.” Journal of Marriage and the Family, 1999. Schulz, M.S., and C.P. Cowan. “Promoting healthy beginnings: Marital quality during the transition to parenthood.” Paper presented at the biennial meetings of the Society for Research on Child Development, Minneapolis, MN, April 2001. Schumacher, K.L., and Meleis, A.I. “Transitions: A central concept in nursing.” Image, vol. 26, no. 2, 1994. Silliman, Benjamin, Scott Stanley, William Coffin, Howard Markman, and Pamela Jordan. “Preventive Interventions for Couples.” In Family Psychology Intervention Science, edited by H. Liddle, D. Santisteban, R. Levant, and J. Bray. Washington, DC: APA Publications, 2001. Smock, Pamela J. “Cohabitation in the United States: An Appraisal of Research Themes, Findings, and Implications.” Annual Review, Sociology, vol. 26, pp. 1-20, 2000. Sollee, Diane. “The Emerging Field of Marriage Education: Creating Smart Marriages for the Millennium (Teaching Couples How to Fish).” Coalition for Marriage, Family and Couples Education, http://www.smartmarriages.com/fish.html, 2000. Sorensen, Elaine, Ronald Mincy, and Ariel Halpern. “Redirecting Welfare Policy Toward Building Strong Families.” Strengthening Families series. Washington, DC: The Urban Institute, March 2000. Sorensen, Elaine, and Chava Zibman. “A Look at Poor Dads Who Don’t Pay Child Support.” Washington, DC: The Urban Institute, September 2000. Spanier, G.B. “Measuring Dyadic Adjustment.” Journal of Marriage and the Family, vol. 38, 1976. Stanley, S.M., H.J. Markman, M. St. Peters, and D. Leber. “Strengthening Marriages and Preventing Divorce: New Directions in Prevention Research.” Family Relations, vol. 44, 1995. Stanley, Scott, and Howard Markman. “Commitment: The Role of Dedication and Constraint in Personal Relationships.” Journal of Marriage and the Family, vol. 54, 1992. Stanley, Scott and Howard Markman. Marriage in the 90s: A Nationwide Random Phone Survey. Denver, CO: PREP, Inc., 1997. #010703.08 Stanley, S.M., H.J. Markman, and N.H. Jenkins. Marriage Education and Government Policy: Helping Couples Who Choose Marriage Achieve Success. Denver, CO: PREP, Inc., 2002. Steuerle, C. Eugene. “Valuing marital commitment: The Radical Restructuring of Our Tax and Transfer Systems.” The Responsive Community, vol. 2, no. 9, pp. 35-45, Spring 1999. Steuerle, Eugene C. “Valuing Marital Commitment in our Transfer and Tax Systems.” Testimony before the U.S. House of Representatives, Subcommittee on Human Resources, Committee on Ways and Means, May 22, 2001. Strauss, Murray A., Richard J. Gelles, and Christine Smith. Physical Violence in American Families: Risk Factors and Adaptations to Violence in 8,145 Families. New Brunswick: Transaction Publishers, 1990. Sweeney, Eileen P. “Recent Studies Indicate that Many Parents Who are Current or Former Welfare Recipients Have Disabilities or Other Medical Conditions.” Washington, DC: Center on Budget and Policy Priorities, February 2000. Testa, Mark, and Marilyn Krogh. “The effect of employment on marriage among black males in inner-city Chicago.” In The Decline in Marriage Among African Americans, edited by M. Belinda Tucker and Claudia Mitchell-Kernan. New York, NY: Russell Sage Foundation, 1995. The Future of Children (Winter 2002) 12(1), (Winter 1999) 9(3), (Summer 1997) 7(2), and (Spring 1994) 4(1). Los Altos, CA: The David and Lucile Packard Foundation. The Urban Institute. Welfare Rules Database: A Longitudinal Database Tracking State AFDC/TANF Policies. Washington, DC. Available from www.urban.org. Thorton, Arland, W.G. Axinn, and D.H. Hill. “Reciprocal Effects of Religiosity, Cohabitation, and Marriage.” American Journal of Sociology, vol. 98, pp. 628-651, 1992. Thornton, A. and L. Young-Demarco. “Four Decades of Trends in Attitudes Toward Family Issues in the United States: the 1960s Through the 1990s.” Journal of Marriage and the Family, vol. 63, pp. 1009-1037, November 2001. Thorton, A. “Changing Attitudes Toward Family Issues in the United States.” Journal of Marriage and the Family, vol. 51, pp. 873-893, 1989. Thurmaier, F. R., J. Engl, V. Eckert, and K. Hahlweg. Ehevorbereitung-ein partnerschaftliches lernprogramm EPL. Munich, Germany: Ehrenwirth, 1993. Tucker, M. Belinda, and Claudia Mitchell-Kernen. The Decline in Marriage Among African Americans. New York, N.Y: The Russell Sage Foundation, 1995. #010703.08 Tucker, M. Belinda. “Marital values and expectations in context: Results from a 21-city survey.” In The Ties that Bind, edited by Linda Waite. New York: Aldine de Gruyter, 2000 Tucker, M.B. and C. Mitchell-Kernan. “Marital