SPONSORED PROJECT HANDBOOK Welcome to SocialGood! We are very happy to be working with you and your projects to help support the good work you are striving to achieve. This handbook provides an outline of the basic operating procedures for your project. This is not yet a fully comprehensive handbook, so if you feel that something is missing and needs to be added, please let us know. And always feel free to contact us with any questions you may have. Contact Information: Main Office: (510) 621-7223 socialgood@socialgoodfund.org Executive Director mdpace@socialgoodfund.org Accounts Payable/Receivable accounts@socialgoodfund.org EIN (Tax-ID): 46-1323531 1
Receiving Donations Receiving Checks: Checks must be made out to SocialGood or Social Good Fund and can be mailed to us at: SocialGood (or Social Good Fund) PO Box 5473 Richmond, CA 94805 Your Project name must be written in the memo section of the check, otherwise we will not know which Project should receive the funds. You may also deposit funds directly into our bank account. We can provide our bank and deposit information upon request. If you decide to deposit checks directly into our account, you must also make sure to use our Donation Notification Form with the date and exact amount of the deposit so that we can find it easily and allocate it to your project. If you do not notify us about a deposit, we will not know who the funds are for. Receiving Material and In-Kind Donations: You can receive items such as cars, real estate, art, etc. for direct use and for liquidation (to receive cash for your Project). Once you receive the donation, you will give your donor a receipt indicating the items you receive and the fair market value of the donated item. Quid Pro Quo Contributions: Any donation that is given in exchange for goods or services (e.g., fundraising Gala tickets that include a dinner and entertainments) is considered a quid pro quo contribution. The tax-deductible portion is only the amount over and above the fair-market value of the item they receive in exchange for their donation. For example, if it costs you $50 per ticket to host a Gala event, and you sell the ticket for $100, then them amount the donor can deduct is $50. If you are hosting any fundraising events, or receiving any type of quid pro quo contribution, you must notify the donor in writing of the tax-deductible portion of their contribution. Stock donations: SocialGood can receive donations of stocks, bonds, or any other financial asset. Real Estate/High Value Material Donations: SocialGood will also receive real estate donation and other high value material items, such as art, antiques, etc. There is a 1.5% surcharge for all Real Estate and High Value material items which are to be liquidated. On-line Fundraising We are excited to offer our projects a powerful and comprehensive set of online fundraising tools. These are provided to you at no additional cost and are included as part of your fiscal sponsorship. Each tool is created and customized specifically for your project (you can even run multiple campaigns at a time). The fundraising tools include: donate button, event/ticket sales, crowdfunding, peer-to-peer and crowdfunding. 2
Donation Button SocialGood will provide you with a donation button for your website. We will also work with Stripe, if needed. Fully customizable. Add your logo, color scheme, and donation amounts. Donors can choose to cover the credit card processing fee (e.g., when someone donates $20, your project receives the full $20) 1.5% credit card processing fee when donors do not cover the fee (Flipcause [our service provider] will charge a higher processing fee at the time of the charge, but will refund any processing fees not covered by donors each Fiscal Quarter, so that the processing fee is 1.5%) Recurring donation options (monthly, quarterly, yearly) Know when you get a donation (You receive notifications immediately when a new donation is made) Donors automatically receive donation receipts and Thank You letters Donor contact information (choose what information to collect: email, phone, address) Option to fully embed and customize look and feel of the donation button into your website Sell Event Tickets/Registrations 1.5% credit card net processing fee (same as donation button) Know when someone registers/buys a ticket (You receive notifications immediately when a new registration is made/ticket is sold) Donor contact information (choose what information to collect: email, phone, address) Option to fully embed and customize look and feel of the donation button into your website Customize the look and feel of the registration page Peer-to-Peer Crowdfunding Create teams to fundraise for you! Your supporters and donors can easily sign up to help raise funds and sell tickets on your behalf Supporters can sign-up via email address or Facebook directly through the button Create fundraising teams or simply let supporters sign up individually Each fundraiser has their own page portal Leaderboard tracking available (create a fun competition to see who made the most progress!) Third-Party Crowd-Funding We are happy to support any crowdfunding platform you choose, however, you must have all funds go directly into our bank account, or a check must be mailed directly to us, otherwise the funds you receive will not be tax-deductible. PLEASE NOTE: There is often no identifying information in our bank account for direct deposits. If a crowdfunding platform deposits funds directly into our account, you must also make sure to use our 3
