Citi Foundation U.S. Grant Program Nonprofit Partner Training

Citi Foundation U.S. Grant Program Nonprofit Partner Training

Objectives 1. Citi Foundation Overview 2. Review Process and Due Diligence 3. Focus Areas and Result Paths 4. Reporting Requirements 5. Next Steps 2

3 Citi Foundation Overview

Citi Foundation Mission and Investment Priorities The mission of the Citi Foundation is to promote economic progress and create measurable impact in low- income communities around the world. Investment Priorities Financial Inclusion Youth Economic Opportunities Urban Transformation Our Impact enable Financial Stability catalyze Jobs build Thriving and Resilient Cities 4

5 Review Process and Due Diligence

Citi Foundation Grant Making Process Communication about a program does not end when the grant is made. Ongoing monitoring of the program and reporting are important for ensuring and communicating successful program implementation. Nonprofit Consideration Due diligence should be part of your conversation with your relationship manager before submitting your grant application. Ongoing Monitoring and Progress Reporting Planning If a grant application is submitted without complete documentation or unclear programmatic information, the Foundation will have to reach out to the nonprofit, slowing down the review process. Foundation Review Relationship Manager Application Review Relationship managers have the ability to review a grant application and provide feedback before it is sent to the Foundation. 6

The Foundation assesses an organization s financial health, management of existing Foundation grants, and the new program when considering a grant request Organization Consideration & Planning In addition to assessing your organization s financial health, due diligence also includes an assessment of how grants that you may have already received from the Foundation are being managed. To be considered for funding, you should: Submit due or past due reports Account for any unspent funds from previous year grants and consider grant modifications if necessary If invited to apply for funding, complete all application questions thoroughly and address any audit, financial, or governance issues Attach all required documentation in the required template and format During Foundation Review, we specifically look at: Foundation Review Quality & Completeness Review Completeness of required documentation Organization s financial health Organization s leadership and governance Programmatic Review Strategic alignment with the Foundation s mission and priorities Program design and effectiveness Impact measures and results 7

Required Attachments Program Budget Organizational Budget Complete Externally Audited Financials Most Recent IRS Form 990 Copy of a Blank Voided Check Board of Directors and Senior Staff List

9 Focus Areas and Result Paths

Investment Types Direct Service Investments in Direct Service are focused on the positive gains that will accrue for individual participants, communities or organizations. Capacity Building and Planning Investments in Capacity Building & Planning are focused on how your own organization will be different and how this will enable you to increase results for those you serve. Systems Change Investments in Systems Change are focused on how your work will inform change on a macro-level including influencing policy or changing practitioner practices. Often programs are more multi-year and may require both short- and long-term results to be defined. 10

Financial Inclusion: Results Path Increases in the number of low-income individuals who adopt positive financial behaviors and accumulate and preserve financial assets Increases in the number of enterprises that provide new income generation and /or employment opportunities for low-income individuals Positive financial behaviors and assets Build and preserve financial assets Access to capital Confirm additional revenue generation or job creation Maintain changes to financial behavior Access to capital to start or expand a business Demonstrate financial knowledge, set financial goals, and establish positive financial behaviors Adopt new practices or knowledge through technical assistance and/or other business development services Assess needs and market challenges or business opportunities Examples: By the end of the grant period, 75 of the 85 participants in the program will have opened a savings account, set a savings goal and used the account to save for 6 months consecutively to accumulate at least $1,000. Out of the 50 participating entrepreneurs, at least 30 will develop a business growth plan, access financing to implement their plan, which will result in an average 15% increase in revenue and the creation of at least 20 new jobs by the end of the grant period. 11

Youth Economic Opportunities: Results Path Increases in the number of low-income youth who obtain employability skills, become employed or start their own income-generating business. Secure employment, start or expand an enterprise Gain work experience Obtain employability skills* Establish career aspirations * Employability skills include, but are not limited to, leadership skills, entrepreneurship skills, technical and vocational training and post-secondary education. Example: By the end of the grant period, 500 youth will participate in the Enterprise and Technology Program, 400 of these youth will be able to demonstrate 2 or more of the following employability skills: 1) Sales & Marketing; 2) Communications and Negotiation, 3) Team Leadership 4) Information Communications &Technology. 350 of these youth will secure employment. 12

