Grant Proposal Guide - Ways to Work

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The guide is arranged into five major sections: General Research Guidelines, General Submission Guidelines, Grant Proposal Outline, Sample Narrative, and the Appendix.
Grant Proposal Guide

Revised 9/17/2012

TABLE OF CONTENTS Preface..............................................................................................................1 General Research Guidelines ...........................................................................2 General Submission Guidelines .......................................................................3 Letter of Intent Grant Proposal Grant Proposal Outline ....................................................................................5 Cover Letter Proposal Cover Sheet Executive Summary Organizational Background Project Description Evaluation Funding Consideration Conclusion Program Budget and Budget Narrative Attachments and Supporting Documentation Sample Narrative .............................................................................................9 Ways to Work Background The Need The Solution: Ways to Work The Clients Implementation Results Appendix ..........................................................................................................19 Sample Cover Letter Sample Renewal Request Letter Sample Letter of Intent Sample Engagement Document Proposal Cover Sheet Template Program/Project Budget Template Organization Budget Template Sample Budget Narrative Sample Endorsement Letter Options for Your Supporters Online Fund Development Resources .............................................................37

PREFACE

This guide is intended to provide members of the Alliance for Children and Families with information and resources for writing grant proposals for a Ways to Work program. The document is meant to be a useful resource for those that are new to grant writing, as well as intermediate and experienced fund development professionals. Although there are no substitutes for thorough research on prospective funders, and no guarantees for the success of any funding proposal, the Grant Proposal Guide is meant to make grant writing for Ways to Work easier, faster, and more productive. The guide is arranged into five major sections: General Research Guidelines, General Submission Guidelines, Grant Proposal Outline, Sample Narrative, and the Appendix. Those already familiar with drafting proposals may choose to skip to the Sample Narrative and Appendix sections. The text and templates in these sections can be used to expedite the process of crafting a letter of intent or proposal for your Ways to Work program. Although the sample text and templates may not fit all proposal scenarios, the electronic version of this guide allows the user to copy, paste, and modify the samples to conform to specific funders’ guidelines. If you have questions or comments about the information presented in this guide, please send an email to [email protected].

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General Research Guidelines Before submitting a grant proposal, it is important to research a foundation’s requirements, interests, application process, and relationships and past obligations your organization may have with the foundation. The following steps are intended to assist and guide you through the research process. Funder’s Interests  Research the funder’s interests, mission, and past grants. Foundations exist for the sole purpose of funding programs whose mission is in alignment with theirs.  If applicable, obtain a copy of their annual report and application guidelines. Due Diligence  Before submitting an application, check to see if your organization has ever received a grant from this funder. If yes, double check that your organization has fulfilled all reporting requirements. Otherwise, they may not accept your application.  Has anyone in your organization submitted a recent proposal? If yes, then you may not be able to submit another proposal. However, there are some foundations that will accept a proposal from the same organization if it doesn’t fall within the same funding area. Relationships are KEY  Once you have found a good match for your program, ask if your board of directors, volunteers, or staff knows someone on the funder’s board or staff.  It’s best to call the appropriate person at the funding organization to talk about your request and find out about deadlines for proposal submission, format requirements, and whether Ways to Work may be a “match” for their interests.  It would be ideal to set up an appointment and meet with the contact person. A face-to-face meeting can be valuable for establishing a relationship and getting answers to questions about the application process and the development of your proposal. Ways to Work, Inc. is able to provide foundation research to members of the Alliance for Children and Families through access to databases from some of the leading authorities on U.S. private and public foundations. The screening process that Ways to Work, Inc. uses in its foundation research aimed at producing a list of foundations that have a geographic and programmatic focus that matches with a host agency’s Ways to Work program. If you would like assistance in researching foundations, please send an email to the Ways to Work national office at [email protected].

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General Submission Guidelines Funders often have their own established requirements for grant applications. However, there are many common characteristics in application formats and procedures. The following information is intended to provide assistance and guidance for preparing and submitting requests for funding through a letter of intent or proposal. It is always important to gather information on the funder’s preferred form of approach, application procedures, and deadlines before beginning your letter of intent or proposal. LETTER OF INTENT

Some foundations will require organizations to submit a letter of intent as the first step in the grant submission process. Because foundations receive more requests than they can review, the letter of intent allows the funder to quickly scan your request to determine if it meets their funding guidelines. A sample letter of intent is included in the Appendix. Unless otherwise indicated, the letter of intent should be no more than 2 pages, using 12-point type, single space, printed on the organization letterhead, and signed by the board chair and/or executive director. The letter of intent should include the following:  An overview of your organization, the amount you are requesting, a brief description of the Ways to Work program, and your expected outcomes. It should also include your mission statement, history, and some key successes that highlight your organization’s ability to effectively execute this project.  Highlight the need in your community and why this program is necessary to solving this problem. If possible, cite specific statistics that are relevant to your geographical focus.  Include the total amount that must be raised to implement a successful Ways to Work program. You should also include any funding commitment that you have received to date, amounts that are pending, or funding prospects you anticipate on approaching. Foundations do not want to be the only supporter of your program. Having other supporters can be a key element in the funder’s decision to invite your organization to submit a full proposal.  Also include an IRS Determination Letter to show proof that your organization is a 501(c)3 nonprofit organization.

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Grant Proposal

Unless otherwise indicated, grant proposals should be submitted in 12-point type, single spaced, on 8 ½ x 11 paper, with one-inch margins. The basic components of a proposal include the following:  A Cover Letter, one page, on letterhead. This letter should briefly state the purpose of the request and the dollar amount requested. It should clearly link your request to the funder’s mission and interests, and include a brief paragraph that summarizes your project. The letter should be signed by your board chair and the director of your office. A sample cover letter has been included in the Appendix.  A Proposal Cover Sheet, one page, providing concise and factual reference information. This will include information such as your organization’s name, tax-exempt status, grant request amount, and total project budget. A sample cover sheet can be found in the Appendix.  Proposal Narrative, typically five pages maximum. This is the heart of your proposal where you will describe the Ways to Work program, the problems it addresses, the people and places you serve, how others are involved, your implementation plan, and what goals you seek to achieve.  Other Attachments and Supporting Documents, such as your organization’s annual report, support letters, recent media coverage, and organizational chart.

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Grant Proposal Outline The following information is intended to be a guide for developing and organizing your proposal. It is not a fill-in-the-blank template, but rather a pattern you can follow when developing your request document. Sample text has been provided in the Sample Narrative section that can be used to complement your local information. COVER LETTER (one page)

The cover letter should be on your organization’s letterhead and be addressed to the designated contact person at the funding organization. It should include a brief description of the request, dollar amount, and a oneparagraph summary of the project. Be sure to establish a link with the funder’s mission and interests. The letter should be signed by your board chair and/or the executive director of your office. A sample cover letter is provided in the Appendix.

PROPOSAL COVER SHEET (one page)

The funder may have a standard cover sheet template for you to use. If a template is not provided, one can be constructed using the following information fields:                 

Date of application Organization name Address Telephone number Director of office Contact person and title (if different from Director) Year the organization was founded Tax exempt status Grant request Time period grant will cover Type of request (general support, start-up, technical assistance, etc.) Project title (if request is for a project) Total project budget (if request is for other use than general support) Organization’s total budget for current year Starting date of fiscal year Summary of organization’s mission (2-3 sentences) Summary of project or grant request (2-3 sentences

A sample cover sheet template has been provided in the Appendix. EXECUTIVE SUMMARY (one page)

The executive summary is a concise and compelling snapshot of the proposed project. The summary should include brief descriptions of the following:  Problem  A statement of the need that your Ways to Work program seeks to address. (one to two paragraphs)  Solution  A brief description of the project and how it addresses the need. Include the number of people served, who will benefit, the project period, and the staff resources involved. (one to two paragraphs)

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 Funding Request  The amount of money you are requesting and how the funder’s financial support will help address the stated need. (one to two paragraphs)  Organizational Capacity  A brief statement describing your organization’s unique position to carry out the project in collaboration with Ways to Work, Inc. Highlight the history, management strength, and major activities of both your agency and Ways to Work, Inc. Sample text describing Ways to Work, Inc. has been included in the Sample Narrative section. (one paragraph) ORGANIZATIONAL BACKGROUND (two-three paragraphs)

Provide a brief description of your organization. Include the mission, history, current programs and activities, target population, and highlight some accomplishments. This information can typically be taken directly from your organization’s standard marketing materials or website. Since Ways to Work is a franchise-type program with a central office, you should also include a brief background of Ways to Work, Inc. This will add credibility to the proposed project through coordination with a national partner (in addition to your local partners). Sample text for this section can be found in the Sample Narrative section.

