Sponsorship Policies of CIF of The San Francisco Foundation (CIF)

All capitalized terms used but not defined herein have the meanings assigned to them in the attached Fiscal Sponsorship Agreement.

Note: Items marked with * do not apply to a restricted fund set up solely for the disbursement of grants to support a project’s work (i.e., Model C “regrant” funds).

1. Accounts Payable*

Acceptable invoices received by end of business on any Monday will be paid and mailed by end of business on the following Friday. “Acceptable invoices” must be original, approved, coded documents (small receipts to be mounted on 8.5 x 11 paper). It will be the responsibility of each project to submit a completed IRS Form W-9 for each new vendor. Invoices requesting disbursements in excess of $25,000 require a second signature and may therefore be subject to a processing delay. CIF will make every effort to keep this delay to a minimum. Expense reimbursements payable to any individual need to be approved by a second party, usually either the Project Director or an Advisory Committee member.

2. Cash Advances

Under no circumstances does CIF advance money to projects. Deposited funds must be cleared by the bank prior to any requested draw, which may take up to two weeks.

3. Reserve*

Projects are required to keep an operating reserve of funds sufficient to cover at least two weeks of normal operating activity.

4. Employees and Independent Contractors*

CIF does not allow projects to pay any individual as a contractor if that individual meets the IRS definition of an employee. CIF management is available to discuss employee vs. contractor classification issues with projects. Contracts with independent contractors must be approved by CIF management in advance. Projects must get prior approval from CIF management before changing an individual’s status from employee to independent contractor.

Any project that requests more than $5,000 of services from an independent contractor in any calendar year must have a written agreement with that contractor. CIF can provide projects with a contract template for this purpose. Independent contractors who cumulatively have over $5,000 of activity with CIF during any fiscal year must maintain at least $1,000,000 in general liability insurance in addition to any other insurance that may be required by law.

5. Payroll*

ANY request to change a payroll record (e.g., pay rate, termination, regularly scheduled hours) must be communicated to CIF management via an “employee action form” at least five business days prior to the desired effective date of the change. To receive a paycheck, an employee must have submitted the following completed items: INS Form I-9, IRS Form W-4, California Development Department Form DE-4 (if applicable), signed acknowledgment of receipt of a personnel policies manual, and an employee action form at least five business days prior to payday. CIF management will provide employee action forms, file all payroll tax returns, and IRS Form W-2’s. An authorized representative of each project will need to sign a statement agreeing that his/her project will not deviate from the personnel policies manual.

The payment of bonuses by tax-exempt organizations is highly regulated; in fact, the payment of discretionary bonuses for past service is expressly prohibited. CIF management is available to discuss incentive compensation arrangements with projects to help avoid conflicts with regulatory agencies.

6. Benefits*

No project can offer or deny benefits to its employees that differ from the personnel policies manual.

7. Job Descriptions*

Projects are asked to develop and maintain job descriptions for each employee.

8. Grants, Awards, and Scholarships Made*

For any grants, awards, or scholarships made by a project, CIF management requires a copy of the signed grant agreement along with a completed check request form. CIF’s Executive Director’s signature is required for amounts over $5,000. If the grant is made to an organization that is not a 501(c)(3) charity currently listed in IRS Publication 78, additional paperwork may be required. All related forms and procedures are subject to review by CIF’s Executive Director.

9. Grants Received

CIF’s Executive Director must co-sign all original grant agreements and be copied at least one week in advance on all progress and final report submissions. The preparation of grant reports is the responsibility of the project. Grants involving government or public agency monies have very heavy reporting and auditing requirements that a project must discuss in advance of acceptance with CIF’s Executive Director.

10. Donations

CIF will accept, process, and acknowledge contributions to each project. This includes issuing receipts for tax deductions. Donations should be made payable to “XXX, a project of CIF of TSFF”.

It is not the CIF accounting staff’s responsibility to meet with a project’s donors and walk them through paperwork. CIF management will work with projects to educate them on the necessary forms to liquidate noncash gifts. Donations over $250.00 will be individually receipted. Stock gifts can only be made through CIF’s designated broker.

It is CIF management policy not to disclose publicly the identities of donors. CIF recommends that projects make no external disclosure of any donor’s identity without the donor’s permission.

11. Credit Accounts and Other Liabilities*

Project Directors may not incur debts or liabilities beyond the project’s ability to pay; individual Project Directors are personally liable for any excess. A project’s ability to pay is measured strictly by its cash balances, without including anticipated grants or contributions.

12. Fundraising Activities

Fundraising activities are very labor intensive to administer. CIF management requires at least one month’s notice of any fundraising events. A copy of all mailings and solicitations, including grant proposals, must be approved by CIF management in advance of mailing, submission, or other distribution. Every grant proposal should be accompanied by a cover letter from CIF.

Charities may not conduct any fundraising activities involving an element of chance, such as bingo or raffles, unless they notify CIF management in advance and adhere to pertinent state regulations. For instance, any project’s intention to hold a raffle may require CIF to file certain forms with the California Attorney General’s office both prior to and following the raffle. CIF management is available to discuss the rules governing charity raffles and bingo, and to answer any other questions a project may have regarding fundraising activities.

13. Communications With Potential Donors

In the course of fundraising, a project may solicit commitments from donors prior to receiving the funds. In general, CIF regards such promises to give as mere statements of intention, which CIF will not enforce through legal action. In the unusual situation where a project wishes to have a donor sign a legally enforceable pledge, contact CIF’s Executive Director.

The collection of any amounts for which potential donors have expressed intention to contribute shall be the responsibility of the pertinent project.

14. Volunteers*

The use of volunteers exposes CIF to additional liability. ALL persons who provide services to, or perform services for, a project without compensation for their time must sign the standard volunteer indemnification and release form that is available from CIF management. (Reimbursement of expenses does not constitute compensation.)

