New grant opportunity from Prosperity Now, with support from Citi Foundation, will support nonprofit VITA providers in helping families understand available child savings opportunities, navigate their options, and take informed next steps at tax time.

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Washington, D.C. — Every child deserves the opportunity to begin adulthood on strong financial footing. New child savings opportunities have the potential to help millions of families move closer to that goal. These opportunities only make a difference if families know about them and have trusted support to help them take action.  

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Today, Prosperity Now opened applications for the first implementation cohort of the ABC Initiative (Asset Building for Children. This  national effort, with $5 million in funding from Citi Foundation, will help more families access existing and emerging child savings opportunities, with a focus on how the new Section 530A Accounts will reach the families that need them most.

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Prosperity Now is launching the initiative’s first phase by supporting trusted community organizations that help families understand available opportunities, navigate their options, and make informed decisions for their families. This Request for Proposals (RFP) will provide implementation grants to eligible nonprofit organizations operating IRS-sponsored Volunteer Income Tax Assistance (VITA) programs. Selected organizations will receive grants ranging from $25,000 to $150,000, along with training, technical assistance, implementation resources, peer learning opportunities, and evaluation support. Applications open July 20 and close August 7, 2026.

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VITA providers are a practical starting point because they already help families navigate important financial decisions at tax time. Through this first implementation cohort, selected organizations will integrate child savings information, education, referrals, and navigation into VITA services, helping families learn about available child savings opportunities and understand how to take advantage of them.

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“For many families, tax time is when financial decisions become real. A refund can help meet immediate needs, and it can also open the door to planning for a child’s future,” said Marisa Calderon, President and CEO of Prosperity Now. “VITA providers are trusted professionals already helping families navigate complex decisions at a critical point in time. Through the ABC Initiative, we are helping them bring clear, practical child savings guidance into that moment, so more families can understand their options and take action now that can help build better futures for their children.”

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By investing in these trusted community organizations, we are strengthening one of the country's most effective financial access networks and helping more children begin their financial journey with greater opportunity.

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“We want to see families across the country have access to trusted information that will support them as they invest in their child’s economic future,” said Brandee McHale, Head of Community Investing and Development at Citi and President of the Citi Foundation. “With these proposed grants, Prosperity Now will support VITA providers to be a bridge between low-income families and child savings opportunities that create long-term financial resilience.”

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The ABC Initiative builds on Prosperity Now’s recently released Next-Generation Savings Readiness Report, which found that organizations across the country are ready to help families access child savings opportunities but need additional support to successfully implement and sustain those efforts. This first implementation cohort will help move that readiness into action by supporting VITA providers with the tools, training, and guidance needed to connect families with child savings opportunities during the 2027 tax season.

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For more than two decades, Prosperity Now has worked alongside national, state, and local partners to expand opportunities for children and families to build savings and long-term financial security. The ABC Initiative represents the next chapter of that work by strengthening the trusted community partnerships that help families navigate important financial decisions and save for their children’s future.

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Eligible nonprofit organizations operating IRS-sponsored VITA programs can learn more and apply HERE.

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