NABI and AFI How can tribes and native organizations

make it work?

October 2014

Christina Clark, Administration for Native AmericansDenise DeVaan, AFI Resource Center

MIGIZI Communications

Minneapolis, MN

Elaine Salinas, President

About MIGIZI• Serving the American Indian community in Minneapolis for 37 years

• Advancing a message of success, well-being and justice for the American Indian community

• Primary service population is middle and high school age American Indian youth

• Focus Areas: academic support and enrichment, new media training, post-secondary preparation, entrepreneurship and other wealth-generating opportunities

Why NABI?• American Indian Community Blueprint – 20 Year Vision to create a vibrant, healthy, and balanced community where American Indian people have living wage jobs that build wealth and assets

• Native Youth Futures (NYF) – ANA funded youth entrepreneurship program

• Matching grant from NWAF enabling us to pilot IDA accounts with 24 Indian youth involved in Native Youth Futures

The IDA pilot at MIGIZI

• 24 low-income high school age American Indian youth

• Paid internships at MIGIZI and throughout community

• Saved an average of $600 that was matched 3:1 through IDA savings

• Received financial literacy and work-readiness training

• ____ using their IDA savings for postsecondary education or to seed their microenterprise

IDA Participants at Annual Youth Entrepreneurship Fair

Our NABI project – Native Youth Financially Independent

• GOAL: to present permanent and sustainable solutions to the intergenerational poverty and lack of economic opportunity in our community

• Recruit 150 low-income Indian youth, ages 14-21, and provide them with the asset-generating opportunities and supports needed to prepare them to become financially-independent adults

Our NABI project – Native Youth Financially Independent (cont.)

• Work-readiness training • Paid internships in high-growth, high-demand careers

• IDAs that provide a 4:1 match for youth savings• Financial literacy and 21 Century skills training• Career mentorship matching youth with Indian professionals

Native Youth Financially Independent – MIGIZI’s Role

• Marketing and promotion

• Youth/family outreach, recruitment and retention

• Manage and track youth IDA contributions

• Financial Literacy and 21st Century Skills Training

• Program administration and reporting

Native Youth Financially Independent Partners

Achievempls – one of country’s premier youth employment programs; STEP-UP Achieve places 800 low-income Minneapolis youth each year in paid internships with top Twin Cities companies

• Participant selection • Work Readiness Training• Matching youth with paid internship opportunities

• Recruiting and retaining paid internship partner businesses

Native Youth Financially Independent Partners (cont.)

Woodlands National Bank, owned by the Mille Lacs Band of Ojibwe, is the primary banking institution serving the Indian community in Mpls.

• Assist with financial literacy training as an in-kind match

• Serve as depository for youth savings and IDA accounts

• Serve on Project Advisory Committee

LESSONS LEARNED SO FAR….• Opportunity to accrue savings through paid internships and IDA accounts motivates low-income Indian youth to “dream bigger” and plan for the future

• It is critical to provide youth with multiple supports so that they are positioned to take advantage of wealth-generating opportunities when presented

• Cross-sector partnerships enable leveraging of resources to create significantly greater opportunities than any one sector can provide on its own

CONTACT INFORMATION

John Gwinn, Project Director

Native Youth Financially Independent

% MIGIZI Communications

3123 E. Lake Street

Minneapolis, MN 55406

Phone: 612-721-6631 ex 222

E-mail: jgwinn@migizi.org

ASSETS FOR INDEPENDENCE PROGRAM (AFI)

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“Few people have ever spent their way out of poverty. Those who escape do so through saving and investing for the long-term.”

Michael SherradenCenter for Social Development

Author, Assets and the Poor

Financial Asset Building

“With income we get by, but with financial assets we get ahead.”

