Rhode Island’s ALICE Report, the Nonprofit Safety Net, and What Comes Next

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Bill Bartholomew speaks with Cortney Nicolato, president and CEO of United Way of Rhode Island, about the ALICE study and why the old federal poverty measure misses a huge share of working families. They discuss how nonprofits are filling gaps in state services, why funding is under strain, and what policy and system changes could better support Rhode Islanders.

https://unitedwayri.org/alice/

In this episode

Nicolato explains ALICE—Asset Limited, Income Constrained, Employed—a framework developed because the federal poverty level doesn’t reflect the real cost of living.She says 43% of Rhode Island families, or about 190,000 households, fall into the ALICE bracket.A family of four in Rhode Island needs about $111,000 just to survive, while median income in key sectors such as hospitality, retail, call centers, and childcare is about $87,000.The conversation explores what a survival budget includes: housing, health care, taxes, child care, elder care, and unexpected costs like copays and medical bills.Nicolato says the federal poverty measure is outdated: it was created in the 1960s to measure food costs, not modern household needs.They discuss frontline workers—including childcare workers, construction laborers, cashiers, wait staff, and landscapers—who are essential to Rhode Island’s economy but still struggle financially.Nicolato points to equity gaps: 63% of Hispanic households, 56% of Black households, and 64% of households headed by someone 65 or older are in the ALICE category.She describes United Way’s Family Stability Initiative, which supports families over about 18 months and helps participants move from crisis toward stability.She highlights other programs, including the Good Neighbor Energy Fund, 211, SNAP navigation, and VITA, which brought $23 million back into Rhode Island last year.The discussion considers nonprofits’ role as a quasi-public infrastructure layer, especially as funding tightens and demand increases.Nicolato argues nonprofits should be treated as mission-driven businesses, with more stable planning, accountability, and support from state and federal government.

Timestamps

00:00 — Introducing the ALICE study and Rhode Island’s cost-of-living crisis
 01:19 — Why ALICE captures need better than the federal poverty level
 02:00 — A family of four needs $111,000 just to survive in Rhode Island
 03:18 — What goes into a survival budget beyond rent and groceries
 04:45 — Why the 1960s poverty formula no longer fits modern life
 05:37 — Frontline workers who keep Rhode Island running but still struggle
 06:32 — Multiple jobs, shame, and barriers to upward mobility
 07:44 — The equity gap for Hispanic, Black, and older households
 08:35 — Turning data into action through United Way’s Family Stability Initiative
 09:31 — Helping families move from crisis to stability with financial coaching and housing support
 10:00 — Utility aid, 211, SNAP help, and $23 million returned through VITA
 11:25 — How nonprofit funding strain compounds the state’s social problems
 12:24 — Why nonprofits need to be treated like essential infrastructure
 13:50 — Supporting nonprofits with legal help, resource sharing, and advocacy
 15:16 — The case for long-term planning instead of yearly budget chaos
 17:14 — Why nonprofits often run state programs better, cheaper, and faster
 18:27 — Collaboration between nonprofit, private, and government sectors
 19:03 — Where to find the ALICE data and Rhode Island-specific report

Notable quotes

“Data is knowledge, but what you do with it matters.”“They are trying their damnedest and doing the most that they can. It is the system that has not allowed them to do the things that they need to do.”“We’re running it better, cheaper, faster.”

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