Source: http://www.law.cornell.edu/uscode/text/42/9907
Timestamp: 2014-04-18 08:33:34
Document Index: 673686830

Matched Legal Cases: ['§ 9907', '§ 9907', '§ 9907', '§ 675', '§ 201', '§ 678']

42 U.S. Code § 9907 - Uses of funds | LII / Legal Information Institute
U.S. Code › Title 42 › Chapter 106 › § 9907 42 U.S. Code § 9907 - Uses of funds
Grants to eligible entities and other organizations (1)
In general Not less than 90 percent of the funds made available to a State under section 9905 or 9906 of this title shall be used by the State to make grants for the purposes described in section 9901 of this title to eligible entities.
Obligational authority Funds distributed to eligible entities through grants made in accordance with paragraph (1) for a fiscal year shall be available for obligation during that fiscal year and the succeeding fiscal year, subject to paragraph (3).
Recapture and redistribution of unobligated funds (A)
Amount Beginning on October 1, 2000, a State may recapture and redistribute funds distributed to an eligible entity through a grant made under paragraph (1) that are unobligated at the end of a fiscal year if such unobligated funds exceed 20 percent of the amount so distributed to such eligible entity for such fiscal year.
Redistribution In redistributing funds recaptured in accordance with this paragraph, States shall redistribute such funds to an eligible entity, or require the original recipient of the funds to redistribute the funds to a private, nonprofit organization, located within the community served by the original recipient of the funds, for activities consistent with the purposes of this chapter.
Statewide activities (1)
Use of remainder If a State uses less than 100 percent of the grant or allotment received under section 9905 or 9906 of this title to make grants under subsection (a) of this section, the State shall use the remainder of the grant or allotment under section 9905 or 9906 of this title (subject to paragraph (2)) for activities that may include—
providing training and technical assistance to those entities in need of such training and assistance;
coordinating State-operated programs and services, and at the option of the State, locally-operated programs and services, targeted to low-income children and families with services provided by eligible entities and other organizations funded under this chapter, including detailing appropriate employees of State or local agencies to entities funded under this chapter, to ensure increased access to services provided by such State or local agencies;
supporting statewide coordination and communication among eligible entities;
analyzing the distribution of funds made available under this chapter within the State to determine if such funds have been targeted to the areas of greatest need;
supporting asset-building programs for low-income individuals, such as programs supporting individual development accounts;
supporting innovative programs and activities conducted by community action agencies or other neighborhood-based organizations to eliminate poverty, promote self-sufficiency, and promote community revitalization;
supporting State charity tax credits as described in subsection (c) of this section; and
supporting other activities, consistent with the purposes of this chapter.
Administrative cap No State may spend more than the greater of $55,000, or 5 percent, of the grant received under section 9905 of this title or State allotment received under section 9906 of this title for administrative expenses, including monitoring activities. Funds to be spent for such expenses shall be taken from the portion of the grant under section 9905 of this title or State allotment that remains after the State makes grants to eligible entities under subsection (a) of this section. The cost of activities conducted under paragraph (1)(A) shall not be considered to be administrative expenses. The startup cost and cost of administrative activities conducted under subsection (c) of this section shall be considered to be administrative expenses.
Charity tax credit (1)
In general Subject to paragraph (2), if there is in effect under State law a charity tax credit, the State may use for any purpose the amount of the allotment that is available for expenditure under subsection (b) of this section.
Limit The aggregate amount a State may use under paragraph (1) during a fiscal year shall not exceed 100 percent of the revenue loss of the State during the fiscal year that is attributable to the charity tax credit, as determined by the Secretary of the Treasury without regard to any such revenue loss occurring before January 1, 1999.
Definitions and rules In this subsection:
Charity tax credit The term “charity tax credit” means a nonrefundable credit against State income tax (or, in the case of a State that does not impose an income tax, a comparable benefit) that is allowable for contributions, in cash or in kind, to qualified charities.
Qualified charity (i)
The term “qualified charity” means any organization—
(c)(3) of title 26 and exempt from tax under section 501(a) of such title;
an eligible entity; or
a public housing agency as defined in section 1437a
that is certified by the appropriate State authority as meeting the requirements of clauses (iii) and (iv); and
if such organization is otherwise required to file a return under section 6033 of such title, that elects to treat the information required to be furnished by clause (v) as being specified in section 6033(b) of such title.
Certain contributions to collection organizations treated as contributions to qualified charity
The term “collection organization” means an organization described in section 501(c)(3) of such title and exempt from tax under section 501(a) of such title—
that solicits and collects gifts and grants that, by agreement, are distributed to qualified charities;
that distributes to qualified charities at least 90 percent of the gifts and grants the organization receives that are designated for such qualified charities; and
that meets the requirements of clause (vi).
Charity must primarily assist poor individuals
No recordkeeping in certain cases
Food aid and homeless shelters
donations of food or meals; or
temporary shelter to homeless individuals;
Minimum expense requirement
Poverty program expense
The term “poverty program expense” means any expense in providing direct services referred to in clause (iii).
Such term shall not include any management or general expense, any expense for the purpose of influencing legislation (as defined in section 4911
(d) of title 26), any expense for the purpose of fundraising, any expense for a legal service provided on behalf of any individual referred to in clause (iii), any expense for providing tuition assistance relating to compulsory school attendance, and any expense that consists of a payment to an affiliate of the organization.
the percentages determined by dividing the following categories of the organization’s expenses for the year by the total expenses of the organization for the year: expenses for direct services, management expenses, general expenses, fundraising expenses, and payments to affiliates; and
the category or categories (including food, shelter, education, substance abuse prevention or treatment, job training, or other) of services that constitute predominant activities of the organization.
Additional requirements for collection organizations
maintains separate accounting for revenues and expenses; and
makes available to the public information on the administrative and fundraising costs of the organization, and information as to the organizations receiving funds from the organization and the amount of such funds.
Special rule for States requiring tax uniformity
that has a constitutional requirement of tax uniformity; and
that, as of December 31, 1997, imposed a tax on personal income with—
a single flat rate applicable to all earned and unearned income (except insofar as any amount is not taxed pursuant to tax forgiveness provisions); and
no generally available exemptions or deductions to individuals;
Limitation on use of funds for startup and administrative activities Except to the extent provided in subsection (b)(2) of this section, no part of the aggregate amount a State uses under paragraph (1) may be used to pay for the cost of the startup and administrative activities conducted under this subsection.
Prohibition on use of funds for legal services or tuition assistance No part of the aggregate amount a State uses under paragraph (1) may be used to provide legal services or to provide tuition assistance related to compulsory education requirements (not including tuition assistance for tutoring, camps, skills development, or other supplemental services or training).
Prohibition on supplanting funds No part of the aggregate amount a State uses under paragraph (1) may be used to supplant non-Federal funds that would be available, in the absence of Federal funds, to offset a revenue loss of the State attributable to a charity tax credit.
(Pub. L. 97–35, title VI, § 675C, as added Pub. L. 105–285, title II, § 201,Oct. 27, 1998, 112 Stat. 2731.)
A prior section 9907,Pub. L. 97–35, title VI, § 678,Aug. 13, 1981, 95 Stat. 516, related to payments to States, prior to the general amendment of this chapter by Pub. L. 105–285.