behavior and expectations: Ethnic comparisons of attitudinal and structural correlates.” In The Decline in Marriage Among African Americans, edited by Tucker and Mitchell-Kernan. New York: Russell Sage Foundation, 1995. Turetsky, Vicki. Testimony Before Senate Finance Committee, May 2002. Center for Law and Social Policy. Washington, DC. Available from www.clasp.org. U.S. Department of Justice, National Crime Victimization Survey, 1994. U.S. General Accounting Office. Income Tax Treatment of Married and Single Individuals. GAO/GGD-96-175. Washington, DC: Government Printing Office, 1996. U.S. General Accounting Office. “Welfare Reform: Moving Hard-to-Employ Recipients Into the Workforce.” Report to the Chairman, Subcommittee on Human Resources, Committee on Ways and Means, House of Representatives. Washington, DC: GAO, March 2001. Van Widenfelt, B., C. Hosman, C. Schapp, and C. van der Staak. “The prevention of relationship distress for couples at risk: A controlled evaluation with nine-month and two-year follow-ups.” Family Relations, vol. 45, pp. 156-165, 1996. Ventura, S.J., and Christine Bachrach. “Nonmarital childbearing in the United States, 1940-99.” National Vital Statistics Reports, vol. 48, no.16 (revised). Hyattsville, MD: National Center for Health Statistics, October 2000. Waite, Linda, and Maggie Gallagher. The Case for Marriage. Doubleday, 2000. Waller, Maureen R. “High Hopes: Unmarried Parents’ Expectations about Marriage at the Time of Their Child’s Birth.” Princeton, NJ: Center for Research on Child Wellbeing, Working Paper #00-18-FF, November 2000. Wallerstein et al. The Unexpected Legacy of Divorce: A 25 Year Landmark Study. New York: Hyperion, 2000. Whisman, M.A, C.T. Sheldon, and P. Goering. “Psychiatric disorders and dissatisfaction with social relationships: Does type of relationship matter?” Journal of Abnormal Psychology, vol. 109, no. 4, pp. 803-808, 2000. White, L., and S.J. Rogers. “Economic circumstances and family outcomes: A review of the 1990s.” Journal of Marriage and the Family, vol. 62, no. 4, pp. 1035-1051, 2000. #010703.08 Wieman, R. J. Conjugal relationship modification and reciprocal reinforcement: A comparison of treatments for marital discord. Unpublished doctoral dissertation, The Pennsylvania State University, 1973 (summary segment). Wilcox, W.B. “Then comes marriage? Religion, Race, and Marriage in Urban America.” Center for Research on Religion and Urban Civil Society, University of Pennsylvania, 2002. Williams, Malcolm V. “Reconceptualizing Father Involvement.” Georgetown University, 1997. Masters Thesis, Wilson, W.J. The Truly Disadvantaged: The Inner City, the Underclass, and Public Policy. Chicago: University of Chicago Press, 1987. Wu, L.L. “Effects of Family Instability, Income, and Income Instability on the Risk of Premarital Birth.” American Sociological Review, 1996. Yogman, M.W., D. Kindlon, and F.J. Earls. “Father Involvement and Cognitive Behavioral Outcomes of Premature Infants.” Journal of the American Academy Child and Adolescent Psychology, vol. 34, 1995. Zaslow, M.J., M.R. Dion, D.R. Morrison, N. Weinfield, J. Ogawa, and P. Tabors. “Protective factors in the development of preschool-age children of young mothers receiving welfare.” In Coping with Divorce, Single Parenting, and Remarriage, edited by M. Hetherington. Mahwah, NJ: Erlbaum, 1999. Zedlewski, S., and P. Loprest. “Will TANF work for the most disadvantaged families?” In The New World of Welfare, edited by R.M. Blank and R. Haskins. Washington, DC: Brookings Institution Press, pp. 311-34, 2001. Zedlewski, S., and D. Alderson. “Do families on welfare in the post-TANF era differ from their pre-TANF counterparts?” Assessing the New Federalism, Discussion Paper 01-03. Washington, DC: The Urban Institute, 2001. Zill, N., and J.L. Peterson. “Marital Disruption and the Child’s Need for Psychological Help.” Washington, DC: Report to the National Institute of Mental Health, 1983. #010703.08 $33(1',;$ (;3(573$1(/0(0%(56 3 Expert Panel Members Strengthening Families with Children Born Out-of-Wedlock Enola Aird Director The Motherhood Project Institute for American Values New York, NY Alan Hawkins Associate Professor School of Family Life Brigham Young University Provo, UT Jacqueline Campbell Anna D. Wolf Endowed Professor Associate Dean of Research/Doctoral Program The Johns Hopkins University School of Hygiene and Public Health Center for Injury Control Baltimore, MD Nicholas Ialongo Associate Professor Department of Mental Hygiene Bloomberg School of Mental Health The Johns