# Presentation: 141718

## Welcome!

- Developing Funds for AFI IDAs

## On Page 2 of Your Manual...

- Please take 5 minutes to answer the following:
- How would you describe your funding strategy for the AFI IDA?
- Describe your fundraising successes for your AFI IDA so far.
- What are your strengths in fundraising for the AFI IDA?
- What are your greatest challenges?

## Then, as a small group...

- Introduce yourselves and share your responses with each other.
- Pick one response from everyone at the table to share with the rest of the group.
- Consider choosing a response that is either representative of the rest of your group, or very unique from the rest of the group.
- Write these chosen responses on the flip chart provided.

## The Fundraising Context

- The _internal_ structure of the sponsoring organization and/or service provider network (collaborative)
- The _AFI IDA Project_ itself
- The _external_ world of funding sources and the general community in which the AFI IDA Operates

## The AFI Funding Mix

- What are the critical details of AFI legislation that affect raising nonfederal contributions?
- How does this help fundraising?
- How does this hinder fundraising?

## Slide 6

## Uses of AFI Project Reserve Account Funds

- 85% or more to match participant savings
- At least 2% for data collection
- Up to 5.5% for financial education
- Up to 7.5% for other

- Additional $ and In-Kind Resources

## Budgeting for the Match

**Budgeting for the Match**

**	****	****Number of Accounts Opened**
_**X**__**	**__**	**__**Match Ceiling**__**	**__**	**__**	**__**	**_
**=****	****	****TOTAL AMOUNT OF MATCH NEEDED**
**	****	****(& Your IDA Match Fundraising Target)**

## Newtown Community Action Agency Example

- 75 accounts
- $3,000 max. match per account
- $3,000 x 75 accounts
- = _$225,000_ in matching funds

- Budgeting for the Match

## Resource Allocation of the AFI Grant

**Resource Allocation of the AFI Grant**

**	****Amount of IDA ****	****Match Funds ****	****  **_**for Project   **__**	**_
**	****.85**

**Total IDA Match **_**and**_** 15% for Operating Costs**

**	**
**=****	**

**Then ****SUBTRACT**** the IDA Match Amount from the ****TOTAL**** to get the amount of the 15%****	**

## $225,000 in IDA participant match funds as goal
This comprises the 85% of the federal & nonfederal resources in the Project Reserve Fund.

$225,000 / 0.85	=	$264,706 (Total Fed/nonfed)
$264,706 - $225,000 = 	$39,706 (15% of AFI budget)

- This comprises the 85% of the federal & nonfederal resources in the Project Reserve Fund.
**$225,000 / 0.85****	****=****	**_**$264,706**_** (Total Fed/nonfed)**
**$264,706 - $225,000 =**** ****	**_**$39,706**_** (15% of AFI budget)**

- Budgeting for AFI’s 85/15

**Newtown Community Action Agency Example, Continued**

## Overview of Costs

- Match
- Financial Education
- Program Management
- Managing Partnerships
- Data Collection and Management
- Resource Development
- Financial Management
- Case Management
- Marketing and Recruitment
- Asset Related Training and Counseling
- Other Services
- Evaluation

## Federal Funding Sources (2006)

|  | Operating  |  | Match  |
| --- | --- | --- | --- |
| AFIA | 31% |  | 45% |
| DOL (Department of Labor) | 2.9% |  | 3% |
| HUD HOPE VI | 1% |  | 1.6% |
| HUD HOME | 1.3% |  | 2.5% |
| HUD CSBG (Community Service Block Grant) | 18% |  | 6.7% |
| HUD FSS (Family Self-Sufficiency) | 2.6% |  | 1.3% |
| ORR (Office of Refugee Resettlement | 11% |  | 11% |
| FHLB (Federal Home Loan Bank) | 1% |  | 8.4% |
| Bank Enterprise Award | 1.6% |  | 0.5% |
| Other | 15.8% |  | 15.8% |

## State and Local Funding Sources (2006)

|  | Operating |  | Match |
| --- | --- | --- | --- |
| TANF (Temporary Assistance for Needy Families) | 15.2% |  | 20.3% |
| State Tax Credits | 3.8% |  | 5.1% |
| State Discretionary Spending | 5.5% |  | 6.4% |
| Local Discretionary Spending | 3.5% |  | 3.5% |
| CDBG (Community Development Block Grant) | 8.4% |  | 10% |
| Other | 8% |  | 8.7% |

## Philanthropic Funding Sources

|  | Operating  |  | Match |
| --- | --- | --- | --- |
| National Foundations (i.e. Ford, Mott) | 10% |  | 9.3% |
| Local or Regional Foundations | 16.5% |  | 16.5% |
| Community Foundations | 11% |  | 8.7% |
| United Way | 13.9% |  | 10.6% |
| Individuals | 9% |  | 9% |
| Faith-Community | 5.2% |  | 3.2% |

## Financial Institution Sources (2006)

|  | Operating |  | Match |
| --- | --- | --- | --- |
| Credit Unions | 2.5% |  | 2.9% |
| Local Bank | 14.8% |  | 15.5% |
| Regional or National Bank | 19.4% |  | 18.7% |
| CDFIs (Community Development Financial Institutions) | 9.7% |  | 2.9% |
| Investment Firms | 1% |  | 1% |
| Insurance Companies | 0% |  | 1% |
| Other | 1% |  | 1% |

## Corporate Funding Sources

|  | Operating |  | Match |
| --- | --- | --- | --- |
| Local Business/Corporation | 5.8% |  | 3.5% |
| Regional or National Business/Corporation | 2.2% |  | 1.3% |
| Other | 1% |  | 1.6% |

## Education Funding Sources (2006)

|  | Operating |  | Match  |
| --- | --- | --- | --- |
| College or University | 1.9% |  | 1.6% |
| Community College | 1% |  | 1% |
| Vocational/Technical School | 1% |  | 0.5% |
| Public School District (Elementary/Secondary) | 0% |  | 0% |
| Private School (Elementary/Secondary) | 0% |  | 0.5% |
| Other | 1.3% |  | 1% |

## Peer Funding Ideas

- Brokerage Firms
- American Express
- Corporate Marketing Departments
- ICMA-RC WHAT IS THIS?
- Veterans Administration
- Real Estate Trust Accounts
- Franchise Agreements
- High Schools/School Districts
- Ed-Vest

## Many slides to add to track workbook/facilitator notes

## AFI Resource Center

- For more information on this or other AFI Training Curriculum modules, contact the AFI Resource Center at the Office of Community Services.
- Phone:	(202) 401-4626
- Email:	AFIProgram@acf.hhs.gov
- Web:		_[http://](http://www.acf.hhs.gov/assetbuilding)__[www.acf.hhs.gov/assetbuilding](http://www.acf.hhs.gov/assetbuilding)_