More money for economic development projects will be available than ever before from Northern Development in 2014.
In February, the Trust’s board of directors unanimously supported a decision to increase the annual grant allocation to 7% from 5%, meaning that a total of $11.4 million in grants will be available to local governments, First Nations and non-profits throughout the region in 2014.
The decision applies to projects funded out of the Trust’s Cross Regional, Pine Beetle and Regional Development accounts, which account for 100% of the projects that Northern Development approves for funding.
The 2% increase in annual grant funding is a result of the Board’s decision to maximize the amount of dollars available to grassroots, community-led projects throughout central and northern B.C.
Since inception in 2005, the annual return on investment for the Trust’s $185 million capital base has averaged 7.5%, while its maximum annual grant allowance has remained at 5%.
That return has meant that, while the Trust has disbursed millions of dollars in funding each year, its capital base has also grown to more than $200 million to keep track with inflation and ensure a long term sustainable trust for northern communities.
As a result, Northern Development is now able to grant out a maximum of 7% of its capital base per year and continue to remain financially sustainable for the foreseeable future.
In addition to the increase in annual grant funding, the board of directors also approved several funding program changes in February that will mean that yet more dollars will be available to communities in 2014.
- Annual funding to local governments from the Economic Development Capacity Building program has been increased to $50,000 from $35,000
- Annual funding to local governments and First Nations to support locally based grant writers has been increased to $8,000 from $7,500
- The percentage of community hall and recreation facility projects the Trust will fund has been increased to 50% from 33% to a limit of $30,000
[quote by=”Evan Saugstad” position=”Chair” company=”Northern Development Initiative Trust”]The increase in annual grant funding allows us to support more economic development projects than ever before, while at the same time ensuring that the Trust remains a sustainable organization for years to come[/quote]
Quick facts
- In 2013, Northern Development approved $6.1 million in funding for 222 economic development projects
- In 2013, the board approved more than 99% of the applications submitted to the Trust
- Approximately 72% of the Trust’s funding approvals go into communities with less than 5,000 people
- Since inception, the Trust has approved $118 million in funding to 1,327 projects throughout central and northern B.C.
- Northern Development provides grant and loan funding to municipalities, regional districts, First Nations and non profit organizations
- The Trust manages 13 distinct funding programs and a host of capacity building services that provide crucial support to 49 local governments and 88 First Nations communities in an area that encompasses 75% of B.C.