Donation Notification Form and provide us with the date and exact amount of the deposit so that we can find it easily and allocate it to your project. If you do not notify us about a deposit, we will not know who the funds are for. Donation Receipts Providing Receipts: We receiving donations via check, we ask our projects to provide a donation receipt and Thank You letter directly to the donor. We do not do this for you, because Donor Development is a critical piece to the ongoing success of your project, and we do not want to take that away from you. Any time you give a donor a receipt, you must also submit a copy receipt to SocialGood. Customizing Receipts/Thank You Letters: You can create a custom receipt and thank you letter that has your logo and wording that is appropriate to your Project. Before you begin to use the receipt, please submit a draft to SocialGood for review and approval. Grants Each grantmaker has their own requirements about what information they require and how they handle fiscally sponsored projects. If the grant application is unclear as to whether they need the Project s information or the Sponsor s information, please check with the grantmaker about what is needed. Any information about the sponsor (past 990s, list of Board Members, etc. will be provided to you upon request). Grant Review/Submission: Please submit a copy of every grant to SocialGood for review before you submit it to the grantmaker. As part of our fiscal responsibility we must make sure that every grant falls within the scope our charitable purpose. Tracking Grants: It is the Project s responsibility to monitor the progress and awarding of grants. When funds have been received by SocialGood, we will notify you that the grant funds are available. Grant Reporting: Your Project will be responsible for fulfilling any reporting requirements of any grants received and submitting copies of the report to both the grantmaker and SocialGood. Checking Your Project Balance You will have access to run financial reports at your convenience through our accounting platform, Aplos. The primary report you will use to view your financials will the Transaction List By Fund Report. When your donations have totaled more than $500, you can request a login by emailing socialgood@socialgoodfund.org. 4
Tracking Your Donors Donations made via check: In Aplos, you will you will be able to run reports for every donation received via check. You will also have access to the donor contact information. To see the donor contact information, you will need to click on the donation total of that donor. Donations made via our Donate Button: Reports of donors and donations made through our donate button can be provided upon request. Please email socialgood@socialgoodfund.org to request a donation report of online donors. Requesting/Disbursing Funds All request for fund disbursements should be sent to: accounts@socialgoodfund.org. In your email please write the name of your project in the email subject line. SocialGood will review all expenses to ensure that they conform to IRS Guidelines as well as your charitable mission. Though it rarely happens, any requests that are not in accordance to IRS Guidelines will not be approved and will not receive payment disbursements. You can read more about IRS Guidelines for 501c3 organizations at: https://www.irs.gov/pub/irs-pdf/p4221pc.pdf Paying Vendors/Contractors: All vendors/contractors who are paid over $600 must submit a W-9 both individuals and companies. If you utilize a vendor for services (e.g., web design, consulting, event services, etc.), it is required that they submit an invoice for their services they have provided. Please email the invoice to us. Once we receive it, we will review it and send out payment, usually within 2-3 business days. Reimbursements (Model A Only): For smaller expenses or situations that require immediate payment, you can purchase the goods or services, and we will reimburse your project related expenses. You must keep your receipt and complete an expense form. Please email the expense form with copies of your receipts. Once we review it, we will send you a reimbursement check for total expenses. Expenses that are not accompanied by a receipt will cannot be reimbursed, so please make sure to keep a copy. Scanned copies of receipts are preferred. Fund Disbursements (All Models): Funds will be disbursed via check, direct deposit, or Paypal upon request. Checks generally take 7 business days to arrive once processed by SocialGood. To receive funds via Paypal, you must have a Paypal account. The fund transfer is immediate. To receive funds via direct deposit, you must provide your email, bank name, account, and routing numbers. Funds are typically available the next business day. 5
