Community Development Donations

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.

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.

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

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.

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.