IRDF Loan & Grant Policies and Procedures

effective 5/1/2017

 

A. Policies for submitting loan applications.

1. As is the case for grants also, the applicant can begin the application process for a loan by visiting the offices of FSILG Cooperative, Inc (FCI) in W20-020A or calling 617-452-4053.

2. The IRDF Board of Allocation recommends a guideline of $100K for the minimum loan amount.

3. The IRDF Board of Allocation and MIT will always seek to have the loan written at the minimum allowable interest rate. The rates change periodically, so please check with the FSILG Cooperative, Inc (FCI) for the current rate.  

4.  Generally the loan term is 30 years, and payments are due quarterly.

5.  The loan application should be made out for the entire project. Because most renovation projects also involve educational areas or at least affect the building envelope, it is recommended that an Educational Project grant also be investigated along with applying for a loan.

B. Policies for submitting grant applications.

1. The FSILG Cooperative Inc. (FCI) is the normal agent and conduit for assisting chapters in application submittals. In the event of a dispute, however, appeals may be made to the IRDF Grant Advisory Board.

2. Educational Area allocations are maintained by the FCI and current copies kept in each chapter’s locker. Any request for a change must be directed to the FCI, who will investigate. Approved changes become effective in the subsequent fiscal year.

B1 - Policies applicable to *Project* Grants.

3. For Project Grants, “before” and “after” photographs are encouraged. Please forward them to irdf@mit.edu.

4. For Project Grants, no additional funds will be granted in the event of a cost overrun. Typically, though, loan amounts can increase. Educational Project grants are generally approved before the work starts, and funds given on contractor receipts.


5. In each MIT fiscal year (July 1 to June 30 of the following year), the IRDF Grant Advisory Board will establish a level of funding that will be available for project grants. The funding amount will be determined and announced to the community no later than October 1. All requests for projects grants must be submitted to the Grant Advisory Board by November 1. The Grant Advisory Board will notify the applicants by January 1.

6. Since there is a limited amount of funds available each year, some grants may be denied. The Grant Advisory Board may also put a cap on a project or limit the percent of reimbursement for the project.


7. In making its recommendations to the Institute, the IRDF Grant Advisory Board will weigh each of these criteria in evaluating each IRDF Project Grant request by an FSILG:

1. Past contributions by alumni to the IRDF fund.
2. Past project grants awarded to the FSILG.
3. Fundraising efforts and IRDF publicity by the FSILG.
4. Community involvement of the FSILG.
5. Overall benefit to the MIT community.
6. Financial needs of the FSILG.


8. Based on these criteria and the amount of available funds, project grants may be fully funded, partially funded, deferred, or rejected at MIT’s discretion. Partially funded and deferred requests will be automatically reconsidered for the following fiscal year if the applicant desires. The IRDF Grant Advisory Board may reduce contribution expectations for newer FSILGs with small alumni bases. Please note this policy is not applicable to IRDF annual Educational Operating Grants or IRDF Community-wide Grants.

9. Major Project Grants are those where the requested grant amount is equal to or greater than $100,000. These are evaluated and treated separately from the process described in section B1-6 above. The IRDF Grant Advisory Board will weigh each major project request by the same criteria applied to other project grants. The IRDF Grant Advisory Board will then forward its recommendation to the MIT Executive Vice President and Treasurer.

10. For Major Project Grants which are associated with a *new* IRDF loan, the grant amount will be deducted directly from the loan principal.

B2 - Policies applicable to *Operating* Grants.

11. Operating Grant applications must be submitted in actionable form (i.e. substantially complete and correct) within 4 months of the conclusion of the submitter's fiscal year end. Any subsequent revisions and requests for additional documentation that may arise must be completed within 6 months of the conclusion of the submitter's fiscal year end.

12. Each year, the IRDF Grant Advisory Board establishes a percentage of the full allowable amount for safety and educational expenses. The following percentages are currently in the grant application operating expenses worksheet (beginning Fiscal Year 2014) and apply to grant eligible items:

-       40% reimbursement for eligible educational-area-proportional operating expenses  

-       75% reimbursement for eligible safety maintenance & operating expenses

-       75% reimbursement for eligible educational equipment.


