NEIGHBORHOOD INVESTMENT PROGRAM FY 2014 Application Workshop.

NEIGHBORHOOD INVESTMENT PROGRAM

FY 2014 Application Workshop

2

Introductions

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

3

Introductions

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

4

Introductions

Lara Stephens, Community Development Specialist

Neighborhood Investment Program (NIP)

Community DevelopmentWest 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

mailto:[email protected]

5

Introductions

Sarah Handley, Intern Neighborhood Investment Program (NIP)





www.WVDO.org

6

Introductions

Chris Garner, Coordinator Neighborhood Investment Program (NIP)





www.WVDO.org

7

NIP Application Workshop Agenda

What is the NIP Why was the NIP

created How does it work History Requirements for

Participation Benefits to Donors Guest Speaker

8

NIP Application Workshop Agenda

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

9

What is the NIP

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

10

Why Was the NIP Created

History Low levels of

charitable giving No state tax

deduction for charitable donations

Lack of partnership between business and non-profit community

11

Why Was the NIP Created

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

12

A Brief History of the NIP

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

13

NIP Statistics – Number of Applications

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

50

100

150

200

250

9774

128164

196

182

214

14

NIP Statistics – Amount of Credit Requested

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$7,369,600

$3,526,044

$7,985,241

$5,628,703

$9,364,182

$6,138,208

$10,217,595

15

NIP Statistics – Number of Approved Projects

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

50

100

150

200

250

69 61

116 140

180

179

204

16

NIP Credit Issuance Statistics

19971999

20012003

20052007

20092011

0102030405060708090

100

10

29 40

54 62

7681

8392

96

97 9496

Percent Credit Issued

Percent Credit Issued

17

How It Works

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

18

How It Works

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

19

How It Works

The NIP operates on the state fiscal year Fiscal Year is:

July 1st – June 30th Any credit

remaining on July 1, 2014 will be forfeited

20

How It Works - Eligible Contributions

Personal Property

Cash Stock

Real Property

In-Kind Professional

Services

21


Cash

Easiest eligible donation type

No additional processes to determine fair market value

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

23


Real Property

The value of the donation is the Fair Market Value (FMV) as determined for property taxes

24


Personal Property (i.e. computers, construction materials, vehicles, etc.)

Valued as you would for a federal tax deduction

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

26

Benefits to Donors

Currently, donors may use NIP tax credit on the following WV State Taxes:

Corporate Net Income Tax

Business Franchise Tax

Personal Income Tax

27

Benefits to Donors

The Tax Credit Voucher This is what you (the

non-profit) 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

28

Benefits to Donors

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

29

Requirements For Participation

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

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

31


Projects should be community based

Will benefit citizens in the immediate geographic area in which the project is to operate

Managed locally

32


Projects should serve primarily low-income persons

Services to those persons whose household income is less than 125% of the federal poverty rate

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

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

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

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

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

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

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How It Works

NIP Timeline June 5th

application Workshop July 5th

Applications Due July-August

Staff Review and Ranking

September Board Meeting to

Approve Allocations

40

How It Works

NIP Timeline September

Participant Workshop Vouchers & Letters

distributed Contributions accepted

until March 15th

February 15th Reallocation mailing sent

March 15th Deadline for reallocation

41

How It Works

NIP Timeline March 15th – April 1st

“Dead Period” Reallocation calculated

Early April New vouchers and letters

mailed April – June 30th

Issue remaining credits June 30th

Deadline for issuing credits Program Closeout

42

Reallocation Reference Chart

If your organization has: Then:

Issued 0% A maximum of 100% may be recaptured.

Issued between 1% and 44%

A maximum of 50% may be recaptured.


A maximum of 25% may be recaptured.


Not subject to recapture or supplemental credit.

Issued 90% or more & was awarded full request

Not subject for recapture or supplemental credit.

Issued 90% or more & not awarded full requested amount

Not subject to recapture.Eligible for supplemental credit award.Supplemental & original award may not exceed original request.

43

Judy Sjostedt

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

44

Application Review

Chris Garner, Coordinator Neighborhood Investment Program (NIP)





www.WVDO.org

45

The Next Step

Complete & Submit Application by July 5th

Application Review July – August

Advisory Board Meeting September Approve Allocations

Participant Workshop Late September Vouchers & Letters

Distributed

46

Application Process

Characteristics of a good application

Complete

Concise

Coherent

Conforms

47

Application Process

NIP Application Guidelines Application

Guidelines define project types and criteria

Use this section often when completing the NIP Application

48

Application Process

Sample Board Resolution Use this template Must be on your

agency’s letterhead

FactFinder2 Instructions

Required Attachments

49

Items Needed to Complete the New Application

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

50

Required Attachments

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 (Sample provided with the application guidelines)

51

NIP Application Form

The “New Application” Is an Excel spreadsheet

format (look for it in your inbox in the morning)

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

52

FactFinder2

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.




53

FactFinder2

54

FactFinder2

55

FactFinder2

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Scoring the Application

Question Does the project primarily serve low income

individuals

Does the project serve highly distressed areas of the community

Will your project serve an area with a high rate of poverty

Does the organization have an adequate plan to promote and use all of the requested NIP tax credits

How successful has the organization been at using NIP credits in the past

Will the project benefit local citizens in the immediate area of the project

Point Value

25

24

23

22

21

20

Weighting

8.2%

7.9%

7.6%

7.2%

6.9%

6.6%

57


Question Is there a strong need for the project in the

proposed project area

Is your organization an independent organization that is managed and governed locally

Is your organization an affiliate of a national, state, multi-state, or international organization

Has your organization successfully provided the same or similar services in the past

Is the proposed project innovative, creative, or unique in approach

Did the organization quantify the way in which they will measure the success of the project

Point Value

19

18

17

16

15

14

Weighting

6.3%

5.9%

5.6%

5.3%

4.9%

4.6%

58


Question Will the project be a collaborative effort and

if so, how many organizations will be involved

Does the organization maintain low expenses

Has the organization demonstrated an adequate capacity to be able to deliver the proposed services

How soon will the project benefit the local community

How successful has the organization been at achieving fundraising goals in the past

Is the organization a new participant in the NIP

Is the application complete and have all attachments been received

Point Value

13

12

11

10

9

8

7

Weighting

4.3%

3.9%

3.6%

3.3%

3.0%

2.6%

2.3%

59

Robyn Hess

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

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REMEMBER: APPLICATION DEADLINE

All NIP FY-2014 applications

must be RECEIVED no later than:

FridayJuly 5th, 2013

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Instructions

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.

mailto:[email protected]

62

Mailing Information

Neighborhood Investment ProgramWest Virginia Development OfficeState Capitol ComplexBuilding 6, Room 553Charleston, West Virginia 25305

63

Contact Information


Chris Garner, NIP CoordinatorPhone: (304) 957-2072Fax: (304) 558-3246E-mail: [email protected]

Web Address: www.wvdo.org/downloads

NEIGHBORHOOD INVESTMENT PROGRAM FY 2014 Application Workshop.

Documents

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