Board members reported that paperwork to form a 501(c)(3) nonprofit to support downtown initiatives has been submitted to the federal government and that the district is awaiting IRS determination.

“All paperwork’s been submitted with the feds. We’re just waiting on the 501(c)(3) approval,” the chair said during the July 29 meeting. Board members said they had not received any requests for clarification from the IRS — which they interpreted as a positive sign — but they did not give a firm approval date. “So I’m hopeful that by August we’ll be reporting that that has been fully formed and is in good standing as a 501(c)(3),” the chair said.

Board members described the primary benefits they expect if the nonprofit is approved: the ability to accept tax-deductible donations from individuals and companies to buy capital equipment or pay for programs that assessments alone might not cover. As an example, one board member said a street-washing machine could cost roughly $25,000 and that donors could give toward such equipment even if they are not property owners. “This will allow them to donate to downtown whether or not they’re property owners,” a board member said, adding that donations would allow supplemental purchases beyond assessment-funded services.

The board discussed using nonprofit fundraising to supplement contract services, capital purchases and other activities downtown. No formal vote took place on nonprofit governance or on appointing nonprofit officers at the July 29 meeting; board members said they would report back when the IRS determination arrives.