Las Vegas Northwest Rotary Foundation

 

1.Advantages

a.             Tax deductible donations

b.            Availability to additional auction items from companies that only contribute to 501 © (3)

c.             Creation of endowment funds and investments for future growth

 

2. The Las Vegas Northwest Rotary Foundation is to assist the Las Vegas Northwest Rotary Club.  The Foundation is a means to an end and it’s principle purpose is to assist the Rotary Club in carrying out it’s various charitable responsibilities and obligations

 

3. How does the Club get funding from the Foundation?

a.             Subcommittee agrees on a project

b.            Subcommittee submits written request to Project Chair

c.             Project Chair presents to LVNWR Club board for approval

d.            If approved, Project Chair presents to Foundation Board for approval and funding

 

 

For Discussion, Club Board Items:

:

1. Will the Las Vegas Northwest Rotary Foundation operate under strict Nevada State and IRS guidelines or will it operate under its own modified rules and policies? If the Foundation will operate under its own modified rules, can the Club board have a copy of those policies and procedures?

The LVNWR Foundation has and will operate as required under IRS and NV guidelines

2. Should the Foundation adopt a written policy which requires it to automatically approve a legitimate request from the club for funding an international or local project?

For the Las Vegas Northwest Rotary Foundation to operate under strict Nevada State and IRS guidelines, the LVNWR Foundation should have its own independent Board, that is to approve expenditures of the Foudation . This is just like other 501(c)(3) charities, (such as Catholic Charities or the Boy Scouts of America). However, the LVNWR Foundation is in the process of adopting a mission statement similar to the following:

“The primary mission of the Las Vegas Northwest Rotary Foundation is to support the charitable efforts of the Rotary Club of Las Vegas Northwest in the Las Vegas Community and the Rotary world.”

 

3. If the Club board approves a local or international project and duly forwards it to the Foundation for financing, what should the Club do if the Foundation turns it down but the Club wants to fund the project anyway with its own money?

If the Club board approves a local or international project and duly forwards it to the Foundation for financing, then the Foundation Board should approve the funding of the project as long as the Foundation has sufficient funds, and the project does not exceed the annually budgeted amount for either local or international projects. However, if the the Foundation did turn it down for a legitimate reason, then, yes the Club and Club Board, if it wants to, can fund the project anyway with its own money.

  

4. How should the Club raise funds for projects it wants to support but which are rejected by the Foundation?

The Club continues to raise money every week with the Happy bucks and raffle money. The Club can raise funds using any fund raising techniques that the Club wants to undertake. The Club just can not advertise that the funds being raised are tax deductible as charitable contributions/donations.

 

5. Does the Foundation have a policy which restricts the monetary amount of an individual grant (both minimum and maximum) for a single project other than availability of Foundation funds? If so, what are those limits? For example: “The Foundation will limit school grants to $500 each” or “…will limit international grants to $10,000.”

The Foundation does not have a policy which restricts the monetary amount of an individual grant. Without putting it into any collusive written agreement, the Foundation Board looks for guidance from the Club Board regarding the monetary amount of each grant.

(annual budget for foundation giving, allocated to community, international and local non-club funding)

 

6. If the Club or other donors wish to make a designated donation to the Foundation for a specific Club-approved project, will the Foundation automatically honor such a request and are there any limitations to the amount of grants for such a request, locally or internationally?

If the Club or other donors wish to make a designated donation to the Foundation for a specific Club-approved project, the Foundation will automatically honor such a request as long as it is to an approved 501(c)(3) entity, or another Rotary club. There are no Foundation limitations to the amount of grants for such a request, locally or internationally.

  

7. Does the Foundation maintain a list of IRS approved charities (such as Catholic Charities or the Boy Scouts of America) to which it will not approve a grant based on a legitimate Club request?  If so, which charities are currently on that list?

The Foundation uses Publication 78, Cumulative List of Organizations, (a list of IRS approved charities) to which it will approve a grant based on a legitimate Club request. http://apps.irs.gov/app/pub78

 

8. Is it the accepted business practice of the Club to cash and deposit checks made out to the Foundation? Is it the accepted business practice of the Foundation to cash and deposit checks made out to the Club? If so, how does that practice affect the charitable donation status of such donations so cashed?

The Club cashes/deposits club checks and the Foundation cashes/deposits Foundation checks. If a check is given to one or the other and it is incorrectly made out for the purpose of that check then it is possible that one or the other will cash a check made out incorrectly. The option is that the check is returned to the giver since neither entity should cash a check by an entity that it was not intended for.

  

Gregory M. Sinacori, CPA

 

Hilburn & Lein, CPA's

5520 S. Fort Apache

Las Vegas, NV 89148

Tel: 702-597-1945

Fax: 702-597-1980