What if a non-profit board is composed of members from a particular denomination only? Would it still qualify for a Community Facilities grant or loan?
The regulations covering Community Facilities grants and loans require that a nonprofit organization demonstrate significant ties to the local community in order to ensure that the facility financed will carry out a public purpose. The fact that all board members of a particular faith-based organization may be required to be of the same faith would not preclude an organization from meeting this requirement. For examples of how the ‘community ties’ requirement can be met, see Rural Development’s February 2004 Administrative Notice titled, “Guidance for Determining Eligibility of Faith-Based and Community Organizations for Community Facilities Financing” (PDF). Back to the top If members of the organization must all be of one faith, how does that organization meet the requirement in the February 2004 Administrative Notice that “membership is open to all adults in the local rural community?” “Membership is open to all adults in the local rural community” is referencing the pool of potenti
