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Committee recommends Black Hands Universal for CBDO designation despite governance questions
Summary
The Get Together Urban Renewal Agencies Neighborhood Investments Committee voted unanimously to recommend Black Hands Universal for Community-Based Development Organization designation, while staff and committee members noted governance and financial-record questions to be addressed in follow-up.
The Get Together Urban Renewal Agencies Neighborhood Investments Committee on Feb. 14 voted to recommend Black Hands Universal for designation as a Community-Based Development Organization (CBDO), a status that can allow groups to access certain Community Development Block Grant (CDBG) funds beyond the 15% cap for public service awards.
Staff told the committee that the organization met the technical tests required for CBDO designation but noted issues in the application, including unclear disclosures about some program participants and questions about board composition and financial transparency. Those concerns prompted committee members to ask follow-up questions before the committee finalized its recommendation.
The CBDO designation matters because it can make some groups eligible for additional CDBG funding streams and exempt certain public-service grants from the 15% cap on that category. Staff said Black Hands Universal previously received a small award: the committee recommended $6,600 in the prior funding cycle for the group’s career and resource services program.
Committee members raised three recurring concerns during discussion: whether a board member had a potential financial relationship that should be disclosed or resolved; Black Hands Universal’s current corporate tax status and whether it is pursuing 501(c)(3) recognition; and the lack of a publicly filed Form 990 (the annual IRS informational return) that would normally provide transparency for nonprofit finances.
A staff member said Black Hands Universal indicated it filed quarterly taxes this tax period and had not filed in a prior year, which could be consistent with a low-income threshold but limits outside reviewers’ ability to assess the organization’s finances. Committee members recommended that staff follow up to confirm whether the organization is pursuing 501(c)(3) status, whether the potential board conflict has been addressed, and whether the group can provide additional financial documentation for monitoring and contracting purposes.
Committee members repeatedly emphasized that meeting the minimum CBDO thresholds does not require 501(c)(3) status and noted the committee could add contract provisions to improve oversight where needed. One member said private foundations frequently require 501(c)(3) status and that achieving that status could broaden the group’s fundraising options.
Action taken: the committee voted to recommend Black Hands Universal for CBDO designation. Staff will request clarifying documentation on tax filings, any potential conflicts of interest involving board members, and other financial controls as part of contract negotiations and monitoring.
Next steps: staff will update the committee on any additional information provided by the organization and include recommended contract conditions where appropriate.
