Nonprofit organizations often receive and solicit donations to supplement their programs and needs. It is important for the organization to have written policies and controls in place for fundraising, resembling policies in effect for the organization’s other transaction cycles.
What should be included in the fundraising policy?
- The fundraising policy should specify who in the organization can solicit funds and how. It should also address how donors will be acknowledged with letters, receipts and other recognition.
- Unwanted or noncash donations should also be addressed in the policy. The organization should have the right to refuse any donation that isn’t in line with its policy or doesn’t look favorable with its mission or values.
- The nonprofit may want to distinguish how it will treat or sell specific noncash donations it receives. Items to consider are publicly traded securities, tangible personal property, life insurance policies, real property, etc.
- Finally, the policy should address special events specifically – how they are organized, how volunteers will be utilized and monitored, and how to handle funds received for cancelled events.
Contact your Yeo & Yeo professional if you need assistance.