15. Financial Statements

CIF management will provide a statement of monthly activity and a detailed trial balance within 30 days of each month end. Any corrections to a project’s accounts must be requested within 30 days after receipt of that statement.

16. Bank Accounts*

No project shall maintain any bank account other than those maintained on its behalf by CIF.

17. Multiple Funds*

CIF has the ability to set-up cost centers within a fund. CIF also has the ability to set-up multiple funds for a project. In situations where projects need multiple funds on CIF’s general ledger, CIF management is available to advise on inter-fund transfers to help compliance with charitable trust rules.

18. Advisory Committee*

Each project must maintain a current listing of the names, addresses, and phone numbers of all members of its Advisory Committee. Each Advisory Committee will be provided with standard Articles of Association to govern its affairs and its legal relationship with CIF. A majority of the members of each Advisory Committee must serve the project as unpaid volunteers. Each Advisory Committee must promptly provide the following items to CIF’s Executive Director: the Advisory Committee roster; minutes of all Advisory Committee meetings; and a signed copy of the project’s Articles of Association and any other bylaws, procedures, or other governing documents.

19. Administrative Fees

Except as stated below, CIF will charge each project an administrative fee equal to 10% of CIF’s gross receipts for the project’s work.

The foregoing rate does not apply to receipts attributable to grants from government entities or public agencies, which are subject to a 15% administrative fee.

In addition to the administrative fee on gross receipts, CIF will retain one-half of all interest earned by a project’s funds on deposit with CIF.

CIF will charge projects $50.00 for each employee to cover setup costs.
CIF will charge projects $50.00 for each manual check required.

20. Insurance Provided by CIF*

CIF maintains general liability insurance, workers’ compensation coverage, and other employee insurance programs, all at no additional charge to projects. Model C “regrant” projects (i.e., in which CIF maintains restricted funds solely for the disbursement of grants to support projects’ work) do NOT receive any insurance coverage through their association with CIF.

21. Fiscal Year*

All projects must use a fiscal year ending on June 30.

22. Lobbying

CIF has a large annual lobbying allowance under Section 501(h) of the Internal Revenue Code, for the use of its projects. Projects are prohibited from funding or undertaking excessive lobbying or any other activities that could jeopardize CIF’s charitable tax-exempt status. CIF has the right to determine, in its sole discretion, what constitutes excessive lobbying by a project, and what other activities could jeopardize CIF’s tax-exempt status. All lobbying plans and expenditures must be submitted to CIF management for advance approval.

23. Mail Services

CIF can obtain a bulk mail permit that may be available to projects. To be eligible to use CIF’s permit, a mailing must go through CIF’s designated mailhouse. Costs for this service will be charged against the project.

24. Contracting Authority*

Any agreement into which a project enters that involves over $10,000 shall require signatures both by a representative of the project and by an officer, director, or the Executive Director of CIF.

25. Loans to Projects

In general, projects are not permitted to accept loans through CIF, because of the risk to which CIF, its assets, and its other projects can be exposed. Only CIF’s Board of Directors may grant exceptions to this policy.

26. San Francisco Non-Profit Public Access Ordinance

Depending on CIF’s revenue sources in each given year, CIF may be subject to The San Francisco Non-Profit Public Access Ordinance (S.F. Administrative Code chapter 12L). For years in which this law applies to CIF, its requirements include that at least two meetings per year of CIF’s Board of Directors be open to the public.

27. Automatic Termination of Project

CIF’s fiscal sponsorship of a project may be terminated by CIF’s Executive Director without advance notice to the project when (1) CIF’s fund for support of the project’s work has a zero cash balance or (2) in CIF’s sole judgment, CIF has not had any significant activity in connection with the project for one year or longer.

28. Automobile Usage*

CIF carries an automobile insurance policy called Employers’ Non-Ownership Liability. This policy provides coverage for CIF only. CIF employees and volunteers are not considered covered, nor are they considered insureds. The CIF policy is supplemental to an individual’s own policy and only provides coverage for CIF as a corporation. This policy is not in any way intended to replace an individual driver’s obligation to maintain his or her own insurance. The individual’s own insurance is primary for any loss. Anyone (employee or volunteer) driving on CIF business must maintain personal auto liability insurance. In addition, drivers will be required to provide CIF with the information necessary to complete a driving record check and positively affirm compliance (via CIF’s “Automobile and Personal Belongings” memo) on an annual basis.

29. Extra Services

From time to time a project may need services (e.g., insurance coverage, legal advice, inventories of intellectual property) over and above those included in the regular administrative fee. When the specific costs of these services are identifiable, CIF will charge them directly to the project’s CIF fund. CIF will inform projects when such charges are necessary.

30. Project E-mail Accounts

Each project must provide CIF with the addresses of active e-mail accounts for the Project Chair and/or the Project Director.

31. Employee E-mail Accounts*

Projects that have employees must provide CIF with the address of an active e-mail account for each employee.

32. Sponsor Identification*

All project letterheads and external communications must include the following identifying line: “…, a project of CIF of The San Francisco Foundation.”

33. Minimum Fund Balance*

Projects with employees must maintain a minimum fund balance equal to an average of fifteen days operating expenses.

34. Amendments

CIF may amend these policies from time to time with the consent of the project’s authorized representative.

35. Employment Offers *

All offers of employment must be approved by CIF prior to the offer’s extension to any potential employee.

36. Acknowledgment

On behalf of this project, I have received, understand, and agree to the foregoing sponsorship policies of CIF of The San Francisco.

[name of] Advisory Committee

[members]

By:
       , Chair

Dated:

and

By:
       , Project Director

(This form approved by CIF Board 12/2/2002and revised 06/30/03)