Fundraising Principles, Policies and Procedures

Fundraising Principles

NEW JREUSALEM FOUNDATION INC. (NJF) requires all Lodges, chapters and members, to adhere to ethical practices when soliciting for the benefit of NJF.

NJF and its jurisdiction will be held to the highest standards of ethical conduct in fund-raising, are trained and educated in ethical fundraising standards and principles, and are provided with resources to remain familiar with professional standards.

NJF complies with all current federal and state rules regarding solicitation and collection of charitable contributions, whether specifically addressed in these Fundraising Principles, Policies and Procedures or not, as well as all future revisions to those rules.

Gift Acceptance General Policy

NJF is a 501(c) (3) tax-exempt organization.  Contributions made by donors may be eligible for a charitable contribution income tax deduction in accordance with IRS tax regulations.

NJF will accept all donations of cash, cash equivalents, marketable securities and certain gifts-in-kind. All other donations in whatever form are subject to approval in advance of acceptance by the NJF Committees.

Criteria for Acceptance:

NJF must determine if a gift meets the criteria for acceptance. In general, a charitable contribution is a gift that has three essential elements: donative intent, delivery and acceptance. The following are the general guidelines that NJF must consider in order to accept a gift.

• The gift substantially benefits NJF.

• The gift is complete, voluntary and unconditional. In addition, there should not be any substantial benefit transferred to the donor in return for the gift.

• The gift is free of substantial restrictions on the use of donated items.  (Generally, if a donor imposes substantial restrictions on the use of the donated item, the charitable deduction may be disallowed by the IRS.)

Contributions Not Accepted:

NJF cannot accept scholarship funds for which the donor selects the recipient(s).

Procedures:

In the event, there arises a question as to whether a potential donation meets the criteria listed above, the Lodges or chapters will gather information and documentation related to the contribution and present it for consideration of the NJF Committees. 

The Committees will determine if NJF will accept the gift.

When a contribution is pledged, delivery and acceptance do not occur until payments on the pledge are received. Other procedures may apply depending on the type of the gift. Please see specific NJF Gift Acceptance Policies.

A.   Gift Acceptance Policy for Cash

1.      Policy Statement

NJF will accept cash gifts.  “Cash gifts’ include cash, checks, and credit cards.  Donors may restrict the purpose of their gift, e.g. for the purpose of scholarships and should enclose documentation associated with the gift for appropriate processing.  Absent written confirmation of the donor’s intent, all gifts will be considered unrestricted.

2. Contributions

a. Cash

Generally, gifts of cash are received prior to the event.

b. Checks

Contributions made by check should be made payable as follows:

         NJF

         Attn:  NJF SECRETARY

c.  Credit Cards

NJF accepts Visa, MasterCard, Discover and American Express credit cards as payment for a contribution.

3. Procedures

a.  Timely Receipt and Acknowledgement

All cash gifts accepted and received by NJF staff will be processed and acknowledged in a timely manner in accordance with procedures developed by the NJF fund raising Committees.

b. Restrictions

If a donation is restricted for a specific purpose, a copy of the donor’s restriction will be submitted to the NJF fund raising Committees.

c.  Contribution Date

           i.      In the event a donor makes a contribution by check, the IRS has determined that the donor is eligible for a potential charitable deduction when the check is unconditionally delivered or mailed as long as the check subsequently clears the donor’s bank in due course.

Since the postmark is important in determining the date of check delivery, the NJF staff will make sure of time receipt and acknowledgement.

         ii.      The IRS has ruled that a contribution charged to a bank credit card is deductible by the donor when the amount is actually charged since the cardholder becomes immediately indebted on the date charged.

 B. Gift Acceptance Policy for Gifts-In-Kind

1. Policy Statement

NJF will accept donations of gifts-in-kind for NJF’s auction events or in response to other fundraising initiatives.

2. Specific IRS Regulations

a. Donor Value

The IRS rule is that the donor is responsible for determining the value of the silent auction item for purposes of federal tax treatment of the contribution. The rules regarding the determination of the proper amount to deduct for contributions of property are complex and their interpretation is the responsibility of the donor.

For non-cash gifts (except publicly traded securities) with a value in excess of $5,000, it is necessary for the donor to complete and file an IRS form 8283, in order to be eligible for a charitable contribution income tax deduction.  If the donor submits the form 8283 to NJF for acknowledgement signature, only the NJF President is authorized to sign the form.

If the gift has a value of $5,000 or more, the IRS requires an appraisal by a professional, independent appraiser, in order for the value of the gift to be accepted as a deduction. In all such cases, donors will be advised to consult with their tax advisor.

b. Bidder Value

The IRS rule is that if a successful bidder pays more than fair market value for merchandise, goods, or services, the amount paid that is more than the value of the item can be a charitable contribution if the bidder paid with the intent to make a charitable contribution.

3. Procedure

a. Donor Acknowledgement

NJF will include the following in the acknowledgement letter to the donor:

·         A description (but not the value) of the noncash property contributed to NJF by the donor; and

·         A statement that NJF did not provide any goods or services in consideration for any of the property contributed to NJF.

If NJF did provide goods or services to the donor, NJF will provide a description and good-faith estimate of the value of those goods and services.  All estimates of the fair market value of goods or services provided by NJF will be prepared by the NJF fund raising Committees.

b. Successful Bidder Acknowledgement

In all cases in which the successful bidder paid more than $75, NJF will inform the bidder that only the amount in excess of the value of the goods or services provided by the organization is deductible as a charitable contribution.  NJF will also include its good-faith estimate of the value of the goods or services provided to the bidder.

c.  Services Acknowledgement

Generally, charitable contribution deductions are not allowed for donated services including professional services. A donor may wish to consult a tax advisor for guidance or to discuss if there are any exceptions. Gifts of service, however, may be acknowledged for recognition purposes by NJF.

d. Raffle Tickets

In some instances, a raffle is held in conjunction with an auction event.  The IRS has consistently enforced the rule that the amount paid for the chance to win a prize is equal to the market value of the chance of winning.  As a result, there is no charitable contribution deduction allowed for purchase of a raffle ticket.

NJF is not engaged in rendering legal, tax or investment advisory services. The purpose of this information is to provide guidance of a general character only. For advice and assistance in specific cases and to determine if laws and regulations affecting a prospective contribution remain in effect, the services of a professional advisor should be obtained.