American Library Association Management Practices INVENTORY LIST. 1. Contribution Processing and Acknowledgment Procedures 2.

Transcription

1 American Library Association Management Practices INVENTORY LIST 1. Contribution Processing and Acknowledgment Procedures 2. Grants

2 American Library Association Management Practices Practice Number: 1 2/12/04 CONTRIBUTION PROCESSING AND ACKNOWLEDGEMENT PROCEDURES INCOMING DONATIONS The American Library Association receives contributions through the following channels: U.S. mail (personal check, cash, or credit card, sent to Development Office or applicable unit) Online (credit card donation, sent to Development Office via ) Membership renewals/voluntary dues (received and processed by Customer Service, data for acknowledgement sent monthly to the Development Office by ITTS) Electronic fund transfers (received by Accounting) Inter-unit transfers (paperwork completed by the Development Office and unit) In-kind donations (to ALA or one of the units) Pledges (received by Development Office or one of the units) Procedures for Checks, Credit Cards, and Cash Part 1 A Contribution Processing Form (four-part carbon form) must be completed for every cash, check or credit card donation received. This form is to be completed by the applicable unit (the unit responsible for the budget where the contribution will be allocated). The ALA unit will attach three copies of the check and the original check to the Form. If the contribution is made by credit card, three copies of the credit card information should be attached. The Contribution Processing Form, check/credit card information and three copies of check /credit card information should be hand delivered to the Development Office for processing, within hours. Part 2 The Development Office Administrative Assistant will check the Contribution Processing Form for accuracy, then keep one copy of the Contribution Processing Form, one check/credit card copy, and any backup documentation for the files. These copies are for the Development Office donor file. The Development Office Administrative Assistant hand delivers the original check/credit card information, remaining check/credit card copies and remaining Contribution Processing Form copies to the Accounting Data Clerk in Receivables, within 24 hours. 1

3 Part 3 The Accounting Data Clerk finalizes the processing of the contribution, which includes depositing the check or cash in the bank and authorizes all credit card donations. The Accounting Data Clerk initials and dates the Accounting Cash Batch Sheet form to indicate when it was processed and batches the contribution with a number. Batches are numbered sequentially (e.g. batch #724, batch #725, etc). The Accounting Data Clerk will then deposit the batches by filing out a daily deposit slip with a grand total of all the batches totals. Part 4 The Development Office Administrative Assistant will receive the batch from the Accounting Data Clerk. This batch is entered into IMIS. A batch may have one contribution or several contributions. Once the data is entered into IMIS, an ALA Contributions Report is generated and is used to export the data to generate acknowledgement letters. The ALA Contributions Report consists of the donor s name and address, contribution amount, and where their donation was allocated. Part 5 The Development Office Administrative Assistant will prepare the acknowledgement letters for signature. There are different kinds of thank you letters, a general thank you letter and various specific letters. The Director of Development will sign the letters. The Development Office Administrative Assistant will make three copies of the letter: one for the Development Office donor file, one for the Development Office chronological file and one for the unit who received the donation. Acknowledgement letters are mailed and copies are distributed. This whole process from the Development Office receiving a contribution to sending out an acknowledgement letter will take between hours. Procedures for Voluntary Donations via Membership Renewal ALA members have the opportunity to contribute to ALA via their membership renewal form. These contributions are called Voluntary Donations. Voluntary Donations are received and processed by Customer Service. On the 11 th day of each month, the Development Office runs a Voluntary Donations Report. This report contains the data necessary for the Development Office to acknowledge Voluntary Donations contributions. The Development Office Administrative Assistant completes the steps outlined in Part 5. Procedures for Electronic Funds Transfer (EFT) Electronic Funds Transfers are received by Accounting. Accounting submits relevant contribution documentation and a completed Contribution Processing Form to the Development Office. The Development Office Administrative Assistant completes the steps outlined in Parts 4 and 5. 2

