Transcript Neighborhood Investment Program

NEIGHBORHOOD
INVESTMENT PROGRAM
FY 2014 Application Workshop
Introductions
2
Monica Miller, CEDFP
Manager, Local Capacity Development
Community Development
West Virginia Development Office
Capitol Complex, Building 6, Room 553
(304) 957-2049 (office) (304) 558-2246 (fax)
(800) 982-3386 (toll free)
[email protected]
www.WVDO.org
Introductions
3
Cathy L. Durham
Secretary
Community Development
West Virginia Development Office
Capitol Complex, Building 6, Room 553
(304) 957-2056 (office) (304) 558-3246 (fax)
(800) 982-3386 (toll free)
[email protected]
www.WVDO.org
Introductions
4
Lara Stephens, Community Development Specialist
Neighborhood Investment Program (NIP)
Community Development
West Virginia Development Office
Capitol Complex, Building 6, Room 553
(304) 558-2234 (office) (304) 558-3246 (fax)
(800) 982-3386 (toll free)
[email protected]
www.WVDO.org
Introductions
5
Sarah Handley, Intern
Neighborhood Investment Program (NIP)
Community Development
West Virginia Development Office
Capitol Complex, Building 6, Room 553
(304) 558-2234 (office) (304) 558-3246 (fax)
(800) 982-3386 (toll free)
[email protected]
www.WVDO.org
Introductions
6
Chris Garner, Coordinator
Neighborhood Investment Program (NIP)
Community Development
West Virginia Development Office
Capitol Complex, Building 6, Room 553
(304) 957-2072 (office) (304) 558-3246 (fax)
(800) 982-3386 (toll free)
[email protected]
www.WVDO.org
NIP Application Workshop Agenda
7

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




What is the NIP
Why was the NIP
created
How does it work
History
Requirements for
Participation
Benefits to Donors
Guest Speaker
NIP Application Workshop Agenda
8

Application Review
The next step
 Application Process
 Items needed to
complete the application
 FactFinder2
 Review the “New
Application”
 Scoring the application



Guest Speaker
Questions & Answers
What is the NIP
9
 Tax Credit program enacted in 1996
 Designed to provide clear incentives for
the private sector to collaborate with
non-profits on such projects or services as:








Healthcare
Counseling
Emergency Assistance
Crime Prevention
Education
Housing
Job Training
Physical and Environmental
Improvements
Why Was the NIP Created
10

History
 Low
levels of
charitable giving
 No state tax deduction
for charitable
donations
 Lack of partnership
between business and
non-profit community
Why Was the NIP Created
11

Purpose
Increase the fundraising
capacity of 501(c)3
organizations
 Create partnerships
between non-profits and
communities
 Increase the capacity of
501(c)3 organizations to
support local community
development activities

A Brief History of the NIP
12

The NIP includes a wide
variety of projects such as:
Homeless, domestic violence,
and children’s shelters
 College scholarships for
low-income students
 Medical services for
low-income patients
 Arts programs for
low-income children
 Affordable, quality housing

NIP Statistics – Number of Applications
13
250
214
200
196
164
150
128
100
97
50
0
74
182
NIP Statistics – Amount of Credit Requested
14
$12,000,000
$10,217,595
$10,000,000
$9,364,182
$7,369,600
$8,000,000
$7,985,241
$6,000,000
$5,628,703
$4,000,000
$2,000,000
$0
$3,526,044
$6,138,208
NIP Statistics – Number of Approved Projects
15
250
204
200
180
179
150
116
100
50
0
69
61
140
NIP Credit Issuance Statistics
16
Percent Credit Issued
100
90
80
70
60
50
40
30
20
10
0
96
83
76
92
97
96
94
81
54
29
10
40
62
Percent
Credit
Issued
How It Works
17

General Information
Organizations must apply
annually to the WVDO
 WVDO reviews
applications and makes
recommendations to the NIP
Advisory Board
 NIP Advisory Board
approves/denies
applications
 Executive Director of the
WVDO certifies approved
projects