Urban Transformation: Results Path Increases in urban-focused initiatives that contribute to the economic progress and/or environmental sustainability of low-income residents and communities Measurable, improved community outcomes Implementation of plan or strategy completed Assess community needs and identify opportunities for change or improvement Acquire political, financial, technical resources and/or partners to implement plan or strategy Example: By the end of the grant period, create opportunities to transform urban spaces in low-income communities so that residents have access to resources that will improve their livelihoods, such as: Employment and community centers; Safe and reliable transportation; Safe spaces for youth skills development; Energy efficient upgrades 13

Capacity Building and Planning Result Path for Organizations Improved participant results Organizational results achieved Use new capacity and confirm on track to achieve organizational results Identify and update systems, policies, materials, practices Examples: By the end of the grant period, we will launch a fully redesigned technology platform that will build our organization s capacity to: 1) improve program implementation to strengthen client relationships; 2) analyze data and use it to inform case management strategies on a timely basis: and 3) increase organizational efficiency to lower program expenses each year. 14

Systems Change Policy Change Practice Change Improved results for populations served Changes in policies and/or resources Changes agreed to by stakeholders Practitioners integrate best practices Practitioners agree to adopt best practices Propose changes to stakeholders Best practices refined/packaged Create action plan Best practices piloted Stakeholders agree to address issue Research issues and disseminate ideas Best practices defined Many initiatives will address both Policy and Practice Change Example: Short term: Initiate market research to identify client demand among the poor around financial products or services that provide them with access to savings. Interview at least 2,000 microcredit clients and analyze key data by the end of 4 th quarter 2017. Long term: By the end of 2019, at least 25 regulated microfinance institutions are authorized to provide savings products and will have developed new financial products and services that meet the needs of low-income consumers and will be offering them to customers. 15

16 Reporting Requirements

Reporting Deadlines Program Start Date Interim Report Final Report Interim and Final Report dates will be determined based on this date. Should account for the time that it will take for the Citi Foundation to review the grant application Programs that will take more than 12 months to implement should be discussed with relationship managers and clearly articulated in grant applications Due 6 months after Program Start Date Provide an update on program Highlight issues that might require changes in the program to meet goals or complete implementation Provide an opportunity for the relationship manager and Foundation to help the nonprofit course correct before time and money run out Due 13 months after Program Start Date Capture program outcomes and activities Confirm program expenditures If program will not be complete or funds not fully spent within the grant period, nonprofit should reach out to the relationship manager as early as possible to request a modification If necessary, additional reports can be added and/or report deadlines can be amended to correspond with program implementation. If reports are not submitted in a timely manner, future funding decisions may be affected. 17

Ongoing Monitoring and Progress Reporting are valuable opportunities to communicate progress of the program and course correct where necessary When completing your progress reports, highlight any of the following issues and connect with your Citi Local Relationship Manager about the appropriate next step. Interim Report 1. Your organization is not on-track to spend down grant funds by the end of the grant period 2. Your organization would like to spend remaining grant funds in a different way than indicated in the approved program budget 3. Your organization would like to make significant change(s) to the program model 4. Your organization does not anticipate reaching results indicated in approved grant application Final Report 1. Your organization did not spend all of the grant funds 2. Your organization did not achieve results stated in the grant application If you encounter any of these issues during the course of the grant period but a report is not yet due, reach out to your relationship manager so that a plan of action can be determined. Do not wait for the report to be due. 18

19 Next Steps

Next Steps Submit any due or overdue Progress Reports for previous year programs Review the 2017 Citi Foundation Guidelines Check with Citi Relationship Manager for your submission deadline Log into the grants management system to access the 2017 application: http://citi.fluxx.io Work with your Citi Relationship Manager in order to complete the application Upload all required documentation to the application For technical assistance contact: foundationsupport@citi.com 20

21 Appendix

Completing the Direct Service Application Program Overview Community Need Program Summary Program Narrative Use of Funds Program Timeline Participants Served Results Statement Citi Engagement If your organization operates at the Local/state-wide level, clearly state the local community need or issue affecting low- and moderate-income (LMI) individuals or small businesses (in LMI census tracts). National level, please include national needs, trends and statistics that relate to the issue you seek to address which affect LMI individuals or small businesses (in LMI census tracts). Brief introduction to program, no more than 5 sentences. Important information to be included: Total number to be served during the grant period Key activities to be implemented Expected interaction, including duration, with participants Describe program in detail and include: population to be served and program component specifics (i.e. expected interaction, including duration, with participants) General explanation as to how funds will be used (i.e. program staff salaries, program materials) Response should be consistent with the information provided in the detail program budget attachment Please note Citi Foundation funds cannot be used as loan capital, interest expense, or matched funds List of major program activities Timeline should cover entire 12-month grant period At least one activity should focus on program evaluation Describe the individuals, micro and small businesses and/or organizations that you will serve during the grant period. Comment on whether the majority of the population to be impacted (directly or indirectly) is LMI; this should be the case. Include clear, measurable anticipated impact/behavior change Make certain the narrative directly aligns with the responses provided in the Quantify Your Results section Please note that although we encourage the engagement of Citi employees in Citi Foundation funded programs, the involvement of Citi employees is not a determining factor for funding consideration. Furthermore, any past, current or potential future business with Citi or any Citi subsidiary does not in any way influence grant funding decisions and business with Citi should not be mentioned anywhere in the grant application or progress reports.

