Policy on Public Fundraising for Component Funds

Often fund holders of the Community Foundation of Central Georgia, Inc. (CFCG) want to raise money to increase the size of their funds by soliciting members or donors, or by conducting fundraising events. Sometimes such fund holders want assistance from CFCG. The policies outlined below explain how fund holders and CFCG can cooperate in these fundraising efforts. The policies are designed to protect fund holders, CFCG, and the donors. They are intended to be helpful guidelines, but CFCG may vary from them if circumstances require.

(I) In General

(A) Contact us in advance. Then we can plan together how to cooperate in the fundraising, whether it be solicitation of donors, membership campaign, or fundraising events. This is helpful, for example, in applying for funding from other foundations, since it is necessary for CFCG to furnish a letter of compliance to the other foundation. It is also especially important for fundraising events for which a written application is required (see attached Application for Fundraising Event).

(B) CFCG’s Name and Logo. All use of CFCG’s name and logo in advertising and promotion must be approved in advance by CFCG’s President. All materials should clearly state that funds are being raised on behalf of rather than by the Community Foundation of Central Georgia. CFCG will not lend its name nor that of any fund to the following activities: events that might endorse or oppose political candidates, travel programs, and activities involving the sale of personal property.

(C) Mailing. As a service to our fund holders, CFCG is available to help in the mailing of solicitation materials. CFCG cannot provide its own mailing list of donors. All expenses, including postage and paper, will be paid from the fund.

(D) Monies Received. CFCG may receive checks from donors and will deposit the checks. CFCG prefers that all cash and coins be converted into a money order or cashier’s check prior to bringing the contribution to the Foundation’s office.

(E) Quid Pro Quo Disclosure. Rules under the Internal Revenue Code provide that where a donor makes a donation and receives an economic benefit in the form of goods or services, only the contribution in excess of the value of the goods or services is a charitable contribution. Both the fundraiser and CFCG are required to determine the fair market value of the goods or services in advance of a solicitation, and to state in the solicitation and in tickets, receipts, or other documents, how much is deductible, and how much is not (the so-called, “quid pro quo” disclosure). An exception to the “quid pro quo” disclosure is that benefits can be disregarded if they are “token items” bearing the organization’s name or logo (bookmark, calendars, key chains, mugs, posters, tee shirts, etc.) and if the cost of the items received by a donor, in the aggregate, is less than $7.

Another exception is stated under II A, Membership Campaign, below. An example of a “quid pro quo” disclosure form is the attached Sponsorship Form.

(F) Thank you notes. CFCG will write thank you notes to donors, including the quid pro quo notice where applicable. If the fundraiser wishes to write thank you notes to donors in addition to the notes written by CFCG, neither the gift amount nor tax information can be included; otherwise, there could be duplicate receipting and a duplicate tax deduction.

(G) Fundraising expenses. The fundraisers shall be responsible for the payment of all costs and expenses associated with the fundraising event, unless discussed and approved by CFCG prior to the fundraising. The fundraisers shall be responsible for all losses incurred for events. Individuals may not be reimbursed for expenses from donor advised funds; however, CFCG may provide a gift acknowledgement for individuals to deduct the expense as an out-of-pocket expense incurred in undertaking a charitable activity.

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(II) Guidelines for Specific Types of Fundraising

(A) Membership Campaign. Another exception to the “quid pro quo” disclosures mentioned in I E above is that the following annual membership benefits can be disregarded: benefits offered to a donor in exchange for a payment of $75 or less per year that consist of any rights or privileges that a donor can exercise frequently during the membership period, such as free or discounted admission to the organization’s facilities or events, free or discounted parking, preferred access to goods or services, and discounts on the purchases of goods and services. Annual memberships that offer other goods or services must meet the “quid pro quo” disclosure requirements found under I E. An example of a quid pro quo disclosure is the attached Sponsorship Form.

(B) Fundraising Event. Fundraisers must complete the Application for Fundraising Event and submit to CFCG for approval prior to beginning plans for the event.

CFCG will only accept net proceeds from an event and contributions that are considered a “sponsorship” for the event. CFCG will only accept the net proceeds from the sale of tickets and goods, such as t-shirts, prints, baked goods, and raffle tickets. CFCG will not handle ticket sales for an event. Any published materials related to the event should use the following wording: “The net proceeds from this event will be contributed to the _________ Fund of the Community Foundation of Central Georgia, Inc.”

(C) Liability insurance. The fundraiser must furnish evidence of a general liability policy covering the fundraising event with limits of no less than $1,000,000 and showing that CFCG is listed as an additional insured.

CFCG can pull fund contribution data to assist with mailing lists and provide resources for purchasing invitations, equipment rental, caterers, and other helpful event planning information. If assistance is requested of Foundation staff above and beyond this type of support, a fee can be arranged between the fundraiser and the Foundation.

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Adopted: May 11, 2006
Revised: November 16, 2006