SCFD Eligibility and Distribution Information

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What is the SCFD and Tier I, II and III?
In November 1988 voters in metropolitan Denver, Colorado approved a one-tenth of one percent sales tax to support scientific and cultural facilities within a six county area. Proceeds from the tax currently provide over $34 million per year for metro Denver's cultural community. In November 1994, the voters approved an extension of the District until 2006. The statute divides beneficiaries of the SCFD tax divided into three tiers.

Tier I includes the four regional cultural institutions -- the zoo, museum of nature and science, art museum and botanic gardens. These institutions receive 65.5% of total SCFD revenue.

Tier II includes eligible organizations that have qualifying operating income of $823,300 or more. Tier II institutions receive 21% of the SCFD revenue.

Tier III distributes 13.5% of total SCFD funds to all other eligible scientific and cultural organizations through county cultural councils. Available funding to each county depends on the share of all SCFD revenue collected in that county.

How Are Tier II Funds Distributed?
An organization that believes that its qualifying income level meets or surpasses the threshold will apply annually in the month of June to enter Tier II. Using audited financial statements, the IRS Form 990, and audited qualification and paid attendance statements, the district staff confirms the applicant's ability to meet the Tier II qualifying income threshold. The next step is to calculate the distribution based on the proportion of qualifying income and paid attendance for each organization. No one organization may receive more than 33% of the Tier II funds. Once this information is prepared, it is presented to the SCFD Board of Directors for approval. Tier II funds are distributed in September, December and the following March.

How Are Tier III Funds Distributed?
In each of the six counties within the SCFD, a "county cultural council" reviews grant applications and distributes grant awards. The county commissioners, or in Denver, the City Council, is responsible for selecting the "County Cultural Council" members.

Each county cultural council may set grant deadlines and application requirements in addition to those specified in the district statute. Tier III is an annual grant process; applications are due in the spring and funds are awarded in the fall.

Who Qualifies to Receive SCFD Funds?
The Scientific and Cultural Facilities District statute outlines eligibility criteria. The minimum requirements for grant recipients, pursuant to §32-13-107 (3)(c)(I) as amended by House Bill 94-1223, are as follows:

1. Qualifying/Primary Purpose
The primary purpose of scientific and cultural facilities shall be "to provide for the enlightenment and entertainment of the public through the production, presentation, exhibition, advancement or preservation of art, music, theatre, dance, zoology, botany, or natural history."

"Cultural facility" means a nonprofit institutional organization having as its primary purpose the advancement and preservation of art, music, theatre or dance.

"Scientific facility" means a nonprofit institutional organization having as its primary purpose the advancement and preservation of zoology, botany, natural history or cultural history.

"Cultural history" means the history that concentrates upon the social, intellectual, and artistic aspects or forces in the life of a people, region, state, or nation, for which an understanding and appreciation may be gained through buildings, structures, sites, architecture, objects, and activities significant to said history.

2. Tax Status Requirements

1. Scientific and cultural facilities shall show evidence of tax-exempt status as determined by the IRS 501(c) Letter of Determination, or show evidence of application for 501(c) Letter of Determination.

2. The board excepts organizations with a national affiliation that cannot acquire an in-state 501(c) status. They must:

• have local incorporation, and

• be governed by a local board, and

• show proof of individual 990 tax filings, and

• not otherwise be able to get an individual tax status.

Or, they must show evidence of status as an agency of local government whose purpose qualifies for participation.

To qualify for Tier II, an organization shall have been in existence and operating at least two years prior to the distribution of Tier II funds.

The statute does not include for funding:

• any agency of the state

• any educational institution

• any radio or television broadcasting network or station

• any cable communications system

• any newspaper or magazine

• any organization that is engaged solely in the acquisition or physical restoration of historic buildings, structures or sites

3. Public Benefit Requirement
Funding must be used to support accessible programs and events with direct, identifiable and measurable public benefit principally to the residents of the district.

4. Geographic Requirements:
Eligible organizations must:

• be physically located within the Scientific and Cultural Facilities District;

• have the majority of its activities within the state of Colorado; and 

• have activities that are accessible to and benefit the residents within the district.

5. Non-Discrimination Requirements
The organization has non-discrimination policies and practices relating to age, race, sex, color, creed, religion, national origin, sexual orientation and disability.

Please submit the eligibility application three months before an upcoming grant deadline to allow the SCFD enough time to fully review qualifications for eligibility. Grant deadlines for each county vary; contact the SCFD office for more information.