ZONTA CARES, INC.
GUIDELINES AND PROCEDURES FOR DISTRIBUTION OF FUNDS
Zonta Cares, Inc. is a nonprofit organization incorporated in 1997 under the laws
of the State of Florida. It is also a charitable 501(c)(3) organization approved by the
Internal Revenue Service in 1997 thereby allowing contributions to the organization to
be tax-deductible and expenditures and income of the organization to be exempt from
federal taxes. Zonta Cares, Inc. also maintains a state tax exemption certificate allowing
purchases and expenditures made under its auspices to be exempt from state and local
sales tax.
Zonta Cares, Inc. was created to fund those service projects that promote the
objectives of Zonta, follow Zonta International Service Guidelines, and provide taxexempt benefits to the members of Zonta Club of Tallahassee. Its eligible purposes
have expanded to include contributions to Zonta International charitable projects as well
as donations to charities selected by speakers before the Zonta Club of Tallahassee.
In approving funding for service projects, Zonta Cares reviews each project
request for adherence to the mission of Zonta International, which is "to improve the
legal, political, economic and educational, health, and professional status of women".
GUIDELINES FOR SUBMITTING FUNDING REQUESTS
As a 501(c)(3) charitable organization, Zonta Cares, Inc. must restrict its
expenditures to the laws and rules of the IRS. It must limit its funding to projects that
provide charitable service, approved activities of other charitable groups, and necessary
expenditures to maintain Zonta Cares (accounting fees, postage, fundraising expenses
and operations with a similar purpose). No funds may be expended for advocacy (such
as to support ERA or other political positions). Zonta Cares, Inc. is the entity that IRS
will hold accountable for compliance with the laws and rules governing the federal tax
designation of a 501(c)(3) organization. In order to document its compliance with
federal tax law, Zonta Cares has established procedures and reporting requirements
designed to support its adherence.
AlI requests for project support made to Zonta Cares must include the following
information:
1.
2.
3.
4.
5.
6.
Name of the project
Description of project
Specification of the Zonta objective(s) that is met with the project
Identification of proposed outcomes to be achieved with the project and
how they will be measured
Statement on how this measurement will be documented to Zonta Cares,
Inc. (reporting frequency and format)
Amount of total funding requested for the project from all sources (Zonta
Cares funds and other)
Approved: October 7, 2013
7.
8.
9.
Budget and expenditure timeline for the requested funds (Budget must be
tied to the Zonta Club of Tallahassee fiscal year ending May 31)
Designation of and identification of the person responsible for transmitting
specific invoices and requests for reimbursement for the project
The FEIN (Federal Employer Identification Number) for any organization
that will receive direct payments from Zonta Cares; any such request
should include a written statement signed by the CEO or president of the
board of directors of the organization specifying the intended use of the
funds
All recipients of funding from Zonta Cares must commit to providing a final evaluation
report for projects not later than May 31 of each year in which funds are received. The
report shall include the number of service hours expended, clients served, and
outcomes received.
OPERATIONAL PROCEDURES FOR DISTRIBUTING FUNDS
Zonta Cares, Inc. sought and was granted a state sales tax exemption in order to
maximize the funds available for projects. Therefore, all projects are encouraged to use
this exemption in purchasing goods and services in all instances possible. In order to
use the sales tax exemption, the purchaser must present the sales tax certificate and
make payment to the vendor using a Zonta Cares check. If prior arrangements have
not been made and sales tax is paid at the time of purchase, Zonta Cares will not
reimburse the sales tax portion of any receipt for which the total purchase cost is more
than $100.
Funding for requests approved by Zonta Cares can be distributed as either an advance
or a reimbursement based upon the justification provided in the request. All requests for
distribution of funds must be for goods or services described in the approved funding
requests and in the amounts stated therein or be submitted with justification for
departure from the initial funding request. Projects may amend or change the original
funding request and submit this any time in the funding year to Zonta Cares for review
and approval.
Prior to expending any funds for an approved project:
1.
2.
3.
Determine if the expenditure is in accordance with the funding request that
was made to and approved by Zonta Cares. If it is not, prepare a description
and justification for the revised expenditure. If in doubt as to whether the
expenditure is allowable for funding from Zonta Cares, ask for a Zonta Cares
review and reply before incurring the expenditure.
Determine if the funding will be advanced or reimbursed.
If the expenditure is projected to cost more than $100, contact Zonta Cares
Treasurer for a letter of certification of sales tax exemption and check made
payable to the vendor. Provide sufficient advance time for the Treasurer to
prepare and distribute this documentation.
Approved: October 7, 2013
When requesting advanced distribution of the approved funding:
1.
2.
3.
4.
5.
Submit a written request for the release of funds for a particular project,
identifying the amount of funds and the date needed.
Provide a brief description of how the funds will be used and whether this
purpose was included in the original request.
Include the name and mailing address of person(s) or vendor to whom the
check should be sent.
Include a FEIN if appropriate.
Submit invoice documenting the expenditure. If an invoice is not available,
provide an itemized list of expected expenditures.
When requesting reimbursement:
1.
Submit a written request identifying the project and the amount of funds
being requested for reimbursement.
2.
Provide a brief description of how the funds were used.
3.
Submit receipts for all purchases.
4.
Include the name and mailing address of person(s) to whom the check
should be sent.
ACTIONS BY ZONTA CARES THAT MAY JEOPARDIZE TAX-EXEMPT STATUS
•
•
•
•
•
•
•
•
provide benefits to individuals or officers/directors
allow income or assets to accrue to insiders (IRS defines insider as "a
person who has a personal or private interest in the activities of the
organization such as an officer, director, or a key employee.")
directly or indirectly participate in a political campaign
engage in issue advocacy that functions as political campaign intervention
engage in legislative activity or lobbying activity
failure to file appropriate version of Form 990; appropriate Form 990 must
be filed annually by the 15th date of the 5th month following annual
accounting period. (For Zonta Cares, filing date is October 15 since
annual accounting period is June-May.) Since Zonta Cares gross receipts
are normally less than $50,000, Form 990-N (postcard) is sufficient
actions that do not conform to IRS requirements
actions that do not adhere to the mission of Zonta International
SUPPORTING DOCUMENTS
Transactions such as contributions, purchases, sales, and payroll will generate
supporting documents - e.g., grant applications and awards, sales slips, paid bills,
invoices, receipts, deposit slips, and canceled checks - that contain information to be
recorded in accounting records. It is important to keep these documents because they
Approved: October 7, 2013
support the entries in an organization's books and on its tax and information returns.
They should be clearly marked and stored in a safe location.’
MISCELLANEOUS
A public charity must maintain books and records to:
•
•
•
show it complies with tax rules
document sources of receipts and expenditures reported on Form 990
determine if taxes are due for Unrelated Business Taxable Income (UBTI)
Approved: October 7, 2013