‘Tis the Season

As many kicked off the holiday season last week, here at FUND Consulting the end of November also marked the end of what our team has dubbed  “FA Application Season”.  The application round opened on September 29, 2014, and closed with an application submission deadline of November 24, 2014.  During this time, the FUND team worked with Annual Service Package clients to finalize the applications based on the results of strategic assistance and application preparation work throughout the year.  In addition to providing comprehensive application preparation services to our current client base, FUND was proud to work with NeighborWorks America, providing application support services to 37 NeighborWorks affiliates nationwide. As a result of the depth and breadth of our work with CDFIs, FUND Consulting gains insight into the best practices of CDFIs, as well as the challenges faced by CDFIs working to hone their business models.

The CDFI Fund application requires an extensive amount of information. When a client cannot provide the detail requested in the application, it helps the FUND team pinpoint areas in which the CDFI needs to build capacity. This year, the FUND Consulting team observed the following common challenges from applicants:

• Most applicants had difficulty linking the award request to their strategic goals.
• Many applicants had a difficult time identifying competitors and how marketing is designed to address competition.
• Some applicants felt challenged by the concept of leverage, and how the FA award would help the CDFI attract additional funding sources.

FUND Consulting services are designed to help our clients identify capacity needs, develop strategies to address them, and  link strategies to award requests.  While the application season is over, FUND Consulting is looking forward to beginning its cycle of strategic services to help clients increase efficiency and maximize community development impact.

New Year Resolutions

At this time of year, many of us resolve to make changes to improve our quality of life.  Many resolve to lose weight, others to be more charitable. Some vow to improve their finances.  These same principles can be applied to organizations. Perhaps your organization can develop strategies to cut the fat and operate more efficiently, avoid mission drift, and become financially more sustainable.

FUND Consulting is starting the year by focusing our work with clients on strategic services, designed to address these issues. Our strategic services are focused around market analysis, strategic planning, and capitalization planning.  While all of these services are effective as stand-alone products, we are linking the deliverables to our grant writing efforts.  The outcomes of this process include:

• A clear understanding of needs and strengths well in advance of application preparation
• Grant requests that are closely aligned with the core of the organization
• Streamlined work processes and increased quality

How does your organization tackle its funding requests? How are they linked to your strategic management processes?  What can you vow to do better this year?

 

2014 CDFI Fund Applications

On October 28, 2013 The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) released its fiscal year (FY) 2014 Notice of Funds Availability (NOFA) for the Community Development Financial Institutions Program (CDFI Program) and Native American CDFI Assistance Program (NACA Program).

The Administration’s FY 2014 Budget for the CDFI Fund requests up to $191 million in Financial Assistance (FA) and Technical Assistance (TA) awards:

• $144 million for CDFI Program awards;
• $35 million for Healthy Food Financing Initiative Financial      Assistance awards; and
• $12 million for NACA Program awards.

Repeat applicants will notice a significant difference in the application, with a shift away from primarily narrative responses to a data driven application focused on an integrated business model and measurable performance. Based on this new application structure and focus, CDFI practitioners may wish evaluate the skills needed on their application preparation team. While in the past, many CDFIs turn to those with a background in grantwriting, this new application necessitates the need for a team that is also skilled in data collection, analysis, and strategic management in order to develop a compelling case for funding.

This new application reinforces the issues that we discussed in our last blog. Meaning, that the CDFIs most poised for funding viability and organization sustainability employ a strategic management approach. This includes a distinct definition of core purpose, a deep understanding of the CDFI’s target market, clearly articulated goals, and the ability to define and achieve a social return on activities by developing and deploying products and services tailored to the needs of the target market.

The deadline for submission of the CDFI Program and NACA Program applications is December 23, 2013 at 12:00 p.m. Eastern Time. FUND Consulting is fully subscribed for comprehensive application preparation services, but is taking on application review clients.

CDFI Fund Opens FY 2013 Funding Round for Bank Enterprise Awards (BEA) Program

Earlier this week the CDFI Fund announced the availability of approximately $17.1 million in funding for the Bank Enterprise Award (BEA) program.  The BEA Program supports FDIC-insured financial institutions around the country that are dedicated to financing and supporting community and economic development activities.

The BEA Program complements the community development activities of insured depository institutions by providing financial incentives to expand investments in CDFIs and to increase qualified lending, investment, and service activities within economically distressed communities. Activities that qualify depository institutions for a BEA Program awards occur in census tracts where at least 30 percent of the population lives at or below the national poverty level and where the unemployment rate is 1.5 times above the national average. Since inception, the CDFI Fund has awarded approximately $376 million through the BEA Program.

Applications are due Friday, July 12, 2013.  Click here for more information.

CDFI Fund Opens FY 2013 CDFI and NACA Funding Rounds

Today the CDFI Fund opened the FY 2013 funding round for the Community Development Financial Institutions Program (CDFI Program) and Native American CDFI Assistance (NACA) programs.  Awards under the CDFI and the NACA Program help to support CDFIs and expand their capacity to provide access to credit, capital, and financial services to low-income communities and populations.

The CDFI Fund expects to provide up to $165 million in Financial Assistance (FA) and Technical Assistance (TA) awards for FY 2013 as follows:

• $130 million for CDFI Program awards;

• $12 million for NACA Program awards; and

• $23 million for Healthy Food Financing Initiative.

No funds have yet been appropriated for these funding rounds and will be subject to Congressional appropriations. In order to receive a FA award in the FY 2013 funding round, applicants must first be newly certified or recertified in 2013, unless the applicant is a certified CDFI whose original three-year certification term has not expired. Additional information will be forthcoming from the CDFI Fund in late January 2013 regarding the application process. This information will be announced publicly, as well as individually sent to each existing certified CDFI.

The deadline for submission of CDFI and NACA Program applications is February 28, 2013 at 11:59 PM Eastern Time.

Application guidelines, application forms, and more information can be found on the CDFI Fund’s website.