fundraising from america - 'managing the fundraising' 2014

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Designed for everyone involved with 501(c)(3) governance, management and fundraising, including board members, officers and development staff. This is also suitable for organisations wishing to learn the requirements and the benefits of a 501(c)(3) prior to obtaining a 501(c)(3) status. Content: - What are the responsibilities of Directors & Officers of a 501(c)(3)? - Banks, Brokerage and Credit Cards - Stationary, Receipts & Donor Forms - IRS Audit. Liability Insurance. - What is a Registered Agent ? - Board Meetings, Annual Meeting, Whistle Blowers, By laws. - Trademarking. - Anti-Money Laundering Strategy - Sanctions and Anti-Terrorist Guidelines, Conflict of Interest, Document Retention. - Programs & grant making. - Form 990. Public Support Test. - State of Incorporation, State Registration. - Events & Auctions - Saying Thank You Slides taken from the 25th March 2014 Webinar A recording of this webinar presentation is available. Please contact websupport@chapel-york.com for further information **Legal information, not legal advice**

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  • 1.Fundraising from America: Managing the Fundraising This webinar is designed for everyone involved with 501(c)(3) governance, management and fundraising, including board members, officers and development staff. This is also suitable for organisations wishing to learn the requirements and the benefits of a 501(c)(3) prior to obtaining a 501(c)(3) status. First, a quick recap on some key points from Fundraising from America: Starting up and Fundraising

