New Markets Tax Credits for Nonprofit Organizations

The New Markets Tax Credits (NMTC) program has become a key financing tool for economic development and neighborhood revitalization, enabling organizations to bring low-cost sources of capital into distressed communities. Nonprofit organizations are uniquely situated to take advantage of the NMTC program to fund their business and real estate development. As such, NTMCs have been used by nonprofit organizations as diverse as hospitals, charter schools, health centers, theaters, municipalities and community development corporations. This live audio conference will introduce nonprofit organizations to the NMTC program beginning with a brief overview of the program requirements and typical transaction structures. We will explore what types of businesses/projects will qualify for NMTCs and how to find an allocation of NMTCs from a community development entity. In addition, we will focus on issues specific to nonprofit organizations, including discussions of the risks and rewards of using the NMTC program for a nonprofit, educating a board of directors about the NMTC program, and combining the NMTC program with other grants and capital sources. Throughout the program we will include recent real world examples of nonprofit organizations that have used NMTCs to meet their capital needs and create significant community and economic impact in distressed areas.