# Presentation: 018156

## Welcome!

- AFI Program Overview & Grant Application Process

## AFI Orientation and Overview

- First of series of four webinars
- Overview and Application Process
- Non-federal Cost Share
- Project Design and Implementation Part 1
- Project Design and Implementation Part 2
- All topics are repeated and downloadable
- Schedule, registration and download application kit and other links at:
**http://www.acf.hhs.gov/programs/ocs/afi/afi_calendar.html**

## AFI Orientation and Overview

- If you have _technical difficulties_ with hearing or viewing this presentation, please **press *0** or contact:
- Stephanie Dodge
- 703.279.6256
- SDodge_[@](mailto:Dtucker@icfi.com)__[icfi](mailto:Dtucker@icfi.com)__[.com](mailto:Dtucker@icfi.com)_
- If you have not received materials, contact the AFI Resource Center:
- _[afiprogram@acf.hhs.gov](mailto: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/grant_application_presentation.html

## AFI Orientation and Overview

- Materials for this call downloadable from:
- 	http://www.acf.hhs.gov/programs/ocs/afi/outreach_presentations/grant_application_presentation.html
- This presentation
- Project Builder
- Application Kit
- Program Announcement
- Contact AFI Resource Center for materials or for follow up questions:
- _[afiprogram@acf.hhs.gov](mailto:afiprogram@acf.hhs.gov)_; 202-401-4626

## Preview

- Asset Building
- Individual Development Accounts
- Assets for Independence Program
- AFI Projects
- Applying for Funding

**Notes:**
So why are we focusing on wealth creation – and wealth accumulation – asset building?

Simply put, because it makes a positive difference.

Research shows that families who have been able to save or otherwise develop wealth are better off in many ways.

They are better off economically, sociologically, and even physically.

And so are their children.

They plan for the future.

They have hope.

***“******Few people have ever spent their way out of poverty. Those who escape do so through saving and investing for the long-term.”***
***“******Income may feed their stomachs, but assets change their heads.” ***
- Michael Sherraden
- Center for Social Development

**Notes:**
Dr. Michael Sherraden from the Center for Social Development at Washington University in St. Louis really put this idea “on the map” about ten years ago.

He wrote about it in his importantn book, Assets and the Poor.

Dr. Sherraden is the “father” of the IDA movement.  His research is what has spawned this concept – along with support from other academies, federal government, and private foundations.

## Economic Assets Matter

- Stronger, Healthier Families
- Enhanced Self-Esteem
- Long-term Thinking and Planning
- More Community Involvement
- Hope for the Future

**Notes:**
So why are we focusing on wealth creation – and wealth accumulation – asset building?

Simply put, because it makes a positive difference.

Research shows that families who have been able to save or otherwise develop wealth are better off in many ways.

They are better off economically, sociologically, and even physically.

And so are their children.

They plan for the future.

They have hope.

## Support for Asset Building 

- Federal government supports asset-building across income levels
- Homeownership Support
- Small Business Development
- Education / Careers
- Individual Development Accounts

**Notes:**
So why are we focusing on wealth creation – and wealth accumulation – asset building?

Simply put, because it makes a positive difference.

Research shows that families who have been able to save or otherwise develop wealth are better off in many ways.

They are better off economically, sociologically, and even physically.

And so are their children.

They plan for the future.

They have hope.

## Individual Development Accounts 

- Specialized savings account designed to help low-wealth Americans acquire an appreciating asset. Accountholders deposit savings in their account and that saving is matched by host agency.
- Designed to enable and encourage accountholders to save on a regular basis and acquire their asset.
- While accountholders build savings and match, they also receive financial education and asset-specific training to help prepare them to take best advantage of the opportunity at hand.

**Notes:**
What are IDAs – a generic definition....

Matched 

Restricted

Savings in banks

For low-income families

The purpose – regular savings for an economic goal.

## IDAs: A Hand-Up To Self-Sufficiency

- Transform
- to Assets

- Save

- Self-
- Sufficiency

## Assets for Independence   

- 	Special federally funded 5-Year projects that enable accountholders to ...
**Learn** about financial and consumer issues
**Save **in Individual Development Accounts
- In order to ...
- acquire a first home
- access higher education or training and/or
- start or support a small business
- save to transfer to an eligible dependent

**Notes:**
What are IDAs – a generic definition....

Matched 

Restricted

Savings in banks

For low-income families

The purpose – regular savings for an economic goal.

