August 2011 Archives
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(0)Below is a short list of frequently asked questions. If there is a question that you have that is not addressed, please comment or send me an email to: dave.cruver@TogetherForAdoption.org
1. What kind of organization is T4A?
T4A is under the auspices of the ABBA Fund (the Ministry), PO Box 1120, Ramseur, NC 27316, a 501(c)(3) non-profit corporation registered in North Carolina.
2. In what state is Abba Fund established?
Ramseur, North Carolina
3. Why is support needed to be raised?
Abba Fund dedicates the vast majority of its resources to providing interest-free loans to Christian couples seeking to adopt, and has limited operational resources. Adding additional members to its conference team (T4A) requires personal support raising for the positions.
4. To What standards does Abba Fund adhere?
As a member of the Evangelical Council for Financial Accountability (ECFA), ABBA Fund is committed to operating with integrity and established standards for financial accountability, fundraising and board governance defined by ECFA’s Seven Standards of Responsible Stewardship. Because of increased Internal Revenue Service (IRS) scrutiny of personal support raising activities (technically called “deputized fundraising”), ECFA has issued specific guidelines governing deputized fundraising activities – and ABBA Fund will adhere to these guidelines.
PERSONAL SUPPORT RAISING GUIDELINES
Based on the IRS’s definitions, the main issue related with personal support raising that needs to be understood is that the gifts are given to the ministry – not the individual – and at the full discretion of the ministry to use as it sees fit to fulfill its tax-deductible purpose. This issue is best captured in this suggested language from ECFA:
Be assured that we are committed to honoring donor wishes concerning gifts for exempt purposes and projects carried out by [the ABBA FUND]. We also are committed to the highest standards of accountability as evidenced by our membership in the Evangelical Council for Financial Accountability.
Recent IRS Concerns
Recent Internal Revenue Service action has raised concern about the deductibility of contributions intended to support specific individuals. It is a common practice for missionaries and other religious workers to raise support for their ministries. The basis of the IRS concern is that gifts to or for specific individuals are not tax-deductible contributions, and should not be treated as such.
However, gifts to support the ministry of missionaries and religious workers are charitable contributions in support of the ministry rather than individuals, if the organization fully controls the funds. Accordingly, the [ABBA Fund] board must control all contributions intended exclusively for its exempt purposes. In addition, the board is committed to providing reasonable measures to ensure that donor-preferenced gifts are used for the intended exempt purpose(s).
Abba Fund Policy
All gifts are under the control of the [ABBA Fund Board of Directors] to be used for its exempt purposes. In the unlikely event a project or program is over-funded, or is not able to be carried out, the board will redirect the funds to a similar purpose.
Because of this policy, your gifts to support the ministry of specific [ABBA Fund] staff are not gifts to or for the individual but to [ABBA Fund] for its ministries, [including Together for Adoption (T4A)]. While the use of gifts for ministry conducted by [ABBA Fund] staff typically are used in accordance with a donor’s preferences, at times the board may redirect the use of these gifts.
5. If 100% support is not reached, what happens to the donations*?
Per IRS requirements to be a charitable contribution, all money contributed to ABBA Fund for support of the Together for Adoption ministry activities, even though it was “preferenced” for the Candidate, will not be returned but will be applied toward support of the T4A conference or similar ministry activity as determined by the Board of Directors.
Once a minimum of three (3) months of budgeted support is raised or pledged in writing, ABBA Fund is willing to allow the Candidate to start working and receiving the agreed upon compensation or a prorated amount, determined in consultation with the Director of T4A.
Once the contributed funds run out, the Candidate can continue to volunteer and attempt to raise additional funds, but no further compensation will be paid until another three (3) months of support is raised.
6. What happens if more than the full projected budget is raised*?
All money raised above the budget target will be applied toward support of the T4A conference or similar ministry activity as determined by the Board of Directors – these excess funds are not the Candidate’s funds, but belong to the ABBA Fund and are for use by the Ministry as its leadership deems appropriate.
It is up to the discretion of the President and the Director of T4A if excess funds raised during a fiscal year are to be applied toward other conference expenses or “banked” and credited as additional support for the Candidate in the following fiscal year.
*These two scenarios are non-negotiable in order for the Ministry to fulfill its ECFA standards commitment, to comply to IRS guidelines and to protect its 501(c)(3) tax exempt charitable status.
7. Are donations pledges or cash?
Cash.
8. Are donations monthly or one-time donations?
We ask potential donor partners to think in terms of shares. Each share is an equal unit of $60. We encourage three levels of one time share-giving: 300 friends investing in 1 share . . . . . . . . $60; 200 friends investing in 2 shares . . . . . . $120; 100 friends investing in 3 shares . . . . . . $180. When a donor gives a share, he or she is sharing in ABBA Fund/Together for Adoption's mission to serve orphaned and vulnerable children. These shares are tangible ways to serve orphans in deeply meaningful ways. Donors are not limited to giving just one, two or three shares. Some of T4A's donors have given up to 16 shares.
9. What happens to the money while support is being raised?
It is held in a low-interest yielding Together for Adoption account.
10. What is T4A's Mission?
To provide gospel-centered resources to mobilize the church for global orphan care.
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