HHS ASSET Initiative Presentation

Report
ASSET Initiative
Presented to State CSBG Directors August 11, 2011
Learn about:
Income and asset poverty
The ASSET Initiative
Asset building strategies to increase financial stability
Asset Development and Interoperability in ACF
Explore actions that State CSBG Directors might take to
promote and implement the ASSET Initiative strategies
Financial Asset Building
“With income we get by, but with financial assets we get
ahead.”
Ray Boshara
Vice President, New America Foundation
“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
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Income and Asset Poverty
• Income Poverty:
– 100% of poverty established in 1960s
• Asset Poverty:
– Insufficient net worth to live at Federal poverty
level for three months without income. Family
of three ($4600)
Use Income AND Asset Poverty to assess true
picture of financial instability
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Income + Assets = Financial Stability, Financial Security
Adapted from the United Way Worldwide’s Financial Stability Framework
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United Way’s Financial Stability Framework
United Way’s Approach to Financial Stability
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The ASSET Initiative
• Collaboration across ACF Programs to bring asset
building tools & practice to ACF grantees and
families served in programs.
• Incorporates lessons learned from Assets for
Independence Demonstration Program and related
research.
• Families move past paycheck to paycheck
existence, toward financial stability.
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ASSET Initiative Goals
Increase the availability of asset-building
opportunities -- Increase the availability of effective
financial education, AFI projects and other assetbuilding strategies.
Bring AFI to more communities -- Expand the reach
of the AFI - IDA program by actively promoting
collaborations among AFI grantees and other ACF.
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Goals of ASSET Initiative
Coordinate asset building across ACF programs -Demonstrate a collaborative cross-agency approach
for achieving goals and producing strong outcomes at
ACF.
Equip staff to succeed with asset building
strategies -- Strengthen ACF staff expertise on
financial literacy education, IDAs and other assetbuilding policies and strategies.
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Goals of ASSET Initiative
• Identify effective asset building practices –
Develop knowledge on effective practices for
providing individual development accounts and
other asset-building strategies via ACF grantees and
networks.
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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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What are Financial Assets?
• Savings (3-6 month nest egg) to protect against loss
of income
• Matched Savings (AFI Individual Development
Accounts)
– First home
– Higher education and training
– Develop or expand small business
• Property, equipment, land
• Good credit report and score, access to credit
• Human capital (who you know)
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Asset Building Strategies
in the ASSET Initiative
• Financial Education (spending, savings, credit
protection)
• Savings and Individual Development Accounts
(IDAs)
• Getting Banked
• Managing Credit and Debt
• Tax credits and Tax Filing Assistance
• Accessing Federal and State Benefits
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Asset Initiative Projects
Current Population Focus
• Building Assets for Fathers and Families
• Financial Stability for Families with Young Children
• Native Americans
• Refugee Communities
• Support for People with Disabilities
• Asset-Building for Victims of Domestic Violence
And Cross- Cutting Components
• Effective Financial Education
• Earned Income Tax Credit Outreach
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Upcoming AFI Webinar
Tuesday, September 6 – 2 p.m. EST.
AFI Program Overview & Grant Application Process
For more information and to register:
http://IDAresources.org/calendar
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Resources
CFED, Idaresources.org, AFI Regional Consultants
Corporation for Enterprise Development (CFED) www.cfed.org
• Scorecard income and asset poverty information for each state.
IDA Resources Website www.idaresources.org
• Information on AFI, Financial Education, Tax Prep and EITC
Claims,
• Population specific resources of the ASSET Initiative:
Native Americans, Persons with Disabilities, Refugees,
Families with Young Children, Survivors of Domestic Violence,
Fathers and Families
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Possible Action Steps for CSBG Directors
Promoting the ASSET Initiative
Use available state discretionary funds to leverage activities with any
of the asset building tools
Convene state ACF leaders and Community Action Agencies.
Provide information on the ASSET Initiative. Connect ACF grantees
to AFI grantees and other asset building tools.
Work with state CAP Associations to embed the asset building tools in
its programming.
Explore possible state funds to leverage with AFI to create more AFI
Individual Development
Accounts. Apply for an AFI grant.
Other?
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Regional Performance and Innovation Consortia (RPIs)
The goals of this project are to:
• Establish ten RPIs to serve as regional focal points and lead the development of a
comprehensive and integrated system of T/TA capacity-building activities for State
Associations.
• Employ a regional approach to T/TA coordination and information dissemination to
build the long-term capacity of State Associations.
• Support the development of State Associations into self-sustaining and financially
independent organizations.
• Disseminate T/TA information focused on capacity-building and exemplary practice
throughout the CSBG T/TA Network.
The primary mission of the RPIs is to:
• Coordinate T/TA activities designed to strengthen the ability of State Associations to
leverage resources;
• Promote and sustain relationships between State Associations and the
corresponding State CSBG Lead Agencies; and
• Increase the capacity of State Associations to address the broad T/TA needs of
CSBG-eligible entities.
Regional Performance and Innovation Consortia (RPIs)
10 RPIs will be established in the well-defined geographic and align with established
ACF regions.
Assets for
Independence
Program
A 5-Year Federal Grant Program
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AFI IDA Participants
• Learn about financial and consumer issues
• Save in IDA Accounts
• Purchase Financial Asset
– First home
– Higher education or training and/or
– Small business
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Assets for Independence Grantees
• Since 1999 nearly 75,000 + IDA Savers have
deposited nearly $66 million into IDA Savings
Accounts.
• Grantees have experience working with a variety of
populations.
– Increasing credit scores, reducing debt, helping
Savers purchase homes, higher educations or
training, small businesses. Financial education.
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A Snapshot of AFI Participants
•
•
•
•
75,000 + IDA accounts and growing
80% of participants are women
Many single parent households
IDA is first savings account for most participants
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AFI Projects
•
•
•
•
•
400 projects throughout the nation
Projects partner with financial institution
Projects located within multi-purpose non-profits
State, local or Tribal governments
Multi-site networks of organizations
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Examples of AFI Project Grantees
• Community Action
Agencies
• Community Development
Corporations
• Community Development
Financial Institutions
• Credit Unions
• Faith-Based
Organizations
• Government Agencies
• Housing Finance Agencies
• State-Wide and Multi-State
Associations
• United Way Organizations
• Workforce Development
Agencies
• Youth Agencies
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Request for Proposals:
AFI Grants Overview
• FY 2012 Application Cycles
• January 25, 2012
• March 26, 2012
• May 25, 2012
• Up to $1,000,000 (average $350,000)
• 2011-2013 Funding Opportunity Announcement:
• www.AFIFundingAnnouncement.com
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