Hopkins University Baltimore, MD Philip Cowan Professor and Director Institute of Human Development University of California at Berkeley Berkeley, CA Frank Furstenberg Professor and Research Associate Population Studies Center University of Pennsylvania Philadelphia, PA John Gottman Co-founder and Director The Gottman Institute, Inc. Seattle, WA Bernard Guerney, Jr. Founder and Director The National Institute of Relationship Enhancement Bethesda, MD Ron Haskins Senior Advisor for Welfare Policy The White House Senior Research Fellow The Brookings Institution Washington, DC Lindsay Chase-Lansdale Professor Institute for Policy Research Northwestern University Evansville, IL Steve Nock Director of Marriage Matters Co-director of Center for Children, Families, and the Law Professor of Sociology University of Virginia Charlottesville, VA David Olds Professor of Pediatrics, Psychiatry and Preventive Medicine Prevention Research Center for Family and Child Health University of Colorado Denver, CO Robert Rector Senior Research Fellow The Heritage Foundation Washington, DC $SSHQGL[$([SHUW3DQHO0HPEHUV 4 Isabel Sawhill Senior Research Fellow The Brookings Institution Washington, DC Scott Stanley Co-director Center for Marital and Family Studies Adjunct Professor of Psychology University of Denver Denver, CO Jerry Tello Director National Latino Fatherhood and Family Institute East Los Angeles, CA Patricia Funderburk Ware Executive Director Presidential Advisory Council on HIV/AIDS The White House Washington, DC Barbara Dafoe Whitehead Co-Director National Marriage Project Rutgers University Piscataway, NJ Brad Wilcox Assistant Professor Department of Sociology University of Virginia Charlottesville, VA George Williams Executive Director Urban Fathering Project National Center for Fathering Shawnee Mission, KS $SSHQGL[$([SHUW3DQHO0HPEHUV $33(1',;% 6800$5<2)352*5$0&+$5$&7(5,67,&6 % Table B.1. Summary of Program Characteristics Program Primary Program Goal Population Served Point of Contact Outreach/Services Provided African American Family Life Education Program (Multiple sites) To prevent long-term family problems Black couples, married or in committed relationships Varying income levels At any point Some outreach Couple relationship skills Parenting skills Life skills Assessments for other services Referrals for other services Baby Makes Three (Seattle, WA) To ease the transition to parenthood and prevent relationship deterioration Couples expecting a child All income levels and race/ethnicities Pregnancy to 6 months after birth Some outreach Couple relationship skills Parenting skills Father involvement Becoming Parents Program (Longwood, FL) To strengthen marriages or relationships of couples who are pregnant with first child Primarily married, middle-income, white, first-time parents Pregnancy to shortly after birth Recruit mainly from one church congregation Couple relationships skills Parenting skills Referrals for other services Becoming Parents Program (Naperville, IL) To strengthen marriages or relationships of couples who are pregnant with first child Primarily married, middle-income, white, first-time parents Pregnancy to shortly after birth Recruited from hospital Couple relationships Parenting skills Referrals for other services Bienvenidos Family Services (East Los Angeles, CA) To strengthen families, prevent child abuse, help families become selfsufficient, and support stable and healthy home environments Low-income Latino families At any point Some outreach Couple relationship skills Co-parenting skills Health education Life skills Substance abuse prevention and recovery Family violence prevention Pregnancy prevention Assessments for other services Referrals for other services Boot Camp for New Dads (Denver, CO) To provide education and support for expectant fathers Fathers, most first-time Some low-income Some Latino and black When expecting child Some outreach Couple relationships skills Co-parenting skills Father involvement Parenting skills Referrals for other services $SSHQGL[%6XPPDU\RI3URJUDP&KDUDFWHULVWLFV % Table B.1 (continued) Program Intensity Extent to Which Program is Faith Based 7 weekly classes Program Size Other Important Characteristics Secular Small, operated in only two sites Not currently offered on ongoing basis 1 weekend workshop, 12 support group meetings over 6 months Secular Medium, program being tested with 140 couples at 1 hospital Currently being evaluated in longitudinal 3-year study 6 weekly classes Setting is church, participants recruited from church