Current through Register Vol. 41, No. 3, September 23, 2024
A. The purpose of
the Neighborhood Assistance Program is to encourage business firms and
individuals to make donations to neighborhood organizations for the benefit of
low-income persons.
B. Neighborhood
organizations that do not provide education services and that wish to become an
approved organization must submit an application to the commissioner.
Neighborhood organizations that provide education services must submit an
application to the Superintendent of Public Instruction. The application
submitted to the Superintendent of Public Instruction must comply with
regulations or guidelines adopted by the Board of Education. The application
submitted to the commissioner must contain the following information:
1. A description of eligibility as a
neighborhood organization, the programs being conducted, the low-income persons
assisted, the estimated amount that will be donated to the programs, and plans
for implementing the programs.
2.
Proof of the neighborhood organization's current exemption from income taxation
under the provisions of § 501(c)(3) or 501(c)(4) of the Internal Revenue
Code, or the organization's eligibility as a community action agency as defined
in the Economic Opportunity Act of 1964 (
42 USC §
2701 et seq.) or housing authority as defined
in §
36-3 of the Code of
Virginia.
3. For neighborhood
organizations with total revenues (i) of more than $100,000, an audit or review
for the most recent year or (ii) of $100,000 or less, a compilation for the
most recent year. The audit, review, or compilation shall be performed by an
independent certified public accountant. "Total revenues" means all revenues,
including the value of all donations for the organization's most recent
year.
4. A copy of the
organization's current federal form 990.
5. A current brochure describing the
organization's programs.
6. A copy
of the annual report filed with the Department of Agriculture and Consumer
Services' Division of Consumer Protection.
7. A statement of objective and measurable
outcomes that are expected to occur and the method the organization will use to
evaluate the program's effectiveness.
C. To be eligible for participation in the
Neighborhood Assistance Program, the applicant and any of its affiliates must
meet the following criteria:
1. Applicants
must have been in operation as a viable entity, providing neighborhood
assistance for low-income people, for at least 12 months.
2. Applicants must demonstrate that at least
50% of the persons served shall be low-income and at least 50% of the total
revenues shall be used to provide services to low-income persons.
3. Applicant's audit must not contain any
significant findings or areas of concern for the ongoing operation of the
neighborhood organization.
4.
Applicants must demonstrate that at least 75% of total revenue received is
expended to support their ongoing programs each year.
D. Beginning with tax credit allocations for
fiscal year 2016-2017, the applicant and any of its affiliates must meet the
following requirements:
1. Affiliates of
neighborhood organizations must demonstrate that at least 50% of the persons
served arelow-income persons;
2.
Affiliates of neighborhood organizations must demonstrate that at least 50% of
the revenues are used to provide services to such persons;
3. Affiliates must also meet the definition
of"neighborhood organization" under §
58.1-439.18 of the Code of
Virginia; and
4. Affiliates are not
required to submit an audit, review, or compilation, and such reports shall not
apply in determining theeligibility of the neighborhood organization submitting
a proposal.
E.
Requirements in subsection D of this section do not apply to a neighborhood
organization submitting a proposal and any of its affiliates, provided that:
1. The neighborhoodorganization otherwise
meets all statutory requirements and regulations;
2. The neighborhoodorganization received a
fiscal year 2013-2014 allocation of neighborhood assistance tax credits;
and
3. No affiliate of the
neighborhood organization submits a proposal for or receives an allocation of
taxcredits pursuant to this chapter for the program year for which the
neighborhood organization hassubmitted its proposal.
F. The application period will start no later
than March 15 of each year. All applications must be received by the Department
of Social Services no later than the first business day of May. An application
filed without the required audit, review, or compilation will be considered
timely filed provided that the audit, review, or compilation is filed within 30
days immediately following the deadline.
G. Those applicants submitting all required
information and reports and meeting the eligibility criteria described in this
section will be determined an approved organization. The program year will run
from July 1 through June 30 of the following year.
H. The commissioner may terminate an approved
organization's eligibility based on a finding of program abuse involving
illegal activities or fraudulent reporting on contributions.
Statutory Authority: §§
58.1-439.20 and
63.2-217 of the Code of
Virginia.
