GREENFIELD — As an organization that gets 10 to 20 percent of its funding from donations, Franklin County Community Development Corporation just got some great news.
Tuesday, the Baker-Polito Administration announced $5.9 million in tax credit allocations were awarded to nonprofit organizations focused on community development.
Franklin County CDC was awarded $150,000 through the state program, the Community Investment Tax Credit (CITC).
“We are very excited about this. It’s our fourth year receiving it,” said John Waite, Franklin County CDC’s executive director.
The CITC program was started in 2015 to encourage private citizens or organizations to donate money to Community Development Corporations (CDCs) — legally defined as nonprofit organizations focused on local community projects like building affordable housing and creating economic opportunities.
“We are proud to work with these organizations to ensure all Massachusetts residents have access to affordable housing and safe neighborhoods,” said Gov. Charlie Baker.
The program allocates awardable tax credits to the CDCs, and when the CDC receives a donation, it awards a tax credit equal to half of the donation to the donor.
In other words, Franklin County CDC’s $150,000 in awardable tax credits cover $300,000 in donations; if someone donates $100 to Franklin County CDC, they can deduct $50 from their state taxes this year.
“Over the years some of our donors who used to give $100 or $200 now give $1,000,” Waite said.
Last year, Franklin County CDC used its CITC tax credits to help fund the building of its 2,800-square-foot cold storage facility. The project cost around $800,000, and Waite said the tax credits were crucial in getting funding — $100,000 of the construction was funded by donations.
This year, Waite said Franklin County CDC applied to CITC in order to pay off the rest of the costs from the cold storage facility build, and to fund workshops for low- and middle-income entrepreneurs and business owners.
“Last year we worked with 332 entrepreneurs and small businesses,” Waite said. “Not a lot of people who come to us can afford to hire a consultant.”
Franklin County CDC helps entrepreneurs and business owners with general business planning and finding business locations, and also provides loans and marketing advice.
Franklin County CDC was one of 48 organizations across the state to receive tax credit allocations through the CITC program. Since 2015, more than $22 million in allocations have been awarded through the program, generating over $34.5 million in donations to the CDCs.