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Friday, July 20, 2012

RESPONSE TO MY BLOG POST: GRANTS FOR ASSISTANCE - An Overview (dated July 11, 2012)

In my BLOG post dated July 11, 2012, the following questions were asked:

(i) Area B residents should no longer be tax for Grants for Assistance and groups should be encouraged to apply for funds through the Quesnel Community Foundation; or

(ii) The Director of Area B should continue with the traditional Grants-for-Assistance program and develop a Grants for Assistance program specific for Area B.

What follows are some resident answers.

While both the CRD Grants for Assistance funds and funds available through the Quesnel Community Foundation [QCF]  are available to worthy community groups, I believe that funds available through the CRD Grants for Assistance Program represent a  completely separate and “different” type of  funding from those funds that are available through the Quesnel Community Foundation….The CRD funds come from taxes and as you stated in your email….for 2012, the residential tax rate for Grants for Assistance was $5.96 / $100,000.00. This resulted in $ 37,598.00 being donated to QCF from Area B alone.  The funds collected and administered by the Quesnel Community Foundation are donations that come from the general public, either individuals or community groups, clubs and organizations.  People wish to make donations for a whole host of reasons, not the least of which is to gain some income tax relief.

The CRD Grants for Assistance Program exists to provide support/incentive/leverage funding for community groups, to support them in various initiatives/projects that [hopefully] would have some benefit for not only the specific group receiving the funding but also for the citizens of the broader community….in this case it would be the citizens of CRD’s Area B.  Other jurisdictions have similar Grants for Assistance or Grant In Aid Programs. Unless it has been discontinued, I believe that the City of Quesnel has a similar program, although I seem to remember reading that the City of Quesnel has also donated funds to the QCF.  Various community businesses also offer “Grant in Aid” programs, one example is the program offered by the Integris Credit Union.  Further, from time-to-time the provincial government will create “special”  grant programs in support of various provincial celebrations, such as the Direct Access grant program that was established to support the 2008, BC150 celebrations.  There are also lottery funds that are available  to specific community groups…..this is essentially “government” money.

The Quesnel Community Foundation is just one of several similar Community Foundations that exist in communities throughout the province.  Community Foundations are philanthropic organizations, I believe that officially they are registered charitable organizations regulated by the Registrar of Societies.  The “grandaddy” of all of B.C.’s Community Foundations is the Vancouver Foundation.  I believe that there is some kind of formal link between all of the provincial Community Foundations, and that they share common terms of reference and operating procedures, maybe even a common Constitution and Bylaws????  I do know that the Vancouver Foundation was instrumental in establishing the Quesnel Community Foundation and that they donated a significant amount of seed money at the time the QCF was established.

There is one significant difference between how CRD and QCF funds are awarded/distributed.  In order to be eligible to receive QCF funds, the recipient [group or organization] must be what is called a “registered donee” which means that they must be a registered charity.  To become a registered charity, a group/organization must meet the criteria set out by the Federal government.  Not every group that would benefit from CRD Grants for Assistance funding would be eligible to receive charitable status, this would include many sports, minor sports, recreation and even some arts groups.  In short, if CRD funds are given to the QCF to be administered, some groups in the CRD will definitely be excluded.  The only way to get around this would be for the group applying for the Grant for Assistance to ally themselves with another group that is a Registered Donee.    An example of such a group could be School District 28.  This would mean that there would be a third party involved in the granting process…it can get quite complicated.

When the CRD was distributing Grants for Assistance, there was a detailed and comprehensive Application Completion Guide available for any group wishing to apply for funds.  This guide is six pages long and I won’t go into any detail right now, but it is a step-by-step guide to completing the application form.  It explains that the Applications for Assistance Program falls under Section 176[1][c] of the Local Government Act and that all applicants must be “non profit societies or agencies”, which is not the same as being a registered charity.

It is my belief that the CRD simply got tired of the work involved in screening all of the applications that came in under the Grants for Assistance program and they were looking for some way to off load the work while still maintaining the actual Grants for Assistance Program [for which they are collecting taxes].  By offloading the responsibilities to the QCF, they have fundamentally changed the Grants for Assistance Program as indicated above.

