NEXT PLANNING GRANTS
NEXT Awards Overview
The Wells Fargo NEXT Awards in partnership with the John D. and Catherine T. MacArthur
Foundation and the Kresge Foundation have celebrated innovation by the nation’s most promising
CDFIs by awarding more than $50 million through a competitive awards process over the last six years
(2007-2012).
NEXT Awards: 2012-2016
The NEXT Awards for 2012-2016 recognizes the NEXT generation of CDFIs Expanding CDFI
Coverage in underserved communities. In an increasingly challenging economic environment, CDFIs are
needed more than ever to ensure that much-needed financial products and services are available in
underserved markets in all 50 states. The second round of the NEXT Awards supports those CDFIs that
demonstrate creativity and develop partnerships and new business models and opportunities to meet
market needs.
2013 NEXT Awards Specifics
From 2012-2016 awards, the NEXT Awards will provide a programmatic theme that falls within the
overall goal of expanding CDFI coverage. In 2012 and the 2013, the NEXT Awards are focused on
Expanding Geographic and Product Coverage. This might involve new and/or expanded
partnerships that increase CDFI coverage in underserved communities or bring new or more
products to existing and/or expanded markets.
There will be two NEXT Awards pools of awards again in 2013: the NEXT Opportunity Award
and the NEXT Seed Capital Award. For more information on these awards please review the
Wells Fargo NEXT Awards website. In addition, the application for the second round of NEXT
Planning Grants is available now. Please note these planning grants are intended to help
applicants conduct planning and market research to further their expansion strategy prior to
applying for the NEXT Opportunity Award in 2013. Brief descriptions of these awards follow.
The NEXT Opportunity Award
The NEXT Opportunity Award provides $8.25 million to 1-4 CDFIs that present the most compelling
applications supporting their plans to expand CDFI coverage through geographic or product expansion.
Prospective award applicants should demonstrate high capacity, strong financial performance, and a high
level of readiness to implement their plan.
The $8.25 million in awards comprise $7.5 million in low-interest loans and $750,000 in grant funding.
The low-interest loans will offer a 3% interest rate and a 10-year term, with amortizing payments
beginning in year 7.
Applicants must have at least $5 million in assets and can apply for award amounts up to 10% of their
total assets.
Opportunity Finance Network n 620 Chestnut Street, Suite 572 n Philadelphia, PA 19106 P 215.923.4754 n F 215.923.4755 n www.nextawards.org The NEXT Seed Capital Award
The NEXT Seed Capital Award provides a $100,000 grant to one CDFI per year to support development of
a compelling idea for the expansion of their CDFI, either in product or geography to serve underserved
communities. Applicants might be in various stages of product or organizational development and should
demonstrate a need for a grant to help develop or expand a promising idea to expand coverage. There
is no minimum asset size for applicants; CDFIs of all sizes are invited to apply.
NEXT Planning Grants (Open Now for Applications)
To help potential applicants conduct planning and market research to further their expansion strategy
prior to applying for the competitive NEXT Opportunity Awards in early 2013, the NEXT Awards—through
the generosity of the Kresge Foundation—is making a second round of planning grants available to
prospective applicants. Grants up to $20,000 per CDFI can support research or planning to expand a
CDFI’s geographic or product coverage.
The successful applications for the 2012 NEXT Opportunity Award illustrated a significant level of
business planning and demonstrated a significant market need. Planning grants could be used to fund
market studies, independent research, business planning, or feasibility analysis for expanding geographic
or product coverage, or other uses in which the CDFI may need a planning grant to prepare for its
expansion of coverage.
Please note that while the NEXT Planning Grants are intended to help a CDFI prepare for the NEXT
Opportunity Award applications which will open in March 2013, it is an expectation, but not a requirement
that recipients of these planning grants apply for the NEXT Opportunity Award. When thinking about if
you will be ready to apply for the NEXT Opportunity Award, please refer to Appendix A which lists the
criteria for the NEXT Opportunity Award.