4 Procedures for Inter-unit Transfers (IUT) When a contribution is made from an ALA unit, the Development Office or the unit prepares an IUT form. Original IUT is sent to Accounting. Copies of the IUT form are sent to the unit and the Development Office. The Development Office Administrative Assistant completes the steps outlined in Parts 4 and 5. Procedures for In-Kind Donations The ALA unit will fill out the Contribution Processing Form for any in-kind donations. The ALA unit will attach three copies of the sponsor correspondence indicating the item/service being donated, the quantity being donated and the fair value of the donation. The fair value may be determined by the quoted market price, independent appraisals, or other valuation techniques provided by the donor. The Development Office Administrative Assistant completed the steps outlined in Parts 2-5. Procedures for Pledges The ALA unit will fill out the Contribution Processing Form for any pledges. The ALA unit will attach three copies of donor correspondence indicating the information regarding the pledge. The Development Office Administrative Assistant completes the steps outlined in Parts 2-5. The Development Office Administrative Assistant will receive an electronic reminder, set up by ITTS, within 45 days of each pledge payment due date. The Development Office Administrative Assistant will generate a report, created by ITTS, to create and mail pledge payment invoices. Return envelopes will be mailed to the donors with each pledge payment invoice. One copy of each pledge payment invoice will be made for the donors file. Prepared by: Susan Roman, Dev. Lainie Castle, Dev. Karina Vazquez, Dev. Greg Calloway, FS Jennifer Tam, FS Sherri Vanyek, ITTS Irene Marquez, ITTS Reviewed by: Keith Michael Fields Mary Ghikas Greg Calloway Don Chatham Gerald Hodges Dorothy Ragsdale Susan Roman 3

5 Emily Sheketoff Julie Walker Sherri Vanyek 2/12/04 GLOSSARY Contribution An unconditional transfer of cash or other assets to an entity. Endowment Fund (Long-Term Investment) An established fund of cash, securities, or other assets to provide income for the maintenance of a not-for-profit organization. The use of the assets of the fund may be permanently restricted, temporarily restricted, or unrestricted. Endowment funds generally are established to provide a permanent endowment, which is to provide a permanent source of income. The principle of a permanent endowment must be maintained permanently i.e., not used up, expended, or otherwise exhausted and is classified as permanently restricted net assets. An endowment may also be in the form of a term endowment, which is to provide income for a specified period. The principal of a term endowment must be maintained for a specified term and is classified as temporarily restricted net assets. An organization s governing board may earmark a portion of its unrestricted net assets as a board-designated endowment (sometimes called funds functioning as endowment or quasi-endowment funds) to be invested to provide income for a long by unspecified period. The principal of a board-designated endowment, which results from an internal designation, is not donor restricted and is classified as unrestricted net assets. Fund Balance (Net Asset Balance) The net worth of the Association; also broken out to show each fund s (or division s, activity, etc.) share of the net worth of ALA. The fund balance represents the difference between the assets and liabilities. It should be understood that the fund balances shown on our financial reports are not only cash. Rather they are mad up of cash plus other assets minus liabilities plus the excess (or deficiency) of revenue over expense. In-Kind In goods or services, not in money, such as a contribution of equipment, supplies, space or staff time. The donor may place monetary value on such a contribution for tax purposes. Long-Term Investments - Assets (investments) held for an extended period of time usually 5 years and longer in order to meet the needs of an established or anticipated long developing goal. Operating Fund ALA s term to denote all funds other than plant funds and endowment funds. These include the general fund, division fund, and special funds. 4

6 Permanent Restriction A donor-imposed restriction that stipulated that resources be maintained permanently but permits the organization to use up or expend part or all of the income (or other economic benefits) derived from the donated assets. Permanently Restricted Net Assets The part of the net assets of a not-for-profit organization resulting a) from contributions and other inflows of assets whose use by the organization is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the organization, b) from other asset enhancements and diminishments subject to the same kinds of stipulations, and c) from reclassifications from (or to) other classes of net assets as a consequence of donor-imposed stipulations. Pledge/Promise to Give A written or oral agreement to contribute cash or other assets to another entity. A promise to give may be either conditional or unconditional. Property In sponsorship terms, a unique, commercially exploitable entity, (typically in sports, arts, events, entertainment or causes). Realized Gain/Loss Refers to the gain/loss in the value of a security, fund, portfolio, etc., after the sale/liquidation of all or a portion of the same. Restricted Support Donor-restricted revenues or gains form contributions that increase either temporarily restricted net assets or permanently restricted net assets. Special Funds ALA category of funds that includes round tables, awards, grants and other special activities and projects. Spending/Operating Account An account set up to capture and settle the operating expenses generated by individual Scholarships, Awards, and Divisions within the Endowment Fund. Sponsor An entity that pays a property for the right to promote itself and its products or services in association with the property. Sponsorship The relationship between a sponsor and a property, in which the sponsor pays a cash or in-kind fee in return for access to the exploitable commercial potential associated with the property. Temporarily Restricted Net Assets The part of the net assets of a not-for-profit organization resulting a) from contributions and other inflows of assets whose use by the organization is limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the organization pursuant to those stipulations, b) from other asset enhancements and diminishments subject to the same kinds of stipulations, and c) from reclassifications to (or from) other classes of net assets as a consequence of donor-imposed stipulations, their expiration by passage of time, or their fulfillment and removal by actions of the organization pursuant to those stipulations. 5

