Compliance with National Standards for U.S. Community Foundations
information about funds, investments, events, and volunteering
Community Development Officer
Education Program Officer
Ducky Day in Tipton Park, and youth philanthropy
reservations, donor receipts and payments to vendors
Board of Directors
1020 W. Jefferson St.
When Groups Raise Money for Funds Administered at the Community Foundation
Thank you for your
interest in raising money for a fund established within the Tipton County
Foundation, Inc., the "community foundation.” The Foundation appreciates your
interest and motivation in raising money for worthy causes and we look forward
to working with you. As TCF is not staffed to operate public fundraising efforts
or events for the many component funds of the Foundation, your interest is
Please keep the
Foundation informed about your plans as they develop. We want to be aware
of your fundraising event in case of inquiries from the public. We count on you
to read and abide by this Donor-Initiated Fundraising Procedure.
refers to any time people are asked by spoken, written, published, or by
electronic means to contribute to a fund.
such activities as receptions, dinners and parties; walks, runs, or any
competitive activities, sports or entertainment events; raffles or other
charitable gaming, or auctions and similar “fundraisers.”
Many of these
volunteer efforts and events rely upon the use of the Foundation's tax-exempt
status to offer contributors a charitable tax deduction for their support. For
this and other reasons, it is important for community-minded individuals to
understand the provisions explained in this document. In the best interests of
Donors, fundraising groups, and the Foundation:
avoid unintended tax consequences and penalties by ensuring that fundraising
efforts comply with IRS and other governmental regulations;
ensure that Donors receive the appropriate recognition and receipts; and
protect the brand identity of the Foundation, including its logo.
There are some
types of activities to which TCF will not lend its name or that of any of its
funds. These might include events involving controversial speakers, or events
with activities considered outside the standards of good taste. The community
foundation, in its sole discretion, will determine the appropriateness of its
participation on a case-by-case basis.
An electronic TCF
logo can be provided for use on all approved printed materials. All materials
must clearly state the fund's name as the "Name of Fund, a component fund of
the Tipton County Foundation." All fundraising materials must overtly state
that funds are being raised on behalf of rather than by the
staff is generally able to provide assistance in the production of printed
materials, shirts, and other items, and may be able to help pay for materials or
postage. Also, such capacity-building support could be proposed as part of a
grant you may request from TCF.
Normally, you may not pay a for-profit fundraiser to solicit donations for a
component fund of the Tipton County Foundation. If you are considering this
course, share the contract and plans with the Foundation before making any
There are FOUR
options for fundraising for a component fund at the Foundation. Click on the
link to read more.
Solicitation of direct
tax-deductible gifts to a fund at the Foundation
by a nonprofit organization [501(c)(3)]
Proceeds from an event
for which Donors are not offered a tax deduction
Proceeds from an event for which Donors are offered a tax
Option 1: Direct
tax-deductible gifts to a fund within the Tipton County Foundation
Individuals and groups, even if
unincorporated or not registered with the IRS, may promote a fund through
various forms of passive marketing (not events) including
brochures, posters, information sessions, or a request of money through an
appeal letter to friends and associates. Be sure all promotional materials
are pre-approved by TCF.
No Cash Collections.
Cash register canisters and “passing the hat (or plate)” are expressly
prohibited. Such unsupervised, unauditable, anonymous cash collections
do not reflect the significance of the cause or the Donor’s decision to
support it, or provide a basis for follow-up.
In response to your marketing
efforts, a Donor may make a gift directly to the fund. In that case, s/he should
make the check payable to TCF with the memo indicating the name of the fund.
These individual gifts (including cash gifts that are fully documented) can be
collected by the promoting group and forwarded, or Donors can send them directly
to PO Box 412, Tipton, IN 46072. Donors will receive a gift acknowledgement
letter from the Foundation indicating that the gift is tax deductible as
permitted by law.
Gifts may be made in memory of
a departed loved one or in appreciation of a significant birthday,
anniversary, graduation, wedding, or other occasion or achievement.
If requested, fund founders or
other interested parties (such as family members of the individual
memorialized by a fund) may be notified upon receipt of direct and online
gifts. The Foundation generally will report to you the names and addresses
of Donors and donation totals but not individual gift amounts.
make a safe online credit card donation through the JustGive service at
Gifts of stocks or bonds may
also be made directly to the Foundation with indication of the fund to
Donors who contribute $250 or more
must receive a written acknowledgment from the Foundation in order to
claim a tax deduction for the contribution. Receipts are also required for
contributions of $75 or more for instances in which the Donor receives goods or
services of more than nominal value. The Tipton County Foundation prefers to
acknowledge all gifts, even if it is not legally required.
