Native American Agriculture Fast Track Fund (NAAFTF) Letter of Inquiry (LOI) Technical Assistance Webinar June 1, 2016

Transcription

1 Native American Agriculture Fast Track Fund (NAAFTF) Letter of Inquiry (LOI) Technical Assistance Webinar June 1, 2016

2 NAAFTF: Introduction of Principals Introduction Lead Class Counsel: Cohen Milstein Sellers & Toll PLLC Grants Coordinator: Echo Hawk Consulting, Design and administer NAAFTF grants process and technical assistance Advisory Committee: six individuals with experience and expertise in the fields of Native American farming, ranching and philanthropy. The Advisory Committee will review LOIs and grant applications and make recommendations to Class Counsel. Court: On April 20, 2016, the U.S. District Court for the District of Columbia approved a modification to the Keepseagle settlement agreement, which included a process for the distribution of funds to cy pres beneficiaries. All NAAFTF awards are subject to Court approval. The Court s order is open to appeal through June 20, If an appeal is filed, the June 24 LOI deadline will still be followed; further action will depend on if the court grants a stay or not.

3 NAAFTF: Overview Keepseagle v. Vilsack Settlement Suit filed in 1999 on behalf of Native American farmers and ranchers for discrimination by USDA in the farm loan program. Following completion of the claims process and payment of all successful claims, approximately $380 million remains. A further payment of $21,275 will be made to each prevailing claimant. About $265 million will be used to establish the Native American Agriculture Fund (NAAF), expected to be operating in 1-2 years. $38 million for immediate distribution, we call the Native American Agriculture Fast Track Fund (NAAFTF), to ensure that funds are put to use for the benefit of Native American farmers and ranchers as quickly as possible. NAAFTF is separate from NAAF. Awards will range in size depending on an applicant s budget, focus and scope. NAAFTF will consider as well applications from intermediary applicants having existing, relevant grant programs which can be expanded through awards.

4 NAAFTF: Timeline Key Dates May 25-June 24, 2016 Phase 1: Letter of Inquiry (LOI). Applicants will be asked to submit an LOI Application that includes documentation of eligibility as well as a short summary of the project proposal, requested award amount, organizational budget and budget of program(s) serving Native farmers and ranchers. Applicants are requested to submit only one LOI. If more than one LOI is submitted, only the first LOI submitted will be considered. Eligibility and alignment with the intent of NAAFTF to benefit Native farmers and ranchers are key considerations. The deadline for LOI applications is June 24, 2016 at 4pm PDT/5pm MDT/6pm CDT/7pm EDT. June 25-July 27, 2016: Advisory Committee and Class Counsel LOI application review. July 28, 2016: Invitations to submit full proposals and letters declining opportunity for full proposal will be issued July 28, 2016.

5 NAAFTF: Timeline Key Dates July 28-September 4, 2016 Phase 2: Full Proposal. Only organizations receiving a formal invitation will be eligible to submit a full proposal for consideration of a grant award from the NAAFTF. The deadline for full proposal submission is September 4, 2016 at 4pm PDT/5pm MDT/6pm CDT/7pm EDT. September 5-October 9, 2016 Full Proposal Review. The Advisory Committee will review applications and make recommendations to class counsel. October 17, 2016 Submission of Recommendations to the Court. Class Counsel will submit recommendations on grant awards to the Court. Disbursement of Grant Awards. The Court will decide whether to approve the awards by mid-december in the absence of any appeal.

6 NAAFTF: Eligibility MANDATORY-NO EXCEPTIONS 1) To be eligible, an applicant must document that it provided business assistance, agricultural education, technical support or advocacy services to Native American farmers or ranchers between January 1, 1981, and November 1, 2010; 2) Is based in the United States; and 3) Is one of the following: 501(c)(3) tax-exempt organization 7871 designation as a non-profit organization chartered under the tribal law of a state or federally recognized tribe An educational institution described in 170(b)(1)(A)(ii) An instrumentality of a state or federally recognized tribe, designated under 7701(a)(40)

7 NAAFTF: Not Eligible The following applicants/uses of funds are NOT eligible: Entities that did not provide business assistance, agricultural education, technical support, or advocacy services to Native American farmers or ranchers between January 1, 1981 and November 1, Projects that do not provide assistance designed to further Native American farming and/or ranching activities, and/or do not ultimately assist individual Native American farmers and/or ranchers. Projects that assist individual Native farmers and ranchers but the services are not agriculture-related. Use of funds that are not restricted exclusively to charitable and educational purposes described in Section 170(c)(2)(B) of the Code. Use of funds for emergency funding, such as for addressing natural disasters. Use of funding for litigation (although other legal services are permitted to receive funding). Use of funding for political activity or lobbying as defined by the IRS, which is influencing legislation (although other forms of advocacy may seek funding). Applicants using a fiscal agent.