Completing the Direct Service Application LMI Verification - Youth Economic Opportunities ( How do you verify the percentage of LMI individuals and/or small businesses that have annual revenue of $1 million or less and are located in LMI census tracts? ) Program Registration Forms Student/Family Income Data Program Registration Forms that capture annual income of participants. You must confirm that based on the information collected from the forms, you will verify that greater than 50% of participants have annual income that is less than 80% of the Median Family Income (MFI) in the Metropolitan Statistical Area (MSA) and are thus classified as low- and moderate-income (LMI). For programs reaching college students, use the above methodology Federal Free or Reduced Lunch (FRL) Data (middle/high school programs) For programs that serve students at one middle/high school, please include the name of the targeted school and the percentage of students who qualify for Free or Reduced Lunch (FRL) at that school greater than 50% of students at the targeted school must qualify for FRL. For programs that serve students at multiple middle/high schools, you must provide the total # of students at each school, the percentage of students who qualify for FRL at each school and the # of LMI students at each school. You must also provide the total percentage of LMI students served at all schools. To do this, please follow the steps outlined on the next two slides. Please note you must provide name of source (name of website, publication, etc.) used to obtain Free or Reduced Lunch (FRL) data/statistics. Some FRL sources include: External Resources www.nces.ed.gov/globallocator http://dashboard.publiccharters.org/dashboard/home http://www.schooldigger.com/ www.greatschools.org http://high-schools.com/

How to demonstrate LMI focus for your program that involves students from more than one middle/high school using Free or Reduced Lunch (FRL) data/statistics If FRL source is stated in terms of number of students: List each school served, # of students FRL eligible, total # of students and use the following formula to obtain % of LMI served at all schools: Example: Name of School Total # of Students FRL eligible (i.e. # of LMI students) Valley HS 301 372 Highland HS 334 619 River HS 118 245 Redwood HS 460 742 1213 Total LMI students 1213 divided Total by LMI students 1978 Total students divided by 1978 Total students % of LMI students served at all schools = 61% Note: Round percentages to nearest whole number (e. g. 61.3% = 61%) Total # of Students

How to demonstrate LMI focus for your program that involves students from more than one middle/high school using Free or Reduced Lunch (FRL) data/statistics (continued) If FRL source is stated in terms of a percentage of students: List each school served, % of students FRL eligible, total # of students, total # students FRL eligible (calculated by multiplying % of students FRL eligible by total # of students) and use the following formula to obtain % of LMI served at all schools: Example: Name of School % of Students FRL eligible Total # of Students Total # of Students FRL eligible Lincoln HS 81% X 301 = 244 Westside HS 54% X 334 = 180 Ocean HS 48% X 118 = 57 Woodridge HS 62% X 460 = 285 1213 766 766 LMI students divided by 1213 students % of LMI students served at all schools = 63% Note: Round all numbers & percentages to nearest whole number (e.g. 63.1% = 63%)

Completing the Direct Service Application LMI Verification - Financial Inclusion ( How do you verify the percentage of LMI individuals and/or small businesses that have annual revenue of $1 million or less and are located in LMI census tracts? ) Financial Coaching/Small Business Technical Assistance (without direct access to financing) Client Intake Forms/Program Registration Forms that capture annual income of participants (i.e. individuals looking to start a business and/or small business owners). You must confirm that based on the information collected from the forms, you will verify that greater than 50% of participants have annual income that is less than 80% of the Median Family Income (MFI) in the Metropolitan Statistical Area (MSA) and are thus classified as low- and moderate-income (LMI). Direct Delivery of Financial Products (i.e. credit, savings and remittance products) Client Intake Forms/Program Registration Forms that capture annual income of participants. You must confirm that based on the information collected from the forms, you will verify that greater than 50% of participants have annual income that is less than 80% of the Median Family Income (MFI) in the Metropolitan Statistical Area (MSA) and are thus classified as LMI. Small Business Training Programs (with direct access to financing) Greater than 50% of participating small businesses have revenues of $1 million or less AND Located in LMI census tract(s) (www.ffiec.gov) AND Will create jobs for LMI individuals BUT If businesses are not located in LMI census tract(s), you will need to provide information on how you are creating jobs for LMI individuals