The Foundation will provide the
appropriate acknowledgment to the Donors but will require certain detailed
information in order to do so. Specifically, the organizers will need to provide
the Foundation with:
The Donor's complete name
The date and the amount of
A detailed description of
any goods and services provided in exchange for the contribution (usually
Whether the contribution
was in cash or property;
If property, a description
of the type of property and a good faith estimate of the fair market value.
Option 2: Event or
solicitation sponsored by a nonprofit organization that has 501(c)(3) status,
with proceeds to benefit a fund at the Tipton County Foundation
Organizations with their own
501(c)(3) status may sponsor a fundraising event or solicitation promoting their
organization and deposit the net proceeds into the organization's fund at the
community foundation, or another component fund with a purpose the organization
wants to support, consistent with its own mission.
The organization will issue
its own acknowledgment letters to Donors.
If you are publicly stating
the proceeds will be deposited into a fund at the Foundation, all printed
and spoken material must clearly state the fund's name as the "Name of
Fund, a component fund of the Tipton County Foundation.”
Organizations must ensure
their compliance with all applicable IRS and Indiana state laws and
regulations regarding solicitation, acknowledgment, and tax deductibility of
organization may send a single check to the Foundation for the net proceeds
of the event, with no listing of Donors.
Option 3: Proceeds from an event for which Donors are
NOT offered a tax deduction
may make a gift to a component fund of the Foundation from the proceeds of an
event for which Donors are not offered a charitable tax deduction. Fundraising
events staged independently of the Foundation but for the benefit of one of its
component funds offer these benefits and responsibilities:
Simplest method for conducting fundraising events.
Cannot use the Foundation identity, except to reference that net proceeds
will be donated to the component fund.
Gifts are not tax deductible.
Expenses of the fundraising are paid from the proceeds prior to contribution
to the fund.
is the simplest way of conducting event-based fundraising to benefit a component
fund of the community foundation. The Foundation will still need to approve the
fundraiser, but will not usually need the records to be turned in to our office.
The Foundation will need to approve all promotional and printed material in
connection with the fundraiser.
Please notify the Foundation regarding your plans at least 30 days prior to your
event so we are aware of your fundraising event in case of inquiries from the
public. A Nondeductible Fundraising Notification Form is provided by
clicking this link:
Under this option, fundraising may be conducted by an individual, group or by an
organization seeking to benefit a fund. Generally, the person or group that
plans and executes the fundraiser makes one lump sum donation (net of expenses)
to the fund. A Donor may not take a charitable tax deduction for the
contribution. The Foundation will not acknowledge the individual contributors of
the dollars and no one will receive a charitable deduction for participating in
the event. A receipt for the net amount received is sent to the organizing
person or group.
Contributions to a fundraiser are only tax deductible when they are received and
acknowledged directly by a qualified nonprofit organization.
The following requirements pertain to this fundraising option:
Stated Purpose of Fundraiser. When an individual or group plans a fundraising
event, all printed and spoken material must clearly state: "The net proceeds of
this event will be contributed to the Name of Fund, a component fund of the
Tipton County Foundation."
Tax Deduction. The individual or group may not use the Foundation's tax
exempt number in connection with the event. Contributions made as a result of a
fundraising event will not qualify as a tax deductible charitable gift to the
Foundation. No Donor may take a tax deduction for this contribution.
Insurance, Government Regulations, Contracts, and Agreements. Event
organizers are responsible for obtaining and paying for any necessary insurance,
permits, licenses, approvals, etc. or signed contracts. Please note that events
or activities that include raffles or other games of chance are regulated by
state and local governments and must be specifically reviewed and authorized by
the appropriate branch of government before proceeding.
Fundraising events often require certificates of insurance Even when events are
sponsored independently of TCF, the Tipton County Foundation, Inc. should be
listed as an a”dditional named insured.” Other than this requirement, neither
the Foundation nor the fund name may appear on any contract or agreement.
Checks Payable to Organizers. Individual participants in the event (ticket
purchasers, sponsors, golf players, etc.) should make their payments to the
organizing individual or group, not to the Foundation or the fund.
Gift Acknowledgment. The organizers may record the contributors' names and
addresses and provide a courtesy acknowledgement. The acknowledgement letter may
not include any language stating that the letter serves as a receipt for IRS
purposes or imply that the payment enjoys tax deductibility. Receipts may state:
"The net proceeds of this event will benefit the Name of Fund, a component fund
of the Tipton County Foundation."
