AFI Program Overview

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Welcome!

• AFI Program Overview
• Grant Application Process

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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

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Webinar Logistics

• Useful Resources
• AFI Project Builder Guide for Planning an AFI
  Project
• Prior Webinar Recordings
• Program webpage www.acf.hhs.gov/assetbuilding
• AFI Resource Center
• Email afiprogram_at_acf.hhs.gov
• Call 202-401-4626

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Todays 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

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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

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Asset Building

• 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

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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.

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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

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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.

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IDAs A Hand-Up To Self-Sufficiency
Self- Sufficiency
Transform to Assets
Save
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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.

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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

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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

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AFI Grantees

• 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

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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

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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

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How AFI Projects Work
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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

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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

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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

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Kims IDA
2000 Savings
2,000 Kim Saves
4000 Matching
2,000 Federal
2,000 Non-Fed
6000 for Home
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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)

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Features of Every Successful AFI Project
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Planning Your AFI Project

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

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Funding

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

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Project Reserve Fund

• PROJECT RESERVE FUND
• 200,000

Federal Grant 100,000
Non-Federal 100,000 (Cash only)
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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

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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

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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

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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

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Preparing a Successful AFI Application
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Application procedures

• 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

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Application procedures

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

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Criterion Approach (Total 50 pts)

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

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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
• Project Builder 3.I

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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

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Approach IDA Design Features (5 pts)

• What match rate will your project use?
• Whats 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

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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

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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

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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

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Organizational Profile (30 pts)

• Describe your organization and partners
• Explain your organizations 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

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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

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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

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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

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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

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Application Submissions

• Up to 40 pages of narrative attachments
• Attachments include commitment letters, MOUs, and
  required forms
• Please clearly number all pages and attachments

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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

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Application Submission Information

• Due date June 25th, 2008
• Received by 430 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 [phone]

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Other Resources

• Center for Social Development
• http//gwbweb.wustl.edu/csd
• United Way of America
• www.liveunited.org/income/index.cfm
• IDA Network
• http//www.idanetwork.org
• New America Foundation
• www.assetbuilding.org
• Project Builder Appendix A

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Upcoming AFI Webinars

• Tips for Writing a Winning AFI Application and
  Designing a Strong IDA Project
• Wednesday, May 21, 2008 200 315 p.m.
• Program Overview and How to Apply
• Thursday, May 29, 2008 200 315 p.m.
• Tips for Writing a Winning AFI Application and
  Designing a Strong IDA Project
• Tuesday, June 3, 2008 200 315 p.m.

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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)

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• AFI Resource Center
• afiprogram_at_acf.hhs.gov
• [phone]
• www.acf.hhs.gov/assetbuilding