PROJECT DESCRIPTION (two to three pages)

In this section you will describe the project for which you are seeking funding and how it will help you to address the need described above. Discuss the results you are anticipating and how—directly or indirectly—it will help families in the community. The project description section can be organized into four main components. Unless otherwise directed, these components can be a single cohesive section. They do not need to be separated by individual headings. 1. Problem and Need  Describe the need you are addressing, the scale or severity of the need, and the evidence that this need exists. Be specific about the demographics and the geographic area of the community and population you serve. You may want to include an example of the people that have been helped by the project. This can help the funder make the connection between the need you are proposing to address and the actual people who will benefit from Ways to Work. A short testimonial from a past recipient of a Ways to Work loan can provide a powerful link between the project and the people you serve. If your Ways to Work program is new, you could use an example from one of the other Ways to Work sites in a neighboring community or state. 2. Goals & Objectives  The goal of the project should answer the question, “What do you want to accomplish?” The objective should answer the question, “How will the goal be accomplished?” 3. Methods  The methods should describe how the objectives will be achieved. This section can be conceptualized as having three main components:

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What? A detailed description of what will occur during the project period. This includes description of the planning and launch steps, how the program works, and eligibility guidelines. Describe your collaboration with other local partners and the involvement of key stakeholders in your community. Be sure to highlight aspects of your program that match interests of the funder (e.g. single mothers, transportation, childcare, benefit to employers, etc).



When? The timing and order of the project tasks. It may be helpful to include a timetable that provides a visual map of the timing of the project steps. Sample timetable text for the launch of a Ways to Work program has been included under the heading of “Implementation” in the Sample Narrative section.



Why? Justification for why the project methods will effectively address the stated need. This can include references to relevant research, expert testimonials, and specific data from evaluations of the Ways to Work program.

4. Staffing and Administration  Provide a brief description of the number of staff involved. Describe their specific duties and qualifications. Also include a description of what level of oversight will be in place. Additional information on staff and management can be included in the appendix or supporting documentation. As Ways to Work is administered by your agency in partnership with Ways to Work, Inc., a section should be devoted to laying out how the program will be administered. It should be clear that your agency has ownership and operating control of the project. Ways to Work, Inc. provides technical support, training, loan capital, secondary oversight, and loan closing and processing services. It needs to be crystal clear that your agency is responsible for financial management, primary oversight, outcomes, and reporting. It may also help to emphasize that although the project will leverage investment capital and support services from a national partner, it is in every way a local operation serving local families. EVALUATION (two-three paragraphs)

Discuss how your results will be evaluated—what data will you collect and analyze to determine if you are being successful? Describe how you assess (or will assess) the success of your program or your organization’s work. Who is involved in the evaluation process? How will the evaluation results be used?

FUNDING CONSIDERATION (two-three paragraphs)

Describe plans for obtaining other funding needed to carry out the project, including amounts that have been requested of other funders. What are your plans for sustaining the program beyond the grant period? Most funders are not going to want to fund a project or organization indefinitely. Therefore, provide an idea of other funding sources that you plan to target, any earned income potential, and how the success from your proposed project will help attract additional support for the program. Sample text has been included under the “Funding Consideration” heading in the Sample Narrative section.

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CONCLUSION (one to two paragraphs)

Every proposal should have a concluding paragraph or two. This is a good place to call attention to the future, after the grant period is finished. If appropriate, you should outline some of the follow-up activities that might be undertaken to begin to prepare your funder for your next request. Alternatively, you should state how the project might carry on without further grant support. This section is also the place to make a final appeal for your project. Briefly reiterate what your agency wants to do and why it is important. Underscore why your agency needs funding to accomplish it. Don't be afraid at this stage to use a bit of emotion to solidify your case. However, it is important to keep the tone positive. Highlighting your potential impact and outcomes will likely have greater affect than focusing on the negative aspects of the problem you are addressing.

PROGRAM BUDGET AND BUDGET NARRATIVE (one page)

The program budget should serve not only as a projection of expenses and revenue, but also an indicator that you are pursuing other support. It should also indicate that your organization has invested in the project as well. A copy of a budget template has been included in the Appendix. The budget narrative provides an explanation of the budget in broad terms. This is where you can explain major expenditures and revenue sources, as well as any budget items that may be unusual or unclear. A sample budget narrative has also been included in the Appendix as well.

ATTACHMENTS AND SUPPORTING DOCUMENTATION

Listed below are several items that are typically included as attachments at the end of a proposal. However, you will want to review each funder’s specific requirements to determine which supporting documents to include.  A copy of your 501(c)3 letter from the IRS  Audited financial statements for your organization  Form 990  Recent annual report  Your organization’s budget for the current year  Organizational chart and list of your board of directors  Newspaper or magazine articles about your organization or the need/population you address  Evaluations or reviews  Letters of support or commitment

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Sample Narrative Below you will find text for customization or insertion into your funding request. Divided out by topic, the text samples can be copied and pasted into your document, or customized as appropriate for your needs. The individual text options are separated by a “###” symbol. The multiple samples allow you to pick and choose which text best fits your proposal.

WAYS TO WORK BACKGROUND Ways to Work—originally called the Family Loan Program—was created in 1984 by the McKnight Foundation. It was initially established to provide temporary loans to help poor single mothers contend with unexpected expenses that otherwise might cause them to drop out of the workforce. Over the next 12 years, the program became affiliated with the Alliance for Children and Families, changed its name to Ways to Work, and evolved into a program to help working families move up the economic ladder by offering low-interest loans to purchase cars that can help access jobs, job training, and services for their children. Currently, loans are a maximum of $6,000, to be repaid over a two-year term, at 8 percent interest. Today, Ways to Work maintains nearly 50 program sites in 22 states, originating about $5 million in loans for nearly 2,000 families each year. The program offices are located within the offices of the Alliance for Children and Families, a network of nearly 400 local human service agencies. Over the past two decades, Ways to Work has assisted more than 28,000 families across the country with loans totaling nearly $60 million. Ways to Work, Inc., the national office of the Ways to Work program, supports local sites through seed capital, coaching and training for loan counselors and host agency managers, technical assistance, secondary oversight, and loan processing and servicing assistance. Ways to Work, Inc. provides a standard template for local site operation. However, the local offices operate their own independent programs, employ their own staff, and procure their own funding.

### Ways to Work has developed into the largest 501(c)3 nonprofit, direct-toconsumer loan program in the nation. A vital component in the growth and success of Ways to Work has been the presence of a national office to manage the expansion of the program across the country. Ways to Work, Inc., headquartered in Milwaukee, Wisconsin, serves as the national office of the Ways to Work program. Ways to Work, Inc. is a Community Development Financial Institution (CDFI) that is charged with replicating and sustaining the Ways to Work program. The national office provides extensive development support, training, program materials, technical assistance, and oversight support to local nonprofit agencies operating Ways to Work programs. Technical assistance and training include on-site consultation, use of customized Ways to Work software, national and regional training opportunities, intensive phone consultation, and 24/7 access to loan portfolio information.

