# Presentation: 716751

## Welcome!

- Nonfederal Cash Contributions
- for AFI IDAs

## AFI Nonfederal Cash Contributions to AFI

- Second in a series of four webinars
- Overview and Application Process
- Project Design and Implementation Part 1
- Project Design and Implementation Part 2
- All topics are repeated and downloadable
- Schedule, registration and download links at: http://www.acf.hhs.gov/assetbuilding/assets_for_webinar.html

## AFI Nonfederal Cash Contribution

- If you have technical difficulties with hearing or viewing this presentation,  please **press *0** or  contact Devin Tucker
- 703.383.3318
- Dtucker@icfi.com
- If you have not received material, contact the AFI Resource Center:
- Afiprogram@acf.hhs.gov;
- 202.401.4626
- The call will be recorded and posted at:
- http://www.acf.hhs.gov/programs/ocs/afi/outreach_presentations/cost_sharing_presentation.html

## AFI Nonfederal Cash Contribution

- Materials for this call are in downloadable form
- http://www.acf.hhs.gov/programs/ocs/afi/outreach_presentations/cost_sharing_presentation.html
- This presentation
- Project Builder
- 12 New Ways to Fund Your AFI Project
- Contact the AFI Resource Center for materials or with follow up questions:
- Afiprogram@acf.hhs.gov: 202.401.4626

## Agenda

- AFI Nonfederal Cash Contribution Requirements
- Possible Sources for the Nonfederal Cash Contribution
- Strategies for Developing Nonfederal Funds
- Questions and Answers

## Nonfederal Cash Contributions

- Dollar for Dollar match of the Federal Grant Amount (in cash)
- Used for same activities and purposes as Federal funds
- Must be documented in application

## Slide 7

## Project Reserve Fund Uses

**At least 85% to match IDA savings**
**Up to 13% for financial education and other activities**
**At least 2% for data collection**

## Elements of Nonfederal Share Agreement  

*Commitment letter clearly states:*
*Total amount awarded to AFI Project and distribution method*
*Funds used exclusively to support AFI Project*
*Signature by Official of Funding Source*
*Commitment may be contingent on AFI grant*

## Common Sources of Non-Federal Funding

- Financial Institutions
- State and Local Governments
- Tribal Governments
- Federal Home Loan Banks
- Foundations
- Community Development Block Grants (only allowable Federal source)

- Corporations/Employers
- Individuals
- Places of worship
- United Way Organizations

## Less Common Nonfederal Cash Contributions

- State Tax Credits
- Business Associations
- Employer Supported
- Sponsorships
- Realtor Donations

- National Faith-Based Organizations
- Fundraising Events
- On-line Donations

## Example:  Faith-based Organization

- AFI Grant:	$1 million
- Nonfederal Support: 	$3,222,947
- Main Non-Federal Source:	National Faith-based Association
- Number of accounts: 	425
- Participant match rate: 	$2 to $1, up to $2,000
- Service area: 	Local
- Applicant: 	Faith Based Community Development Corporation

## Example: Utah IDA Network

- AFI Grants (2): 	$100,000 and $350,000
- Nonfederal Support: 	$100,000 and $350,000
- Non-Federal Sources:	Financial institutions, Private corporations, foundations
- Project Period: 	2004-2009 and 2006-1011
- Number of Accounts:	158
- Participant Match Rate: 	$3:$1 up to $1500
- Service Area: 	State of Utah
- Applicant: 	AAA Fair Credit Foundation

## Racine Weed & Seed

- AFI Grants: 	$120,000
- Nonfederal Support: 	$240,000
- Non-Federal Source:	City of Racine Housing Board
- Project Period: 	October 2006 - 2011
- Number of Accounts:	60
- Participant Match Rate: 	$5 to $1 up to $1,000
- Service Area: 	Racine Weed & Seed neighborhoods
- Applicant: 	City of Racine

## Example: Statewide Network

- AFI Grant: 	$590,000
- Nonfederal Support: 	$2,217,600
- Non-Federal Sources:	Banks, State Gov’t, Foundations
- Number of Accounts:	339
- Participant Match Rate: 	$3 to $1 up to $2,000
- Service Area: 	Statewide
- Applicant: 	Community Development Financial Institution. Collaborative structure.

## Fundraising means...

- ...never having to say you’re *finished*!

