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school FISCAL services
The Alliance offers robust fiscal sponsorship services that enable individual schools and education–related organizations to expand their base of charitable support. With Alliance provided gift management and accounting services, your school staff and volunteers have more time for school programs and fundraising.
In 2010, the Alliance managed over $1.8M in school account fiscal sponsorships. We currently serve approximately 200 groups, including PTSA’s, booster clubs, alumni groups, parent groups and others. These groups raise funds for needed classroom supplies, tutoring and programs as well as teacher, counselor and staff time not covered by existing school budgets.
Accountability and Stability
Non-Profit Status for Tax-Deductible Donations
Many Giving Options
Efficient and Secure Gift Handling
Timely and Accurate Accounting and Payables Processing
No Costs or Services Fees
How to Set Up an Account
Accounts for Support of Individual Schools
Accounts for Community Organizations
Questions About Donations and Incoming Funds
Does the Alliance retain a percentage of donations?
Can ASB funds be deposited?
What are ASB Funds?
How can donations be deposited to our School Account?
What information needs to be collected from the donor for credit card donations?
Does the Alliance send thank-you's and tax receipts to donors? How quickly are they sent?
What is tax deductible for the donor?
How can donors make a donation of stock?
How can donors make life-income gifts?
Can the Alliance process recurring gifts and on-going monthly donations from donors?
How does the Alliance help collect outstanding pledges from donors?
Questions About Purchases and Use of Donated Funds
What can account funds be used for?
What cannot be purchased with account funds?
What is Use Tax? And how does this affect account purchases?
Why do I need original receipts for reimbursement?
Accountability and Stability - Back to Top
Alliance staff provide a consistent level of fiscal accountability and expertise to each school and its donors. Our financial statements are maintained according to Generally Accepted Accounting Principals (GAAP) and are audited each year by an independent CPA firm. Also, our support continues regardless of a school or organization’s staff or volunteer turnover.
Non-Profit Status for Tax-Deductible Donations - Back to Top
It is not necessary for schools or organizations to obtain their own non-profit status. Gifts made through the Alliance qualify for tax-deductibility based on the Alliance’s status as a 501(c)3 non-profit organization. The Alliance files all IRS required reports for donations to your group, including the 990 Form (Return of Organization Exempt from Income Tax.)
Many Giving Options - Back to Top
Various types of contributions can be accommodated:
- Cash contributions, including checks, money orders, and credit cards (Visa and
MasterCard)
- On-line donations via our secure website
- Manual credit card machines and charge slip supplies for use at fundraising events
- Recurring gifts and installment payments
- Non-cash contributions such as stock gifts and pledges
- Wire transfers
- Life–income gifts including certain types of annuities, charitable trusts, and bequests
- In-kind donations such as school materials, equipment, and services.
Efficient and Secure Gift Handling - Back to Top
We provide donor support services to ensure safe and efficient gift processing that you and your donors will appreciate. Services include:
- Maintaining and tracking each donor and his or her gift in a database
- Sending acknowledgements to thank donors and providing tax receipts when applicable
- Sending pledge reminder notices to donors making recurring or installment gifts
- Processing matching gift applications
- Quarterly reporting on donations, pledge payments and status of pledges
Timely and Accurate Accounting and Payables Processing - Back to Top
- Weekly payment of invoices and reimbursements as requested by account advisors.
- Compliance with Washington and IRS regulations and reporting, including use tax collection and 1099 reporting.
- Quarterly financial reports on account activities and status
No Costs or Service Fees - Back to Top
100% of gifts designated to school accounts are available for the school. We recover a portion of our costs by retaining interest earned on the first $25,000 of an account’s balance of funds and by charging back merchant fees on credit card transactions.
How to Set Up an Account - Back to Top
To establish an account, contact our office at 206-343-0449 or info@alliance4ed.org. Our staff will lead you through the following set-up process.
Accounts for Support of Individual Schools - Back to Top
A parent, community member, PTSA member, parent group, teacher or staff person can initiate an account in support of a particular school with the acknowledgement of the school principal. School accounts must support the educational needs and activities of the school and be consistent with the Seattle School District’s policies.
- The Alliance sends an Account Agreement to the school account representative
- Two school representatives (for example, the principal or a parent volunteer) are assigned to serve as Primary and Secondary Account Advisors. One of the advisors, or a third party, is assigned as the Financial Report Recipient
- The agreement letter is completed, signed and returned to the Alliance;
- The Alliance reviews the agreement and activates the account.