Ray Boshara, Senior Advisor

Director, Center for Household Financial Stability

Federal Reserve Bank of St. Louis

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Financial Assets

• Tangible assets:– Money – Real property– Machines, equipment, tools– Bonds, stocks, other financial securities

• Intangible Assets:– Being credit worthy, access to credit– Human capital (education, training)– Social capital (networks, who you know)

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Financial Assets Matter

• Move Past Paycheck-to-Paycheck Toward Long-term Financial Stability

• Stronger, Healthier Families• Enhanced Self-Esteem• Long-term Thinking and

Planning• More Community Involvement• Hope for the Future

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Assets for Independence Program • A discretionary program administered by OCS in ACF• Established by Congress in 1998• FY 2014 the AFI Program appropriation was $19 million• AFI grants have a five year project period• Awards are made several times each year.• Require a $1 to $1 cash match to the AFI grant• Require AFI and non-AFI cash match to be held in a

Project Reserve Fund of a qualified financial institution

AFI Projects & AFI Participant Success• Approximately 300 organizations throughout the

nation– 501(c)(3) non-profits– State, local, and tribal government agencies (must partner with a

501(c)(3) non-profit)– Community Development Financial Institutions– Designated Low-income Credit Unions

• Locate a project near you: – http://IDAresources.acf.hhs.gov/AFIgrantees

• Since 1999 89,000 families have deposited $91.1 million into IDA accounts and purchased more than 39,000 assets.

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Evaluation Criteria

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Criteria

• Approach: Project Description, Implementation, Work Plan, and Project Viabilityo Target Population & Location, Project Design, Expected Outcomes,

Timeline, Program Requirements, Subrecipient Activities, Record Keeping and Management, and Project Viability

• Approach: Organizational Capacityo Capacity, Project Partners, Financial Institution Partners, Knowledge

and Experience, and Staff

• Budget and Budget Justificationo Funding and Spending Guidelines

• BonusoCommunity Development, Key Collaborations, and Unserved States

Bonus Points• Community Development

– Partnering with Federal Place-based Initiatives (Promise Neighborhoods, Choice Neighborhoods, Promise Zones, etc.)

• Key Collaborations – Collaborating with public agencies (TANF, Head Start,

etc.)– Serving families in the child support system, foster care

system, persons with disabilities, refugees, Native Americans, or survivors of domestic violence

• Unserved States– Serving Rhode Island and Wyoming

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AFI Program Requirements

• Cost Sharing (100% non-federal match)• Project Reserve Fund• Funding Restrictions (85%/15%)• Participant Eligibility• Financial Education• IDA Match Rate• Use of IDA Balances - Asset Purchases• Reporting

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Project Reserve Fund

AFI Guidelines

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Sources of Non-Federal Funds for AFIReported by Grantees

Source: 2014 AFI Data Reports

Type of Non-AFI Funder Grants that Received Funding for Matching Participant Savings

Grants that Received Funding for Program Operations

Financial Institutions 43% 40%

Foundations 42% 38%

Local Gov’t/Housing Authorities

17% 21%

State Gov’t 20% 18%

Businesses 14% 15%

Federal Home Loan Bank 3% 3%

Individuals 15% 11%

U.S. Dept. of HUD 2% 9%

U.S. Dept. of HHS 22%

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Other Sources of Non-Federal Funds• Financial institutions and their

foundations• Interest state housing agencies• State and local governments• Tribal governments• United Way• Foundations (local, regional)• State/Local tax credits• Special needs funding opportunities

(Mental Health, Youth Programs, Disability Programs, and other nonfederal funding streams that target specific populations)

• State education scholarships, grants

• Locally-based corporations/employers

• Places of worship• Individuals/online donations• Sponsoring organization funds• Federal Home Loan Banks• Community Development

Block Grants* • Native American Funds*

*Specified allowable in their legislation

Making the Business Case: http://IDAresources.acf.hhs.gov/IDA_Fundraising

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Determining Staff Functions For an AFI IDA Project

Management and Operations Coordination/Participant Services

•  Establishing partnerships •  Marketing development and implementation

•  Overall program design •  Recruitment and enrollment activities

•  Setting program policy •  Application documentation

•  Regular financial, program and data reports for OCS

•  Account management (Reserve Fund and participants' savings and match accumulation progress)

•  Raising nonfederal cash contribution. Federal funds cannot be used for fundraising

•  Case management

•  Setting budgets and accounting procedures •  Financial and asset education

•  Program oversight •  Tracking progress toward benchmarks

•  Public relations •  Communications with participants, partners, applicants

•  Data entry and management • Data entry and management

•  Marketing and recruitment materials •  Teaching financial literacy, asset classes

•  Logistics for trainings and workshops •  Logistics for trainings and workshops

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AFI Participants

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• Deposit savings from earnings into special purpose matched saving Individual Development Account.– IDA accounts are held at a bank or credit union, – AFI allows a match rate of 1:1 and up to a 1:8 match rate.

