City of Clarksville Non-Profit Grant Program Guidelines

City of Clarksville Non-Profit Grant Program Guidelines 3/1/2017 - Revised 3/23/2017

Table of Contents 1. Legislative Authority... 1 2. Purpose... 2 3. Eligibility... 2 4. Application Requirements... 2 5. Duplication of Funding/Supplanting... 3 6. Reporting Requirements... 3 7. Conflict of Interest... 4 8. Additional Requirements... 5

1. Legislative Authority The City of Clarksville is authorized under the Tennessee Code Annotated, Title 6 Cities and Towns, Municipal Government Generally, Chapter 54 Municipal Powers Generally, Part 1 General Provisions (2016) to provide financial aid to non-profit charitable organizations or non-profit civic organizations as defined in TCA 6-54-111(2)(A) and (B) below. The Non-Profit Grant Program is administered by the City s Finance Department with oversight by the Chief Financial Officer who is authorized to make decisions on behalf of the City regarding this program. TCA 6-54-111. Appropriation of funds for nonprofit organizations. (a) (1) The legislative body of each municipality may appropriate funds for the financial aid of any nonprofit charitable organization or any nonprofit civic organization in accordance with the guidelines required by subsection (b). (2) (A) For the purposes of this section, "nonprofit charitable organization" is one in which no part of the net earnings inures or may lawfully inure to the benefit of any private shareholder or individual and that provides year-round services benefiting the general welfare of the residents of the municipalities. (B) For the purposes of this section, "nonprofit civic organization" means a civic organization exempt from taxation pursuant to 501(c)(4) or (c)(6) of the Internal Revenue Code of 1954 (26 U.S.C. 501(c)(4), (c)(6)), which operates primarily for the purpose of bringing about civic betterments and social improvements through efforts to maintain and increase employment opportunities in the municipality by promoting industry, trade, commerce, tourism and recreation by inducing manufacturing, industrial, governmental, educational, financial, service, commercial, recreational, and agricultural enterprises to locate in or remain in the municipality. The statement of public policy set forth in Acts 1955, ch. 209, 3 is hereby incorporated into and made a part of this section, and it is hereby determined and declared that appropriations authorized by this section are needed to relieve the emergency created by the continuing migration from Tennessee and its municipalities of a large number of its citizens in order to find employment elsewhere, and to enable the municipalities of the state to assist nonprofit organizations in furthering the economic development, social welfare, and common good of its residents. (b) The comptroller of the treasury shall devise standard procedures to assist a municipality in the disposition of funds that are appropriated under this section. Each legislative body of a municipality shall devise guidelines directing for what purpose the appropriated money may be spent. These guidelines shall provide generally that any funds appropriated shall be used to promote the general welfare of the residents of the municipality. Any funds appropriated under this section shall be used and expended under the direction and control of the legislative body of a municipality in conjunction with the guidelines and procedures of the comptroller of the treasury. (c) Any nonprofit organization that desires financial assistance from a municipality shall file with the city clerk a copy of an annual report of its business affairs and transactions, which includes, but is not limited to, a copy of an annual audit, a description of the program that serves the residents of the municipality and the proposed use of the municipal assistance. Such report will be open for public inspection during regular business hours of the city clerk's office. (d) Appropriations to nonprofit organizations other than charitable organizations may be made only once notices have been published in a newspaper of general circulation in the municipality of the intent to make an appropriation to a nonprofit, but not charitable, organization specifying the intended amount of the appropriation and the purposes for which the appropriation will be spent. Page 1

