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HomeMy WebLinkAboutExhibit 2EXHIBIT B Proposed Fundraising Event/Project Budget Prior to your fundraising event and/or project, you will need to provide Dade Community Foundation with a budget including information on the fair market value of the goods and services a donor will receive when they participate in your event/project, i.e., the value of what they will receive in return for their contribution. (For example, the fair market value of a dinner they are served.) We reconunend you provide a proposed budget listing the event/project anticipated revenues and expenses (including donated items to the event and their value) and the number of people in attendance. If this proposed budget is starkly different from what actually occurs, a subsequent report to the Foundation will be required listing the actual revenue/expenses and number of people attending and making contributions. The checks/contribution amounts deposited in your charitable fund need to correspond with the information provided. In developing the proposed event/proj ect budget, we recommend the format provided below: Expected Revenue $ Expected Expenses $ Net Proceeds (Revenue less Expenses) $ Number of Event/Project Participants/Donors I. Please describe and list sources of event/project revenue (Attach separate sheet if necessary) $ $ II. Please describe and list sources of event/project expenses (Attach separate sheet if necessary) III. Please describe and list donated goods/services to your event/project and their fair market value (note: fair market value is the amount the item/service would be worth if sold to the general public in the ordinary course of trade) (Attach separate sheet if necessary) IV. Will you be paying any individual for services from this fund? Yes No If yes, whom and explain service(s) rendered: V. Description of event/project and contribution levels. (Please detail what benefits) a donor receives when they contribute to your event/project.) Are there different benefits associated with different levels of contribution? What does a corporate sponsor receive for contribution and are there different benefits for corporate sponsors? (Attach separate sheet if necessary.) A few additional points to consider **A contribution/gift to your charitable fund is a voluntary transfer of money or property that is made with no expectation of a commensurate return. If a donor will receive a financial or economic benefit in return for making a contribution/gift (dinner and entertainment, etc.), the payment is not a tax deductible charitable contribution except to the extent that it exceeds the fair market of the benefit. Therefore, for the Foundation to properly acknowledge charitable contributions to your fund from a fundraising event, the information in the proposed/actual budget and the corresponding value assigned to the contributions will need to be provided. Without this information, the Foundation will not be able to appropriately acknowledge the donor for his/her charitable contribution to your charitable fund. **Items donated for your fundraising event(for example, food and/or cases of soft drinks) must be assessed at fair market value and included in the calculation determining the value of the benefit received by the donor for his/her contribution to your fund. **If your fundraising event/project includes a charity auction, you will need to provide the Foundation with a separate listing of the items auctioned, their fair market value, the successful bid amount and donor information. If a donor successfully bids for an item at a charity auction, and the bid exceeds the fair market value of the item, he or she may deduct the excess of the bid over the fair market value as a charitable contribution. Again, the Foundation will need to be provided this information in order to appropriately acknowledge the donor. EXHIBIT C DADE COMMUNITY FOUNDATION POLICY REGARDING PUBLIC FUNDRAISING FOR COMPONENT FUNDS OF THE FOUNDATION Thank you for expressing your confidence in Dade Community Foundation by establishing a Fund with us. Dade Community Foundation is pleased to work with you in helping develop your Fund. The chief responsibility of the development office of Dade Community Foundation is to raise endowment through acquisition of major and planned gifts. The Foundation, unfortunately, does not have the staff to operate public fundraising events for its component funds. In establishing a Fund at Dade Community Foundation, there may be times when you would like to organize a fundraiser to raise dollars toward this Fund. Dade Community Foundation most often receives the net income from a fundraiser and does not acknowledge the individual contributors of the dollars. However, there may be times when individual contributors to a fundraiser would want to receive a charitable deduction. This policy statement has been developed by Dade Community Foundation to help guide those of you planning fundraising events and solicitations (we will call you Fundraising Groups). When Fundraising Groups conduct fundraising activities and solicitations, on behalf of component funds at Dade Community Foundation, you must keep in mind that for tax purposes such fundraising is being done on behalf of Dade Community Foundation. A number of significant tax and accounting issues will arise. For example, it is important that these activities be conducted under the observation and fiscal guidance of the Foundation to ensure that Donors to the Fund are entitled to the appropriate tax deductions, to protect the Fundraising Groups from unintended tax consequences to themselves, and to determine that Dade Community Foundation is not exposed to penalties for failing to make proper solicitation disclosures. These requirements are designed to protect Donors and the Fundraising Groups fundraising for a component Fund at Dade Community Foundation. We appreciate your cooperation in fulfilling these requirements. Foundation Approval of Events Before undertaking public fundraising events, the Fundraising Group will define in advance to the Foundation each program, event or other effort to raise money for the Fund. The Fundraising Group should submit a written proposal and attain advance approval from Dade Community Foundation. The Fundraising Group will then proceed according to the Foundation's guidelines. All uses of the Foundation's name in advertising and promotion must be approved in advance by the Foundation. All fundraising materials should make clear, where applicable, that funds are being raised on behalf of rather than by Dade Community Foundation. An administrative fee may be charged if extra administrative services will need