## AFI Participants

- 368 active AFI Projects; 258 organizations
- Nearly 44,000 IDA accounts and growing
- $36.8 Million saved in AFI IDAs
- 13,000+ asset purchases
- 76% of participants are women
- 75% households with children
- 44% African American; 27% White; 18% Hispanic

## AFI Projects

- Multi-purpose non-profits that provide a menu of services for low-income families (single agency)
- Public/Private Partnerships including state, local or tribal governments
- Multi-site networks
- Find a project near you by going to:
- http://www.acf.hhs.gov/assetbuilding/states.html

## Single Agency Project

## AFI Network Project

## Participant’s Perspective

**Notes:**
Welcome
I am
Thanks
Lidia
Interagency Group
Who’s Here?

## Example:  “Kim”

- Kim needs a home
- Housing program requires $6,000 for down payment and closing costs
- Financial Education, debt counseling and information about home ownership
- Match rate of $2 for every $1 saved in her IDA
- Kim saves $2,000: $55/month over 3 years

## Kim’s IDA

**$2000 **
**Savings**

**$4000 **
**Matching**

**$6000 for**
**Home**

**$2,000 Federal**

**$2,000 Non-Fed**

**$2,000 Kim Saves**

## Example:  “Bill” 

- Bill is looking to start a new business
- He needs $5,000 in capital
- Financial Education, debt counseling and training in starting and operating a business
- Match rate of $4 for every $1 saved in his IDA
- Bill saves $1,000 -- $42/month over 2 years

## Bill’s IDA

**$1000 **
**Savings**

**$4000 **
**Matching**

**$5000 for**
**Small**
**Business**

**$2,000 Federal**

**$2,000 Non-Fed**

**$1,000 Bill Saves**

## Accountholder Responsibilities and Benefits

**Responsibilities**
- Deposit savings consistently
- Complete financial & asset-specific education
- Repair credit?
- Lead search for their own long-term asset
- Meet other project requirements, such as credit repair, asset training

**Benefits**
- Develops long-term savings habit
- Gains financial ed and asset-specific  knowledge
- Develops esteem and makes long-term goals seem achievable
- Gains long-term asset

## Host Agency’s Perspective

**Notes:**
Welcome
I am
Thanks
Lidia
Interagency Group
Who’s Here?

## Host Agency Benefits

- Helps agency carry out its mission
- Introduces/enhances community partnerships
- Brings new business to agency
- Often develops new agency competencies

## Host Agency’s Responsibilities Pre-award

- Examine agency’s desire and capacity to run an IDA program
- Identify non-federal funding
- Identify partners to help deliver services
- Develop a successful proposal

## Key Topics for Planning an AFI Project

- Funding – Federal and Non-Federal
- Project Reserve Fund Guidelines
- IDA Matching Structure
- Savings Plan Agreement
- Accountholder Eligibility
- Other topics addressed in later calls, e.g.,
- Financial education
- Recruitment/enrollment
- Asset purchase process
- Reporting

## Funding

- Five-Year Project Grants
- Must have firm commitments of cash support from Non-Federal sources.
- The commitments must be equal to or greater than the Federal grant amount requested.
- Work on this ASAP!

## Project Reserve Fund

**PROJECT RESERVE FUND**
*insured financial institution*
**$200,000**

**Federal Grant**
**$100,000**

**Non-Federal**
**$100,000**
**(Cash only)**

## Allowed Uses of Project Reserve Funds

- At least 85% to match IDA savings
- Up to 13% for financial education and other project costs
- At least 2% for data collection

## Non-Federal Funding -- Examples

- Financial institutions
- Foundations: especially local, regional
- United Way organizations
- Corporations / Employers
- Faith-based organizations
- State and local governments
- Individuals
- Project Builder: 3.D; Appendix D

## IDA Matching Structure

- IDA Savings Match Rates can range from
- $1 match for $1 earned income saved to
- $8 match for $1 earned income saved
- Maximum amount participant can save and be matched may vary
- Maximum _Federal_ Contribution
- $2000 per individual
- $4000 per household
- Project Builder 3.A, 3.D; Appendix D; Appendix G

