1. AFI and Small Credit Unions: Helping Families Build Assets Monday, October 22, 2012 1:00-2:00 PM ET

2. Pamela Williams Partnerships & Outreach Office of Small Credit Union Initiatives National Credit Union Administration

3. Al Fleming Federal Program Officer Assets for Independence Program Office of Community Services Administration for Children and Families

4. Homeownership IDA Example Vicky, a single mother, dreams of owning her own home Agency is part of an affordable housing coalition Match rate is $2 for every $1 saved in her IDA Vicky saves $2,000: $55/month over 3 years Program partners provide financial counseling, financial savings classes, and special homebuyers’ clubs. Vicky receives additional $2,500 from other local city and county resources $2000 Savings $4000 Matching $6000 IDA + Match $2,000 Vicky Saves $2,000 Federal $2,000 Non-Fed 4 Total $8500 $2,500 Local

5. Financial education & asset-specific training Save earned income Purchase an asset (first home, higher education or training, small business) Partners! Common in all AFI IDA programs 5

6. Benefits of partnering with AFI Provide needed financial services Enhance your community presence Develop a pipeline of borrowers Reduce member loan delinquency Built-in risk management 6

7. Working with Assets for Independence 7

8. 1) Act as financial institution partner to an AFI project Holding the custodial Individual Development Accounts (IDAs), where participants save their money to be matched Holding the Project Reserve Fund, where the AFI project’s matching funds are deposited Providing financial support to the AFI project Providing financial education training to program participants 8

9. AFI Projects More than 350 projects throughout the nation –501(c)(3) non-profits –State, local, and tribal government agencies –Community Development Financial Institutions –Low-income designated credit unions –Consortia of organizations and agencies that target multiple service areas (network projects) Locate a project near you: www.IDAresources.org/AFIgrantees www.IDAresources.org/AFIgrantees 9

10. 2) Be a subgrantee within an AFI network project In partnership with the lead grantee: –Publicize the AFI project and present orientations –Screen and enroll participants –Provide (or find a partner to provide) financial education and the training to prepare participants to purchase their assets - homebuyer classes, business plan development, and/or college prep –Assist participants with opening the AFI IDAs and monitor their savings and withdrawals 10

11. Be a subgrantee within an AFI network project (cont’d) In partnership with the lead grantee: –Provide participants with case management and connect them to other asset building services like free tax preparation –Assist participants with asset purchase –Assist those who make emergency withdrawals or drop out of the project –May or may not hold the Project Reserve Fund and IDAs –Raise funds to support the project 11

12. 3) Operate your own AFI project Subgrantee responsibilities, plus: –Design the project and apply for AFI funding –Administer the federal AFI grant –Develop the required non-federal cash contribution –Manage the project finances –Report to OCS and other funders –Provide data for the AFI program evaluation –Hold the Project Reserve Fund and IDAs 12

13. 13 GranteeGrant Period Alternatives Federal Credit Union (NY) 2007-2012, 2009-2104 Church Koinonia Federal Credit Union (TN)2008-2013 Iowa Credit Union Foundation (IA)  18 Credit Union subgrantees 2008-2013, 2009-2014 Montana Credit Unions for Community Development (MT)  7 Credit Union subgrantees 2007-2012, 2008-2013, 2010-2015 Santa Cruz Community Credit Union (CA) 2008-2013, 2009-2014 …and many more! Current Credit Union AFI Projects

14. Handout: AFI and Small Credit Unions: Helping Families Build Assets How to get started with each option Questions to ask an AFI project partner Questions an AFI project manager may ask you Questions to ask your board and staff 14

15. AFI Grantee Representative CHURCH KOINONIA FEDERAL CREDIT UNION Ann Jones-Pierre Chattanooga, TN

16. CKFCU CKFCU is a corporation that has registration in the State of Tennessee as of January 5, 2000, and is chartered and regulated by the National Credit Union Administration (NCUA) CKFCU – $2.7 million assets Low-income designated by NCUA CDFI certified

17. Why AFI? A partnership with the Benwood Foundation gave birth to the IDA program IDA program fits perfectly with CKFCU’s other programs (i.e., VITA), its mission, and its business sustainability goals

18. IDAs at CKFCU Day to day activities of the IDA program: working with members on credit repair, contacting support organizations, completing necessary forms, and determining eligibility About 10 hours per week are spent on the IDA program

19. IDAs at CKFCU (cont’d) Number of graduates: 16 Number of savers: 14 Demographics of savers: 90% female, low-moderate income, some have a physical disability, eligible for Earned Income Tax Credit under the US IRS rules and between ages 25-50 years

20. IDAs at CKFCU (cont’d) IDA partners—Chattanooga Habitat for Humanity, Chalmers, 28 th Community Development Corporation and Chattanooga Housing Authority IDA funders—Benwood Foundation, Church Koinonia FCU, New City Fellowship Church, Olivet Baptist Church, and Second Baptist Church

21. Lessons Learned The IDA program allows the CU to provide a tool to meet the mission of the CU The biggest challenges are funding and buy-in by like kind service organizations who can support by combining services

22. Lessons Learned Screening Questions to help determine if you are in a good position to run an IDA program 1. Do we have a need in our community? 2. Are we willing to serve the community who will benefit from an IDA program? 3. Are we willing to commit the up front administrative time to organize the program?

23. Ann Jones-Pierre 423-629-5400 Telephone 423-629-5404 Facsimile 2319 E 3 RD Street Chattanooga, TN 37404 ajones-pierre@churchkoinoniafcu.org

24. AFI Resource Center Web site: www.IDAresources.orgwww.IDAresources.org –Resources for current grantees, prospective grantees, project partners, and others interested in asset-building AFI outreach workshops and webinars Customized technical assistance AFI e-newsletter – IDAResources.org Update AFI Project Builder: A Guide to Planning an Assets for Independence Project 24

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26. Next steps: 1.Connect with existing AFI projects in your area 2.Set up a call with the AFI Resource Center 3.Sign up for upcoming webinars 26

27. Applicant Webinar Series Each webinar will be held at 2 p.m. EST. For more information and to register: http://IDAresources.org/Calendar 27 Webinar 1: Planning an AFI Project Webinar 2: Preparing a Successful Application Webinar 3: Developing Resources and Partners September 13October 3October 25 November 14December 4January 9 January 29FebruaryMarch

28. AFI Resource Center Contact Information Phone: 1-866-778-6037 Email: info@IDAresources.orginfo@IDAresources.org Web:http://IDAresources.org http://www.acf.hhs.gov/assetbuilding/http://IDAresources.org http://www.acf.hhs.gov/assetbuilding/ 28