Is your organization 501(c)3 exempt?
Yes. The IRS has determined that the Future Promises Foundation is exempt under 501c3. If additional documentation is needed to support this please contact us via email at firstname.lastname@example.org
What is your process in establishing a fundraiser?
*All fundraising activities conducted on behalf of The Future Promises Foundation, Inc., whether on-site or off-site must be reviewed by this policy.
- All fundraisers need to be approved by the Board of Directors. Exceptions to the policy are groups/programs requesting items such as food for families, individuals, and incidental program supplies.
- An application/proposal must be completed and submitted to the Board of Directors.
- The fundraising activity must address essential elements, and not gratuitous wants or luxuries of the Foundation. It must be compatible in its content and the way it is conducted to the identity and mission of The Future Promises Foundation, Inc..
Fundraisers must clearly identify what the funds will be used for in advance of the solicitation and provide a public report/accounting to include:
Fundraiser by definition: Any event, activity, or solicitation that seeks to generate income or goods for a beneficiary. Some examples of fundraising include, but are not limited to:
- Gift Giving: Cash contributions of all sorts
- Gifts In Kind: Non-cash gifts such as donations of electronics, gift cards, clothing and non-perishable items
- Sales: The selling of services or merchandise to members, patrons, and guests. Examples include activities such as silent auctions.
- Long Term Fundraisers: Those taking place over a given period.
- Ongoing Fundraisers: Those conducted as a normal part of the Foundation schedule with or without an end date
- Annual Campaigns: (Examples: Fight Against Child Obesity, Autism Walk)
- Annual Fundraisers: Fundraisers held the same time each year as well as same type of fundraiser (Example: Annual Scholarship Ball).
What are the tax deductions for donating office space to a non-profit?
Nonprofits fill an important void in society. They pick up where business leaves off, providing services and goods to those who cannot afford to purchase them. By their nature, these organizations are often strapped for cash. This makes donations of all types a key portion of their marketing campaigns. Large donations, such as office space, can save an organization thousands of dollars. For the business making the donation, it can mean a substantial reduction in taxes.
The Internal Revenue Service calls office space donations in-kind donations. The IRS encourages in-kind donations by allowing individuals and businesses to take a tax deduction for the fair market value of the service. For office space, this is sale price of the space if it were placed on the market or the fair market value of a lease. The recipient must be a tax-exempt charitable organization or 501(c)(3). IRS rules do not allow donations for a portion of the owner’s interest in a property. For example, if you own a multi-story building and allow a nonprofit to occupy one of the floors for free, you cannot take a deduction. The reasoning is that because you still own the building, you have lost no benefit of ownership.
Encouraging Businesses to Donate
The IRS does intend to encourage donations, as does private industry. The Entrepreneurs Foundation notes that office space donations improve company morale. Employees take pride in providing a benefit to the community and may seek volunteer opportunities with the nonprofit.
Making and Receiving Requests for Space
Unless there is a relationship in place with a certain business, it is the responsibility of the nonprofit to seek out donors and solicit the right space for its mission. It is important to draft a written solicitation or request. It should include the desired size of the office space and whether it will be needed indefinitely or for a specific period. This will help the business making the donation take advantage of the in-kind donation tax break. The nonprofit can use the information in its end-of-year reporting with the IRS. Both should have copies of the request on file.
Documenting the Donation
While the responsibility for documenting the donation is the donor’s the nonprofit can make this process easier. Donors must file a separate form for any in-kind donation valued at more than $5000. Because IRS rules place limits on deductions, having information about whether the space is being used for work directly related to the organization’s mission is important. If the donation was a gift and the organization plans to sell the office space, the donor will need to include that in the IRS report. All of this can be done when the nonprofit submits its written acknowledgement of the donation.
by Monica Sanders
How much of my donation will go towards programs?
With this being our first year of operation we estimate on average 89% of all expenditures will support program services.
What is the Future Promises Foundation tax ID number?
How do I mail my donation to the Future Promises Foundation?
Checks/money orders should be mailed to: The Future Promises Foundation, P.O. Box 843, Bear, DE 19701. Make checks payable to: The Future Promises Foundation, Inc. . Please write reason for donation in the memo field
What type of donations can you accept and are my donations tax deductible?
Yes, your donations are tax deductible. Donors can deduct contributions they make to the Future Promises Foundation under IRC Section 170. The organization is also qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2016, or 2522.
If further questions exist in regards to exempt status please email email@example.com