Let me preface by saying I know nothing about CRA. I'm on a committee organizing a women's career conference. We are looking for money for scholarships for women who may be out of work or can't afford to attend. Would this be something we could approach local banks and suggest that this might be a CRA opportunity? I know some banks set aside money for CRA.

I personally don't like organizations to approach me stating that the donation would be for CRA. Just provide me with the information of who it will help, what the income levels are of the persons affected and what the mission of the organization is. I may ask a few additional questions to determine if I want to contribute.

From what you have written here, I think there is a good chance that donations for scholarships would qualify for a CRA investment.

I'm somewhat with KC on folks who qualify themselves and it always bothers me when people ask for my "CRA Funds" (That's a Wellsfargo kind of thing to have) But....given that you are a banker, I'd look at it differently and not be off put

It does sound like a CRA qualified program I funded a similar program just recently. They agreed to provide the scholarships to individuals who were below 80% area median, and I cut them a check

I'd preface the request with something soft like...we think this might be qualified for CRA Community Development Investment credit because of our requirement that participants be below 80% area median income. Then discuss what the career conference will be providing (I don't fund the ones that provide hair and nail care...I want to see some actual career focus!) and ask your CRA officer if they would mind reading the request for you just to be sure it's softly written.

Thanks for the details. I wasn't sure how it worked. The bank I work for now is small so we don't know much about CRA. Gracias!

Dawnie, are you saying people that do hair and nails are not career focused? Heck, some of them make a lot more than I do considering what they charge me to do my hair.

Of course not silly KC quit teasing me

I threw out a write up that my predecessor had done though on a donation to a fashion conference, which she felt was "CRA CD qualified". It was nothing but fluff and fashion (hair and nails) and had no career path focus in the conference. I always think of this goofy write up when these deals float across my desk

What is this 80% threshhold?

CRA has a focus on Low and Moderate Income people. 80% area median income is the maximum income that someone can make to qualify as "Moderate".

Look at it this way:

If the conference is held in Beverly Hills with a focus on Hollywood Socialites it's focus then is serving "high" income people (above 120% area median income). It would have no CRA value.

If it was held in Hollywood with a focus on waitresses and cleaning ladies career opportunities, it would likely be providing a service to people of "moderate" income, or below 80% area median income.