congregation, and begin classes with prayer or scripture reading Small, but part of nationwide program 3 weekly classes, 2 hours long Secular Small, but part of nationwide program Home visits: 1-4 times per week Secular Large Comprehensive approach to strengthening couple relationships Secular Large, part of nationwide program Low-income fathers receive incentives for participation Groups/classes: 2 hours per week One time, 3 hour class $SSHQGL[%6XPPDU\RI3URJUDP&KDUDFWHULVWLFV % Table B.1 (continued) Program Primary Program Goal Population Served Point of Contact Outreach/Services Provided Building Strong and Ready Families (Multiple sites) To provide couples with skills necessary to build strong and lasting relationships Married enlisted soldiers in Army Some minority When couple has been in Army less than six months Some outreach Couple relationship skills Christian Family Community Mediation Services: Parenting for Positive Results and Relationship Skills Groups (St. Louis, MO) To encourage more effective parenting and improve relationship skills All low-income noncustodial fathers, single mothers, some couples Most black or Hispanic At any point No outreach, all clients referred Relationship skills Parenting skills Co-parenting Family mediation Financial management skills Referrals for other services Constructing a Godly Home (Braddock, PA) To prepare couples for stable relationships and marriages Premarital middleincome couples and singles, unwed mothers Many low-income Largely black Before marriage Some outreach Couple relationships skills Co-parenting skills Parenting skills Financial management skills Referrals for other services Couples’ Relationship Enhancement Program (Multiple sites) To teach couples skills to create happy and intimate relationships Couples Some low-income, African American, Native American At any point No outreach Couple relationships skills Referrals for other services Family Star Early Head Start (Denver , CO) To improve parents’ relationship with child, encourage coparenting, provide parents with resources necessary for this Parents of infants and children less than 3 in Early Head Start Largely lowincome Latino From all family structures While child is in Early Head Start Outreach only among Early Head Start participants Co-parenting skills Parenting skills Couple relationships skills Assessments for other services Referrals for other services First Things First (Chattanooga, TN) To reduce the divorce rate, reduce the number of out-ofwedlock pregnancies, and increase father involvement in the community Couples, families, and fathers Community-wide At any point Some outreach Media campaign Couple relationship skills Co-parenting skills Parenting skills Referrals for other services $SSHQGL[%6XPPDU\RI3URJUDP&KDUDFWHULVWLFV % Table B.1 (continued) Extent to Which Program is Faith Based Program Size Other Important Characteristics Two all-day workshops, plus overnight retreat Offered by Chaplain, but otherwise secular Medium, offered in 17 Brigades Heavily based on PREP; also research based Classes: 6 weekly 2hour sessions Mediation: 4-6 contacts per week for 1-2 years Offered by a Christian organization and sometimes classes are provided in churches, curriculum is secular Small Varies, from 1 all day class to 18-week 2-hr classes Faith-based curricula and setting Small No established/consistent curriculum Varies, typically 90 min to 2 hours for 14 to 16 weeks Some clergy provide program Large, nationwide program Research-based and evaluated curriculum Co-parenting: three 90 min. classes (in planning stage) Secular Family Star program is small Program scheduled to begin operation at beginning of March, but not yet in operation Varies by program Some programs faithbased, others secular Large, community-wide initiative Extensive collaboration with community-based organizations, including black churches Program Intensity $SSHQGL[%6XPPDU\RI3URJUDP&KDUDFWHULVWLFV % Table B.1 (continued) Program Primary Program Goal Population Served Point of Contact Outreach/Services Provided Greater Grand Rapids Community Marriage Project (Grand Rapids, MI) To increase frequency of marriage preparation, decrease the divorce rate, and reduce out-ofwedlock births Couples and families Community-wide At any point Some outreach Media campaign Couple relationships skills Referrals for other services Healthy Start, Heart of America United Way (Kansas City, MO) To decrease maternal and child morbidity and to improve child and family health Low-income pregnant women, infants, children up to 2, and