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FINRA INVESTOR EDUCATION FOUNDATION

FINRA Investor Education Foundation

Contact information:
1735 K Street, NW
Washington, D.C. 20006-1506

Website: http://www.finrafoundation.org/

Grant Program Staff:
Robert Ganem
Tel: (202) 728-8362

Ivette Lopez
Tel: (202) 728-8928

Susan M. Sarver
Tel: (202) 728-6948

Type of foundation: The FINRA Investor Education Foundation was created in 2003. In 2005, the U.S. District Court Southern District of New York issued an Order providing for the distribution of investor education funds from the Global Research Analyst Settlement to the FINRA Foundation.

Types of grants: Educational projects or programs, research.

Description: The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. All told, FINRA oversees nearly 4,850 brokerage firms, about 173,000 branch offices and approximately 647,000 registered securities representatives.

Formerly known as the NASD Investor Education Foundation, the FINRA Investor Education Foundation supports "innovative research and educational projects that give investors the tools and information they need to better understand the markets and the basic principles of saving and investing." Its mission is "to provide underserved Americans with the knowledge, skills and tools necessary for financial success throughout life."

The Foundation has also developed several "investor education modules" in Spanish and English, and posts them on the website (e.g., "Retirement Savings Vehicles," "Managing Investment Risk").

Most media grants have been made through the General Education giving area. Applications are accepted for this program. FINRA also has a giving program entitled Financial Education in Your Community. Launched in 2009, this program is a collaboration between the Foundation and United Way. It provides funding to community-based organizations that have demonstrated the ability to reach and engage working individuals and families through effective social marketing techniques. It is focused on explicitly on financial education. Application to this program is by invitation only.

The Foundation is especially interested in educational and/or research projects that:

  • Expand the body of knowledge and/or provide practical materials that will have a positive impact on investor education or protection.
  • Research methods to improve disclosure to investors about investments and financial services.
  • Encourage investors to check the background of financial professionals prior to doing business with them.
  • Empower the nation's young people that are about to enter the workforce to better prepare for retirement and to meet other financial goals.
  • Better prepare older Americans for handling their finances during retirement.
  • Encourage women and minority populations to take control of their financial future through investor education.
  • Advance practice, policy and thought in the fields of investor education and protection.

The FINRA Foundation places high priority on:

  • Reaching and engaging a well-defined target audience.
  • Collaboration and strategic partnerships that facilitate effective marketing and distribution efforts.
  • Measurable impact.
  • Reaching large audiences in a cost-effective manner.
  • Projects that "respond to an unmet investor education or protection need."
  • Replicability and sustainability.

The Foundation likes to see:

  • A practical and detailed plan for distributing project deliverables.
  • Projects that field test promising ideas and evaluate results or take proven ideas and approaches to scale.
  • Projects that can be expanded or replicated by other organizations.
  • Strategic collaboration with partners, including those in the non-profit, public or for-profit sectors.
  • Use of technology to reduce cost and increase availability.
  • Leveraging of programs or materials developed or supported by FINRA, the Foundation, National Endowment for Financial Education (NEFE) or the U.S. Securities and Exchange Commission.
  • Projects based on research that shows the relevance of deliverables.
  • How behavioral changes in the target audiences will be achieved and measured, if necessary for the project's success.
  • Projects that are sustainable once the Foundation’s support ends.

Sample grants:

  • $711,153 to American Public Media for Investor Education Reporting for the Underserved on Marketplace (2007).
  • $646,507 to the ASPIRA Association for its comprehensive investor education program for the Hispanic community, including a Web-based and downloadable bilingual curriculum to be disseminated through a national train-the-trainer program. The project also includes a partnership with HITN-TV to produce a series of public service announcements and talk shows on the topics of saving and investing (2007).
  • $519,194 to the First Nations Development Institute (Longmont, CO) for new tools to meet the financial and investor education needs of Native Americans. (2010).
  • $478,700 to Community Television Foundation of South Florida for "Get Your Finances Ready for Retirement", a one-year feature series on Nightly Business Report, with feature articles in US News and World Report (2007).
  • $487,342 to American Public Media for Investor Education Reporting on Marketplace Money and Marketplace Morning Report (2005).
  • $435,740 to Community Television Foundation of South Florida for Your Mind and Your Money, a year-long series of broadcast reports and articles led by Nightly Business Report and Kiplinger's Personal Finance (2009).
  • $340,294 to Kidz Online for "Mastering Money," a financial literacy web show (2005).
  • $332,035 to University of Tennessee, Knoxville, for the Love Your Money financial education program (2011).
  • $261,444 to Community Television Foundation of South Florida (2010).
  • $229,200 to Operation HOPE, Inc. for online tools teaching personal finance basics to college students, particularly those attending Historically Black Colleges and Universities (2011).
  • $142,231 to American Public Media (2010).
  • $100,000 to Alliance Library System, East Peoria, IL (2010).
  • $50,000 to Chesapeake Public Library Foundation, Chesapeake, VA (2010).
  • $43,500 to Schaumburg Township District Library, Schaumburg, IL (2010).

Fit for public broadcasting: There is a good fit with public media. The Foundation does not give a lot of grants, but is specifically interested in reaching significant audiences with high-quality educational content. Projects serving minority communities, youth or older Americans may be of particular interest. The Foundation likes projects that leverage more than one outlet or platform to reach audiences. The marketing/dissemination plan is an important part of the application.

Eligibility: The Foundation will award grants to entities designated as tax-exempt according to Internal Revenue Code Section 501(c)(3) and state and other public colleges and universities.

The Foundation will not fund:

  • Organizations affiliated with a securities firm or individual regulated by FINRA, such as a foundation established by a securities firm
  • Salaries of permanent staff (including administrative and executive personnel)
  • Capital costs such as building and construction or equipment such as computer hardware and office furniture
  • Pass-through funding -- for example, if the 501(c)(3) organization plans to turn over the funding to a proprietary organization or consultant

Deadline: Online Project Concept Forms are accepted at any time. Funding decisions are made in Spring and Fall.

How to apply: The Foundation sometimes issues specific Requests for Proposals, but it also accepts unsolicited requests. Interested applicants should review the application guidelines. Initial approach is via online Project Concept Form. The FINRA Foundation accepts Project Concept Forms at any time during the year. The FINRA Foundation will respond to your Project Concept Form within one month of receipt and either decline the request or invite a full proposal. The entire decision-making process—from the submission of a Project Concept Form to a notification of funding—takes several months.

Projects should be completed within 36 months of the grant award. The FINRA Foundation looks favorably upon projects that demonstrate sustainability beyond the grant period.

Giving range: Varies widely. Recent grants are in the $100,000 to $350,000 range.

Assets: $64,529,713 (year ended 12/31/2010).

Total giving: $5,565,278 (year ended 12/31/2010).