8 NAAFTF: Allowable Uses of Funds NAAFTF funds will be a one-time distribution of $38,000,000 total between all grantees. Applicants receiving funds will be required to use the funds to provide services to Native American farmers and/or ranchers, including those seeking to become farmers or ranchers, to support and promote their continued engagement in agriculture. Agriculture Definition: NAAFTF defines agricultural activities to include all activities which involve cultivation, raising, or harvesting of plants or animals whether for food or other products. This includes, for example, not only raising crops or animals, but also fishing and foraging. It includes raising agricultural products used for purposes other than food (e.g., wool, cotton, wood). Funding for specific, eligible programs may be requested to support activities for a maximum of 24 months (2 years). Funds may be used for project support, endowment, scholarships, re-grants and/or capital expenditures. A single application may include a mix of funds requested for project support, endowment, scholarships, re-granting and capital expenditures. Funding for projects will be given higher priority than endowments and capital expenses because of the relatively low amount of the award pool.

9 NAAFTF: Allowable Uses of Funds Budget: What is the maximum that can be requested? There is no formal minimum or maximum request amount set. However, bear in mind that requests should be commensurate with organization size and capacity to manage funds. Tipping Point: When an organization has qualified as a public charity, it can lose that status and revert to being a private foundation if it receives too large an award from a single source. NAAFTF and Class Counsel cannot provide you any advice as to whether your organization would be at risk of tipping from a public charity to a private foundation as a result of receiving an award from NAAFTF. We wanted to alert applicants to this issue and urge that they seek legal guidance and take it into account in determining the size of the award they apply for. NAAFTF is not responsible for any consequences to an organization of having their application funded, including tipping any public charities to private foundations. Learn more online about Tipping Point considerations and how to calculate this from an informational document on our website.

10 NAAFTF: Allowable Uses of Funds Budget: Indirect Costs Costs usually allocated indirectly: Utilities; Rent; Audit; Legal (non-litigation); Administrative staff; and Equipment rental. Approved Indirect Cost Rates: Projects: Up to 15% allowed on project expenses; Re-granting and Scholarships: Up to 3% allowed on funds requested for re-granting or scholarships; and Endowment: No indirect allowed on funds requested for endowment.

11 NAAFTF: Factors for Awards Factors that will be considered in assessing requests for awards: The scope and nature of services previously provided to Native American farmers or ranchers. The scope and nature of the services you plan to provide to Native American farmers or ranchers with award funds. How your requested award amount fits within the overall budget of your organization. How your work integrates community accountability and Native leadership. Steps you will take to ensure the funds will be used for the purposes stated in the award proposal. Whether your organization is based in the Native community and serving Native farmers or ranchers; or whether, if your organization is not Native-led, you have a dedicated Native program. Whether your organization has a strong set of leaders and board members who represent and are accountable to the community that is served.

12 NAAFTF: Mandatory Documentation 1) Eligible Applicant Tax Status Formal documentation of entity s tax status or other basis for eligibility 2) Resolution: Model resolution available for download in LOI application An applicant will need to submit a mandatory copy of a resolution from its governing body (e.g. Board of Directors, Board of Trustees or Tribal Council depending on applicant type). The resolution must state: Brief description of business assistance, agricultural education, technical support or advocacy services the applicant provided to Native American farmers or ranchers between January 1, 1981, and November 1, Applicant will apply for an award of funds from the Keepseagle cy pres fund, the Native American Agriculture Fast Track Fund. Should the applicant receive an award, it will be used solely for purposes which meet the following three requirements: (a) the purpose provides assistance designed to further Native American farming or ranching activities; (b) the purpose is what was set forth in the application for funds; and (c) the purpose is encompassed by Section 170(c)(2)(B) of the Internal Revenue Code. Should the award to the applicant be for an endowment, income generated from said endowment will be used in perpetuity for purposes meeting the same three criteria. Should the applicant receive an award, the funds will be used as additional funds for the purposes stated in the application; no existing funds will be diverted away from that program if the applied for funds are received.

13 NAAFTF: Online LOI Process Overview: Aaron Spevacek, Foundant Technologies LOI Application Registration Overview Key Considerations in Online LOI Process Mandatory Documents: Uploading Documents Character Limits Saving Work Submission Online LOI application status

14 NAAFTF: Q & A Submit questions via the Questions box. We will do our best to answer all questions in the time allotted. Additional resources will be provided following the Q & A session for those that are not able to have their questions answered today.

15 NAAFTF: TA & Key Links Technical assistance (TA) and questions: A dedicated address and telephone hotline have been established to provide technical assistance: Dedicated phone: (877) The phone line is open Monday to Friday, 1-3pm CDT; you can leave a message at other times. keepseaglefasttrack@echohawkconsulting.com Download key documents: Frequently Asked Questions Tipping Point Conflict of Interest Policy Apply with link at: Deadline for LOI Application: June 24, 2016 at 4pm PDT/5pm MDT/6pm CDT/7pm EDT. Webinar: Will be available online by June 2, 2016 at NAAFTF website.

16 NAAFTF Thank you for your participation in today s webinar!