their families Fathers of babies enrolled in Healthy Start Primarily black and Hispanic During pregnancy, and after child’s birth Extensive outreach, using community residents Case management Co-parenting skills Parenting skills Services to promote father involvement Employment services for mothers Health education Assessments for other services (mothers only) Referrals (mothers only) Healthy Start, (Pittsburgh/ Allegheny County, PA) To decrease maternal and child morbidity and to improve child and family health The Male Initiative Program designed to increase father involvement Low-income pregnant women, infants, children up to 2 and their families Also males ages 15 to 25 Primarily black and Hispanic During pregnancy and after child’s birth Extensive outreach, using community residents Case management Parenting skills Services to encourage father and other male involvement Health education Assessments for other services Referrals for other services Nurse-Family Partnership (Multiple sites) To improve women’s health during pregnancy; improve care of infants and toddlers and prevent maltreatment; prevent unintended pregnancy, school dropout, welfare dependence and unemployment Low-income firsttime mothers and their babies During and after pregnancy, until child is 2 yrs old Some outreach Couple relationships skills Parenting skills Co-parenting skills Referrals for employment services Assessments for other services Research-based curriculum Practical Application of Intimate Relationship Skills (PAIRS) (Multiple sites) To teach couples “emotional literacy” in order to improve their relationships All couples, some singles, usually middle-income At any point Some outreach Couple relationships skills $SSHQGL[%6XPPDU\RI3URJUDP&KDUDFWHULVWLFV % Table B.1 (continued) Extent to Which Program is Faith Based Program Size Other Important Characteristics Some programs faithbased, others secular Large, community-wide initiative Extensive collaboration with community-based organizations Fatherhood program is 6class series Secular Large program with 84 sites nationwide Lessons learned from outreach of Healthy Start could identify promising strategies for reaching the target population Male Initiative Program involves 12 sessions Secular Large program with 84 sites nationwide Has been operating longer than the Kansas City project Weekly, bimonthly, or monthly home visits, depending on mother’s circumstances from pregnancy until child is 2 Secular Nationwide program Findings from two experimental evaluations have shown program reduces child abuse, subsequent pregnancy, and incidence of behavioral problems due to substance abuse Varies Includes 8-week seminar to 120-hour seminar Both secular and faithbased versions Large, nationwide program Program Intensity Varies Premarital classes include a 1-time 4-hr class and a 3-session, 12-hr class Also depends on partner organizations $SSHQGL[%6XPPDU\RI3URJUDP&KDUDFWHULVWLFV % Table B.1 (continued) Program Primary Program Goal Population Served Point of Contact Outreach/Services Provided Prepare/Enrich and Building Relationships (Multiple sites) To help couples prepare for marriage, help enrich marriages of married couples Goal of Building Relationships is to help develop relationship skills of youth All premarital, married, and cohabiting couples, and youth At any point Some outreach Couple relationship skills General relationship skills Prevention and Relationship Enhancement Program (PREP) (Multiple sites) Preventing marital dissatisfaction and divorce Largely white, middle-income committed and married couples At any point Couple relationship skills Research-based curriculum Responsible Choices TANF Agency (Baltimore, MD) To prevent subsequent pregnancies among first-time parents, increase positive parent involvement, support low-income families Unmarried pregnant parents or within three months of birth of first child Largely low-income, black Pregnancy or shortly after birth of first child Some outreach Couple relationship skills Couples mediation Co-parenting skills Parenting skills Services to encourage father involvement Employment services Family planning services Assessments for other services Referrals for other services Torres Martinez Desert Indian Consortium TANF Agency (Los Angeles and Riverside, CA) To promote marriage and encourage father involvement All TANF recipients At any point No outreach Premarital counseling Couple relationship skills Employment services Assessments for other services Referrals for other services Financial incentives for marriage