Fiscal Intermediary
Many people have experienced challenges to independent living due to challenges in financial literacy. A person does not have to let this prevent them from fulfilling their dreams. For instance, today my computer would not do what I wanted it to do. I did not have the experience, skills, or ability to fix this problem without help. I called a friend that works with computer programs and I called my brother who has great technical skills. These two individuals served as supports to help me bridge the gap and here I am creating this document for you. In the same way people can utilize supports for the financial needs and still have choices. Below we will cover ways fiscal intermediaries are used in business and how people with financial literacy challenges can use fiscal intermediaries.
The commonly used method in the past for letting others make decisions and doing personal tasks for an individual has been guardianship, for more specific information on this topic, please see the Setting Up Legal Supports: Guardianship or Directives article in the Housing Planning Library. While this has been good choice for many and is still a viable option today, there are some factors that must be considered. First, for many it does limit one's ability to sign leases, obtain a mortgage in the individual's name, and get a credit rating. A fiscal intermediary provides a different option to those who need financial assistance and not want to delegate this personal power guardianship. Self-determination (please refer to the Self Determination and Housing article in the Housing Planning Library) and individual budgets also use fiscal intermediaries for functions such as paying rents, utilities, allowances, and all daily living expenses. A person can choose to have a few of their expenses paid through an intermediary or all of them.
Fiscal intermediary is not a term created in the mental health system, rather it is a legal instrument used in many forms. The financial intermediary can be an institution, firm or individual who performs intermediation between two or more parties in a financial context. Typically the first party is a provider of a product or service, and the second party is a consumer or customer.
In the U.S., a financial intermediary is typically an institution that facilitates the channeling of funds between lenders and borrowers indirectly. That is, savers (lenders) give funds to an intermediary institution (such as a bank), and that institution gives those funds to spenders (borrowers). This may be in the form of loans or mortgages. Alternatively, they may lend the money directly via the financial markets, which is known as financial disintermediation.
Types of Financial Intermediaries include: banks, building societies, credit unions, financial advisers or brokers, insurance companies, collective investment schemes, and pension funds.
People have used family and friends to be Financial Intermediaries. There are also agencies that provide this service, including the following agencies:
- Oakland County Lighthouse 248-920-6100
- Oakland Livingston Human Service Agency (OLSHA) 248-542-5860 or 248-209-2600
- The local chapter of the ARC for persons with developmental disabilities