## Elements in Savings Plan Agreement

- Total Amount to be saved and financial institution options
- Schedule of deposits: frequency, amount
- Asset to be purchased
- Match rate per $1 of earned income saved
- Maximum savings to be matched
- Financial education requirements
- Asset-specific training
- Other key policies or procedures related to the participant becoming eligible for a matched withdrawal
- Project Builder 3.D, Appendix D, Appendix E

## Participant Eligibility

- TANF eligible _**OR**_
- EITC eligible or annual household income less than twice poverty (about $40,000 for family of four)
- _AND_
- Net worth less than $10,000 excluding value of a residence and one motor vehicle per household.
- Administering agencies may have additional requirements.
- Project Builder 3.A, Appendix B

## Preparing a Successful AFI Application

**Notes:**
Welcome
I am
Thanks
Lidia
Interagency Group
Who’s Here?

## Multiple application cycles annually, through 2010 
FY 2008 application cycles 
January 15, 2008 (2009, 2010)
March 25, 2008 (2009, 2010)
Up to $1,000,000 (average $350,000)
$19,000,000 available
55-65 funded projects annually

- Multiple application cycles annually, through 2010
- FY 2008 application cycles
- January 15, 2008 (2009, 2010)
- March 25, 2008 (2009, 2010)
- Up to $1,000,000 (average $350,000)
- $19,000,000 available
- 55-65 funded projects annually

## Application procedures

- Proposals will be reviewed by a panel of experts in IDA and AFI IDA implementation
- Please follow application instructions as listed in the Application Packet closely
- Five general sections:
- Project Summary or Abstract
- Organizational Profiles
- Approach
- Results or Benefits
- Budget and Budget Justification
- Some have subsections
- Standard forms and assurances

## Criterion:  Approach (Total 50 pts)

- Half of the review points
- How your program will operate
- How your program will staff the project, develop partnerships, develop operations plan, recruit and select participants, deliver classes, provide assistance to accountholders, assist in purchasing an asset - all will be described here

## Approach: Work Plan (20 pts)

- Outline what you will do when
- Include  targets or benchmarks at regular intervals
- Link to key project activities: recruitment, enrollment, IDAs open, asset purchases, etc.
- Link to AFI Project Management Indicators and AFI Program Outcomes
- Increase in amount of IDA savings used for asset purchase
- Increase in number of participants who make asset purchase
- Increase in ratio of earned income participants save relative to Federal AFI funds invested
- AFI Performance Management Initiative:
- _[http://www.](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[acf](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[.](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[hhs](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[.](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[gov](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[/](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[assetbuilding](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[/](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[afihome](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[.html](http://www.acf.hhs.gov/assetbuilding/afihome.html)_
- Project Builder 3.I

## Approach: Tax Services (3 pts)

- Tax filing module in financial literacy classes
- Tax filing assistance program
- EITC claims
- Child Tax Credits
- Policy for depositing tax refunds in IDA

## Approach: IDA Design Features (5 pts)

- What will your match rate be?
- How did you determine the match rate?
- What it takes to purchase assets in your community
- Discuss capability to save of typical accountholder in your community
- Project Builder 3.D, 3.A; Appendix C, Appendix E

## Approach: Partnerships and Collaborations (12 pts)

- Who will be your partners?
- What will they do for you?
- Financial Institution Partner
- Service or referral partners
- Training partners
- Other services
- Do you have letters of commitment for the partnership or clear roles defined in MOUs?
- Project Builder 3.G, 3.H; Appendix J, Appendix K

## Approach: Evaluation (5 pts)

- Three commitments
- Will use an electronic MIS system like AFI2
- Commit to full participation in national demonstration
- Provide timely data to OCS via regular reports and annual data collection
- Project Builder 3.J

## AFI2 Summary

- Free, web-based tool
- Track and mange funding, participants, services, asset purchases, reporting and key documents
- AFI Resource Center provides training and on-going support for users
- Capture data for most reporting requirements
- Will automatically populate the annual on-line data report

## Approach: Participant Description  (5 pts)

- Identify types of individuals or families that you will target for recruitment and enrollment
- Identify and describe the characteristics of the community(ies) where you will focus your IDA program
- Strengths and challenges
- Needs and potential
- Demographics or economic characteristics
- Basis for your program design
- Project Builder 3.A, 3.E; Appendix C, Appendix F

