The Citi Foundation announced a new round of its Community Finance Innovation Fund. With this open Request for Ideas (RFI), the Citi Foundation is committing $25 million more in philanthropic support to a new cohort of nonprofit community finance innovators advancing financial inclusion and financial health in low-income communities across the US.
Research from the Financial Health Network has shown that only 30% of Americans today are financially healthy. The Citi Foundation believes that Community Development Financial Institutions (CDFIs) are essential in the financial services ecosystem. And CDFIs offer individuals and families access to responsible and affordable financial products, tools, and services that catalyze excellent financial health for all, including closing racial wealth gaps. This RFI also seeks to support nonprofit community finance organizations working to implement new ideas that advance positive economic impacts.
Organizations planning to submit ideas for consideration should be able to demonstrate a successful track record of advancing financial health as a CDFI or in connection with CDFIs and a project idea offering an innovative solution in one of the following categories:
Human Capital and Talent Development like efforts to advance the talent pipeline and career advancement possibilities within the fields of financial health and community finance.
Products and Services like developing new products or services or intentional efforts to extend the delivery of financial services, products, and practices to low-income communities to advance financial health.
Technology and Operational Efficiencies like efforts to improve CDFI performance and impact through the use of technology, data collection and impact analysis, and operational advancements to promote greater financial inclusion and financial health.
With this RFI, the Citi Foundation is building on 30+ years of support in the community finance sector. This includes the 30 CDFIs that received unrestricted grants in 2020 to support small businesses impacted by the COVID-19 pandemic and, more recently, the first iteration of the Community Finance Innovation Fund in 2022, which enables CDFIs to meet increased capital demands and address persisting economic challenges.
The deadline for submitting ideas is November 5, 2024, at noon New York Time (ET).
KEY QUOTES:
“For three decades we have invested in the growth of the nonprofit community finance sector because of the specialized role these entities play in catalyzing economic opportunity. With this iteration of the Community Finance Innovation Fund, we look to deploy our philanthropic resources to bolster capacity and accelerate community impact.”
-Brandee McHale, President of the Citi Foundation and Head of Citi Community Investing and Development
“Achieving financial health for all requires cross-sector collaboration and action. A key pillar of this movement requires financial services stakeholders to work together to champion efforts to distribute capital, tools and services that improve the financial health of the people they serve. CDFIs are critical to the cause, and the Community Finance Innovation Fund can support them as they expand their financial health capabilities and offerings.”
-Jennifer Tescher, President and CEO of the Financial Health Network
“CDFIs have a long track record of expanding access to capital and resources in the communities that need it most. Bolstered by the right resources and support, CDFI innovation can lead to brighter futures for generations to come. The Citi Foundation’s Community Finance Innovation Fund recognizes the promise and potential of the community finance sector and helps build the infrastructure needed to scale impact. I look forward to seeing the tangible impact made possible by their investment in the industry’s trailblazers.”
-Harold Pettigrew, President and CEO, Opportunity Finance Network
