The City of Isle of Palms Accommodations Tax (ATAX) Grant is a funding opportunity designed to support projects that promote local tourism and tourism-related activities within the city. The funding is sourced exclusively from accommodations tax revenue collected in the city and is allocated to initiatives that enhance the experience of tourists visiting Isle of Palms. The grant primarily supports activities that generate overnight stays, promote tourism-related services, and contribute to the economic development of the city through tourism. ATAX grants are generally awarded on a reimbursement basis and are subject to the provisions outlined by South Carolina state law.

The primary purpose of this grant is to provide financial assistance to organizations that promote tourism in Isle of Palms. Eligible projects must demonstrate a direct impact on attracting visitors to the area, increasing overnight stays, and benefiting the local economy. Priority is given to projects that encourage tourism during non-peak periods and those that align with the city’s broader tourism promotion objectives. Applications with expenditures documented within the city limits are more likely to receive funding.

Funding is available for a variety of tourism-related activities, including advertising and promotion, cultural events, tourism-related facilities, law enforcement and public safety services for tourists, public facilities such as restrooms and parking lots, visitor information centers, and waterfront erosion control. However, ATAX funds may not be used for staffing, merchandise giveaways, legal fees, health care services, educational workshops, or local school-related activities. Projects or events that involve third-party venues outside of the city limits are generally not eligible for funding unless an extraordinary exception is granted.

Eligible applicants include nonprofit organizations with at least one year of operational history, recognized destination marketing organizations, and city departments that benefit tourism. For-profit entities are typically not eligible unless the funding does not provide a direct financial advantage to them at the expense of the city. Organizations must provide proof of nonprofit status and maintain an operational business checking account. Political organizations, religious activities, and fraternal organizations are not eligible for ATAX funding.

The application process requires a fully completed application submitted using the official Isle of Palms ATAX grant application form. Applications are initially reviewed by city staff before being forwarded to the Accommodations Tax Advisory Committee for further evaluation. Applicants must attend committee meetings to present their proposals unless an exemption is granted. The committee reviews applications based on their potential tourism impact, financial viability, and alignment with city tourism goals. Final funding decisions are made by the City of Isle of Palms City Council.

Evaluation criteria include the completeness and clarity of the proposal, the extent to which the project benefits tourism, community support, innovative approaches, partnerships with other organizations, financial management capacity, and expected economic impact. Projects that generate overnight stays, increase tourist spending, and provide a positive image of Isle of Palms are given priority. The use of matching funds is encouraged, and projects that leverage ATAX funding alongside private or industry contributions are viewed more favorably.

The grant application package must include a completed and signed application form, a project budget and narrative, proof of nonprofit status, a list of board members, financial documentation, an Isle of Palms business license, and, if applicable, proof of insurance. Grantees must comply with all guidelines, including the prohibition against re-granting or passing through funds to other entities. Misuse of funds or failure to utilize them within six months may result in required repayment with interest. Applicants must also agree to indemnify the city against any claims related to the funded event or project.