How It Works
18

NIP Tax Credit
$3 million in tax credit is
allocated annually
 NIP tax credit is worth
50% of the eligible
donation
 Minimum donation for
tax credit is $500,
maximum donation is
$200,000
 Certification fees of 3%
are collected to cover
administrative costs

How It Works
19

The NIP operates on
the state fiscal year
 Fiscal
 July

Year is:
1st – June 30th
Any credit remaining
on July 1, 2014 will be
forfeited
How It Works - Eligible Contributions
20
Stock
Cash
In-Kind Professional
Services
Personal Property
Real Property
How It Works - Eligible Contributions
21

Cash
 Easiest
eligible
donation type
 No
additional
processes to determine
fair market value
How It Works - Eligible Contributions
22

Publicly traded common or
preferred stock
representing ownership in
a corporation

Value is based on an
average of the high and
low price of the stock on
the date of transfer and
would need to be verified

Stock is eligible if it is sold
within 180 days
How It Works - Eligible Contributions
23

Real Property
 The
value of the
donation is the Fair
Market Value (FMV) as
determined for
property taxes
How It Works - Eligible Contributions
24

Personal Property (i.e.
computers, construction
materials, vehicles,
etc.)
 Valued
as you would
for a federal tax
deduction
How It Works - Eligible Contributions
25

In-Kind Professional
Services
Eligible professions:
attorneys, accountants,
architects, doctors, and
other state licensed
medical professionals
 Only 25% of the total
donations made by a
donor may be in-kind
 Only 75% of the value
of the services is eligible
for tax credit

Benefits to Donors
26

Currently, donors may
use NIP tax credit on the
following WV State
Taxes:

Corporate Net Income
Tax

Business Franchise Tax

Personal Income Tax
Benefits to Donors
27

The Tax Credit Voucher
 This
is what you (the nonprofit) must issue to the
donor. The donor must keep
this voucher and attach it to
his/her taxes along with….
 The
Tax Credit Schedule
www.state.wv.us/taxrev/uploads/sch_nip2.pdf
Benefits to Donors
28




Donors have the option of
using the tax credit all in
one year or within a five
year period
Cannot reduce total state
tax liability by more than
50%
Maximum tax credit
allowed in any one year
to any donor is $100,000
All donations remain
eligible for Federal
Deduction
Requirements For Participation
29

Participating organizations
MUST:

Be designated as a 501(c)3
by the IRS

Be registered with the
Secretary of State’s Office as
a charitable organization

Be located in West Virginia or
managed locally

Serve residents of West
Virginia
Requirements For Participation
30
To register with the West Virginia Secretary of State’s Office, please
go to the following website:
http://www.sos.wv.gov/business-licensing/charities/Documents/Chr1.pdf
Requirements For Participation
31

Projects should be
community based
 Will
benefit citizens in
the immediate
geographic area in
which the project is to
operate
 Managed
locally
Requirements For Participation
32

Projects should serve
primarily low-income
persons
 Services
to those
persons whose
household income is
less than 125% of the
federal poverty rate
Requirements For Participation
33

Projects should serve
highly distressed
neighborhoods

Serving communities that
are economically
distressed

Serving communities with
crime or unemployment
problems

Serving communities with
high numbers of
uneducated citizens
Requirements For Participation
34

Projects should be
collaborative

Works with other
organizations, government
bodies, and businesses to
maximize benefits of the
projects

Works within the
framework of a larger
plan to improve
communities

Doesn’t overlap with
existing services
Requirements For Participation
35

Projects should be innovative or
unique

Organizations that have sound,
or are proposing new and
unique, solutions to existing
problems

Organizations that are trying
new ideas that may increase the
effectiveness of existing
programs

Organizations that have applied
in the past must illustrate how this
application is different from
previous submissions
Requirements For Participation
36

Projects should maintain low
administrative costs

Cost for executive salaries,
benefits, and expenses are
kept to a reasonable level

