1. Show Me The Ropes: Starting a Campus MFI Vanessa Carter, Lend for America Katelyn McCarthy, Hoosier Social Impact Fund at Indiana University

2. Agenda Context – Why students – Define campus MFI – Typical Start Up Stories What’s your idea? Case Study: Katelyn McCarthy Steps to Start Up – Before you start – Products and Services – Legal – Team – Fundraising – Set Goals: Start up milestones How LFA can Help – Free, Public Resources (webinars, publications, start up kit) – Fellowship – Membership Resource Library Annual Review Site Visits Data Collection Questions

3. Why Students Time Low Cost Underserved Markets Creativity

4. Define Campus MFI Team of students who go off campus and find people who need help. They offer basic financial advice and lend small amounts of money they have raised.

5. Campus MFI Models

6. Community Empowerment Fund, UNC Chapel Hill

7. University of North Carolina Founded in 2009 ~200 student volunteers Clients served 2013-14: 351

8. Yale University in New Haven, CT Founded 2001 ~50 student staff 2012 Operating Budget: $13,000 501c3 Nonprofit Corporation

9. Elmseed Enterprise Fund Client: Antoine Scott

10. Introductions Have you started yet? What stage are you in? What products or services might be relevant in your community (loans, savings, training)? How are you learning about your community?

11. Common Start-Up Stories International Microfinance Inspiration Struggling Local Community Business Plan Competition Lend for America Fellowship Social Entrepreneurship Class

12. CASE STUDY: HOOSIER SOCIAL IMPACT FUND Katelyn McCarthy

13. Before You Start Get to know your community (go to ‘Connecting to Your Community’ at 10:30 in Chevron) – Focus groups – Interviews – Volunteer – Talk to Community Organizations Find at least two committed students Learn about the issues

14. Products & Services Types of Products and Services Definition Loan PackagingHelp prospective borrower with loan application One on One CoachingBasic advice on marketing, financial management, biz basics Training ClassesTeach a curriculum to a group of individuals Banking and SavingsHelp clients open and maintain bank accounts MicroloansInstallment loans under $10,000 for entrepreneurs with small, informal, or home- based businesses Credit Builder LoansInstallment loan of $100-$1,000 for the purpose to help client open new, active accounts on credit report Payday Alternative/Emergency Loans Installment loan under $1,000 for consumer needs

15. Financial Products & Services Product or Service 501 c 3 req’d? Start Up Capital Needed Campus MFI Examples MicroloansYes$2,500Elmseed Enterprise Fund Credit Builder LoansYes$1,000 Intersect Fund, Capital Good Fund Other Consumer LoansYes$1,000JIFFI, Capital Good Fund Consumer SavingsNo$0 Community Empowerment Fund, Resource Fund Training classes and one on one coaching No$0 Capital Good Fund, Elmseed Enterprise Fund Kiva ZipNo$0Berkeley Microfinance

16. Financial Service Checklist – What You Need Microloans Lending infrastructure: 1)Incorporation in your state 2)Bank Account 3)Process for application intake 4)Access to pulling client credit reports 5)Process for approval 6)Process for disbursal 7)Access to reporting loan payments 8)Process for collections 9)Team focused on sales Credit Builder Loans Credentialed through Credit Builders Alliance 1)CBA Member Fee 2)Office Space with physical signage 3)501c3 registration 4)Three loans 5)Two Letters of support 6)Metro2 Software Other Consumer Loans Legal research: 1)Do you need a lending license in your state? 2)Is there a maximum interest rate you can charge? Checklists

17. Financial Service Checklist – What You Need Consumer Savings 1)Partner depository institution 2)Research on local products available for your target market 3)Channel to reach clients in your target market Training classes and one on one coaching 1)Outgoing people comfortable teaching or coaching adults 2)Experience coaching 3)Training – you need to get trained Kiva Zip 1)Apply to be a trustee 2)Outgoing people comfortable with sales 3)Research and training on Kiva Zip’s process 4)Good writers who can help prospective borrowers post descriptions Checklists

18. Kiva Zip Trustee 501(c) 3 Student organization Academic Yale; Georgetown; Arizona State; U of Alabama; Rutgers*; Brown*; Southern Methodist University; UNC Chapel Hill*; University of the Pacific; BYU; U of Notre Dame UC Berkeley; Wesleyan University; Haverford; Claremont McKenna College; U of Houston University of Michigan; Hamilton College; Northwestern U of Arizona; St. Cloud State; Bentley; Saint Francis University Legal Structure *A 501(c)3 with full-time staff

19. Rocket Lawyer Free incorporation $49.99 per month

20. Team Structure – Hiring for specific positions – Give people titles and clear responsibilities Plan for Leadership Transitions – Go to ‘Top Strategies for Managing a Volunteer Run Campus MFI’ – 1:40pm in Chevron

21. Fundraising If you file as a 501c3 nonprofit corporation: – Local banks – Foundations – Corporate sponsors If you don’t: – On-campus funding for registered student orgs – Business Plan competitions – Family and Friend campaigns (use gofundme or indiegogo) – Small grant contests (Banking On Youth, Ashoka)

22. Start-up Milestones Serve a client – At least 8 hours of TA – Business Basics Class – Disburse a loan – One on One Financial Coaching Raise funding Incorporate as a non-profit Open a bank account

23. Free Public Resources Webinars Publications Start-up Kit

24. Fellowship 1.Hands-on experience at a grown up campus MFI 2.$2500 stipend and travel paid 3.Training and mentorship to build a plan for new campus MFI

25. Membership Resource Library Annual Review Site Visits Data Collection Networking Mentorship

26. Questions?