# Presentation: 716749

## Welcome!

- AFI Program Overview
- Grant Application Process

## Webinar Logistics

- If you have _technical difficulties_ with hearing or viewing this presentation, please **press *0** or contact
- 	Devin Tucker
- 	703-383-3318
- If you prefer to listen to the _audio only_
- 	Dial: 1-888-390-4470
- 	Pass code:  AFI

## Webinar Logistics

- Useful Resources
- AFI Project Builder: Guide for Planning an AFI Project
- Prior Webinar Recordings
- Program webpage _[www.acf.hhs.gov/assetbuilding](http://www.acf.hhs.gov/assetbuilding)_
- AFI Resource Center
- Email:  	_[afiprogram@acf.hhs.gov](mailto:afiprogram@acf.hhs.gov)_
- Call:	202-401-4626

## Today’s Agenda

- Orientation to Assets for Independence
- AFI Resource Center
- Overview of Asset Building Strategies and Individual Development Accounts
- How AFI Projects Work
- Key Features of Successful Projects
- Applying for an AFI Grant
- Questions / Answers / Discussion

**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.

## AFI Resource Center

- Application kits
- Advice / facilitation on planning a project, developing partnerships with community groups, establishing strong relationships with financial institutions, and so forth
- Tools for IDA projects, proven strategies, best practices
- Regular conference calls on IDAs and asset- building topics
- Listserv with helpful information

***Asset-based policies measure well-being not only by income, but also in terms of building human capital and financial assets.  They... reward work, promote initiative and self-reliance, and embody beliefs about fairness and opportunity.... They focus not just on meeting short-term needs but on building assets for the long-term.***
**Larry W. Beeferman**
**Harvard University**

**Asset Building**

**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.

## Asset Building

*An anti-poverty strategy* that creates greater self-sufficiency
*A tool to build wealth* through appreciating assets, such as higher education, vocational training, small business, and homeownership.
*A catalyst that creates economic “momentum”* that can help individuals and families escape poverty permanently.

**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.

## Asset Building Policy

**Homeownership**
- Mortgage and property tax deduction
- First time homebuyers
**Education**
- Student Loans
- GI Bill
- 529 accounts (college savings)
**Small Business**
- Capital improvements
- Workforce development
**Other**
- Retirement 401k, 403b, IRA
- Earned income tax credit
- 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.

## IDAs -- Individual Development Accounts 

- Special purpose matched savings accounts held in banks or credit unions.
- IDA participants deposit earned income regularly – they accumulate savings in the IDA to acquire an economic asset.
- Participants receive financial education,  asset-specific training, and coaching while they save.

**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

## How do IDAs Help?

- Encourage savings habits –
- Creates an incentive to save
- Bank the un-banked –
- Develops a relationship with mainstream financial institution. Avoids payday lending stores and fees.
- Create a legacy of wealth -
- Financial education training and asset ownership creates stability and a focus on long-term goals. Provides families with a financial cushion.

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

Matched 

Restricted

Savings in banks

For low-income families

The purpose – regular savings for an economic goal.

## Assets for Independence Program 

- Funding for IDA projects across the nation
- Administers on-going evaluation and knowledge development about the impact of IDAs
- Manages the AFI Resource Center with  information and tools for grantees, partners and the asset building field
- Supports cutting-edge policy

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

Matched 

Restricted

Savings in banks

For low-income families

The purpose – regular savings for an economic goal.

## Assets for Independence Program

- 400+ active AFI Projects
- 1300+ organizations providing IDA services
- Located in most every state
- Nearly 54,000 IDA accounts and growing
- $45 Million saved in AFI IDAs
- 19,000+ assets purchased
- Positive research findings

- Community Action Agencies
- Community Development Corporations
- United Ways
- Credit Unions
- Public Housing Authorities
- Nonprofit Housing Developers
- Youth Organizations
- Native American entities
- State / Local governments
- Others

**AFI Grantees**

## Effective AFI Grantees

- Mission of preventing poverty and improving family self-sufficiency
- Open to partnering with others to ensure adequate programming in housing, micro-enterprise, or higher education
- Comfortable working with credit unions, banks or other financial institutions

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

Matched 

Restricted

Savings in banks

For low-income families

The purpose – regular savings for an economic goal.

## Grantee Eligibility

- Non-profit with 501(c)(3) status
- Government agency that applies jointly with a non-profit
- Certified Community Development Financial Institution
- Low-Income Designated Credit Union

## How AFI Projects Work

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

## Assets for Independence Projects

- 	Five-year grants that enable low-income people to ...
- Learn about financial and consumer issues
- Save in Individual Development Accounts
- In order to ...
- acquire a home
- access higher education or training and/or
- start or support a small business
- save to transfer to a child or spouse

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

Matched 

Restricted

Savings in banks

For low-income families

The purpose – regular savings for an economic goal.

## 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.
- Grantees may have additional requirements.
- Project Builder 3.A, Appendix B

## Example:  “Kim”

- Kim needs a home
- Housing program requires $6,000 for down payment and closing costs
- She receives 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**

## Accountholder Responsibilities

- Follows terms of a Savings Agreement with the grantee
- Deposit savings consistently
- Complete financial education / training
- Actively plan their asset purchase
- Meet other project requirements
- Credit counseling
- Home counseling
- Small business plan and training
- Orientation/academic planning for college or vocational education
- Responsibilities spelled out in Savings Plan Agreement (SPA)

## Features of Every Successful  AFI Project

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

## Planning Your AFI Project

- Funding – Federal and Non-Federal
- Project Reserve Fund
- IDA Matching Structure
- Savings Plan Agreement
- Accountholder Eligibility
- AFI2 system

## Funding

- Five-year Federal AFI grants
- Must have commitments of cash support from non-Federal sources equal to or greater than the Federal grant.

