The Restorative Justice
 Resource Center

When RJRC is requested by individuals, families, nonprofits or groups to provide administrative support, pledge management and accounting services for the purposes of fundraising, RJRC is acting as fiscal sponsor. As a fiscal sponsor, the RJRC must meet certain North Carolina and federal laws in overseeing the organization’s expenditures and that these services will require additional supervision and evaluation by the RJRC’s staff and volunteer leadership. Knowing that there are many good projects and that it takes considerable effort to create an organization with 501c3 status, we have created a policy for providing fiscal sponsorship to worthy projects, events, and organizations, creating them as Special Projects of RJRC.

Application Process

An organization must complete an initial inquiry application in order to gain Special Program status for their project. The initial inquiry should be submitted by email and include the following information:

• Written proposal describing each program, event or other effort to raise money and why it is related to the mission of RJRC
• Work plan or timeline for specific projects
• Copy of any proposed solicitation materials
• Proposed budget
• List of the members of the organization requesting sponsorship (or members of the committee for an event) and their contact
  information
• Designation of a responsible person who will serve as liaison with RJRC

The RJRC Leadership Team will appoint a committee for reviewing each application which will be evaluated to determine if the services requested can be provided and at what service fee. Once a preliminary acceptance of the project is made, the Leadership Team will appoint a liaison to collaborate in the creation of an agreement and to oversee the Special Project.

RJRC Must Approve Use of Its Identity.

RJRC must review and approve in advance all uses of its name, logo, and description in all fundraising and promotional materials. Any grant applications submitted under the fiscal sponsorship agreement must be approved by RJRC and RJRC will be promptly notified of any grant awards.

Checks, Cash and Disbursements.

Checks related to the Special Project must be made payable to The Restorative Justice Resource Center (RJRC) and should be designated for the use of the Special Project. Cash should be paid to RJRC and then disbursed to the Special Project after accounting. RJRC will disburse funds to the sponsored organization upon receipt of appropriate reports and documentation that the sponsored organization has performed the conditions of the funding.

Tax Requirements and Acknowledgements.

The IRS imposes strict requirements regarding documentation of charitable donations. Special Projects must comply with all IRS requirements for charitable contributions. Failure to comply with these requirements may result in the denial of a tax deduction for donors and may bring penalties from the IRS. Donors who contribute $250 or more to the RJRC must obtain a written acknowledgment from RJRC in order to claim a tax deduction for their contributions. In order for the RJRC to provide the appropriate acknowledgment, it must receive donors’ complete names and addresses and a detailed description of any goods and services provided in exchange for the contribution. It is the responsibility of the Special Project to provide the RJRC with timely information as to the value of any goods and services provided donors in exchange for contributions; however, the RJRC reserves the right to determine such valuations.

If the Special Project provides goods or services in exchange for a donation, it is required to make certain disclosures upon solicitation. For example, if the Special Project is sponsoring a dinner, the donor can only deduct the excess of the ticket price above the fair market value of the meal. The RJRC will assist the Special Project in determining the fair market value amount. The value of any goods and services furnished to a donor in exchange for a contribution (referred to as the “quid pro quo”) must be disclosed at the time of solicitation. Disclosure on the ticket to the event is a typical method. The RJRC will assist with determining the appropriate disclosure language for the event; however, the Special Project is responsible for ensuring that the required quid pro quo disclosures are made.

Liability Insurance and Liability for Losses.

For some events, liability insurance may be required to protect the Special Project and the RJRC. The Special Project must contact the RJRC prior to holding a fundraising event to assess the need to secure liability insurance.  The Special Project is responsible for all financial losses incurred by events and any injuries to persons or property. The RJRC may require the Special Project to purchase a letter of credit or to provide a written personal guarantee in addition to the insurance coverage required.

State Solicitation of Contributions Acts.

Activities undertaken by nonprofit groups in order to raise funds may be subject to regulation under one or more state statutes. The primary purpose of state solicitations acts is to protect the general public and public charities from unlawful solicitation and to provide for the establishment of basic standards for the solicitation and use of charitable funds. As a result of these laws, Special Projects may be required to post certain information at the event, meeting the solicitations act requirements.

Service Charges for Special Programs

Service charges for Special Programs are asset-based percentage fees based on the comprehensive service level or per transaction charges (per gift, grant, expense or pledge), as determined by the RJRC on a case-by-case basis.
 

Approved by RJRC Board of Directors, April 23, 2007