Fund Disbursements (Model C Only): SocialGood will not automatically release funds. Project funds will be held by SocialGood until they are requested by you for disbursement. Upon request we will generally make funds available to you within 2 to 3 business days. Additionally, you must keep all receipts for your purchases and expenses for 7 years--even if you are no longer operating your project. If you discontinue your project, you can mail the hard copies of any receipts to us. When you submit a new budget for a two-month period, you will need to provide the receipts for the previous two months. If receipts are not made available, or if any funds have been spent outside of your charitable purpose you may be required to reimburse SocialGood for those funds. This is necessary because it could jeopardize SocialGood s 501c3 status if we cannot properly account for how funds are spent, if they are spent outside the IRS guidelines, or outside the scope of our charitable purpose. Expense Cards (Model A Only): We also provide expense cards (PEX cards) at no cost to projects. Once your project has at least $1000 in funding, we can order you a PEX card. You must upload copies of your receipts to the PEX card platform. This can be done via the PEX Card smartphone app (Android and iphone) or online through PEX Card s card user portal. Fund/Grant Disbursement Reporting (Model C Only): All funds that a Model C project receives from SocialGood are treated as grants. Therefore, you must submit grant reports and keep all receipts for funds spent Grant reports are due every six months (June 15 and January 15). Insurance (Model A Only) SocialGood Provides General Liability and Worker s Compensation for our Model A projects. Our GL policy covers most project activities, however, if your project involves activities beyond the scope general office activities, we must check with our insurance broker to make sure that your project is covered. If our broker determines that additional coverage is required for your project, your project is responsible for covering the cost of any project-specific insurance costs. Should that occur, we recommend that you shop around and compare other rates that which our broker will provide in order to find the best price. Payroll (Model A Only) In general, if you or your staff are working regular hours and are to be paid by your project, you will be treated as employees rather than independent contractors, though there may be some occasions where 6
independent contractor status is appropriate. SocialGood will run payroll for you and your staff. Additional Payroll details/schedule can be found in the Employee Handbook. Additional Payroll fees (Model A only): Workers compensation insurance contribution: 1% of payroll (e.g., $50,000 payroll = $500 WC insurance contribution). WC insurance fees will be collected at the end of each calendar year, or up completion of your project should it end before the calendar year. Government payroll taxes for each of your employees will also be disbursed from your project s fund. Timesheets: If you have employees, timesheets can be accessed through Google Docs. Volunteers All volunteers must sign a waiver releasing the Project and SocialGood of any liability. Events (Model A Only) Before you begin to plan for any event, SocialGood must review your plans. This is simply to ensure that no additional insurance is needed, and if it is, that the proper event insurance can be acquired. Marketing Materials/Branding It is only important to mention SocialGood when you are seeking donations or making statements about being tax-deductible (501c3). In these instances, you should mention that you are "fiscally sponsored by Social Good Fund, a tax-deductible 501c3 nonprofit organization." Similar language can also be used. What Types of Donations are not tax-deductible The IRS stipulates that anything in which ownership cannot be transferred is not tax-deductible. Unfortunately, this means that rental space, pro-bono services or any other non-physical items cannot be given as tax-deductible donation. 7
SETTING EXPECTATIONS Communication We work hard to make fiscal sponsorship accessible and affordable, and work hard to strike a balance between serving the many projects that need our support and providing quick and efficient communication. In general, you can expect: Email is the best method of communication, but phone calls are always welcome. Please expect a response to emails within 24 hours, though we will always try to respond as soon as possible. Urgent matters will receive a faster response, but please title the email with: URGENT subject matter Project Name. Please only use this if the matter is truly urgent. We are available to answer calls between 9 am and 5 pm PST. If a call is not answered, we are likely on the phone with another project. We will try to respond to any voice messages within the same day, but you can expect a response within 24 hours. If you call and we are unable to answer, please leave a voice message rather than call back this is the most effective way to ensure we contact you as soon as possible. See WHO TO CONTACT for a