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Business & Tech

Sumner Downtown Association Attains Non-Profit Status

The Sumner Downtown Association has become a 501(c)3 nonprofit organization, retroactive to December 2010.

When the city of Sumner decided not to allocate funding to the Sumner Downtown Association this year, many people wondered what this meant. Was this the end of history walks, the Santa Parade, Classy Chassis, and other beloved Main Street events?

The answer is ‘no.’ Retroactive to December 16, 2010, SDA has attained 501c3 status as a public charity.

“It opens doors that haven’t been there for this association,” said SDA Executive Director Arla Holschuch. The status provides “more of a tax benefit" for individuals and businesses.

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For one, the Sumner Downtown Association will be able to take better advantage of a tax credit established by the state in 2006, for which only nine cities are considered to be eligible.

“You have to be a downtown revitalization program as part of Main Street,” explained Holschuch.

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Sumner fits the bill, which means that businesses donating money to SDA can receive a Business and Occupation (B&O) tax credit, or Public Utility Tax (PUT) credit for 75 percent of the amount they donate. Instructions on how to take advantage of this program can be found here: http://www.sumnerdowntown.com/B_andO_Tax/BandOTax.htm

There is a cap of $100,000 in tax credit contributions for SDA annually, and a $1.5 million state cap, doled out on a first come, first serve basis.

“I thought the one hundred thousand credits would be gone in a few months,” admitted Holschuch, but this was impeded by SDA’s former 501c6 status as a business league.

The money from donations can only be used to benefit public areas downtown. For instance, it can be spent on bringing art into the community, the hanging flower baskets along Main Street, banners, Christmas lights, community events that educate about Sumner’s history, automated equipment for SDA’s history walks, repairs to sidewalks or benches and salaries of administrators for the downtown area.

“Everything benefits the whole community,” said Holschuch.

501c3 status also means more tax benefits to individual donors, and more opportunities for government grants.

Recently, SDA has been working on restoring downtown murals. At a rate of $25 per square foot for supplies, the mural they are working on right now will cost $14,000 to restore. They started with $3,000 (part of a maintenance fund) and have only received $75 in contributions thus far.

Michael Wicks (the muralist) could be seen painting at the Arts Festival last weekend, and will be at the Classy Chassis Car Show on August 21 as well. For $20 a square foot, individuals can help SDA complete the restoration of Sumner’s murals and sign the mural as well. The signatures are incorporated into the mural, as, for instance, the knots in a tree.

SDA is also looking for contributions toward storing their parade float, which costs $6,000 a year.

Checks can be sent to Sumner Downtown Association, 906 Kincaid Ave, Sumner, WA 98390.

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