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 , 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 21 st 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 Phone: ex

ASSETS FOR INDEPENDENCE PROGRAM (AFI) 14

“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 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 15

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) 16

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 17

18 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: – Since ,000 families have deposited $91.1 million into IDA accounts and purchased more than 39,000 assets. 19

Evaluation Criteria 20 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

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 21

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 22

Project Reserve Fund AFI Guidelines 23

Sources of Non-Federal Funds for AFI Reported 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 Institutions43%40% Foundations42%38% Local Gov’t/Housing Authorities 17%21% State Gov’t20%18% Businesses14%15% Federal Home Loan Bank 3% Individuals15%11% U.S. Dept. of HUD2%9% U.S. Dept. of HHS22% 24

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: 25

26 Determining Staff Functions For an AFI IDA Project Management and OperationsCoordination/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 26

AFI Participants 27 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

28 Individual is eligible for TANF in their state Individual is eligible for AFI AFI Participant Eligibility Two options for determining eligibility: TANF eligibility: Household income & net worth: OR 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

Savings and Match Example AFI Participant Savings & Match $1 Deposited: $1 Match Education, Small Business IDA Year 1Year 2Year 3Year 4Total Participant Deposits $40/month Earnings/EITC $480 $1920 Match ½ AFI $240 $960 Match ½ Other Cash $240 $960 Total$960 $

AFI Participant Savings and Match Example AFI Participant Savings & Match $1 Deposited: $3 Match Housing Education Business Year 1Year 2Year 3Year 4Total Participant Deposits $40/month $300 $1200 Match ½ AFI $450 $1800 Match ½ Other Cash $450 $1800 Total$1200 $4800* * Apply towardHome, EducationBusiness Costs 30

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 31 AFI Grantee Sub- Grantee

Building AFI Project Budget Example AFI Project: $1 deposited $3 match Housing, Education, Business IncomeYear 1Year 2Year 3Year 4Year 5Total Participant Deposits $48,000 Activity +Payout $192,000 AFI Match $72,000 Activity +Payout $288,000 Other Match $72,000 Activity +Payout $288,000 15% Project Support AFI +Other Match $10,800 Activity +Payout $ 43,200 Project Support ? ? ? ? ? Sub-Total AFI Grant Request $331,200 Expenses Participant matched withdrawals Staffing Materials Space Incentives Etc. Sub-Total 32

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 34

AFI Project Builder Toolkit 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 36 Source: =a Ar7jL =a Ar7jL

Creating Messages to Secure Partnerships & Resources FrameTalking 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. FairnessAFI participants deposit savings, which is matched to help get ahead. Middle class and wealthy get tax benefits, matched savings for retirement. OpportunityThe 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: Web: 38

Native Asset Building Initiative Christina Clark, Program Specialist Administration for Native Americans (202)

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

41 Comprehensive Asset Building Framework LEARN EARN  Offer homeownership counseling  Provide business development services  Support enrollment in postsecondary education, or training INVEST SAVE 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 IDAs Plus 15% Admin costs Up to $250,000 Annually for asset Tools and framework Asset development Project designed to Fit your Community SEDS Grant NABI Project Budget AFI Grant NABI Grant Funding

AFISEDS 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.

AwardProject 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 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 Indian Self- Determination and Education Assistance Act) Fundraising Tools:

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)

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 55

Helpful Contacts Crystal Catlett, Program Specialist Assets for Independence Program Office of Community Services (202) AFI Resource Center: Telephone: AFI Program Website: rograms/afi AFI Resource Center Website: Christina Clark, Program Specialist Administration for Native Americans (202) ANA Help Desk: Telephone: ANA Website: ndex.html ndex.html Asset Building Workbook /servlet.FileDownload?file= tf6n 56

FOA Information The 2015 Funding Opportunity Announcement (FOA) will be posted on Grants.gov. To see the 2014 FOA, please go to: ACF-ANA-NO

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 58

A Few Notes Regarding Submitting a NABI Application ACF requires electronic submission of applications at 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. 59

Thank you for your participation! 60