• Receive money management and financial education classes. • Participant savings, the AFI and non-AFI cash match pays for one of

three allowable assets:– First home– Higher education or training– Small business

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Individual is eligible for TANF in

their state

Individual is eligible

for AFI

AFI Participant EligibilityTwo options for determining eligibility:

TANF eligibility:

Household income & net worth:

OR EITC eligible

ORAnnual income

less than twice

Federal Poverty Level

Net worth less than $10,000, excluding

one residence and one vehicle

Individual is

eligible for AFI

• Determined at the household level• Grantees may have additional requirements• Must have earned income for savings deposits

Savings and MatchExample AFI Participant Savings & Match $1 Deposited: $1 Match

Education, Small Business IDA

Year 1 Year 2 Year 3 Year 4 Total

Participant Deposits $40/month Earnings/EITC

$480 $480 $480 $480 $1920

Match ½ AFI

$240 $240 $240 $240 $960

Match ½ Other Cash

$240 $240 $240 $240 $960

Total $960 $960 $960 $960 $3840

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AFI Participant Savings and MatchExample AFI Participant Savings & Match $1 Deposited: $3 Match

Housing Education Business

Year 1 Year 2 Year 3 Year 4 Total

Participant Deposits $40/month

$300 $300 $300 $300 $1200

Match ½ AFI

$450 $450 $450 $450 $1800

Match ½ Other Cash

$450 $450 $450 $450 $1800

Total $1200 $1200 $1200 $1200 $4800*

* Apply toward Home, Education Business Costs

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AFI Project Models

AFI Network Projects– AFI Grantee Agency with sub-

grantee agencies working directly with AFI participants.

– AFI Network Projects in MI, MN, SD, VT, CA, MO, ND, MA, AZ

AFI Single Site Projects– Single AFI grantee providing IDAs to

AFI participants

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AFI Grantee

Sub-Grantee

Sub-Grantee

Sub-Grantee

Sub-Grantee

Sub-Grantee

Building AFI Project BudgetExample AFI Project: $1 deposited $3 match Housing, Education, Business

Income Year 1 Year 2 Year 3 Year 4 Year 5 TotalParticipant Deposits

$48,000 $48,000 $48,000 $48,000 Activity +Payout $192,000

AFI Match $72,000 $72,000 $72,000 $72,000 Activity +Payout $288,000

Other Match $72,000 $72,000 $72,000 $72,000 Activity +Payout $288,000

15% Project Support AFI +Other Match

$10,800$10,800

$10,800$10,800

$10,800$10,800

$10,800$10,800

Activity +Payout $ 43,200$ 43,200

Project Support ? ? ? ? ?

Sub-Total AFI Grant Request $331,200

ExpensesParticipant matched withdrawalsStaffingMaterialsSpaceIncentivesEtc.Sub-Total

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Questions to Ask

• Does an AFI grant fit our mission?• Where will we raise the non-federal cash match?• Do we or our partner organizations have

participants who are ready to purchase first homes, start businesses or get higher educations/ training?

• How will we design a successful project?• Do we have strong partners for referrals or for

project services in areas that we are not strong?

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Resources

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AFI Project Builder Toolkitwww.IDAresources.acf.hhs.gov/ProjectBuilder

• Worksheet 1: Assessment of Target Population• Worksheet 2: AFI Activities, Our Capacity, and Potential Community Partners• Worksheet 3: The Participant Funnel• Worksheet 4: Determining the Cost of Assets in your Community• Worksheet 5: Determining the Savings Cap and Match Cap• Worksheet 6: Financial Institution Comparison Sheet• Worksheet 7: Partnership Evaluation Form• Worksheet 8: Funding Prospect Form• Worksheet 9: Gantt Chart of Activities• Worksheet 10: AFI Project Budget• Worksheet 11: Projecting Need of Matching Funds• Standard Budget Forms for AFI Applications• Sample Documentation of Commitment of Nonfederal Resources• Sample Savings Plan Agreement• Sample AFI Project Manager Job Description• Sample Financial Institution Partner Agreement

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Where AFI Grantees Raise Funds & Other Resources

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Source: http://idaresources.acf.hhs.gov/page?pageid=a047000000Ar7jL

Creating Messages to Secure Partnerships & Resources

Frame Talking Points

Family Security (Financial Stability)

Help hard-working families toward financial stability by providing financial skills, credit repair, home ownership, business development, higher education-better jobs.

