MISSION & HISTORY
fREQUENTLY ASKED QUESTIONS
The policy of the Arts & Heritage Fund is to hold donations in a separate, restricted fund.
Any donations received by June 30 will be granted out in the next fiscal year.
Arts & Heritage Fund Grant Eligibility Criteria
- Only EITHER non-profit arts, history, or culture organizations with 501(c)(3) state and federal tax-exempt status OR units of an institution of higher education, 170(b)(1)(a), that have arts, history, or culture as its primary purpose and that provide those services and programs of significant quality and impact for the general public may apply;
- Organizations must have completed two full years of continuous operation (application deadline must be at least two years from the date of 501(c)(3) determination);
- Organization’s activities must be open and accessible to the general public;
- Organization must be located in, serve, and benefit Knox County;
- Organization’s mission must have arts, history, and/or culture as its primary purpose;
- Organization must be led by at least one full-time, reasonably paid professional staff person;
- Organization cannot carry an accumulated deficit of more than 10% of its annual budget;
- Organization must have an active board of directors;
- Organization must have a well-defined annual operating plan and budget and at least a two year strategic or long range plan;
- Organization must have non-discrimination, conflict of interest, and accessibility policies;
- Organization must be active participants in the Penny4Arts initiative;
- Organizations must be in compliance with previous grants and reporting requirements;
- Financial Review Requirements:
- Organizations with budgets up to $149,999 must have a CPA or internal review no more than three years old, which is signed and attested to by the president or treasurer of the board of directors;
- Organizations with budgets between $150,000 and $300,000 must have an independent financial audit, no more than three years old;
- Organizations with budgets of more than $300,000 must follow generally accepted accounting principles and have an independent audit performed annually by a Certified Public Accountant.
Independent Audit: A series of procedures followed by a professional CPA used to test, on a selective basis, transactions and internal controls in effect, all with a view to forming an opinion on the fairness of the organization’s annual financial statements.
Internal Review: An internal review consists of a profit and loss statement for the fiscal year and a letter, signed by three board members (not to include the treasurer), stating that they have reviewed the organization’s financial records. An internal review may also be prepared by a CPA.
Restrictions of Eligibility
Grants will not be made for the following purposes:
To public or private general education K-12 schools;
Equipment or capital improvements;
Purchase of real property;
Reduction of accumulated deficits or debts;
To religious institutions or programs pervasively religious in nature;
To supporting entities like auxiliaries and “friends of” whose primary purpose is to support non-profit organizations or governmental departments, agencies, or initiatives;