First Nations Development Institute Announces Grant Program for
§7871 Organizations
Released
on: October 17, 2008, 5:20 am
Press
Release Author: First
Nations Development Institute
Industry:
Non Profit
Press
Release Summary: First Nations Development Institute (First Nations)
is encouraging §7871 organizations to apply to be a part
of a new grant program and research initiative. Grants of $5,000
to $10,000 will be given to §7871 organizations selected
to participate in the study
Press
Release Body: First Nations Development Institute Announces
Grant Program for §7871 Organizations
First
Nations Development Institute (First Nations) is encouraging
§7871 organizations to apply to be a part of a new grant
program and research initiative. Grants of $5,000 to $10,000 will
be given to §7871 organizations selected to participate in
the study.
Generally,
private foundations and public charities fall under section 501(c)(3)
of the Internal Revenue Code. For Tribal Governments, however,
the Indian Tribal Governmental Tax Status Act of 1982 supported
Indian nations in establishing, regulating and controlling philanthropic
activities within their communities under the leadership of the
Tribal Government. This act, codified as the Internal Revenue
Code (IRC) §7871, allows tribes to create programs (including
community development programs and grant making foundations) that
can be controlled and regulated by the tribe but also can receive
donations that are tax deductible for the donor (and meet the
qualifying distribution test for mainstream foundations).
Establishing tax-exempt Tribal Governmental organizations under
IRC §7871 allows Tribes to maintain a greater degree of sovereignty
than they would under the more ubiquitous 501(c)(3) designation.
Even the United States Supreme Court has held that Indian nations
possess a status higher than States. Thus, the more traditional
501(c)(3) designation unfairly subjects Indian nations (and their
political subdivisions) to the oversight of States’ Attorney
General Offices, where jurisdiction over “expressly public
and charitable purposes” is generally housed. First
Nations will work with the selected §7871 organizations to
gather data for a report targeted at educating and informing foundations,
corporations with charitable giving programs, and the philanthropic
community about §7871 organizations. Additionally, the report
will provide critical information for tribes and tribal communities
to assist them with developing new or supporting existing §7871
organizations.
Ҥ7871
organizations are largely misunderstood by mainstream funders
and the general public,” stated Michael E.
Roberts, President of First Nations Development Institute.
“This lack of understanding and acceptance greatly reduces
the ability of tribes to raise critically needed funding.”
Roberts says the program was created to educate the philanthropic
sector about §7871 organizations in an effort to ensure tribes
creating 7871 organizations retain their rights and guard their
sovereignty when trying to access funding and compete on the same
level playing field as their mainstream nonprofit and philanthropic
counterparts. “Additionally, this important study will
also yield information to help support tribes that have existing
§7871 organizations or those considering creating new §7871
organizations in an effort to expand philanthropy in tribal communities,”
says Roberts.
“We hope to learn more about §7871 organizations
and the different forms they take,” stated Sarah
Echohawk Vermillion, Vice President of First Nations Development
Institute. “The purpose of the research that
comes out of this grant making program is to generate data about
§7871 organizations, their institutional structures and programmatic
areas, and to highlight benefits and methods of giving to §7871
organizations.”
Interested
§7871 organizations should go to www.firstnations.org
to download instructions and complete a short application. The
deadline for applying is 5:00 p.m. (MST) November 21, 2008.
For
more information about this project, contact Sarah Dewees, Director
of Research / sdewees@firstnations.org; or visit First Nations
Development Institute’s website at www.firstnations.org.
###
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Site: http://www.firstnations.org
Contact
Details: 703 3rd Ave, Suite B
Longmont, CO 80501
Media Contact: Sarah Echohawk Vermillion, Vice President
Phone: 303-774-7836
Fax: 303-774-7841
e-mail: svermillion@firstnations.org
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