Tax Information
Inspire Access, Inc, (the Organization ) is a Maryland Tax Exempt Nonstock Corporation and operates exclusively for charitable, educational,
and purposes within the meaning of Internal Revenue Code ( Code ) Section 501(c)(3). The Organization aims to create lasting and impactful
solutions by providing investment capital to underrepresented founders/economically disadvantaged minority groups who otherwise have not
been granted access to conventional sources of funding.
In 2021, women founders secured less than 3 percent of venture capital. Since 2015, Black and Latinx founders have raised just 2.4 percent of total venture capital invested. The Organization was formed with a mission to facilitate the flow of capital to ventures owned by such
underrepresented founders, thereby encouraging and improving the economic development of such minority groups while supporting the
development of innovation that benefits society as whole. Specifically, the Organization aims to advance this goal by, initially, making program related investments
( PRIs ) in the form of working capital loans to such under-represented founders and their ventures.
In April, 2016, the Internal Revenue Service (the IRS ) published final regulations on PRIs that provide a series of examples of investments that qualify as PRIs. Notably, the regulations clarified, among other things, that PRIs can be used to accomplish a variety of charitable purposes, such as relief of economically disadvantaged individuals, advancing science and combating environmental deterioration, that the recipients of PRIs need not be within a charitable class if they are the instruments for furthering an exempt purpose (for example, this allows for a charitable organization to invest in for-profit entities that are not themselves in need of charitable assistance when these recipients are instrumentalities of furthering the charitable organization s exempt activities. See Rev. Rul. 74-587, 1974-2 C.B. 162).
a. The Organization will make working capital loans to support under-represented founders and their companies in a manner that ensures their focus on the charitable impact. Although the Organization will be classified as a public charity, the charitable investments it makes will generally follow the guidelines and
standards of the rules governing the PRIs, as defined in Code Section 4944(c) and the Treasury Regulations promulgated hereunder.
b. These activities will primarily be planned and led by the Organization's directors and officers with day to day support and management of
these activities performed initially by volunteers (and in some cases, by independent contractors) until the Organization hires its own
employees.
c. These activities will primarily take place at the Organization s headquarter in Maryland while a part of the activities (such as due diligence and a meeting with potential recipient of investment) may take place at the location of funding recipient throughout the United States.
d. The Organization anticipates that close to 100 percent of its time (other than a time spent on general and administrative functions) will be
allocated to support these activities.
e. The activities will be funded initially through donations from individual donors and other mission aligned charitable organizations, funds and
corporations.
f. The Organization will make loans to companies owned by the founders of underrepresented and economically disadvantaged minority
groups who otherwise do not have access to conventional sources of funding. These activities will further the Organization's specific tax-exempt purposes by facilitating the flow of capital to ventures owned by such underrepresented founders, thereby encouraging and improving the economic development of such minority groups while supporting the development of innovation that benefits society as a whole.