January 25, 2004
Jr. Varsity, Varsity, or Club Sports must receive prior College Development approval before soliciting off-campus individuals, businesses, churches, or any other entity for contributions. Solicitations of individuals or groups on-campus require approval when the solicitation is related to a Juniata sponsored effort that will be recorded as a charitable contribution by the College. The Vice President for Advancement and Marketing or the Associate Vice President for Development will provide suggestions for the solicitation and give final approval or disapproval of the solicitation.
The following definitions and procedures apply:
What is the difference between a contribution and a sponsorship?
A contribution is a monetary or product donation for which the individual or business does not receive a product or service in return. A sponsorship offers public recognition for an individual or business without advertising a product or service, but carries the intent of the sponsor to derive a promotional benefit. The act of “sponsoring” does not negate gift credit. Patron and Sponsor Revenue should be credited to object code 4875.
Requesting an advertisement of a commercial product or service that will be seen or heard in a public source shall not be considered a solicitation for a contribution but must be clearly identified as a solicitation for advertising.
Gifts of food products
Solicitations for food products or beverages will not be considered solicitations for a contribution even if these items will be sold for a profit to benefit Juniata organizations. Money raised in this area should be credited to object code 4872 (Vending and Concessions).
Concession sale of food or other products
Food or other products resold at a profit to benefit a Juniata College organization are not contributions. Money raised in this area should be credited to object code 4872 (Vending and Concessions).
Special program solicitations
Solicitations for support of special programs or endeavors such as team trips that go beyond normal league or playoff schedules may or may not qualify as contributions depending on circumstances. Participants, relatives of participants, or businesses enterprises related to a participant will not receive gift credit for their support,unless such support is given irrevocably and without restriction for the college’s use in supporting that event or program activity and the solicitation has been approved in advance by the Vice President for Advancement and Marketing or by the Associate Vice President for Development. Funds directed to the credit of a particular participant will not be considered a contribution. Contributions received from individuals or businesses for the general support of the sport or special program which have no direct connection to the donor will receive gift credit. Monies received that are not considered contributions will be credited to object code 4829.
Raising money for outside charitable organizations
Generally, Juniata College should not raise money for other charitable organizations. The College should not give gift credit for funds not used in its operations. On occasion, a sporting team or other College organization may want to participate in fund raising for an outside charity as part of its community service function. Participation must be cleared by College Advancement. The Vice President for Advancement and Marketing or the Associate Vice President for Development will provide suggestions for the solicitation and give final approval or disapproval of the solicitation. Checks taken on behalf of the outside charity should be made payable to that charity. A written list of cash received by donor must be kept. This cash will be deposited into the Juniata College checking account and charged to clearing account 11-00000-2541 (Temporary College Deposits). A check will then be drawn on this account and sent, along with the written list of cash donators, to the outside charity.
Is the sale of raffle tickets a contribution?
No, the sale of raffle tickets is gambling. The selling of raffle tickets must comply with Juniata College’s PA Small Games of Chance license. Winners of more than $600 are subject to receiving a 1099G.
Can gift credit be given in connection with receiving a product or service?
According to the CCH 2004 Master Tax Guide, “An amount paid for a ticket to a charity event-e.g. a ball, bazaar, show, or athletic event-is presumed to represent the purchase price for an item of value. The burden is on the taxpayer to show either that the payment is not a purchase or that the payment exceeds the fair market value of the admission or other privileges associated with the event.” It goes on to further say, “A fundraising organization that provides token benefits to contributors can advise them that their donations are fully deductible only if the token benefits have an insubstantial value.” If the College can easily determine the contribution value of a ticket or admission to a College sponsored event, the College may forward this information to the donor. The revenue representing the cost of the event should be charged to a non-contribution account number.
How often should collected funds be remitted or deposited?
It is important to safeguard all funds received from a solicitation. The best way to accomplish this is to deposit these funds at the Accounting Office as soon as possible. In any event, all checks and cash must be deposited within one week of receipt. During the time cash and checks are in the possession of the solicitor, they should be locked in a file in a secure area, preferably in a fire rated cabinet or safe. Failure to adhere to this policy could result in disapproval of future fund raising endeavors.