Interagency Q&A .12(t) – 5: Will an institution receive consideration for charitable contributions as “qualified investments”?

Compliance > Regulation BB - CRA
Q:  § __.12(t) – 5: Will an institution receive consideration for charitable contributions as “qualified investments”?
 
A:  Yes, provided they have as their primary purpose community development as defined in the regulations.  A charitable contribution, whether in cash or an in-kind contribution of property, is included in the term “grant.”  A qualified investment is not disqualified because an institution receives favorable treatment for it (for example, as a tax deduction or credit) under the Internal Revenue Code.
 
 
 
This Interagency Q&A, and others, was released in July 2016.  The 2016 Q&As consolidates and supersedes all previously published “Interagency Questions and Answers Regarding Community Reinvestment,” and were noted as being effective immediately.  They may be found here:  http://www.ffiec.gov/cra/qnadoc.htm
 

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