2. Purpose The City of Clarksville may provide, on a limited basis, annual budgetary support to qualified nonprofit charitable organizations or non-profit civic organizations serving the residents of Clarksville. The City seeks to fund a variety of projects or programs that promote the general welfare of the residents within the city limits with an emphasis on projects or programs that provide unduplicated services by other agencies in the area. 3. Eligibility Applicants must be a 501(c)(3), 501(c)(4), or 501(c)(6) with documentation provided from the Internal Revenue Service. All non-profit charitable organizations or non-profit civic organizations as defined in TCA 6-54-111(2)(A) and (B) must specifically serve Clarksville to be eligible for City funding. Agencies that serve on a national or state level are welcome to apply but must clearly demonstrate the benefit to Clarksville in order to be considered for funding. Agencies must provide year-round services benefitting the general welfare of the residents of Clarksville. Nonprofits employing City employees or elected officials, or having City employees or elected officials voluntarily serving as board members or in other unpaid management roles are prohibited from receiving City funding (see Section 7 Conflict of Interest). EXCEPTION: If the City employee or elected official serving as a board member or in other unpaid management roles was appointed by City ordinance or other legal requirements, the agency would be eligible to apply. If the City employee or elected official serving voluntarily as a board member or other unpaid management roles agrees to resign their position prior to the agency receiving City funding, the agency would be eligible to apply. 4. Application Requirements Eligible agencies must provide a complete application packet by the due date set by the City each fiscal year in order to be considered for funding. Applications may be submitted electronically, via mail or hand delivered. Late or incomplete application packets will not be reviewed or considered for funding regardless of past funding history under this program. A complete application packet consists of: 1. Completed application using the required City format. This includes the required application cover sheet, budget sheet and budget narrative, project/program narratives and signature by the authorized representative. Additional attachments are allowed but should be kept to a minimum. 2. List of board members and all executive and management employees; any City employee or elected official serving in any capacity must also be identified on this list and their role within the agency defined and if they have decision-making responsibilities. Identify if any City employee or elected official was appointed by City ordinance or other legal requirement to maintain eligibility. If a City employee or elected official serving voluntarily as a board member or other unpaid management role agrees to resign their position prior to receiving City funding, the agency must attach a letter signed by the City employee or elected official stating they will resign their position no later than June 30 of the current year. 3. Letter from the Internal Revenue Service recognizing the organization as holding taxexempt status: 501(c)(3), 501(c)(4), or 501(c)(6). 4. IRS Form 990 from prior year. Small non-profits with annual receipts of $50,000 or less may submit IRS Form 990-N (e-postcard). 5. A copy of the prior year s annual financial audit*, or in lieu of an audit report an annual report of the agency s business affairs and financial statements. The annual report should include an overview of the agency s finances, including a breakdown of revenues and expenses, all sources of income, and any changes over the past year (such as investments Page 2

in infrastructure or the sale of assets). Financial statements include a Statement of Financial Position, Statement of Activities, Statement of Functional Expenses, Statement of Cash Flows and any Notes to Financial Statements. * Agencies with annual revenue over $500,000 must provide a financial audit for the previous year and memorandum on internal controls (management letter). If there are findings in the audit, the agency must provide management letters from the three previous audits (4 letters total). Example: Agency submits financial audit for FY2016 with management letter. There is a finding in FY2016. Agency must also submit management letters from FY2013, FY2014 and FY2015 audits. 5. Duplication of Funding/Supplanting Agencies are not allowed to request funding from multiple sources for the same purpose. For example, the agency requests funds from the City of Clarksville s Housing and Community Development Department s CDBG grant program for the same program expenses being requested in the City s Non-Profit Grant Program, this would be considered duplication of funding and is not allowed. Exceptions will be considered by the City on a case by case basis. Supplanting involves City grant funds taking the place of existing funds budgeted for that purpose. Existing funds for a project or program may not be displaced by City funds and reallocated for other organizational expenses. Example: A program coordinator working with clients to aid in rent, utility and job assistance is paid from local sources. The agency receives new grant funds from the City for salaries for a program coordinator to facilitate aid to clients in rent, utility and job assistance. This would be supplanting and is not allowed. However, supplementing is allowed. This means using City grant funds to build upon or add to existing funding. An example would be the program coordinator is funded for 20 hours a week under a local source, City grant funding would fund another 20 hours a week to bring the program coordinator s total hours a week to 40, thereby doubling the service to the clients. 6. Reporting Requirements Agencies receiving City funding are required to submit to the City on a quarterly basis a report that explains how City funds were spent and how they benefitted the community within 45 days of the end of the quarter. Reports are due to the City as shown below, due dates that fall on a non-business day are due on the first business day following the due date. Quarter 1: July 1 through September 30 due November 14 Quarter 2: October 1 through December 31 due February 14 Quarter 3: January 1 through March 31 due May 15 Quarter 4: April 1 through June 30 due August 14 Agencies must complete the required quarterly report form provided by the City and attach all required back-up documentation. Back-up documentation includes copies of relevant invoices and proof of payment by the agency. Salaries are to be documented by payroll reports or something similar to show days/hours worked that were paid by City grant funding. Agencies are required to attach to each quarterly report an updated list of board members and all executive and management employees; any City employee or elected official serving in any capacity must also be identified on this list and their role within the agency defined and if they have decision-making responsibilities. The City will review the quarterly report and back-up documentation to determine the timeframe of expenses falls within the quarter being reported, the expense activities match the approved scope of work, amount reported meets the Page 3

