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University Executive Directive Fundraising Event Policy The Administration, Management and Oversight of Fundraising Events 2

The Agenda Introduction Why a Fundraising Event Policy? Definition of Fundraising Events Authorization of Fundraising Events Responsibility of Fundraising Events Administration of Events 3

Introduction 4

Why a Fundraising Event Policy?

Fundraising Policy Origins UED is a result of a recent (2015) audit finding by the Chancellor’s Office. Advancement and The University Corporation, SF State collaboratively developed this policy based on the CSU Fundraising Events Policy CSU Fundraising Events Policy Effective Date: The University Executive Directive became effective on October 29,

Policy Main Points 1.The policy is required to lay out how fundraising events will occur on behalf of San Francisco State University and who is authorized to approve these events. These entities include colleges and their departments, auxiliary organizations, non-academic units, and all others who undertake fundraising events on behalf of the University. 2.This directive applies to fundraising events with expected gross receipts of $5000 or more which result in charitable contribution receipts for participants issued by the university or its auxiliary organizations. Please note that we will also discuss UCorp’s policy on Fundraising Events with a projected expense budget of $1500 or higher. 7

The Directive Does Not Apply To All The directive does not apply to faculty associations, student social clubs and student organizations, fraternities or sororities raising funds for their own benefit. 8

What are Fundraising Events?

Definition of Fundraising Events Fundraising events are defined as: Events conducted for the sole or primary purpose of soliciting charitable funds where participants make a charitable contribution and a purchase for the fair market value of goods or services. Fundraising events may include dinners, dances, door-to-door sales of merchandise, concerts, carnivals, golf tournaments, auctions, casino nights, and similar events. Fundraising events do not include the following : Activities that receive sponsorship. Unrelated trade or business activities that generate fees for service. Fundraising solicitations and related prospecting activities intended to generate only a contribution (no purchase of goods or services). Raffles in which the prizes have only a nominal value and do not require reporting as taxable income. Events that do not provide a charitable tax deduction component for the participant are not fundraising events. 10

Authorization of Fundraising Events

Approval for Fundraising Events Pursuant to California Education Code 89720, CSU Policy is issued under delegation of authority from the Chancellor to the Vice President, University Relations and Advancement. Implementation and compliance with this policy is further delegated to the campus chief advancement officer. The campus chief advancement officer (Vice President for University Advancement, Robert J. Nava) further delegates authority to the following individuals to approve fundraising events for their respective units: VP or Unit Head AVP, Dean or appropriate designee Anne Harris, Associate Vice President/Development Authorized individuals or their designees shall approve fundraising events and submit the appropriate paperwork, as outlined on next slide, to the University Corporation, San Francisco State (UCorp) or Associated Students, Inc. of SF State (ASI). 12

Responsibility for Fundraising Events

Each college, department, or unit is responsible for ensuring that their respective fundraising event adheres to all federal, state and local laws. Upon completion of the event, a complete accounting of the following details must be submitted to Gift Processing, University Advancement (Irina Krasnitskaya, Laura Lopez, Michael Athey): Revenue received, broken out by ticket sales, auction items, raffles, merchandise, etc. Dollar $ amount of donations received & the donor’s complete contact information (full name, mailing address, address, phone, etc.) For auctions, provide contact information for both the donor of the item auctioned and the winner of the auction. Auction Sales FormAuction Sales Form For raffles, IRS Form 5754 must be completed by the winners of prizes with a fair market value of $600 or more. Form 5754 can be found on the IRS website: pdf/f5754.pdf. pdf/f5754.pdf A form that is really helpful is the Gift Acceptance Form. All University Corporation forms can be found at: UCorp Forms.Gift Acceptance FormUCorp Forms 14

Administration of Fundraising Events

Administration for Fundraising Events Fundraising events on behalf of the University must be administered through Ucorp, ASI or Student Affairs. Event plans ($5000 above or involving vendor contracts) must be submitted to the delegated authority at least 30 days prior to the events and must include the following: Event Budget (estimated budget submitted as part of form or Excel spreadsheet) Promotional Materials (reviewed and approved prior to distribution/solicitation) Vendor Contracts and Agreements (if applicable) Action Plans for Compliance (for federal, state and local regulations) Risk Mitigation (obtaining insurance for events, as needed) Where do we document the event plans above? The University Corporation’s Special Event Authorization and Summary Form Special Event Authorization and Summary Form 16

