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Public Sector
Sources of Funding
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Type of Funding: Cash,
In-Kind, and Other Projects
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Does it Count as Non-Federal Cash Contribution?
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How Funds are Used [1]
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Websites
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State general funds
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Cash
Other Projects
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Yes if nonfederal
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Must follow AFI guidelines if funds are deposited in the Project Reserve Fund.
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State dedicated funds for education
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Cash
Other Projects
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Yes if nonfederal
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Some states have match funds
for tuition
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State Asset-Building Trust Funds
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Cash
Other Projects
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Yes if nonfederal
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A few states have legislated ways to award cash to agencies providing IDAs or other asset- building programs
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County/city general funds
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Cash
Other Projects
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Yes if nonfederal
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Per AFI guidelines if in Project Reserve Fund
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Community Development
Block Grant
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Cash
Other Projects
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Yes
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The only “Federal” source defined
as “nonfederal”.
Per AFI guidelines if in Project Reserve Fund
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Housing Finance Agencies
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Cash
In-Kind
other Projects
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Yes
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Depends on state/local policies, procedures, inclusion in allowable activities, long term plans
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National Council of State Housing Agencies
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Housing Trust Funds
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Cash
In-Kind
Other Projects
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Yes
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Also a source of leverage and access to additional sources for purchase
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State Departments of Economic Development/Small Business Development
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Cash
Other Projects
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Yes
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Cash for training, access to business plan expertise
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State Tax Credits
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Cash
Other Projects (Depends on state rules)
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Yes
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States authorize agencies to sell credits and use cash for specific projects or general operations
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Example from Washington State Department of Revenue
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Community Development Financial Institutions
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Cash
In-Kind
Other Projects
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No
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Member institutions may receive funds to support IDA programs; may be Community Development Corporations (CDCs) as well as banks or credit unions; also source of leverage for homeownership or business and in-kind via staff volunteers
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Workforce Development Agencies
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In-Kind Partner
Other Projects
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No
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Source of referrals
Potential to sequence participants from basic to
more advanced training, career planning, sometimes financial education
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TANF agencies
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In-Kind Partner
Other Projects
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No
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Can help support staffing but must also serve TANF-eligible individuals. Some states have TANF-funded IDA programs separate from AFI-funded programs
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HUD Family Self-
Sufficiency
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In-Kind
Other Projects
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No
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Eligible residents have a housing agency account that captures differential in rising rents; "savings" may be used for many purposes, including AFI asset purchases but this is not an AFI IDA savings account. Also a source of referrals and services such as financial education, case management
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HUD Section 8 Housing Choice Vouchers
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In-Kind
Other Projects
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No
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Families whose rent is partially subsidized by a voucher may apply the value of the voucher to a mortgage payment; includes financial education and asset training. Voucher availability and interest varies by housing agency
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HUD Home Investment Partnership Program (HOME)
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In-Kind Partner
Other Projects
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No
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May add funds to home purchase; may support homeownership training
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HUD Hope VI
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In-Kind Partner
Other Projects
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No
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These large revitalization projects include homeownership preparation and development of affordable housing; linked to housing authorities
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HUD Self-Help Ownership Program (SHOP)
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In-Kind Partner
Other Projects
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No
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Similar to Habitat for Humanity, credits sweat equity to purchase of home
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HUD Resident Opportunity and Self- Sufficiency (ROSS)
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In-Kind Partner
Other projects
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No
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Grants to housing agencies and various nonprofit organizations to deliver services to help public and Indian housing residents achieve self-sufficiency. ROSS allows its own IDAs but may also be source of referrals, financial education or homeownership training
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HUD Historically Black Colleges and Universities (HBCU)
Similar for Hispanic and Tribal institutions
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In-Kind
Other projects
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No
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Includes an IDA option; may be coordinated with a local nonprofit; often targets neighborhood around institution
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HUD Youthbuild
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In-Kind
Other projects
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No
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Source of referrals and education/career planning for youth
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Small Business
Administration (SBA)
loans
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OPS
In-Kind
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No
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May assist business asset purchase
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SBA Small Business Development Centers
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In-Kind
Other projects
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No
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Source of referrals, business plan development/review; other in-kind
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Service Corps of Retired
Executives (SCORE)
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In-Kind
Other Projects
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No
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Independent 501(c)(3) affiliated with SBA; source of business training, planning, mentoring
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U.S. Department of Agriculture Cooperative State Research, Education
and extension services
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In-Kind
Other Projects
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No
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Source of financial education curricula and teaching staff
