Application for Emerging Opportunity Program 2013

Transcription

1 Application for Emerging Opportunity Program 2013 Submit application to Deadline: 12:00 pm (noon) on Friday, September 6, 2013 LATE APPLICATIONS WILL NOT BE ACCEPTED. Please limit your application and responses to the form and space provided. Any materials submitted in addition to this application form will not be considered in the evaluation of the proposal. If you need assistance with this application or are unclear about how to respond to any questions please contact Nancy Saiz at (608) , Title of Proposal: IDA Pilot Program Amount Requested: 20,000 Is this program still viable if awarded less than requested? No Contact Person Agency or Group: Wendy K. Baumann, President/CVO; Deborah Ellis-Brock, WWBIC Project Director Wisconsin Women's Business Initiative Corporation Address: 2300 South Park Street, Suite 103 Telephone: Is this Group a 501 (C) (3)? or No Incorporated under Chapter 181 Wis. Stats? or No Aldermanic District 14 Name of Fiscal Agent (if Applicable ) Fiscal Agent Contact Person: 1. Emerging Need or Opportunity: (5000 characters) Please describe a) The specific problem or issue the proposal intends to address, b) how it intends to address the issue or problem and c) why it is important to address it now? Even in hard times you can save a little and in time a little turns into a lot. I m still saving and now I am a homeowner. --Jerrina McBride, WWBIC IDA Client While the economy slowly improves, many individuals are still struggling and continue to search for new avenues of hope and opportunity. It remains incredibly difficult to climb out of debt and build lives for themselves and their families. WWBIC s programs and services help these individuals build wealth and achieve economic self-sufficiency through personal finance skills. The Wisconsin Women s Business Initiative Corporation (WWBIC) is a statewide economic development organization promoting business creation, expansion, sustainability, and job creation and retention in both urban and rural areas. Our services are open to anyone in Wisconsin, but our mission emphasis is women, people of color, and people of lower wealth and incomes those most likely to be underserved by traditional financial institutions. WWBIC s work has resulted in self-sufficiency and poverty alleviation for residents. WWBIC is seeking support to pilot our Individual Development Account (IDA) program, our assetbuilding program benefiting "working poor" individuals and families, in the City of Madison. The program offers opportunity to build assets and move out of poverty through matched savings accounts and acquired money management skills. WWBIC has sustained this program in Milwaukee for more than 13 years, and we have enjoyed great past success with measurable outputs. Since the inception of the program in Milwaukee, 129 individuals have purchased homes, 76 have started or expanded businesses, and 77 have returned to school. Participants must meet low-income criteria, but also have earned income. After attending and graduating from WWBIC's Make Your Money Talk series, participants may open an IDA. Each dollar the participant saves in an IDA is 1

2 matched with one dollar from the federal Assets for Independence (AFI) program and one privately-raised dollar. The participant can accrue up to 6,000 in combined savings for first time home purchase, starting or expanding a business, or returning to school to increase earning power. WWBIC respectfully requests 20,000 to pilot this IDA program in the City of Madison. We would use 18,000 of Emerging Opportunity Program funds for IDA matching funds and 2,000 for programmatic administration - monitoring bank accounts, teaching classroom sessions for the education portion of the program, and working one-on-one with participants. Individual Development Accounts (IDAs) have lasting economic impact. With Make Your Money Talk participants can save not only for themselves but also on the behalf of another family member - impacting more than one generation, helping whole families build self-sufficiency. Our IDA clients remain our clients for 30 months or more. Those who choose a business for their asset can use our microenterprise services, including access to capital. We were grateful to continue this programming throughout the recession, when many low-income people were just one step away from poverty. Our programming: Helps clients become accustomed to saving; Helps clients develop discipline to save for longer-term goals in the face of everyday demands; Gives clients an introduction to banking, bookkeeping and overall money and credit management; and Helps clients realize previously unattainable savings goals through the 2:1 matching component. We will have a house with the help of WWBIC and we plan to get assistance with starting a business as well in the next year or so. --Chakoia Morehouse, WWBIC IDA Client 2. Intended Service Population: (2500 characters) Please describe the intended service population (e.g., where they are located, ages, ethnicities, income ranges, English language proficiency etc.). This pilot program will serve residents in the City of Madison. WWBIC has ongoing strategies for reaching community residents and key institutions about asset-building in general, and the IDA program in particular. We continue to develop our website and use of social media, focusing on women, people of color, and people of lower wealth and incomes. We recruit from: WWBIC s existing programs, including lending, business training and business assistance. Other area social service and TANF agencies, W-2 agencies, Job Centers, and the Department of Workforce Development. Households with children. 92% persons of color, more than half with incomes below poverty. 3. Project Goals: (2500 characters) Please describe the specific goals, objectives and intended impacts of this project. Please indicate how you intend to measure the proposal s outcomes, effectiveness or specific benefits. The main goal is to open at least nine new Individual Development Accounts (IDAs) which will be matched 2:1 with federal and Emerging Opportunity Program sources. Emerging Opportunity Program funds will provide matches of up to 2,000 per IDA. Our research shows that participants find their new budgeting skills stand them in good stead, and many continue to apply them years after their Make Your Money Talk graduation. We collect and track: Participant demographic and income information IDA account Information (# accounts opened and closed, savings levels, withdrawals, emergency withdrawals, closures, attrition rate) Participant progress (asset achievement, skill development, success stories, integration into other WWBIC business development programs, income growth) Marketing/Outreach strategies and collaboration (successful vehicles, enrollment rates) Make Your Money Talk Class Feedback and Outcomes (tools/concepts, retention rate, facilitator evaluation) Cumulative IDA program information since inception Information session participants (that precede each Make Your Money Talk series ) Total amount deposited by IDA holders Sources and use of match funds Total combined savings spent on asset purchases 2

