NABI and AFI
How can tribes and native organizations
make it work?
October 2014
Christina Clark, Administration for Native Americans
Denise 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
• 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
• 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 inkind 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 lowincome 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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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
“Few people have ever spent their way out of
poverty. Those who escape do so through saving
and investing for the long-term.”
Michael Sherraden
Center for Social Development
Author, Assets and the Poor
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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-toPaycheck  Toward Longterm 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
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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
Criteria
• Approach: Project Description, Implementation, Work Plan, and
Project Viability
o Target Population & Location, Project Design, Expected Outcomes,
Timeline, Program Requirements, Subrecipient Activities, Record
Keeping and Management, and Project Viability
• Approach: Organizational Capacity
o Capacity, Project Partners, Financial Institution Partners,
Knowledge and Experience, and Staff
• Budget and Budget Justification
o Funding and Spending Guidelines
• Bonus
o Community Development, Key Collaborations, and Unserved States
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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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AFI Guidelines
Project Reserve Fund
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Sources of Non-Federal Funds for AFI
Reported by Grantees
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%
Source: 2014 AFI Data Reports
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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
•
• Marketing and recruitment materials
• Teaching financial literacy, asset classes
• Logistics for trainings and workshops
Data entry and management
• Logistics for trainings and workshops
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AFI Participants
•
•
•
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
27
AFI Participant Eligibility
Two options for determining eligibility:
TANF
eligibility:
Individual is
eligible for
TANF in their
state
Individual is
eligible for
AFI
OR
Household
income &
net worth:
EITC eligible
OR
Annual 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
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Savings and Match
Example 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
$480
$480
$480
$480
$1920
$240
$240
$240
$240
$960
Match ½
$240
Other Cash
$240
$240
$240
$960
Total
$960
$960
$960
$3840
Earnings/EITC
Match ½
AFI
$960
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AFI Participant Savings and Match
Example 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
$450
Other Cash
$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 subgrantee agencies working directly
SubGrantee
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
Subto AFI participants
Grantee
SubGrantee
AFI
Grantee
SubGrantee
SubGrantee
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Building AFI Project Budget
Example AFI Project: $1 deposited $3 match Housing, Education, Business
Income
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Participant
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
Expenses
Participant
matched
withdrawals
Staffing
Materials
Space
Incentives
Etc.
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?
33
Resources
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AFI Project Builder Toolkit
www.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
35
Where AFI Grantees Raise Funds &
Other Resources
Source:
http://idaresources.acf
.hhs.gov/page?pageid
=a047000000Ar7jL
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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 educationbetter 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.
37
AFI Resource Center
Contact Information
Phone:
Email:
Web:
1-866-778-6037
info@IDAresources.org
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
Comprehensive Asset Building Framework
LEARN
 Teaching good financial management habits: Financial literacy, projected spending,
using credit wisely.
EARN
 Job training or
employment support
programs.
 Partner with a VITA site
to provide free tax
prep, build public
awareness about EITC
SAVE
INVEST
 Offer IDAs to
incentivize savings
 Offer homeownership
counseling
 Support access to
banking services
 Provide business
development services
 Support enrollment in
postsecondary
education, or training
PROTECT
 Provide foreclosure counseling, forgivable emergency loans, assistance to renters
 Enact and enforce consumer protection laws
41
NABI Grant Funding
AFI Grant
$180,000 for IDAs
Plus 15%
Admin costs
SEDS Grant
Up to $250,000
Annually for asset
Tools and framework
NABI Project Budget
Asset development
Project designed to
Fit your
Community
Uses of NABI Funding: AFI & SEDS
AFI
SEDS
85% of AFI funds must be used for AFI IDA May be used to match additional types of
savings match.
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
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 Information
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
$180,000
Over 5
Years
1:1
SEDS
Award
60
Months
(5 Years)
Five 12
Month
Budget
Periods
$250,000
$50,000
$200,000
Annually
for 5 years
1:5
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 SelfDetermination Act (NAHASDA)
 Public Law 93-638 Indian SelfDetermination and Education
Assistance Act)
Fundraising Tools:
http://www.idaresources.org/IDA_Fundraising
47
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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.
53
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)
NABI Summary
•
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.
55
Helpful Contacts
Crystal 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/p
rograms/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/i
ndex.html
Asset Building Workbook
http://idaresources.acf.hhs.gov/servlet
/servlet.FileDownload?file=015700000
01tf6n
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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-2014ACF-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
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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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