7 Temporary Restriction A donor-imposed restriction that permits the donee organization to use up or expand the donated assets as specified and is satisfied either by the passage of time or by actions of the organization. Unrealized Gain/Loss Refers to the gain/loss in the value of a security, fund, portfolio, etc., prior to the sale/liquidation of all or a portion of the same. Unrestricted Net Assets The part of net assets of a not-for-profit organization that is neither permanently restricted nor temporarily restricted by donor-imposed stipulations. 6

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9 American Library Association Management Practices Practice Number: 2 2/2/04 GRANTS Grants from government agencies, foundations, corporations and other external funding sources represent an opportunity to form partnerships and an important means by which the Association advances its mission to its members, the profession, and the public. The ALA Development Office, ALA s designated fundraising unit, coordinates all ALA grant activity. PURPOSES The Association and its units assume primary responsibility for supporting its services to members, to the field, and to the public. The Association and its units seek funds from outside sources to augment their resources for projects which advance their mission and established goals, enlarge their capacity, or advance their understanding. The Association and its units have the expectation that grant-funded projects will produce capacity building opportunities for the Association and its units and members, or initiate and expand services or products that will be integrated into ongoing operations and services. The Association may also respond to invitations from outside organizations to submit funding requests, when the objectives of the proposed project are consonant with ALA s mission and comply with ALA s funding criteria when the Association is uniquely qualified to carry out the activity, particularly one that is national in focus or impact. RELATIONSHIP TO ONGOING PROGRAMS Grant projects should enhance the capacity of the Association and its units to meet ongoing responsibilities to members, the field, and the public. Consequently, grant proposals should identify as fully as possible the anticipated programmatic, staff and financial impact of the proposed project on the unit that will administer the project, any other affected units, and the Association as a whole. The proposal, in the format appropriate to the funder, should be accompanied by a completed Project Proposal Form (attached), to facilitate its review by the appropriate ALA Department Head, the ALA Development Office, ALA Finance Department, and the ALA Executive Office. PROPOSAL DEVELOPMENT Responsibility for development and preparation of project proposals rests with the initiating unit or unit which will be administering the project, with the consultation and advice of the ALA Development Office, other involved ALA staff, the appropriate Department Head, Financial Services, and the ALA Executive Office prior to negotiating terms and submission of proposal. The relevant ALA Department Head and the Development Office should be informed at the earliest possible date of any proposal under development or consideration. 1

10 It is the responsibility of the unit preparing the proposal to ensure that the ALA AED, Finance, the Director of Development, and the ALA Executive Director sign off on each Project Proposal Form in a timely manner that affords opportunity for final review. It is also the responsibility of the unit preparing the proposal to obtain any necessary or desirable support from the appropriate governance or advisory body. If cover letters or letters of support from the ALA Executive Office, an ALA governance or advisory body, or a partner organization are necessary or desirable, it is the responsibility of the unit preparing the proposal to obtain those in a timely manner. PROSPECTIVE FUNDER COORDINATION Donor or funder coordination is an important and essential element of proposal development. Therefore, notice of intent to submit should be forwarded to the Development Office. It is intended to avoid inadvertent and potentially costly competitive proposals to the same prospective funder by various units of the Association, to present an appropriately coordinated organizational face to funders, and to ensure that proposals are of a size and nature appropriate to the intended funder. No prospective funder is to be approached or solicited for funding without prior clearance from the ALA Development Office. Units developing proposals should utilize The Prospect Clearance Form (attached) to provide the Development Office with the name, address, telephone number of the proposed funder, a specific contact person, and the approximate amount and nature of the proposal. PROJECT BUDGETING It is the general practice of the Association to request reimbursement of all direct and indirect costs associated with a proposed project from the prospective funding agency. Funding agencies frequently expect, and most times require, some sharing of direct project costs by the grantee as evidence of organizational commitment to the proposed activity. The appropriateness and amount of cost sharing will vary from project to project. Funding agencies also differ significantly in their policies regarding reimbursement of indirect costs (overhead). There are several practices that currently guide ALA s negotiation of allowable indirect costs (overhead) on grants: (1) The annual indirect cost study that is conducted by the ALA Finance Department serves as the basis for calculating the indirect cost rate applied to government and non-government grants. This study and the resulting rate are used in negotiations with outside agencies. (2) ALA negotiates a federal rate with the National Endowment for the Humanities (NEH). This agreed-upon rate serves as the basis for the indirect cost rate with all other federal agencies. Contact the ALA Controller to obtain applicable government rate. (3) ALA s financial objective is to recover all appropriate direct and indirect costs associated with a project. [Note: If project staff is to be hired, the project budget should seek to recover appropriate recruitment and relocation costs incurred by ALA Human Resources.] 2