### Ways to Work, Inc. recently launched a centralized lending facility with the capacity to attract, deploy and manage tens of millions in loan capital and

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better serve Ways to Work borrowers. Through the new lending system, Ways to Work, Inc. has the ability to produce loan documents that comply with the lending regulations of all states where it is licensed as a lender. In addition, the national office provides the loan capital to local offices for program participants. The benefits of this model include increased manageability, greater scalability, increased efficiencies; an increased ability to attract, deploy and manage Community Reinvestment Act (CRA)-eligible investment from bank partners; increased financial sustainability, and improved risk management.

THE NEED TRANSPORTATION AFFORDABLE CREDIT

Imagine that you are a low-income working parent without access to a reliable vehicle. Your primary transportation options for getting to work include long, multi-point bus commutes or borrowing rides from friends and family. Over the years, your credit score has degraded to the point that your only options for financial services are predatory lenders (i.e., payday lenders, title loans, buy-here-pay-here car lots, etc.). However, in spite of these challenges, you are bound and determined to move your family toward a better life and a more secure financial future. These conditions would indicate that you are precisely the type of person that Ways to Work was created to help.

### TRANSPORTATION EMPLOYMENT FINANCIAL EDUCATION

The unmet need for reliable auto transportation is a major barrier preventing low-income families from escaping the poverty cycle. Far from being a luxury item in our society, a car is often a necessity for getting or keeping a job. In urban areas, public transportation systems are designed to meet the needs of “typical” residents. However, in the case of low-income parents, night shifts and/or multi-point commutes to jobs, daycare, and schools can make public transit options untenable. In rural areas, public transportation alternatives are rare. A reliable car can help struggling families secure and sustain employment, regularize their lives and finances, and transport their children to child care, school, and youth activities. Coupled with financial education, a reliable car can help families move along the path to selfsufficiency and a brighter future.

### TRANSPORTATION EMPLOYMENT FINANCIAL EDUCATION

In today’s society, a car is not a luxury item, but often a necessity for getting or keeping a job. In urban areas, public transportation systems are designed to meet the needs of average residents. For low-income parents, however, night shifts and/or multi-point commutes to jobs, daycare, and schools can make public transit options untenable. In more rural areas, public transportation alternatives are rare or nonexistent. A reliable car can help struggling families find and keep employment, stabilize their lives and finances, and enable them to transport their children to child care, school, and youth activities. Together with basic financial education, a reliable car can help families move toward self-sufficiency and a brighter future.

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### URBAN SPRAWL EMPLOYMENT

As [CITY] has expanded further and further beyond the downtown nexus, many employers and jobs have also moved to the outer lying areas and communities. Research has shown that more than two-thirds of all new jobs are located in suburban areas, while three-quarters of welfare recipients and low-income individuals live in central cities or rural areas. This spatial mismatch between jobs and workers represents a significant barrier to full employment for many low-income residents in the [CITY] urban area.

### TRANSPORTATION EMPLOYMENT

In America today, public transit systems do not exist in many rural areas, and fail to meet the needs of many low-income workers in urban areas. Limited train and bus routes do not access large areas of cities and suburbs. The lack of public transportation severely limits access to employment opportunities, particularly those in the suburbs that now hold three-fourths of jobs in most metro areas. Limited hours lead to availability and safety issues for travel to night or weekend shifts. Even when public transit is an option, it requires relatively long travel times, thereby causing a large drain on productivity that is magnified with every additional destination. Thus, parents with multi-point commutes may lose hours per day in transit that could otherwise be spent on more productive activities.

### AFFORDABLE CREDIT

Acquiring a car for low-income families is surprisingly expensive. Given their financial constraints, low-income families do not possess the resources to purchase a car without requiring some form of credit. These same families often have challenging credit histories (or no credit history in the case of immigrant or newly divorced families) and insufficient collateral or equity. As a result, fairly priced loans from traditional lenders are not a feasible option. With no other options, low-income families often resort to the predatory lending market (including finance companies and “Buy Here, Pay Here” used car lots) to finance an automobile purchase. Finance companies offering sub-prime loans typically do not serve the poorest consumers and charge interest rates of 17 to 25 percent. Predatory used car lots are notorious for selling overpriced, poor-quality vehicles with a large down payment required upfront and exorbitant interest rates upwards of 30, 40, or 50 percent or more.

### TRANSPORTATION

Imagine your life without a car. Imagine, starting tomorrow, you had to find another way to get to work. How long would it take you if you had to ride a bus, or several buses to get to and from work? What if public transportation wasn’t an option? Could your spouse, friend or family member take you and pick you up every day? How would you do your weekly grocery shopping? How would you get your children to and from day care while you worked? Suppose you are at work—after a two-hour bus ride—and the school calls to say you need to come and get your child who is running a temperature. Could you get your child to the doctor without a car?

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THE SOLUTION: WAYS TO WORK AFFORDABLE CREDIT EMPLOYMENT TRANSPORTATION

Ways to Work provides an alternative for parents who are working and have demonstrated a commitment to achieving increased self-sufficiency, but who aren’t able to obtain fairly priced loans from traditional lenders. Ways to Work loans are used to help individuals remain in or move forward in their jobs, mainly by enabling them to purchase modestly priced, used vehicles for transportation to employment or employmentrelated activities, such as training and education. A car can help cut down on lateness and absenteeism, thus increasing job security and stability, and it also can provide access to better paying jobs.

### TRANSPORTATION FINANCIAL LITERACY SINGLE MOTHERS

[AGENCY] proposes to implement a Ways to Work car loan project in [AREA]. The Ways to Work program provides small, short-term, lowinterest loans to low-income families for the purpose of purchasing or repairing a car to get to work, childcare, and educational opportunities. The program is coupled with targeted financial literacy education and credit repair assistance to help families achieve economic self-sufficiency. A vast majority of WtW clients are single mothers that must make multiple stops throughout the day in order to transport children to and from childcare facilities, reach employment, attend school or training, reach medical facilities, and trips for basic household goods.

### PROJECT DESCRIPTION CLIENT DESCRIPTION

The Ways to Work project will provide small, low-interest loans to [NUMBER] low-income families during the [NUMBER YEARS] year project period. The loans will finance the purchase of an automobile to be used primarily for transportation to work, school, and childcare facilities. The maximum loan size will be $6,000, at no greater than 8% interest, with a loan term of up to 30 months. Although the Ways to Work program can only provide a relatively small number of loans each year, the eligibility screening process ensures that families selected possess a combination of great need for flexible transportation, and a willingness to take the necessary steps to escape the cycle of poverty associated with underemployment and lack of financial literacy.

### PROJECT DESCRIPTION CLIENT DESCRIPTION

Qualified individuals must be employed a minimum of 20 hours per week and have been employed for at least three consecutive months. Loan applicants must have exhausted other sources of loans, and household income cannot exceed 80% of the area median income. Applicants must be an involved parent of a dependent child(ren).

### AFFORDABLE CREDIT ENVIRONMENTAL CONCERNS

The Ways to Work program will offer low-income families whose transportation needs cannot be fully met by public transit an affordable alternative to buy-here-pay-here car lots. Buy-here-pay-here dealers charge as much as 40% interest on car loans and trap borrowers in cycles of increasing debt. The program will not create significant additional congestion or pollution due to the relatively small number of loans made annually. Furthermore, rideshare registration and use of park-n-ride locations will further lessen any environmental impact of the program.

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PROJECT DESCRIPTION AFFORDABLE CREDIT

WtW loans are used to help individuals remain in, or move forward in, their job and improve their quality of life by allowing them to purchase a modestly priced, reliable used car for transportation to jobs, education, and family related activities. WtW offers an alternative to predatory lending, and unlike many conventional social service strategies, offers a hand-up, not a hand-out. WtW provides loans with an 8 percent interest rate, versus rates of 25 to 50 percent typical of predatory lenders, thus saving clients between $750 to more than $2,000 in interest expense.

