CRA qualified investment?

Posted By: Love those Regs

CRA qualified investment? - 08/30/06 06:42 PM

Would a donation/scholarship to a pre-school for the blind designated for a low- or moderate-income family qualify for CRA investment credit? I think my hang up here is that is it a pre-school versus a college or higher education. However, those terms are not in the regulation (that I have found) when describing investments of a community development nature. What it does say is "CD also includes community or tribal-based child care, educational, health or social services targeted to LMI..."
Posted By: Bullseye

Re: CRA qualified investment? - 08/30/06 07:30 PM

Your donation is still benefiting and targeting the education of a low or moderate income individual so IMO, it would count.
Posted By: CRAatBOK

Re: CRA qualified investment? - 08/30/06 10:36 PM

I sure would count it.
Posted By: Len S

Re: CRA qualified investment? - 08/31/06 01:24 PM

Any donation that funds a community service that benefits low or moderate income people would potentially qualify for community development under CRA. Just make sure you have the documentation to substantiate the use of proceeds and the LMI beneficiaries.
Posted By: Don_Narup

Re: CRA qualified investment? - 08/31/06 02:28 PM

Community Investments includes "Facilities that promote community development IN low and moderate income areas FOR low and moderate income individuals.

As long as you can show that the person receiving the scholarship qualifies as an LMI individual then IMO it would be OK for CRA credit.

What you have to be careful of is there is a difference between being needy and being an LMI individual. So the scholarship should spell out the income level a person has to be at in order to be an LMI individual in your area.

That should cover you for CRA qualification purposes.