to be expended by the Foundation. Responsibilities of Dade Community Foundation The responsibility 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 accord with the governing documents of the Foundation; and • providing appropriate acknowledgments to Donors. Responsibilities of Fundraising Group The Fundraising Group will retain responsibility for all 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 (see below) covering the Foundation. Payment of Expenses The Fundraising Group will be responsible for all expenses and maintain appropriate financial controls and records related to fundraising events. The Fundraising Group will establish a budget for submission to the Foundation prior to all events. How expenses will be paid (either by the Fundraising Group or by Dade Community Foundation) must be discussed prior to the event. Regardless of who pays for expenses, copies of invoices and receipts must be provided to Dade Community Foundation for our record keeping. Designation of Checks and Receipt of Cash Checks related to the event must be made payable to the component Fund of the Foundation. 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 deposited. 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. Tax Requirements and Acknowledgments The IRS has imposed strict requirements which impact any fundraising. If the steps outlined below are not taken, Donors will be denied a tax deduction; the Fundraising Group might find themselves unexpectedly subjected to tax on the funds they raise; either Dade Community Foundation or the Fundraising Group might be subjected to penalty. Donors who contribute $250 or more will need a written acknowledgment from Dade Community Foundation in order to claim a tax deduction for the contribution. Dade Community Foundation will provide the appropriate acknowledgment to the Donors, but will require certain detailed information in order to do so. Specifically, the Fundraising Group will need to provide Dade Community Foundation with: 1) The Donor's complete name and address; 2) The date and amount of the contribution; 3) Whether the contribution was in cash or property; 4) If property, a description of the type of property and a good faith estimate of the fair market value; and 5) A detailed description of any goods and services provided in exchange for the contribution. Contributions of services, while appreciated, are not generally deductible. If the Fundraising Group provides 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. Dade Community Foundation will assist the Fundraising Group in determining the fair market value amounts and the appropriate disclosure language for the event. However, Dade Community Foundation will have to 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 Fundraising Group needs to see that the required quid pro quo disclosures are made. Raffle tickets are not tax-deductible. This must be stated clearly on the face of distributed tickets. Rummage Sale purchases are not tax-deductible. Auctions - Legal counsel for the Foundation shall review, on a case-by-case basis, any proposed ideas for an auction. At that time, tax deductibility of items will be determined. Liability Insurance and Liability for Losses The Fundraising Group will contact the Foundation prior to having a fundraising event to assess the need to secure liability insurance for him or herself and for the Foundation. Insurance coverage must be reviewed and approved by the Foundation. 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 Contributions Act According to Florida's Solicitation of Contributions 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: Dade Community Foundation, Florida 2. A description of the purpose for solicitation: The Fund is a component fund at Dade Community Foundation. The Fund at Dade Community Foundation is raising dollars today for the purpose of 3. Inquiries can be addressed to: Ruth Shack, President Dade Community Foundation 200 South Biscayne Boulevard, Suite 505 Miami, FL 33131 305.371.2711 4. The amount of the contribution deductible as a charitable contribution by federal law: 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. 5. Written financial statements can be obtained from Dade Community Foundation. (All information regarding funds raised and event expenses must be given to Dade Community Foundation within one week of the fundraising event, so that we can respond in a timely manner to requests for information.) 6. All printed solicitations, written confirmations, receipts, or reminders of contribution must state in capital letters: "A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL-FREE (1-800-435-7352) WITHIN THE STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE." EXHIBIT D Approved Insurance Coverage(s) Commercial General Liability (Primary & Non Contributory) A. Limits of Liability Bodily Injury and Property Damage Liability Each Occurrence $1,000,000 General Aggregate Limit $ 2,000,000 Products/Completed Operations $ 1,000,000 Personal and Advertising Injury $1;000,000 B. Endorsements Required City of Miami included as an additional insured (CG 2010 11/85) or Equivalent version Contingent Liability (Independent Contractors Coverage) Contractual Liability Waiver of Subrogation Premises & Operations Liability II. Business Automobile Liability A. Limits of Liability Bodily Injury and Property Damage Liability Combined Single Limit Any Auto/Owned Autos/Scheduled Including Hired, Borrowed or Non -Owned Autos Any One Accident $ 1,000,000 B. Endorsements Required City of Miami included as an Additional Insured Employees as insureds III. Worker's Compensation Limits of Liability Statutory -State of Florida Waiver of subrogation Employer's Liability A. Limits of Liability $100,000 for bodily injury caused by an accident, each accident. $100,000 for bodily injury caused by disease, each employee $500,000 for bodily injury caused by disease, policy limit IV. Crime Coverage A. Limits of Liability Employee Dishonesty including Forgery and Alteration $250,000 City of Miami listed as loss payee on this coverage The above policies shall provide the City of Miami with written notice of cancellation or material change from the insurer not less than (30) days prior to any such cancellation or material change. Companies authorized to do business in the State of Florida, with the following qualifications, shall issue all insurance policies required above: The company must be rated no less than "A" as to management, and no less than "Class V" as to Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent. All policies and /or certificates of insurance are subject to review and verification by Risk Management prior to insurance approval.