NOTE; Organizations engaged in "economic development" activities come under special scrutiny. CLICK HERE to read an article on this topic (it includes a summary of the relevant IRS Revenue Rulings and guidance on what is acceptable to the IRS and what is not).
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Attachment to IRS Form 1023

XXXXXXXXXXXX, Inc.
EIN: 22222222222
Part IV. Narrative Description of Your Activities

PROPOSED ACTIVITIES

The Applicant shall provide one-on-one technical assistance to small and disadvantaged minority owned businesses operating in neighborhoods that suffer from high unemployment, population decline, business failures and urban decay. The assistance will be provided without charge. A special emphasis will be placed on helping small disadvantaged business to participate in assistance programs of federal, state, and local government. The Applicant's program will include the following.

• Help with writing business plans
• Help with loan applications
• Help in obtaining licenses
• Help in setting up basic accounting systems
• Help in accessing financing
• Help with creating marketing plans
• Help in accessing contract opportunities
• On going problem solving help that might be needed during the life of business with things such as legal issues, accounting, and access to markets.

Upon obtaining adequate funding the Applicant will retain the services of an experienced full time coordinator who will directly provide assistance and who will recruit experienced volunteers to serve as mentors to the program's participants. The goal is to help the participant businesses to become more competitive and expand thus creating job opportunities for low income residents.

To be eligible for assistance the businesses must meet the following three criteria:

• It must operate in one of the low income target areas that have been designated by the City of Miami and Miami Dade County as part of their participation in the federal Community Development Block Grant program. To receive such designation by local government such a target area must be blighted and economically depressed.


• It must be small and disadvantaged as those terms are defined by the SBA and it must be at least 51% minority owned (meaning African American, Asian American, Hispanic American, or Native American).


• It must commit to create or preserve jobs for the unemployed and underemployed residents of the targeted communities.

CONCLUSION

The above described activities further the Applicant's charitable purposes. The regulations governing exemption eligibility for organizations described under section 501(c)(3) of the IRS Code are found at 26 CFR 1.501(c)(3)-1. The term "charitable" is defined in section 1.501(c)(3)-1(d)(2) to include "relief of the poor and distressed or of the underprivileged", "lessening neighborhood tensions", and "combating community deterioration". The Applicant's activities further such purposes

In Revenue Ruling. 74-587, 1974-2 C.B. 162, the IRS held that an organization that devoted its resources to programs to stimulate economic development in economically depressed, high-density, urban areas, inhabited mainly by low-income minority or other disadvantaged groups, qualified for exemption under IRC 501(c)(3).