2. Fundraising from America: Starting up and Fundraising [Recap] Opportunities USA is a huge philanthropy opportunity, fantastic tradition of philanthropy, highest percentage of givers and highest levels of giving in the world. Americans inside & outside the USA expect to be asked to donate to charity. Grant making Foundations expect to be asked for money and the larger foundations fund huge projects throughout the world. Americans are amazing fundraisers, will form a committee and put on an event and set very high targets for their fundraising if they really believe in your organization. 3. Fundraising from America: Starting up and Fundraising [Recap] SO NOW... If an individual taxpayer wishes to make a grant to a non-profit set up outside the USA, AND GET A TAX DEDUCTION, the donor can make a donation to an accommodating Public Charity and suggest the recipient. It can only be a suggestion. If the Public Charity doesnt have full discretion & control over the funds it becomes a conduit, and no tax deduction. The US non-profit must establish that the non-US charity is a suitable grantee under US law. 4. Fundraising from America: Starting up and Fundraising [Recap] YOUR CHOICE IS If you want to attract donations from American taxpayers for your organization you must either (a) work with an existing US Public Charity that will accept donations and consider a suggestion of a non-US charitable recipient, or (b) set up an accommodating US Public Charity to support you. 5. Fundraising from America: Starting up and Fundraising [Recap] (A) WORK WITH AN EXISTING PUBLIC CHARITY E.G. American Fund for Charities www.americanfund.info The American Fund retain a percentage of each donation to cover its overheads. Minimum retained $50. Up to $10,000 7.50%. Next $90,000 5.00%. Over $100,000 $2.5%. Maximum retained from any donation generally $10,000. Evaluation $250 | Annual Renewal $150. No management or governance obligations but no name recognition, no individual listing online on GuideStar and no individual listing by IRS etc. 6. Fundraising from America: Starting up and Fundraising [Recap] (B) SET UP A PUBLIC CHARITY TO SUPPORT YOUR ORGANIZATION You are setting up an entirely independent organization in the USA. You can refer to it as a (brother or) sister organization, but should avoid getting into the habit of calling it our .... 7. Fundraising from America: Starting up and Fundraising [Recap] REQUIRED TO SET UP: - Name - Incorporate in a US State - Identify Board of Directors - Appoint a Registered Agent - Apply for a tax exempt status (Form 1023) - Negotiate with the IRS. May take several months. 501(c)(3) status, when granted, is good for all 50 States plus DC. 8. Fundraising from America: Managing the Fundraising Act in accordance with the bylaws Ensure board members approve activities undertaken by 501(c)(3) Annually elect officers who may also be directors Ensure that State & Federal Returns are prepared and filed What are the responsibilities of Directors & Officers of a 501(c)(3)? 9. Fundraising from America: Managing the Fundraising Directors & Officers Liability Insurance Most experts think that nonprofits need "Directors and Officers" (D & O) liability insurance. Members of the board and/or officers of your nonprofit could be sued individually or as a group. Your board members are volunteers who often make difficult decisions. They should have D & O insurance to protect them. Not having such insurance can make it difficult to attract and retain good board members, who simply cannot afford to serve if they run such risk to their personal assets. 10. Fundraising from America: Managing the Fundraising More on... Board Policies Conflict of Interest The IRS requires much more information from 501(c)(3) nonprofits these days. One area that gets tremendous attention is potential financial conflicts of interest, especially in regard to board members. In fact, the IRS Form 990 now asks, specifically, for disclosure of potential conflicts of interest. What Should a Conflict of Interest Policy for My Corporate Board Include? 11. Fundraising from America: Managing the Fundraising More on... Board Policies Whistleblower Protecting whistleblowers is an essential component of an ethical and open work environment. Whistleblower protection should not be viewed only as a mechanism designed to avoid employee lawsuits. Instead, protecting whistleblowers from retaliation and encouraging constructive whistleblowing benefits nonprofits by increasing transparency and by giving management the opportunity to learn early on of unethical or unlawful practices directly from their employees rather than from the media, law enforcement, or a regulatory agency. In addition, effective whistleblower protection helps foster a work environment in which all employees are held accountable, thereby improving performance and empowering employees. 12. Fundraising from America: Managing the Fundraising Your first Board Meeting The first meeting of the board of directors of your nonprofit is an important meeting. Typically at this meeting, the Board of Directors will: -Acknowledge that the Articles of Incorporation have been filed (and approved, if that is the case) with the state in which you are incorporating. -Designate a specific bank as the official depository for corporate funds. -Elect corporate officers, usually a President, Vice President, Secretary, and Treasurer -Direct the Treasurer to pay organizational expenses -Approve the corporate by-laws -Approve the conflict of interest policy and require all board members to sign the policy. 13. Fundraising from America: Managing the Fundraising Annual Meetings For many nonprofits, having an annual meeting is a legal requirement. The organization will review its previous year's achievements, elect board members and disclose account information. The nonprofit's constitution might require public notice of the meeting and that certain items be on the agenda, such as an address from the board chair. 14. Fundraising from America: Managing the Fundraising 501(c)(3) Financial Administration: - Banks & Banking - Credit Cards - Brokerage Account for gifts of stock 15. Fundraising from America: Managing the Fundraising Stationery, Receipts and Donor Forms - Name and address of the organisation. - American paper size unique (its not decimalized). - Send a written receipt for any donations of 250 or more. 16. Fundraising from America: Managing the Fundraising Receipts for donations 17. Fundraising from America: Managing the Fundraising Licence Agreements, Registering Name / Logo Safeguard your organizations name by trade marking it (in every State). 18. Fundraising from America: Managing the Fundraising Anti-Money Laundering Strategy Dont accept significant anonymous donations. Retain the name & home address and other contact details of every donor. 19. Fundraising from America: Managing the Fundraising Sanctions & Anti-Terrorist Guidelines Charities should consider taking certain steps before distributing any charitable funds (and in-kind contributions). These suggested steps are voluntary. The purpose of these steps is to enable charities to better protect themselves from the risk of terrorist abuse and to facilitate compliance with U.S. laws, statutes, and regulations, with which all U.S. persons, including U.S. charities, must comply. Depending upon the risk profile of an individual charitable organization, adopting all of these steps may not be applicable or appropriate. When taking these steps, charities should apply a risk-based approach, particularly with respect to engagement with foreign grantees due to the increased risks associated with overseas charitable activity. 20. Fundraising from America: Managing the Fundraising Document Retention Below are the documents that need to be kept permanently - Audit reports - Checks (for important payments and purchases) - Contracts (still in effect) - Correspondence (legal and important matters) - Deeds, mortgages, and bills of sale - Depreciation Schedules - Year End Financial Statements - Insurance records, current accident reports, claims, policies, etc. - Minute books, bylaws and charter - Patents and related Papers - Retirement and pension records - Tax returns and worksheets - Trademark registrations and copyrights 21. Fundraising from America: Managing the Fundraising IRS Audit By far the least welcome interaction your nonprofit can have with the IRS is an audit -- the process where an IRS employee examines your nonprofit's tax returns, books, and records. Even for nonprofits that have absolutely nothing to hide tax-wise, the audit process can be disruptive and time-consuming, with interviews and visits to your office not uncommon. Why Would the IRS Want to Audit a Charitable Organization? Potential Penalties for Noncompliance Why Certain Groups Get Audited 22. Fundraising from America: Managing the Fundraising What is a Registered Agent? Every company incorporated in the USA is required by law to have a Registered Agent. A registered agent, also known as a statutory agent, is a business or individual authorized by a US State to receive legal notices on behalf of a corporation. The registered agent for a business entity may be an individual member of the company or (more often) a third party, such as the organization's lawyer or a service company. Failure to properly maintain a registered agent can affect a company negativel

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