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Corporation for National
And Community Service
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In-Kind
OPS
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No
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State and national level source of VISTA/Americorps volunteers for project staff
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Tribal Governments
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Cash
if Nonfederal
In-Kind Services
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Yes
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Some tribal groups have substantial revenues from business operations; may have financial education, supportive services
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Internal Revenue Service
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In-Kind
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No
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Training and other support for tax campaigns
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Community Services Block Grant
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In-Kind Partner
Other Projects
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No
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Community Action Agencies and tribal Governments can submit IDA projects as part of work plan. State CSBG director can write IDA projects as eligible activity
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Head Start
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Partner
Other Projects
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No
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Head Start Performance Standards site financial literacy as one goal
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Federal Home Loan Banks
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Cash
Other Projects
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Yes
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Difficult to coordinate eligibility for FHLB and AFI; and to get cash into reserve Fund to activate drawdown
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Foundations
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Cash
Other Projects
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Yes
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Per AFI guidelines if in Project Reserve Fund
Community, regional, local foundations more likely sources
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United Ways
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Cash
In-Kind Services
Other Projects
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Yes
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Per AFI guidelines if in Project Reserve Fund
Services such as evaluation, accounting, fundraising, referral network
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Financial Institutions
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Cash
In-Kind Services
Other Projects
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Yes
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Per AFI guidelines if in project Reserve Fund
Banks and credit unions may supply no fee accounts (leverage), financial, education staffing, assistance with policies, etc., as well as cash
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Corporate Foundations
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Cash
In-Kind
Other Projects
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Yes
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Corporate foundations generally linked with headquarters
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Corporations/ businesses
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Cash
In-Kind
Other Projects
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Yes
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Local plants, sites may have additional discretionary funds
May see IDAs as employee retention tool. May provide additional assistance with home purchase. May provide printing, help with media, facilities, staffing/volunteers for specific events, speakers, etc.
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Individual donors
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Cash
Other Projects
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Yes
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Require cultivation but represent a large proportion of cash to AFI projects
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Interest earned on Project Reserve Fund
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Cash
Other Projects
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No
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Grantee may use interest earned on funds not allocated to enrolled participants
Interest on portions allocated to participants goes to participants at least quarterly
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Revenue generated from
AFI project activities
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Cash
Other projects
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Yes
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Many grantees charge nominal fees for application, financial education, or other services. Some market materials developed for AFI, such as financial educational curricula or staff training curricula
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Revenue generated from other nonprofit agency activity
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Cash
Other Projects
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Yes
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Many agencies "earn" money by contracting to deliver services to state workforce, TANF or other programs. Some provide technical assistance to similar agencies or start ups
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Revenues from other for-profit activity
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Cash
Other Projects
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Yes
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Some have separate for-profit affiliates whose income supports nonprofit agency activities
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Donated Interest
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Cash
Other projects
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Yes
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Donor invests in long-term interest-bearing instrument and passes partial interest to agency as a tax-deductible donation
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Grassroots events
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Cash
Other Projects
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Yes
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Range from traditional fundraisers such as celebrity events, races, dedicated admission or merchant days. "Alumni" donations. May generate large amounts if there is a niche and developed over time
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On-line donations
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Cash
Other Projects
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Yes
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Web page includes donation option, usually associated with credit card access
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Local businesses or industry
associations
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Cash
In-Kind
Leverage
Other Projects
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Yes
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May support individuals from their industry sector, e.g., low-wage workers; may provide facilities or services, such as financial education or business planning assistance
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Faith-based Organizations
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Cash
In-Kind
Other Projects
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Yes
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May sponsor individuals from their institution; national level may establish or assist large programs if part of long-term plans; may provide services, staff/volunteers, facilities
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Cultural/ethnically based
organizations
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Cash
In-Kind
Other Projects
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Yes
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May sponsor individuals from their group or neighborhood; national level may establish or assist large programs if part of long-term plans; may provide services, staff/volunteers, facilities
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Service organizations
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Cash
In-Kind
other projects
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Yes
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May support participants from special population, overlap with primary service plan, e.g., disabled, certain neighborhoods, education initiatives, etc., staff
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Habitat for Humanity
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In-Kind Partner
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No
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Source of referrals, discounted home purchase for sweat equity, financial education, homeownership training
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Local media
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In-Kind
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No
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Cash is rare but publicity is valuable: stories about graduates, Public Service Announcements for outreach, etc. Link to coordinated funding/advocacy campaign
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