### PROJECT DESCRIPTION ADDITIONAL SUPPORTS

The program offers car related support that includes assistance with car and insurance shopping, inspection, and maintenance. Loan counselors support clients by developing relationships with, and providing referrals to, recommended auto dealers, insurance providers, and dependable mechanics within the community. This support helps to ensure that clients are able to secure affordable and reliable vehicles, and keep them running.

### LOAN PURPOSE

Ways to Work provides an affordable loan that allows working poor families to keep or obtain better employment or education. Loans are usually applied toward buying a used car, with a few clients using their loans for auto repair, mortgage or child care assistance.

### PROJECT DESCRIPTION BUDGETING

The base auto loan is for a maximum of $6,000, at 8 percent interest, with a two-year repayment term. The average monthly payment for a client is $181, plus liability insurance. The loan counselor reviews a comprehensive household budget with clients to ensure they can afford the costs associated with car ownership and still have sufficient disposable income at the end of each month.

### AFFORDABLE CREDIT CREDIT REPAIR

Our program provides a supportive environment, and one that is designed to reflect the “real world” that clients will live in after their Ways to Work loan is paid off. The interest rate is very affordable; in contrast to predatory and sub prime loans that can trap borrowers in 25 to 50 percent loan rates. And, the program sets clear expectations for full and on-time payments. Successfully completing a Ways to Work loan helps clients to repair or establish a credit record.

### CASE MANAGEMENT

Ways to Work spends $2,400 to $2,500 on each client, providing a “high touch” approach that is critical to their success, given the challenges they face in their daily lives.

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### COLLECTIONS

The Ways to Work loan program prepares clients to eventually access mainstream financial markets, and it promotes long-term self-sufficiency. If a client does not make payments, program officers follow a series of collections procedures, including: phone and mail payment reminders, renegotiation of loan terms, incentives for repayment, and occasionally repossessing cars in the case of loan default.

### FINANCIAL EDUCATION BUDGETING

All clients who receive loans are required to take financial literacy education to improve their money management skills, learn about credit and self-sufficiency. The financial education is delivered in classroom sessions and also through one-on-one sessions with loan counselors throughout the term of the loan. Topics covered: completing a household budget, setting financial goals, tracking expenses, developing a spending plan, reviewing the credit bureau report, the importance of saving, local community financial and credit resources.

THE CLIENTS INCOME FAMILY STABILITY

Ways to Work clients earn an average of $11,900 in take-home pay when they enter the program. They are motivated and responsible, and are working hard to improve their lives and take care of their families. Most have little if any savings, however, and their self-sufficiency is fragile. Without a car, financial training, and the other assistance that Ways to Work provides, they can easily be derailed from their progress toward building economic and family stability.

### ECONOMIC SELFSUFFICIENCY

Families face multiple needs when they try to move out of poverty. They need dependable transportation, basic financial education to help them avoid common money traps (e.g., payday loans, check cashing, and highinterest loans), a good credit record, and an understanding of the importance of building assets. Ways to Work provides affordable credit, clear expectations for repayment, a high-touch approach, and financial literacy education.

### ECONOMIC SELFSUFFICIENCY TRANSPORTATION AFFORDABLE CREDIT SINGLE MOTHERS

Ways to Work clients are motivated “working poor” families who are intent upon breaking out of the poverty cycle and moving themselves forward economically, but face significant barriers –especially transportation challenges that prevent them from consistently reaching their current job or better job opportunities, and challenges in accessing affordable credit. WtW’s core program model provides significant financial literacy education, affordable loans, and comprehensive support to these families (typically, single mothers).

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IMPLEMENTATION Ways to Work is a transportation and economic self-sufficiency program that is replicated and supported nationally by Ways to Work, Inc. As such, [AGENCY] will work closely with Ways to Work, Inc. to implement and operate the project. Although Ways to Work, Inc. will be providing intensive development, operations support, ongoing technical assistance, loan processing services and capital for lending, the national office will not receive revenue from this proposed project. Ways to Work, Inc. carries out separate resource development initiatives to fund the activities of the national office. Ways to Work, Inc. will provide [AGENCY] with guidance and support on the steps that need to occur in order to implement a WtW program. The implementation and launch of a WtW program typically takes between 90 and 120 days, and includes two primary phases. The initial phase consists of preparatory steps that lay the foundation for a successful launch. This phase typically takes no more than 90 days to complete, and includes execution of WtW lending system agreements, delineation of roles and responsibilities, agreement on program goals, fund development, hiring, securing partnerships, recruitment of loan committee members, and initiation of marketing efforts. The second phase includes the steps required to launch and begin providing services to clients. This phase takes approximately 30 days to complete. The primary activities include basic operations training, loan committee training, training on the WtW proprietary software, formalizing policies and procedures, preparation of all necessary forms, marketing and loan portfolio management training.

RESULTS An external evaluation of Ways to Work (conducted by ICF International in 2011) found that Ways to Work loans are leading to better employment circumstances, increased financial education, improved credit score, and enhanced quality of life for participants. The total return on investment for Ways to Work is estimated at $2.50 for every $1 invested.

### INCOME & SELF-SUFFICIENCY

One-half of participants report higher gross monthly income since receiving a Ways to Work loan. Over a third (35%) of participants report an increase of more than 10% since receiving a Ways to Work loan (at a time when wages nationally fell by 4.9%). 82% of participants sustain themselves and their families without TANF cash assistance despite receiving it before receiving their Ways to Work loan.

EMPLOYMENT

94% of participants report that the car obtained through Ways to Work have helped them to maintain or improve their employment circumstances. 44% of participants report that they received a promotion or pay increase since receiving their Ways to Work loan.

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About half of all borrowers attribute a reduction in lateness and missed days of work to the car they obtained through the Ways to Work program.

### EDUCATION

87% of borrowers say their car has been very helpful for decreasing commuting time, allowing many participants to pursue and complete education programs. Ways to Work has helped 26% of borrowers increase their education attainment. Most commonly, participants have gone from a high school degree to completing some college courses.

### CREDIT SCORE IMPROVEMENT & FINANCIAL LITERACY

According to most participants (90%), counseling and support from the Ways to Work program has helped them to understand and improve their financial situation. With the help of Ways to Work, more than half of borrowers are currently saving for a rainy day/emergencies. Borrowers experienced mean credit score increases even during the recent recession of up to 44.6 points.

AVOIDANCE OF PREDATORY LENDERS

### 58% of participants reported becoming banked by conventional financial institutions since participating in the program via a checking and savings accounts, new car loan or other credit.

### QUALITY OF LIFE & CARE OF CHILDREN

On average, borrowers were able to double the amount of time they spend doing volunteer work. Nine out of ten borrowers credit the car they received through their Ways to Work loan for their ability to spend more time with family and friends. Most borrowers (93%) indicated that their car loan significantly improved their overall quality of life. Nearly all borrowers indicated that the car they received through their Ways to Work loan helps them provide better care for their children and do more things for or with their children.

### RETURN ON INVESTMENT

The annual benefit for employers per borrower was $1,950 (avoided costs of absenteeism/lateness and recruitment/training of a new employee). Additional tax revenue generated was $861 per borrower. Public assistance cost savings totaled $2,900 per borrower. Financial institutions realized additional income of $144 per borrower. The total return on investment for WtW is 250 % or $2.50 for every $1 invested.

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FUNDING CONSIDERATION To ensure sustainability of the Ways to Work program beyond the [NUMBER] year grant period, [AGENCY] will pursue three strategies in combination to secure ongoing funding for the program. These strategies are (1) philanthropic funding from foundations, corporations and individuals (2) government funding and (3) earned income.

