Policies and Principles for Tax Deductible Donations to
New Life for Haiti (NLH)
Principles
Policies (Numbered for Reference Only)
1. Standard Statement and Reference. The following statement will be used on all relevant donations (including those formerly referred to as trip “payments”) and fundraising materials: New Life for Haiti is an Illinois not for profit corporation recognized by the IRS as a 501(c)(3) organization.
2. Donations Irrevocable. Tax-deductible contributions must be irrevocable; therefore, all donations are non-refundable and non-transferable.
3. Unrestricted and Restricted Donations. New Life for Haiti gratefully accepts contributions to support our overall ministry and also recognizes the desire by some donors for NLH to restrict the use of their donations to specified purposes, such as particular mission trips, staff fundraising, relief efforts, or other important causes. Restricted donations are used to support the purpose for which they were originally intended until that purpose has been satisfied. After which, any excess funds are used to further the ministries of NLH.
4. Applicability of Donor Restrictions. NLH strives for transparency and clarity in our materials and communications with our staff and deputized fundraisers. Unless donor restrictions are specified, donations will be available to impact every aspect of NLH’s overall mission. When a donor restricts donations to a specific purpose, NLH shall use all reasonable efforts to follow the donor’s intent. However, a donation restricted only for the personal benefit of, or use by, an individual is not tax deductible and therefore such restriction cannot be accepted.
5. Deputized Fundraising. NLH utilizes the accepted practice called “deputized fundraising” to raise donations to support many of our activities. Individuals, who desire to participate in mission trips, to join NLH staff, or to be involved in other projects, programs or activities (collectively “purposes”), become fundraisers for NLH with the intention of participating, under NLH’s direction, in carrying out the purpose(s) for which they are appealing for donations. It is acceptable practice to agree on and monitor success toward individual and project fundraising goals. However, as the qualified “charity,” NLH must maintain discretion and control over the use of all tax-deductible contributions, without any obligation to directly benefit the fundraiser or any other individual.
6. Deputized Fundraising – Excess Funds. Donations in excess of the individual goal for a deputized fundraiser, regardless of the reason for the excess, are used to support the mission trip or other purpose for which they were originally intended until that purpose has been satisfied; after which, any excess funds will be used for other purposes consistent with NLH’s ministries.
7. Deputized Fundraising – Reporting. Donations expressing a preference for a particular deputized fundraiser are accumulated in a fundraising summary to communicate progress toward each person’s fundraising goal. The fundraising summary is for informational purposes only and shall in no way be interpreted to indicate that fundraisers or donors may exercise any rights to or control over the amounts reflected in these fundraising summaries.
8. Deputized Fundraising – Shortfalls from Goals. In those cases where a participant leaves or completes a trip without reaching either the proportionate or full goal, NLH expects the participant to continue striving to raise funds until their goal is fully met. NLH reserves the right to terminate a participant from a trip or other activity for any purpose in its sole discretion.
9. Reporting to Donors. Donors will receive acknowledgements during the year confirming the amounts and dates of gifts, as well as calendar year-end tax receipts documenting such gifts as deductible contributions for income tax purposes. Each donor is advised to consult his or her personal income tax advisor for the applicability of such contributions in his or her own circumstances. See also IRS Publication 526 Charitable Contributions.
10. Tax Deductions for Short-Term Trip Payments. It is common for missions organizations to not provide tax receipts for very short-term trips (such as a week or less) where a church or an individual makes payments for the missions organization to lead the trip and to pay a certain portion of the expenses, but with the participant or participating church paying certain expenses directly, such as airfare or other transportation costs. Taxpayers can deduct the payments to NLH for their participation in such trips. The taxpayer may also deduct travel expenses necessarily incurred by them while away from home performing charitable services in connection with such NLH trips if there is no significant element of personal pleasure, recreation, or vacation in such travel. The deduction will not be denied simply because the taxpayer enjoys providing such services. Therefore, NLH provides calendar year-end receipts verifying the payments made to NLH by such donors/participants. NLH does not maintain information related to travel related payments made directly by participants and therefore any such record keeping is the sole responsibility of the taxpayer.
11. Deputized Fundraising for Short-Term Trips. NLH encourages the raising of funds through participants’ churches. However, in some cases, we recognize that participants and/or their supporters may desire to have contributions by donors made directly to NLH in a manner that will allow those supporters to receive a tax receipt for a “contribution” to NLH. In order to do this, such contributions must follow all of the same policies for deputized fundraising as described herein, including being irrevocable, non-refundable, and non-transferable. NLH must retain the ultimate discretion as to the application of those funds, even though a preference for support of the participant the donor identifies may be considered.
12. Donations by Donors Located Outside the United States. NLH year-end tax receipts are intended to confirm tax-deductibility only as it applies in the U.S. and its territories. Donors based outside the U.S. should consult with a qualified advisor regarding the country.
New Life for Haiti (NLH)
Principles
- To maximize the impact of the NLH ministry.
