Community foundations have “funds”, the money given by donors which are named for the donor or its purpose. Each community foundation adopts gift- and fund-acceptance policies that address minimum fund size, types of fund options, types of gift mechanisms, and policies and procedures for accepting various types of assets. Foundations offer several different types of funds that address the varied interests and concerns of individual donors. The different types of funds can be separated into four basic categories based upon the restrictions imposed by the community foundation or the donor: 1. An unrestricted fund gives the community foundation complete discretion to distribute the assets in the fund for charitable purposes; 2. Grants from a designated fund are restricted to a public charity that was named by the donor at the time the donation was made to the community foundation; 3. Field of interest funds restrict distribution to a particular charitable purpose; and 4. A donor is allowed to make recommendations regarding disbursement of assets from a donor-advised fund. Source: Christopher R. Hoyt, Legal Compendium for Community Foundations 5-6 (1996). Treas. Reg. sec. 1.170A-9(e)(11) Additional Information: Greater Cedar Rapids Community Foundation.

Yes there are stricter limitations on gifts to private foundations. Gifts to public charities by individuals have an annual limit of fifty percent of the donor's adjusted gross income. Gifts to private foundations however place that limit at thirty percent of the donor's adjusted gross income. The figures are somewhat different for corporate donors who can deduct ten percent of their taxable income. If the contribution is capital gain property rather than cash, the limitation is then thirty percent for public charities and twenty percent for foundations. The Iowa Principles and Practices for Charitable Nonprofit Excellence states that "Charitable nonprofits must be aware of and comply with Internal Revenue Code provisions (see e.g. I.R.C. section 170)" (VIII E 2). This is to make sure inaccurate information about gifts is not passed on to donors. A good source for these rules is IRS Publication 526 Charitable Contributions

Yes. If a nonprofit has over $25,000 in gross receipts in its fiscal year, it will file the IRS Form 990-EZ or 990. Schedule C must be filed with either of these forms, and political campaign and lobbying activity is reported on this schedule. There is no comparable filing in Iowa.

Yes. For nonprofits doing more significant amounts of lobbying, both federal and state laws should be considered. Federally, the Lobbying Disclosure Act, 2 U.S.C. § 1601 et seq., applies to nonprofits  if: 1. the organization has at least one employee who is a “lobbyist” and  2. expenditures of $20,000 or more per six-month period are spent on lobbying  activities. A “lobbyist employee” is an employee who makes at least two lobbying contacts and spends at least twenty percent of his or her time on lobbying activities. This act only applies to lobbying on the federal level. Federal lobbying is reported on form LD-2. Iowa Code Ch 68B sets out rules for reporting of lobbying activity on the state level. Iowa lobbying reporting forms and rules are available from the Iowa Ethics and Campaign Disclosure Board, 510 East 12th, Suite 1A, Des Moines, IA  50319.

A fund is the basic building block of a community foundation; it acts as a foundation within a foundation. Funds are named for their donors, for their purposes, or as memorials. Most funds operate as permanent  endowments, distributing only their net income; some allow for distribution of principal. Funds may have broad charitable purposes, providing unrestricted income to address community needs identified by the foundation or allow donors the privilege of suggesting grants when they wish to offer donor-advised support to particular organizations. Funds may support specified fields of interest, such as the arts or human services, support specific not-for-profit organizations designated by the donor, or offer scholarship support. Funds may even allow for a combination of these purposes. -- Long Island Community Foundation

Yes. Private foundations often restrict use of amounts granted, allowing no political activity of any kind. This is due to the IRC sec. 4945 penalty taxes for inappropriate political activity of private foundations. This penalty tax is not imposed on public charities. 501(c)(3) organizations designated as private foundations are subject to a 10% tax on any expenditures made to either influence political figures or the opinion of the general public. Additionally, any manager who agreed to the expenditure is subject to a tax of 2.5% of the total expenditure. If these taxes are not paid within the taxable period, an additional tax of 100% of the taxable expenditure will be levied against the foundation along with a tax of 50% of the total expenditure on management who approved the expenditure. In addition to private foundations, no federal government grant can be used for political activity. The Byrd Amendment, 13 U.S.C. § 1352, provides that federal grant money may not be used for political activity.

