Frequently Asked Questions

Frequently Asked Questions are separated into three groups: questions that apply to all six Next Awards; questions about the $5.5 million and $2.75 million awards; and questions that apply to the $25,000 awards.

If you have a question that is not covered below, please email it to info@nextawards.org. We will respond to your question and add the question and response to this list.

Questions About All Six Wachovia NEXT Awards

  1. Updated 4/11/08 - The last application cycle called for an August submission with this year’s cycle being a May submission. If a returning applicant has a July 1 – June 30 fiscal year, there would be no new activity reflected on the audits. Is this a problem or would it be countered with the ability to show recent financial statements and use current year’s activity?
    The 2008 Wachovia NEXT Awards are entirely separate from the 2007 awards. Please provide financial information requested in the application.
  2. Updated 4/11/08 - We recently changed our name and are now “doing business as” should we complete the application under our DBA name or the name that is listed on our 501c3? Or do we just need to state that somewhere in the application?
    Complete the application under your DBA name, but please note the name change somewhere in the application.
  3. Does my organization have to be certified as a CDFI by the U.S. Treasury Department's CDFI Fund to apply?
    If your organization is tax-exempt under Section 501(c)(3) of the Internal Revenue Service code, it does not have to be certified by the CDFI Fund to be eligible for a Wachovia NEXT Award. If your organization does not have this tax status, then CDFI Fund certification will be required, but does not automatically guarantee eligibility.
  4. Is my organization automatically eligible if it is a U.S. Treasury Department CDFI Fund certified CDFI?
    No, certified CDFIs are not automatically eligible. They must meet all of the eligibility requirements of the award they are seeking.
  5. Does my organization have to be a member of the Opportunity Finance Network to apply?
    No, organizations do not have to be a member of OFN to be eligible for a Wachovia NEXT Award. However, all organizations must meet the eligibility requirements of the award they are seeking.
  6. How will I know if my online application has been received?
    You will receive email notification confirming that your application was received.
  7. Can I set up an appointment to discuss my application?
    The Wachovia NEXT Awards review staff and Selection Committee cannot meet with applicants other than finalists for the $2.75 and $5.5 million awards. If there is a question about your application, the staff may contact you.
  8. Can I apply for a multi-million dollar award and a $25,000 grant?
    Yes, an organization can apply for a $5.5 million or $2.75 million award, depending on asset requirements, and also apply for a $25,000 award. However, if the organization is selected for the $5.5 million award or the $2.75 million award, it cannot be selected for a $25,000 grant.
  9. My organization has tax exempt status under Section 501(c)(3), but is controlled by a for-profit parent or has affiliates that do not have tax exempt status. Is my organization eligible to apply for an award?
    Your organization may be eligible to apply. 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. Additional documentation may be needed to determine whether the activities that would be supported by the Wachovia Next Award comply with relevant government rules and regulations for charitable giving and the policies of The Wachovia Foundation and the MacArthur Foundation. Please do not attach additional documentation with your online application. We will contact you to request additional documentation that may be needed based on a review of your specific case.
  10. Updated 4/14/08 - Whom should I contact if I have questions?
    For concerns regarding the application or application process, please send an email to info@nextawards.org. The response to your question will be added to this FAQ. If you experience technical difficulty with the electronic application, send an email to techsupport@nextawards.org.
  11. Can an organization receive more than one Wachovia NEXT award?
    An organization that receives a $25,000 award will not be eligible to apply for a $25,000 award in future years but will be eligible to apply for a $2.75 million dollar award or $5.5 million in future years. An organization that receives a $2.75 million or a $5.5 million award will not be eligible to apply for any Wachovia NEXT award in future years.
  12. How do you define “community development financial institution (CDFI)”?
    The Wachovia NEXT Awards defines a CDFI (or opportunity finance institution) as an entity that:
    1. Has a primary mission of community development and strives to have a positive impact on economically 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; and
    2. Is a private non-governmental financial intermediary that uses financing as an integral part of its community development strategy.
    3. In addition, the entity may have either a non-profit or for-profit tax status. Entities that are not 501(c)3's, however, must meet additional criteria including CDFI Fund certification, and will need to provide additional documentation to determine whether the activities that would be supported by the Wachovia NEXT Award comply with relevant government rules and regulations for charitable giving. The additional documentation requirements will be determined on a case-by-case basis.
  13. Do I have to enter all the information in the application all at once, or can I save it?
    You can save the application. Just remember your ID and password.
  14. What should I submit for a corporate entity chart if my organization is a single entity?
    Any and all related entities should be included in the corporate entity chart. If the applicant organization consists of a single entity, you may state that in a sentence rather than in chart form.
  15. How will you determine that an organization that is not a 501(c)3 is eligible for these awards?
    An organization that is not a 501(c)3 tax-exempt organization must:
    • Be CDFI Fund-certified
    • Meet all other eligibility requirements and
    • Demonstrate that their use of funds would meet the IRS’s rules and regulations for charitable purposes to the satisfaction of OFN, The Wachovia Foundation, and the MacArthur Foundation. We must make this judgment on a case by case basis; therefore, we cannot provide general guidance at this time on which additional documents may be requested.
  16. I represent a small CDFI community development credit union that has low income status. Can a small community development credit union be considered eligible on its own to apply for the awards or should the credit unions use a 501 (c) (3) partner as an instrument to apply for this award?
    A community development credit that has low-income status can apply for the Awards if it meets the other Eligibility Requirements. There is no need to apply with another organization that has 501(c)(3) status. See previous Q&A on eligibility for further information on applicants that are not 501(c)(3)s.
  17. Is a tribal entity eligible for a Wachovia NEXT Award? My organization is an LLC organized under the Tribe.
    A Native CDFI is eligible to apply if it is a separate organization from the tribe and the Tribe does not have any form of control over the CDFI. The Native CDFI must satisfy all other Conditions for Eligibility.
  18. Does the applying 501(c)(3) organization have to have been a CDFI for a certain amount of time before applying for the Next Award?
    To apply for the Wachovia NEXT Awards, a CDFI must have been providing loans or making investments to achieve a community development mission for at least five years and meet all of the other Eligibility Requirements. An organization does not have to be a certified CDFI unless it is not a non-profit 501(c)(3). A for-profit or other non-profit organization does not have to be CDFI certified for five years.