## Tips for Non-Federal Fundraising

- Relationships matter – use your network
- Plant seeds – show what you’ve done
- Develop partnerships and know the priorities of your partners
- Align your IDA program with other development priorities

## Questions to Help Develop Your Pitch

*For each of your asset goals*
- What are the ultimate goals of this IDA program?
- Aside from the IDA account-holders, who else shares these goals?
- Are your IDAs also *Community* Development Accounts?
- Who else benefits from your success?
- Private Sector:  Lenders, Education & Training Institutes, etc.
- Public Sector:  Local Government, CDCs, etc.
- Community Development Sector:  Specific communities, neighborhoods

## Identify Stakeholders for Each Asset Goal

*Examples:*
- Post-Secondary Education / Vocational Training
- Education & Training Institutes
- Scholarship Funds
- Foster Youth Programs
- Small Business
- State Dept of Labor, Workforce Development
- Banks and Credit Union Lenders
- Business incubators
- Homeownership
- Mortgage Lenders
- Housing Authorities
- Local Government

## Benefits of IDAs in Your Community

- On average $100,000 funds 50 IDAs
- It is estimated that IDAs have a 5:1 return on investment, five times the return per dollar invested
- $100,000 in AFI money produces 500,000 in complementary federal subsidies

## Benefits of IDAs in Your Community (Lenders)

- Increased customer base and earnings through:
- Mortgage loans
- $4 million in mortgage loans based on a $80k loan
- Customer loans
- Average loan size of $11,400 yields $570,000 in small business loans
- Example: In Utah self-employment accounts for 16.5% of workforce

## Benefits of IDAs in Your Community (Local Business)

- Homes
- Income to realtors, appraisers, home furnishings, home repair
- Education
- Salaries, school-related purchases, educated work force attracts new business to community
- Small business
- In fiscal year 2007, Utah SBA district guaranteed loans  of over $408million a 39% increase from previous year

## Benefits of IDAs in Your Community (Local Govt.) 

- Property taxes
- Higher earnings bring greater tax base
- Neighborhoods revitalized
- Crime reduced

## Questions & Answers

- Instructions to ask questions.
- Please state your name and organization.

## 12 New Ways to Fund Your AFI Project 

- Creative Strategies from the Field
- AFI funding requirement
- Sources of AFI funds
- Background on AFI funding sources
- All federal funds do not qualify as nonfederal cash contribution – but are good anyway

## Application Submission Information

- Due date: **March 25th, 2008**
- _Received_ by 4:30 p.m. Eastern time -
- see appendix M in Project Builder
- Address:
- Office of Community Services Operations Center
- Assets for Independence Program
- 1515 Wilson Blvd, Suite 100
- Arlington, VA 22209
- 1.800.281.9519

## Application Submission Information

- May submit using _[www.grants.gov](http://www.grants.gov/)_
- Must be submitted by 4:30 p.m. on March 25, 2008
- Prepare grants.gov submission well before due date
- Registration
- DUNS number
- Authorized signature

## AFI Orientation Call Series

- - Overview and Grant Application Process
- Tuesday. Jan, 29, Tuesday, Feb. 7 & Tuesday, Feb. 19
- - Cost Sharing: Raising Non-federal Resources	Thursday, Jan. 31 & Thursday, Feb. 21
- - AFI Project Design & Implementation, Part 1	Tuesday, Feb. 5 & Tuesday, Feb. 26
- AFI Project Design & Implementation, Part 2	Thursday, Feb. 7 & Thursday, Feb. 28
**All calls at 2 p.m. Eastern**
**Registration and document download: http://www.acf.hhs.gov/programs/ocs/afi/afi_calendar.html**

## AFI Resource Center

- _[www.acf.hhs.gov/assetbuilding](http://www.acf.hhs.gov/assetbuilding)_
- Project Builder
- Application forms
- Program announcement
- Technical information on AFI IDA implementation
- Fundraising and Resource Development for AFI Projects
- _[AFIprogram@acf.hhs.gov](mailto:AFIprogram@acf.hhs.gov)_
- 202-401-4626

## Other IDA Resources

- Center for Social Development
- _[http://gwbweb.wustl.edu/csd](http://gwbweb.wustl.edu/csd)_
- IDA Network -http://www.idanetwork.org
- New America Foundation - www.assetbuilding.org
-  Others can be found in the Project Builder in appendix A

## Contact Information

**AFI Resource Center**
**afiprogram@acf.hhs.gov**
**(202) 401-4626 **

**www.acf.hhs.gov/assetbuilding**