However there are also two additional points that must also be considered.  The QCF policy is to only distribute the interest on the money that they have invested.  There have been years when their investments did not accrue any interest at all.  Unless there is some kind of special arrangement between the QCF and the CRD, the money that is “given” to the QCF each year by the CRD does not represent the actual amount that will be distributed to applicants for grants….only the accrued interest from that money will be donated. 

Having stated that, it is true that the QCF will arrange that any grant monies can be awarded as part of a designated fund…for example it would be possible to have the QCF establish a “CRD - Area ‘B’ Designated Fund”,  and it could be specified that only residents/charitable groups from within Area B could apply for that grant money.  But the money awarded annually would only be the interest that was gained over the past year on the money that had been designated for that particular fund…which would not be the same as, and would probably be far less than, the principal amount that had been donated to the QCF by the CRD each year.  It would take many years for the fund to grow before the accrued interest would equal the amount of the annual CRD grant.

Both The Quesnel Community Foundation awards program and the CRD Grants for Assistance Program are excellent and both are good for our community…..but they are different and in actual fact I believe that we do need both of them and not some convoluted hybrid  just so that there might be less work for the CRD.

So having said all of this, I come out in favour of your second option…..

(ii) The Director of Area B should continue with the traditional Grants-for-Assistance program and develop a Grants for Assistance program specific for Area B.

But this will be a lot of work, I actually believe that the CRD should revisit their decision and that they should resume the role that they once held in terms of administering their own Grants for Assistance program.



















Wednesday, July 11, 2012

GRANTS FOR ASSISTANCE - An Overview


In the 2013 budget process, each Director will have to decide whether they wish to have Grants-for-Assistance available.  With the 2011 and 2012 donation to the Quesnel Community Foundation, there has been discussion at Northern Caucus (Areas A, B, C and I) meetings of Directors not continuing with the Grants-for-Assistance program.  As such, the question needs to be asked of Area B residents:

(i)                 Area B residents should no longer be tax for Grants for Assistance and groups should be encouraged to apply for funds through the Quesnel Community Foundation; or

(ii)               The Director of Area B should continue with the traditional Grants-for-Assistance program and develop a Grants for Assistance program specific for Area B.

I am asking that Area B residents give these questions some thought and read through this BLOG posting to better understand what Grants for Assistance are and how they fit into the budget process.  These grants are Electoral Area generated; as such, they are YOUR money!



For additional information on the Application process to access Quesnel Community Foundation funds, please refer to www.quesnelfoundation.ca 



I also completed a detailed BLOG posting on February 25, 2012 titled “CRD Electoral Areas A, B, C & I Donate to the Quesnel Foundation for 2011 & 2012”




Comments and /or questions can be emailed to me at hdixon-warren@cariboord.bc.ca or posted here on this blog.

 What follows is some information on the Grants for Assistance Program and how it fits into the budgeting process of the Cariboo Regional District.

 Overview
Each year, Electoral Area Directors have the option of making Grants for Assistance available to their electorate.  These grants are dispersed under Section 176 (1)(c) of the Local Government Act which states that the corporate powers of a board includes “to provide assistance for the purpose of benefiting the community or any aspect of the community”.  The manner in which Grants for Assistance are distributed within the Cariboo Regional District is as per a CRD Policy which has been adopted by the CRD Board.  For 2012, this policy is currently being revised and updated.

The provision of Grants for Assistance in an Electoral Area are at the discretion of the Area Director although (i) all grants must be approved by the CRD Board and (ii)  the maximum amount that can be taxed is limited to a specific amount per thousand of assessment for the Electoral Area.  The Table below is based upon the CRD Budget for 2012.   It is hoped that additional information will be collected so that the table can be fully complete.


Table 1:           2012 Grant for Assistance Allocation by Electoral Area for the CRD.