Questions About the $5.5 Million and $2.75 Million Awards

  1. Updated 5/12/08 - My CDFI currently has a three-year, $100 million loan pool, meaning we have $33MM in capital to lend each year. Based on the total amount of capital we have available to lend, which award should my CDFI apply for?
    For the capital requirement, we will use consolidated financial statements from the applicant as our guide: all debt and equity available for lending/investing that is reflected on the balance sheet can be counted, not just capital for a specific time period.
  2. Updated 5/07/08 - My CDFI provides loans and bank guarantees. The guarantees are not on our financial statements, but we reserve against them. Should we include guarantees in our write-off and delinquency percentages?
    Do not include guarantees in your write-off and delinquency percentage if you do not include guarantees in your financial statements. Please include your guarantees in the narrative portion of the Wachovia NEXT Awards application if this is an important part of your lending program.
  3. Updated 4/14/08 - If my application is turned down, will you provide feedback on why it was turned down and how I can make it stronger next year?
    Unsuccessful applicants will be informed of the stage at which they were eliminated: eligibility, semi-finalist, or finalist. We regret that we cannot provide everyone individualized feedback to applicants on the specific reason(s) their application was turned down. Unsuccessful applicants will receive a form e-mail response that includes a rationale for selection of semifinalists; i.e. what characterized the strongest and weakest applications. Semifinalists that do not make the cut for the final round will be notified via e-mail. This correspondence will include guidance on how to set up a phone call with OFN staff to receive feedback on their application and provide input on the application process.
  4. Updated 4/11/08 - For the 2008 round of Wachovia NEXT Awards for Opportunity Finance applications is it no longer a requirement for organizations to illustrate an increased lending volume?
    Yes, this is no longer an eligibility requirement for the Wachovia NEXT Awards for Opportunity Finance, but it will be taken into consideration when reviewing the entire application and particularly the Financial Strength and Performance selection criteria.
  5. Updated 4/07/08 - We have $30MM on balance sheet and $25MM in subsidiary CDE entities (which we manage but “own” only 0.1% of). Are we a $30MM or a $55MM entity?
    The capital dedicated to lending / investing requirements for the Wachovia NEXT Awards for Opportunity Finance includes all entities consolidated on a CDFI’s audited financials. If the CDE subsidiaries are included in the applicant’s consolidated financials, their capital should be included.
  6. Updated 4/07/08 - If undrawn lines-of-credits are not counted towards capital dedicated to lending/investing, then our capital is less than $50M in each of our 3 most recent year-end audited financials. However, if we draw on our available lines of credit in April, we will be above the $50M threshold on our 4/30/08 interim financials which will be submitted with the application. Are we eligible to apply for the larger $5.5M Wachovia NEXT award for Opportunity Finance?
    The capital dedicated to lending / investing requirement for the Wachovia NEXT Awards for Opportunity Finance is as of either your most recent audit or interim financial statement, not your 3 most recent year-end financials.
  7. For the 2008 round of Wachovia NEXT Awards for Opportunity Finance applications is it no longer a requirement for organizations to illustrate a profit for the last three years?
    Yes, this is no longer an eligibility requirement for the Wachovia NEXT Awards for Opportunity Finance, but it will be taken into consideration when reviewing the entire application and particularly the Financial Strength and Performance selection criteria.
  8. How will the Selection Committee verify that my organization meets the eligibility requirements?
    OFN staff will review your organization’s financial statements, mission statements, corporate entity chart, and other required materials to verify that your organization meets all the eligibility requirements. If necessary, OFN will contact your organization requesting additional information.
  9. Does my organization have to be CARS™ Rated to be eligible to apply?
    At present, eligible applicants do not have to be CARS™ Rated to apply. Starting in 2009, CDFIs that want to apply must be CARS™-Rated or formally enrolled in CARS™. If CARS™ does not have the capacity to rate your organizational type, this requirement will not apply. In addition, winners will be required to get a CARS™ Rating if they do not already have one if CARS™ has the capacity to rate your organizational type.
  10. If the Selection Committee has questions about my application, will they contact me to clarify?
