AAUW Iowa Branch Leaders
August 6, 2014
Blackboard Collaborative Meeting
AAUW 501 Fundraising Policy
Issues, Insights and IRS Regulations
Today’s Agenda
 The New Fundraising Policy 501
Helping You do Successful and
Professional Fundraising
 Resources To Help You
 Q & A Time
 Scholarship Policy 503
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Back to Basics
The AAUW Mission
AAUW advances equity for women and
girls through advocacy, education,
philanthropy and research
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AAUW Funds Diagram
Legal Advocacy Fund
#3999
Formerly a part of the AAUW
Educational Foundation
A partial list of programs includes:
• Legal Case Support
• LAF Case Support Travel
Grants
• Campus Outreach Projects
AAUW Funds
#9110
Gifts that are not
restricted, support
programs with the
greatest needs.
Educational
Opportunities Fund
#4336
Formerly a part of the AAUW
Educational Foundation
A partial list of programs includes:
• Fellowships and Grants
•
•
•
•
•
American Fellowships
International Fellowships
Selected Professions Fellowships
Community Action Grants
Career Development Grants
• Fellows Alumnae Initiative
• Undergraduate Scholarship
Clearinghouse
Eleanor Roosevelt Fund
#9170
Formerly a part of the AAUW
Educational Foundation
A partial list of AAUW Research
Reports include How Schools
Shortchange Girls, Hostile Hallways
and
Behind the Pay Gap.
Public Policy Fund
#4337
Formerly a part of the AAUW
Association
A partial list of programs includes:
• Government Relations
• Civic Engagement
• Field Organizing
Leadership Programs
Fund #4339
Formerly a part of the AAUW
Leadership & Training Institute
A partial list of programs includes:
• National Conference for College
Women Student Leaders
(NCCWSL)
• Campus Action Projects
• Campaign College
The AAUW Action Fund
Reminder
Contributions to AAUW Action Fund supports
501(c)(4) work like Lobby Corps and the Congressional
Voting Record.
Gifts here are not tax-deductible
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AAUW Fundraising – Doing It Right
Primary Issues Addressed
– AAUW is a national leader in education and
equity, we want our fundraising/philanthropy
to be as professional as our reputation
– We’ve been given the gift of a nonprofit
status and we MUST protect this status. It can
be revoked if we fail to comply with regulations
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AAUW Fundraising – Doing It Right
National Issues Addressed
– Fundraising standards changing; more
transparency; more protection for donors
(Donor Bill of Rights)
– Donors are better educated; care about where
money goes and the impact it has
– IRS watching nonprofit sector more carefully
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AAUW Fundraising – Doing It Right
National Issues Addressed
– New watchdog groups (Charity Navigator,
Guidestar) rating charities online; donors
check out charities before giving
– IRS pulling 501(c)(3) status from charities who
are not complying with regulations
(pulled status from 275,000 charities in 2011)
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AAUW Fundraising – Doing It Right
AAUW Issues Addressed
– Branch and state leaders asking for more
information and assistance on fundraising
– Philanthropy to AAUW not always priority;
less support to AAUW Funds and our mission
work; more local giving – not always directly
mission-related
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AAUW Fundraising – Doing It Right
AAUW Issues Addressed
– AAUW files in each state to fundraise, must
meet all state standards as well as national
– AAUW trains well for advocacy work, we want
to train equally well for philanthropy work
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Fundraising
How to be
Successful and Professional
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AAUW Fundraising – Doing It Right
Education through these documents:
– Donor Bill of Rights
– IRS Publication #1771
– IRS Publication #526
– AAUW Fundraising Policy 501 with guidelines
(revised Feb 2014)
– Best practices materials, guidelines, FAQs
• Fair Market Values of Goods worksheet
– Local Scholarships Policy 503 (revised April 2014)
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IRS Regulations – The Codes
501(c)(3) – IRS code for a charitable organization
qualified as doing good works to which
gifts/donations are tax-deductible
501(c)(4) – IRS code for nonprofit social welfare
organization; gifts/donations are NOT tax-deductible
(AAUW Branches are generally this category)
An affiliate agreement must be signed with AAUW for
each type of entity.
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IRS Regulations – Publications
IRS Publication #1771
Charitable Contributions: Substantiation and
Disclosure Requirements (13 pages)
IRS Publication #526
Charitable Contributions
(23 pages)
Go to: IRS.gov/charities
then search for publication number
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Fundraising Issues
IRS - Common Errors We Make
– Raffles are NOT tax-deductible; no ‘games of
chance’ are considered deductible
– At Special Events, the costs of “Goods and
Services” to the donor must be determined at
their “Fair Market Value” and those costs
deducted from the ticket price; remainder is
considered a charitable deduction.
