Community Platform

The Nonprofit FAQ: Charitable Solicitations

Select an FAQ   (19):

AICPA SOP 98-2 and its Impact on Financial Reporting
Rules that took effect 12/15/98 require organizations to screen activities carefully if they include a fund-raising appeal and are not classified as fund-raising in the accounts; three writers explain the background.
Are fees charged by federated campaigns fundraising expenses? For whom?
It depends. What the donor says matters.
Are Ratios Useful? For Donors? For the Community? (Added 2/24/96)
When should donors be concerned about average costs (ratios) in evaluating the performance of organizations which seek donations as one of the ways they raise the money they need to operate?
Can Fundraisers be Paid a Percent of the Amount Raised?
This is a highly controversial issue on which the professional associations are unanimously agreed that such arrangements are unethical. Many views are expressed in this item.
Does Fundraising on the Internet Require Registration in Every State?
There is no final answer...yet. Several writers' have discussed the question online.
Evangelical Council for Financial Accountability Bars Percent Fees
ECFA -- http://www.ecfa.org/ -- certifies and audits the financial affairs of about 800 Evangelical Organizations. In 1998, ECFA's standards were revised to bar percentage fees.
Further on Contingent Compensation (Percentage Fees)
Another compilation of an online debate on the ethics and practical implications of basing compensation for fundraising on a percentage of the funds raised.
How can we streamline our charitable solicitations registration?
The Unified Registration Statement (URS) is accepted by many states.
How is fundraising regulated in the US?
State governments are the most active regulators of fund raising, and the standards are quite different from place to place. The use of the Internet for fund raising makes this situation even more complicated.
How should we thank an anonymous donor?
Obviously, the donor's name isn't published anywhere. But other ways of saying 'thank you' may be appropriate.
How to Choose a Service to Process Donations Online
IdealWare has a thorough discussion on the web.
How will the Net affect the work of Fundraisers?
Early discussions of many possible ways for fundraisers to use the net.
I want to start a campaign to raise money for a cause. What do I need to worry about?
Besides finding the money, you mean? Well, there are actually several issues that you should consider before running your own fundraising campaign.
Is it possible to raise money with $0 fundraising expense?
Maybe. But the accounting rules make clear that it only happens in very special cases.
Should fundraising revenue be reported 'gross' or 'net'?
'Gross' is the right answer here.
The Association of Fundraising Professionals Code of Ethics
Excerpts pertaining to fees for consulting from the Association of Fundraising Professionals' Code of Ethical Principles and Standards of Professional Practice
We want to change the mission and work we do. How difficult is it to make such a change?
You may need to notify your state corporations office, the IRS, and officials in states where you do fundraising. More details in this item.
What is telemarketing? How do we do it?
Telemarketing is using primarily the telephone (and sometimes other electronic means) to promote programs and services to funders and clients.
What should a prudent donor do?
Cliff Landesman's 'Donor Defense Kit' (included here) makes some suggestions.