This is not legal advice-Consult your counsel
The Fund is organized under sections 501c3 of the Internal Revenue Code as a nonprofit organization. VCF is authorized by the Internal Revenue Service to pursue any activity qualifying as charitable in nature. VCF may undertake those activities with no further notice to the public. VCF is focused on investing in housing for very low income abused women, homeless veterans, very low income single parents, low income seniors, homeless youths and other less fortunate segments of our communities. We may also pursue investments which contribute to the well being of such persons
The Fund intends to obtain funds from the sale of Unsecured Social Investment Term Notes. As to these notes the Fund operates under New Hampshire Revised Statutes Annotated chapter 162-l , COMMUNITY DEVELOPMENT FINANCE AUTHORITY, section 162-l:1.iii which authorizes “Other nonprofit organizations and municipal governments involved in community development” means a nonprofit organization organized under the laws of the state or municipal government to carry out purposes related to community development, improvement, revitalization, or other activities consistent with the purposes of this chapter and directed towards improving the living standards of distressed populations.
The Offering is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 3(a)(4) thereof, as an offering to charitable investors.
The Community Fund in conducting the Offering is also excluded from the requirement to register, and will not be required to comply with the governance and other regulatory provisions of an investment company, under Section 3(c)(10) of the Investment Company Act of 1940 (the “Investment Company Act”). The Offering and the Community Loan Fund are exempt from several other provisions of the securities laws pursuant to the federal Philanthropy Protection Act of 1995, 104 P.L. 62 (the “Philanthropy Protection Act”).
The Fund provides offering Information regarding such Notes via an Offering Circular. See “Offering Circular”. Regulatory standards for disclosures for this type of notes are not as clear as for other types of securities. In the opinion of management, this circular is much more extensive than circulars from some other nonprofits using this technique. Management considers this information appropriate considering the early development stage of the Fund, the uncommon nature of the use of these notes for primarily direct investment in affordable housing and the risks of entrepreneurial real estate activities- See especially “Risks” in the Offering Circular.