Fairness AFI participants deposit savings, which is matched to help get ahead. Middle class and wealthy get tax benefits, matched savings for retirement.

Opportunity The financial empowerment and asset building tools of the middle class are embedded in AFI and related asset building tools. These support getting ahead, not getting by.

Investment/ Leverage Your grant, donation, contribution is matched.

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AFI Resource Center Contact Information

Phone: 1-866-778-6037

Email: info@IDAresources.org

Web: http://IDAresources.acf.hhs.gov

http://acf.hhs.gov/programs/ocs/programs/afi

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Native Asset Building Initiative

Christina Clark, Program Specialist Administration for Native Americans

(202) 401-5399 Christina.Clark@acf.hhs.gov

What is the Native Asset Building Initiative (NABI)?

• A Joint Funding Opportunity – Office of Community Services

(OCS), Assets for Independence (AFI) program and ANA's Social and Economic Development Strategies (SEDS) program

• Support for Comprehensive Asset Building Strategies to support individuals and Families

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Comprehensive Asset Building Framework

LEARN

EARN Offer homeownership

counseling

Provide business development services

Support enrollment in postsecondary education, or training

INVESTSAVE

PROTECT Provide foreclosure counseling, forgivable emergency loans, assistance to renters

Teaching good financial management habits: Financial literacy, projected spending, using credit wisely.

Enact and enforce consumer protection laws

Job training or employment support programs.

Partner with a VITA site to provide free tax prep, build public awareness about EITC

Offer IDAs to incentivize savings

Support access to banking services

$180,000 for IDAsPlus 15%

Admin costs

Up to $250,000Annually for asset

Tools and framework

Asset developmentProject designed to

Fit your Community

SEDS Grant

NABI Project Budget

AFI Grant

NABI Grant Funding

AFI SEDS

85% of AFI funds must be used for AFI IDA savings match.

May be used to match additional types of IDAs or matched savings accounts.

Financial education and related participant costs. (Not more than 5.5%)*

Asset building strategies, financial literacy, business development coaches

General program administrative costs. (Not more than 7.5%)

Project administration such as project staff salary, office space, org

Data collection for OCS-AFI administered evaluations (at least 2%)

Indirect Cost Rate utilization

Uses of NABI Funding: AFI & SEDS

Example NABI SEDS Funding Costs• Project staff• Training events and learning conferences• Curriculum development• Strategies to support CDFI certification• Non AFI IDAs• Office space and Indirect Cost Rates

– SEDS funds cannot be used to finance loan funds, for the purchase of real property, or for construction.

Christina Clark, ANA, 2013.

Award Project Period

Budget Period

Ceiling Amount

Floor Amount

Estimated Average Award

Matching Requirement (non-Federal: Federal)

AFI Award

60 Months (5 Years)

One 60 Month Budget period

$1,000,000 $50,000 $180,000Over 5 Years

1:1

SEDS Award

60 Months (5 Years)

Five 12 Month Budget Periods

$250,000 $50,000 $200,000Annually for 5 years

1:5

Award Information

Critical Issues: AFI Non-Federal Match

Dollar-for-dollar cash match, which can be met through use of:• Community Development Block Grant• Indian Community Development Block Grant• Native American Housing and Self Determination

Act funding• Indian Self-Determination and Educational

Assistance Act funding (638 funding)Christy Finsel and Dan Van Otten, 2010.

