FHLB Des Moines Boosts Community Development with Member Impact Fund

The Federal Home Loan Bank of Des Moines (FHLB Des Moines) is significantly amplifying the reach of local financial institutions through its Member Impact Fund. By partnering with member banks and credit unions, the program multiplies donations to support affordable housing and community development across several regions, including a major push in South Dakota.

What is the Member Impact Fund?

The Member Impact Fund is a matching grant program designed to encourage partnerships between eligible FHLB Des Moines member financial institutions and eligible grantees. To qualify, a grantee must be a government entity or a not-for-profit organization with a mission focused on community development or affordable housing, located within an eligible state or U.S. Territory.

The program operates as a multiplier. FHLB Des Moines provides a matching grant—up to a 3:1 ratio—that amplifies the initial donation made by the member financial institution.

Impact in South Dakota and Beyond

This year, South Dakota was selected as one of the priority states for the annual fund. The scale of the investment is substantial, with more than $18 million awarded to support affordable housing and community development across South Dakota, Alaska, Guam, and the Commonwealth of the Northern Mariana Islands.

South Dakota Funding Breakdown

Of the total awards, $13.3 million was directed specifically to South Dakota, totaling 356 individual grants. This initiative is part of a broader mandate, as representatives from FHLB Des Moines note that 10 to 20 percent of the bank’s profits must be returned to the community.

Local Partnerships in Action

Several financial institutions have leveraged this program to support local nonprofits. For example, Minnwest Bank partnered with FHLB Des Moines to award $183,750 to 21 nonprofit organizations in South Dakota. These recipients were nominated by local staff to ensure the funds reached organizations making a tangible impact in the communities they serve.

Similarly, CorTrust Bank partnered with FHLB Des Moines to distribute $183,750 among 18 different causes across South Dakota.

Featured Grant Recipients

Through the Minnwest Bank partnership, various organizations received funding, including:

• Affordable Housing Solutions Inc. (Sioux Falls)
• Habitat for Humanity of Greater Sioux Falls, Inc. (Sioux Falls)
• The Abbey of the Hills Inn & Retreat Center (Marvin)
• Summit Area Economic Growth, Inc. (Summit)
• Challenger Learning Center of South Dakota (Watertown)
• Southeastern Behavioral Healthcare (Sioux Falls)

Key Takeaways

• Purpose: To multiply resources for nonprofits focused on affordable housing and community development.
• Mechanism: Member financial institutions donate, and FHLB Des Moines provides a matching grant (up to 3:1).
• Reach: Recent funding exceeded $18 million, covering South Dakota, Alaska, Guam, and the Commonwealth of the Northern Mariana Islands.
• South Dakota Specifics: $13.3 million was distributed via 356 grants within the state.

Frequently Asked Questions

Who is eligible to receive a Member Impact Fund grant?

Eligible grantees include not-for-profit organizations or government entities located in an eligible state or U.S. Territory that have a mission of promoting community development or affordable housing.

How are the recipient organizations chosen?

Recipient organizations are nominated by the staff of the member financial institutions (such as banks or credit unions) that partner with FHLB Des Moines.

Who regulates the Federal Home Loan Bank of Des Moines?

The charter of FHLB Des Moines and other similar federal home loan banks is regulated by the Federal Housing Finance Agency.