CalMoneySmart 2022-23 Grant

Purpose

CalMoneySmart is a grant program created by Senate Bill 455 (Ch. 478, Stats. 2019), which established the Financial Empowerment Fund. Through this program, the Department of Financial Protection and Innovation (DFPI) offers grants of up to $200,000 each to develop and deliver free financial education and empowerment programs to help unbanked and underbanked communities.

Description

Grant Uses Governor Gavin Newsom signed Senate Bill 455 (Bradford, Financial Empowerment Fund) on Oct. 2, 2019. This bill requires the DFPI to administer a program (CalMoneySmart) to offer qualifying nonprofit organizations grants of up to $200,000. The grants may be used to: Design, develop, or offer free classroom- or web-based financial education and empowerment content intended to help unbanked and underbanked consumers achieve, identify, and access lower-cost financial products and services, establish or improve their credit, increase their savings, or lower their debt. Provide individualized, free financial coaching to unbanked and underbanked consumers. Design, develop, or offer a free financial product or service intended to help unbanked and underbanked consumers identify and access responsible financial products and financial services, establish or improve their credit, increase their savings, or lower their debt. Additionally, every project funded with a CalMoneySmart grant must: Promote and enhance the economic security of consumers. Adhere to the five principles of effective financial education described in the Consumer Financial Protection Bureau’s 2017 report Effective financial education: Five principles and how to use them: Know the individuals and families to be served Provide actionable, relevant and timely information Improve key financial skills Build on motivation and, Make it easy to make good decisions and follow through. Include one or more specific outcome targets Include an evaluation component designed to measure and document the extent to which the project achieves its intended outcomes and increases consumers' financial well-being. Eligibility Criteria To be eligible for a CalMoneySmart grant, an organization must: Be a nonprofit organization – exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and organized and operated exclusively for one or more of the purposes described in Section 501(c)(3) of the Internal Revenue Code. Have no part of their net earnings inure to the benefit of a private shareholder or individual. Other Grant Requirements No more than 15 percent of the grant can be used to cover administrative costs, which may include, but are not limited to, costs of workforce overhead, human resources, accounting, finance, business and facility operations, and information technology. Grantees must submit to the DFPI an annual report documenting: The specific uses to which grant funds were allocated, The number of individuals aided through use of the funds, Quantitative results from grant funding, and Any other information requested by the Commissioner of the Department of Financial Protection and Innovation. Applicants selected for a grant must submit to the DFPI a completed, signed CalMoneySmart Agreement within five business days of the award notification. Applicants selected for a grant must submit to the Department a completed, signed Form STD. 204, “Payee Data Record,” within five business days of the award notification.