Cost for materials and
supplies not directly
benefiting program
participants are minimized

The definition of “low” may
be different for a service
oriented organization than
one that offers financial
assistance
Requirements For Participation
37

Projects should demonstrate a
strong showing of need for
the services

Show that the service is
needed in the proposed
service area

Show that the service is not
currently provided or is not
adequate enough to meet the
need

Show that the service is not in
direct competition with other
non-profit organizations in the
same service area
Requirements For Participation
38

Projects should have the
capacity to deliver the
proposed services

The applicant has successfully
provided the same or similar
services in the past

The applicant understands
and is capable of providing
any special requirements
necessary to do the job

The applicant is adequately
staffed and managed
How It Works
39

NIP Timeline
 June
5th
 application
 July
Workshop
5th
 Applications
Due
 July-August
 Staff
Review and
Ranking
 September
 Board
Meeting to
Approve Allocations
How It Works
40

NIP Timeline

September
Participant Workshop
 Vouchers & Letters
distributed
 Contributions accepted
until March 15th

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February 15th


Reallocation mailing sent
March 15th

Deadline for reallocation
How It Works
41

NIP Timeline

March 15th – April 1st
“Dead Period”
 Reallocation calculated
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
Early April
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April – June 30th


New vouchers and letters
mailed
Issue remaining credits
June 30th
Deadline for issuing
credits
 Program Closeout

Reallocation Reference Chart
42
If your organization has:
Issued 0%
Issued between 1% and
44%
Issued between 45% and
69%
Issued between 70% and
89%
Issued 90% or more &
was awarded full request
Then:
A maximum of 100% may be recaptured.
A maximum of 50% may be recaptured.
A maximum of 25% may be recaptured.
Not subject to recapture or supplemental
credit.
Not subject for recapture or supplemental
credit.
Not subject to recapture.
Issued 90% or more & not Eligible for supplemental credit award.
awarded full requested
Supplemental & original award may not
amount
exceed original request.
Judy Sjostedt
43
 Executive Director, PACF
(Parkersburg Area Community Foundation)
 Serves on the Board of Directors for:
 Vision Shared
 Highmark WV Blue Cross Blue
Shield
 West Virginia Grantmakers
Association
 Neighborhood Investment Program
 Received the WV Grantmakers 2010
“Spirit of Philanthropy” Award for Staff
Leadership
 Serves on the National Council of
Community Foundations Leadership Team
of the Council on Foundations
Application Review
44
Chris Garner, Coordinator
Neighborhood Investment Program (NIP)
Community Development
West Virginia Development Office
Capitol Complex, Building 6, Room 553
(304) 957-2072 (office) (304) 558-3246 (fax)
(800) 982-3386 (toll free)
[email protected]
www.WVDO.org
The Next Step
45


Complete & Submit
Application by July 5th
Application Review


Advisory Board Meeting



July – August
September
Approve Allocations
Participant Workshop


Late September
Vouchers & Letters Distributed
Application Process
46

Characteristics of a
good application
 Complete
 Concise
 Coherent
 Conforms
Application Process
47

NIP Application
Guidelines
 Application
Guidelines
define project types
and criteria
 Use
this section often
when completing the
NIP Application
Application Process
48

Sample Board Resolution
 Use
this template
 Must be on your agency’s
letterhead

FactFinder2 Instructions

Required Attachments
Items Needed to Complete the New Application
49






Application & Guidelines
Current list of your board
members
History of the organization’s
past NIP participation
History of your fundraising
goals
FactFinder2 instructions
Most recent IRS form 990
Required Attachments
50
The following attachments are required in
order for your application to be
considered. All attachments should be
current or the most recent available.
 IRS form 990
 IRS 501( c )3 Determination Letter
 Charitable Organization Confirmation
from the Secretary of State
 Annual Financial Statement
 Board Resolution
application guidelines)
(Sample provided with the
NIP Application Form
51

The “New Application”