### PHILANTHROPIC FUNDING

AGENCY] has been building strong relationships with local and regional foundations and corporations in [AREA] since [DATE]. Current and past supporters of the agency’s mission recognize [AGENCY] as a vital provider of support services for families and children in need. [AGENCY’S] development team will engage these supporters, and others, to begin to build awareness and interest in Ways to Work. The goal of engaging these supporters will be to build a bridge between grant funding from this proposal, and a long term future for the program in [AREA]. As Ways to Work is a mix of traditional social service, transportation assistance, and financial services, [AGENCY] will be able to approach community partners with a wide range of interests. Foundations focused on workforce development, poverty alleviation, financial literacy, asset development, self-sufficiency, child development and women’s issues are good local funding candidates. Corporations in the fields of banking and finance, transportation, and women’s products are good candidates as well.

### PUBLIC FUNDING

Public support has been a significant component of the funding puzzle for local Ways to Work programs across the country. [AGENCY] will draw from these past examples, and the support of the Ways to Work national office, to develop strategies for securing government funding to support future operations. Since Ways to Work provides a proven model for service delivery and significant loan capital for participants, the program offers an opportunity for state and local governments to leverage external resources. As an example, host agencies operating Ways to Work programs in New York and Pennsylvania have been successful in combining state support for lowincome transportation programs with Ways to Work loan capital. These partnerships freed the states from tying-up substantial amounts of money in loans, while increasing operating support of local Ways to Work programs. The net effect of the partnership was to greatly expand the number of working families that received transportation assistance.

### EARNED INCOME

Ways to Work, Inc. is working to develop earned income products that would help sustain local programs. These products include: Graduate Loan product: The concept behind this enterprise is to offer a final subsidized loan that once fully repaid, enables clients to access affordable commercial car loans from mainstream lenders. This loan would be for a higher dollar amount and longer term. The rate would also have less of a subsidy. The result is another below market “deal” for the

17

Ways to Work client yet a more profitable loan product for Ways to Work. The additional net income would be transferred to the originating agency to supplement its operating costs. Employee Assistance Program (EAP) product: The concept behind this enterprise is to embed the Ways to Work loan within a company’s EAP plan and price it to provide earned income to the servicing agency, such as [AGENCY]. It would place the character-based lending decision onto the employer, thus enabling program services to be less “place based.” Much of the pre and post loan case management would occur via the phone. This product is being developed jointly by Ways to Work, Inc. and its sister company, FEI Behavioral Health. FEI is a provider of EAP services to a wide variety of companies, from major public corporations to small nonprofits. Ways to Work, Inc. will also provide development assistance, training, ongoing support, loan portfolio management assistance, and loan capital throughout the life of the program in [AREA]. Although the support provided by Ways to Work, Inc. has not been included in the match calculation, this partnership represents a sizeable investment of external resources in the community. The loan capital alone represents a [AMOUNT] investment annually. [AGENCY] will seek to incorporate additional partners and supporters on an ongoing basis in order to ensure a high level of coordination, as well as to identify future financial support to continue the program beyond the two year project period.

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Appendix

19

June 1, 2009

Margaret Smith Program Officer The Melman Family Foundation 1000 Main Street Brownsville, TX 78520 Dear Ms. Smith: Over the past five years, the Brownsville Family Center has helped more than 350 local families build their financial stability through an innovative loan program called Ways to Work. This program provides low-interest loans to working families to help them purchase cars that can help them access jobs, job training and services for their children. Ways to Work also provides financial education to loan applicants, enabling them to raise their credit scores, open bank accounts and avoid predatory lenders. The program helps working poor families—typically single mothers—to increase their income, build their financial capacity and provide better care for their children. We are seeking $75,000 in grant funding to support the growth of our local office. This funding would allow us to hire additional staff to process loan applications and provide financial education and case management for our clients. This is a key factor in Ways to Work’s success—our high-touch approach and on-going case management help clients stay motivated and on track for paying back their loans. Individualized troubleshooting, ongoing education and referral to complementary services all contribute to our clients’ high rate of success in paying back their loans. In addition, the loans help these families move up the economic ladder in our community: A 2006 national evaluation of Ways to Work showed that 90 percent of borrowers report that their car allowed them to maintain or improve their employment circumstances, almost three-quarters of participants report higher net monthly income, and borrowers average a 41 percent increase in take-home pay. The attached materials will answer many of your questions about Ways to Work, but please let us know if you have questions or would like additional information. Thank you for your consideration. Sincerely,

Christa Rodriquez Board Chair

Louis Bader Office Director

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June 1, 2012 Margaret Smith VP of Community Development ANONYMOUS Bank 1000 Main Street Brownsville, TX 78520

Dear Ms. Smith: On behalf of Ways to Work, Inc., thank you and the ANONYMOUS Bank, for providing one year of funding to launch our Ways to Work WOW project in 2011. Your support enabled us to serve credit-challenged lowmoderate income families residing in the Waukesha, Ozaukee, and Washington (WOW) Counties. As you may already know, WtW, Inc. is a national CDFI that provides small, low-interest consumer loans to credit distressed low-income families. Loans are up to $6,000 at 8% interest rates and are typically for the purchase of a reliable used automobile. Borrowers receive targeted financial education prior to loan approval, and intensive financial coaching during the loan repayment period. Nationally, the WtW program has shown to improve borrower’s employment circumstances, increase household income, reduce the dependency on public assistance, increase credit scores, and improve work-life situations. With support from the ANONYMOUS Bank last year, WtW, Inc. launched its own company-operated program. This incubator program office served clients in previously unserved geographic area close to the national WtW office. It also permitted the testing and optimizing of program product enhancements before roll out to the national WtW network of 51 program offices around the country. Specifically, as a result of your support, WTW, Inc. achieved the following:   

 

Built a successful portable business model to service the three counties. This model was shared with our network of providers around the country. Established a network of referral sources from social service agencies, banks, chamber of commerce, and auto dealers. Established partnerships with banks to provide space for the financial education classes, interviews, and loan closings. We are extremely grateful to ANONYMOUS Bank for the partnership and providing space in your facilities. Approved 24 loans totaling $132,000; 80% of clients were single female head of households. Provided 23 financial education classes to 200 individuals.

Per Betty Dogood’s recommendations, we are submitting another request to the ANONYMOUS Bank for one year of funding in the amount of $25,000. The funding will be used to continue to operate the program and serve individuals who have been affected by the economic recession as well as the credit crisis. With support from the ANONYMOUS Bank, WtW, Inc. will grow and strengthen the WOW project. Specifically, WtW aims to achieve the following in 2012: 

Process $450,000 in loans to 75 credit challenged individuals. These dollars will remain in the tri-County region thus fostering more economic growth.

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Develop greater partnerships with auto dealers in the region. This relationship is critical to the success of the program as it hinges on honest auto dealers who work with WtW clients to ensure they receive the best reliable used cars. Provide intensive case management services to clients ensuring successful repayment during the loan term. It is critical for clients to receive the support during the repayment period as they work to build and stabilize their economic future. These timely payments are reported to the credit bureaus. Host 65 financial education classes benefitting at least 550 individuals. WtW, Inc. is pleased to use your award-winning financial education program which was tailored to the specific needs of WtW’s clients. The financial education module (“Ways to Financial Success”) is being used locally as well as across our national network as WtW’s standard curriculum. Host a public launch event to foster greater visibility for the program in the region. We will feature ANONYMOUS Bank as a supporter of this event which will include local funding representatives, businesses, and community supporters.

WtW, Inc. has already secured $153,545 (83%) of operating funds for fiscal year 2012. Your support of $25,000 would help close the remaining gap of $31,000. WtW, Inc. is also in conversation with the HB Foundation for support. They have expressed preliminary interests for the program. Your continued support will greatly enhance the credibility of the WtW program. Thank you for the opportunity to submit this letter of request to ANONYMOUS Bank. If you have any questions or need further clarification, please do not hesitate to contact me at 123-456-7890.