Sources of Non-Federal Funds for a NABI Application

Financial institutions and their foundations

State and local governments Tribal governments United Way Foundations (local, regional,

national) State/Local tax credits Special needs funding

opportunities (Mental Health, Youth Programs, Disability Programs, and other nonfederal funding streams that target specific populations)

Places of worship Individuals and online

donations Sponsoring organization funds Federal Home Loan Banks Community Development

Block Grant Program (ICBDG), Native American Housing

Assistance and Self-Determination Act (NAHASDA)

Public Law 93-638 Indian Self-Determination and Education Assistance Act)

Fundraising Tools:http://www.idaresources.org/IDA_Fundraising

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Critical Issues: Financial Institution Agreement

• AFI requires that participant IDA accounts must be maintained in one or more federally insured financial institutions (where one is not available, a state-insured institution)

• For your application, you will need a signed agreement with a financial institution

• The agreement should address participant IDAs and Project Reserve Account

Organizational Capacity• Organizational capacity

and partnerships

• Awareness of target participants, their savings goals, and barriers to asset development

• Asset development support services

Current NABI Grantees

NABI Portfolio

• 5 current or emerging CDFIs• 3 Community Development Organizations (Native

Non Profits)• 2 Tribal Housing Authorities• 1 Tribal Partnership

Approaches Being Used• Partnering with agricultural development programs to support

local farmers to purchase livestock.• Working with local artists to develop marketing plans and

provide matched savings for brochures, business cards, and supplies.

• Providing financial education and credit counseling for couples who then both enroll in a IDA program to save for a home.

• Providing youth internships and with matched savings to initiate savings behavior, then enrolling them in an AFI IDA, combining the two when they are ready for postsecondary education

Additional Suggestions for Program Designs

Tribal Colleges leveraging scholarship or foundation funds for the non-federal match, and partnering with Federal Work Study to fund education IDAs and teach students about responsible financial management.

Tribal leaders forming Microenterprise Development Organizations and leveraging the USDA Rural Microentrepreneur Assistance Program to support small business growth.

Tribal Housing Authorities using NAHASDA's Indian Housing Block Grant (IHBG) and Title VI Loan Guarantee to increase new housing opportunities.

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Eligible NABI Applicants• Federally recognized tribal governments or Alaska Native

villages that are joint applicants with a 501(c)(3) Native nonprofit organization

• Native 501(c)(3) nonprofits serving Native Americans• Native nonprofit organizations designated by the

Secretary of the Treasury as Community Development Financial Institutions (CDFIs) or Native nonprofit credit unions designated as low-income credit unions by the National Credit Union Administration (NCUA)

• The comprehensive asset building strategy must include an AFI Individual Development Account (IDA) component.

• The strategy may also include financial education, credit repair, tax services, workforce development, and other activities that support financial self sufficiency and asset accumulation.

• SEDS funds may be used to fund the additional asset building strategies, as well as program administration costs.

NABI Summary

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Helpful ContactsCrystal Catlett, Program Specialist Assets for Independence Program

Office of Community Services

(202) 401-1425 Crystal.Catlett@acf.hhs.gov

AFI Resource Center:

Telephone: 1-866-778-6037

E-mail: info@idaresources.org

AFI Program Website:

www.acf.hhs.gov/programs/ocs/programs/afi

AFI Resource Center Website: www.idaresources.acf.hhs.gov

Christina Clark, Program Specialist Administration for Native Americans (202) 401-5399 Christina.Clark@acf.hhs.gov

ANA Help Desk:

Telephone: 1-877-922-9262

Email: NativeAssetBuilding@acf.hhs.gov

ANA Website: http://www.acf.hhs.gov/programs/ana/index.html

Asset Building Workbookhttp://idaresources.acf.hhs.gov/servlet/servlet.FileDownload?file=01570000001tf6n

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FOA Information

• The 2015 Funding Opportunity Announcement (FOA) will be posted on Grants.gov.

• To see the 2014 FOA, please go to:http://

www.acf.hhs.gov/grants/open/foa/index.cfm?switch=foa&fon=HHS-2014-ACF-ANA-NO-0786

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ACF Two-File Requirement

• Electronic applications may only include two electronic files (compiled PDFs). No more than two files will be accepted for the review, and additional files will be removed.

• Required Standard Forms will be accepted in addition to the two files

• Guidance from the AFI Resource Center: “Grants.gov and the Two-File Requirement” webinar at www.IDAresources.acf.hhs.gov/Apply

A Few Notes Regarding Submitting a NABI Application

• ACF requires electronic submission of applications at www.Grants.gov.

• Applicants that do not have an Internet connection or sufficient computing capacity to upload large documents to the Internet may contact ACF for an exemption that will allow these applicants to submit an application in paper format.

• Information on requesting an exemption from electronic application submission is found in Section IV.2. Application Submission Options.

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Thank you for your participation!

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