Policy and Procedure Regarding Fundraising for Funds
On behalf of the Delaware County Foundation and our Board of Directors, we would like to express our appreciation for selecting the Foundation as the steward of your charitable Fund.
Often, persons or groups that want to increase the amount of money in a Fund at the Delaware County Foundation consider some form of fundraising to benefit the Fund. This fundraising might include requesting money through an appeal letter to friends and associates or organizing a fundraising event.
While the Delaware County Foundation encourages you to increase your Fund, we do not have the staff to raise funds on behalf of others. To help you understand the ways you can do this and to clarify the role of the Delaware County Foundation in such endeavors, we are providing the following information.
The most common way to raise funds is to ask friends, family, and associates to support the Fund by making a donation to the Fund. They can make a donation by:
- Writing a check to the Delaware County Foundation with the Fund name included in the memo line and sending it directly to the Foundation.
- Using customized donation envelopes which can be provided for your use that include the name of the Fund and are addressed to the Foundation.
- Making a donation through the Foundation’s website: www.delawarecf.org
Each gift received by the Foundation is acknowledged by letter to the donor. The Fund representative may, if desired, receive copies of the acknowledgement letters or a list of donors. Donations received are also included on the quarterly fund statements to Fund representatives and can be viewed from the “Fund Advisor” portal of the Foundation website.
What are the ways that individuals or groups use fundraising to build the assets of their fund?
Ways Funds of the Foundation receive money from a fundraising event are:
- Proceeds from an event/solicitation sponsored by a 501(c)(3) organization with a fund at the Delaware County Foundation
Organizations that have a 501(c)(3) charitable classification from the Internal Revenue Service sponsor a fundraising event/solicitation and deposit the proceeds (which may include individual donor checks) into their nonprofit organization’s account. The organization issues its own acknowledgement letters, and the donor receives a charitable deduction for his/her gift, because the sponsoring organization has its own charitable tax status. In these circumstances, these Policies and Procedures are not applicable. Your nonprofit organization is responsible for all expenses and acknowledgement letters. Your nonprofit organization sends these collected funds to the Delaware County Foundation with instructions to add the funds to the balance in the Fund.
- Proceeds from an event/solicitation for which donors were not offered a tax deduction
In this case, the net income from an event is forwarded to the Foundation and designated for a particular Fund. The Foundation has neither endorsed the activity nor been involved in its planning or execution. The Foundation does not send acknowledgements to the individual contributor, and no one receives a charitable deduction. A receipt for the net amount received is sent to the organizing group. Any published materials related to the fundraising event should have the following wording: The net proceeds of this event will be contributed to the XYZ Fund of the Delaware County Foundation.
- Proceeds from an event/solicitation for which the individual contributions come to the Delaware County Foundation and are acknowledged by the Foundation
When a fundraising event/solicitation is organized to benefit a Fund of the Foundation and participants are told to make their contributions to the Delaware County Foundation, the Foundation plays a larger role. The IRS, state authorities, and the local community consider this an event of the Foundation. In this case, the IRS and the State of Ohio will hold the Foundation responsible for providing appropriate receipts and oversight. However, the Foundation cannot manage the event nor provide a way for fund raising event expenses to be taken from the Fund.
What is the first step in undertaking a fundraising event for a fund at the Delaware County Foundation?
If you are considering a fundraising event, solicitation, or project of any kind for a fund of the Delaware County Foundation, you must discuss with the Foundation in advance. You can call, send a letter, or arrange a meeting at your convenience.
If your organization is not a 501(c)(3) organization and if it is determined that only the net proceeds of the event will come to the Fund, and no charitable deductions for individual contributors are desired, then no further action is needed.
If you are considering an event or solicitation that involves using the Delaware County Foundation’s tax status to offer donors a charitable deduction for their participation, and the event includes the name of the Foundation, then please contact us to review with you the Foundation’s guidelines.
Your cooperation in adhering to these guidelines will ensure that your organization and donors will be entitled to claim a charitable deduction for their contributions; and the Foundation will be protected from penalties for failing to make proper solicitation disclosures.