Please contact us at 206-343-0449 or info@alliance4ed.org for further information on establishing an account. Our staff will lead you through the set-up process.
Accounts for Community Organizations - Back to Top
Community organizations that are not associated with a particular school may also apply for accounts by the following process:
- Complete and submit the basic account application to the Alliance
- The Alliance reviews the application and notifies applicant of approval status
- If approved, the Alliance sends an Account Agreement to the account representative
- Two representatives (for example, a parent volunteer or the organization chair) are assigned to serve as Primary and Secondary Account Advisors. One of the advisors, or a third party, is assigned as the Financial Report Recipient
- The agreement letter is completed, signed and returned to the Alliance;
- The Alliance reviews the agreement and activates the account.
Please contact us at 206-343-0449 or info@alliance4ed.org for further information on establishing an account. Our staff will lead you through the set-up process.
Questions about Donations and incoming funds
Does the Alliance retain a percentage of donations? - Back to Top
No. 100% of donations go directly to your school account.
What type of funds can be accepted in a school account? - Back to Top
Accepted:
Contributions in support of your organization. Specific examples include:
Contributions received through annual campaigns, phonathons, direct mail and fundraising events
Payments and registrations for fundraising events
Trip Deposits (not tax-deductible)
Not accepted:
Raffle ticket sales or other gambling proceeds
Tuition payments for Pay-for-K
Contributions intended for the direct benefit of a specific individual
Can ASB funds be deposited? - Back to Top
ASB funds may be deposited with the Alliance, but they must be forwarded to an ASB account at the District in a timely fashion.
What are ASB funds? - Back to Top
Funds that are raised with significant involvement of students or school staff or that are raised as part of a school sponsored event are classified as ASB funds and per Washington State regulations, these funds must be held at the School District. For example, money raised at a student run car wash would be considered ASB funds. Funds raised at a student concert would also be considered ASB, as would funds raised at any event where the donor might reasonably feel that the event was an ‘official’ school event. Please contact us if you are not sure if your fundraising event would be considered ASB activity.
How can donations be deposited to our School Account? - Back to Top
Donations to your school account can be submitted in a number of ways.
- Through Account Advisor Collection:
You may prefer to solicit donations and have donors forward their donations to you, an account advisor or other individual coordinating your fundraising efforts. Donations may be solicited from donors via check or credit card and then be submitted in a group along with a Deposit Transmittal Form for your account. Donations with a Deposit Transmittal Form may to be mailed to our office or delivered to our office by hand.
What information needs to be collected from the donor for credit card donations? - Back to Top
For each donation we need the donor’s name and address. For credit card donations we also need the Visa or Mastercard account number and the expiration date of the card. We do not need the three-digit SIC code from the back of the card.
Does the Alliance send thank-you's and tax receipts to donors? How quickly are they sent? - Back to Top
Yes, the Alliance sends a thank you letter to each donor acknowledging his or her gift and noting tax-deductible status for the donors tax reporting purposes. Letters are sent quickly; typically within 2 to 3 days of receipt of the donation.
What is tax deductible for the donor? - Back to Top
There are many ways of raising money, but not all qualify as a tax-deductible gift from the donor. A general rule of thumb is to ask the question, “Did the donor receive any goods or services in return for his gift?” If the answer is yes, then the gift may not be tax-deductible.
In order to record, acknowledge and receipt a gift correctly, the Alliance must know the specifics regarding that gift. Account Advisors are responsible for providing information necessary to determine tax-deductibility. Before your organization conducts any type of fundraising other than soliciting simple contributions, please consult with our staff regarding different types of gifts and what we need to know about your fundraising campaign activities.
The activities listed below are just some of the things that require additional information:
- Auctions – Purchased items are tax-deductible only to the extent the price paid is more than the fair market value of the item.
Example: Item is worth $75, bidder paid $100, tax-deduction equals $25.
In practice, most items are purchased at below fair market value. To properly process auction purchases, we need the fair market value and the purchase price of each item—not an aggregate of the bidder’s purchases less fair market values.
- Ticket Sales – The portion of the ticket price over the value of the event, dinner, etc. is the tax-deductible amount. Example: Ticket price $100, value of the dinner $40, tax deduction equals $60. Even if the dinner is donated, it still has a fair market value.
