9/15/2020 FINANCES – KEY INITIAL CONCEPTS 1 Questions People Ask • How much support do you need? • When will you be able to leave? • How can I contribute to your Support? • Are contributions to your support tax- deductible? 2 Finance Office Contacts • Receipting, commitments, donor questions give@ideasworld.org or nadine.petersen@ideasworld.org • Expense reports - expenses@ideasworld.org or joey.magnotta@ideasworld.org • Payroll, finance reports, general finance questions – ron.larson@ideasworld.org 3 1
9/15/2020 Regulations • 501(c)(3) public charity = tax deductible • Registered nationwide for charitable solicitation • Use of support subject to regulations; for IDEAS’ tax-exempt purposes • Deputized Support fund-raising model 4 Deputized Support Fund-raising Charitable contributions 1. Donor intent must be to support IDEAS’ charitable purposes ‘Donor Preferences’ include specifying an approved associate or project 2. Charity must exercise control and discretion Support budget approval process demonstrates control over use of funds 5 Deputized Support Fund-raising IDEAS Receipts include this disclosure: “No goods or services were provided in consideration of this contribution. Per US Treasury ruling, tax-deductible contributions are made with the understanding that the donee organization has complete control and administration over the use of donated funds.” 6 2
9/15/2020 Deputized Support Fund-Raising Incorrect language • Thank you for ‘your gift to me’ • ‘Support me’ by sending gifts to IDEAS Acceptable language • Thank you for ‘your contribution to IDEAS for our support fund / our work’ 7 Budget Concepts • A roadmap of planned use of funds • Approval demonstrates IRS required discretion and control over use of funds • Unplanned items require project operations approval prior to use of funds 8 Support Budget - Responsibilities • Input from associate, partner project leaders, and IDEAS project operations • Associates must ‘own’ budget • Finance Dept. maintains and implements • “Working Document”- Changes made as needed, with project operations approval 9 3
9/15/2020 Initial Assignment Budget Categories • One-Time expenses • Monthly Salary (taxable) • Monthly Work expenses & benefits • Monthly IDEAS Fee 10 Departure clearance Full support: • One-time expenses raised (or committed) • Monthly support needs met –Support commitments plus –‘Excess’ one-time gifts 11 Contribution Methods • Automated Monthly giving – direct debit or credit card – Online, phone • Donor’s bank Bill Pay service – contact finance office for account number • Mailed Check (response form) • One-time gifts • Stocks, mutual funds – one-time or repeat (contact Ron Larson) 12 4
9/15/2020 Receipts for All Contributions • E-Mail receipt for online gifts, automatic gifts & bill pay (need donor email address) • Mailed receipt, return envelope, return coupon for mailed gifts • No ‘bills’ sent (encourage automatic contributions if donors afraid they will forget) • Annual contribution statement (mailed) – January 13 Support Commitments • Support Commitments – ‘Intentions to Give’ not ‘Pledges’ • Recurring gifts (direct debit / credit card) • Entered using information from donors (use response cards) • Please notify us if incorrect or missing commitments (give@ideasworld.org) 14 Contributions - Notes • Check must be made to IDEAS or International Development & Educational Associates • Do Not Mail Cash • Donor Preference (name of Associate or Project) should not appear on the check. Include response form or separate note. 15 5
9/15/2020 Contributions - Note s • Gifts to Donors – Unsolicited “Token” Gifts are acceptable – 2020 limit $11.10 (per IRS) • No ‘Split Interest’ Gifts “For your donation of $25 receive ____ and for your donation of $100 receive _____.” • Entertainment / Fund-raising costs acceptable can be one-time expenses (include in budget) 16 Personal Gifts Not Accepted • Per IRS: gifts because of your position or work are taxable income • IDEAS does not accept non-tax-deductible personal gifts for IDEAS personnel • Family members & close personal friends may give gifts directly to personnel (i.e. Christmas gifts, Birthday gifts). • All other gifts treated as support. May be added to monthly salary. 17 IDEAS Salary • Paid at end of month • Based on budget • ‘Paperless’ payroll - direct deposit to US checking account (we require your banking info) • Wire transfer to foreign bank account possible in some cases 18 6
9/15/2020 Salary and Taxes • Associates are W-2 EMPLOYEES • For pay when in US: State taxes (income tax withheld, unemployment or disability possible) & workers compensation • Foreign wages: no state income tax withholding • Form 673: no Federal withholding if expect to qualify for Foreign Earned Income Exclusion (www.irs.gov) • IDEAS can coordinate your tax return preparation 19 Employee Benefits for Associates • Group medical insurance • Group life insurance (optional – initial assignment) • IDEAS 401k Plan (Optional – initial assignment) 20 Expenses • Work Funds paid when expense reports submitted • Use the Excel Expense report template • Weekly payments by EFT (currently Tuesdays) • Email to expenses@ideasworld.org • Receipt copies for individual expense $75 or greater (email, fax, mail – must notify before processed) • Advances / Wires possible in some cases • See Operational Policies – finance section 21 7
9/15/2020 Finance Reports • Monthly Reports by email (5 th to 10 th ) – Gift report – Commitment report – Monthly summary (Income, Expenses, Balances) – Expense detail reports – Miscellaneous Accounts –advances, etc. • Wage statements and W2 online 22 Finance Reports • We don’t read the reports we send you ! • Please notify us: – Donors unknown to you – Amounts or transactions you don’t understand or that you didn’t authorize – Balances that don’t look right 23 Finance Reports • We can prepare reports that give you additional information on request – YTD and monthly summary – Export of donor or gift information that you can import into other software Contact ron.larson@ideasworld.org 24 8
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