Youth Opportunities Program

1. Youth Opportunities Program Missouri Department of Economic Development Business & Community Services Application Workshop

2. Purpose Statement To broaden and strengthen opportunities for positive development and participation in community life for youth (21 years old and under), and to discourage such persons from engaging in criminal and violent behavior.

3. How does it work? • Approved projects solicit donations from the community. • Donors receive a 50% or 30% of their qualified donation in tax credits which are applied directly to their state tax liability. • Incentive to encourage donors to support a project for start up costs, capital costs or operating costs, while redirecting their tax dollars back into the community.

4. Eligible Applicants • Non-profit organizations & corporations • Local Government • Missouri businesses • Schools* • Faith-based organizations*

5. Eligible Applicants Continued Schools* • The project must address a specific identified need in the community that qualifies under one of the eligible YOP categories • The project must be an activity outside of normal (core) school curriculum • Costs outlined in the YOP project budget cannot reflect those costs associated with normal school curriculum

6. Eligible Applicants Continued Religious Agencies* • Must address a specific need in the community that qualifies under an eligible YOP category • One church or person cannot have the authority to appoint more than half the Board of Directors. • Services must be rendered to youth without discrimination. • Clients must not be required to participate in religious services, education or activities.

7. Adopt-A-School Degree Completion Internship/Apprenticeship Youth Club or Association Mentor and Role Model Substance Abuse Prevention Violence Prevention Youth Activity Center Conflict Resolution Employment Counseling Eligible Project Categories

8. Ineligible Project Activities • Public Improvements (streets, sewers, curbs) • Feasibility Studies • Primary Health Care Programs/Facilities • Direct Grants to Private Businesses • Fund Raising Promotions/Events • Debt Retirement • Research and development projects • Monuments and memorials • Long-term residential care costs associated with room & board • Endowment funds • Purchasing charters

9. Submitting an Application • YOP operates on a calendar year • Credit allocations begin January 1, 2008 • $6 million allocated for YOP tax credits annually • No Deadline for applications • Reviewed on a first received, first reviewed basis • Applications not initially approved will have 1 opportunity to resubmit

10. Submitting an Application • DED actively seeks proposals • for specific, defined projects with clear start and end dates vs. general programming • with YOP funds focused on direct care and direct program expenses vs. general overhead and administrative costs

11. Submitting an Application Proposals are scored for: • Need for the services being offered • Targeted customers • Clear and concise project outcomes • Clear and concise performance targets

12. Submitting an Application Proposals are scored for (cont): • Milestones - logical sequence and time frame • Identification of key individuals and partners • Organizations’ financial capacity to complete the project • Future sustainability

13. Construction, Renovation, & Acquisition Requirements • 12 or 24 month fund-raising period • Site Control Documentation • Illustrate a growing need additional space or demonstrate hazards of the present facility • Phase I Environmental Assessment is required on all real estate contributed for/purchased with YOP credits. Note: refer to YOP application and instructions for additional requirements.

14. Construction, Renovation, and Acquisition Requirements Continued… • Building must be used primarily for direct service, not administration. • The cost for constructing, acquiring, and/or renovating property (up to $500,000) can be raised with YOP funds if 100% of the space will be used to carry out programming and activities as agreed upon with DED. • If any portion of the building will be rented or leased on a permanent basis, you must pro-rate those costs from your budget. Note: refer to YOP application and instructions for additional requirements.

15. Services/Activities • These are the services your program conducts for the targeted youth. • Describe the key features of the program and advantages over other similar programs. • Illustrate the growing need for your program. • Establish “real” vs perceived need • Determine the number of youth served, where they are located, and why they are at-risk. • Why do these youth want the services?

16. Outcomes • Outcomes are the broad, general goals of the program. • Outcomes relate to the change in knowledge, skills, attitudes, behaviors, condition, etc. of the youth. • Outcomes must clearly relate to the services provided by the organization.

17. YOP Outcome Examples • Increase # of youth receiving high school diploma or GED • Increase # of youth remaining in school • Reduce # of youth committing crimes/violent acts • Decrease # of female teens that become pregnant • Increase # of youth completing alcohol/drug awareness programs & abstain from alcohol & drug use.

18. Performance Targets • Number (not percent) of targeted customers that will achieve outcomes • At least one performance target for each outcome • For multiple targets, do not double count customers • Why were the target numbers chosen? • For construction projects, list the target numbers for those receiving services after construction is complete.

19. Performance Targets Examples • Outcome - Increase the number of at-risk youth remaining in school and earning course credit(s) toward their diploma. Performance Target - 84 of 100 youth participating in tutoring will increase their grades in the subjects studied. • Outcome - Reduce the number of at-risk youth committing crimes and violent acts. Performance Target - 150 of 200 youth participating in after school and weekend recreational activities will not be involved in any fights or commit any crimes.

20. Performance Target Verification • These are the informational tools used to track and verify success in reaching the outcomes and targets. • Include how often the evaluation takes place and who is responsible for collecting the data. • Each performance target must have a verification tool.

