Here's the thing - if a loan IS reportable as small business, then you cannot report or count it as Community Development.
Normally, a loan to a non-profit organization is NOT reportable as a small business loan UNLESS the loan is secured by commercial real estate and the amount is $1Million or less, in which case, since it would be reported on Line 1e of your Call Report it meets the definition of a small business loan and thus is not reportable as Community Development.
If a loan is not reportable as a small business loan, and it is not a HMDA reportable loan secured by 1-4 family, THEN the loan MIGHT be eligible to report as Community Development IF it meets one of the CD tests.
NOTE - you can have a loan that is as CD as CD can get BUT if it's also reportable as Small Business or it's 1-4 family HMDA reportable, you DON'T get to count it as CD.
So you have a loan to a non-profit that is NOT reportable as Small Business and therefore POTENTIALLY reportable as Community Development - now you need to really look at the purpose of the loan - to purchase a used van.
What will the van be used for? Will it provide transportation to low/mod residents to get to medical appointments, child care and other community services? Will it be used to deliver food to needy families? Or will it be used for the church youth group to go to church camp with no particular emphasis placed on low-mod needs?
I'm picturing myself at a carnival standing at a carny booth filled with empty bottles sitting in a tray and I'm trying to throw a ball to land in one of the bottles.
Another Princess Romeo self-musing down the dark corridors of regulatory compliance:
The ball is my CD loan, and the bottle is CD recognition by an examiner. Almost impossible to do, but after spending a boat-load of money, I wind up with a huge stuffed animal as my prize which I then have to carry around with me for the rest of the carnival, and a few years after it collects dust around the house, it goes in the next yard sale.
Does that sum up the current experience of a CRA exam?