Each community foundation adopts gift and fund acceptance policies that address minimum fund size, types of fund options, types of gift mechanisms, and policies and procedures for accepting various types of assets. A community foundation honors the charitable intentions of its donors consistent with community needs and applicable laws and regulations. Any foundation can forward you their policies upon request. -- Council on Foundations

The Council on Foundations recommends that community foundations “actively involve donors in identifying and responding to community issues and opportunities.” This is facilitated by distributing an annual report to interested parties. Items to be included in the report are the foundation’s mission, board of directors, activities, and financial operations. Interested donors should also have access to fund statements, though every attempt should be made to keep private information confidential. Annual audits should also be conducted by an independent public accountant.

A public relations plan has four main components: research, planning, communication, and evaluation. Research includes defining the public relations problem faced by the organization then agreeing upon realistic and measurable steps to a solution. Establishing metrics will be valuable when you evaluate the success of your public relations plan. Planning involves further developing the steps you will take toward your goal such as setting a budget, how to approach the media (e.g., selecting a spokesperson, what audiences you wish to reach, what message to communicate). Communicate your agreed-upon message and execute your plan. Evaluate your success by looking at your metrics. How many people came to your functions? What could you have done better? How close did you come to your goal?

Public relations is strengthening relationships between your organization and its publics. The relationship that you have with your publics could increase the amount of money donated by them, the quality of volunteers and employees willing to work for your organization, and the numbers of people who use your facilities and programs. Your organization needs to: 1. set up a public relations plan; 2. keep up to date on news in your community to identify areas of need and how your organization can help; 3. develop a media list that includes names, addresses, email addresses, and phone numbers of media contacts; 4. have a central message that is consistently communicated by your organization; and 5. use the media wisely. Communicate with reporters when there is something newsworthy. Be prepared for their questions. If you don’t know the answer, tell them you’ll get back to them, then do so promptly.

Form 1023 requires a four-year projected budget. It can be helpful to review the Form 990s of similar organizations. For guidance on developing a budget it can be helpful to review the Form 990s of similar organizations. For example, if you are creating a nonprofit animal shelter, look at an Iowa animal shelter's 990 filings. Form 990s can be found on the Candid (formerly GuideStar) website.

There are generally internal and external publics. Internal publics are the people with whom you interact on a daily basis such as employees and clients. External publics include the community at large and the media.

When the media calls, find out what their interest is and who else they are talking to in connection with the story. Find a mutually agreeable date and time to call the reporter back. The day and time should allow the reporter to make her deadline but also give you enough time to prepare for the interview. Anticipate and be prepared for likely issues. Be open and forthright. If you don’t know the answer state that you will check and get back to the reporter right away, then do so. For an on-site interview, suggest a neutral location such as a boardroom or hallway and not your office. You might have papers visible in your office with information you are not ready to release. Journalists are good at looking around and gathering information from their surroundings, and you do not want things in your office that tell a story different from what you are trying to convey.

The cause selected should be in line with the company’s corporate goals. It is not necessary that the target audience for the company’s product be the primary beneficiary of the cause, but a sincere link should exist between the company's business goals and the cause to which it commits itself. A company should first select a cause then choose the charities with which it will work. Partnering with charities is essential, but over-dependence can hurt the program’s development. Financial contributions are an important part of any cause program, but a successful cause program does not always require only donations of cash. Commitment of various other resources such as professional skills, technical knowledge, advertising, and equipment are also important. A company should communicate its involvement in a cause program through every possible channel. Programs in which customers can participate and promote informally are more effective.

Community foundations are dedicated to a specific geographical area. They typically serve a municipality, metropolitan area, or county but can also serve areas of other sizes. However, community foundations usually do not serve areas larger than one state. Membership in some professional organizations places an upper limit on the geographical area that is served by a community foundation. For instance, the Council on Foundations does not admit foundations that service a geographic area larger than three states. -- Council on Foundations

No. When one buys a raffle ticket one is buying the chance to win the item up for raffle. Since the fair market value of the chance to win the item up for raffle is equal to the price of the ticket, the transaction is merely a purchase; therefore the purchaser has not made a donation.

Many states, under state solicitation laws, require that the nonprofit organization register with the state before participating in fundraising within the state. In order to assist nonprofit organizations in this registration process the National Association of State Charities Officials and the National Association of Attorneys General have created the Unified Registration Statement (URS). The URS “represents an effort to consolidate the information and data requirements of all states that require registration of nonprofit organizations performing charitable solicitations within their jurisdictions.”