Event Budget The budget must sufficiently detail anticipated revenues and expenditures to project net revenue and quid pro quo benefits. The Internal Revenue Service (IRS) requires fundraising events with gross receipts greater than $5,000 to report the following revenue and expenditure categories 1 : 1. Gift income 2. Non-gift income 3. Cash prize expenditures 4. Non-cash prize expenditures 5. Rent or lease of property or facility expenditures 6. Food and beverage expenditures (including service fees and taxes for catering) 7. Entertainment expenditures (including expenses for labor and wages) 8. Other direct expenditures (including labor and wages for fundraising event workers or paid independent contractors) 1 Aligns with reporting categories for Internal Revenue Service Form 990 Schedule G 17

Event Budget, Continued The budget should clearly outline anticipated revenue from tickets, auctions, donations, raffles, or other. Expenses should cover venue, food, supplies, contractors (if applicable) and any other expenses. A budget should estimate the fair market value of goods and services provided to the purchaser. An event is tax deductible to the extent that the purchase price exceeds the fair market value of what the purchaser receives in return (e.g., the price of the ticket to a dinner is $100 and the fair market value of the dinner is $40. The tax deductible portion would be $60). The words “donation,” “contribution,” and “charitable gift” may only be used when there is a charitable tax deductible component. 18

Promotional Materials Promotional materials include all event marketing materials including flyers, mailers, cards, invitations, solicitations, telemarketing scripts, written proposals, etc. It is recommended that promotional materials and announcements should include the following language: Proceeds from this event will benefit SF State’s Use of the San Francisco State University logo must meet requirements and may be subject to review by University Communications staff and adhere to SF State Identity Guidelines: For assistance on logo usage or questions on materials, contact or 19

Vendor Contracts and Agreements Approval by the delegated authority must first be obtained prior to execution of any vendor or independent contractor agreements. The University Corporation would like to have a Special Event Authorization and Summary Form completed for any event with an anticipated cost budget of $1500 or any event which involves any contracts with outside vendors. The main reason for this is to identify any risk by obtaining the appropriate insurance, if needed.Special Event Authorization and Summary Form 20

Action Plan for Compliance UCorp will review fundraising events with gross receipts over $5,000 to ensure that SFSU is in compliance with federal, state and local laws regarding event facilitated by a commercial fundraiser, having controlled games, games of chance or raffles. For example, if a raffle is being held as part of the fundraiser, UCorp will ensure that the University’s current raffle registration is on file and up to date with the Attorney General’s office and a plan in place to submit appropriate reporting to the Attorney General, in compliance with State regulations. Generally, raffles can be a pain because… 21

Raffle Reporting Form Within 3-5 business days of any University fundraising raffle event, event coordinators should complete the Raffle Reporting Form found on the University Corporation website at: raffle-report.pdf Please be prepared to document the following information: What fundraiser the raffle was a part of including date, location, etc. Whether that fundraiser raised more than $5,000 Gross dollar $ receipts of the raffle What fund raffle proceeds were deposited into Were funds from sources other than ticket sales used for the administration or other costs of conducting the raffle? If so: Source of funds including fund number Contact information for person in charge of raffle (i.e. department rep or coordinator, in case UCorp has any questions). Questions on Raffle Reporting? Contact Kathleen Bruno (Ucorp) at or call extension 22

Risk Mitigation UCorp shall review all fundraising event agreements to ensure compliance with University and campus policies relative to indemnification and insurance. Risk Management can also assist in the acquisition of appropriate insurance, when required. For questions related to insurance needs, please contact Anthony Victoria of Ucorp at or

Cash and Cash Handling Cash and cash equivalents must be collected and documented in a timely, controlled and cost-effective manner. In circumstances where it is not practical (e.g., event parking) to process a receipt, other mitigating controls must be implemented, such as ticket count reconciliations against cash collected (see ICSUAM Acceptance of Cash and Cash Equivalents ). All cash and checks for donations collected at any University or departmental fundraising event must be turned in to the Advancement Services Gift Processing Team in ADM 154 within 3-5 business days of the event with documentation (which can be a Gift Acceptance Form) of event purpose, time, date and location of event, contact information of donor (full name, address, address, phone, etc.), which fund the donation revenue is to be allocated to, ticket counts, etc. 24

Contact Us Caroline Johansson Director of Advancement Services Advancement Services San Francisco State University 1600 Holloway Avenue, ADM 154 San Francisco, CA Phone (415) / Website advservices.sfsu.edu/home