Is an Excel spreadsheet format

Do not attempt to change the
format
Includes general applicant and
project information, the amount
of credit requested, and past
participation
Due to increasing demand for
the tax credit, we are requiring
projects to seek no more than
$125,000 in credit which is the
same as last year


(look for it in your inbox in the morning)
FactFinder2
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Instructions
 http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml
 Under “Community Facts”, enter your project’s city, county, state, or zip code
and press “GO”.
 For poverty rates, select “Poverty”. The poverty rate for the area you selected
will appear in the top portion of the inset box.
 FACTFINDER2 can be used for finding additional facts to help support your
answers to questions on the application. Choose other categories to discover
what information FACTFINDER2 has to offer.
FactFinder2
53
FactFinder2
54
FactFinder2
55
Scoring the Application
56
Question
Weighting
Point Value
 Does the project primarily serve low income individuals
8.2%
25
 Does the project serve highly distressed areas of the
community
7.9%
24
 Will your project serve an area with a high rate of
poverty
7.6%
23
 Does the organization have an adequate plan to
promote and use all of the requested NIP tax credits
7.2%
22
 How successful has the organization been at using NIP
credits in the past
6.9%
21
 Will the project benefit local citizens in the immediate
area of the project
6.6%
20
Scoring the Application
57
Question
Weighting
Point Value
 Is there a strong need for the project in the proposed
project area
6.3%
19
 Is your organization an independent organization that is
managed and governed locally
5.9%
18
 Is your organization an affiliate of a national, state,
multi-state, or international organization
5.6%
17
 Has your organization successfully provided the same or
similar services in the past
5.3%
16
 Is the proposed project innovative, creative, or unique in
approach
4.9%
15
 Did the organization quantify the way in which they will
measure the success of the project
4.6%
14
Scoring the Application
58
Question
Weighting
Point Value
 Will the project be a collaborative effort and if so, how
many organizations will be involved
4.3%
13
 Does the organization maintain low expenses
3.9%
12
 Has the organization demonstrated an adequate
capacity to be able to deliver the proposed services
3.6%
11
 How soon will the project benefit the local community
3.3%
10
 How successful has the organization been at achieving
fundraising goals in the past
3.0%
9
 Is the organization a new participant in the NIP
2.6%
8
 Is the application complete and have all attachments
been received
2.3%
7
Robyn Hess
59
 Director of Main Street Kingwood since 2002
 Former Public Relations Consultant for Main Street Morgantown
 Development Director for the Mon County Drug & Alcohol Council
 Development Director at the Preservation Board in St. Augustine Florida
 25 years as a grant writer and reviewer
 BA Communications/Broadcast Journalism, WVU
 MA Journalism, Jacksonville University
 Proud mother and grandmother of current and future WVU graduates
REMEMBER: APPLICATION DEADLINE
60
All NIP FY-2014
applications must be
RECEIVED no later
than:
Friday
July 5th, 2013
Instructions
61
Instructions for submitting your application
 Each organization should complete the “Electronic” version of the application which
will be emailed to you.
 If you do not have access to email or cannot utilize the Excel based spreadsheet, a
paper version will be made available. If you intend to use a paper format,
please notify me in advance.
 Save your completed application using “Organization Name FY-2014”. This will
save time and eliminate errors in processing your application.
 Do not attempt to save the document in any format other than Excel.
 Email your completed (7 page) application to me at [email protected].
 Do not include any attachment with this email.
 Print a copy of the application and have your organization’s CEO sign and date it.
 Mail the signed application along with all required attachments to the WVDO at
the address listed on the following screen.
 We will notify you when we have received your application.
Mailing Information
62
Neighborhood Investment Program
West Virginia Development Office
State Capitol Complex
Building 6, Room 553
Charleston, West Virginia 25305
Contact Information
63
West Virginia Development Office
Chris Garner, NIP Coordinator
Phone:
(304) 957-2072
Fax:
(304) 558-3246
E-mail:
[email protected]
Web Address: www.wvdo.org/downloads