A donor should not attach the written acknowledgement from the recipient organization to the donor's individual income tax return. Instead the donor must keep the written acknowledgement to substantiate the contribution.

Yes. The Iowa Principles and Practices for Charitable Nonprofit Excellence states in Part XI that "Nonprofit organizations should individually and collectively communicate their views to government about matters which affect the delivery of their services." That being said, it is important for nonprofits to be aware of the tax code's restrictions on both lobbying and political campaign activity.

Tax exemption under IRS code §501(c)(3) has two primary benefits: 1) the donor making a donation to the nonprofit gets a tax deduction, and 2) there is no income tax on related earned income. This is true for purposes of federal income tax and Iowa income tax. Other benefits include the ability to issue tax-exempt bonds for capital projects, qualification for tax-exempt retirement plans (403(b)), and special postal rates.

If a nonprofit engages in political campaign activity, the IRS may revoke the organization’s tax-exempt status or compel the organization to pay fines. Both the organization itself and the individuals responsible for the illegal political activity may be fined. Despite the severe consequences for a nonprofit if it engages in political activity, the Internal Revenue Code does not define the phrase in great detail. IRC 501(c)(3) provides that political activity is “participat[ing] in, or interven[ing] in (including the publishing or distributing of statements) any political campaign on behalf of (or in opposition to) any candidate for public office.” However, “political expenditures” are defined further in the Internal Revenue Code. In essence, a nonprofit may express a point of view about an issue, but may not support or oppose a specific candidate.

If an organization has not elected to lobby under 501(h) and have its lobbying limits measured by the “expenditure test,” its lobbying limits will be measured by the “substantial part of activities test.” If it is determined that an organization has engaged in lobbying beyond an insubstantial amount, that organization will generally lose its federal tax-exempt status. However, if an organization has elected to qualify under 501(h), its lobbying limits will be measured by the “expenditure test.” If an organization exceeds the limits established under this test, it must pay an excise tax based on the amount exceeding the limit. Therefore, under the “expenditure test,” exceeding the lobbying limit results in the organization having to pay a monetary fine, not in the complete loss of the organization’s tax-exempt status. However, a nonprofit can lose its tax-exempt status under the “expenditure test” if it exceeds the lobbying limit for four consecutive years.

A community foundation is a tax-exempt public charity that can assist a community in maintaining and improving the quality of life enjoyed by its citizens. Contributions from individuals, corporations, government sources, and other organizations are used to create a collection of permanently endowed funds within the foundation. Community foundations distribute income from the endowments throughout the community by making grants to various organizations and projects that will benefit the community and reflect the wishes of the donors. Though the word "foundation" is in the community foundation name, its tax treatment is not that of a private foundation but of a public charity. The Iowa Council of Foundations has information on what community foundations are doing in Iowa.

Many radio and television stations allot a portion of their air time to broadcasting public service announcements (PSAs) for nonprofit organizations. Check with local media outlets on their policies regarding PSAs. A PSA is usually 30 to 60 seconds in length. The who, what, when, where, and why should be the focus. Be clear and concise to make it easy for people to get more information about your organization or event.

The basic definition of lobbying as presented in the Internal Revenue Code 501(c)(3) is “carrying on propaganda, or otherwise attempting, to influence legislation.” Two categories of lobbying are identified:  Direct lobbying is “any attempt to influence any legislation through communication with any member or employee of a legislative body or with any government official or employee who may participate in the formation of legislation.” The communication must be about pending legislation to constitute lobbying. Note that the focus is on legislative bodies. This does not include judicial, executive, and administrative bodies. As a result, an organization that encourages an executive or administrative body to do something will not normally be considered to have engaged in lobbying. Grassroots lobbying, on the other hand, is “any attempt to influence legislation through an effort to affect the opinions of the general public or any segment thereof.”  To be grassroots lobbying within the terms of the Internal Revenue Code, there must be: (1) reference to specific legislation, (2)  a specific viewpoint on the legislation, and (3) encouragement of the recipient to take action with respect to the legislation. The tax code has more restrictions on grassroots lobbying than direct lobbying.

Public relations focuses on the relationship between the organization and the public. The relationship includes news, information, crisis management, and government relations (Principles and Practices IX.C.2.).

