Iowa Arts & Culture Emergency Relief Fund
Iowa Arts & Culture Recovery Program
December 2, 2020
Program Guidelines - Nonprofit Cultural Organizations, Live Music & Government Owned Cultural Venues
Funding Categories
During the current funding round, Iowa Arts & Culture Recovery Program grants will be made available to support eligible Iowa organizations and businesses that can demonstrate lost revenue and/or increased expenditures due to the COVID-19 pandemic. Applications will be considered in the following categories:
- Nonprofit Cultural Organization
- Live Music Venue
- Government Owned Cultural Venue
Available Funding
The Iowa Arts & Culture Recovery Program has been established with $7 million designated by Governor Kim Reynolds from the federal CARES Act. As demand for these grants is expected to exceed available funding, this will be a highly competitive program. No applicant is guaranteed a funding award or amount.
Timeline
December 2, 2020 - Application Opens
The application will open on December 2, 2020.
December 11, 2020 - Application Deadline
The application will close on December 11, 2020 at 11:59 PM.
December 30, 2020 - Award Notification
Applicants will be notified of their status and funding decisions by December 30, 2020.
March 1 - December 30, 2020 - Funding Period
Grant funds must be spent on eligible expenses incurred due to the COVID-19 pandemic between March 1, 2020 and December 30, 2020.
March 1, 2021 - Final Report Deadline
Grant recipients are required to complete a final report by March 1, 2021.
Funding
Award amounts will be determined based on total available funds; the established review criteria and funding priorities; and financial information provided by the applicant, including:
- An applicant’s average annual cash operating expenses; and
- Necessary expenditures incurred due to the public health emergency; and
- Loss of revenue caused by closures, cancelled or postponed public programming, and/or business interruption due to the public health emergency; and
- Prior financial assistance, awarded through any state or federal agencies, from the CARES Act.
Funding Ranges and Limits
- The minimum award amount will be $1,500.
- Award amounts will be capped at 50% of total eligible revenue losses and expenses or $250,000, whichever amount is less.
- Award amounts will not exceed 15% of an applicant’s average annual operating expenses for their three most recently completed fiscal years.
- The department reserves the right to adjust funding award amounts and limits.
Eligible Use of Funds
The CARES Act requires that the awarded funds only be used to cover expenses that:
- are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19);
- were not accounted for in the applicant’s most recently approved budget as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government entities; and
- were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.
Necessary expenditures incurred due to the public health emergency and COVID-19 pandemic include:
- Facility Costs (e.g. rent, mortgage, insurance, utilities, telephone/internet service)
- Payroll (e.g. staff salary, wages, and fringe benefits)
◦ Payroll expenses covered by PPP funds through July 31, 2020 are ineligible for this program. However, those same payroll expenses can be included, for the period following when PPP was exhausted up to Dec. 30, 2020.
◦ Payroll expenses that exceed an annual salary of $100,000, as prorated for the covered period, are not eligible.
◦ Federal employment taxes imposed or withheld, including the employee's and employer's share of FICA (Federal Insurance Contributions Act) taxes and income taxes required to be withheld from employees, are ineligible expenses for grant funds.
◦ Qualified sick and family leave wages for which a credit is allowed, under the Families First Coronavirus Response Act, are ineligible expenses for grant funds - Contract worker fees (e.g. artist fees, contracted personnel)
- Adaptive upgrades (e.g. software and online services)
- Equipment under $5,000 per unit (e.g. camera, computer, lighting, recording equipment)
- Supplies (e.g. personal protective equipment (PPE), signage, cleaning/sanitizing)
- Marketing (e.g. graphic design, ad buys, printing)
Grant funds must be directly tied to the following types of activities related to the COVID-19 pandemic and must exclude expenses for which other federal, state, local or private relief funding has already been received:
- business interruption caused by required closures and/or cancellation of programs, such as contractual payments to artists, venues or vendors and/or reduced operations such as payroll expenses, rent or mortgage payments for venue facilities, and operating costs
- venue reopening, including alterations to facilities to meet reopening guidelines such as extra cleaning costs or supplies and the purchase of employee personal protective equipment
- transitioning services and programs to alternative means or methods such as online, outdoor or limited attendance
- acquisition of goods or services acquired during the covered period that were previously unbudgeted and a necessary expense incurred due to the COVID-19 public health emergency
- remarketing arts and humanities facilities and industry or to publicize the resumption of activities and steps taken to ensure a safe experience due to the public health emergency
Ineligible Use of Funds
Grant funds may not be used for any of the following expenses:
- For units of a state, local, or tribal government only: previously budgeted costs and expenditures not incurred directly due to the COVID–19 public health emergency
- Capital expenditures, including equipment equal to or greater than $5,000 per unit
- Damages covered by insurance
- Expenses funded or reimbursed by other state, federal, or private funding source including but not limited to CARES Act funding
- Foreign travel
- Fundraisers or benefits
- Legal settlements
- Lobbying activity
- Goods or services received outside of the eligible funding period of March 1 to December 30, 2020
- Prizes and awards
- Reimbursement to donors for donated items or services
- Religious activity
- Severance pay
- Workforce bonuses other than hazard pay or overtime
Applicants and grant recipients must adhere to all funding policies of the Iowa Arts Council.
