Donor Initiated Fundraising Policy

Donor Initiated Fundraising Policy and Application

The Community Foundation generally does not allow its name to be used in connection with fundraising being done by others, but does make exceptions, in some cases, for fundraising intended to increase the assets of a fund. In such cases, the Foundation must approve your project, in writing, before any use of the Foundation’s name is made and before any formal fundraising takes place. Also, while the Foundation appreciates your efforts, its staff does not do fundraising for individual funds.

These policies and guidelines have been developed to protect you and your fundraising group to assure a successful outcome for both you and the Community Foundation.

Foundation Approval of Fundraising Events and Projects

Before undertaking any fundraising events or producing any materials which contain the Foundation’s name, you must have written approval from the Foundation. To do so, you should submit the following documents to the Foundation:

Fundraising Application. On this form, provide the Foundation with a brief project description, your timeline for completing the project, the audience to whom you will be promoting the project, your administrative expectations of the Foundation, and any other relevant information.

Project Budget. You must submit a project budget. The budget should include the expected revenue to be received, the names, addresses and telephone numbers of the vendors you plan on using and projected amount to be expensed.

We would like to work with you to have the application and budget to the Foundation prior to any beginning efforts. The project will be evaluated on its appropriateness, feasibility, practicability and potential liability concerns.

Financial Responsibility

The Foundation will not pay fundraising expenses from component funds except to the extent that cash receipts from fundraising events exceed such expenses, nor will the Foundation pay any such expenses in advance of collecting equivalent receipts.

The expenses of the event are the responsibility of those coordinating it, and the Foundation will not approve the use of any materials which state, suggest, or could be read to suggest that the Foundation has any responsibility for the payment of any such expenses. All invoices and receipts must be provided to the Community Foundation for our record keeping.

General Guidelines

If the event/project is approved, you and/or your fundraising group should proceed according to the Foundation’s guidelines:

  1. All uses of the Foundation’s name in advertising and promotion must be approved in advance by the Foundation. Materials must state clearly that the funds are being raised on behalf of, rather than by, the Foundation. Solicitation materials also must disclose the name and address of the Community Foundation, the purpose for which the solicitation is made and the fact that copies of the Foundation’s financial statements will be provided upon request.
  2. The Foundation will manage any gifts it may accept from donors and other sources, ensuring the income is directed to charitable uses and are in accord with the governing documents of the Foundation and the individual component fund. 
  3. The IRS has imposed strict requirements which impact any fundraising. The Foundation will provide the appropriate acknowledgment to donors in order for them to claim an income tax charitable deduction. The fundraising group will need to provide the Community Foundation with:
  • The Donor’s complete name and address.
  • The date and amount of the contribution.
  • 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.
  • A detailed description of any goods and services provided in exchange for the contribution.

Contributions of services, while appreciated, are not generally deductible. If goods or services are provided in exchange for a donation, you must work with the Foundation to determine the fair market value of these goods or services that are being offered, you will need information pertaining to the events such as the ticket prices and the values of the goods or services donors are to receive. You must disclose the value of this benefit to the donor upon solicitations. For example, if your event has a $75 ticket price and the ticket price includes a dinner valued at $25, the invitation might read, “The tax deductible portion of each ticket is $50 dollars.”

Fundraising Group’s Responsibilities:

  1. Checks must be made payable to the Component Fund of the Foundation or to the “Community Foundation for the Alleghenies” with the Component Fund in the memorandum if tax deductions are expected. Contributions can be sent to the Community Foundation directly or checks and cash related to an event on a specific day (ex: golf outing) can be collected by the project coordinator and delivered to the foundation along with an accounting of all monies received within one week after the fundraising event. Deliver all checks and cash receipts intact. Please do not net expenses against any cash receipts by paying them in cash.
  2. Payment of all costs and expenses. Request for payment of expenses should be made 5-10 business days after the event and should be accompanied by all original bills. No bills will be paid until the Foundation has received written confirmation from the project coordinator that all bills have been submitted to the Foundation.
  3. Maintain financial controls and records. For tax receipt purposes all contributions must be made by check or credit card with the name and address of the donor listed except when collecting cash for ticket sales, raffles, etc.
  4. Responsibility for obtaining all required permits and approvals and for compliance with all laws relating to the event. All contracts, rental agreements and similar documents must be reviewed with Foundation staff and legal counsel as applicable.
  5. Reporting and other requirements of every kind such as licensing, tax payment and liability insurance covering the Foundation.
  6. All events connected with the Foundation must have proof of insurance for liability purposes. If the organizers obtain liability insurance, the Foundation must be named as an “additional” insured on the policy. The Foundation may be able to secure a certificate of insurance for your event if you are not an organized entity.

The fundraising group will be responsible for all losses incurred by events. The Foundation will not be held responsible for such losses. The Foundation may require the fundraising group to purchase a letter of credit or provide a written personal guarantee.

Solicitation of Funds for Charitable Purposes Act

According to Pennsylvania’s Solicitation of Funds for Charitable Purposes Act, the following information must be available at all fundraising events:

  1. The name of the Charitable organization and the state in which it does business: Community Foundation for the Alleghenies, Pennsylvania.
  2. A description of the purpose for solicitation:  The _________________Fund is a component fund at Community Foundation for the Alleghenies. The _____________Fund at Community Foundation for the Alleghenies is raising dollars today for the purpose of__________________.
  3. Inquiries can be addressed to:
    Carol Stern, Senior Director of Donor Relations
    Community Foundation for the Alleghenies
    116 Market Street, Suite 4
    Johnstown, PA 15901
    (814) 536-7741
  4. The amount of the contribution deductible as a charitable contribution by federal law:
  5. It is vital to determine the value of the benefit received by the donor for his or her contribution. This amount is not deductible for federal income tax purposes.
  6. Written financial statements can be obtained from the Community Foundation.
  7. All printed solicitations, written confirmations, receipts, or reminders of contribution must conspicuously printed verbatim:

“The official registration and financial information of The Community Foundation for the Alleghenies may be obtained from the Pennsylvania Department of State by calling toll free, within Pennsylvania, 1 (800) 732-0999. Registration does not imply endorsement.”

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