list of the appropriate contact persons. Receiving Checks All check donations must be made out to, Social Good Fund or SocialGood, and your project name must be written on the memo/note line. Checks that are mistakenly written out to your project may be rejected by our bank, and new check will have to written by the donor. PLEASE NOTE: our bank will not allow you to sign over checks. Checks that are sent to our mailing address are deposited once per week (Friday). Once a check clears, the funds will be made available for your project. Provide a note with each batch of checks stating whether the checks are: o Donations o Fee for service o Tuition o Membership dues Providing Donation Receipts to Your Donors Donor development is a critical part of a nonprofit s success and is not something we want to take away from our sponsored projects. As such we ask all projects to provide a Thank You letter/donation receipt to their donors as needed. Projects will send their own Thank you letters and donation receipts to your donors Place a copy of all donation receipts in a.zip file and email them to us at: socialgood@socialgoodfund.org Send any customized donation receipts to us to review before they are provided to donors. Please send them to Michael: mdpace@socialgooodfund.org 8
Paying Bills/Invoice (MODEL A) Invoices and bills will be sent out by Friday of each week. We process checks directly through our bank at Wells Fargo. Checks typically arrive in 7 business days after they are processed. Contractors should expect to receive payment within 10 to 15 business days from the time we receive the invoice. Faster payment options are available through: Venmo, Paypal, or Direct Deposit (Direct Deposit requires initial setup of 4 to 5 days). These payment options must be specifically requested by the contractor, and they must provide their payment details. Checking Status of Donations/Grants Should it be necessary, it is always the responsibility of the Project Director to follow up with donors and grantmakers to check the status of their donation/grant. This includes knowing when funds were sent to us, the exact amount, and by what means (check, direct bank deposit, wire, online donation, etc.) Crowdfunding/Sales Platforms (Generosity, Kickstarter, Eventbrite, Square, etc.) You may use any crowdfunding platform you like (Generosity is free and highly recommended for ease of use). The Project Director must notify us of when funds from a crowdfunding campaign are released into our bank account we need to know the exact amount and date of the deposit. If we are not notified when funds are released into our account, we will not know who the funds are for. These deposits do not provide any notation on your project/personal name. We want you to have your funds, so please make sure to remain aware of the deposit dates and amounts of any third-party crowdfunding/sales platforms you use and fill out our Deposit Notification Form. Viewing Your Financials In general, we will provide one login per project. If you want more than one person to have access to your financials, it is recommended to create an email account and login details that can be shared among the users within your project. Separate Bank Accounts/In-Flow of Project Revenues MODEL A PROJECTS Model A projects will not open or maintain any bank account outside of SocialGood s project bank account. All revenues related to your project (this includes ticket and item sales as well as grants and donations) must go directly into SocialGood s project bank account. MODEL C PROJECTS Only tax-deductible donations and grants are required to come directly into SocialGood s bank account. MODEL C PROJECTS Model C projects are strongly encouraged to open and maintain a separate bank account from their own personal/business account. This is so that the charitable funds we grant to you are not co-mingled with non-charitable funds and accidentally spent on non-charitable activities. Additionally, should the IRS ever need to view your financial records, 9
having a separate bank account for your charitable activities related to your project will allow them to easily see how you have received and spent your project funds. 10
Who to Contact General Questions and Document Requests Sophie Marchant When to contact (examples): Requesting a donate button Login/password issues Banking information request PEX Card requests Letters of Affiliation Email: socialgood@socialgoodfund.org Ph: 510-621-7223 Accounts Payable/Receivable Andrea Glickstein When to contact (examples): Paying for/sending in invoices/bills Questions about project financial details Incoming donations and checks Email: accounts@socialgoodfund.org Ph: 510-944-8561 Technical Questions/Contracts/HR Michael Pace When to contact (examples): What can I do/not do as a project? Lease agreements Grant agreements Insurance questions Benefits Payroll Email: mdpace@socialgoodfund.org Ph: 510-621-7223 11
Consulting/Project Development Oliver Hack When to contact (examples): Consulting needs Questions about how to grow/improve project Board development Marketing development Email: Oliver@socialgoodfund.org Ph: 415-812-2700 12