3 Wealth Builders participation 4. Proposed Timeline for Implementation: Activity Estimated Date of Completion Hold WWBIC Make Your Money Talk Classes March 2014 Savings & Match Period December 2014 Spend Out Period June Coordination: (2500 characters) Please describe the level of involvement between your organization and residents, potential participants, service providers, funders, government bodies, or other public or private stakeholders in the development of this proposal and its expected implementation. WWBIC works with AFI and private organizations to implement the IDA program. Each dollar participants save in an IDA is matched with one dollar from the federal Assets for Independence (AFI) program and one privately-raised dollar. Through all of our programming, we have partnered with many faith-based and non-faith-based organizations that provide wonderful opportunities for support. We have a great relationship with SCORE often referring clients back and forth and working with clients on business plans as well as providing support to exist businesses. We work closely with many organizations, such as the Dane County UW-Extension Financial Education Center, the Madison Development Corporation, and the First Unitarian Society of Madison. We anticipate continuing to work with these organizations to ensure the success of our outreach project. If this project is focused on a particular geographic area: Have you discussed your application with the Alderperson(s) for the district(s) that will be most directly affected by your proposal? No 6. Funding: (500 characters each) a) What other funding have you sought and/or received to support this project? We have received funding from AFI to support part of the match for this project. b) Do you anticipate future funding needs from City sources associated with this proposal? Please describe. 7. Budget: As this project continues to grow, our need for future funding may increase as well. Summarize your project budget by estimated costs, revenue, and fund source. BUDGET EXPENDITURES PROJECT COSTS CITY REQUESTED NON-CITY REVENUES SOURCE OF NON-City FUNDED PORTION A. Personnel Costs 1. Salaries/Wages (show detail below) 3

4 BUDGET EXPENDITURES 2. Fringe Benefits and Payroll Taxes B. Program Costs PROJECT COSTS CITY REQUESTED NON-CITY REVENUES 1. Program supplies and equipment 2,000 2,000 0 N/A 2. Office Supplies 3. Transportation 4. Other (explain) 36,000 18,000 18,000 AFI C. Space Costs 5. Rent/Utilities/Telephone 6. Other (explain): D. (A + B + C) 38,000 20,000 18,000 SOURCE OF NON-City FUNDED PORTION Explanation of Other expenses: (500 characters) Match funding for Individual Development Accounts. Up to 2,000 per IDA is matched through the Emerging Opportunity Program, and up to 2,000 per IDA is matched through AFI. 8. Personnel Chart: Title of Staff Position F.T.E.* Proposed Hourly Wage* *FTE = Full Time Equivalent (1.00,.75,.50, etc.) 2080 hours = 1.00 FTE *Note: All employees involved in programs receiving City of Madison funds must be paid the established Living Wage as required under City of Madison Ordinance The Madison Living Wage for 2013 is per hour. Effective January 1, 2014 December 31, 2014, the Living Wage will rise to per hour. 4

5 -SIGNATURE PAGE- 1. Affirmative Action: If funded, applicant hereby agrees to comply with City of Madison Ordinance and file either an exemption or an Affirmative Action Plan with the Department of Civil Rights. A model Affirmative Action Plan and instructions are available at 2. Living Wage Ordinance: All employees involved in programs supported by City of Madison funds must be paid the established Living Wage as required under City of Madison Ordinance The Madison Living Wage for 2013 is per hour. Effective January 1, 2014 through December 31, 2014, the Living Wage will rise to per hour. For more information on Living Wage requirements, go to 3. City of Madison Contracts: If funded, applicant agrees to comply with all applicable local, State and Federal provisions. A sample contract that includes standard provisions may be obtained by contacting the Community Development Division at (608) If funded, the City of Madison reserves the right to negotiate the final terms of a contract with the selected agency. 4. Signature: Enter Name: Wendy K. Baumann By entering your initials in the box, WKB You are electronically signing your name and agreeing to the terms above. Date: 09/05/2013 5