Funding Period
Grant funds must be spent on eligible expenses incurred between March 1 and December 30, 2020. For an expense to be considered to have been incurred, performance or delivery must occur during the covered period. Payment of funds need not be made during that time; however, it is expected that payment will take place within 90 days of a cost being incurred.
Matching Requirements
There are no matching requirements.
Funding Disbursement
Grant recipients will receive a contract via email for electronic signature upon notice of award decisions. Contracts will be processed upon completion and funding will be disbursed as quickly as possible through the State Accounting Enterprise which typically takes 4-5 weeks to process.
Taxes
Recipients should consult a tax advisor regarding the implications of grant payments on state and federal taxes.
Funds are administered through the State of Iowa. Grant recipients who have outstanding debts to the State of Iowa will receive garnished award payments to fulfill any debts.
Federal Funding, Records and Future Audit Requirements
Applicants and grant recipients must adhere to all requirements outlined in the CARES Act and 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as further described below:
- CARES Act dollars constitute a federal grant and may also be subject to federal audit.
◦ Grant recipients not accustomed to processing federal awards are advised to review documentation requirements; ensure that recordkeeping is in order; plan to document extensively (note: documentation may include bills, invoices, receipts, monthly financial statements, executed contracts, payroll ledgers, and other documents); and plan to carefully retain documentation for a period of at least five years.
- CARES Act funding from different sources may not be used to support the same expense for the same time frame (e.g. educator wages for a three-month period).
◦ This includes but is not limited to CARES Act funding received from the Iowa Department of Cultural Affairs, Iowa Economic Development Authority, Small Business Administration, Arts Midwest, National Endowment for the Arts, National Endowment for the Humanities, or the Institute for Museums and Library Services.
◦ Grant recipients are responsible for ensuring funds received from any federal, state or local or private source, including any other grant funds received from the Iowa Department of Cultural Affairs, do not total more than 100% for the same eligible expense for the same time frame. Grant recipients must track and keep records of how the funds were allocated to prove that no duplication of benefits took place.
This includes Art Project Grants, Cultural Heritage Project Grants, Cultural Leadership Partners Grant, Capacity Building Grants, Virtual Arts Experience Grants, Historic Resource Development Program Grants, Iowa Arts & Culture Emergency Relief Fund Grants.◦ Applicants should consult with their own legal counsel to discuss whether any particular cost meets the eligibility criteria set forth in the CARES Act.
- Grant recipients must maintain records associated with the use of funds for audit purposes for at least five years.
◦ Grant recipients receiving funding from the state should maintain records of all COVID-19 related losses and expenses, and records of any other COVID-19 relief payments received from other sources. These records should be sufficient to establish that the funds were used in a manner consistent with 42 U.S.C. 801(d). Records should be maintained for a period of five (5) years after the final expenditure of funds. The Auditor of State has authority to audit any entity or individual that receives funds from the state.
◦ Grant recipients must maintain appropriate records, as required by 2 CFR 200.302 (financial management), 2 CFR 200.430(i) (standards for documenting personnel expenses), and 2 CFR 200.333 (retention requirements for records) to substantiate the charging of any compensation costs related to interruption of operations or services. The grantee must have adequate records to support that the cost met the terms and conditions of the award and allowable costs/cost principles under 2 CFR 200 Subpart E (necessary and reasonable, allocable, net of credits, limitations, consistency, and where required prior written approval).
◦ Applicants and grant recipients retain responsibility for demonstrating eligibility of expenses, and are required to hold the Iowa Department of Cultural Affairs harmless for any audit disallowance related to the eligibility of expenses, including repayment of ineligible amounts if awarded funding.
Applicant Requirements
Eligible Applicants
Eligible applicants must meet the criteria for one of the following entity types and all of the corresponding requirements for that entity. Applicants that do not meet the criteria for an eligible entity type, and all of the corresponding requirements, are not eligible to apply.
All applicants, regardless of entity type, must certify and be able to demonstrate that they have incurred substantial financial losses and/or additional expenditures as a direct result of the COVID-19 pandemic and public health emergency in the State of Iowa.
Nonprofit Cultural Organization
Defined as an organization with a primary purpose to create, educate, produce, present or preserve content related to the arts, humanities, or interpretative sciences. Organization must also:
- be located in Iowa and incorporated in Iowa under the Iowa Nonprofit Corporation Act and hold federal 501(c)3 tax-exempt status
- be registered to do business in the State of Iowa with the Secretary of State’s Office
- have an arts, humanities, or interpretative sciences focused mission statement
◦ Organizations that have a mission focused on other areas such as economic development or social services, but include some arts and/or cultural programming, are not eligible. - have been in existence since March 1, 2019
- have annual operating expenses of $10,000 or more for the most recent fiscal year
Live Music Venue
Defined as a for-profit business with a primary purpose to present live music or theatre performances, and that is recognized as a destination for such by consumers of live music or theatre, as indicated by:
- owning, renting, or leasing a physical space in Iowa with defined areas for performers and audience members
- charging a fee to attend live music or theatre performances through ticketing or entrance fee
- marketing of specific live music acts or theatre through print, digital and/or social media
- earn substantial revenue from ticketing and entrance fees charged, as well as food, beverage and merchandise sold, to attendees of live music or theatre performances
◦ Venues that offer some live music or theatre programming but have a primary purpose other than presenting live music or theatre are not eligible.