Completing the Direct Service Application REO Acquisition LMI Verification - Urban Transformation ( How do you verify the percentage of LMI individuals and/or small businesses that have annual revenue of $1 million or less and are located in LMI census tracts? ) Property located in low- and moderate-income (LMI) census tract (www.ffiec.gov; state government website), disaster zone or government designated redevelopment area OR Greater than 50% of the individuals/families to occupy the units will have annual income that is less than 80% of the Median Family Income (MFI) in the Metropolitan Statistical Area (MSA) and are thus classified as LMI. Predevelopment (Must be part of a broader community development strategy) Confirmation that property to be developed is located in an LMI census tract OR Greater than 50% of individuals/families to occupy units will have annual income that is less than 80% of the MFI in the MSA. Nonprofit Capacity Building Confirmation that the majority of the individuals served by each participating nonprofit are LMI (organization uses intake forms to verify that greater than 50% of participants have annual income that is less than 80% of the MFI in the MSA). Required to include an estimate of the # individuals from each participating organization who meet the LMI criteria and will benefit from the technical assistance program. You must also provide an explanation of how the participating organizations will collect this data. If your published mission statement is to serve LMI individuals and/or communities, please make certain to include that information in the mission statement question of the application.

Completing the Capacity Building & Planning Application Program Overview Program Summary Brief introduction to capacity building activity, no more than 5 sentences. Program Narrative Use of Funds Program Timeline Results Statement LMI Verification Citi Engagement Describe the challenge or opportunity faced by your organization Describe the specific new capacity you will create in response to this challenge or opportunity o How will the new capacity address your organizational need(s) e.g. staffing, improvements in organizational structure, project planning, reallocation of resources, program evaluation? o How will this new capacity benefit those you serve? o How will this new capacity enable you to expand your reach/achieve scale? General explanation as to how funds will be used (i.e. program staff, evaluation consultant salary) Please note Citi Foundation funds cannot be used as loan capital, interest expense, or matched funds List of major program activities Timeline should cover entire 12-month grant period Final activity should focus on program evaluation activities Include clear, measurable anticipated impact/behavior change State the new capacity or capacities to be in place by the end of the grant period AND explain how this will lead to improved results for those you serve. Confirm that your mission, as published, is to serve low- and moderate-income (LMI) individuals in addition to the rationale used to verify that your organization serves LMI individuals Historical data is acceptable (i.e. Historically 87% of clients have had annual income that is less than 80% of the median family income, according to FFIEC data, and we track that by collecting client intake data and verifying through bank statements and/or tax return information. ) Please note that although we encourage the engagement of Citi employees in Citi Foundation funded programs, the involvement of Citi employees is not a determining factor for funding consideration. Furthermore, any past, current or potential future business with Citi or any Citi subsidiary does not in any way influence grant funding decisions; business with Citi should not be mentioned anywhere in the grant application or progress reports.

Completing the Systems Change Application Program Overview Program Summary Brief introduction to program, no more than 5 sentences System, Condition or Issue By system, condition or issue we mean relevant constraints faced by low- and moderate-income (LMI) individuals, communities or small businesses (in LMI census tracts) Please be specific about what an improved system would look like and what specific changes are needed Program Narrative Describe your program in detail outlining the key elements, interaction with stakeholders and how your program will improve the system or condition described in the grant application Use of Funds General explanation as to how funds will be used (i.e. program staff, evaluation consultant salary) Please note Citi Foundation funds cannot be used as loan capital, interest expense, or matched funds Program Timeline Short-term Results Statement Long-term Results Statement List of major program activities Timeline should cover entire 12-month grant period Final activity should focus on program evaluation activities Summarize the impact you anticipate by the end of the grant period Summarize how your efforts will contribute to the longer-term policy and/or practice change you seek to inform LMI Verification Since verifying CRA eligibility is usually more challenging when it comes to Systems Change investments, we handle those on a individual basis. Please contact your Citi Relationship Manager for guidance. Citi Engagement Please note that although we encourage the engagement of Citi employees in Citi Foundation funded programs, the involvement of Citi employees is not a determining factor for funding consideration. Furthermore, any past, current or potential future business with Citi or any Citi subsidiary does not in any way influence grant funding decisions; business with Citi should not be mentioned anywhere in the grant application or progress reports.