    Applicants are expected to submit complete applications that comply with all of the word count and other application requirements. OFN reserves the right to disqualify any application that is incomplete or otherwise not in compliance with application requirements. OFN also reserves the right to contact an applicant for further information.
  11. Can I contact members of the Selection Committee directly to discuss my application?
    No. The Selection Committee will not accept or respond to communications from individual applicants.
  12. Will the Selection Committee make any site visits to applicants?
    The review process does not include site visits to any applicants; however, OFN reserves the right to make a site visit to any organization if they determine it is necessary for a complete assessment of the applicant.
  13. Who is making the final selection?
    The Selection Committee will meet with award finalists, and will select the award recipients.
  14. Can an organization that wins a $2.75 Million dollar award apply for a $5.5 Million dollar award in the future if it grows bigger than the $50 Million minimum asset requirement?
    No, an organization can only win one multi-million dollar award.
  15. Will OFN call me if staff does not understand how to interpret my organization’s financial statements?
    OFN may contact an applicant if it deems it necessary to fully understand that applicant’s financial statements.
  16. If I win, will I be notified before the OFN Conference?
    No. Winners will not be notified prior to the conference.
  17. If a portion of an applicant’s 5-year financing history includes any time when it was part of a larger organization, should we count this time?
    No. An applicant's financing history while it was part of a larger organization does not count toward the 5-year minimum. To meet this eligibility requirement, an applicant must have and be able to document clearly a 5-year financing history as a private non-governmental financial intermediary.
  18. Will you use an applicant’s current level of capital dedicated to lending and/or investing or the amount it had at the end of its most recently completed fiscal year?
    You can use either the capital dedicated to lending and/or investing as of the latest audit or interim financial statement. You will be prompted to specify the period you use on the application.
  19. What are the pricing and term of the long-term loan?
    The loan is a 10-year, 3 percent loan with quarterly interest payments.
  20. Can an organization include off-balance sheet resources to meet the NEXT awards capital requirements?
    For the capital requirement, we will use consolidated financial statements from the applicant as our guide: all debt and equity available for lending/investing that is included in the consolidated financial statements (including affiliates and subsidiaries that are consolidated on financial statements) can be counted toward the capital requirement. In addition, for the capital requirement, an organization may include drawn (but not undrawn) lines of credit.
  21. Can an organization include its NMTC-related resources to meet the NEXT Awards capital requirements?
    See response to previous question. The assets of NMTC affiliates will be included and count towards the minimum capital eligibility requirement only if these assets are consolidated on the applicant's financial statements.
  22. Do our IDA matching funds count toward capital dedicated to lending and/or investing?
    No. Capital dedicated to lending and/or investing is capital available for lending, equity investments, loan purchases and loan guarantees.
  23. Can two organizations submit a joint application?
    No. The applicant must be a single entity.
  24. My organization is both a CDFI intermediary and a credit union. What are the implications of identifying ourselves as one versus the other in the application?
    There are no implications. Please identify your organization however best characterizes your business.
  25. How do I get a CARS™ ID?
    Opportunity Finance Network will email each CARS™ Rated CDFI its unique CARS™ ID.
  26. How much does it cost to get a CARS™ Rating and how long does the process take?
    The cost for a CARS™ Rating is currently $4,000 for an organization with under $15 million in assets and $6,000 for an organization with over $15 million in assets. These prices may go up in future periods. The CARS™ analysis takes approximately four months to complete.
  27. Our financing products include lines of credits. Should we count the credit limit or the draw downs when calculating our volume of loans originated?
    For lines of credit, count the credit limit in the volume of originations.
  28. How will you determine the 3-year financial history of an organization that is the result of a merger that took place within the last 3 years?
