A-to-Z Index

JAMES MADISON UNIVERSITY FOUNDATION, INC.

POLICIES AND PROCEDURES

SPECIAL-EVENTS FUNDRAISING PROCEDURE

 

POLICY # G-102

DATE: February 18, 1999

APPROVED: April 17, 1999


POLICY: The James Madison University Foundation, Inc. accounts for approved Special Fundraising Events that are designed to raise funds through "quid-pro-quo" transactions.


These procedures prescribe requirements and government regulations for the solicitation and acceptance of gifts for special-event fundraising programs when the James Madison University Foundation, Inc. accounts for the event's revenues and expenses. Some examples are dinners, theater programs, golf tournaments, and auctions. Special-event gifts are subject to Internal Revenue Service regulations regarding "quid-pro-quo contributions". The James Madison University Foundation, Inc. is responsible to comply with all charitable gift laws.

 

1.  All literature must be submitted to the James Madison University Foundation, Inc. for review before announcing the event or it will be impossible for the James Madison University Foundation, Inc. to accept the funds.

 

2.  All solicitation and/or receipt literature must identify the gift and non-gift portion. The non-gift portion represents the fair market value, not the cost, of any benefits provided in consideration for the non-gift portion. All benefits have a fair market value even if benefit-costs are paid by a sponsor. In order to determine the fair market value of the benefit, the following items should be evaluated and a value placed on them:


Meal _____________________
Lodging __________________
Entertainment _____________
Favors/Gifts _______________
Activity (Golf, etc.) __________
Speaker ___________________

 

3.  All literature must indicate that the special event is administered, managed, or is an activity of the James Madison University Foundation, Inc. Samples of suggested wording are:

 

"This (program) is an activity of the James Madison University Foundation, Inc. The funds raised will be administered by the James Madison University Foundation, Inc. for the benefit of (program or JMU).

 

OR

 

"This (event) is sanctioned by the James Madison University Foundation, Inc.; net proceeds will be managed by the James Madison University Foundation, Inc. for the benefit of (particular criteria designated by the event). Please make your check payable to the James Madison University Foundation, Inc."

 

4.  The Internal Revenue Service regulations require disclosure and suggest the following language, which the James Madison University Foundation, Inc. recommends:

 

"The amount of your contribution that is deductible for Federal income tax purposes is limited to the excess of the amount contributed by you over the value of the goods and services that you receive. We estimate the value of those goods and services to be $ _______and therefore, you may deduct any contribution in excess of that amount."

 

5.  Questions concerning special-event fundraising procedures may be addressed to the James Madison University Foundation, Inc.