Sincerely,

Matthew L. Mueller Vice President, Funding Support Services

Cc: Betty Dogood

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June 1, 2009 Ms. Margaret Smith Program Officer The Melman Family Foundation 1000 Main Street Brownsville, TX 78520 Dear Ms. Smith: Thank you for considering Family of America’s (FA) letter of intent. FA is seeking a grant of $150,000 over 3years from The Melman Family Foundation to support our Ways to Work (WtW) program in Brownsville, TX. The WtW program provides short-term, low-interest loans to working low-income families with challenging credit histories for the purpose of purchasing or repairing a car to get to work, childcare, and job training and educational opportunities. The program is coupled with targeted financial literacy education and credit repair assistance to help families achieve economic self-sufficiency. The WtW project is very much aligned with the foundation's Workforce Development goals of “supporting programs that help low-income, unemployed and underemployed job seekers find and keep jobs that pay family-sustaining wages.” As evidenced by a 2006 and 2007 comprehensive evaluation of the program outcomes by the national office, Ways to Work, Inc., in Milwaukee and OMG Center for Collaborative Learning in Philadelphia, the proposed project will have a significant impact on the families that will be served.  Higher Income - Nearly 3 out of 4 program participants reported higher net monthly income after receiving their car loan and averaged a 41% increase in income (take-home pay).  Employment/Education - Approximately half of all borrowers attribute their ability to obtain or complete education or job training programs to their ownership of a car through a Ways to Work loan. Nearly 2/3 of all borrowers cited a reduction in lateness or fewer days missed at work or training programs.  Decreased or Eliminated Need for Public Assistance - More than 3 out of 5 borrowers decrease or eliminate the use of cash assistance, food stamps and/or medical assistance despite having received it before entering the program.  Increased Financial Literacy – 90% of applicants show an increase in financial literacy after completing the Financial Literacy Course. Experts have agreed that the current economic crisis is the worst since the Great Depression. The impact of the economic crisis is affecting the Brownsville community more than the nation as a whole. The national unemployment rate is 10%, whereas Brownsville is nearly 17%. Of those who are unemployed in Brownsville, 30% have lost their car and 7% have lost their homes due to their inability to repay the loan because of the job loss. However, the economy is improving and Brownsville is expected to see 2,500 new jobs created within the next year. Based on our survey, roughly 350 households are without the ability to travel to and from these employment opportunities. 75% of these households attribute their inability to obtain a conventional car loan due to their credit. Because of this need in our community, the Ways to Work program will be an effective solution to ensuring these individuals find and keep jobs that pay family-sustaining wages. FA, established in 1959, serves the Greater Brownsville community through the following programs and services: family counseling, GED/HSED, ESL, job readiness, financial literacy, youth services, and home ownership. FA’s mission is to provide resources to families and move them out of poverty. Originally started as a small outreach organization to assist refugee families acclimate to American culture, FA has grown to be one of the largest family service agency in the State of Texas. The foundation of FA is a working partnership of neighborhood residents, individual philanthropists, the business community, private foundations, and government. The

23

partnership is manifested in a professionally staffed, nonprofit corporation that is committed to the strengthening of Brownsville’s families. FA has had several significant accomplishments this past year that clearly position the organization for an increased presence in the Greater Brownsville community and continued long-term success. Some of our accomplishments in 2008 included:      

159 families purchased their first home with our assistance. 505 people received and benefited from credit and loan counseling services. 300 families received and benefitted from our family counseling services. 150 people received their GED/HSED. 250 people benefitted from the ESL classes. 100 people gained employment after completing our job readiness courses.

Ways to Work—originally called the Family Loan Program—was created in 1984 by the McKnight Foundation. It was initially established to provide temporary loans to help poor single mothers contend with unexpected expenses that otherwise might cause them to drop out of the workforce. Over the next 12 years, the program became affiliated with the Alliance for Children and Families, changed its name to Ways to Work, and evolved into a program to help working families move up the economic ladder by offering low-interest loans to purchase cars that can help access jobs, job training, and services for their children. Currently, loans are a maximum of $6,000, to be repaid over a two-year term, at 8 percent interest. Clients also receive on-going case management from loan counselors to ensure they are successful with repayment. The program sustains a 24-month loan repayment rate of nearly 90 percent across the network of local offices. Today, there are 30 Ways to Work program sites in 21 states, originating about $5 million in loans for nearly 2,000 families each year. Over the past two decades, Ways to Work has assisted more than 28,000 families across the country with loans totaling more than $53 million. FA will partner and work closely with Ways to Work, Inc., the national office of the Ways to Work program. The national office will provide FA with seed capital, coaching and training for our loan counselors and managers, technical assistance, secondary oversight, and loan processing and servicing assistance. Ways to Work, Inc. will not benefit nor receive funding from The Melman Family Foundation contribution. So far, FA has received a total commitment of $475,000 from the Do-good Foundation ($150,000) and Department of Transportation ($325,000) towards the overall $625,000 three-year budget. With your commitment of $150,000 over three-years, FA will meet its goal of providing 200 families with car loans totaling $1.2 million, and providing 700 families with financial education. On behalf of the board of directors, staff, and the community we serve, thank you for considering our letter of intent. We look forward to the opportunity to submit a full proposal. Do not hesitate to contact us at (555) 5555555 if you require additional information or want to schedule a meeting. Sincerely,

Christa Rodriquez Board Chair

Louis Bader Executive Director

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Sample Engagement Document PREFACE

The following is a sample engagement document (three pages) that has been a useful tool in showcasing the Ways to Work program to funders in a simple and concise format. When adapting it to fit your market, please keep in mind that you will need to add statistics and demographic information relevant to your target area, as well as updating the budget section to reflect your fundraising goal. Please feel free to send an email to [email protected] if you have any questions or need additional assistance.

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Ways to Work in Atlanta: A Formula for Family Stability & Economic Empowerment INTRODUCTION Imagine your life without a car. Imagine that, starting tomorrow, you are a single parent that has to find another way to get to work. How long would it take if you had to ride a bus, or several buses to get to and from work? What if public transportation wasn’t an option? How would you do your weekly grocery shopping? How would you get your children to and from day care while you worked? Suppose you are at work—after a two-hour bus ride—and the school calls to say you need to come and get your child because they are ill. How would you get your children to a medical facility? Now imagine that scenario within the context of the current economic environment. Unemployment is rising, which means competition for available jobs is increasing. Flexible and reliable transportation is a necessity more than ever. However, because of poor credit you are unable to secure an affordable loan for your family. Although you know the buy-here-pay-here car lots and other predatory lenders will tax you with high-interest and an over-priced vehicle, what other option do you have? WAYS TO WORK The Ways to Work (WtW) program has become the answer to these questions for thousands of struggling families across the country. WtW has demonstrated that small affordable auto loans, combined with financial education and coaching, can make a substantial difference in helping working poor families with poor credit along the path to self-sufficiency and away from dependency (see Attachment A). The loans are typically used to purchase a car that can help the participant access jobs, job training, and services for themselves and their children. The loan is combined with intensive financial education, helping applicants avoid predatory lenders, open bank accounts, improve their credit scores, and increase their economic well-being. Together with targeted financial education and a greater understanding of their credit, a WtW loan has proven to be a powerful formula for helping families move toward self-sufficiency and a much brighter future. Today, WtW has developed into the largest 501(c)3 nonprofit, direct-to-consumer loan program in the nation. WtW maintains 33 program sites in 19 states, originating $4 million in small loans each year. The program offices are housed within nonprofit organizations that are members of the Alliance for Children and Families, a national network of nearly 400 local human service agencies. Over the past two decades, WtW has assisted over 29,000 low-income families across the country with loans totaling more than $53 million. In addition, the program provides approximately 4,000 families each year with targeted financial education, making WtW one of the largest financial education delivery mechanisms in the country.

