Frequently Asked Questions

Q. What is Black Hills Vision?

Black Hills Vision is the community investment vehicle formed to raise $3 Million in private sector pledges needed to fund five major economic and community development projects in the six-counties of Butte, Custer, Fall River, Lawrence, Meade, and Pennington in western South Dakota. It is part of an $9.5 Million four-year public/private funding initiative designed to market the Black Hills to potential new business; to create and retain jobs at Ellsworth Air Force Base, assist the development and growth of new businesses in the area, expand air markets for new visitors and provide a solid funding source of housing assistance for low to moderate wage-earners.

Q. With an unemployment rate of 3 percent (or less), why do we need to worry about creating new jobs?

Global economic conditions have a greater impact on local layoffs. When there are no jobs available, workers leave the area and local businesses suffer because of lower revenues. While right now, the area enjoys essentially full employment; any job layoffs create more of a problem because the rate of job growth is slower. Job losses in the mining and timber industries are two examples of how the national and global economy can affect the Black Hills. New jobs provide continuing opportunities for improving the quality of life for all employees plus they allow underemployed personnel an opportunity to fully utilize their talents and skills.

Q. Are pledges tax-deductible?
Generally, yes. However the portion of your investment that is tax deductible and the nature of the deduction is dependent upon why you are making the investment and how you make the investment. For businesses, see (a) below. For individuals, see (b) below. In either event, should you have further questions; we recommend you seek advice from your tax or legal counsel regarding the deductibility of your investment.

(a) For Businesses - Black Hills Vision is operated under the Federal Tax ID of the Rapid City Area Chamber of Commerce. The Chamber is a tax-exempt organization under section 501C)6 of the Internal Revenue Code. If ordinary and necessary in the conduct of your business (for example: for marketing, promotion, advertising, business expansion, etc), your investment in Black Hills Vision should be deductible as a trade or business expense.

(b) For Individual - Direct investment in Black Hills Vision are not deductible by individuals as "charitable contributions" for federal income tax purposes, as the Chamber is not a "charity" or section 501(C)3 organization. However, it is possible for individuals to make contributions for Black Hills Vision through the Rapid City Foundation or the West River Foundation or other qualified tax exempt organizations under section 501(C)3 of the Internal Revenue Cde. All such contributions are subject to the regulations of the Foundation and/or appropriate IRS guidelines.

Q. Is this duplicating the efforts of local Economic Development Corporation? Why do we need another group?

Black Hills Vision will make sure that the funds raised for this effort are not used to duplicate efforts of other organizations. Local EDCs stand to gain the most from the aggressive Black Hills marketing effort. The life of Black Hills Vision is for the next four years. At the end of the initial cycle, the Governance Council will review progress made towards measurable objectives and determine the effectiveness of the program. The continued existence of the program depends on how well it addresses relevant regional needs at the end of its four-year lifespan.

Q. What is "Governance Council" and what does it do?

The Development Council is a group of influential business leaders whose sole purpose is to support and educate others as to the value of the programs and projects of Black Hills Vision. The group acts as a resource from which the campaign office and volunteers select volunteer workers for the campaign. Membership on the council is strictly voluntary and does not require regular attendance at more than one meeting to launch the public phase of the campaign.

Q. What is the Operations Committee and what does it do?

The Operations Committee provides voluntary leadership to the campaign and acts as an advisory group to campaign staff on matters pertaining to potential campaign contributors. The Operations Committee suggests strategy and offers personal advice to insure that all potential investors have an opportunity to participate.

Q. What happens if you do not raise the money you need?

In the vent the campaign does not reach its financial objective, the Governance Council will be forced to cut back on the amount of funds allocated for each program. Money raised will be applied towards the most urgent programs first as determined by the Council at the time.

Q. When do you plan to institute the program?

The program will be launch immediately.
" Nationally, the Department of Defense will be conducting its Base Realignment and Closing hearings in 2005. In order to make an effective case there will be a need to conduct research and education beginning as early as next year.
" The Homestake Mine conversion project needs to complete their work by a deadline of 2006 for funding by the federal government.
" Business recruitment efforts need to begin as soon as money becomes available for the Black Hills.

Q. Why is it called an "investment"? Isn't "investment" just another way of saying contribution?

The IRS does not consider payments made to Black Hills Vision charitable contributions for individuals. The reason we use "investor" is that payments to a project such as this are made as a business with the expectation of a financial return. Businesses can write off investments. Cash given to non-profit charities are deductible because there is no expectation or promise of monetary reward. A return on investment - ROI" - is essential for support by the business community. Jobs created through the program provide income for the workforce and revenue for the businesses of the area. It is truly "Investing In Our Future."

Q. How did you come up with 7,500 jobs? How many are being created now?

From 1995 to 2000 the total workforce expanded by 861 jobs per year. Black Hills Vision would like to increase this number to 1,500 jobs per year. The success of the program is dependent on several factors related to retention rates of existing employees and assumes no major layoffs, plant or military base closings. Firms with less than five employees create eight (80) percent of all new jobs in South Dakota.

Q. What if we don't create 7,500 jobs?

Any concentrated intense effort to produce a positive environment for job creation will be beneficial. The target hourly rate of $11.38 means that much can be accomplished when new jobs are created. The higher the wage the fewer jobs that will be needed to make the projections come true. Job growth in the area is measured by the net number of jobs at the end of the project and the average hourly rate of pay. Investors will be kept abreast of progress towards this goal at regular meeting and through reports on job creation news. Win, lose, or draw investors will be informed about progress.