Electoral Area
Area Description
Grants for Assistance Allocation in 2012 Budget
Residential Rate / $100,000
Electoral Area Population
(2011 Census)
A
Red Bluff – Quesnel South
47,646.00
5.96
6,250
B
Quesnel West-Bouchie Lake – North to Strathnaver
37,598.00
5.96
4,006
C
Bowron Lake – Barlow Creek
7,535.00
5.96
1,225
D
Commodore Heights – McLeese Lake


2,988
E
South Lakeside – Dog Creek


4,129
F
Horsefly – Likely – 150 Mile House


4,564
G
Lac La Hache – 108 Mile Ranch
22,650.00

4,955
H
Canim Lake – Forest Grove
15,724.00
$4.50
1,569
I
Narcosli – Nazko – West Fraser
7,221.00

1,511
J
West Chilcotin


600
K
East Chilcotin


494
L
Lone Butte – Interlakes
25,525.00
$2.04
4177





A,B,C, I
North Cariboo
$100,000


D,E, F
Flat Rate




Notes:

(i)                  As per the CRD Grants for Assistance Policy, the Electoral Area Grants for Assistance are capped based on each EA’s assessment and not to exceed the amount that would be obtained by a tax of $0.10 / $1,000.00 on the net taxable value of land and improvements in each electoral area.   This differs from the residential tax rate which is based on provincial formulas.  It refers only to the tax rate paid for residential.

(ii)                For 2011 and 2012, the Directors of Electoral Areas A, B, C and I chose to donate $100,000 collectively per year to the Quesnel Community Foundation rather than dispersing funds to the Electoral Areas through the Grants for Assistance process.  

(iii)             Electoral Area Population results based on Census 2011
http://www12.statcan.gc.ca/census-recensement/2011/dp-pd/prof/search-recherche/frm_res.cfm?Lang=E&TABID=1&G=1&Geo1=PR&Code1=10&Geo2=0&Code2=0&SearchType=Begins&SearchText=cariboo&PR=01


Traditionally, the 4 Northern Directors (Areas A, B, C & I) have pooled their Grant for Assistance funds.  CRD Grants for Assistance were last dispersed in the North Cariboo in 2010.  In this year, the 4 Northern Directors collectively dispersed $19,317.00 in Grants for Assistance.  These funds were allocated as following:

 Table 2: 2010 Grants for Assistance Dispersements for the North Cariboo (Areas A, B, C & I).
Recipient
Grants-for-Assistance (EA A, B, C & I)
Quesnel Pipes & Drums
3,000.00
Quesnel Agricultural & Exhibition Association
2,500.00
Quesnel & District Heritage Association
1817.00
Quesnel Women’s Resource Centre
2,500.00
Quesnel & District Seniors Society
3,000.00
Cariboo Cowgirls Drill Team Society
2,000.00
Billy Barker Days Society
2,500.00
Quesnel Rodeo Club
2,000.00
TOTAL
19,317.00


 


Table 3: Grant for Assistance Dispersements by Electoral Area for 2010, 2011 and 2012.

Electoral Area
2010
2011
2012
A
9,124.00
47,175.00
47,646.00
B
7,407.00
38,175.00
37,598.00
C
1,405.00
7507.00
7,535.00
I
1,381.00
7,142.00
7,221.00
Total Dispersed
19,317.00
100,000.00
100,000.00

Note: In 2011 and 2012, $100,000 was donated to Quesnel Community Foundation and placed into 4 separate endowment funds.  Each year, the QCF will be granting the interest associated with each of these funds to charitable organisations who submit an application and have a project which is eligible to receive the funds.


Table 4:  Quesnel Community Foundation 2012 Grant Details for Electoral Area Endowment Funds

Electoral Area
Recipient
Amount
A
Parkland Community Association
$2500.00
B
Bouchie Lake Recreation Commission
$2000.00
C
Quesnel and District Hospice Palliative Care Society
$2500.00
I
Island Mountain Arts
$5000.00
TOTAL
$12,000.00

http://www.quesnelfoundation.ca