2.3.1 Fundraising Events

The IRS defines a fundraising event as any event having the primary purpose of raising funds and requires that charitable organizations identify and report all fundraising event income. This policy is intended to aid in compliance with the IRS requirements. The Office of Gift & Alumni Information Management will determine whether each event is a fundraising event based on the information submitted during the event approval process.

If an event is determined to be a fundraising event, it requires additional approval from the Vice President for Development and Alumni Relations and is subject to the additional requirements in this policy. Written approval is needed before proceeding with the event and should be obtained as early as possible during the planning stages of any event.

If the ticket price of attendance at an event contains a gift portion, it is a requirement to inform each individual invited of the actual fair market value of attending the event. The donation credit is the difference between the actual value of attendance and the ticket price.

If a charitable auction is part of the fundraising event, then additional guidelines apply. Please see the Charitable Auction Policy.

An approved Event Approval Form should accompany all check requests and deposits submitted for a fundraising event.

PROCEDURE:

  1. At least 60 days prior to a fundraising event, an Event Approval Form should be completed and forwarded to the Development and Alumni Relations Office of Gift & Alumni Information Management. Signed forms can be faxed, emailed, or sent via Campus Mail. Event forms require the signature of the UGA unit’s Vice President, Dean, or Director.
    1. The Office of Gift & Alumni Information Managementwill forward to the Vice President for Development and Alumni Relations for approval.
    1. Upon Vice President for Development and Alumni Relations approval, the Office of Gift & Alumni Information Management will forward the documentation to Financial Accounting for further processing and the UGA unit will be notified of the vice president’s approval.
  2. A sample of the invitation, if not previously provided, should be forwarded to the Office of Gift & Alumni Information Management for review. The review is required to ensure that the invitation includes the necessary disclosures required by the IRS: The disclosures requirements are:
    1. value of attendance
    1. gift amount (if needed)
  3. Financial Accounting will send a memo to the coordinator of the fundraising event outlining the reporting and accounting requirements. These requirements include:
    1. The execution of an “Indemnification and Hold Harmless” agreement for any fundraising event held off campus.
    1. The submission of a budget for the event.
    1. The establishment of a separate “fundraising” account in the Foundation for capturing the revenues and expenses associated with each fundraising event. The IRS requires a separate accounting for each fundraising event which has gross revenues over a certain threshold.
    1. Funding to pay costs “up front” which may be transferred from a discretionary fund within the same foundation to the fundraising account.
      1. The UGA unit will indicate the amount of seed money to be transferred to the new fundraising account. Please contact Financial Services for assistance at 706-542-6669.
      1. All expenses and revenues associated with the fundraising event will be processed through the fundraising account.
    1. Transmission of deposits to the Office of Gift & Alumni Information Management.
      1. Each deposit should indicate how much is attributable to “other income” (value of attending event or other benefits) and how much is considered a “charitable gift contribution” (the amount in excess of benefits value).
      1. For each type of other income (sale of merchandise, registration, etc.), please identify the type of revenue by attendee name and amount.
      1. For each contribution, the attendee’s name and complete address must be included.
    1. Final verification of event accounting:
      1. When the event is completed and all revenue and expenses have been processed, the event coordinator should provide verification of accounting and the request to transfer proceeds to Financial Accounting. (Debbie Chupp at dchupp@uga.edu or 706-542-6669)
      1. The coordinator should verify to Financial Accounting that all revenue and expenses have been processed and that all were posted to the fundraising event account.
      1. The request to transfer proceeds to the benefitting fund must be approved by the Dean or Director with signature authority for the School/College’s accounts.

Last Updated on June 21, 2019