Note about applicants: CDFIs do not need to be a Member of OFN to apply for the NEXT Awards. CDFIs
can apply for either the Seed Capital Award or the NEXT Opportunity Award in one year. CDFIs that are
awarded the Seed Capital Award in one year may apply in future years for the NEXT Opportunity Award,
but CDFIs that are awarded the NEXT Opportunity Award may not apply in future years for the NEXT
Awards. The following CDFIs are ineligible to apply for the NEXT Planning Grants: CDFIs that received a
planning grant, the Seed Capital Award or the NEXT Award Opportunity in 2012 and the 10 CDFIs that
won a large NEXT Award in 2007-2011.
Opportunity Finance Network n 620 Chestnut Street, Suite 572 n Philadelphia, PA 19106 P 215.923.4754 n F 215.923.4755 n www.nextawards.org PLANNING GRANT APPLICATION GUIDELINES:
Timeline
October 8, 2012: Application and Guidelines will be posted
October 8 - November 2, 2012: Application period, All applications must be submitted online.
Hard copy applications will not be accepted. The deadline for submitting an application for the
2012 Planning Grant application is 5:00 p.m. Eastern Standard Time on November 2, 2012.
Applications will not be accepted after this deadline.
October 11, 2012: Information Call to learn about NEXT Planning Grants at 2:30 p.m. Eastern
Standard Time.
November 2, 2012- December 15, 2012: Applicants’ proposals will be evaluated by the
Partners. Eligible Applicants are evaluated against the selection criteria for the 2012 NEXT Award
Planning Grants, detailed below. Planning grants will be disbursed no later than December 15,
2012.
Eligibility Criteria
To apply for the 2012 NEXT Awards Planning Grants, organizations must satisfy each of the following
conditions:
1. Charitable Purpose
Is a US tax-exempt organization with a current 501(c)(3) determination letter from the Internal Revenue
Service or is a U.S. Treasury CDFI Fund certified CDFI.
2. Community Development Mission & Impact
Has a primary mission of community development and strives to have a positive impact on low-income,
low-wealth and other disadvantaged people and communities. If the institution is part of, or controlled
by, another corporation(s), the other corporation(s) must also have a primary mission of community
development.
3. Finance-based Strategy
Is a private non-governmental financial intermediary that uses financing as an integral part of its
community development strategy.
4. Total Asset Requirement: Organizations must have a minimum of $5 million of total assets on
their latest audited or interim financial statement.
5. OFN’s Goals
Affirms Opportunity Finance Network’s goal to ensure that low-income, low-wealth and other
disadvantaged people and communities have access to affordable, responsible financial products and
services.
Opportunity Finance Network n 620 Chestnut Street, Suite 572 n Philadelphia, PA 19106 P 215.923.4754 n F 215.923.4755 n www.nextawards.org Selection Criteria
Successful Planning Grant applicants will demonstrate a compelling need for the funding of planning
expenses associated with the CDFI’s expansion of geographic or product coverage in underserved
communities throughout the U.S and adequate organizational and financial resources to implement its
proposal. Successful Planning Grant applicants will be at a stage where they will be ready to apply for a
NEXT Opportunity Award in March 2013 and must have financing as a primary component of their
expansion strategy.
Applicants for the 2012 NEXT Planning Grant Awards will submit a brief narrative application (maximum
1,250 word) providing a description highlighting:
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An overview of the CDFI and proposed area of expansion
A narrative discussion of the applicant’s geographic and/or product expansion strategy.
The amount of planning grant (up to $20,000) that organization is requesting, a budget for the
requested planning grant, and timeline for use of planning grant.
A discussion of what staff and resources will be devoted to completing planning grant activities.
Eligible uses of the planning grant include personnel-related expenses; third party costs, and other
operating expenses. Typical uses for the planning grant may be to fund market studies, independent
research, business planning, or feasibility analysis for expanding geographic or product coverage.
HOW to Apply
All NEXT Award Planning Grant applications will be submitted through the NEXT Award website
(www.NEXTawards.org)
The final deadline to submit an application is 5:00 p.m. Eastern Standard Time on November
2, 2012.