- To be knowledgeable of, and adequately compliant with, IRS rules and regulations and known best practices to support the tax deductibility of donations.
- To consider restrictions and preferences expressed by donors to the extent allowable and practical.
Policies (Numbered for Reference Only)
1. Standard Statement and Reference. The following statement will be used on all relevant donations (including those formerly referred to as trip “payments”) and fundraising materials: New Life for Haiti is an Illinois not for profit corporation recognized by the IRS as a 501(c)(3) organization.
2. Donations Irrevocable. Tax-deductible contributions must be irrevocable; therefore, all donations are non-refundable and non-transferable.
3. Unrestricted and Restricted Donations. New Life for Haiti gratefully accepts contributions to support our overall ministry and also recognizes the desire by some donors for NLH to restrict the use of their donations to specified purposes, such as particular mission trips, staff fundraising, relief efforts, or other important causes. Restricted donations are used to support the purpose for which they were originally intended until that purpose has been satisfied. After which, any excess funds are used to further the ministries of NLH.
4. Applicability of Donor Restrictions. NLH strives for transparency and clarity in our materials and communications with our staff and deputized fundraisers. Unless donor restrictions are specified, donations will be available to impact every aspect of NLH’s overall mission. When a donor restricts donations to a specific purpose, NLH shall use all reasonable efforts to follow the donor’s intent. However, a donation restricted only for the personal benefit of, or use by, an individual is not tax deductible and therefore such restriction cannot be accepted.
5. Deputized Fundraising. NLH utilizes the accepted practice called “deputized fundraising” to raise donations to support many of our activities. Individuals, who desire to participate in mission trips, to join NLH staff, or to be involved in other projects, programs or activities (collectively “purposes”), become fundraisers for NLH with the intention of participating, under NLH’s direction, in carrying out the purpose(s) for which they are appealing for donations. It is acceptable practice to agree on and monitor success toward individual and project fundraising goals. However, as the qualified “charity,” NLH must maintain discretion and control over the use of all tax-deductible contributions, without any obligation to directly benefit the fundraiser or any other individual.
6. Deputized Fundraising – Excess Funds. Donations in excess of the individual goal for a deputized fundraiser, regardless of the reason for the excess, are used to support the mission trip or other purpose for which they were originally intended until that purpose has been satisfied; after which, any excess funds will be used for other purposes consistent with NLH’s ministries.
7. Deputized Fundraising – Reporting. Donations expressing a preference for a particular deputized fundraiser are accumulated in a fundraising summary to communicate progress toward each person’s fundraising goal. The fundraising summary is for informational purposes only and shall in no way be interpreted to indicate that fundraisers or donors may exercise any rights to or control over the amounts reflected in these fundraising summaries.
8. Deputized Fundraising – Shortfalls from Goals. In those cases where a participant leaves or completes a trip without reaching either the proportionate or full goal, NLH expects the participant to continue striving to raise funds until their goal is fully met. NLH reserves the right to terminate a participant from a trip or other activity for any purpose in its sole discretion.
9. Reporting to Donors. Donors will receive acknowledgements during the year confirming the amounts and dates of gifts, as well as calendar year-end tax receipts documenting such gifts as deductible contributions for income tax purposes. Each donor is advised to consult his or her personal income tax advisor for the applicability of such contributions in his or her own circumstances. See also IRS Publication 526 Charitable Contributions.
10. Tax Deductions for Short-Term Trip Payments. It is common for missions organizations to not provide tax receipts for very short-term trips (such as a week or less) where a church or an individual makes payments for the missions organization to lead the trip and to pay a certain portion of the expenses, but with the participant or participating church paying certain expenses directly, such as airfare or other transportation costs. Taxpayers can deduct the payments to NLH for their participation in such trips. The taxpayer may also deduct travel expenses necessarily incurred by them while away from home performing charitable services in connection with such NLH trips if there is no significant element of personal pleasure, recreation, or vacation in such travel. The deduction will not be denied simply because the taxpayer enjoys providing such services. Therefore, NLH provides calendar year-end receipts verifying the payments made to NLH by such donors/participants. NLH does not maintain information related to travel related payments made directly by participants and therefore any such record keeping is the sole responsibility of the taxpayer.
11. Deputized Fundraising for Short-Term Trips. NLH encourages the raising of funds through participants’ churches. However, in some cases, we recognize that participants and/or their supporters may desire to have contributions by donors made directly to NLH in a manner that will allow those supporters to receive a tax receipt for a “contribution” to NLH. In order to do this, such contributions must follow all of the same policies for deputized fundraising as described herein, including being irrevocable, non-refundable, and non-transferable. NLH must retain the ultimate discretion as to the application of those funds, even though a preference for support of the participant the donor identifies may be considered.
12. Donations by Donors Located Outside the United States. NLH year-end tax receipts are intended to confirm tax-deductibility only as it applies in the U.S. and its territories. Donors based outside the U.S. should consult with a qualified advisor regarding the country.
