National Credit Union Foundation Approves Nearly $600,000 in Annual Innovation Grants |
 | Every NCUF Grant Dollar Helps Raise $5 to Benefit Credit Union Members | | The National Credit Union Foundation's Grants Committee approved 14 Innovation Grants worth a total of $581,746 to be disbursed in 2009.
In addition, the applicants are raising a total of $2,758,432 in "leveraged funds." Leveraged funds include money from partners who will help implement the grants in each credit union's community. This means every $1 in NCUF grant funding is helping to raise another $5 to benefit credit union members!
Funding for these 14 grants will come from national dividends on the Community Investment Fund (CIF).
Thanks to these generous CIF investments, Innovation Grant dollars will be distributed as follows during the grant period of January 1 through December 31, 2009.
For more information on the following Innovation Grants, click the underlined blue headlines below: |
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| | HarborOne Credit Union's MultiCultural Center is already becoming the model to deliver the human services needed for credit unions to help new immigrants assimilate and build financial relationships. After receiving this application, NCUF asked HarborOne Credit Union to host a tour of REAL Solutions® League Liaisons to demonstrate the ground-breaking services being provided by this REAL Solutions® credit union. The effectiveness of the MultiCultural Center's assimilation programs as well as financial services are also documented in member testimonials provided for NCUF's 2008 Annual Report.
In the photo below, students celebrate graduation from a course at HarborOne Credit Union's MultiCultural Center. Courses includes English as a second language, citizenship information, and job training, as well as financial education.
Click here to see more of HarborOne Credit Union's innovative human services! | |  |
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|  Fairfax County Federal Credit Union's unique partnerships with Spanish-language media serve as a model for other credit unions to raise visibility in Hispanic markets.
CBS’ Spanish affiliate El Zol Radio, Cox Cable en Espanol, and Entravision (including Telefutura, Univision, and WJAL) agreed to contribute a combined $430,000 worth of in-kind media for Fairfax County Federal Credit Union to use throughout the year. |
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 | | The in-kind media includes radio and TV commercials, public service announcements, long-form interviews, news segments, banner placements, and literature distribution at Hispanic community events.
In just the first month since launching the media campaign, 17% of the credit union's new members came from Hispanic origins; 60% opened checking accounts.
In addition to radio and TV, Fairfax County Federal Credit Union is bringing educational outreach into the community via partnerships with Hispanic organizations and bilingual member personnel at all touch points.
For example, the credit union is partnering with local Hispanic groups to present financial education events themed around Central and South American countries and featuring Hispanic media personalities.
Emotional appeals are opening doors to specific products and services designed to meet Hispanics’ needs.
Fairfax County FCU's President and CEO Joe Thomas and NCUF Executive Director Steve Delfin were interviewed on Cox Local Edition of CNN News where they talked about NCUF's mission and the services Fairfax County provides to the Hispanics in their community. Click this link, http://www.youtube.com/watch?v=t8Cupo9Z-pE to see the interview. |
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|  The Ohio Credit Union Foundation is leveraging a $69,500 Innovation Grant to charter a community development credit union for Latinos in northwest Ohio. Nueva Esperanza (New Hope) Community Credit Union is the first state credit union to be chartered in Ohio in more than 20 years.
Nueva Esperanza’s mission is “empowering the Latino community by promoting savings, increasing financial literacy among low-wealth and often unbanked Latino households, making loan capital available, and promoting community resources.”
Partners include:
Viva South Toledo Community Development Corporation purchased the building for the new credit union, and will relocate its own headquarters into the same facility. Viva South Toledo provides members with housing assistance and other social services to complement the credit union’s financial services.
Directions Credit Union provides operational staff and all data processing services, terminals, software, recordkeeping, and accounting support.
Area Financial Services, a technology CUSO owned by five Toledo-area credit unions, oversees Nueva Esperanza Community Credit Union’s back-office operations.
Latino Alliance of Greater Toledo will help grow and sustain membership in the new credit union.