## Organizational Profiles (30 pts)

- Discuss your organization and your partners
- Do you have the capacity to do what you say you will do (10 pts)
- Not necessary to already be engaged in IDAs
- If you can identify key staff, do so here or provide job descriptions (10 pts)
- Nonfederal cash contribution (10 pts)
- How much
- From whom
- Documentation of commitment
- Project Builder 3.F

## Results and Benefits Expected (13 pts)

- Link your outcomes to overall AFI program-wide outcomes
- Increase in amount of IDA savings used for asset purchase
- Increase in number of participants who make asset purchase
- Increase in ratio of earned income participant savings relative to Federal AFI funds invested
- Demonstrate understanding of framework of AFI grantee-level performance indicators for project management
- AFI Performance Management Initiative:
- _[http://www.](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[acf](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[.](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[hhs](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[.](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[gov](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[/](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[assetbuilding](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[/](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[afihome](http://www.acf.hhs.gov/assetbuilding/afihome.html)__[.html](http://www.acf.hhs.gov/assetbuilding/afihome.html)_

## Results and Benefits Expected (13 pts)

- AFI program-wide outcomes
- Based on a set of Performance Management Indicators for grantees and for OCS
- Use indicators to set local benchmarks
- Use indicators to manage project
- Results in achieving AFI program-wide outcomes
- Review the performance management indicators at:
- _[http://www.acf.hhs.gov/assetbuilding/afihome.html](http://www.acf.hhs.gov/assetbuilding/afihome.html)_

## Budget and Justification (5 pts)

- 424: Request for Federal Assistance:
- Total project figures: Federal, nonfederal sources, including applicant
- 424-A Budget Non-Construction Programs:
- Reflect AFI spending guidelines (e.g., 85/15)
- Detailed Budget:
- Explain line items in detailed budget with a narrative
- Consistent budget figures in all three places
- Provide letters or other documentation to prove non-federal match is committed
- Make sure budget jibes with your work plan!
- Project Builder 3.K, Appendix N

## Project Summary (2 pts)

- One page
- Summarizes the key features of the application
- Goals
- Target communities
- Match rate(s), maximum savings
- Number of IDAs and asset purchases planned
- Key partner organizations
- Financial institution partner
- Sources/amounts of nonfederal funding

## Bonus (up to 5 pts total for this component)

- Collaboration or coordination with other community development or revitalization initiatives
- Integration of asset building with other vital initiatives
- Collaboration with designated types of organizations
- Collaboration with TANF or workforce agencies
- Other interests per program announcement
- Detail the interaction

## Application Submissions

- Can include up to 40 pages of narrative + attachments
- Attachments include commitment letters, MOUs, and required federal forms
- Please clearly number all pages and attachments

## Application Submissions (continued)

- If your agency is nonprofit, provide proof of 501c(3) status; or
- Treasury certified CDFI; or
- NCUA certified low-income designated Credit Union
- Public agencies may apply with non-profit partner
- Lead organization signs/submits proposal
- Networks or collaboratives may apply with lead organization

## Application Instructions

- Please include:
- Project summary
- Project narrative
- Standard form 424
- Standard form 424A
- Budget and justification
- Other required forms and assurances per program announcement

## Application Instructions (continued)

- Please include:
- Standard Form 424B
- Certification regarding lobbying
- Standard Form LLL
- Proof of non-profit status
- Proof of Low-Income Credit union status (if applicable)
- Proof of CDFI status (if applicable)
- Project Builder: Appendix O

## 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
- Telephone: 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 25th, 2008**
- Prepare _[www.grants.gov](http://www.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. 19
Tuesday, Mar. 4 |
| --- | --- |
| Cost Sharing: Raising Non-Federal Resources | Thursday, Jan. 31
Thursday, Feb. 21
Thursday, Mar. 6 |
| 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](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)_
- Application kits
- Project Builder
- Application forms
- Program announcement
- Technical information on AFI IDA implementation
- _[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](http://www.idanetwork.org/)_
- New America Foundation:
- _[www.assetbuilding.org](http://www.assetbuilding.org/)_
- Project Builder: Appendix A

##             Contact Information

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