Frequently Asked Questions
Q. What is Black Hills Vision?
Black Hills Vision is the community investment vehicle formed
to raise $5 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 was organized and
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. 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. 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
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 initial life of Black Hills Vision
was four years. In the fall of 2009, 11 town hall meetings
were held to get public input to determine the effectiveness
of the program. The continued existence of the program is
because of how well it addresses relevant regional needs at
the end of its four-year lifespan.
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."
Black Hills Vision - Frequently Asked Questions