CalMoneySmart Grant Program

To be eligible for a grant, an Applicant must meet the following criteria:

• The Applicant is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and is organized and operated exclusively for one or more of the purposes described in Section 501(c)(3) of the Internal Revenue Code; and
• No part of the net earnings of the Applicant shall inure to the benefit of a private shareholder or individual.
• The Applicant must be in good standing with the Secretary of State of California and the state of the Applicant’s incorporation, if applicable. 
• Submission of a satisfactory final report for any and all prior grant funding awarded by DFPI.

CalMoneySmart offers qualifying nonprofit organizations grants of up to $200,000. The grants may be used to:

• Design, develop, or offer free classroom- or web-based financial education and empowerment content intended to help unbanked and underbanked consumers achieve, identify, and access lower-cost financial products and services, establish or improve their credit, increase their savings, or lower their debt.
• Provide individualized, free financial coaching to unbanked and underbanked consumers.
• Design, develop, or offer a free financial product or service intended to help unbanked and underbanked consumers identify and access responsible financial products and financial services, establish or improve their credit, increase their savings, or lower their debt.

Every project funded with a CalMoneySmart grant must:

• Promote and enhance the economic security of consumers.
• Adhere to the Five Principles of Effective Financial Education described in the June 2017 report issued by the federal Consumer Financial Protection Bureau titled Effective financial education: Five principles and how to use them.

These five principles are:

1. Know the individuals and families to be served
2. Provide actionable, relevant and timely information
3. Improve key financial skills
4. Build on motivation and,
5. Make it easy to make good decisions and follow through.

Grant recipients must demonstrate positive benefit for at-risk populations. To this end, grant recipients must provide the following:

• Include an evaluation component designed to measure and document the extent to which the project achieves its intended outcomes and increases consumers’ financial well-being.
• Include specific outcome targets for financial education workshops, one-on-one counseling, and/or financial products.

• Grant awards will be announced for a two-year period covering two consecutive fiscal years. Funds for each fiscal year are disbursed separately and any unexpended funds for the first year must be returned to the DFPI. Disbursement of funding for the second fiscal year is contingent on submission of a satisfactory annual report.
• A mandatory in-person training for CalMoneySmart grantees will be held during the grant cycle. Final details will be included in the grant agreement.
• Grantees may use no more than 15 percent of the grant to cover administrative (indirect) costs. Failure to comply with this requirement shall render the Applicant ineligible for a grant during the subsequent fiscal year and until the noncompliance is corrected. Administrative costs proposed by each Applicant should be in proportion to the Applicant’s total grant amount requested. Administrative (indirect) costs may include, but are not limited to, costs of workforce overhead human resources, accounting, finance, business and facility operations, and information technology. General liability and auto insurances are required, but they are not an eligible expense.
• A grantee may subcontract services that it has agreed to provide under the grant agreement, so long as those services are conducted on behalf of the grantee. Subcontract arrangements must be clearly described in the scope of work and budget.
• Accepting grant funds with the intent of distributing those funds to other nonprofit organizations (e.g. sub-grants or fiscal sponsorship) is not allowed.
• Grant funding may not be used for financial incentives for individuals. Prohibited incentives include, but are not limited to, match funding for savings accounts, participant stipends, or gift cards with a cash value.
• Grantees are required to submit preliminary and final annual reports, in a form and by a date specified by the Commissioner of Financial Protection and Innovation, documenting:
  • • The specific uses to which grant funds were allocated,
    • The number of individuals aided through use of funds,
    • Quantitative results regarding the impact of grant funding, and
    • Any other information requested by the Commissioner.

    Failure to submit satisfactory reports shall render the Applicant ineligible for any DFPI grant during the subsequent fiscal year and until the required report is submitted.