C. Furnishing and Equipment policies.

These apply to both Project and Operating grants:

1 There is a maximum per chair and per desk grant allowance. The FCI can recommend very good quality desks and chairs meeting these cost targets. If they wish to procure other desks or chairs, the chapter must pay for amounts beyond this.

2. The above limits do not apply if the furnishings are for an architecturally significant area, such as a town house library. Also, virtually all furnishings, such as couches, end tables, etc. may qualify for reimbursement in an architecturally significant educational area such as a library. Each situation should be reviewed by the FCI beforehand.

3. Desks, chairs, and other furnishings are expected to last a minimum of 10 years. Replacement of these will not normally be granted within a 10 year time frame.

D. Procedures of the Boards.

1. The FSILG Cooperative Inc. (FCI) is the formal point of contact for applying for IRDF loans and grants. The FCI will maintain registers and records of all applications, as well as a register of Educational Area changes. Each request for a change will be investigated and approved or denied by the IRDF Grant Advisory Board.

2. "No action yet" is added to the activity register for every FSILG which has not yet submitted an Educational Operating Grant in the current grant period. This register will be distributed electronically at least twice per year to the IRDF Boards.

3. Annual Reports showing all significant IRDF cash flows will be distributed by the Treasurer’s Office to the IRDF Boards at least annually.

4. After the conclusion of each MIT fiscal year, with the assistance of the Annual Fund of the Alumni Association, every IRDF donor – unless the donor opts out – will be recognized on an MIT-affiliated web site. Also “Thank You” e-mails will be sent regularly to donors.

5. The IRDF Boards will periodically review of the IRDF web site and the associated AILG and MIT Alumni Association web pages.

6. Formal requests for IRDF funding for community-wide projects (e.g. CO monitoring, Network Upgrades) shall be generally documented using a template similar to that used for FCI assistance for grant preparation.

 


E. Educational Operating Grant Application Review and Approval Process

1. The Grant Advisory Board maintains a spreadsheet that lists the Educational Operating Grant (EOG) status of each FSILG. This spreadsheet is a part of the meeting minutes; its purpose is to ensure EOGs are being submitted and processed in a timely manner:

            a)  Applicants that are unable to meet the application guidelines and deadlines set forth by the Grant Advisory Board will received reduced funding or no funding.

            b)  Applications that are not handled in a timely fashion by the FCI will be brought to the attention of the Alumni Corporation of the affected FSILG and the FSILG Cooperative Inc. Board of Directors.

 

2. EOG Applications must be submitted in actionable form ((i.e. substantially complete and correct) within 4 months following the end of the FSILG’s fiscal year. 

            a)  The FCI will send messages to FSILGs reminding applicants that their application first submittal and final submittal deadlines are approaching.  The Grant Advisory Board will be electronically copied on these e-mail messages and the Secretary will track these communications on the EOG status spreadsheet.        

            b)  These applications must be received in an actionable state and must be completed within 6 months of the conclusion of the submitter's fiscal year end.

            c)  Applications that are not submitted with two signatures by the end of this 4 month window will have missed the deadline and will not be reviewed.  FSILGs that miss the filing deadline will receive an e-mail indicating that the deadline has been missed.  The Grant Advisory Board will be electronically copied on these e-mail messages.

 

3. To expedite the approval and check writing process, grant applications need to be submitted electronically to the Grant Advisory Board for review no later than one week before a meeting.  Applications that are received by the Grant Advisory Board less than one week before the regular monthly meeting will be reviewed at the next Grant Advisory Board meeting.

            a)  Applications must include all documentation necessary (application, receipts, both signatures, etc.) for MIT to authorize a check.

            b)  The Grant Advisory Board may specify areas of concern to FCI.  If possible, issues with applications should be clarified, corrected, etc. during the one week period before the meeting.

            c)  If the Grant Advisory Board or the office of the Vice President of Finance requests missing documentation, the FCI must provide documentation within five business days or notify the Grant Advisory Board and the Vice President of Finance why documentation is unavailable.

            c)  Applications that are still incomplete by the end of the total 6 month period will be evaluated as if the application is in final form.  No additional receipts or documentation will be accepted.

            d)  At each meeting, Grant Advisory Board members will provide a signature indicating their approval of each grant on a form provided by the Vice President of Finance.

 

Revision 5/9/2017