◦ Visual art galleries, bookstores, restaurants, bars, exotic dance clubs and nightclubs, studios or lesson based educational venues, movie theatres, general event centers are not eligible.
As used here, theatre is defined as a performing arts discipline that entails a live performer or performers presenting a work of art before a live audience in a specific venue.
In addition, the entity must:
- be registered to do business in the State of Iowa with the Secretary of State’s Office
- have been in existence since March 1, 2019
- have annual operating expenses of $10,000 or more for the most recent fiscal year
Government Owned Cultural Venues
Defined as a publicly-owned venue that is a unit of any local, state or federally-recognized tribal government, such as a regent university, state, county or municipality including entities who have entered into a 28E agreement, whose primary purpose is to create, educate, produce present or preserve content related to the arts or humanities. In addition, the entity must:
- be located in Iowa
- be registered to do business in the State of Iowa with the Secretary of State’s Office
- business must own the cultural venue
- have been in existence since March 1, 2019
- have annual operating expenses of $10,000 or more for the most recent fiscal year
Ineligible Applicants
The following types of applicants are not eligible to apply:
- Public libraries
- County fairs
- Non-arts, humanities, and interpretative sciences organizations
- Business, organization physically located outside of Iowa. The border state policy does not apply to this grant program.
- Organization that uses a fiscal agent or the Iowa nonprofit or federal tax-exempt status of another organization.
- Auditorium, arena, convention center or similar type of venue whose primary purpose is related to presenting popular entertainment, sporting or recreational events.
- Educational institution, organization or pre-K through 12 school, whose primary orientation, mission and purpose is education and the awarding of academic credits
◦ Units of government and higher education institutions that operate a stand alone arts and humanities venue are eligible to apply on behalf of the arts and humanities venue
- Iowa Department of Cultural Affairs grantees with an outstanding final report or who have been placed on a department funding moratorium
Iowa Arts Council Administered Program Eligibility
- Eligible applicants are allowed to receive one Round Four emergency grant award in addition to any previous emergency or regular grant awards made to date by the Iowa Department of Cultural Affairs in calendar year 2020
- Organizations that have directly received funding through CARES Act programs from the Iowa Department of Cultural Affairs, Iowa Economic Development Authority, Small Business
- Administration, Arts Midwest, National Endowment for the Arts, National Endowment for the Humanities, Institute for Museums and Library Services may receive funding from this grant program
- Eligible applicants are limited to submitting one application to this program.
◦ Applicants that maintain multiple arts or cultural venues are limited to one request for one arts or cultural venue.
Application Submission
Applicants must submit applications via the Iowa Arts Council’s SlideRoom, an online application portal. Applications will not be accepted in any other format. Late, incomplete or ineligible applications will not be accepted. Applicants can access the current online application requirements at iowaartscouncil.slideroom.com. Applicants must create a login to view the full application requirements for the program. Applicants can visit help.liaisonedu.com for SlideRoom assistance related to the online submission.
Review Process
Applications are reviewed by staff for completion, eligibility and adherence to published guidelines. Applications are reviewed as submitted. New information or subsequent clarification submitted after a program deadline is not considered. Staff will also review an applicant’s record of compliance and good standing with the Iowa Department of Cultural Affairs, State and Federal government. Applications or applicants determined by staff to be ineligible or incomplete will not be considered for funding and are specifically denied any appeals process.
Review Criteria
Eligible applications will be reviewed and awarded to the extent that funding is available. To maintain equitable access to available funds, applications will be reviewed within their applicant type and the following funding priorities will be considered:
- Demonstration of need and actual loss of revenue
- Jobs supported by the grant funds
- Iowa Department of Cultural Affairs Grant Recipient FY 2016-2020
- A business or organization that predominantly serves or is led by members of one or more underrepresented populations, including persons of color; persons with disabilities; persons identifying as LGBTQIA+; and/or persons located in an eligible rural county
- Distribution of funds throughout the state
Grant Recipient Expectations
Acknowledgement
Funding for this program is provided by the Iowa Department of Cultural Affairs as directed by Governor Kim Reynolds through an appropriation to the State of Iowa through the federal CARES Act. Grant recipients will be required to acknowledge support through letters of acknowledgement to state and federal legislators, Governor Kim Reynolds and through Iowa Department of Cultural Affairs logo usage on print and digital communications.
Final Report
Grant recipients will be contractually obligated to complete a final report that includes documentation of use of funds and a demonstration of the impact of the funding.