11 Several situations may be encountered in negotiating an appropriate indirect cost rate with an outside agency: (1) Some grantors set a ceiling on the maximum allowable indirect cost rate. When this occurs, it is ALA s practice to build in as direct costs as many of the typical indirect costs as possible. ALA Planning & Budgeting will provide assistance to the unit developing the proposal. (See attached listing of ALA Indirect Cost categories and annual costs.) (2) Some agencies exclude certain types of expenses from the indirect cost rate calculation. For example, NEH does not allow any Washington Office-related expenses to be included in their calculation. (3) On occasion, ALA receives, as part of a larger grant, funds that are passed through to libraries or librarians as separate grants. In this situation, the impact on indirect costs is determined on a case-by-case basis. A separate indirect cost rate may be calculated for the pass through portions of the grant, or actual, specific costs may be calculated and charged. The indirect rate can be based on the level and degree of financial transaction reporting and the number of pass-through accounts. (4) The grantor may require reduction of the indirect cost rate as a demonstration of commitment. ALA may reject an offer of a grant if the direct and indirect cost recovery is not sufficient to meet the Association s requirements and/or the programmatic value does not justify the extent of the ALA financial commitment required. PROPOSAL REVIEW AND APPROVAL Proposals intended for submission to outside agencies require approval by the ALA Executive Director and the Development Office, prior to submission. Project budgets must be reviewed and approved by the Chief Financial Officer of the ALA before submission for approval by the ALA Executive Director. The ALA Executive director is the official signature for ALA. Therefore, only the ALA Executive Director or designee may seek or accept funds on behalf of the Association and its units. In accepting funds, the Association accepts a concomitant obligation to carry out the program or project for which the funds are awarded. Because each grant carries with it a commitment of the Association and its resources, the ALA Executive Director is obliged to exercise oversight of the grant process. CRITERIA FOR REVIEW OF GRANT PROPOSALS Review and approval of grant proposals by the ALA Development Office and the ALA Executive Director is based on the funding priorities set by the ALA Executive Board and forwarded to the ALA Development Office. The review process also takes the following factors into account: 3

12 (1) The relationship of the proposed project to ALA s mission and approved priorities. (2) The relationship of the proposed project to the mission and approved priorities of the ALA unit initiating and/or managing the project. (3) The significance of the proposed project to the ALA, the proposing/managing unit, and to the field. (4) The appropriateness of the project to the resources and activities of the Association and the initiating /managing unit. (5) The anticipated impact of the project on the program, staff and resources of the Association and the initiating/managing unit. NEGOTIATION PROTOCOLS The initiating/managing unit, in consultation with the ALA Executive Director or designee, is authorized to exercise reasonable latitude and discretion in negotiations with the prospective funding agency. Significant revisions in approved project proposals, resulting from the negotiation process, must be reviewed with the ALA Executive Director, for information or guidance, as the circumstances warrant. PERIODIC STATUS REPORTS AND CENTRAL FILES (1) Project data for every funded proposal should be entered in the Association Management System following guidelines provided by the ALA Development Office. (2) A quarterly Fundraising Report from the ALA Development Office to the ALA Executive Board will include information on all funded projects. (3) Monthly [financial] Performance Reports will be provided to the project director and appropriate Department Head by ALA Accounting. (4) On a quarterly basis, the appropriate ALA Department Head will review with the project director and unit manager (if different) progress toward meeting the objectives of the grant, any significant budget (>5%) or timing variances, as well as lessons learned. (5) Copies of contracts or letters of agreement with foundations or other funders should be submitted by the project director or unit manager to the AED Finance and the Director of the ALA Development Office. DRAFT 2/2/04 4

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