21. Verification Examples • Performance Target - 84 of 100 youth participating in tutoring will increase their grades in the subjects studied. Verification -Quarterly Grade Reports collected by the Program Administrator. • Performance Target – 150 of 200 youth participating in after school and weekend recreational activities will not be involved in any fights or commit any crimes. Verification – School referrals and police records at the end of each semester by the Program Administrator.

22. Milestones • The essential steps the youth must complete to successfully reach the targets. • They are based on the participants’ efforts and activities. • To establish: • List each step that must occur in order for the project to achieve the targets listed. • Determine level of participation required for each step. • Include timeline of start and end dates for each step. (Broken down quarterly)

23. Construction Milestones Example

24. Programming Milestones Example

25. Past Projects Describe 2 projects • Past YOP projects or other similar projects • What were the outcomes of these projects? How did your organization affect these outcomes? • Were you successful in meeting performance targets and fundraising goals? If not, what did you learn from this experience?

26. Key Individuals • The people with the most responsibility for making the project successful and connecting to youth. • Energy – Does this person demonstrate the ability to generate enthusiasm for the project among youth, staff, and the community? Can they engage youth and keep them engaged in the project? • Capacity – The level of skill and knowledge each key individual has in their position. • Commitment - Do the key individuals have a personal stake in the program? Do they have a commitment to stay with the project?

27. Fundraising Plan • Overall plan • Who is involved with fundraising? • Identify marketing targets • Fundraising milestones

28. YOP Budget • Organizations may request funding for capital and/or operational costs. • Budget is designed by the applicant based upon project needs. • Budget must be tied directly to the project activities and outcomes. • Donations may only be accepted for items included in the approved budget. • Maximum budget is $500,000, $250,000 in tax credits

29. Budget Explanation • Explain each line item and how each relates/contributes to the project and its outcomes • Justification • Other sources of funding - Include pending applications - Include amounts/expenses these monies will pay

30. Sustaining the project • Discuss in detail how your project will continue to function after the YOP fundraising period is complete. • How would the project continue without any future support from YOP? • Discuss funding diversification

31. Attachments A—Current Members of the Board, Council, or Commission B—Letters of Support • 1 Local Government Endorsement • 3 General Letters C—Site Control Document • Needed for proposals with property acquisition, construction and renovation D—Map(s) of Project Area and Location • Should clearly show the boundaries your organization serves. • Should show the specific location of your headquarters and where specific project activities will take place.

32. If Approved… • Quarterly reports are required for the duration of the fundraising period. • A final report must be submitted within 6 months after the fundraising period ends. • An independent audit is required if the organization utilizes $25,000 or more in tax credits.

33. If Approved Continued… Record Keeping • YOP participating organizations must maintain a record of the amount of tax credits sold. • All monies accepted through YOP must be placed in an insured Missouri bank account. • Funds raised through YOP must be tracked separately from other organizational funds. • Verification of in-kind donations must be maintained. • YOP organizations must maintain all program records for a period of five years, available to DED/YOP upon request.

34. If Approved (continued)… • Changes to the approved project must be submitted in writing for consideration. - Budget Amendments - Project Extensions - Performance Targets

35. If Approved (continued)… DED can recapture tax credits if: • At mid-point of the fundraising period the agency cannot show evidence that the remaining credits will be utilized. • The agency is unable to complete the YOP project as agreed upon with DED. • The agency fails to comply with the provisions of the agreement.

36. Contributions • Eligible Contributors - Individuals, Corporations, and Businesses with Missouri income tax liability. • Percentage of Tax Credits 50% - Monetary contribution, as well as stocks and bonds contributions 30% - Property contributions including materials, supplies, equipment and real estate. 50% - Wages paid to an intern or apprentice participating in an approved employment, internship, or apprenticeship project in business or trades for persons less than twenty years of age.

37. Eligible Contributors

38. Eligible Contributors Cont.

39. Restrictions on Contributions • Contributions must be made directly to the administering organization. • Donations must be made during the fundraising period. • Contributions of labor or professional services do not qualify for YOP tax credits. • Non-cash contributions qualify only if the contributed goods are needed specifically to carry out project activities covered by the YOP agreement and are included in the approved budget. Note: See YOP application and instructions booklet for additional restrictions.

40. Tax Credit Application Process • Tax Credit Application Form • Donor fills out top part of form, signs & notarizes • Project Director fills out the second section • Mail to YOP • Certification • Claim on tax return • Sent directly to donor and Dept. of Revenue

41. YOP Contact Information • Address: Youth Opportunities Program MO Department of Economic Development P.O. Box 118, 301 W. High St. Rm 770 Jefferson City, MO 65102 • Phone: (573) 751-4539 • Fax: (573) 522-4322 • Email: YOP@ded.mo.gov • Website: http://www.ded.mo.gov/cd/YOP.htm • Staff: Brenda Horstman, Manager Kim Baughman, Application Reviewer Peggy Robinson, Tax Credit Processing