Palo Alto County Gaming Development Corporation (PACGDC)

Listed below are commonly asked questions regarding the Palo Alto County Gaming Development Corp. and the grant process. Check back often as we will be adding to this list with the newer FAQs being listed first.

If we are an organization applying for funds through a governmental body (such as a library applying through a city government) how do we complete the cover sheet where it asks for “APPLICANT ORGANIZATION”?

The cover sheet of the application should indicate the name of the eligible institution that is sponsoring the application. For example, if a library is applying through a city government, you would complete the APPLICANT ORGANIZATION as “Local Library.” The SPONSOR would be “City of XYZ.” It is important that all applications be in the name of an eligible organization for IRS purposes. This example cited is just one of many types of organizations that might be sponsored through another eligible institution. The eligible institution must be referenced on the application in all cases.

Can an organization that has 501 (c) status with a numerical classification other than (3) apply for a grant?

No. At this time, the rules of the grant process only allow organizations classified as 501 (c) (3), governmental bodies, and schools to apply. There are some restrictions in the IRS rules and in the Iowa Code that are not entirely clear. This issue will be researched further and will be continue to be considered for future grant cycles.

Will my organization be notified that PACGDC received our application?

No. PACGDC suggests mailing the application using certified mail. The return receipt will provide you with proof of delivery. Your post office can assist you with this or recommend other options.

May I drop off an application to a board member or the PACGDC office?

No. All applications must be sent by mail to our P.O. Box address. Postmarks provide a fair and verifiable way of ensuring applications are on time.

Do funds that have been applied for from organizations other than PACGDC but not yet received count in the matching funds requirement?

It is philosophically important to PACGDC to leverage matching funds. Groups applying for funding that have funds from the work of their local members are viewed most favorably. It is the best way of creating ownership and accountability in any program or project. At the same time, we recognize that some of the matching funds may need to come from other grant sources. These funds can be included in the application on Form B under the column “Funds Available”. Please include a notation following the listing stating that the grant is applied for but has not been received to date. In any such case where PACGDC awards a grant to an organization with these circumstances, the grant agreement with that group will indicate that no PACGDC funds will be released until written verification is received that the other funds will be awarded. This ensures that projects have all the funding needed to proceed.

Do in-kind gifts count in the matching funds requirement?

PACGDC recognizes how vital in-kind gifts are to many organizations. Volunteer work is essential and important. Any organization using in-kind gifts as part of their matching funds must make certain to detail each item and use only fair market values in putting a dollar value on in-kind gifts. In-kind gifts cannot be used for the entire match and will not be viewed as favorably as actual funds raised. These should be listed on Form B under “Funds Available Other”.

Who is eligible to apply for a grant?

Groups must fit into one of three categories to apply. They must be an educational institution, a governmental body, or a non profit organization with 501 (c) (3) recognition from the IRS. Groups supporting these types of organizations can make application through the qualifying organization. For example, a little league program might make an application through a city (governmental body) via the Parks & Recreation program. This is only an example. Many other organizations may be eligible to apply through a qualified organization if that qualified organization is willing to let them do so.

Why are only those groups eligible?

PACGDC has been recognized by the IRS as a 501 (c) (3) organization. In order to maintain that status we must adhere to IRS regulations regarding how charitable funds are distributed.

What if my group is not an educational institution, a governmental body, or a non profit organization with 501 (c) (3) recognition from the IRS?

We suggest you consider partnering with or being sponsored by another group that does meet the criteria. Networks, partnering, and cooperation among community groups is strongly encouraged. We believe this will strengthen the quality of the applications and improve the chances of successful projects.

How do I apply for a grant?

You must apply using the standard grant application form from PACGDC. A downloadable PDF version of the application is available at www.paloaltogaming.org/grants.php or by contacting us at 712-852-4777 or email pacgdc@ncn.net

The application must be completed in its entirety and postmarked by December 31, 2010 to be eligible for consideration.

When are grants going to be awarded?

Grants for the 2010 cycle will be awarded March 5, 2011.

What are the criteria for getting a grant approved?

The criteria for grant selection include the following: positive impact on the community; demonstrated capacity of the applicant to implement the stated objectives; demonstrated networking, cooperation, and partnerships with other entities, organizations and local governments; and evidence of community need.

Does the order in which applications are received have an impact on funding?

No. All applications submitted by the deadline will be considered equally.

Are organizations outside of Palo Alto County eligible for grants?

Generally, no. The state of Iowa has made gaming funds available to all counties through the county foundation process. There is no longer a compelling reason to fund out of county organizations. The exception may be to an organization that is based out of the county but serves residents of the county for the purposes of the grant.

Why do you require matching funds to be eligible?

PACGDC believes that requiring matching funds will help us leverage existing community resources and enable us to fund more projects. This new source of revenue should not replace all existing forms of fundraising that county organizations have been doing successfully for years. This new source of funds should help us leverage these efforts and achieve our mission to strengthen our communities for future generations by creating partnerships, leveraging resources, and being a catalyst in identifying and supporting community needs.

When will the money you have designated for the communities be made available to them? Are there any requirements or limits on that money?

Cities will receive their per capita allocations in March. Cities will have to sign an agreement regarding the use of the funds and file an annual report on how the funds were used. There are some limitations on how funds can be used. No funds can go toward political causes, to individuals, to fund operating expenses or operating deficits, for fundraising expenses, etc. The annual report is a simple one and a half page form with five questions. A copy of city grant agreements and the grant report can be accessed on our website.

Why do school-related grants have to be prioritized by school boards?

This procedure has been put in place to allow local school boards to retain their decision-making authority. Other communities that distribute gaming funds recommended this procedure to us. The prioritization process ensures that the school approves of the projects. The prioritization creates no legal obligation for PACGDC to fund in that order but it is our intent to take into account the school board’s recommendations.

How are grants handled for schools who may serve students who do not live in the county or those that may work with school systems outside of the county?

There is a question on the application form that asks what percentage of the services being proposed in the application will serve residents of the county. Schools systems who serve students outside of the county should report the percentages. This will not disqualify an application.

Is there a requirement for PACGDC to retain a percentage of the funds each year?

No, there is no legal obligation to retain funds. There may be operational reasons to retain some portion of funds. We are anxious to distribute the funds and have the citizens of the county use them to build a stronger future for all of us.

Will PACGDC fund applications that request long term funding over a period of multiple years?

At this time, our organization is too new to make long term financial commitments. We cannot accurately predict future revenues and it would not be prudent to create obligations for the future. Grants made in this cycle will be for a one-year period only. Organizations who anticipate needing money again in the future will need to apply again in the next cycle.

Do cities have to spend their grant funds in one year?

City grant funds may be retained for up to five years. The city must submit a written request to PACGDC with a statement of general purpose for which grant funds will be used. If grant funds are retained, grantee must report to PACGDC on PACGDC’s report format. The report is due and must be postmarked no later than December 31st of each year. If grant funds are not used in the time period specified, all unused funds and interest will be returned to PACGDC.