FINANCES KEY INITIAL CONCEPTS 1 Questions People Ask How much - - PDF document

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FINANCES – KEY INITIAL CONCEPTS

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?

Finance Office Contacts

• Receipting, commitments, donor questions

give@ideasworld.org or nadine.petersen@ideasworld.org

• Expense reports - expenses@ideasworld.org
• r joey.magnotta@ideasworld.org
• Payroll, finance reports, general finance

questions – ron.larson@ideasworld.org

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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

Deputized Support Fund-raising

• 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

Charitable contributions

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.”

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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’

Budget Concepts

• A roadmap of planned use of funds
• Approval demonstrates IRS required

discretion and control over use of funds

• Unplanned items require project
• perations approval prior to use of funds

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

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Initial Assignment Budget

Categories

• One-Time expenses
• Monthly Salary (taxable)
• Monthly Work expenses & benefits
• Monthly IDEAS Fee

Departure clearance

Full support:

• One-time expenses raised (or committed)
• Monthly support needs met

–Support commitments plus –‘Excess’ one-time gifts

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)

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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

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)

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.

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Contributions - Notes

• 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)

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.

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

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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

Employee Benefits for Associates

• Group medical insurance
• Group life insurance (optional – initial

assignment)

• IDEAS 401k Plan (Optional – initial

assignment)

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

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Finance Reports

• Monthly Reports by email (5th to 10th)

– Gift report – Commitment report – Monthly summary (Income, Expenses, Balances) – Expense detail reports – Miscellaneous Accounts –advances, etc.

• Wage statements and W2 online

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

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

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