## Project Reserve Fund

**PROJECT RESERVE FUND**
**$200,000**

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

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

## Allowed Uses of Money Held in the Project Reserve Fund

- 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 Partners

- Financial institutions
- Foundations: especially local, regional
- United Ways
- 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 to
- $8 match for $1 earned income saved
- Maximum amount may vary
- Maximum _Federal_ Contribution
- $2000 per individual
- $4000 per household
- Project Builder 3.A, 3.D; Appendix D; Appendix G

## AFI2 -- A Tool for All AFI Grantees

- Free, web-based tool
- Track and manage funding, participants, services, asset purchases, reporting and key documents
- Training and on-going support for users
- Captures data for reporting
- Maintains data for evaluation and AFI-supported knowledge development and research

## Preparing a Successful AFI Application

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

## Three application cycles annually
		January 15
March 25
June 25
Up to $1,000,000 (average $350,000)
$19,000,000 in total funding annually
55-65 projects funded annually

- Three application cycles annually
- 		January 15
- March 25
- June 25
- Up to $1,000,000 (average $350,000)
- $19,000,000 in total funding annually
- 55-65 projects funded annually

**Application procedures**

## Application procedures

- Five sections
- Approach
- Organizational Profile
- Results or Benefits
- Budget and Budget Justification
- Project Summary or Abstract
- Forms and assurances

## Criterion:  Approach (Total 50 pts)

- Subsections –
-  Work plan
-  Tax services
-  IDA Design Features
-  Partnerships
-  Participate in national evaluation
-  Participants

## Approach: Work Plan (20 pts)

- Outline your plan
- Include annual and intermediate goals for key activities: recruit and enroll participants, create IDAs, asset purchases, and so forth.
- Use the AFI 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.acf.hhs.gov/assetbuilding/afihome.html](http://www.acf.hhs.gov/assetbuilding/afihome.html)_
- Project Builder 3.I

## Approach: Tax Services (3 pts)

- Access to tax filing assistance services
- Tax filing module in financial literacy classes
- Outreach for EITC and Child Tax Credits

## Approach: IDA Design Features (5 pts)

- What match rate will your project use?
- What’s the rationale for 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 (12 pts)

- List partners
- Financial Institution Partner
- Service or referral partners
- Training partners
- Other services
- Partnership commitment / MOUs
- Project Builder 3.G, 3.H; Appendix J, Appendix K

## Approach: Information for National Evaluation (5 pts)

- Three commitments:
- Will use AFI2 or another electronic system
- Provide data for national demonstration
- Provide progress and fiscal reports and annual data report to ACF
- Project Builder 3.J

## Approach: Participant Description (5 pts)

- Identify community(ies) that will be the focus of your IDA project
- Strengths and challenges
- Needs and potential
- Demographics or economic characteristics
- Project Builder 3.A, 3.E; Appendix C, Appendix F

## Organizational Profile (30 pts)

- Describe your organization and partners
- Explain your organization’s capacity to succeed with an AFI grant
- Identify key staff or provide job descriptions
- Describe nonfederal funders
- 	--  Who are the partners?
- 	--  What will they contribute?
- 	--  Provide documentation of commitment
- Project Builder 3.F

## Results and Benefits Expected (13 pts)

- Link your proposed outcomes to the AFI program-wide outcomes
- Amount of IDA savings used for asset purchase
- Number of participants who make asset purchase
- Ratio of earned income participant savings relative to Federal AFI funds invested
- Demonstrate understanding of AFI performance indicators for project management
- AFI Performance Management Initiative:
- _[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)
- Narrative 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 summary of 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 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

- Up to 40 pages of narrative + attachments
- Attachments include commitment letters, MOUs, and required 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 Submission Information

- Due date: **June 25th, 2008**
- _Received_ by 4:30 p.m. Eastern time
- Submit either
- 	- electronically via Grants.gov; or
- 	- in paper format
- Mail Address:
- Office of Community Services Operations Center
- Assets for Independence Program
- 1515 Wilson Blvd, Suite 100
- Arlington, VA 22209
- Telephone: 1-800-281-9519

## Other Resources

- Center for Social Development:
- _[http://gwbweb.wustl.edu/csd](http://gwbweb.wustl.edu/csd)_
- United Way of America:
- _[www.liveunited.org/income/index.cfm](http://www.liveunited.org/income/index.cfm)_
- IDA Network:
- _[http://www.idanetwork.org](http://www.idanetwork.org/)_
- New America Foundation:
- _[www.assetbuilding.org](http://www.assetbuilding.org/)_
- Project Builder: Appendix A

## Upcoming AFI Webinars

- Tips for Writing a Winning AFI Application and Designing a Strong IDA Project
- 	Wednesday, May 21, 2008; 2:00 – 3:15 p.m.
- Program Overview and How to Apply
- 	Thursday, May 29, 2008:  2:00 – 3:15 p.m.
- Tips for Writing a Winning AFI Application and Designing a Strong IDA Project
- 	Tuesday, June 3, 2008:  2:00 – 3:15 p.m.

## Previous AFI Webinars

- Recordings of Previous Presentations
- Available from the AFI Resource Center
- Cost Sharing
- AFI Project Design and Implementation (Part 1)
- AFI Project Design and Implementation (Part 2)

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