General Accounting Policies & Procedures

TOOLS FOR AFFILIATED FUNDS

General Accounting Policies & Procedures
In June 2002, the Foundation updated the following general guidelines and procedures regarding the general accounting procedures and policies.

Sales Tax

The Nebraska Community Foundation is not exempt from Nebraska Sales Tax. Thus the Department of Revenue requires that all affiliated funds of the Nebraska Community Foundation pay sales tax on the sales of property sold (e.g. a meal or t-shirt) and on tickets or admissions sold for an event. When an affiliated fund has a fundraiser, volunteers need to determine the fair market value of the item or admission and inform the Accounting Staff of the Foundation so the proper sales tax can be paid to the State of Nebraska. Sales tax needs to be added and paid on all property purchased by affiliated funds (e.g. playground equipment or computers). Thus, when an affiliated fund has an invoice in which a payment is to be made by the Foundation, the vendor must include sales tax on the invoice.

Upcoming Fundraisers
The Nebraska Community Foundation provides liability insurance coverage for its affiliated funds. The following information is required for all events being conducted by affiliated funds:

type of activity or event,

date and time of event,

location and duration of the event,

and number of people expected to attend.

Thus, affiliated funds do not need to purchase additional insurance or be bonded. However, the Foundation's staff must be informed of all events so certificates of insurance can be obtained.

Basic Disbursement Procedure & Requirements
Disbursements are processed weekly. The policy is such that all disbursement requests received by Monday will be processed by Friday of the same week. Proper documentation must be included in order to process payment, which includes a signed Disbursement Request Form and any supporting documentation (e.g. invoice, paid receipts, etc.). The fund name and account for which payment is to be made should be clearly stated at the top of form in the spaces provided. Please feel free to contact the Foundation if you have questions as to whether a disbursement qualifies as charitable in nature within the laws of the United States Tax Code.

Qualified Disbursements

Nebraska Community Foundation follows IRS guidelines when processing disbursements in order to maintain its IRS status as a 501(C)(3). Disbursements made as grants from an affiliated fund must support a purpose that is charitable in nature. The U.S. Tax Code lists a broad range of charitable activities, including education, science, religion, social welfare, lessening the burdens of government, and general community betterment. However, if a grant award creates a personal or individual business advantage or gain (not considered charitable in nature), a disbursement will not be made. In summary, grants may be awarded to other 501(C)(3) nonprofit organizations, state or local governments, and for reimbursement of qualified expenses deemed charitable in nature.

Scholarship Payments

Scholarships must be awarded on a competitive basis in order for the donor to receive a charitable tax deduction. Please refer to the Scholarship Administration Kit or contact the Foundation at info@nebcommfound.org or 402-323-7330 if questions arise.

Contributions, Receipts and Money Orders
Contributions must be submitted with a Contribution Investment Form. However, if there are a large number of checks, the name & amount of donation can be listed on a separate sheet. When contributions are submitted, the following information must be included:

Fund and Account Name the donation is made to
Name and address of donor
Amount of contribution
Purpose of donation (e.g. in memory of, for ball park bleachers, etc.)

Receipts are sent to individuals who give $35 or more. Receipts can only be given to donors who have issued a check or money order with their name listed (on the money order) as the remitter. The Nebraska Community Foundation cannot issue a receipt for a gift of cash or a gift by money order when no remitter is listed.

No exceptions can be made to this policy. If a fundraising event brings in small amounts of cash, please obtain a money order for all cash received in order to submit contributions. Encourage the use of checks for all of your fundraising activities and events. Do not send cash through the mail. Please obtain a money order for any cash received as contributions.

Checking Accounts
Checking accounts separate of the Nebraska Community Foundation are not allowed. In order for the Foundation to maintain its 501(C)(3) status, allowing donors to take tax deductions for their contributions, the Foundation must receive all contributions and monitor all financial transactions of your fund. The Foundation must make all disbursements from your affiliated fund. Thus, an affiliated fund of the Nebraska Community Foundation must not have a separate checking, savings, or any other type of financial account. All checks received as contributions to your affiliated fund must not be deposited, endorsed or receipted by any member of your Fund Advisory Committee or other member/volunteer of your affiliated fund. The Foundation will endorse and deposit all the checks (and all other contributions received) to establish a complete audit trail for the Foundation Auditors and the IRS.

Petty Cash Accounts

A petty cash account, of not more than $250, can be created and maintained for your affiliated fund upon request. All petty cash funds will be replenished by a check from the Foundation as receipts are turned in for all expenses paid from your petty cash fund. A receipt for expenses paid from your petty cash fund must accompany requests in order to replenish your petty cash fund.

Reporting

A balance sheet, revenue and expense statement, general ledger/audit trail report and an account-by-account summary report for your affiliated fund, where applicable, are mailed to your affiliated fund’s primary contact on a quarterly basis. Reports are generally mailed by the 20th of the month following the calendar quarter-end month (January 20, April 20, July 20, October 20) and only to those funds with balance of $5,000 or more, unless other reporting arrangements have been made with Foundation staff. If your affiliated fund wishes to receive reports more often or regardless of your account balance, you must contact the Foundation to request to set up a different reporting schedule.

Audit

All transactions of the Nebraska Community Foundation and its affiliated funds are a part of an annual audit. Pre-audit reports are sent to the primary contact of all affiliated funds every June. The pre-audit reports contain detailed information regarding your affiliated fund’s activities during the first eleven months of the fiscal year, which ends June 30th. The Foundation asks each affiliated fund to review the information provided and report any discrepancies as soon as possible. When the annual audit has been completed, audited reports for the entire fiscal year will be mailed to all affiliated funds and a copy will be retained in our files.

Fund Advisory Committees
Each affiliated fund has a Fund Advisory Committee. The Fund Advisory Committee is named within the fund agreement when the fund is created and kept on-file at the Foundation. Annually, with the pre-audit reports, a survey to update your Fund Advisory Committee will be sent. Please complete this survey, even if there are no changes have been made to you Fund Advisory Committee, and return it to the Foundation. If changes or additions are made to your Fund Advisory Committee at any other time during the year, please inform the Foundation.

Foundation Accounting Staff

If any questions arise regarding these matters, please do not hesitate to contact the NCF accounting staff at info@nebcommfound.org or (402) 323-7330.

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Nebraska Community Foundation

PO Box 83107

Lincoln, NE 68501

Phone: (402) 323-7330 Fax: (402) 323-7349

E-mail: webmaster@nebcommfound.org