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(Murfreesboro) Murfreesboro City Council voted Thursday (February 8, 2024) to approve Community Investment Trust funding for eligible charities for fiscal year 2025. The $364,950 is the amount distributable under the 2025 trust agreement and will be distributed to 29 charities.
The Board’s approval follows the Community Investment Trust (CIT) Board’s approval on January 24, based on approval of recommended funds from the Contributions Committee on January 23. The trust agreement provides that the committee will make a recommendation to the board by Feb. 15.th Every year. The committee worked on his three-month process to review and approve funding allocations after the application period ends on October 31, 2023.
“I’m very excited to see the benefits of the city’s decision to sell its power business and the efforts to develop the community investment trust come to fruition,” said Mayor Shane McFarland. “On behalf of the City Council, I would like to thank the members of the Board and Endowment Committee for their dedication to this initiative that will benefit our community.”
“It has been an honor to serve on the Endowment Committee,” said Chairman Carl D. Kennedy. Mr Montgomery: “Using a highly objective grant-raising process that scores and reviews charities and their projects, we funded 66 per cent of applicants. We are on the rise and look forward to funding even more nonprofits in our community.”
After receiving applications for review for a total of $1,257,000 by October 31, 2023, each Endowment Committee member will utilize Foundant Technologies, a cloud-based grant-making software package, to review each application. The participants were carefully screened and scored. City Council-approved funds for eligible charitable beneficiaries, including youth, seniors, housing, health care, and education services, are available on the City of Murfreesboro website https://www.murfreesborotn.gov/2562/Community-Grant-Application Available from.
An annual distribution of 5 percent of the Trust value less fees and expenses is distributed by the Board each fiscal year. The Board is authorized to distribute 15 percent of annual distributions to eligible beneficiaries as charitable contributions. The trust’s assets for charitable giving totaled $364,950 in fiscal years 24-25.
The trust agreement provides for a limit on the recommendation of funds to a single eligible beneficiary not to exceed a maximum of 25% of the available funds. Certain types of charity are also restricted by quotas, as follows:
- Education and youth services not to exceed 20% ($72,880) of available funds.
- Community safety and victim services less than 15% ($54,743)
- 10% ($36,495) or less for health-related services
September 26, 2023 The Murfreesboro Commission on Endowments of the Murfreesboro Community Investment Trust invites eligible philanthropic applicants to apply for fiscal year 2024-25 charitable grant funds on October 31, 2023 We urge you to submit your application by this date. Grant Application Process https://www.murfreesborotn.gov/CommunityGrantApplication Activities requesting funds must occur between July 1, 2024 and June 30, 2025.
Applications were reviewed and scored by committee members with experience in philanthropy and civic engagement. Funding recommendations were then provided to the Community Investment Trust (CIT) Board of Directors. For review and approval. Guidelines including eligibility, use of funds, and ineligible expenses were also published.
The Murfreesboro Community Investment Trust was created in 2021 from the proceeds of the sale of the Murfreesboro Power Authority, a city-owned utility, to the Middle Tennessee Electric Cooperative. The purpose of the trust is set out in the trust agreement as follows:
- To support projects and programs of the City or other non-profit agencies that benefit the City’s residents, improve or enhance the quality of life of the City’s residents, or support civic or other public improvements; .
- To promote and promote the social welfare of the city’s residents.
- To promote and support educational and recreational programs, facilities, and opportunities within the City.
- To fund public works within or benefiting the city.and
- To promote the general welfare of the city and its residents
The contributing committee members are: Carl D. Montgomery, Chairman, John A. Hinkle Jr., Lin Lian, Lyle Lynch, Wade Hayes, Ronnie Martin, and Collier Andres Smith.
history:
The City Council, pursuant to the authority of the City Charter, as amended, established the Endowments Committee on February 2, 2023, to approve Ordinance 23-O-06 within the Community Investment Trust Structure. Under the city charter, the board has the authority to manage proceeds from the sale of the city’s electric distribution system “in the best long-term interest of the citizens.”
Under the Trust’s regulations, an Endowment Committee has been established as the decision-making body to review and recommend grants. Proceeds from the sale of the city’s electric utilities are being used to establish a fund with annual awards for support. eligible Charitable activities that benefit Murfreesboro residents and the community.
The city sold its electric distribution system operations and assets to Middle Tennessee Electric Membership Corporation (MTEMC) for $245 million, with $43 million to be paid at closing and $1,729 to be paid in annual interest-bearing installments over 15 years. $134,000 was paid, bringing the total amount to approximately $302.4 million.
The City Council will determine a portion of the initial $43 million payment, with incremental payments held by the city until 2029 and earmarked for the city’s general fund for critical road and park projects.
The City Council decided that the proceeds from the sale of the power sector should provide long-term benefits to the city’s residents through prudent investment over the long term. To create a trust agreement to manage non-tax income, the city asks the Tennessee General Assembly to amend the Private Law Charter to allow the city to establish a board of directors with the Murfreesboro Community Investment Trust did. The board is comprised of seven individuals with appropriate financial investment experience to manage the Murfreesboro Community Investment Trust. It will proceed based on the “long-term best interests of the people.”
Community Investment Trust Board held its first meeting on January 24, 2023 and continues to hold monthly meetings. The Trust Agreement and City Council also established a separate committee on endowments.. The City Council, pursuant to the authority of the City Charter, as amended, established the Endowments Committee on February 2, 2023, to approve Ordinance 23-O-06 within the Community Investment Trust Structure.
The Murfreesboro Community Investment Trust Endowment Committee met for the first time on February 28, 2023 to begin the process of creating the investment trust. Recommendations Regarding the Trust’s annual charitable contributions to charities to the Board.
The city has traditionally funded charities through its general fund, but the City Council voted to give that role to the board based on recommendations from the Endowments Committee. Fiscal year 2023-24 was the last fiscal year for charities to be funded through the General Fund Schedule. In FY24-25, funding requests from nonprofit organizations were directed to a new online application process through the Community Investment Trust based on recommendations from the Contributions Committee.
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