- Item Sales – Magazines, sweatshirts, candy, etc., are considered purchases and do not qualify for a tax deduction.
- Commemorative Bricks and Tiles – Bricks and tiles become a part of a facility and are not considered as a benefit to the donor. Therefore, the amount contributed for a brick or tile is tax deductible.
- In-Kind Gifts – It is the donor’s responsibility to assign a value to their in-kind gift of goods or services. The Alliance for Education will issue an acknowledgment establishing receipt of the gift without stating a value in accordance with IRS guidelines
- Student activity/trip deposits – Because there is a benefit to the parent/student, these contributions are not tax-deductible.
How can donors make a donation of stock? - Back to Top
The Alliance for Education has a stock transfer form containing the necessary information to transfer stock to our broker. Sending a copy of the completed stock transfer form to the Alliance ensures the proper credit to your account. Stock transfer transactions are anonymous (no donor is identified) when they reach our broker, so this form is the only way we can identify the contribution. Please contact us at info@alliance4ed.org to request a form.
How can donors make life-income gifts? - Back to Top
Life-income gifts such as annuities, charitable trusts and bequests, require legal documents executed by all parties. The Alliance for Education must be consulted as early as possible on how to proceed. Please contact our offices at info@alliance4ed.org
Can the Alliance process recurring gifts and on-going monthly donations from donors? - Back to Top
Installment or regular monthly donations paid by credit card can be a convenient way for your donors to provide on-going support to your group. Monthly payments can be for a specific period of time or can be set up to take place until cancelled by the donor. Please contact us at info@alliance4ed.org if you have questions about how your group could benefit from this service.
How does the Alliance help collect outstanding pledges from donors? - Back to To
Installment or regular monthly donations paid by credit card can be a convenient way for your donors to provide on-going support to your group. Monthly payments can be for a specific period of time or can be set up to take place until cancelled by the donor. Please contact us at info@alliance4ed.org if you have questions about how your group could benefit from this service.
Questions about Purchases and Use of Donated Funds
What can account funds be used for? - Back to Top
- Classroom supplies
- Fundraising supplies and expenses
- Food/Beverages for meetings, events, etc
- Professional development and training
- Consulting or contractor services in compliance with Washington law.
- Direct payments to School Self-Help or other accounts at the District – salaries for teachers, aides, counselors, etc and any other school related expense.
What cannot be purchased with account funds? - Back to Top
- Direct payments to teachers or District employees. Funds may be forwarded to the District for staff time, but may not be paid directly.
- Direct payment of employee compensation, wages or salaries of any kind.
- Reimbursement to third parties for payment of employee compensation, wages or salaries of any kind.
- Reimbursement to third parties for payment to individuals for professional services. Individuals may be paid for services, but they must be paid directly.
What is Use Tax? And how does this affect account purchases? - Back to Top
Goods or certain services used in Washington State are subject to either sales or use tax unless specifically exempted. The tax applies regardless of where, or from whom, the property is purchased.
What does this mean for you? When you purchase items on-line or from out-of-state, even though the vendor may not charge sales tax, tax must be paid to Washington State. For School Accounts, The Alliance for Education reports and pay this tax for all applicable purchases. We calculate the tax (currently 9.5%), record the charge to your account and forward the sales tax to the state on a quarterly basis. When these charges occur, you will see them coded as “Use Tax” on your activity reports.
We want to make sure that you are aware of this requirement and have full information when choosing between in and out-of-state vendors.
In-state vendors must itemize sales tax on any receipt or invoice, otherwise the state requires payment of Use Tax. So please retain and forward original itemized receipts for any reimbursements as documentation and proof of tax payment.
If you’d like more information on Use Tax requirements in Washington State, please refer to the Washington Department of Revenue website and click on “Learn About Use Tax.”
Why do I need original receipts for reimbursement? - Back to Top
If we have your original receipts, your reimbursement is exempt from IRS reporting requirements.
Reimbursements with documentation other than an original receipt (such as a receipt copy) may be made, but they are subject to IRS reporting requirements. If they total more than $600 in the calendar year they must be reported on a 1099 form as miscellaneous income. We will request a W-9 form for reimbursements without original receipts that exceed $200 so that we have the information on file that we may need for year-end reporting.
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