Fundraising Definitions
1 Binding Agreement
Binding Agreement means an agreement with specific terms and conditions between two or more persons or entities in which there is a promise to do something in return for consideration. The existence of a binding agreement requires the following factual elements: a) an offer; b) an acceptance of that offer; c) a promise to perform; d) a valuable consideration (which can be a promise or payment in some form); e) a time or event when performance must be made (meet commitments); f) terms and conditions for performance, including fulfilling promises; g) performance."
2 Charitable Sponsorship
A Donation made to UCAR in return for receiving public recognition for the Donation, usually in association with a particular event.
3 Direct Mailing
Direct mailing, as referred to in this policy and procedure, means the dissemination of information to a list of potential Donors with the intent of soliciting Donations.
4 Donation
The making of a gift or charitable contribution payable to UCAR.
5 Donor
One that contributes to UCAR without a binding agreement.
6 Fundraising
Fundraising is the act of soliciting Donations to be used for the tax-exempt purpose of UCAR. These Solicitations are distinguished from sponsored research or other Sponsor contributions, i.e. the Sponsor receives something of value in return.
7 Fundraising Materials
All written, verbal, hypertext communications that will be viewed by a potential Donor.
8 Pledge
An unconditional promise to donate.
9 Professional Fundraiser
A person/entity paid under contract to raise donations.
10 Release of Donor Restriction
When the fulfillment of the restriction has been met, the restriction on the Donation can be released and the Donation may be treated as an Unrestricted Donation. See Overall Process #7.
11 Restricted Donation
A restriction placed on a Donation by the Donor regarding the use of the Donation for a specified purpose such as a specific meeting, program or equipment.
12 Solicitation
To approach a potential Donor with a request for a Donation.
13 Sponsor
An individual or funding institution with a binding agreement.
14 Unrestricted Donation
A Donation where the Donor does not restrict the use of the donated funds and the use of the donated funds follows the Residual Funds Guideline.
Purpose
The purpose of Fundraising within UCAR is to raise funds to be used for a special purpose. Examples of acceptable Fundraising activities include but are not limited to meetings, equipment, cost share, property, fellowships, and education. All Donations and Charitable Sponsorships are subject to this Fundraising Policy and Procedure.
Overall Process
1 Fundraising Request Form Process
The Fundraising Request Form will be used by all labs/divisions/programs to identify and confirm funds to be used for Fundraising commitments. Signatures on the form indicate that the Principal Investigator (PI), UCAR/UOP Program Director or NCAR Associate Director, entity budget office, and the UCAR Vice President for Finance and Administration (VP FA) (or her/his designee) have reviewed and concur with the proposed Fundraising plan. Upon VP FA approval, the request will be submitted to the President's Council for final approval. Upon final approval of the Fundraising activity, the VP FA will notify the lab/division/program, the Treasurer's Office, the Office of General Counsel, Sponsored Agreements, the entity Budget Office, and the Budget and Finance Office.
2 Potential Donor List
A complete list of the potential Donors for the Fundraising activity must be given to the VP FA before beginning any fundraising activity. Only potential donors listed on the Fundraising Approval Form can be contacted. VP FA must approve any additional potential donors in writing before contact is made.
3 Fundraising Materials Approval Process
Once a Fundraising activity is approved, all proposed Fundraising Materials related to that activity must be submitted to the VP FA for approval.
4 Regulatory Reporting
Both the Federal Government and the State of Colorado require reporting of any Fundraising activities. According to Colorado State Law, Colorado Charitable Solicitations Act (Title 6, Article 16, Colorado Revised Statues) and reporting requirements for IRS Form 990, the revenues and costs from Fundraising activities such as dinners, dances, campaigns, etc. must be reported separately. Also, any Professional Fundraiser or consultant for Fundraising must be registered with the State of Colorado per the Charitable Solicitations Act and it is the responsibility of the program engaging the Professional Fundraiser to confirm they are registered. Any amounts paid to Professional Fundraisers for either Solicitations, campaigns or consultation must be reported separately; and, the names, addresses, and phone numbers of the individuals must be disclosed. It is the responsibility of the Budget and Finance Office to file all required regulatory financial reporting and it is the program's responsibility who is engaging in fundraising to follow the accounting procedures outlined in this procedure to ensure that the required reporting can be filed accurately and timely. UCAR is currently registered in the State of Colorado to solicit funds; however, Solicitations outside of Colorado may require registrations in those states. States where Solicitations are being requested must be disclosed via the Fundraising Request Form to the VP FA. It is the reasonability of the program engaging in fundraising to disclose they will be soliciting donations out of state to the VP FA and the responsibility of the Office of General Counsel to review the charitable solicitation regulations in the disclosed states.
