Grimball Area Group Wants Nonprofit Status

Improvement Money Needed for Community

By Jenny Peterson

The Journal

Thursday, March 20, 2008

The Grimball Area Improvement Association, a predominantly black community off Folly Road, is seeking federal nonprofit status so it can receive state and federal money for improvements to the community.

The group already has secured its state nonprofit status, but getting federal nonprofit status is a much longer and more expensive process, explained the Rev. Charles Brown, a retired minister who has knowledge in law and experience working with nonprofits.

With a federal nonprofit status, "You are eligible for free money, not only from the federal government, but corporations," Brown told about 20 members of the group at their monthly meeting March 12 at James Island Elementary School.

The Grimball association has an official charter from the state that makes it a recognized nonprofit association.

"Corporations spend so much for charity; you are a charitable contribution with a 501(c)(3) (status)," he said.

Community development-type projects that could be funded through donations include getting a sewer line in the community, improving roads and fixing houses for elderly residents. About 70 percent of the community has sewer service.

Brown, who pastored several churches for more than 30 years, said getting the federal status isn't easy or inexpensive. He has offered to help the group fill out the application, Form 1023, that will be sent to the Internal Revenue Service for approval. It's about 20-30 pages long, and there is a nonrefundable $700 fee that goes along with the application.

"I don't see any problems with the application process except we are not fully organized," he said.

Board members would have to be listed on the application, along with a secretary and treasurer, including their addresses and Social Security numbers. The application also calls for the association's bylaws and a plan and vision about what the group hopes to accomplish, Brown said.

"They look for results tied to your objectives," he said.

Ronald H. Middleton, president of the group, said he hopes a federal nonprofit status will allow for improved drainage and sewerage. Brown said that the group could apply only for grants that would improve the entire community, such as parks, open space and clean water.

"If that's what we need, and it's something that's legitimate," Brown said.

James Island Town Councilman Bill Wilder attended the meeting. He recently helped secure a federal nonprofit status for his neighborhood of Sol Legare. The nonprofit is called the Sol Legare Foundation.

Wilder said a federal nonprofit designation allows the group to apply for more grants not just in the state, but around the country and even internationally.

A big project for the foundation is improving the Sol Legare Lodge, a structure still standing from the old black farming community. The building may date from the beginning of the 20th century.

Wilder said the group and the James Island Public Service District both have applied for grants to get a sewer line into the neighborhood. Block grants can be used to cover the cost for low-income residents to tap into the sewer line system. Tying into the system can cost thousands of dollars per resident.

The Grimball Area Improvement Association has received $1,500 from the Scana Corp., an energy-based holding company, which it will use to cover the fees for getting federal nonprofit status.

What wasn't mentioned at the meeting was the recently approved Grimball Farms development, a 932-acre tract slated for 227 houses, a golf course, equestrian area, tennis courts, marsh trails and archaeological site.

That development is expected to greatly affect residents through increased traffic and development. One of the benefits from the development, lawyers for the developers said, was that it would bring a sewer line to the entire community. While area church leaders praised the development at city of Charleston meetings, Middleton said the group opposed the development, and that church leaders who spoke in favor of it do not live in the community.

"What will the development do to my community?" Middleton asked.

Brown said he will continue to work with the group and will help the members apply for the federal nonprofit as soon as possible, especially since the area is changing.