including marriage bonus and payment of some costs of traditional weddings $SSHQGL[%6XPPDU\RI3URJUDP&KDUDFWHULVWLFV % Table B.1 (continued) Program Intensity Extent to Which Program is Faith Based Program Size Other Important Characteristics Adult programs vary but recommend minimum of 6 hours of counseling Youth program 6-8 sessions, 90 min each Secular curriculum but counseling often provided by clergy Large, nationwide program 6 weekly 2-hour sessions, weekend or 1day workshops A Christian based version of the curriculum exists Large, nationwide program Studies have shown that program is effective, though some methodological problems with studies Varies, home visits (45 min to 1 hr) once a week at start, then less often unless needed Secular Medium, local program We may want to consider this TANF program for technical assistance. Varies Secular Local program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·VSULPDU\JRDOVDUH 7R VWUHQJWKHQ FRXSOH UHODWLRQVKLSV LQ RUGHU WR UHGXFH ERWK WKH PDULWDO FRQIOLFW WKDW DULVHV ZKHQFRXSOHVEHFRPHSDUHQWVDQGWKHOLNHOLKRRGRIGLYRUFH 7RLQFUHDVHIDWKHULQYROYHPHQWLQSDUHQWLQJ 7RLQFUHDVHERWKSDUHQWV·NQRZOHGJHRILQIDQWDQGFKLOGGHYHORSPHQW 7$5*(73238/$7,21 7KHSURJUDP·VWDUJHWSRSXODWLRQLVFRXSOHVDJHVWRZKRDUHH[SHFWLQJDEDE\DUHSODQQLQJ WR SDUHQW WKH FKLOG WRJHWKHU DQG DUH ZLOOLQJ WR ERWK SDUWLFLSDWH LQ WKH VWXG\ DQG DWWHQG WR VXSSRUWJURXSV 3DUWLFLSDWLQJFRXSOHVDUHSUHGRPLQDQWO\ZKLWHDQGPLGGOHLQFRPH2IWKHFRXSOHVLQWKH VWXG\ DUH $IULFDQ $PHULFDQ DQG DUH $VLDQ 2QO\ RQH FRXSOH LV QRW PDUULHG -XVW XQGHU SHUFHQWKDYHRWKHUFKLOGUHQ &25(352*5$06(59,&(6 7KH SURJUDP EDVHG RQ *RWWPDQ·V UHVHDUFK RQ PDUULDJH DQG LQIOXHQFHG E\ WKH UHVHDUFK RI *RWWPDQDQG6LOYHUDQG&RZDQDQG&RZDQKDVWZRPDLQFRPSRQHQWVDZHHNHQG ZRUNVKRSDQGDVHULHVRIVXSSRUWJURXSV)RUWKHVWXG\FRXSOHVIRXQGHOLJLEOHIRUWKHSURJUDP ZHUHUDQGRPO\DVVLJQHGWRDSURJUDPJURXSWKDWDWWHQGVWKHZRUNVKRSDQGWKHVXSSRUWJURXSVD SURJUDPJURXSWKDWDWWHQGVRQO\WKHZRUNVKRSDQGDFRQWUROJURXSZKRFDQQRWDWWHQGHLWKHU $SSHQGL[&6LWH9LVLW6XPPDULHV C- 7KHZHHNHQGZRUNVKRSLVDWWHQGHGE\ERWKSDUHQWVHLWKHUZKLOHWKH\DUHH[SHFWLQJWKHLUEDE\ RU ZLWKLQ WKH ILUVW IHZ PRQWKV DIWHU WKH EDE\ LV ERUQ 0RVW RI WKH FXUULFXOXP LV IRFXVHG RQ SUHVHUYLQJ WKH PDUULDJH EXW WKHUH DUH VHFWLRQV RQ FKLOG GHYHORSPHQW DQG RQ LQWHUDFWLQJ ZLWK WKH EDE\FRYHULQJVXFKWRSLFVDVWKHGDQJHUVRIRYHUVWLPXODWLRQ$OVRLQFOXGHGDUHGLVFXVVLRQVDERXW WKHLPSRUWDQFHRIDVWURQJPDUULDJHIDWKHULQYROYHPHQWDQGFRSDUHQWLQJWRFKLOGGHYHORSPHQW 7KH VXSSRUW JURXSV SURYLGH DQ RSSRUWXQLW\ WR H[SUHVV IHHOLQJV DERXW WKH WUDQVLWLRQ WR SDUHQWKRRGDQGWRUHFHLYHHPRWLRQDOVXSSRUWIURPRWKHUFRXSOHV:KLOHWKH\GRQRWRIIHUWKHUDS\ SHUVHWKH\DUHRIWHQ´WKHUDSHXWLFµ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·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´VHOIUHIHUUDOVµZKLOHRWKHUVDUH UHIHUUHGIURPRXWVLGHLQVWLWXWLRQVVXFKDVWKH'HSDUWPHQWRI6RFLDO6HUYLFHVORFDOKLJKVFKRROVDQG KRVSLWDOV,QDGGLWLRQWKH&KLOGUHQ·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· FRPSUHKHQVLYH DSSURDFK WR VWUHQJWKHQLQJ IDPLOLHV LQFOXGHV D PXOWLWXGH RI SURJUDPVDQGVHUYLFHV • 3DUHQWLQJHGXFDWLRQFODVVHVDUHW\SLFDOO\FRXUWPDQGDWHGIRUSDUHQWVLQYROYHGZLWKWKH FKLOGZHOIDUHV\VWHP&ODVVHVLQ6SDQLVKDQG(QJOLVKDUHRIIHUHGRQVLWHGXULQJWKHGD\ DQGHYHQLQJ • +RPHYLVLWVSURYLGHGZHHNO\DUHGHVLJQHGWRIRFXVRQFKLOGGHYHORSPHQWVXSSRUWLYH VHUYLFHVDQGOLIHVNLOOVDOWKRXJKLPPHGLDWHQHHGVDQGFULVHVDUHDGGUHVVHGILUVW • )DWKHULQYROYHPHQWLQLWLDWLYHVLQFOXGH&RQ/RV3DGUHVDZHHNSURJUDPFRPSULVLQJ ZHHNO\ JURXS VHVVLRQV IURP WR SP WKDW WHDFKHV \RXQJ PHQ DJHV WR DERXW WKHLUUROHVDQGUHVSRQVLELOLWLHVDVIDWKHUV • 'RPHVWLF YLROHQFH WUHDWPHQW LV SURYLGHG WKURXJK /DWLQDV HQ 3URJUHVR D SURJUDP IRU IHPDOH YLFWLPV RI GRPHVWLF YLROHQFH FRPSULVLQJ ZHHNO\ JURXS PHHWLQJV LQGLYLGXDO FRXQVHOLQJHGXFDWLRQDOZRUNVKRSVDQGFODVVHVDQGDQDIWHUFDUHVXSSRUWJURXS • $QJHUPDQDJHPHQWVHVVLRQVDUHSURYLGHGWKURXJK$OO0\5HODWLRQVDZHHNFODVVIRU PHQ FRQGXFWHG E\ D WUDLQHG PHGLDWRU ZKR WHDFKHV FRQIOLFW UHVROXWLRQ PHGLDWLRQ DQG QRQYLROHQWFRPPXQLFDWLRQ $SSHQGL[&6LWH9LVLW6XPPDULHV & • 6XEVWDQFHDEXVHWUHDWPHQWLVSURYLGHGWRZRPHQIRUWRKRXUVHDFKZHHNIRUVL[ PRQWKV WR RQH \HDU &ODVVHV DUH RIIHUHG 0RQGD\ WKURXJK )ULGD\ SULPDULO\ LQ WKH PRUQLQJDWDURXQGR·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·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·V 6HUYLFHV LV LQWHQGHG WR VXSSRUWIDWKHUVLQEHFRPLQJPRUHLQYROYHGLQWKHLUFKLOGUHQ·VOLYHV675,9(LVLQWHQGHGWRSURYLGH PHQDQGZRPHQZLWKHPSOR\PHQWVHUYLFHVDQG3DUHQWLQJLVLQWHQGHGWRFUHDWHDVXSSRUWLYH IDPLO\ HQYLURQPHQW KHOS SDUHQWV ZRUN WRJHWKHU PRUH FRRSHUDWLYHO\ IRU WKHLU FKLOGFKLOGUHQ·V EHQHILWDQGPDNHDGYRFDF\DQGHGXFDWLRQVHUYLFHVHTXDOO\DYDLODEOHWRPRWKHUVDQGIDWKHUV6HHWKH