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TIMELY HELP FOR WORKING FAMILIES IN ATLANTA WtW is currently collaborating with two Atlanta-based nonprofits, Green Organization and Family Services, to develop a plan for serving a significant portion of the greater Atlanta metropolitan area. WtW has already engaged the United Way of Metropolitan Atlanta and the ABC Foundation as partners in the proposed expansion, and is reaching out to additional partners to ensure a solid and lasting program launch. WtW, Green Organization, and Family Services are seeking $500,000 in funding to launch and sustain the program in Atlanta. The funding will provide support for two offices over a three year period, and will leverage a loan capital investment from WtW, Inc. representing $1.4 million in new loans for low-income families in the metropolitan area. In addition to loan capital, WtW, Inc. supports local sites through a “Program in a Box” model. The national office provides the necessary tools and templates, operating manuals, fund development assistance, onsite coaching and training for loan counselors and host agency managers, ongoing technical assistance, secondary oversight of program operations and loan portfolio health, proprietary lending software, and loan processing and servicing. Funding ABC Foundation Green Organization My Organization United Way Doo-good Foundation Funding Gap Total Project

One Year

Three Years

$33,333 $25,000 $25,000 $50,000 $35,000 $81,667 $250,000

$100,000 $75,000 $75,000 $100,000 $70,000 $330,000 $750,000

Purpose

Two loan offices operated by Atlanta-based nonprofit agencies. Each office will be staffed by one full-time loan officer and one part-time assistant.

Results

   

Leverage

 Loan capital from WtW, Inc. to provide $1.4 million in new loans to clients.  $100,000 in pass-through grants from WtW, Inc.  “Program in a box” model: tools, templates, manuals, software, training, etc.  Ongoing operational support throughout the life of the program.  Fund development assistance.  National peer network of program operators.

300 struggling families will receive affordable loans. 1,000 individuals will receive targeted financial education. $450,000 saved in predatory lending fees. $2.8 million cumulative increase in household incomes (based on $24,000 average income).

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Attachment A RESULTS As verified by an evaluation conducted by ICF International and released in late 2011, the Ways to Work program has a broad and lasting impact on their lives of participants and helps families attain long-term financial security. Here are some highlights from the evaluation:

Income

Quality of Life

• Most borrowers (93%) indicated that their car loan significantly improved their overall quality of life. • 90% of borrowers credit the car they received through their Ways to Work loan for their ability to spend more time with family and friends. • On average, borrowers were able to double the amount of time they spend doing volunteer work.

• Nearly half of participants received a promotion or pay increase (35% increased by more than 10%) at a time when wages nationally fell by 4.9%. • 82% of participants sustain themselves and their families without TANF cash assistance despite receiving it before receiving their Ways to Work loan.

Employment

• Cars obtained through Ways to Work have helped most borrowers (94%) improve their employment circumstances. • About half of all borrowers attribute a reduction in lateness and missed days of work to the car they obtained through WtW.

Care of Children

• Nearly all borrowers indicated that the car they received through their Ways to Work loan helps them provide better care for their children and do more things for or with their children.

Credit Score Improvement

Return on Investment

• Successful WtW clients show credit score improvement during and after their participation in the program. • Borrowers experienced mean credit score increases even during the recent recession of up to 44.6 points.

• The annual benefit for employers per borrower was $1,950 (avoided costs of absenteeism and recruitment). • Additional tax revenue generated was $861 per borrower. • Financial institutions realized additional income of $144 per borrower. • Public assistance cost savings totaled $2,900 per borrower. • The total return on investment for WtW is 250 % or $2.50 for every $1 invested.

Access to Mainstream Financial Services/Financial Literacy

• 58% of all borrowers have obtained some type of conventional financial services since receiving their loan (i.e. checking, savings, bank loan, credit card, etc.). • 90% of participants indicated that the Ways to Work program helped them improve their financial situation.

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PROPOSAL COVER SHEET Date of application: Organization Information

Organization Name Address

City, State, Zip

Telephone Number

Director of Office

Contact Person and Title (If different from Director)

Year the Organization was Founded

Tax Exempt Status

Proposal Information Grant request:

Time period grant will cover: Type of Request: General support Loan Capital

Start-up Costs Technical assistance

Project Title (if request is for a project): Budget Total project budget (if request is for other use than general support):

$

Organization’s total budget for current year:

$

Starting date of fiscal year: Summary Summary of organization’s mission:

Summary of project or grant request:

29

Capital Other (list)

PROGRAM/PROJECT BUDGET PROGRAM/PROJECT INCOME Source Support Government grants Foundations Corporations United Way or federated campaigns Individual contributions Fundraising events and products Membership income In-kind support Investment income Revenue Government contracts Earned income Other (specify)

Fiscal Year:

Amount Committed

Amount Pending*

$ $ $ $ $ $ $ $ $

$ $ $ $

Total Income

$ PROGRAM/PROJECT EXPENSES

Item Salaries and wages (by individual position and fullor part-time.)

Amount

SUBTOTAL Insurance, benefits and other related taxes Management & General Administration Travel Equipment Supplies Consultants & Professional Fees Training & Conferences Printing and copying Telephone and fax Postage and delivery Rent and utilities In-kind expenses Defaults Other (specify)

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Expense Difference (Income less Expense)

$ $

30

%FT/PT

ORGANIZATION BUDGET ORGANIZATION INCOME

FISCAL YEAR:

Source Support Government grants Foundations Corporations United Way or other federated campaigns Individual contributions Fundraising events and products Membership income In-kind support Investment income

Amount $ $ $ $ $ $ $ $ $

Revenue Government contracts Earned income Other (specify)

$ $ $ $ $ $

Total Income

$

ORGANIZATION EXPENSES

FISCAL YEAR:

Item Salaries, wages and benefits Insurance and/or other taxes Consultants and professional fees Travel Equipment Supplies Printing and copying Telephone and fax Postage and delivery Rent and utilities In-kind expenses Depreciation Other (specify)

Amount $ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Expense Difference (Income less Expense)

$ $

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SAMPLE BUDGET NARRATIVE Personnel Loan Officer (1.0 FTE)

$35,000

The loan officer is responsible for developing and administering the project. Specific responsibilities include providing overall leadership for the program; direct oversight of the program assistant; following through on client inquiries; client screening; financial literacy training; facilitating the underwriting process; and management of the loan portfolio. Program Assistant (0.5 FTE)

$18,000

The program assistant assists the loan officer in the coordination, organization, development, monitoring, and completion of his/her work. Fringe Benefits Family Wellness Center provides medical, dental, vision, life, and disability insurance, and a 401(k) plan for full-time employees. Fringe benefits are calculated at 25% of annual salary. The calculations are as follows: Loan officer ($35,000 x .25)

$8,750

Program assistant ($18,000 x .25)

$4,500

Total

$13,250

Management & General Administration The loan officer will report to the project supervisor, and will receive accounting assistance from the Family Wellness Center’s controller. Project supervisor (0.1 FTE)

$4,500

Controller (0.1 FTE)

$5,000

General Administration

$1,500

Total

$11,000

Travel The loan officer will travel locally to meet with local auto dealers, repair shops, banks, and other community partners. Mileage reimbursement (400 miles x $0.50)

$200

Equipment Each staff member will be assigned a computer for the project. Proprietary software for client tracking and loan portfolio management will be provided at no cost by Ways to Work, Inc. 32

A fax machine is required for transmitting completed loan documents to Ways to Work, Inc. for loan funding. Computers (2 x $1,000)

$2,000

Fax machine

$500

Total

$2,500

Supplies General office supplies include paper, pens, pencils, and other desk supplies. Total

$1,500

Consultants & Professional Fees As the project involves consumer lending, occasionally legal or accounting consultation is required in order to ensure compliance with all state, local, and federal consumer lending laws. Total

$1,500

Training & Conferences The loan officer will attend the annual Ways to Work conference in Milwaukee WI. The annual conference is an opportunity to learn about best practices, share information with other loan officers in the Ways to Work network, and attend presentations relevant to the program. Anticipated travel expenses are as follows: Lodging ($150 x 2 nights)

