Delaware uses funding derived from a fee charged on payday loans to start a $200,000 Financial Literacy Education Fund (FLEF).
K-12 schools and nonprofits in the state can apply for the funding to increase financial and economic literacy among youth and adults.
Last July, Gov. Jack Markell (D) signed legislation requiring businesses to pay an annual high-cost loan license fee of $1,500 for each licensed office which would then be used to establish and maintain a FLEF.
Proposals for competitive grants will be considered on the basis of how they improve the financial well-being of Delawareans. The state is particularly interested in funding proactive, preventive and forward-thinking proposals. Applications for programs and services designed to reach populations or geographic regions within the state that have had limited access to financial literacy programs are encouraged.
FLEF grants will go for K-12 financial literacy programs, adult financial literacy programs and targeted campaigns for residents facing decisions on debt, with special emphasis on reaching out to members of the military, seniors and minority communities. Applications for the first round are due Dec. 15.
Exclusive FAM insider tip: Nonprofits and schools in other states should take a look at this program. In these tight economic times, this state found a way to fund a program through taxing a questionable practice. Payday loan practices aren't really popular anywhere, so convincing state legislators and officials to tax them should be an easy sell.
Info: Gerard Kelly, 302-577-5092; e-mail, ; for more on FLEF, please visit http://tinyurl.com/283omdd.
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