Assets for Independence: AFI
Background
Assets for Independence (AFI) is a Federal grant program that enables community-based nonprofits and State, local and Tribal government agencies to implement and demonstrate an asset-based approach for giving low-income families help out of poverty.
Participating Organizations. AFI is administered by the Office of Community Services (OCS), within the U.S. Department of Health and Human Services, Administration for Children and Families. OCS offers five-year AFI Project grants to several categories of organizations and agencies:
- Nonprofit organizations, including faith-based and community organizations
- State, local, or Tribal government agencies applying jointly with a nonprofit
- Community Development Financial Institutions that partner with a community- based anti-poverty group
- Low Income Credit Unions that partner with a community-based anti-poverty group
- Consortia of organizations and agencies that target multiple service areas
Project Activities. AFI Projects assist client families in a number of ways. First and foremost, they help participants save earned income in special purpose, matched savings accounts called Individual Development Accounts (IDAs). Every dollar in savings deposited into an IDA by a participant is matched from $1 to $8 by the AFI Project. The IDA mechanism promotes savings and enables participants to acquire a lasting asset after saving for a few years. Clients use their IDA savings, including the match funds, to acquire any of the following assets:
- A first home
- Capitalization of a small business
- Post-secondary education or training
To help clients with their IDA savings, all AFI Projects provide training and supportive services related to family finances and financial management. Services include:
- Financial education on issues such as owning and managing a bank account or a credit card
- Credit counseling and credit repair
- Guidance in accessing refundable tax credits including the Federal and State Earned Income Tax Credit (EITC), child tax credit, and others
- Specialized training about owning a home, starting a business or attending post-secondary school.
All AFI Projects participate in a national program evaluation to help determine the effectiveness of this asset-based approach to addressing poverty.
Clients Served. Generally, AFI Projects serve individuals and families with limited income and assets. Eligible clients include:
- Those who are eligible for Temporary Assistance for Needy Families (TANF)
- Those who are eligible for the Federal Earned Income Tax Credit (EITC)
- Those whose income is less than two times the Federal poverty line (approximately $37,000 for a family of four in 2004)
Clients may have no more than $10,000 in net asset wealth when they enroll in an AFI Project (not counting one automobile and a home).
Size of Project Grants. Up to $1,000,000 for five-year awards. The average AFI Project grant is approximately $350,000 for the five-year grant period. Applicants must secure non-Federal funds in an amount equal to or greater than their AFI Project grant.
Grant Opportunities. OCS issues AFI Project grants annually, in keeping with legislative authority and appropriations. Learn How to Apply for funding for an AFI Project grant.
AFI Legislation
AFI was established by the Assets for Independence Act (AFI Act) (PDF 117k) in title IV of the Community Opportunities, Accountability, and Training and Educational Services Human Services Reauthorization Act of 1998, P.L. 105-285. It was subsequently amended in December 2000.
Past Year Program Announcements
The Office of Community Services has administered funding for the Assets for Independence Demonstration Program since 1999. Past program announcements are below. They provide detailed information about the framework of current AFI Projects. To find out how to apply for future funding, go to How to Apply for AFI Funding.
- 2003 Program Announcement - AFIA (HTML, PDF, Word)
- 2002 Program Announcement - AFIA (HTML, Word)
- 2001 Program Announcement - AFIA (HTML)