VHFWLRQ&RUH3URJUDP6HUYLFHVEHORZIRUDIXOOHUGHVFULSWLRQRIHDFKSURJUDPFRPSRQHQW 7$5*(73238/$7,21 &):' FOLHQWV DUH SUHGRPLQDWHO\ $IULFDQ $PHULFDQV ZKR OLYH LQ %DOWLPRUH·V PRVW SRYHUW\ VWULFNHQQHLJKERUKRRGV7KHDYHUDJHFOLHQWLQ0HQ·V6HUYLFHVLVD\HDUROGQRQFXVWRGLDOIDWKHUZKR GURSSHG RXW RI VFKRRO LQ WKH QLQWK JUDGH $SSUR[LPDWHO\ SHUFHQW RI 0HQ·V 6HUYLFHV FOLHQWV DUH XQHPSOR\HGDQGPDQ\DUHXQGHUHPSOR\HG,QJHQHUDOFOLHQWVWHQGWRKDYHORZOHYHOVRIHGXFDWLRQ DQG VNLOO DQG PRVW GR QRW KDYH D *(' RU KLJK VFKRRO GLSORPD &):' VWDII HVWLPDWH WKDW DSSUR[LPDWHO\WRSHUFHQWRI0HQ·V6HUYLFHVFOLHQWVKDYHFULPLQDOUHFRUGV7KH\DOVRIDFHVXFK RWKHULVVXHVVXFKDVVXEVWDQFHDEXVHGRPHVWLFYLROHQFHPXOWLSOHSDUWQHUIHUWLOLW\ODFNRIDIIRUGDEOH KRXVLQJPHQWDOKHDOWKFRQGLWLRQVUDFLDODQGFODVVSUHMXGLFHDQGDODFNRIFRPPXQLW\UHVRXUFHV &25(352*5$06(59,&(6 &):' SURYLGHV D FRPSUHKHQVLYH DUUD\ RI VHUYLFHV LQ KRXVH DQG WKURXJK UHIHUUDOV WR RXWVLGH DJHQFLHVDVGHVFULEHGEHORZ $SSHQGL[&6LWH9LVLW6XPPDULHV C- • 0HQ·V VHUYLFHV $V PHQWLRQHG WKH 0HQ·V 6HUYLFHV SURJUDP IRFXVHV RQ IDWKHU LQYROYHPHQW SDUHQWLQJ HGXFDWLRQ UHODWLRQVKLS VNLOOV DQJHU PDQDJHPHQW DQG FR SDUHQWLQJ 6HUYLFHV DUH SURYLGHG WKURXJK LQWHQVLYH FDVH PDQDJHPHQW FODVVHV SHHU VXSSRUWDQGGLVFXVVLRQJURXSVLQGLYLGXDODQGIDPLO\FRXQVHOLQJDQGRFFDVLRQDOKRPH YLVLWV7KHVHUYLFHVWDUJHWHGWRXUEDQ$IULFDQ$PHULFDQPHQDUHEDVHGRQDFXOWXUDOO\ FRPSHWHQWDSSURDFK,QVWUXFWLRQDOWHFKQLTXHVLQFOXGHOHFWXUHGLVFXVVLRQDQGWKHXVHRI PDWHULDOVVXFKDVWKHFXUULFXOXPKDQGERRNYLGHRVJXHVWVSHDNHUVDQGKDQGRXWV •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• 'RPHVWLFYLROHQFH&OLHQWVLGHQWLILHGDVKDYLQJSUREOHPVZLWKGRPHVWLFYLROHQFHDUH W\SLFDOO\UHIHUUHGWRDORFDORUJDQL]DWLRQWKDWVHUYHVYLFWLPVDQGSHUSHWUDWRUVRIGRPHVWLF YLROHQFH,QVRPHFDVHVDVWDIIPHPEHUIURPWKHORFDORUJDQL]DWLRQRUIURP&):' ZLOO ZRUN LQIRUPDOO\ ZLWK WKH FOLHQW HVSHFLDOO\ ZKHQ WKH FOLHQW LV QRW SUHSDUHG WR DFNQRZOHGJHWKDWKHRUVKHKDVDSUREOHP • $VVLVWDQFHZLWK FKLOG VXSSRUW&):'FROODERUDWHVZLWKWKH0DU\ODQG6WDWH$UUHDUV /HYHUDJLQJ3URJUDPWRDVVLVWQRQFXVWRGLDOIDWKHUVLQUHGXFLQJWKHLUFKLOGVXSSRUWGHEW DUUDQJLQJDPDQDJHDEOHSD\PHQWVFKHGXOHDQGDYRLGLQJSRVVLEOHFULPLQDOSHQDOWLHV • 5HIHUUDOV 5HIHUUDOV DUH PDGH IRU VXEVWDQFH DEXVH WUHDWPHQW KRXVLQJ DVVLVWDQFH DQG KHDOWKFDUH 6(59,&('(/,9(5< 0HQ·V6HUYLFHVFOLHQWVDWWHQGWZRVHVVLRQVSHUZHHNIRUZHHNV2QHVHVVLRQLVHGXFDWLRQDODQG FXUULFXOXPEDVHGDQGWKHRWKHULVDSHHUVXSSRUWJURXS675,9(FOLHQWVDWWHQGGDLO\FODVVHVDQG DUH H[SHFWHG WR EH SXQFWXDO WR FRPH WR WKH FODVV HYHU\ GD\ DQG WR GUHVV DV WKH\ ZRXOG IRU D SURIHVVLRQDOMRE 5(&58,70(17 'LUHFWFRPPXQLW\RXWUHDFKIRXQGE\WKHVWDIIWREHPRUHHIIHFWLYHWKDQSULQWDGYHUWLVLQJLV WKHFRUHRI&):'·VUHFUXLWLQJVWUDWHJ\$OPRVWDOOWKHIURQWOLQHVWDIIUHFUXLWIRU0HQ·V6HUYLFHVDQG 675,9( E\ WDONLQJ GLUHFWO\ ZLWK SRWHQWLDO FOLHQWV JLYLQJ WKHP PDWHULDOV RQ WKH SURJUDP DQG KDQJLQJ´GRRUNQRFNHUµ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• 0HQ·V6HUYLFHV$ERXWWRFOLHQWVSDUWLFLSDWHLQ0HQ·V6HUYLFHVFODVVHVDWDQ\JLYHQ WLPH DQG DERXW WR SDUWLFLSDWH HDFK \HDU &OLHQWV W\SLFDOO\ VWD\ LQYROYHG LQ 0HQ·V 6HUYLFHV IRU DERXW RQH \HDU 7KH SURJUDP KDV VHUYHG DERXW PHQ VLQFH LWV LQFHSWLRQ$ERXWWRSHUFHQWRI0HQ·V6HUYLFHVFOLHQWVDUHDOVRHQUROOHGLQ675,9( • 675,9( $ERXW FOLHQWV JUDGXDWH IURP HDFK WKUHHZHHN WUDLQLQJ F\FOH DQG DSSUR[LPDWHO\FOLHQWVJUDGXDWHLQD\HDU2QDYHUDJHFOLHQWVVWD\ZLWKWKHSURJUDP IRUDERXWWZR\HDUV $SSHQGL[&6LWH9LVLW6XPPDULHV & &+,/'5(1),567 6WDWHRI2NODKRPD 0DUFK 29(59,(: &KLOGUHQ )LUVW LV D FRPPXQLW\EDVHG YROXQWDU\ IDPLO\ UHVRXUFH SURJUDP WKDW RIIHUV KRPH YLVLWDWLRQ WR IDPLOLHV ZKR KDYH OLWWOH ILQDQFLDO RU VRFLDO VXSSRUW DQG DUH H[SHFWLQJ WR GHOLYHU DQG SDUHQWWKHLUILUVWFKLOG7KHSURJUDPXVHV'DYLG2OGV·1XUVH)DPLO\3DUWQHUVKLS3URJUDPPRGHO 3XEOLF KHDOWK QXUVHV FRQGXFW KRPH YLVLWV GXULQJ SUHJQDQF\ DQG DFURVV WKH ILUVW WZR \HDUV RI WKH FKLOG·V OLIH IROORZLQJ ZHOOGHYHORSHG SURWRFROV IURP WKH 2OGV PRGHO WKURXJKRXW WKLV SHULRG 7KURXJKDVFKHGXOHRIZHHNO\ELZHHNO\DQGHYHQWXDOO\PRQWKO\YLVLWVQXUVHVIRFXVRQWKHKHDOWK RIWKHPRWKHUDQGFKLOGWKHPDWHUQDOUROHSHUVRQDOVRXUFHVRIVXSSRUWDQGDFFHVVLQJFRPPXQLW\ UHVRXUFHV 7KH SURJUDP DGPLQLVWHUHG WKURXJK WKH VWDWH 'HSDUWPHQW RI +HDOWK EHJDQ LQ IRXU FRXQWLHVDVDSLORWLQDQGLVQRZRIIHUHGVWDWHZLGHLQDOOFRXQWLHVLQ2NODKRPD 352*5$0*2$/ &KLOGUHQ)LUVWLVLQWHQGHGWRSURPRWHWKHKHDOWKDQGZHOOEHLQJRISUHJQDQWZRPHQDQGWKHLU LQIDQWV DQG KDV WKUHH RYHUDUFKLQJ REMHFWLYHV WR SURPRWH KHDOWK\ EHKDYLRUV DPRQJ PRWKHUV GXULQJSUHJQDQF\WRHQKDQFHIDPLO\FDUHJLYLQJIRULQIDQWVDQGWRGGOHUVLQRUGHUWRSUHYHQWFKLOG PDOWUHDWPHQWDQGFKLOGKRRGLQMXULHVDQGWRSUHYHQWVXEVHTXHQWXQLQWHQGHGSUHJQDQFLHVVFKRRO GURSRXWZHOIDUHGHSHQGHQF\RUXQHPSOR\PHQW 7$5*(73238/$7,21 7KH &KLOGUHQ )LUVW WDUJHW SRSXODWLRQ LV SUHJQDQW ZRPHQ XQGHU ZHHNV JHVWDWLRQ ZKR DUH