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Fundraising Issues
IRS - Common Errors We Make
– IRS now strict with 501(c)(4) subordinates who
have any lapse in the filing of their Form 990-N
(suggest using AAUW’s service to file this for your branch
once you submit forms to them)
To set up contact: allfinance@aauw.org
– “Pass-through” donations are illegal; cannot
give money to 501(c)(3) to then pass back to a
501(c)(4) so tax deduction may be taken
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Fundraising Issues
IRS - Common Errors We Make
– Donated monies may not be carried over from
one tax year to another; if so, donor cannot
claim deduction (note: Oregon branch and IRS problem)
– Must declare in advance where funds will be
used; funds must be directed to the purpose
for which they were raised (Donor intent)
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Fundraising Issues
IRS - Common Errors We Make
– Monies collected by branches and given
directly to individuals are not tax-deductible
– Local scholarships are not tax-deductible
– Only donors can value donated goods
– Auction purchases are only a donation if you
pay over fair market value, and only amount
paid above the fair market value is allowed
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AAUW Fundraising Policy
Updating Our Policy
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Key Issues of FR Policy Change
 Limiting of Donations and Fundraising Efforts to AAUW
Funds and/or Directly Mission-Related Purposes
 Funds raised by AAUW-affiliated entities should
not provide financial support to non-AAUW
organizations or charities.
– Funds raised in AAUW’s name should go to AAUW
– AAUW programs need and deserve funding
– Acceptable to pay dues/memberships to direct missionrelated organizations
– Local scholarships, if going to a 501(c)(3) entity, are still
acceptable, but may not be tax-deductible for the donor
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Key Issues of FR Policy Change
 Funds raised using the AAUW (national) name must go
to support AAUW national programs, activities and
services (AAUW Funds) or other directly missionrelated purposes.
 Funds raised using the name of the AAUW-affiliated
entity (branch/state) must go to support programs,
activities and services or other directly mission-related
purposes of the AAUW-affiliated entity.
(NOTE: It is acceptable to pay a program stipend to an organization that
does a branch program IF you USUALLY give a stipend to speakers. This
comes out of the program budget.)
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Fundraising for Other Charities
 Fundraising for other organizations at AAUW
meetings and events or in AAUW publications is
not allowed.
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New Fundraising Policy
Key Questions
 When do changes go into effect?
– IRS regulations in effect now, they are ongoing
– Policy 501 becomes effective July 1, 2014
 What about in-kind goods and services?
– These are fine for direct mission-related organizations
 How can I be sure my branch is in compliance?
– Check with state AAUW Funds chair or email
question to connect@aauw.org
– IRS website: irs.gov/charities; call: 877-829-5500
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AAUW Fund Raising
Resources to Help You
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RESOURCES to HELP YOU
1.
2.
3.
4.
5.
6.
7.
8.
Fundraising Policy #501 with Guidelines
Power Point Handout of this Session
Donor Bill of Rights
AAUW Funds Diagram
Fair Market Value of Goods worksheet
Auction and Deductions worksheet
Fundraising Ideas (from 2013 New Orleans Convention)
AAUW Funds and IRS Contact Information
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AAUW Fund Raising
Q & A TIME
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THANK YOU!
for Helping AAUW Funds
and
Keeping AAUW
Fundraising Professional!
Diane Patton
Diane.patton46@gmail.com
New Revised Local Scholarship Policy
Policy #503
Scholarship Programs of
AAUW Affiliated Entities
Approved by AAUW Board April 2014
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AAUW Scholarship Policy
Scholarship – academic scholarship given to
high school or college student to assist with
college degree (Amount generally $100 or more)
Award – money or tangible gift provided to a
student for attainment of a stipulated
achievement; as first place in science fair or first
in the class (Amount generally small, $50 or less)
Fellowship – money awarded for graduate
school or postgraduate work (Amount generally
several thousand dollars) AAUW FUNDS
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AAUW Scholarship Policy
Academic Scholarships tax-deductible if:
 Branch is a 501(c)(3) entity or
 Gift is to College/University that is
 Selection criteria meets IRS standards
Not tax-deductible if:
 Branch is a 501(c)(4)
 Money given to an individual person with
no blind process
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AAUW Scholarship Policy
Best Practices
Academic Scholarships based on:
 Financial need
 Academic merit
Scholarship Program must have:
 Selection criteria (blind process)
 Recipient monitoring
 Distribution procedures
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AAUW Scholarship Policy
Best Practices
IRS Blind Process:
 Academic scholarships must be awarded on an
objective and nondiscriminatory basis
 Eligible recipients must form a ‘class’; such as all
senior girls in the county or all sophomores at State
University
 Purpose of the scholarship must be clearly stated;
such as for expenses directly tied to enrollment or for
completion of a degree
 Selection criteria must be clearly stated and available
to all who are eligible to apply
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AAUW Scholarship Policy
Best Practices
IRS Blind Process:
 Typical selection criteria includes:
Academic performance
Interviews
Letters of recommendation
Test scores
Financial need
 Impartial selection panel
•
No conflict of interest; panel members and families
cannot benefit from selection (they can’t win)
• Must recuse themselves from process if conflict arises
AAUW members can served on panel. However if their family
members (daughters, granddaughters, etc) apply, the member
cannot be involved with the selection process.
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AAUW Scholarship Policy
Best Practices
The Reporting Process:
 Make requirements known at time of
application
 Proof of course completion
 Enrollment verification
 Report back to branch of impact of the scholarship
Oversight
 Determine funds used for purpose given
 Method to regain funds if not used properly
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