minimum of quarterly grant funds received, all calculations are correct and the signature is by the authorized person. The executive head of the agency is the only authorized person to sign quarterly reports. The executive head of the agency may provide in writing to the City authorization for another individual to sign quarterly reports. If an agency did not expend any City funding during the quarter reported, a written explanation of why must be submitted to the City by the quarterly report due date. The City reserves the right to request additional back-up documentation if clarification is required to ensure grant funds were actually spent and in accordance to the approved scope of work. All quarterly reports and supporting documentation become public record once received by the City, agencies should redact any personal, identifying information such as names of clients, social security numbers, account numbers, etc. Failure to submit quarterly reports timely shall delay receipt of City funding. 7. Conflict of Interest Non-profit agencies are required to disclose any City employee or elected official associated with their agency in any capacity, stating their name and role they play in the non-profit agency. This rule applies during the application process and after being awarded funding and continues until the award year is completed. Non-profits employing City employees or elected officials, or having City employees or elected officials serving as board members or in other unpaid management roles are prohibited from receiving City funding. EXCEPTION: If the City employee or elected official serving as a board member or in other unpaid management roles was appointed by City ordinance or other legal requirements, the agency would be eligible to apply. If the City employee or elected official serving voluntarily as a board member or other unpaid management roles agrees to resign their position prior to the agency receiving City funding, the agency would be eligible to apply. Non-profit organizations are required to submit with their application for funding a list of board members and management employees and certify whether or not city employees, as defined by the City Code of Ethics, Sec. 1-601, hold any management roles within the non-profit organization. Failure to disclose this information will immediately terminate any current funding and disqualify the agency from future City funding, including from other City funding programs. Clarksville, Tennessee - Code of Ordinances/ Title 1 Administration, Officers, and Personnel/ Chapter 6 Code of Ethics, Sections 1-601, 1-602(2), and 1-605(a) Sec. 1-601. - Applicability. Employees, in the context of this chapter, includes all full time and part time elected or appointed officials and employees, whether compensated or not, including those of any separate board, council, commission, committee, authority, corporation, or other instrumentality appointed or created by the city Sec. 1-602. - Employee responsibilities. Each employee shall avoid any action, whether or not specifically prohibited by statute, regulation, or this chapter, which might result in or create the appearance of: (2) Giving preferential treatment to any person or organization; Sec. 1-605. - Financial interests. (a) Except as hereinafter provided, no employee shall enter into or derive any benefit, directly or indirectly, from any contractual arrangement with the city or any of its agencies. Page 4

8. Additional Requirements By accepting City funding, the Agency agrees to the following: a. Funding may be withheld at the discretion of the City of Clarksville s Finance Department until all requirements are met and kept current. b. If awarded funding by the City of Clarksville, the organization agrees to allow access to financial records during the funding period. c. The organization agrees that funds requested will only be used for the purposes stated and approved in the application. d. The City shall determine funding distribution to be either monthly, quarterly, annually. In cases where a lump sum is appropriate, the agency must request a lump sum payment in writing explaining the reason. e. Any change in proposed use of funds during the funding year must be submitted to City in writing for approval prior to use. f. Organizations receiving $50,000 or more of funding from the City are required to follow the City's purchasing policy including but not limited to bids and quotes for any purchases made with City provided funds. g. Organizations receiving any audit findings shall disclose these findings with their annual funding request. At the discretion of the CFO for the City, funding may be withheld until a satisfactory plan to address the findings has been received. h. The City has the right to deny funding through this application process if the organization receives funding from another City entity. Mailing Information Contact Person City of Clarksville Debbie Smith, Grants Analyst Attn: Non-Profit Grant Program Email: Debbie.Smith@cityofclarksville.com Finance Department, 3 rd Floor Phone: (931) 648-6113 One Public Square Clarksville, TN 37040 Page 5