$300

Transportation and parking

$100

Air Fare

$350

Food (excluding catering at meeting)

$100

Total

$850

Printing & Copying Funds are requested for reproduction of marketing materials, program reference items, and lending documents. Total

$1,500

Telephone & Fax Telephone and fax usage charges will be incurred through contact with clients and transmission of lending documents to Ways to Work, Inc. Total

$1,200 33

Postage & Delivery Postage for materials sent to clients and community partners. Total

$700

Rent and Utilities The Family Wellness Center will allocate an occupancy expense for two offices for the loan officer and program assistant. Occupancy ($15 per sq ft x 144 sq ft x 2 offices)

$4,320

In-kind expenses The in-kind contribution will be derived primarily from the volunteer loan committee members and contribution from the financial institution (Ways to Work, Inc.) that will be providing loan documents, portfolio management tools, and loan payment processing. All in-kind contributions counted toward the local match will be documented and supported, represent costs which would otherwise be eligible under the program, and will be included in the net project costs in the budget. Loan committee (6 members x 1.5 hours per meeting x 24 meetings x $30 per hour)

$6,480

Loan processing and servicing ($500 per loan x 60 loans)

$30,000

Defaults Through intensive case management and financial literacy education, the Ways to Work program is able to maintain a national repayment rate of nearly 90%. However, as a loan program, losses are a reality of the project. Expenses associated with minimal losses are projected as follows: Defaults (60 loans x $3,700 avg loan x 12% loss rate)

$26,640

Other Loan committee meeting expenses (coffee and snacks), membership dues, marketing, and borrower incentives. Loan committee meetings (24 meetings x $20)

$480

Membership dues

$1,000

Marketing

$1,500

Borrower incentives (60 clients x $25)

$1,500

Total

$4,480

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SAMPLE ENDORSEMENT LETTER OPTIONS [DATE] [YOUR AGENCY’S CONTACT NAME] [CONTACT TITLE] [YOUR AGENCY] [ADDRESS] [CITY], [STATE] [ZIP] Dear [CONTACT NAME]: Paragraph I Possible text A: It is my understanding that your family service agency, [AGENCY NAME], is working with similar agencies in [STATE] to begin a Ways to Work family loan program in our area. I am writing in strong support of your efforts. Possible text B: I am writing in support of your efforts to [ESTABLISH/EXPAND] the Ways to Work family loan program in [STATE]. Your program will provide critically needed transportation services for low-income families in our community that our existing transit system cannot meet. Possible text C: I understand that [AGENCY NAME] is planning to initiate and operate a Ways to Work (WtW) project in the [LOCATION] area. We are proud to support this important effort in our region. Paragraph II Possible text A: When low-income families, especially single mothers, are faced with costs beyond daily living expenses, such as buying or repairing a car, often they do not have the financial reserves to meet these emergencies. These families lack access to loans from conventional sources because of their low incomes and weak credit histories. Yet, without a car, getting their children to daycare in one part of town and then getting themselves to work or school in another part of town each day can become unmanageable. With many low-income families living in the city and job opportunities in the far suburbs, public transportation (with inflexible schedules, no late service, or lack of service to the suburbs) can prohibit parents from moving their families toward financial independence and stability. Possible text B: Despite working hard at low-paying jobs, low-income families teeter on the edge of poverty. Unexpected financial problems that we all face, such as repeated car repairs, can plunge a family living on a marginal income into financial crisis. Furthermore, while these families are struggling to remain off welfare and achieve greater self-sufficiency, traveling between jobs, childcare, and home can be almost impossible when having to rely solely on public transit. Most new jobs are located in the 35

suburbs, far from the rural and urban areas where most low-income families live. Given that the schedules and geographical range of even the most excellent transit systems is limited, promising jobs are simply inaccessible to the people who need employment the most. Paragraph III Possible text A: I understand that the Ways to Work family loan program provides small loans to low-income parents for purchase or repair of automobiles, giving low-income families the tools they need to achieve greater self-sufficiency. Possible text B: I am familiar with the Ways to Work family loan program, and believe your work to establish the program here would benefit our community. Loans for automobiles can help low-income families reach the financial independence they are working so hard to attain. Possible text C: I am aware that the Ways to Work family loan program has a 25-year track record of success throughout the United States, but has not yet been established in our region of [STATE]. The low-income families in our community will greatly benefit from this program. Paragraph IV: Possible text A: Prosperity will never reach those rural and urban citizens in our state who want to work, but cannot because public transit cannot provide the bridge between home, childcare, and work. The Ways to Work program will fill these gaps in public transportation, and I am happy to support your efforts. Possible text B: Statistics demonstrate that low-income families with cars are 25 percent more likely to work than those without cars. Ways to Work is specially suited to address this need of low-income working Americans, and I am pleased that your agency will be part of that effort. Possible text C: Two-thirds of new jobs are located in the suburbs, but three-quarters of welfare recipients live in rural and urban areas. Consequently, as documented by the Urban Institute, twice as many welfare recipients with cars were working than those without cars. Clearly, access to a car is critical in getting and keeping a job for many low-income families. That's why I support your efforts to create a Ways to Work program in our [STATE] community. Sincerely, [SUPPORTER’S CONTACT NAME] [TITLE]

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Online Fund Development Resources GOVERNMENT

Grants.gov A clearinghouse to find and apply for federal government grants. http://grants.gov/aboutgrants/about_grants_gov.jsp Catalog of Federal Domestic Assistance (CFDA) CFDA provides a full listing of all Federal programs available to State and local governments (including the District of Columbia); federally-recognized Indian tribal governments; Territories (and possessions) of the United States; domestic public, quasi- public, and private profit and nonprofit organizations and institutions; specialized groups; and individuals. https://www.cfda.gov/ Recovery.gov Through this website, the public can monitor the progress of the stimulus package. Its intention is to foster greater accountability and transparency in the use of the funds. http://www.recovery.gov/ GPO Access – Federal Register GPO Access is a service of the U.S. Government Printing Office that provides free electronic access to a wealth of important information products produced by the Federal Government. http://www.gpoaccess.gov/fr/index.html USA.gov A central website designed to give you a centralized place to find information from U.S. local, state, and federal government agency websites. http://www.usa.gov/

PHILANTHROPIC

Foundation Center The Foundation Center is a national nonprofit service organization which provides nonprofits with information on funders, their interests, and geographic focus. http://www.foundationcenter.org/ GrantStation GrantStation is an online funding resource for organizations seeking grants throughout the world. http://www.grantstation.com/ Guidestar A free service to the public. Grant seekers can access a foundation’s Form 990 which contains valuable information on total contributions and a list of grant recipients. http://www2.guidestar.org/ Chronicle of Philanthropy News for nonprofit organizations on grant seeking, foundations, fund raising, managing nonprofit groups, technology, and nonprofit jobs. http://philanthropy.com/

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Business Journal Information you can gather about your local business community. http://www.bizjournals.com/ Association of Fundraising Professional Membership organization for fundraising professionals. http://www.afpnet.org/ Tony Poderis: It’s A Great Day to Fundraise Practical resources and advice on fundraising. http://www.raise-funds.com/library.html Blackbaud Gift range calculator to help your organization develop a gift table for your fundraising campaign. The gift table is a useful tool when “selling” a fundraising goal to potential funders. http://www.blackbaud.com/company/resources/giftrange/giftcalc.aspx Grassroots Fundraising Journal Practical grassroots tips to help you raise money for your organization. http://www.grassrootsfundraising.org/howto/index.html Supporting Advancement Geared towards educational institutions however, there are practical advice and samples on annual campaign materials, major gifts programs, esolicitation, direct mail and donor cultivation strategies. http://supportingadvancement.com/ Alliance for Children and Families Alliance's Resource Development Services provides relevant fundraising information for Alliance member agencies. http://rds.allianceinfo.org/content/rds-development-manual-availabledownloading-or-cd

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