The Educational Credit Management Corporation (ECMC) Foundation is a Los Angeles based non-profit organization that provides grants to colleges, universities, for-profit corporations, and nonprofit organizations to support higher education and career readiness, particularly among students from ethnic and racial minority backgrounds. ¹

The ECMC Foundation is the charitable arm of the ECMC Group, a Minneapolis-based non-profit corporation that provides financial services to students, including loan guarantees and loan default prevention. ² With $797 million in net assets for the 2020 fiscal year, the ECMC Foundation is one of the largest funders of postsecondary career education in the country. ³

History and Leadership

Founded in 2000, the Educational Credit Management Corporation Foundation initially provided student scholarships. In 2013, the board of directors of the foundation’s parent company, the ECMC Group, voted to make it a grantmaking organization. ⁴

In 2014, the ECMC Foundation hired Peter J. Taylor, a controversial former Wall Street banker and member of the University of California (UC) Board of Regents, to lead the foundation in its new direction as a grantmaking organization. ⁵

Taylor previously served as a municipal finance banker for the failed investment bank Lehman Brothers, at which time he was also an alumni representative on the University of California Board of Regents and a board member of the UCLA Foundation. Following the financial crash in 2008, the UC Board of Regents paid Taylor $400,000 a year to serve in a new chief financial officer position, in which he oversaw increased borrowing activity. ⁶ In this position, Taylor became a source of controversy when he oversaw financial rate swaps that failed to pay off, causing the University of California to lose tens of millions of dollars and see its debt tripled. ⁷

Grantmaking Activity

After becoming a grantmaking organization in 2013, the ECMC Foundation has made more than $200 million in grants. ⁸

While most of its grants are issued through an open application process, some of its grants are part of programmatic initiatives set by the ECMC Foundation, such as its Basic Needs Initiative, which was launched in 2019 to address issues affecting lower-income students such as food and housing security, childcare, mental health, financial assistance and transportation. The Basic Needs Initiative included $3.1 million in grants over three years to a range of organizations. ⁹

Examples of ECMC Foundation grants in 2021 include a grant in February of up to $27,500 to the American Association of Community Colleges to fund partnerships between community and four-year colleges to create transfer pathways that increase transfer opportunities for minority and low-income student populations. ¹⁰

In March 2021, the ECMC Foundation granted $1.125 million to the American Indian College Fund to finance two programs at tribal colleges in North Dakota and Montana. The grant is intended to support Native American students seeking careers in healthcare and education. ¹¹

This was followed in June by a $5 million grant to City Year AmeriCorps, enabling it to place 230 AmeriCorps student counselors in low-income elementary and middle schools across Denver, Los Angeles, Miami, New York, Philadelphia, Providence, Sacramento, San José, Seattle and Washington, D.C. to address what City Year describes as “educational inequities that have been magnified by the pandemic.” This followed a similar $5 million grant the year prior. ¹²

In August 2021, the ECMC Foundation granted $1.2 million to the for-profit Association of Community College Trustees and Education Strategy Group to help community colleges create more pathways for students to gain credits in fields where well-paying jobs are growing. ¹³

August of the same year, the ECMC Foundation granted $560,111 to Georgia State University’s new National Institute for Student Success, which is intended to boost graduation rates for minority students and “eliminate equity gaps based on race, ethnicity and income level.” ¹⁴

1. Scutari, Mike. “Funder Spotlight: How the ECMC Foundation Helps Underserved College Students Thrive.” Inside Philanthropy. September 16, 2021. Accessed September 19, 2021. https://www.insidephilanthropy.com/home/2021/9/16/funder-spotlight-how-the-ecmc-foundation-helps-underserved-college-students-thrive
2. “Who We Are.” ECMC Group. Accessed September 20, 2021. https://www.ecmcgroup.org/who-we-are
3. Scutari, Mike. “Funder Spotlight: How the ECMC Foundation Helps Underserved College Students Thrive.” Inside Philanthropy. September 16, 2021. Accessed September 19, 2021. https://www.insidephilanthropy.com/home/2021/9/16/funder-spotlight-how-the-ecmc-foundation-helps-underserved-college-students-thrive
4. “Our History.” ECMCFoundation.org. Accessed September 19, 2021. https://www.ecmcfoundation.org/who-we-are/about#history
5. Scutari, Mike. “Funder Spotlight: How the ECMC Foundation Helps Underserved College Students Thrive.” Inside Philanthropy. September 16, 2021. Accessed September 19, 2021. https://www.insidephilanthropy.com/home/2021/9/16/funder-spotlight-how-the-ecmc-foundation-helps-underserved-college-students-thrive
6. Nielsen, Kelly and Laura Hamilton. “Our Broke Public Universities.” The Chronicle of Higher Education. June 1, 2021. Accessed September 19, 2021. https://www.chronicle.com/article/our-broke-public-universities
7. Peterson, Melody. “UC lost millions on interest-rate bets.” Orange County Register. February 24, 2014. Accessed September 19, 2021. https://ocregister.com/2014/02/24/uc-lost-millions-on-interest-rate-bets/
8. Scutari, Mike. “Funder Spotlight: How the ECMC Foundation Helps Underserved College Students Thrive.” Inside Philanthropy. September 16, 2021. Accessed September 19, 2021. https://www.insidephilanthropy.com/home/2021/9/16/funder-spotlight-how-the-ecmc-foundation-helps-underserved-college-students-thrive
9. PR Newswire. “ECMC Foundation Launches Basic Needs Initiative.” Nov 19, 2019. Accessed September 19, 2021. https://prnewswire.com/news-releases/ecmc-foundation-launches-basic-needs-initiative-300960761.html
10. Razzaq, Zane. “Framingham State, MassBay to take part in new equity transfer initiative.” MetroWest Daily News. February 4, 2021. Accessed September 20, 2021. https://www.metrowestdailynews.com/story/news/education/2021/02/04/framingham-state-massbay-take-part-new-equity-transfer-initiative/4388057001/
11. Red Lake Nation News. “ECMC Foundation Grants $1.125 Million to American Indian College Fund to Boost Workforce in North Dakota and Montana.”RedLakeNationNews.com. April 1, 2021. Accessed September 20, 2021. https://www.redlakenationnews.com/story/2021/04/01/features/ecmc-foundation-grants-1125-million-to-american-indian-college-fund-to-boost-workforce-in-north-dakota-and-montana/97041.html
12. Global News Wire. “City Year AmeriCorps receives second $5 million grant from ECMC Foundation for COVID-19 response.” June 10, 2021. Accessed September 20, 2021. https://globenewswire.com/news-release/2021/06/10/2245439/0/en/City-Year-AmeriCorps-receives-second-5-million-grant-from-ECMC-Foundation-for-COVID-19-response.html
13. ^[1] Weissman, Sara. “New Initiative Seeks to Align Noncredit and Credit Programs.” Inside Higher Ed. August 20, 2021. Accessed September 20, 2021. https://www.insidehighered.com/quicktakes/2021/08/20/new-initiative-seeks-align-noncredit-and-credit-programs
14. Georgia State University. “ECMC Foundation Grant Supports Georgia State’s National Institute For Student Success.” GSU.edu. August 16, 2021. Accessed September 19, 2021. https://news.gsu.edu/2021/08/16/ecmc-foundation-grant-supports-georgia-states-national-institute-for-student-success/