CalMoneySmart Grant

CalMoneySmart Grant

Status: ACTIVE
Funder: California Department of Financial Protection and Innovation
Amount: Up to US $200,000
Last Updated: April 01, 2026

Summary

The CalMoneySmart Grant program, managed by the California Department of Financial Protection and Innovation, offers annual grants up to $200,000 for nonprofit organizations. Its goal is to provide essential financial education and empowerment services to unbanked and underbanked Californians. Initiated by Senate Bill 455 in 2019, the program has expanded funding to enhance economic security and promote financial stability among vulnerable communities, ultimately fostering wealth-building and financial independence.

Overview

Background The CalMoneySmart program provides annual grants of up to $200,000 to nonprofit organizations to provide financial education and financial empowerment programs and services for unbanked and underbanked Californians. CalMoneySmart began when Governor Gavin Newsom signed Senate Bill 455 (Bradford) in October 2019, which created the Financial Empowerment Fund to fund a grant program for nonprofit organizations. The CalMoneySmart program was launched with an initial $4 million fund, and the program was authorized to award up to $1 million each year to nonprofits for financial empowerment programs focusing on unbanked and underbanked consumers in California. In 2021-22, Assembly Bill 137 expanded the Financial Empowerment Fund by an additional $10 million, increasing the annual amount available for grants to $2 million with a maximum grant award to $200,000 per fiscal year until the program sunsets on January 1, 2030. Unbanked households have disproportionately lower incomes and levels of education than banked households. Black and Hispanic households, single mothers, working-age adults with a disability, and immigrants are also disproportionately represented among the unbanked. Due to their credit status, unbanked and underbanked households often pay high fees for everyday financial services and find it difficult to build savings, establish credit, and build wealth. Financial education programs, like those funded by CalMoneySmart, are cost-effective means to improve both financial knowledge and financial behaviors that promote stability, protect consumers, and generate wealth (Kaiser, FINRA Foundation, 2022). Individualized counseling reinforces and empowers consumers to participate in financial services and build assets and financial security. Access to free financial products provides a pathway to mainstream financial services and helps to develop habits to increase financial well-being. Community-based nonprofit organizations that have received CalMoneySmart funding over the past four years have implemented diverse and innovative approaches to reaching underserved communities by supporting and educating Californians about creating a better future for themselves and their families. Reports of previous CalMoneySmart cycles can be found at https://dfpi.ca.gov/calmoneysmart-grant-program/. Since the program’s inception, grant funds have been awarded on an annual basis through a competitive application process. Beginning in the 2024-25 fiscal year, applications will be accepted for a two-year period. Funding will be announced in advance for two consecutive fiscal years, with funds disbursed separately at the beginning of each year. This program change has been introduced to improve the sustainability of funding for community-based organizations, allowing them to recruit and retain qualified staff and build organizational capacity to meet program objectives. Use of Funds 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:Know the individuals and families to be servedProvide actionable, relevant and timely informationImprove key financial skillsBuild on motivation and,Make it easy to make good decisions and follow through.

Eligibility

You can learn more about this opportunity by visiting the funder's website. 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.Grant funds must be used to benefit residents of California. Grantees may use no more than 15 percent of the grant to cover administrative costs, which may include, but are not limited to, costs of workforce overhead, human resources, accounting, finance, business and facility operations, and information technology. Beginning this year, eligible nonprofit organizations may apply for funding for a two-year period.

Ineligibility

Insurance is required, but it is not an eligible expense.