Following are guidelines for submitting the information required to apply for a NEXT Awards Planning
Grant. As noted above, only online applications will be accepted.
1. Applicant Information
An online questionnaire will prompt applying organizations for information including the legal name and
address of the headquarters of the applicant; the name, phone, and email address of a contact person
from the applicant organization.
2. Statement of Use
Organizations that apply for these awards will be asked to upload a statement (maximum 1,250 words)
explaining the proposed areas of expansion and the proposed use of the planning grant. The statement
must be submitted in a Word document. Applicants that exceed that word limit will not be considered.
3. Most Recent Audited Financial Statement
An applicant must upload their most recently completed audited financial statement.
4. Most Recent Interim Financial Statements
An applicant must upload their most recently completed interim financial statement.
5. IRS Determination Letter or Proof of CDFI Certification.
An applicant must submit either a copy of 501(c)(3) determination letter from the U.S. Internal Revenue
Opportunity Finance Network n 620 Chestnut Street, Suite 572 n Philadelphia, PA 19106 P 215.923.4754 n F 215.923.4755 n www.nextawards.org Service regarding the applicant organization's charitable purpose and tax exempt status OR
demonstration of CDFI certification.
OFN may contact the organization for more information, if necessary.
Questions
If you have questions about the application process for the NEXT Planning Grants, we invite you to:
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Participate in an informational conference call scheduled for Thursday October 11th at 2:30 - 3:00
p.m. Eastern Standard Time.
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Send an e-mail with your questions to [email protected]. Your question and a response will
be added to our NEXT Awards FAQ on the website.
If you experience technical difficulties with the electronic application, please send an e-mail to
[email protected].
Opportunity Finance Network n 620 Chestnut Street, Suite 572 n Philadelphia, PA 19106 P 215.923.4754 n F 215.923.4755 n www.nextawards.org Appendix A
The planning grants are intended to help a CDFI develop its expansion strategy prior to applying for the
NEXT Opportunity Award which will open in March 2013. It is an expectation, but not a requirement that
recipients of these planning grant awards apply for the NEXT Opportunity Award. Below are the criteria
for the NEXT Opportunity Award.
NEXT Opportunity Award
Selection Criteria
Successful candidates will be CDFIs with a history of significant accomplishment that present the most
compelling applications explaining their plans to expand its CDFI’s coverage through geographic or
product expansion. Applicants must demonstrate a high degree of readiness to successfully accept, use,
and leverage a flexible grant and debt award from the Wells Fargo NEXT Awards.
Eligible applicants will be evaluated according to the six criteria below.
1. Rationale for Expansion
A clear description and analysis of the unmet market need that applicant plans to address with
geographic and/or product coverage strategy, including why current sources of capital are not providing
the unmet market need.
2. Coverage Strategy
A compelling strategy to expand geographic market and/or product coverage. The expansion strategy
must have financing as a primary component, and must be in process or ready to implement within a six
month timeframe of receiving an award.
3. Use of Funds
A compelling use of funds that demonstrates how the applicant will use the NEXT Opportunity Award to
advance the applicant’s coverage strategy in ways that otherwise would not be possible. Applicants must
specify award amount requested.
4. Impact
A credible and compelling analysis of projected impact from applicant’s coverage strategy over a short
(2–3 year) and long-term (5–10 year) time horizon, as well as a solid track record of tracking impact over
the applicant’s history.
5. Readiness
A strong management team, partners, and other resources in place or planned to execute its coverage
strategy. An indication of how this strategy will impact financial management and risk of the organization,
and a strong grasp of internal and external challenges and realistic assumptions about the likelihood of
success.
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6. Financial Strength and Performance
Strong financial performance and risk management, dedicated staff, and a sound business model that
positions the organization for sustained growth, innovation, and success.
Opportunity Finance Network n 620 Chestnut Street, Suite 572 n Philadelphia, PA 19106 P 215.923.4754 n F 215.923.4755 n www.nextawards.org