"An Act relating to contributions from permanent fund dividends to campuses of the University of Alaska, certain educational organizations, community foundations, and certain other charitable organizations that provide a youth development program, workforce development, aid to the arts, or aid and services to the elderly, low-income individuals, individuals in emergency situations, disabled individuals, or individuals with mental illness; and providing for an effective date. "

HB 496 creates a funding mechanism for charitable organizations in Alaska. This bill establishes a check-off on the electronic Permanent Fund Dividend application form that would allow an applicant to donate a portion of their PFD check to an eligible charitable organization, a community foundation, each campus of the University of Alaska, and postsecondary education and vocational training organizations.

To qualify for this program a charitable organization must provide a positive youth development program, workforce development, aid to the arts, or aid and services to the elderly, low-income individuals, or individuals with mental illness.

HB 496 includes further eligibility requirements for charitable organizations to ensure that the organizations fit within the sideboards of the program. To qualify an organization must:

1. Apply for inclusion on the contribution list for the current dividend year before Sept. 1 of the qualifying year.
2. Have been exempt from taxation under 26 U.S.C. 501 (c) (3) for the two calendar years preceding the year the application is filed.
3. Be directed by a voluntary board or local advisory board whose members are all residents of the state.
4. Provide a qualifying service.
5. Receive the lesser of $100,000 or 5 percent of its total annual receipts from contributions.
6. Provide a financial audit for the preceding fiscal year if its annual budget exceeds $250,000.
7. Not make grants or contributions to an organization that is exempt from taxation under 16 U.S.C. 501 (c) (4) or (6).

HB 496 defines a community foundation and stipulates that they may make no more than 10% of their grants to (c) (4) or (6) organizations. This provides community foundations with flexibility in grant making to such organizations as a chamber of commerce and promotes the continued growth of the local community foundations in Alaska.

The program established under HB 496 has a sunset date of 2009. The funding required to enact this pilot program will be provided through an agreement with the Rasmuson Foundation.

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