    If the applicant is a merged organization that does not have a 3-year financing history, then one of the organizations that merged must have and be able to document a pre-merger financing history as a private non-governmental financial intermediary that, when combined with the post-merger history, equals at least 3 years. Please submit corresponding financial statements and provide responses in the Summary Financial Information section of the application that correspond to these financial statements. If the applicant becomes a semi-finalist, we will contact you to request additional financial information on the second organization.
  29. What is the allowable time period for spending the grant funds?
    The grant must be spent within five years.
  30. What are eligible uses of the grant funds?
    Grant funds may be used in any way that supports achievement of the applicant's vision and charitable purposes. Eligible uses include but are not limited to one or more of the following: staff salaries, facilities, technology improvements, loan loss reserves, lending/investing capital, purchases of other assets, start or expansion of business lines, etc.
  31. Will the grant be disbursed in one lump sum at the beginning of the grant period or disbursed over a number of years? What will the term of the grant be?
    The grant will be disbursed in one lump sum with the loan, and will be unrestricted.
  32. Do I need to submit a work plan for the grant portion of the award?
    The application requires a statement of proposed use. If you are selected for the award, a detailed work plan, as well as grant reporting, will be required.
  33. Which entity(ies) should we include in our responses to the application questions: the applicant organization or all of the entities included on our consolidated financial statements? When can we include our off-balance sheet activities?
    The evaluation of each applicant's vision, innovation and impact will take into account all of the mission-driven lending and investing carried out by the applicant organization, its subsidiaries and its affiliates, regardless of whether these entities are part of the applicant's consolidated financial statement. This assessment also will take into account any off-balance sheet activities that contribute to the organization's overall profile as a leading CDFI. However, to assess each applicant's financial strength and performance in an efficient, transparent and consistent way, only a single entity will be examined. The tables below show which entity(ies) we will evaluate for each eligibility requirement and selection criterion, and when we will consider off-balance sheet activities.
    34. Eligibility Requirement Entity(ies) to Be Evaluated
    Charitable Purpose Single Entity
    Mission Consolidated Entities and Off-Balance Sheet Activity
    Finance-based Strategy Single Entity
    3 Years of Financing Experience Single Entity
    Discipline and Performance Single Entity
    Current Plan Single Entity or Consolidated Entities
    Capital Requirements Consolidated Entities on Audit
    Selection Criterion Entity(ies) to Be Evaluated
    Use of Funds Consolidated Entities
    Vision Consolidated Entities and Off-Balance Sheet Activity
    Innovation Consolidated Entities and Off-Balance Sheet Activity
    Leadership Consolidated Entities and Off-Balance Sheet Activity
    Financial Strength and Performance Single Entity
    Impact and Policy Consolidated Entities and Off-Balance Sheet Activity
  34. Does my organization have to operate within Wachovia’s market to be eligible for a NEXT Award?
    No, any CDFI or opportunity finance institution that meets all the eligibility requirements of the award they are seeking can apply.
  35. Will the loans be unsecured? If they are secured, what will the collateral be? Can the loan be pre-paid without penalty?
    The loan to the awardee will be unsecured. The CDFI will have the ability to pre-pay the loan without penalty.
  36. Is a CDFI certified bank eligible for the award?
    Yes, CDFI Certified Banks can apply for a Wachovia NEXT Award. The Award is not just for loan funds, but all CDFIs that meet the Eligibility Requirements. See previous Q&A on tax-exempt status and eligibility for further information on those issues.

Questions About the $25,000 Awards

  1. Updated 4/17/08 - Our organization was pleased to receive a Wachovia Excellence Award in 2006. We are interested in applying for one of this year’s $25,000 awards and wanted to confirm whether or not our past award changes our eligibility.
    If an organization received a Wachovia Excellence Award in the past it is eligible to apply for the $25,000 Wachovia NEXT Awards for Opportunity Finance. If an organization received a $25,000 Wachovia NEXT Award in 2007 it is not able to apply for the $25,000 awards again.
  2. Who can apply?
    A CDFI or opportunity finance institution that meets the eligibility criteria may apply.
  3. Who will select the $25,000 awardees?
    OFN and Wachovia staff will review the applications and select the awardees.
  4. If I win, will I be notified before the OFN Conference?
    Applicants will be notified ahead of time if they are a finalist, but not a winner. Applicants must be in attendance to win. Please do not apply if you do not plan on attending the conference.