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#2225184 - 11/06/19 04:00 PM Community Development Donations
Luv2run Offline
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Joined: Jan 2015
Posts: 437
Are employee fundraisers considered at all for Community Development Donations? Our employees conduct one or two a year, with the next one be for a local veterans home. They are collected items needed such as clothing, personal items etc.
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#2225432 - 11/12/19 02:49 PM Re: Community Development Donations Luv2run
Pale Rider Offline
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Joined: Aug 2002
Posts: 34,314
under the Lone Star
Are they doing it on company time, and as a rep of the bank, not personally? This falls more in line with a service activity, not a donation.
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#2225456 - 11/12/19 06:20 PM Re: Community Development Donations Luv2run
Len S Offline
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Joined: Oct 2004
Posts: 1,786
Connecticut
If the employees are on company time and are raising funds or goods for LMI beneficiaries you should be able to claim credit for a CD activity but you have to show the primary beneficiaries were LMI persons
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#2226083 - 11/21/19 03:51 PM Re: Community Development Donations Luv2run
Tennismom Offline
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Tennismom
Joined: Jan 2004
Posts: 762
Len S - As Luv2Run first described this activity, wouldn't this be similar to swinging a hammer for Habitat For Humanity? It wouldn't count, as there is no provision of financial services.

The way you presented in your second post is different as you mention raising funds. Just didn't want there to be any confusion.

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#2226187 - 11/22/19 04:48 PM Re: Community Development Donations Luv2run
Len S Offline
Diamond Poster
Joined: Oct 2004
Posts: 1,786
Connecticut
If they are raising money ("fundraiser") for a qualified community organization or activity it would qualify as CD for CRA purposes. If they are providing a "service" as bank employees it must be financial in nature or related to the expertise of the employee. My understanding of the question was the employees were gathering money and/or goods to be donated to a potentially qualified entity. Of course, the fact that the beneficiaries are vets, doesn't necessarily qualify unless you can show they are primarily low- or moderate-income people. When in reasonable doubt, claim the credit because you will never get credit for something you don't claim.
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