CALA Donation Acceptance and Management Policy
(Revised on January 27, 2017)
The Chinese American Librarians Association (CALA, http://cala-web.org), a non-profit organization with 501(c)3 tax exempt status, appreciates the valuable donations made by CALA members and supporters in developing CALA as an organization and enhancing members’ professional growth and development in the short- and long-terms.
In CALA’s 2015 Strategic plans, it specifically states fundraising under “Goal 1. Strive for Organizational Excellence… Continue and conduct regular fundraising activities to support CALA programs and services.” As CALA has demonstrated in its remarkable history of 40 years, income from monetary donations represents an important and growing source of funding for the association. As such, the establishment of donation funds should reflect and be driven by the strategic priorities of CALA. CALA has the responsibility to properly manage and use donated funds as intended by the donors, and to report to donors or designated contacts on the impact of their donations within CALA and the Library and Information Science (LIS) field.
This policy pertains to CALA. The purpose of this donation acceptance and management policy is to govern CALA’s acceptance of donations and manage donors’ expectations. The policy provides guidance to donors and their professional advisors in completing donations. It also provides guidance to the CALA Board, the Fundraising/Public Relations Committee, the Finance Committee, gift fund award committees, and CALA members.
Donors are advised to follow the policy and seek independent legal or tax counsel when making a donation to CALA. CALA may engage legal or tax counsel to assist with the donation as needed and appropriate.
General Policy and Guidelines
Acceptance of donations is based on the relevance and consistency with the purpose and mission of CALA (http://cala-web.org), CALA Constitution (http://cala-web.org/constitution), and CALA Bylaws (http://cala-web.org/bylaws). Donations which are contrary to or beyond the scope of CALA’s mission and purpose will be rejected.
All donations to CALA, once established and received, will be the property of CALA and administered by CALA.
Generally, there are two kinds of donations in cash or check accepted by CALA:
(1) Current Use Fund: A donor may make donations to CALA and the fund will be used until it's exhausted. The fund may be restricted to meet the donor's specific intent; or it may be an unrestricted fund that allows CALA flexibility to support its most pressing and strategic needs. The donor may also choose to designate donations to a specific existing fund. Please consult the web page of CALA Donations and Contributions (http://cala-web.org/donate).
(2) Endowment Fund: The definition refers to amounts that have been contributed with donor-specified restrictions that the principal be invested in perpetuity (subject to certain limitations). Income (e.g., interest, dividend) from those investments may also be restricted by donors (see reference at http://www.obfs.uillinois.edu/cms/one.aspx?portalId=909965&pageId=913718).
CALA requires a minimum $50,000 (USD) gift from a donor to establish an endowment fund. The endowment funds may be named in honor or in memory of individual(s) as determined by the donor, in consultation with the CALA President and the CALA Executive Director.
The endowed gift fund would adhere to the outlined purpose provided by the donor. To ensure that the donor’s intent is met and the use can be administered, the CALA President and the CALA Executive Director must work alongside the donor to prepare a fund agreement that will govern the endowment. The agreement shall govern CALA and shall be consistent with CALA’s Constitution and Bylaws. The agreement shall also be governed by and interpreted in accordance with all applicable laws. The agreement shall be reviewed and approved by the CALA Executive Committee of the Board, and signed by the donor, the CALA President and the CALA Executive Director.
No endowment will be activated until a fully executed fund agreement is in place and the following conditions are met: CALA has the entire amount of the endowment in hand and available for support for the purpose designated in the gift agreement. Until the fund balance reaches the minimum funding level of $50,000 (USD), the spending allowance will be reinvested into principal (fund balance). The “fund balance" or "principal" represents the funds originally gifted by the donor and it may also include some permanently reinvested income. The market value is also referred to as "net asset value"; it represents the value of the individual fund's investment in the designated funds at a specified date (see reference at http://www.obfs.uillinois.edu/cms/one.aspx?portalId=909965&pageId=913718).
The CALA Treasurer, informing the CALA Executive Committee of the Board and the CALA Board, will prepare for the donor and/or designated contact person an annual statement of endowment fund activity and growth. The Treasurer will also prepare an annual budget for the related gift fund committees, informing the CALA Executive Committee of the Board and the CALA Board.
Any changes and updates to the endowed gift fund purpose or designation will require an amendment to the original governing document; refer to the document preparation and approval process above.
CALA adheres to ethical standards and adopts the Model Standards of Practice for the Charitable Planner (http://www.pppnet.org/ethics/model_standards.html) promoted by the Partnership for Philanthropic Planning.
The Donation Acceptance and Management Policy will be reviewed by the CALA Board annually to determine if any amendments are needed to reflect changes in law and/or CALA and to address new situations not previously addressed by the policy.
A letter of acknowledgement will be addressed to the donor by the CALA President and the CALA Executive Director in a timely fashion. It is imperative that the donor(s) receive direct communication from the CALA President, the CALA Executive Director and the CALA Treasurer regarding use and impact of the endowed gift funds.
Donations and Tax Benefits
The CALA Treasurer sends the tax receipts for donations. Tax forms and guidelines can be found at the Internal Revenue Service website. The following publication may prove useful: IRS Publication 526, Charitable Contributions (http://www.irs.gov/pub/irs-pdf/p526.pdf).
Giving to CALA
CALA sincerely thanks donors for their interest in giving to and supporting CALA. There are two convenient ways to make a monetary gift.
Please find instructions for Donations and Contributions, and the CALA Donation Form at http://cala-web.org/donate.
Make your check payable to “CALA” and mail it to the CALA Treasurer at the following address (2014-2016):
CHINESE AMERICAN LIBRARIANS ASSOCIATION
P.O. Box 324
Chinchilla, PA 18410-0324
Please write your specific instruction in the memo line and/or attach a letter of instruction.
For more information on monetary giving, please get in touch with the CALA Public Relations/Fund Raising Committee Chair, the CALA President or the CALA Executive Director at email@example.com.
A gift fund donated to CALA will be invested in a prudent and diversified manner to produce a reasonable total annual return, with the assistance of a qualified investment advisor nominated by the Finance Committee of CALA, with consultation from the donor, and with approval from the Board of Directors of CALA. The fund may be comingled with other CALA investments for investment purposes, but CALA shall maintain in its books a separate record showing the individual fund’s proportionate share of gain, loss, income, and expenses, including common investment expenses such as a proportionate share of any advisor fees and other investment expenses. CALA shall keep the donor advised of the investment performance of the fund, not less than annually, at the donor’s request.
The role of the CALA Finance Committee in the gift fund management is to make investment recommendations to the Board in line with the UPMIFA Act, based on the defined Finance Committee’s charge and investment requests from the donor and/or others. The CALA award committee for a gift fund has no role in the gift fund management, but will be kept informed by the CALA Treasurer of the fund balance and the available amount of the award upon request. The donor may serve on the award committee as an Ex Officio who cannot vote or make decisions on the award. The donor will be kept informed by the award committee about the award selection process.