The Ohio Credit Union League and its Northwest Chapter will continue to serve as planning advisors and provide additional resources including education and training for the new credit union’s board and staff. |
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 | | | With its startup partially funded by an Innovation Grant from the National Credit Union Foundation, Nueva Esperanza (New Hope) Community Credit Union planned to open for business in this building by June 2009. |
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 America's fastest-growing community development credit union is using this Innovation Grant to create a “Culture of Savings” throughout a state with one of America's fastest-growing Latino populations.
Latino Community Credit Union estimates that 80% of the 600,000 Latinos in North Carolina are unbanked. |
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LCCU is piloting three projects targeting three distinct age groups to help multiple generations learn the concept of savings.
Participants will also have an opportunity to earn monetary awards through long-term share term certificates.
LCCU believes this initiative will attract, educate, and retain new members.
The Culture of Savings can also serve as a model for other organizations serving Latinos. |
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|  Throughout the state with the third-highest foreclosure rate in America, the Michigan Credit Union League (MCUL) is leveraging this Innovation Grant into a multi-media foreclosure prevention campaign. |
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 This campaign counteracts misleading foreclosure information circulated by for-profit interests in many communities.
MCUL is partnering with credit unions, Michigan State University Extension, and United Ways to distribute an educational video, 8,000 DVDs, and online resources to Michigan homeowners.
All outreach highlights credit unions as a source of free financial education and low-cost financial services for residents, community partners, and legislators.
Most importantly, this campaign gives homeowners tools they need to keep their homes. |
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|  NCUF's sponsorship will enable at least 100 board members and management staff from community development credit unions to attend CDCU Institute™ training workshops.
The Institute has had a transformational impact on CDCUs, empowering them to grow and serve more underserved members in low-income communities. |
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 Yet despite powerful evidence that the Institute helps CDCUs survive, the costs are beyond the means of small credit unions serving distressed communities. This Innovation Grant will help offset the costs of small credit unions’ scholarships and travel.
This grant will also help the Federation continue to expand the Institute. New modules are being added on homeownership counseling and Individual Development Accounts.
The Federation also plans to develop short courses to help large credit unions that have recently expanded their fields of membership into low-income communities to turn these potential members into active members. |
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|  This Innovation Grant is accelerating North Side Community Federal Credit Union's drive to empower more low-wealth borrowers to afford cars they need to get to work.
In an underserved area where many sub-prime auto lenders charge much higher rates than the 18% federal usury limit, North Side Community FCU will use its grant from NCUF to reach members who need to refinance sub-prime loans.
The credit union will also target “upside down” loans, where members’ outstanding balance exceeds their car’s value. |
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 This initiative incorporates lessons from NCUF’s research report, How Credit Unions Help Car-Buyers Steer Clear of Predatory Loans.
This Innovation Grant will develop, test, and expand a model for a sustainable auto loan program that will help low-wealth borrowers who are historically not targeted by credit unions.
Successful models are being incorporated into NCUF's signature program, REAL Solutions®. North Side Community FCU is one of hundreds of credit unions offering affordable products and services through REAL Solutions®. Their goal is to change the lives of members with low wealth and modest means. |
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|  In a state where more than 60% of credit unions have less than $10 million in assets, the league's Small Credit Union Initiative is designed to help small credit unions survive.
NJCUL's Small Credit Union Task Force has prioritized the top five challenges facing small credit unions: |
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- Lack of board involvement and participation;
- Lack of strategic planning or direction;
- Not committing the resources necessary to improve the credit union;
- Lack of management desire to grow – either accepting the status quo or buying time until retirement;
- Not enough focus on getting where the credit union needs to go.
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| | This is why NJCUL's Small Credit Union Initiative is focusing on strategic planning, board involvement, and education. Twelve credit unions up to $20 million in assets are participating. |
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 Each credit union must undergo a membership survey, operational analysis, and a facilitated peer review as part of their strategic planning.
NJCUL field representatives will provide continuous follow-up with each credit union for up to 24 months.
