Why is CRA important to nonprofits?
Banks need strong partnerships with organizations that can help them meet the needs of the community and fulfill their CRA goals. Community-based nonprofit organizations provide opportunities for banks to volunteer, lend and donate funds and other resources to the individuals and areas that need it most. Because nonprofits need a variety of support to serve…
Do I have to be a 501(c)(3) to get support under the CRA?
The short answer is it depends. In most cases, if you are seeking a financial donation or grant from a bank, they will require that you have a 501(c)(3) or similar nonprofit designation. They may also ask for documentation to ensure that their contribution will be tax deductible. However, CRA is much more than financial…
How do I know if my organization qualifies for CRA support?
Nonprofit organizations are eligible for CRA support if they provide qualified community development services, loans or investment to either: Low- and moderate-income individuals Low- and moderate-income geographic areas Area specially designated as underserved, distressed or disaster Small businesses or farms If a nonprofit organization has a primary mission and/or programs that falls into one or more…
Does my nonprofit’s mission have to be CRA-qualified to get bank support?
A nonprofit does not have to qualify at a mission level to receive CRA support. While certain organizations have a mission that clearly meets the requirements of CRA, many organizations do not. If a nonprofit’s mission is not CRA-focused, it may still have programs or services that meet CRA requirements. For example, a nonprofit’s mission may…
What supporting documents will a bank need?
Each bank has it’s own requirements for what types of documents they’d like to see for a bank. The type of number of documents also varies depending on if a nonprofit is applying for a loan, completing a grant application or simply asking for volunteers from the bank. In general, the most common documents a…
How do I prove my program helps low-income people?
When a nonprofit is seeking CRA support from banks, the most common question will be if the nonprofit and/or its services and programs are focused on low- or moderate-income people or areas. Determining if a program or services meets these important criteria can be time-consuming and complex. Different federal agencies qualify low- and moderate-income in…