According to the Association of Fundraising Professionals (AFP), these terms are all concerned with the donor’s intent. The AFP offers these definitions. Planned giving frames a donation within a structured system. The donation is usually transmitted through some sort of legal instrument, such as a trust or a will. Many planned giving programs include some elements of deferred giving. A deferred gift is a gift that has been pledged to a nonprofit but will not be available until some future date, such as the donor’s death. A major gift is a significant gift to an organization. The amount before a donation is classified as a major gift is left to the discretion of the organization.

According to the Iowa Principles and Practices for Charitable Nonprofit Excellence, "organizations are limited under the Internal Revenue Code to 'insubstantial' activities to influence legislation." (XI, A, 2) The amount of lobbying activities in which a 501(c)(3) public charity can engage is subject to more specific tests for what is "insubstantial". The Code establishes two standards for measuring an organization’s compliance with those limitations, and the organization itself may elect which standard will be employed. One test is known as the “substantial part of activities test.” This test requires that “no substantial part of a charity’s activities… be carrying on propaganda or otherwise attempting to influence legislation.” The wording is vague, and the test’s exact meaning has proven difficult to establish. In an attempt to establish a baseline, some courts have said that lobbying expenditures in excess of 5% of an organization’s total expenditures are substantial, but the circumstances surrounding the individual case are also taken into account. An attempt by Congress in 1976 to create a more objective standard for measuring an organization’s compliance with lobbying limits resulted in what has become known as the “expenditure test.” The test is found in IRC secs. 501(h) and 4911, and establishes limits based on a percentage of an organization’s exempt purpose expenditures. Chapter 3 of IRS Publication 557 more thoroughly describes lobby expenditure limits under the expenditure test.

Iowa Code §13C.2 requires that professional fundraisers register with the attorney general. Iowa Code §13C.2(1)(a). The Iowa Code also requires that professional fundraisers disclose contributions received and payments made to the client charities. This disclosure can be done at the time of registration with the Iowa Attorney General's office or by filing a statement agreeing to provide disclosure information to a government entity or a person within one day of a request. Iowa Code §13C.2(1)(b),(c). Additionally, charitable organizations are required to provide financial disclosure information to requesting parties within five days of a request. Iowa Code §13C.2(2). If either the professional fundraiser or the charitable organization fails to provide financial disclosure information when requested, the attorney general may seek an injunction prohibiting further fundraising until such disclosure information is provided. Iowa Code §13C.3(b). See this article on in-state fundraising for a more complete answer.

For the most part, many states have not developed clear Internet fundraising registration requirements. However, some states are in the process of assessing their Internet fundraising policies, so nonprofits need to keep abreast of potential changes. As a safe practice, nonprofits may want to review the Charleston Principles, suggested Internet fundraising guidelines released by the National Association of State Charity Officials (NASCO). The guidelines are non-binding and were designed to assist states in developing their own regulatory schemes. The Principles suggest that nonprofits domiciled within a state register within that state. It is also suggested that organizations outside of a particular state should register with that state if they target residents of that state, or if they receive funds from residents of that state on an “ongoing” or “substantial” basis. The Principles leave definitions of these terms up to the states.

According to law a pledge may be a binding contract. Courts will usually enforce pledges if the organization can show that it substantially and reasonably relied on the pledge. However regardless of whether or not a nonprofit is legally entitled to pledged money the more important issue is how to determine when it is appropriate for a nonprofit to sue to recover a pledge. Such determinations can only be made on a case-by-case basis. Relevant considerations are the overall impact of the gift on the organization, the likelihood that the donor will make future gifts, the opinion of the board of directors, and community perception.

Form 1023 is used to file for recognition as a tax-exempt charity with the IRS. The form includes instructions for completion. For information on the Form 1023 see the IRS site Frequently  Asked Questions About Applying for Tax Exemption.

A community foundation has an independent governing body broadly representative of the community it serves. This governing body is responsible for the mission, direction, and policies of the organization. The governing body also ensures that the foundation reflects the diversity of the community that it serves. -- Council on Foundations

Community foundations offer power and flexibility in charitable giving without the paperwork, time, and expenses associated with running your own private foundation. They can help you set up a fund that will maximize both your tax advantages and your impact in the community. In addition, they can provide the services of experienced grantmakers who know the community, its needs, and its organizations. The community foundation truly allows what would be a small organization to become a part of a large, more powerful group. -- Council on Foundations