In this photo, NJCUL Field Representative Angel Santos (seated on the left) and Salem Baptist Federal Credit Union President Ethel Bond (standing) begin the Small Credit Union Initiative with board members and management. |
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Coinciding with Manchester's celebration of the 100th anniversary of the first US credit union, this NCUF Innovation Grant will help America's Credit Union Museum expand its CU 4 Reality™ financial education program. |
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CU 4 Reality™ is fostering new partnerships between credit unions and middle schools, while educating young people to live fiscally responsible lives.
The curriculum is taught over two years, combining basic components of career development as well as financial education.
Classwork is combined with hands-on learning experiences, culminating in an interactive CU 4 Reality™ Financial Education Fair. |
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The program's popularity has created widespread demand among credit unions and educators alike, both inside and outside of New Hampshire.
Growth of the program will help position credit unions as leading innovators in financial education and community service.
It will also foster a familiarity with credit unions among youth -- an important emerging market for all credit unions. |
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| | | | Best practices from this Innovation Grant will be shared to help credit unions across America build Latino Real Estate Coalitions that can refer Spanish-speaking homebuyers to affordable credit union mortgages. |
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 Piloted by Village Credit Union in Iowa's state capital, the Latino Real Estate Coalition will:
Address the need for ethical practices among minorities;
Serve as an informal policing of best practices;
Provide education within the Latino community;
Invoke better communications between real estate professionals and clients;
Call for stronger partnerships between mortgage industry professionals seeking to break down home-buying barriers for Hispanics.
Affordable home loans through the coalition will include ITIN-only mortgages as well as traditional mortgages. ITIN-only mortgages are designed for immigrants who do not yet have a Social Security Number, but who do have an Individual Taxpayer Identification Number (ITIN).
Best practices from the coalition may also be incorporated into NCUF’s signature program, REAL Solutions®. |
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|  This Innovation Grant focuses on an often overlooked and underutilized resource in underserved communities: small businesses. To help small businesses start up and grow, Truliant Federal Credit Union is providing entrepreneuer education, credit counseling, and strategic planning for potential and current small business owners in five rural areas of North Carolina and Virginia.
This aligns with NCUF's mission to "improve consumers' financial independence through credit unions" by increasing access to loans for low-wealth entrepreneurs who will provide needed jobs and services in underserved areas. |
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 Truliant learned two important lessons from conducting financial literacy classes that will help refocus the next series for entrepreneurs:
1) The foundation of every class must be "how to improve credit scores." In one class, 40 out of 48 potential and current small business owners had credit scores under 600. Without good credit, it's a struggle to run a business.
2) Many small business people have no formal plan to run their business. Often this leads to seeking unrealistic loan amounts to borrow.
In a pilot funded by NCUF in 2008, Truliant offered new and existing members a “holistic approach to building financial strength through saving, credit building, account management, and financial education.” Truliant reported success from the pilot, with "credit scores rising significantly.” |
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|  The Union Credit Union is partnering with labor unions to deliver financial education and Step-Up Loans to people of modest means at their workplaces.
Their ultimate goal is to help union workers take their next step in life: transition their education and skills to proactively avoid job displacement in a changing economy.
This innovative initiative could serve as a model for other union credit unions across America. |
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|  As part of its ongoing implementation of REAL Solutions®, the Maryland & DC Credit Union Association is providing a comprehensive model incorporating a full spectrum of outreach tools including an emphasis on financial education, turn-key products and services, as well as improved credit union outreach to emerging market populations with low wealth. This NCUF Innovation Grant focuses on unique Community Outreach Fairs targeting consumers. |
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The 501(c)(3) affiliate of the Montana Credit Union Network is using this Innovation Grant to provide free tax return services to even more tax filers throughout the state.
Part of NCUF's grant supports Americorps VISTA volunteers, an innovative resource to expand the Volunteer Income Tax Assistance (VITA) program. |
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Montana Credit Unions for Community Development’s wide range of innovative programs, including VITA, is recognized as a successful model nationwide. NCUF is presenting Montana Credit Unions for Community Development with the Herb Wegner Memorial Award for Outstanding Organization in 2009. |
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