Cultural Organization Grants
CULTURAL ORGANIZATION GRANTS Background
Cultural organization grants are funded by the Parks, Arts, Recreation, and Culture (PARC) tax, which was approved by a majority of Lehi voters on November 2, 2021. A portion of the PARC funding will go towards the ongoing operations of nonprofit cultural organizations through grants.
Cultural Organization Requirements
In order to qualify for the Cultural Organization Application, you must meet the following eligibility requirements:
- The organization has a significant presence in Lehi City.
- The organization’s primary purpose is the advancement and preservation of (i) natural history, (ii) art, (iii) music, (iv) theater, (v) dance, or (vi) cultural arts, including literature, a motion picture, or storytelling.
- The organization is not an agency of the state.
- The organization is not a political subdivision of the state.
- The organization is not an educational institution whose annual revenues are derived more than 50% from state funds.
- The organization is not a radio or television broadcasting network or station, cable communication system, newspaper or magazine.
- The organization is a private nonprofit organization and certificated by the Internal revenue Service as an organization qualifying under § 501 (c) of the Internal Revenue code.
Applying for a Grant
All applying organizations must read the Lehi City PARC Tax Policy before applying for funds. The link to the policy can be found below. For convenience the Parks, Arts, Recreation, and Culture (PARC) Program Application is divided into the two parts which must both be completed online (click links below to apply):
- Organization Information. One submission required per organization.
- Project Information. One submission required per project or program.
Splitting the application into two parts allows one organization to submit multiple projects or programs, while not requiring them to repeatedly fill out their same organization information each time.
March 1, 2022 | Application opens at 9:00 am
March 31, 2022 Extended to April 15, 2022 | Application closes at 11:59 pm
April-May | Applicant presentations
June-July | Council approves PARC projects and funding
Grant Recipient Requirements
- Provide a detailed project fund list;
- Provide a timeline for the project;
- Give verbal and/or written credit to the PARC tax for funds and create a permanent PARC sign where applicable;
- Keep detailed financial records and submit them for audit;
- Use all awarded funds within one year;
- Report to the City Council at the end of the award period.
Funding Decision Process
A PARC Advisory Committee was created by the City Council to review the cultural arts grants applications. The board consists of two Lehi City staff members and five Lehi City volunteer citizens who review the applications and submit recommendations to the City Council. The City Council makes the final decision of which cultural organization grants are funded.
As established by the Lehi City Council, distribution for PARC tax allocation will be 70% towards parks and recreation and 30% towards arts and culture. These percentages may adjust at any time. The funds that go towards arts and culture include ongoing operations of cultural organizations AND cultural facilities. The City expects to receive approximately $1.3-1.5M in PARC tax revenues each year. Approximately $400,000 will go towards ongoing operations of cultural organizations AND cultural facilities.
Any publicly owned or operated museum, theater, art center, music hall, or other cultural or arts facility.
A private nonprofit organization or institution having as its primary purpose the advancement and preservation of: (1) natural history; (2) art; (3) music; (4) theater; (5) dance; or (6) cultural arts, including literature, a motion picture, or storytelling; and an administrative unit. Cultural organization does not include any agency of the state; any political subdivision of the state; any educational institution whose annual revenues are directly derived more than 50% from state funds; or any radio or television broadcasting network or station, cable communications system, newspaper, or magazine.
Qualifying Operating Expenses
This definition applies to cultural organizations. An organization’s total expenditures for ongoing operations for an identifiable fiscal year as documented by certified financial records (as allowed by Generally Accepted Accounting
Principles, GAAP) less the following non-qualifying expenditures:
- Capital construction expenses, including capital acquisition, improvements to real property or depreciation of real property;
- Payments into an Endowment Corpus;
- Expenditures for programs conducted outside of Lehi City;
- Activities not available to the general public;
- Fundraising expenses related to capital or endowment campaigns;
- Repayments of loans and/or interest thereon;
- Expenditures for direct political lobbying on all levels;
- Grants – the distribution of funds to outside groups, institutions, organizations or other units;
- Bad Debt Expense;
- Depreciation and amortization of any asset;
- Non-deductible Tax penalties;
- Unrelated Business Income Tax – any operating expenses that are utilized in
calculating federal unrelated business income tax;
- Cost of Goods Sold; and,
- Other expenses not related to the organization’s primary cultural purpose
PARC Tax Policy
Cultural Organization Grant Criteria Narrative
Lehi City PARC Cultural Organization Grant Application – Part I (organization information PDF document)
Lehi City PARC Cultural Organization Grant Application – Part II (project information PDF document)
For questions on the Cultural Organization Grants, please email PARC@lehi-ut.gov.