The State of South Dakota recently announced that $40 million will be made available to Small Nonprofits that are seeing a large reduction in Cash Flow. If you’re a South Dakota church, AND your Net Operating Income is down, you should apply. This sounds like a great deal because there seem to be no strings attached (e.g. PPP Loan forgiveness).
They are talking about Net Operating Income so you’re going to have to exclude all the donor-restricted gifts and expenses (capital campaigns, mission of the month, memorials/bequests, youth fundraisers). Here’s the basic formula:
- Net Operating Income (income – expenses) for March – August of 2019
- LESS Net Operating Income from March – August of 2020
- LESS PPP Loan Amount or similar Federal assistance
- EQUALS Eligible Amount. Divide this amount by the Net Operating income from the first bullet. It should be more than 25%.
Even if it is not more than 25%, you are still encouraged to apply as leftover grant money will go to this second tier of nonprofits. Watch the video below for how to apply:
Useful Links
- Link to Apply: https://covid.sd.gov/
- Grant FAQ: https://covid.sd.gov/docs/SmallBusinessFAQs.pdf
- Nonprofit Grant Overview: https://covid.sd.gov/docs/SD_CARES_SmallNonProfitCOVID.pdf
- Secretary of State Business Search: https://sosenterprise.sd.gov/BusinessServices/Business/FilingSearch.aspx
Just a few follow up comments:
1)Good Standing: After you do the Sec of State Search and click on your church, there is a button near the top right that says “Printer Friendly Version”. This will suffice and save you $20.
2)The Articles of Incorporation are on that same page usually at the bottom in the History section. Click on the link next to Initial Filing.