Cultural Endowment Program

The Florida Department of State, Division of Arts and Culture administers the Cultural Endowment Program, which is designed to create endowment matching funds that provide ongoing programming resources to participating cultural organizations. The program has two components: designation as a Cultural Sponsoring Organization and receipt of a State Matching Share. An organization may obtain Cultural Sponsoring Organization designation without immediately seeking a State Matching Share, but approved designation by the Secretary of State is required before an organization may receive a State Matching Share. The program supports organizations whose cultural activities include disciplines such as music, dance, theatre, creative writing, literature, architecture, painting, sculpture, folk arts, photography, crafts, media arts, visual arts, museums, and related major art forms. For a State Matching Share, an eligible Cultural Sponsoring Organization must raise and deposit at least $360,000 in eligible new contributions into its State of Florida Cultural Endowment Fund before the application deadline. Subject to legislative appropriation and the organization's position on the Priority List, the State of Florida provides a $240,000 State Matching Share. The local contribution and State Matching Share create an endowment with a minimum market value of $600,000. The full endowment principal must be maintained and invested according to the Endowment Agreement. Income generated by the investments may be used only for costs incurred in programs directly related to cultural activities or may be reinvested to expand the principal. Endowment funds may not be pledged as collateral. Allowable match may include eligible cash or negotiable securities from local or federal sources, while money provided by the State of Florida cannot be used as any part of the organization's local matching share. Eligible donor contributions generally must be specifically designated in writing for the endowment fund and received no earlier than five years before the application deadline for which they are counted. Certain surplus amounts originally deposited above the required $360,000 local match in an existing Cultural Endowment Fund may qualify toward a subsequent endowment, but interest generated from an existing endowment does not count as a new contribution. Income from the endowment may not be used for lobbying, facilities construction or renovation, bad debts, fines or financial costs, private entertainment, food, beverages, plaques, awards, scholarships, re-granting, contributions, donations, restricted private participation, or collateral. Eligible applicants must be Florida not-for-profit corporations in good standing under Chapter 617, Florida Statutes, must qualify as tax-exempt organizations under Section 501(c)(3) or 501(c)(4), and must satisfy the applicable charitable contribution requirements. They must directly conduct, create, produce, present, stage, or sponsor qualifying cultural programming and must first obtain Cultural Sponsoring Organization designation. Community colleges, government entities, and Direct Support Organizations that do not directly conduct qualifying cultural programming are not eligible. For a State Matching Share, the applicant must have the required $360,000 deposited in a single financial institution and must maintain its legal and programmatic eligibility. The guidelines contain two different frequency provisions for additional State Matching Shares: one states that an applicant must not have received a share within the 23-month period preceding the application, while another states that additional shares shall not be awarded more frequently than once every 36 months. Applications for State Matching Shares are submitted online through DOSgrants.com. The annual application cycle begins April 1 and closes at 5:00 p.m. ET on June 1; if the deadline falls on a Saturday, Sunday, or legal holiday, it moves to the next business day. A complete State Matching Share application includes a current board member list with specified contact and occupational information, the organization's most recent independent certified audit, documentation showing that at least $360,000 in eligible new contributions was deposited before the deadline, documentation of Cultural Sponsoring Organization designation, and a certification from the board chair or president stating that the documentation is true and correct and permitting Department access to records for endowment program purposes. Cultural Sponsoring Organization designation applications may be submitted throughout the year but must be received at least 30 days before a regular Florida Council on Arts and Culture meeting to be placed on that meeting's agenda. The Division first determines whether submitted designation materials are complete and compliant, then notifies applicants of eligibility and makes a recommendation to the Florida Council on Arts and Culture. The Council reviews the recommendation and forwards its designation recommendation to the Secretary of State, who makes the approval determination. For State Matching Shares, the applicant's compliance date is the date it has deposited eligible new contributions totaling at least $360,000, and that date determines its position on the Priority List. The Council approves the Priority List in October, the Florida Legislature considers Cultural Endowment appropriations in March, and funded organizations from the previous fiscal year are notified following the appropriation process. A State Matching Share becomes available July 1 of the following fiscal year after application submission, subject to sufficient appropriations and Priority List ranking. After execution of an Endowment Agreement, the Department transfers one $240,000 State Matching Share to the organization. Each individual endowment must maintain a market value of at least $600,000 at all times, and the principal must be invested in qualifying investment-quality financial instruments with preservation of principal as the primary constraint. Recipients must submit an annual report to the Division no later than July 30 describing use of the endowment interest, program benefits, and investment of the corpus, together with financial documentation showing the required minimum market value. Single Audit Act certifications and any required audits are due nine months after the organization's fiscal year end. Program assistance is available through the Division of Arts and Culture staff listing on the Department's website.

Obtain approved Cultural Sponsoring Organization designation before seeking a State Matching Share; deposit the full eligible $360,000 local match before the June 1 deadline; keep the endowment match in a single financial institution; verify that contributions meet the program's new-contribution rules; preserve documentation supporting all deposits and board actions.