Payment of Expenses. The organizers pay all expenses and send the net
proceeds of the fundraiser to the Foundation for addition to the fund. The
Foundation records the gift as coming from unnamed third-party Donors. Please
note the Foundation is prohibited by law from reimbursing the planner(s) for
expenses, therefore, the planner(s) must deduct expenses before sending the net
proceeds to the community foundation.
Option 4: Proceeds from an event for which Donors ARE
offered a tax deduction
may make a gift to the fund from the proceeds of an event for which the
Foundation offers Donors a charitable tax deduction.
Any individual or nonprofit group desiring to hold fundraising events for a
component fund of the Foundation AND offer tax deductions to Donors through the
community foundation, must submit a Deductible Fundraising Application Form to
the Foundation at least 90 days prior to each event for approval.
If an event is approved, the responsibilities of the Foundation will be for:
the management of such money and property as it may accept into the component
fund from Donors, other contributors and sources;
the application of income and principal to charitable uses, all in accordance
with the governing documents of the Foundation; and
providing appropriate acknowledgments to Donors. Please note that an
administrative fee may be charged if extra administrative services will need to
be expended by the Foundation.
The organizers of the fundraiser will retain responsibility for all approved
public fundraising events and matters related to them including:
Payment of all costs and expenses;
Compliance with laws; and
Reporting and other requirements of every kind such as licensing, tax payment
and liability insurance covering the Foundation.
The following requirements pertain to this fundraising option:
Payment of Expenses. The fundraising organizers will be responsible for all
expenses and maintain appropriate financial controls and records related to
fundraising events. The fundraising organizers will submit a budget to the
Foundation with their application for an event (at least 90 days in advance of
the event). How expenses will be paid (either by the fundraising organizers or
by the community foundation) must be discussed and approved by the Foundation
prior to the event. Regardless of who pays for expenses, copies of invoices and
receipts must be provided to the Foundation for our record keeping. If the
component fund to benefit from the fundraiser is a Donor-advised fund, no
expenses may be reimbursed by the community foundation.
Liability Insurance and Liability for Losses. The event organizers and the
Foundation shall assess the need to secure liability insurance for the group and
for the Foundation when a fundraising application is submitted. Insurance
coverage must be reviewed and approved by the Foundation. Activities that
present unusual risks (water or other sporting activities; events that feature
alcohol, excursions to exotic locations and transportation) may be reviewed by
the Foundation's insurance agent. If liability is not satisfactorily addressed,
such events will not be approved.
Losses. Event organizers will be responsible for all losses incurred by
events. The Foundation will not be held responsible for such losses. The
Foundation may require the event organizers to purchase a letter of credit or
provide a written personal guarantee.
Checks Payable to TCF, for the Component Fund. Checks related to the event
must be made payable to the Foundation, with the component fund noted on the
Receipt of Cash. All proceeds, checks, and cash must be delivered to the
Foundation along with an accounting of all monies received within one week after
the fundraising event. Cash receipts are to be deposited intact. That is, cash
receipts are not to be used to pay expenses and then the net cash amount
Tax Deduction / Gift Acknowledgment. The IRS has established requirements
regarding any fundraising. If the steps outlined below are not strictly observed
Donors will be denied a tax deduction, the fundraiser organizers might find
themselves unexpectedly subjected to tax on the funds they raise and either the
Foundation or the organizers might be subjected to penalty.
Donor Acknowledgements, including receipts for tax deductibility, will be
issued by the Foundation as described in Option One, as long as the individual
Donor information is provided.
Special Considerations for Tax
Please be aware that:
Contributions of services,
while appreciated, are generally not deductible.
Raffle tickets are not
tax-deductible. This must be stated clearly on the face of distributed
Rummage Sale purchases are
Auctions. Tax deductibility
of items is not automatic and must be determined in advance.
Quid pro quo. If the
fundraiser organizers provide goods or services in exchange for a donation,
certain disclosures are required to be made upon solicitation.
For example, if the group is
sponsoring a dinner, the Donor can only deduct the excess of the ticket
price above the fair market value of the dinner.
This limitation on the
deduction, known as a "quid pro quo disclosure," must be disclosed at the
time of solicitation. Disclosure on the ticket to the event is a typical
method for making this disclosure.
The Foundation must work
with the group prior to the solicitation activity, and will need information
pertaining to the event such as the ticket prices and the values of the
goods or services Donors are to receive. The organizers must confirm that
the required quid pro quo disclosures are made at the time of
Tuesday, December 03, 2013