NEW YORK--(BUSINESS WIRE)--The Citi Foundation today announced a new round of its Community Finance Innovation Fund. With this open Request for Ideas (RFI), the Citi Foundation is committing an additional $25 million in philanthropic support to a new cohort of nonprofit community finance innovators advancing financial inclusion and financial health in low-income communities across the United States.
Research from the Financial Health Network indicates that only 30% of Americans today are financially healthy. The Citi Foundation believes that Community Development Financial Institutions (CDFIs) have an important role to play in the financial services ecosystem. CDFIs provide individuals and families with access to responsible and affordable financial products, as well as tools and services that catalyze greater financial health for all, including closing racial wealth gaps. This RFI seeks to support nonprofit community finance organizations working to implement new ideas that advance positive economic impacts.
“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,” said Brandee McHale, President of the Citi Foundation and Head of Citi Community Investing and Development. “With this iteration of the Community Finance Innovation Fund, we look to deploy our philanthropic resources to bolster capacity and accelerate community impact.”
Organizations that plan to submit ideas for consideration should be able to demonstrate a successful track record of advancing financial health as a CDFI or in conjunction with CDFIs, and a project idea offering an innovative solution in one of the following categories:
- Human Capital and Talent Development, such as efforts to advance the talent pipeline and career advancement possibilities within the fields of financial health and community finance.
- Products and Services, such as the development of 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, such as 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/or financial health.
“Achieving financial health for all requires cross-sector collaboration and action,” said Jennifer Tescher, President and CEO of the Financial Health Network. “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.”
“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,” said Harold Pettigrew, President and CEO, Opportunity Finance Network. “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.”
With this RFI, the Citi Foundation is building on over thirty 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 is enabling CDFIs to meet increased demands for capital and address persistent economic challenges.
The deadline to submit ideas is November 5, 2024, at 12 p.m. (noon) New York Time (ET). For more information, including eligibility criteria, please visit: www.citifoundation.com/ideas.
About The Citi Foundation
The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. We invest in efforts that increase financial inclusion, catalyze job opportunities for youth, and reimagine approaches to building economically vibrant communities. The Citi Foundation's "More than Philanthropy" approach leverages the enormous expertise of Citi and its people to fulfill our mission and drive thought leadership and innovation. For more information, visit www.citifoundation.com.