H[SHFWLQJWRGHOLYHUDQGRUSDUHQWWKHLUILUVWFKLOGDQGZKRKDYHOLWWOHILQDQFLDORUVRFLDOVXSSRUW &25(352*5$06(59,&(6 &KLOGUHQ )LUVW SURYLGHV IDPLOLHV ZLWK SDUHQWLQJ DQG QXWULWLRQ HGXFDWLRQ KHDOWK DQG VDIHW\ LQIRUPDWLRQDQGUHIHUUDOVWRFRPPXQLW\DJHQFLHVIRUVHUYLFHVVXFKDVKHDOWKFDUHFKLOGFDUHPHQWDO KHDOWKFDUHDQGMREWUDLQLQJ 1XUVHV XVH WKH 3DUWQHUV LQ 3DUHQWLQJ (GXFDWLRQ 3,3( FXUULFXOXP WR KHOS PRWKHUV GHYHORS KHDOWK\ UHODWLRQVKLSV 7KRXJK WKH SULPDU\ IRFXV RI WKH SURJUDP LV WKH PRWKHUEDE\ UHODWLRQVKLS WKHUHLVDQLQWHUHVWLQH[SDQGLQJERWKUHVRXUFHVDQGIDWKHULQYROYHPHQW$OVRSODQVDUHFXUUHQWO\ XQGHU ZD\ WR LQWHJUDWH WKH 3UHYHQWLRQ DQG 5HODWLRQVKLS (QKDQFHPHQW 3URJUDP 35(3 LQWR WKH VHUYLFHV&KLOGUHQ)LUVWDOUHDG\SURYLGHV 6(59,&('(/,9(5< 7KH UHODWLRQVKLS WKDW GHYHORSV EHWZHHQ QXUVH KRPH YLVLWRUV DQG WKH PRWKHUV VHUYHG LV WKH IRXQGDWLRQRIWKHSURJUDPDQGFDVHORDGVDUHOLPLWHGWRIDPLOLHVLQRUGHUWRHQVXUHWKDWWKLVLV SRVVLEOH+RPHYLVLWDWLRQVHUYLFHVDUHGHOLYHUHGRQWKHIROORZLQJVFKHGXOHZHHNO\GXULQJWKHILUVW $SSHQGL[&6LWH9LVLW6XPPDULHV C- PRQWKRISURJUDPSDUWLFLSDWLRQELZHHNO\DIWHUWKDWXQWLOGHOLYHU\ZHHNO\GXULQJWKHILUVWVL[ZHHNV DIWHUGHOLYHU\HYHU\RWKHUZHHNXQWLOWKHFKLOGLVPRQWKVROGDQGPRQWKO\XQWLOWKHFKLOGLVWZR 5(&58,70(17 &OLHQWVDUHUHIHUUHGWKURXJKYDULRXVVRXUFHVLQFOXGLQJDJHQFLHVSURYLGLQJSUHQDWDOVHUYLFHV $66(660(176&5((1,1*$1'5()(55$/ &KLOGUHQ )LUVW SURYLGHV KHDOWK DVVHVVPHQWV RI PRWKHUV DQG FKLOGUHQ DV ZHOO DV FKLOG GHYHORSPHQWDVVHVVPHQWV,QDGGLWLRQPRWKHUVDUHDVVHVVHGIRUSRVWSDUWXPGHSUHVVLRQGXULQJWKH VL[PRQWKVIROORZLQJWKHELUWKRIWKHLUFKLOGUHQ&OLHQWVDUHUHIHUUHGWRRXWVLGHDJHQFLHVZKHQQHHGV DUHLGHQWLILHGWKDWFDQQRWEHDGGUHVVHGE\WKHKRPHYLVLWRUV 352*5$06,=($1',17(16,7< )URP2FWREHUWKURXJK0D\PRUHWKDQIDPLOLHVLQ2NODKRPDHQUROOHGLQWKH SURJUDP'XULQJWKDWWLPHQXUVHVPDGHPRUHWKDQYLVLWV 1RZDVWDQGDORQHHQWLW\LQWKH'HSDUWPHQWRI+HDOWKWKHSURJUDPIDOOVXQGHUWKHGLYLVLRQRI )DPLO\+HDOWK6HUYLFHVZKLFKUHSRUWVWRWKHVWDWH&RPPLVVLRQHURI+HDOWK3URJUDPVXSHUYLVRUVLQ WKHFRXQWLHVWKURXJKRXWWKHVWDWHUHSRUWWRWKHORFDOFRXQW\FLW\KHDOWKDJHQF\ $SSHQGL[&6LWH9LVLW6XPPDULHV C- PREVENTION AND RELATIONSHIP ENHANCEMENT PROGRAM (PREP®) 29(59,(: 7KH 3UHYHQWLRQ DQG 5HODWLRQVKLS (QKDQFHPHQW 3URJUDP 35(3 GHYHORSHG MRLQWO\ E\6FRWW06WDQOH\+RZDUG-0DUNPDQDQG6XVDQ/%OXPEHUJKDVEHHQRIIHUHGIRUWKH SDVW\HDUVLQPDQ\FRPPXQLWLHVDFURVVWKHQDWLRQDQGDURXQGWKHZRUOG35(3FDQEH RSHUDWHG LQ D YDULHW\ RI VHWWLQJV E\ D GLYHUVH JURXS RI LQGLYLGXDOV LQFOXGLQJ HGXFDWRUV FRXQVHORUV FOHUJ\ PHQWDO KHDOWK SURIHVVLRQDOV RU OD\ OHDGHUV ,W FDQ DOVR EH RIIHUHG WR FRXSOHVWKURXJKIUHHVWDQGLQJHGXFDWLRQDOPDWHULDOVVXFKDVYLGHRWDSH 352*5$0*2$/ 7KH SURJUDP·V SULPDU\ JRDO LV WR SUHYHQW GLYRUFH E\ WHDFKLQJ WKH VNLOOV DQG FRPSHWHQFLHV DVVRFLDWHG ZLWK VXFFHVVIXO PDULWDO DGMXVWPHQW³EHIRUH SUREOHPV GHYHORS )RFXVHGRQSUHYHQWLQJPDULWDOGLVVDWLVIDFWLRQDQGGLVWUHVVWKHSURJUDPKDVILYHREMHFWLYHV WRGHYHORSDQGJXLGHWKHSUDFWLFHRIFRQVWUXFWLYHFRPPXQLFDWLRQDQGFRQIOLFWUHVROXWLRQ VNLOOVWRFODULI\DQGPRGLI\XQUHDOLVWLFEHOLHIVDERXWDQGH[SHFWDWLRQVRIUHODWLRQVKLSV WRPDLQWDLQDQGHQKDQFHIXQIULHQGVKLSDQGVSLULWXDOFRQQHFWLRQLQLQWLPDWHUHODWLRQVKLSV WRGHYHORSDQDJUHHGXSRQVHWRIJURXQGUXOHVIRUKDQGOLQJGLVDJUHHPHQWVDQGFRQIOLFW DQGWRGHYHORSVNLOOVWRHQKDQFHDQGPDLQWDLQFRPPLWPHQW 7$5*(73238/$7,21 7KHSURJUDPLVGHVLJQHGIRUPLGGOHLQFRPHQRQGLVWUHVVHGFRXSOHVZKRDUHHQJDJHGRU PDUULHG &25(352*5$06(59,&(6 7KH FXUULFXOXP LQFOXGHV WKH IROORZLQJ OHFWXUH VHULHV )RXQGDWLRQ DQG 'DQJHU 6LJQV 6DIHW\ 6WUXFWXUH DQG &RPPXQLFDWLRQ )LOWHUV ,VVXHV DQG (YHQWV ([SHFWDWLRQV 1HJDWLYH &RPPXQLFDWLRQ $QJHU DQG &RQVWUXFWLYH *ULSLQJ )XQ 3UREOHP 6ROYLQJ )ULHQGVKLS *URXQG5XOHV&RUH%HOLHI6\VWHPV5HOLJLRXV6SLULWXDODQG2WKHUZLVHDQG6HQVXDOLW\DQG 6H[XDOLW\ 6NLOOV LQ HDFK RI WKHVH DUHDV DUH WDXJKW GHPRQVWUDWHG DQG WKHQ SUDFWLFHG DV FRXSOHVUROHSOD\DVLWXDWLRQZKLOHEHLQJFRDFKHGE\DQLQVWUXFWRU $SSHQGL[&6LWH9LVLW6XPPDULHV C- 6(59,&('(/,9(5< 6HUYLFHV DUH GHOLYHUHG LQ RQH RI WKUHH IRUPV VL[ ZHHNO\ WZRKRXU VHVVLRQV D ZHHNHQGZRUNVKRSRUDRQHGD\ZRUNVKRS7KHZHHNO\VHVVLRQVLVWKHGRPLQDQWIRUP 7KHSURJUDPVWDIIFRPSULVHVD´OHDGHUµDQGRQHRUPRUHFRDFKHV&KLOGUHQGRQRWDWWHQG RUSDUWLFLSDWHLQWKHVHVVLRQV 5(&58,70(17 7KHUHFUXLWPHQWVWUDWHJLHVSURJUDPVXWLOL]HYDU\DFURVVVLWHV $66(660(176&5((1,1*$1'5()(55$/ ,Q JHQHUDO 35(3 SURJUDPV GR QRW DVVHVV RU VFUHHQ FOLHQWV IRU QHHGV QRU DUH FOLHQWV UHIHUUHGWRVHUYLFHV 352*5$06,=($1',17(16,7< *URXSVDUHW\SLFDOO\PHGLXPWRODUJHZLWKXSWRFRXSOHVLQRQHJURXS $SSHQGL[&6LWH9LVLW6XPPDULHV
Similar documents
TCC Issue of August 25, 2010
HQRXJKWRKDYHRQHRIKHULPDJHV VHOHFWHG DV 0RWKHU 7HUHVD¶V RI¿ FLDOEHDWL¿FDWLRQSKRWR 7KLV6XQGD\$XJ&RQVWDQ WLQ ZLOO KHOS FHOHEUDWH 0RWKHU 7HUHVD¶V WK ELUWKGD\ E\ GLV...
More informationNewsletter - Area Agency on Aging
&RPPXQLW\6HUYLFHV%ORFN*UDQW)XQGLQJIRU/RZ,QFRPH+RPH X d
More information