I am not involved directly in CRA process in our bank, but was approached about providing a Grant of for a local charity. The purpose of the grant would be to sponsor LMI kids for a Summer camp. This camp runs the entire Summer and is intended to help the parents of the children continue working (or continue their education) while their children are off school for the Summer. This is an existing program that has operated for several years.

Based on my review of previous posts, I have gathered the 501(c)3 status, the Mission Statement of the organization over all and the program specific information (purpose, how to qualify for sponsorship, outline of camp activities).

I was just wondering what additional information I should gather and if you think this would qualify for CRA credit before I present to the CRA committee of the bank. To me it seems to be providing a community service to LMI individusal, but I just wanted to make sure I was thinking correctly.

http://www.bankersonline.com/tools/tools_compliance.html#cdforms

Opie, answer the questions in the document called Community Development Investments/Bank Donations Tracking Form and take it to your CRA committee. This sounds like an easy CRA investment for the bank. I doubt you'll get any guff for it

Don't hang your hat on the 501(c)3 issue by the way While you want this for tax purposes, it's not a requirement for CRA investment credit.

The mission statement of the organization also is helpful, but if the entire organization does not serve LMI, their program specific information would be all you would need. For example, I donate to the Lung Association annually and take CRA credit for it. While the Lung Association does not meet the needs of the CRA test, I restrict my donation to scholarships for camp that are only given to LMI children. The entity collects financial information and provides the scholarships to students within the guidelines of LMI which allows me to take credit for it every year.

Don't worry about camp activities either Examiners don't really care about the warm and fuzzy stuff (children cooking smores, etc.). They just want to see the benefit to LMI kids (ie they go to camp!) and how you verify that the children actually are LMI.

Save the mushy stuff for marketing

(PS, it's not that examiners don't have hearts...it's just that they don't use them at the office ) KIDDING!!! heh heh

PSS (forgive me....necessary sucking up) My examiner's heart is in use 100% of the time. heh heh

Dawnie, how does "camp" fit the definition of community development, though? The closest I can come is maybe it's a community service, but I can't find any definition for "community service". I tend to think of things like hospitals, fire protection, police protection, etc as being community services, not necessarily camps.

Allowing LMI children to experience opportunities, ie opera, camp, etc., broadens their education and umm I can't think of the word, mental horizon Camps offer a learning opportunity that children can't get from living in the city, as well as the opportunity to see the world through others eyes. The children wouldn't have this opportunity if they had to pay tuition to camp on their own, hence the "community service" to LMI individuals

Children and in fact all folks, need to see a bigger picture of the world in order to have dreams to inspire themselfs to grow. If we didn't provide them with the opportunity to experience music, theatre, camp, etc., their only world would be the poverty they currently live in. Inspiring their dreams is a service as valuable as fire, police and medical services. Inspiration has unlimited value.

(jumping off my soap box) heh heh sorry, I got a little bit sappy there but I really do believe this, and I'd fight tooth and nail to support it if I had to. Fortunately, it's not a problem as I've had all of these types of programs approved.

The entity providing the camp is providing the "service" to the LMI kids by arranging the camp.

We have done any number of grants for camp for LMI children, music classes for LMI children, and so forth and have not had a single one questioned. We present them that these activities improve the life of these children and their families - which they do - giving them a chance for a better future.

Thanks for the help!