5 Written Acknowledgements
All Donors must receive a written acknowledgement from the VP FA or UCAR Officer (see IRS regulations 1.170A-1, 1.170A-13, and 1.6115.1). Example of the acknowledgement letter.
6 Accounting for Costs Associated with Fundraising
All costs associated with Fundraising must be paid from a discretionary, STORM, or other General Fund account key. Per OMB Circular A-122, fundraising costs are unallowable to either direct programs or indirect cost pools. The account key where Fundraising will be charged must be determined before the beginning of the fundraising activity. Types of costs associated with Fundraising may include, but are not limited to, employee salary and benefits, office supplies, long distance phone charges, and postage. Professional Fundraiser consultant fees, travel, meals, local mileage, etc. must be reported separately. All costs charged to the fundraising account key will bear indirect costs. A UCAR employee cannot donate their time to UCAR for the purposes of Fundraising including non-worked time and off hours. All employee time spent Fundraising must be charged to the designated Fundraising account key.
7 Accounting for Revenue and Expenses of Donated Funds
A new lab/division/program account key and contract ID are setup in the accounting system for each Fundraising campaign. The Donations are recorded as donation revenue in the account key; therefore, no budget is entered. All activities supported by the donated funds should be charged to the newly established account key and will bear indirect costs. Once the purpose of the Fundraising campaign has been fulfilled and all encumbrances are zero, donated funds available, unless otherwise restricted, may be moved to a divisional residual fund account key and be used following the Residual Funds Guideline.
8 Missed Goals for Donated Funds/ and Need to Change Use of Funds
In the event that there is a stated goal and UCAR has not been able to raise sufficient funds, the lab/division/program raising the funds has an obligation to contact each Donor and request permission to use the donated funds for the revised goal. If the Donor does not grant permission for the revised goal, the Donation must be returned.
9 Contractual/Legal Review
Sponsored Agreements reviews all documents received from Donors, including correspondence received via letter or e-mail, to determine whether they contain any contractual obligations. The Office of General Counsel will review the requirements in any state that UCAR will be soliciting Donations, as necessary.
10 Types of Fundraising Activities
The following is a list of examples of appropriate types of Fundraising activities that UCAR lab/programs/divisions may choose to use.
- Direct Mailings
- Social functions, such as dinners
- Web pages to solicit donations are acceptable as long as no endorsements are made for contributors, and the Web site is stored with a third-party hosting firm. A federally funded Web page may contain links to a Fundraising Web site.
- Advertisements in publications
Responsibilities
- The VP FA is responsible for reviewing all Fundraising material, coordinating the requests made to potential Donors, ensuring that all fundraising is done in accordance with UCAR policy and procedures, submitting Fundraising requests to the President's Council for approval, and signing donor acknowledgement letters.
- The President's Council is responsible for approving the Fundraising activity before the activity begins.
- Sponsored Agreements is responsible for the review of all documents received from the Donors including letters and e-mail correspondence.
- Laboratory/Program is responsible for completing the Fundraising Request Form, developing potential donor list and fundraising materials, verifying professional fundraiser is registered with state regulatory agency, prepare Acknowledgment Letter for VP FA to sign, verifying that revenue and expenses are recorded in the correct account keys, and to notify donors if a change is needed in the donated purpose.
- The UCAR/UOP Program Director or NCAR Associate Director is responsible for contacting each Donor in the event the stated goal is not met or the use of funds needs to be changed.
- The Budget and Finance Office is responsible for filing the required regulatory financial reporting.
- The Office of General Counsel is responsible for reviewing any state requirements UCAR will be soliciting Donations as necessary.
- Employees who are engaged in Fundraising activities are responsible for accurately charging their time and associated costs to the appropriate discretionary, STORM, or General Fund account key.
Forms
Fundraising Request Form
Acknowledgement Letter
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