Chapel & York LimitedFUNDRAISING FROM AMERICA WEBINAR SERIES

PART 2: Managing the Fundraising

Chapel & York Webinar:

Managing the Fundraising

[Recap] Opportunities

USA is a huge philanthropy opportunity, fantastictradition of philanthropy, highest percentage of giversand highest levels of giving in the world. 2012: $316 bn

Americans inside & outside the USA expect to be askedto donate to charity. Grant making Foundations expectto be asked for money and the larger foundations fundhuge projects throughout the world.

Americans are amazing fundraisers, will form a committeeand put on an event and set very high targets for theirfundraising if they really believe in your organization.

Chapel & York Webinar:

Managing the Fundraising

[Recap]

If an individual taxpayer wishes to make a grant to a non-profit set up outside the USA, AND GET A TAX

DEDUCTION, the donor can make a donation to an accommodating Public Charity and suggest the recipient. It can only be a suggestion. If the Public Charity doesn’t

have full discretion & control over the funds it becomes a conduit, and no tax deduction.

The US non-profit must establish that the non-US charity is a suitable grantee under US law.

Chapel & York Webinar:

Managing the Fundraising

[Recap] SO YOUR CHOICE IS……

If you want to attract donations from American taxpayers for your organization you must either

(a) work with an existing US Public Charity that will accept donations and consider a suggestion of a non-US

charitable recipient, or

(b) set up an accommodating US Public Charity to support you.

Chapel & York Webinar:

Managing the Fundraising

[Recap] (1) WORK WITH AN EXISTING PUBLIC CHARITY

E.G. American Fund for Charities www.americanfund.info The American Fund retain a percentage of each donation to

cover its overheads. Minimum retained $50. Up to $10,000 7.50%. Next $90,000 5.00%. Over $100,000 $2.5%. Maximum retained from any

donation generally $10,000. Evaluation $250. Annual Renewal $150.

No management or governance obligations but no name recognition, no individual listing online on GuideStar and no

individual listing by IRS etc.

Chapel & York Webinar:

Managing the Fundraising

[Recap] (2) SET UP A PUBLIC CHARITY TO SUPPORT YOUR ORGANIZATION

You are setting up an entirely independent organization in the USA. You can refer to it as a (brother or) sister

organization, but should avoid getting into the habit of calling it “our ....”

Chapel & York Webinar:

Managing the Fundraising

[Recap] REQUIRED TO SET UP:

Name, Incorporate in a US State, identify Board of Directors, appoint a Registered Agent.

Apply for tax exempt status (Form 1023). Negotiate with IRS. May take several months. 501(c)(3) status, when granted, is “good” for all 50 States plus DC.Chapel & York can set up a Public Charity for you. The

current cost is £8,310 plus VAT.

Chapel & York Webinar:

Managing the Fundraising

- Act in accordance with the bylaws- Ensure board members approve activities undertaken by 501(c)(3)

- Annually elect officers who may also be directors- Ensure that State & Federal Returns are prepared and filed

What are the responsibilities of Directors & Officers of a 501(c)(3)?

Chapel & York Webinar:

Managing the Fundraising

501(c)(3) FINANCIAL ADMINISTRATION:

- Banks & Banking - Credit Cards

- Brokerage Account for gifts of stock

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Managing the Fundraising

Stationery, Receipts and Donor Forms

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Receipts for donations

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Managing the Fundraising

IRS AUDIT

DIRECTORS’& OFFICERS’ LIABILITY INSURANCE

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Managing the Fundraising

WHAT IS A REGISTERED AGENT?

A person authorized by a US State to receive legal notices on behalf of a corporation

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Managing the Fundraising

ANNUAL MEETING

- Appointment of Directors, Officers - By Laws

- Board Meetings, Minutes- Whistle Blower

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Managing the Fundraising

LICENCE AGREEMENTS, REGISTERING NAME / LOGO

Safeguard your organization’s name by trade marking it (in every State).

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Managing the Fundraising

ANTI-MONEY LAUNDERING STRATEGY

Don’t accept significant anonymous donations.

Retain the name & home address and other contact details of every donor

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Managing the Fundraising

SANCTIONS & ANTI-TERRORIST GUIDELINES

Conflict of InterestDocument Retention

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Managing the Fundraising

PROGRAMS & GRANT MAKING

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Managing the Fundraising

Form 990:

990 Postcard income under $50,000;

990EZ receipts under $200,000 & assets less than $500,000;

990 receipts $500,000 or more

Chapel & York Webinar:

Managing the Fundraising

PUBLIC SUPPORT TEST

2% of total income over 5 years from individuals, companies, private foundations public charities and state or federal government plus interest from investments is calculated. If the total given by any individual, company or private foundation or earned from interest is more than 2% the excess is disregarded. A computation is

then made which consists of a fraction, the numerator of which is all the donations minus the disregarded excess, divided by the denominator which is all the donations received. The remainder must be 33.3% or more for the organization to be a public

charity.

- Unusual Grants, 10% Facts & Circumstances.

Chapel & York Webinar:

Managing the Fundraising

STATE OF INCORPORATION

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Managing the Fundraising

STATE REGISTRATION

Most States have some requirement for 501(c)(3)s to register if they are planning to operate or to solicit

charitable gifts from people or organizations resident in or located in the State. All States have different rules.

Chapel & York Webinar:

Managing the Fundraising

EVENTS

Sales Tax

US non-profits are exempt from sales tax in some US States

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Managing the Fundraising

AUCTIONS

Donors (successful bidders) may take a tax deduction on the difference between the fair market value and what

they pay BUT they must know the fair market value before they bid.

Chapel & York Webinar:

Managing the Fundraising

SAYING THANK YOU

Chapel & York Webinar:

Managing the Fundraising

Today’s webinar presenter was:

David Wickert: +44 1342 871915david.wickert@chapel-york.com

Further information about all Chapel & York’s servicescan be found at www.chapel-york.com

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